D.O.F.No.296/219/2014-CX.9
GOVERNMENT OF INDIA
MINISTRY OF FINANCE/DEPARTMENT OF REVENUE
CENTRAL BOARD OF EXCISE & CUSTOMS
NEW DELHI
Dated: February 2, 2015
To
All Chief Commissioners of Customs, Central Excise & Service Tax
Sub: Review of revenue collections vis-a-vis targets-reg.
You are aware that while the Department has been entrusted with a challenging task of collecting Rs.6,23,244 crore at a growth of about 25.8%, the actual collection of Rs.3,77,648 crore upto December, 2014 is far from satisfactory, as shown below:
|
(Amt. in Rupees crore)
|
||||
| Customs | Central Excise | Service Tax | Total | |
| Collection in 2013-14 |
1,72,033
|
1,68,721
|
1,54,736
|
4,95,490
|
| BE Target 2014-15 |
2,01,819
|
2,05,452
|
2,15,973
|
6,23,244
|
| Target growth (%) |
17.3
|
21.8
|
39.6
|
25.8
|
| Collection upto Dec, 2014 |
1,38,529
|
1,19,719
|
1,19,400
|
3,77,648
|
| Actual growth over last year (%) |
9.7
|
1.6
|
8.7
|
6.7
|
2. Since we have assured the Hon’ble FM during the Conferences held in September and November, 2014 that we would not leave any stone unturned to achieve the target or at least narrow the gap as much as possible, we all need to put in our collective efforts to deliver on the assurance. Tax collections are also being closely monitored by Prime Minister who has desired that all out efforts should be made to achieve the Budget Estimates. With this in view, the Revenue Secretary and I have visited zones and interacted with officers at the cutting edge level. In addition, the Members and I will also be regularly reviewing the revenue performance and revenue augmentation efforts by the Zones by visiting or through video-conferencing over the next two months of the current financial year. The time and date of the review meetings will be indicated in due course.
3. I am sure that you and the officers in your zone share the Board’s urgency in augmenting revenue and have already initiated several measures to augment revenue. These are required to be pursued with full vigour and commitment. At the same time, I once again urge you to ensure that all taxes due to the Central Government are collected in a fair, judicious and non-adversarial manner.
4. You are advised to conduct a detailed analysis of overall revenue growth upto December, 2014 as compared to previous year, reasons for shortfall/gain, if any, along with sectoral analysis (major commodities/services and importers/assessees/taxpayers), projections from various ARM measures and projections for the current FY. In order to facilitate a structured discussion during the review meetings, a monthly report for the period December, 2014 to March, 2015 in the format enclosed may be sent by email to commrcoord-cbec@nic.in by the 15th of each month for the remaining months of the current financial year. The report of December, 2014 may be sent by 05.2.2015 positively.
With best wishes,
(Kaushal Srivastava)
Special Secretary & Chairman
Encl: as above
FORMAT FOR MONITORING REVENUE COLLECTIONS
| Actual Revenue 2012-13 | Actual Revenue 2013-14 | % Growth | B.E 2014-15 | During the month | % Growth | Upto the month | % Growth | Addl Revenue from ARM* | Revenue Projections | ||||
| 2013-14 | 2014-15 | 2013-14 | 2014-15 | Upto the month | Remaining period of FY | Remaining Period of FY | F.Y. 2014-15 | ||||||
*Total figures to be indicated. The breakup in respect of various key areas to be indicated in format indicated in Annex-II
FORMAT FOR MONITORING REVENUE COLLECTIONS
| Actual Revenue 2012-13 | Actual Revenue | % Growth | B.E 2014-15 | During the month | % Growth | Upto the month | % Growth | Addl Revenue from ARM* | Revenue Projections | ||||
| 2013-14 | 2014-15 | 2013-14 | 2014-15 | Upto the month | Remaining period of FY | Remaining period of FY | F.Y. 2014-15 | ||||||
* Total figures to be indicated. The breakup in respect of various key areas to be indicated in format indicated in Annex-II
Annex-II
PERFORMANCE IN ARM
(All amounts in Rs Crore – rounded upto crore i.e. no decimal, % figures rounded upto 1st decimal point)
I. Adjudication
A. Adjudication – Value-wise pendency
