Central Excise - Unnecessary references for clarification resulting in delays in collection of revenue - Regarding - Central Excise - 1/86-CX. 7

Central Excise - Unnecessary references for clarification resulting in delays in collection of revenue - Regarding Circular No. 1/86-CX. 7 Dated 28-5-1986 [From F. No. 234/05/85-CX. 7] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Central Excise - Unnecessary references for clarification resulting in delays in collection of revenue - Regarding. I am directed to state that the Public Accounts Committee, in a recent report has commented adversely in a case where unnecessary references were made by jurisdictional officers to senior authorities for clarification despite clear instructions on those subjects. This resulted in non-collection of a considerable amount of duty. The Committee has desired that the failure in timely collection of duty on account of the unnecessary references made by various levels of authorities should be enquired into and responsibility fixed for disciplinary action (relevant extract of PAC's Report is reproduced below). 2. You are, therefore, directed to ensure that no unnecessary references are made by jurisdictional officers to which are unambiguous in nature. Any reference made on minor point of ambiguity, despite the intention of the notification/Rule being quite clear would not/appreciated especially if such reference results in delay in timely assessment or non-collection of duty. Some assessees are noted to benefit from such indecisioness by approaching the Courts for obtaining ex parte stays, which result in further blocking up of revenue for considerable periods. In cases where there is any doubt on some provision contained in a notification/rule, the Collectors personally in order to resolve the issue expeditiously and initiate action for ensuring collection of revenue in time. Twenty third report (Public Accounts Committee 1985-86) (Eighth Lok Sabha). Para 1.52 It is clear that excise authorities failed to take appropriate action in regard to M/s. Modi Rubber Limited. The facts are not and were never in dispute. The orders of Government are also clear and no ambiguity existed. It is difficult therefore to see why action to rectify matters was not taken as soon as the error was brought to the notice of the senior officers. The Assistant Collector instead of taking action on his own referred the matter to the Collector who in turn referred to the Department. It is difficult to understand why any reference was necessary. In these circumstances, it seems desirable that responsibility for the failure at have occurred in the case of M/s. Modi Rubber Limited in the levy of excise duty should be fixed after an appropriate enquiry and disciplinary action as may be called for as a result of this enquiry should be taken.