Question : WORKING OF CENTRAL EXCISE COMMISSIONERATES

(a) whether the CAG in its report 11 of 2002 (Indirect taxes, Central Excise and Service Tax) on page 39 has once again brought out the fact of not safeguarding Government revenue by the Central Excise Commissionerates;

(b) if so, whether the Government have taken any action to review the working of the Central Excise Commissionerates all over the country and taken against the officials responsible for working against the financial interest of the States;

(c) if so, whether there is any proposal to the accountability and responsibility of the officials in the matter; and

(d) if so, the details in this regard?

MINISTER OF STATE IN THE MINISTRY OF FINANCE (GINGEE N. RAMACHANDRAN)

(a) & (b) Yes, Sir. C&AG pointed out non payment of interest & penalty amounts by an assessee. The jurisdictional Central Excise Commissionerate issued a show cause notice demanding interest & penalty. The assessee subsequently paid the interest amount. However, recovery of penalty amount was not effected in view of stay granted by the Hon`ble Supreme Court.

(c) No, Sir.

(d) Does not arise.