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Chapter 1

Evolution of Indirect Tax Administration in India

Taxation is one of the essential and critical elements in the governance of a Nation.
It forms a quintessential part of development of any country. As the nomenclature
itself suggests, indirect taxes are the taxes where the incidence of tax is on the
consumer unlike direct taxes which are borne by the persons on whom these taxes
are levied. Indirect taxes are levied on supply of goods or provision of services and
on import and export of goods and services. One cannot study indirect taxes in a
vacuum. It’s study has to be done in relation to the various socio-economic and
political developments in the country and abroad in the pre and post-independence
period.

1.2 The indirect taxation in India has been a regularly evolving phenomenon. It
dates back to Central Excise & Salt Act,1944 which since was replaced by Central
Excise Act,1944 and now the Goods and Services Tax (GST) Act, 2017. Goods and
Services Tax is the most comprehensive tax reform. It consolidated multiple indirect
tax levies into a single tax thus subsuming an array of tax levies such as Central
Excise Duty and Service Tax earlier levied by the Central Government and those
levied by the State Governments. Basic Customs Duty continues to be levied on
imports.

1.3 The origin of Central Excise Duty can be found in Mauryan Period in the form
of commodity taxation. It was levied on two commodities i.e. salt and liquor. The
scope was expanded during Mughal period to levy tax on cotton, edible oil, and
soap, tobacco, salt and indigo. Subsequently during British rule, the duty was
extended on dairy products, handlooms, leather products, iron and steel. In the
year 1894, the excise duty was introduced on Cotton Yarn. The scope of the duty
was further widened in 1917 to include motor spirit, in 1922 to include Kerosene, in
1930 Silver, in 1934 Sugar and matches and 1943 to cover many other items. Till
1944, there were separate Acts for each commodity. However, in the year 1944 all

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these Acts were consolidated and a new Act known as Central Excise and Salt Act
1944 was introduced. In 1996, its nomenclature was changed to Central Excise
Act, 1944.

1.4 The other major form of indirect tax revenue in India, viz. Customs, was
introduced soon after the consolidation of British rule, although it existed in the
Mughal period in the form of customary gifts to the Emperor. The trade in this
country, then, was mainly by sea and with England and other European countries.
Then, an enactment known as Sea Customs Act, 1878, was brought forth for
collection of revenue and control on the movement of goods. This was followed
about 50 years later by an Act known as Land Customs Act, 1924, to cover the
goods coming by land routes. The Indian Aircraft Act, 1934, covered the
export/import by air, which, by then, had made a beginning. The laws then, had
however been designed with an eye to protect the British interests only, but
independent India allowed these statutes to continue in force, till 1963, when the
Customs Act, 1962, repealing all the earlier enactments, was enacted.

1.5 After independence, both forms of indirect Taxes were administered along
with Income Tax by Central Board of Revenue, constituted vide Central Board of
Revenue Act, 1924 (4 of 1924 ). Central Board of Revenue was bifurcated into
Central Board of Direct Taxes and Central Board of Excise & Customs, vide the
Central Boards of Revenue Act,1963 (Act no. 54 of 1963).

2.1 Central Board of Indirect Taxes and Customs- CBIC (erstwhile Central Board
of Excise & Customs- CBEC) is part of the Department of Revenue under the
Ministry of Finance, Government of India. It is tasked with formulation of policy
concerning levy and collection of Customs, Central Excise duties, Goods & Services
Tax, prevention of smuggling and administration of matters relating to Customs,
Central Excise, Central Goods & Services Tax, IGST and Narcotics. The Board is the
administrative authority for its subordinate organizations, including Custom
Houses, Central GST Commissionerates across the country, Directorates and the
Central Revenues Control Laboratory. These formations used to report directly to
the Central Board of Excise & Customs. The Central Board of Excise & Customs
has since been renamed as Central Board of Indirect Taxes & Customs after
implementation of GST. During late 1980’s, the Collectorates were brought under
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the four Principal Collectors located at Delhi, Mumbai, Kolkata and Chennai.
Directorate of Inspection was also brought under an officer of the rank of Principal
Collector.

