GEAR UP... OR.....PACK UP !!!

We are not content with our accomplishments but will strive & continue to try to achieve finality in all our pending issues.

Seniors, when they become more senior and get placed in North Block, seems to look at it as if they have fulfilled their ambition and nothing more needs to be done by them. 

Now there is a full compliment of Members in the Board, but delivery-wise have failed miserably and needs to be prove not only to themselves but also to their subordinates, that they are not lessor than their idols like Dutta, Gopalnathan, Zutsi, Majumdar, Ms. Shantisundaram, etc.  

  The year 2015 is full of achievements as far as CESA, Mumbai, is concerned. Due to our persistent efforts and all out co-operation from the respective Administrations, we were able to achieve / acquire …..

• 30th floor for LTU-Audit at World Trade Centre, Cuff Parade, Mumbai,
• Three floors at Lotus Building for Service Tax Audit I & II,
• Proposal at final stage for office premises for C. Ex. Audit-II at Vashi in MTNL Bldg.,
• Proposal for office accommodation for ST-V Comm’te. at BKC (erstwhile office premises of Sahara India – approx 70,000 sq ft.)
• Satra Plaza premises at Palm Beach Road, Navi Mumbai for Service Tax VII Comm’te.,
• Proposal in process for office premises for Thane-II Comm’te. at Kandivali,
• Renovation of Churchgate Bldg. interiors is in full swing,
• Renovation  of office premises at Bombay Garage, Laxmi Bldg. and staff quarters at various places, which were in dilapidated condition, is in progress,
• For all these, including office premises at Air India Bldg, Lotus Bldg; and renovations of offices at Dharavi, Mahaveer Jain Vidyalaya, Andheri for Service Tax, CESA is indebted to Shri. V S Krishnan, the then Chief Commissioner, Mumbai, and later Member(ST), now retired, in whose tenure all the staff welfare and improvement of various infrastructure reached its zenith, which can be termed as a Golden Period for Mumbai Zone.
• A mega project, at Kharghar, CIDCO plot (which was almost lost from our possession, re-possessed) comprising of 186 flats for all types with modern amenities are approved by Board as well as approval sent to MBEC for construction. For the said Mega Project credit goes to Ms. Arusha Vasudev, Ms. Deepa Dasgupta, the then Chief Commissioners, Central Excise Zone-II and Shri. Ajit Kumar, the then Commissioner, Raigad.
• Apart from the above there are other proposals, including M&P at Everest Bldg etc, which are in process.
  
  

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As  far as other pressing issues are concerned, their status is as under :-

Promotions : Due to the stalemate raised by Parliamentary Committee, the Board is unable to carry out DPC for promotions from Grp. B  to Grp.A

Several applications are pending before CAT at various places against holding of the Review DPC. Board has filed an application to bunch all the regional applications together before the Principal CAT Bench, New Delhi. Hearing is scheduled for the 08Jan2016 to decide whether to combine all OAs or not.

Due to the CAT cases, no promotions from Insp to Supdt happened. Around 430 posts of Supdts. are lying vacant.

There is massive shortage of Insps. - around 1250 posts are lying vacant. Similar is the status of officers in the ministerial cadre.

Seniority as per Parmar Case : Due to our consistent efforts, in spite of several hurdles, finally Board has agreed on 15/12/2015 that the DOPT has concurred with the CBDT proposal and agreed on the OM dated 7/2/1986. On the same analogy, Board has asked all the CCAs to furnish the details to re-fix the seniority. CESA, Mumbai has filed two applications before Mumbai CAT for re-fixation of the seniority – one from 1986 and another one from 1981. As Board has already concurred with the DOPT's OM of 1986, the positions from 1986 shall be streamlined. But the position from 1981 is to be contested so that the Mumbai Officers will be benefited at par with other zones. Both the applications are listed for hearing on 18-Jan-2016.

M A C P : In our earlier Blog we have carried the details; again we met the Dy. Controller of Accounts, PAO, West Zone, Mumbai and handed over another write-up, as desired, on 23/12/2015. In the said communication it was insisted upon that “to intimate whether the grant of Grade Pay of Rs.6600/- to similarly placed officers can be considered by the CCA as certain PAOs are granting the same to the officers within their jurisdiction.” It was assured that a communication to allow uniformity to prevail will be issued.

