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(See 'Guest' Column) I-T - Whether if assessee is relying upon exception mentioned under rule 6DD, in that case burden of proof is upon assessee - YES: HC (See '2015-TIOL-1976') No IT Return under RTI Act - SC Dismisses Petition (See 'DDT') Shillong Customs arrests two persons with gold worth over Rs 40 lakhs Govt okays bid to import 1000 tonnes of onion at Rs 45 per kg; MMTC directed to float fresh tender for import of 10,000 tonnes onion Law Commission submits Report on Draft Model Investment Treaty (See 'Mixed Buzz') Law Commission for amendments in Bribery of Foreign Public Officials Bill (See 'Mixed Buzz')
 
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Cadre-restructuring by CBDT, CBEC: Focus is to mitigate stagnation at cutting-edge levels; Principal CC-posts proposed by CBEC

SEPTEMBER 13, 2010

By TIOL News Service

RESTRUCTURING is globally seen as a positive overture to the changing environment for both business and governance. The Union Government has been trying hard to 'redesign and repackage' both the direct as well as indirect tax laws. Although it has achieved only partial success so far but the preparations for restructuring of cadres for tax administration are on the right track. If one goes by five-year norm or the 6th Pay Commission recommendations, it may look hugely delayed but it has been moving rapidly. If we go by the statements of the Finance Minister at various public fora, the cadre review of various services of both the Revenue Boards is likely to be through with the first two stages of approval - the Finance Ministry and the DoP&T. It may be guesstimated that the proposals should be reaching the Cabinet sometime in December for final approval. And, interestingly, the expenditure implication for both the proposals is going to be only in the range of Rs 2000 Crore per annum.

Here are the highlights of the proposals for both the Revenue Boards:

++ CBEC has proposed a jump in the total number of personnel from 66808 to 95168 after surrendering about 6906 posts; CBDT has asked for about 38000 additional posts;

++ CBEC has gone back to the Principal Chief Commissioner system. It has proposed 18 posts of Principal Chief Commissioners - nine zonal heads for NINE proposed zones plus nine Directorates are to be upgraded to be headed by Principal Chief Commissioners. Besides, 77 more posts of Chief Commissioners are proposed to be created. For the CBDT, an additional 116 posts of CCITs have been proposed. Out of these, 40 posts are demanded to be upgraded to the level of highest pay bracket i.e. Rs 80,000/-.

++ At the Commissioner level, the CBEC has proposed a graded rank - Commissioner, Grade I and Commissioner, Grade II. For the former category, the proposal is to create 100 new posts and the latter to have 363 posts, including 295 existing ones. CBDT has gone by the operational index theory and has proposed higher status for administrative CIT in comparison to CIT(A). The number of administrative CITs for assessment charges is proposed to be increased by 250.

++ At the Addl / JC-level, the CBEC has proposed a sharp leapfrogging from 593 posts to 1550 posts. The CBDT has also proposed an increase commensurate with the rationale devised for the restructuring.

++ The CBEC has proposed a Hanuman-jump at the cutting-edge level by proposing an increase from 1550 posts AC/DCs to 4900 posts. This is to take care of stagnation in the various feeder cadres.

++ The CBDT has proposed creation of 20,000 additional posts at the ITO-level;

++ The number of Commissionerates will jump from existing 93 Central Excise Commissionerates and 7 Service Tax Commissionerates to 119 Central Excise Commissionerates and 22 exclusive Service Tax Commissionerates;

++ For the Customs, it will be up from 35 to 60 Commissionerates;

++ In addition, 45 new Audit Commissionerates have been proposed by the CBEC;

++ Directorate of Safeguard and Directorate of Export Promotion are proposed to be merged;

++ Directorate General of Service Tax is proposed to be shifted to Delhi;

++ A new Directorate of International Customs is proposed to be created to deal with WCO, WTO and WIPO.

Criteria adopted by Revenue Boards

++ Revenue Norms: Rs. 1750 Crore Central Excise Annual Revenue {(PLA + CENVAT) - Each Commissionerate of Central Excise shall have 5 Divisions and 25 Ranges. The Commissionerates located in an area, which is not covered by an exclusive Service Tax Commissionerate, would be given manpower equivalent to the staff allocated to one Division exclusively for Service Tax. Commissionerates having Oil Refinery within their jurisdiction would be provided additional staff equivalent to one Range for One Refinery;

++ For a Service Tax Commissionerate, Rs 3000 Cr annual revenue or more than 17500 assessees has been taken as a benchmark. Each Commissionerate of  Service Tax shall have 5 Divisions and 25 Ranges.

++ For a new Customs Commissionerate, the benchmarks adopted are 125000 Bills of Entry for Customs (Imports) and 200000 Shipping Bills for Export Commissionerate. 150000 BEs & SBs for integrated Customs Commissionerate.

These are broadly the major proposals of the CBEC and CBDT cadre reviews and restructuring of various Commissionerates and Directorates. Less information has been provided for CBDT proposals as the CBDT continues to look confused and also secretive about some of its proposals. The Directorate of HRD which is being saddled with multifarious roles and powers, needs quality personnel if CBDT wants it to play an active role in overall designing of the roadmap for the Department.

TIOL would like to comment more on these proposals which the entire approach is about right-sizing the Department or to simply grab as many posts as possible and then fight over the lesser number of attractive turfs. At present these proposals are being scrutinised at various stages and let's hope they are put in the top gear to quick approval of the Cabinet.