| Area of work | Pending cases involving a duty/ service tax/ Cenvat of…. | Cases adjudicated, out of total cases in previous columns | Amount of pre-deposit made by the parties while filing appeal | ||||||||
| >25 Cr | 10 to 25 Cr | 5-10 Cr | 1-5 Cr | ||||||||
| No. | duty | No. | duty | No. | duty | No. | duty | No. | duty | ||
| Customs | |||||||||||
| CX | |||||||||||
| ST | |||||||||||
| Total | |||||||||||
II (A). Recovery of arrears
| Area of work | Recoverable arrears as on 31.12.2014 | Arrears realised during the month out of the total recoverable arrears in the previous column | Arrears realisation in % items | |||
| No. | amount | No. | amount | No. | amount | |
| (1) | (2) | (3) | (4) | (5) | (6) | |
| Customs | ||||||
| CX | ||||||
| ST | ||||||
| Total | ||||||
II (B). Recovery of arrears by coordination with other agencies such as FIU, CBDT, VAT, ROCs etc.
| Number of cases referred | Recovery of taxes/ duty | |||||
| PY | CY | %+/- | PY | CY | %+/- | |
| For the month | ||||||
| Up to month | ||||||
III. Revenue from VCES arrears
| Amount pending for recovery as on 01/01/2015 | Amount recovered, out of the amount pending for recovery as on 01/01/2015 | ||||
| Jan. 2015 | Feb. 2015 | Mar. 2015 | Total recovery upto the month | % amount recovered so far | |
IV. Disposal of confiscated goods
| Confiscated goods ripe for disposal but pending for disposal at the beginning of the month | Disposal of confiscated goods during the month | Realisation of amount during the amount | ||||||
| PY | CY | %+/- | PY | CY | %+/- | PY | CY | %+/- |
V. Compliance performance
| Area of work | Number | Detection of duty evasion | Recovery of duty | ||||||
| PY | CY | %+/- | PY | CY | %+/- | PY | CY | %+/- | |
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Note:- Figures for Customs, Central Excise and Service Tax should be given separately. All amounts in Rs Crore – rounded upto crore i.e. no decimal, % figures rounded upto 1st decimal point.
P.Y: Previous Year C.Y: Current Year
It is good to note that the Chairman, CBEC has urged that the collection of Govt revenue should be in fair, judicious and non-adversarial manner. The ground reality seems different most of the Commissionerates are using unfair means like withholding refunds, drawback etc, forcing importers to clear goods without using duty free scrips and pressurising parties to make payments not actually due or payable. Such measures are counter productive in long run and have adverse effect on economy.
To achieve the target we have to ensure that the existing duty paying units should not fall in business due to adverse impact inflicted by the various market forces which influence it in negative manner. We have to encourage the potential businessmen to start the business by framing /creating business friendly atmosphere .While taking into a/c the shortfall in revenue we have to see the inputs which contributed in its shortfall such as
1- How many assesses have closed down their business in the current financial year and what was the revenue amount collected from them during the previous financial year which would not be available in the current financial year.
2-How many new assesses joined in new financial year and out of those how many contributed in taxpayment barring those who enjoy exemptions due to the various provisions of law.
3- How many assesses have increased their export clearances from previous year because of that no taxes in the form of cenvat collected on exports clearances which also reduces proportional revenue in the form of cenvat in the current financial year irrespective of the fact that nation earns much needed foreign currency on exports.
4- How many exemption notifications issued by the government which caused exit of duty paying units in the current financial year.
The above few examples have come to my mind which in my opinion makes it hard to achieve the revenue target which is fixed on the basis of last financial year revenue collection with the hope that
the revenue will go up against all odds
thanking you
Dinesh chandra.