CBEC officers & other employees associations call for judicial scrutiny of cross-empowerment under IGST
By TIOL News Service
NEW DELHI, JAN 27, 2017: THE members of IRS Association, members of Supdts. Association, members of Inspector's Association and members of Ministerial Officer's Association of Central Excise held a joint meeting yesterday and resolved:
++ to emphasize that 'Strong CBEC - Strong G.S.T - Successful GST - Strong India.'
++ to work jointly for successful implementation of GST and betterment of career prospects.
++ the decision of dividing assessees and cross empowerment of IGST should face judicial scrutiny.
++ reiterates it's commitment for successful roll out of Goods & Services Tax (GST) in the country and for achieving the objective of: One Nation, One Tax & One Market. Officers of our service have made significant contribution to the GST process and continue to do the same. However, the decision dt. 16-01-2017 has caused widespread anguish and discontent in whole of central indirect tax administration consisting of Group A, B and C officers.
++ a decision has also been taken for cross empowerment under IGST. All the service members are highly disappointed and feeling cheated over the decision apparently taken under state officers' associations' pressure. The biggest tax reform of the century should have been in conformity with the principles of responsibility and authority going together and also in conformity with the constitutional design. The decision shall weaken the centre's ability to ensure its revenues. The decision will not only adversely affect the career of revenue officers but it is not in national interest. The Centre should review the inappropriate and incorrect decision.
++ The Centre's power to levy and collect any kind of duty within the territorial waters of the Country should be exclusive domain of centre and collection being the exclusive domain of CBEC. Accordingly, the State should not be given any power to levy and collect tax within the territorial waters. The area in sea (territorial waters) upto 12 nautical miles from the Coastline falls within the territory of India. As per the Constitutional provisions this area in territorial waters is not included in the territory of any State of India. The High Seas transaction are already subject to Customs clearances and other duties of Customs are levied in lieu of Excise and VAT then why State should tax such transactions again when Customs would already impose IGST. It would only give rise to harassment of EXIM trade. Therefore, the powers to tax transactions in the territorial waters upto 12 nautical miles should vest with the Union Government. Therefore the rights to collect IGST and CGST either in the boundary of the States or area in territorial waters upto 12 nautical miles from Coastline should constitutionally vest with the Centre, and should be exercised by CBEC officers only.
++ IGST is a destination based tax. Whatever IGST is collected will be going to the destination state. Under IGST Act, based on place of supply rules the supplier will be paying IGST to Government. If State governments are cross empowered to collect IGST, it will be the origin state which will collect IGST. Audit and Detailed Scrutiny of such IGST transactions will be done by origin state for taxes due to destination state. Again what incentive is there for State Govt officers to spend time in audit and detailed scrutiny of IGST transactions which don't generate any revenue for them. Cross empowering State Govts. will lead to complications about jurisdictions when state disputes whether something is inter-state transactions or not. In present proposal, CBEC officers will be the final authority to resolve the same. It is easier said than done. Trade will suffer delays / uncertainty in the whole handing off from state to central government officers which is detrimental to business. As per the constitution only government of India is empowered to levy and collect IGST. Accordingly we strongly opposes this move of weakening of centre by transferring of rights or allowing levy and collection of IGST to States.
++ Administrative structure should also take note of parity issues with regard to officers selected through UPSC and State PSCs, and amicably position them in administration hierarchy. Moreover Supdts., Inspectors and Ministerial Cadre suitably be placed on proper parity.
++ No Customs Day Celebration on 27th January at any place;
++ observe Black Day by wearing Black Badges on 30th January on Martyrs day.
