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Wednesday, 27 August 2014


CGHS streamlines the procedures regarding issue of medicines, reimbursement of expenditure

CGHS streamlines the procedures regarding issue of medicines, reimbursement of expenditure

No. 2-2/2014/CGI-IS. HQ/PPT/CGHS(P)
Government of India
Ministry of Health & Family Welfare
Department of Health & Family Welfare
Nirman Bhawan, New Delhi
Dated: the 25th August , 2014
OFFICE MEMORANDUM
Sub- Issue of medicines / reimbursement of expenditure on investigations / treatment procedures / implants and other medical devices under CGHS- regarding
With reference to the above mentioned subject the undersigned is directed to state that this Ministry has examined the matter in detail and with a View to streamlines the procedures regarding issue of medicines, reimbursement of expenditure on investigations, treatment procedures, implants and medical devices and with a View to plug the loopholes in the system, it has now been decided that:
a) CGHS shall supply / indent only those medicines, which are included in the CGHS formulary, except for para (b) below. However, for medicines prescribed outside formulary, medicines with identical formulations and /or similar therapeutic effect may be supplied from CGHS formulary against such medicines. CGHS formulary containing 1447 generic and 622 branded medicines is available on CGHS Website at http://msotransparentnic.in/cghsnew/index.asp
b) Anti Cancer and other similar medicines are however supplied on a case to case basis. Only the medicines approved by DCGI for use in India shall be supplied. In case an Indian version is available, which is cheaper than the imported medicine, only the Indian medicine shall be supplied even if, an imported medicine has been prescribed.
c) Medicines shall be supplied for a maximum period of one month.
d)In case of CGHS beneficiaries going abroad, issue of medicines shall be restricted for a maximum period of three months.
e) CGHS shall hereinafter allow only the listed investigations / treatment procedures for which there are prescribed CGHS rates, to be under taken in CGHS empanelled diagnostic centres and hospitals.
f) Similarly, only listed implants / medical devices with a CGHS prescribed ceiling rate shall be permitted for treatment / reimbursement under CGHS.
g) In those cases where any unlisted investigation / treatment procedure is undertaken the reimbursement shall be limited to the rate of nearest similar investigation / treatment procedure under CGHS. Addl. Director of the city /zone shall take a decision based on justification in such cases, in consultation with experts in the field, if necessary.
h) In those cases where any unlisted implant / device is installed reimbursement shall be limited to the CGHS rate of nearest similar implant / device. Addl. Director of the city / zone shall take a decision based on justification in such cases in consultation with experts in the field, if necessary.
i) Registration of Mobile number with CGHS has been made compulsory as a guard against misuse of CGHS Card.
j) In order to provide a mechanism to update the investigations / treatment procedures / implants , etc., as an ongoing process , a Technical Committee is being constituted to consider inclusion / exclusion of investigations /treatment procedures / implants , etc., under CGHS.
sd/-
(RAVI KANT)
Under Secretary to Government of India
Dopt Orders on declaration of assets and liabilities by the public servants for each year
F.No.11013/3/2014-Estt.(A)
Ministry of Personnel Public Grievances & Pensions
Department of Personnel and Training
Establishment Division
North Block, New Delhi
Dated August 25 , 2014
OFFICE MEMORANDUM
Subject: The Lokpal and Lokayuktas Act. 2013 – Submission of declaration of assets and liabilities by the public servants for each year – regarding
The undersigned is directed to refer to this Department’s Circular of even no. dated 23.07.2014 the subject mentioned above requesting all Ministries! Departments to bring the provisions of the Public Servants (Furnishing of Information and Annual Return of Assets and Liabilities and the limits for Exemption of Assets in Filing Returns) Rules, 2014, to the notice of all concerned for compliance. It is again requested that necessary directions may be issued in this regard urgently so that the declarations/information/returns from every public servant are received on or before the 15th day of September 2014 as stipulated in the said Rules. It is reiterated that the definition of public servant covers all Group A, B and C employees,