M & P : As represented M&P Admn. has agreed to provide vehicle for each circle fitted with beacon and demanded official vehicle (departmental owned) for preventive/Anti-smuggling purposes. Officer has to carry fire arms while conducting NRP/JSP duties. Young Insps. to be posted and not to keep vacant positions which is causing inconvenience in patrolling.  CESA, Mumbai resisted the attempt to hand over minor ports to Customs as our Central Excise officers are more competent, skilled and experienced as compared to Customs.

Vigilance : A large number of officers, from erstwhile Thane-I Commissionerate, who were languishing for want of / delay in the submission of the IO's report. These have been followed-up meticulously by the Association and all the IO Reports have now been submitted to the DA for further action.

CESA, Mumbai is unhappy with-respect-to the quantum of funds allocated under the IT and Medical Treatment Heads. Because of fund constraints various offices are lacking sufficient number of computers which ultimately cost efficiency. Large number of Medical Claims are sanctioned but not paid. Officers are coerced to borrow to meet the emergency expenditures with no alternative. Ultimately, it demotivates the staff and the frustrations increase. 

Within the limitations CESA, Mumbai has tried its best to represent, without any reservations, not only the Supdt. Cadre but all the cadres of Mumbai Zone, whenever any issue emerged, both at the local level as well as the Board level. 

Issues like promotions and irregularity in granting MACP, which is pending at the Board’s level needs action by the All India Body. In 2014, CBEC felt the departure of Ms. Shanti Sundaram madam and in 2015, CBEC shall be missing the presence of Shri. V S Krishnan, who remains as an icon in the heart of every officer, being head of the family.

Before bidding goodbye to 2015, CESA, Mumbai is thankful to one and all who have contributed / participated in our efforts and reposed faith in us. With the same determination, strong vigor and aspirations, CESA, Mumbai welcomes 2016 to bless and prosper all of us.

JAI HIND !!

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ALL THAT GLITTERS IS NOT GOLD

AT THE FAG END OF THE YEAR, ON THE PRETEXT OF WHISTLE BLOWER, AN ATTEMPT HAS BEEN MADE TO TARNISH THE IMAGE OF THE DEPARTMENT. DEPARTMENT SHOULD NOT BE IN SILENCE MODE BUT NEEDS TO BE AGGRESSIVE AGAINST PERSONS WHO MAKE UNFOUNDED ALLEGATIONS AND SHOULD NOT SUCCUMB TO THE PRESSURE  TACTICS OF VESTED INTERESTS. DYNAMIC AND HONEST OFFICERS MUST BE PROTECTED AND GUILTY SHOULD BE DEALT WITH SEVERELY. RULES SHOULD BE MADE APPLICABLE EQUALLY AND UNIFORMLY TO ALL CADRES WITHOUT ANY DISCRIMINATION, FEAR OR FAVOUR. IN THIS REGARD, COPY OF A COMMUNICATION ADDRESSED TO CHAIRMAN IS ATTACHED.

                                                                                                                                                        Ref: CESA/72/2015

                                                                                Date: 29-Dec-2015.

To,

The Chairman,

CBEC, Dept. of Revenue,

Ministry of Finance,

New Delhi

Respected Sir,

Sub:   Request to intervene and to act against those who are tarnishing the image of Department – Reg.

Recently, the Mumbai editions of almost all major newspapers carried a news item relating to the smuggling of gold through Mumbai airport. It is also reported that, the advocate of the accused has written to the Vigilance Dept. of the Mumbai Customs about the malpractices in the Department.

In the news item appearing in the Times of India, Mumbai edition dated 22.12.2015 it is reported that:-

“Meanwhile advocate P. Kalambukadan has filed an intervention application, along with a complaint. He stated that he had complained to the Customs Vigilance about the malpractices in the department at the airport and urged the court to hear his plea along with the case. The court accepted the petition and will hear it with the bail plea (on 04.01.2016)”

In another article, which appeared in the online version of India Today dated 24.12.2015, it was alleged by a complainant advocate that:-

“It appears that a scam is running in Crores of rupees where revenue collectors are working as revenue robbers. Such large scale of revenue is to be proved by an independent agency”.

