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C.

A Madhukar N Hiregange

telephone.letters.       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.? Questions ..statement.summons. appropriately – email.

intelligence. morality or judgment is a threat  10/29/2013 .surrender of personal power Low Level.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.Anyone questioning their knowledge. ability.

General penalty  Section 78 – Penalty for suppression. Under Service Tax law Section 75 – Interest for not depositing tax amount in time  Section 76 – Penalty for non payment of ST  Section 77 . fraud & collusion  .

 Under Central Excise law Section 11AA .  Section 11AC – Penalty for short/ non payment.General Penalty  Rule 28 of CER –Confiscated property to vest in Central Govt.Interest for non payment of tax amount.  ..  Rule 25 of CER– Confiscation & Penalty  Rule 26 of CER – Personal Penalty  Rule 27 of CER .

seizure. 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.  Rule 24 – Power to detain or seize goods . premises & power to stop and search  Section 22 – Vexatious search. etc.

  Section 13 & 18 – Section 13 gives power to arrest and section 18 provides that. . 1898. arrest shall be carried out according to Code of Criminal Procedure. Section 9 & 9AA – Prosecution against responsible persons.

 Obligation to be honest – fundamental requirement for operation of tax system.  Obligation to be co–operative – 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 .

demand & arrest  Officers to visit in business hours only . Shall not disclose any of the sensitive information learned in his official capacity  Officers to issue SCN before imposing penalty.

CS for conducting an audit . seizure. prosecute and arrest under commissioner’s instructions  Issue summons to authorized persons of the company  Detain & give evidences as per CPC  Commissioner has power to appoint CA.CWA. Search.

Letters /notices from dept.Use this mode as additional as no trace or evidence of what transpired. Maybe used as additional mode or where time short Telephone . Only if official ID. Record by way of written communication what was discussed/ understood.   .Reply to letters within 15 -30 days under RPAD. Act 2005. E-Mail –Recognized in Information Tech. .

  . – Period of Limitation Visits by dept. Record by way of written communication with explanations & evidences provided. – Official or Unofficial? Should be handled by a knowledgeable persons. Letters to dept . .Communicate at appropriate time at appropriate levels including giving voluntary initial declarations. Visits to dept. Put on record what happened by way of written communication.Record in register kept.

Give a written statement. Can Summon be avoided? Can someone be authorized to appear on behalf of summoned person? Ask for time if duration is short and take legal advice. Is summons being misused? 10/29/2013 .        How & when does the summon process begin? Summons should not be vague/justify the purpose . Must give correct information.

Use of words “I have no idea” or “I will check & let you know”. No vague statement/ rough figures be given. 10/29/2013 . calm but firm. Making note of the questions & answers given(recorded and not recorded). Right to ask copy of statement recorded. Be polite.       It is a statement of tax payer & not that of department. Statement should be voluntary & not under threat.

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.  Note the date of receipt & date of SCN. decided case laws. Submissions containing relevant legal provisions.  Prepare an appropriate reply (Facts.Proper study of Show cause notice.  Acknowledgement 10/29/2013  .

4/5)  Contain facts. 10/29/2013  .T .  Acknowledgement. grounds of appeal.D with reasonable cause.When to appeal? & Whom to appeal ?  Prescribed form should be used (E. verification & prayer .  C.  Filing of appeal within due date.  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. S.A-1/3.O.

Open to Questions… 10/29/2013 .