2. In this regard it is also clarified that the public servants who either failed or were not required to file the annual declarations as per the applicable rules [eg. Group C’ Government servants covered under CCS(Conduct) rules, 1964] are also required to file the stipulated declaration/ information/return within time,
3. Hindi version will follow. ,
sd/-
(J. A. Vaidyanathan)
Director (E)

Friday, 22 August 2014

Aadhaar based Biometric Attendance System in Central Government Offices
Telegraph has published the following news on Aadhaar based Biometric Attendance System in Central Government Offices
Aadhaar watch on babus
The sarkari babu will have to make every minute count.
The Narendra Modi government has ordered that an Aadhaar Enabled Biometric Attendance System (AEBAS) be implemented in all central government offices.
A circular issued to all central government offices in the capital today has also asked employees, of all ranks, to submit their contact details (email ID, residential address, telephone and personal mobile phone numbers) to the department of personnel and training that is with the Prime Minister’s Office.

Delhi police are already building a databank containing the cellphone number, email ID, name, rank and “personal number” and of every city cop, from constable to commissioner, on the orders of the PMO. A letter from the home ministry on August 5 had asked for such a databank, which will also include the municipality in which the cop lives. “All the station house officers are on the job,” an officer said.
The circular issued today does not give a date from which the new attendance system will be implemented. It says “Aadhaar number is mandatory to register attendance”.
At least one state — Jharkhand — has begun implementing the AEBAS. But a central government order means the system will have to be adopted across the country.
The system will be implemented in the capital first and then in all central offices outside New Delhi. The order is binding on all employees, including those in the armed forces.
To implement the system, all offices will have to install fingerprint scanners with Wi-fi Internet. The objective of the system, sources said, is “to check absenteeism and measure the time an employee spends in office and the time he or she checks in and checks out”.
Similar systems have been implemented in many corporate offices, both in the private and the public sector, though they are not based on Aadhaar, the card issued to citizens by the Unique Identification Authority of India that was headed by Nandan Nilekani and created by the UPA II government of Manmohan Singh in 2009.
The system will also seek to ensure that employees cannot backdate attendance or mark attendance for someone else.
On July 1, Nilekani had met Modi and finance and defence minister Arun Jaitley and given a presentation on the Aadhaar scheme that impressed the new regime.
Police clueless
Delhi police have been left befuddled by the message from the PMO asking for the databank.
“This is unprecedented. We are not clear about the objective behind it,” a senior officer said in private.
“It seems the PMO is going to be the new control room for everything: it will keep a tab on all government officials including the police,” conjectured an IPS official posted in the home ministry.
The Delhi police, who claim to be the world’s largest metropolitan force with their 80,000 personnel including nearly 50,000 constables, have thrown themselves into the massive exercise.
Delhi’s is the only police force in the country that is under the Union home ministry’s direct control. Police sources said the directive came in the form of a ministry letter dated August 5.
Additional deputy commissioner Mahesh Batra then wrote to all the zonal deputy commissioners to help prepare the databank.
“May kindly direct the concerned to collect the same from every employee under your control and feed the information by August 13,” says the letter, dated August 11, of which The Telegraph has a copy.
“There will not be an extension of this date, being time-bound requirement by Prime Minister’s Office….”
Not surprisingly, the deadline has been missed. A senior officer said the task would be completed by the end of this month.

Judge suspended for 'offensively staring' at female staff

 
The Bombay High Court has suspended a sessions court judge on charges of sexually harassing a female staff worker.
M T Gaikwad, presiding over a special Narcotics Drugs and Psychotrophic Substances Act (NDPS) Court in South Mumbai, was suspended last week after a preliminary inquiry found substance in the complaint by the staff member about his "inappropriate behaviour".
"The judge was suspended on August 14 after holding a preliminary inquiry," Shalini Joshi, Registrar General of the Bombay High Court, said.
The complainant had alleged that the judge used to stare at her quite often in an offensive manner. During the preliminary inquiry, the allegation made by the complainant was corroborated by other employees, high court sources said.
The complaint was filed against the judge early this month.
The preliminary inquiry was conducted by another special judge S D Tulankar, who presides over a Protection of Children from Sexual Offences Act (POCSOA) court.
According to the procedure, a judge under suspension faces a departmental inquiry either by a senior sessions court judge or a judge of the high court as decided by its Chief Justice.
During the departmental inquiry, a charge sheet is served on the suspended judge with a copy to the complainant and the presiding judge examines the witnesses.
Only after a departmental inquiry finds the suspended judge guilty of the offences alleged against him does the punitive action under the state civil rules follow.
Gaikwad was the judge of the NDPS court for the last 5 months. Prior to that, he was posted as a civil judge in Parbhani.

