Immediately needed a CA firm at Bhuj (Gujrat) to outsource concurrent audit of one schedule bank.
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Tuesday, June 28, 2011
Point of Taxation (Second Amendment) Rules, 2011
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
Government of India
Ministry of Finance
(Department of Revenue)
New Delhi, the 27th June, 2011
Notification No. 41/2011 – Service Tax
G.S.R. (E).- In exercise of the powers conferred by clause (a) and clause (hhh) of sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following rules further to amend the Point of Taxation Rules, 2011, namely:-
1. (1) These rules may be called the Point of Taxation (Second Amendment) Rules, 2011.
(2) They shall come into force on the 1st day of July, 2011.
2. In the Point of Taxation Rules, 2011, in Rule 7, in sub-rule (c),-
before the bracket and letter “(p)”, the bracket and letter “(g)” shall be inserted,
[F. No. 334/3/2011-TRU]
(Samar Nanda)
Under Secretary to the Government of India
Note.- The principal rules were notified vide notification no. 18/2011-Service Tax, dated the 1st March, 2011, published in the Gazette of India, Extraordinary vide Number G.S.R. 175(E), dated the 1stMarch, 2011 and last amended vide notification No.25/2011-Service Tax, dated the 31st March, 2011, published on the Gazette of India vide Number G.S.R. 283(E), dated the 31st March, 2011.
USA Accounting firms spend 2.7% of net revenues on marketing
Accounting firms spend 2.7% of net revenues on marketing
Accounting firms devote an average of 2.7% of net revenue to marketing
and sales, according to a report from the Association for Accounting
Marketing. The middle 50% of participants devote 1.7% to 3.3%. The
report also includes salary data for marketing partners, chief
marketing officers, marketing directors, marketing managers, marketing
specialists, marketing coordinators, sales coordinators and business
development managers.
Accounting firms devote an average of 2.7% of net revenue to marketing
and sales, according to a report from the Association for Accounting
Marketing. The middle 50% of participants devote 1.7% to 3.3%. The
report also includes salary data for marketing partners, chief
marketing officers, marketing directors, marketing managers, marketing
specialists, marketing coordinators, sales coordinators and business
development managers.
AIR Related scrutiny assessments should be limited to info in AIR
Please go through the letter from CBDT in this behalf addressed to all the
CCITs and DGITs.
The assessment for AY 2009-10 are now taken up for hearing. Please make use
of this letter to convey to officer that scope of inquiry should be
restricted to matter reported in AIR If he is extending the scope in its
questionnaire they send, you may reply against the same asking for a copy of
AIR info and please ask him to restrict his scope.
I believe before submitting details as per lengthy questionnaire, it would
be advisable to obtain the copy of AIR info and submitt only the relevant
details.
To read that letter click here:https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0Bz0INWeiJAEQNWExNmY3YzYtZDExMi00YmQxLTk4M2MtMzY5NWYyMzEwNjFk&hl=en_US
A zerox copy of CA’s certificate in place of original tax challan is not sufficient to prove that payment was deposited for claiming deduction under s 43B
Deduction under s 43B
A zerox copy of CA’s certificate in place of original tax challan is not sufficient to prove that payment was deposited for claiming deduction under s 43B — as held by DelTrib in Siel Ltd v Dy CIT — In favour of: The Revenue ; ITA No. 3367/Del/2002 : Assessment Year: 1998–1999
SIEL LTD v Dy. CIT1
ITAT BENCH 'E' NEW DELHI
ITA No. 3367/Del/2002
Assessment Year: 1998-99
Rajpal Yadav, JM and Shamim Yahya, AM
Decided on: 20 May 2011
Counsel appeared:
Sh. Tarandeep Singh, CA for the appellant
Srujani Mohanty, Sr. D.R. for the respondent
Order
Per: Shamim Yahya, AM:
These appeals by the assessee are directed against the order of the Ld. Commissioner of Income
Tax (Appeals) for assessment year 1998-99. Since the appeals were heard together and they are
being consolidated and disposed of by this common order for the sake of convenience.
ITA No. ITA 4518
2. The issue raised is that Ld. Commissioner of Income Tax (Appeals) erred in upholding the
disallowance of Rs. 18,49,950/- being amount claimed by the assessee u/s 43B of the IT Act.
3. In this case Assessing Officer had made a total addition on this issue of Rs. 1,18,49,950/-
forming part of claim of Rs. 2,22,34,324/- u/s 43B vide his order dated 25.1.2001.
4. The Ld. Commissioner of Income Tax (Appeals) in her order has sustained the addition of Rs.
1,00,000,000/- but she was silent regarding the balance amount of Rs. 18,49,950/-. The matter
travelled to the ITAT and the ITAT vide its order dated 28.10.2003 restored the matter to the files
of the Ld. Commissioner of Income Tax (Appeals) only relating to Rs. 18,49,950/-. Accordingly,
the issue was considered by the Ld. Commissioner of Income Tax (Appeals) in the impugned
order. Ld. Commissioner of Income Tax (Appeals) held that whether this amount of Rs.
18,49,950/- is allowable expenditure or not is essentially a question of fact. The decision
regarding this has to be arrived at from the material which is available on record or from such
document as asked for. Ld. Commissioner of Income Tax (Appeals) further noted that before him
1
Mawana Sugars Ltd v Dy. CIT
ITA No. 4518/DEL/2009
Assessment Year: 1998-99
the assessee has produced only the evidence which is zerox copy certified issued by the CA. The
assessee was asked to establish the facts from the records and from the bank accounts, but the
same was never produced. Assessee contended before the Ld. Commissioner of Income Tax
(Appeals) that certificate of CA is sufficient for allowing such deduction. When the factual
evidence was again called for, it was stated that the details were related to 10 years old bank
record and the same is not readily available. Ld. Commissioner of Income Tax (Appeals) noted
that assessee has failed to establish the evidence of such payments before the Assessing Officer at
the assessment stage and also before him. hence, he sustained the disallowance of Rs. 18,49,950/-
5. Against this order the assessee is in appeal before us.
6. We have heard the rival contentions and perused the records. We find that Ld. Commissioner
of Income Tax (Appeals) has stated that assessee has failed to produce necessary documents and
stated that the details were 10 years old. The assessee has only submitted a certificate from CA to
support his case. In this regard, ld. counsel of the assessee has placed reliance upon CBDT
Circular No. 601 dated 4.6.1991 reported in 190 ITR 4 (St.). This reference was made by the ld.
counsel of the assessee in support of the claim that for the purpose of section 43B in case there is
difficulty in enclosing necessary challan etc. evidencing payment, a Certificate from a CA, as
defined in the Explanation to section 288 of the Act would be sufficient.
6.1 However, we note that in this Circular in para 8 thereof it has clearly mentioned that the same
will be sufficient for the purpose of making prima facie adjustments under section 143(1)(a).
Further evidence can be called for in cases selected for scrutiny & 143(3) assessment.
Admittedly, we are not concerned with adjustment u/s 143(1)(a). Hence, this Circular does not
support the case of the assessee. Hence, we are of the considered opinion that assessee has failed
to submit the necessary evidence in this regard.
6.2 Furthermore, in this regard the ld. counsel of the assessee has also placed reliance upon the
decision of the Hon’ble Jurisdictional High Court in the case of ACIT v. Jay Engineering Works
Ltd. 114 ITR 289. In this case it was held that “where the original books of the assessee had been
destroyed in a fire it was held that the Appellate Tribunal, in allowing a deduction, could rely
upon other material mainly consisting of the auditor’s reports from which it could be inferred that
the deductions were properly supported by the relevant entries in the accounts books.�
In this background, the Hon’ble High Court did not interfere in the order of the tribunal. In our
considered opinion, this case law is not at all applicable in the present case. It is not the case that
books of account and other material were lost in fire. Here assessee has simply stated that the
evidence called for in this regard is 10 years old. Hence, the same was not available. In this
background, we do not find any infirmity or illegality in the order of the Ld. Commissioner of
Income Tax (Appeals) and accordingly, we uphold the same.
7. In the result, the appeal filed by the assessee is dismissed.
ITA No. 3367
8. In this case the appeal was earlier heard by the tribunal and necessary order was passed on
28.10.2003. Thereafter, misc. application was filed before the tribunal in MA no. 500/Del/2007.
In the misc. application, it was pleaded that the ground relating to deduction of Rs. 1 crore in
respect of Excise Duty paid has been omitted to be considered. The tribunal in misc. application
has accepted that tribunal had omitted to consider the deduction of Rs. 1 crore which was raised
in ground no. 2. It was noted that the tribunal had given a finding only in respect of ground no.
