Modus operandi circulars- exclusive power of DGCEI?
Nearly five years ago, the DGCEI issued a letter to the effect that Modus Operandi Circular shall be issued only by DGCEI. Of course Commissionerates can write to other Commissionerates for necessary follow-up action in specific case booked by them.
But who can stop a Commissioner from issuing a modus operandi circular if he wants to, the Board and the DGCEI notwithstanding? The latest Board letter says,
It was clearly pointed out that Commissionerates should not issue Modus Operandi circulars themselves and that such circulars shall be issued only by the DGCEI.
However, it has been brought to the notice of the Board that in spite of clear instructions in this regard. Commissionerates are still issuing Modus Operandi circulars/ alert circulars. In one case, the Commissionerate had issued an alert circular on an issue involving interpretation of a notification. This issue was examined by the Board and the concerned Commissioner was directed to withdraw the circular since it was based on incorrect interpretation of the provisions of law. The Board has taken serious note of this issue. It is once again reiterated that Commissionerates or zones shall not issue such circulars themselves. They may send draft circulars regarding evasion cases detected by them to the DGCEI. DGCEI after examining the matter shall issue serially numbered Modus Operandi circulars. The Commissionerates can, however, write to other Commissionerates for necessary follow up action on a specific case booked by them.
It is always better to have one centralised agency to confuse the field instead of a hundred Commissioners to do the job. Remember this very DGCEI issued an instruction in 2003 that interest should be realised when supplementary invoices are issued and the DGCEI letter was published as a Board circular by a leading publication and the poor Board is still searching for that circular as it believes that the circular was issued by it!
CBEC F.No. 213/19/07-CX-6 Dated : October 4, 2007