Development of Guwahati City

 Assamese article on Development of Guwahati City

Historic Undivided Goalpara District ( Article )

 

 Assamese article on Historic Undivided Goalpara District

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Assamese article on Mohamed Ali Carim Chagla

Taxation- A concerted phenomenon for upgradation of economic platform

Taxation means the system of imposition and collection of tax. Tax, on the other hand, means, the money demanded by the Government from the income of the citizen or on the value of the goods, bought or sold, or by other ways and means, adopted to collect revenue to the Government coffer within the frame-work of the Constitution or under the statute of the law, operative in this behalf.

Taxation in pre-imperial rule
 Taxation is not a new phenomanon in the history of India. It had the age- long tradition since Ramayan and Mahabhat era. The measure of tax in  the past, in fact, used to continue as a matter of convention, the mode and manner of extraction being harsh, beset with untold ingredients of torture and cruelty.The Land Revenue was the primary source of royal earnings with other ancillaries, adopted, from time to time. Such measures were, however, not systematic, rather haphazard, clumsy and cumbersome.  In the  Mauryya era, the great deplomate and economist Kautilya or Chanakya played a pivotal role towards the acceleration of administration commensurated with the ways and means towards upgradation of economy. In his famous  precious book  “Kautilya’s Artha Sastra”, this great man of giant personality formulated the unique technic of administration with various guide-lines, wherein the spheres of fiscal discipline in the field of administration gained the momentum.To speak the truth, Kanishka or Chanakya was the father of modern administration and economy, who designed a broad  platform centuries aback.

Imperial Rule in India
At  the out-set, say, from 2000 - 3000 B.C.till the early part of the 12th century, India was  ruled by the Hindu Kings with utmost glory and grandeur; but since 1206 A.D., the Muslim dynestic rule was set-up by Kututubuddin Aibek of Das Dynesty following the invasion  of the country by his master Mohammed Ghori of Ghazni dynasty  of Turky. The traditional marathan Muslim regime continued till 1712 A.D.,that is, upto the demise of the Emperor Bhadur Shah, the last Mughal dynestical ruler, which kingdom being set up by  Emperor Babar in 1526 A.D., The East India Company of England, a business organization, which came to India for trade and commerce purposes instantaneously changed their  modus-operandi on being tempted by the unparallel visible and potential wealth and property resources widely spread in the nooks and corns of the country ( east and west and north and south). They took up the helm of administration of India in a piece meal way by applying might and by hook or crook taking advantage of  utter weakness and unbecoming and  uncompromising  feuds and fall -outs  amongst the rulers  besides other internal chaos and  conflicts, those parallely being cropped up.  Ultimately, the entire Indian territorial administration came to their grip one after one under a single banner. The Ahom Kingdom of Assam, which had the unbreaking period of administrative regime for long 598 years (from 1228 to 1826 A.D.) in greater Assam ,also came under the grip of the East India Company following  the Yandabu Treaty, signed by the said company and the earlier invaders of  Assam, the Mans of erstwhile Burma, (now Myanma). During  the tenure of great Queen Victoria of England the British Government took over the administration from the East India Company on the 1st November, 1858 A.D. and started to rule the country through her representative, the Viceroy of India.  Since then, Assam  became a part of great Britain as a province of intregated and consolidated India. The province of Assam was primarily divided into ten districts on 6th February, 1874. The British Rule in India continued upto 1947 and on the 15th August , 1947, India  got its independance following  marathan  struggles and movements both violent and non-violent. But the most tragic part of the happenings was that India was bifurcated and Pakisthan took birth as a muslim dominated country in the global map. India is now a Sovereign, Secular, Socialistic, Democratic Republic since 26th January, 1950. Assam being  the part of India (a province since 1874) and now it is a State of the territory of India.
                     During the Muslim regime, the measures of taxation were there, but in many occasions, it posed to be detrimental to the interest of the Hindu inhabitants. Even, the Emporer Aurangeb used to levy  Jijia tax on the Hindus obviously playing a distinctive communal game to oppress and suppress the non-Muslim community. This was not the single instance, but there were  many. In a nut shell, the measures of taxes were there, but the levy and colletion lacked proper discipline and the requisite sense  of  justice and equity were lacking.

