Cir. No.369/02/1998-CX, dt. 14/01/1998
- Document type
- Circular
- Reference no.
- E
- Dated
Wrong / fraudulent availment of Modvat - Strict action desired
The PAC on Audit Para 3.48/91-92 on the report of the C&AG for the year ending 31.3.1992 .(No.4 of 1993) regarding fraudulent availment of Modvat Credit" by Sipani Automobiles, Bangalore has desired that the Ministry of Finance will take adequate steps to ensure that recent amendments in the" Central Excise Law (e.g. interest and penal provisions) to prevent wrong/fraudulent of Modvat Credit will be enforced effectively so that such unlawful/irregular practices can be checked.
2. In this regard I am directed to say that these amendments in law should be strictly complied with and stringent/deterrent action should be taken against assessees indulging in such unlawful activities. In case it is brought to light that the departmental officers have been lax in implementing the law, action should also be initiated against such erring officers.
3. Receipt of this Circular may please be acknowledged.
Sd/-
(Mallika Arya)
Under Secretary to the Govt. of India