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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/43/2013
Dtd.:
12.08.2013
Shri Sumit Bose,
Hon’ble
Revenue Secretary,
Ministry of Finance,
North Block, New Delhi.
Ms. Praveen Mahajan,
Hon’ble
Chairperson,
CBEC, Ministry of Finance,
North Block, New Delhi.
Sub: Proposal for conversion of two Central Excise Commissionerates
into Service Tax Commissionerates – reg
Ref: Letter F. No. 137/38/2006 – Service Tax (Part – I) dated 22.07.2013
of Shri Rajeev Yadav, Director Service Tax.
Letter F. No. I/12 – 02/Admn.CCO/MCX – I/2013 dated
25.04.2013 of CC Mumbai, Central Excise Zone – I.
Respected Sir/Madam,
CESA Mumbai, vide
its various representations apprised you about the working conditions in
Service Tax Commissionerates in Mumbai since its inception. It is disheartening
to note that the work and Administration of Service Tax is still functioning on
adhocism mode despite the fact that now almost every service is covered under
Service Tax net resulting in increase of the Assessees manifold. It is a
matter of concern that we are still working on the resources made available to
Excise formation. Not a single premises is hired or constructed to accommodate
the Service Tax Commissionerates. Even
the staff strength is not sanctioned appropriately commensurating the work load
in Mumbai. The impact of this can be visualized by the Tax evasion cases
made by other agencies in Service Tax.
2. The
officers are posted in Service Tax by diverting and disrupting the Central
Excise formation’s work in field, including Audit, specially in Zone – I, which
has not only created work stress but also strong resentment and frustration,
the sign of which can be seen from the untimely deaths and health problems.
Besides, due to frustration and lack of future in career progression VRS route
is adopted by officers.
3. It is learnt from the above referred letters, that a proposal
for conversion of two Central Excise Commissionerates, viz. Mumbai III & V
into Service Tax vide letter F. No. 137/38/2006 – Service Tax (part – I) dated
22.07.2013 Board has
considered the proposal of conversion
of Mumbai – III Commissionerate of
Zone – II into Service Tax- III Commissionerate Mumbai and asked for various
details and modalities to re-organize the Service Tax jurisdiction in Mumbai.
4. In
light of above back ground CESA submits the following for your kind
consideration while considering the proposal for approval:
A. This is known fact that restructuring proposal after
getting final approval from Finance Minister is already under active
consideration and is pending for clearance from cabinet.
B. In the said proposal, in Mumbai, there is already a proposal for 8 Commissionerates of Central Excise
and 7 Service Tax Commissionerates by the Study Group. Though we don’t
agree with the same as in Mumbai there is potential for growth in Service Tax as
the data for CR proposal was furnished five years back. There is need of more
Commissionerates of Central Excise as well as Service Tax than the number of
Commissionerates proposed in the earlier CR proposal. Considering the pace of
growth in Service Tax sector, there is scope of further increase of the
assessee base, thereby necessiting increase in Service tax Commissionerates.
C. As on date there are 8 Central Excise Commissionerates and
2 Service Tax Commissionerates, which is as per the old Cadre Restructuring
proposal itself and there is no scope for the conversion of any Central Excise
Commissionerate.
D. Considering the growth of Service Tax after introduction
of negative list concept, we need more Service Tax Commissionerates than the 7
Commissionerates proposed few years back in the Cadre Restructuring proposal.
E.
As pointed above the approach of Department in respect of
collection and Administration of Service Tax is totally ad-hoc even after 20
years approx.
F.
In Raigad Commissionerate of Zone-II, a separate section
has been created to look after the Service Tax, though the number of assessee
is more than 7000 and the Revenue is about 630 Crs in 2012. This section is
functioning on ad-hoc basis as there is no sanctioned strength of staff, the
existing Assistant Commissioner/Deputy Commissioner are holding additional
charge.
G. Raigad
Commissionerate also functions as a Maritime Commissionerate. However, no
strength of staff is sanctioned even after a lapse of considerable time. As of
now the functioning of Maritime Commissionerate is by squeezing staff from the
already short strength of Raigad Commissionerate. Similar is the case with the
Maritime Commissionerate of Mumbai-III Commissionerate.
H. In fact there should have been norms about creation of
Groups/Division/ Commissionerate in respect of Service Tax as the Service Tax
sector is ever growing in Mumbai. We still remember that earlier such norms did
exist in Central Excise and the number of assessee was the basis. Even in
Income tax, the other wing of Revenue Department also have similar norms
and accordingly ask for infrastructure and staff creation of new wards.
I. Apart from this
frequent dislocation of Central Excise by conversion/ merger etc and again new
creation in CADRE RESTRUCTURING will hamper the working and may not be proper
to do so as the Central Excise Commissionerates in Zone-I are being crippled
with skeleton staff provided as of now and majority staff either on regular or
on loan basis engaged in Service Tax only.
