Instructions regarding launching of prosecution and arrest under the Central Excise Act, 1944 - Central Excise - F. No. 208/21/2007-CX. 6

M.F. (D.R.) Letter F. No. 208/21/2007-CX. 6 Dated 15-6-2007 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Instructions regarding launching of prosecution and arrest under the Central Excise Act, 1944. Attention in invited to Chapter 17 of the CBEC's Excise Manual of Supplementary Instructions, wherein instructions regarding arrest and prosecution have been enumerated. 2. I am directed to say that as per the Central Excise Act, 1944, any Central Excise Officer not below the rank of Inspector with prior approval of the Commissioner can arrest any person under section 13 whom he has reason to believe is liable to punishment under the Central Excise Act or the rules made thereunder. Further prosecution can be launched under section 9 for the offences covered under section 9(1) of the Act. As per provisions of section 9AA, prosecution may be launched against any person, Director, Manager or any other person who is responsible for conduct of business of the company/firm and is found guilty of the offences under the Act/Rules. It has been provided that prosecution may be launched in cases involving duty amount of Rs. 25 lakh or more. However, prosecution can be considered in case of habitual offenders irrespective of monetory limit prescribed, if circumstances so warrant. As per the procedure laid down for launching of prosecution, the Commissioner of Central Excise should process and forward the proposal to the Chief Commissioner (or the Director General of Central Excise Intelligence as the case my be) in cases which are fit for launching of prosecution. As per the instructions issued in this regard, the Chief Commissioner or DG, (CEI) has power to sanction prosecution. It is also mentioned that the decision to launch prosecution should be taken by the adjudicating authority immediately after the passing of adjudication order. 3. In the regard, there cannot be two opinion, that the provisions regarding arrest, prosecution etc. are effective tools in the hands of the department to tackle the problem of evasion of duty and to raise the level of compliance to tax laws. There is need that best possible use of these provisions are made by the departmental officers in appropriate cases. Therefore, it is once again reiterated that the guidelines regarding arrest and launching prosecution issued by the Board from time-to-time are followed scrupulously. All the cases involving duty amount of more than Rs. 25 lakhs should be examined from the point of view of launching prosecution. Further, once the prosecution is sanctioned, the compliant should be filed in court immediately. 4. Suitable instructions may be given to the field formations. 5. The receipt of the letter may be acknowledged.