There is a written word of the law
& it needs to be followed in letter & spirit. There are no two ways
about it. However, who is going to bell the cat that is tell the Indian
bureaucracy that the law applies to them & interest needs to be paid. They
give it in RTI reply that interest is due wherever the refund is not made
within 90 days from the date of the filing of the claim. In personal meetings,
right up to the Joint Secretaries agree that interest needs to be paid by the
department. However, the interest is not paid. The demand for interest is made
in writing though it is not necessary but then nothing moves further. Why the government
should bully the beneficiaries in such a manner & prove to be a cheat of
the worst order. What kind of an example is the government setting for the
beneficiaries to follow. Is the written word of the law to be followed or the
jungle rule that might is right & the government is all powerful to get
away with any wrong is the new norm.
This series pertains to the rebate
claims. There are explicit instructions reiterated by the CBEC that interest
needs to be paid on its own accord wherever there is delay in settling any of
the refund claims but then who cares for it. Please see Circular No.
670/61/2002-CX, dated 1-10-2002 issued from F. No. 268/51/2002-CX. 8 of the
CBEC. The same reads as under:
Quote:
2. In this connection, Board
would like to stress that the provisions of section 11BB of Central Excise Act,
1944 are attracted automatically for any refund sanctioned beyond a period of
three months. The jurisdictional Central Excise Officers are not required to
wait for instructions from any superior officers or to look for instructions in
the orders of higher appellate authority for grant of interest. Simultaneously,
Board would like to draw attention to Circular No. 398/31/98-CX, dated 2-6-98
[1998 (100) E.L.T. T16] wherein Board has directed that responsibility should
be fixed for not disposing of the refund/rebate claims within three months from
the date of receipt of application. Accordingly, jurisdictional Commissioners
may devise a suitable monitoring mechanism to ensure timely disposal of refund/rebate
claims. Whereas all necessary action should be taken to ensure that no interest
liability is attracted, should the liability arise, the legal provision for the
payment of interest should be scrupulously followed.
Unquote:
From the contents of the circular it
is crystal clear that interest is due wherever refunds are delayed beyond the
90 days period. The problem of non payment of interest has been taken up right
up to the Chairman of the CBEC but to no avail. What is the use of the CBEC
that even after reiteration of the instructions pertaining to the payment of
interest, there is no implementation of it. Why the CBEC is week kneed in
taking action against the culprits when the problem is brought to their notice.
Does the CBEC think it is below their dignity that the legal provision
pronounced by them is only for showcasing & not for implementation or it is
below their dignity to act upon a complaint filed by an ordinary citizen of
this country that the CBEC circular is not followed which is binding on the
department. If that is not so then why the CBEC fails to discharge the
obligations! Another pertinent to note is that there is concurrent audit as
well as the department & the CAG audit then why these audit authorities do
not raise objections about the delay in settlement of the refund claims &
the payment of applicable interest. Is the audit only aiming at loss to the
government rather than implementation of the legal provisions. Is it not
totally wrong for the audit not to raise voice in respect of such illegalities
& ensure that beneficiaries get their entitlements in time or at the very
least get that measly interest of 6% being allowed in respect of the delays. Due
to the intervention of the Central Vigilance Commissioner & pursuing the
matter relentlessly with the CBEC Chairman, now the information in respect of
the refunds is provided through the websites. Therefore the information is
available to the Commissioners, Chief Commissioners as well as the CBEC that
how much delay is taking place in the disbursements of the legitimate
entitlements of the exporters. Therefore why these officials are not able to
abide by their duty & ensure that wherever the refunds are delayed, the
interest is paid. Is any official of the government concerned or ashamed of
this disgusting state of affairs. The answer is emphatic “NO”. Please carry out
special audit of Maritime Commissioner of C. Ex., Raigad & this will be an
eye opener that what is the ground reality is appalling. There is delay in
sanction of rebates beyond 90 days in thousands of cases but till date no
interest has been paid in spite of raking up the issue with all concerned. Such
irresponsible behavior is unacceptable in the civilized world. Therefore once
again plea is made that sanity should prevail & beneficiaries should be
granted interest in all cases. The Chairman, CBEC should personally ensure that
this is complied with & report the compliance on the website of the CBEC.
This is essential so that beneficiaries don’t suffer at the hands of the field
formations for no fault of theirs.
This is the fifth part of the story. However, the
story of the abuse of authority does not end here. Further lampooning of the
system & abuse by the authorities will follow in the next write up. Till
then Good bye.
rajiv.pec@gmail.com
No comments:
Post a Comment