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Copy of the Board’s Circular No. 592/29/2001-CX (F.No. 208/32/2001-CX.6) dated 19^th October, 2001 regarding instruction relating to Adjudication in the Central Excise Manual is communicated for information.

The contents of the Trade Notice may please be brought to the notice of all concerned.

(Issued from file C.No. IV/16/2/2001.CX.POL)

/sd/-

(JANAKI ARUNKUMAR)

ADDITIONAL COMMISSIONER (TECH)

To

As per mailing list

(For both Department and Trade)

I am directed to draw your attention to sub-para 2.1 of Part-II of Chapter 13 of the Central Excise Manual wherein powers of adjudication and determination of duty, based on duty involved in a case has been specified. Powers for deciding matters relating to CENVAT Credit has not been specified clearly, though the same were specified in Central Board of Excise & Customs Circular No. 299/15/97 dated 27-2-1997, (as modified) that all cases of MODVAT dispute were to be adjudicated by Deputy/ Assistant Commissioners except the cases involving fraud, collusion, wilful mis-statement, suppression of facts, contravention of Central Excise Act/ Rules with intent to evade payment of duty etc. This has created some doubts.

2. The Board has decided that in respect of the matters relating to CENVAT Credit, the powers of adjudication specified in Circular No. 299/15/97 dated 27-2-1997, (as modified) would continue. In other words, all cases relating to CENVAT credit (Other than cases involving fraud, collusion, wilful ,is-statement, suppression of facts, contravention of Central Excise Act/ Rules with intent to evade payment of duty) will be decided by officers of the ranks of Deputy/ Assistant Commissioner of Central Excise, irrespective of the amount of credit involved in each case. The instructions in the Manual may be treated as modified to this extent.

Yours faithfully,

Sd/-

(P.K. SINHA)

OSD (CX.6)