Board Constitutes Chief
Commissioners to Write Off Irrevocable Arrears of Revenue, Fine and Penalty
[Ref: CBEC Circular 946 dated 1 June 2011]
Sub: Writing off of arrears of Central Excise duty and Customs duty - Constitution
of Committees to advise the authority for writing off of arrears
I am directed to invite reference
to the instructions contained in Board’s Circulars F.No.
290/4/85-CX.9 dated 22.3.85 and F.No. 290/20/90-CX.9
dated 21.9.1990, on the subject of write off of arrears of irrecoverable dues.
2. In the context of revision of the delegated powers to write off
irrecoverable tax arrears, most of the Chief Commissioners did not recommend
any enhancement of the existing monetary limits prescribed vide Board’s
Circular dated 21.9.1990. On the other
hand, the Chief Commissioners suggested adoption of a Committee system for
deciding cases of write off of arrears as followed by the CBDT. It is seen that CBDT, while revising the
delegated powers to write off arrears, has prescribed constitution of
Committees at different levels for taking a decision to write off arrears in
deserving cases.
3. It has, therefore, been decided by the Board to constitute three -
member Committees of Chief Commissioners and Commissioners, which will examine
the proposals for write – off of irrecoverable arrears and recommend deserving
cases to the authority competent to order such write – off in terms of the
Board’s Circular dated 21.9.1990. While
the Committee of Chief Commissioners shall be constituted by the Board, as and
when necessary, on the basis of the request of the Zonal Chief Commissioner,
the Committee of the Commissioners shall be constituted by the Zonal Chief
Commissioner, as and when necessary, on the basis of request of the
jurisdictional Commissioner. The Chief
Commissioner (TAR) shall be an ex-officio Member of each Committee of Chief
Commissioners to ensure uniformity in approach and decision making by such
Committees. Similarly, one of the Commissioners (TAR) to be nominated by the
Chief Commissioner (TAR), shall be a Member of each
Committee of Commissioners. Whenever a proposal for write - off of
irrecoverable arrears is submitted by the Deputy/Assistant Commissioner in the
prescribed format (Annexure A), the Zonal Chief Commissioner or the
jurisdictional Commissioner, depending on the amount of duty/tax proposed to be
written off, shall examine the proposal and if prima - facie satisfied, request
the Board or the Zonal Chief Commissioner, as the case may be, for constitution
of an appropriate Committee. The Committee so constituted shall examine the
proposals and on the basis of the recommendation of the Committee, the
competent authority shall write – off arrears in deserving cases, in accordance
with the powers delegated for the purpose.
4. The constitution of the Committees and the powers to write off,
delegated to the competent authorities are as under:-
|
Sl.No. |
Competent
Authority |
Constitution
of the Committee |
Powers
delegated |
|
1. |
Chief Commissioner
of Customs & Central Excise/
Central Excise/ Customs |
Committee
of two Chief Commissioners of Customs
& Central Excise/ Central Excise/ Customs and the Chief Commissioner
(TAR) |
(a)
Full powers for abandonment of irrecoverable amounts of fines and penalties
imposed under Customs Act, 1962, and Central Excise Act, 1944. (b) To
write off irrecoverable amounts of Customs/Central Excise duties upto Rs. 15 lakh subject to a
report to the Board. |
|
2. |
Commissioner
of Customs & Central Excise /
Commissioner of Customs / Commissioner of Central Excise |
Committee
of two Commissioners of Customs &
Central Excise/ Central Excise/ Customs and one Commissioner (TAR) nominated
by CC(TAR)) |
(a)
Full powers for abandonment of irrecoverable amounts of fines and penalties
imposed under Customs Act, 1962, and Central Excise Act, 1944. (b) To
write off irrecoverable amounts of Customs/Central Excise duties upto Rs. 10 lakh subject to a
report to the Chief Commissioner. |
5. As regards
write off of interest amount, it is clarified that once duty involved is
written off, the interest due thereon would get automatically written off. It
is also clarified that the duty/ tax involved in the case would determine the
level of authority/Committee competent to write off the amount involved.
6. As for
writing off of arrears of service Tax, action is being initiated for suitable
amendment of DFPR before proceeding with the writing off.
7. The field
formations are, therefore, directed to take action on the above lines. If any
difficulty is faced, the same should be brought to the notice of the Board.
Annexure-A
Proforma for Sending
Proposals for Write-Off of Irrecoverable Arrears of Revenue
Range:
Division:
COMMISSINE
|
1.
|
Name
of the Defaulter: |
|
|
2
|
Address:
|
|
|
3
|
Registration
No.: |
|
|
4
|
Name
of the commodity and CETH/ Service: |
|
|
5
|
Brief
facts of the case (if necessary, separate sheet may be attached): |
|
|
6
|
Date
of issue of Show Cause Notice and of Adjudication of the case with copy of
Adjudication Order: |
|
|
7
|
Details
of efforts made : |
|
|
|
(A)
for realizing amounts from any money owed to the defaulter |
|
|
|
(B)
for attachment and sale of excisable goods belonging to the defaulter |
|
|
|
(C)
for attachment and sale of goods belonging to the defaulter, under the
control of Customs |
|
|
|
(D)
to detain the goods under the provision of Section 142 (1) (C) made
applicable to Central Excise |
|
|
|
(E)
to sell the detained goods |
|
|
|
(F)
to attach the goods in the possession of custody of
the transferee/successor under Section 11 of Central Excise Act, 1944. |
|
|
|
(G)
to ascertain the location of any movable/immovable assets belonging to the
defaulter through |
|
|
|
(i) enquiry with other Government
Deptts. |
|
|
|
(ii)
enquiry with Bankers of the defaulter |
|
|
8. |
Amount to be
written off: |
|
|
|
Total amount due:
|
Rs. |
|
|
Duty |
Rs. |
|
|
Penalty |
Rs. |
|
|
Fine |
Rs. |
|
|
Less: |
|
|
|
Amount realized
from the defaulter |
Rs. |
|
|
Amount recovered
out of |
|
|
|
Sale of goods |
Rs. |
|
|
Sale of excisable
goods |
Rs. |
|
|
Sale of movable
property |
Rs. |
|
|
Sale of immovable
property |
Rs. |
|
|
Appropriation of
Bank Guarantee, if any |
Rs. |
|
|
Adjustment of
Refunds |
Rs. |
|
|
Other (specify) |
Rs. |
|
|
Net amount to be
written off |
Rs. |
|
9. |
Details of
financial position of the defaulter |
|
|
10. |
Whether any
property alienated since the raising of the demand for duty. Step taken to
check alienation of property and recovery possibilities out of the same |
|
|
11 |
(a) Whether
defaulter has been prosecuted? if not, reasons
thereof. |
|
|
|
(b) Results of
prosecution launched |
|
|
12 |
Whether
non-recoverability of amount was on account of any defects in Rules and/or
procedures, the amendment of which requires the order of higher authorities? |
|
|
13 |
Whether there has
been any serious negligence on the part of the Government Servants which may
call for disciplinary action taken against them. |
|
|
14 |
Name and
designation of the Government Servants, if any, responsible for causing loss
of revenue and action taken against them. |
|
|
15 |
Any other
relevant facts/ remarks |
|
F. No. 296/10/2009-CX-9