In spite of my positive approach and proactive attitude towards life, I am constrained to say in anguish that the administration of the Sales Tax Department (‘Department’) in VAT regime has reached its lowest ebb.

There are myriad instances to strengthen my above belief. Let us see these instances one by one.

Errors in Drafting of Acts, Rules, Notifications and Circulars :

This is the most serious and biggest mistake which is the epitome of falling standard of the Department. A Gazette is considered to be a sacrosanct document. There is no scope for mistake. A minor mistake can have serious repercussions for either side. Still we find a number of glaring mistakes in Gazettes issued by the Government.

I will give just one classic example of recently published Notification No. VAT.1508/CR-44/Taxation-1, dtd. 29.3.08. A new commodity in entry No. 11 in Schedule ‘D’ is added i.e. of ‘Aviation Turbine Fuel’. However, the Notification speaks of ‘Avaition Turbine Fuel’ ! The readers would be surprised that even our matriculate data entry operator could find out the above mistake; but how it went unnoticed from the sight of all the learned draftsmen is still a mystery !

TIN Application :

When the Hon’ble Finance Minister (‘FM’), Shri Jayant Patil came to our Mazgaon Library on our request, he was willing to concede to our demand and extend the last date of submission of TIN application from 31st December, 05.

But it was the obdurate, the then Commissioner of Sales Tax, Shri Khatua who prevailed upon the FM from giving the extension on the ground that it will upset the schedule of issuing TIN certificates by 15.3.2006. But we all know that after completion of two long years, still a majority of the dealers are not fortunate enough even to have a glimpse of their TIN certificates ! A total apathy and lack of accountability on the part of the Department. It is a case of dual standards ! When it comes to dealers : be extremely strict and show no mercy. When it comes to fulfilment of their own commitment, no accountability at all.

Profession Tax E/C - R/C during the Amnesty Scheme :

Similarly, enrolment and Registration Certificates under the Profession Tax Act are still not received by those who have applied during the P. T. Amnesty Scheme.

VAT Returns :

No clue of which dealers have filed returns :

Look at the state of affairs of returns filed by the dealers. It is extremely shocking that the Department has got no record of returns filed by the dealers for last two years ! And instead of becoming apologetic, prosecution notices were slapped on the faces of the dealers, sending them in a tizzy.

Refer para 1 of Trade Circular No. 1T of 2008 and audacity of the draftsman. It reads : “It has come to our notice that a large number of dealers who are liable to file VAT & CST returns have either not been filing these returns or have been filing it late. This is very serious issue.” (emphasis is supplied by the author).

Allow us to say, if non-filing of return is serious then accusing a dealer without ascertaining the facts and sending him a prosecution notice is gravely serious ! Para 3 of Trade Circular No. 7T of 2008 is in a similar tone to 1T. One can exonerate the department once but not perpetually.

But strangely, the matter does not come to an end with this ! Trade Circular 1T clearly gives indication that Department does not want to improve upon the system, and in para No. 5, it insists on submitting the details of returns which are filed subsequently. On the contrary we would have appreciated if the Department had requested us to submit details only for two years and a bold declaration on their part that now onwards we will have proper records on our own.

Para 2 e) of Circular 3T of 2008 makes us brimmed with amusement ! It reads “The Returns branch shall maintain systematically the copies of the returns so obtained. In case any of the departmental authorities requests for copies, the said shall be made available for reference or record.”

The moot question is why the Department is not maintaining record of the original returns filed in the first place, instead of maintaining the records of the duplicate copies of returns filed !

Change in Return Forms :

The Department should ensure that the newly introduced forms are available at the Government Stationery Department well in advance, rather than giving administrative concession after a lot of representation. This is a clear indication of falling administrative standard of the Department.

E- Returns :

Format of the Returns :

At the outset, let us admit that the Commissioner was kind enough to call for our suggestions by inviting us in core group for e-filing of returns. But what we found was that it was sheer inertia of the Department which did not bring the desired result. In fact, we had designed a better layout of the Returns containing all information which they wanted to incorporate in the Returns, plus some more details which are required, based on our practical experience, which would have resulted in much better functionality of the returns.

Insistence on filing of physical copy of entire E-Return instead of filing only acknowledgment :

Let us understand what could be the objective behind introducing e-filing of returns. The objective of e-filing of returns is to have better track of returns. At a click of a button one can see as to who have filed returns and who have not. Surprisingly, the Department is neither able to keep track of physical filing nor e-filing of returns and now, they are insisting on filing returns in both the formats !

Though Trade Circular No. 8T of 2008 and 16T of 2008 require to file only acknowledgment part of it, the next paras in both the circulars require to follow detailed guidance note hosted on the website of the Department. And Step 6 of the guidance note hosted on the website wants filing of returns in both the formats, in case of non-digital filing of e-returns.

Issue of Declarations like ‘C’ forms etc. :

The Department could not handle issue of ‘C’ forms etc., efficiently. In the BST regime a dealer used to get ‘C’ forms in one visit and that too within no time. Now he has to visit at least thrice for the same and waste considerable time and energy.

Trade Circular No. 15T of 2008 is a classic example of deteriorating standard of administration of the Department. It says that it was brought to their notice that dealers are facing difficulties in obtaining statutory declarations. And it further states that staff of the department are also facing problems and disturbances due to frequent visits by applicants which ultimately affects the efficiency of staff and hampers the issuance of the declarations forms. And, therefore, the Department will accept application for forms only twice in a week !

This circular reveals the mindset of people of the Government Departments as to how they function ! There is no concept of service to the dealer by the Department. The only concept is convenience of the departmental person. They consider a dealer as an outsider and by dealer coming to the Department their efficiency is reduced !

Let us point out that some time ago, the Department itself had carried out a ‘service drive’ and posters of quotation of Mahatma Gandhi were put up at prominent places in the Department. I hope some copies must be still left with them and suggest that they read the same. If they do not have, then I am reproducing the same again here :

“A dealer is the most important visitor on our premises, he is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our organisation. He is a part of it. We are not doing him a favour by serving him. He is doing us a favour by giving us an opportunity to do so.”

— Mahatma Gandhi.

Experience of online application — not an encouraging one :

There are innumerable instances where dealers have got CST declarations after two months after the website has shown ‘dispatched’ status.

We hope the present ever-receptive Commissioner will take cognizance of these lapses and quickly take corrective action to restore the lost pride of the Department.