The tax check posts play a pivotal role in the
revenue generation, revenue mobilization projects and revenue augmentation
projects. The aim and object of setting up check posts with erection of
barriers are to prevent, detect and arrest the tax-dodging episode by a section
of unscrupulous dealers. The administration of such project ought to be methodical
and law best with sincerity and high morality. Any imposition or influence,
exerted from out side the scenario may have an adverse consequential effect and
the system is likely to be cracked down with the inflow of indiscipline and
callousness. The Government of Assam introduced this constructive project long
back in 1971-72, when the Assam
Sales Tax Act, 1947 and the Assam Finance (Sales Tax) Act, 1956 were in
operation. The provisions of the said Acts were not very much rigid and dynamic
without a constructive vision. The amalgamated, consolidated and amended sales
tax law, the Assam
General Sales Tax Act, 1993 introduced from 01.07.1993 formulated a new
revenue-oriented vision.
Three
check- posts were set up originally in Assam in the year 1971-72 were : (i) The
Boxirhat Check post (in the territorial border of Assam and West Bengal); (ii)
The Damra (Sreerampur) Check post; (in the territorial border of Assam and West
Bengal) and (iii) The Churaibari Check post (in the territorial border of Assam
and Tripura). The other check posts set up gradually are-
(i)The Khanapra Check –post, (in
the territorial border of Assam and Meghalaya); (ii) The Narayanpur Check-post
(in the territorial border of Assam and Arunachal Pradesh); (iii) The Sukanjan
Check -post (in the territorial border of Assam and Nagaland); (iv) The
Dhalaibazar Check- post (in the territorial border of Assam and Mizoram); (v) The
Dighalkhal Check-post (in the territorial border of Assam and Meghalaya); (vi)
The Jalukbari Check-post (in the heart of the Guwahati city on the by pass of
the National High way); (vii) The Kabaitary Check (in the heart of the Jogighopa
town on the National High way); (viii) The Bhalukdubi Check-post (in the
territorial border of Assam and Meghalaya).
The Jalukbari Check-post, Kabaitari Check-post
and Bhalukdubi Check-posts were set- up with a view to check, prevent and
arrest evasion of taxes by the coal traders dealing in Meghalaya coal. Apart
from these, some temporary check posts are also functioning in different parts
of Assam, namely; (i) The B.G. Check post at Bamunimaidan to check the movement
of goods from B.G. railway-yard at New Guwahati and (ii) The Jagun Check post (in
the territorial border of Assam and Arunachal Pradesh) to check the trucks
importing coal from Arunachal Pradesh. The Batabari check post) was operating
near the Koliabhora-
Bridge on the Tezpur
(Mission Charali) - Kaliabar sector of the National High way, but this was
dismantled long back. Practically, there is no device to check the goods vehicles, coming
across Boxirhat and Sreerampur Checkpost
to Upper Assam and Arunachal Pradesh via Baihata Charali to Tezpur and Upper
Assam upto Arunachal Pradesh in the North Bank of Brahmaputra and (ii) from
Arunachal Pradesh, Dhemaji, North Lakhimpur and Tezpur to Upper Assam and the
north eastern side of Arunachal Pradesh. Any evasion of taxes during movement
of such goods vehicles can-not be detected. It is felt that setting up of a
check post at the juncture of two
National High Ways is very much essential.
The Government of Assam has not
set-up any check post in Assam-Manipur border. The Silchar Unit is functioning
as a Deemed check post in order to prevent evasion of taxes as the entry and
exit check post. The issue and endorsement of the transit passes are simply
farce. A good number of goods vehicles use to move freely and many vehicles
destined to Manipur terminate the journey in Assam causing evasion of taxes.
The writer of this paper gathered some
experience, when he was posted at newly established Damra Check post, set up in
an open hazardous place in 1971-72. There was practically no movement of the
vehicles on the incomplete Lateral
Road (now National High Way). A firm conviction
formed in the mind at the maiden hours that the austerity of the taxation
department and the integrity of the officers may not be maintained, as the
atmosphere of the check post will not likely to be healthy, but polluted. Now
with expansion of the project and incessant flow of traffic, the hazardous area
has been converted to a township. In
fact, such conviction of mind to some extent has come to the reality. This is
not required to be elaborated or explained.