 RECENT DISCUSSION(S) POST YOUR COMMENTS
   
 
Sub: Restructuring - BORING exercise

Oh what a bore! Now, the entire department will be talking about this “restructuring” for days to come and it will die a natural death after realizing that nothing concrete is being worked out by the administration. I was all the more pleased with the optimism expressed by TIOL that “…the proposals should be reaching the Cabinet sometime in December for final approval.” What remains to be seen is which “December” are they talking about, 2010 or 2011 or 2012 …2020. Twenty-Twenty vision would be a good one! Secondly, more top-level posts means more vehicles with beacons [mainly private], more cabins, more air-conditioners, more refurbishment, more crystal tea-sets, more orderlies…feeding so many mouths would be a gargantuan task – so more protocol officers, more revenue generation. Is there so much work left that you require so many higher level officers – I still sympathize with that poor Inspector who has put in more than twenty precious years of his life and waits for his FIRST promotion and that Superintendent about to retire without being able to add the IRS tagline to his name. Hopefully, the Board would seek the assistance of the Management Gurus, nay, the learned Bharagavas the department has!

Posted by ramesh patil
 
Sub: Cadre restructuring

On the one hand the Govt is going for outsourcing of Returns,when this will done what work Income Tax department will left with, still required to be seen. Instead of increasing the post of CC, CsIT, Addl/Jt.CsIt, ACIT, ITOs, efforts should be made to employ some professional persons who can only be useful to help the govt. in meeting the requirement in facing the uphill task of changing financial intricacies. Before increasing the number of posts efforts should be made to identify the increase in revenue of each range in a year leaving aside the TDS and Self assessment Tax only then idea to increase the post should be contemplated.

Posted by Mohini Makhijani
 
Sub: Unjustified restructuring

The present restructuring, as like previous one, is mot going to create an ideal situation. The need is to create more posts in field level whereas the board is hell bent on creating non significant post like principle CC which is of only ornamental value. God knows when good sense will prevail upon the Board's official to see the need of creating maximum number of post at AC/DC level which has the key role in revenue augmentation unlike principal CC which is only to create unjustified posts only for the sake of promotion of IRS officials and which has nothing concern with the augmentation of revenue. May the FM or Revenue Secretary take notice of that unjustified act of Board.

Posted by Tushar Singh
 
Sub: Redifne before restructure and split CBEC itself

Now once again, in both the departments, daily coffee tume subject will going to be cadre restructure, cadre restructyre only. All sorts of estmations will fly in. IN 2002 the CADRE REVIEW then introduced was a bonanza for IRS 'family' which they themselves could not have dreamed of.It appears that the present proposal also is going to be on the similar lines.Bringing in Peincipal Chief Commissioner with 77 more Chief Commissioners is again going to be jackpot for those on the pipeline. However what is forgotten is the nature of work to be handled after restructure. PRORITY SHOULD BE ON HOW TO AVOID DUPLICATION AND NON FUNCTIONAL POST. For this purpose a separate HR Body of Experts has to be consulted(Constituted). First REDIFNE th work nature and its need. For example in a Review Section what is the work of Superintendent then Assistant Commissioner then Joint / Addl Commr. There is only thin difference between themselves.Likewise in Adjudication etc.Another thing Govt can think over is to SPLIT THE CBEC itself into FOUR - SOUTH,WEST,NORTH AND EAST , each can be headed by Deputy or name it as Zonal Director General or so and have close monitoring and effective administration with easy interaction. Every time DELHI need not be approached and the Regional Head can have all the powers delegated. However the principle of effective adminstration is- smaler the highrachy better the results- Base should be strong. But again what will happen when the so called GST comes in? Another cadre review for VAT implications? ANYWAY a good subject topic is born for tea time gossipers. Thanks to TIOL.
By,
M.RAM KUMAR,
BANGALORE
(Views are personal with humour)

Posted by ramkumar ramkumar
 
Sub: Mode of removing stagnation

Sir, CBEC proposal to have 4900 new posts of AC/DC is clearly accepting the acute stagnation in Group B level.But will they be practical if the present norms are followed?.Right from 1997 onwards the promotions are done ONLy on adhoc basis (for best known reasons)in a ratio 6:1:2 which has no rationale norms, whatsoever like strength of feeder cadre.Now 1996 customs appraisers and Supdts are ACs whereas the excise supdts from jan,1992 are still waiting-there will be minimum 3000 who are pre-1996.So also, both in Customs POs and Excise Insprs of 1978 and 1982 are already Acs by their earliy promotion to Group B level.Hence, the best way to fill up the new posts-created to remove stagnation-is to fill up by a one time formula to accommodate all Insprs/Pos/Examiners joined on or before a cut -off date .the best cut off date could be that of the junior most(w.r.to date of joining as Inspr/Po) Inspr/Po who is already AC . Rather the 4900 number should be utilised to ensure that there is no inter cadre and intra cadre disparity in becoming AC.his is a golden chance to wipe off the injustice and heartburn of the large no. of unlucky Insprs/Pos who have been very badly afflicted with 'humiliation' and ill treatment.Almost 2500 are to retire in the next two years without causing any future cadre management problems as well.If there is WILL it could be done as was done in 1996/97 upgradation to groupB level covering all insprs/pos upto dec,1980.

Posted by Unnikrishnan V
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