Regarding writing off of arrears of Central Excise duty, Customs duty and Service Tax - Constitution of Committees to advise the authority for writing off of arrears - Central Excise - 971/05/2013-CX

CIRCULAR NO. 971/05/2013-CX Government of India Ministry of Finance Department of Revenue Central Board of Excise Customs Dated: May 29, 2013 Sub: Writing off of arrears of Central Excise duty, Customs duty and Service Tax - Constitution of Committees to advise the authority for writing off of arrears-reg. I am directed to refer to the Circular No. 946/07/2011 dated 01.06.2011 issued from this file number on the subject and to say that certain amendments have been made in the Delegation of Financial Power Rules, 1978 vide S.O. 3624 dated 14.12.2012. A copy of the said notification is enclosed. 2. With this amendment, the authorities competent to write-off the arrears of Central Excise and the Commissioner of Service Tax are also delegated powers to write-off the arrears of Service Tax as well. Consequently, the constitution of the Committees for examining the proposals for write-off of irrecoverable arrears and recommending deserving cases to the authority competent to order such write- off, also requires modification. Hence, para 4 5 of the Circular No. 946/07/2011 be substituted by the following :- 4. The constitution of the Committees and the powers to write off, delegated to the competent authorities are as under:- S. No. Competent Authority Constitution of the Committee Powers delegated 1. Chief Commissioner of Customs Central Excise/ Central Excise/ Customs Committee of two Chief Commissioners of Customs Central Excise/ Central Excise/ Customs and the Chief Commissioner (TAR) (a) Full powers for abandonment of irrecoverable amounts of fines and penalties imposed under the Customs Act, 1962 , the Central Excise Act, 1944 , the Gold Control Act, 1968 and the Finance Act, 1994 ; and (b) To write off irrecoverable amounts of Customs or Central Excise duty or Service Tax upto Rs . 15 lakhs subject to a report to the Board. 2. Commissioner of Customs Central Excise / Commissioner of Customs / Commissioner of Central Excise/ Commissioner of Service Tax Committee of two Commissioners of Customs Central Excise/ Central Excise/ Customs/ Service Tax and one Commissioner (TAR) nominated by CC(TAR)) (a) Full powers for abandonment of irrecoverable amounts of fines and penalties imposed under the Customs Act, 1962 , the Central Excise Act, 1944 , the Gold Control Act, 1968 and the Finance Act, 1994 ; and (b) To write off irrecoverable amounts of Customs or Central Excise duty or Service Tax upto Rs . 10 lakhs subject to a report to the Chief Commissioner. 5. As regards write off of interest amount, it is clarified that once duty/ tax involved is written off, the interest due thereon would get automatically written off. It is also clarified that the duty/ tax involved in the case would determine the level of authority/Committee competent to write off the amount involved. . F. No. 296/10/2009-CX- 9( Pt.) ( Surendra Singh) Under Secretary to the Govt. of India Ministry of Finance (Department of Expenditure) New Delhi Dated: December 14, 2012 S.O.3624.- In pursuance of clause (3) of article 77 of the Constitution, the President hereby makes the following rules further to amend the Delegation of Financial Powers Rules, 1978, namely:- 1. (1) These rules may be called the Delegation of Financial Powers (Amendment) Rules, 2012. (2) They shall come into force on the date of their publication in the Official Gazette. 2. In Schedule VII to the Delegation of Financial Powers Rules, 1978, in the Table; in the entries relating to the heading Loss of Revenue for item (iv) and the entries relating thereto under columns (2) and (3) under the heading Authority and Monetary limit upto which the loss may be written off in each case , the following item and entries shall respectively be substituted, namely:- Authority Monetary limit up to which the loss may be written off in each case (iv)(a) Chief Commissioner of Customs and Central Excise/Chief Commissioner of Customs (a) Full powers for abandonment of irrecoverable amounts of fines and penalties imposed under the Customs Act, 1962 , the Central Excises Act, 1944 , the Gold Control