Border check posts
Boxirhat Check Post – The Boxirhat Check Post is functioning on the same
complex since its installation in 1971-72 with renovation of the original
house- structures. The road passage in front of the check post is very narrow.
The raw of the incoming and the out-going goods vehicles on the either side of
the road creates heavy traffic congestion, causing thereby acute inconvenience
to other road users. No weigh bridge has been installed to get the accuracy of
weight of the goods disclosed in the challan-manifest; no wide platform has
been designed to unload and inspect the suspicious goods vehicles with the
provision of man power. Accommodation for detention of more than three or four goods
vehicles does not exist in the narrow passage in the front. The numbers of goods
vehicles may make way to escape from checking for want of these vital shortfalls.
A parallel road beyond the Boxirhat check post is also there and this posed to
be a serious threat to revenue generation for diversion of traffic.
Damra Check-post – The
Damra Check post has now been designed as a Composite Check post for the
unified functioning of the taxation and other allied revenue generated
departments. The checking operation can now be undertaken in a disciplined way.
The important infrastructures, like installation of weigh -bridge, adequate man
power for loading and unloading of the loaded vehicles are, however, still
non-existent. The vehicles, suspected have carried the over weight- goods, unauthorized
and unaccounted goods can-not be checked properly. A road near the Sonkosh Bridge via Bajugaon to Haraphuta is
there. If the said road has been improved by now, the small vehicles may have
thorough passage of movement through this diverted road.
Transit Passes
The Boxirhat and Damra check posts (the entry check posts) are to issue
transit passes as the entry check post in respect of the goods vehicles moving
to the places out side the State through the corridor of Assam. These
have as well to make endorsement of the transit passes as the exit check post
in respect goods vehicles from the other six sister States of the
north-east-region. Some times the endorsement of the transit passes proves to
be a farce. Some goods vehicles, obtaining transit passes, do not move
physically and the goods are sold in Assam as unaccounted goods. The
endorsement of the transit passes becomes a paper work only.
Some lacunea
The tea carrying vehicles are not checked
properly to acquire primary knowledge in relation to the actual character of
the goods moved. Whether these were meant for (i) auction sales, (ii)local
sales, (iii) inter-State sales, (iv) stock transfer or export are not properly verified from the inner (secret
documents) carried in the vehicles. Any perverse or ulterior motive may cause a
substantial loss to the State, if it remains unveiled. The drama of transfer of
stock by manipulation of sales deals is a fraudulent exercise by a section of
tea gardens of Assam.
Likewise, the character of the movement of raw (whether is sale or stock
transfer) can not be properly identified. Coal, imported from Meghalaya without
proper purchase and sale documents do not ensure accuracy of weight and other
allied matters. The sales value in respect of the consignments is never
verified by way of follow up action.
Khanapara Check-post- The Khanapara Check post was originally set -up at
the juncture of the Guwahati- Shillong Road and the National High Way by pass
at Khanapara. When the project for construction of the Four Lane- High- Way was taken up, the
check post had to be shifted and set up at Jorabat at the juncture of : (i)
Guwahati -Shillong Road
and (ii) Guwahati- Upper Assam
Road. The functioning of the office is carried on
from an interior building of the triangular- structured roads, lacking any
direct control of traffic.
The location of the check post is unique.
One leads to the places of Meghalaya, Tripura, Manipur and Mizoram States,
while other to the places of Upper Assam, Arunachal Pradesh, Nagaland and Manipur States. No barrier has been erected on
the roads. The goods vehicles use to move freely without any obstruction. Acute
shortage of departmental man power as well as other law enforcing machineries
has been causing immense administrative inconveniences in intercepting,
detaining and proper checking of the goods vehicles on both the roads. The
scanty man power, detailed at the check post, can hardly keep proper vigilance
on the road after attending arduous nature of duties in the office, like verification
of the documents with entry thereof in the records and on line transmission of
movement and other allied matters. The authenticity and accuracy of the
documents, declarations can not be verified properly for want of weigh bridge,
checking yard with unloading facilities and non-existent of labour element with
other infrastructures. Such checking works have, therefore, to be completed
half- heartedly. In night hours, the movement of illegal goods carrying
vehicles; gain the momentum. The on-line-communication is not always effective
for want of power supply, shut down of server and other odds. Moreover, use and
utilization of the on line vehicles are possible, when the goods vehicles are
within the ambit of the checking net. Any vehicle making escape, can not be
tagged under the purview of the on line system.
