Compounding under sections 76 and 78 faces low uptake due to procedural defects denying cum duty and inflating assessments.
The amendment allows compounding by paying tax and interest within 30 days of an SCN or paying a reduced penalty under sections 76 and 78 even post adjudication, aiming to curb litigation. Uptake is hindered by procedural defects: denial of the Cum duty benefit, routine use of extended limitation periods with penalty proposals, reverse charge demands treated as suppression despite revenue neutrality, and inclusion of amounts already paid, all of which inflate demands. The author calls for CBEC guidance to correct these practices and encourage use of the compounding scheme. (AI Summary)

Notice service requirement: VCES eligibility hinges on actual service of notice rather than mere issuance, ensuring broader access.
VCES eligibility depends on whether a departmental notice was actually served before the cut off date rather than merely issued; "issued" in section 106(1) should be construed contextually as "served" in harmony with prior service provisions. The proviso barring declarations on the "same issue" requires a distinction between undisputed unpaid tax and a bona fide adjudicable issue-mere non payment allegations do not automatically trigger the bar. Given express cross references to earlier service tax provisions, a purposive construction is necessary to effectuate the scheme and avoid needless litigation. (AI Summary)

Post service representation by former officials: call to prohibit appearances before equal or subordinate adjudicators to prevent conflicts.
Senior retired tax officers commonly act as consultants who represent clients in personal hearings before quasi judicial authorities; section 35Q of the Central Excise Act contains no prohibition on such appearances, whereas Bar Council Rule 7 bars retired officers enrolled as advocates from practising before authorities presided by officers equivalent to or lower than their last post. The article proposes inserting a similar restraint into section 35Q and the corresponding customs provision (section 146A) to address conflicts of interest and preserve the appearance of impartiality. (AI Summary)