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Cireular No. L066 [5/201S-Cx,
F,No,298/05/2017-CX9
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
Room No.267-D, North Block,
New Delhi, dated 26.06.2018
To,
Principal Chief Commissioner/ Chie? Commissioners of CX & GST/Customs (Al),
Principal Directors General/Directors General of CBIC (All).
Subject: Non-InitiationDelay in Recovery Proceedings- Audit Revort No.3 of 2017 and Audit Report No.41 of 2016 of C&AG of India (Indirect Taxes — Central Excise and Service Tax)-regardlng,
The undersigned is directed to refer the Circular No.365/81/1997-CX, dated 15.12.1997,
wherein it wes directed that a special cell, namely “Recovery Cell” should be created in each
“Commissionerate” headed by a Dy./Assistant Commissioner who will be designated as the
“Authorised Officer”, for the Purpose of making recovery of Government dues in terme of Section
11 of the Central Excise Act, 1944 read with Section 142 of the Customs Act, 1962 and the
Customs (Attachment of Property of Defaulters for Recovery of Government Dues) Rules, 1995,
Attention is also invited to the Board's Circular No. 1062/2017-CX dated 12.12.2017, issued on
the aforesaid subject.
2 In this context, it is noted that field formations are not following uniform practice. Some
Commissionerates have no Recovery Cell a Hars, and where such Recovery Cells have been
constituted, most of them are acting as mere monitoring cells. Only a few are discharging the
duties as envisaged in the Circular No.365/81/1997-CX, dated 15.12.1997.
3. In view of the above, it is reiterated that all Commissionerates should constitute a Recovery
Cell as laid down in the aforesaid Circular, and only those gases where recovery is not made by
Departmen’ i nd action needs to_be taken for recovery b’ ittachment and sale of
‘operty of the defayiter, aid down in section 142 of the Cust ct, 1962
transferred to the Recovery Cell. Ali other cases of recovery of arrears will be dealt with by
concerned jurisdictional officers only,
4, The standard operating procedure to be followed is as follows:- Where the Government
dues have not been paid by any person and the recovery is to be done under Section 142 of
Customs Act, 1962 & Rules there under, the Dy./Assistant Commissioner of GST & Central
Excise/Customs should prepare a certificate under Rule-3 in the prescribed format, clearly

ir page
his bank accounts,
4.1. The Pr, Commissioner/
Commissioner
of GST &Central Excise or the Pr. Commissioner/
5. Keeping in view the Seriousness of the matter, the Board feels that more emphasis and better monitoring of tax arrears recovery \s required at the Zone and Commissionerate
level. The Zonal Chief Commissioners
are hereby directed to closely look into the matter and 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, The Tecovery of arrears should be
Properly reflected in the Monthly Performance Reports (MPRs) on the DDM portal
serious and prompt manner as envisaged in the Circular, Non-compliance
of the above directions will be viewed seriously.
Yours faithfully,
Yorn!
(Vv. esh Kumar)
Under Secretary to the Govt, of India Copy to:-
Chairman & Members, CBIC
Ali Joint Secretari es/Commissioners(CBI
Cc)
Commissioner (Tax Arrear Recovery), DGPM, C. R, Building, New Delhi.
Commissioner (PAC), Hudeo Vishal Building, Bhikaji Kama Place, New Dethi,
Webmaster with request to upload on CBIC website.