Launching of prosecution for fradulent /deliberate evasion of excise duty - Central Excise - 371/4/98

Circular No. 371/4/98-CX dated 14/1/98 [F.No.267/45/93-CX-8(Pt.V)] Government of India Ministry of Finance (Department of Revenue), New Delhi Subject: Examination of the Para 3.48 by the Public Accounts Committee (1995-96) out of the report of the C AG of India for the year ended 31.3.92 (No. 4 of 1993) regarding fraudulent availment of Modvat Credit by M/s. Sipani automobiles Limited, Bangalore-Regarding. I am directed to refer to Board's Circular No. 178/12/96-CX dated 28.2.1996. Based on the recommendation of the PAC, directions were issued vide aforesaid circular of the Board for taking immediate action for launching prosecution under Central Excise Salt Act, 1944 and the IPC 1860 with respect to unscrupulous cases indulging in fraudulent/ naked evasion of excise duty. 2. The aforesaid instructions of the Board are reiterated I am directed to say that they should be scrupulously complied with. It has been desired by the Board that all such cases should be personally) monitored by the jurisdictional Chief Commissioners of Central Excise and a periodical (quarterly) report should be furnished to the Board regarding the progress of every individual case. 3. Receipt of this Circular may please be acknowledged. Sd/- (Mallika Arya) Under Secretary to the Govt. of India