2.1 which is also deduction under section 43B. Accordingly, the order was partially recalled to
decide the ground no. 2 raised in the appeal. The said ground no. 2 reads as under:-
“That the Ld. Commissioner of Income Tax (Appeals) erred in not accepting the deduction u/s
43B in respect of sum of Rs. 1 crore paid by way of Excise Duty during the previous year relevant
to assessment year under consideration, which was disallowed by the Assessing Officer.�
9. In this regard, upon a perusal of note 5(3) to notes on accounts it was observed that assessee
company has given Indemnity on account of Siel Corporation Ltd. which is known as Tecumseh
Product India Ltd. (TPIL) which was formerly a unit of assessee company and presently renamed
as Techmseh Products India Ltd. was transferred to another company as going concern as on
1.4.96 and, on such transfer the assessee had shown capital gain/loss during the assessment year
1997-98. The Assessing Officer observed that a sum of Rs. 1 crore paid by way of excise duty
pertaining to the pending cases relating prior to 31st March, 1997, was a liability on account of
capital assets which stands transferred. According to the Assessing Officer this expenditure was
on capital account and cannot be allowed as revenue account. Before the Ld. Commissioner of
Income Tax (Appeals) it was submitted that the amount of Rs. 1 crore was part of the total excise
duty paid on 1,04,87,404/-. Moreover, this amount was not debited to the P&L account and
therefore, while computing the total income the question of adding it back does not arise,
notwithstanding whatever may be the finding about the nature of this payment. Considering the
above Ld. Commissioner of Income Tax (Appeals) referred to the relevant provision of section
43B and noted that the payment of Rs. 1 crore has been made to the TPIL for depositing the same
with the excise authorities. Ld. Commissioner of Income Tax (Appeals) further held that he has
perused the records and assessment order of the company and he found that the payment is indeed
of capital nature because whenever change in hand of business takes place, it is transferred with
all its assets as well as liabilities. The outstanding payment of excise duty was a liability of the
company know as TPIL and, therefore, it should form a part of the capital loss/gain of the
company to which it has been transferred, hence the order of the Assessing Officer on these
issues as above is upheld. It was further observed that in any case the observation of the
Assessing Officer that it is of capital nature, it is also to be seen, that the liability is not of the
assessee but of the earlier company TPIL. Therefore, it cannot be allowed in the hands of the
assessee. Further the contention of the assessee that it has not been debited to P&L account
cannot be accepted because ultimately it has been deducted in the calculation on income.
10. Against the above order the assessee is in appeal before us.
11. We have heard the rival contentions in light of the material produced and precedent relied
upon. The said note 5(e) referred above reads as under:-
“Indemnity given by the Company to a party to whom investment in 1,00,00,00/- equity shares of
Rs. 10 each fully paid up of Siel Compressors Limited, presently renamed as Tecemseh Products
India Limited (TPIL) has been disposed off for any loss, damage, claim, action, suit etc. arising
from various representations/ breach of representations including for contingent liabilities
existing as at March 31, 1997 or prior to March, 31, 1997, which Siel Compressors Limited may
eventually be liable to pay. The company has provided a bank guarantee for an amount of Rs.
12600.00 lacs. The company has received a claim for Rs. 311.11 lacs towards excise duty
demand pertaining to pending cases relating prior to March 31, 1997 from TPIL. Against this
claim, the company has reimbursed Rs. 100 lacs to TPIL for depositing with excise authorities
and has included the same under the head ‘Advance recoverable in cash or in kind or for value to
be received in ‘Schedule’ as TPIL has preferred an appeal in the Supreme Court against the said
excise order.�
12. From the above it is evident that the impugned liability of Rs. 1 crore was on account of
capital asset which stands transferred and therefore, it has been rightly held by the authorities
below that Rs. 1 crore paid for TPIL statutory liabilities does not represent the business
expenditure of the assessee company. Moreover, it is also rightly held that it is in the nature of the
capital expenditure as it has its origin in relation to a capital assets which is no longer an asset of
the business and, therefore, not an allowable deduction while computing the taxable income.
13. Accordingly, in the background of the aforesaid discussion, we do not find any infirmity in
the order of the Ld. Commissioner of Income Tax (Appeals) holding that a sum of Rs. 1 crore
was not allowable, as it was in the nature of capital account. This was so because business had
already changed hands and when the business changes hand the assets as well as liabilities are
transferred. Therefore, outstanding payment of excise duty was liability of the company known as
TPIL, and, therefore, it should form a part of the capital loss/gain of the company to which it has
been transferred. Accordingly, we uphold the orders of the authorities below and decide the issue
in favour of the Revenue.
14. In the result, both the appeals filed by the assessee stand dismissed.
The claim of interest simpliciter is not appeallable order before the CIT(A)
Appealable orders before Commissioner (A)
The claim of interest simpliciter is not appeallable order before the CIT(A) as per s 246A — as held by AhdTrib in Shantaben Karshanbhai Patel v Dy CIT — In favour of: The Revenue ; ITA No. 371/Ahd/2009 : Assessment Year: 2001–2002
Decided on: 31 December 2010
Shantaben Karshanbhai Patel v Dy. CIT
ITAT BENCH 'B' AHMEDABAD
ITA No. 371/Ahd/2009
Assessment Year: 2001-2002
G D Agarwal, VP and Bhavnesh Saini, JM
Decided on: 31 December 2010
Counsel appeared:
Shri S N Soparkar with Shri Himanshu Shah, ARs for the appellant
Shri Robin Rawal, Sr. DR
Order
Per: Bhavnesh Saini, JM:
This appeal by the assessee is directed against the order of the CIT(A)-XVI, Ahmedabad dated
18th November, 2008 for assessment year 2001-02, challenging the order of the learned CIT(A)
holding that the appeal of the assessee was not maintainable for granting interest u/s 244A of the
IT Act.
2. Briefly, the facts of the case are that the AO passed order u/s 154 of the IT Act. The AO noted
that credit of 16 challans was not given to the assessee because the assessee had misquoted the
Permanent Account Number. Permanent Account Number of Hiren K. Patel was quoted instead
of the assessee; therefore credit of these challans went in the computerized ledger of Hiren K
Patel. Due to this mistake, this credit could not be given in the case of the assessee. The assessee
filed grievance petition. Therefore, a meeting was held between the CITs and Additional CITs in
the chamber of CCIT-II and CCIT-III and minutes of meeting was passed on 18-02-2006 on the
above issue of giving credit of taxes paid by the assessee. The decision is quoted in the impugned
order. According to the decision in the meeting of the CCITs and the minutes thereof the assessee
was directed to furnish indemnity bond and Shri Hiren K. Patel was asked to file disclaimer.
Accordingly, credit was given for these 16 challans. The assessee had quoted wrong Permanent
Account Number in the challans and refund cannot be given on account of assessee’s fault, no
interest was allowable to the assessee as per section 244A (2) of the IT Act. The AO accordingly,
issued demand notice and refund challans etc. The order u/s 154 of the IT Act was challenged
before the learned CIT(A). The submissions of the assessee have been recorded in the impugned
order. The learned CIT(A) noted that there is specific mention in the provisions where any
question arises as to the period to be excluded, it shall be decided by the CCIT whose decision
will be final. However, the AO was directed to verify the claim of the assessee that in one of the
chalans, the Permanent Account Number of the assessee was correctly mentioned and it was
accordingly directed to pay interest u/s 244A of the IT Act up to the date of issue of refund.
However, as regards disputed challans, since action u/s 244A of the IT Act is not appeallable on
this point and that only authority to decide the issue is the CCIT whose decision will be final, he
accordingly dismissed the appeal on this ground, the ground being not maintainable.
3. On consideration of the rival submissions, we do not find it to be a fit case for interference. The
learned Counsel for the assessee initially submitted that once the AO passed the order u/s 154 of
the IT Act, such an order would be appeallable before the learned CIT(A). Ultimately, the learned
Counsel for the assessee submitted that the learned CCIT/CIT concerned may be directed to redecide
the issue in accordance with law. The learned DR relied upon the orders of the authorities
below and submitted that the appeal of the assessee is not maintainable; however, the matter can
be remanded to the concern CCIT/CIT for doing the needful in accordance with law. We agree
with the submissions of the parties that the matter shall have to be decided only by the learned
CCIT or CIT concerned according to section 244A (2) of the Act. Section 244A of the IT Act
reads as under:
“244A. (1) [Where refund of any amount becomes due to the assessee under this Act], he shall,
subject to the provisions of this section, be entitled to receive, in addition to the said amount,
simple interest thereon calculated in the following manner, namely :—
(a) where the refund is out of any tax [paid under section 115WJ or] [collected at source under
section 206C or] paid by way of advance tax or treated as paid under section 199, during the
financial year immediately preceding the assessment year, such interest shall be calculated at the
rate of [one-half per cent] for every month or part of a month comprised in the period from the
1st day of April of the assessment year to the date on which the refund is granted:
Provided that no interest shall be payable if the amount of refund is less than ten per cent of the
tax as determined [under] ]sub-section (1) of section 115WE or] sub-section (1) of section 143
or] on regular assessment;
(b) in any other case, such interest shall be calculated at the rate of [one-half per cent] for every
month or part of a month comprised in the period or periods from the date or, as the case may be,
dates of payment of the tax or penalty to the date on which the refund is granted.
Explanation.-For the purposes of this clause, “date of payment of tax or penalty� means the date
on and from which the amount of tax or penalty specified in the notice of demand issued under
section 156 is paid in excess of such demand.
(2) If the proceedings resulting in the refund are delayed for reasons attributable to the assessee,
whether wholly or in part, the period of the delay so attributable to him shall be excluded from
the period for which interest is payable, and where any question arises as to the period to be
excluded, it shall be decided by the Chief Commissioner or Commissioner whose decision thereon
shall be final.
(3) Where, as a result of an order under [sub-section (3) of section 115WE or section 115WF or
section 115WG or] [sub-section (3) of section 143 or section 144 or] section 147 or section 154
or section 155 or section 250 or section 254 or section 260 or section 262 or section 263 or
section 264 or an order of the Settlement Commission under sub-section (4) of section 245D, the
amount on which interest was payable under sub-section (1) has been increased or reduced, as
the case may be, the interest shall be increased or reduced accordingly, and in a case where the
interest is reduced, the Assessing Officer shall serve on the assessee a notice of demand in the
prescribed form specifying the amount of the excess interest paid and requiring him to pay such
amount; and such notice of demand shall be deemed to be a notice under section 156 and the
provisions of this Act shall apply accordingly.
