TIOL-DDT 1097 · Monday, 27 April 2009 · story 1 of 5

Is this the way Service Tax Department Should Work?

A really agitated (he used a much stronger term, which is related to some liquid not very well appreciated in Indian Journalistic jingo) Netizen sent us this.

25 April was the due date for filing of service tax return for the period October to March 2009. My office staff had been to Thane II Division of Service tax Department in Wagle Estate, Thane to file the service tax return on 24 April. He happened to reach the office just around 6 pm. And much to his surprise, he was informed that no service tax returns will be accepted as no officers are working after 6 pm. Please note he reached just on time and yet the doors were closed. Persistent request to meet the officers were summarily rejected on the ground that all officers have left for the day. He was also informed that the Divisional AC has already left for the day. The obvious message was no service tax returns would be acknowledged on Monday the 27 April without penalty.

Isn't this pathetic? All that was required was for someone to acknowledge the service tax return; isn't it? And why pay penalty when Law permits that I can file my service tax return on Monday given that the due date was on a Saturday and Department is not working on the said day. Does it require an expert law analyst or an express Department Circular to inform these officers of the law of the land? Are we into some sort of dictatorship or barbaric rule where a few so called ‘autocratic officers' at the field level decide the way the Department should run. And why cannot the AC rein in these characters (sorry for the use of the language but some in the Service tax Department in the said building that I referred, can only be so referred to). Isn't it a great insult to the Service Tax Department at large and its senior officials at the helm of affairs, who are doing their very best to give it the right reputation? Are these officers aware that they are duty bound to follow the Citizens' Charter?

Not that there are no good officers in the Department who understand their job and do wonderful justice to the trade and to the department alike. A visit to LTU Mumbai and it would be a pleasure to have company, talk and interact with some of the very best officers who really go out of the way to give the right sort of inputs and support to the Trade. And please do not read vested interests to this statement of mine.

I also had the pleasure of interacting with couple of officers from the Central Excise Division from Wagle Estate who were genuinely concerned that the service tax return could not be acknowledged because of the attitude of their brother officers and made the very best effort to at least verbally ensure that all be in place on Monday and were sorry that another visit would need to be made to the office on Monday only to file the returns.

I understand that there cannot be an idealistic situation and we will have the so-called ‘rotten eggs' in the basket. But, shocking is the fact that we are in an age of e-filing and with this sort of attitude and approach and some service tax officers especially at the client interfacing level, whatever remaining power vested with the Departmental officers will well and truly we taken away. And when a respected Departmental officer in TIOL has suggested that powers be given to the Service Tax Department officers to arrest, I shudder to think how these characters in the Department will use (mis-use) them. The response to the article itself speaks volume of the fear psychosis which shows how immature the Department still is when it comes to make appropriate use of the powers rightfully granted by the statute.

The reason for mailing this to TIOL is to get this on DDT, the AC would definitely be informed that there is a piece which refers to his Division and I really want to come back to DDT to inform whether we are penalized for late filing on Monday or otherwise. Hopefully the new Commissioner, DGST will also read this bit. Will some sense and decorum be instilled into these officers? May be even time cannot tell.

ANGUISH or ANGER? Today we are carrying an article from a Departmental Officer suggesting steps to make service Tax more bearable and one of the suggestions is an annual return. See our Guest column.