Settlement Commission in news…again…with a name change
By TIOL News Service
NEW DELHI, JULY 10, 2014: THE Finance Bill, 2014 reveals many changes (superficial, to an extent) being made to the provisions concerning the Settlement Commission, Customs and Central Excise
After all, it is fifteen years since it commenced its operations on the horizon of Indirect Taxation and with success… moderate, of course!
To begin with, the name-change. It could not have continued to call itself as the Settlement Commission dealing with only Customs & Central Excise matters for it had begun settling Service Tax cases too since 28.05.2012 consequent upon the enactment of the Finance Bill, 2012. Section 83 of the FA, 1994 refers.
So, section 31(g) and section 32(1) are being amended to change the name of the ‘Customs and Central Excise Settlement Commission' to the ‘Customs, Central Excise and Service Tax Settlement Commission'. This amendment is by clause 91 & 92 of the Finance Bill, 2014. Incidentally, CEGAT shed the words “Gold(Control)” and adopted “Service Tax” by the Finance Act, 2003. What about CBE&C?
Next, Section 32E(1) of the CEA, 1944 continued to refer to section 11AB of the CEA, 1944 in the matter of ‘interest on delayed payment of duty' although no such section existed after the new section 11AA came into being by the Finance Act, 2011 [w.e.f 08.04.2011]. This has been set right by substituting the said reference by section 11AA - clause 93 of the Finance Bill, 2014 refers.
Currently, an applicant who had not filed returns showing production, clearance and central excise duty paid in the prescribed manner could not file an application for settlement. To allow such applicants also to opt for settlement, Section 32E(1) is being amended. The Settlement Commission is granted discretion to allow such applicants into the fold after recording reasons therefor.
Section 32E(2) which prevented an assessee from opting for settlement after seizure of his excisable goods, books of account etc. unless a period of 180 days was over from the date of seizure can now breathe easy. This sub-section (2) is being omitted by clause 93 of the Finance Bill, 2014. The TRU letter D.O.F.No. 334/15/2014-TRU dated 10.07.2014 says this amendment was needed because the sub-section (2) had become redundant!
Section 32O of the CEA, 1944 titled 'Bar on subsequent application for settlement in certain cases' is being amended. An explanation is added by clause 94 of the Finance Bill, 2014 to read - “In this clause, the concealment of particulars of duty liability relates to any such concealment made from the Central Excise officer.”
This amendment is necessitated because there were doubts as to whether this “concealment” referred to concealment before the Settlement Commission . Goodness gracious!
Parallel amendments are also made in the Customs Act, 1962 by the clauses 77, 78 & 79 of the Finance Bill, 2014.
With all these amendments to the provisions of Settlement, beginning with the name, hope Settlement Commission comes in the news again and returns to its glorious days!