CHAPTER 18

Miscellaneous Provisions

PART III

Recovery of Dues
1. Recovery of dues

1.1 In the event the Government dues are not paid the law provides forrecovery thereof. For the recovery of dues the provisions of Section 142 of the CustomsAct, 1962 have been made applicable to like matters in Central Excise by NotificationNo.68/1963-CE, dated 4.5.1963 issued under Section 12 of the Central ExciseAct, 1944.

1.2 If the stay application is filed by the assessee against the Order-in-Originalconfirming the duty demand, no coercive action should be taken to realise the dues tillthe disposal of the stay application by the Commissioner of Central Excise (Appeal).However, the Commissioner (Appeal) must dispose of the stay application within onemonth of its filing.

1.3 A period of 3 months from the date of communication of the order-in-original/order-in appeal should be normally be provided for (one month for filing appeal andstay application and two more months for obtaining orders on the stay application),before taking coercive measures to recover the dues. However, iIf a stay application ofan assessee is rejected by an appellate authority even before the lapse of the time limitof three months, recovery proceedings should be initiated immediately thereafter.

1.4 In respect of cases decided by Commissioner of Central Excise (Appeals),Tribunal, Government of India or High Court, the assessee should be given a maximumperiod of one month from the date of communication of the Order to pay up the duesbefore resorting to any coercive action. In case of decision of Supreme Court of India,the assessee should pay the Government dues, if any, forthwith or else the recoveryproceedings, shall be initiated within 15 days of the communication of the order.

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