Draft Circular Date: April, 2006

Subject:- Investigation and Adjudication of Cases Booked against 100%EOU/EHTP/STP units -Regarding
Your attention is invited to Board’s Circular No 16/2004-Customs dated the 16th February,2004, where under it was clarified that in all cases of short levy or evasion of either Customs or Central Excise duties, or both, by the EOU/EHTP/STP, the Commissioner of Customs or Central Excise, having administrative control over the EOU/EHTP/STP/SEZ Unit will be the proper officer for investigation, issue of show cause notice and adjudication.

2. The above said Circular provides that even investigation would be done by Commissionerate having administrative jurisdiction over EOU/EHTP/STP. The matter has been revisited by the Board. Circular 16/2004-Cus was issued on the premise that EOU/EHTP/STP units execute B-17 Bond before the officer having jurisdiction over the unit. In case of any contravention, the B-17 Bond can be invoked for recovery of duty. However, as far as investigation of the case is concerned, there is no justification that it should also be done only by the Comissionerate having administrative jurisdiction over the units. On the contrary, investigation can be done effectively and in a more focused manner by the unit/ formation which developed intelligence and booked the case.

3 Therefore, it has been decided by the Board that in in all cases of short levy or evasion of either Customs or Central Excise duties, or both , by the EOU/EHTP/STP, the investigation may be done by the Customs or Central excise formation, as the case may be, which has booked/detected the case irrespective of the fact whether it has administrative jurisdiction over the offending unit or not. However, after completion of the investigation, the detailed investigation report and draft Show Cause Notice along with all relevant documents would be forwarded to the Commissioner of Customs or Central Excise, as the case may be, having administrative jurisdiction over the EOU/EHTP/STP for issuance of show cause notice and adjudication.

4 Board’s Circular 16/2004-Customs dated the 16th February, 2004 stands modified to the above extent

5 Field formations may be suitably informed.

F.No.305/13/2006- FTT

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