Rectification of mistake apparent from the records by the Central Excise Officer [Section 74] :

(1) Time-limit for rectification of the order: Any mistake apparent from the records may be rectified by the Central Excise Officer, by passing an order in writing, within two years from the date on which the order was passed.

(2) Rectification can be either suo-moto or on mistake being brought to notice by assessee or Principal Commissioner/Commissioner or Commissioner (Appeals): Subject to the other provisions of this section, the Central Excise Officer concerned –

(a) may make a rectification of mistake apparent from the records of his own motion; or

(b) shall make such amendment (rectification) if any mistake is brought to his notice by the assessee or the Principal Commissioner/Commissioner of Central Excise or the Commissioner of Central Excise (Appeals).

(3) Rectification resulting in increasing liability of assessee/reducing refund: In case the rectification results in increasing the liability of the assessee or reducing a refund, he will have to be given a notice and reasonable opportunity of being heard by the Central Excise Officer. Thereafter, the Central Excise Officer shall make an order specifying the sum payable by the assessee and the provisions of this Chapter shall apply accordingly.

(4) Rectification resulting in decreasing liability of assessee/increasing refund: In case the rectification results in decreasing the liability of the assessee or increasing a refund, the Central Excise Officer shall make any refund which may be due to such assessee.