GIST OF CADRE RESTRUCTURING PROPOSALS

GIST OF CADRE RESTRUCTURING PROPOSALS

• MOST STAGNATED GROUP “B” CADRE IN INDIA IS WORKING UNDER CBEC

– A PERSON JOINING AS INSPECTOR IS GETTING ONLY ONE FUNCTIONAL
PROMOTION DURING APPROXIMATELY IN 35 YEARS OF SERVICE.
• 1976 DR INSPECTOR OF CENTRAL EXCISE NOT YET PROMOTED AS
ASSISTANT COMMISSIONER – ONLY ONE FUNCTIONAL PROMOTION IN 34
YEARS.
• AS CLAIMED IN THE PROPOSAL THE STAGNATION IS NOT LIMITED TO
GROUP “B” ONLY. THE HIGHLY PITIABLE THING IS THAT GROUP “A” IS
ALSO MOST STAGNATED AS THEY TAKE 21 YEARS TO REACH
COMMISSIONER. (I.E., AN OFFICER JOINING AS ASSISTANT COMMISSIONER
IS TAKING 21 YEARS TO REACH COMMISSIONER WHICH MEANS HE IS
GETTING ONLY FOUR PROMOTIONS IN 21 YEARS)
• REVENUE REALIZED 1.38 LAKH CRORES (2002-03), 2.49 LAKHS (2009-10), 3.15
LAKH CRORES (2010-11 PROJECTED)

NORMS FOR CREATION OF COMMISSIONERATE:

• CENTRAL EXCISE– 1750 CRORES (PLA + CENVAT). NORMALLY A

COMMISSIONERATE WILL HAVE 5 DIVISIONS AND 25 RANGES. A
COMMISSIONERATE NOT COVERED BY EXCLUSIVE SERVICE TAX
COMMISSIONERATE WOULD BE PROVIDED WITH THE STAFF ALLOCATED
TO ONE DIVISION EXCLUSIVELY FOR SERVICE TAX.
• SERVICE TAX – 3000 CRORES OR 17500 ASSESSEES. (5 DIVISIONS AND 25
RANGES)

NORMS FOR CREATIONS OF ZONES:

• ONE ZONE FOR EACH SET OF THREE EXECUTIVE COMMISSIONERATES

• EACH CENTRAL EXCISE & SERVICE TAX ZONE IS PROPOSED TO HAVE ONE
COMMISSIONER (AUDIT) AND ONE COMMISSIONER (APPEALS). EACH
CUSTOMS ZONE ONE COMMISSIONER (APPEALS)
• AUDIT TEAMS UNDER COMMISSIONER (AUDIT). AUDIT TEAM IS TO BE
HEADED BY AN ASSISTANT COMMISSIONER AND COMPRISING OF TWO
SUPERINTENDENTS AND TWO INSPECTORS.

NORMS FOR REORGANIZATION OF CUSTOMS COMMISSIONERATES.

• 125000 BILLS OF ENTRY FOR IMPORT COMMISSIONERATE, 200000 SHIPPING

BILLS FOR EXPORT COMMISSIONERATE, 150000 SHIPPING BILLS AND BILLS
OF ENTRY FOR INTEGRATED CUSTOMS COMMISSIONERATE
 • DGRI, DGCEI, DG (VIGILANCE) & DGICCE TO BE STRENGTHENED BY
CREATION OF FOUR REGIONAL DIRECTORATES GENERAL OF EACH OF
THESE DIRECTORATES. SIMILARLY NACEN IS TO BE STRENGTHENED BY
CREATION OF FOUR REGIONAL ACADEMIES.

Zones/Commissionerates Existing Proposed to be created

C.Ex., S.Tax Zones 23 45
C.Ex., Commissionerates 93 119
Customs Commissionerates 5 9
Service Tax commissionerates 7 22
Audit Commissionerates 0 45
Commissioner (Cadre Control) 0 15
Commissioner (Appeals) 57 45
Customs Zones 11 20
Customs Commissionerates 35 60
Commissioner (Cadre Control) 0 4
Commissioner (Appeals) 8 20
Directorates General 13 13
Commissioner Headed Directorates 5 4
Commissioner Cadre Control in 0 2
Directorates
Commissioner (Adjudication) 7 7
Commissioner (CBEC) 6 6
Commissioner (Settlement Commission) 4 4
Chief Commissioner (LTU) 0 3
Commissioner (LTU) 0 5

Each of the Central Excise and Service Tax Zones would have one Commissioner (Audit) and
one Commissioner (Appeals).

