Publication of names of alleged offenders - Sleuths have no respect for CBEC
AN officer of the high rank of Commissioner has been arrested by CBI and look how they issued a Press Release - The Central Bureau of Investigation has arrested a Commissioner of Service Tax (an officer of 1990 Batch in Custom & Central Excise) of Haldia Commissionerate (West Bengal); his aide (a private person); a Director of a private company based at Haldia (West Bengal) and a courier (private person) related to the said company in an alleged bribery case of Rs. 5 lakhs. See, they have not revealed the name of the Commissioner or his aide or the Director of the Company.
Where CBI fears to tread, the super sleuths of the CBEC rush in.
As per Section 37E of the Central Excise Act, 1944 the Government (not lower level officers) can publish the names and other details of assessees against whom the Department has launched proceedings or prosecution. The CBEC has issued guidelines on how to go about publishing the names in Circular No. , Dated April 19, 2007. The decision to publish or not publish the names will be taken by the Member, CBEC and the actual publication will be done by the Chief Commissioner or DGCEI. Board has also cautioned that these are stringent provisions and may effect the reputation of a person and so should be sparingly used. However Board wants that in deserving cases this power should be used though there should not be any arbitrary selection.
Speaking in the Lok Sabha on 20.8.2004, the Finance Minister said, "I think, one must be careful before branding somebody finally as a tax evader. There is a hierarchy of Tribunals and Courts and only when the last forum is exhausted, we come to a final conclusion; one can say that there is a final evasion of tax." This was in response to request for publication of names of tax evaders.
When TIOL was invited to Parliament to speak to the Standing Committee on Finance, I submitted to the Hon'ble MPs that a mere Show cause Notice does not make anyone an offender and there should be some punishment for the officer who illegally and arbitrarily publishes the names of innocent persons as offenders - maybe the names of offending officers should also be published. There was an interesting discussion on this aspect in the Committee.
But why do some officers blatantly disobey the Board, the Government and the Parliament and issue press statements with names of alleged offenders?
Some time back, there was a Press Release issued by a DC (DD) in DGCEI, which was communicated by a Superintendent (SIO) about the arrest of a Director of a Company for evasion of Central excise Duty. The Press Statement gave the name of the Director and the name of the Company. DDT called up the Superintendent who sent the Press Statement. He was very angry with us for disturbing him. We asked an AD (Additional Director) whether he had the power to publish names of alleged offenders and whether he would like to follow Section 37E and the Board's Circular. He said he would get back to us. Then we spoke to a DD who emphatically said that Section 37E was not applicable and he had given a Press Statement which he had not withdrawn and therefore, that was the final word. I asked him whether I can quote him as saying that Section 37E and the Board Circular are not applicable to him. He asked, "where is the question of quoting me?, My official Statement is not withdrawn and that means I am perfectly legal in my stand; publishing the news is yourwish." I asked him why Section 37E and the Circular were not applicable. He said that is not open for debate. His decision is final as long as the sacred Press Release is not withdrawn.
It is not as if we do not know the name of the Commissioner who was arrested by CBI in Kolkata; even the Gulf News, in distant Dubai carried his name. But the CBI has not published it. Obviously CBI knows the Law and has some respect for it, which unfortunately is not a virtue with the Revenue Department. And if the Revenue wants the name of the alleged offender to be known to the public, it is not difficult - they can leak it to the Press and the modern Press is simply waiting to grab such news. But officially publishing the names of alleged offenders is unpardonable ignorance or despicable arrogance.
In a court of law people are seen to be innocent until proven guilty, but Revenue officers see people as being guilty until proved innocent.
Will CBEC reiterate its instructions in Circular No. , Dated April 19, 2007 and promise to take a serious view if the instructions are not followed?