Thursday, 21 August 2014

To direct the respondents to grant scale of Rs.15600-39100 with Grade Pay of Rs.5400 & 6600 attached to the promotional posts, as 2nd & 3rd financial upgradation to the applicants under MACP from due date with all arrears of pay. To declare the OM/MACP dated 19.05.2009 as unconstitutional to the extent the same deny the next promotional scale attached to the promotional post as 1st, 2nd & 3rd financial upgradation as illegal, arbitrary and unjustified and issue appropriate consequential directions

Central Administrative Tribunal
Principal Bench, New Delhi
OA No.2548/2014
MA No.2167/2014
New Delhi, this the 31st day of July, 2014
Hon ble Mr. G.George Paracken, Member (A)
Hon ble Mr. Shekhar Agarwal, Member (A)
1. Kishan Swarup Sharma, working as PPO(E),
Aged about 58 years,
S/o Shri Kumbh Karan Sharma,
R/o 64, Arya Nagar,
Suraj Kund Road,
Meerut-250001.
2. D.V. Singh, working as PPO(E),
Aged about 57 years,
S/o Late Shri Harkesh Singh,
R/o H.No.50, New Bhopal Vihar,
Garh Road, Meerut, UP .
3. Mange Ram, working as PPO(E),
Aged about 59 years,
S/o Shri Bachan Singh,
R/o H.No.112, Baba Jawanth Singh Colony,
Raja Sansi, Amritsar, Punjab.
4. Mahendra Singh, working as PPO(E),
Aged about 59 years,
S/o Sh. Harbans Sngh,
R/o A-185, DDA Flats, Gazipur,
Delhi-110096.
5. Arun Kumar Sahu, working as PPO(E)
Aged about 58 years,
S/o Brij Nandan Sahu,
R/o V&PO Manda, via-Narhan,
Distt. Samastipur, Bihar.
6. Prakash Chandra, working as PPO(E),
Aged about 47 years,
S/o Late Shri Chokhey Lal,
R/o Village Puvena, PO Ahan,
Distt. Hathras.
7. Pradeep Kumar, working as PPO(E),
Aged about 46 years,
S/o Shri Rajbir Singh,
R/o H.No.1176, Type-IV,
H.H. IV, Faridabad, Haryana.
8. Mahesh Chandra, working PPO(E),
Aged about 50 years,
S/o Late Shri Bhikari Lal,
R/o 1224, Type-III,
NH-IV, Faridabad, Haryana.
9. Durga Prasad, working as PPO(PP),
Aged about 46 years,
S/o Shri Umrao Singh,
R/o H.No. 3H-93, NIT Faridabad,
Haryana.
10. C.S.Ranawat, working as PPO(E)
Aged about 47 years,
S/o Sh. L.S. Ranasat,
R/o 353, Block-A,Sainik Colony,
Faridabad, Haryana.
11. Rambir Singh, working PPO(E),
Aged about 51 years,
S/o Late Shri Jailal Singh,
R/o H.No.246, Sec-48, Faridabad,
Harayana.
12. Akhilesh Kumar, working as PPO(PP),
Aged about 48 years,
S/o Shri Surjan Lal,
R/o Q.No.1872, T-3, New Quarters,
NH-IV, Faridabad, Haryana.
13. Mahavir Singh, working as PPO(PP),
Aged about 55 years,
S/o Late Shri Jagal Lal,
R/o C-17, Pandav Nagar,
New Delhi-110092.
14. Jitendra Kumar, working as PPO(E),
Aged about 46 eyars,
S/o Shri Jagmer Singh,
R/o A-39, Defence Enclave,
Kanker Khera, Meerut, UP.
15. Yogesh Kunwar, working as PPO (WS),
Aged about 53 years,
S/o Shri Satya Pal Singh,
R/o Q.No.1005, Type-IV, NV-IV,
Faridabad, Haryana.
16. Kailash Chand, working as PPO(PP),
Aged about 51 years,
S/o Late Shri Jaggan Lal,
R/o H.No.26, Block-F, Arya Samaj Road,
Uttam Nagar, New Delhi.
17. Atul Kumar Sinha, working as PPO(PP),
Aged about 49 years,
S/o Shri R.N. Sinha,
R/o 126-B, Beside Little Flower School,
Shahpur, Gorakhpur-273006.
18. Arun Kumar Rana, working as PPO(E),
Aged about 45 years,
S/o Late Shri Ajab Sinha,
R/o B-264, New Panchwati Ghaziabad, UP.
19. Chanan Lal, working as PPO(E),
Aged about 58 years,
S/o Shri Mani Ram,
R/o H. No.246. Sec-48, Faridabad, Haryana.
20. Dr. Umesh Kumar, working as PPO(E),
Aged about 55 years,
S/o Late Shri S.P. Srivastava,
R/o 1032, Sec-3, Eldeco Udyan-II,
Raebareli Road,
Lucknow-226025.
21. Chandra Bhan, working as PPO(E),
Aged about 52 years,
S/o Late Shri Harlal,
R/o Old No.2, New No.3, 26 Street Nanganllur,
Chennai.
22. N.K.Meena, working as PPO(E),
Aged about 46 years,
S/o Late Shri Ram Sehai Meena,
R/o 1276/34, Sector-7, Antophill,
Mumbai.
23. Dr. Rajesh Kumar, PPO(E),
Aged about 47 years,
