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TMI BlogIntelligence wing - Power, Roles and Responsibilities.X X X X Extracts X X X X X X X X Extracts X X X X ..... no longer continue in the same manner with the removal of inter-state movement controls and check posts. Other enforcement activities, including inspections, had been authorized at decentralized levels. The past track record of the actual collection from such activities shows that the amount actually collected as revenue is a tiny fraction of the amount initially shown as 'detected'. Enforcement activities have also witnessed numerous vigilance and anti-corruption inquiries over the years. The Government has emphasized that intelligence-based enforcement activities shall be carried out in an unobtrusive and efficient manner with senior officials under proper authorization and overall supervision and control of the Commissioner. The need to avoid indiscriminate investigation and to avoid any disrepute to the Department has been stressed. By their nature, enforcement activities involve some degree of risk and uncertainty. Enforcement activities can have three possible outcomes: i) Evasion has taken place and enforcement action is taken-this represents correct enforcement activity. ii) Evasion has taken place but no enforcement action is taken this represents an error of omission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... believe that:- (a) A taxable person has suppressed any transaction relating to supply of goods or services or stock in hand or (b) A taxable person has claimed excess input tax credit or (c) A taxable person has contravened any of provisions of the Act or the Rules to evade tax and (d) Any person engaged in the business of transporting or storing goods or is keeping goods which have escaped payment of tax or is manipulating accounts or stocks which may cause evasion of tax. Inspection of goods in movement and conveyances carrying consignment of goods may also be done by proper officers as per the provisions of section 68 of the GST Act to prevent evasion of tax. Though section 67 and 68 provide ample power to proper officers to inspect any places of business of the taxable persons or the persons engaged in the business of transporting goods or the owners or the operators of warehouse or godown or any other place or inspection of goods in movement or conveyance carrying goods to control tax evasion, such power shall be exercised prudently minimizing room for complaint from genuine tax payers. The power given under these sections is not absolute, but, according to sub-secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. The Data cell and the Survey cell shall function under the control of the Deputy Commissioner (Investigation) or the Assistant Commissioner (Investigation), as the case may be. These cells shall gather data or details in respect of such taxpayers as may be ordered by the Commissioner of Commercial taxes or by the Joint Commissioner (Intelligence) concerned or other taxpayers after getting permission from the Joint Commissioner (Intelligence) and provide the required data or details to the Investigation Unit. 2. The Investigation Unit, based on the data gathered from the Data Cell and Survey Cell or inputs from other officers, shall prepare the investigation file and submit the same to the Joint Commissioner (Intelligence). 3. The Joint Commissioner (Intelligence) shall examine the investigation file submitted by the Investigation Unit and if he is satisfied, he may submit it to the Central Intelligence Wing for getting the approval of the Commissioner of Commercial Taxes. If he is not satisfied with the investigation file, he may direct the Investigation Unit to furnish further particulars or may close the files for reasons to be recorded in writing. 4. The Investigation uni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , within a period not exceeding 30 days from the date of the completion of the inspection, pass the final assessment or adjudication order on the basis of the findings made during the inspection and available records. However, the period of 30 days may, on sufficient cause being shown and for reasons to be recorded in writing, be extended by the Joint Commissioner (Intelligence) for a further period not exceeding 30 days and further extension of time shall be granted with the approval of the Commissioner of Commercial Taxes. Where the proceeding is stayed by an order of the court or Appellate Tribunal or by any competent authority, the period of such stay shall be excluded in computing the above specified period. 12. The proper officer notified as adjudicating authority shall finalize the adjudication in respect of cases not finalized by the Roving squad during their duty hours and which were handed over to them by the Roving squad, at the earliest to the extent possible, but not later than 30 days from the date of completion of inspection or occurrence of the offence. However, the period of 30 days may, on sufficient cause being shown and for reasons to be recorded in writing, be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the expiry of the above said ninety days. Stay of proceedings or orders or decisions of the proper officer concerned by any legal forum or by any competent authority shall be excluded in determining the time limit specified herein. 16. The Deputy Commissioner (Inspection) shall ensure that the demand raised during any of the adjudication or assessment proceedings is collected within the due date and if not collected, arrear action shall be taken immediately by the Demand Collection Cell to realize the arrear. 