2.2 Till 1969, there was physical control system wherein each clearance of
manufactured goods from the factory was done under the supervision of the Central
Excise Officers. Introduction of Self-Removal procedure was a watershed in the
excise procedures under which, the assessees were allowed to quantify the duty on
the basis of approved classification list and the price list and clear the goods on
payment of appropriate duty. By mid-1970s, central excise duty was extended to
most manufactured goods. In 1986, the recommendation of the Jha Committee on
moving on to value added tax in manufacturing was partially implemented. This
was called modified value added tax (MODVAT). In principle, duty was payable on
value addition but in the beginning it was limited to select inputs and manufactured
goods only with one-to-one correlation between input and manufactured goods for
eligibility to take input tax credit. The comprehensive coverage of MODVAT was
achieved by 1996-97. In 1999-2000, tax rates were merged into three rates, with
additional rates on a few luxury goods. In 2000-01, three rates were merged into
one rate called Central Value Added Tax (CENVAT). A few commodities were
subjected to special excise duty.

2.3 In 1994, the gate pass system gave way to the invoice-based system, and all
clearances are now effected on manufacturer’s own invoice. Another major change
was brought about in 1996, when the Self-Assessment system was introduced. This
system is continuing, even in GST era. In Self-Assessment system, the assessee
himself assesses and pays his Tax liability and the Department scrutinizes it or
conducts selective audit to ascertain correctness of the duty payment. Even the
classification and value of the goods have to be merely declared by the assessee
instead of obtaining approval of the same from the Department. The earlier system
of fortnightly payment of duty introduced in 2000 was replaced by monthly payment
of duty with effect from 01.03.2003.

2.4 Central Excise Rules, 2002 superseded the earlier Central Excise (No.2)
Rules,2001. Other rules were also notified namely, CENVAT Credit Rules, 2004,
Central Excise (Appeal) Rules, 2001 etc. With the introduction of the new rules,
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several changes were effected in the procedures. The new procedures were
simplified. There were less numbers of rules, only 37, in all, as compared to 234
earlier. Classification declaration and Price declarations were also dispensed with,
the CENVAT Declaration having been earlier dispensed with in the year 2000 itself.

2.5 While the basic statutes governing the Central Excise and Service Tax have been
the Central Excise Act, 1944 and the Customs Act, 1962 respectively, another
important area of taxation i.e. Tax on services was introduced through provisions of
the Finance Act, 1994. The task of administration of Service Tax was assigned to
the Central Excise Commissionerates. Making a humble beginning in 1994 with just
three taxable services, Service Tax became one of the major sources of indirect tax
revenue over the years, covering over 120 taxable services. Taxation of services by
the Union was introduced in 1994 bringing in its ambit only three services, namely
general insurance, telecommunication and stock broking. Gradually, more and
more services were brought into the fold. In 1994, tax rate on three services was 5%
which gradually increased and in 2017 it was 15% (including cess). Before 2012,
services were taxed under a positive list approach. This approach was prone to tax
avoidance. In 2012 budget, negative list approach was adopted where 17 services
were out of taxation net and all other services were subject to tax. In 2004, the
input tax credit scheme for CENVAT and Service Tax was merged to permit cross
utilization of credits across these taxes.

2.6 Customs functions cover substantial areas of activities involving international


passengers, general public, importers, exporters, traders, custodians,
manufacturers, carriers, port and airport authorities, postal authorities and various
other government and semi-government agencies, banks etc. Indian Customs is
continuously rationalizing and modernizing its procedures through adoption of
technology and global best practices. Also, as a member of the World Customs
Organization, Indian Customs has adopted various International Customs
Conventions and procedures including the Revised Kyoto Convention, Harmonized
Classification System, GATT based valuation etc.

2.7 Prior to the year 2002, there were 59 Central Excise Commissionerates having
330 Divisions and 2300 Ranges. These Central Excise Commissionerates were
administering Service Tax also. On Customs side, there were 25 Customs
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Commissionerates. These Central Excise & Customs Commissionerates functioned
under the supervision of 16 Zones.

2.8 Considering the significant increase in workload in Customs, Central Excise


and Service Tax over the years, the organizational structure of the Department was
reorganised in the year 2002. The exercise resulted in reorganization of 59 Central
Excise Commissionerates into 92 Commissionerates and 25 Customs
Commissionerates into 35 Customs Commissionerates under the jurisdiction of 23
Central Excise and 11 Customs Zones. Number of Directorates was also enhanced
from 15 to 18. Total sanctioned manpower also underwent change during this
exercise. Later, in the year 2008 a new Commissionerate of Central Excise was
created (without creation of additional posts) at Guwahati under Shillong Central
Excise & Customs Zone.