(4) The provisions of this section shall apply in respect of assessments for the assessment year
commencing on the 1st day of April, 1989, and subsequent assessment years :]
[Provided that in respect of assessment of fringe benefits, the provisions of this sub-section shall
have effect as if for the figures “1989�, the figures “2006� had been substituted.]�
Merely because the AO passed the order u/s 154 of the IT Act would not make it appeallable
before the learned CIT(A) u/s 246A of the IT Act. The claim of interest simpliciter is not
appeallable order before the learned CIT(A) as per section 246A of the IT Act. The crux of the
matter shall have be seen in entirety and quoting wrong provisions of law would make it
appeallable order before the learned CIT(A). The provisions of section 244A (2) are specific and
on such a matter on issue the point shall have to be decided by the CCIT or CIT whose decision
thereof shall be final. Accordingly, we are of the view that appeal of the assessee is not
maintainable in the present form. The same is dismissed. However, the assessee is at liberty to
agitate the issue before the concerned CCIT/CIT in accordance with law. The learned CCIT or
CIT concerned shall decide the issue on such agitation by the assessee in accordance with law.
4. With his observation, the appeal of the assessee is dismissed.
UK Bribery Act: How Will It Impact India Inc
The Bribery Act 2010 is due to come into force on July 1, 2011. Therefore, any Indian commercial organisation, which has a demonstrable business presence in the UK, should be taking steps now to review or implement anti-bribery procedures and policies.
Under the Act, the failure by a commercial organisation to prevent its employees, agents or subsidiaries from engaging in bribery can lead to an unlimited fine and, in some circumstances, personal criminal liability for directors and employees, who on conviction may be imprisoned for a period of up to 10 years.
Indian companies frequently invest in the USA or the UK, making them directly subject to this legislation. Some Indian companies were concerned when the US Foreign Corrupt Practices Act (FCPA) came into force because of their significant business dealings with US customers, clients and business associates. The broader scope of the Act will now put additional pressure on them to implement adequate compliance measures.
The Indian anti-corruption legislation, the Prevention of Corruption Act 1988, prescribes penalties ranging from imprisonment for up to five years to an unlimited fine. However, fines imposed for criminal offences in India have seldom served as a deterrent on account of their quantum. Although, the anti-bribery legislation in India has been on the statute books since 1988, successful prosecutions resulting in imprisonment are more the exception than the rule. Thus, with the Act in the UK due to come into force, Indian companies, particularly those with cross-border ambitions, will need to gear their strategy carefully to stay clear of this overarching anti-bribery framework.
The UK Ministry of Justice has already published a guidance paper based on six general principles to help organisations implement ‘adequate procedures’ to prevent bribery.
Below, we set out some of the salient features that Indian companies with a business presence in the UK, either directly or through commercial relationships with UK organisations, will need to consider – prior to the Act coming into force.
Proportionate Procedures
This is seen as the foundation of the guiding principles. The action a business needs to take should be proportionate to the risks which that business faces and to the size of the business. Adequate bribery prevention procedures ought to be proportionate to the bribery risks that the organisation faces. There is an acknowledgement that what may be appropriate for a large multi-national organisation will not necessarily work for a small or medium-sized enterprise. An initial assessment of risk across the organisation is, therefore, a necessary first step. The procedures may be stand-alone or form part of a wider guidance – for example, managing a tender process in public procurement.
Top-Level Commitment
This principle is about creating a zero-tolerance bribery culture throughout an organisation. The guidance recommends having a public statement of commitment to counter bribery in all parts of an organisation’s operation and to appoint a senior manager to oversee the development of the anti-bribery programme. Senior officers should be personally involved in developing and implementing bribery prevention procedures. It would be worthwhile for an Indian company with a UK interface to integrate such anti-bribery mechanisms within its corporate governance initiatives, which are either voluntary or statutorily mandated under listing rules etc.
Risk Assessment
Risk assessment is obviously a key element in ascertaining what steps a business should take. The guidance acknowledges that risks constantly evolve over time and, therefore, an organisation’s risk assessment policy must also evolve. What will constitute adequate risk assessment procedures will vary depending on the size of the company, its activities, its customers and the markets in which it operates. An organisation should identify key bribery risks relevant to its business and sector. Relevant ‘bribery risks’ include deficiencies in employee knowledge, training or skills; a lack of clarity in the organisation’s policy on gifts, entertaining and travel expenses; tender processes; licences and permits; high-value projects with many contractors and involvement of intermediaries or agents.
Due Diligence
The commercial organisation needs to have due diligence policies and procedures in place to cover all parties to a business relationship – for example, undertaking background checks on the individuals and/or organisations with whom the company does business (or plans to do business). Such steps will obviously help manage the risks of bribery. The level of due diligence required is, once again, dependent on the level of risk of the situation.
Communication
The guidance stresses that the policies and procedures introduced to prevent bribery being committed should be embedded and understood throughout the organisation through internal and external communication, including training. As with other principles, the guidance contemplates that this should be done in a way which is proportionate to the risks which the organisation faces. Training should be continuous and regularly monitored and evaluated.
Monitoring & Review
The guidance suggests that organisations should consider what internal monitoring and review mechanisms are required in order to ensure policies are effective. Monitoring should include internal checks and balances, as well as effective financial and auditing controls to pick up any irregularities.
Adequate Procedures: Compliance Tips
Organisations in India with a UK interface need to be aware of the impact of the Bribery Act from both compliance and competitiveness viewpoints and should be taking steps to review existing bribery prevention policies and procedures to determine whether they have adequate procedures in place. From the six principles outlined above, the following tips can be considered:
• Implement a ‘zero-tolerance’ bribery prevention policy which is communicated to staff on induction and regularly as part of training sessions.
• Designate a responsible person to oversee bribery prevention matters.
• Ensure that monitoring systems are in place at all levels, adopting a clear policy on gifts, expenses and corporate hospitality, keeping records of gifts and centrally monitoring payments.
• Ensure that senior officers take responsibility for the bribery prevention programme.
• Carry out sufficient due diligence on any potential business partners and agents used to identify the possible risk of bribery.
• Include anti-bribery terms in contracts entered into between the organisation and its business partners, particularly where agents are being used.
• Include express contractual obligations and penalties in relation to bribery and corruption in employment contracts and put in place appropriate disciplinary procedures.
• Develop and implement ‘whistle-blowing’ and reporting investigation procedures.
Conclusion
Under the Act, Indian companies with a demonstrable corporate presence in the UK which are unable to demonstrate that they have implemented ‘adequate procedures’ to prevent corrupt practices within their organisations or through third parties on their behalf, can be exposed to unlimited fines, as well as other collateral consequences, such as long-term imprisonment for their directors. Further, Indian companies, which seek to be competitive from a business perspective with UK companies, will also need to demonstrate compliance on the Bribery Act front.
Increased vigilance by international enforcement agencies, such as the Serious Fraud Office in the UK and the US Department of Justice, has increased the chance of detection of bribery and successful prosecution. Therefore, undertaking a thorough review of the anti-bribery procedures in place before embarking on a business venture in the UK will reduce several ‘pain points’ in the growth trajectory in the UK.
(Saionton Basu is the Co-Head, India Group, Penningtons Solicitors and Tom Clark is Solicitor, Penningtons Solicitors LLP. Penningtons Solicitors LLP is a top 100 UK law firm with offices in the City of London, Hampshire and Surrey).
Source:http://www.vccircle.com/500/news/uk-bribery-act-how-will-it-impact-india-inc
Under the Act, the failure by a commercial organisation to prevent its employees, agents or subsidiaries from engaging in bribery can lead to an unlimited fine and, in some circumstances, personal criminal liability for directors and employees, who on conviction may be imprisoned for a period of up to 10 years.
Indian companies frequently invest in the USA or the UK, making them directly subject to this legislation. Some Indian companies were concerned when the US Foreign Corrupt Practices Act (FCPA) came into force because of their significant business dealings with US customers, clients and business associates. The broader scope of the Act will now put additional pressure on them to implement adequate compliance measures.
The Indian anti-corruption legislation, the Prevention of Corruption Act 1988, prescribes penalties ranging from imprisonment for up to five years to an unlimited fine. However, fines imposed for criminal offences in India have seldom served as a deterrent on account of their quantum. Although, the anti-bribery legislation in India has been on the statute books since 1988, successful prosecutions resulting in imprisonment are more the exception than the rule. Thus, with the Act in the UK due to come into force, Indian companies, particularly those with cross-border ambitions, will need to gear their strategy carefully to stay clear of this overarching anti-bribery framework.
The UK Ministry of Justice has already published a guidance paper based on six general principles to help organisations implement ‘adequate procedures’ to prevent bribery.
Below, we set out some of the salient features that Indian companies with a business presence in the UK, either directly or through commercial relationships with UK organisations, will need to consider – prior to the Act coming into force.
Proportionate Procedures
This is seen as the foundation of the guiding principles. The action a business needs to take should be proportionate to the risks which that business faces and to the size of the business. Adequate bribery prevention procedures ought to be proportionate to the bribery risks that the organisation faces. There is an acknowledgement that what may be appropriate for a large multi-national organisation will not necessarily work for a small or medium-sized enterprise. An initial assessment of risk across the organisation is, therefore, a necessary first step. The procedures may be stand-alone or form part of a wider guidance – for example, managing a tender process in public procurement.
