CBEC to withdraw old excise cases

In a bid to cut litigation, the government has decided to withdraw central excise cases older than 15 years involving duty less than Rs 5 lakh.

“It has been decided with the approval of the competent authority to recommend filling of application before the court to withdraw from prosecution of the cases where evasion of Central Excise duty is less than Rs 5 lakhs and prosecution is pending for more than 15 years,” the CBEC said.

The Central Board of Excise and Customs (CBEC) in an order to all its Principal Chief Commissioners/ Chief Commissioners of Central Excise said the decision was in conformity with the policy of the government to reduce litigation in taxation.

The decision has also been taken after considering the fact that expenditure involved in continuing with such prosecution may not be commensurate with the result likely to be achieved and the human resources saved can be redeployed to garner more revenue for the exchequer.

This decision has also been taken in light of fact that the present limit for arrest and prosecution in Central Excise is Rs 1 crore.