The term ‘Khanapara Check’ post is a misnomer one, in as much as, it is
located at Jorabat far away from Khanapara.
Next to Boxirhat and Damra check posts, this check-post is very much
important. The flows of goods traffics use to continue day and night. The
dealers, it is learnt, use to make movement of iron materials, cement, coal
etc. from the industrial, commercial and mine ore areas of Meghalaya areas in
dead hours of night and the same can not be properly apprehended and checked.
The goods vehicles coming from different places of within and outside the State
of Assam and more particularly from Guwahati, the nerve centre of business in
Assam, can not be checked or counter -checked for want of requisite
infrastructures, as discussed above. In many cases, the free flow of
unaccounted goods takes place on the strength of fabricated/ manipulated
documents, which make way for evasion of taxes.
As stated earlier, the issue and endorsement of the transit passes at
this entry cum exit check post on many occasions prove to be a farce beset with
the paper work only.
Way and style to be improved
Khanapara check post has been operating with much inconvenience without
having adequate infrastructure. There is ample scope for increasing the revenue
earning, but this can not be mobilized and materialed due to the unhealthy
location of the check post. The officers can not be blamed alone, as in many
cases, they are helpless. There haven
marathon flow of goods vehicles moving from- (i) six sister States of Assam; (ii) West
Bengal and other east, west, North and south States of India; (iii) Guwahati
and Upper Assam. A few vehicles can be intercepted and major portion escape
from checking. Non-erection of barrier and inadequate skilled man-power (officials,
security and labour) are primarily responsible for the mal-functioning of this
check post. Lack of strict executive supervisions and inspection are also
simultaneously responsible for unhealthy and inefficient functioning of the
check post. Lack of requite infrastructure has been added fuels to the odds.
There is scope for increasing the revenue if this check post is re-designed and
austerity is maintained in the mode of functioning.
It is felt that way and style of the present check post are to be
modified, reformed and renovated. The same is needed to be designed denovo.
The existing check post at Jorabat can-not ensure adequately proper generation
and augmentation of the revenue of the State. This check post is operating for
the shake of operation in absence of thought provoking programme. The present
location of the check post is not congeniel to arrest evasion of taxes and to
make way for legitimate earning of revenue.
Jorabat check post to be bifurcated
In our view, for the healthy and efficient collection of revenue of the
State, the existing check post at Jorabat may be dismantled and it is to be
bifurcated into two- (i) in between Kshetri and Jagiroad to check the goods
vehicles moving from Guwahati and Shillong side and (ii) two or three kilometer
away from Jorabat. When proper check post is set-up and barrier is erected in
either proposed check post equipped with adequate skilled man power and other
required infrastructure, proper checking of the goods vehicles will be possible
and the trend of evasion of taxes will be minimized.
Mobile Squad
There is no Vigilance wing or
Mobile squad to follow up the suspected goods vehicles, which may have escaped
proper checking either by defying signal or by not disclosing the actual and
proper contents of the goods and to apprehend the same. The present adequate
man-power in the taxation department, if organized properly and rationally and
detailed properly for checking of the goods vehicles, transport godowns and
business premises with godowns under the direct supervision of the Commissioner
of Taxes, a fruitful result is likely to be yielded. There should be a
computerized net-work on the lawful movement of the officers. The
mal-functioning will automatically be discouraged, if proper vigilance is their
with a constructive vision.
Narayanpur Check
Post- Narayanpur Check post is located in the Narayanpur
area of Lakhimpur district. Though it is termed as an inter-State border check
post between Assam
and Arunachal Pradesh, the entry point to (i) Arunach Pradesh at Bandardwa
remains about 15 K.M. away from the check post. In fact, the goods vehicles are
destined to the two parts of Arunachal Pradesh (i) via Bandarwa and (ii) via Lakhimpur
Dhemaji and Silapathar. The proper movement of the goods vehicles to Arunachal
Pradesh can not thus always be ensured and scope for diversion to the Assam
areas always remain there. The requisite infrastructures, as stated in earlier
cases, are as well in-existent in this check post. The episode of misuse the
transit pass is also existent.
