An Order Applies on Later Clearances Regardless of Appeals

[CBEC Circular No. 906 dated 3rd December 2009]

Subject: Circular No. 824/1/2006-CX-Clarification regarding prospective implementation of orders.

Attention is invited to Board’s Circular No. 824 /1 /2006-CX dated 16th January, 2006 on the aforesaid subject. It has been reported that some of the Commissionerates have taken a view that once an order has been passed on issues like classification/valuation etc., in that case, all subsequent removals must follow the said order even though appeal of the assessee against the said order is pending. It has further been reported that in case of removal without conforming to the said order, the goods have been seized on the ground that these have been cleared in violation of the order passed by the Adjudicating Authority.

2. The issue has been examined. It is clarified that the said circular nowhere provided for seizure of goods, which are cleared not in conformity with the adjudication order when the appeal against the said order is pending. Therefore, in such cases protective show cause notices should be issued to safeguard the revenue, and seizure of goods only for the aforesaid reason should not be effected.

3. Trade & Industry as well as field formations may be suitably informed.

[F.No.208/1/2005-CX6]