PROPOSED TO CREATE 20 CUSTOMS ZONES. Each of the Customs Zones would have one
Commissioner (Appeals)

Proposed Structure of IRS (C&CE)

Cadre Existing strength Proposed Increase

strength
Principal Chief Commissioner (new post) 0 18 18
Chief Commissioner 47 77 30
Commissioner Grade-I 0 100 100
Commissioner Grade –II 295 363 68
Addl./Joint Commissioner 593 1026 433
Dy./Asst. Commissioner 1550 4896 3346
Asst. Commissioner (Reserves) 0 250 250
Superintendent (CE/P/APP) 13948 21585 7637
Inspector (CE/P/E) 20163 31104 10941

• NINE MAJOR ZONES ARE TO BE HEADED BY PR. CHIEF COMMISSIONER

• NINE DIRECTORATES ARE PROPOSED TO BE UPGRADED TO BE HEADED BY
PRINCIPAL DIRECTOR GENERAL GRADE OFFICERS IN APEX GRADE.
• SANCTIONED STRENGTH AT THE LEVEL OF DC/AC IS PROPOSED TO BE
ENHANCED SIGNIFICANTLY TO STRENGTHEN AUDIT SET UP.
• OVER ALL MAN POWER IS PROJECTED TO INCREASE FROM 66808 POSTS IN
VARIOUS GRADES TO 102074 WHICH MEANS AN INCREASE OF 35266 POSTS
IN VARIOUS GRADES. FURTHER 6906 POSTS ARE TO BE ABOLISHED AS PER
THE DIRECTIONS OF DEPARTMENTAL SCREENING COMMITTEE. THE
PROPOSAL INVOLVES AN ADDITIONAL EXPENDITURE OF RS.965 CRORES
PER ANNUM.

TAX REVENUE REVENUE INCREASE

1999-2000 2009-2010
CENTRAL 61902 106584 72%
EXCISE
CUSTOMS 48420 84497 75%
SERVICE TAX 2128 58359 2642%
TOTAL 112450 249440 122%
• AS PER TABLES IN CHAPTER 7 FROM 2002 TO 2010 REVENUE HAS
INCREASED BY 81% BUT WORKLOAD HAS INCREASED BY 265%. THUS
WORKLOAD INCREASE AS WELL AS CHALLENGES TO USE IT ENABLED
PROCESS REQUIRES MAJOR STRENGTHENING OF THE HUMAN RESOURCE
OF THE DEPARTMENTS. THE MAN POWER GROWTH SOLICITED TO
MANAGE CURRENT WORKLOAD IS ONLY 42% OVER EXISTING MANPOWER
AVAILABLE FOR MAINSTREAM. FURTHER THE MANPOWER PROJECTED IS
TO LAST TILL 2014-15 WHEN THE NEXT CADRE RESTRUCTURING WILL BE
DUE.
• THE PROJECTED REVENUE/WORKLOAD FOR THE YEAR 2015

2002-03 2009-10 2014-15

(PROJECTED)
REVENUE 137883 249440 604956
ASSESSEE BASE 213301 1282528 70,00,000
NO. OF TRANSACTIONS 37,40,970 75,28,507 2,94,93,808
NO. OF PASSENGERS 94 LAKHS 276 LAKHS 462 LAKHS
LAST CADRE RESTRUCTURING NORMS:

• 500 CRORES REVENUE PER ANNUM FOR CENTRAL EXCISE

COMMISSIONERATE
• 500 CRORES REVENUE PER ANNUM FOR INTEGRATED C.EX.& S.TAX
COMMRTE.
• 250 CRORES REVENUE PER ANNUM FOR SERVICE TAX COMMISSIONERATE
• 1LAKH SBs/50000 BEs AND MORE THAN 1000 CRORES REVENUE PER
ANNUM.

