Circular No. 410/43/98-CX dated the 10th July, 1998

F.No.154/4/98-CX.4

Section 378 Orders -Assessment date can be changed prospectively for past cases


Subject: Central Excise -Orders issued by Central Board of Excise and Customs under section 37B of Central Excise Act, 1944- Finalisation of pending assessments -Clarification regarding ...

I am directed to say that the Central Board of Excise and Customs issues orders under section 37B of Central Excise Act, 1944 when it is necessary or expedient so to do for the purpose of uniformity in the classification of excisable goods or with respect to levy of duties of excise on such goods. Doubts have been raised regarding raising of demands on the basis of such section 378 orders and applicability of the same to past assessments.

2. The matter has been examined in the Board. An order issued under section 37B has only prospective effect from the date of its issue. The practice of assessment can, therefore, be changed prospectively without seeking a separate permission from the Commissioner as required under Board"s F.No. 201/03/98-CX.8 (Circular No. 394/27/98) dated 2.6.98. However, fresh demands can be raised for the last six months under section 11A of Central Excise Act, 1944. If there are cases pending on the date of issue of section 37B order, they have to be finalised on the basis of the order.

3. Action should be taken to issue a Trade Notice immediately on receipt of a 37B order and it should be ensured that the notice under section 11A is issued without delay to avoid the demand getting time barred.

4. Field formations may be advised accordingly.

5. Receipt of this Circular may please be acknowledged.

Sd/-
(Sanghamitra Panda)
Director

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