Circular No. 394/27/98-CX dated 2/6/1998
Subject: Reopening of the prevailing assessments - Instructions
I am directed to draw your attention to Board"s Circular No. 249/83/96-CX dated
11.10.96, regarding introduction of self-assessment system. Under this system, the
assessee is himself required to assess the duty liability and prepare a return on a
monthly-basis (for SSI on quarterly-basis) and submit to the Central Excise
Department.The Departmental officers are required to scrutinise the returns in the
manner prescribed in the aforesaid Circular. The assessees are also required to file
declaration under rule 173B for the purpose of classification of the goods and a
declaration under rule 173C for the value of goods in certain specified type of cases.
They also file declaration in respect of modvat credit. These declarations are subject
to scrutiny by the Department. No statutory time-limit is prescribed for such
scrutinies. However, to safeguard the assessees from indefinite uncertainties, it has
been emphasised time and again that the scrutiny of such declarations / returns must
be done at the earliest so as to complete the work within the limitation period of
raising ordinary demand. It has been noticed that large number of show cause notices
are issued changing the accepted" practice of assessment by the officers of the rank
of Assistant Commissioners and below. This not only causes uncertainty, in thc areas
of assessment, but it also leads to avoidable increase in the work of the Department.
2. To overcome this problem, it has been decided that a practice of assessment which
remains in existence fora period over 1 year should not be changed without the
specific and prior approval of the Commissioner. It is further clarified that in the
system of self-assessment, where no enquiries were initiated or no action was taken
for changing the practice of assessment for a period of 1 year from the date from
which such practice was adopted, the permission of the Commissioner will be necessary
for making any change in the said practice. The Commissioners will ensure that there
are sufficient grounds for changing the practice before giving such permission.
Sd/-
(P.K Sinha)
Under Secretary to the Govt. of India)
F.No. 201/03/98-CX.6Presented by eximkey.com