Over 450 Tax Cases With­drawn

The Economic Times - - Companies: Pursuit Of Profit - Our Bureau

New Delhi: In a sig­nif­i­cant step to­wards re­duc­ing lit­i­ga­tion over in­di­rect tax, the govern­ment has with­drawn more than 450 cases in high courts and the ap­pel­late tri­bunal.

Based on a new cri­te­ria laid down by the govern­ment, field of­fi­cials of the Cen­tral Board of Ex­cise and Cus­toms (CBEC) filed ap­pli­ca­tions for with­drawal of 980 cases in high courts and 2,174 in the Cus­toms, Ex­cise and Ser­vice Tax Ap­pel­late Tri­bunal (CESTAT).

High courts have al­lowed the with­drawal in 250 cases, while the CESTAT has ac­cepted 202, the fi­nance min­istry said. Chief com­mis­sion­ers or prin­ci­pal com­mis­sion­ers were di­rected to iden­tify the cases that could be with­drawn based on the new rules and higher thresh­old framed by the govern­ment to cut lit­i­ga­tion. Of­fi­cials iden­ti­fied 2,051 and 5,261 cases fit for with­drawal from high court and CESTAT, re­spec­tively. The govern­ment has raised the raised the limit be­low which ap­peals are not to be filed by the de­part­ment in CESTAT and high courts to .₹ 10 lakh and .₹ 15 lakh, re­spec­tively.

It was also de­cided that govern­ment would with­draw all cases in HCs and CESTAT where there was a prece­dent Supreme Court de­ci­sion and against which no re­view was con­tem­plated by the de­part­ment.

In an­other mea­sure, the govern­ment made pre-show­cause con­sul­ta­tion manda­tory in all the cases where duty in­volved is above .₹ 50 lakh.

“The mea­sures on lit­i­ga­tion man­age­ment are wel­come and in line with the rec­om­men­da­tion of TARC (Tax Ad­min­is­tra­tion Re­form Com­mis­sion),” said Bipin Sapra, tax part­ner at EY In­dia.

The Tax of­fi­cials have filed ap­pli­ca­tions to with­draw 980 cases in high courts and 2,174 in CESTAT

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