• BASED ON THE NORMS OF EARLIER CADRE

RESTRUCTURING/REORGANIZATION WOULD HAVE LEAD TO THE
CREATION 276 C.EX COMMRTES, 250 SERVICE TAX COMMRTES AND 76
CUSTOMS COMMRTES. BUT IT WAS CONSIDERED ADMINISTRATIVELY NOT
FEASIBLE TO CREATE SUCH A LARGE NUMBER OF COMMISSIONERATES
SIMPLY ON THE BASIS OF EXISTING PER ANNUM REVENUE NORMS USED
DURING LAST CADRE RESTRUCTURIN
• COST OF COLLECTION (IN PAISA PER RS.100/-)

YEAR CUSTOMS C.EX & SERVICE TAX

1997-98 107 95
2007-08 50 60
2008-09 70 (PROVISIONAL) 90 (PROVISIONA

NORMS SUGGESTED BY STUDY GROUPS

• STUDY GROUP I – 1500 TO 200 CRORE REVENUE FOR C.EX., COMMRTE.

• NORMATIVE REVENUE OF 2500 TO 3500 CRORE OR 17500 ASSESSEES FOR
EXCLUSIVE SERVICE TAX COMMRTE.
• STUDY GROUP II – 2000 CRORE REVENUE FOR A C.EX., COMMRTE.
• STUDY GROUP III – 125000 BES FOR CUSTOMS (IMPORT) AND 300000 SBS
FOR CUSTOMS (EXPORT) COMMRTES/

PROPOSED TO REORGANISE 18 DIRECTORATES UNDER THE CBEC. NO MENTION

ABOUT THE STRENGTH TO THE DIRECTORATES INCLUDING THE SENSITIVE
DIRECTORATES LIKE DGRI, DGCEI, DGV ETC.

STAFFING NORMS FOR SUPERINTENDENTS

LAST CR STUDY GROUP PRESENT CR

CENTRAL EXCISE 87 151/99 80
SERVICE TAX - 107/88/55 80
CUSTOMS 91 100 80
AUDIT - - 80
COMMISSIONER (APPEALS) 3 2/3/2 1
COMMISSIONER 2 2 1
(ADJUDICATION)
CC OFFICE 5 4/9 1

TO BE PROMOTED

• 1975 BATCH IRS TO BE PROMOTED AS PRINCIPAL CHIEF COMMISSIONER

• 1979 BATCH IRS TO BE PROMOTED AS CHIEF COMMISSIONER
• 1993 BATCH IRS TO BE PROMOTED AS COMMISSIONER
• ALL IRS COMPLETING 13 YEARS OF SERVICE TO BECOME ADDITIONAL
COMMISSIONER
• ALL IRS COMPLETING 9 YEARS OF SERVICE TO BECOME JOINT
COMMISSIONER
• ALL IRS COMPLETING 4 YEARS OF SERVICE TO BECOME DEPUTY
COMMISSIONER
• SUPERINTENDENT OF C.EX., – 1992-93 BATCH TO BECOME ASST. COMMR.
(18TH YEAR)
• SUPERINTENDENT OF CUSTOMS (P) – 1995-96 BATCH TO BECOME ASST.
COMMR. (15TH YEAR )
• APPRAISER – ALL OFFICERS WITH 3 YEARS QUALIFYING SERVICE WILL
BECOME ASST. COMMISSIONER (I.E., 2007 APPRAISER WILL BECOME ASST.
COMMISSIONER)
• CEX INSPECTORS WITH 10 TO 20 YEARS OF SERVICE TO BECOME
SUPERINTENDENT (1987 BATCH TO 2000 BATCH) – MAXIMUM 23 YEARS
• PREVENTIVE OFFICERS WITH 10 TO 15 YEARS OF SERVICE TO BECOME
SUPERINTENDENT ( 1993 BATCH TO 2001 BATCH) – MAXIMUM 17 YEARS
• EXAMINERS/– ALL WITH 3 YEARS QUALIFYING SERVICE WILL BE
PROMOTED

TOTAL ADDITIONAL EXPENDITURE – RS.1152 CRORES

SAVINGS ON ABOLITION OF 6906 POSTS – RS. 187 CRORES

NET ADDITIONAL EXPENDITURE – RS.965 CRORES

ABOLITION OF POSTS

GROUP B MINISTERIAL NON GAZETTED 1626

GROUP C DRIVERS 705
SUPPORT STAFF 1163
OTHERS 18
AS PER THE REPORT OF GROUP ON IMPLEMENTATION OF GOODS AND SERVICES
TAX THE FOLLOWING NUMBER OF COMMISSIONERATES MAY BE REQUIRED IN
THE GST SCENARIO.

• 150 GST COMMISSIONERATES

• 45 AUDIT COMMISSIONERATES
• 20 ANTI EVASION COMMISSIONERATES
• TOTAL 215 COMMISSIONERATES

Source: Gconnect