CBEC reforms
Lok Satta the Hyderabad based NGO (headed by Dr. Jaya Prakash Narayan who quit the IAS to run this organisation) had conducted two large scale meetings in Hyderabad and Mumbai attended by a large number of Commissioners and Chief Commissioners with the Board Member and Revenue Secretary and the entire CVC along with a few assessees. The agenda:- REFORM INDIAN CUSTOMS AND EXCISE. People with absolutely no clue on how the department worked, gave exhaustive and authoritative speeches on how the department should work. The workshops were to give workable proposals. Now Lok Satta reports that the CBEC has sent an Action taken Report to the CVC. – Just like any compliance report. You are asked to do the impossible and better comply within three days. All you have to do is to report that it is complied with. If you report that it is impossible, you are a bad boy!
Lok Satta Recommendations | CBEC’s ATR | The effect? |
|---|---|---|
Strengthen Legal Cell: The legal cell in the Commissionerates should be strengthened both in terms of quality of personnel as well as infrastructure and logistics support. | Acceptable-Ministry vide letter F.No.201/07/2006- CX6 dated 31.3.2006 has directed D.S.(Legal), CBEC to issue suitable instructions to the field formations in this regard | This is being done for the last fifty years. Some more reports will be sent and everything forgotten. |
Accountability: When a SCN is clearly unsustainable and dropped – full refund of the deposit made before issuance of SCN may be made with interest at bank rate. | Suo moto refunds are being sanctioned in such cases. | Have you ever heard of suo motu ( or is it suo moto) refunds? And what about interest? Not all recommendations need be answered. This is the bureaucratic way of sending ATRs |
Protection of Whistle blowers with time limits for reward disbursal. - Ensuring confidentiality (amendment of preventive manual). Only requirement should be identification of informer by the officer recording the information, at the time of the reward disbursal. In order to take due care to protect the informer, only two identification marks to be recorded at the time of recording information. The sealed cover to be opened only by the disbursing authority. | Already provided. Can be considered. Advance rewards are sanctioned at the beginning of case. Final rewards are disbursed once the case is decided. No time schedule can be given. | What is Can be considered? Will it be considered? Can the CBEC inform how mush advance reward has been disbursed in the last three years? Must be NIL. |
Cars for Auditors: Travel facilities for the audit team should be made available by the department. | Ministry vide letter F.No.201/07/2006-CX6 dated 31.03.2006 has instructed DG (Audit) to suitably instruct the field formation for ensuring transport formation for ensuring transport facilities for internal audit team. | God knows what this means! Will auditors be provided with vehicles? Or will they continue to depend on the victim’s transport hospitality? And what about the transport for AG’s auditoirs? |
No SCN on Audit Points:The practice of issuing Show-Cause Notices as a result of CERA systems reviews, including policy decision/notification should not be followed. - There should be onsite consultation between CAG and assessees and assessees’ views should be recorded. | Ministry vide letter DOC No.201/07/2006-CX6 dated 4 April, 2006 has brought to the notice of the CAG that, to promote voluntary tax compliance, the internal audit teams have been advised to inform the assessee of all the objections before preparing the draft Audit report and that each assessee is given the opportunity to know the objection and to offer clarifications with supporting documents and requested him for such action as deemed appropriate. | Point No. 1 is conveniently ignored. |
The adjudication procedures should be expedited if the assessee file the replies within one month. The order should be issued by the adjudicating authority within 30 days of completing the personal hearing. There must be special efforts to ensure that adjudication is completed within 6 months. | Instructions regarding ‘Call Book’ cases and issue of Adjudication order/Appeallate order after personal hearing have been reiterated vide Board’s letter F.No.201/07/2006-CX6 dated 31st March, 2006. | Yes! instructions are reiterated but nothing happens if they are flouted. In any case the assessee should not be eager for an early order because the first adjudication order is most likely to be against him. Board had in Circular No. 20/92-CX.6, dated 21-12-1992 reiterated, “The Board’s D.O.F. No.223/8/85-CX.6, dated 21-3-1985 had already stipulated a maximum period of 6 months from the date of issue of show cause notice within which the case is to be decided. It may be ensured that, as far as possible, this limit is adhered to.” So this reiteration is 20 years old! |
There appears little justification for difference in rates of interest for delayed payments (13% by assessee) and delayed refund (9% by department). The department is reluctant to concede this. However, CVC may discuss with CBEC and reconcile the issue fairly and equitably. | Policy matter. Even in banking sector different rates prescribed for different purposes. | Can’t policy especially an unfair one be changed? |
We will bring you more of these reforms in the following days.