Recall the Call Book - CAG tells CBEC
CASES which have reached a stage where no action can or need be taken to expedite their disposal for at least 6 months may be transferred to the call book with the approval of the competent authority. Cases in which the department has gone in appeal, cases where injunction has been issued by Supreme Court/High Court/Tribunal etc., cases where audit objections are contested and cases where the Board has specifically ordered the same to be kept pending may be entered into the call book. Further extant instructions to the Commissionerates require monthly review of pending call book items.
CAG found that in a Commissionerate, a Show Cause Notice demanding interest on differential duty paid voluntarily by the assessee on account of price revision, was kept in the Call Book on the grounds that the decision pertaining to liability of interest and penalty when the duty was paid before issue of SCN, was pending before the Apex Court. However, Audit observed that the question of payment of interest under Section 11AB on differential duty had already been decided by the Apex court in the case of Commissioner vs. SKF India Ltd. - (2009 TIOL-82-SC-CX), in July 2009. Similarly, the court had decided the question of quantum of penalty to be levied when duty was paid before issue of SCN in Union of India vs. Dharmendra Textile Processors - () in August 2008 (actually September 2008). Retention of SCN dated 20 September 2006 in the call book indicates inadequacies in the mechanism for review of call book items.
Audit observes that monitoring in respect of call book cases was inadequate as
a) transfer to call book was incorrect,
b) if a system of monthly review of call book items as envisaged in instructions was being complied with, the item would have been removed from the call book at least two years earlier.
What is a Call Book? Please see -14.12.2009
[From CAG's Report No.17 of 2013 - Indirect Taxes]