17. The Legal Cell shall coordinate with the Legal wing in the office of the Commissioner of Commercial Taxes and Government Law officers in respect of cases pending before any legal fora and shall also ensure filing of appeal before any legal forum wherever decisions have been taken to file appeal, 18. The Joint Commissioner (Intelligence) shall have control over the entire Intelligence Division and shall exercise the powers and discharge the duties conferred or imposed on him under the Act subject to Such conditions and limitations as the Commissioner may impose as per the provisions of sub-section (1) of section 5 of TNGST Act. 19. In cases of any deviation from the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te or Union territory, unless a specific information relating to evasion of tax is made available subsequently, as mandated by sub-rule (2) of rule 138C of the GST Rules. 5. A summary report of every inspection of goods in transit shall be recorded online by the proper officer in Part A of FORM GST EWB-03 within twenty four hours of inspection and the final report in Part B of FORM GST EWB-03 shall be recorded within three days of such inspection. 6. The Roving Squad Officers, in respect of those cases where no decision has been taken by them during their duty hours, shall hand over the detained goods and conveyance along with the documents to the adjudicating unit immediately on completion of their duty. 7. Orders or decisions passed by the Roving Squad officers, along with -the relevant records shall be handed over to the Review Cell within two days of passing such orders or decisions. 8. It shall be the duty of the Roving Squad to record the name of the consignor and consignee GSTN and address in the relevant reports regardless on whom the penalty is being levied. 9. In cases of any deviation from the protocol stated supra, prior approval shall be obtained and in excepti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... locations as directed by the department of Agriculture. The goods are accompanied by invoice or invoice with delivery challan and E-way bill. The E-way bill has expired due to delay in making delivery at various locations. The expiry of E-way bill does not create any scope for evasion. In cases as in the examples, penalty of upto ₹ 5000/- per act shall be levied. 11. CIRCUMSTANCES WHERE PENALTY of ₹ 25000/- SHALL BE LEVIED: i) In the circumstances described in SI.No. 10 if any person repeatedly indulges in the same violation, a penalty of ₹ 25,000/- per act shall be levied to deter the recurrence of such offence. For this purpose the term "any person repeatedly" shall denote consignor or consignee who commits a violation more than once in a calendar month or twice in a calendar quarter or thrice in a financial year. ii) In all other circumstances, other than the ones falling under Sl.No.9, 10 and 12 a penalty of ₹ 25,000/- per act shall be levied. 12. CIRCUMSTANCES WHERE MAXIMUM PENALTY SHALL BE LEVIED: Where goods are transported without any of the prescribed documents like invoice, delivery challan, e-way bill, it is presumed that there is an inten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same goods make it an easy way for many taxpayers to evade taxes. In case of garments, a number of smaller players are billing one shirt that costs ₹ 1,000 above as two pieces of around ₹ 600 each to pay only 5% instead of 12% which is applicable for shirts which costs ₹ 1000/ and above. (10). Goods transported through railways, as it mostly moves unnoticed by the tax officials. PARAMETERS FOR OPENING INVESTIGATION FILE FOR CONDUCTINIG AUDIT OR INSPECTION Note : The parameters in the table below are only prima facie indicators and not conclusive. Proper study and analysis should be done before proposing Inspection / Audit. Sl.No. PARAMETER SOURCE OF INTELLIGENCE / DATA PROBABLE REVNUE 1. In respect of goods exempted under VAT, but taxable under GST, taxpayers may report less turnover under GST than what was reported under VAT. 1. VAT returns 2. Returns filed under GST (Comparison of turnover) In case the projected revenue loss is more than ₹ 5.00 Lakhs, IF may be opened. 2. Huge claim of Input Tax Credit with no appreciable, corresponding output tax payment. Regard shall be given to the nature of industry, trade, export and inverted duty struc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent) Act, 2016. Daily Report Format IF No. : Date : Trade name of the Tax Payer : GSTIN : Name of the Goods / Service : Name of the inspecting officers : Starting Time of inspection : Closing Time of inspection : Brief note on today's progress : Note: The brief note should contain the details of documents or goods detained during the time of inspection and the details of daily statement recorded from the person in charge of the business place under inspection or the authorized person, as the case may. Statement Investigation File (IF) NUMBER FORMAT a) Code - 3 alpha letters to identify the divisions. CH1 - Intelligence I Chennai CH2 - Intelligence II Chennai TVL - Intelligence Tirunelveli VLR - Intelligence Vellore MDU - Intelligence Madurai TRY - Intelligence Trichy ERD - Intelligence Erode SLM - Intelligence Salem CBE - Intelligence Coimbatore b) Division-wise running Number - 3 digits from 001 to 999 c) YYYY-Year format (4 digits) d) MM- Month Format (2 digits) e) DD - Day Format (2 digits) Example: SLM -001-20190513. The IF Number will be allocated by Commissioner of Commercial Taxes on app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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