Top-Level Commitment
This principle is about creating a zero-tolerance bribery culture throughout an organisation. The guidance recommends having a public statement of commitment to counter bribery in all parts of an organisation’s operation and to appoint a senior manager to oversee the development of the anti-bribery programme. Senior officers should be personally involved in developing and implementing bribery prevention procedures. It would be worthwhile for an Indian company with a UK interface to integrate such anti-bribery mechanisms within its corporate governance initiatives, which are either voluntary or statutorily mandated under listing rules etc.
Risk Assessment
Risk assessment is obviously a key element in ascertaining what steps a business should take. The guidance acknowledges that risks constantly evolve over time and, therefore, an organisation’s risk assessment policy must also evolve. What will constitute adequate risk assessment procedures will vary depending on the size of the company, its activities, its customers and the markets in which it operates. An organisation should identify key bribery risks relevant to its business and sector. Relevant ‘bribery risks’ include deficiencies in employee knowledge, training or skills; a lack of clarity in the organisation’s policy on gifts, entertaining and travel expenses; tender processes; licences and permits; high-value projects with many contractors and involvement of intermediaries or agents.
Due Diligence
The commercial organisation needs to have due diligence policies and procedures in place to cover all parties to a business relationship – for example, undertaking background checks on the individuals and/or organisations with whom the company does business (or plans to do business). Such steps will obviously help manage the risks of bribery. The level of due diligence required is, once again, dependent on the level of risk of the situation.
Communication
The guidance stresses that the policies and procedures introduced to prevent bribery being committed should be embedded and understood throughout the organisation through internal and external communication, including training. As with other principles, the guidance contemplates that this should be done in a way which is proportionate to the risks which the organisation faces. Training should be continuous and regularly monitored and evaluated.
Monitoring & Review
The guidance suggests that organisations should consider what internal monitoring and review mechanisms are required in order to ensure policies are effective. Monitoring should include internal checks and balances, as well as effective financial and auditing controls to pick up any irregularities.
Adequate Procedures: Compliance Tips
Organisations in India with a UK interface need to be aware of the impact of the Bribery Act from both compliance and competitiveness viewpoints and should be taking steps to review existing bribery prevention policies and procedures to determine whether they have adequate procedures in place. From the six principles outlined above, the following tips can be considered:
• Implement a ‘zero-tolerance’ bribery prevention policy which is communicated to staff on induction and regularly as part of training sessions.
• Designate a responsible person to oversee bribery prevention matters.
• Ensure that monitoring systems are in place at all levels, adopting a clear policy on gifts, expenses and corporate hospitality, keeping records of gifts and centrally monitoring payments.
• Ensure that senior officers take responsibility for the bribery prevention programme.
• Carry out sufficient due diligence on any potential business partners and agents used to identify the possible risk of bribery.
• Include anti-bribery terms in contracts entered into between the organisation and its business partners, particularly where agents are being used.
• Include express contractual obligations and penalties in relation to bribery and corruption in employment contracts and put in place appropriate disciplinary procedures.
• Develop and implement ‘whistle-blowing’ and reporting investigation procedures.
Conclusion
Under the Act, Indian companies with a demonstrable corporate presence in the UK which are unable to demonstrate that they have implemented ‘adequate procedures’ to prevent corrupt practices within their organisations or through third parties on their behalf, can be exposed to unlimited fines, as well as other collateral consequences, such as long-term imprisonment for their directors. Further, Indian companies, which seek to be competitive from a business perspective with UK companies, will also need to demonstrate compliance on the Bribery Act front.
Increased vigilance by international enforcement agencies, such as the Serious Fraud Office in the UK and the US Department of Justice, has increased the chance of detection of bribery and successful prosecution. Therefore, undertaking a thorough review of the anti-bribery procedures in place before embarking on a business venture in the UK will reduce several ‘pain points’ in the growth trajectory in the UK.
(Saionton Basu is the Co-Head, India Group, Penningtons Solicitors and Tom Clark is Solicitor, Penningtons Solicitors LLP. Penningtons Solicitors LLP is a top 100 UK law firm with offices in the City of London, Hampshire and Surrey).
Source:http://www.vccircle.com/500/news/uk-bribery-act-how-will-it-impact-india-inc
Sunday, June 26, 2011
CA Final Examination : Annocument
IMPORTANT ANNOUNCEMENT
BoS/Announcement/227/11
June 23, 2011
Sub: Exclusion of certain topics in the CA Final Examination to be held in November,
2011 and thereafter
-------
On a review of the syllabus for the Final Course, the Council has decided to exclude the
following topics from the Final Examination to be held in November, 2011 and thereafter:-
Paper 1 Financial Reporting
- Inflation Accounting
Paper 5 Advanced Management Accounting
- Time Series Analysis; and
- Test of Hypothesis.
Students are advised to note the change.
Director, Board of Studies
Source : -ICAI
Bihar State Sports Authority Last Date : 05/07/2011 Appointment of Chartered Accountant Firms for Audit Works.
Bihar State Sports Authority
Last Date : 05/07/2011
Appointment of Chartered Accountant Firms for Audit Works.
Address: Bihar State Sports Authority Moin-ul-Haq Stadium, Rajendra
Nagar, Patna- 800016 Bihar - India
Phone: 0612-2660212/ 2665513/ 2665510
web link
http://pdicai.org/docs/tendBSSA5072011.gif
Last Date : 05/07/2011
Appointment of Chartered Accountant Firms for Audit Works.
Address: Bihar State Sports Authority Moin-ul-Haq Stadium, Rajendra
Nagar, Patna- 800016 Bihar - India
Phone: 0612-2660212/ 2665513/ 2665510
web link
http://pdicai.org/docs/tendBSSA5072011.gif
Expression of Interest for Chartered Accountant Firms to Conduct Audit of Annual Accounts for FY 2011-12.
Watershed Management Directorate
Last Date : 15/07/2011
Expression of Interest for Chartered Accountant Firms to Conduct Audit
of Annual Accounts for FY 2011-12.
Address: Watershed Management Directorate Indira Nagar Forest Colony,
Dehradun (Uttarakhand), 248006 - India
Phone: 0135-2760362, 2768712
Email: uttarakhandslna@gmail.com & wmd-ua@nic.in
web link
http://www.iwmp-uttarakhand.in/documents/recent_updates/EOI.pdf
Last Date : 15/07/2011
Expression of Interest for Chartered Accountant Firms to Conduct Audit
of Annual Accounts for FY 2011-12.
Address: Watershed Management Directorate Indira Nagar Forest Colony,
Dehradun (Uttarakhand), 248006 - India
Phone: 0135-2760362, 2768712
Email: uttarakhandslna@gmail.com & wmd-ua@nic.in
web link
http://www.iwmp-uttarakhand.in/documents/recent_updates/EOI.pdf
Now file Income tax returns from your mobile phone
Online income tax return filing company TaxSpanner today announced launch of mobile version of its solution that would enable users to file income tax returns (ITR) from their handset.
After introducing the eFile by eMail option where customers need to just send us an email with a few details, e-filing of taxes through mobile is the next obvious step for the company, Ankur Sharma, CEO, TaxSpanner said in a statement.
Our new mobile site will make it easy for the taxpayer to file his ITR using the mobile phone, he added.
This new solution from the company will offer taxpayers service to file ITR through their mobile phones from the first week of July, 2011.
TaxSpanner has developed eFile by mobile solution using open source technologies namely Linux, apache, postgres, python, django which it has used for the service from its website.
To access the service, a mobile user will have to visit TaxSpanner site on his handset from the browser present on the device. After this he will be automatically directed to eFile by eMail application page of the TaxSpanner mobile site.
The user is not required to be registered for this. Only he will need to fill up a form with some personal details and upload Form 16 on the same page. Thereafter, the ITR will be filled and generated automatically, the statement said.
After introducing the eFile by eMail option where customers need to just send us an email with a few details, e-filing of taxes through mobile is the next obvious step for the company, Ankur Sharma, CEO, TaxSpanner said in a statement.
Our new mobile site will make it easy for the taxpayer to file his ITR using the mobile phone, he added.
This new solution from the company will offer taxpayers service to file ITR through their mobile phones from the first week of July, 2011.
TaxSpanner has developed eFile by mobile solution using open source technologies namely Linux, apache, postgres, python, django which it has used for the service from its website.
To access the service, a mobile user will have to visit TaxSpanner site on his handset from the browser present on the device. After this he will be automatically directed to eFile by eMail application page of the TaxSpanner mobile site.
The user is not required to be registered for this. Only he will need to fill up a form with some personal details and upload Form 16 on the same page. Thereafter, the ITR will be filled and generated automatically, the statement said.
13th Residential Refresher Course at Khurpatal (UK)
LUCKNOW CHARTERED ACCOUNTANTS’ SOCIETY90- Pirpur Square, Lucknow 226001 Tel \ Fax. (0522) 2287931, 2288287 | |||
| President CA.Shekhar Bhargava (M) 9839016751 | Vice President CA.Shashank Mishra (M) 9415105054 | Secretary CA.Piyush Misra (M) 9415427433 | Treasurer CA.Dhruv Seth (M) 9935522611 |
Dear Friends,
Lucknow Chartered Accountants Society is all set to hold its 13th Residential Refresher Course at Dynasty Resorts, Khurpatal, Nainital from 5th August 2011 to 7th August 2011. Dynasty Resort is a 4 Star Delux Resort located amidst the lush green forest area and is about 8 km from Nainital on Kaladungi-Nainital Highway . We will take night train on 04th August 2011 for Nainital from Lucknow and reach there next day early morning and will proceed for Lucknow on 07-08-2011 late night to reach Lucknow in next morning.
