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Updated as on 17.09.2015
E-BOOK
On
Summons under
Customs,Central Excise
&
Service Tax Laws
SUMMONS
Note:
1. In this E-book, attempts have been made to explain about Summons under
Customs, Central Excise & Service Tax. It is expected that it will help
departmental officers in their day to day work.
2. Though all efforts have been made to make this document error free, but it is possible
that some errors might have crept into the document. If you notice any errors, the
same may be brought to the notice to the NACEN, RTI, Kanpur on the Email
addresses: rtinacenkanpur@yahoo.co.in. This may not be a perfect E-book. If you
have any suggestion to improve this book, you are requested to forward the same to
us.
3. This e-book has been prepared with active assistance and contribution by Shri K.K.
Srivastava, Assistant Director, Regional Training Institute, NACEN, Kanpur
and Shri Sanjay Agrawal, Superintendent of Central Excise, Lucknow Central
Excise Commissionerate. I appreciate their participation and willingness to prepare
e-books and help fellow departmental officers in capacity building and upgrading their
knowledge.
4. In preparing this e-book, the matter has been utilized from various sources including
that available freely on internet. This e-book is meant for education and training of
Customs & Central Excise officers in India and is for non-commercial use. It is not
our intention to infringe any copyrights. However, if anybody has any issue with
regard to any of the material used in this e-book, the same may kindly be brought to
our notice on the email addresses mentioned above.
5. If any officer is interested in preparing E-book on any topic relating to Customs,
Central Excise or Service Tax, he may forward the E-book prepared by him to the
Email addresses mentioned above. After necessary vetting, we will include the same in
our E-book library for benefit of all Departmental officers.
6. If you feel that this e-book has really helped you in improving your knowledge or
understanding of the subject matter, we request you to take few minutes out of your
precious time and provide us your valuable feedback. Your feedback is important and
will help us in improving our e-books.
Sd/-
(C. P. Goyal)
Additional Director General
NACEN, RTI, Kanpur
SUMMONS
INDEX
1. Introduction: ............................................................................................................... 1
4. CBEC Guidelines for the Field Officer regarding Issuance of Summons ......................... 4
Omission to produce document or electronic record to public servant by person legally bound to
produce it........................................................................................................................................... 13
8.7 Section 133 of the Code of Civil Procedure, 1908: Exemption of other persons. .......................... 15
9.1.2: Format of Summon normallly used by Central Excise Officer in Central Excise cases ........... 17
9.1.3: Format of Summon normallly used by Central Excise Officer in Service Tax cases ............... 18
SUMMONS
1. Introduction:
1.1 A successful investigation is substantially dependent on a good interrogation and
recording of statements to convert the findings into admissible evidence. The
process involves questioning a suspect or a witness to seek information leading to
solution of a case of evasion being investigated. Calling suspect or witness to give
evidence or produce documents is an important step in investigation.
1.2 Summon, as understood in legal parlance, is intimation requiring a person to whom
it is issued to appear to give evidence and /or produce documents, etc.
1.3 The indirect tax statutes, namely, the Customs Act, 1962, Central Excise Act, 1962
and Finance Act, 1994 have provisions which empowers the designated officers to
summon witnesses to give evidence and/or to produce documents.
1.4 Section 108 of Customs Act, 1962 /Section 14 of the Central Excise Act, 1944 gives
powers to the Customs Officer/Central Excise officer to call upon a person either
to give evidence or produce documents which would have a vital bearing in the
enquiry including adjudication proceedings. Status of the person summoned is of no
consequence however, sufficient care should be taken to summon only such persons
who would have first-hand knowledge of material relevant to the investigation being
conducted. It must be ensured that the procedural safeguards are not violated.
TABLE-1
S.
Legal provisions Subject
No.
PART A
1. Section 14 of Central It empowers Central Excise Officer to summon persons to give
Excise Act, 1944 evidence and produce document in enquiries under Central
[read with Notification Excise Act, 1944.
No.09/99-CE(NT), dated
10.02.1999 as amended ].
2. Section 108 of Customs Under this section, all Gazetted officers of Customs have been
Act, 1962 empowered to issue summons under said Section 108 of Customs
Act, 1962.
3. Section 83 of the Finance It makes Section 14 of Central Excise Act, 1944 applicable to
Act, 1944 Service Tax matters also.
