CBEC revises arrest, prosecution norms

Its circulars prescribe threshold limits, due sanction from senior officers, procedures to be followed, monitoring disciplines and procedure for withdrawal of complaints

The Central Board of Excise and Customs ( CBEC) has revised the monetary limits for arrest and its guidelines for prosecution in matters relating to offences punishable under Customs, Central Excise and Service Tax laws. Its circulars ( dated October 23) prescribe threshold limits, due sanction from senior officers, procedures to be followed, monitoring disciplines and procedure for withdrawal of complaints.

In Customs matters, the CBEC says arrest in respect of an offence should be effected only in exceptional situations. These include unauthorised importation under baggage rules where the value of the goods involved is Rs.20 lakh or more; smuggling of highvalue goods such as precious metals, restricted items or prohibited items; wilful mis- declaration in description of goods, concealment of goods, where the value of the offending goods is Rs.1 crore or more; and fraudulent availment of drawback or any exemption from duty if the amount of drawback or exemption from duty is Rs.1 crore or more. These threshold limits would not apply in case of habitual offenders or cases involving offences relating to arms, ammunition and explosives, antiques, art treasures, etc. Similar threshold limits have been laid down for launching prosecution proceedings also. In excise and service tax matters also, arrest and prosecution may be made in cases where the evasion of excise duty or service tax or the misuse of Cenvat credit is Rs.1 crore or more.

The latest instructions say prosecutions should not be launched as a matter of routine and/ or in cases of technical nature, where the additional claim for duty is based solely on a difference in interpretation of the law. Before launching any prosecution, the department should have sufficient evidence to prove the person, individual or company, against whom prosecution is being considered, had definite knowledge of the offence or had fraudulent intention of committing the offence. In case of public limited companies, prosecution should not be launched indiscriminately against all directors of the company - it should be restricted to those who have taken active part in committing the offence relating to smuggling, customs duty evasion, or misdeclaration of value, quantity etc. The CBEC wants senior officers to go through the relevant case files thoroughly and ascertain that reasonable evidence exists about the definite involvement of different partners/ directors/ executives/ off icials against whom prosecution is contemplated.

Considering the higher standard of proof required in criminal prosecutions where cases have to be established beyond reasonable doubt, the circulars emphasise the importance of proper evaluation of evidence collected to meet the test of ability to prove the allegations beyond reasonable doubt.

Decision for launching prosecution should be taken on a case- to- case basis considering various factors such as nature and gravity of offence, quantum of duty or tax evaded or Cenvat credit wrongly availed and the nature as well as quality of evidence collected. Where someone is convicted, the department should pray the court to allow publication of the name of the offender, says CBEC.

The revised guidelines should drive the staff at the operating levels to investigate thoroughly, gather credible evidences and then proceed with prosecution in appropriate cases.

Business Standard, New Delhi,2nd Nov. 2015

Household debt up, but India still lags emerging-market economies: RBI

Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...

External spillovers likely to hit India's financial system: RBI report

While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...

Retail inflation cools to a six-year low of 2.82% in May on moderating food prices

New Delhi: Retail inflation in India cooled to its lowest level in over six years in May, helped by a sharp moderation in food prices, according to provisional government data released Thursday.Consumer Price Index (CPI)-based inflation eased to 2.82% year-on-year, down from 3.16% in April and 4.8% in May last year, data from the Ministry of Statistics and Programme Implementation (MoSPI) showed. This marks the fourth consecutive month of sub-4% inflation, the longest such streak in at least five years.The data comes just days after the Reserve Bank of India’s (RBI) Monetary Policy Committee cut the repo rate by 50 basis points to 5.5%, its third straight cut and a cumulative reduction of 100 basis points since the easing cycle began in February. The move signals a possible pivot from inflation control to supporting growth.Food inflation came in at just 0.99% in May, down from 1.78% in April and a sharp decline from 8.69% a year ago.A Mint poll of 15 economists had projected CPI ...

CA Online

Search This Blog