Reduction of Government litigation - supply copy of withdrawal application to Chief Commissioner (AR)
VIDE CBEC Instruction in F. No.390/Misc./163/2010-JC., Dated: December 17 2015 new monetary limits were prescribed for filing of appeals by the department before the CESTAT& the High Court.An increase was made of Rupees Five lakhs from the earlier existing Rs.5 lakhs and Rs.10 lakhs for filing appeals before the CESTAT and High Court respectively.
18 12 2015 commented, The Board has not clarified whether these instructions are applicable for pending cases, as done by CBDT.This issue by itself could generate further litigation. Without waiting for litigation to mount, CBEC should clarify that the limits apply to pending litigation also. Please don't create litigation on litigation.
CBDT has directed that Pending appeals below the specified tax limits may be withdrawn/not pressed. Based on the CBDT instruction dated 10.12.2015, the ITAT, Ahmedabad passed an order on 15.12.2015 dismissing 251 Revenue Appeals in one stroke on the single ground that the tax effect in each of the appeals was less than 10 lakh rupees. CBEC and CESTAT should follow the example set by CBDT and ITAT.
In DDT 2758 while reporting CBEC Letter in F.No.390/Misc./163/2010-JC., Dated January 01 2016, we mentioned -
DDT is happy to report that CBEC has reacted positively and clarified that the instructions issued on 17.12.2015 will apply to all pending appeals in High Courts/ CESTAT.
Board further directs, "Principal Chief Commissioners/ Chief Commissioners are required to take immediate necessary action in this regard for cases which are below the new threshold limits subject to the conditions of the instructions of even no. dated 17.08.2011 and 17.12.2015".
An action taken report was also sought by the Board under F.No.390/Misc./163/2010-JC dated January 21, 2016.
Now, the Board wants all the Principal Commissioners/ Chief Commissioners to send a copy of each application filed for withdrawal of such appeal before CESTAT to the Chief Commissioner (AR), CESTAT.
Obviously, AR is the one who has to be in the know of these developments in the first place.
It would also be nice on the part of the Board to inform all the assessees concerned the appeals which have been withdrawn by the Department rather than parting with this information only after an RTI application is filed! The Commissionerate and the CESTAT website could explore the idea of carrying a link giving all the details of such 'withdrawal applications' and thereby contribute their might towards 'ease of doing business'.
CBEC letter F.No.390/Misc./163/2010-JC dated February 4, 2016