Sukanjan
Check Post- This is an inter-State check post between
Assam Nagaland and Manipur, located near Dimapur, the entry point of Nagaland. Like
other check posts, as stated above, there is lack of adequate infrastructures.
Churaibari
Check Post- This check
post was set up in the year 1971-72 at the territorial border of Assam and
Tripura. This is another important check post in Assam and heavy traffic moves
through this check post. There is a proposal to install a composite check post,
but the same has not materialized so far. The requite infrastructures are
lacking alike other check posts of Assam.
Dhalaibazar
Check Post- Dhalaibazar check post has been set-up in the
territorial border of Assam
and Mizoram. The functioning of the check post is being carried on without the
requisite infrastructure, as in the other check posts.
. Dighalkhal check post- This check post has been set-up
in the territorial border of Assam
and Meghalaya. The requisite infrastructures are lacking as in the other check
posts set-up in Assam.
Deemed
check post at Silchar Unit: The Government of Assam has not set-up any tax
check post at Jiribam on the Assam Manipur territorial border, though in the
counterpart in the State of Manipur is reported to been installed. The Silchar
unit of Barak valley is functioning as the Deemed Check post for the purpose. Actually,
this meant for issue and countersignature of Transit Passes. It is quite absurd
that the said Deemed check post in any can play any pivotal role in checking,
preventing and arresting of taxes from a remote area of about 25 kilometer. A
huge leakage of State tax revenue is reported to be taking place consequent
upon non-setting up a check post in Jiribam area at the Assam-Nagaland border.
Presently, the Deemed Check post at Silchar is meant for paper works only.It is
in no way serving the purpose of checking, preventing and arresting evasion of
taxes. It is simply a farce.
Coal check-posts
Jalukbari Check-Post- The Jalukbari Check Post was originally set-up near the Jalukbari Police
Station (not very far from Saraighat
Bridge). The same was shifted
to Gotanagar, a place on the by pass of the National High Way of Guwahati City.
The main purpose of this check post is to check the Khasi coal of Meghalaya.
Though this project has been identified as the check post, but in real sense,
the proper functioning of the check post, is not there. There is no barrier to
intercept the coal moving vehicles. The vehicles are made stationary at the
check- post automatically for the purpose of procuring the countersignature of
the roads challans by the coal transporters at their behest, as otherwise they
will be answerable at the Kabaitari check post, railway booking yard and
inter-State check posts at Boxirhat and Damra (Sreerampur). No weigh bridge has
been installed to ascertain the accuracy of the weight of coal carried. In
fact, the accuracy of value of coal can be determined to some extent in
consideration of the weight of the goods carried, beset with the prevalent
market price thereof.
Powers to make assessment of tax
The Officer-in-charge of the check post
(taxing authority) of the Jalukbari check post, on the other hand, has been
conferred with the statutory powers of registration, assessment, recovery of
taxes with other allied functions under the sales tax laws, operating in the
State. In true sense, this check post is like a unit of the taxation
department.
The normal procedure is that the coal dealer are to apply for
registration under the Assam Value Added Tax Act, 2003 (VAT Act) and the
Central Sales Tax Act, 1956 (Central Act) before the check post authority. They
are registered on application, accompanied by the requite documents and
evidences on achieving satisfaction by the taxing authority. Such registered
dealers are to apply and to procure the road challans, countersigned by the
taxing authority on payment of security/additional security, so as to ensure
proper payment of tax on the goods moved against such challans. Under the
statute of the Acts, such amount of security is required to be paid by a dealer
after a reasonable opportunity of being heard is provided with reasons to be
recorded in writing. As a matter of convention, the taxing authority use to fix
a pre-fixed amount of security in this respect on the classified (weight-basis)
coal trucks. The mandatory provisions of the Act are not observed rather
ignored.
Generally, intention of obtaining the
countersigned challan is that the registered dealers, so obtaining the
challans, are to make movement of coal by goods vehicles on the strength of
such countersigned challans. Incidentally, some third parties get themselves
associated in such fantastic goods movement scenario. A common practice is that
such registered dealers use make sales of the countersigned challans, so
obtained, to some third parties at a higher price in respect of the challans than paid by
challan. In such exercise, no coal is sold by the registered dealers
physically. The purchasers of the countersigned challans use to make the
movement of coal under the banner of such countersigned challans, obtained by
the registered dealers. The third parties, therefore, enjoy the benefit of sale and purchase of the goods without
getting themselves registered under the laales rax law of the State,, while the registered dealer acquire
profit out of the sales of the countersigned challans. The registered dealers
submit returns. For that purpose, they prepare some fabricated accounts and get
the same audited by the Chartered Accountant. The taxing authority thereafter
makes the assessment on the basis of the prepared accounts. The actual persons
involved in the sale deals remain away from the picture.