The course fee including travel arrangements to & fro Lucknow is Rs.7000/-.
Course Fee excluding travel arrangements is Rs.6000/-
In RRC, we shall have the following papers for discussion and deliberations::-
1. Case Studies on Capital Gain
2. Case Studies on Accounting Standards & Standard on Auditing
3. Case Studies on Service Tax
4. Papers for presentation (without group discussion):
a) Revised Schedule VI
b) Changes in Audit Report
5. Brain Trust
Technical sessions will be preceded by group discussions.
As usual, we shall be enjoying the beauty of nature of the Kumaun Valley . The evenings will be filled with joy and entertainment by the talents of the participants. Since, there are limited number of seats, I request my friends to register their name with me or any of the managing committee members of Lucknow Chartered Accountants Society at the earliest . .
CA.Piyush Misra
Secretary
Lucknow CA Society
Important judgment : Disciplinary proceedings
Where appellant, a chartered accountant, challenged disciplinary proceeding initiated against him on ground that alleged acts of commission or omission on basis of which proceedings had been commenced also formed basis of various charges against him in criminal cases and, hence, any disclosure of his explanation or defences until final conclusion of criminal trial pending before Special Court would seriously impact his defence in criminal trial, it was held that no case for stay of disciplinary proceedings was made out pending conclusion of criminal trial –SUBRAMANI GOPALKRISHNAN v.ICAI [2011] 11 taxmann.com 200 (DELHI)
How to Clear CFA Level Two Exam: Ten Tips
CFA is the most prestigious three letter designation in Investments you can have after your name. While clearing Level I of the CFA program is quite an uphill task, Level II might seem like climbing Mt. Everest. Below are some tips that would help you on your way up.
1. Understand
Reason out why you are pursuing the CFA program and how exactly it would help you in your career. The path is long and tough, all the while studying for Level 2 I used to curse the day I decided to register for it. However the value it added to me as an Investment Analyst was what kept me motivated.2. Get your basic fundas right
All concepts of Level 1 form implicit syllabus for Level 2. While it may not be directly tested, it will definitely form the basis of a lot Level 2 topics. Since there is gap of 4 to 10 months between the results and next level you might become a bit rusty. The best way to revise would be to use Level 1 refreshers provided with Level 2 study materials (Schweser, Stalla etc.).The study material supplied by CFA institute was a lot bulkier and even more cumbersome than what they sent for Level 1. My heart really pains to imagine all trees that they cut down for this. Schweser Notes and software are again highly recommended based on personal experience.
3. Start a lot earlier
I hope the 1st point above is makes it amply clear why one should start a lot earlier. Not only does one have to revise concepts of Level 1 that are expected of in Level 2, the material delves a lot deeper. In fact the material can be so detailed that you might need to study the same topics again and again to understand and retain them well.4. Work on a Schedule
As level 2 would require a lot more effort it would require even greater amount of time and patience. You will have to allocate greater amounts of time and slack. This is because you might find that you need to revise certain Level 1 topics in depth of begin with certain Level 2 topics all over again for good understanding.5. Take time off from work
It would be a lot better to take some days off even without pay to clear level 2, rather than to flunk the exam and fret and prepare for another year. Do shy from asking time off to prepare, believe me it would be worth it.5. Equity and FRA
Equity Investments and Financial Reporting and Analysis are the chunkiest portions of syllabus. I found Equity a lot easier to master. FRA was where I was slightly unsure, I compensated by going through it over and over. I practiced a lot of questions in FRA and marked the ones I would get wrong. I sat down with my Accounts teacher to clear those concepts. I would really pay off to develop these two areas as your strength. On the exam I got 70+ in both of these.6. Don’t be shy of seeking help
I hate to break this to you but Superman is fiction. Do not try to be one. If you get stuck somewhere, do seek help. Sometimes we might read something again and again and not understand it, but it can become crystal clear if explained rightly.7. Don’t be shy of helping
This might actually be the best way to prepare. I helped students with Level 1 prep and volunteered to explain certain sections of Level 2 at my study group. Verbalizing your thoughts makes them a lot clear and you a lot more confident.8. Last week is crucial
Last week is the most important time. Quickly go through all the portions, revise all the formulae, take at least two practice exams. Do not forget to take ample rest both physical and mental. Maintain a cheery attitude and you will be successful.9. Work Hard
No shortcuts here, ‘Nothing worth having comes Easy’.All the very Best !
Govt Plans More Changes in IFRS
Changes planned despite global opposition to earlier modifications
The government is planning to introduce additional changes to global accounting standard, IFRS, to make it more palatable for Indian companies, overriding the international opposition to amendments already made. Such a move will extend the eventual migration by Indian companies to the global standard and also insulate local firms from any short-term capital market shocks that may arise due to erosion in valuations. However, any changes to the Indian version of the International Financial Reporting Standards (IFRS) will take time as the government will initially look at some of the revisions being suggested globally, specially by the developed markets of US and Japan, before finalising the road map, secretary, ministry of corporate affairs D K Mittal told ET on Thursday. We have to see how IFRS will meet our requirements. Our markets are different, our standards are different, he said. The ministry, through the National Advisory Committee on Accounting Standards (NACAS), notifies accounting standards that are adopted by Indian companies. The government had earlier suggested changes to the IFRS popularly called carve-outs prior to its scheduled rollout in April 2011.These changes were criticised by the International Accounting Standards Board as not being IFRS-compliant. The international board had requested the government to adopt IFRS in full.The move to adopt IFRS has been opposed by most Indian companies on concerns that profitability and revenue recognition, across industries, would significantly change .This had prompted the government to bring in the carveouts, through Ind-AS, the Indian version of IFRS. In February this year, the government postponed convergence of Ind-AS with IFRS, following lobbying by corporates. Changing Ind-AS again will not help Indian companies in raising capital overseas, the original incentive to adopt IFRS.Ind-AS financial statements would not be accepted in cross-border transactions, says Ernst & Young partner Dolphy Dsouza. Moving to Ind-AS is like moving from one set of Indian GAAP to another set of Indian GAAP and will not add much value. Either we accept IFRS in toto or stay with Indian GAAP. However, other chartered accountants suggest that introducing changes are vital to a smooth transition. The current Indian GAAP has evolved over the past several years. While it should be more transparent, you cant overlook some adverse short-term impacts IFRS would have, said RSM Astute Consulting founder Suresh Surana.
The government is planning to introduce additional changes to global accounting standard, IFRS, to make it more palatable for Indian companies, overriding the international opposition to amendments already made. Such a move will extend the eventual migration by Indian companies to the global standard and also insulate local firms from any short-term capital market shocks that may arise due to erosion in valuations. However, any changes to the Indian version of the International Financial Reporting Standards (IFRS) will take time as the government will initially look at some of the revisions being suggested globally, specially by the developed markets of US and Japan, before finalising the road map, secretary, ministry of corporate affairs D K Mittal told ET on Thursday. We have to see how IFRS will meet our requirements. Our markets are different, our standards are different, he said. The ministry, through the National Advisory Committee on Accounting Standards (NACAS), notifies accounting standards that are adopted by Indian companies. The government had earlier suggested changes to the IFRS popularly called carve-outs prior to its scheduled rollout in April 2011.These changes were criticised by the International Accounting Standards Board as not being IFRS-compliant. The international board had requested the government to adopt IFRS in full.The move to adopt IFRS has been opposed by most Indian companies on concerns that profitability and revenue recognition, across industries, would significantly change .This had prompted the government to bring in the carveouts, through Ind-AS, the Indian version of IFRS. In February this year, the government postponed convergence of Ind-AS with IFRS, following lobbying by corporates. Changing Ind-AS again will not help Indian companies in raising capital overseas, the original incentive to adopt IFRS.Ind-AS financial statements would not be accepted in cross-border transactions, says Ernst & Young partner Dolphy Dsouza. Moving to Ind-AS is like moving from one set of Indian GAAP to another set of Indian GAAP and will not add much value. Either we accept IFRS in toto or stay with Indian GAAP. However, other chartered accountants suggest that introducing changes are vital to a smooth transition. The current Indian GAAP has evolved over the past several years. While it should be more transparent, you cant overlook some adverse short-term impacts IFRS would have, said RSM Astute Consulting founder Suresh Surana.
Introducing NEFT in MCA
Ministry is introducing payment of MCA fees via NEFT (National Electronic Fund Transfer) mode, in addition to already exiting payment methods.To know more about the same please refer User Guide.
A copy of the user guide is attached herewith and the same can also be accessed by visiting the following link:-
Indirect Tax Ombudsman Guidelines, 2011
The Indirect Tax Ombudsman Guidelines 2011
The Guidelines are introduced with the objective of enabling the resolution of complaints relating to public grievances against the Customs, Central Excise and Service Tax Department and to facilitate the satisfaction or settlement of such complaints.
CHAPTER I
PRELIMINARY
1. Short title, commencement, extent and application
I. These Guidelines shall be known as the Indirect Tax Ombudsman Guidelines, 2011.
II. They shall come into force from 11th May, 2011.
2. Definitions
I. ‘authorized representative’ means a person duly appointed and authorized by a complainant to act on his behalf and represent him in the proceedings under these guidelines for consideration of his complaint.
