CESA Mumbai in its various representations has taken up the
issue of automation of our department with Chairman, CBEC, i/c Members of
Central Excise, Service Tax, P&
V, Systems, i/c Member of Mumbai zone,
as well as submitted our representation to CERA
during their inspections in service tax Commissionerates of Mumbai.
Several Members of the Board visit and hold meeting periodically in Mumbai as well as in Delhi
with Chief Commissioners and
Commissioners but the very important item of work i.e. satisfactory functioning
of ACES, whenever brought to their notice, are tactfully avoided.
We are pleased that majority of our suggestions have been taken
note of and referred to by the CAG in its report on Automation of CBEC and their suggestions to improve the system has been tabled in the Parliament
on 18.12.2015. Summary of the same are as under:
“Executive
summary
We conducted the Performance Audit to seek an assurance whether
the objectives of Automation of Central Excise and Service Tax (ACES) framed by
the department have been achieved. We also examined the extent of utilisation
of ACES in the field formations of the Board. The Performance Audit was
conducted in 40 selected Commissionerates apart from the office of the
Directorate General of Systems and Data Management.
The Performance Audit revealed certain inadequacies both of
system as well as compliance issues relating to the working of ACES.
a. There was no provision in ACES for
selection of returns for detailed scrutiny on the basis of in built
risk parameters. Further, no time limit for review of marked returns was
inserted in the Return module.
b. There was no provision in ACES to
upload/attach any documents and also no provision for digital signature.
c. The role of legal, adjudication, preventive/anti
evasion wing etc., were not mapped in 33 Commissionerates out of 40 selected
Commissionerates and also no access provided to Inspector level officials.
d. We observed that only three modules
(Access Control Logic, Registration and Return) out of the ten modules in ACES
are being utilised by the stake holders.
e. We observed that a large number of
returns for Central Excise and Service Tax are being marked for Review
and Correction due to small errors which can be addressed by having
proper/strong validations.
f. We observed that non-conducting of
trainings, seminars/workshops is one of the main reasons for skewed utilisation
of ACES.
g. We observed that even after five years
of implementation of ACES, no post implementation review of ACES was carried
out.
Summary of Recommendations
1. There is a need to simplify the
cumbersome procedure adopted in respect of mapping of employees in ACES to save
man days that go unutilised during the period of assignment of roles in ACES.
2. Provision for complete linking of
outstanding liabilities to processing surrender applications may be introduced
by making the liabilities available offline a part of ACES.
3. In view of Ministry’s commitment to
grant registration in two days to
overcome delay in issue of Registration certificates, prompt completion of
Physical Verification must be ensured.
4. Electronic filing may be made mandatory
for compulsory intimations such as Invoice Books and Records maintenance and
CLI module may be introduced for ST also so as to ultimately reduce the
interface of the assessees with the departmental officers.
5. There is a need to revisit/update the
systems to make all the modules operational so as to generate required
Management Information System from ACES, given that ACES is being implemented
for more than five years.
6. In view of a very low/partial
utilisation of Provisional Assessment, Export, Refund, Claims and
Intimations, Dispute Settlement Resolution and Audit modules by
department/assessees, the Department may review the usage of all modules, and
take action to identify and remove bottlenecks to make the system user friendly
and result oriented.
7. Department may make a strategic plan to
provide need based and structured training to employees and to conduct
awareness seminars for assessees and periodically review the same.”
