Disciplinary proceedings initiated under Revenue Recovery Act


Commissioner of Commercial Taxes,  A.P,  Hyderabad    framed  charges    against  Sri  K.  Kasinath, formerly  Commercial  Tax  Officer-I,  Khammam  on  the  allegation  of issuing  9 way bill books (i.e., total 816 way bills)  to M/s. Laxmi Steels, Khammam   without proper verification of used way bills filed by the Dealer and   without proper enquiries about the business activities of the dealer which lead to loss of revenue of Rs.35 lakhs to the State exchequer;   directing him to  submit his written statement of defence. In the reference 2nd read above, the individual has submitted his written statement of defence.

Commissioner of Commercial Taxes,  A.P,  Hyderabad  has  referred  the  matter  to  the  Government stating that Sri K. Kasinath, Commercial Tax Officer retired from service on superannuation on 31.7.2004 and requested to take necessary disciplinary action against the individual under A.P. Revised Pension Rules, 1980.   Government after careful examination, decided to conduct enquiry into the matter and accordingly appointed Sri K.  Raghavaiah, Joint Commissioner, Commercial Taxes, O/o. the Commissioner of Commercial Taxes, A.P, Hyderabad as the Inquiring Authority to inquire into the charges framed against the Charged Officer, vide reference 4th read   above.   Sri   S.V.   Vijayanda   Rao,   Assistant   Commissioner, Commercial Taxes, Warangal Division was appointed as the Presenting Officer to present the case

Commissioner of Commercial Taxes has furnished the Enquiry Report, dt: 21.7.2009 of the Inquiring Authority to Government, wherein, the Inquiring Authority held that charge is held proved against the Charged Officer.

Government, after examination of the enquiry report, have provisionally decided to impose a major penalty of withholding of entire pension and gratuity permanently against Sri K. Kasinath Commercial Tax Officer (Retired) under rule 9 of A.P. Revised Pension Rules, 1980, besides  recovering the  pecuniary loss of  revenue of Rs.35.00  lakhs (Rupees thirty five lakhs only) under Revenue Recovery Act,   if the loss could not be recovered from the dealer.   Accordingly, Government communicated  the  above  provisional  decision  to  impose  the  above penalty together with a copy of enquiry report to the Delinquent Officer; with a direction to submit his  representation, if any;  for taking further action

Sri K. Kasinath, Commercial Tax Officer (Retd.) has filed representation stating that he had verified utilization of previous way bills filed by the Dealer whenever the Dealer filed requisition to issue of further way bills and noticed that the Dealer was prompt in filing of monthly returns and thus he could not suspect the Dealer. Verification would be done when extraneous information was received from other sources.  When the matter stood thus, the Assistant Commissioner, Commercial Taxes (Int.) Visakhapatnam sent a cross verification reference relating to purchase of iron and steel scrap and defectives   amount   to   Rs.3,09,10,831/-   made   by   the   Dealer viz., M/s. Laxmi Steels, Khammam from M/s. Visakhapatnam Steel Plants, Visakhapatnam on 25.10.2000 and he  verified the transactions with reference to the monthly returns field by the dealer and did not find place  those  transactions.  Immediately,  he  called  for  the  books  of accounts and summoned the Dealer. But the  Dealer did not respond his summons. After verification, he prepared a show-cause notice  with  tax effect of   Rs.36,00,355/-   and sent through   registered post to the Dealer,  but  it was returned as un-served.  Subsequently, the dealer appeared in person and furnished books of accounts  and statements

After  taking into all the facts and figures and cross verification of Commercial Tax Officer, Macherla, he issued a show-cause notice for the year 1999-2000 under APGST Act,   dt: 25.7.2001 with tax   effect of Rs.22,73,289/-  and  served  on  dealers  on  2.8.2001.  The  dealers requested to grant some time for filing of tax paid certificates, but the Dealer could not file the same till the date of 10.9.2001 and later he was transferred from the circle.  The successor Commercial Tax Officer, who assumed the post of Commercial Tax Officer, Khammam on 10.9.2001 issued revised show-cause notice raising a demand of tax and allowed time to the Dealer. But the Enquiry Officer has not considered this aspect and gave the finding that he is guilty. He has requested to drop further action in the matter since he is not careless in discharging his duties.

Government have examined the contentions of Sri K. Kasinath, Commercial Tax Officer (Retd.)  with reference to material available  and observe  that  the  Charged  Officer     as  Commercial  Tax  Officer, Khammam issued 816 way bills from 24.6.1999 to 14.9.2000, but he never cross verified the previous way bills filed by the Dealer which involves huge transactions.     The show-cause notice, dt: 25.7.2001 issued by the charged officer proposing to levy the tax of Rs.22,73,289/- was  served  on  the  proprietor  of  M/s.  Laxmi  Steels,  Khammam  on

2.8.2001.     However, inspite of service of the show cause notice, the Delinquent Officer did not pass the assessment orders and did not take immediate necessary steps for collection of tax until he was transferred from Khammam.    The explanation of the Delinquent Officer that the successor Commercial Tax Officer raised the demand and issued further show-cause notice to the Dealer and that the Dealer was also present during the tenure of his successor is not tenable, since the Delinquent Officer failed to cross verify the previous way bills filed by the Dealer which involves huge transactions made by the Dealer thereby causing loss of Rs.35 lakh to Government and hence, the Delinquent Officer is held responsible.   Accordingly,    Government have decided to confirm the provisional decision to impose a major penalty of withholding of entire pension and gratuity in full permanently under rule 9 of A.P. Revised Pension Rules, 1980 against Sri K. Kasinath, Commercial Tax Officer (Retired), besides recovery of   pecuniary loss of revenue of Rs.35.00 lakhs (Rupees thirty five lakhs only) under Revenue Recovery Act from him, if the loss could not be recovered from the Dealer and addressed the A.P. Public Service Commission for their concurrence.   In the reference 11th read above, the Secretary, A.P. Public Service Commission  has  communicated  the  consent  of  the  Commission  to impose the above penalty against the individual.

Government, after careful examination of the matter, hereby impose the   major penalty of withholding of pension and gratuity in full permanently against Sri K. Kasinath, CTO (Retd.) under rule 9 of A.P. Revised Pension Rules, 1980; besides recovering the pecuniary loss of revenue of Rs.35.00 lakhs (Rupees thirty five lakhs only) under Revenue Recovery Act from him; if the loss could not be recovered from the dealer.     Copy of the advice of the A.P. Pubic Service Commission,   dt: 12.4.2012 as required under rule 23 of APCS (CC&A) Rules, 1991 is herewith furnished to the individual.

 

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