Tax administration in Assam under the British Rules
Our instant topic of discussion, in fact, is taxation in Assam though we designed it in a broad title ultimately to cover the State of Assam, one of the North Eastern States. During the hours of British reign since 1826 A.D., various measures of taxation were adopted. The prominent amongst them were Land Revenue, Excise Duty, Stamp Duty etc. There was Zamindari system in the erstwhile undivided Goalpara  district. The Zaminders or Kings became loyal to the British Goverment in lieu of payment money and other precious gifts. The said Zaminders were the agents of the Government in power in the matter of collection of such revenue resources and other gifts. In other areas  of Assam, the Mouzadars played the pivotal role in this matter.  The mode and manner  of collection and extraction of such revenue were not healthy, but was full of cruelty and brutality to the poor class of people.

State taxation laws
Tax under the Govt. of India Act,1935
Pre-independance  period
The British Government  enacted the Government of India Act in 1935, whereby, the people of India were, inter-alia, provided with a part of autonomy on certain matters to execute such power through their elected representatives, but, those too, were under the royal authority. Taxation was one of the subject of matter of such power of the allegedly designed autonomy. The system of levy and collection of Municipal tax in urban areas and house tax in rural areas also did prevail. A number of States adopted the measures of sales tax in 1936-37, but the Goverment of Assam introduced the following tax measures after enactment of law in 1939 only.
 The measures of tax were the following :-

 1. The Assam Sales of Motor Spirit and Lubricants Taxation Act, 1939- from 1st May, 1939 . A tax on sales or purchase of Petroleum and Lubricants This was, however, replaced by The Assam (sales of Petroleum, Petroleum  Products including Motor Spirit and Lubricants Taxation Act, 1955 from 1.5.1956 with gradual additions of numbers of refinery products and petro-chemicals products besides crude oil. This law was merged with the Assam General Sales Tax Act,  an amalgamated, consolidated and amendment of four operating Acts, namely;   the Assam Sales Tax Act, 1947, the Assam Finance (Sales Tax) Act, 1956, the Assam Sales of Petroleum, Petroleum Products including Motor Spirit and Lubricants Taxation Act, 1955 and the Assam Purchase Tax Act, 1967 from 1.7.1993. The Constitutional Safe-guard, in fact, was existent there in the new Act (The Assam General Sales Tax Act, 1993) by entry 54 List II (State List) in the Seventh Schedule of the Constitution. With the introduction of Assam Value Added Taxation Act, 2003 from 1.5.2005, the items of goods, as were there, were incorporated in the said Act. Contrary to the spirit and intention of the Assam Value Added Tax Act, crude oil, petroleum products and petro-chemical products, the items of first point tax in the State, continued to be administered by this Act without any separate base or footing, exceptions, whatsoever.  The items crude oil, petroleum,petroleum producuts with other ancillaries as well do not have any impact under the Goods and Services Act, 2017 and it has its independant way   of administration probably being carried on by the Assam Value Added Tax Act, 2003.

2. The Assam Agricultural Income Tax, 1939-from 1.4.1939. This is a tax levied   on the agricultural income of the agriculturists. This is seperated from the Indian Income Tax Act, 1961, which is a Central Act with measure of tax on income other than agricultural income. But  40% of the  income derived out of tea, an agricultural product,  is bifurcated and counted for levy of tax under the Indian Income Tax Act, as being the  alleged income derived out of trade. The State can levy tax on the remaining 60% of the income derived out of such production of tea, that too, subject to determination by the Income Tax authorities, a Central Government revenue wing. However, a disparity and discrimination besides over-riding the power of the State taxing authorities are being obviously continuing there. Not only that, the Income Tax Act made it mandatory that the income determined by the income tax authorities has to remain binding on the aggricultural income tax authorities without any power to call in question obviously thereby superseding the manadatory powers laid down in the Assam Agricultural Income Tax Act,1939. A funny aspect is, no doubt, transparent in the administration of this Act.
             This Act has now the base of entry 41 of List II (State List) in the Seventh Schedule of the  Indian Constitution.
         
