1. Board has issued lnstructions/Circulars relating to recovery of alrears under Centrat Excise, Service Tax and Customs from time to time. Considering the changes that have taken place, especially after the introduction of GST in July, 2017, it hai become imperative to update and revamp the procedure for recovery of arrears of lndirect taxes and Customs. Accordingly, in supersession of instructions issued earlier on the subjects which are annexed herewith as Annexure - A, this consolidated Circular is being issued providing guidelines for recovery and write-off of arrears of lndirect taxes and Customs.

2. THE GONCEPT OF ARREAR:

(i) Anears are the overdue payment of the amount of tax, interest, fine or penalty iliat is confirmed against a person who is liable to pay the same to the exchequer. lt arises as a result of Order-in-Original, Order of Appellate forum, like the Commissioner Appeals / ADC/JC Appeals or the CESTAT and the Courts of law.

(ii) The amount in the case under investigation, unconfirmed demands (i.e. Show Cause Notice, including those in Call Book), the Order-in-Original that has been set aside or remanded for de-novo adjudication by Appellate authority do not fall under the category of 'arrears'.

3. THE STATUTORY PROVISIONS FOR RECOVERY:

Recovery of Arrears is the positive act of getting the money that is legally overdue from a person/entity. The act of recovery of anears has to be persuasive and legal. The taxing statutes incorporate the legal provisions for such recovery. Various statutory provisions for recovery of anears are indicated as below:-

(a) Customs Act, 1962: Section 28 BA, Section 142 read with Section 142 A

(b) Customs (Attachment of Property of Defaulters for recovery of Govemment Dues) Rules, 1995;

(c) Central Excise Act, 1944: Section 11 , 11 E, 11 DDA, 12 and Sec 142(1)(b) and 142(1)(c)(ii) of Customs Act, 1962 as made applicable to Centra! Excise.

(d) Service Tax (Finance Act, 1994): Section 87, 88 and 73 C.

(e) CGST Act, 2017: Chapter XV (Section 73 to 84), Chapter XV! (Section 85 to 94), section 142 (Transitional provisions), Section 174 (saving clauses).

4. CATEGORIES OF ARREARS:

The Monthly TAR Report classifies the anears under following categories:

(i) Anear in Litigation/Appeal: SC/HC/CESTAT/Commissioner (Appeal)/ Additionat Se cretary ( Revi sion Application).

(ii) Restrained Arrear: OL/DRT/BIFR/NCLT-Units taken lnstitutions.

(iii) Anear where appeal period is not over

(iv) Recoverable arrear under:

a. Appeal period over but no appealfiled.

b. settlement commission cases (decided after expiry of 30 days).

c. Units closed/defaulters not traceable.

d. Anear under Section -11 of Centrat Excise Act 1944/87 of Finance Act 1944/142 of Customs Act.

e. Anear under section 142 (1)c (i) & (ii) of customs Act, 1962 i.e. Certificate Action, and

(v) Anears fit for Write- off

5. PROCEDURE FOR RECOVERY OF ARREARS

The Circulars issued vide F. No. 296/34/2004-CX. (pt.) dated 12.09.2004 and instructions issued vide C. No. CC/TAR/50/2007 dated 23.04.2008 are superseded and following instructions are issued for necessary action by the field formations.

(i) There should be a dedicated 'Tax Recovery Cetl" headed by a JoinVAdditionat Commissioner level officer in each Commissionerate. The monitoring of anear recovery shall be done by the Jurisdictional Pr. Commissioners/Commlbsioners on monthly basis and the progress shall be monitored by the Zonal Principal Chief Commissio ner/Chief Commissioner.

(ii) Parallel set of files relating to arears shall be maintained in the TRC.

(iii) The TRC shall review the position of anearc of revenue of indirect taxes, devise and implement the strategy for realization of anears not only with the objective of achieving the target but also to liquidate atl the cases of arears, particularly old cases, either by recovery or by write- off in fit cases. The category-wise guidelines for recovery are given in the following paragraphs.

