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

F.No. 238/2/98-CX-7
Circular No. 552/48/2000-C
Dated 4-10-2000
It is 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 the Central Excise, are not being
effectively utilised. On the other hand a large number of cases, in 1999and 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:
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 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
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