The demand BANK - a Revolutionary Way of Issuing SCNs
SOME time back, we had in - 20.10.2011 carried a snippet titled “Preparation of Order-in-Original – a comic kissa”. Continuing in the same vein, the Netizen has something more for us. He writes in:
“Issuance of show-cause notices at the drop of a hat is becoming the norm nowadays. More often than not, these SCNs are given birth by Audit objections, which too are the result of in vitro or test-tube experimentation and carry a lot of prestige for the Auditors. Like the other day, I received an Audit Report in respect of an assessee and there were a dozen paragraphs which when added up projected a duty liability in excess of Rupees Fifty lakhs. As for the merits, no one discusses merits these days! The very thought of getting the SCN (obviously invoking extended period) approved by the Commissioner as warranted by the Board Circular 752/68/2003-CX dated 01.10.2003 gave me creeps – he would start from the basics and finally I would be asked as to how long I could survive in the department without knowing anything – give me a dressing down – all the while I will be standing like a moron listening to his intellectual prowess!
So, I thought that the most convenient way would be to give separate show-cause notices so that the amount gets split right in the middle and the sober Additional Commissioner would have no qualms in signing on the dotted line. I did just that and no one objected – who is bothered!
While implementing this ploy of mine, I had a great idea which I would like to share with my brethren.
Needless to mention this idea if implemented would save all of us (departmental officers) from the rigours of getting the SCN approved from the higher bosses.
It works like this - Let there be a total duty demand amount allotted to a particular Range based on its monthly Revenue figures for the preceding financial year with the permissible additions and subtractions in percentage terms viz. addition of new units/closure of old ones. Obviously, the Chief Commissioner should have a final say in the matter! Based on the monetary limits of adjudication prescribed by the Board Circular dated 01.10.2003 as amended, allot the first five lakhs to the AC/DC, the next forty five lakhs to the Joint Commissioner/Additional Commissioner and the balance in excess of fifty lakhs and one rupee to the Commissioner. If the apportioned “demand amount” crosses this total figure then repeat the exercise once again! If this is done, the Range authorities would not be required to trudge the steps leading to the Joint/Additional Commissioner's or the Commissioner's cabin during their tenure and issue the SCNs by showing that they have been signed ‘in anticipation'. A monthly report should be submitted to the Chief Commissioner indicating the SCNs issued and the allotted amount that has been consumed during the month. If there is any allotted amount in balance, the same is required to be carried forward and if the amount falls short, permission should be taken from the Chief Commissioner for raising the allotted amount on a post facto basis. I intend to sell this “idea” to the Board and if you agree please sign on the dotted line…”
DDT can do only thing - praise this genius!