Act, 1968 and the Finance Act, 1994 ; and (b) To write off irrecoverable amounts of customs or central excise duty or service tax upto ₹ 15 lakhs subject to a report to the next higher authority. (b) Commissioner of Customs and Central Excise (a) Full powers for abandonment of irrecoverable amounts of fines and penalties imposed under the Customs Act, 1962 , the Central Excise Act, 1944 , the Gold Control Act, 1968, and the Finance Act, 1994 ; and (b) To write off irrecoverable amounts of customs or central excise duty or service tax upto ₹ 10 lakhs subject to a report to the next higher authority. (c) Commissioner of Customs (a) Full powers for abandonment of irrecoverable amounts of fines and penalties imposed under the Customs, Act, 1962 , the Gold Control Act, 1968; and (b) To write off irrecoverable amounts of customs duty upto ₹ 10 lakhs subject to a report to the next higher authority. (d) Commissioner of Central Excise (a) Full powers for abandonment of irrecoverable amounts of fines and penalties imposed under the Central Excise Act, 1944 , the Gold Control Act, 1968 and the Finance Act, 1994 ; and (b) To write off irrecoverable amounts of central excise duty or service tax upto ₹ 10 lakhs subject to a report to the next higher authority. (e) Commissioner of Service Tax (a) Full powers for abandonment of irrecoverable amounts of fines and penalties imposed under the Finance Act, 1994 ; and (b) To write off irrecoverable amounts of service tax upto ₹ 10 lakhs subject to a report to the next higher authority. Note:- The exercise of powers in respect of cases of writing off of irrecoverable amounts of revenue (Customs Duty, Central Excise Duty and Service Tax) and abandonment of irrecoverable amounts of fines and penalties arising under the Customs Act, 1962 , the Central Excise Act, 1944 , the Gold Control Act, 1968 and the Finance Act, 1994 , shall be subject to a report being made to the Accountant General concerned in accordance with the provisions of rule 19 of the General Financial Rules, 2005. (F. No.1(27)/E.II(A)/2011) (R Prem Anand) Under Secy. Note:- The principal rules were published in the Gazette of India Part II, Section 3, Sub-section (ii) vide number S.O.2131, dated the 22 nd July, 1978 and have subsequently been amended vide notification number:- (i) S.O. 1187 dated the 9th June, 1979 (xxiii) S.O. 2173 dated the 18th August, 1990 (ii) S.O. 2942 dated the 1st September, 1979 (xxiv) S.O. 3033 dated the 17th November, 1990 (iii) S.O. 2611 dated the 4th October, 1980 (xxv) S.O. 3414 dated the 22nd December, 1990 (iv) S.O. 2164 dated the 15th August, 1981 (xxvi) S.O. 534 dated the 28th February, 1991 (v) S.O. 2304 dated the 5th September, 1981 (xxvii) S.O. 2235 dated the 24th August, 1991 (vi) S.O. 3073 dated the 4th September, 1982 (xxviii) S.O. 547(E) dated the 24th July, 1992 (vii) S.O. 4171 dated the 11th December, 1982 (xxix) S.O. 466 dated the 13th March, 1993 (viii) S.O. 1314 dated the 26th February, 1983 (xxx) S.O. 1292 dated the 12th June, 1993 (ix) S.O. 2502 dated the 4th August, 1984 (xxxi) S.O. 685 dated the 12th March, 1994 (x) S.O. 22 dated the 5th January, 1985 (xxxii) S.O. 1232 dated the 28th May, 1994 (xi) S.O. 1958 dated the 11th May, 1985 (xxxiii) S.O. 1945 dated the 13th August, 1994 (xii) S.O. 3082 dated the 6th July, 1985 (xxxiv) S.O. 2451 dated the 24th September, 1994 (xiii) S.O. 3974 dated the 20th August, 1985 (xxxv) S.O. 174 dated the 28th January, 1995 (xiv) S.O. 5641 dated the 21st December, 1985 (xxxvi) S.O. 670(E) dated the 30th September, 1996 (xv) S.O. 1548 dated the 19th April, 1986 (xxxvii) S.O. 665(E) dated the 5th August, 1998 (xvi) S.O. 3183 dated the 20th September, 1986 (xxxviii) S.O. 1835 dated the 19th September, 1998 (xvii) S.O. 3787 dated the 8th November, 1986 (xxxix) S.O. 2274 dated the 14th August, 1999 (xviii) S.O. 2508 dated the 19th September, 1987 (xl) S.O. 3054 dated the 23rd October, 1999 (xix) S.O. 3092 dated the 7th November, 1987 (xli) S.O. 2946 dated the 3rd November, 2001 (xx) S.O. 3581 dated the 10th December, 1987 (xlii) S.O. 3661 dated the 23rd November, 2002 (xxi) S.O. 641 dated the 17th March, 1990 (xliii) S.O. 1970 dated the 14th July, 2007 (xxii) S.O. 1469 dated the 26th May, 1990 (xliv) S.O. 1370 dated the 29th May, 2010