TIOL-DDT 1529 · the untouched capture
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<div align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1529</font><br>
14.01.2011<br>
Friday</strong></font></div>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">The Indian Archaic Service - Most of Civil Servants not Happy with System</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Centre For Good Governance conducted a survey among the officers of the Indian Civil Services, IAS, IPS, IFS, IRS etc. about what they think of the civil services and what could be done to make governance more effective. The Survey has come out with interesting findings which of course every civil servant knows. Many officers who participated in the survey were brutally frank. Here are some views of the bureaucrats on themselves.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Why Revenue Service?</strong> Probationers leaving other central services and joining revenue services or preferring revenue services over even the coveted IAS clearly betrays their intentions.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Poor Quality of Support Staff:</strong> poor quality of support staff is a major factor in poor work environment. It has been suggested by some IFS officers that instead of poor quality support staff from India, who also happen to cost more, the missions abroad should be allowed to hire persons locally on more competitive terms. It is also felt that disciplinary procedures are very cumbersome and lengthy and do not lead to any positive impact on the system in most of the cases.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Top Heavy:</strong> Cadre restructuring in some services has resulted in fewer posts at the support level as higher posts were created by keeping these in abeyance or by abolishing them; and dilution of work content of officers at the higher level with shrunken jurisdictions.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Transfers and Postings:</strong> complete lack of transparency which provided opportunity for political interference and other extraneous factors to interfere with fairness in the system. Suggestions for improvement included independent committee for transfers and postings, performance based postings, stability of tenure as well as proper human resource planning. The ‘politicization’ of postings and transfer was mostly strongly felt in the states as pulls and pressures from local politicians were much more than at the central government level.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Price of Honesty?:</strong> What worries an honest government servant is the prospect of being posted to an obscure post with zero job content or worse a string of such postings as a price for one’s honesty and commitment. Establishment of internal grievance mechanisms, accountability of senior officers and defined transfer policy for each department were suggested as important measures to avoid arbitrary decisions in postings and transfers. It was suggested that transparency could be ensured through open advertisement of deputation posts through online and offline media to invite applications from interested officers.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Postings, transfers, nominations for foreign trainings, deputations to central secretariat, international bodies, etc. should be handled by an independent committee, tribunal, statutory board or the UPSC. Lack of stability in tenure owing to frequent transfers has been a concern as it adversely affected job satisfaction, children’s education, and family togetherness and placed officers at the mercy of corrupt influences. There should be a fixed tenure of at least 2 to 3 years for all civil servants (except officers of suspected integrity) to ensure accountability and maximize their impact on the job.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Inconveniences for the officer’s family have been another major cause for dissatisfaction with postings and transfers.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>No transfer for the sake of transfer:</strong> Officers strongly opposed the idea of transfers for the sake of transfers as it killed the motivation of officers and curtailed their incentive to specialize in a particular field. It was therefore suggested that officers should be allowed to specialize in the initial stages of their service and further postings be planned in consideration of their specialization.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>No Ladies in DRI?:</strong> Female officers felt that they were denied opportunity to serve in sensitive and challenging posts (for e.g. in DRI in Revenue Service). <strong><font color="#FF6633">[It is strange but true; there is hardly any lady officer in DRI, though they have a Lady Boss and the poor Government is not able to find a replacement for her, even though she had been promoted as Board Member.]</font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Training:</strong> Many officers felt that selection for trainings has become biased and prerogative of the seniors. Foreign trainings and programmes in prestigious institutions in the country are limited and are open to few privileged officers.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ACRs:</strong> ACRs have become a routine and meaningless exercise with most officers receiving an ‘Outstanding’ or ‘Very Good’ for enabling easy promotions. Further, superior officers use ACRs to force submission of subordinates or destroy the career of honest and upright officers who do not yield to corrupt influences. Very often, ACRs are not submitted in time and, therefore, serve limited purpose as a regular feedback mechanism. It was felt by many that ACRs are prepared in an arbitrary and opaque manner and that the criteria set in the ACRs were not capable of distinguishing between good and poor performers. However, not all officers are in favour of disclosing the ACRs as they felt that superior officers may give higher grades to non-performers, due to fear of non-cooperation from disgruntled subordinates.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Integrity:</strong> There is a feeling that commitment and integrity are not recognized; and honest and upright officers are sidelined or harassed. It is also felt across all services that value system has eroded because of excessive political interference. There is an urgent need to weed out the corrupt and dishonest officers.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Anonymous Complaints:</strong> In case of services dealing with revenue collection, it is common practice to derail an honest assessing officer by making anonymous complaints against him. Enquiry on baseless allegations itself is a punishment; it does not matter if (s)he is exonerated at the end. It has been pointed out that lure of post retirement assignments is a major reason for spinelessness of the senior civil servants. The system does not distinguish between bona fide and mala fide mistakes. It is felt that those who work are bound to make mistakes and when such mistakes are viewed seriously officers tend to play safe and avoid taking any decisions.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>RTI - Harassment?:</strong> Human rights organizations and commissions deliberately misrepresented cases and unduly harassed the officer concerned. At times citizens and their representatives use RTI to harass them.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Lack of accountability:</strong> One theme that recurred again and again in the comments was the complete lack of accountability of civil servants. Audit objections are dealt with by regularizing expenditure without ever fixing responsibility. In any case officers move from job to job while the audit objections are dealt conveniently by their successors. It has been suggested that Audit Objections should be tagged to officers so that the government has a financial profile of the officer.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IAS vs Non-IAS - The Divide:</strong> The issue of perceived disparity between officers belonging to the Indian Administrative Service (IAS) and other services is considered as a major cause for inter-service rivalry and demoralization of non-IAS officers.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Most non-IAS officers consider it unfair to perpetuate the entry-level advantage of IAS officers (derived from a higher rank in UPSC examination) for the entire duration of the service spanning 2 to 3 decades. Most non-IAS officers resented the hegemony of IAS in all the senior positions in government, which gave them the authority to undertake cadre management and planning of all Services often disregarding the interests of Services concerned.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Non-IAS officers also felt that IAS officers enjoyed a clear advantage over non-IAS officers in remuneration, empanelment, promotions, foreign assignments, housing allotments, and infrastructural facilities. Most non- IAS officers experienced delays in empanelment and promotions compared to IAS officers, often resulting in non-IAS officers being forced to report to IAS officers junior to them.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Many of them feel that it is unfair that the advantage given by scoring a few marks more in the civil services should be carried for the rest of one’s career. If there be only one common examination, many feel that there should be only one service called Indian Civil Service.</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax - Salaries - CBDT Issues TDS Circular</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is customary for the CBDT to issue a circular on deductions, computation, TDS etc. on salaries, every year. The Circular for the Financial Year was supposed to have been issued on 13th December 2010, but for love, money or taxes, the circular was not available anywhere, till yesterday.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The present Circular contains the rates of deduction of income-tax from the payment of income chargeable under the head “Salaries” during the financial year 2010-11 and explains certain related provisions of the Income-tax Act.</font></p>
<p align="justify"><a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/it10cir08.pdf"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT CIRCULAR NO. 8/2010 [F.No. 275/192/2009-IT(B)], Dated: December 13, 2010</font></strong></a></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">CBI Hyperactive against Revenue Officers in 2011</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> New Year is just 14 days old and the CBI had reaped a good catch of Revenue Officers, with perhaps the largest ever trap of Rs. 1.09 Crores against a DGCEI officer. Close on the heels of the one Crore trap in Pune, CBI trainned its guns to nearby Mumbai Customs and registered a case against a CHA and unknown officials of the Customs Department from Additional Commissioner to Preventive Officers. It is alleged that the Customs officers were collecting illegal gratification in the form of cash, electronic gadgets viz. laptops, mobile phones, air-conditioners etc., air tickets for domestic and international travel as well as travel expenses etc. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBI arrested an Income Tax Officer accepting a bribe of Rs. 20,000/- and when they searched his house they got a cash of Rs. 31 lakhs apart from documents for huge properties.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And yesterday, the CBI booked a case against an Assistant Commissioner, Superintendent & Inspector of Central Excise, alleging that they abused their official positions and cheated the Govt. Exchequer by way of preparing anti-dated Panchnama showing the sealing of Gutka Manufacturing Machines on 01.7.2008, thereby causing wrongful gain to themselves and Indore-based Food Processing Firm to the tune of Rs.5,37,50,000/- .</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A colleague asked me what would be the salary of a Superintendent and a Commissioner. I told him it would be around Rs. 60,000 and Rs. 100,000 respectively. He was stunned that officers making so much money still needed to be corrupt!</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The super corrupt officers are all above 50 years of age and the money they want to earn is not for them – it is for the spouse, children, or somebody else – none of whom will accompany them to jail or hell whereever they are destined to go. They should learn from Valmiki!</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Service Tax - Collecting Entry Fee at Airport on behalf of AAI - Amounts to Taxable Service - Supreme Court</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue before the Supreme Court is whether the appellant, who is a licencee, could be held liable for payment of service tax when actually the service provided by them could and should be said to be provided by the Airport Authority of India ("AAI").<br>
The Supreme Court decided this issue yesterday and we bring you this case today. Please see Breaking News.</font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Kerala GST - Tax paid by dealer cannot be refunded to purchaser - Mafatlal judgement pertaining to Central Excise not applicable to KGST - Supreme Court</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue before the Supreme Court was whether the appellant/assessee would be entitled for refund of the tax which was paid by him to the seller, in view of the provisions of Section 44 of the Kerala General Sales Tax Act, 1963 (KGST Act"). One additional issue is as to whether the appellant would at all be entitled to claim exemption under Section 5(3) of the Central Sales Tax Act, 1956 ("the CST Act"), as at the time of sale, the appellant could not allegedly show any evidence that it was the penultimate sale.<br>
<br>
This issue was decided by the Supreme Court yesterday. We will bring you the case on Sunday.</font></p>
<p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600"> – Monday's cases</font></strong></font></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left"><strong><font color="#663399">Central Excise</font></strong></font></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Manufacture - testing equipments captively used - excisable and dutiable - Supreme Court</font></strong></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">FROM</font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> the own admission of the appellant and from the facts brought out from the records it is clearly proved and established that the appellant had manufactured machines in the nature of testing equipments worth Rs. 31.26 lacs to test the final products manufactured by them; Even if such equipments were used for captive consumption and within the factory premises, considering the fact that they are saleable and marketable, duty was payable on the said goods.</font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Are interests earned on FDs with banks and other interests from advances received from foreign tourists eligible for Sec 80HHD benefits? - No, says Delhi High Court
</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue before the Bench is - Whether interests earned on fixed deposits in banks and other interests on advances received from foreign tourists are eligible for deduction under Section 80 HHD. And the High Court's answer is NO.</font></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Service Tax</font></strong></p>
<p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Air Travel Service and Tour Operator Service are input services entitled to CENVAT Credit: CESTAT</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <strong>THE</strong> assessee is engaged in the manufacture of excisable goods falling under chapter 73 & 76 of CETA, 1985 and they are availing <em>CENVAT credit</em> on inputs, capital goods and service tax paid on various input services. The department initiated proceedings against them on the ground that they are not eligible for CENVAT credit on Air travel services and Tour operator services. The lower adjudicating authority confirmed the demand of Rs.33,895/- and imposed equal amount of penalty against the assessee.</font></p>
<p align="justify"><em><font size="3" face="Verdana, Arial, Helvetica, sans-serif"> <strong>Happy Sankranti</strong></font></em></p>
<p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Monday for the Judgements</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <font color="#FF6666">Until Monday with more<strong> DDT</strong></font></font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Have a Nice Festive Weekend.</font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"> Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com"><strong>vijaywrite@taxindiaonline.com</strong></a></font></p>
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