The Federal Board of Revenue has considerably enhanced the powers of the Directorate General of Intelligence and Investigation with the authority to conduct federal excise audit of any manufacturer of excisable commodities under the Federal Excise Act 2005.
The FBR has also given free hand to the officials of the DG Intelligence to destroy the confiscated cigarettes unfit for human consumption or become otherwise unfit for sale. The FBR has issued an SRO.1084(I)/2010 here on Saturday to authorise officials of the DG intelligence to conduct audit of the persons registered with the federal excise department. The decision would result in multiple audits of a registered taxpayer in one year i.e. composite audit of the Board, desk-audit, audit of the Directorate of Revenue Receipt Audit, investigative audit, special audit and now audit by the DG Intelligence
It is learnt here on Saturday that the powers of the DG intelligence has been enhanced at a time when most of the excisable services would be transferred to the provinces under the reformed general sales tax (RGST). The number of items and services liable to be federal excise duty (FED) would be reduced under the revised GST. At that time, the enhancement of the powers of the DG intelligence seemed to be unjustified.
Sources said that the relevant Schedule of the Federal Excise Act relating to services might be abolished. Thus, powers of audit and other functions of excise officials have been given to the DG Intelligence which would result in harassment to the business community.
Under the new powers of the DG intelligence, the officials of the agency may, once in a year, after giving advance notice in writing, conduct audit of the records and documents of any person registered under the Federal Excise Act. In case the official has information or sufficient evidence showing that such registered person is involved in fraud or evasion of duty, he may authorise the agency''s officer to conduct audit at any time in a year. Provided that if a registered person wishes to deposit the amount of duty not paid, short paid or amount of duty evaded along with default surcharge during or after the audit but before the conclusion of original adjudication proceedings, he may deposit such amount along with twenty five percent of the amount of penalty prescribed.
The audit of the registered person shall generally be a composite audit covering all duties and taxes to which his business or activity is liable under the laws administered by the Board.
The FBR has also authorised the officials of the DG intelligence to destroy the confiscated cigarettes unfit for human consumption. The cigarettes seized for the reasons of counterfeiting shall be liable to outright confiscation and shall be destroyed in the manner prescribed.
The FBR has also empowered the officials of DG intelligence to file appeals to the Appellate Tribunal and Reference to High Court. The officials of DG intelligence aggrieved by any of the orders of Collector (Appeals) and Board or the Collector of Federal Excise, may within sixty days of the receipt of such orders file appeal to the Appellate Tribunal against such orders.
Under the revised powers of the agency, a person who is required to maintain any record or documents under Federal Excise Act or any other law shall, as and when required by the official of the DG Intelligence produce record or documents which are in his possession or control or in the possession or control of his agent and where such record or documents have been kept on electronic data, he shall allow access to such officer to have access and use of any machine on which such data is kept and shall facilitate such officer to retrieve whole or part of such data in such manner and to such extent as may be required by him. Subject to such conditions and restrictions, as deemed fit to specify, the Board may, post officer of the DG intelligence to the premises of registered person or class of such persons to monitor production, removal or sale of goods and the stock position or the maintenance of records:
Provided that if an officer, on the basis of material evidence, has reason to believe that a registered person is involved in evasion of duty, he may, by recording the reason in writing, post an officer to the premises of such registered person to monitor production, removal or sale of goods and the stocks position or maintenance of records. The Board may, by notification in the official Gazette, for the purpose to monitor production or manufacture of any goods, specify the manner and procedure for appointment and posting of technical staff and installation, operation, maintenance of close circuit T.V system anywhere in the factory premises.
Comments
Comments are closed.