Seizure of goods whether a pre-condition for ordering confiscation - Central Excise - 29/89

Seizure of goods whether a pre-condition for ordering confiscation Circular No. 29/89 Dated 2-5-1989 [From F. No. 208/6/89-CX.6] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject: Central Excise - Whether seizure of goods is a pre-condition for ordering confiscation - Regarding. A case has come to the notice of the Board where a Collector of Central Excise has taken the view in his adjudication order, that the plant and machinery of a party could not be confiscated as they had not been seized. 2. The matter has been examined by the Board. Under rule 173Q plant, machinery etc. is liable to confiscation provided the duty evasion for the first time exceeds Rs. l lakh or for the second time exceeds Rs. 10,000/-. There is no requirement of seizure of plant and machinery etc. before confiscation under rule 173Q. What is required to be done is to observe the principles of natural justice by issuing a show cause notice as per rule 233-A and affording reasonable opportunity to the party to make representation in writing as well as in person before any order for confiscation relating to the plant and machinery etc., is made. However, as a matter of abundant caution a direction should invariably be issued to assessee not to alter or dispose of plant or machinery which is contemplated to be confiscated. 3. Field formations may be suitably advised.