Trade Facilitation - Revenue Ishtyle
DDT piece on 'Facilitation' yesterday, as expected drew mixed reaction. Some Revenue officers were very angry for the uncharitable criticism of Revenue's measures while many assesses and consultants were appreciative. Perhaps there is some difference in the language of Revenue and others. The word facilitation is understood by Revenue to be something that would help them in collecting more revenue by means, not always honourable or legal. The rest of us understand it in a different way.
Yesterday the Finance Ministry released its annual report for 2013-14 and the report mentions the draconian Circular No. dated 01.01.2013 as a trade facilitation measure. Let me quote from the report:
9.4.4 Trade Facilitation Measures
CBEC has been constantly undertaking both legislative and administrative measures at simplification and trade facilitation in keeping with its policy objectives.
Some of the recent changes include:-
9.4.4.1 Central Excise:
• Circular No. dated 1st January, 2013 was issued to bring about uniformity and certainty in the measures to be taken for recovery of confirmed demand during pendency of stay applications.
If you remember this is the draconian circular which made almost all the assesses scamper to the nearest lawyer/CESTAT Bench/High Court and which mandated that even if the Stay Application is pending with the Commissioner (A)/Tribunal or a Court, the Department should recover the confirmed demand. This single circular produced thousands of cases in the Tribunal and High Courts and virtually every High Court quashed it or stayed its implementation. I know several lawyers who bought swanky new cars with the fees they earned out of this circular. And perhaps the Government did not realise a single rupee out of this circular which must have cost the assesses a fortune.
And this they proudly call "Trade Facilitation" in their Annual Report. That is why I said, "Beware of more facilitation".