National Litigation Policy - CBEC Sermons
CBEC has observed that sometimes Show Cause Notices have been issued, which become unsustainable in the legal process. Creating such avoidable SCNs not only does become burden on the Government revenue, it also impacts the precious time of Trade & Industry as well as Appellate Authorities/Courts. The National Litigation Policy (NLP) formulated by the Government of India aims to reduce Government litigation so that Government ceases to be a compulsive litigant. The purpose underlying this Policy is to ensure that valuable time of the Courts is spent in resolving pending cases and in bringing down the average pending time in the Courts. To achieve this, the Government should become an 'efficient' and 'responsible' litigant.
Board emphasises:-
i. SCNs should be issued after thorough examination and keeping in mind that grounds given in the SCNs are cogent, sustainable and backed by legal provisions and pronouncements.
In a Communication to the TARC, President of the CESTAT Justice Raghuram observed that show cause notices often record conclusions, instead of allegations.
ii. Pass quality adjudicating orders, which can stand legal scrutiny of the Appellate Authority/Courts.
Justice Raghuram stated that adjudication orders fail to critically appreciate the evidence on record, neutrally consider and analyse defences presented by an assessee and record conclusions rationally resulting from the processed evidentiary matrix and applicable legal principles .
iii. Pass the adjudication orders within the specified time.
What is the specified time? Does any adjudicating authority know?
iv. Judicial discipline should be followed while deciding pending show cause notices/appeals.
If the Adjudicating authorities had any respect for the Supreme Court and the Board more than half the litigation could be liquidated.
v. Instructions issued with regard to the threshold limits for filing appeals before various fora must be applied scrupulously.
To be fair, this is being followed by and large.
vi. There should be proper system of monitoring and handling the litigation at the field level to prevent delays.
Don't you have one, so far?
Board wants the Chief Commissioners to issue the above instructions to their staff for information and guidance.
Do you think the litigation mechanism is in for a major change? Don't expect anything remotely resembling that. As reported in these columns frequently, the field officers have scant respect for the Board and its routine instructions. Many adjudicating authorities openly tell the assessees, "you will surely win in the Tribunal, but I can't give you the benefit."."Let them go to Tribunal", is a favourite mantra of the adjudicator. If the departmental adjudication orders were legal if not fair, half the consultants would have gone out of business.
This kind of letters from the Board will not change the reality; in any case they have been issuing such letters for more than fifty years. The system will change only if there is a reward or punishment.
CBEC Instruction in F.No.275/17/2015-CX.8A., Dated March 11 2015