CUSTOMS 1. Legal provisions for recovery of arrears of ... - Taxmann

assessed under rule 6 and the interest under sub rule (3) in the same manner as they are
applicable for recovery of any duty or other sum payable to the Central Government. To
implement these provisions following guidelines are prescribed.
• The range superintendent, immediately on receipt of the ER-1 returns, shall identify
the cases of default and record them in the register maintained by them.
.Thereafter, the defaulters should be informed -to pay-the- amount of duty defaulted along with
interest forthwith by a notice to be issued immediately for compliance (copy as per Annexure-
A).
• Simultaneously they should keep the notice, to be issued to the defaulter for his default in
payment of the of the duty, ready, initiating the proposed action. (copy as per
Annexure-B). In order to save time, they must use cyclostyled standard form of notice.
• In the event of the assessee's failure to pay the amount of duty defaulted,
within the prescribed period, the proper officer should issue a notice in the above format
to the defaulter in terms of sub-rule (3) of Rule 8 of the Central Excise Rules, 2002, for
recovery of the dues.
• If the amount is not paid within 30 days from the date when the default is detected,
action prescribed under second proviso to Rule 8(3) may be initiated.
• The action as detailed above, should invariably be completed within the period of one month
from the due date of payment of the duty. In case the dues are not realized in terms of Section
11 of the Central Excise Act, 1944, within one month from the due date of payment of duty,
an immediate action should be initiated by treating the clearances of goods as `without
payment of duty'. Simultaneously, action should also be initiated for recovery of the dues, in
terms of section 142 of the Customs Act, 1962.
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