3.The Assam Amusement and Betting Tax,1939- from 1.8.1939. A tax on Amusement , betting and on use of Cable Television  (being added subsequently). It continued to be operative even after the Constitution of India was adopted. The Constitutional safe-guard was obvious, as envisaged in entry 62 List II (State List) of the Seventh Schedule of the Constitution of India,.
        This measure of tax has been brought under the purview of the Goods and Services Tax Act, 2017 with effect from 1.7.2017.
Post independence period
         After the independence of India, but before the the Constitution of India came into force from 26.1.1950, the Government of Assam enacted the following taxation laws, as mentioned below :-
       1. The Assam Professions, Trades, Callings and Employments Taxation Act, 1947-  from 1st May, 1947. This tax measure was introduced on professions, trades, callings and employments. The  measure of income tax, adopted by the Government of India is a tax  on the net income derived out of income, while the taxes under this Act are levied on the professions, trades, callings and employments. The gross income has been designed as the measuring scale on such items  for levy of tax. Apparently, this is not a double tax on income. This Act is being administered independently by the State taxing authorities and it is well guarded by Article 276 read with  entry 60 of List II (State  List) in Seventh Schedule  of the Constitution of India.
  2.    The Assam Sales Tax Act, 1947 – from 24.12.1947. The measure of tax on the sales and purchases of goods,  was introduced in Assam with  exemption of tax on certain commodities. The tax  on transfer of property in  goods effected in course of execution of works contract and the goods handed over on lease for temporary use by the lessee  without any change of ownership, were  also brought under the  purview of this Act. This Act  was well safe-guarded by entry 54 List II (State List)of the Seventh Schedule of the Constitution.
        This Act was amalgamted with the Assam General Sales Tax Act,1993 with effect from 1.7.1993. There after, it was incorporated with Assam General Sales Tax Act, 1993 from 1.5. 1993 and then again with the Assam Value Added Tax Act, 2003 from 1.5.2005. Now with introduction of the Goods and Services Tax Act, 2017 with effect from 1.7.2017 this  is being governed by the said Act.

