No. E1-63057/94/TX. Board of Revenue (Taxes)
Thiruvananthapuram,
Dated 9-1-96
Circular No.6/96
Sub:- P.A.C. Meeting held on 2.1.1996 – decision regarding
the speedy settlement of Draft Paras and L.A.R. cases –
instructions issued -
Ref:- Board’s Circular No.10/93/TX dt. 27.5.93
1. the Public Accounts Committee, while discussing the Audit Report of the Comptroller & Auditor General of India for the year ended 31.3.92, has commented very adversely in its meeting held on 2.1.96 about the long and inexcusable delay on the part of the Department in furnishing final reports to the Accountant General on Draft paras. The Committee has pointed out that the Department has not been able to adhere the standing instruction in this regard that the final reply on Draft paras should be furnished within 6 weeks from the date of receipt of such cases. The Board finds that the observations of the Committee is fully correct. Even in respect of cases relating to the year 1991 which came up for discussion on 29.1.96 before the Public Accounts Committee, the Board could not forward the final report to Government for want of requisite report from the following Deputy Commissioners:-
1. Dy. Commissioner, Kottayam : M/s. New India
Rubbers.
2. - do - : M/s. Zacharia & Company
3. Dy.Commissioner, Ernakulam : M/s. Goodlass Nerolac
Paints.
4. - do - : M/s. Sherry Enterprises
5. Dy.Commissioner, Alappuzha : M/s. Mc Dowell &
Company.
2. The pendency of Draft para cases as on 1-1-1996 is also alarming. The year wise pendency of Draft para cases in which final reply is still due from the Deputy Commissioners is detailed below:-
Year S.T AIT Total
1974 - 1 1
77 - 2 2
78 3 3 6
79 1 3 4
80 1 4 5
81 3 7 10
82 1 13 14
83 4 6 10
84 6 14 20
85 7 27 34
86 22 38 60
87 18 32 50
88 22 45 67
89 23 42 65
90 26 33 59
91 18 39 57
92 45 32 77
93 55 37 92
94 30 31 61
95 56 25 81
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Total 341 434 775
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3. The above position clearly indicates that the concerned assessing authorities, immediate controlling officers and the Deputy Commissioners have not shown much concern and seriousness on Draft paras despite the fact that the officers have been alerted from time to time by D.O. reminders, Telephone messages and Teleprinter messages from the Board, over and above the clear instructions issued as per Board’s Circular No. 10/93/TX dated, 27.5.93 (H2.34412/92/TX). In the above Circular the Board had warned the officers that disciplinary action would be initiated against the persons responsible for the abnormal delay in sending reports on Draft Paras. But it is regrettable that the officers have paid scant attention to the instructions. This has to be construed as nothing but sheet slackness and violation of the standing instructions of the Board. The very purpose of communication of the Draft Paras to the Deputy Commissioners without being sent direct to the officers concerned, is to ensures that the reports received from their subordinates are factually and legally correct and also to see that errors/irregularities if any committed by the assessing officers at the time of revision of assessment based on the audit observation are corrected/rectified without any loss of time, by issuing appropriate directions. The delay noticed in the officer of the Deputy Commissioners ranges from six months to one year. There is no justification for the undue delay on such important communications like Draft Para cases which will find a place in the Report of the comptroller & Auditor General of India and ultimately come up before the Public Accounts Committee for discussion. Of course, there may be cases in which factual reports could not be sent within the stipulated period for want of assessment records as they might be with Law Offices, Tribunal, Deputy Commissioner (Law), High court etc. In such cases, the assessing authorities, immediately on receipt of the Draft Paras, should take action to get back the records through special messenger for the preparation of the report.
4. As regards the rectification of defects pointed out in the Local Audit Reports of the Accountant General, the position is much worse as the defects pointed out early in 1986 are still pending rectification. The pendency of Local Audit Report both under Sales tax and Agrl. Income Tax as on 1.1.96 is detailed below:-
No. of Reports No. of Defects
S.T. 1119 11695
AIT. 485 4535
Total 1604 16230
5. Although rectification of defect is being watched by the Board and Government, the slow process of action in this regard invites adverse criticism by the Public Accounts Committee. The Government have formed a Monitoring Committee for the purpose of watching the progress achieved in the matter of curing of defects and the committee is reviewing the position every month. The Committee has expressed its serious displeasure considering the huge accumulation of paras pending rectification. They Deputy Commissioner (Audit & Inspection) also visits the offices, personally scrutinizes the files of Local Audit Reports and arranges with the officers for speedy settlement of the audit objections. Even then the result achieved is disappointing. It appears that the implementing officers namely the assessing authorities have not bestowed their attention to this important item of work as in the case o assessment and collection. They should bear in mind that this is also part of their work and they cannot absolve themselves of the responsibility in case the assessments could not be revised due to limitation of time even though the objections were raised well within the period of limitation. Occasionally, the Board could notice that due to non-revision of the assessment in time even after acceptance of the audit objection, the State has sustained loss for which action is being pursued to recoup the loss from the officers responsible who allowed the assessment to get time-barred, after detection of the audit objection. The delay on the part of the officers in the matter of furnishing reports and also revision of assessments has even led to the criticism that the officers responsible for the lapses are allowed to retire from service without initiation of suitable penal action against them.