II. ‘award’ means an award passed by the Ombudsman in accordance with these Guidelines.
III. ‘complaint’ means a representation in writing or through electronic means containing an administrative grievance alleging deficiency in the working of the Customs, Central Excise and Service Tax Department as mentioned in clause 9 of the Guidelines.
IV. ‘guidelines’ means The Indirect Tax Ombudsman Guidelines, 2011.
V. ‘Customs, Central Excise and Service Tax authority complained against’ means the junior-most Customs, Central Excise and Service Tax officer not below the rank of a Superintendent of Central Excise, or an
Appraiser of Customs or a Superintendent of Customs who has given the cause of grievance to the complainant. If the grievance has been caused by an official lower in rank than a Superintendent of Central Excise or an Appraiser of Customs or a Superintendent of Customs, then this term shall mean the officer in the rank Superintendent of Central Excise or an Appraiser of Customs or a Superintendent of Customs who is in-charge of such official.
VI. ‘Ombudsman’ means any person appointed under Clause 3 of these Guidelines.
CHAPTER II
ESTABLISHMENT OF THE OFFICE OF INDIRECT TAX OMBUDSMAN
3. Appointment and Tenure
I. On the recommendations of a Committee consisting of the Secretary, Department of Revenue in the Ministry of Finance, the Chairman, Central Board of Excise and Customs and the Member (Personnel & Vigilance), Central Board of Excise and Customs (CBEC), the Central Government may appoint one or more persons as Ombudsman.
II. The Ombudsman selected shall be a person who has held a post in the Government of India in the HAG pay scale of ` 67,000 -79,000 on regular basis for at least one year or in a higher grade and shall preferably be a resident of the city where he/she is proposed to be appointed. He/she shall be a serving officer (as on the last date for receipt of applications ) preferably of the Indian Revenue Service (Customs and Central Excise). If a suitable officer from that service is not available, officers of equivalent grade of any other group „A‟ service of the Central Government may be
appointed as Ombudsman. When appointed as Ombudsman, the officer, if he/she is still in service under the Government of India, shall seek retirement from Government service before entering upon his office as an Indirect Tax Ombudsman.
III. The Ombudsman shall be independent of the jurisdiction of the Customs, Central Excise and Service Tax department.
IV. The Ombudsman shall be appointed for a tenure of 2 years extendable by one year based on performance appraisal or till the incumbent attains the age of 63 years, whichever is earlier. There shall be no reappointment. Performance appraisal shall be made by the Committee constituted in clause 3.I.
4. Remuneration
The Ombudsman shall be allowed pay and allowances as applicable to a Central Government Officer in the HAG+ pay scale of ` 75500-80,000. Any pension to which he is entitled from the Central Government / State Government shall be deducted from his salary.
5. Territorial Jurisdiction
The Central Government shall specify the territorial jurisdiction of each Ombudsman.
6. Location of offices
The offices of Indirect Tax Ombudsman shall be located at Delhi, Mumbai, Chennai, Kolkata, Bangalore, Ahmedabad and Lucknow.
7. Secretariat
Each Ombudsman shall be provided with an office space of appropriate size and a secretariat staff consisting of a Private Secretary, Tax Assistant and a Peon by the Central Board of Excise and Customs.
CHAPTER III
8. Powers and Duties
I. The Ombudsman shall have the powers to –
a) receive complaints from taxpayers on any matters specified in clause 9;
b) consider such complaints and facilitate their satisfaction or settlement by agreement, through conciliation and mediation between the Customs, Central Excise and Service Tax Department and the aggrieved parties or by passing an „award‟ in accordance with the Guidelines;
c) require the Customs, Central Excise and Service Tax Authority complained against or any other related Customs, Central Excise and Service Tax Authority to provide any information or furnish certified copies of any document relating to the subject matter of the complaint which is or is alleged to be in its possession; provided that in the event of failure of such authority to comply with the requisition without any sufficient cause, the Ombudsman may, if he deems fit, draw the inference that the information, if provided or copies if furnished, would be unfavorable to the concerned Customs, Central Excise and Service Tax Authority;
d) suggest remedial measures for redressal of grievances; and
e) report his findings to the Secretary, Department of Revenue, Government of India and the Chairman CBEC for appropriate action against erring officials;
f) Ombudsman shall not have any authority over the Central Board of Excise and Customs and Directorates under Central Board of Excise and Customs as these are Attached offices of Central Board of Excise and Customs.
II a) In cases where action is to be taken by the CBEC and the Directorates under the CBEC which are attached offices of the CBEC, the Indirect Tax Ombudsman shall only have powers of recommendation.
b) The Indirect Tax Ombudsman shall not have jurisdiction in cases where proceedings have been initiated under Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 and Prevention of Illicit Traffic in Narcotic Drugs and Psychotropic Substances Act, 1988.
III The Ombudsman shall have the following duties:
a) to exercise general powers of superintendence and control over his office and be responsible for the conduct of business in his office;
b) to maintain confidentiality of any information or document coming into his knowledge or possession in the course of discharging his duties and not to disclose such information or document to any person except with the consent of the person furnishing such information or document; provided that nothing in this clause shall
prevent the Ombudsman from disclosing information or documents furnished by a party in a complaint to the other party or parties, to the extent considered by him to be reasonably required to comply with the principles of natural justice and fair play in the proceedings;
c) to protect individual taxpayer‟s rights;
d) to identify issues that increase the compliance burden or create problems for taxpayers, and to bring those issues to the attention of the CBEC and the Ministry of Finance;
e) to send a monthly report to the Chairman, CBEC and Secretary, Department of Revenue in the Ministry of Finance recommending appropriate action. The report shall also highlight cases where action needs to be taken against erring Customs, Central Excise and Service Tax authorities for their failure to redress the grievance. The report will be accompanied with primary evidence needed to initiate action against the delinquent persons;
f) to furnish a report every year containing a general review of activities of the office of the Ombudsman during the preceding financial year to the Secretary, Department of Revenue, Ministry of Finance and the Chairman, CBEC along with such other information as may be considered necessary by him/her. In the annual report, the Ombudsman, on the basis of grievances handled by him, will review the quality of the working of the Customs, Central Excise and Service Tax Department and make recommendations to improve the indirect tax administration; and
g) to compile a list of „awards‟ passed by it between April and March of each financial year in respect of every Customs, Central Excise and Service Tax Authority complained against, by name, and report it to the controlling Chief Commissioners of the officers concerned and the Chairman, Central Board of Excise and Customs before the end of April so that this information can be reflected in the Annual Confidential Reports of the officers concerned.
CHAPTER IV
PROCEDURE FOR REDRESSAL OF GRIEVANCE
9. Grounds on which complaint shall be filed:-
I. A complaint on any one or more of the following grounds alleging deficiency in the working of the Customs, Central Excise and Service Tax Department may be filed with the Ombudsman:
(a) delay in the issue of refunds or rebate beyond time limits prescribed by law or under the relevant instructions issued from time to time by the Central Board of Excise and Customs;
(b) delay in adjudication;
(c) delay in registration of tax payers;
(d) delay in giving effect to Appellate orders;
(e) non adherence to the principle of “ First Come First Served” in sending refunds;
(f) non adherence to the rules prescribed for disbursement of drawback;
(g) non acknowledgement of letters or documents sent to the department;
(h) delay in release of seized books of account and assets, after the proceedings under the Customs, Central Excise and Service Tax statutes in respect of the years for which the books of account or other documents are relevant are completed;
(i) non adherence to prescribed working hours by Customs, Central Excise and Service Tax officials;
(j) unwarranted rude behaviour of Customs, Central Excise and Service Tax officials with assessees;
(k) any other matter relating to violation of the administrative instructions and circulars issued by the Central Board of Excise and Customs in relation to Customs, Central Excise and Service Tax administration.
Provided that, if on any of the grounds above, the responsibility for taking action is with the Central Board of Excise and Customs or on a Centralized authority eg., {Director General (Systems) }, then the Ombudsman shall not have the power to pass an award as specified in para 13 below. In such cases, the decision of the Ombudsman shall be recommendatory in nature and shall be forwarded in writing to the Revenue Secretary or the Chairman, CBEC or the centralized authority, as the case may be.
II Central Board of Excise and Customs may include any other ground on which a complaint may be filed with the Ombudsman.
10. Procedure for filing the complaint
I. Any person, who has a grievance against the Customs, Central Excise & Service Tax Department under the Government of India‟s Department of Revenue, may, himself or through his authorized representative, if any, make a complaint against the concerned Customs, Central Excise and Service Tax official in writing to the Ombudsman having jurisdiction over that office.
II.
a. The complaint shall be duly signed by the complainant or his authorized representative, if any, and shall clearly state the complainant‟s name and address, the name of the office and official of the Customs, Central Excise and Service Tax office against whom the complaint is made, the facts giving rise to the complaint supported by documents, if any, relied on by the complainant and the relief sought from the Ombudsman;
b. A complaint made through electronic means shall also be accepted by the Ombudsman and a print out of such complaint shall be taken on the record of the Ombudsman;
c. A printout of the complaint made through electronic means shall be signed by the complainant at the earliest possible opportunity before the Ombudsman takes steps for conciliation or settlement.
d. The signed printout shall be deemed to be the complaint and it shall relate back to the date on which the complaint was made through electronic means.
III No complaint to the Ombudsman shall lie unless:-
(a) the complainant had, before making a complaint to the Ombudsman, made a written representation to the Grievance Cell of the concerned Customs, Central Excise and Service Tax office and did not receive any reply within one month from the date of its receipt by the Grievance Cell.
