1. Massive amounts of revenue stuck in litigation, this is what the Narendra Modi government has ordered CBEC officers to do

Massive amounts of revenue stuck in litigation, this is what the Narendra Modi government has ordered CBEC officers to do

As the government struggles to realise a massive amount of revenue stuck in litigation, the Central Board of Excise and Customs (CBEC) has instructed its officials and field formations to proactively challenge pending or stayed cases related to the goods and services tax (GST) in high courts by way of filing special leave petitions (SLPs) in the apex court.

By: | New Delhi | Published: September 28, 2017 6:08 AM
Narendra Modi, Narendra Modi government, CBEC, GST, GST-related cases, Commissioner of Income Tax, Income the Tax Appellate Tribunal  The Supreme Court allows SLPs only if there is a substantial question of law of general or public importance involved, or if there is manifest injustice resulting from an impugned order or judgment. (PTI)

As the government struggles to realise a massive amount of revenue stuck in litigation, the Central Board of Excise and Customs (CBEC) has instructed its officials and field formations to proactively challenge pending or stayed cases related to the goods and services tax (GST) in high courts by way of filing special leave petitions (SLPs) in the apex court. The Supreme Court allows SLPs only if there is a substantial question of law of general or public importance involved, or if there is manifest injustice resulting from an impugned order or judgment. “Principally, all orders, whether interim or final, are appealable. Whether the levy of GST has been questioned or stayed, irrespective of the fact that matter is still pending before the High Court, the same needs to be challenged through SLPs before SC,” the board said while instructing its officials.

Officials said that the idea was to ensure that there was finality on aspects of GST without waiting for pending cases to be decided. In its communication, the board said : “As GST is at its inception stage, it is important to defend the issues effectively to defend the interest of the government.” It referred to high courts’ decision in certain GST-related cases where the department was asked to not take coercive steps to recover taxes pending the outcome of the petition. Further, the department asked the officials to keep a close watch on GST-related petitions filed in the high court in their jurisdiction. The officials are also required to send a proposal for filing SLP to the legal cell of the board for vetting.

However, officials said that monitoring GST-related cases would require resources that are currently engaged in resolving legacy issues. To ensure that manpower is available for GST cases, the board, in a separate communication, asked the officials to decide all pending cases by December. The board will review the progress on October 5. As FE reported earlier, CBEC is engaged in over 3,000 pending cases with an accumulated revenue of over Rs S 1.5 lakh crore. Each of these cases is worth Rs 10 crore or more in terms of revenue involved. The board has also tried to withdraw smaller cases earlier this year. Last year, the government had said CBEC identified 7,312 cases fit for withdrawal from courts and tribunals. Field formations had filed withdrawal applications in 980 and 2,174 cases in high courts and tribunal. The issue of revenue blockage due to litigation is worse for the direct taxes department. According to official data, as of April 1, a total of 2.9 lakh cases were pending before the department’s first appellate authority — the Commissioner of Income Tax (CIT) (appeals) — involving `6.11 lakh crore. Of this, demands amounting to `1.18 lakh crore had been stayed by the Income the Tax Appellate Tribunal or other courts.

  1. S
    subhash mahajan
    Sep 28, 2017 at 4:02 pm
    It is now accepted view that the economy has deteriorated and the growth rate has fallen down.No investments are coming and the existing industries are finding hard to survive and under these circumstances the bad loan are going to rise many fold if something concrete is not done by the Govt. The govt has made several annoncements of the projects under National Highway,Railway and flood management. But no fund have been released for these projects. In Himachal Pradesh the govt was to release fund for SWAN River projects but after completing the stage II the project has been left in between and the central govt. has refused to make available the funds.Now in case the govt. is really serious in the growth of the economy it must release the funde for the projects and accelrate the execution of the infra projects.
    Reply
    1. S
      subhash mahajan
      Sep 28, 2017 at 3:52 pm
      The Govt has made the GST most complicated and the traders have struck in this . The most advertised concept of the GST being the simple tax is no more .Lot of returns have to be filed and not easy for the lay man to do that. Under Vat act the small businessmen upto the turnover of 10 crores were fliling quarterly returns and paying tax . In states like Himachal and J K the addditional toll tax and the additionalgoods tax is being continued to be levied. The tax barriers in Himachal ,J K , Gujarat and UP are in existence and the way bill for each of the state has to be filed which is against the provisions of the GST Act. The govt should switch over to quarterly returns instead of monthly returns and all the tax barriers should be abolioshed.
      Reply

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