Monday, January 15, 2007

CBEC restricts credit limit to check evaders

Central Board of Excise and Customs (CBEC) has decided to withdraw certain facilities or restrict the utilisation of credit by units involved in tax evasion of a serious nature. Facilities such as monthly payment of duty will be withdrawn or utilisation of cenvat credit may be restricted for a specified period. The department can place the factory of a manufacturer under physical control, if the unit is found to be indulging in similar offences for the second time and for all subsequent offences. These provisions will come into force immediately after the detection of a case against any manufacturer, dealer or an exporter involving duty or credit amounting to more than Rs. 10 lakh.


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