Service Tax - Adjudication - JC's Adjudication Power Enhanced to Rs. 2 Crore; Supdt. 10 lakh
MAYBE before the GST comes into existence, CBEC wants to dispose of as many cases as possible at the Departmental level. The Board has enhanced the adjudication powers of the officers. The existing and revised monetary limits are:
Prior to 28.09.2016 | With Effect From 28.09.2016 | ||
|---|---|---|---|
Sr. No. | Central Excise Officer | Amount of service tax or CENVAT credit specified in a notice | |
(1) | (2) | (3) | |
(1) | Superintendent of Central Excise | Not exceeding Rs. one lakh (excluding the cases relating to taxability of services or valuation of services and cases involving extended period of limitation.) | Not exceeding rupees ten lakh (excluding the cases relating to taxability of services or valuation of services and cases involving extended period of limitation). |
(2) | Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise | Not exceeding Rs. five lakhs (except cases where Superintendents are empowered to adjudicate.) | Not exceeding rupees fifty lakh (except cases where Superintendents are empowered to adjudicate). |
(3) | Joint Commissioner of Central Excise | Above Rs. five lakhs but not exceeding Rs. fifty lakhs | Rupees fifty lakh and above but not exceeding rupees two crore, |
(4) | Additional Commissioner of Central Excise | Above Rs. twenty lakhs but not exceeding Rs. fifty lakhs | |
(5) | Commissioner of Central Excise | Without limit. | Without limit. |
So, now Superintendents can adjudicate up to ten lakh rupees, AC/DC up to fifty lakh, JC/ADC upto two crore and Commissioner as usual without limits. As such to many an assessee, it doesn't matter who adjudicates and with what limit, as the Show Cause Notices are routinely confirmed. It would be better if the intermediary stage of Commissioner (Appeals) is abolished.
Now, what will happen to the pending cases? In the next few months the major activity in the Commissionerates would be to transfer
1. All cases pending with Commissioner where the demand is less than two crore rupees, to the ADC/JC.
2. All cases with ADC/JC where the demand is less than fifty lakh rupees, to the DC/AC.
3. Most of the cases with DC/AC where the demand is less than ten lakh rupees, to the Superintendent.
The assessees will be addressed letters to intimate the new adjudicating authority.
Perhaps the Board would now rescind the Circular dated August 10, 2005 and come out with a new one.
Maybe till GST comes, there will be no adjudication, only transfer of files!
Notification No. , Dated: September 28 2016