HYDERABAD: The Central Board of Excise and Customs would implement the new stringent provisions in Central Excise Law to discourage excise tax evasion and ensure better compliance from traders.

The deterrent provisions include restrictions on a manufacturer, first and second stage dealer or an exporter. A notification to this effect was issued on December 30, 2006 listing a series of offences that could attract withdrawal of facilities or imposition of certain restrictions. The Chief Commissioner, Customs and Central Excise in a press release said that the imposition of restrictions include withdrawal of monthly payment facility, enforcing consignment-wise payment duty, curbs on utilisation of Cenvat credit, suspension of issuance of Cenvat invoice by dealers, withdrawal of self-sealing facility to merchant exporters, suspension of registration for dealers etc.

Offences by the manufacturers, dealers, merchant exporters such as removal of goods without the cover of an invoice and without payment of duty, removal of goods without declaring the correct value for payment of duty where a portion of sale price, in excess of invoice price, is received by him or on his behalf but not accounted for in the books of account and taking of CENVAT credit without the receipt of goods specified in the corresponding document attract stringent measures.

Issue of excise duty invoice without delivery of goods specified in the said invoice, claiming of refund or rebate based on the excise duty paid invoice or other documents which a person has reason to believe as not genuine, would also be considered for withdrawal of facilities or imposition of certain restrictions.

Printer friendly page  
Send this article to Friends by E-Mail