Supersedes Notification No 5/2012-C.E.(N.T.) dt 12.03.2012;Chief Commissioner of
Central Excise to order withdrawal of facilities or impose the restrictions as
specified
[TO BE PUBLISHED IN THE GAZETTE
OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
Notification
No. 16/2014 - Central Excise (N.T.)
New Delhi, the 21st March,
2014
30, Phalguna, Saka,
1935
G.S.R. (E).— In
pursuance of rule 12CCC of the Central Excise Rules, 2002, and rule 12AAA of
the CENVAT Credit Rules, 2004 and in supersession of the notification of the
Government of India in the Ministry of Finance, Department of Revenue, No.
05/2012-Central Excise (N.T.), dated the 12th March, 2012,
published in the Gazette of India, Extraordinary, Part II, Section 3,
Sub-section (i) vide number G.S.R. 140(E), dated the 12th March,
2012, except as respects things done or omitted to be done before such
supersession, the Central Government hereby declares that where a manufacturer,
first stage or second stage dealer, or an exporter including a merchant
exporter is prima facie found to be knowingly involved in any of the following
:-
(a) removal of goods without the cover of an invoice and without
payment of duty;
(b) removal of goods without declaring
the correct value for payment of duty, where a portion of sale price, in excess
of invoice price, is received by him or on his behalf but not accounted for in
the books of account;
(c) taking of CENVAT Credit
without the receipt of goods specified in the document based on which the said
credit has been taken;
(d) taking of CENVAT Credit
on invoices or other documents which a person has reasons to believe as not
genuine;
(e) issuing duty of excise
invoice without delivery of goods specified in the said invoice;
(f) claiming of refund or
rebate based on the duty of excise paid invoice or other documents which a
person has reason to believe as not genuine;
(g) removal of inputs as such on which
Cenvat credit has been taken, without paying an amount equal to credit availed
on such inputs in terms of sub-rule (5) of rule 3 of the Cenvat Credit Rules,
2004,
the Chief Commissioner of Central
Excise may order for withdrawal of facilities or impose the restrictions as
specified in para 2 of this notification.
2. Facilities
to be withdrawn and imposition of restrictions.- (1) Where a manufacturer is
prima facie found to be knowingly involved in committing the offences specified
in para 1, the Chief Commissioner of Central Excise may impose
following restrictions on the facilities, namely:-
(i) the monthly
payment of duty of excise may be withdrawn and the assessee shall be
required to pay duty of excise for each consignment at the time of removal of
goods;
(ii) payment of
duty of excise by utilisation of CENVAT credit may be restricted and
the assessee shall be required to pay duty of excise without utilising the
CENVAT credit;
(iii) the assessee may
be required to maintain records of receipt, disposal, consumption and inventory
of the principal inputs on which CENVAT credit has not been taken;
(iv) the assessee may
be required to intimate the Superintendent of Central Excise regarding receipt
of principal inputs in the factory on which CENVAT credit has or has not been
taken, within a period specified in the order and the said inputs shall be made
available for verification upto the period specified in the order:
Provided that
where a person is found to be knowingly involved in committing any one or more
type of offences as specified in para 1 subsequently, every removal
of goods from his factory may be ordered to be under an invoice which shall be countersigned
by the Inspector of Central Excise or the Superintendent of Central Excise
before the said goods are removed from the factory or warehouse.
Explanation.- For the purposes of
this paragraph, it is clarified that-
(i) a person
against whom the order under sub-para (2) of para 4 has been
passed may continue to take CENVAT credit, however, he would not be able to
utilize the credit for payment of duty during the period specified in the said
order.
(ii) “principal
inputs” means any input which is used in the manufacture of final products
where the cost of such input constitutes not less than 10% of the total cost of
raw materials for the manufacture of unit quantity of a given final product.
(iii) if the assessee commits
any offence specified in para 1 for the first time, the period of
imposition of restrictions may not be more than 6 months.
(iv) if the assessee commits
any offence specified in para 1 subsequently, the period of
imposition of restrictions shall not be more than 1 year.
(2) Where a first stage or second
stage dealer is found to be knowingly involved in committing the type of
offence specified at clauses (d) or (e) of para 1, the Chief
Commissioner of Central Excise may order suspension of the registration granted
under rule 9 of the Central Excise Rules, 2002 for a specified period.
(3) During the period of
suspension, the said dealer shall not issue any Central Excise Invoice:
Provided
that he may continue his business and issue sales invoices without showing duty
of excise in the invoice and no CENVAT credit shall be admissible to the
recipient of goods under such invoice.
(4) Where a merchant exporter is found
to be knowingly involved in committing the type of offence specified in clause
(f) of para 1, the Chief Commissioner of Central Excise may order
withdrawal of the self sealing facility for export consignment and each export
consignment shall be examined and sealed by the jurisdictional Central Excise
Officer:
(5) If a manufacturer, first stage
dealer or second stage dealer or an exporter does anything specified in clause
(f) of para 1, the Chief Commissioner of Central Excise may order
withdrawal of the other facility available to them.
3. Monetary limit.- The
provisions of this notification shall be applicable only in a case where the
duty of excise or CENVAT Credit alleged to be involved in anything specified
in para 1 exceeds rupees ten lakhs.
4. Procedure.- (1) The Commissioner of
Central Excise or Additional Director General of Central Excise Intelligence,
as the case may be, after examination of records and other evidence, and after
satisfying himself that the person has knowingly committed the offence as
specified in para 1, may forward a proposal to the Chief Commissioner
of Central Excise, to withdraw the facilities and impose restriction during or
for such period, within 30 days of the detection of the case, as far as
possible.
(2) The Chief Commissioner of Central
Excise shall examine the said proposal and after satisfying himself that the
records and evidence relied upon in the said proposal are sufficient to form a
reasonable belief that the person has knowingly done or contravened anything
specified in para 1, may issue an order specifying the type of
facilities to be withdrawn or type of restrictions to be imposed, along with
the period for which the said facilities will not be available or the period
for which the restrictions shall be operative:
Provided that the Chief Commissioner of Central Excise, before issuing the
order, shall give an opportunity of being heard to the person against whom the
proceedings have been initiated and shall take into account any representation
made by such person before he issues the order.
5. Proposals
which are pending before the officer authorized by the Central Board of Excise
and Customs or the Director General of Central Excise Intelligence in terms of
notification no. 05/2012-Central Excise (N.T.), dated the 12th March,
2012, on the date of coming into force of this notification, shall be
transferred to the Chief Commissioner of Central Excise, who shall decide the
same in accordance with the procedure specified in paragraph 4 and the
proposals pending before the Chief Commissioner of Central Excise shall also be
decided accordingly.
F. No. 267/13/2013-CX.8
(Pankaj Jain)
Under Secretary to the Government of
India