2.9 In the year 2004, 6 exclusive Service Tax Commissionerates were created at
Delhi, Mumbai, Kolkata, Chennai, Ahmedabad and Bangalore to handle increasing
Service Tax related workload. Subsequently, one Central Excise Commissionerate
under Mumbai Central Excise Zone was converted into second Service Tax
Commissionerate at Mumbai. Although the volume of work increased manifold
during these years, no additional staff strength in any grade was created. Therefore,
in the year 2007, 4647 additional posts in Group ‘A’, ‘B’, ‘C’ & ‘D’ were created to
address the dire requirement of additional staff strength for smooth and trade-
friendly functioning of Indirect Tax administration.

2.10 Later, in December, 2013, a comprehensive cadre restructuring and


reorganization plan for the formations under Central Board of Excise & Customs
(now Central Board of Indirect Taxes & Customs) was approved by the Union
Cabinet with the aim to provide an efficient, effective and trade-friendly indirect tax
administration. Due to implementation of this reorganization plan, number of
Central Excise Commissionerates went up to 119 under 23 CE zones, exclusive
Service Tax Commissionerates to 22 under 4 exclusive Service Tax Zones and
Customs Commissionerates to 49 under 11 zones. In addition, the Audit functions
of the Commissionerates were separated and 48 exclusive Audit Commissionerates
were created. Number of Directorates, however, remained unchanged at 18. Total

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sanctioned manpower in mainstream Groups ‘A’, ‘B’ & ‘C’ cadres was enhanced
from 69808 to 86,699 in 2013.

2.11 As mentioned earlier, the Indirect Taxes administration witnessed a paradigm


shift with the passing of the 122nd Constitution Amendment Bill, 2016 that
introduced the Goods and Services Tax (GST). GST was implemented w.e.f.
01.07.2017. With the ideology of “One Nation, One Market, One Tax”, GST did away
with multi-tax regimes that led to inefficiencies such as cascading taxes, levy of
excise largely at the point of manufacturing and lack of uniformity in tax levies.
Prior to the introduction of GST, the organizational set-up was reorganised to have
the Department in the state of readiness for successful and seamless transition
from Central Excise and Service Tax to Goods & Services Tax regime. In this
reorganization, which also rechristened Central Board of Excise & Customs (CBEC)
as Central Board of Indirect Taxes & Customs, the total number of
Commissionerates was reduced from 141 (119 CE + 22 ST) to 107 GST
Commissionerates having 768 Divisions and 3969 Ranges- a slight upward shift
from 735 Divisions and 3647 Ranges. Consequent to GST reorganization, a
Customs reorganization was also done wherein 2 Customs Commissionerates were
created at Indore and Nagpur. 3 Customs Audit Commissionerates were also
created by shifting existing Customs Commissionerates to these places. Thus total
number of Customs Commissionerates were reduced from to 49 from 47. It is stated
that the reorganisation undertaken to make the CBIC GST friendly was done within
the available Sanctioned Strength. Not a single new post was asked for, since the
implementation of the new tax regime being top priority, the available human
resources were re-deployed under the re-organised administrative structures of the
Department.
****

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Chapter 2

Role and Functions of Indirect Tax Administration

Taxes, in general, are the imposition of financial charges upon an individual or a


company by the Government. One of the most important uses of taxes is to finance
public goods and services and particularly in fast growing countries like India, is a
major source of financing the social welfare policies of the government. Taxes in
India are levied and collected by the Central Government and the State
Governments. Some minor taxes are also levied by the local authorities such as
the Municipality. Broadly, there are two types of taxes that the Indian government
levies on its citizens – direct tax and indirect tax.

2.1 The core tasks of Indian Tax Administrations- Indirect Taxes as well as
Direct Taxes- are centred on the implementation, enforcement and compliance
verification of tax legislations and regulations. These activities include:-
- identification and registration of taxpayers, including detection of non-
registration and false registration;
- processing of tax returns and other related documents and third-party
information;
- verification or examination of the correctness and completeness of received
information (including audit activities);
- assessment of tax obligations and collection of taxes
- handling of adjudications and appeals
- redressal of taxpayers’ grievances and complaints;
- provision of service and assistance to taxpayers;
- detection and prosecution of tax evasion and fraud.

2.2 Tax Administrations across the world operate in societies that are rapidly
changing and have to fulfil increasing demands and growing expectations from

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their stakeholders, including new demands from taxpayers for sophisticated
government services. Accordingly, Tax Administrations have to necessarily redefine
a contemporary vision, mission and objectives. Rapid economic developments and
ever-higher expectations on the part of taxpayers make it all the more necessary
for a Tax Administration to continuously redefine its strategic course. Its
relationship with taxpayers must be laid down in a system of rights and
obligations.

2.3 In India, the indirect tax administration has also been assigned the key role
of protecting economic frontiers of the country. With increased globalization and
integration of Indian economy with the World economy, there has been a strategic
shift in focus to a greater facilitation role towards the Indian industry and trade.
Nevertheless, the regulatory role and guardianship of economic frontiers remain
important both for protection of the domestic industry as per internationally
accepted safeguard measures and in tackling unscrupulous elements. Another
key role is to provide a level playing field to Indian trade and industry in the
course of international trade by seamless and faster clearance procedures as well
as timely and prompt refund of domestic levies.

3.1.1 Legislative Ecosystem for Indirect Tax Administration: There are five
distinct streams of taxes/ duties collected through the Central Indirect Tax
structure:

 Central component of Goods & Services Tax;


 State component of Goods & Services Tax;
 Central Excise Duties;
 Customs Duties
 Integrated Goods & Services Tax
The relevant legislation governing these levies are – The Central Goods & Services
Tax Act 2017, State Goods & Services Tax Act 2017, Integrated Goods & Services
Tax Act, 2017, Union Territories Goods & Services Tax, 2017, GST Compensation
Act, 2017, and GST Acts of States and Union Territories. In addition, there are
Rules notified under Central GST Rules, 2018, (162 Rules) IGST Rules, 2017 (9

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Rules) and 162 Rules each in the State GST Rules and Union Territory GST Rules.
Also, there are a large number of Notifications under the aforesaid statutes.
Further, the commodities and services have been categorised under GST into
about 5,000 groups, each identified by a six-digit code, based on the Harmonised
System of Nomenclature. It is supported by well-defined rules to achieve uniform
classification.

3.1.2 In addition, Central Excise duty continues to be levied and collected on


certain commodities, such as Petroleum products, Tobacco and Tobacco products
etc. The Central Excise Act, 1944 comprises of 40 Sections and there are 15 sets of
Rules dealing with Valuation, CENVAT Credit, procedures etc.

3.1.3 On the Customs side, the Customs Act 1962 and Customs Tariff Act 1975
provide the statutory framework for levy and collection of Customs duties. The
Customs Act 1962 provide the legal authority to administer Customs Laws
through the CBIC. It comprises 161 Sections and has 76 sets of Rules to deal with
various situations in the course of International Trade. Further, there are more
than 25 Acts (commonly known as Allied Acts) which are also administered by the
Customs Authorities at points of entry/exit of internationally traded
goods/passengers. Customs Tariff Act 1975 provides internationally accepted
classification of goods and currently classifies the goods into more than 12000
categories upto eight digit level. Further, CBIC issues Notifications from time to
time under various Custom provisions on procedural/legal aspects in addition to
Tariff linked notifications which govern the actual rate of duties.

3.2 In addition to Tax legislations, CBIC officers are empowered under various
other Acts and Rules dealing with Narcotics & Psychotropic Substances Control,
Wildlife Protection, Foreign Exchange Management, Fake Indian Currency Note,
Import Export of Genetically Modified Micro-organism etc. Some key legislations
include:

 Narcotics & Psychotropic Substances Act 1985;


 Indian Wildlife (Protection) Act 1972;

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 Prevention of Cruelty to Animal and Ethical Treatment to Animals Act 1960;
 COFEPOSA Act 1974;
 PITNDPS Act 1988;
 The Drugs and Cosmetics Act, 1940
 The Pharmacy Act, 1948
 The Drugs and Magic Remedies (Objectionable Advertisement) Act, 1954
 The Medicinal and Toilet Preparations (Excise Duties) Act, 1956
 The Drugs (Prices Control) Order 1995 (under the Essential Commodities
Act)
 The Insecticide Act, 1968
 The Explosives Act, 1884
Besides, various international conventions such as Convention on International
Civil Aviation, Basel Convention on the Control of Transboundary Movements of
Hazardous Wastes and Their Disposal, International Convention to Facilitate the
Importation for Commercial Samples and Advertising Material etc are also to be
administered by the Customs administration.

4.1 The mandate of the Indian Customs & Indirect Taxes officers is to
implement Indirect Tax legislations of Central as well as of States and Union
Territories and collect Government revenues by compliance management as well
as detection of wilful anti-evasion and taxation frauds. Besides collection of both
Customs, GST and Central Excise revenue, the functions also include
implementation of border regulations, prevention and detection of smuggling
activities; interdiction of narcotics and clearance of international passengers. It
also involves implementation of large number of international conventions,
bilateral and multilateral trade agreements and enforcing measures to secure
international supply chains.

4.2 Some of the key functions discharged by the Indian Indirect Taxes and
Customs officers are highlighted below:
a. Assessment and collection of Customs duties, Central Goods and Services
Tax, State Goods and Services Tax and, respectively under the provisions of
Customs Act, 1962, and Central Goods & Services Tax Act 2017 and State

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GST Acts of various State Governments and Union Territory Administrations
besides Integrated Goods and Services Tax under the Integrated Goods &
Services Tax Act, 2017.
b. Assessment and collection of Central Excise duties on certain products.
c. Infusion of modern technology in the administrative apparatus under CBIC
and providing tax-payer friendly services.
d. Prevention and detection of smuggling and illicit trafficking in narcotics
e. Prevention of evasion of Customs duties and Goods & Services Tax.
f. Implementation of EXIM Policy and Foreign Exchange Management Act and
regulations.
g. Audit of GST taxpayers for compliance monitoring and for encouraging
voluntary compliance.
h. Enforcing the provisions of the Conservation of Foreign Exchange and
Prevention of Smuggling Activities Act (COFEPOSA).
i. Quasi-judicial functions of Adjudication of tax related disputes.
j. Functions related to departmental appellate machinery relating to hearing
and deciding appeals against decisions of quasi-judicial authorities.
k. Review functions viz. accepting/challenging adjudication and appellate
orders.
l. Defending cases before the Appellate Tribunal (CESTAT) and monitoring and
pursuing cases pending before Hon’ble Supreme Court and various High
Courts.
m. Functions related to Prosecution and Appeals in the criminal cases filed
before the Courts of Law against the offenders under the provisions of
various Acts.
n. Facilitation of international passengers and clearance of baggage at the
International Airports, Seaports and Land Customs Borders.
o. Enforcement of the provisions of a large number of other enactments like
NDPS Act, 1985, Foreign Trade (Development & Regulation) Act, 1992, Wild
Life Protection Act, 1972, Antiquities & Art Treasures Act, 1972, Atomic
Energy Act, 1962, Arms Act, Environmental Laws etc.
p. Seizure, confiscation, custody of contraband goods, auction and disposal of
confiscated goods.

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q. Safe guarding domestic industry from unfair international trade practices
and imposition and administration of Safeguard / anti-dumping duties.
r. Implementation of bilateral / multilateral Customs treaties, international
commitments in various for a like World Trade Organization, World Customs
Organization etc.
s. Recovery of tax arrears.

4.3 Thus, it can be seen that the Indirect Taxes Administration plays a vital and
complex role in generation of financial resources for the Nation and in facilitating
growth of its economy. Further, it assists the Government in its financial and
economic diplomacy with other developed, developing and less developed
economies across the globe.
****

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Chapter 3

Performance of the Department and Increase in Workload

Peformance Analysis

1.1 Tax-GDP Ratio: India’s overall tax-to-GDP ratio (all Central and State Taxes)
at 17.82% in the year 2016-17 is well below the emerging market economies
(EME) and OECD averages of about 23% and 35% respectively. Since tax
revenues plays a key role in political and economic development of the nation, the
Indirect taxes administration has consistently strived to balance trade facilitation
while strengthening its Compliance Management - Audit, Anti-smuggling and
Anti-evasion functions. Consequently, the share of Indirect Taxation in GDP has
been steadily improving over the years, as the following statistics of Indian Public
Finance (2018) indicate:-

Gross Revenue Central Net Revenue


Year
Indirect Taxes as % of GDP Central Indirect Taxes as %
2014-15 4.46
3.29
2015-16 5.27
3.57
2016-17 5.25
3.54
2017-18 5.43
3.66
2018-19
(PE) 6.84 4.93

1.2 Total Revenue Collection: While the workload has been increasing
overwhelmingly over years in all three streams of indirect taxes, total revenue
collection has also kept pace with the increase in workload, as indicated below:-

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*Revenue data from www.indiabudget.gov.in

1.3 Cost of Collection: While the total revenue collection by the Department
has been increasing, the cost of collection of revenue has consistently been less
than 1 Rupee for revenue of Rs. 100/- (as indicated below), which is one of the
lowest in the World.

