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Circular No. 266/100/96-CX
dated  12/11/96
 
 
F.No. 224/4/96-CX.6(Pt.)
 
Government of India
Ministry of Finance
Department of Revenue, New Delhi
 
Subject:    Examination of Paragraph 1.03 sub-para 4 (i to iv) and sub-para 8 (i to iv) by the public Accounts Committee from the report of C. & A.G. of India for the year ended 31st March, 1995 (No. 4 of 1996), Union Government, (Revenue Receipt- Indirect Taxes) relating to pace of finalisation of provisional assessment case and monitoring - Reply to PAC's Questionaire by 22nd October, 1996-Regarding.

        I am directed to refer to query raised by Public Accounts Committee in para 13 of their questionaire, which reads as under :

    13(a)    As reported by audit the number of provisional assessment cases pending finalisation has almost doubled in 30 Commissionerates. during last 3 years (from 7720 in 1992-93 to 14384 in 1994-95). Was the delay in finalisation of provisional assessment ever reviewed at Board/ Ministry level or any study got conducted by the Directorate of inspection or any similar other organisation ? If so, please furnish details.

    (b)    Whether the Ministry has carried out any ARC analysis with reference to the amount involved and if so, what are the results?

    (c)    Whether the Ministry has done any exercise to identify cases on similar issue pending in the same Commissionerate/ different Commissionerate? If so, Commissionerae-wise details of issue involved, their number and present status may be furnished.

2.    The Board has decided that delay in finalisation of provisional assessment should be reviewed by the Commissioners on quarterly basis with reference to number of pendencise and their disposal, issue involved and amount of differential duty in respect of each assessee and submit a consolidated report to the Chief commissioner by 10th of succeeding quarter including the measures taken by them towards finalisation of provisional assessments taking into consideration the stakes involved and the period of pendencies, maximum priority being given to older cases involving large amounts.

3.    As desired by Public Accounts Committee an ABC analysis of provisional assessment should be undertaken and effective follow-up action taken. The Chief Commissioners should examine the said report and advice suitably to the Commissioners wherever remedial measures are required to be taken. The Chief Commissioners will submit the consolidated report in respect of the COmmissionerates falling under their jurisdiction to the DGI by 25th of the succeeding quarter. The DGI should analyse the report and submit the All India prosition to the Member (CX) within 15 dayes from the date of receipt of reports from the Chief Commissioners. To illustrate, the report for the quarter ending December, 1996, the Commissioners shall furnish their reports to their Chief Commissioners by 10th January, 1997, the Chief Commissioners, reports should reach to the DGI by 25th January and the DGI shall report to the M(CX) by 10th February, 1997 and so on.

4.    Before submitting the report the Commissioners should carry out the ABC analysis with reference to differential duty involved where such differential duty is of substantial amount and take effective steps for finalisation of such cases.

5.    Chief Commissioners while submitting the report to the DGI, should also identify cases on similar issues pending in the Commissionerate under their jurisdiction and advice all the Commissiners suitably so that the pendencies including common issues are liquidated within a period of 3 months. Likewise while furnishing the All Indian potion to the Member (CX), DGI should analyse the common issues involved in the Commissionerates falling under the jurisdiction of different Chief Commissioners and advice the Board the steps to be taken for resolving the disputes of common nature.

6.    The aforesaid exercise should be taken immediately for the quarter ending December, 1996 and for every quarter thereafter.

7.    Deputy Secretary/ director (CX.9) shall co-ordinate with the DGI and the Board and take necessary action where required.

Sd/-
(I.P. Lal)
Secretary (CBEC)