CV 2: Understanding the Revenue Officer/ Their Perspective

26-03-2020 CA Madhukar N Hiregange, Adv Naveen Kumar K.S

Understanding the background of revenue officers could provide some insights in dealing adequately with the tax officers. We have Adv. BSV Murthy [ Retd. CESTAT Member] who shared as understood by me as under:

1.      The mindset of officers to be understood. We got a colonial legacy from the British. Officers considered themselves rulers. Some still have this way of being.

2.      Revenue Bias: Job is to safeguard tax; they fear the CVC, CAG, CBI (allegation of graft- for assessee favourable orders) Targets to be met. In case of harassment- complaints can be made politely to the higher officers in writing/ personally. This works in 99% of cases.

3.      Sometimes lack of fairness. Again in writing assessee view could be explained.

4.      Tax evaders would get no quarter- rightly so.

5.      At times spot adjudication is done. Principles of natural justice should be followed. Again write and do not pay/ reverse if in doubt.

6.      Some officers do not have an idea of GST to extent required. Govt. to teach and evaluate those who are tax payer facing officers.

7.     Threat of use of power. Over the past 50 years, the obligations of the tax payers have gone on increasing vis-à-vis the officers. The indirect taxation system is loaded against the tax payers and is in favour of the government. (No assessment by the officers, no submission of documents facilitating invocation of extended period, penalty for disagreement with the department, powers to attach property, bank account, debtors of the defaulter are a few examples).

  1. Decision of the supreme court about validity of the statement recorded by the officers has resulted in coerced admission statements based on which orders are passed and the relief comes only at the stage of the tribunal.
  2. Accessibility of senior officers to the assessee is a problem and threat of junior officers retaliation when senior officer is met is another problem.
  3. Bureaucracy has successfully stonewalled transparency efforts e.g. publication of pending refund claims, drawback claims etc.
  4. Use of statutory powers e.g. denial of credit under rule 86, action under section 129, imposition of penalties for each delayed return.
  5. Misuse/abuse of powers: Most of the powers such as use of vehicles, search, seizure, arrest, issue of notices, audit, inspection are misused.