Section 11C notification issued but demand already confirmed ?
As explained in - 27.08.2007, Section 11C is a provision to help the babus to correct their mistakes retrospectively. DDT is aware of a case where the counsel argued that a Section 11C notification is proposed to be issued and the Adjudicating Commissioner held, " The Counsel submitted that the government is proposing to issue a Section 11C notification and so the case may be kept in abeyance. The very submission of the counsel that a 11C notification is proposed to be issued proves the fact that duty is payable and since no 11C notification has been issued as of date, I confirm the demand". We had reported a case where the Government had exempted blank coins supplied to the government mint for a particular period, but Salem Steel Plant which had supplied the blank coins had already paid duty. When they claimed refund, it was held to be time barred! See 2004-TIOL-1005-CESTAT-Mad.
Recently, it seems it was noticed that the benefit of a Section 11C notification has been denied by the field formation, on ground that prior to issuance of the said exemption notification, the demand has been confirmed and upheld by the Appellate Authorities. It has been argued that in cases where the demand has been confirmed they become the arrears of revenue and the benefit of 11C notification cannot be extended in such cases. In order to examine the request to write off such amount, the Finance Minister desired to know whether there are similar cases pending in hand, where even though exemption under section 11C has been granted but prior to issue of Section 11 C notification, order confirming demand had been issued and such cases are being shown as arrears on the ground that Section 11C notification was issued subsequent to confirmation of demand.
So the Board wants Chief Commissioners to furnish information about the orders where such demands are confirmed by various authorities before the Section 11C Notification was issued. The Board wants the Chief Commissioners to furnish the information by 25th August 2007 so that they can answer the query made by the FM.
This letter was written by the Board on 22nd August 2007. Assuming it was faxed to the Chief Commissioners on the same day, as the Chief Commissioners would not have the information ready, they will have to ask the Commissioners and assuming they did ask the Commissioners on the same day (virtually impossible) and if the Commissioners take two or three days to get the information, it cannot be ready before 27th August, 2007. They want the info by 25th August, which is a Saturday, a holiday for the Chief Commissioner as well as the Board. So obviously 25th August is a joke and they all know that no report will reach the Board by that time.
Who are they fooling? The FM? The Chief Commissioners? Or the stupid taxpayers of this nation?
CBEC F.No. 156/01/2004-CX4 Dated : August 22, 2007