In order to reduce litigation, the government has decided to withdraw central excise cases older than 15 years involving duty less than Rs 5 lakh. The Central Board of Excise and Customs (CBEC) said that the withdrawals of such cases would send a positive message to the manufacturing sector in which policy of 'Make in India' is being actively pursued.
The CBEC in an order to all its Principal Chief Commissioners/ Chief Commissioners of Central Excise stated the decision was in conformity with the policy of the government to reduce litigation in taxation. The decision has been taken after considering the fact that expenditure involved in continuing with such prosecution may not be commensurate with the result likely to be achieved.
This decision has also been taken in light of fact that the present limit for arrest and prosecution in Central Excise is Rs 1 crore. This enhanced limit of Rs 1 crore was prescribed on October 23, 2015, prior to which limit was Rs 25 lakh for the past 21 years.