S/o Shri Maharban Singh,
R/o 1497, Sec-3,
Faridabad (Haryana)
24. Suresh Kapil, PPO(E),
Aged about 52 years,
S/o Late Shri Kewal Krishan,
R/o Raban, Solan (H.P.).
25. D.C.Tyagi, PPO(Chem.),
Aged about 55 years,
S/o Shri R.L. Tyagi,
R/o H.No.1186, Type-IV,
NH-IV, Faridabad, Haryana.
26. U.L.Srivastav, PPO(PP),
Aged about 58 years,
S/o Shri Amrit Lal Srivastava,
R/o Jangal Rani Sahas Kumari Tolo,
Mahabar Chhapra, Distt. Gorakhpur (UP)
27. Pitamber Singh, working as PPO(P),
Aged about 49 years,
S/o Shri Chandan Singh,
R/o Village Mumrejpur, Post Ahmadgarh,
Distt. Buland Shahar, UP.
28. Pawan Kumar, working as APPO,
Aged bout 45 years,
S/o Shri D.S. Chauhan,
R/o 148, New Dashmesh Avenue,
Opposite Khalsa College for Education,
Amritsar (Punjab)-143 002.
29. Vijay Pal Singh, working as PPO(E),
Aged about 47 years,
S/o Shri Kale Singh,
R/o H.No.92, Type-III,
NH-4, Faridabad.
____Aapplicants.
(By Advocate : Shri M.K. Bhardwaj )
Versus
UOI & Ors. through
1. The Secretary,
Ministry of Agriculture,
Krishi Bhawan, New Delhi.
2. The Plant Protection Advisor,
Directorate of Plant Protection,
Storage & Quarantine,
Govt. of India, Department of Agriculture &
Cooperation, NH-IV, Faridabad.
3. The Secretary,
Ministry of Personnel, Public Grievances,
& Pensions (Deptt. Of Personnel & Training),
Govt. of India,
North Block, New Delhi.
_____ respondents.
ORDER (ORAL)
Mr. G. George Paracken, Member (J) :-
The applicant has filed this OA seeking the following reliefs :-
(a) to declare the action of the respondents in not granting the scale of Rs.15600-39100 (PB-3) with Grade Pay of Rs.5400 & 6600 as illegal and arbitrary.
To direct the respondents to grant scale of Rs.15600-39100 with Grade Pay of Rs.5400 & 6600 attached to the promotional posts, as 2nd & 3rd financial upgradation to the applicants under MACP from due date with all arrears of pay.
To declare the OM/MACP dated 19.05.2009 as unconstitutional to the extent the same deny the next promotional scale attached to the promotional post as 1st, 2nd & 3rd financial upgradation as illegal, arbitrary and unjustified and issue appropriate consequential directions.
To allow the O.A. with costs.
Pass such other direction or directions order or orders as this Hon ble Tribunal may deem fit and proper to meet the ends of justice.
2. According to the learned counsel for applicants, this case is squarely covered by an order of this Tribunal dated 26.11.2012 in OA No.904/2012 Sanjay Kumar Vs. Secretary, Ministry of Defence and Ors. The operative part of the said order reads as under :-
4. We have heard the learned counsel for the parties. The issue raised in the OA has already been considered by the Chandigarh Bench of this Tribunal in OA No.1038/CH/2010- Rajpal son of Shri Tilak Ram Versus Union of India and others.
5. In the aforesaid OA, the applicant was working as Photocopier and he was already given 1st Financial Upgradation under the ACP Scheme. According to the applicant, his pay had been wrongly fixed in pay band-1 with grade pay of Rs.2400/- on grant of 2nd Financial Upgradation under the MACP Scheme. This Tribunal held that the applicant therein was entitled for the 2nd Financial Upgradation in the next hierarchy of posts and not in the next grade pay. The posts of Photocopier and that of LDC/Hindi Typist being isolated posts, not having any promotional avenues, the Chandigarh Bench of the Tribunal made the following observations:-
11. We have heard the learned counsel for the parties and considered the documents on record.