No extra payment of tax is made the
said dealers along with the returns. The taxing authority use to forfeit a part
of the security to adjust against the tax as assessed on such fabricated
accounts. When the payment of security
paid by such registered dealers goes to a higher side, the balance amount ought
to remain in tact as security, which is subject to future adjustment against
the tax payable. A convention is, however, maintained that such excess amount
of security is to be processed for refund and the competent taxing authority is
to accord approval either for physical refund or for adjustment against future
security. Actually Section 7 of the Central Act (read with the Government of
India Notification No.643 dated 22.02.1957), vested the power of registration
with other actions to the taxing authority of the area, operating the general
sales tax law of the State (viz VAT Act). The administration of the said
Section 7 is not to be governed by the provisions of the VAT Act, which evident
in Section 9(2) of the Central Act. No delegation of power is also necessary
for exercising the provisions of Section 7 of the Central Act. This seems to be
very much confusing. This episode of refund of security seems to be meaningful.
Assessment of coal is fun-fare
In our discussion it is well reflected
that the actual seller of coal remains away from the tax levy scenario. The
quantum of sales and value received thereof do not come under the purview of
assessment. Such seller never comes to the picture. The dealer getting them
registered, obtaining countersigned challans are to face the assessment
proceedings on the basis of some imaginary challans. The taxing authority never
insists for furnishing the actual sales proceeds and make assessment on some
imaginary and fabricated amount of sales. Similar is the case of
refund/adjustment of the security money. This is amusing. A fun-fare is there
in the whole process. The quantum of actual sale value is much higher, which is
never followed up or investigated for the purpose of levy of tax.
.Local
sales to the brick fields and industries
A good numbers of coal dealers also use
to supply coal to the brick or other industries in the extensive areas across
the check post. Since there is no barriers to stop such coal vehicles and there
is no obligation to produce the countersigned challans, a section of the coal
traders make way to move such coal trucks without payment of security or countersignature
of challan. The State is thus being deprived of its legitimate revenue under
the VAT Act.
Kabaitari
Check Post : The Kabaitari check post was started near the
railway station at Jogighopa in 1993 in order to check the coal trucks from
Nangal areas of Meghalaya. This check post was originally functioning at Karbala in between Goalpara and Pancharatra but shifted to
Kabaitary, when the construction of Naranarayan Setu over the Brahmaputra
was nearing completion. A barrier has been erected on the High way and proper
checking facilities are available. Identical to the Jalukbari check post, the Weigh Bridge
and other infrastructures are not there. This check post is also functioning
simultaneously like a Unit and the check post authorities have been provided
with the power of registration, assessment and other allied matters in the
style of the Jalukbari check post. The shortfalls or deficiencies, as discussed
in the case of Jalukbari check post, are co-existent in this check post as
well.
Bhalukdubi
Check Post : A temporary
check post was set up near Dudhnai to check the coal trucks from the Meghalaya
(Nangal) coal fields. The requisite infrastructure has not been provided. The
operation of this check post is made by the tax officials of the Goalpara unit.
Jagun
Check Post : A temporary check post in functioning at Jagun
in the territorial border of Assam
and Arunachal to check the coal trucks coming from Arunachal Pradesh to Assam.
This road, in fact, is a part of the erstwhile Steel Well Road, leading to Myanmar. The
operation of this check post, in our opinion, may not be restricted to coal
only, but it is to be extended to checking of other goods vehicles for the
purpose of checking, preventing and arresting evasion of taxes.
If it is considered to be congeniel, provisions for the required
infrastructures are to be made accordingly.
Necessity of a check post near Sonari in Assam Nagaland
border
Of late, the coal loaded trucks are entering into the State of Assam for
trade activities. The State Government has already taken steps to check,
prevent of evasion of taxes on the sales of imported coal from Meghalaya and
Arunachal Pradesh. It may consider to set-up check post near the Sonari area of
Assam Nagaland border so that proper checking of evasion of taxes is possible.
