Date:31/12/2006 URL: http://www.thehindu.com/2006/12/31/stories/2006123101631300.htm

Business

Facilities denied for duty evaders

It will come into effect with immediate effect

NEW DELHI: In a move to curb excise duty evasion, the Central Board of Excise and Customs (CBEC) on Saturday decided to withdraw or restrict certain facilities like registration of dealers from those not paying the duties to the Government.

Manufacturers, dealers or exporters involved in duty evasion of more than Rs. 10 lakh may not get facilities like utilisation of Cenvat credit to exporters, according to a notification issued by the CBEC.

The facilities likely to be withdrawn from such fraudulent dealers include suspension of their registration following which they will not be able to issue Cenvatable invoices.

At present manufacturers are allowed to pay their excise duties once a month. But those evading duties may not get this facility and be asked to pay duties as and when their consignments are cleared. The board can also place the factory of a manufacturer under physical control if he is found to be indulging in a similar offence for the second time.

These provisions will come into effect immediately, a statement by the CBEC said.

As far as possible, within 30 days after the detection of the case, the Commissioner will forward the proposal for initiation of such action to the Zonal Chief Commissioner, the statement said. — PTI