(b) where the complainant had made a complaint in writing to the Grievance Cell of the concerned indirect tax office and he is not satisfied with the reply given to him.
(c) where the complainant had before making a complaint to the Ombudsman, made a written representation to the Customs, Central Excise and Service Tax authority superior to the one complained against and either such authority had rejected the complaint or the complainant had not received any reply within a period of one month after such authority had received his representation or the complainant is not satisfied with the reply given to him by such authority;
(d) the complaint is made not later than one year after the complainant has received the reply of the concerned Customs, Central Excise and Service Tax office to his representation or, in case, where no reply is received, not later than one year and one month after the
representation to the Customs, Central Excise and Service Tax Authority;
(e) the complaint is not in respect of the same subject matter which was settled through the Office of the Ombudsman in any previous proceedings whether or not received from the same complainant or any one or more of the parties concerned with the subject matter; and
(f) the complaint is not frivolous or vexatious in nature.
IV. No Complainant shall be made to the Indirect tax Ombudsman on an issue which has been or is the subject matter of any proceeding in an appeal, revision, reference or writ before any Customs, Central Excise and Service Tax Authority or Appellate Authority or Court.
11. Proceedings to be summary in nature
The Ombudsman shall not be bound by any legal rules of evidence and may follow such procedure that appears to him to be fair and proper. The proceedings before the Ombudsman shall be summary in nature.
12. Settlement of complaints by agreement
I. As soon as it may be practicable so to do, the Ombudsman shall cause a notice of the receipt of any complaint along with a copy of the complaint to be sent to the Customs, Central Excise and Service Tax Authority Complained Against and endeavour to promote a settlement of the complaint by agreement between the complainant and such authority through conciliation or mediation;
II. For the purpose of promoting a settlement of the complaint, the Ombudsman may follow such procedure as he may consider appropriate.
13. Award by the Ombudsman
I. If a complaint is not settled by agreement within a period of one month from the date of receipt of the complaint or such further period as the Ombudsman may consider necessary, he may, subject to the proviso in para 9.I ante, pass an award after allowing the parties a reasonable opportunity to present their case. He shall be guided by the evidence placed before him by the parties, the principles of Customs, Central Excise and Service Tax law and practice, directions, circulars, instructions and guidelines issued by the Central Board of Excise and Customs or the Central Government from time to time and such other factors which in his opinion are necessary in the interest of justice.
II. The „award‟ passed under sub-clause (1) above shall be a speaking order comprising of the following:
a) Directions to the concerned Customs, Central Excise and Service Tax Authority on performance of its obligations like expediting delayed matters, giving reasons for decisions/orders and issuing apology to complainants etc., except a direction affecting the quantum of tax assessment or imposition of penalties under the Customs, Central Excise and Service Tax statutes;.
b) A token compensation amount not exceeding ` 5000/-(Rupees Five Thousand only) for the loss suffered by the complainant.
c) Designation of the Customs, Central Excise and Service Tax officer to whom the letter of acceptance of the award is to be communicated as detailed in clause 13.4.
III A copy of the „award‟ shall be sent to the complainant and the Customs, Central Excise and Service Tax Authority complained against.
IV The „award‟ shall be binding on the concerned Customs, Central Excise and Service Tax office as well as on the complainant provided that an award shall not be binding on the Customs, Central Excise and Service Tax office unless the complainant furnishes to it, within a period of 15 days from the date or receipt of a copy of the award, a letter of acceptance of the award in full and final settlement of his complaint. If the complainant does not accept the Award passed by the Ombudsman or fails to furnish his letter of acceptance of within the said period of 15 days or within such time, not exceeding a period of 15 days or within such time, not exceeding a period of 15 days that may be granted by the Ombudsman, the award shall lapse and be of no effect.
V Any token compensation given as a part of the award shall be paid by the concerned Customs, Central Excise and Service tax office out of the budget allocated under the head „Office Expenses‟ of the office of the concerned Customs, Central Excise and Service Tax Authority
complained against. Such payments shall take priority over any other expenditure from this allocation.
VI The Customs, Central Excise and Service Tax Authority complained against shall, within one month from the date of the award, comply with the award and intimate compliance to the Ombudsman.
CHAPTER V
MISCELLANEOUS
14 Removal of difficulties
If any difficulty arises in giving effect to the provisions of these Guidelines, the Central Government may make such provisions not inconsistent with the Customs, Central Excise and Service Tax statutes or the Guidelines as it appears to it to be necessary or expedient for removing the difficulty.
The Guidelines are introduced with the objective of enabling the resolution of complaints relating to public grievances against the Customs, Central Excise and Service Tax Department and to facilitate the satisfaction or settlement of such complaints.
CHAPTER I
PRELIMINARY
1. Short title, commencement, extent and application
I. These Guidelines shall be known as the Indirect Tax Ombudsman Guidelines, 2011.
II. They shall come into force from 11th May, 2011.
2. Definitions
I. ‘authorized representative’ means a person duly appointed and authorized by a complainant to act on his behalf and represent him in the proceedings under these guidelines for consideration of his complaint.
II. ‘award’ means an award passed by the Ombudsman in accordance with these Guidelines.
III. ‘complaint’ means a representation in writing or through electronic means containing an administrative grievance alleging deficiency in the working of the Customs, Central Excise and Service Tax Department as mentioned in clause 9 of the Guidelines.
IV. ‘guidelines’ means The Indirect Tax Ombudsman Guidelines, 2011.
V. ‘Customs, Central Excise and Service Tax authority complained against’ means the junior-most Customs, Central Excise and Service Tax officer not below the rank of a Superintendent of Central Excise, or an
Appraiser of Customs or a Superintendent of Customs who has given the cause of grievance to the complainant. If the grievance has been caused by an official lower in rank than a Superintendent of Central Excise or an Appraiser of Customs or a Superintendent of Customs, then this term shall mean the officer in the rank Superintendent of Central Excise or an Appraiser of Customs or a Superintendent of Customs who is in-charge of such official.
VI. ‘Ombudsman’ means any person appointed under Clause 3 of these Guidelines.
CHAPTER II
ESTABLISHMENT OF THE OFFICE OF INDIRECT TAX OMBUDSMAN
3. Appointment and Tenure
I. On the recommendations of a Committee consisting of the Secretary, Department of Revenue in the Ministry of Finance, the Chairman, Central Board of Excise and Customs and the Member (Personnel & Vigilance), Central Board of Excise and Customs (CBEC), the Central Government may appoint one or more persons as Ombudsman.
II. The Ombudsman selected shall be a person who has held a post in the Government of India in the HAG pay scale of ` 67,000 -79,000 on regular basis for at least one year or in a higher grade and shall preferably be a resident of the city where he/she is proposed to be appointed. He/she shall be a serving officer (as on the last date for receipt of applications ) preferably of the Indian Revenue Service (Customs and Central Excise). If a suitable officer from that service is not available, officers of equivalent grade of any other group „A‟ service of the Central Government may be
appointed as Ombudsman. When appointed as Ombudsman, the officer, if he/she is still in service under the Government of India, shall seek retirement from Government service before entering upon his office as an Indirect Tax Ombudsman.
III. The Ombudsman shall be independent of the jurisdiction of the Customs, Central Excise and Service Tax department.
IV. The Ombudsman shall be appointed for a tenure of 2 years extendable by one year based on performance appraisal or till the incumbent attains the age of 63 years, whichever is earlier. There shall be no reappointment. Performance appraisal shall be made by the Committee constituted in clause 3.I.
4. Remuneration
The Ombudsman shall be allowed pay and allowances as applicable to a Central Government Officer in the HAG+ pay scale of ` 75500-80,000. Any pension to which he is entitled from the Central Government / State Government shall be deducted from his salary.
5. Territorial Jurisdiction
The Central Government shall specify the territorial jurisdiction of each Ombudsman.
6. Location of offices
The offices of Indirect Tax Ombudsman shall be located at Delhi, Mumbai, Chennai, Kolkata, Bangalore, Ahmedabad and Lucknow.
7. Secretariat
Each Ombudsman shall be provided with an office space of appropriate size and a secretariat staff consisting of a Private Secretary, Tax Assistant and a Peon by the Central Board of Excise and Customs.
CHAPTER III
8. Powers and Duties
I. The Ombudsman shall have the powers to –
a) receive complaints from taxpayers on any matters specified in clause 9;
b) consider such complaints and facilitate their satisfaction or settlement by agreement, through conciliation and mediation between the Customs, Central Excise and Service Tax Department and the aggrieved parties or by passing an „award‟ in accordance with the Guidelines;
c) require the Customs, Central Excise and Service Tax Authority complained against or any other related Customs, Central Excise and Service Tax Authority to provide any information or furnish certified copies of any document relating to the subject matter of the complaint which is or is alleged to be in its possession; provided that in the event of failure of such authority to comply with the requisition without any sufficient cause, the Ombudsman may, if he deems fit, draw the inference that the information, if provided or copies if furnished, would be unfavorable to the concerned Customs, Central Excise and Service Tax Authority;
d) suggest remedial measures for redressal of grievances; and
e) report his findings to the Secretary, Department of Revenue, Government of India and the Chairman CBEC for appropriate action against erring officials;
f) Ombudsman shall not have any authority over the Central Board of Excise and Customs and Directorates under Central Board of Excise and Customs as these are Attached offices of Central Board of Excise and Customs.
