Circular No. 552/48/2000-C dt. the 4th Oct., 2000
Excise Dues-Recovery and Write Off
Subject : Use of provisions relating to Attachment and Sale of property of defaulters for
recovery of Government dues".
I am directed to say that while examining reports received from all the Commissioners in response to PAC"s Advance Questionnaire on Audit Para 2.5/97-98, relating to steps taken for recovery of confirmed demands, it is observed that the powers acquired for attachment and sale of defaulters property under the Customs (Attachment of Property of Defaulters for recovery of Government dues) Rules, 1995, as made applicable to Central Excise, are not being effectively utilized. On the other hand. a large number of cases, in 1999 and earlier years, some even as old as five years, were referred to District Collectors for recovery under Certificate Action and these are reported to be still pending recovery. Brief summary, year-wise, is indicated below:
(Amount in Lakhs of Rs.)
| Year | No. of cases | Amt to be recovered under certificate Action | Amt.Recovered Till 31.12.99 | Percentage of Amount recovered |
| 95-96 | 576 | 5653.95 | 118.16 | 2 |
| 96-97 | 226 | 859.63 | 34.46 | 4 |
| 97-98 | 328 | 3412.16 | 116.60 | 3 |
| 98-99 | 216 | 2117.33 | 22.09 | 1 |
| 4/99 to 12/99 | 7236 | 6205.38 | 16.48 | 0.27 |
| Total | 8582 | 18248.45 | 339.9 | 1.86 |
2. Board desires that all cases, of 1999 and earlier years already referred to District Authorities, where there is no effective action or response, should be referred to the Recovery Cell of the Commissionerate where the assessee may have, as per available information, some movable/immovable property so that action is initiated as per guidelines.
3. There should be no reason to show arrears of revenue pending Certificate Action for years on end- If despite efforts by District Authorities and our Recovery Cells, Govt. dues are not recoverable. the matter should be taken up for write off as per the powers indicated in Schedule VII of the Delegation of Financial Powers Rules. 1978, read with Ministry"s instructions on the issue.
4. You are, therefore, requested to review all pending cases of Certificate Action of your jurisdiction immediately for initiating necessary action as mentioned above. The progress made in the transfer of cases to the Recovery Cells and also the performance of these Cells will be monitored by the Board through the MTRs for which guidelines have already been issued vide Director General of Inspection (Customs & Excise) D.O.F.No. 585/7/2000 dated 14.09.2000, to report such cases separately in the MTR"s.
5. The Board will also like the other cases involving arrears of revenue not being stayed for recovery where parties are not paying the dues to exchequer despite all efforts and where coercive measures like Rule 230 action has not yielded results and where amounts involved are significant, to the taken up for action by Recovery Cells in future rather than being referred to District Authorities as being done in routine hitherto.
6. Some further guidelines in this regard are being issued separately.
7. The receipt of the Circular may kindly be acknowledged.
Sd/-
(A.K. Prasad)
Director (PAC)
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