TIOL-DDT 2749 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body> <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=23157"><img src="http://www.taxindiaonline.com/RC2/image/stories/limca_book2015_1.jpg" alt="DDT in Limca Book of Records - Third Time in a row" width="300" height="148" hspace="5" border="0" align="right" ></a> <p><strong><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT 2749</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br> 21 12 2015<br> Monday</font></strong></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">CBEC finally recognises Puducherry </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBDT</strong> and CBEC have been kind in extending the due dates for payment of tax and filing returns in flood hit Tamil Nadu. DDT had been repeatedly pointing out that the neighbouring Union Territory, Puducherry also deserved similar treatment. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#623094" span="span"><em><a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MjU0MzI=" target="_blank"><strong><font color="#FFFFFF">DDT 2740</font></strong></a></em></font> <font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#623094" span="span"><em>– 08 12 2015 - Puducherry Forgotten by CBEC and CBDT?: </em></font><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT and CBEC have extended the due dates for payment of taxes and filing returns in Tamil Nadu due to the unprecedented floods, but in their anxiety, both the Boards have forgotten the Union Territory of Puducherry, which fzaced an identical calamity. </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DDT hopes the Boards will extend the same concessions to the taxpayers in Puducherry, as was done for those in Tamil Nadu.</font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#623094" span="span"><a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MjU0NTU=" target="_blank"><strong><font color="#FFFFFF">DDT 2742</font></strong></a><font color="#FFFFFF"> – 10 12 2015 - TN Floods - Govt Issues Notifications extending the date for payment of Excise Duty and Service Tax - Puducherry truly forgotten</font></font><font color="#FFFFFF"><font size="2" face="Verdana, Arial, Helvetica, sans-serif" >: </font></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Government has issued the necessary notifications for extending the dates of payment of excise duty and Service Tax for November 2015 in the State of Tamil Nadu till 20.12.2015. </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">We had reminded the Government that neighbouring Puducherry was also affected by the floods, but as of now it has fallen on deaf ears. </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#623094" span="span"><strong><a href="http://www.taxindiaonline.com/RC2/NewsDesc.php?MpoQSrPnM=MjU1MTc=" target="_blank"><font color="#FFFFFF">DDT 2746</font></a></strong></font><font color="#FFFFFF" size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#623094" span="span"> – 16 12 2015 - Income Tax - Last Date for Payment of Advance Tax extended in TN and Puducherry : </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT has extended the last date for payment of December instalment of advance tax for FY 2015-16 from 15th December, 2015 to 31st December, 2015 in case of all the assessees, corporate and other than corporate in the State of Tamil Nadu and Union territory of Puducherry. </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Will CBEC remember Puducherry?</font></em></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now CBEC has included Puducherry, except of course Yanam and Mahe. Yanam and Mahe are two thrown out parts of the Union Territory of Puducherry. Yanam is almost a part of the State of Andhra Pradesh near the Godavari districts and falls under the jurisdiction of Visakhapatnam Central Excise Commissionerate. Mahe is near the Kannur District of Kerala and falls under the Calicut Central Excise Commissionerate. These two places were not affected by the floods and so do not get the extension for duty payment/return filing.</font></p> <blockquote> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg5MzM=" target="_blank"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>1. Notification No. 26/2015- Cex (N.T), Dated: December 18, 2015 </strong></font></a></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg5MzA=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Notification No. 27/2015-Service Tax, Dated: December 18, 2015 </font></strong></a></p> <p align="justify"><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg5MzY=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. CBEC ORDER NO. 02/2015-CENTRAL EXCISE in F. No. 201/13/2015-CX.6, Dated: December 18, 2015</font></strong></a></p> </blockquote> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Cus/CE/ST - Withdrawal of cases pending before HC/CESTAT on basis of earlier Supreme Court's decision on identical matters</font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>BOARD</strong> has decided to withdraw cases pending in High Court/ CESTAT, where Supreme Court has decided on an identical matter and the decision has been </font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#FFFF00" span="span"><strong>accepted </strong></font><font size="2" face="Verdana, Arial, Helvetica, sans-serif">by the Department. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It has been decided that the Committee of Principal Chief Commissioners/Chief Commissioners should call for and examine all appeals filed in the respective High Courts and CESTAT benches falling in their jurisdiction. Whenever such appeals are covered by a Supreme Court decision, which has been <strong>accepted</strong> by the Department, the committee shall by order direct such Commissioner or any other Commissioner to apply in the Appellate Tribunal/High Court for withdrawal of such appeals. </font></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Where is the question of not accepting a Supreme Court judgement? Has the Department a choice of not accepting the Supreme Court judgement? Robert Jackson said of the Supreme Court, "We are not final because we are infallible, but we are infallible only because we are final." Is the Under-Secretary in the Board a more final authority than the Supreme Court? </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">While this decision of the Board is laudable, let us hope the Board's decision is accepted by the Superintendent who is the final authority in the field. While this is laudable, shouldn't they also concede in the cases filed by the assessees where Supreme Court decisions are in favour of the assessees? </font></em></p> <p align="justify"><em><font size="2" face="Verdana, Arial, Helvetica, sans-serif">And what about those cases where appeals have been filed in the Supreme Court on identical matters? </font></em></p> <p><a href="http://www.taxindiaonline.com/RC2/notDesc.php?MpoQSrPnM=MTg5MzQ=" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBEC Instruction in F.No.390/Misc./67/2014-JC., Dated: December 18, 2015 </font></strong></a></p> <p align="center"><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><em><font color="#006600">Only Three ACES </font></em></strong></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>AUTOMATION</strong> of Central Excise and Service Tax (ACES) is the e - governance initiative by Central Board of Excise and Customs (CBEC). It is one of the Mission Mode Projects of the Government of India under National e - Governance Plan. It is a software application which aims at improving tax - payer services, transparency, accountability and efficiency in the indirect tax administration in India. This application is a web - based and workflow - based system that has automated all major procedures in Central Excise (CX) and Service Tax (ST). </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The ACES application was initially rolled - out in the Large Taxpayer Unit (LTU) Commissionerate in Bengaluru in December 2008 and subsequently implemented across India in phases. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ACES application has been designed to function as centralised, web - based, workflow - based system to provide complete end - to - end solutions for covering major processes in CX and ST administration. Users can access ACES from <a href="https://www.aces.gov.in"><strong>https://www.aces.gov.in</strong> </a>website and can choose between ST and CX options. ACES application for CX contains ten modules namely Access Control Logic (ACL), Registration, Return, Provisional Assessment, Claims and intimation (CLI), Dispute Settlement Resolution, Refund, Export, Audit and Report. Similarly, ACES contains eight modules for ST (except CLI and Export).</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CAG conducted an audit of the working of ACES and found that: </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. There was no provision in ACES for selection of returns for detailed scrutiny on the basis of in built risk parameters. Further, no time limit for review of marked returns was inserted in the Return module. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. There was no provision in ACES to upload/attach any documents and also no provision for digital signature. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. The role of legal, adjudication, preventive/anti evasion wing etc., were not mapped in 33 Commissionerates out of 40 selected Commissionerates and also no access provided to Inspector level officials. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#FFFF00" span="span">4. Only three modules (Access Control Logic, Registration and Return) out of the ten modules in ACES are being utilised by the stakeholders. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. A large number of returns for Central Excise and Service Tax are being marked for Review and Correction due to small errors which can be addressed by having proper/strong validations. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. Non - conducting of trainings, seminars/workshops is one of the main reasons for skewed utilisation of ACES. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. Even after five years of implementation of ACES, no post implementation review of ACES was carried out. </font></p> </blockquote> <p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The CAG Recommendations and Board's replies: </font></strong></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. There is a need to simplify the cumbersome procedure adopted in respect of mapping of employees in ACES to save man days that go unutilised during the period of assignment of roles in ACES. One of the methodology that can be adopted to achieve this is to incorporate transfer and posting of employees in the ACES system itself. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#C1DFE8" span="span">Board's Reply: incorporating transfer and posting of officers in the ACES is not possible, as the ACES was not contemplated as a tool to manage Human Resources. </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">2. Provision for complete linking of outstanding liabilities to processing surrender applications may be introduced by making the liabilities available offline a part of ACES. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#C1DFE8" span="span">Board's Reply: the system checks if any amount is outstanding against the assessee as per information available in ACES. Pre - ACES dues in respect of some assessees, who had migrated to ACES and liabilities that occur in the offline mode during Audit or investigation are not captured in ACES. </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">3. In view of Ministry's commitment to grant registration in two days to overcome delay in issue of Registration certificates, prompt completion of Physical Verification must be ensured. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">4. Electronic filing may be made mandatory for compulsory intimations such as Invoice Books and Records maintenance and CLI module may be introduced for ST also so as to ultimately reduce the interface of the assessees with the departmental officers. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#C1DFE8" span="span">Board's Reply: the utilisation of CLI module depends on the assessees and the audit's suggestion for making e - filing of certain compulsory intimations mandatory will be examined by the Board for implementation. Extension of CLI module for ST and development of some modules needing upload of documents may be considered after upgradation of the current infrastructure.