Thursday, January 26, 2017

AICEIA WISHES HAPPY REPUBLIC DAY

Posted by Secretary General on 1/26/2017 11:16:00 AM with No comments

Wednesday, January 25, 2017

AICEIA is not part of the Steering Committee, formed in Delhi today

Posted by Secretary General on 1/25/2017 11:38:00 PM with No comments
Dear Comrades,

Today on 25.01.2017, a meeting was held in Delhi at 11:00 Hrs at C. R. Building, New Delhi, which was termed as the “Meeting of Steering Committee of Associations of CBEC on GST, comprising of IRS Association, Supdt. Association, Inspectors’ Association and Ministerial Officers’ Association of Central Excise”.  The meeting was attended by some of the members of the said committee, mostly of Delhi Units.  Surprisingly as a good sign, first time the IRS (C&CE) Association officially participated in any such joint forum.   

In this context, at first we want to make it clear that AICEIA is not part of this Steering Committee.  However, as a token of solidarity, Delhi Circle of AICEIA participated in the meeting as joint movement is the need of hour, when the department is at risk.  We appreciate the resolutions taken locally at Delhi meeting as a ground work but at the same time we make it clear that this resolution is not in consonance with the letter of AICEIA, submitted yesterday.  As the view of the national bodies of all the constituents are not reflected in this resolution, we feel it will not be justifiable to go with this resolutions, if we expect a Pan-India impact.  Further, after seeing the resolutions, we failed to find any logic and impact of Central Excise formations boycotting the International Customs Day Celebration.  It shows that the resolution is a bit tilted one.  Hence, the decisions/resolutions made in the said meeting does not hold any importance to AICEIA.  Therefore, the decisions of observing (i) No Customs Day Celebration on 27th January at any place, and (ii) Observing Black Day by wearing Black Badges on 30th January on Martyr’s  Day is not binding on the members of the AICEIA, posted across the country. 

 As we found that one of the joint conveners of the  first Steering Committee (on GST) Meeting held at Utpad Shulk Bhawan, Bandra Kurla Complex on 01/10/2016 also attended the said meeting today at New Delhi, we expected a minimum courtesy from his side to inform other two joint conveners.  Surprisingly, he did not inform.  However, we again expect that the meeting of all principal office bearers of the national body of all the Associations of Central Excise will be held at the earliest and a strong resolution may be adopted and sent to the higher forums.  Being the representative of the largest workforce of CBEC, AICEIA is committed to fight for the justice in ensuing GST regime on its own.  Further, it also ensures its members as well as the entire CBEC fraternity that we will work hard to make a successful joint action committee with other organizations too and achieve the desired results. 

AICEIA is making all the efforts to safeguard the interest of the cadre as well as the department in the ensuing regime of GST.   We are in the process of finalizing our course of action and the suggestions have been sought. We will take appropriate decisions and intimate the cadre shortly, so that there will be unanimity and consensus in the decisions and force in the action.

Yours fraternally,

Sd/-
Abhishek Kamal
SG, AICEIA

Tuesday, January 24, 2017

Letter to the Union Finance Minister

Posted by Secretary General on 1/24/2017 10:54:00 PM with No comments
F. No. AICEIA/GST/2017/4                                                         Date:24.01.2017                                
To
Sh. Arun Jaitley,
Union Minister of Finance,
Govt. of India
       &
Chairman,
GST Council, New Delhi.

Sir,

          Subject: GST the biggest revolution in Indirect Tax Administration – suggestions reg.

At very onset, we the Inspectors’ of the Central Excise put it straight before your good office that entire Cadre is apprehensive yet appreciative and ready for being part of the biggest ever revolution in the Indirect Tax Administration of the Country.
A tax administration, we understand, is as good as it reflects on the ground. It is at the ‘cutting edge’ level, the administration is seen and assessed by the very citizen/ taxpayers. The day to day provision of service or lack of it determines how government will be perceived. The surveys made by the independent agencies acknowledge the fact that the lower executive formation of Central Board of Excise & Customs are working with positive attitude.
In this long walk to GST regime, we tried to submit our views & concerns for smooth transition several times through our CBEC administration, but every time the ground level sentiments were diverted with the comment that everything is in liquid state and unless it takes some shape it is not possible to talk on administrative part.
After the 9th meeting of the GST Council on 16.01.2017, which placed the GST implementation in an advanced stage, we find it as our moral responsibility to put before you the aspects which need consideration while implementing GST. For convenience these aspects are classified in following three categories:- 
a) Issues related to the Assessees:- Entire Tax Administration is based on the entities which are being assessed. The decision dividing the Taxpayers’ base in asymmetric cross sections both vertically as well as horizontally creates confusion and inconvenience among the Taxpayers, who expected GST to provide a simplified Tax compliance mechanism. Though actual parameters to effect such distribution is yet to be divulged, the business entities are anxious, with multi-location units fearing the fact that their one business            vertical may fall under Central Control whereas the other may fall under State Control, due to this random distribution.

b) Issues related to the Union of India: - We are proud to have the unique Federal Structure, where co-existence and togetherness is the key. The very purpose of GST implementation in our Country was to provide a better Fiscal Health to the Union and States as the unified system will minimize the revenue leakage.

