Upset with summons being routinely issued to top officials of companies to call for material evidence and documents, the Central Board of Excise and Customs issues instructions to these departments to not always issue summons
Mumbai : Industrialists may no longer get summons from Central Excise and Service Tax departments for submitting documents and evidence in case of an inquiry. Instead, they may get a politely worded letter for the same.
Upset with summons being routinely issued to top officials of companies to call for material evidence and documents, the Central Board of Excise and Customs (CBEC) has issued instructions to these departments to not always issue summons under Section 14 of the Central Excise Act (summons for inquiry for recording statements or for collecting evidence/documents).
“While the evidentiary value of securing documentary and oral evidence under the said legal provision can hardly be over-emphasised, nevertheless, it is desirable that summons need not always be issued when a simple letter, politely worded, can also serve the purpose of securing documents relevant to investigation. It is emphasised that the use of summons be made only as a last resort when it is absolutely required,” the instruction read.
It further directs authorities not to generally issue summons to the senior-most officials of companies immediately. “Further, senior management officials such as CEOs, CFOs and general managers of a large company or a PSU should not generally be issued summons at the first instance. They should be summoned only when there are indications in the investigation of their involvement in the decision-making process which led to loss of revenue,” the instruction further read.
The CBEC issued guidelines that the departments would have to follow. “Power to issue summons are generally exercised by Superintendents, though higher officers also issue summons. Summons by Superintendents should be issued after obtaining prior written permission from an officer not below the rank of Assistant Commissioner with the reasons for issuance of summons to be recorded in writing,” the first guideline said.
Another guideline said that if, for operational reasons, it is not possible to obtain such prior written permission, oral or telephonic permission from such officers must be obtained and the same should be reduced to writing and intimated to the officer allowing such permission at the earliest opportunity.
“In all cases, where summons are issued, the officer issuing summons should submit a report or should record a brief of the proceedings in the case file and submit the same to the officer who had authorised the issue of summons,” another guideline stated.
Asking for strict compliance, the instruction stated that non-observance of the instructions would be viewed seriously.
MANISH PACHOULY