Post- Constitutional period
          After the Constitution of India, which came into force from 26.1.1950, the following taxation laws were enacted.
                1.The Assam Taxation on goods carried by Roads and Inland Waterways Act, 1954--  from 24.4.1954. This taxation law was introduced  on the carriage of tea and jute (on weight basis) by road or waterways.  This Act was declared ultra-vires by the Supreme Court of India, as the requisite assent was not obtained from the President of India  under Article 304(b) or 255 of the Constitution of India before  or after the enactment of the said law. The said Act was reintroduced to safe-guard the earlier collection of tax, but the Act finally ceased to be operative after 31.3.1962. This Act was enacted under the authority of entry 56, List II (State List) –Seventh Schedule of the Constitution of India.
           The loss incurred for inoperation of this Act, was compesated by enactment of the Assam Passengers and Goods Taxation Act, 1962, which came into force from 16.8.1962 (as is being discussed latter), based on the said consttutional footings.
          2.The Assam Finance (Sales Tax) Act, 1956- from 1.7.1956. This enactment of law was introduced for the purpose of levy of tax on the sales of some specific goods, which were (i)  imported from out side the State of Assam or (ii) manufactured or processed in Assam for the purpose of sales. This was done under the authority of Article 304(a) read with entry 54 of List II (State List) in the Seventh Schedule of the Constitution of India to avoid discrimination between imported and manufactured or processed goods. This reached to the same fate as in the case of the Assam Sales Tax Act, 1947, as discussed above.
             3.The Assam Passengers and Goods Taxation Act, 1962- from 16.8.1962- The requirement for enactment of this taxation Act  was partly discussed against the item  1 above (Viz the Assam Taxation of Goods carried by Road and Inland Waterways Act, 1954). This has the same Constitutional base as was in the said Act. This tax was leviable on the fare and freight of the passengers and goods, carried by roads and waterways on hire.
           The power of administration of this Act was transferred to the transport administration of the State in the year 1989.
           4. The Assam Urban and Immovable Property Tax Act, 1963- from 1.4.1963. Entry 49  List II (State List) of the Seventh Schedule of the Constitution of  India empowered the State Legisture  vide item ‘Tax on Lands and Buildings’ to enact such a law. The administration of this Act was solely extended for the Urban areas, which were under the Municipal or the Town Committees and it is leviable to the the owners of the lands and buildings on the rental value of such lands and buildings, determined by the Municipality or the Town Committee authorities.
       The power of administration of this Act was transferred to the Municipal and Town Committee authorities in the year1971-72, as it was more relevant to the said authorities.
           5.The Assam Electricity Duty Act, 1964-  from 1.4.1965-  Entry 53 Lst II (State List) of the Seventh Schedule of the Constitution of India empowered the State Legislature to levy tax on consumption or sale of electricity.With such power conferred, the Legislature of Assam enacted the Assam Electricity Duty Act, 1964 to levy tax on the generation, consumption and distribution of electrict energy. This tax is leviable in units.
        The Act is till now operative within the State of Assam.The users, consumers, in fact, are to bear the burden of this measure of tax.
       A section of persons in the electricity board is enjoying the benefit of free payment of rent for consumption of electricity. Likewise, in some temporary supply  of electricity for different purposes, the rents are being paid on lump sum basis. A pertinent question arises  whether duty, as due for consumption, use or supply are being paid to the State Coffer properly or not ?
           6. The Assam Purchase Tax Act, 1967- from 3.7.1971- The Constitutional back ground of this Act is the same, as is in the case of the Assam Sales Tax Act and other two laws on sales and purchases of goods within the State of Assam.  This measure of tax  was on the last point  purchase of  jute, raw hides and skins and paddy.  The  Act was originally given effect from 29.5.1968, but following the cases of litigation in the Court of law and disposal  thereof against the State further amendment of the Act was necessary .It was thus given effect from 3.7.1971 causing loss of revenue for three years.
    This Act as well  reached the same fate as in the case of other three Acts, namely; the Assam Sales Tax Act, the  Assam Finance (Sales Tax)Act and  the Assam (Sales of Petroleum, Petroleum Products including Motor Spirit and Lubricants )Taxation Act, 1955. 
          7. The Assam Tax on Luxuries  (Hotels, Lodging Houses And Hospitals Act, 1989- from 1.4.189 original Act and from 29.8.2009, the Hospital Act. The tax on luxuries has the same base like that of the amusement and betting tax, as envisaged in entry 62 List II (State List) in the Seventh Schedule  of the Constitution of India. Taxes are leviable under this Act on the accommodations, services and amenities provided in the Hotels, Lodging Houses and Hospitals (other than the Government Hospitals).
     This Act was merged with Goods and Services Tax Act,2017 with effect from 1.7.2017.
            8.The Assam Taxation (On Specified Lands) Act,- from 1.1.1990. This Act was introduced by virtue of power conferred to the State Legislature vide entry 49- List II  State List) in the Seventh Schedule of the Constitution of India.  Originally, this measure of tax was introduced on the lands taking into consideration the quantum of production of green tea leaves and extraction of coal.The weight pertaining to the production or extraction was a measuring Scale for determining the tax on land. The item coal was withdrawn from the tax scenario for a short time, but it was reintroduced. Other items, added in this respect ,were crude oil, natural gas, lime stones etc.
            The Act was challenged before the Hon’ble High Court and the Supreme court of India on the plea that it is not a tax on production of tea or extraction of coal, but it is a tax on the land. However, after a Memorandum  of Understanding signed by  the appellants and the State Government of Assam, the cases were withdrawn and the rates of tax were reduced from 50 paise to 18 paise per kilogram of tea produced. That, it was a levy of tax on land and not on the green tea leaves was confirmed by Hon’ble Calcutta High Court, in some identical case in West Bengal, but the  Government. Had nothing to do following the Memorandum of Understanding signed hurriedly.This Act is operating till now yielding a substantial amount of revenue to the State coffer, though there has been a shortfall, as no power of inspection and seizure of goods were incorporated in this Act.
            9. The Assam General Sales Tax Act, 1993-  from 1.7.1993. This has the same constitutional base, as has been discussed in the cases of the four taxation  laws in relation to the sales and purchases of goods in Assam. Following the dire necessity felt to mininimize the work load of administration, which involved time factor as well, these four  taxation laws  in relation to  the sales and purchases of goods operative in Assam, were amalgamated, consolidated and amended in Assam and the Assam General Tax Act, 1993 to give birth to this new Act for operation in the State of Assam. This has the same constitutional base as in othe sales and purchase tax Act.
       This Act was an ideal one and continued to be operative till the Assam Value Added Tax Act,2003 on 1.5.2005, which was subsquently replaced by the Goods and Services Tax Act, 2017  from 1.7.2017.
             10. The Assam Taxation  (On Luxuries) Act, 1997 –from 1.8.1997- The constitutional base of this taxation Act is identical to the Tax on Luxuries (Hotels, Lodging Houses and Hospitals) Act,1989, but the subject matter, mode and manner of the measure of tax is different. The tax was leviable on the  stock value of luxuries, namely, of Cherrots, Cigerettes, Cigar, Scented  Tobacco including Zarda, Smoking Mixture for Pipes and Cigerettes, Mill made Textiles and Fabrics. The operation of this Act got yield of a substial amount of revenue to the State.
          The Hon’ble Supreme Court of India by a judgment and order passed on 21.1.2005 declared the incorporation of the items tobacco and Gudka as ultra-vires and the Act thereafter ceased to be effective.
           11.The Assam Entry Tax Act, 2001- from 1.10.2001. The  Assam Entry Tax Act, 2001 was introduced under the authority of  Entry 52-List II (State List) in the Seventh Schedule of the Constitution of India. Originally, the aim and object of this Act was was to levy of tax on some specified goods entered into any local areas of Assam from the places outside the State of Assam for use or sale. The intention of this Act was to prevent a section of traders  or consumers to purchase goods in places outside the State of Assam  and to bring such goods into Assam for onward sale or  use depriving the State of its revenue.   After 18 days of coming into force of the said Act, the Act was, however, amended abruptly and apart from entry  of goods  into Assam, the entry of goods from  one local area in Assam to any other local area in Assam  were  made  liable to be taxed. Thus apart from the character of tax  on entry of goods, it was simultaneously designed with  the character of Octroi tax.
            A  portion of this Act was declared ultra-vires by the Hon’ble Gauhati High Court on  17.11.2006 for the constutional lapses, which decision was upheld on appeal by the larger Bench of the said Court. The Act was thus repealed and a fresh law on  Assam Entry Tax was enacted and given effect from 13.4.2008 with the power of the  State to realise the earlier taxes.
     With the introduction of the Goods and Services Tax Act, 2017 from 1.7.2017, this Act ceased to be operative.
       12. The Assam Value Added Tax Act, 2003-  from 1.5.2005- This is a new measure of levy of tax on the sales and purchases of goods. It is a tax leviable at every stage of sale made by a registered dealer to another registered dealer with the provision of credit of input tax paid at the points of purchase of such goods made, It is leviable at different stages like (i) sale of raw materials (ii) manufactured or finished products and (iii) the goods imported from the places outside the State of Assam and sales thereof. The issue of Tax Invoices in case of whole sale and Retail Invoices were made imperative in relation to the transaction. With the addition of value added tax, the prices of the commodities naturally went up. The dealers were benefitted, the State Government used to get the legitimate amount of tax,  but the consumers had to suffer multiplicity of tax following the merger of tax in each stage of sales (i.e value added tax). Though the aim and object of this Act was to provide transparency, but in the field of activities it was not as good,as it was assured to be. Though the items pertaining to Petroleum and petroleum Products were excluded from the purview of this Act,  the administration in relation to the said measure of tax were being carried  on under the said Assam Value Added Tax Act with the identical system of administration.  This was indeed contrary to the main ideology of the operative law .The Act was repealed following the introduction of the Goods and Services Tax Act, 2017, while petroleum, diesel etc. maintained their own base. 

