Central Excise - Issue of Show Cause Notice before confiscation of plant and machinery as per Rule 233(A) of Central Excise Rules - Regarding - Central Excise - 21/90

Central Excise - Issue of Show Cause Notice before confiscation of plant and machinery as per Rule 233(A) of Central Excise Rules - Regarding Circular No. 21/90 Dated 6-12-1990 [From F. No. 208/82/90-CX.6] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise and Customs, New Delhi Subject : Central Excise - Issue of Show Cause Notice before confiscation of plant and machinery as per Rule 233(A) of Central Excise Rules - Regarding. Reference Board's Circular No. 29/89-CX.6, dated 2-5-1989 (F.No. 208/6/89-CX.6) on the above subject. It has come to the notice of the Board that some doubts exist in the field formations regarding the authority of the Central Excise Officers to issue a Show Cause Notice under Rule 233(A) of Central Excise Rules, 1944 with a direction not to alter or dispose off the plant and machinery which is proposed to be confiscated. 2. The matter has been reviewed by the Board. The Board has observed that there is no provision in the Central Excises Salt Act, 1944 or the rules made thereunder empowering a Central Excise officer to issue a direction to the assessee restraining him from altering or disposing off the plant and machinery which is proposed to be confiscated under a notice issued as per Rule 233(A) of Central Excise Rules, 1944. However, it is open to the Department to effect seizure of plant and machinery, when confiscation is proposed and resort to the proviso clause under Section 110(1) of the Customs Act, 1962, as made applicable mutatis mutandis to like matters in respect of Central Excise and serve an order to the owner of the goods (where it is not practical to seize such goods) not to remove, part with or otherwise deal with the goods, except with the previous permission of the officer who issued such direction. 3. Instructions issued in Circular No. 29/89 may be treated as modified accordingly. 4. Field formations may be advised suitably.