(iv) W.r.t. recovery of anears arising out of common adjudication orders, it is directed that copy of SCN and Adjudication Order should be endorsed to the concemed Jurisdictional Pr. Commissioners/Commissioners for recovery of arears. Such anears should be reported by the said Jurisdictional Gommissionels / Commissioners and action of recovery of anear should be taken by him.

5.1 CASES UNDER LITIGATION/APPEAL.

Though, arrears pending before the appellate fora may not be recoverable immediately yet the status of these cases need to be clarified and monitored regularly. For this category the following guidelines should be followed for effective monitoring:

(a) Cases of arrears pending before SG/HC/CESTAT-

(i) The Jurisdictional Pr. Commisslonerc lCommissronels will identiff all cases of appeal where the department has a strong case or a reasonable chance of success and the amount involved in the anears is more than Rs. 't Crore.

(ii) The particulars of all such cases will be kept with the Review CelULegal Cell and the TRC of the Commissionerate for regular monitoring.

(iii) Miscellaneous Application for early hearing, out-of-tum hearing, early decision, stay vacation, bunching of cases as per merits/ requirement should be requested.

For this purpose, the Review Gell/Legal Cell will co-odinate with the offce of the Chief Commissioner (Authorized Representative/ Depaftmental Counsels. The implementation of this action for each case will be reviewed every month by the Jurisdiciional Pn Commissioners / Commissioners so that any deficiencies or delay is remedied prcmptly.

(iv) The 'Early Hearing' applications shall be sent by the Jurisdicational Commissionerate to the Registrar of the relevant court. Copies of such application made to CESTAT should also be sent through a DO lefter to the CC(AR) so as to enable him to get such applications listed and also arange for effective presentation of the department's case. ln case the AR/Department Counsel needs any briefing by the conversant officer of the field, the Jurisdidional CommissionerclCommissioners would make the same available well in time.

(v) Decision of CESTAT / Courts on all such applications shall be conveyed by the CC (AR) / Departmental Counsels to the Juridictional Pr. Commissionerc/Commlssloners for further action.

(b) Cases before Commlssloner (Appeals)

(i) Commissioners (Appeals) will take up cases where the revenue implication is Rs. 10 Lakhs or more/recuning nature for immediate disposal.

(ii) Commissioners(Appeals) ll ensure immediate communication of his orders to the assessee as well the department.

(c) The appeals pending with Additional / Joint Commissioner should be reviewed and cases of high revenue or of recurring nature should be taken upon priority.

(d) Cases before Additional Secretary (Revision Application)-All cases pending before Additional Secretary (Revision Application) should be scrutinized by the Jurisdictional Pr. Commissioners / Commissioners and it should be ensured that comments/reports thereon are sent promptly. Amounts payable to the Government in accordance with the Admission Orders (interim orders) and the Final Orders of the Authority should be recovered immediately.

5.2 CASES OF RESTRAINED ARREAR.

Recovery in many cases is restrained due to pendency of the cases relating to the financial viability of the defaulter before the BIFR IOL INCLT/ DRT.

Though the Customs, Central Excise, Service tax and GST enactments have provisions for the liability to be the first charge on property but this charge is subject to the provisions of Section 529 A of the Companies Act, 1956 (Section 326 of Companies Act, 2013), the Recovery of Debts due to Banks and the Financial lnstitutions Act, 1993 (RDB Act), the Securitisation and Reconstruction of Financial Assets and the Enforcement of Security lnterest Act, 2002 (SARFAESI Act) and the lnsolvency and Bankruptcy Code, 2016.

In cases pending with BIFR /OL/DRT/Units taken over by Banks, the department should file affidavits for first charge under Section 11 E of the Central Excise AcUSection 142 A of the Customs AcUsection 88 of the Finance Act, 1994 and Section 82 of the CGST Act, 2017. Besides taking aforesaid action, the cases pending in such authorities should be monitored and approached constantly for their early disposal.

