LTUs - Has Degeneration Started?
LTU (Large Taxpayers Unit) is a self-contained office to provide single window facilitation to taxpayers who pay direct and indirect taxes above a threshold limit. This office would deal with Central Excise/ Service Tax/ Income Tax/ Corporation Tax issues of all units holding a single PAN. It also provides certain tangible advantages (such as duty free movement of goods across the different units/ premises of a PAN holder, transfer of credit amount from one such premises to other); to ensure time bound disposal of refund claims and dispute settlements; and to follow single set of simple procedures for all units.
The underlying commitment is of providing better service to the taxpayer, through personalized attention, quality of service, transparency in transactions and cordial atmosphere. This will reduce tax compliance cost, reduce delays and ensure uniformity in the matters of tax/ duty determination .
These were the lofty goals with which LTUs were established in the Metros amidst great fanfare. But there was really no quality selection of officers. Some sincere officers slogged to make the LTUs relevant and useful but slowly things have started degenerating. The paint is peeling off and the dirty side is showing up.
Recently we received a mail from a concerned Netizen about the pathetic affairs in one of the LTUs .
++ Generally there is no officer in the Central Excise Area till 11.00 A.M. that too on only some of the desks, even the person supposed to receive the DAK is not available on the desk. And in the evening also the scene is no different.
++ The officers (basically Inspectors and Superintendents) are clueless of the basic Central Excise Procedures as either it is the first time they have been posted in Excise (earlier most were with Customs) or the inspectors are promoted from the LDC level and in some cases the fresh recruits.
++ As per LTU process as soon as the consent is accepted/granted the LTU office is supposed to write to the erstwhile jurisdictional authorities for transfer of records/files but in one such case this correspondence is yet to be sent even after 2 months.
++ It has become difficult to get a Bond accepted as the Inspector and the Superintendent had not seen this form earlier and they do not know what to do with it.
He mentioned several other technical issues which are not being addressed in the LTU.
I personally had a pleasantly different experience when I visited the Bangalore LTU, nearly a year ago. The office had a corporate look and even the toilets were incredulously clean. (In fact when the then Finance Minister P. Chidambaram inaugurated the LTU, he specifically mentioned about the cleanliness of the toilets). The officers were very courteous and the dynamic Commissioner who headed the Central Excise wing was the perfect leader passionately in love with the LTU concept. Not that there were no problems in Bangalore LTU, but every problem was addressed and not always with great success, but there was a sincere attempt for an amicable solution.
The success of LTUs depends purely and wholly on the calibre of the officers posted there and the Board should ensure that only top quality officers are posted to the LTUs . But why should top quality officers work in LTUs without any incentive? Now good officers work in the CESTAT, LTUs , some Directorates and even the Board office only for the incentive of working in a particular city. They have to get something more. Maybe they should all get double the salary.