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

vi) Section 11 of the Central Excise Act also provides for recovery of dues by attachment and sale
of all excisable goods, materials, plants and machineries, etc. in the custody or possession of a
successor/transferee to whom the business or trade has been disposed of. These provisions have
to be made use of for recovery.
vii) The jurisdictional Commissioners/ Chief Commissioners shall also identify the cases where
reportedly defaulters are not traceable or assets are not available. The Commissioners will
complete enquiries at all known addresses of the defaulters (e.g., offices, works depots,
warehouses, residence, etc.) to ascertain whether any moveable or immovable assets can be
located. Discreet investigations will be made from the neighboring persons, trade rivals, market
and other concerned Government departments whether any other place of business of the
defaulter anywhere in India exists. If yes, action will be extended to such place. Discreet
investigations should also be made about his Bank accounts or any possible clues with the
Banks.
viii) If even after the above action the defaulters remain untraceable and assets not available, zonal
Chief Commissioners will send case-wise particulars to the DGRI/DGCEI, as the case may be,
under intimation to the concerned Nodal officer. The help of such intelligence agencies will be
taken for further pursuing such cases. The Nodal Officer will review action for locating the
defaulters or assets in accordance with the law and co-ordinate so that the investigations by the
said intelligence agencies are quickly completed and results intimated to Chief Commissioners.
The officers of these Directorates General will use their resources in locating such persons and
their property anywhere in the country and for this purpose, they may, inter-alia , take the help of
income-tax authorities whose database may also be useful. The Nodal Officer will do monthly
monitoring of such references and results of the investigations. DGRI and DGCEI may have a
special cell in their headquarters for attending to such references and ensuring immediate action
and reporting of results by the field units.
2. Needless to mention that the detailed procedure prescribed above requires that all
possible action may be taken to recover dues of the Government. It is accordingly advised that
any case for write-off (including the one in reference here) may be sent to the Board only after
completely following the directions/guidelines enclosed. You may accordingly advise the field
formations.
Encl: As above
Yours faithfully,
Sd/-
(Vinay Chhabra)
Commissioner(Coord.)
Copy to:
1. The Chief Commissioner of Customs, Central Excise and Service Tax, Lucknow, Lucknow
Zone for information and necessary action.
2. Shri S.C. Jana, Commissioner, Central Excise & Customs, Kanpur for information and necessary
action.
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