The Central taxation laws
            1. The Central Sales Tax Act, 1956-  Prior to 5.1.1957, there was no measure of tax on the sales and purchases of the goods made in the course of inter-State trade or commerce. Article 269 (3)(g) read with entry 92A of List I (Union List) in the Seventh Schedule of the Constituion of India empowered Parliament to make laws for  levy of tax on thes sales or purchases of goods made in the course of inter-State trade or commerce.  Parliament enacted the Central Sales Tax Act, 1956, which  came into force from 5.1.1957. The items of goods, which were taxable under State taxation Laws were as well to be levied tax under  the  this Act, when sold in the course of inter-State trade or commerce. Two categories of the rates were persistant, namely; for sales to the registered dealers under the Act and sales  to other than the registered dealers. The transfer of stock of goods were not be taxed under this Act subject to the conditions and restrictions , as imposed. The State Governments were empowered to grant exemption of tax on certain commodities or to certain areas under the provisions of this Act.
      This taxation law ceased to be existent following introduction of the Goods and Sevices Tax Act, 2017 from 1.7.2017.
         2. The Goods and Services Tax Act, 1917- from 1.7.2017- The Government  of India gave a new thought to make restructure of a series of the Central and State taxation Acts not only in respect of sales  or purchases the goods and other ancillaries,connected therewith, into one Act under a single tax net as a measure of simplification of administration as well as growth of economy for the entire the country as a whole. The central taxes intended to be merged were the Central Excise Duty; Additional Excise Duty; Exice Duty levied under the Medicinal and Toiletories Preparation; Service Tax; Additional Customs Duty commonly known as Countervailing Duty; Special AdditionalDuties of Customs ; Surchage and Cess; Central Sales tax, while of the States, the Sales tax, Entertainment tax, Luxury tax, Lottery, Betting and Gambling tax , Cess and Surcharges, Entry tax.
        A series of items of services was incorporated in this new Act for the purpose of levy of tax.
      There had been wide dispute and dissention over the question of introduction of this consolidated tax measure, but after wide deliberation, ultimately,  a consensus was arrived at and it was  introduced unanimously.
      The Constitution of India was amended  with the requisite Articles and the entries of the Schedules thereof before the enactment of the Goods and Services Act.
       The Goods and services Act has been designed into three aspects, as below
          (1)State Goods and Services Act (SGST)-  enacted to be administered by the State authorities in the line of the Central Goods and Services Act;
           (2) Central Goods and Services Act (CGST)- enacted to be administered by the Central  authorities;
            (3) Inter State Goods and Services Tax Act (IGST)- enacted to  be administered by the Central authorities in the matter of inter-State deals.
           Though  two years have  been over after implementation of the Goods and Services Tax Act, it is yet to attain maturity and the common people are yet to be made aware of the pros and cons of this measures of tax. This tax measures did not yield a very positive result and according to media report, the collection of revenue is now in a lower side.
         The State taxation laws, as exhibited above, which were not incorporated in the Goods and Services Tax  are continuing their operation and administration independently, as before.

