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/35/2013

Dtd : 12.07.2013

Ms. Praveen Mahajan

Hon’ble Chairperson,

C. B. E. C.,

Ministry of Finance,

North Block, New Delhi.

Sub:-   Office accommodation in pitiable state and acute shortage of space – Reg.

Respected Madam,

            The problem of office accommodation is one of the most pressing problems as well as the most neglected one. CESA, Mumbai has constantly representing on the above issue and recently on 18.06.2013 when Member, Service Tax visited Mumbai Office at Churchgate on 18.06.2013 she was appraised of the situation. Majority of the office premises of Mumbai, Zone-I, are functioning in most in-human working conditions and are on rental basis and the recurring expenditure on rent is so huge and with every passing year it increases substantially.

New Commissionerates/formations are formed in last restructuring i.e. in 2002, and the same are still functioning on ad-hoc basis even after 12 years and fresh restructuring is in pipeline. In 2005 one and in 2010 another Service Tax Commissionerate came into existence in Mumbai and the revenue of service tax in Mumbai alone has crossed approx Rs. 45,000 Crores but still Mumbai Service Tax Offices are functioning on as is where is basis.

Madam, it gives us immense pleasure when we come to know your goodself has inaugurated the new office premises for Commissionerate office at Gurgaon. Definitely it is a proud moment for the staff as well as to the trade. The revenue of Gurgaon is mainly from automobiles units and from the most growing industrial belt. However, in Mumbai, where the revenue is more and the assessee base is maximum the working conditions is totally incomparable and are inversely proportionate (higher revenue, large number of assessee, inadequate staff with poor working condition).

            But the Mumbai Zone, which contributed to the exchequer around Rs. 45,000 Crores in Service Tax and Rs. 37,000 Crores in Excise in last Financial Year, is lacking in infrastructure and the position is deteriorating with every passing day. The estimated growth of another 30% in the current financial year may increase the work load and accumulation of records and the number of tax payers also but the infrastructure is same as provided in 20th Century.

The Office Infrastructure is an asset for the delivery of prompt and efficient service to the tax payers and is directly affecting the efficiency of the organization. But in Mumbai it is in the worst shape. Most of the offices are in dilapidated condition. Even the criminals who are lodged in jail are in better conditions. On our request, the then Chairman, Shri. V. Sridhar visited few places and except some movement to shift office presmises here and there nothing concrete has taken place to address the problem properly. Officers has come and gone but the condition of the office remains the same rather it becomes worst as lately slabs, window pans, ceiling fans are falling on the officers working in the premises.

Last but not the least, even the position of the LTU Office which is the showpiece of the Department has become very grim. The LTU was the brain child of the current FM who had inaugurated it but even he may not like to visit the LTU Office in the present condition.  Space crunch is there followed with insufficient infrastructure, inadequate staff, improper man-management and record keeping.

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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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            Now coming to the point of recurring expenditure on renting of premises due to space crunch we wish to draw your kind attention and to inform that out of the total 52 Office Premises under Zone-I & II, Mumbai  41 are rented premises. As per the Revenue Growth and expansion of Assessee base, Mumbai requires more elegant office space and adequate staff. The present status of the old premises and their rent is shown in Annexure - A & B for both the Zones in Mumbai.

The Annexure enclosed will reveal the position of buildings and its recurring rent, though it is not showing the actual space available to lower staff and for keeping the records and placing other machines etc, but the same can be imagined from the fact that all these buildings were hired when there were only few Commissionerate in Mumbai and the staff was also not more than 1000, whereas now the assessee, staff, records, machinery, revenue everything have increased manifold but the office space is the same since decades. However, for every sanction of Group A posts in newly created Commissionerate formations the space available for field staff is squeezed to provide cabins to Group A Officers. Moreover, though the establishment of PAO is now made independent of CBEC, they are also occupying lot of space for their staff and records in the Office premises and are not trying to have their own offices.

At present we require space immediately to overcome this problem, in respect of
Thane – I & II, Service Tax – I & II and its Divisions, Raigad Service Tax Division and for Customs Preventive (Marine & Preventive Wing) as they are also occupying space of Central Excise in Mumbai – I Churchgate office.

The Chief Commissioner does not have the sufficient financial power followed by severe restrains put by the Board / IFU etc. no proposal of hiring of building has materialized ignoring the real problem of Metro cities in such matters.

There are some projects with the Department and also some land is in possession of the Department but it will take many more years 3-4 years for construction and occupation and even then it may serve the purpose only in few Commissionerates and not all. The Central Excise jurisdiction is vast and offices have to be in the respective jurisdiction for the trade facilitation and proper administration.

We request you to kindly intervene into the matter and resolve the issue by hiring new office premises for which we suggest:

A.   Increase the financial powers of the Chief Commissioners in respect of hiring of buildings in Metro cities to match the rates of Metro cities.

B.   Increase the grants and financial powers of the Chief Commissioners in respect of maintenance/renovation of buildings in Metro cities to match the rates of Metro cities.

C.   Time bound Action plan in such matters with periodical monitoring by senior officers from Delhi.

Thanking you,

Yours sincerely

A.K. Sasmal

General Secretary

Copy to:

1.    Ms. Shobha L. Chary, Hon’ble Member (P&V), CBEC, North Block, New Delhi for favour of kind information & necessary action.

