Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
New Delhi, the 20th January, 2015
To
Principal Chief / Chief Commissioners of Central Excise (All),
Principal Chief / Chief Commissioners of Central Excise of Central Excise &
Service Tax (All),
Web-master, CBEC.
Sub: Instructions regarding issue of summons in Central Excise and
Service Tax matters – reg.
Madam/Sir,
It has been brought to the notice of the Board that in some instances, the
summons under Section 14 of the Central Excise Act, 1944 have been issued by the
field formations to the top senior officials of the companies in a routine
manner to call for material evidence/ documents. Besides, summons have been
issued to enforce recovery of dues, which are under dispute. As per Section 14
of Central Excise Act, 1944, summons can be used in an inquiry for recording
statements or for collecting evidence/ documents. While the evidentiary value of
securing documentary and oral evidence under the said legal provision can hardly
be over emphasized, nevertheless, it is desirable that summons need not always
be issued when a simple letter, politely worded, can also serve the purpose of
securing documents relevant to investigation. It is emphasized that the use of
summons be made only as a last resort when it is absolutely required.
- On this issue, Board has already issued a circular vide F. No
208/122/89-CX.6 dated 13.10.1989 in respect of Central Excise. Instruction has
also been issued vide F. No. 137/39/2007-CX.4 dated 26.2.2007 in Service Tax
matters.
- The following guidelines are being issued to be followed in both Central
Excise and Service Tax matters:–
(i) Power to issue summons are generally exercised by Superintendents, though
higher officers also issue summons. Summons by Superintendents should be issued
after obtaining prior written permission from an officer not below the rank of
Assistant Commissioner with the reasons for issuance of summons to be recorded
in writing;
(ii) where for operational reasons it is not possible to obtain such prior
written permission, oral/telephonic permission from such officer must be
obtained and the same should be reduced to writing and intimated to the officer
according such permission at the earliest opportunity;
(iii) In all cases, where summons are issued, the officer issuing summons should
submit a report or should record a brief of the proceedings in the case file and
submit the same to the officer who had authorised the issue of summons.
- Further, senior management officials such as CEO, CFO, General Managers of a
large company or a PSU should not generally be issued summons at the first
instance. They should be summoned only when there are indications in the
investigation of their involvement in the decision making process which led to
loss of revenue.
- These instructions may be brought to the notice of all the field officers for
strict compliance. Non observance of the instructions will be viewed seriously.
Hindi version would follow.
Yours faithfully,
(ROHAN)
Under Secretary, (CX-6)
F. No. 207/07/2014-CX-6
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