Adjudication of demands issued in terms of Rule 57 (I) (1) of Central Excise Rules, 1944 - Clarification regarding. - Central Excise - 66/88

Adjudication of demands issued in terms of Rule 57 (I) (1) of Central Excise Rules, 1944 - Clarification regarding. Circular No. 66/88 Dated 20-12-1988 [From F. No. 267/86/88-CX.8] Government of India Central Board of Excise Customs New Delhi Subject : Adjudication of demands issued in terms of Rule 57 (I) (1) of Central Excise Rules, 1944 - Clarification regarding. Rule 571 has been amended vide Notification No. 28/88-CE (NT), dated 10-6-88 to provide for a time limit similar to that available under Rule 56A (5) (vi) for recovering Modvat Credit wrongly availed by an assessee after issue of show causs notice by proper officer. Doubts have been raised whether the show cause notice under Rule 57I for a period of 5 years should be issued by the Collector himself or by the respective adjudicating officers . It is observed that under section 11A of the Central Excises Salt Act, 1944, Collector himself is legally required to issue show casue notices in case of short levy of duty due to suppression of facts, wilful misstatement collusion etc. Hoever under the amended Rule 57I show cause notices for wrong availment of Modvat credit can be issued by proper officer, including those alleging suppression of facts, wilful misstatement, collusion etc. The matter has been examined by the Board. To have uniformity in the matter, it has been decided that show cause notices under Rule 57I for wrong availment of Modvat Credit due to suppression of facts, wilful misstatements collusion etc. invoking 5 years period should be issued and decided by the collectors only. In all other cases of wrong availment of Modvat credit, respective adjudicating officers should issue and decide the show cause notice. The above instructions may be brought to the notice of the field formations. Receipt of these instructions may please be acknowledged. This disposes of Collector of Central Excise, Bombay-III's letter F. No. Gon (30) 109/88, dated 17-11-1988.