Cost of Collection (in Paisa per Rupees 100 of


Year
revenue)
2014-15 78
2015-16 64
2016-17 68
2017-18 92
2018-19 47

Workload analysis

2.1 Conventional workload:

There has been a tremendous increase in the Taxpayers base - both in GST as
well as Customs. A comparison of data for the period from 2014-15 shows that
the growth in the Taxpayers base in Goods & Services Tax has particularly been
phenomenal, more than 3 times over the Central Excise & Service Tax assessee
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base. Similar growth has been witnessed in other parameters of workload also, as
the following table illustrates:-

%
increase
Parameter 2014-15 2015-16 2016-17 2017-18 2018-19 after
last CR,
2013
GST
Taxpayers 1138338 1248801 1288221 38,30,655 41,32,901 -
Base@
Number of
Bills of 36,99,239 39,73,846 43,06,752 67,60,858 255
1,17,97,820
Entry@
Value of
Imports
27,37,087 24,90,306 25,77,675 30,01,033 35,68,204 31
(in crore of
Rupees)#
Number of
Shipping 57,30,261 59,38,761 63,28,968 76,12,039 77,43,456 48
Bills@
Value of
Exports
18,96,348 17,16,384 18,49,433 19,56,514 22,82,482 20
(in crore of
Rupees)#
No. of
International 4,57,36,627 4,97,85,443 5,46,76,467 6,05,90,776 6,54,80,000 52
Passengers*
Source: @DG (Systems), # http://commerce-app.gov.in , * www.dgca.gov.in

2.2 E-Commerce:
Apart from the increase in the conventional workload, there has been a
significant increase in the volume of trade through e-commerce. In fact, e-
commerce has radically transformed the way business is being done in India in
line with the rest of the world. The Indian e-market is estimated to grow to Rs.
14602 crore in the year 2026 against Rs. 2280 crore in the year 2018. Growth in
e-commerce industry has been triggered by increasing internet and smart phone
penetration across the country. The ongoing emphasis of the Government on
digital transformation of economy in the country is expected to increase country’s
total internet user base from 50 crore in 2018 to 82.9 crore in 2021.
Consequently, India’s internet economy is expected to double from Rs. 9126 crore
in the year 2017 to Rs. 18253 crore in the year 2020.(www.ibef.org) . The growth in
e-commerce sector will also boost revenues from Customs duty as well as GST
revenue. Presently consignments of e commerce are cleared through different
formations – inland Courier Terminal, Air Cargo and Foreign Post Offices. The e
commerce consignments demand faster clearance of small value and high volume
transactions and the number of transactions are expected to increase manifold.
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The growth in the volumes of e-commerce shipments in cross border trade has
led to an increase in the workload posing challenges before CBIC mainly from
human resource perspective. This will require strengthening the deployment of
manpower even under high level of risk-based facilitation. The back-end Risk
Management Division will also need to strengthened, with specialised sections, to
critically monitor the e-commerce transactions to identify suspicious transactions
being camouflaged as e-commerce to circumvent payment of legitimate taxes,
besides other non-fiscal concerns.

2.3 International Trade:


India’s international trade has also been increasing over the years, as indicated
in the following table.
(Value Rupees in Crore)

Merchandise Services
Year
Imports Exports Imports Exports

2014-15 31,59,968 21,88,701 5,75,565 11,15,158

2015-16 26,87,384 18,50,133 5,96,726 10,88,355

2016-17 27,11,365 19,46,060 6,75,019 11,50,425

2017-18 32,07,457 21,14,710 7,37,361 12,24,580

2018-19 35,44,393 23,11,678 8,65,174 14,27,986

Source: http://pib.nic.in

Increase in volumes of international trade has a direct bearing on the customs


workload.

3.0 Manpower requirement forecasting involves estimating the future quantity,


quality of people required keeping in mind the present & anticipated work load.
Hence, manpower requirements cannot be measured only in terms of existing
quantifiable workload indicators. In addition, non-quantifiable parameters like
providing quality training, conduct of audits, deterrence functions such as
against tax evaders, smugglers and drug traffickers, narco-terrorism activities
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etc. also need to be necessarily factored in. In these cases the quantum of
taxpayers audited/cases detected act as an indicator to workload analysis.

