TIOL-DDT 2809 · the untouched capture
Rendered as it looked. Links and images are disabled in this view; the file itself is untouched.
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body> <p><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=23157"><img src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2015_1.jpg" alt="DDT in Limca Book of Records - Third Time in a row" width="300" height="148" hspace="5" border="0" align="right" ></a><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 2809</font><br> 17 03 2016<br> Thursday </strong></font></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Customs - Deemed Conclusion, Other Person, Co- <em>noticee </em> - Board Clarification</font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AS</strong> per proviso to Section 28(2) of the Customs Act, if duty with interest has been fully paid <em>within thirty days from the date of receipt of the notice, no penalty shall be levied and the proceedings against such person or other persons to whom the notice is served, shall be deemed to be concluded. </em></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">There is a similar provision under Section 28(6)(1) of the Act. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Who are the 'persons' or ‘other persons' under these provisions? Board has been asked this question. The Board after examining the issue clarifies: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. Provision of deemed conclusion of proceedings was introduced in the Section 28 so as to bring about closure to the cases where the dues to the Government could be realized without going through the process of adjudication on one hand and to cut the protracted litigation which generally follows the adjudication on the other. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. The provision of deemed conclusion is contingent upon the person to whom a SCN has been issued paying up all the dues of duty, interest and penalty. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. Only in such a circumstance of compliance, shall closure of proceedings against<em> other persons</em> come into effect. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Therefore, as a corollary, <em>other persons</em> implies person(s) to whom<strong> <u>no demand</u> of duty</strong> is envisaged. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. <em>Other persons</em> who happen to be co-noticees in the SCN for their acts of commission or omission other than demand of duty would be benefitted by the deemed closure in cases where the compliance of conditions mentioned in proviso to sub-section (2) or clause (i) of sub-section (6), as the case may be, by the main noticee to whom <em>inter-alia </em>a demand of duty has been issued has been fulfilled. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. All such cases where proceedings reach closure stage under the provisions of Section 28, an order to the effect must be invariably issued by the <font color="#FF0000"><em>concerned </em></font>adjudicating authority. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. Section 28 primarily deals with the recovery of duty or erroneous refund. While introducing the facility of deemed conclusion, enabling provision was made for payment of interest and/ or penalty. Therefore, all such SCNs or cases which involve duty, interest and/ or payment of penalty shall be covered by the above clarification. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Incidentally, the Tribunal has been taking this stand since a long time. See <a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=28&filename=legal/cestat/2007/2007-TIOL-1130-CESTAT-MUM.htm" target="_blank"><strong>2007-TIOL-1130-CESTAT-MUM-LB</strong> </a>(in the context of Settlement Commission orders), <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=ODkwMzA=" target="_blank"><strong>2013-TIOL-1048-CESTAT-DEL </strong></a><strong>, <a href="http://www.taxindiaonline.com/RC2/caseLawDet.php?QoPmnXyZ=MTA5NzUz" target="_blank">2016-TIOL-28-CESTAT-MUM</a></strong>. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk0MDE=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Circular No. 11/2016-Customs., Dated: March 15, 2016 </font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f1"></a>What about Central Excise and Service Tax? </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT </strong>will be interesting to note that similar provisions were inserted in Central Excise and Service Tax in the 2016 Budget. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">By Notification No. <strong><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTkyOTk=" target="_blank">8/2016-CENT</a></strong> dated 1.3.2016, the Central Excise Rules were amended to add a proviso after Rule 26(1):</font></p> <blockquote> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Provided that where any proceeding for the person liable to pay duty have been concluded under clause (a) or clause (d) of sub-section (1) of section 11AC of the Act in respect of duty, interest and penalty, all proceedings in respect of penalty against other persons, if any, in the said proceedings shall also be deemed to be concluded. </font></em></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In Service Tax, the Finance Bill 2016 proposes to insert an explanation in Section 78A: </font></p> <blockquote> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Explanation.-- For the removal of doubts, it is hereby clarified that where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded, and the proceedings with respect to a notice issued under sub-section (1) of section 73 or the proviso to sub-section (1) of section 73 is concluded in accordance with the provisions of clause (i) of the first proviso to section 76 or clause (i) of the second proviso to section 78, as the case may be, the proceedings pending against any person under this section shall also be deemed to have been concluded. </font></em></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Also see <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=26271" target="_blank">Co-noticees entitled for penal waiver if the main noticee pays duty, interest and penalty - Rule 26 of CER, 2002 amended</a></strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=26271" target="_blank"> </a></font></p> <p align="center"><font size="3"><strong><em><font color="#006600" face="Georgia, Times New Roman, Times, serif"><a name="f2"></a>CBEC Field Offices - Staff come late and have an impatient attitude </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>QUALITY</strong> Council of India (QCI) conducted a study of the public grievances received by CBEC to suggest ways to improve the redress of public grievances through Systemic reforms. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">QCI has observed the following grievances related to field formations: - </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(i) Staff frequently comes late </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(ii) Impatient attitude </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In order to ensure that officers/staff attend office in a timely manner, CBEC wants Aadhaar based IT attendance system to be started immediately. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The officers & staff are also advised to cooperate and assist the taxpayers in a friendly manner. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board also wants that efforts should be made to reduce/eliminate the public grievances on such issues. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please also read <a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MjM5MjI=" target="_blank"><strong>Come to Office on Time - Govt tells babus</strong></a>. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTk0MDM=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Letter in F. No. 283/01/2011-(CPGRAMS) Pt.III., Dated January 06, 2016 </font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600"><a name="f3"></a>Mallya-ble Revenue Officers </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ASSESSEES</strong> summoned by Central Excise/Customs/Service Tax officers must have horrible experiences of insult, humiliation and even third degree etched deeply in their memories. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But some assessees can recount sweet memories of exceptionally nice behaviour by the Revenue officers. The much maligned Vijay Mallya is perhaps one of them. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It seems Vijay Mallyahad visited the premises of the Service Tax office at Churchgate, Mumbai on being summoned. He was ushered into the cabin of the Commissioner and his statement was recorded by the Commissioner himself. After that, he was escorted out by the Commissioner himself till the lift. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Nothing wrong with this courteous behaviour to an assessee; in fact, this is the way all the assessees should be treated. </font></p> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Please also see <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=26492" target="_blank">TIOL-COB(WEB)-492</a></font></strong></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more<strong> DDT</strong></font></p> <p><strong><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day.</font></strong></p> <p><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="mailto:vijaywrite@tiol.in" target="_blank"><strong>vijaywrite@tiol.in</strong></a></font></p> </body> </html>