Board Clarifies
TIOL understands that Board has clarified/decided/likely to clarify the following
Legislative amendments in respect of Settlement Commission – Service Tax to come under settlement?: The review committee constituted by the Chairman of the Settlement Commission had suggested the following
(1) Amend Section 32E of the Central Excise Act and Section 127B of the Customs Act to provide for settlement of cases in pursuance to the show cause notices issued to declarants who have not filed returns and similarly cases relating to import or export through baggage, courier or by post.
(2) Extend the scope of settlement Commission in matters relating to service tax.
(3) Amend Customs Act to align with para 2.46 of the Foreign Trade Policy 2004-2009, to provide for settlement of cases in sow cause notices issued by DGFT.
(4) Remove the restrictions imposed under section 127B of the Customs Act in relation to goods notified under Section 123.
(5) Provision for settlement of cases of the co-noticees, namely, Directors, transporter, associates etc. under the Central Excise Act.
(6) Provision for settlement of cases that are already pending before the Tribunal.
(7) Prescribe uniform rate of interest under Section 127C of the Customs Act and Section 32F of the Central Excise Act to align with statutory rate of interest prescribed under section 23AB and Section 11AB respectively.
(8) Provision for prosecution of offences in relation to service tax matters.
Board has not found any of these suggestions feasible for acceptance except the one relating to service tax.
Mechanism for review of the order-in-original and order-in-review passed by the Commissioners in Service Tax cases. - No Committee to review Service Tax orders - Board was of the view that Service Tax is at a nascent stage and evolving; hence it should be allowed to settle down. Accordingly the proposal to amend section 86(2) of the Finance Act, 1994, so as to align the review provisions, in respect of orders passed by Commissioners in service tax cases, with the provisions of the Customs and Central Excise Law through a mechanism of review by a Committee of Chief Commissioners may not be appropriate for the present. Thus the Board would continue to review the orders passed by the Commissioners in respect of Service Tax.
Transfer of cases requiring review by the Committee of Chief Commissioners, where one of the members of the committee had passed order in such case. - The Board considered that the Committee of Chief Commissioners and Commissioners have been constituted under Customs and Central Excise Acts for the purpose of independent review of the orders passed by the Commissioners and Commissioner (Appeals). In view of this and on the principle that 'no person can be a judge in his own cause', Board decided that in a case where one of the Chief Commissioners had decided the case, as Commissioner, he would not be part of the Committee and the Chief Commissioner of adjoining Zone or Commissioner of adjoining commissionerate in the Committee would be co-opted for deciding such cases.