Cenvat Credit Rules amended
References to the clauses of the Finance bill 2005 are removed as they are no more needed in view of the enactment of the Finance Bill.
7. Notification No , Dated: May 13, 2005:
Chief Commissioners of Customs to act as Chief Commissioner of Central Excise, for the review committee. And vice versa
As per Section 35(1B) inserted vide Section 79 of the Finance Act 2005, the Board is to constitute a committee for reviewing the orders of Commissioners and Commissioners (Appeals). Now by this notification Board has empowered Chief Commissioners of Customs to be Chief Commissioners of Central Excise for the purpose of constituting the committee.
A similar notification is issued under Customs to empower a Chief Commissioner of Central Excise to act as Chief Commissioner of Customs. Refer Notification No. , dated 13-05-2005.
8. Notification No , Dated: May 13, 2005:
Committee of Chief Commissioners - Board notifies jurisdiction
As per Section 35E amended by Section 80 of the Finance Act 2005, orders passed by Commissioners are to be reviewed by a committee of two Chief Commissioners. Now the Board has notified the committees and their jurisdictions. While Jurisdictional Commissioner is invariably the first member of the committee a neighbouring Chief Commissioner is made the second member. In most of the cases for review there is lot of flying to be done either by the files or the Chief Commissioners. For example the committee for Chennai constitutes the Chief Commissioner Chennai with the Chief Commissioner Mangalore. Why the second member could not have been the Chief Commissioner of Customs, Chennai is known only to the Board. May be Chief Commissioner in out of the way Mangalore should have a chance to visit Chennai for the purpose of this review.
A similar notification is issued under Customs to specify the jurisdiction of Chief Commissioners of Customs under Section 129B of the Customs Act. Refer Notification No. , dated 13-5-2005.
9. Notification No , Dated: May 13, 2005:
Committee of Commissioners - Board notifies jurisdiction
As per Section 35B(2) amended by Section 79 of the Finance Act 2005, orders of Commissioner (Appeals) are to be reviewed by a committee of two Commissioners. It is not known why the orders of Commissioner (Appeals) are to be reviewed by a committee of Commissioners when the orders of Jurisdictional Commissioners are to be reviewed by a committee of Chief Commissioners. Is the Commissioner (Appeals) in any way less important than the Jurisdictional Commissioner that his orders require only a lower level of scrutiny? Leaving that at that, the Board’s list of Commissioners is not updated. As per Notification No. 1/2005-C.E. (N.T.), dated 4-1-2005, a new post of Commissioner (Appeals) Hyderabad-III had been created. But the Board’s list of committee of Commissioners to review the orders of Commissioner (Appeals), does not contain Commissioner (Appeals) Hyderabad-III. This means the orders of the Commissioner (Appeals) Hyderabad-III will not be reviewed and there cannot be any appeal against the orders of this Commissioner (Appeals).
There is even a more appalling error in the notification. For the last seven years the post of Commissioner of Central Excise, Guntur is lying vacant and at present the Commissioner of Central Excise, Tirupati is holding additional charge of this Commissionerate. As per serial No. 26 of the notification, the orders of Commissioner of Central Excise (Appeals), Guntur is to be reviewed by a committee consisting of Commissioners of Central Excise, Guntur and Tirupati. As mentioned earlier there is no Commissioner, Guntur or rather Commissioner, Tirupati is also Commissioner, Guntur. So the committee in effect will consist of only one member, namely the Commissioner Tirupati. That is Commissioner Tirupati will review the orders of the Commissioner (Appeals) Guntur! There may be several such instances. The Committology is bound to cause trouble!
Similar notification is issued under Customs for appointment of committee of Commissioners to review the orders of Commissioners of Customs (Appeals). Notification No. , dated 13-5-2005. But there is a problem here also. A Commissioner of Central Excise (Appeals) is also a Commissioner of Customs (Appeals) within his jurisdiction. Now who will review the orders of a Commissioner of Central Excise (Appeals) passed in his capacity as a Commissioner of Customs (Appeals)? Obviously the same committee!. No this committee of Commissioners of Central Excise is not vested with the powers of a committee of Commissioner of Customs. There should have been notifications issued similar to Notification Nos. 23-C.E. (N.T.) & 38/2005-Cus (N.T.) dated 13-5-2005 to empower with the committee of Commissioners of Central Excise with the powers of committee of Commissioner of Customs.