(a) Cases with Board for lndustrial and Financial Reconstruction (BIFR) /National Company Law Tribunat (NCLT)-

BIFR was set up in January 1987 under The Sick lndustrial Companies (Special Provisions) Act, 1985 (SICA) to determine the sickness of industrial companies and to assist in reviving those that may be viable and shutting down others. lt was dissolved on 30.11.2016 and its proceedings were refened to the NCLT and NCLAT as per the provisions of the lnsolvency and Bankruptcy Code 2016. The cases which were in advance stages of hearing/ decisions, however, were decided to remain with BIFR. Therefore, the cases under this category should be reviewed to find out as to how many cases have migrated to NCLT and how many are still pending with BIFR. For the cases pending with BIFR, the department should raise its concem during the proceeding of granting schemes to the company by BIFR.

(b) The NCLT was formed under section 408 of the Companies Act, 2013 (18 of 2013) w.e.f. 01st June 2016 and the cases pending with the BIFR /DRT got transfened to NCLT under Section 434 of the Companies Act, 2013.

(c) Necessary action in cases earlier pending with BIFR / DRT, which have now gone to NCLT / NCLAT as per Section 434 of Companies Act, 2013 should be taken up promptly by keeping track of hearing dates etc. Well conversant Group 'A' officers should properly present the cases before NCLT / NCLAT. Following instructions may be refered for timely necessary action:

1. F. No. DGPM (TAR)/1034/Tech/14/IBBI/lnstruction/2018/4538 to 4574, dated 19.03.18, Sub: Uryent need for alignment of recovery proceedings under Customs, Central Excise, Service Tax and GST with the lnsolvency and Bankruptcy Code, 2016. These instructions illustrate the life cycle of the case undergoing insolvency Resolution process.

2. F.No.56/I/21/2019/220-272 dated 12.10.2020, Sub: Restrained arrearblocked under National Company Law Tribunal (NCLT).

As no separate notice/alerts are received by the department for cases before NCLT / NCAT the website www.abbi.gov.in of NCLT should be visited regularly to check if any case comes under the proceedings wherc department has to file a claim. During the Corporate lnsolvency Resolution Process (CIRP), before the NCLT, the department has two opportunities to raise its concems and file claim:

(i) Upon admission of an application, NCLT makes a public announcement and calls for the submission of claim by all crcditorc within a period of 14 days to lnterim Resolution Profiessionals. The list of such cases and public announcements is available on the website of insolvency board www.ibbi.oov.in. lf any of such a case is listed on the website then it is imperative for the Jurisdictional Commissionerate to file its claim (if any) with lnterim Resolution Professionals (lRPs) in prescribed format accompanied with all requisite documents.

The IRP forms the 'Committee of creditors' and calls its meeting to decide whether the business of corporate defaulter can be revived. Since taxes have been declared as 'Operation debts' under lBC, the jurisdictional Central Tax or Customs officer should attend the meeting of committee of creditors although they do not possess the voting rights. By attending the meetings called by lnterim Resolution ProfessionalslResolution Professrbna/s, jurisdictional ofiicer may naise their points regarding protection of Govemment revenue.

(ii) When the insolvency professional acts as the liquidator, he collects the claims of the creditors within a period of 30 days from the date of @mmencement of the liquidation proceedings and creates a liquidation estate comprising of all the assets of the corporate debtor and holds these assets in a fiduciary capacity for the benefit of all the crcditors. The jurisdictional Gentral Tax/ Customs officers shall have to submit a claim to the liquidator, within the time period (30 days) along with all such suppofting documents required to prove the claim as may be specified.

