Process for Issue of Summons in Central Excise and Service Tax

Central Board of Excise and Customs (CBEC) has issued the guidelines on 20th January 2015 through circular No. 207/07/2014-CX-6 for issue of summons in Central Excise and Service Tax matters. As per Section 14 of Central Excise Act, 1944, summons can be used in an inquiry for recording statements or for collecting evidence/ documents. Summons can be issued by  Superintendents or higher authority but only after taking prior permission of  Assistant Commissioner or higher authority with reasons of summons recorded in writing. In case not able get written permission then telephonic permission is required & same should be reduced to writing and intimated to the officer.  The officer issuing summons should submit a report or should record a brief of the proceedings in the case file and submit the same to the  officer who had authorised the issue of summons. senior management officials such as CEO, CFO, General Managers of a large company or a PSU should not generally be issued summons at the first instance. They should be summoned only when there are indications in the investigation of their involvement in the decision making process which led to loss of revenue. Instruction has also been issued vide F. No. 137/39/2007-CX.4 dated 26.2.2007 in Service Tax matters. Board has already issued a circular vide F. No 208/122/89-CX.6 dated 13.10.1989 in respect of Central Excise

 

No. 207/07/2014-CX-6

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

  New Delhi, the 20th January, 2015

 

To

 

Principal Chief / Chief Commissioners of Central Excise (All),

Principal Chief / Chief Commissioners of Central Excise of Central Excise & Service Tax (All),

Sub: Instructions regarding issue of summons in Central Excise and Service Tax matters – reg.

Madam/Sir,

It has been brought to the notice of the Board that in some instances, the summons under Section 14 of the Central Excise Act, 1944 have been issued by the field formations to the top senior officials of the companies in a routine manner to call for material evidence/ documents. Besides, summons have been issued to enforce recovery of dues, which are under dispute. As per Section 14 of Central Excise Act, 1944, summons can be used in an inquiry for recording statements or for collecting evidence/ documents. While the evidentiary value of securing documentary and oral evidence under the said legal provision can hardly be over emphasized, nevertheless, it is desirable that summons need not always be issued when a simple letter, politely worded, can also serve the purpose of securing documents relevant to investigation. It is emphasized that the use of summons be made only as a last resort when it is absolutely required.

On this issue, Board has already issued a circular vide F. No 208/122/89-CX.6 dated 13.10.1989 in respect of Central Excise. Instruction has also been issued vide F. No. 137/39/2007-CX.4 dated 26.2.2007 in Service Tax matters.

The following guidelines are being issued to be followed in both Central Excise and Service Tax matters:–

 

(i) Power to issue summons are generally exercised by Superintendents, though higher officers also issue summons. Summons by Superintendents should be issued after obtaining prior written permission from an officer not below the rank of Assistant Commissioner with the reasons for issuance of summons to be recorded in writing;

(ii) where for operational reasons it is not possible to obtain such prior written permission, oral/telephonic permission from such officer must be obtained and the same should be reduced to writing and intimated to the officer according such permission at the earliest opportunity;

(iii) In all cases, where summons are issued, the officer issuing summons should submit a report or should record a brief of the proceedings in the case file and submit the same to the  officer who had authorised the issue of summons.

Further, senior management officials such as CEO, CFO, General Managers of a large company or a PSU should not generally be issued summons at the first instance. They should be summoned only when there are indications in the investigation of their involvement in the decision making process which led to loss of revenue.

These instructions may be brought to the notice of all the field officers for strict compliance. Non observance of the instructions will be viewed seriously. Hindi version would follow.

 

 

Yours faithfully,

 

(ROHAN)

Under Secretary, (CX-6)

Notification No. 2/2012-Central Excise

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No. 2/2012-Central Excise

New Delhi, the 16th January, 2012 

G.S.R. (E). – In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 5/2006-Central Excise, dated the 1st March, 2006 which was published in the Gazette of India, Extraordinary, vide G.S.R. 95(E) dated the 1st March, 2006, namely: –

In the said notification, in the Table,-

(i) for S. No. 21A, and the entries relating thereto, the following shall be substituted, namely:-

 

(1)

(2)

(3)

(4)

(5)

“21A

71

Gold bars, other than tola bars, bearing manufacturer’s engraved serial number and weight expressed in metric units manufactured in a factory starting from the stage of-

(a) gold ore or concentrate;

(b) gold dore bar; or

(c) silver dore bar

Explanation.- For the purposes of this exemption, ‘gold dore bars’ shall mean dore bars having gold content not exceeding 95% and’silverdore bar’ shall mean dore bars having silver content not exceeding 95% accompanied by an assay certificate issued by the mining company, giving details of composition.

