PART III
Recovery of Dues
- Recovery of dues
1.1 In the event the Government dues are not paid the law provides for
recovery thereof. For the recovery of dues the provisions of Section 142 of
the Customs Act, 1962 have been made applicable to like matters in Central
Excise by Notification No. 68/63-Central Excise dated 4.5.1963 issued under
Section 12 of the Central Excise Act, 1944.
1.2 If the stay application is filed by the assessee against the
Order-in-Original confirming the duty demand, no coercive action should be
taken to realise the dues till the disposal of the stay application by the
Commissioner of Central Excise (Appeal). However, the Commissioner (Appeal)
must dispose of the stay application within one month of its filing.
1.3 A period of 3 months from the date of communication of the
order-in-original/ order-in appeal should be normally be provided for (one
month for filing appeal and stay application and two more months for
obtaining orders on the stay application), before taking coercive measures
to recover the dues. However, iIf a stay application of an assessee is
rejected by an appellate authority even before the lapse of the time limit
of three months, recovery proceedings should be initiated immediately
thereafter.
1.4 In respect of cases decided by Commissioner of Central Excise (Appeals),
Tribunal, Government of India or High Court, the assessee should be given a
maximum period of one month from the date of communication of the Order to
pay up the dues before resorting to any coercive action. In case of decision
of Supreme Court of India, the assessee should pay the Government dues, if
any, forthwith or else the recovery proceedings, shall be initiated within
15 days of the communication of the order.