CIR NO.723/39/2003-CX, DT. 10/06/2003

Recovery of Demands

Subject : PAC (39th Report)-Recommendations on paras 2.5 and 2.6 of C & AG Report for the year 1998-99 relating to inordinate delay for recovery of confirmed demands and non-adjudication of demands-regarding.

Sir,

In the 39th Report presented to the Lok Sabha, the Public Accounts Committee after certain instances of non-recovery of arrears of revenue because of Departmental inaction, notwithstanding favourable decisions from the courts and the cases being free from litigation, were brought to its notice, has observed that a situation of absence of property or insufficient bank balance of the assessee which arise owing to failure of the department to enforce the demands in right earnest, can be tackled by the Department if the field formations are properly sensitized and made really accountable for their failure to keep a close vigil on habitual or potential defaulters.

2. The Board has accepted the recommendation of the Public Accounts Committee and accordingly directs that during visits to the field formation for inspections or any other purpose as well as the periodic review meetings, the senior officers should take necessary steps to properly sensitise the field officers, especially those at the cutting edge level, as to the impressiveness and necessity of keeping a watch on the overall financial health of the entities from whom Govt. dues re recoverable but can’t be immediately recovered for one reason or the other, and also take necessary steps to ensure that Govt. dues don’t become unrecoverable for want of timely action by them. Cases of deliberate default need to be dealt with very strictly and in such cases, responsibility be fixed on the erring officials, Simultaneously, anti-evasion and intelligence machinery of the field may also be strengthened and they too may also keep such a watch. Even their performance may be measured taking into consideration the fool proof and timely leads provided by them.

3. The Board has also directed that though each jurisdictional Commissioners is expected to report outstanding arrears of revenue in his Commissionerates in the MTR to the Board, the Chief Commissioners in their respective Zones should monitor performance on this count of each Commissionerates under his charge on a periodic basis and take all necessary steps to ensure that realization of arrears of revenue gets utmost attention and no arrears become bad or unrealizable for want of timely action by the departmental officers.

4. Kindly acknowledge the receipt.

Sd/-
(G.N.Chandrasekaran)
Deputy Secretary (PAC)

F. No. 234/3/2002-CX-7

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