Rajasva Gyan Sangam to Karma Sangam

Despite the fact that 92% of Direct tax is collected without any effort or inspite of the officialdom, and almost 98% of the Indirect tax collection is happening without any interference from the CBEC, there is so much euphoria on “raids”, “preventive”, “anti-evasion”, “EA 2000 audit” etc., all of them put together contributing just about 2% to the “Consolidated fund of India” after much litigation/harassment and all other means.
Meaning of RAPID as of now:
R for Revenue but actually in the field it is “Rigidly revenue biased” and “Retrospective amendments” against a HC or SC decision.
A for Accountability but actually in practice it is “Accusations/allegations without limitation even after you are audited each year under EA 2000 and also by CAG”.
P for Probity but in practice this is “Preventive” raids, “Pre-determined adjudications” and “Pointless litigation” by not accepting the decisions of the CESTAT, HC and even SC.
I for Information but in practice it is “Inquiry”, “Insensitivity” and “Incursion”.
D for Digitization but what it actually mean is “Demand”, “Difficult provisions” and “Deemed tax evader”.
1. What is needed is time bound adjudication, no show cause notice should be issued after normal/initial period of one year or now amended to two years, as the tax payers are subjected to audit/visits/verifications each year. Therefore, there is no reason to go beyond normal period. Who stops the field officers from scrutiny and other means of risk analysis?

2. Accept with grace the decisions of the higher courts on simple matters like availability of Cenvat Credit on some items and services as ultimately Cenvat credit disallowance add to the cost of the product and put cascading effect.

3. If any show cause notice is not adjudicated within the specified time of 6 months, it should be deemed to be dropped automatically and the officers should be accountable to this?

4. Remove all permissions to intimations as the true self removal procedure. Actually it does not serve any purpose whether it is permission or intimation?

5. Remove revenue neutral provisions like addition of free supply goods or tools etc., i.e. “tools/die amortisation cost” for the intermediate suppliers and take a “declaration” from the principal manufacturer/OEM on the lines of declaration taken in case of job-work under Notification No. 214/86-CE.

6. What is the purpose and use of “factory stuffing permission”? Makes no sense of purpose?

7. Why permission for removal of goods from job-workers premises should not be changed to an intimation under Rule 4 (6) of the Cenvat Credit Rules?

8. Remove partial reverse charge and put them under full reverse charge in service tax.

9. Remove condition of payment to the service provider for availing Cenvat credit and reversal of credit after a certain period of time.

10. Create ACES fully functional and there should be an interface where tax payers can put difficulties as well as file letters, replies, and all the intimations etc., online.

Arbind Aggarwal

Schneider1 Schneider1 17/06/2016