12. There is no dispute that the applicant is holding the post of Photocopier, which is an isolated post, having no avenues for promotion. It is also not disputed that the post held by the applicant had been declared equivalent to the post of LDC/Hindi Typist etc. by the Tribunal as well as the High Court by judicial pronouncements in matters of grant of ACP, which have attained finality and stands implemented also. Accordingly, applicant was granted Ist ACP (under the old ACP) w.e.f. 9.8.99 in the pay scale of Rs. 4000-6000.
13. It has also been settled that the ACP would be granted on completion of the required years of service in the hierarchy of posts for the posts of LDC/Hindi Typists, and not in the next higher scale in the recommended scales. The same principle would have to be applicable in regard to grant of MACP to the applicant. The only difference is that while in case of ACP two financial upgradations were granted on completion of 12 and 24 years of service, in case of MACP, three upgradations on intervals of 10, 20 and 30 years of service.
14. The respondents have placed reliance on para 13 of the MACPS, which reads as under:
13. Existing time-bound promotion scheme, including insitu promotion scheme, Staff Car Driver Scheme or any other kind of promotion scheme existing for a particular category of employees in a Ministry/Department or its offices, may continue to be operational for the concerned category of employees if it is decided by the concerned administrative authorities to retain such Schemes, after necessary consultations or they may switch-over to the MACPS. However, these Schemes shall not run concurrently with the MACPS.
Reliance has further been placed on decision taken in the second meeting of the Joint Committee on MACPS held under the Chairmanship of the joint Secretary DoPT was circulated. Item No.3 of the Agenda for the said meeting reads as under:
The MACP Scheme provides for placement in the immediate next higher grade pay in the hierarchy of the recommended revised pay bands and grade pay after 10,20 and 30 years of service. On the other hand the earlier ACP Scheme provided for placement to higher pay scale of the next promotion post in the hierarchy of the pay scale after 12 and 24 years of service taken from date of induction in service.
15. Be that as it may, the principle enunciated and settled by the Tribunal/High Court for grant of ACP cannot be changed and the same principle would apply for grant of MACP to him. The only difference is of number of years required to be completed. We find no justification to take a different view in the matter
16. For the foregoing reasons, the impugned order dated 9.8.2010, (Annexure A-1)qua the applicant, fixing his pay in PB-1 with grade pay of FR 2400/- under the second MACP, and the order dated 10.8.2010 (Annexure A-2 ) are hereby quashed and set aside. Consequently, the respondents are directed to grant second financial upgradation to the applicant under the MACPS from due date fixing his pay in the hierarchy of posts decided in his case earlier and to pay the resultant arrears without interest, within a period of 2 months from the date of receipt of a copy of this order.
17. The OA stands disposed of in the above terms. No costs.
6. The respondents have challenged the aforesaid order before the Hon ble High Court of Punjab and Haryana at Chandigarh in CWP NO.19387/2011 decided on 19.10.2011. The Hon ble High Court of Punjab and Haryana at Chandigarh held that there was no infirmity in the aforesaid order passed by the Chandigarh Bench of this Tribunal. The relevant observations of the said order are extracted hereunder:
