CBEC asks officials to expedite tax recovery process
New Delhi: Hard-pressed for funds, the revenue department Monday directed its field formation to expedite recovery of indirect taxes in cases where stay order has not been obtained by the assessee from the appellate authorities.
These directions, which are aimed at increasing revenue collection, were issued by the Central Board of Excise and Customs (CBEC).
Commenting on the circular, Bipin Sapra, Tax Partner with Ernst & Young said it "will cause administrative issues for the taxpayers who have filed appeal and stay application but have not received any order.
Since the taxpayers have no control over the tribunal/ courts to decide their stay petition within a given time, the initiation of recovery proceedings would create hardship to the taxpayers."
According to the circular, recovery should be initiated after expiry of statutory period of 60 days for filing of appeal in case no appeal has been filed against a confirmatory order with Commissioner Appeals.
It further added that recovery should also be initiated in those cases where the assessee has not sought stay in its application before Commissioner Appeals.
The recovery process should also be initiated after the expiry of 30 days of filing of appeal in those cases where stay has not been granted by the Commissioner Appeals.
The circular further said the recovery process should be immediately initiated in those cases where the Supreme Court or the High Courts has confirmed the orders of tribunals.
Indirect tax collections grew at a moderate rate of 16.8 percent to Rs 2.92 lakh crore in the April-November period as against the annual growth target of 27 percent.
The government is already facing a tough time in containing the fiscal deficit to the revised projection of 5.3 percent of GDP in the current fiscal in view of subdued tax collections, rising expenditure and lower-than-anticipated receipts from disinvestments.