Government provides more power to the taxmen to clear pending cases

A notification has been issued by the Union Finance Ministry, in which it expanded the adjudication powers of sales and finance officers so they can resolve old tax related complaints. This attempt has been made to clear the hurdles and smoothen the rollout of the upcoming Goods and Service Tax (GST).

According to an officer the powers of the taxmen has been increased across ranks keeping GST in mind.

"Powers of adjudication have been increased across ranks in light of GST, now more cases will be decided at lower ranks; disposal of these cases will be faster,” a senior tax official told ET.

The new notification empowers sales and excise tax officials of the rank of superintendent, assistant commissioner, deputy commissioner, additional and joint commissioner. Earlier the superintendent could only assess and resolve cases involving up to Rs 1 lakh, now that ceiling has been raised to cases up to Rs 10 lakh. Similarly, Assistant and deputy commissioners can now investigate cases up to Rs 50 lakh from Rs 5 lakh earlier.

"Most cases were lying unheard at the level of commissioner and the pendency was increasing and this will help reduce the backlog,” the tax official further added.

Several cases are pending at the level of sales tax commissioners and joint commissioners. The power of additional and joint commissioners can now investigate and clear cases between Rs 50 lakh to Rs 2 crore from the earlier ceiling of Rs 50 lakh. Only the commissioner can investigate and assess cases above Rs 2 crore, which is a band that has been untouched by the notification.

Officers were told to resolve the old matters as soon as possible in a recent meeting held in New Delhi by the government for senior sales tax officials.

"The government wants everyone to focus on GST once it's implemented, the old cases under old rules could become a distraction,” a senior tax official told ET.

Most cases pending are those involving more than Rs 1crore. Experts point out that once GST is implemented it would be tough for tax payers to escape without paying their dues. Some small businessmen feared tax officers can go after them for taxes evaded in the past years.
(image: Indiatimes)