1.5%

-“;

 

(ii) for S. No. 21B and the entries relating thereto, the following shall be substituted, namely:-

 

(1)

(2)

(3)

(4)

(5)

“21B

71

Silver manufactured in a factory starting from the stage of-

  1. silver ore or concentrate;
  2. silver dore bar; or

    (c) golddore bar.

    Explanation.- For the purposes of this exemption, ‘gold dore bars’ and ‘silver dore bar’ shall have the same meaning as inS. No. 21A.

4%

-“;

 

(iii) for S. No. 21C, and the entries relating thereto, the following shall be substituted, namely:-

 

(1)

(2)

(3)

(4)

(5)

“21C

71

The following goods manufactured or produced during the process of copper smelting starting from the stage of copper ore or concentrate in the same factory:-

(i) gold bars , other than tola bars, bearing manufacturer’s or refiner’s engraved serial number and weight expressed in metric units and gold coin;

(ii) silver in any form

 

2%

6%

-“;

 

(iv) against S. No. 25, in column (3), for the words “silver, platinum,” the words “platinum”, shall be substituted.

2. This notification shall come into force with effect from 17th January, 2012.

 [F. No. 354/4/2012-TRU]

 
 

 [Raj Kumar Digvijay]
Under Secretary to the Government of India

Note.- The principal notification No.5/2006-Central Excise, dated the 1st March, 2006 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 95(E) dated the 1st March, 2006 and was last amended vide notification No.25/2011-Central Excise, dated the 24th March ,2011 which was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R 237 (E) dated the 24th March, 2011.

Notification No. 1/2012-Central Excise

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No. 1/2012-Central Excise

New Delhi, the 3rd January, 2012

    G.S.R. (E).-In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby directs that each of the notifications of the Government of India, in the Ministry of Finance (Department of Revenue), specified in column (2) of the Table hereto annexed shall be further amended, in the manner specified in the corresponding entry in column (3) of the said Table, namely:-

Table

S.No.

Notification No. and Date

Amendments

(1)

(2)

(3)

1.

03/2006-Central Excise,

dated the 01st March, 2006

In the said notification, in the Table, after S. No. 11 and entries relating thereto, the following entry shall be inserted, namely :-

(1)

(2)

(3)

(4)

(5)

“11A

1701 13 20, 1701 14 20

All Goods

Nil

-“.


 

 

2.

 

6/2006-Central Excise,

dated the 1st March, 2006

In the said notification, in the Table, after S. No. 14A and the entries relating thereto, the following shall be inserted, namely :-

(1)

(2)

(3)

(4)

(5)

“14B.

845290

All Goods

Nil

-“.


 

 

[F. No. 341/15/2011- TRU ]

(Sanjeev Kumar Singh)

Under Secretary to the Government of India

Note.- 

1.     The principal notification number 03/2006-Central Excise, dated the 01st March, 2006 was published in the Gazette of India, Extraordinary, vide number G.S.R. 93 (E), dated the 01st March, 2006, and was last amended vide notification number 43/2011-Central Excise, dated the 30th December, 2011 published vide number G.S.R.938(E), dated the 30th December, 2011.

2.     The principal notification No.6/2006-Central Excise, dated the 1st March, 2006, published in the Gazette of India, Extraordinary, vide number G.S.R. 96(E), dated the 1st March, 2006 was last amended vide notification No. 38/2011-Central Excise, dated the 29th July, 2011, published vide number G.S.R. 591(E), dated the 29th July, 2011.

Notification No. 3/2012-Central Excise

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No. 3/2012-Central Excise

New Delhi, the 16th January, 2012 

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 23/2003-Central Excise, dated the 31st March, 2003, published in the Gazette of India, Extraordinary, vide number G.S.R. 266(E), dated the 31st March, 2003, namely :

In the said notification, in the Table, –

  1. against Sr. No. 8, for the entry in column (4), the entry “In excess of 5% ad valorem” shall be substituted;
  2. against Sr. No. 10, for the entry in column (4), the entry “In excess of 6% ad valorem” shall be substituted;

    (2) This notification shall come into force force on the 17th day of January, 2012.

