Steps needed to be taken to improve indirect tax administration - Central Excise - F.No.275/17/2015-CX.8A

Instruction F.No.275/17/2015-CX.8A GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD OF EXCISE CUSTOMS (LEGAL CELL) 5 C HUDCO Vishala Building Bhikaji Cama Place, R.K. Puram, New Delhi, the 11 th March, 2015 To All Chief Commissioners of Customs, Central Excise, Service Tax Director General, DRI/CEI Sir/Madam Sub: Steps needed to be taken to improve indirect tax administration-reg. I am directed to say that of late it has been observed that sometimes Show Cause Notices have been issued, which become unsustainable in the legal process. Creating such avoidable SCNs not only does become burden on the Government revenue, it also impacts the precious time of Trade Industry as well as Appellate Authorities/Courts. The National Litigation Policy (NLP) formulated by the Government of India aims to reduce Government litigation so that Government ceases to be a compulsive litigant. The purpose underlying this Policy is to ensure that valuable time of the Courts is spent in resolving pending cases and in bringing down the average pending time in the Courts. To achieve this, the Government should become an 'efficient' and 'responsible' litigant. 2. In order to achieve the goals envisaged in the NLP, it is emphasised that:- (i) SCNs should be issued after thorough examination and keeping in mind that grounds given in the SCNs are cogent, sustainable and backed by legal provisions and pronouncements. (ii) Need to pass quality adjudicating orders, which can stand legal scrutiny of the Appellate Authority/Courts. (iii) Urgent requirement of passing the adjudication orders within the specified time. (iv) Judicial discipline should be followed while deciding pending show cause notices/appeals. (v) Instructions issued with regard to the threshold limits for filing appeals before various fora must be applied scrupulously. (vi) There should be proper system of monitoring and handling the litigation at the field level to prevent delays. 3. It is requested that above instructions to be issued to all concerned under your charge for information and guidance. This issues with approval of the Member [L J]. Yours faithfully, (Rajendra Kumar) OSD (Legal)