| Date: |
10-07-1998
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| Notification No: |
Central Excise Circular No 410/1998
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| Issuing Authority: |
Central Excise
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| Type: |
Circular
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| File No: |
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| Subject: |
Regarding Central Excise - Orders issued by Central Board of Excise and Customs under section 37B of Central Excise Act, 1944 - Finalisation of pending assessments - Clarification
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Regarding Central Excise - Orders issued by Central Board of Excise and
Customs under section 37B of Central Excise Act, 1944 - Finalisation of pending
assessments - Clarification
Circular
No. 410 dated 10th July 1998
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.
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