    [F No.-354/4/2012 -TRU]

    [Raj Kumar Digvijay]
    Under Secretary to the Government of India

    Note.- The principal notification No. 23/2003-Central Excise, dated the 31st March, 2003, published in the Gazette of India, Extraordinary, vide number G.S.R. 266(E), dated the 31st March, 2003, was last amended vide notification No.No. 5/2010-Central Excise, dated the 27th February, 2010, published vide number G.S.R.107 (E), dated the 27th February, 2010,

Notification No. 04/2012 – Central Excise

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

New Delhi, the 9th February, 2012

Notification No. 04/2012 – Central Excise

G.S.R.              (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.64/95-Central Excise, dated the 16th March, 1995 which was published in the Gazette of India, Extraordinary, vide number G.S.R.256(E), dated the 16th March, 1995, namely:-

    In the said notification, in the Table, after S.No.29 and the entries relating thereto, the following S.No. and entries shall be inserted, namely:-

(1)

(2)

(3)

“30

Machinery, equipment, instruments, components, spares, jigs, fixtures, dies, tools, accessories, computer software, raw materials and consumables required for the Long Range Surface to Air Missile (LR-SAM) Programme of Ministry of Defence

 

If,-

(i) supplied to the Programme LR-SAM under the Ministry of Defence; and

(ii) before clearance of the said goods, a certificate from the Programme Director, Programme LR-SAM to the effect that such goods are intended for the said Programme LR-SAM, is produced to the proper officer.

Explanation. – Nothing contained in this exemption shall have effect on or after the 25th day of May, 2012.”

[F.No.354/139/2006 –TRU (Pt)]

(Raj Kumar Digvijay)

Under Secretary to the Government of India

Note: – The principal notification No.64/95-Central Excise, dated the 16th March, 1995 was published in the Gazette of India, Extraordinary, vide number G.S.R. 256(E), dated the 16th March, 1995 and was last amended vide notification No.34/2011 dated the 19th July,2011, which was published vide number G.S.R. 551(E), dated the 19th July,2011.

Notification No. 20/2012-Central Excise

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

 New Delhi, the 19th March, 2012 

Notification No. 20/2012-Central Excise

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 02/2011-Central Excise, dated the 1st March, 2011, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 117 (E), dated the 1st March, 2011, namely:-

In the said notification, in the TABLE,-

  1. for serial number 48 and the entries relating thereto, the following shall be substituted, namely:-

     

    (1)

    (2)

    (3)

    “48

    7113

    Articles of jewellery”;

     

  2. for serial number 49 and the entries relating thereto, the following shall be substituted, namely:-

     

    (1)

    (2)

    (3)

    “49

    7114

    Articles of goldsmiths’ or silversmiths’ wares of precious metal or of metal clad with precious metal, bearing a brand name, except gold coins of purity 99.5% and above and silver coins of purity 99.9% and above.

    Explanation.- For the purposes of this exemption,-

    (1) “brand name” means a brand name or trade name, whether registered or not, that is to say, a name or a mark, such as a symbol, monogram, label, signature or invented words or any writing which is used in relation to a product, for the purpose of indicating, or so to indicate, a connection in the course of trade between the product and some person using such name or mark with or without any indication of the identity of that person;

    (2) an identity put by a jeweller or the job worker, commonly known as ‘house-mark’ shall not be considered as a brand name.”

     

    [F No.-334/1/2012 -TRU]

    [Raj Kumar Digvijay]
    Under Secretary to the Government of India

    Note. – The principal notification No. 2/2011-Central Excise, dated the 1st March, 2011, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),vide number G.S.R 117 (E), dated the 1st March, 2011, was last amended vide notification No. 19/2012-Central Excise, dated the 17th March 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R.170 (E), dated the 17th March 2012.

Notification No.21 /2012-Central Excise

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

 New Delhi, the 30th March, 2012 

Notification No.21 /2012-Central Excise

        G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 12/2012-Central Excise, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 163 (E), dated the 17th March, 2012, namely:-

In the said notification, in the Table,-

(i)     for serial number 73 and the entries relating thereto, the following shall be substituted, namely:-

(1)

(2)

(3)

(4)

(5)

“73

2710

The following goods, namely :-

(a) Food grade hexane

(b) Naphtha

14%

-“

 
 

[F No. 334/4/2012 -TRU]

 
 

[Raj Kumar Digvijay]
Under Secretary to the Government of India

Note. –   The principal notification No. 12/2012-Central Excise, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),vide number G.S.R 163 (E), dated the 17th March, 2012.