4. Section 77 of the Finance Provision of penal action for failure to appear before a Central
Act,1994 Excise Officer on being summoned
5. Notification No. 09/99-CE Empowers ―all Central Excise officers not below the rank of a
(NT), dated 10.02.1999 as Superintendent of Central Excise‖ with the ―power to summon
amended. persons to give evidence and produce documents in inquiries
under the said section.‖
6. CBEC Circular No. Summons to Managing Director, Directors and other top officers
208/122/89-CX-6, dated under Section 14 – when not issuable.
13.10.1989
7. CBEC’s Instructions Instructions regarding issuance of Summons in Service Tax
F.No.137/39/2007-CX-4, matters.
dated 26.02.2007
to give evidence or to produce a document or any other thing in any enquiry. The
instruction issued by CBEC provides as under:-
Vide Circular F.No.208/122/89-CX.6 dated 13.10.89, CBEC emphasised to the
field officer that action under Section 14 of Central Excise Act,1944 is to be taken
as a last resort where assesses are not co-operating and this section should not be
used for the top management.
Vide its Instruction F.No.137/39/2007-CX-4 dated 26.02.2007, the CBEC has
issued certain guidelines for issuance of summons in respect of Service Tax
matters. It has directed all field formations that the language of the summons
should not be harsh and legal which causes unnecessary mental stress and
embarrassment to the receiver. It has further instructed that the summons should
be issued after obtaining prior written permission from an officer not below the
rank of Deputy Commissioner with reasons for issuance of summons to be
recorded in writing.
4.1 The Board, vide its Instruction F.No.207/07/2014-CX-6 dated 20.01.2015 has
issued guidelines for the officers regarding issuance of Summons under
Central Excise and Service Tax, relevant excerpts of which are as under:-
Section 14 of the Central Excise Act, 1944 provides for power to summon persons to
give evidence and produce documents in inquiries under this Act and it reads as under:-
1. Any Central Excise Officer duly empowered by the Central Government in this
behalf, shall have power to summon any person whose attendance he considers
necessary either to give evidence or to produce a document or any other thing in any
inquiry which such officer is making for any of the purposes of this Act. A summons
to produce documents or other things may be for the production of certain specified
documents or things or for the production of all documents or things of a certain
description in the possession or under the control of the persons summoned.
2. All persons so summoned shall be bound to attend, either in person or by an
authorised agent, as such officer may direct; and all persons so summoned shall be
bound to state the truth upon any subject respecting which they are examined or make
statements and to produce such documents and other things as may be required:
Provided that the exemptions under Sections 132 and 133 of the Code of Civil
Procedure, 1908 (5 of 1908) shall be applicable to requisitions for attendance under
this section.
3. Every such inquiry as aforesaid shall be deemed to be a "judicial proceeding" within
the meaning of section 193 and section 228 of the Indian Penal Code, 1860 (45 of
1860).‖
Section 108 of the Customs Act, 1962 which deals with power to summon persons to
give evidence and produce documents, provides as under:-
1. Any Gazetted Officer of customs shall have power to summon any person whose
attendance he considers necessary either to give evidence or to produce a document
or any other thing in any inquiry which such officer is making under this Act.
2. A summons to produce documents or other things may be for the production of
certain specified documents or things or for the production of all documents or
things of a certain description in the possession or under the control of the person
summoned.
3. All persons so summoned shall be bound to attend either in person or by an
authorised agent, as such officer may direct; and all persons so summoned shall be
bound to state the truth upon any subject respecting which they are examined or
make statements and produce such documents and other things as may be required :
Provided that the exemption under section 132 of the Code of Civil Procedure,
1908 (5 of 1908), shall be applicable to any requisition for attendance under this
section.
4. Every such inquiry as aforesaid shall be deemed to be a judicial proceeding within
the meaning of section 193 and section 228 of the Indian Penal Code, 1860 (45 of
1860)
Penalty for contravention of rules and provisions of Act for which no penalty is specified
elsewhere. — (1) Any person, —
[―(a) who is liable to pay service tax or required to take registration, fails to take
registration in accordance with the provisions of section 69 or rules made under this
Chapter shall be liable to a penalty which may extend to ten thousand rupees;]
(b) who fails to keep, maintain or retain books of account and other documents as
required in accordance with the provisions of this Chapter or the rules made thereunder,
shall be liable to a penalty which may extend to [ten thousand rupees];
(c) who fails to —
(iii) appear before the Central Excise Officer, when issued with a summon for
appearance to give evidence or to produce a document in an inquiry,
shall be liable to a penalty which may extend to [ten thousand rupees] or two
hundred rupees for everyday during which such failure continues, whichever is
higher, starting with the first day after the due date, till the date of actual compliance;
(d) who is required to pay tax electronically, through internet banking, fails to pay the
tax electronically, shall be liable to a penalty which may extend to [ten thousand rupees];
(e) who issues invoice in accordance with the provisions of the Act or rules made
thereunder, with incorrect or incomplete details or fails to account for an invoice in his
books of account, shall be liable to a penalty which may extend to [ten thousand rupees].
