Weekly Newsletter from Chairman, CBIC, dated 26/02/2024, reflects on the timeless philosophy of “Loka Sangraha” and its relevance in the duties of public servants. Drawing inspiration from the Bhagavad Gita, the newsletter emphasizes ethical conduct, efficient administration, and the higher purpose of serving the greater good. The newsletter concludes with a brief update, urging officers and staff of the Central Board of Indirect Taxes & Customs to stay tuned for the next week’s developments. The message is signed by Sanjay Kumar Agarwal, Chairman of CBIC, reinforcing the commitment to ethical administration and the greater good.
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes & Customs
26th February, 2024
DO No. 09/News Letter/CH(IC)/2024
Dear Colleague.
In the profound wisdom of ancient Indian texts, the pursuit of dharma, or righteous duty, has been emphasized as the guiding principle for individuals from various walks of life. The concept of “Loka Sangraha”, from the sacred scripture -Bhagavad Gita, resonates with contemporary relevance. Mahatma Gandhi linked loka sangraha with the concept of sacrifice (or “yajna“) to highlight that one must sacrifice oneself for the sake of the greater good. Therefore, loka sangraha encourages public servants to work for the welfare of the people at large. For the officers of CBIC, this timeless philosophy underscores the imperative of ethical conduct and efficient administration in the realm of trade and commerce. Drawing inspiration from the Bhagavad Gita, where Lord Krishna imparts the importance of selfless action, we, as officers, are reminded that our responsibilities extend beyond mere bureaucratic tasks. In our context, the concept of loka sangraha implies creating an environment conducive to trade, where businesses can thrive, and taxpayers can enjoy the fruits of a fair and just taxation regime. By aligning our actions with the principles of dharma and loka sangraha, we become the champions of ethical and efficient administration and fulfil the higher purpose of serving the greater good and upholding the values embedded in ancient Indian wisdom.
Coming to last week’s important update, I would like to mention that Indian Customs and Singapore Customs virtually signed the Joint Action Plan for phased negotiations of the Authorized Economic Operator Mutual Recognition Arrangement (AEO-MRA). This arrangement is aimed at enhancing supply chain security and trade facilitation between India and Singapore. The signing of the Joint Action Plan signifies a commitment to mutual recognition of Authorized Economic Operators between the two countries.
With regards GSTN Back Office (BO) training of CBIC officers, NACIN Faridabad commenced training of the first batch of master trainers in December last year in close coordination with GSTN Team. I have been informed that 552 officers from 108 CGST Commissionerates have been trained as master trainers in 11 Batches altogether. I expect that the CGST Zones will make earnest efforts to take up the training of remaining workforce of CBIC with the help of these Master trainers so as to ensure smooth transition to the GSTN BO within the scheduled timelines.
In an interesting case booked by the Directorate General of GST Intelligence, Lucknow Zonal Unit, the officers gathered that three Agra-based taxpayers were availing fake Input Tax Credit (ITC) on the raw materials allegedly for manufacturing of `Handpumps’. The fake ITC on raw materials (@18%) was further used to issue fake invoices of handpumps (@5°/0) to non-existent entities without any actual manufacture and supply. Adopting this modus, the taxpayers were obtaining fraudulent refunds under an “inverted duty structure” with evasion amounting to Rs. 15.27 Crore so far. The mastermind of the whole operation, who has been placed under judicial custody, accepted the fraud committed and voluntarily deposited Rs. 5.21 Crore.
Till next week!
Yours sincerely,
(Sanjay Kumar Agarwal)
All Officers and Staff of the Central Board of Indirect Taxes & Customs.