(d) Gases with Debt Recoverv Tribunal (DRT)

(i) The RDB Act, 1993 provided for establishment of DRTs with original jurisdiction and Debts Recovery Appellate Tribunals (DRATS) with appellate jurisdic'tion, for expeditious adjudication and of debts due to banks and financial institutions, insolvency and connected matters bankruptcy of individuals and partnership firms and connected matters therewith.

Banks approach the Debts Recovery Tribunal (DRT) whereas, under Securitization and Reconstruction of Financial Assets and Enforcement of Security lnterests (SARFAESI) Act, 2002 borrowers, guarantors, and any other person aggrieved by any action of the bank can approach the DRT.

After the introduction of the Insolvency and Bankruptcy Code 2016, the disputed matters relating to individuals will be dealt by the DRT and those for the companies shall be dealt by the NCLT.

For recovery of departmental anears, a claim can be filed with DRT either through direct application or through SARFAESI route. A proforma regarding the application (which may be in the form of affidavit if required) is annexed as annexure B.

Application Route: An application needs to be filed to a specific DRT if the cause of action completely or in part emerges within the limits of its jurisdiction along with paying the required fee.

SARFAESI Route: An application can likewise be made to the DRT under the Securitization and Remaking for Enforcement of Security lnterest Act (SARFAESI), 2002. SARFAESI perceives the need to strengthen the rights of secured creditors to help them in recouping their dues. lt sets out the procedure for doing as such without the intercession of courts or councils.

(e) Cases with Official Liquidator(OL)

(i) The office of the Official Liquidator, is attached to and works under the close supervision and control of the Company Court, High Court, and is also an integral part of the Ministry of Corporate Affairs and handles the winding up process of companies registered in a particular area as mandated by the Companies Act.

(ii) The winding up process includes taking possession of the assets of a company ordered to be wound up, bringing the assets of the company to sale via public auction, recovery of debts due to the company, invitation of claims against the company, settlement of claims so received, distribution of funds to the creditors and contributories, prosecution of directors of the company in the event of misfeasan@ and eventual dissolution of the company.

(iii) A company is ordered to be compulsorily wound up by the High Court in response to a petition filed by one or more creditors seeking such relief when the company is unable to pay off its debts to its creditors. !n the same order the Official Liquidator is appointed with a direction to take charge of the assets and affairs of the company.

(iv) During such processes, a claim can be filed by the defaulter as per proforma annexed herewith as annexure B. The claimant (department) is required to submit all documents necessary to prove the claim. The said proforma is an Affidavit swom by the claimant and is to be filed through the departmental counsel.

(v) The Official Liquidator invites claims from the creditors of the company through an advertisement in leading dailies giving at least 14 days'time (normally 30 days) for the claimants to file their claims before him. Further, as part of e-govemance initiative the advertisement is also displayed.in the court's website covering the entire period of 30 days. The claimant is required to file his claim during the notification period, though it can also be filed later subject to the approval of the High Court condoning the delay.

(vi) ALL claims crystallize on the date of winding up order/appointment of provisional liquidator as the case may be. No fresh debt can be created against a company after the date of winding up order.

(vii) Upon receipt of the claim, Official Liquidator, after calling upon the claimant to produce additional information or proof, if necessary, will adjudicate upon the same. Once the claim is adjudicated, the same shall be intimated to claimant by an order known as adjudication order as per Form 69/Form 70 of Company (Court) Rules, 1959.

5.3 CASES WHERE APPEAL PERIOD IS NOT OVER

The cases under this category should be monitored closely as these are the new/fresh cases of anears where there is a big possibility that defaulters are available. Where the period to file an appeal is over and no appeal is filed the case will switch over to category of 'recoverable aneat' and accordingly action as per para 5.4 should be taken.

5.4 RECOVERY OF UN-DISPUTED/RECOVERABLE ARREARS -

For the cases where demands have been confirmed and the party has not prefened an appeal or where the appeal period is already over or the anears arise out of orders of Settlement Commission, the recoveries should be initiated immediately as such cases are free from any restrain/litigation. The Jurisdictional Pr. Commissioners/Commissioners should regularly review and monitor such arear besides identifying the fresh cases arising under this category.

I. Immediate action in these cases should be taken and recovery effected under Section-11 of the Centra! Excise Act, Section 142 of the Customs Act, 1962 or Section 87 of Finance Act, 1994 as the case may be.

(i) Broad stages for recovery of anear under this category are as under:-

(a) Deducting such amounts from any money owing to the defaulter.

(b) Attachment and sale of excisable goods belonging to the defaulter.

(c) lf the goods belonging to a defaulter are under the control of Customs Officers anywhere in the country (including Ports, lCDs, CFSs, Bonded Warehouses), such Officers would be required to recover the said amount by detaining and selling such goods belonging to the defaulter.

If the amount cannot be recovered from such person in the manner provided in aforesaid clauses -

(d) Send a certificate specifying the amount collector of District for recovery of the amount where the defaulter owns or records or business and the said Gollector shall proceed to recover the said arrear as land revenue.

(e) Detention/attachment and sale of property of defaulter by the department as per provisions of Section 142 1(c)(ii) of Customs Act, 1962.

(f) Recovery by way of attachment and sale of goods/ material etc. from the successor of the defaulter (i.e. transferee, purchaser etc.) in business or trade in whole or part thereof.

(g) lnvoking the Gamishee Provisions i.e. recovery from any other person from whom money is due to such defaulter or may become due to such defaulter or who holds or may subsequently hold money for on account of defaulter.

II. Apart from aforesaid legal provisions there may be occasions where there is a possibility to recover the anears, few such aspects are illustrated below-

(a) On the Customs side, a lot of facilities, including facility of duty-free imports of goods, are permitted on submission/fumishing of bank guarantee. The authorities may review such cases and the bank guarantees been cashed wherever arrears become due on account of failure of the person concemed to comply with the condition of the bank guarantee.

(b) Attachment of Bank acepunts of the defaulters may be done as per prescribed procedure for speedy recovery of anears.

It is also to state that this is the most important category of anears which requires personal attention and thorough monitoring. The responsibility for any default in the action for recovery at any stage under this category will be with the jurisdictional Assistant Commissioner. The Jurisdictional Pr. Commissioners / Commissioners should regularly review and monitor these arrears.

6. IDENTIFICATION OF PROPERW OF DEFAULTERS

(i) Many cases under'recoverable area/ category are such where business is closed and the defaulter is not traceable. ln some cases, even though the defaulters are traceable yet their properties are not known. ln both categories properties are to be identified for recovery of anears through attachment and sale.

(ii) The Pr. Commissioner/ Commissioner, to whose jurisdiction the arears pertained/arisen shall identify the property belonging to the defaulter.

(iii) For tracing the defaulters and identification of their property and its location, the sources of information will include the official record/documents supplemented with human intelligence. Efforts should also be made to find out if other place of business of the defaulter exists anyrhere in lndia.The Jurisdictional Pr. Commissioners / Commissioners will get the enquiries completed at all known addresses of the defaulters to ascertain whether he has any moveable or immovable assets that can be identified for recovery.

(iv) The following sources of information should be accessed. Simultaneous enquiries w.r.t. all sources should be made for faster and conclusive results.

(a) lnformation, available with the department, that is contained in various documents submitted by the defaulter like those relating to registration, retums, replies to SCN, statements, RUDs etc should be culled out for the PAN, Mobile, e-mai!, office address and Aadhar No. of the defaulter.

(b) Comprehensive enquiries should be conducted with banks and the known premises [ residence, warehouse, depots etc.] of the defaulter.

(c) Discrete enquiries/investigation should be made with neighbors, trade rivals, local market and other departments where there is possibility of registration of defaulter viz. electricity, SGST, pollution control department, stamp authorities etc.

