"We are keeping a very close watch on such elements. They are advised to come forward and pay all taxes and avail of the benefit of reduced penalty," Revenue Secretary Sumit Bose said here.
Bose said those who fail to pay excise duty should be prepared to face consequences, which would include provisional attachment of property, arrest and prosecution, suspension of Cenvat credit and 100% penalty and interest.
The move coincides with moderate growth in indirect tax receipts, limiting the government's ability to contain fiscal deficit to the targeted 5.3% of the GDP.
The ministry urged taxpayers to ensure they make timely and correct payment of customs duty, excise duty and service tax for continued trade facilitation. It has been observed that a number of central excise assesses continue removing goods clandestinely, sometime even without registration, misusing Cenvat credit or simply not paying central excise duties which are due to the government in disregard of the law," Bose said.