Board issues Instructions
-29.04.2014 reported about a Gujarat High Court Judgement which chastised a young IRS officer for her blatant disobedience. The High Court had directed the CBEC to issue a detailed circular within 30 days to all adjudicating authorities on judicial discipline and the need to follow the orders of higher authorities. The High Court judgement was delivered on 25.10.2013 and now the Board has come out with the directed instructions - after eight months. Well, it takes time to draft a letter asking adjudicating authorities to follow judicial discipline.
The Board instruction notes that the assessee had filed appeal before the High Court against rejection of a refund claim on an issue which had earlier been decided by the High Court against the revenue, though in a matter relating to a different assessee. Thus for deciding the refund, a binding precedent judgment existed. However the binding precedent was not followed which led to litigation before the High Court to which the High Court took a serious view.
The Board further noted that on the subject of consequential refund, where the department has gone in appeal, there already exists a circular No 695/11/2003 -CX dated 24-02-2003 and had this circular been followed in the case, unnecessary litigation as well as adverse observation of the High Court could have been avoided.
Board wants the learned adjudicating authorities to peruse the judgement of the High Court in for complete understanding of the issues involved and directions of the High Court on need to follow judicial discipline.
Board also wants the officers to peruse the judgement of the Supreme Court in Union of India vs. Kamlakshi Finance Corporation Ltd.- which is an authoritative pronouncement on the issue and which has also been cited by the High Court.
Board wants the Chief Commissioners to bring the contents of the Circular to the notice of all adjudicating authorities under their jurisdiction with direction to follow the same scrupulously.
CBEC Instruction in F. No. 201/01/2014-CX.6, Dated: June 26, 2014