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Regarding Raising of Protective Demands Consequential to CERA Objections
� Modification of Circular No. 674/ 65/ 2002 - CX dated 1.11.2002
Central
Excise Circular No. 698 dated 3rd March 2003
I
am directed to draw your attention to Board�s Circular No. 674/ 65/ 2002-CX
dated 1.11.2002 issued on the subject from F. No. 210/ 01/ 2002-CX.6, and to say
that in continuation of Board�s said Circular of 1.11.2002, it has been
decided that wherever Board�s instructions or Circular (whether issued under
section 37B or not) exist on a particular issue, the matter should be
immediately referred to PAC section of the Board for resolving the issue with
the C&AG of India, but in the meantime, till the time written instructions
from the Board for not raising protective demands are received in reply to the
reference, the protective demands should be raised/ continued to be raised.
1.
Similar action may be taken in respect of cases that are at the initial
stage (i.e., prior to being made into DAPs). If the audit objection is contrary
to Board�s orders, instructions, etc., the CCE may first take up the issue
with the concerned AG of the C&AG and if the issue does not get resolved,
the CCE may immediately thereafter bring it to the notice of the PAC section of
the Board who will then take up the matter with the C&AG of India HQ. in
Delhi. But, in the meantime, till the written instructions from the Board for
not raising protective demands are received in reply to the reference, the
protective demands should be raised/ continued to be raised.
2.
It has also been brought to the notice of the Board that sometimes, even
in cases where there is merit in the audit objection, expeditious action to
protect revenue is not being taken by the departmental officers in the field
formations. I am directed to say that where it is possible to do so, the process
of examining audit objection should be completed within two months of receipt at
the range/ divisional office.
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