TMI Blog2017 (9) TMI 432X X X X Extracts X X X X X X X X Extracts X X X X ..... es the functions and powers of the CVC. The Court directs that a copy of the affidavit be filed by the Revenue be served on the counsel for the CVC to examine if the report dated 25th May 2017 of the Superintendent (Vigilance) of the anti-evasion enclosed with it as Annexure A/2 discloses the commission of an offence which may be punishable under the Prevention of Corruption Act, 1988. The Court requests the CVC to place before it, before the next date, a note on what possible regulatory framework can be put in place to strengthen the vigilance system in the Ministries and Departments of government concerned with collection of indirect taxes, with particular reference to excise duty, customs duty and service tax. - W.P.(C) 3070/2017 & C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of property under Section IIDDA of the Central Excise Act, 1944. 2. It is further stated in the said affidavit that an enquiry was held into the entire episode by the Superintendent (Vigilance) of the antievasion wing. A copy of the report dated 25th May 2017 has been enclosed as Annexure- A/2 to the affidavit of the Commissioner. The conclusions therein are as under: 4.1 From the above, it is clear that no show cause notice needs to be issued in case the assessee pays duty on the basis of his own ascertainment or on the basis of ascertainment by Central Excise officers. Accordingly, the cheques were voluntarily tendered by the party. However, the duty payment could have been accepted only electronically as per Rule 8 of Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Digipro Import Export Pvt. Ltd. are being warned to be careful in future in such matters. 4. Today, Mr. Harpreet Singh, learned standing counsel for the Department, submits that Section 11A(1)(b) of the Central Excise Act, 1944 (CE Act) envisages that the person chargeable with duty may, before service of notice under clause (a), pay on the basis of (i) his own ascertainment of such duty; (ii) duty ascertained by the Central Excise Officer, the amount of duty along with interest payable thereon under Section 11 AA. 5. It is suggested that even before they went on the visit in the premises of the Petitioner on 10th March, 2017, the officers had quantified the duty that has to be paid by the Petitioner on the basis of the retur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . There are two observations in the report that give cause for concern. In para 3.0 (4) it is stated: Accepting undated cheques from the assessee was done on his request due to non-availability of funds in the account of the assessee and his assurance that he will arrange the funds in a few days. And again in para 3.3 it is observed that accepting cheques was a gesture by the team to agree to the request of the assessee to enable him to avail the benefits available to a central excise assessee under the provisions of Section 11 A and 11 AC. The cheques were only in the form of an assurance of the intention of the party to pay the duty evaded. The question that had to be asked was whether this conduct of the team was at all acceptable? W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have acted in the best interests of Govt. revenue. The conclusion in para 4.3 that the actions of the officers appear to be best judgment in that particular situation cannot be countenanced considering that their actions have resulted in delaying the potential payment to the government exchequer. The undated cheques remained un-encashed even thereafter. The only person who gained in this exercise, which was ultra vires the CE Act, was the Petitioner. The officers of the antievasion wing are answerable for this. Therefore, the conclusion in para 4.4 that the responsibility of accepting undated cheques from the assessee cannot be fixed on any individual officer since they have acted in the best interest of Govt. revenue being contrary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date, a note on what possible regulatory framework can be put in place to strengthen the vigilance system in the Ministries and Departments of government concerned with collection of indirect taxes, with particular reference to excise duty, customs duty and service tax. For this purpose, the CVC may want to consult the senior officials of the concerned departments including those of the Central Board of Excise and Customs, apart from legal practitioners who have practical knowledge and experience of the working of the Departments. The possibility of putting in place independent audit mechanisms may also be considered. 13. The matter be treated as part heard‟. List the matter for further hearing on 21st July, 2017 at 2.15 pm. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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