(d) On the basis of PAN Number, the lncome Tax Department's data base should be accessed to ascertain the Aadhaar No., Mobile No., phone no., e-mail address, location address, any house property, life/ medica!/ general insurance, Bank details, movable & immovable property etc. of the defaulters.

(e) DGFT website can provide the registered residentia!, business address/details of the defaulters on the basis of IEC and further access to MCA Company data to verify Directo/s details [DlN] and other companies where the person is a director, its address etc.

(f) Details of shares in capital market held by defaulters should be found out through the two depositaries viz. National Securities Depository Limited (NSDL) and Central Depository Services (!ndia) Limited (CSDL) by searching with PAN of the defaulters.

(g) Department should access the digita! format of land/assets details maintained/held by District Authorities so that recovery proceedings can be initiated early.

(h) CBIC modules (viz. GST backend (Saksham) & ICES) should be used for Alerts on recoverable dues u/Sec. 142 (1)(c)(i) or Notice against any GST assessee or lEC holder.

(i) !n cases of fraud, suppression, smuggling etc. during the investigation itself the officers should collect the details of bank accounts, property details of the Company/ Directors/ lndividuals and their/ dependents either under bond or while recording Statement under Sec 108 of Customs Act 1962.

(j) Financial lntelligence Unit -lND- FIU-IND is an organisation, working on pan lndia basis to share the information related to financial frauds with govemment designated authorities. Commissioner (TAR) is designated as nodal officer on behalf of CBIC to handle all references frcm field formations seeking information from FIU-IND in connection with recovery of pending dr6ars. lnformation of defaulters is provided to FIU which are received from Nodal officers of the Zones and then FIU- IND provides relevant information to the Zofes. The following references w.r.t. FIU-IND should be refened for necessary action:

(i) lnstructions issued vide F. No. CC(TAR)/08/2O13 dated 28.01.2014 Sub: intimation of Nodal fficer for exchange of inftrmation with Financial lntelligence Unit (FIU-IND)

(ii) lnstructions issued vide F. No. CC(TAR)/O8/2013/FIU 9976-6007 dated 05.04.2018 dated 12.02.2018 Sub: lntimation of Nodal Officer for exchange of information with Financial lntelligence Unit (FIU IND) and information about filing information on defaulters in finexe module - Reg.

(iii) lnstructions issued vide F.No. DGPM/TARy/1037/FlU/Misc/2/2018 dated 13.06.2018 Sub: Exchange of information with FIU where defaulters are traceable -!nformation about filing information on defaulters in finex module.

(k) DGARM being entrusted with responsibility of data analytics using various tools available with it shall be the Nodal agency for recovery references made to it by the field formations, as being done w.r.t. the IFU.

7. RECOVERY THROUGH ATTACHMENT AND SALE OF PROPERW

Upon identification of the location of the property of the defaulter by the jurisdiction Pr. Commissioner/Commissioner (where the anear pertained/arisen), the certificate under Section 142 (1) (c) of the Customs Act, 1962 should be sent only to those Jurisdictional Pr. Commissioners/Commissioners under whose jurisdiction the identified property of the defaulters is located for the following action.

(a) Any moveable or immovable property belonging to or under the control of the defaulter will be detained under Section 142(1)(c) read with Customs (Attachment of Property of Defaulters for Recovery of Govemment Dues) Rules, 1995.

(b) For recovery of the dues under these provisions, simuttaneous action through district authorities and through Jurisdictional Pr. Commissioners /Commissioners should be taken. Accordingly, the Circular No. 54/95-Cus. Dt. 30.05.95 stands superseded.

(c) lf any dues are not paid within 30 days of the detention as above, the said propefi would be sold in the prescribed manner.

(d) For recovery through attachment and sale, the procedure prescribed vide following Circulars may be followed:

(i) circular No. 56/96-cus., Dated 14/11/96 F. No. 450/72/96-Cus-VI sub: Recovery of anears of Revenue under amended Section 142(1) of the Customs Act 1962 read with Customs (Attachment of Property of Defaulters for Recovery of Govemment of Dues) Rules, 1995.

