F.No. C-14010/1/2010-Ad.V Government of India Department of Revenue Central Board of Excise and Customs (Ad.

V Section) New Delhi, the 7th January, 2011 To All Chief Commissioners of Customs and Central Excise All Director Generals Narcotics Commissioner Directorate of Publicity and Public Relations Sub: Departmental proceedings under CCS (CCA) Rules, 1965 - requirement of adherence to provisions of Rule 15 (2) of CCS(CCA) Rules, 1965 and other Rules and instructions regarding Sir, I am directed to say that the Board has observed that in a number of proceedings under CCS (CCA) Rules, 1965 initiated and concluded at the Commissionerate level in respect of Group B, C and erstwhile Gr. D employees, after the Inquiry Report has been received, the Disciplinary Authority has failed to observe the mandatory requirement of Rule 15(2) of the CCS(CCA) Rules, 1965. Non observance of the said requirement is a serious breach of the provisions of the Rules and the principles of natural justice and has the effect of vitiating the final orders passed in the case. Courts, in such cases have delivered decisions in favor of the Charged Officers on technical ground of non observance of the Principles of Natural Justice 2. Even in the past the non observance of the said requirement had been noticed and the Board had issued necessary instructions/guidelines in the matter. In this regard Boards circular letter No. C -11015/1/95Ad.V dated30th June, 1995, C-14011/55/98-AD.V dated 29th January, However, 1999 and C- 11016/11/2007-AD.V (A) dated 26th December, 2007 refer. notwithstanding the clarifications issued there under, the breach of the said requirement as prescribed under Rule 15(2) of the CCS (CCA) Rules, 1965 continues to come to the notice of the Board. It has therefore been decided to reiterate the instructions contained in these orders on the issue of forwarding of the Inquiry Report to the Charged Officer. 3. It is again clarified that the Disciplinary Authorities are required to mandatorily supply a copy of the Inquiry Report to the Charged Officer, along with their tentative conclusions on the findings in the Inquiry Report. Where the Inquiry Authority holds a charge as not proved and the Disciplinary Authority takes a contrary view, the reasons for such disagreement , in brief, must also be communicated to the Charged Officer along with the report of the inquiry in the form of a disagreement note so that the charged officer can make an effective representation. This would require that the Disciplinary Authority has to first examine the Inquiry Report as per the laid down procedure and formulate its tentative views before

