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TMI BlogCentral Excise – Guidelines for launching of Prosecution under the Central Excise Act, 1944 and Finance Act, 1994 regarding Service tax-X X X X Extracts X X X X X X X X Extracts X X X X ..... 994 regarding enhancement of monetary limit. (4) Circular No. 35/35/94-CX dated 29.04.1994 issued from F. No. 208/22/93-CX.6. (5) Letter F. No. 203/05/98-CX.6 dated 06.04.1998 regarding making DG, CEI competent authority to sanction prosecution in respect of cases investigated by DGCEI. (6) Letter F. No. 208/05/98-CX.6 dated 20.10.1998. (7) Letter F. No. 208/21/2007-CX.6 dated 15.06.2007. (8) Circular no 140/9/2011-Service Tax dated 12-5-2011. In supersession of these instructions and circulars, following consolidated guidelines are hereby issued for launching prosecution under the Central Excise Act, 1944 and the Finance Act, 1994. 3. Person liable to be prosecuted 3.1 Whoever commits any of the offences specified under sub-section (1) of Section 9 of the Central Excise Act, 1944 or sub-section (1) of section 89 of the Finance Act, 1994 , can be prosecuted. Section 9AA (1) of Central Excise Act, 1944 provides that where an offence under this Act has been committed by a company, every person who, at the time offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessed. The evidences collected should be adequate to establish beyond reasonable doubt that the person, company or individual had guilty mind, knowledge of the offence, or had fraudulent intention or in any manner possessed mens-rea (guilty mind) for committing the offence. 5. Authority to sanction prosecution 5.1 The criminal complaint for prosecuting a person should be filed only after obtaining the sanction of the Principal Chief/Chief Commissioner of Central Excise or Service Tax as the case may be. 5.2 In respect of cases investigated by the Directorate General of Central Excise Intelligence (DGCEI), the criminal complaint for prosecuting a person should be filed only after obtaining the sanction of Principal Director General/ Director General, CEI. 5.3 An order conveying sanction for prosecution shall be issued by the sanctioning authority and forwarded to the Commissionerate concerned for taking appropriate action for expeditious filing of the complaint. 6. Procedure for sanction of prosecution 6.1 Prosecution proposal should be forwarded to the Chief Commissioner / Principal Chief Commissioner or Director General / Principal Director General of DGCEI ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 266)ELT 294 (SC)] has interalia , observed the following :- (i) adjudication proceedings and criminal proceedings can be launched simultaneously; (ii) decision in adjudication proceedings is not necessary before initiating criminal prosecution; (iii) adjudication proceedings and criminal proceedings are independent in nature to each other and (iv) the findings against the person facing prosecution in the adjudication proceedings is not binding on the proceeding for criminal prosecution. Therefore, prosecution may even be launched before the adjudication of the case, especially where offence involved is grave, qualitative evidences are available and it is also apprehended that party may delay completion of adjudication proceedings. 6.5 Principal Commissioner/Commissioner or ADG (Adjudication) acting as adjudicating authority should indicate at the time of passing the adjudication order itself whether he considers the case to be fit for prosecution so that it can be further processed and sent to Principal Chief Commissioner/ Chief Commissioner or Principal Director General/ Director General of DGCEI, as the case may be, for sanction of prosecution. Where at the time of adj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chief/ Chief Commissioner for taking a decision on sanction for launching prosecution. The format of investigation report is annexed as Annexure-I to this circular. A criminal complaint in a court of law should be, filed by the jurisdictional Commissionerate only after the sanction of the Principal Chief / Chief Commissioner or Principal Director General/Director General of DGCEI has been obtained. 6.8 Principal Commissioner/Commissioner or Additional Director General (Adjudication) shall submit a report by 10 th of every month to the Principal Chief /Chief Commissioner or the Principal Director General/ Director General of CEI, who is the sanctioning authority for prosecution, conveying whether a view on launching prosecution has been taken in respect of adjudication orders issued during the preceding month. 6.9 Once the sanction for prosecution has been obtained, criminal complaint in the court of law should be filed as early as possible by an officer of the jurisdictional Commissionerate authorized by the Commissioner. 6.10 It has been reported that delays in the Court proceedings are often due to non-availability of the records required to be produced before the Magi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s shall be accorded by Principal Chief/ Chief Commissioner or Principal Director General/ Director General of DGCEI. 9. Publication of names of persons convicted: 9.1 Section 9B of the Central Excise Act, 1944 also made applicable to Service Tax vide section 83 of the Finance Act,1994 grants power to publish name, place of business etc. of the person convicted under the Act by a Court of Law. The power is being exercised very sparingly by the Courts. It is directed that in deserving cases, the department should make a prayer to the Court to invoke this section in respect of all persons who are convicted under the Act. : 10.1 Procedure for withdrawal of sanction-order of prosecution 10.1.1 In cases where prosecution has been sanctioned but complaint has not been filed and new facts or evidences have come to light necessitating review of the sanction for prosecution, the Commissionerate or the DGCEI unit concerned should immediately bring the same to the notice of the sanctioning authority. After considering the new facts and evidences, the sanctioning authority namely Principal Chief/ Chief Commissioner or Principal Director General or Director General of DGC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of this Circular may please be acknowledged. Hindi version will follow. Yours faithfully, (ROHAN) Under Secretary to the Govt. of India Annexure-I F. No. INVESTIGATION REPORT FOR THE PURPOSE OF LAUNCHING PROSECUTION AGAINST .. COMMISSIONERATE DIVISION .. Name address of the person(s) (including legal person(s): Central Excise/Service Tax Registration No.(If any): Nature of offence including commodity: Charges: Period of offence: Amount of evasion involved Particular of persons proposed to be prosecuted : (a) Name: (b) Father s Name: (c) Age : Sex: (d) Address: (e) Occupation: (f) Position held in the Company/Firm: (g) Role played in the offence : (h) Material evidence available against the accused (please indicate separately documentary and oral evidence). (i) Action ordered ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18 19 20 ANNEXURE-III FORMAT OF PROSECUTION REGISTER TO BE MAINTAINED BY DGCEI Sl.No. Date of Receipt of O-in-O in DGCEI Date of submission of Investigation report Date of Receipt of Sanction Order from DG,CEI Sanction Order No. Date 1 2 3 4 5 Date of filing of Complaint in Court Criminal Complaint No. File No. of Commissionerate Name of Commissionerate Details of Order passed by Court 6 7 8 9 10 - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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