(ii) Circular No. 365/81/97-CX Dated 15/12/1997 F. No. 296/1/95-Cx.9 Sub: Sate of movable/immovable properties by Central Excise fficers for recovery of Central Excise dues.

(iii) F. No. 224/38/2004-CX-6 Dated August 2004. Sub: Sale of movable/immovable properties by Central Excise officers for recovery of Central Excise Dues.

(iv) Circular No. 874/12/2008-CX Dated 30/06/2008, issued vide F. No. 201/51/2004-CX-6, sub: lnstructions regarding section 11 DDA of the central Excise Act, 1944.

(v) Circular No. 103/06/2008-ST Dated 01/07/2008 Sub: lnstructions regarding provisional attachment of property under section 73C of the Finance Act, 1994.

8. RECOVERY OF ARREARS UNDER GGST ACT, 2017:

For recovery, the comprehensive provisions as provided in Chapter XV and XVI under CGST Act read with Chapter 18 of the CGST Rules, 2017 along with relevant circulars shall be referred to and followed.

9. WRITE -OFF PROVISIONS FOR CUSTOMS. GENTRAL EXCISE & SERVICE TAX ARREARS.

In cases where recovery is not possible due to non-availability of any propefi relatable to the defaulter, the action for write-off of such inecoverable anears should be taken. lt is noticed that many cases of anears are already identified/consistently reported by the Pr. Commissioners / Commissioners for writing-off yet no action is taken. tt is hereby directed to dispose of these cases as per following guidelines.

Further, it is also directed that for recoverable anears the procedure of recovery/identification/attachmenUsale of property etc should be completed within six months since the anears is considered as undisputed and categorized under ,recoverable arrears category'. Thereafter the process to write off the same should be commenced and the process of write off should be completed within 15 days by the Committee/ Competent Authority.

(a) A proposal for write-off of inecoverable arrears shall be submitted by the Deputy/ Assistant Commissioner in the prescribed format (attached asAnnexure C), to the Pr. Commissioner/Commissioner, Zonal Pr. Chief /Chief Commissioner depending on the amount of duty/tax proposed to be written off. These authorities shall examine the proposal and if prima-facie satisfied, shall put up the case before appropriate Committee for decision.

(b) Circular No. 1080/O1/2022-CX dated 19.01.2022 is issued providing constitution of two-member Committees to examine the proposals for write-off of inecoverable anears of duty/taxes and fine & penalties.

(c) The Committee so constituted shall examine the proposals and on the basis of the recommendation/decision of the Committee, the competent authority shall write- off anears in deserving cases in accordance with the powers delegated for the purpose.

(d) The Committee of Jurisdictional Pr. Commissioners/Commissioners so constituted shall also examine the proposals/cases to write-off the arrears where onty penalty ls tevieO on the defaulters (viz. penalty imposed in cases of non-filing of returns, penalty on crew in smuggling cases/penalty on transporters etc.). On the basis of iecommendations of the Committee the Competent Authority shal! write-off arrears in deserving cases.

(e) As regards write-off of interest amount, it is clarified that once duty/tax involved is written off, the interest due thereon would automatically get written-off.

(f) lt is also directed that the act of writing off of arrear does not absolve the defaulter from the liability to pay for any new facts coming to notice in future. Therefore, consequent action if any, should be ensured by the jurisdictional Pr. Commissioners / Commissioners and the Pr. Chief /Chief Commissioner as the case may be.

10. The following instructions regarding publication of names of defaulters and grant of reward to the informers and government servants are in place, which should be followed wherever required.

(i) Gircular No. 849/07/2007-CX Dated 19/04/2007, issued vide F. No. 201/51/2004-CX-6 about the guidelines in respect of publication of names under section 37 E of the Central Excise Act, 1944.

