I am directed to invite your kind attention to Board's circular No. 5/83-CX.6 dated 10.3.83 issued from file No. 210/28/81-CX-6 (copy enclosed)¹ and to say that instances have come to notice of failure to issue protective demands on receipt of audit objections. Instances are also coming to notice when demands are being held as time barred in adjudication and appellate proceedings. Basically, in such cases there is delay in issuing show cause notices leading to demands becoming time barred and consequential revenue loss.

2.    The Board desires that earlier instructions issued vide circular No. 5/83-CX.6 dated 10.3.83 may be abhered to strictly and all steps be taken to ensure that the demands wherever necessary are raised in time by issue of timely show cause notices by the proper officers. Any instance of failure in this regard on the part of the concerned officers would invite appropriate action against them.