CX - Destruction of Goods - CAG wants Rules Amended for more Departmental intervention
THE CAG seems to be in a hurry to take the Central Excise Administration back to the nineteenth century. When everyone is talking of less points of contact, the CAG wants to initiate yet another permission raj. In its recent Report No. 7 of 2015 (Central Excise), the CAG recommended:
Section 5 of the Central Excise Act, 1944 and rule 21 of the Central Excise Rules, 2002 contain provisions for remission of duty if the excisable goods is found unfit for consumption or marketing. However, there is no provision in Act/Rules requiring the assessee to intimate department prior to the destruction of goods by him or goods destroyed by natural cause and claiming remission of duty. Chapter 18 of CBEC's Excise Manual of Supplementary Instructions, 2005 contain instructions and procedure to be followed by the assessee for destruction of goods and claiming remission of duty which requires that the assessee should intimate department about goods to be destroyed along with reasons and all goods will be destroyed under the supervision of the department. However, these instructions are binding only on the departmental officers. Though there are legal pronouncements which also confirm that prior permission is essential for remission, there is nothing in the rules which prevent destruction of goods suo-moto.
The CAG recommends,
CBEC may consider inclusion of suitable provisions in the Rules for proper procedure to be followed by the assessee before destruction of excisable goods and for intimating department for goods destroyed by natural cause and claim remission of duty .
Let us pray the Board is not impressed by the recommendation of the CAG.