TIOL-DDT 1808 · Monday, 5 March 2012 · story 3 of 5

Suggestions/inputs/feedback invited from taxpayers, Trade Associations and other stake holders as regards rising litigation

RISING litigation with taxpayers is matter of serious concern for the Government. A need for reducing the litigation has been emphasized by the Finance Minister on various occasions.

As per the directions of the Finance Minister, a Standing Committee has been constituted in the Central Board of Excise and Customs to identify systemic causes for litigation and preparing a roadmap for reducing the existing litigation and avoiding litigation in future on the indirect tax side. The Committee consists of two Members of the Board, nominated officials of CBEC, and a representative of Law Ministry.

The Committee seeks feedback from taxpayers, Trade Associations and all other stake holders as regards the causes, systematic or otherwise, that are perceived as contributor to avoidable litigation on indirect tax side, and any relevant suggestions/ inputs/feedback in this context.

Response may please be emailed at gd.lohani@nic.in to Shri G. D. Lohani, Director (Legal), CBEC (Phone No. 011-26162152 and Fax No. 011-26177515) by 31st March, 2011.

Perhaps the CBEC itself is to blame for the litigation. “Branded Jewellery” clarification carried at the top of today's DDT stands testimony to this. Based on the circular dated 25 th March 2011, many Show Cause Notices must have been issued. Now on 2 nd March 2012, they simply reverse the stand. Why did they issue the circular dated 25 th March 2011 in the first place? Don't they read their own notifications properly? Should trade and industry point out the condition No 8 of the Notification to them? Will any action be initiated on the person responsible for issuing such incorrect clarification dated 25 th March 2011 and causing unnecessary and avoidable litigation?

CBEC Letter