The government has doubled the limit of excise duty evasion for arrest and prosecution of accused to Rs 2 crore.
Arrest and prosecution of a person henceforth can be resorted only if the offence relating to evasion of central excise duty or misuse of CENVAT credit is equal to or more than Rs 2 crore.
In October 2015, the monetary limit for excise related offences was set at Rs 1 crore.
Government order says that arrest and prosecution should not be resorted to in cases of technical nature i.e where the additional demand of duty/tax is based on a difference of opinion regarding interpretation of law.
Arrest in case of service tax violations was introduced with effect from May 10, 2013.