6. The Board therefore finds that responsibility is to be fixed on the assessing authorities, immediate controlling officers and Deputy Commissioners so as to forward the rectification reports within a reasonable period. In case abnormal delay is noticed without reasonable cause, the officers personally held responsible and they will be visited with severe disciplinary action. The Board has given an assurance before the Public Accounts Committee that undue delay will not recur in the matter of rectification of defects and also furnishing of reports on draft paras in future. In order to carry out the assurance given to the Public Accounts Committee and also to watch the speedy settlement of the audit paras, the following further instructions are issued:-
(1) The Deputy Commissioners, Inspg.Asst. Commissioners, Sales tax Officers and Agrl.Income tax Officers should bestow personal attention on furnishing the replies to the Local Audit Reports and Draft Paras/for which separate registers should be maintained in each office. The assessing authorities, on receipt of the Draft Para, should furnish the factual report along with the connected records to the controlling officers within 10 days without fail.
(2) The immediate controlling officers should furnish the report to the Deputy Commissioners concerned along with the connected records and remarks within 5 days.
(3) The Deputy Commissioners should examine the reports of their subordinates with reference to the connected records and draft paras and forward factual report with their comments and the records to the Board within 15 days at the latest. Particular care should be taken by them for analyzing the factual and legal position as to the correctness of otherwise of the audit objection.
(4) The immediate Controlling Officers and the Deputy Commissioners in the course of their inspections of the subordinate officers should personally verify the registers maintained for the purpose and the local audit report files and Draft Para cases in order to see whether reports are being furnished to the Accountant General and the Board within the prescribed time. In case, any laxity is noticed, this should be reported to the Board for further action specifying the name of officers who have failed to adhere to above instructions.
(5) The Sales tax Officers/Agrl.Income tax Officers and Inspg.Asst.Commissioners should fill up the three proforma enclosed in this Circular and should send up the same to the Deputy Commissioner concerned on or before 10th of the succeeding month.
(6) The assessing authorities should report the name of officer who completed the assessment direct to the Board on Draft para cases in case the audit objection is found correct within 3 days of receipt of the Draft Paras.
(7) The Deputy Commissioners should conduct a review every month regarding the progress of action taken for the rectification of defects and should forward it to the Board on or before 15th of succeeding month together with the proforma prescribed.(8) While assessing the performance at the time of writing up of Confidential Reports of the assessing officers, the controlling officers should evaluate this item of work also.
(9) In future, should any revenue loss occur to Government, assessing officers, immediate Controlling Officers, Deputy Commissioners will be held responsible and they will be charge-sheeted leading to realization of the amount from such officers.
(10) The Deputy Commissioners acknowledge this Circular by return and should get acknowledgement of the Circular from their subordinates and furnish a Certificate to that effect to the Board within one month of the receipt of this Circular.
The monthly review of the Deputy Commissioners will be further reviewed by the Member.
Sd/-
First member
To
All Officers
Approved for issue
Sd/-
S. Jayaraj
Deputy Commissioner
(Audit & Inspection)
Annexure – I
Statement Showing the Details of Draft Para Cases Pending for the Month
of ………………….…1996.
Sales Tax/Agrl.Income Tax
| Name of Office |
Total No. Cases Pending As on 1.1.1996 |
No. of D.Ps. newly Received During the Month |
Total No. of D.Ps in which final report to be furnished |
Final report furnished during the month |
Balance pending |
To whom pending |
Reason for the pendency |
| 1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
Annexure – II
| 1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
Annexure – III
Statement Showing the Details of L.A.Rs. Pending for the Month of …………..
Monetary Limit Below Rs. 10,000/- AIT/ST.
| Name of Office |
Total No. of LAR.s pending as on 1-1-96 |
Total No.of LARs received during the month |
Total No. of paras pending as on 1-1-96 |
No. of paras newly received during the month |
Total number of paras to be disposed |
No.of paras in which rectification report furnished to A.G. during the month |
Balance No. of paras pending rectification |
No. of paras dropped by the A.G. during the month |
Remarks |
| 1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |