Circular No. 266/100/96-CX dated 12/11/96
Subject: Examination of Paragraph 1.03 sub-para 4 (i to iv) and sub-para 8 (i to iv) by the public
Accounts Committee from the report of C.& A.G. of India for the year ended 31st March,
1995 (No. 4 of 1996), Union Government, (Revenue Receipt - Indirect Taxes) relating to
pace of finalisation of provisional assessment cases and monitoring - Reply to PAC"s
Questionaire by.22nd October, 1996 - Regarding.
I am directed to refer to query raised by Public Accounts Committee in para 13
of their questionaire, which reads as under :
13(a) As reported by Audit the number of provisional assessment cases pending
finalisation has almost doubled in 30 Commissionerates. during last 3 years
(from 7720 in 1992-93 to 14384 in 1994-95). Was the delay in finalisation of
provisional assessment ever reviewed at Board/Ministry level or any study got
conducted by the Directorate of Inspection or any similar other organisation?
If so, please furnish details.
(b) Whether the Ministry has carried out any ARC analysis with reference to the
amount involved and if so, what are the results ?
(c) Whether the Ministry has done any exercise to identify cases on similar
issue pending in the same Commissionerate/different Commissionerate? If so,
Commissiorierate-wise details of issue involved, their number and present
status may be furnished.
2. The Board has decided that delay in finalisation of provisional assessment should
be reviewed by the Commissioners on quarterly basis with reference to number of
pendencies and their disposal, issue involved and amount of differential duty in
respect of each assessee and submit a consolidated report to the Chief Commissioner by
10th of succeeding quarter including the measures taken by them towards finalisation
of provisional assessments taking into consideration the stakes involved and the
period of pendencies, maximum priority being given to older cases involving large
amounts.
3. As desired by Public Accounts Committee an ABC analysis of provisional assessment
should be undertaken and effective follow-up action taken. The Chief Commissioners
should’ examine the said report and advice suitably to the Commissioners wherever
remedial measures are required to be taken. The Chief Commissioners will submit the
consolidated report in respect of the Commissionerates falling under their
jurisdiction to the DGI by 25th of the succeeding quarter. The DGI should analyse the
report and submit the All lndia position to the Member (CX) within 15 days from the
date of receipt of reports from the Chief Commissioners. To illustrate, the report for
the quarter ending December, 1996, the Commissioners shall furnish their reports to
their Chief Commissioners by 10th January, 1997, the Chief Commissioners" reports
should reach to the DGI by 25th January and the DGI shall report to the M(CX) by 10th
February, 1997 and so on.
4. Before submitting the report the Commissioners should carry out the ABC analysis
with reference to differential duty involved where such differential duty is of
substantial amount and take effective steps for finalisation of such cases.
5. Chief Commissioners while submitting the report to the DGI, should also identify
cases on similar issues pending in the Commissionerates under their jurisdiction and
advice all the Commissioners suitably so that the pendencies including common issues
are liquidated within a period of 3 months. Likewise while furnishing the All India
position to the Member (CX), DGI should analyse the common issues involved in the
Commissionerates falling under the jurisdiction of different Chief Commissioners and
advice the Board the steps to be taken for resolving the disputes of common nature.
6. The aforesaid exercise should be taken immediately for the quarter ending December,
1996 and for every quarter thereafter.
7. Deputy Secretary/Director (CX.9) shall co-ordinate with the DGI and the Board and
take necessary action where required.
Sd/-
(I.P.Lal)
Secretary (CBEC)
F.No. 224/4/96-CX.6(Pt.)
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