The text of the Revenue
Secretary Shri Sumit Bose’s Statement made to the media today is as
The Finance Minister has consistently emphasized that clarity in tax
laws, a stable tax regime, a non-adversarial tax administration, a fair
mechanism for dispute resolution, and an independent judiciary will
provide great assurance to investors. While our Department is making
every possible effort to facilitate trade and industry, a number of tax
payers/assessees are still not doing their part by paying their due
taxes in a timely manner and complying with the law.
It has been observed that a number of Central Excise assessees continue
removing goods clandestinely, sometime even without registration,
misusing CENVAT Credit or simply not paying Central Excise duties which
are due to the Government, in disregard of the law. We are keeping a
very close watch on such elements. They are advised to come forward to
pay all due taxes and avail of the benefit of reduced penalty. If they
fail to do so, they should be ready for the consequences which include:
• Recovery of duty along with interest and penalty up to 100%.
• Suspension of CENVAT Credit
• Provisional attachment of property, and
• Arrest and Prosecution
In case of Service Tax, all services are taxable With effect from
1.7.2012, except those in the Negative List and exempted services.
However, a number of service providers who should be paying service tax
now have not yet registered themselves. It is also noticed that more
than half of the service providers who are registered with us are not
filing returns. The Department has also gathered information that a
number of service providers are collecting service tax from the
receivers of service but not depositing the tax with the Government. Let
me warn them that all such service providers will not only be liable to
pay the service tax along with interest and penalty which may be equal
to the service tax evaded, but they can also be prosecuted for these
offences. Money due to them from a third party can also be appropriated
by the Government.
On the Customs side, we have seen that some importers and exporters are
indulging in under-invoicing in import/over-invoicing in exports and mis-declaration
of goods and are misusing exemptions and various incentive schemes, to
evade customs duty. When 70 per cent of the consignments are being
cleared by Customs on self assessment basis, without any assessment and
examination by the Department, it is incumbent upon the
importers/exporters to discharge their correct duty liability. Some
unscrupulous elements are already on the radar of DRI and intelligence
wings of Customs houses. Such importers and exporters should be ready to
face legal consequences including arrest and prosecution besides payment
of duty with interest, fine and penalty up to 100% of duty evaded. The
only window for them is to come forward and deposit the duty now and
avail of the benefit of reduced penalty.
In these times of electronic availability of transactional and financial
data from various sources on real time basis, let me emphasize that it
is not difficult for the tax authorities to reach the doors of those who
are evading tax payment.
The Government would urge all assessees to ensure that they make timely
and correct payment of customs duty, central excise duty and service tax
for continued trade facilitation.