forwarding the report of inquiry to the Charged Officer. It may be kept in view that the Inquiry Report has to be invariably sent to the Charged Officer irrespective of whether the Inquiry Officer has held the charge as proved or as not proved. However, it needs to be made clear in the Memorandum to be served on the Charged Officer that the views of the Disciplinary Authority are tentative and a final decision will be taken only after submission of the representation by the Charged Officer. The Disciplinary Authority has to decide the case only after receiving the submissions of the Charged Officer on the I.O.s findings. The Charged Officer may be given enough opportunity for making his submission. If, however, he still fails to submit the one, the case can be decided by the Disciplinary Authority on the basis of the material adduced in the inquiry. 4. It is also made clear that if the Inquiry Officer has held the charge as not proved and if no disagreement note is sent to the Charged Officer along with the Inquiry Report , this would imply DAs tentative acceptance of the findings in the Inquiry Report and the DA would be precluded from holding the charge as proved subsequently at the time of taking a final decision. 5. It is further clarified that after the receipt of the Inquiry Report, the Disciplinary Authority, in accordance with the provisions of Rule 15(1) of CCS (CCA) Rules, 1965, is required to consider the Inquiry Report and satisfy himself that the inquiry has been conducted as per the detailed procedure prescribed under Rule 14 of CCS(CCA) Rules, 1965. If he finds any breach of the prescribed procedure, he is required to remit the case back to the Inquiry Officer for reasons to be recorded in writing for further inquiry and report. He may, in particular, ensure than no extraneous evidence has been taken on record by Inquiry Officer at the back of the charged officer in reaching his conclusions and that Charged officer has got opportunity to cross examine the prosecution witnesses whose statements were taken on record. Charged Officer was also given copy of Prosecution Brief before seeking his Defense Brief and that Inquiry Officer also observed the requirement of general examination of the Charged Officer as per Rule 14(18) of CCS(CCA) Rules, 1965. If, however, DA finds no irregularity in the conduct of the proceedings, he may go through both the Report as also the evidence on record to form his tentative views regarding the findings in the Inquiry Report. The Inquiry Report is, thereafter, required to be forwarded to the Charged Officer along with the tentative views of the DA as also the disagreement note, where required , as explained above. 6. In addition to above , it is also considered appropriate to reiterate certain other provisions of the CCS(CCA) Rules, 1965 and instructions issued there under in respect of which also certain aberrations in some proceedings conducted in the Commission rates have been noted. It is made clear that in terms of DoPT instructions on the subject under Rule 11 of CCS (CCA) Rules, if a formal proceeding under the said Rules has been initiated by issuance of a Charge Memorandum, then on conclusion of the said proceedings, if any blame attaches to the officer and he deserves to be penalized, then at least a penalty of Censure must be awarded. Otherwise, officer must be exonerated. It is not permissible to issue an administrative warningoral or written, at the conclusion of formal proceedings under CCS (CCA) Rules, 1965. 7. It must also be ensured that penalty imposed is commensurate with gravity of the proven charges. Disciplinary Authority may not hesitate to impose stiff major penalty like dismissal from service, compulsory retirement etc. where the misconduct is grave and serious. Apart from ensuring adherence to proviso below Rule 11 (ix) of CCS(CCA) Rules, 1965 in respect of proven charges relating to disproportionate assets or acceptance of gratification, grave offences

such as long unauthorized absence, furnishing false information at the time of joining service in the Department etc would also call for still major penalty. 8 It may, however, be ensured that the final penalty imposed is also consistent with the nature of proceedings initiated. A penalty like reduction of pay by more than one stage or reduction to lower stage for more than three years or with cumulative effect does not fall in the category of minor penalty and cant be imposed as a result of minor penalty proceedings. Further, if only a minor penalty proceeding is initiated, then in terms of Rule 16(1-A), an inquiry is a must, if on considering the representation of the charged officer, it is proposed to impose a penalty of withholding of increment that would affect his pension or to withhold increments of pay for a period exceeding three years or to withhold increments of pay with cumulative effect for any period. The case is to be further considered only after the inquiry has been held in accordance with the procedure laid down under sub- rule (3) to (23) of Rule 14. But merely holding an inquiry would not convert such proceedings to major penalty proceedings and after completion of the inquiry only one of the prescribed minor penalties under Rule 11 can be imposed. 9. It is also advised that while considering the appropriate penalty to be imposed, due regard would also need to be given to penalties imposed on co accused in the same case. Also, no retrospective effect is to be given to a penalty order. 10. The final order must be a reasoned one clearly reflecting the due application of mind of the Disciplinary Authority and his own independent decision in the matter and under no circumstances, the order should indicate that the decision has been taken as per some advice. 11. It is also advised that no higher authority should try to give advice or a direction to the Disciplinary Authority regarding the decision to be taken by the Disciplinary Authority on conclusion of a departmental proceeding. DA should not consult anyone other than the mandatory consultation with CVC/DGoV, where required 12. It is advised that the above clarifications/guidelines may be kept in view while finalizing a departmental proceeding under CCS (CCA) Rules, 1965. Yours faithfully (Vijay Kumar) Deputy Secretary to the Government of India Copy to : 1. ADG, DGoV, Customs & Central Excise, Hotel Samrat, Chanakyapuri, New Delhi 2. Joint Secretary (Admn.) CBEC, New Delhi 3. Guard file 4. 25-Extra copies