Conclusion
         The ‘Goods and Services Tax’ is a self-designed omnibus with multifarious Central and State apparatus and components, propelled by designed engine with self-moving arrangements, having its full control over the methodical journey, which is rarely be astrayed or cracked in reaching the destination. Such designed omnibus may not, however, always ensure safe and proper  journey and to yeild a positive result due to unhealthy apparatus and irregular ingredients and components. The outside vicious atmosphere may also influence adversely in the loading components. Our suspicious vision is that there may be  foul play in the process. ‘Good will and bad will’; ‘honesty and dishonesty’ may in either way influence the race. ‘Evasion and avoidance are ‘brothers twine’. Our intention is to say that full  sphere of honesty and trustworthy must prevail upon the operating traders in the course of their journey of trades and services activities.
        The law making authorities have given due stresses on the on the honesty, integrity and trustworthyness of the traders and discouraged the functions of the ‘Inspector Raj’, the field officers  on the plea of the alleged high handedness and corruption. Even if any raid is to be undertaken, that is also to be done only with the prior orders or approval of the Joint Commissioner of Taxes, normally remaining far away from the spot in such process, there will be a time gap and the whole exercise may be foiled and frustrated . The law, on the other hand, maintained utter silence on the question of erection and operation of the check posts, which played a pivotal role in preventing, detecting and arresting evasion of taxes in the erstwhile law regimes. Accordingly, all check posts have been made effective making way for free movement of the goods.’The earth would have been a heavenly abode had there been no evasion or avoidance of taxes’. But whether it can be rightly presumed or assumed?
          Some raw materials, like jute, superi, tea leaves as well as timbers, bamboo, cane and furniture thereof besides coal, dhania, jeera, haldhi, ginger, hides and skins and bone of animals, raptiles  etc. which are the  non-excisable commodities use make clandestine movements from one place to another and from one State to another on sales or sock transfer, whatsoever, we believe, hardly pay tax righteously and legitimately. One can- not assure that the finished products derived thereof are being accounted for properly to be incorporated in the tax net. The  reports of unaccounted movement of coal and detention thereof are frequently published in the news media. Functioning of unauthorised syndicates and collection of unathorized  and illegal tax are also gaining the momentum. ‘Necessity is the other of invention’. So, tax evader or avoider will try to make new ways and means to evade payment of taxes. This vital point requires a proper review by the law making and law enforcing authorities.  
           At the conclusion, we add two famous sayings-
           Frederick the Great of Russia- “No Government can exist without taxation. This money must necessarily be levied on the people, and grand art consists of levying so as not to oppress.”
        Kautilya or Chanakya- “ Thus the king shall first reform the administration, by punishing appropriately  those officers, who deal in wealth, they duly corrected shall use the right punishments to ensure the good conduct of the people of the town and countries.”


