The Central Board of Revenue (CBR) has allowed 10 leading industries to settle their central excise duty-related disputes through alternative dispute resolution mechanism, according to an SRO issued here on Tuesday. These industries are beverage, beverage concentrate, cigarette, natural gas, POL products, soap and detergents, perfumery and cosmetics, cement, importer of raw sugar and 'insurance service'. These sectors can approach CBR for removal of their hardships through dispute resolution committees.

The CBR has also given permission to excise-related industries to file appeal against the decision of the committees.

Sources told Business Recorder that the alternative dispute resolution system has been introduced for the industries operating under central excise regime after successful experience of system on the sales tax side.

In this regard, the CBR has amended Central Excise Rules 1944 by adding a new rule 96ZZR for notifying the procedure regarding alternative dispute resolution.

Under the procedure, any aggrieved person can submit a written application for alternative dispute resolution to the Board. The applicant should submit the particulars of the case along with the supportive documents.

The application should also specify the amount of excise duty, additional duty and penalties, which the applicant agrees to pay and details of amount already paid, if any.

The applicant will pay the remuneration of the members of the committee other than a public servant.

The Board after examination of application may constitute a committee for examination of the issue involved in the dispute; Provided that the CBR may notify the constitution of such committees in each Collectorate as a standing arrangement for resolution of disputes and a aggrieved person may make a direct reference to the concerned Collectorate for dispute resolution.

According to the procedure, the Board may appoint one of the members of the committee, other than a public servant, to be its chairman.

The chairman of the committee will be responsible for deciding the procedure to be followed by the committee.

The committee will have the authority to seek further information, data, expert opinion and carry out audit or inquiry for settlement of the issue.

The Board, after examining the recommendations of the committee, shall finally decide the dispute and issue such order for the dispute resolution. On receipt of Board's order, the concerned Collectorate shall implement the order within the time period given by the CBR.

In case a person is not satisfied with the order of the Board, he may file an appeal under the law.

Copyright Business Recorder, 2004