Thursday, March 22, 2012

CBEC-Withering bureaucracy turning India into a Banana Republic-12th story


The might of the bureaucracy to trample the written word of the law in the name of interpretation of the law is mind boggling & unfathomable. Even where there is no room for interpretation, the officials in position are able to resort to outright cheating & rest assured that nothing will ever happen to them though there is a provision in the law in IPC-specifically 166 & /or 167 where such offences of harassment by the bureaucracy are prosecutable & do not require any permission for prosecution from any authority. I say so because the police official in the department says that they do not understand the basics of the law under which the prosecution is to be carried out conveniently forgetting that they are not to deciding the prosecution but their only role is to lodge the FIR & take the case to logical conclusion. The second stumbling block, which is pointed out by them is that there are no prosecutions under IPC 166 &/or 167. Is it not strange or surprising that there are no prosecutions for abuse of authority & harassment though this is a common problem in this country & why a precedent is sought for launching a prosecution? I am aware of one FOR lodged against the Chief Commissioner of customs & this arguments being cited by the police department. The copy of the FIR was sent right up to the Prime Minister’s office but to no avail. This only highlights the disgusting & shameful state of affairs compelling this writer to condone this nation as banana republic.
As you know this is a series in relation to the rebate on exports. Please see how skewed can be the approach of the officials in position to harass the beneficiaries but dare say anything can happen to the officials because the law fully protects them even in respect of the illegalities.
In case of rebate claims, if you will analyze facts of the case then what the department is saying is that the duty was not payable in the first place i.e. excess amount was paid in the first instance than required under the law. Thus this excess amount lying with the department needs to be refunded to us or re-credited in the RG 23 Part II account. It cannot be the case of the department that if the manufacturer has paid the excess amount then this can be appropriated as duty illegally i.e. without the authority of law. In effect, what we are saying is that if there was excess duty payment then we were entitled to refund of it & the department cannot misappropriate the same. This is a settled law-case law 2006 (206) E.L.T. 90 (Kar.) in case of COMMISSIONER OF C. EX., BANGALORE-III Versus MOTOROLA INDIA PVT. LTD. It is decided beyond doubt that the excess amount cannot be pocketed as duty but the same is refundable to the assessee.
Not only the above, as per Article 265 of the constitution, the Government cannot collect taxes beyond the authority of law, which means that excess amounts collected without the authority of the law have to be refunded to the tax payer. This is the basic principle enshrined in the constitution itself & cannot be disregarded. However, merrily, the officials in position restrict the rebate in cash to the FOB value of exports & ignore the excess amount paid to the government. Thereafter, this amount is as good as lost. I was surprised to hear from the Commissioner (Appeals), Mumbai II during the personal hearing that if I make a prayer to refund the amount by way of re-credit then he will grant that favour. I fail to understand that where is the question of any favour & whether a judicial authority can dole out a favour. On the other hand this is the boundem duty in terms of the constitution of this country that excess amounts collected without the authority of the law have to be refunded to the tax payer but then the authorties do not like to honour the law but would like the appellants to plead/pray for the kindness to be bestowed on them even in respect of the legitimate rights. The salutation my lords is discarded but they remain the lords.
This is the twelfth part of the story. However, the story of the abuse of authority does not end here. Further lampooning of the system & abuse by the authorities will follow in the next write up. Till then Good bye.
rajiv.pec@gmail.com


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