Mrinal Kanti Chakrabartty
R.G. Barua  Road, 10- Lakhimipath’
Guwahati-781-024 (Assam)

Respected Readers ! I welcome you all.

I used to project my writings in this block since a long time back, Suddenly, an unwarranted set-back cropped up. I suffered from an acute heart ailment, consequent upon which, I had to undergo an open heart- surgery at  Kolkata. I am now about to complete 82 years of age and naturally,this set-back can-not be completely repaired or restored. Of late, though I continued to write  articles in English and Assamese for publication in news papers, magagines and journals, I utterly neglected to  take resort  to this inter-net platform for makinging a vision by the interested readers. I now dare to renew this exercise and request our respected readers  to spare time to go through  the same and to record their valued  comments/views, as may be warranted on the same.

With regards.
Mrinal Kanti Chakrabartty
R.G.Barua Road, Lakhimipath,
Guwahati-781-024 (Assam)

New thoughts of mind ….

A man expresses his vision through writings. Sri Mrinal Kanti Chakrabartty, a retired Tax officer expresses from time to time his thought of mind through writings. In this process, he published as many as twenty books of different tastes. Presently, he will bring out  two books titled as “ Biwartanar Ruprekha “ and “ Chinta Taranga “ which will be made available before the august readers. All are request to extend their kind help and co-operation in his noble mission.

GST- A SIMPLE, UNIFORM AND TRANSPARENT TAX MEASURE

GST, an abbreviation of the words Goods and Services Tax, is proposed to be introduced in the Indian sub-continent, replacing the Value Added Tax Regime (VAT regime) currenenly opertive since April, 2005. The vision on GST could not go ahead since last 13 years, as there was lack of consensus amongst most of the Indian States on the apprehension that the States’ fiscal auonomy of the States would be seized by the Government India (Central Govt.) to make them cipher. Floods of dialogues yielded, a consesus barring a few States and the foundation of such new project was built up with the 122^nd amendment of the Constitution of India (Constitution). The Central Govt, in the meantime, drafted out the Model  GST Law on the procedural and administrative aspects, but the legal and technical aspects, pertaining to the liability, levy of tax and other allied matters, are yet to be sorted out by the GST Council, set-up by the Central Govt. with the Minister of Finance, as its Chairman and the State Finance Ministers and others, as the members. The Council is now on the heels on a war footing devoted exercise to give its birth to the GST Act on 01.04.2017. The Council has already finalized the taxable quantum to accrue tax liability in respect of the North Eastern States at Rs. 10 lakhs in place of Rs. 6 lakhs, as at present and Rs. 20 lakhs in respect of other States. The rates of tax and other ancillary matters are still under examination. The marathan trainings to the law operating machineries are being imparted, batch by batch, in full swing,

        GST, in fact,  is prospective measure to levy a single consolidated tax on the sales of the goods and the services. It is designed as an admixure of the Central and States laws.   The central laws are (i) the Cenrtal Excise Duty Act, (ii) Additional Central Excise Duty Act (iii)Excise Duty levied under the Medicinal and Toiletries Preparation Act (iv) Service Tax Act, (v) Additional Customs Duty, commonly known as the Countervailing Duty- levied under the Customs Act, (vi) Special Additional Duty of Customs under the Customs Act, 1962,(vii) Surcharge and (viii) Cess, while the State laws are  (i) The Value  Added Tax Act (VAT Act), (ii) The Sales Tax Act, (iii) Amusement and Entertainment tax Act, (iv) Luxuries Tax Act, (iv) The tax on lotteries and betting. (v) Surcharge (vi) Cess and (vii) Entry Tax. The law on sales tax will include as well as Central Sales Tax Act, 1956 (Central Act).

      GST law will be simple and uniform measure of tax to provide relief to the industrialists, traders and consumers from multiplicity taxes. Unlike the VAT Act, the consumers will get the benefit of deduction of tax paid on previous purchases made making way of arresting  price rise to a great extent. The commodities like, crude oil, petrol oil, diesel oil with other petroleum products and liquor will be excluded in the GST net-work and the taxability of these goods will be governed by a separate road map with an independant tax-net, as was existent prior to 01.07.1993. In such  a case, in order to govern the inter-State sales and stock transer of such goods, the continuance of the Central Act may be imperative..   

