Friday, 4 July 2014

In the matter of refunds CBEC wants special attention to judicial discipline

The CBEC i.e. Central Board of Excise & Customs has issued a Instruction F. No. 201/01/2014-CX.6 dated 26.06.2014 regarding need to follow Judicial discipline in adjudication proceedings to all The Commissioners of Central Excise, Central Secise and Service Tax and Customs. For more information regarding this Refunds of CBEC read the following instruction-




F. No. 201/01/2014-CX.6
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
New Delhi, the 26th June, 2014

To

All Chief Commissioners of Central Excise,
All Chief Commissioners of Central Excise and Service Tax,
All Chief Commissioners of Customs.

Sirs,

Subject – Instructions regarding need to follow Judicial discipline in adjudication proceedings.

Kind attention is invited to the order of Hon’ble High Court of Gujarat at Ahmedabad in case of M/s E. I. Dupont India Pvt Ltd (hereinafter referred to as M/s Dupont) in Special Civil Application no 14917 to 14921 of 2013 dated 25-10-2013 [2013-TIOL-1172-HC-AHM-CX]. M/s Dupont had filed appeal before the Hon’ble High Court against rejection of a refund claim on an issue which had earlier been decided by the Hon’ble High Court against the revenue, though in a matter relating to a different assessee. Thus for deciding the refund, a binding precedent judgment existed.

2) However the binding precedent was not followed which led to litigation before the Hon’ble High Court to which Hon’ble High Court took a serious view. It may be noted that on the subject of consequential refund, where the department has gone in appeal, there already exists a circular no 695/11/2003 –CX dated 24-02-2003. This circular of the Board is binding on all field officers. Had this circular been followed in the case, unnecessary litigation as well as adverse observation of the Hon’ble High Court could have been avoided. This circular is once again brought to the notice of field officers with direction that it is followed scrupulously.

3) The judgment of Hon’ble High Court in M/s Dupont case (supra) under reference may be perused by the field officers for complete understanding of the issues involved and directions of the Hon’ble High Court on need to follow judicial discipline. Judgment of the Hon’ble Supreme Court in case of Union of India vs. Kamlakshi Finance Corporation Ltd. [1991 (55) E.L.T. 433 (S.C.) = 2002-TIOL-484-SC-CX-LB] may also be perused as this is an authoritative pronouncement on the issue and has also been cited by the Hon’ble High Court.

4) The contents of this instruction may be brought to the notice of all adjudicating authorities under your jurisdiction with direction to follow the same scrupulously.

Yours faithfully,

(Pankaj Jain)
Under Secretary (CX

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