CE/Customs/Service Tax - New Appeal Provisions - CBEC issues clarifications - Additional 10 percent for second appeal; No recovery during the pendency of appeal

As clearly stated,the Finance bill was presented in july,2014 and lot of discussions/apprehensions on the proposed changes under sec.35F was pouring from all corners.It took time till 15th sept to come out with clarification,still leaving the confusions in tact ,except perhaps regarding the recovery of balance of the confirmed demands.The amendments have been made applicable for appeals to be filed on or after 6th aug,2014.Had this been made clear immediatley after the bill was adopted by both houses of parliament,confusions could have been avoided.Even now,some are filing appeals with stay applns relying on the pre ample attached to the orders.By imposing the new condition effective from 6th aug,2014,even in respect of orders issued,prior to the presentation of the proposed amendmens in the Budget have been subjected to the new scheme.In all fairness, what was wrong if the provisions were made applicable to all appellable orders issued on or after 6th aug,2014.Now the field offices are to issue notices to all the appellants who had filed appeals on or after 6th aug, directing them to make the pre deposit,then process these appeals to be rejected (as per the new circular).So also, the pre ample is to be amended and revised in respect of orders issued after 6th aug,2014.All these unproductive work,could have been avoided,if the neww scheme was made effective for orders issued from 6th aug'2014 on wards.The repeated call for reducing avoidable litigation is being thwarted by the CBEC itself by such actions.Only the poor assessees are made litigants and at the receiving end for all such ordeals.The ambiguity on the extra 10% for scond appeal is only being reiterated by the circular.

Unnikrishnan V 17/09/2014