Public Accounts Committee in their 104 Report in Para 3.48 has observed that the surprise squads for verification of Modvat Credit in the Commissionerate are not functioning properly as a consequence, the evasion of Central Excise duty through fraudulent availment of Modvat Credit remains unchecked. In this regard, I am directed to reiterate the instructions of the Board contained in F.No. B.22/32.86-TRU dated 16.7.86. I am also directed to say that performance of the surprise squads should be monitored regularly by the Chief Commissioners of Central Excise in their respective jurisdictions and quarterly progress report regarding the performance of the surprise squads should be sent to the Board.

2.    Receipt of this Circular may please be acknowledged.