Target - ted Appellate Commissioners
IT seems the CBEC has fixed a target for the Commissioners (Appeals) – the number of orders they are required to pass. We are made to understand that a Commissioner(Appeals) has adopted an ingenious method to beat the target.
The first part of an appeal before a Commissioners (Appeals), is the Stay Application. Most of the Commissioners, generally hear and decide both the Stay and Appeal together, but this ingenious Commissioner has devised a dubious way to meet the target. Immediately on an appeal being filed along with the stay application, he passes an order of pre-deposit, without even giving the party an opportunity of personal hearing. He relies on the decision of the Supreme Court in the Jesus Sales Corporation case – ; But the Delhi High Court in JT(India) Exports – , it was held that Jesus Sales, cannot have universal application and it was decided on the peculiar factual position of that case pertaining to the Imports and Exports(Control) Act. The Delhi High Court added, “Justice should not only be done but should also be seen to be done”.
Coming back to our target-top Commissioners (Appeals), he is a champion in passing orders and when his Chief Commissioner sends his report to the Board this Commissioners (Appeals), let us call him CA, is on the top of the league, all his other colleagues lagging way behind. The Board and CCs go by numbers and our CA is a clear leader and way ahead of all others and is shown as an example worthy of emulation. His colleague Commissioners are shown as inefficient and incompetent – at least painfully slow.
Now if you analyse the work of our competent CA, this is what happens.
He passes a large number of orders asking the parties to make pre-deposit. Assessees don't manufacture currency notes and many of the assessees don't make the pre-deposit. In fact this pre-deposit order of the CA is FINAL; there is no appeal against it. For failure to comply with the order of pre-deposit, our CA dismisses the main appeal. Now the assessee goes to the Tribunal, which remands the case to the CA to decide the matter on merits. Now he passes his order and the assessee again goes to the Tribunal. Till now not a rupee has been realised, while other Commissioners who were not as fast as our CA must have realised some amounts in pre-deposit at least at the stage of the Tribunal.
Government should realise that such record breaking and target hitting Commissioners are not exactly working for safeguarding the Government interests – they only add to work all around without adding in any way to the Revenue and in the process bringing a bad name to the government.
Government should seriously consider
++ doing away with the requirement of pre-deposit at the first appellate stage
++ doing away with the post of Commissioner (Appeals), as it is only an impediment and a necessary stopover in the legal journey.
++ At least directing the Commissioners (Appeals) to give a hearing before deciding stay applications.