There is an impression in general that this very purpose was lost midway due to conflict on control between the Central & the State Governments.
           
Sir, it is felt that in the quest to control, the GST Council missed the elementary point of Development Economics, where division of land reduces its productivity while division of labour increases it.      If the duties and responsibilities of Tax Administration are divided between the Centre and States instead of             Taxpayers base the administration will be more cohesive and firm. Even this cross administration will   minimize the chances of Revenue Leakage.

In the Global Scenario, the economic health of the country is the strongest parameter of gradation. For making India a dominating power centre of the world, we need a strong Fiscal position which is possible only when some controls are centralized and major policies don’t get blocked due to regional aspirations.

c) The Executers of transition:- The employees of Revenue Departments be it Central or State, are the primary carrier of transition and the success of the new regime mostly depends on their contribution. But, non-communications are creating panic among these parts of Administration regarding their role and position in the new regime. The Inspectors of Central Excise are the most stagnated Cadre working under the Government of India and despite this fact they work hard and discharge their duty with full integrity which results in Revenue Collection more than targeted. In such a situation if the question of job security comes even as rumor, it is sufficient to de-motivate and demoralize the Cadre and adversely affect the transition.

Above points of concerns are needed to be considered for successful GST implementation. We know that raising concerns is not our only responsibility; rather suggesting way outs for consideration also lies on us. As a responsible service association, which desires success of Government Policies, we propose following points for consideration:-

1) Instead of dividing the Taxpayers’ Base, functional verticals be divided between the Centre & the States. It may be done in a manner, where all core verticals like Registration, Assessment & Dispute Resolution etc. are put under state domain and all peripheral verticals like Audit & Enforcement, Automation, Taxpayers’ Service & Vigilance and Training etc. are kept with the Central. The dispute resolution function should be kept with the Centre, as the adjudication pattern in Commercial Taxes of the states is somewhat different from what we follow and would be in GST.
2) Apprehension in field formations as to their role in new regime be taken seriously and requisite policies may be framed, wherever necessary, in consultation with the staff association
3) There should be parity in duty, responsibility, position & career prospects of the counterparts of the Centre and State GST.
4) Inspector of Central Excise should be given with role in GSTN module.
5) Levy of IGST should be kept under Central Control to safeguard the federal structure.

Sir, we solicit an early action to ensure that already agitated, stressed Central workforce are soothed and also request your good office to give us an opportunity to be heard in person, so that the above submissions can substantially be placed before you.

Yours faithfully,
Sd/-

Abhishek Kamal
Secretary General


Monday, January 23, 2017

GST

Posted by Secretary General on 1/23/2017 02:37:00 PM with No comments
On 16.01.2017, the 9th meeting of GST Council took place where the Centre and states reached a consensus on sharing powers for control over tax payers under GST, which will now be rolled out from July 1. The consensus was reached after the Centre almost surrendered to the demands of states.   The following major decisions were taken at the 9th meeting of all-powerful GST Council:-

1.Under the proposed tax regime, 90% of all assessees with a turnover of Rs 1.5 crore or less will be assessed for scrutiny and audit by state authorities, the remaining 10% by the Centre.
2.Assesses with a turnover  above Rs 1.5 crore, the Centre and states will assess with a 50:50 ratio. 
3.Each assessee would be assessed only by one authority
4.The power to levy and collect the I-GST lies with the central government, but states will also be cross-empowered in the same ratio as above through a special provision in the law.
5.Any I-GST disputes among states will be resolved by the Centre.
6.The Centre also ceded ground on taxation rights over the sea. Territorial waters extending to 12 nautical miles fall under control of the union government, but as per agreement in the meeting, states will be empowered to collect tax on any economic activity in this zone. 

The above decision of the GST Council is a big blow to the existence of the CBEC.  Since, a large portion of the assessee base will go with the states, the employee of CBEC will face greater obstacles in career headway.  With this decision, it will be very difficult for the CBEC to carry on existing posts in the new GST regime.  The indifference and inactiveness of the Board towards the career advancement of Group-B officers is not new.  During the Cadre Restructuring in CBEC, 7th CPC and thereafter, we faced a similar situation when the Board made certain commitments and later forgotten.    

Whenever, we went to the Board or Ministry and told them our concerns about GST, we were assured better career prospects in GST era and we were told not to protest since all grievances/suggestions of the AICEIA will be taken care of.  But at this present juncture, we feel betrayed.  The lack of unity and understanding among the Associations of Central Excise Department also played a key role in it. 

Dear comrades, we will not achieve anything till we fight tooth and nail, this is reality.  We will have to fight without any fear.  When our career is at stake, no option left.    We have nothing to lose and little time in our hand, we should start preparing for final fight so that we may survive with dignity.  We are assessing the impact of the decision and finding the avenues where we can get benefited.  Moreover, we are also assessing whether going on strike will yield result or not.  All options are open.   All office bearers and members across the country are requested to stay prepared for the call of AICEIA.  Meanwhile, in case, any member has anything to suggest, please send us on our email id- sgaiceia@gmail.com.