CIR NO.746/62/2003-CX, DT. 22/09/2003

Effective handling of Central Excise & Customs Appeals, Recommendations of the Expert Group-instructions reg.

Attention is invited to Board"s Circular No. 710/26/2003-CX dated 23rd April 2002 issued from F.No.390/198(m-2)/2002-JC, wherein field formations were sensitized on the need to remove deficiencies and inadequacies in the manner of filing departmental Appeals. As your are aware, an Expert Group under the chairmanship of Shri R.K. Tiwari Chief Commissioner Customs and Central Excise (Pune Zone) was constituted to carry out an in depth study of departmental procedure in appeal matter and to find out lacunae in dealing with appeal cases at all levels. The Expert Group while submitting its report has made some valuable suggestions based on which the following guidelines are being issued for strict compliance by the field formations:-

1. In order to have a systemic cheek, the Chief Commissioner should scrutinize 10% of the orders of the Commissioner (Appeals). The Chief Commissioner should undertake periodical inspection in this regard, and devise his own method of such scrutiny.

2. The adjudicating authority should take adequate care in passing judicious, well reasoned orders, correct in law, irrespective of whether in favor of or against revenue.

3. For out-of-turn early hearing of the cases with high revenue stakes. The Commissionerates should make Miscellaneous Applications indicating clearly the grounds for such prayer. Such Miscellaneous Applications are to be filed in terms of Rule 28C read with Rule 28A of the CEGAT (Procedure) Rules, 1982

4. Similarly in order to get the interim Stay Orders vacated, the Commissionerates must take pro-active measures by filing Miscellaneous Petition before Supreme Court/High Court/CESTAT for early hearing, specifying the grounds elearly. The Commissonerates must follow-up these matters at appropriate levels after filing of the Miscellaneous-Petition.

5. There should be prompt follow-up or appeal matters, particularly in respect of Civil Appeals/SLPs before the Supreme Court, through effective liaisoning between the Directorate of Legal Affairs and the Commissionerates on one hand and between the Directorate and the CAS of the Ministry of Law on the other hand Commissioners should ensure that a mechanism is in place for constraint interaction with Directorate of Legal Affairs W.r.t. appeals of their jurisdiction. Similarly the Directorate should ensure facilitation of departmental appeal matters with CAS and Ministry of Law.

6. The Directorate should also play an important role in getting the old cases listed for hearing in Supreme Court, in coordination with the concerned Commissionerates. In order to get interim stay orders vacated from the Supreme Court, the DLA should tie-up with the Commissonerates for filing of Misc. Application of early hearing. Necessary co-ordination in this respect may be ensured.

7. The Commissionerates should tie-up with the Directorate of Legal Affairs so that during the long vacation of Supreme Court and Delhi High Court, conversant officers of the Commissionerates are sent to the Directorate for reconciling the pending matters.

8. As regards cases the Supreme Court and the Delhi High Court, the Commissioners must ensure that conversant officer from the Legal Section is deputed during the long vacation period, in coordination with the DLA. for reconciling the pending cases before Supreme Court and Delhi High Court. The DLA can thereafter pursue the Miscellaneous Petition filed for out of turn early hearing of the pending matters.

9. The Directorate should obtain information in respect of the Supreme Court orders/decisions in favor of the Revenue, and pursue with the Commissionerates for the implementation of the Supreme Court orders and recovery of Revenue.

10. A mechanism should be put in place by all Commissioners t track the fate of the Reference Applications filed in the cases, prior to July, 2003.

11. A Special Watch Register may also be maintained which should contain inter alia the details of para-wise comments and Gross-objections, if any, filed by the Commissionerate.

12. The standard control register with standard columns relating to adjudication, appeal at different levels etc. as already prescribed, should be regularly maintained and abstracts dawn on a monthly basis, which should invariable be inspected by the incharge D.C./A.C. and other senior officers on monthly basis.

13. A list of orders favourable to the Revenue relating to a particular Commissionerate must be prepared by the Addl/Jt. Commissioners in charge of Legal and Tribunal Section of the Headquarters, and circulated to all the Divisions for getting the revenue recovered.

(B.K. GUPTA)
JOINT SECRETARY (R)

F.No. 390/85/2003-JC

(Please refer CIR NO.768/01/2004-CX, DT. 05/01/2004 - Instructions related Effective handling of Central Excise & Customs Appeals, Recommendations of the Expert Group)

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