Circular No. 316/32/97- Central Excise

dated 2/6/97

F.No. 390/144/97- JC
Government of India
Ministry of Finance, Department of Revenue
Central Board of Excise & Customs, New Delhi

Subject: Disputes between CBEC & PSUs – Clearance by the Committee Implementation of Decisions- Reg.

Instances have come to the notice of the Board where no action has been taken to realise the dues from Public Sector Units after the decision of the Committee of Disputes not allowing them to pursue their appeals in CEGAT/ Courts, has been communicated to the Commissioners.

2.  In the aforesaid regard, reference is invited to the Board”s instructions under Circular No. 27/27/94-CX dated 2.3.94 issued from F.No. 390/P/253/95-JC In the circular No. 27/27/94-dated 2.3.94, it was pointed out that on receipt of reference of dispute by COD; the operation of the order of proceeding under challenge should be suspended till the COD resolves the dispute or gives clearance to the litigation. In other words, dues cannot be enforced while the reference is pending before COD. However, after refusal of permission by COD to a PSU to pursue its litigation, there is no reason why the dues should not be enforced immediately. Vide circular No. 156/67/95-CX dated 17.11.95, the Commissioners were requested to send the action taken report in respect of the decision of COD communicated to then. It has been observed that Commissioners are not taking necessary action, particularly in regard to realisation of dues, wherever necessary, consequent to refusal of permission by the COD. The commissioners are also not sending their action taken reports regularly and in time.

3.  In the aforesaid regard, it is also observed that in certain cases, after refusal of COD permission, the concerned PSU requests reconsideration of its case by the COD. However, even in such cases there is no reason to postpone or defer action  of enforcing the recovery of dues, unless the Commissioner is instructed otherwise or intimation regarding listing of the case by the COD for reconsideration comes to the notice of the Commissioner.

4.  The Board desires that Commissioners hence forth take immediate action to recover the dues, wherever necessary, as soon as the decision of the COD not allowing a PSU to pursue its litigation is communicated to them. They should personally review all such past cases also and realise pending dues. They should expedite action taken reports for the past cases and should ensure compliance reports in all cases in future as per proforma prescribed under Circular No. 156/67/95-CX dated 17.11.95.

(M.K. Gupta)
Director (Review)

More Under Excise Duty

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

September 2021