Upon implementation of the 6th Central Pay Commission, the scale of Rs.3050-4590/- was kept in pay band-I, Rs.5,200-20,200/- with grade pay of Rs.1,900/-, the scale of Rs.4,000-6,000/- was also kept in pay band-I with grade pay of Rs.2,400/- and the scale of Rs.5,500/-9,000/- was kept in pay band-II in pay scale of Rs.9,300-34,800/- with grace pay of Rs.4,200/- increased to Rs.4,600/-. In terms of MACP Scheme, respondent no.1 was granted the lower scale by keeping in pay band -I of Rs.5,200-20,200/- with grade pay of Rs.2,400/-. This was done in terms of order dated 09.08.2010. Accordingly, respondent No.1 approached the CAT contending that he is entitled to be granted the scale of Rs.5,500-9000/- towards the 2nd Financial Upgradation at par with the post of Hind Typist and LDC. Such claim of respondent No.1 has been upheld by the CAT in the impugned order dated 31.05.2011.
7. In our considered view, the present OA is squarely covered by the aforesaid judgment of Chandigarh Bench, as upheld by the Hon ble High Court of Punjab and Haryana at Chandigarh.
8. In fact, the respondents have wrongly interpreted the terms and conditions mentioned in the MACP Scheme, issued by the Deptt. of Personnel & Training, in the case of the applicants. By the said Scheme, the eligible government servants are to be placed in the immediate next higher grade pay in the hierarchy of the recommended revised pay bands and grade pay and not merely in the next higher scale of pay as per the recommendations of the 6th Pay Commission. In the hierarchy after the scale of UDC, the next scale is that of Assistant. Therefore, the respondents should have given the next higher grade pay and pay band attached to the next promotional post in the hierarchy, namely, the Assistants carrying the pay scale of Rs.9300-34800 and the grade of Rs.4200/-.
9. In view of the above position, this OA is allowed. The respondents are directed to grant scale of pay of Rs.9300-34,800/- with grade pay of Rs.4200/- attached to the said promotional post of Assistant/OS from the due date to the applicants.
10. The aforesaid directions shall be complied with within the period of two months from the date of receipt of a copy of this order, subject to the other conditions mentioned in the MACP Scheme.
There shall be no order as to costs.
3. He has also submitted that following the aforesaid order, this Tribunal has passed similar orders in OA No.1493/2014 Indian Ordnance Factories Gazetted Officers Association through its President Shri Brajesh Kumar Singh & others Vs. UOI & Ors, OA No.988/2014 Shri Pradeep Kumar & Ors. Vs. Secretary, Ministry of Information & Broadcasting & Ors,, OA No.864/2014 Shri Om Prakash & Ors. Vs. Secretary (NCERT) & Ors., and OA No.203/2014 Narener Kumar, JE(Civil) Vs. Govt. of NCT of Delhi & Ors. He has further stated that the OA No.864/2014 (supra) has been challenged by the respondents therein before the Hon ble High Court of Delhi vide WP(C) No.3608/2014 but the same was dismissed vide order dated 14.07.2014.
4. In view of the above position, we dispose of this OA at the admission stage itself with the direction to the respondents to consider the case of the applicants in the light of the aforesaid orders. If their case is covered by them, they shall also be extended the same benefits under intimation to the applicants. The aforesaid direction shall be complied with, within a period of two months from the date of receipt of a certified copy of this order.
5. For the sake of convenience of the Respondents, Registry is also directed to send a copy of this OA to them.
( Shekhar Agarwal ) Member (A) (G.George Paracken) Member (J)
 Formation of IRS(Promotee) Pensioners Association –  regarding.
            A conveners Committee for formation of National level IRS( Promotee) Pensioners Association  as a division under The All  India  Central Excise, Customs & Service Tax Gr-A Promotee Officers' Association  is going to be  formed  very soon. The serving officers as well as retired officers ( IRS Promotee) are requested to contact through cengao2014@gmail.com.

