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Withdrawal from prosecution in Central Excise cases older than 15 years involving duty less than rupees five lakhs

Central Excise - 1018/6/2016-CX - Dated:- 29-2-2016 - Circular No. 1018/6/2016-CX F. No. 96/54/2014-CX.1 Government of India Ministry of Finance Department of Revenue Central Board of Excise & Customs New Delhi, dated the 29th February, 2016 To, Principal Chief Commissioners/Chief Commissioners of Central Excise (All), Principal Chief Commissioners/Chief Commissioners of Central Excise & Service Tax (All), Principal Commissioner of Central Excise, Service Tax (All), Web-master, CBEC Sir/ .....

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to the notice of the Court alongwith all supporting facts at the proper time in terms of Sections 257 and 321 of CrPC 1973. 2. The issue has been examined. The present limit for arrest and prosecution in Central Excise cases is Rupees one crore which was made effective vide Circular No. 1010/17/2015-CX dated 23.10.2015. Earlier, the limit for launching prosecution was Rs.25 Lakhs, which came into effect vide letter F.No. 208/31/97-CX6 dated 04.04.1994. Taking into consideration this increase in .....

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288 cases, the total amount of duty evasion involved was found to be ₹ 2.31 crore, which comes to an average of ₹ 80,000/- per case. 3. Provisions relating to withdrawal of prosecution are contained in Section 257 and Section 321 of the CrPC. Further, in the case of Sheo Nandan Paswan Vs. State of Bihar and Others, (1983) 1 SCC 438, Hon ble Supreme Court noted, while examining the scope of Section 321, four grounds for seeking withdrawal from prosecution. Out of these four grounds, .....

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lakhs and undergoing prosecution in the courts for more than fifteen years may be considered for withdrawal from prosecution. Accordingly, these cases where evasion of Central Excise duty is less than ₹ 5 lakh and pending in court for more than 15 years were brought to the notice of the Competent Authority suggesting that withdrawal from prosecution would be desirable in these cases on the following grounds: 4.1 Present limit for arrest and prosecution in Central Excise is Rupees one cror .....

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rawal from prosecution would be in conformity with the policy of the Government to reduce litigation in taxation, 4.3 Expenditure involved in continuing with such prosecution may not be commensurate with the result likely to be achieved, 4.4 The Human resources saved can be redeployed to garner more revenue for the exchequer. 4.5 Withdrawal of such cases would send a positive message to the manufacturing sector in which policy of Make in India is being actively pursued. 5. After due consideratio .....

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