Exercise caution while issuing SCNs: CBEC to officials

The Central Board of Excise and Customs has asked its officials to exercise caution while issuing show cause notices (SCNs) to assessees and ensure they are backed by "legal provisions".
In a communication, CBEC has said that "sometimes" notices have been issued that were legally unsustainable.
"Creating such avoidable SCNs not only does become burden on the government revenue, it also impacts the precious time of trade and industry as well as Appellate Authorities/Courts" it said.
The recent instruction to Chief Commissioners of Customs, Central Excise and Service Tax states that SCNs should be issued "after through examination and keeping in mind that grounds given in the SCNs are cogent, sustainable and backed by legal provisions and pronouncements".

The government has been stressing upon the need to provide a non-adversarial tax administration and improve the ease of doing business in the country.
In another communication, CBEC has asked Commissionerates to regularly monitor the cases where the government interest had not been adequately defended and send reports to the Board.

"The Board, if it considers necessary will send a report to the Ministry of Law and Justice," for necessary corrective action, it added.
The Commissionerates have also been asked to maintain updated list of cases pending in various courts.
It further said there "should be no justification" in the ordinary course for the government to seek adjournments.

"Government Counsels should be advised to ensure that adjournments are not sought as a matter of routine. Delay entails its own costs, and it also reflects poorly on the efficiency and ability of the government to respond in time," CBEC said.