VALUATION OF MS & HSD SOLD AMONGST OMCs
The Central Board of Excise and Customs, in the Department of Revenue of the Ministry of Finance, vide Circular No. 913/03/2010-CX dt 03/02/2010 have advised the field formations that in view of the developments that taken place after the decision of the CESTAT, Mumbai Bench vide Final order No. A/220/09/EB/C-II dt 17.6.2009 holding the view that the price as per MOU cannot be considered as “transaction value” under Section 4 and decided the case in favour of the Revenue dept., against which the aggrieved BPCL have reportedly filed an appeal against the said final order before the Supreme Court after obtaining COD [Committee on Disputed, under the Cabinet Secretariat], it has been decided to withdraw the Board’s instructions issued under 14F.NO.6/21/2003-CX-I (Pt) dt .14.2.2007. However, the CBEC has also advised the field formations that as the appeal of BPCL is pending before the Supreme Court, field formations are directed to consign all the pending show cause notices on the issue to the call book pending a final verdict from the Supreme Court. Further, for the cases within the review / appeal period necessary action to file appeal may be taken immediately.
By a careful reading of the over-abundantly cautiously worded circular now issued, it is clear that the CBEC is keen to go back to the square one and wants to leave it to the Apex Court to decide finally.
In this context, it is worth to recapitulate the background under which the Cabinet Secretariat issued the guidelines for settlement of disputes between the Central Govt. departments and the Central Govt. controlled Pubic Sector units in tax related disputes. In fact the Supreme Court directed the Cabinet Secretariat to take steps to evolve a system by which such dispute matters between the Govt. and the PSUs are as far as possible resolved through inter-ministerial meetings / discussions so as to minimise all disputes being rushed to the High Courts and the Apex Court. For nearly two decades, the High Power Committee on Disputes have been doing the best to fulfill the expectations of the Apex Court. When such is the situation, it is a moot point to ponder over as to why the CBEC [Legal cell] have chosen to play safe in such a very vital dispute matter involving crores of revenue at stake. Why not the GROUP OF MINISTERS be approached by both the Finance and Petroleum Ministries to resolve this dispute matter and if need be take the approval of the Parliament through a legislative change on a prospective basis and take a lenient view on past cases ?
Everyone expects that the present day approach of the Ministries of the UPA-II Govt. to adopt a dynamic approach and not to adopt a play-safe technique especially in tax disputes matters of Petroleum sector.
VENKATRAMAN RAGGHUPATHY, Web admin.