Any person, who (2) contravenes any of the provisions of this Chapter or any rules made
thereunder for which no penalty is separately provided in this Chapter, shall be liable to a
penalty which may extend to [ten thousand rupees.]
In exercise of the powers conferred under the provisions of the Central Excise
Act, 1944 (1 of 1944) and the Central Excise Rules, 1944 specified under column (2) of
the Table below and in supersession of notification of the Government of India in the
Ministry of Finance, Department of Revenue No. 102/57-C.E., dated the 7th December,
1957, except in so far as it relates with Section 26 of the said Act, the Central
Government hereby empowers the Central Excise Officers specified in column (4) of the
Table below to exercise the powers of arrest, search and seizure, to hold enquiries and to
confiscate vessels and cargo, under the provisions of the said Act and the said Central
Excise Rules specified in column (2) of the said Table, and subject to the conditions and
limitations, if any, as specified in column (4) of the said Table.
TABLE-2
Sections of
the Central
Excise Act,
Serial 1944 (1 of
Nature Of Power Central Excise Officer
No. 1944)/ Rules
of the Central
Excise Rules,
1944
(1) (2) (3) (4)
1. Section 13* Power to arrest under said All Central Excise Officers not below the rank
section of an Assistant Commissioner of Central
Excise and Central Excise Officer below the
rank of Assistant Commissioner, if authorised
in writing by the Assistant Commissioner of
Central Excise or any other Central Excise
Officer superior in rank to the Assistant
Commissioner of Central Excise to exercise
such power.
2. Section 14 Power to summon All Central Excise Officers not below the
persons to give evidence rank of a Superintendent of Central
and produce documents Excise.
in inquiries under the
said section
3. Section 19 and Power to send persons All Central Excise Officers not below the
Section 21 arrested to the Magistrate rank of a Superintendent of Central Excise.
under the said section 19
and consequential powers
under the said section 21
4. Rule 201 and Power to enter and search Not below the rank of an Inspector of Central
Rule 202 ** under the said rule 201 Excise, provided that such entry, search and
and consequential powers access shall be made (except in case of a
under the said rule 202 factory, conveyance or vessel), with the written
permission of an officer not below the rank of
an Assistant Commissioner of Central Excise.
5. Section 28*** Power to order for Not below the rank of an Assistant
confiscation of vessel and Commissioner of Customs.
cargo under the said
section
Note:
* Section 13 of the Central Excise Act, 1944 has been substituted vide Finance Act, 2002
with effect from 14.05.2003. The revised section empowers any Central Excise officer
not below the rank of Inspector of Central Excise, with prior approval of the Principal
Commissioner /Commissioner of Central Excise, to arrest any person.
** The Central Excise Rules, 1944 has since been rescinded and now, replaced with
Central Excise Rules, 2002.
*** Section 28 has been omitted vide Finance Act, 2002 with effect from 11.5.2002.
It has come to the notice of the Board that on many occasions, merely for
obtaining information or documents pertaining to service tax cases/ matters, officers of
field formations or intelligence agencies resort to issuance of summons (U/s 14 of the
Central Excise Act, 1944 as is made applicable in service tax cases U/s 83 of the Finance
Act, 1994) to either service taxpayers or to persons who are not registered with the
department. From the nature of information / documents called for, it is clear that many
times such information / documents can easily be obtained by making a telephonic
request or writing a simple letter to the person concerned. Instead summons are issued in
a routine manner, under the signature of superintendent or the senior intelligence
officers. (SIOs). The harsh and legal language of the summons not only causes
unnecessary mental stress & embarrassment and instills fear in the minds of the receiver
but may also become a source of harassment or even unethical practices. Board has taken
a serious note practice.
02. The undersigned is, therefore, directed to communicate the following directions of
the Board for compliance,-
a) For calling for information / documents, normally the mode of communication
should be either in the form of a telephone call or by way of sending a simple letter;
NACEN, RTI, Kanpur Page 10
SUMMONS
b) Issuance of summons should be resorted to, only when the above mentioned modes
of communications are found to be ineffective or are likely to jeopardize revenue
interest or when it is essential to ensure personal presence of the person concerned to
tender evidence or record statement in connection with a service tax evasion case;
c) In cases mentioned under (b) above, the summons should be issued after obtaining
prior written permission from an officer not below the rank of Deputy Commissioner
with reasons for issuance of summons to be recorded in writing;
d) In case, for unavoidable operational reasons it is not possible to obtain such prior
written permission, oral / telephonic permission from such officer must be obtained
and the same should be reduced to writing and intimated to the officer according such
permission at the earliest opportunity;
e) In all cases, where summons are issued, the officer issuing summons must submit a
report on proceeding that took place during the presence of the taxpayer/person
summoned, and the officer authorizing issuance of summons must satisfy himself that
no harassment has been caused during the visit of the person summoned to the office.