Wednesday, 20 August 2014

The key findings of HC in its judgment [TS-342-HC-2014(CHAT)-EXC]

 Customs, Excise & Service tax Appellate Tribunal (‘Tribunal’), Delhi order in the case of Ultratech Cement Limited vs. CCE [TS-248-Tribunal-2013-EXC] , wherein it was held that for the goods where duty is chargeable at specific rates or at the value determined under Section 4A and not at ad-valorem rates under Section 4, the definition of ‘place of removal’ as given in Section 4(3)(c) of the Central Excise Act, 1944 would not be applicable for Cenvat credit purposes and as such the ‘place of removal’ will be the factory gate.  Therefore, in such cases, Cenvat Credit cannot be availed with respect to service tax paid on transportation of final products beyond the factory gate. 

Background of the case

·         Assessee is manufacture of cement chargeable to Excise duty at specific rates and not on ad-valorem rates (i.e. the removals were not covered under Section 4 of the Excise Act);
 
·         Assessee had availed CENVAT credit of Service tax paid on transportation of goods from factory to customer’s premises, from factory gate to depot and from depot to customer’s premises;
 
·         Since the term ‘place of removal’ is defined in Sec 4 of the Excise Act, the Excise authorities denied credit on the ground that since final products are not chargeable to duty under Section 4 of the Excise Act, the definition of place of removal given under Sec 4 cannot be borrowed for credit purposes. Therefore, the factory gate should be the place of removal and transportation of goods beyond the factory gate is not eligible for the benefit of CENVAT Credit;
 
·         Key submission made by Assessee against the order was that the term ‘place of removal’ is not defined in the Credit Rules, it would have to be borrowed from Section 4 of the Excise Act by virtue of Rule 2(t) of the Credit Rules which provides that meanings of the terms and expressions not defined in the Rules but defined in the Excise Act would have to be construed accordingly;
 
·         Tribunal decided the matter in favor of Revenue 

Recent Development

An appeal was filed before the High Court of Chhattisgarh (‘HC’) by the Assessee and HC has found the order of Tribunal to be incorrect. The key findings of HC in its judgment [TS-342-HC-2014(CHAT)-EXC] are mentioned below:

·         There is no provision in the Excise Act or in the Rules or any Circular issued by CBEC to hold that where duty is charged on the specified rate, then the place of removal will be factory gate
 
·         If the Legislature or the Central Government or CBEC wanted the ‘place of removal’ to be factory gate in case of payment of Excise duty on specified rate, then the same could have been defined in the Act or Rules. Thus, factory gate cannot be the place of removal as a presumption of law.

·         It was earlier held by the Division Bench of this Court in the case of Lafarge India Limited v. Commissioner of Central Excise, Raipur (Tax case 34 of 2011) that- though Section 4(3)(c) defines the word ‘place of removal’ for purpose of that section but in absence of its meaning for other sections, it would be applicable unless it is otherwise provided.

·         It has to be ascertained from facts and circumstances of each case as to what is the place of removal and it cannot be presumption of law as decided by Tribunal.

·         Matter is remanded back to adjudicating authority to determine whether place of removal would be factory gate or premises of the consumer. Where the place of removal is found to be premises of the consumer, Cenvat credit of such input service would be allowed.