REPRESENTATION ON REORGNISATION

: CESA/17/2014

Dated : 06/02/2014.

Ms J.M. Shanti Sundharam,

Hon’ble Chairperson,

CBEC, North Block,

New Delhi.

Respected Madam,

Sub:  Cadre Restructuring in CBEC Creation of Commissionerates, Zones   

            Divisions- Reg.

            This is to bring to your kind notice that CBEC has constituted various committees to implement the Cadre Restructuring (CR) proposals. A committee is also constituted for reorganisation of Commissionerates and Zones.

2.         For the purpose of creating new Commissionerates in Central Excise, Service Tax and Customs, a Study Group was formed by CBEC. The Study Group recommended creation of new Central Excise and Service Tax Commissionerates on the basis of Revenue and Number of Assessees. However, for creation of new Customs Commissionerates the number of documents handled was the parameter. Though both the wings belong to CBEC two yardsticks have been applied for creation of new Commissionerates.

3.         As compared to the growth seen in the Revenue collection of Central Excise and Customs, the growth in Revenue collection of Service Tax is phenomenal. The assessee base too has increased manifold. With the given strength of staff and machinery, the department is not able to tap the entire Service Tax Revenue. After introduction of the negative list concept for charging Service Tax, the assessee base will keep on growing further complicating the Revenue collection process.

4.         In the present CR, the said committee is contemplating to arbitrarily merge some Central Excise Commissionerates and form new Service Tax Commissionerates, Audit Commissionerates, etc. Due to such arbitrary move, there is lots of resentment in the staff in Kolkatta, Bhopal, Jaipur, Chennai, Mumbai, etc.

5.         The Revenue Target of Service Tax during the year 2013-14 is Rs.180141 Crore as against Rs.132697 Crore in 2012-13, which is more by about 36%. The target of Customs Revenue for 2013-14 is Rs.187308 Crore as against Rs.164853 Crore, which is more by about 14% and the target of Central Excise for 2013-14 is Rs.197553.95 Crore as against RS.171996.09 Crore, which is more by about 15%. Thus, even CBEC recognises the potential of growth in Service Tax. The collection of Revenue in the VCES scheme has also crossed all expectations.

6.         Apparently, the work load involved in the revenue collection and other related aspects are not properly considered while proposing new Commissionerates of Excise, Service Tax and Customs. Though the Automation in Customs has been in place since so many years, still the parameter for formation of new Customs Commissionerates is on the basis of the documents handled is quite surprising . Whereas, in-spite of minimal automation in Central Excise and Service Tax formations, due to which major part of the work is still manual, proper yardsticks are not applied while recommending formation of new Commissionerates in both the wings.

7.         You may be aware that due to shortage of staff not even 5% of the mandatory assessee’s of Service Tax could be audited. This should definitely ring alarm bells in the Ministry, as we might be risking losing Revenue with every passing day. If the entire Service Tax Revenue is to be tapped and all the assessees have to be brought into the net then the Tax Administration has to be widened to such an extent that it reaches every nook and corner of the country. To achieve this, sufficient number of Service Tax Commissionerates have to be created and these Commissionerates have to be provided with adequate number of staff. The number of new Service Tax Commissionerates proposed in the present CR do not appear to be sufficient enough to deal with this large quantum of assessees. The situation will not be different in Central Excise as well.   

8.         In the ensuing CR the Central Excise and Service Tax Commissionerates are proposed to be increased from 100 to 183 and the Customs Commissionerates is proposed to be increased from 35 to 60. The above proposal to increase the number of Commissionerates in the three formations is not justified as the same does not commensurate to the growth seen in the Revenue, number of assessee and the potential future growth. If the Board goes ahead with the restructuring then it would cause great amount of injustice to the Central Excise and Service Tax departments and would also be damaging to the organisation as a whole.

9.         Therefore, it is our humble suggestion that the concerned Committee be directed to re-examine the proposal to form 25 new Customs Commissionerates vis-a-vis the Revenue growth and quantum of work involved and the extent of Automation. It would not be out of place to mention that a major part of Customs work relating to Export is being handled by the officers of Central Excise. In view of this position, if deemed fit, the number of proposed new Customs Commissionerates be reduced and the same be diverted/allotted to Central Excise and Service Tax formations, to ensure proper balance.

10.       The implementation of CR is badly delayed. However, if few days more are taken for examining the above genuine suggestion then the same may be done in the interest of the purpose of the CR so as to ensure fairness and judiciousness.

Thanking  you                                                                  Yours Sincerely,

                                                                                                                                        

                                                                                                                     A.K. SASMAL

                                                                                       General Secretary

Copy to:

1. Hon’ble Member(P&V), CBEC,New Delhi, incharge of Mumbai Zone; for kind information, consideration and necessary action, please.

2. DGHRD, CBEC, New Delhi, for kind information, consideration and necessary action, please.

3. DG(DRI), New Delhi (Chairman of Re-Organisation Committee for implementation of CR). For information, consideration and necessary action, please.

4. Secretary General AIACEGEO, for information and pursuing the proposal.