      The proposed GST regime will have three tier system, that is, three administrative laws will be there. (1) SGST  Act (State Goods and Services Tax Act)-to levy tax under the State Goods and Services Tax Act), (ii), CGST Act  (Central Goods and Services Tax Act)- to levy tax under the Central Goods and Services Tax Act), (iii) IGST (Integrated Goods and Services Tax Act) to levy tax under the Integrated Goods and Services  Tax Act (Inter-State Sales), The IGST  and CGST Act  will be enacted by Parliament, while SGST Act by the State Legislatures. The  taxing authoritiies under the IGST & CGST Acts will be appointed by the Board ( the Central Board of Excise and Customs, constituted under the Central Board of Revenue Act,1963)while the State Govt. will  appoint the SGST officials.

         The prolonged system of the goods, declared to be of special importance in the course of inter-State trade or commerce, providing the tax  benefits and other facilites, will be dismantled to make equal stature in the tax scenario. The consolidated rate of tax will be uniform and within the range of 20 to 22 paise in a rupee. The consolidated rate of tax may be much lower, which is now in and around of 30 paise. The present mode of stock transfer of goods to other States with tax free movement will attract tax-net, but the formulation is to be waited. The bogus deals of prevelant stock transfer of tea, coal, bamboo, superi etc. in Assam may require to bid a good bye. The GST is a methodical and chain system of deals, but the chrnonic long continued practice of avoidance or evasion of taxes with the nexus at different levels can not be ruled out. The functioning of the Vigilance Wing and Check Post machinery will, therefore, have a dire necessity for succssful implementation of the projects.

              Assam is mainly a consuming State. The recurring cost in course of movement of goods viz. transporting cost, labour cost, gratification at different angles, abnormal profit, tax elements may yield heavy price hike. The quantum of tax, collected will be lesser, as the earlier taxes paid will be admissible for credit or reimbursement. In 2015-16, the total collection of tax under the State taxation department was Rs.8614.00 in which Rs. 7641.00 includes  VAT & CST, while Rs. 567.00 is Entry tax.  VAT and CST amount of Rs.7641.00 includes about 33% of Crude Oil and Petroleum etc. tax, that is, Rs. 2521.00. The other tax on sales stands  Rs.5120.00. While addiing Rs. 567.00 (Entry tax), Rs.19.00 (Amusement tax) and Rs. 10.00 (Luxury tax), it will come to s 5716.00. This was the collection of tax revenue in 2015-16 of the respective Acts proposed to be transferred to GST. If the collection of tax on the proposed GST measure go up, this is well and good; otherwise, the State will have to remain at the mercy of the Central Govt. for compensation, as assured. In fact, this may be a far cry.

          GST  will, no doubt, bring a drastic economic evolution, It is a simple, uniform and  is anticipated to be transparent. However, if the economy of the poor State like Assam gets any set back, the hope and asipiration of the people of Assam will be frustrated and it may turn to a catastrophe. We are to wait and see.

                                                              

                                                                                      (Mrinal Kanti Chakrabartty)

                                                                 R.G.Barua Road, Lakhipath,  Guwahati-781-024

A new venture …

Mrinal Kanti Chakrabartty’s three books published 

1. "Jiwan Darshan"-an autobiography with family ancestral history (paternal & maternal). Way and style of life since boyhood till 78 years of life.

2. "Samahar" -Conglomeration of the series of Assamese articles on different topics.

3. "Designed Tax Mechanism"- Conglomeration of different English articles on tax matters. 

Kindly accommodate and oblige.
Mrinal Kanti Chakrabartty
R.G. Barua Road, 10- Lakhimipath,
Guwahati -781024 (Assam)
Mobile- 98642-01694

NEW BOOKS ARE BEING PUBLISHED

A fresh venture of Shri Mrinal Kanti Chakrabartty at the age of  his 79 years  of age.
Just being published –(i) his corrected enlarged Autobiography titled as " Jiwan Darshan”, (ii) Compilation of Assamese  Articles on different subjects  titled as ‘ Samahar’  and (iii) Compilation of English Articles on tax matters titled as ‘ Designed Tax Mechanism’.

Visitors are requested to encourage me by collecting the books to be published in the last part of March, 2016.

Mrinal Kanti Chakrabartty
R.G. Barua Road, 10- Lakhimipath,
Guwahati -781024 (Assam)
Mobile- 98642-01694

TAX CHECK-POSTS SET UP IN ASSAM (Utility and essentiality)

          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.