Expeditious Adjudication- Board’s Action plan
“Board is concerned with heavy pendency of Central Excise demand cases considering that delay in adjudication of such cases has a direct bearing on revenue collection efforts of the government.” CBEC Chairman VP Singh has written to all the Commissioners to speed up the adjudication process. Board has analysed the pendency position and observed that 13941cases involving central excise duty of Rs. 9851.49 crore are reported pending as on 31.3.2006. The Chairman wants all these cases to be adjudicated by 31.3.2007. Actually the Chairman desires that these cases are adjudicated before 31.10.2006, so that field officers are left with some time to pursue with the assessees for recovery preferably within the current financial year Itself.
Board’s analysis of the pendency has revealed:-
++ cases involving 89.33% of revenue are pending at the level of commissioners
++ In terms of number of cases the corresponding figure is only 13.18%
++ the top 20 CCEs, account for 73.30% of the revenue blocked in adjudication on an all India basis.
++ No. of cases - 13941
++ Revenue Involved - Rs. 9851.19 crore
The Chairman wants
1. All demand cases pending adjudication as on 31.3.2006 be targeted for disposals latest by 31.3.2007.
2. Maximum possible disposals be done by 31.10.2006 so that the field officers have time to effect recoveries in accordance with the law within the current financial year itself, after the normal appeal period is over.
3. 89.33% of total blocked up revenue is in the cases pending at the level of commissioners- As such, disposals at the Commissioners' level should be the main area of focus.
4. Top 10 CCEs (in terms of revenue blocked in adjudications) accounting for 59.55% (i.e., Rs.5786.23 crore) of total blocked up revenue be subjected to special adjudication-focused audit by the Inspection Directorate.
5. Next 10 CCEs having another Rs.1336.29 crore, i.e., 13.75% of the blocked up revenue, be specially inspected by the respective Zonal Chief Commissioners.
6. For the remaining 73 commissionerates, similar self-Inspections by the respective commissioners-in-charge of the commissionerates be carried out.
7. The Inspections by the Inspection Directorates, Chief CCEs and CCEs may be carried out, with advance notices in the first fortnight of September 2006 so that the concerned officers in the field formations have sufficient time to put their respective houses in order before the inspection takes place and are also left with sufficient time for rectifying deficiencies and taking corrective action as may be brought out / suggested on inspection. The inspecting teams/officers should focus their attention exclusively on pending adjudications and submit the inspection notes at most within one week of the actual date of Inspection.
8. Demand Notices Issued during the current financial year too be given due attention for timely action and conclusion of proceedings. This is necessary to ensure that such fresh demand cases don't pile up to a big pendency and block substantial revenue at the end of the year.
Obeying the Board is not exactly a favourite pastime in the field and the Chairman’s D.O letters are at best considered a nuisance, but now as reports on figures of adjudication have to be given, Commissioners are sure to get hyperactive. Tough days ahead for the assessees.