CBEC Action Plan to evolve Non-adversarial indirect tax administration
THE CBEC has issued a letter to all CCs and DGs on its action plan to evolve Non-adversarial indirect tax administration. It says that one of the key objectives of the Department is to foster non-adversarial tax administration and initiatives have been taken to simplify procedures to reduce interface between the tax officials and the taxpayers.
The initiatives being undertaken to make the tax administration non-adversarial and taxpayer friendly are:
(i) Punctuality : Officers are advised to maintain the appointed time as indicated in the communications regarding personal hearing/trade meetings and any other interaction with the taxpayers. It may also be ensured that adequate gap in the timings between two meetings be maintained so that there is no undue delay in the subsequent meeting.
Many officers derive pleasure in making people wait - even when their PAs tell them that somebody is waiting, they say, “let him wait”. The Board advises the officers to maintain the appointed time. Who will listen to Board's advice when serious instructions are flouted with impunity? You must teach them that the taxpayer is your boss not your servant.
(ii) Prompt acknowledgement of all letters/complaints/references : It may be ensured that all references/communications received from the trade are acknowledged promptly. To this end, a centralised computerized system for receipt/dispatch of dak may be put in place so that status can also be monitored centrally.
Does the Board do this? And in some offices, they simply refuse to take certain letters!
(iii) Priority processing of representations/communications received from taxpayers : It is the mission of CBEC to administer indirect taxes collection by creating a climate for voluntary compliance and by providing suitable guidance to tax payers. To this end, it is imperative that all communications received from the trade seeking clarifications are attended to expeditiously.
Who is competent to give guidance when the Board itself is the fundamental source for confusion? Some Commissioners are kind enough to give clarifications, but they are so carefully worded that there is no real clarification. One Commissioner extracted the Rule and told the assessee to follow that - as if the assessee had no access to the Rules!
(iv) Regular interaction with the trade-As per the Board's instructions, meetings of the Regional Advisory Committee/Public Grievance Committee/Permanent Trade Facilitation Committee/Open House etc., chaired by the Chief Commissioner/ Commissioner are to be held by the concerned Zones/Commissionerates on a regular basis. In this regard the Board desires that field officers persuade assessees to ensure participation at a higher level from Trade and Industry so that these meetings result in tangible outcomes.
If you remember once upon a time, these meetings were attended by the captains of business, but slowly they realised that it is a waste of time as nobody takes decisions and even the few decisions taken are against the assessees who highlight the problem. Even now some assessees attend these meetings only to be in the good books of the Chief Commissioner and Commissioners.
It is also informed that the Board is in the process of
(v) Simplifying the Registration process to obviate the need for physical visit of the taxpayers to the offices.
Even now, there is no need for physical visit of the taxpayers to the offices - but in practice, the moment you apply for a registration, you are treated as a thief or a goose full of golden eggs in its belly.
(vi) Facilitating online credit of refunds and rebates to the taxpayers.
ACES is said to be fully capable of accepting and processing online refund claims. Why is it not done? I know a couple of assessees who are running around Excise offices for their genuine refunds. How many appeals are pending in the Tribunal in cases of ridiculous rejection of refund claims?
(vii) Easing of Compliance verification norms.
God knows what benefits the assessees will have to suffer.
Board further informs that these initiatives are designed to bring about a more collaborative and solution-oriented indirect tax administration, in tandem with the international best practices.
While the CBEC's lofty goals are praiseworthy, what really will happen in the field does not inspire confidence. Nobody cares for the CBEC instructions in the field - to be fair to them they have equal contempt for the Statutes and the Courts. CBEC instructions are consistently disobeyed and what the helpless CBEC does is to issue another instruction that this blatant disobedience will be viewed seriously and everybody knows that it is an empty threat.
Because of all the simplifications and trade friendly measures, the CESTAT is bulging with over a lakh of pending cases. The Board should teach the officers a little law; a little respect for the law; a little obedience to the higher authorities and a little understanding that they are paid out of the taxes and taxpayers are as important to the country as the taxmen. It should start during probation at NACEN.
CBEC Instruction in F.No.296/165/2014-CX.9, Dated: September 30 2014