CBEC takes E-step forward

February, 25th 2009

The central excise and customs department is in the final stage of implementating its `IT consolidation' scheme that will
connect 584 locations in the country through wide area network and over 2,850 buildings under local area network.

Chief commissioner (central excise) Lalitha John announced this on Tuesday during the central excise day celebrations organized by the commissioners of central excise, Bangalore I, II, III, service tax and large taxpayers unit.

The IT consolidation is an upgraded version of the Indian Customs EDI Software (ICES), a workflow-based application to automate business processes in central excise and service tax (ACES).

The first pilot project of ACES, launched in December 2008, has helped the big taxpayers to file their returns electronically. Self-assessment has necessitated strengthening of the audit and qualitative scrutiny of the returns, she pointed out.

The computer aided audit programme (CAAP) is expected to help the department in auditing large taxpaying entities which are systems-driven to minimize the time and cost involved in auditing such units.

Some top taxpayers in central excise and service tax were felicitated. They included commissioner of LTU DP Nagendra Kumar, assistant director of enforcement directorate zonal office, Bangalore John Simon, senior intelligence officer (directorate of revenue intelligence, Bangalore) V Ramesh and LTU inspector M V Sridhar.

We need a thorough computerised system. Invoice is the basic document on excise assessment, and control. The department must develop a system where invoice will be generated by a central sercer. If that can be done, there will be complete control and evasion will be checked. It can be done easily.

However, the interest of department in computerisation is not obvious. Even to file returns, when an assessee apply for password, it is not issued for months. The computerisation work of the department should be given to independent software companies. Further the system development should be supervised not only by departmental officers but a committee consisting of other stake holders- like industry associations, professionals etc.

Computerisation will reduce the discretion of the departmental officers. Then the power of the officer to visit units unnecessarily will be reduced. There will be more accountability. May be the department is not ready for these things.