Such type of allegations and the words used in print media were never so harsh.  Allegations, such as above, certainly dent the image of the Department. In the back drop,  CESA, Mumbai is also referring to a letter dated 10.12.2015, addressed to the Chairman, CBEC, apparently written by one Raghubir Singh, which is in circulation on the social media since the last two weeks.  The alleged misconduct of the senior officials posted at the Mumbai International Airport, if true, is very shocking, disturbing and disgusting.

It appears that the Commissioner and the Addl. Commissioner, currently posted at Mumbai airport, are posted consecutive sensitive/executive posting, which is contrary to the norms of the Department. This needs to be looked into.  Truth should prevail and if any such malpractice, as alleged in the various news items, is noticed, corrective action, not only to improve the system and discipline the officer, but also to ensure safety and national security, as assigned to us, is required to be initiated. Those who are at the helm of administration, and are empowered to judge the right or wrong action of officers, should have a broader and judicious view, rather than safeguarding their own cadre officers, jeopardizing the image of the department. The Administration should come forward and protect the dynamic and honest officers as well as act strictly against those who are indulging / tarnishing the image of the department with vested interests.

In the above context, it may be stated that CBI Mumbai trapped two Superintendents of Service Tax on 02.12.2015 and they were arrested and released on bail later on 07.12.2015. These officers were subsequently placed under suspension and posted outside Mumbai, as their Headquarters. This action is not in conformity with the CCS Rules.  More surprising is the fact that the direct supervisory DCs of these two officers were not even shifted from the same office premises.

In contrast, during the same period, one Joint Commissioner of Income Tax was trapped by CBI in Mumbai, arrested and released on bail later on 21.12.2015. Unlike our officers, the said Joint Commissioner is posted in Mumbai during his suspension period. There should not be two different set of rules for Group A and Group B officers, both of whom are governed by same Conduct Rules, under identical circumstances in the same ministry.

Sir, your intervention is solicited in the matter, so as to maintain the image of our Department and curtail the nexus, if any.

                        Thanking you,

Yours sincerely,

                                                          A.K.SASMAL

                                                                        General Secretary

SOFTWARE DREAMS.... HARDWARE REALITIES...

The above advertisement has been released by the Board in all the major newspapers on the 24-Dec-2015.

Is this in reply to the observations raised by the CAG on the milestones that were not adhered to and to the overall usability and functionality of the whole ACES programme ?

The following table will compare the claims by the Board and the actual ground reality :-

1) e-Registrations - 17 Lakh registrations :-

Module fully functional - the figure of 17 Lakh registrants was already mentioned by the then FM in his Budget speech in Feb-2012, before the introduction of VCES and out of of which only around 7 Lakh registrants are duty paying assessees.

How come the number of Registrants in ACES have not changed even after almost 4 years ?

The Registration module has also not been modified in line with the Notification No.7/2015-CE(NT) dated 01.03.2015. There is no facility to cancel the registration and/or revive the registration as per the new procedure. 

2) e-Filing of Returns - 1.47 Crores Returns have been filed - 100% revenue paid online :-  

Returns filing module fully functional - However the whole purpose of filing returns electronically is lost if the same is not subject to scrutiny & verification by the Range officers & their supervisory officers.

Also the "check" that the next Return cannot be taken up for scrutiny & verification if the previous Return has not been cleared by the concerned AC/DC is a very big stumbling block. 

The divisional AC/DC is also unable to monitor the pendency of RnC at field level, since there is no provision to know the same at his end. Further, the AC/DC cannot see the number of Returns which have undergone RnC during the month or during a particular period. The MIS is completely missing on this count.

Despite the computerization, the amount of duty short paid or not paid by an assessee and the interest to be paid by the said assessee has to be calculated manually. 

3) e-Payment of duty - 100% of Revenue paid online - 3.78 Cr Tax Challans processed :-

e-Payment of all Central Excise and Service Tax duties have been made mandatory to be  done through electronic banking and this module is fully functional.

Total Gross Revenue figures are available through the NSDL website. However, the same is not very user-friendly w.r.t. the amount of duty paid over a period, which has to be calculated manually.

Unfortunately, there is also no breakup of the revenue collected - duty received through self-assessment, duty recovered through Anti-evasion measures, Audit mechanism, Tax arrears recovery, monies as pre-deposit etc., which forces the lower formations to keep track of the same and prepare monthly reports to appraise their senior officers (going upto the Board level) who in turn have no mechanism of verifying whether the figures reported are correct or otherwise.

