Govt Vs Govt
POSTAL Dept Prevented from Paying Service Tax by Revenue Department - Board Frowns
As per Rule 6(2) of the Service Tax Rules, 1994 while every assessee is required to pay service tax electronically through internet banking, the jurisdictional Deputy/Assistant Commissioner, may, for reasons to be recorded in writing, allow the assessee to deposit service tax by any other mode.
CBEC is informed by the Department of Posts that some Deputy/Assistant Commissioners are not allowing them permission to pay by cheque.
Board has taken a serious view of such refusals to exercise discretion, even in deserving cases.
Board informs that the Department of Posts has been refused permission by the Controller General of Accounts to open a current account, which would have enabled electronic payment. Under the circumstances they can make a payment by cheque only.
But the learned Deputy Commissioner would not allow payment by cheque. So, how does the postal department pay the tax? No way!
Board tells the Commissioners and other senior officers:
1. The assessee in question is a Government department and the question of jeopardy to revenue cannot exist. |
2. Refusing to give them permission amounts to expecting them to comply with the law while simultaneously preventing them from doing so. |
3. The purpose of giving discretion in the law gets defeated. |
4. Whether it is the Department of Posts or any other assessee, it is directed that the discretion vested in the jurisdictional Deputy/ Assistant Commissioner under rule 6(2) of the Service Tax Rules, 1994, should be exercised judiciously and rationally. |
5. The supervisory officers should, from time to time, check such exercises of discretion so that there are no unwarranted refusals. |
This is the attitude of some Revenue Officers; they wouldn't mind sacrificing even revenue, for procedure. And they would never like to use their discretion even if it means foregoing revenue.
I tremble at the prospect of a GST regime with these officers.
By the way, why can't the Controller General of Accounts relax the conditions at his end and allow the Postal Department to open a Current account so as to enable the Department of Posts to pay such taxes electronically and also engage in electronic transactions rather than not going green & spending a fortune on printing of cheques?
CBEC Instruction in F.No.137/08/2013-Service Tax., Dated July 22, 2016