2.    Ms. Sheila Sangwan, Hon’ble Member (P&V), CBEC, North Block, New Delhi, In-charge of Mumbai Zone, for favour of kind information & necessary action.

3.    Hon’ble DG (HRD), CBEC, North Block, New Delhi, In-charge of Mumbai Zone, for favour of kind information & necessary action.

4.    Hon’ble Chief Commissioner, Central Excise, Mumbai, Zone-II for favour of kind information & necessary action.

ANNEXURE - A

            (In Rs.)

Sr. No.	Name of Building	Commissionerate	Monthly Rent	Yearly Rent
1	Madhu Industrial Estate	Mumbai – I (Division & Range Office) & HQ Audit & Prev. of Service Tax – I	3334564	40014768
2	Bombay Garage	Division Office & Commissioners	43605	523260
3	Estrella Battery Compound Dharavi	Division Office of Mumbai – I & HQ Audit & Prev. & Service Tax – II	51556	618672
4	Nav Prabhat Chambers, Dadar	HQ of Thane – I & Thane – II	2171360	26056320
5	Chandrama Building, Kalyan	Division Office of Kalyan – I & II	148078	1776936
6	Ravi Plaza	Range Office of Kalyan - I	77295	927540
7	Abha Building, Kalyan	Audit & Range Office of Kalyan-II	144288	1731456
8	Niharika Building, Kalyan	HQ Audit of Thane – I	70850	850200
9	Bhagwan Dass Mansion, Kalyan	Division Office of Kalyan – IV	161905	1942860
10	Dhyaneshwar Prasad, Kalyan	Division Office of Kalyan – III	221805	2661660
11	Panvelkar Plaza	Range Office of Div. IV	6762	81144
		Thane-II
12	Vasai	Division & Range Office	261243	3134916
13	Bhayander	Division & Range Office	25300	303600
14	Palghar	Division & Range Office	170882	2050584
15	Boisar I & II	Division & Range Office	396774	4761288
		Mumbai-V
16	Mahavir Jain Vidyalaya	Division & Range Office	878360	10540320
17	Takshashila	Division & Range Office	836218	10034616
		Total	90,00,845	10,80,10,140*

(Rupees Ninety lakhs eight hundred forty five only)

(Rupees Ten crores eighty lakhs ten thousand one hundred forty only)

Annexure – A1

Building owned by the Deparment Zone-I

1	Churchgate Office	CC Office, Zone-I HQ of Service Tax-I & II, & space is encroached by M. & P. also despite request the premises is not vacated by the M. & P. and also PAO office.	Own Building
2	Old Custom House	Division-II of Service Tax-I & Review Sections	Heritage Building but not fit for rehabilation.
3	Construction House		Own Building
4	LTU, Mumbai	29th & 30th Floor, Part of 8th Floor, World Trade Centre, Colaba	Own Building
5	Mumbai – V & Commissioner (Appeals)	BKC, Utpaad Shulka Bhawan	Own Building
6	Division VI of Service Tax-II	In Central Excise Building of Mumbai-III of Zone-II	Own Building
7	Division V of Service Tax-II	CGO Complex of CBD, Belapur of Zone-II	Own Building

Annexure – B

Sr. No.	Name of Building	Commissionerate	Monthly Rent	Yearly Rent
1	Piramal Chambers	CC Office of Zone-II, DGST Mumbai & HQ of Mumbai-II	51,56,725	6,18,80,700
2	Polyshan Building	Kurla & Vikhroli Div.	1,30,643	15,67,716
3	Ganges Building	Chembur – I & II & Powai Div.	1,60,974	19,31,688
4	Roop Industry, Powai	Powai Range	1,12,050	13,44,600
5	G. M. Enterprises	Powai & Chembur – II Range	1,96,161	23,53,932
6	Midtown Plaza, Mulund	Bhandup Division	2,49,638	29,95,656
7	Hira-Moti Complex, Mulund	Mulund Division	2,04,528	24,54,336
8	Taloja	Division & Range Office	51,242	6,14,904
9	Tye Brand Building, Khandeshwar.	Khopoli Division	45,724	5,48,688
10	Aiyesha Complex	Khopoli Ranges	40,143	4,81,716
11	Tulsi Niwas	Mahad Ranges	16,620	1,99,440
12	Kale Building	Nagothana Ranges	7,150	85,800
13	RCF, Alibaug	Alibaug Range	2,042	24,504
14	MIDC	Roha Range	1,035	12,420
		Total	63,74,675	7,64,96,100

Note:   Above figures have been obtained from Administration. In most of the cases rent revision is due – which means the total rent would further increase.

Annexure – B1

Building owned by the Deparment Zone-II

1	HQ of Mumbai-III	Vardhan Building, Thane	Own Building
2	Division & Range Office of Mumbai-III & Division Office of Service Tax-II	New Central Excise Building, Wagle Estate, Thane	Own Building
3	HQ of Belapur, Division & Range Office. Alibaug and Mahaad Division of Raigad Commissionerate. Commissioner (Appeals)	CGO Complex, Belapur	Own Building
4	Raigad Commissionerate	Excise & Customs Complex, Khandeshwar, Navi Mumbai	Own Building