4) e-Refund / Rebate :-

The module of filing of Refund / Rebate claims electronically through ACES is functional, but the same has not been made mandatory because of which the claims are also being filed manually. 

This increases the interface between the assessee and the Department officials which defeats the very purpose of Automation of services. Also adds to the burden of increased reports that are to be prepared by the lower field formations and the compilation of these reports at the higher levels, as mentioned in earlier point above.
 

It is also a fact that all the refunds/rebate amounts are being credited directly into the assessee's bank account through RTGS/NEFT.

However, there is no provision for bunching of rebate claims of a particular assesee in the Refund module, as such the  work of officers will increase. In order to reduce the work, the bunching provision should be made in the Refund module. 

5) Instant e-Acknowledgement with Unique Identifier /  Unique Identifier to know status of documents :-

This is functional and the pendency status is known to the assessee at any time. 

6) Dispute Redressal :-

The module for Dispute Resolution in ACES is fully functional but not made operational (i.e. not wanting to be used by Senior Officers because of accountability issues, hence discouraging the lower officers from using it).

Famous case of an officer being thrown out of LTU-Mumbai for using the said module for putting up SCNs for approval and the senior officer not being happy about the same.

The Board also does not appear to be very keen about making the usage of this module mandatory for the very same reasons.

Also this is very convenient for the Grp-A officers as there is no track of the quantum of adjudications done by them or the utter lack of it !!

The lower officers are asked to cook-up/manipulate figures to be shown in their adjudication performances report without any mechanism for the figures to be verified and none (upto the Board) being any wiser.

7) 24 x 7 e-Office :-

e-Office (are they referring to the software developed & deployed by NIC ?) is supposed to be used for making an office paperless !!
 

Is the Board sure that they have implemented the concept of a paperless office across all Central Excise & Service Tax offices in India ?

Is the Board themselves following the concept of a paperless office or is it that the advice is meant only for the sub-ordinate offices ?

8) National service desk - 1558 Facilitation Centres in 350 locations :-

Kindly refer to the website (https://www.aces.gov.in/CFC.jsp) wherein it is mentioned that the Board has entered into MOUs with the ICAI, ICWAI and the ICSI for setting up of ACES Certified Facilitation Centres (CFCs) by the members of these organisations.

The Board seems keen to replicate the Customs (CHA) model in Central Excise & Service Tax by roping in these organisations.

But they seem oblivious to the fact that payment to these CFCs by the assessees will in fact increase the cost of doing business and will also decrease the "ease" of doing business in India !! 

9) Export Modules :-

Although the module is available, the use of this Export module has not been operationalised. Due to this, the assessee has to visit the range offices even for obtaining CT-1,CT-2 & CT-3 certificate and also for getting the signature of the Range Officers on ARE-1, although the export is being done under self-sealing.

10) Infrastructure facility at the field level :-

Mumbai, the commercial capital of India, is contributing almost 16% of the All India Revenue in Central Excise  & around 34% of the All India Revenue in Service Tax, but is severely lacking ACES infrastructure.

In Central Excise Zone-I Mumbai, all the four Central Excise Comissionerates (i.e. Mumbai-I, Mumbai-IV, Thane-I & Thane-II) do not have full fledged ACES facility. Similar is the fate of LTU-Mumbai and LTU-Audit. 

In Service Tax, all the Seven Commissionerates, do not have full fledged ACES facility - LAN, WAN and Thin Clients. Moreover, in Service Tax, Officers do not have sufficient number of desktop computers and are forced to share computers. 

All the three Service Tax Audit Commissionerates and the two Central Excise Audit Commissionerates do not have laptop/desktop Computers. Even the Administration does not have sufficient funds under the IT head to purchase the desktops for their own officers. 

Worse, the ACES system is so slow. This may be due to thin clients having only 512 MB RAM instead of having at least 2 to 4 GB RAM.  It may also be due the low-bandwidth lines used for WAN connectivity.

Board has expressed its inability to improve / add to the ACES facility till April-2016.

CBEC while advertising should be truthful about their ability to serve their staff and the trade. 

They are far behind than the State VAT as administered by various States having only one Commercial Commissioner to head the Department.

Kindly refer to the earlier post "Automation of CBEC in CAGs eye" on the 23-Dec-2015, which is totally contrary to the claim of the Board in the above shown advertisement.

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