J. Besides, the move to abolish the Commissionerate of
Central Excise is anti staff, because the stagnation in all the cadres is
alarming.
K.
Further, this will give a wrong signal in the field
formation and demoralize the field staff that the Cadre Restructuring is likely
to be delayed for which a temporary arrangement is being made, in the name of
creation and abolition.
L.
Proposal may be made for recruitment for more staff in all
the cadres by ascertaining the present workload as well as expected growth in
future.
In view of the above CESA Mumbai
Suggest:
a. All existing 8
Central Excise Commissionerates be retained and status quo be maintained and
creation of Commissionerate in piecemeal manner be avoided.
b. Mumbai – III Commissionerate is also a Maritime
Commissionerate hence its conversion into Service tax is also not a viable
proposal from the trade point of view.
c. At least sufficient Service Tax Commissionerates be
created with more groups and a cap of number of assessee to be handled by
Groups/Divisions/Commissionerate.
d. Diversion of staff
on loan to any formation be done away and for every increase in work load as
per norms staff and all infrastructure be provided.
e. Kindly make proposal with foresight on long term basis for
field formations as well as the Trade.
f. Kindly give up the
practice of adhocism as it is not in the interest of either trade or revenue or
staff existing in the department.
g. CC, Zone – I vide his order dated 15.07.2013, to
strengthen the Service Tax Administration has reduced 6 Groups each from
Mumbai –I/V/Thane – I/II and diverted 29 Superintendents and 29 Inspectors to
Service Tax – I/II. If the Central Excise Audit can be managed as considered by
the Head of the Zone I, then, to
maintain the uniformity and to spare staff on loan / temporary basis similar
criteria may be adopted in Mumbai Zone – II.
In Mumbai – II Central Excise, there are 14 Superintendents and 12 Inspectors
and in Mumbai – III there are 23 Superintendents and 16 Inspectors, in HQ
Audit. The Audit Groups in Central
Excise Zone II be reduced and the staff may be diverted to Service Tax to cater
the work.
h. In Central Excise Staff is apportioned to M&P from the Commissionerate of
both the Zones. Earlier sanctioned
strength of the Superintendents was 90 and Inspectors was 155. In 2005, when
i. independent Service Tax – I came into existence 26
Superintendents were withdrawn from M & P and their strength remained
64. The staff of Excise provided to M
& P Wing of Customs Preventive Commissionerate not to R & I
Division. However, the staff of Excise are misutilised and 9 Superintendents and
19 Inspectors are posted to R & I Division as well as in CC Unit. As Service Tax needs more staff, 9
Superintendents and 19 Inspectors be withdrawn immediately and diverted to
Service Tax Commissionerate. CESA has already proposed to reduce the strength
of M & P from Central Excise side which may be considered and staff
strength so reduced may also be diverted to Service Tax Commissioenrates.
Lastly the said attempt of abolition of Commissionerate
has created lot of resentment. CESA welcomes the creation of new formation
because it would create avenue for Career Progression of the staff. The number of Divisions be increased from
present 6 to 10 for effective control and monitoring of Service Tax collection.
The Administrative Control of both the Service Tax
Commissionerates presently lies with Mumbai Zone – I, who provides staff to
various deputations and LTU Mumbai from the Commissionerates under its control,
the Zone-I Administration is unable to get staff from Zone – II either for
Service Tax or LTU, though the Service Tax and LTU covers part of the Zone-II
jurisdiction too. Hence it is
suggested that for the time being, for convenience and without any much
disturbance, hindrance to manage the working of Service Tax- II
Commissionerate, the Administrative Control be transferred to Mumbai Zone – II,
so that as narrated above, sufficient staff can be spared from the strength of
Zone – II, till Cadre Restructuring, which all are eagerly awaiting.
Thanking you.
Yours sincerely
A.K. Sasmal
General Secretary
Copy to:
1.
Ms. Lipika Majumdar, Hon’ble Member (Service Tax), CBEC, North Block,
New Delhi. For kind information & necessary action.
2.
Ms. Sheela Sangwan, Hon’ble Member,
CBEC (In charge of Mumbai Zone), North Block, New Delhi. For kind information
& necessary action.
3.
Ms. Shobha L. Chary, Hon’ble Member
(P&V), CBEC, North Block, New Delhi. For kind information & necessary
action.
4.
Hon’ble Director General (HRD), CBEC, New Delhi. For kind information &
necessary action.
5.
Hon’ble Chief Commissioners, Central Excise Zone I & Zone II, Mumbai –
for kind information and necessary action.
6.
Hon’ble Chief Commissioner, Customs Zone-III Mumbai, for kind information
and necessary action.
7.
Hon’ble Commissioner, Service Tax – I, II Mumbai and Central Excise, Mumbai
– II & Mumbai – III for kind information and necessary action.
8.
Secretary
General, AIACEGEO, New Delhi.