(ii) F. No. 13011/3/2004-CUS(AS) Dated 3lst July 2015 about the revised guidelines for grant of reward to informers and Govt. Servants.

11. The responsibility to affect actual recovery will continue to vest with Jurisdictional Pr. Commissioners/Commissioners where the cause of anears took place.

12. lnstructions contained in CBEC (CBIC) Hand-Book issued in year 2012 on recovery of anears or any other circular/ instruction/letter contrary to this circular stand amended accordingly.
 

Yours faithfully,
MANAS MONDAL
Under Secretary to the Govt. of India

ANNEXURE - A

The following circulars regarding recovery/writing off of anears are superseded-

(i) F. No. 290/4/85-CX 9 dated 22.03.85 Sub: Write of Arrears.

(ii) F. No.290/20/90/-CX 9 dated 21.09.1990 Sub: Write off of inecoverable amounts of Customs/ Central Excise duties and abandonment of irrecoverable amounts of fines and penalties imposed under Customs Act, 1962, Central Excise and Salt Act, 1944 and Gold Control Act, 1968- delegation of enhanced powers.

(iii) Circular No 54/95-Customs. Dated 30.05.1995 issued from F. No. 495/15/94-CUS Vl. Sub: Delegation of powers to customs officers under Section 142 of the Customs Act, 1962.

(iv) Circular issued vide F. No. 296/34/2004-CX(PI) dated 12.08.2004. Sub: Outstanding Anears of Centra! Excise and Customs Duties- Constitution of a Task Force for Recovery.

(v) Instructions issued vide F. No. CC/TAR/50/2OO7 dated 23.04.2008 Sub: Write-off/ abandonment of inecoverable amount of arrears of revenue.

(vi) Circular No. 946/07/2011, dated 01.06.2011 Sub: Writing off of anears of Central Excise, Service Tax and Customs Duty- Constitution of Committees to advise the authority for writing off of arrears.

(vii) lnstruction issued vide F. No. 296/10/2009-CS-9(PI.) dated 29.05.2013. Sub: Writing off of arrears of Central Excise, Service Tax and Customs duty- Constitution of Gommittees to advise the authority for writing off of arears.

(viii) F. No. 296/202/2017-CX-9 dated Sep 2017 Sub: Writing off of anears of Central Excise, Service Tax and Customs duty- Gonstitution of Committees to advise the authority for writing off of arrears read with corrigendum w.r.t 20/10/2017.

ANNEXURE - B

FORM FOR FILING CLAIM WITH OL/DRT

Affidavit of proof of arrear (may be filed in the form of application as the case may be)

(PETITION No............ Of.............(20..........)

I, .............................. of ........................ (full name, address and occupation of deponent to be given) do solemnly affirm and state as follows:-

1. The Company/firm...........................(full name, address etc. of the company/firm/entity to be given) was, at the date of the order of winding-up the same* viz., the ............... day of ............. .. 2O...... and still is, justly and truly indebted to the Department of indirect Taxes & Customs as anears mentioned as follows are pending for recovery by the office of Jurisdictional Pr. Commissloners/Gommissionerc of ....................... (full address)
 

2. ln respect of the said sum or any part thereof, I say I have not, nor to my/our knowledge or belief, had or have received any anear or dues except the following :-

[Here state the pafticulars of recoveries made (if any) on the defautter from the date of arising the anear to date of filing this Affidavit.

[If the claim is made as a preferential claim, say so and set out the grounds on which the preference is claimed ]

Solemnly, affinned at .................. ..on ...........................( day), the ..........dayof.... .20....... Before me.
 

Deponent's signature.

Notes : -

Final orders of confirmation of anears and other related documents must be attached with the claim and produced before the Authority as and when required.

Annexure 'C'
 

RANGE/GROUP/ETC.

DIVISION/BRANCH

COMMISSIONERATE
 

Asst./Deputy Gommissioner ln-charge
(Name and Signature with Date)

F. No.296/63/2020-CX9