Prospective disobedience of appellate orders – Board issues draconian circular
That government is the best which governs the least and perhaps that Board is the best which does not issue clarifications. It has now become almost a regular practice for the Board to upset the apple cart and create confusion in the field. The latest missive from the Board is a clear affront on the appellate authorities. Board wants the field to respect the stay orders of the appellate authorities only for the past period but to implement the impugned order prospectively. In simple terms this means if the central excise Commissioner passes an order that the mangoes grown in the factory premises are dutiable and demands duty and the assessee goes to the Tribunal and gets a stay and waiver of pre deposit, Board will honour the Tribunal’s order only for the past period and for future clearances you may have to pay excise duty on those mangoes, unless the Tribunal specifically mentions that the stay applies for future too. The Board had actually issued a draft circular in March. Please see TIOL-DDT 67 - 3 3 2005 - Assesses beware : Draconian Circular coming! Board kept this in hibernation for nearly a whole year and while every one thought that the issue is closed, Board has silently slipped in this bomb; may be to help revenue drive in the last quarter of the year. We are also bringing you an analysis on the subject by one of our regular authors, who has just quit the department. Please see CODE OF HAMMURABI – THE CBEC’S WAY.
CIRCULAR NO. , Dated: January 16, 2006