At present some operation mission are under taken by the tax officials Sivsagar
unit at the best of the district civil/police authorities. A permanent
structure may yield substantial amount of revenue.
Coal Check Post may be non-functioning
The Government of India has completed a project of rail communication from
Dudhnoi (Assam)
to Mendipathar( Meghalaya). Another project has been undertaken to construct
the railway line from Digaru to Burnihat area of Meghalaya. When the railway communication
system will fully be introduced, the movement of coal by truck will
automatically be reduced, as it will make way for direct communication. The
revenue collection out of coal in the State of Assam will naturally suffer a
heavy set-back.
Goods exported to Bhutan
The export of goods on sales to the places out
side the territory
of India does not attract
any tax liability under the Central Act. The sales made to the exporter inside
or in the course of inter-State trade or commerce, are also exempted from tax.
There is no tax check post in the inter-national border of Bhutan. It
reveals sometimes from the media report that a section of traders makes sales
of goods in the course of inter-State trade or commerce, but design as export
and claim exemption of taxes by manipulation of documents. The custom’s
certificates, so endorsed in the Assam-Bhutan boarder are found to be one
sided. Unless there is rigidity, the State will go on losing the legitimate tax
revenue.
Set- back in operation of check posts
It is a burning topic of the day
that the trend of corruption in the check post has gone very high. But a
question simultaneously crops up -‘Where there is no corruption?’ The flow of
corruption has spread in all spheres of human lives. The corruption was there,
it is there and it will be there. This is evolutionary and there is the
question of degree. The slack and inefficient administration without proper
supervision is primarily responsible for this odd. The corruption extended from
the political level to the grass-root level. Of course, there is some
exception. The direct or indirect blessings and support from the high
ups and the political bosses leave room for the growth of corruption. In the
field of administration now the tiger and the goat use to drink water on the
same beach without any fear. In the earlier days, there was service discipline.
The misconduct of the employees invites disciplinary action. Now, by doing
major crime, fiscal anomalies the employees manage to escape, Adequate protection
is received from the co-associates. Appointment, transfer, postings etc. are
governed by the flow of money, as is commomly taking berth in the news media
and publicity media. The payments out of ill-earned money in many cases are the
regular features. One will be surprised to see that a newly appointee is less
eager to read the law books and and to study the departmental records, but they
are more concerned to earn black money. As a result, mode and standard of works
have gradually reached to the anti-climax. None can control. Only blame put to
the subordinates is meaningless. The category wise superiors, administrators
and high ups can not escape. The mode of
administration has already gone down and if is not repaired and upgraded a
collapse of the whole system will be inevitable.
How administration can be upgraded
A vacuum has been created in
almost all the administrative departments after retirement of the seasoned and
veteran personnel. The new generations are not very keen and enthusiastic to
fill up the vacuum and restore the traditional approaches with dynamism. It is
not possible on the part of the top officials to control the day to day
performances of the incumbents. The immediate superiors are to take up the tusk
category-wise chronologically. Primarily, there must have sufficient knowledge
regarding the assignment of such works and mode of performances. The filing
system and maintenance of case records of the taxation department was unique,
methodical and systematic. The Index Register, Assessment, Demand and
collection Registers reflect the dossier of a dealer like a mirror. The
area-wise, road- wise and lane wise survey with upto date entries of the
dealers provides a true and clean picture of the trades of all category with
their modus-operandi. If these are being done, it will be instrumental
to upgrade the revenue generation mission of the department. The tax payers are
the respected persons. They are not to be ignored and under-estimated. Proper
guide-line will curtail their astray-activities and bring to the right path.
Inspection, search and seizure are the important part of activities of the tax
officers, but it is to be undertaken with proper materials collected and should
be a go as you like process. The survey, inspection, search and seizures are to
be done methodically and not with high handedness.
Organization of Seninars and work shops
With the evolution of the society, a radical change is
taking place day by day. Dialogues and deliberations are necessary to implement
such changes. Seminars are to be organized periodically to exchange views, to gather knowledge and to come to conclusion.
Frequent holding of workshops exchange and mobilization of the theoretical and
practical approaches has a dire necessary. Such constructive measures will, no
doubt, up grade the functioning and the
austerity and gravity of the department will be enhanced.