II a) In cases where action is to be taken by the CBEC and the Directorates under the CBEC which are attached offices of the CBEC, the Indirect Tax Ombudsman shall only have powers of recommendation.
b) The Indirect Tax Ombudsman shall not have jurisdiction in cases where proceedings have been initiated under Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 and Prevention of Illicit Traffic in Narcotic Drugs and Psychotropic Substances Act, 1988.
III The Ombudsman shall have the following duties:
a) to exercise general powers of superintendence and control over his office and be responsible for the conduct of business in his office;
b) to maintain confidentiality of any information or document coming into his knowledge or possession in the course of discharging his duties and not to disclose such information or document to any person except with the consent of the person furnishing such information or document; provided that nothing in this clause shall
prevent the Ombudsman from disclosing information or documents furnished by a party in a complaint to the other party or parties, to the extent considered by him to be reasonably required to comply with the principles of natural justice and fair play in the proceedings;
c) to protect individual taxpayer‟s rights;
d) to identify issues that increase the compliance burden or create problems for taxpayers, and to bring those issues to the attention of the CBEC and the Ministry of Finance;
e) to send a monthly report to the Chairman, CBEC and Secretary, Department of Revenue in the Ministry of Finance recommending appropriate action. The report shall also highlight cases where action needs to be taken against erring Customs, Central Excise and Service Tax authorities for their failure to redress the grievance. The report will be accompanied with primary evidence needed to initiate action against the delinquent persons;
f) to furnish a report every year containing a general review of activities of the office of the Ombudsman during the preceding financial year to the Secretary, Department of Revenue, Ministry of Finance and the Chairman, CBEC along with such other information as may be considered necessary by him/her. In the annual report, the Ombudsman, on the basis of grievances handled by him, will review the quality of the working of the Customs, Central Excise and Service Tax Department and make recommendations to improve the indirect tax administration; and
g) to compile a list of „awards‟ passed by it between April and March of each financial year in respect of every Customs, Central Excise and Service Tax Authority complained against, by name, and report it to the controlling Chief Commissioners of the officers concerned and the Chairman, Central Board of Excise and Customs before the end of April so that this information can be reflected in the Annual Confidential Reports of the officers concerned.
CHAPTER IV
PROCEDURE FOR REDRESSAL OF GRIEVANCE
9. Grounds on which complaint shall be filed:-
I. A complaint on any one or more of the following grounds alleging deficiency in the working of the Customs, Central Excise and Service Tax Department may be filed with the Ombudsman:
(a) delay in the issue of refunds or rebate beyond time limits prescribed by law or under the relevant instructions issued from time to time by the Central Board of Excise and Customs;
(b) delay in adjudication;
(c) delay in registration of tax payers;
(d) delay in giving effect to Appellate orders;
(e) non adherence to the principle of “ First Come First Served” in sending refunds;
(f) non adherence to the rules prescribed for disbursement of drawback;
(g) non acknowledgement of letters or documents sent to the department;
(h) delay in release of seized books of account and assets, after the proceedings under the Customs, Central Excise and Service Tax statutes in respect of the years for which the books of account or other documents are relevant are completed;
(i) non adherence to prescribed working hours by Customs, Central Excise and Service Tax officials;
(j) unwarranted rude behaviour of Customs, Central Excise and Service Tax officials with assessees;
(k) any other matter relating to violation of the administrative instructions and circulars issued by the Central Board of Excise and Customs in relation to Customs, Central Excise and Service Tax administration.
Provided that, if on any of the grounds above, the responsibility for taking action is with the Central Board of Excise and Customs or on a Centralized authority eg., {Director General (Systems) }, then the Ombudsman shall not have the power to pass an award as specified in para 13 below. In such cases, the decision of the Ombudsman shall be recommendatory in nature and shall be forwarded in writing to the Revenue Secretary or the Chairman, CBEC or the centralized authority, as the case may be.
II Central Board of Excise and Customs may include any other ground on which a complaint may be filed with the Ombudsman.
10. Procedure for filing the complaint
I. Any person, who has a grievance against the Customs, Central Excise & Service Tax Department under the Government of India‟s Department of Revenue, may, himself or through his authorized representative, if any, make a complaint against the concerned Customs, Central Excise and Service Tax official in writing to the Ombudsman having jurisdiction over that office.
II.
a. The complaint shall be duly signed by the complainant or his authorized representative, if any, and shall clearly state the complainant‟s name and address, the name of the office and official of the Customs, Central Excise and Service Tax office against whom the complaint is made, the facts giving rise to the complaint supported by documents, if any, relied on by the complainant and the relief sought from the Ombudsman;
b. A complaint made through electronic means shall also be accepted by the Ombudsman and a print out of such complaint shall be taken on the record of the Ombudsman;
c. A printout of the complaint made through electronic means shall be signed by the complainant at the earliest possible opportunity before the Ombudsman takes steps for conciliation or settlement.
d. The signed printout shall be deemed to be the complaint and it shall relate back to the date on which the complaint was made through electronic means.
III No complaint to the Ombudsman shall lie unless:-
(a) the complainant had, before making a complaint to the Ombudsman, made a written representation to the Grievance Cell of the concerned Customs, Central Excise and Service Tax office and did not receive any reply within one month from the date of its receipt by the Grievance Cell.
(b) where the complainant had made a complaint in writing to the Grievance Cell of the concerned indirect tax office and he is not satisfied with the reply given to him.
(c) where the complainant had before making a complaint to the Ombudsman, made a written representation to the Customs, Central Excise and Service Tax authority superior to the one complained against and either such authority had rejected the complaint or the complainant had not received any reply within a period of one month after such authority had received his representation or the complainant is not satisfied with the reply given to him by such authority;
(d) the complaint is made not later than one year after the complainant has received the reply of the concerned Customs, Central Excise and Service Tax office to his representation or, in case, where no reply is received, not later than one year and one month after the
representation to the Customs, Central Excise and Service Tax Authority;
(e) the complaint is not in respect of the same subject matter which was settled through the Office of the Ombudsman in any previous proceedings whether or not received from the same complainant or any one or more of the parties concerned with the subject matter; and
(f) the complaint is not frivolous or vexatious in nature.
IV. No Complainant shall be made to the Indirect tax Ombudsman on an issue which has been or is the subject matter of any proceeding in an appeal, revision, reference or writ before any Customs, Central Excise and Service Tax Authority or Appellate Authority or Court.
11. Proceedings to be summary in nature
The Ombudsman shall not be bound by any legal rules of evidence and may follow such procedure that appears to him to be fair and proper. The proceedings before the Ombudsman shall be summary in nature.
12. Settlement of complaints by agreement
I. As soon as it may be practicable so to do, the Ombudsman shall cause a notice of the receipt of any complaint along with a copy of the complaint to be sent to the Customs, Central Excise and Service Tax Authority Complained Against and endeavour to promote a settlement of the complaint by agreement between the complainant and such authority through conciliation or mediation;
II. For the purpose of promoting a settlement of the complaint, the Ombudsman may follow such procedure as he may consider appropriate.
13. Award by the Ombudsman
I. If a complaint is not settled by agreement within a period of one month from the date of receipt of the complaint or such further period as the Ombudsman may consider necessary, he may, subject to the proviso in para 9.I ante, pass an award after allowing the parties a reasonable opportunity to present their case. He shall be guided by the evidence placed before him by the parties, the principles of Customs, Central Excise and Service Tax law and practice, directions, circulars, instructions and guidelines issued by the Central Board of Excise and Customs or the Central Government from time to time and such other factors which in his opinion are necessary in the interest of justice.
II. The „award‟ passed under sub-clause (1) above shall be a speaking order comprising of the following:
a) Directions to the concerned Customs, Central Excise and Service Tax Authority on performance of its obligations like expediting delayed matters, giving reasons for decisions/orders and issuing apology to complainants etc., except a direction affecting the quantum of tax assessment or imposition of penalties under the Customs, Central Excise and Service Tax statutes;.
b) A token compensation amount not exceeding ` 5000/-(Rupees Five Thousand only) for the loss suffered by the complainant.
c) Designation of the Customs, Central Excise and Service Tax officer to whom the letter of acceptance of the award is to be communicated as detailed in clause 13.4.
III A copy of the „award‟ shall be sent to the complainant and the Customs, Central Excise and Service Tax Authority complained against.
IV The „award‟ shall be binding on the concerned Customs, Central Excise and Service Tax office as well as on the complainant provided that an award shall not be binding on the Customs, Central Excise and Service Tax office unless the complainant furnishes to it, within a period of 15 days from the date or receipt of a copy of the award, a letter of acceptance of the award in full and final settlement of his complaint. If the complainant does not accept the Award passed by the Ombudsman or fails to furnish his letter of acceptance of within the said period of 15 days or within such time, not exceeding a period of 15 days or within such time, not exceeding a period of 15 days that may be granted by the Ombudsman, the award shall lapse and be of no effect.
V Any token compensation given as a part of the award shall be paid by the concerned Customs, Central Excise and Service tax office out of the budget allocated under the head „Office Expenses‟ of the office of the concerned Customs, Central Excise and Service Tax Authority
complained against. Such payments shall take priority over any other expenditure from this allocation.
VI The Customs, Central Excise and Service Tax Authority complained against shall, within one month from the date of the award, comply with the award and intimate compliance to the Ombudsman.
CHAPTER V
MISCELLANEOUS
14 Removal of difficulties
If any difficulty arises in giving effect to the provisions of these Guidelines, the Central Government may make such provisions not inconsistent with the Customs, Central Excise and Service Tax statutes or the Guidelines as it appears to it to be necessary or expedient for removing the difficulty.
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