Circular No. 22/22/94-CX.6
dated 15/2/94

Government of India
Ministry of Finance, Department of Revenue,
Central Board of Excise & Customs, New Delhi

To : —————-

Subject : Submitting summary of progress report on important cases of seizures / prosecutions / recovery-Regarding

I am directed to enclose minutes of Secretary (Revenue) dated 2.2.1994 regarding above mentioned subject.

2. You are requested to furnish the details of recoveries exceeding Rs. 50 lakhs made in Central Excise case and progress of prosecutions launched to the Director General (Anti Evasion), New Delhi by 15th of every month.

    (Himanshu Gupta)

Under Secretary to the Government of India

Submitting summary of progress report on important

cases of seizures prosecutions

airman (CBEC) has been intimating important seizures of the customs and also cases of evasion of excise duty detected by the DG (Anti-Evasion). While regular reports comes from the DG (AE) on the cases detected ny him with the comments of the Chairman (EC), no such report comes from DG (RI) relating to seizures of the customs.2. Another important missing link in this reporting system is the progress of the cases where prosecutions have been launched and action taken. I understand that there are a number of very important cases lying unattended. One such case that has been brought to my notice by one of the senior officers of the Department is a case relating to misuse of facilities under the DEC scheme by some Rustagi and Company involving about Rs. 106 crores. When I tried to get the progress of the prosecution in this case, I did not get any definite information. Similarly some time back ball-bearings worth a few crores of rupees have been seized in Kandla. Whether prosecution have been launched against these people, is not known. FM has been frequently asking me as to why people who are violating the law in this blatant manner and also being booked by the Custom and Central Excise authorities are not being booked prosecuted. Unless some of these major offenders are punished by the Court of Law and sent to jail, the massive evasion that is taking place will not stop. Similarly large scale evasion of excise duties have also been brought to notice by the DG(AE). Very good work has been done by the Directorate, but we are unable to know the progress of the cases either of the prosecution or the recovery of Government dues. It is necessary that we submit this information to the Ministers in appropriate form.

3. I have discussed this matter with New Joint Secretary, Shri Ramanan, and I have asked him to devise the management information system which can be made available to all the Collectors both on the Customs and Central Excise side to report  monthly the progress of prosecution/recovery in cases exceeding an amount of Rs. 50 Lakhs. Chairman may kindly issue suitable instructions to all the officers to ensure that from February onwards  we submit progress report to the MOS (R&E) and FM on all important cases.

(M R Sivaraman)
Secretary (Revenue)

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