To reduce litigation, the Finance Ministry on Monday raised the monetary limit for filing appeals in indirect tax cases to Rs 10 lakh in appellate tribunal, and Rs 15 lakh in High Courts.
The ministry has also made it mandatory for Principal Commissioners or commissioners to hold a pre-showcause notice consultation with assessee in all cases where duty is above Rs 50 lakh, a statement said.
Earlier, the limits were Rs.5 lakh and Rs.10 lakh, respectively.
The department is organizing training and workshops in zones to train officers to issue quality SCNs, judicious adjudication orders and advocacy in order to minimize disputes and further litigation.
The Central Board of Excise and Customs (CBEC) has asked officers to withdraw all cases in High Court and CESTAT where there is a precedent Supreme Court decision and against which no review is contemplated by the department.
Chief commissioners or principal commissioners have been asked to identify the cases fit for withdrawal among the cases pending in appeal before Custom Excise and Service Tax Appellate Tribunal (CESTAT) and High Courts.
The field formations have identified 2,051 and 5,261 cases which are fit for withdrawal from High Court and CESTAT respectively as per the threshold monetary limits prescribed now.
They have already filed withdrawal applications in 980 and 2,174 cases in High Courts and CESTAT respectively. Out of this, High Courts has allowed withdrawal in 250 cases and CESTAT in 202 cases.
Further to ensure quick dispute resolution, CBEC has asked officers for going into pre-showcause notice (SCN) consultation with the assessee in all the cases where duty involved is above Rs 50 lakh.
Detailed instructions have been issued to all field formations regarding the manner, in which an SCN is to be issued, personal hearings are to be granted and speaking adjudication orders to be issued. The chief commissioners have been directed to do sample verification of records of such proceedings from time to time.
