calculation of interest in case of call book cases

[Guest]

Dear Sirs,

Is there any Board's clarification on charging of interest for the period under call book in cases where department has gone in appeal to Courts which normally takes long time before it is decided. If not, what is the way out for the assessee because in such cases he will have to pay a large sum of money as interest for no fault of his.

[MADAN RAHEJA]

Unfortunatly no instructions/circular appear to be existing on the issue of interest where cases are kept in call book without fault of assessee or where adjudication is comprehensively delayed. Statutory provisions are also silent. I think concerned trade bodies should take up matter with Board.

[KASTURI SETHI]

A novel point (full of substance) is raised by Sh.Jagannath Prasad, Sir. I appreciate his concern about the assessees which is genuine and reasonable and at the same time I support the views of Sh.Madan Raheja, Sir.

categories of cases which can be transferred to the Call Book, namely,

i. Cases in which the department has gone in appeal to the appropriate authority,

ii. Cases where injunction has been issued by Supreme Court/High Court/CEGAT, etc.

iii. Cases where audit objections are contested. (stands rescinded vide Circular No. 1023/11/2016-CX, dated 8-4-2016) [2016 (334) E.L.T. (T46)]

iv. Cases where the board has specifically ordered the same to be kept pending and to be entered into the Call Book.

v. Cases referred to Settlement Commission.

In the cases at serial no.(i) above, the department is responsible for the loss of interest suffered by the Noticee for a considerable period. Have you any concern about the inordinate delay being caused by CESTAT, High Court, Supreme Court ? Department is responsible for one category only whereas CESTAT/High Court/Supreme Court are responsible for all other remaining categories. The inordinate delay being caused by Lower Courts,District Courts, High Courts and Supreme Court pertains not only to monetary matters but also to other civil and criminal cases. Who is responsible for that ? Situation pointed out by Sh.Prasad Sir, can be likened/compared to a person who is under trial and suffer ignominy of prosecution/tainted reputation for a considerable period and ultimately, after consuming a lot of years (which cause tension, stress, anxiety, frustration),that person is declared innocent by the respective Court.

Such loss of reputation, grace and honour suffered by the innocent person cannot be compensated at all and here we are talking about burden of interest due to delay caused by way of entry into call book category.

Is not the whole system faulty ???

[DR.MARIAPPAN GOVINDARAJAN]

A good point raised by Jabannath Prasad. The Board should consider this aspect.

[Ganeshan Kalyani]

Case registered in the year 1993 is still pending for decision. In today's newspaper an article was published where the author has expressed that case from the time of the Maurya dynasty is pending for judgement.

Cases are too many and concerned authority is unable to close the matter for want of proof. Some innocent should not be punished. Therefore there is delay. But how far the delay is justifiable.

AI Summary

Interest liability on delayed call book assessments burdens assessees when prolonged appeals proceed without Board guidance. There is no Board clarification or statutory provision on charging of interest where matters are kept in the call book or delayed by appellate processes; contributors note categories of call book cases and attribute responsibility for delay either to the department (where it appeals) or to appellate courts/tribunals, leaving assessees to bear interest burdens and urging trade bodies and the Board to seek administrative relief or guidance.