9911796707
TMI BlogEvasion of Central Excise duty by bulk drug manufacturers on drug intermediates - Adjustment of duties period voluntarily - RegardingX X X X Extracts X X X X X X X X Extracts X X X X ..... recovered incriminatory documents concerning non-payment of duty on a particular drug intermediate, manufactured by it and captively consumed in exempted drugs. Confronted with the evidence regarding non-discharge of duty liability, the company paid-up duty not only for the period of five years, prior to detection but also for the prior period, demand in respect of which had otherwise, become barred by limitation. 2. The question of adjustment of amounts so deposited was examined by the Directorate in consultation with the Senior Government Counsel, Shri M.T. Sethha of Bombay who opined that the provisions under Section 11A of Central Excises and Salt Act, 1944 are formal in nature and, therefore, should not be resorted to and advised tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t during the scrutiny of records undertaken by the Directorate General of Anti-Evasion, Bombay. 2. Redeeming feature of this episode is that all the four concerned Companies have volunteered to pay the dues in its entirety. Letters to this effect have also been issued by them to the Department. In fact even the payment has been made. Thus the only question that remains is which would be the proper course under the statute to appropriate this amount towards the dues. I had held discussion and have also considered whether the Department can invoke provisions of Section 11A (Proviso) and claim the balance amount and appropriate the same towards short-levy of Excise duty. However, it appear to me that the better course would be to appropriate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry duty to file returns, the information that became available from the returns filed in respect of the finished product (the information namely that the finished product was subject to exemption/Nil rate of duty) and the information and further enquiry have brought to light the assessee's failure in respect of the statutory liability primarily flowing from said Rule 173B. The failure of the assessee to discharge the statutory obligation flowing from Rule 173B also resulted in their failure to comply with the provisions of Rule 173F. 4. However, as the concerned assessee Companies have voluntarily admitted their liabilities and have in fact paid, it should suffice the requirement of law if the amount of duty so paid is adjusted and appropr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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