Audit Report No.3 of 2017 and Audit Report No.41 of 2016 of C & AG of India (Indirect Taxes - Central Excise and Service Tax) relating to Non-lnitiation / Delay in Recovery proceedings etc. - Central Excise - 1062/2017-CX

Circular No. 1062/2017-CX F. No. 298/05/2017-CX.9 Government of India Ministry of Finance Department of Revenue CBEC Room no. 267-D, North Block, New Delhi, dated 12th December, 2017 To All principal Chief/ Chief Commissioners of CX GST/ Customs, All Director Generals of CBEC. Subject- Audit Report No.3 of 2017 and Audit Report No.41 of 2016 of C AG of India (Indirect Taxes - Central Excise and Service Tax) relating to Non-lnitiation/ Delay in Recovery proceedings etc. The undersigned is directed to refer to subject cited above. It has come to notice of the Board that the C AG while conducting audit of Commissionerates has noted grave inadequacies in its report. C AG of India has particularly pointed out inordinate delay in communication of orders-in-original, delay in recovery proceedings, non-transfer of cases to Recovery Cells absence of any mechanism to ascertain the current status of Cases. 2. Keeping in view of seriousness of the matter, the Board feels that more emphasis and better monitoring of tax arrears recovery is required at the Zone and Commissionerate level. The Zonal Chief Commissioners are hereby directed to closely look into the matter and to make it mandatory for assessees/taxpayers, above a particular threshold limit, to furnish updated details of assets to the department. Zonal Chief Commissioners may also take necessary steps to revamp the Recovery cells. Action may also be taken to review and monitor the tax arrears cases and expeditious action taken towards their liquidation. 3. C AG has also Observed that in majority of cases department has not filed application for early hearing. Further, cases wherein applications for early hearing have been filed, most of them have been dismissed by appellate forum due to improper drafting. In this context, the Chief Commissioners are advised to ensure that applications for early hearing are filed before the appropriate appellate fora after due vetting by the Law Officer. 4. All zonal Chief Commissioners are once again directed to take up the issues very seriously and prompt action should be taken. Non-compliance of the above directions will be viewed seriously. 5. This issues With the approval of Member (CX), CBEC. Yours faithfully (V. Ganesh Kumar) Under Secretary to the Govt. of India Tele:-23092413