22nd February 22, 2001
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Subject: Central Excise – Action for ensuring timely payment of dues under Fortnightly Payment System and also immediate action for recoveries in cases of defaults – Instructions regarding –
I am directed to say that the Board has reviewed the working of the system of fortnightly payment of duty, which was introduced in the Budget for the year 2000-2001. The figures indicate that there have been considerable defaults in payments by large number of assessees. Indeed, legal provisions have been made to discourage defaults but it is necessary that executive measures should also be taken so that such defaults do not take place at all.
2. Accordingly, it has been decided that it shall be responsibility of the concerned Sector Officers, Range Officers and the Divisional Officers to ensure that the assessees discharge their duty liabilities within stipulated time and incase of any default, the same should be detected immediately. The following actions should be taken in this regard: –
1. The RT-12 Returns, received by the Sector Officer, should be immediately scrutinised at the time of receipt by the said Sector Officer to check the duty liability of each fortnight of the relevant month and the duty discharged by the assessee. In case of any default/short payments, immediate endorsement should be made on all the copies of RT-12 Return to this effect and direction should be given to the assessees to pay the dues forthwith.
1. The list of defaults should be prepared and put up to the Range Superintendent on daily-basis, who will contact the Senior officials of the unit (assessee) and direct them to pay the dues immediately.
1. The Range Superintendent will in turn inform the Assistant/Deputy Commissioner of the Division (Divisional Officer) along with the list and details of defaults and action taken in each case within two working days.
1. The Divisional Officer will take necessary actions, including contacting the officials of the assessee/unit, initiating recovery proceedings under rule 230 of Central Excise Rules, 1944 or section 12 of the Central Excise Act, 1944 (notification No.68/63-Central Excise dated 4th May 1963) if the dues are not paid within a fortnight of the last day of the payment of dues.
1. Forfeiting of installment payments should be strictly enforced in terms of the provisions of rule 49(1)(e) and 173G(1)(e). Kindly note that during such period, the assessee can discharge duty consignment-wise only from account current.
1. The Commissioner shall take stock of the cases of defaults on monthly basis and ensure through strict monitoring that such defaults do not take place at all and where it has occurred despite best efforts, timely actions are initiated for recovery along with interest.
1. The scrutiny of RT-12 in terms of instructions of the Board in Circular No. 249/83/96-CX dated 11th October, 1996 shall be undertaken in usual course.
3. The field formations may suitably be informed.
4. Receipt of this Circular may please be acknowledged.
5. Hindi version will follow.
Under Secretary (CX.6)