CIR NO.710/26/2003-CX, DT. 23/04/2003

Proposed for inclusion in Audit Report of the CAG of India (Indirect Taxes) for the year 2001-2002-Handling of appeal cases in Central Excise Department

In the recent months several instances have come to the notice of the Board wherein it has been observed that deficiencies and inadequacies in the manner of filing appeals are repeatedly diluting the department’s case before various appellate fora. Your attention is invited in this regard to various circulars issued by the Board pertaining to proper filing and monitoring of appeals, procedure regarding the same, and following judicial discipline above all in matters pertaining to law. Particular attention is invited to the following circulars/instructions issued by the Board for strict compliance by the field formations:

i. Circular No. 187/21/96-CX, dated 22.03.96
ii. Circular No. 337/53/97-CX, dated 03.10.97
iii. Circular No. 401/34/98-CX, dated 09.06.98
iv. Circular No. 413/46/98-CX, dated 06.08.98
v. Circular No. 453/19/99-CX, dated 09.04.99
vi. Circular No. 560/56/2000-CX, dated 30.11.00
vii. Circular No. 596/33/01-CX, dated 05.11.01
viii.
8. It has further come to the notice of the Board that orders remanded by the Tribunal to the field formations/Commissioner (Appeals) with specific directions remain to be adjudicated de novo for inordinate long period of time. As a result, not only does the revenue remained locked up in such cases but also the issue remains unsettled for inordinate length of time. CAG has also adversely commented on this in his report. Chief Commissioners and Commissioners are advised to devise a control mechanism to monitor the disposal of remanded matters by the adjudicating authority. The CDR’s office is circulating a monthly list of all orders passed by the CEGAT in favour/against of revenue as well as matters sent back on remand. This should be used as a check for monitoring pendencies in this regard.

9. Board has also noticed following defects/inadequacies in proposals received from Commissioners for filing of Civil Appeals /SLPs before Hon’ble Supreme Court.


(i) Absence of bifurcation of revenue involved in matters which are tagged together in the civil appeal/petition.

(ii) Annexures are incomplete or missing (even though mentioned in the body of the petition);

(iii) Supporting documents (photocopies) are not legible.

(iv) Copies of judgments/procedures cited in the appeal are not attached.

(v) Non-availability of correct address of the respondent, leading to non-delivery of notices.


10. In view of the above, it appears that the field formations are not handling their appeal cases adequately and properly. Accordingly, it is desired that a close watch should be maintained in respect of appeals pending before the Appellate Authorities. The appeals filed by the Department should be proper and complete in all respect adhering to the legal provisions in toto. Control Registers in respect of orders in original passed by various Adjudicating Authorities viz AC/DC, Joint/Additional Commissioner and Commissioners and appeals filed before all Appellate Authorities should invariably be maintained by the Commissioners for proper monitoring of the review of all orders. Further, Commissioners may ensure that a senior officer is deputed to monitor the cases of their respective Commissionerates by checking of the Supreme Court / High Court site (www.courtnic.nic.in). Close monitoring of judgments and daily orders (proceedings and instructions of the Hon’ble Judges) on the website will help in preventing delays in implementing the directions of the Hon’ble Supreme Court. It would also help if the daily cause lists are checked up on the internet both with regard to CEGAT (www.taxindiaonline.com) and Supreme Court (www.courtnic.nic.in) so as to monitor the cases of the Commissionerate which are in appeal.

11. The Chief Commissioners are also advised to critically examine the Commissionerates’ performance in this area and the monitoring mechanism developed by the field formations in this regard.



Sd/-
(B. K. Gupta)
Joint Secretary (Review)

F. No. 390/198(M-2)/2002-JC

(Please refer CIR NO.768/01/2004-CX, DT. 05/01/2004 - Instructions related Effective handling of Central Excise & Customs Appeals, Recommendations of the Expert Group)

(Please refer Cir. No. 746/62/2003-CE, Dt. 22/09/2003 Effective handling of Central Excise & Customs appeals, Recommendations of the Expert Group - instructions)



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