Write-off of irrecoverable arrears - CBEC wants action - Rs. 1,83,587 crore arrears
CAN you believe it, there are 1,61,112 cases of write-off, involving an amount of Rs. 1,83,587 crore pending in the CBEC zones?
Chief Commissioner and Commissioners are empowered to write-off irrecoverable amounts of Indirect Taxes upto Rs. 15 Lakh and Rs. 10 lakh respectively. With a view to facilitate and expedite the cases pending for write off of arrears, the Board had issued instructions vide Circular no. 947/07/2011 dated 01.06.2011 (F.No. 296/10/2009-CX.9) for constitution of committees to examine the proposals for write-off of irrecoverable arrears. While the Committee of Chief Commissioners is to be constituted, on receipt of proposal from the zones by the Board, the Committee of Commissioners is to be constituted by the Zonal Chief Commissioner, as and when necessary, on the basis of request of the Jurisdictional Commissioner.
While no proposal to constitute a Committee of Chief Commissioners has been received from any zone, most zones have not constituted the Committee of Commissioners for this purpose, except a few sporadic cases.
As the number of cases of write-off as well as the amount involved therein is substantial and since the competent authorities are not exercising the powers delegated under the Rules to this effect, Board requests the zones to identify the cases for write-off of arrears by the competent authority and constitute the Committee or forward the proposals to the Board, for this purpose.
DDT 868 19-05-2008 had reported an interesting conversation on arrears.
A young Deputy Commissioner was forcefully telling his Commissioner that the arrears are not recoverable and should be written off. The Commissioner wanted to show the arrears under "persuasive action". The Deputy Commissioner said no amount of persuasion can recover the arrears and why can't the Commissioner write off the arrears. The Commissioner told the young Deputy Commissioner, "you will understand why I can't write off the arrears only when you become a Commissioner; for now show them under persuasive arrears.
Individually no officer in the Department would like to write off arrears for fear of Vigilance perhaps, even though they know that the arrears cannot be recovered.
CBEC Letter in F.No. 296/65/2016., Dated: March 23 2016