03. The above instructions may kindly be brought to the notice of all officers for
compliance. Non-observance of these instructions would be viewed seriously.
Sub: Instructions regarding issue of summons in Central Excise and Service Tax
matters – reg.
It has been brought to the notice of the Board that in some instances, the
summons under Section 14 of the Central Excise Act, 1944 have been issued by the field
formations to the top senior officials of the companies in a routine manner to call for
material evidence/ documents. Besides, summons have been issued to enforce recovery
of dues, which are under dispute. As per Section 14 of Central Excise Act, 1944,
summons can be used in an 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 emphasized, 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 emphasized that the use
of summons be made only as a last resort when it is absolutely required.
3. The following guidelines are being issued to be followed in both Central Excise
and Service Tax matters:–
(i) 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;
(ii) where for operational reasons it is not possible to obtain such prior written
permission, oral/telephonic permission from such officer must be obtained and
the same should be reduced to writing and intimated to the officer according
such permission at the earliest opportunity;
(iii) 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.
4. Further, senior management officials such as CEO, CFO, 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.
5. These instructions may be brought to the notice of all the field officers for strict
compliance. Non observance of the instructions will be viewed seriously. Hindi version
would follow.
172. Whoever absconds in order to avoid being served with a summons, notice or order proceeding from
any public servant legally competent, as such public servant, to issue such summons, notice or order, shall
be punished with simple imprisonment for a term which may extend to one month, or with fine which may
NACEN, RTI, Kanpur Page 12
SUMMONS
extend to five hundred rupees, or with both; or, if the summons or notice or order is to attend in person or
by agent, or to produce a document in a Court of Justice, with simple imprisonment for a term which may
extend to six months, or with fine which may extend to one thousand rupees, or with both.
174. Whoever, being legally bound to attend in person or by an agent at a certain place and time in
obedience to a summons, notice, order or proclamation proceeding from any public servant legally
competent, as such public servant, to issue the same, intentionally omits to attend at that place or time, or
departs from the place where he is bound to attend before the time at which it is lawful for him to depart,
shall be punished with simple imprisonment for a term which may extend to one month, or with fine
which may extend to five hundred rupees, or with both, or, if the summons, notice, order or proclamation
is to attend in person or by agent in a Court of Justice, with simple imprisonment for a term which may
extend to six months, or with fine which may extend to one thousand rupees, or with both.
175. Whoever, being legally bound to produce or deliver up any 1[document or electronic record] of any
public servant, as such, intentionally omits so to produce or deliver up the same, shall be punished with
simple imprisonment for a term which may extend to one month, or with fine which may extend to five
hundred rupees, or with both, or, if the 1[document or electronic record] is to be produced or delivered up
to a Court of Justice, with simple imprisonment for a term which may extend to six months, or with fine
which may extend to one thousand rupees, or with both.
Illustration A, being legally bound to produce a document before a District Court, intentionally omits
to produce the same. A has committed the offence defined in this section.
Whoever intentionally gives false evidence in any of a judicial proceeding, or fabricates false
evidence for the purpose of being used in any stage of a judicial proceeding, shall be punished with
imprisonment of either description for a term which may extend to seven years, and shall also be liable to
fine; and whoever intentionally gives or fabricates false evidence in any other case, shall be punished with
imprisonment of either description for a term which may extend to three years, and shall also be liable to
fine.
Explanation 2.-An investigation directed by law preliminary to a proceeding before a Court of Justice, is
a stage of a judicial proceeding, though that investigation may not take place before a Court of Justice.
Illustration
A, in an enquiry before a Magistrate for the purpose of ascertaining whether Z ought to be committed for
trial, makes on oath a statement which he knows to be false. As this enquiry is a stage of a judicial
proceeding, A has given false evidence.
Explanation 3.-An investigation directed by a Court of Justice according to law, and conducted under the
authority of a Court of Justice, is a stage of a judicial proceeding, though that investigation may not take
place before a Court of Justice.
