94337_57923_department_interaction__mnh_july_2013.ppt

7/27/2019 94337_57923_department_interaction__mnh_july_2013.ppt

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C.A Madhukar N Hiregange


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Understanding the bureaucrat

Provisions applicable for non compliance with

law?

Obligations of tax payers? Obligations of department officials?

Powers & duties of department officials?

How to interact with dept. appropriately email,telephone- letters- summons- statement..?

Questions


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Rule based enforcement w/o considering-

-> what lies behind the rule

-> what happens as consequence

-> what methods are used to enforce

just doing ones job

High level- surrender of personal power

Low Level- Anyone questioning their knowledge,

intelligence, ability, morality or judgment is a

threat

10/29/2013


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Under Service Tax law

Section 75 Interest for not depositing tax

amount in time

Section 76 Penalty for non payment of ST Section 77 - General penalty

Section 78 Penalty for suppression, fraud &

collusion


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Under Central Excise law

Section 11AA - Interest for non payment of tax

amount.

Section 11AC Penalty for short/ non payment..

Rule 25 of CER Confiscation & Penalty

Rule 26 of CER Personal Penalty

Rule 27 of CER - General Penalty Rule 28 of CERConfiscated property to vest in

Central Govt.


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Under Service tax law

Section 82 - Power to search premises

Section 91 Power to arrest (r/w section 89)

Under Central Excise law

Rule 22 & 23 of CER 2002 -Power to access to

regd. premises & power to stop and search

Section 22 Vexatious search, seizure, etc.

Rule 24 Power to detain or seize goods


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Section 13 & 18 Section 13 gives power to

arrest and section 18 provides that, arrest

shall be carried out according to Code of

Criminal Procedure, 1898.

Section 9 & 9AA Prosecution against

responsible persons.


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Obligation to be honest fundamental requirement for

operation of tax system.

Obligation to be cooperative voluntary compliance

Obligation to provide accurate information and documents

on time

Obligation to keep adequate records to verify tax / credits

Obligation to pay taxes/ file returns on time


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Shall not disclose any of the sensitive

information learned in his official capacity

Officers to issue SCN before imposing penalty,

demand & arrest

Officers to visit in business hours only


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Search, seizure, prosecute and arrest under

commissioners instructions

Issue summons to authorized persons of thecompany

Detain & give evidences as per CPC

Commissioner has power to appoint CA,CWA, CS for

conducting an audit


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E-MailRecognized in Information Tech. Act 2005. Only ifofficial ID. Maybe used as additional mode or where time short

Telephone - Use this mode as additional as no trace or

evidence of what transpired. Record by way of writtencommunication what was discussed/ understood.

Letters /notices from dept. - Reply to letters within 15 -30 days

under RPAD.


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Letters to dept - Communicate at appropriate time atappropriate levels including giving voluntary initial

declarations. Period of Limitation

Visits by dept. Official or Unofficial? Should be handled by aknowledgeable persons. Put on record what happened by way

of written communication.

Visits to dept. - Record in register kept. Record by way of

written communication with explanations & evidences

provided.


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How & when does the summon process begin? Summons should not be vague/justify the purpose .

Can Summon be avoided?

Can someone be authorized to appear on behalf ofsummoned person?

Ask for time if duration is short and take legal

advice.

Must give correct information.

Give a written statement.

Is summons being misused?

10/29/2013


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It is a statement of tax payer & not that of

department. Be polite, calm but firm.

Statement should be voluntary & not under threat.

No vague statement/ rough figures be given. Use of words I have no idea or I will check & let

you know.

Making note of the questions & answers

given(recorded and not recorded).

Right to ask copy of statement recorded.

10/29/2013


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Proper study of Show cause notice. Note the date of receipt & date of SCN.

Prepare an appropriate reply (Facts, Submissions

containing relevant legal provisions, decided caselaws, circulars and notifications if any)

Only Relevant information (Precise and Concise)

Ensure all the allegations were noted & answered

Supporting Documents (Agreements/work

orders/bills/GAR 7 challans/certificates etc)

Filing of reply including annexures in time.

Acknowledgement10/29/2013


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When to appeal? & Whom to appeal ?

Prescribed form should be used (E.A-1/3, S.T - 4/5)

Contain facts, grounds of appeal, verification &

prayer .

Can Additional facts be submitted at this stage? All the findings of the impugned order should be

countered specifically

Additional grounds/documentation if any required

should be submitted.

Filing of appeal within due date.

C.O.D with reasonable cause.

Acknowledgement.10/29/2013


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10/29/2013

Open to Questions