CHAPTER 13

DEMAND NOTICE/SHOW CAUSE NOTICE, ADJUDICATION, INTEREST, PENALTY,

CONFISCATION, SEIZURE, DUTY PAYMENT UNDER PROTEST

PART II

ADJUDICATION
1. Introduction

1.1 Central Excise law is a self-contained provision. Besides containing the provisionsfor levy of duty, the law also provides for the adjudication of matters relating to the legalprovisions. The adjudication is done by the departmental officers, and in this capacitythey act as quasi-judicial officers.

2. Adjudication and determination of duty

2.1 Adjudication of confiscation and penalty has to be done by Officers specified insection 33 of the Central Excise Act, 1944. Central Excise Officers have the power todetermine duty short paid or not paid erroneously refunded under section 11A of the saidAct. For this purposes, the Board has decided the powers of adjudication anddetermination of duty shall be exercised, based on monetary limit (duty involved in acase): -

(A) All cases involving fraud, collusion, any wilful misstatement, suppression of facts,or contravention of Central Excise Act/ Rules made there under-with intent toevade payment of duty and / or where extended period has been invoked inshow-cause-notices, (including CENVAT cases, will be adjudicated by:-



CentralExciseOfficers	Powers of Adjudication(Amount of duty involved)
Commissioners	Without limit
AdditionalCommissioners	Upto Rs. 20 lakhs
Joint Commissioners	Upto Rs. 10 lakhs


(B) Cases which do not fall under the category (A) above, will beadjudicated as follows:-



CentralExcise Officers	Powers of Adjudication(Amount of duty involved)
Commissioners	Without limit
Additional /JointCommissioners	Above Rs. 2 lakhs and upto Rs. 20 lakhs
Deputy/AssistantCommissioners	Upto Rs. 2 lakhs.


(C) Cases related to issues mentioned under first proviso to Section35B(1) of Central Excise Act, 1944 would be adjudicated by the Addl.Commissioners/ Joint Commissioners without any monetary limit.

(D) All cases relating to determination of classification and valuation willbe adjudicated by the Deputy/Assistant Commissioner of Central Excisewithout any monetary limit.

2.2 The Board, under section 2(b) of the Central Excise Act, 1944 read withrule 3 also invests certain officers with powers of Commissioners or other officersthrough out the territory of India, for the purpose of investigation andadjudication.

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(Please refer CIR NO.752/68/2003-CX, DT. 01/10/2003 - Power of Adjudication of Central Excise Officers)

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