Action for shortfall in achievement of NFE after 3rd year of commencement - Central Excise Practice Manual (OLD) - Central Excise

Action for shortfall in achievement of NFE after 3rd year of commencement In case the unit fails to achieve positive NFE at the end of 3rd year or subsequent year, show cause notice under FT (D R) Act shall be issued to the unit. If after the completion of first five years the unit is found to have failed in achieving positive NFE, as per EOU/SEZ Scheme, the Development Commissioner would initiate penal action under the FT (D R) Act, 1992 . The action under FTDR will be initiated only after completion of 5 years as net +NFE shall be computed cumulatively over a period of five years. Although it is provided that show cause notice would be issued if the unit fails to achieve +NFE after the end of 3rd year, but action for non-achievement can be initiated only after completion of the 5th Year.