CESA MUMBAI.

Central  Excise Superintendents’ Association, Mumbai Unit of AIACEGEO ( Recognized under F. No. B-12017/10/206-Ad-IV A dtd. 21-01-2008 ).    V.A. Kolhatkar, President                    A.K. Sasmal-General Secretary

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Mumbai I,  II,  III, V,  Thane I, II, Belapur, Raigad, Customs Prev,, Service Tax – I & II Comm’te & L.T.U. Mumbai.

Ref : CESA/36/2013

Dtd : 12.07.2013

Ms. Praveen Mahajan

Hon’ble Chairperson,

C. B. E. C., Ministry of Finance,

North Block, New Delhi.

                 Sub :  Short of Office Space – Functioning of LTU & Implementation of the

                           recommendations of Committee dated 11.10.2012 – reg.

Respected Madam,

          The concept of LTU was brought in our country in 2006, by the present F.M. and LTU Mumbai, was created and inaugurated by him in 2009. It started with just 19 and now it has 41 assessees and the request of many had been turned down due to lack of infrastructure including staff. Whatever infrastructure was made available to 19 units is now utilized for 41 units. No provisions / norms have been made to provide sufficient infrastructure or increase in man power to LTU till date as per the OM dated 07.11.2012, except providing few more Inspectors and Superintendents to manage the increased work load. However, if we compare the fact about such multi location units work management prior to joining LTU, for each unit Inspector, Superintendent, A.C./DC/JC/ADC and Commissioner were available at each place but now the same is managed by one or two Superintendents with half Inspector and no supporting staff.

          To have a look and visualize the working of LTU under Income tax administration there is a need that someone has to visit the LTU, Mumbai. 

Kind attention is invited towards Office Memorandum issued from F. No. Dir (Hqrs)/Ch (Dt.)/63/1/2012, Ministry of Finance, Department of Revenue, dated 07.11.2012, wherein details of Review Meeting convened by the Revenue Secretary on 11.10.2012 regarding working of Large Tax Payers Units (LTUs) was circulated along with Annexure ‘A’ containing the recommendations.

          On going through the same CESA, Mumbai observes and brings it to your kind notice the following points which were raised well in advance before the authorities of LTU but it seems that only paper work is done and not the visible implementation of the said recommendations at least as far as the LTU Mumbai is concerned.

1.   The recommendations are related to norms/policies on staffing also but it does not seem from the correspondence or from the approach that it is brought to the notice of DGHRD and the Cadre controlling authority, or even LTU Administration. The said Correspondence is not been endorsed/marked to these authorities itself except the CC/Commissioner of LTU.

2.   Para 2 of the Annexure wherein the issuance of sanctioned strength of LTU be notified, but till date no norms laid down or notification issued except the tenure of the LTU i.e. 2 years, although the LTU concept was introduced in 2006 and almost 7 years are over since then. In Mumbai, the Chief Commissioner, Zone – I, on our request made attempts to fix strength on the basis of request of LTU but other Chief Commissioners refused to provide any staff to LTU from their zones, and the entire burden to feed the staff is on Zone – I causing hardship. Due to this LTU working as well as Central Excise Commissionerate in Zone – I both are adversely affected. It is visible from the fact that in LTU there is no anti evasion wing till date and the audit work is also hampered due to shortage of staff.

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Address for correspondence

Shiv-Gaurav, Flat No. 10, Plot No. 16, Shiv Ganga Nagar, Ambernath (E) – 421 501.

e-mail : sasmal2011@gmail.com Tel. : (0251) 2603806; Cell : 09820950885

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3.   The major humiliation amongst the staff of Central Excise is the discrimination amongst revenue department officers not only in promotions but even in infrastructural facilities provided to staff working under the same roof. Our Group B officers Gazetted, Non Gazetted are sitting in the open along with the supporting staff provided for sundry duties as well as the Ministerial staff whereas in Income Tax side all Group ‘B’ Gazetted officers are provided with fully furnished spacious cabins.

4.   Para 4 speaks about separate Budgetary Authority for LTU, on this issue also the senior officers working in LTU of the rank of even Commissioners feeling humiliated when they don’t have financial powers to have petty stationery items. Financial powers be given to our LTU Commissioner also and budget provisions for LTU be made separately to cater the need of the Staff and Administration.

5.   Even the pay and allowance matters are also delayed and are attended to as burden on the existing staff and on flimsy grounds claims are being tossed up and staff being asked to go and pursue the matter with clerks and other authority.

6.   There is no transfer posting policy for LTU so far and the LTU is virtually converted into dumping ground and transit camp/training center. Within LTU also there is no policy of rotation between sensitive non sensitive.  It is done as per the whims and fancies of the authority. It needs proper transparent, man-management policy and norms of staffing in LTU. Thus the basic motto to provide best service to the tax payers in LTU is defeated.

7.   LTU was considered to be assessee friendly and provide the best services to the large tax payers, but it is not visible as majority of the time fresh recruits or the senior officers who are to be avoided in other branches or to retain in metro city are posted. For hard working officers there are no incentives to work in LTU. The recommendation of granting special pay to LTU staff was very genuine to attract talented experienced staff, was turned down on the grounds of austerity measures, although we achieve the targets of revenue collection and even exceeded in case of service tax. With limited staff they are managing multi location units where as in other cases they have to give pay and allowances to every location staff thus it is saving to the Govt. This is in fact the need of the hour to grant the special allowances as recommended by the Committee at Point No.: 8 of the Annexure.

8.   Apart from the above the Administration is not geared up to make sufficient provisions for space or storing of records or ACES systems and other infrastructural requirement for current situation and for future growth in LTU.

9.   When the department is switching over to Automation mode by introducing ACES and in LTU all major units are having well maintained on line working, therefore in LTU all the modules of ACES be made operational and even report generation and all other work be through systems and the data be accessible to Audit preventive Adjudication, appeals etc. so that office will become paperless office. It will be cost and time saving approach and will be transparent and prompt also.

CESA feel that there is need that on working system of LTU, Authorities to have a look and make it a proper model functioning unit to match with sophisticated technically and legally advanced assessee. In order to improve the working of LTU the implementation of the above referred recommendation immediately and its periodical review is the need of the hour to refurbish the image of the department.

Thanking you,

Encl: As above.

Yours sincerely A.K. Sasmal General Secretary

Copy to:

1.   Hon’ble Revenue Secretary, MOF, New Delhi for information and necessary action please.

2.   Shri. Parthasarathi Shome, Advisor to Hon’ble Finance Minister, Govt. of India with reference to his recent visit to LTU Mumbai on 12.07.2012, for information and immediate action please. Due to heavy rains we could not make our submission on 12^th July before your goodself.

3.   Hon’ble Member CBEC, New Delhi I/c LTU for information and necessary action please.

4.   Hon’ble Chief Commissioner Central Excise Mumbai Zone I/II/LTU Mumbai for information and necessary action please.

5.   Hon’ble Chief Commissioner Income Tax Mumbai In-charge of LTU for information and necessary action please.

6.   The Secretary General AIACEGEO, New Delhi for information and immediate action please.