FM's ATTENTION TO DISCARD TRADITIONAL MODE AND ADOPT AUTOMATION & ACCOUNTABILITY

On Tuesday, 14-July-2015, the Union Finance Minister, Shri Arun Jaitley, clarified the difference between "Service Tax" (imposed by the Govt.) and "Service Charges" (as charged by hotels and restaurants). Some of the consumers have a mis-apprehension that "Service Charges" are being collected by the restaurants on behalf of the Govt. as tax.

As the Hon'ble Minister is concerned about the notion & apprehension on tax :- his attention is invited to the prevailing practice in the Department in the manner of holding MCMs, confirmation of Audit objections, detection of defaulters, issuance of SCNs by the same authority, thereafter, using their quasi-judicial adjudication power, reducing the charges/duty or entirely dropping of the SCNs.  The matter does not end here - there is slackness in following up of cases pending with Commr(Appeals), CESTAT, High Court & Supreme Court. No one even bothers to go and brief the Dept. Counsel, except sending officers at the Supdt./Insp. level for formality sake.

Recovery of recoverable tax arrears is another saga which is increasing day by day. 

Officers come & go but do not dare to recover. Their ACR/APAR do not take these parameters into consideration for judging their performances.  Further, deliberate attempts are being made by the senior officers to scuttle the automation through ACES. For example - issuance of SCN which consumes a large amount of man-hours and effort (incl. expenses for travelling from field office to HQ) on getting the same approved, is not being done on ACES, so as to protect and avoid responsibility of the senior officers.  The stress levels of the Inspector and Supdt. are increasing due to the senior officer's reluctance in using ACES, as the blame ultimately falls on the Inspector/Supdt. for late submission/non-submission.

As the Hon'be FM has shown concern in a small matter and given clarification, it is now the right time to step in and tighten the procedures followed currently. 

Firstly, to make it compulsory for use of ACES while issuing SCNs and adjudication orders. 

Secondly, tracking of recoverable arrears should be through ACES only. Then only the Board can generate independent reports from ACES and effectively monitor these parameters, which will increase the efficiency of the collection of indirect taxes and nothing will remain in dark. These two reforms should form part of the parameters used for judging the performance of the senior officers.  

Also, adoption of the use of ACES will help the Department to move towards the target of using less paper and ensuring a hassle free atmosphere. 

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