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F.No. 298/05/2017.
Government of Indi
Ministry of Finance
Department of Revenue
cBEC

Room no. 267-D, North Block,
New Delhi, dated 12" December, 2017
To
All Principal Chief/ Chief Commissioners of CX & GST/ Customs,
All Director Generals of CBEC.
Subject: Audit Report No.3 of 2017 and Audit Report No.41 of 2016 of C&AG of India
(Indirect Taxes - Central Excise and Service Tax) relating to Non-Initiation/ Delay
in Recovery Proceedings etc.
‘The undersigned is directed to refer to subject cited above. It has come to notice of
the Board that the C&AG while conducting audit of Commissionerates has noted grave
inadequacies in its report. C&AG of India has particularly pointed out inordinate delay in
communication of orders-in-original, delay in recovery proceedings, non-transfer of cases to
Recovery Cells & absence of any mechanism to ascertain the current status of cases.
2. Keeping in view of seriousness of the matter, the Board feels that more emphasis
and better monitoring of tax arrears recovery is required at the Zone and Commissionerate
level, The Zonal Chief Commissioners are hereby directed to closely look into the matter
and to make it mandatory for assessees/taxpayers, above a particular threshold limit, to
furnish updated details of assets to the department. Zonal Chief Commissioners may also
take necessary steps to revamp the Recovery cells. Action may also be taken to review and
monitor the tax arrears cases and expeditious action taken towards their liquidation.


3, CRAG has also observed that in majority of cases department has not filed
application for early hearing. Further, cases wherein applications for early hearing have
been filed, most of them have been dismissed by appellate forum due to improper drafting.
in this context, the Chief Commissioners are advised to ensure that applications for early
hearing are filed before the appropriate appellate fora after due vetting by the Law Officer.
4. All zonal Chief Commissioners are once again directed to take up the issues very
seriously and prompt action should be taken. Non-compliance of the above directions will
be viewed seriously.

issues with the approval of Member (CX), CBEC.
Yoyss faithfully,
eee
(V. Ganesh Kumar)
Under Secretary to the Govt. of India
Tele:-23092413
circulars no 1062 2017 cx | iKargos