Notification No. 22/2012-Central Excise

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

 New Delhi, the 30th March, 2012 

Notification No. 22/2012-Central Excise

        G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 18/2012-Central Excise, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 169 (E), dated the 17th March, 2012, namely:-

In the said notification, in the Table,-     

  1. for serial number 15 and the entries relating thereto, the following shall be substituted, namely:- 

     

    (1)

    (2)

    (3)

    “15

    2710 12 11 to 2710 12 13, 2710 12 20, 2710 12 90, 2710 20 00

    14%”

     
     

    [F No. 334/4/2012 -TRU]

     
     

    [Raj Kumar Digvijay]
    Under Secretary to the Government of India

     
     

    Note. –   The principal notification No. 18/2012-Central Excise, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i),vide number G.S.R 169 (E), dated the 17th March, 2012.

Notification No. 23 /2012-Central Excise

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

New Delhi, the 8th May, 2012

Notification No. 23 /2012-Central Excise

    G. S. R. (E).-In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts goods of the description specified in column (3) of the Table hereto annexed and falling within the Heading of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter referred to as the Excise Tariff Act), as are given in the corresponding entry in column (2) of the said Table, from so much of the duty of excise leviable thereon under the said First Schedule, as is in excess of the amount calculated at the rate specified in the corresponding entry in column (4) of the said Table, and subject to the relevant conditions, if any, specified in the corresponding entry in column (5) of the Table aforesaid:

Table

 

S.No.

Heading of the First

schedule

Description of goods

Rate

Condition

(1)

(2)

(3)

(4)

(5)

1.

7113

Articles of jewellery

Nil

2.

8607

All goods

Nil

If,-

(i) manufactured by a factory belonging to the Central Government; and

(ii) the said goods are intended for use by any department of the Central Government

 

[F.No.334/1/2012-TRU]

 
 

 (Raj Kumar Digvijay)

Under Secretary to the Government of India

Notification No. 24 /2012 –Central Excise

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

Government of India

Ministry of Finance

(Department of Revenue)

New Delhi, dated 8th May, 2012

Notification No. 24 /2012 –Central Excise

    G.S.R. (E).-In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 12/2012-Central Excise, dated the 17thMarch, 2012, published in the Gazette of India, Extraordinary vide number G.S.R.163 (E) dated 17th March, 2012, namely:-

In the said notification, in the Table,-

(i)      after Sl. No. 70 and the entries relating thereto, the following shall be inserted, namely:- 

(1)

(2)

(3)

(4)

(5)

“70A

2710 12 11, 2710 12 12, 2710 12 13, 2710 12 20, 2710 12 90

All goods, other than goods at serial No. 70

14%

-“;

 

(ii) after Sl. No. 78 and the entries relating thereto, the following shall be inserted, namely:-

(1)

(2)

(3)

(4)

(5)

“78A

2710 20 00

All goods

14%

-“;

 

(iii) against Sl. No. 136, for the entry in column (2), the entry “3304 20 00,3304 99 40 and 3307 90 ” shall be substituted;

(iv) after Sl. No. 172 and the entries relating thereto, the following shall be inserted, namely:-

(1)

(2)

(3)

(4)

(5)

“172A

54 or 55

Polyester staple fibre or polyester filament yarn, manufactured from plastic scrap or plastic waste including waste polyethylene terephthalate bottles

Nil

-“;

 

(v) against Sl. No. 181, for the entries in column (3), the following entries shall be substituted, namely:-

(1)

(2)

(3)

(4)

(5)

181

64

Footwear-chappal (sole without upper, to be attached to the foot by thongs passing over the in-step but not even round the ankle) commercially known as hawai chappal, of material other than leather of retail sale price not exceeding ` 500 per pair.

Explanation.-The expression
“retail sale price” shall have the same meaning as specified in Sl. No. 180

Nil

15″;

 

(vi) against Sl. No. 290 and 291 for the entries in column (4) , the entry ‘14%’ shall be substituted;

(vii) for Sl. No. 292 and the entries relating thereto, the following shall be substituted, namely:-

(1)

(2)

(3)

(4)

(5)

“292

8706 00 49

Motor chassis for vehicles of heading 8704 (petrol driven) fitted with engines, whether or not with cab

14%

-“;

“292A

8706 00 29, 8706 00 42

All goods

14%

-“;

 

(viii) against Sl. No. 321, for the entry in column (2), the entry “85 or 94” shall be substituted;

(ix)     against Sl. No. 325, for the entry in column (3), against item (iii) the following shall be substituted namely:-

“(iii) inks and parts of refills for ball point pens”

[F. No. 334/1 / 2012 – TRU]

(Raj Kumar Digvijay)

Under Secretary to the Government of India

Note: The principal notification No.12/2012-Central Excise dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.163 (E), dated the 17th March, 2012.