</font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">5. Provision may be inserted in ACES at field level for generation of customised reports in general and MTR in particular to minimise manual reporting and the related discrepancies in reports. Since the ACES is under implementation for more than five years, there is a need to revisit/update the systems to make all the modules operational and also generate required MIS from ACES. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#C1DFE8" span="span">Board's Reply: unless completeness and correctness of data in all the modules is ensured, the report generated in ACES will not be complete. The remedy lies in encouraging and convincing the assessees for using all modules of ACES so that relevant data is captured in the system. This may also require Business Process re - engineering in certain areas of work after consultation with the trade. </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">6. In view of a very low/partial utilisation of Provisional Assessment, Export, Refund, Claims and Intimations, Dispute Settlement Resolution and Audit modules by department/assessees, the Department may review the usage of all modules, and take action to identify and remove bottlenecks to make the system user friendly and result oriented. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#C1DFE8" span="span">Board's Reply: as regards usage of the modules, since the usage of many modules have not been made mandatory by Board, there has not been full usage of these modules. After necessary modifications are carried out in the modules, and necessary infrastructure is in place, the usage of the modules will have to be made mandatory by Board, so that the system can function effectively and efficiently. </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">7. Department may make a strategic plan to provide need based and structured training to employees and to conduct awareness seminars for assessees and periodically review the same. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"style="background-color:#C1DFE8" span="span">Board's Reply: The Board agrees with the recommendation of the Audit to widen the coverage of the training programme. </font></p> <p><em><font color="#FF0000" size="2" face="Verdana, Arial, Helvetica, sans-serif">(Source: CAG's Report No. 46/2015) </font></em></p> <p align="center"><em><font size="3" face="Georgia, Times New Roman, Times, serif"><strong><font color="#006600">Even Gods Can't Salvage GST </font></strong></font></em></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CONGRESS</strong> leader Anand Sharma says,<em> "The April 01 deadline for rolling out GST will not be met even if the trinity of Gods - Brahma, Vishnu and Mahesh - descend on earth</em>". </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">So it's final; no GST from April 1 2016. Both Mr Jaitley and Mr. Chidambaram agree that a delayed GST is better than a flawed GST. Maybe a no GST is a better option. I have no idea about high-sounding concepts like Macro Economics, GDP, IGST, GST Council, the value of a vote in the GST Council, Revenue Neutral Rate..., but I know our babus and I am fully confident about their ability to make a thorough mess of GST in the very first year of its possible existence. More people are going to experience the might of Government, more people are going to be the victims of the haughty arrogance of the government servants. And most of the people are going to pay more taxes – in the most complicated ways possible. And our courts will simply crash under the weight of litigation that is going to be generated faster than revenue. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">They introduced Service Tax in 1994 and in the last 20 years, made the laws totally complicated and incomprehensible to the best minds, issued hundreds of notifications, clarifications, circulars, orders, rules, mathematical formulae….. and at every point when some clarity was visible, upset the laws to make them further confusing and complicated. Nearly 30,000 Service Tax cases are pending in the Tribunal. They did not know how to tax construction Sector and Supreme Court had to tell them they cannot collect Service Tax on works contracts prior to 01.06.2007. They amended laws retrospectively in case of Commercial Coaching and Renting of immovable property having failed to draft the law properly. You may have to add a couple of zeroes to the pending cases when GST comes. The taxpayers' woes are going to at least double as they have to satisfy two sovereign authorities, the Central GST and the State GST. The CENVAT Credit scheme, which is already in a mess will simply turn chaotic. What can you expect from people who want to deny you the credit you have already earned, because of some change in Government policy? </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">GST is anyway badly delayed; let us delay it for a few more years and try to have a simple GST, easy to administer and easy to comply with. We must create a new breed of tax collectors who should be taught that they are servants of the taxpayers and not masters. This tax should not be left in the hands of people who have anything to do with in the present tax administration – a whole new department should be created and let there be only one authority/officer for the Central and State GST. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Until then, let the present confusion continue. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Last week, a minister in a State Assembly said,<em> passing a Bill cannot be done as quickly as making a dosa</em>. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Let GST wait, and anyway, what's in it for the common man? More taxes! </font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more <strong>DDT </strong></font></p> <p align="justify"><strong><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a nice day. </font></strong></p> <p><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"> <strong><a href="mailto:vijaywrite@tiol.in">vijaywrite@tiol.in</a></strong></font></p> </body> </html>