TaxTMI 
TaxTMI 
Adjudication of Show Cause Notices issued on the basis of CERA/CRA objection
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....es in the Call-Book has been reviewed and found to be larger than the number of audit objections which have been converted into Audit Paragraphs. After due examination, it was felt that there was a need to review the past practices and issue revised consolidated guidelines to provide a clear procedure for the field officers to deal with the CERA / CRA objections. The Tax Administration Reform Commission (TARC) report, representations received form trade and inputs received from field officers also indicated that there was a need to review past instructions to improve the ease of doing business and bring certainty regarding tax liability of an assessee. Accordingly, all past circulars and instructions on the subject are hereby rescinded and following procedure is prescribed for dealing with audit objections raised by CERA / CRA. 2. An audit objection may mature into an Audit Paragraph and become part of Audit Report periodically submitted by the office of CAG to the Parliament. Various stages involved in the life cycle of an audit objection and the timeliness prescribed for replying thereto may be noted and strictly adhered to by the departmental officers. These stage....
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....p;and submission to PAC is expected to be completed within four months of submission of Audit Report. At both the DAP and Audit Para stages, it is essential that field formations concerned give a detailed reply including the present status of the objection to facilitate a meaningful reply by CBEC. Coordination Meetings: 3. One of the reasons for pendency in adjudication of CERA/CRA objection is the lack of mechanism for periodic reconciliation of the status of audit objections. It has, therefore, been decided that a quarterly coordination meeting would be held in each of the Zones by the officers of the revenue department with the officers of CAG to ensure that the list of audit objections, replies given by revenue and final view taken by CERA/CRA can be discussed. Chief Commissioner shall identify a nodal officer, [preferably Additional Commissioner/ Joint Commissioner, CCU] to coordinate and attend such meetings. An audit objection is considered settled when the views of CERA/CRA and revenue converge due to either CERA/CRA dropping the audit objection or revenue admitting the audit objection. Issue of Show Cause Notice: 4.1 &n....
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.... into consideration the audit objection by CERA/CRA, reply of the department as referred above, reply of the party, relevant legal provisions, case laws on the subject and relevant circulars of the Board, if any. It is expected that the factum of SCN being a consequence of CERA/CRA objection, would be incorporated in the brief facts of the case in the adjudication order. 5.4 Where an issue was under audit objection and has been subsequently either judicially settled, by say judgment of Hon'ble Supreme Court or where a circular of the Board has been issued on the subject, further correspondence with the Board on the audit objections, even if they have become DAPs, is not necessary and such cases may be adjudicated on merits taking into consideration the latest judgments and circulars. Past Cases: 6.1 All audit objections relating to Central Excise and Service tax issued prior to 1.3.2014 shall be compared with the pending Action Taken Notes (ATNs), received from the office of CAG, enclosed as Annexure B with the Circular. For Customs, the list shall be separately issued. Show Cause Notices (SCNs) relating to audit objections figuring in the list should not be adju....
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....ases Name of the Ministry No. of Year of Report Finance 12 of 2009-10 Finance 28 of 2011-12 Finance 7 of 2015 Finance 4 of 2015 Finance 4 of 2015 Finance 4 of 2015 Name of the Ministry No. of Year of Report 12 of 2009-10 7 of 2015 7 of 2015 7 of 2015 4 of 2015 4 of 2015 4 of 2015 4 of 2015 4 of 2015 4 of 2015 4 of 2015 4 of 2015 44444444 88 88 22 22 22 2 2.6 1.2 6.3.1 6.3.1 7.3.1 7.4.1.6 Pending With Audit Para No 2.2.1 4 7 7 7 8 8 8 8 7 = 7 8 38 36 = { Chapter II Chapter III Chapter IV 6.4.1 6.2.2 7.4.1.2 7.4.1.4 Chapter II Chapter III Chapter IV Chapter V REB@vanzwN Para Title Incorrect availing of exemption Central Excise duty on Iron and Steel Products and articles thereof Central Excise duty on Petroleum, Oll and Lubricant products Scrutiny of Central Excise returns Irregular availing of Cenvat Credit on ineligible invoices Works Contract Service Non-payment of Service Tax Non-payment of Service Tax Service Tax llability in Insurance Sector Service Tax liability in Port Sec....