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CBEC publishes Draft of Master Circular on Show Cause Notice, Adjudication and Recovery, consolidating 85 Circulars of Central Excise

This draft of Master Circular intends to compile relevant legal and statutory provisions on the subject, and seeks comments / suggestions by February 15.

Draft Master Circular is divided into 4 parts wherein:

Part I deals with Show Cause Notice related issues,

Part II deals with issues related to Adjudication proceedings,

Part III deals with closure of proceedings and recovery of duty,

Part IV deals with miscellaneous issues (such as service of decisions, orders, summons, de novo adjudication, and refund of pre-deposit).

Master Circular lays down inter alia structure of Show Cause Notice – (a) introduction of the case, (b) legal frame work, (c) factual statement & appreciation of evidences, (d) discussion, facts and legal framework, (e) discussion on limitation, (f) calculation of duty and other amounts due, (g) statement of charges, and (h) authority to adjudicate,

And very importantly reiterates that once the amount is paid, no coercive action shall be taken for recovery of balance amount during pendency of appeal proceedings before appellate authorities. Circular also states that refund of pre-deposit need not be subjected to process of duty refund u/s 11B of Central Excise Act, and same shall be paid with interest irrespective of whether the appellate order is proposed to be challenged by Department or not

It also provides list of 82 Circulars which shall stand rescinded and 3 Circulars that would remain operative.

Click here to download the Draft Master Circular Draft Master Circular