228. Whoever intentionally offers any insult, or causes any interruption to any public servant, while
such public servant is sitting in any stage of a judicial proceeding, shall be punished with simple
imprisonment for a term which may extend to six months, or with fine which may extend to one thousand
rupees, or with both.
(1) Women who, according to the customs and manners of the country, ought not to be compelled to
appear in public shall be exempt from personal appearance in Court.
(2) Nothing herein contained shall be deemed to exempt such women from arrest in execution of civil
process in any case in which the arrest of women is not prohibited by this Code.
8.7 Section 133 of the Code of Civil Procedure, 1908: Exemption of other
persons.
(1) The following persons shall be entitled to exemption from personal appearance in Court, namely-
(i) the President of India;
(ii) the Vice-President of India;
(iii) the Speaker of the House of the People;
(iv) the Ministers of the Union;
(v) the Judges of the Supreme Court;
(vi) the Governors of States and the administrators of Union Territories;
(vii) the Speakers of the State Legislative Assemblies/
(viii) the Chairman of the State Legislative Councils;
(ix) the Ministers of States;
(x) the Judges of the High Courts; and
(xi) the persons to whom section 87B applies.]
2[***]
(3) Where any person 3[***] claims the privilege of such exemption, and it is consequently necessary to
examine him by commission, he shall pay the costs of that commission, unless the party requiring his
evidence pays such costs.
1. Subs. by Act No. 66 of 1956, sec. 12, for sub-section (1) (w.e.f. 1-1-1957).
2. Sub-section (2) omitted by Act No. 66 of 1956, sec. 12 (w.e.f. 1-1-1957).
3. The words “so exempted” omitted by Act 66 of 1956, sec. 12 (w.e.f. 1-1-1957).
SUMMONS
To
__________________________
__________________________
And whereas I have reason to believe that you are in possession of facts or/and
documents and records which are material to the above enquiry.
You are hereby summoned under Section 14 of the Central Excise Act, 1944/108
of the Customs Act, 1962 to appear before me in person/by an authorized agent
on…………………………..the day of……………………..at…………hrs. in the
office of ……………………………to give evidence truthfully on such matters
concerning the enquiry as you may be asked and produce the documents and records
mentioned in the Schedule for my examination.
If you fail to comply with this summons without lawful excuse, you will be liable to
be punished under the law.
-Schedule-
Signature__________________________
Designation__________________________
Seal of Office.
Note- Under sub section 3 of Section 14 of the Central Excise Act, 1944, the above
enquiry is deemed to be a judicial proceeding within the meaning of section 193 and 228
of the Indian Penal Code, 1860.
C.NO………………………………… DATED:
SUMMONS
(Under Section 14 of Central Excise Act, 1944)
To,
M/s __________________________
_____________________________
You are hereby summoned under Section 14 of the Central Excise Act, 1944 to appear
before me in person on __________________2015 at __________Hrs in the Office of
_________________________________________________ to give evidence /tender statement
truthfully on such matters concerning the enquiry as you may be asked and produce the documents
and records for examination.
SCHEDULE
If you fail to comply with this summons without lawful excuse, you will be liable to be
punished under the law.
Given under my hand and seal today the day/month/year
Superintendent
Central Excise,
Note: Under clause 3 of section 14 of the Central Excise Act and clause 4 of the Section 108 of
Customs Act,1962 above enquiry is to be deemed a judicial proceeding within the meaning of
Section 193 and 228 of the Indian Penal Code.
C.NO…………………………………….. DATED:
SUMMONS
(Under Section 14 of Central Excise Act, 1944 made applicable to Service Tax matters vide
Section 83 of Finance Act, 1994)
To,
M/s __________________________
_____________________________
AND WHEREAS I have reason to believe that you are in possession of facts or/and
documents and records, which are material to the above enquiry.
You are hereby summoned under Section 14 of the Central Excise Act, 1944 made applicable
to Service Tax matter vide Section 83 of the Finance Act, 1994, to appear before me in person on
____________at_________hrs in the Office of the Commissioner of Service Tax,
…………………………………, to give evidence truthfully on such matters concerning the enquiry as you
may be asked and produce the documents and records mentioned in the Schedule for examination.
SCHEDULE
If you fail to comply with this summons without lawful excuse, you will be liable to be punished
under the law.
Given under my hand and seal today the day/ month/year
Superintendent (A.E.)
Service Tax:
Note: Under clause 3 of section 14 of the Central Excise Act and clause 4 of the Section 108 of
Customs Act 1962 above enquiry is to be deemed a judicial proceeding within the meaning of Section
193 and 228 of the Indian Penal Code.
******
NACEN, RTI, Kanpur Page 18