3.1 Audit performance:


With the conscious shift towards trust based self assessment and risk
management based processes, audit provides the compliance management
machinery to encourage voluntary compliance, check revenue leakage and detect
procedural inadequacies in a least intrusive manner. In 2018-19, 44791 Central
Excise and Service Tax Assessees have been audited resulting in a total detection
of duty amounting to Rs. 8785 crores and a recovery of Rs. 2779 crore. In
Customs side there has been a recovery of 107.76 crore in 2018-19.

3.2 Anti-evasion Performance:


With the move towards increased trade facilitation and tax payer friendly
approach, anti evasion functions form one of the pillars of system of checks and
balances. Anti evasion activities primarily focus on plugging revenue leakage. In
2018-19, the anti evasion performance of the Department resulted in detection of
8808 cases involving a duty amount of Rs. 21499 crore. The efficiency of the
Department not only lies in detection of evasion but also effecting recoveries and
in 2018-19, recoveries of Rs.15583 crore were made in 6693 cases.

3.3 Anti-smuggling functions:


Smuggling is an illicit trading activity which poses a huge socio economic threat
to the country’s economy and society. Smuggling not only destabilises the trade
and industry and impacts government revenues but also may also lead to
internal security issues. One of the key functions of Customs organisation is
exercising effective border control to curb such unlawful activities. In 2018-19,
23806 cases of smuggling were detected involving goods worth Rs. 2872 crore.
Customs duty amounting to Rs. 3473 crore were also recovered.

3.4 Training:
NACIN, as an apex training organisation is mandated, among others, to impart
GST Training to the officials of Central and State/UT Governments, officials of
other Ministries and Departments. A multi-layered training programme has been

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developed and training is being imparted to officers from Central and State/ UT
Governments. NACIN is a premier academy not only for the officers and other
stakeholders of India but also for participants from other countries and
international organizations. NACIN has been recognized and accredited by
various international bodies such as WCO, UNEP, UNODC, ADB and SASEC etc
as an important institution of capacity building, in particular in the Asia/Pacific
Region. In this connection, International Training & Cooperation (ICT) Section
conducts regular trainings for international participants.

4.0 IT Initiatives: The Department has adopted automation in line with Digital
India and many business processes are now transacted online to facilitate the
taxpayer and reduce the dwell time. CBIC has taken many initiatives in the field
of Information Technology for trade and industry facilitation. Some key initiatives
are indicated below:
(i) CBIC-GST-ACES Application: The application facilitates the front end
users, i.e. around 40 lakh GST Taxpayers, in activities of Registration,
Return filing, Payments of tax and Refunds. It also facilitates the back-end
functionalities of receipt, storage, processing of API data, presentation of
data to the departmental users for decision making.

(ii) ICES:

(a) WCO Harmonized System of Nomenclature came into force from 1st
January 2017.
(b) Launch of Single Window Interface SWIFT in Exports since January
2017.
(c) Data Capture at non-EDI sites: ICES has designed a simple utility
called ICES Compact Application for Non-EDI Sites (i-CAN) to capture
customs clearance data electronically at remote non EDI sites having
poor or no network connectivity. This Data is integrated with EDI and
shared with GSTN ensuring IGST benefits of credit / refund flow
seamlessly to exporters and importers in these locations.
(d) Enterprise DW called Smart View is a web based analytical reporting
solution that is specifically designed for fast querying and sophisticated

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analytical capabilities, using latest Business Intelligence (BI) tools. It
has the capability to extract data from various online transactional
systems such as ICES 1.5 (Customs), ACES (Central Excise & GST
Returns), EASIEST (Central Excise Duty Payment).
(e) A Massive upgradation of IT Infrastructure in terms of All-in-One,
LAN/WAN connectivity, Switches, UPS, Laptops etc. with massive
storage has taken place.
(f) Express Courier Clearance System (ECCS) Application has been rolled
out at Mumbai Courier Terminal. This is likely to be introduced shortly
at other places as well.
(g) Advance Passenger Information System (APIS) is also in place.

5.0 Nevertheless, there continue to be several specialised processes that cannot


be automated and require human intervention such as:
(i) Examination of goods and passengers -both incoming and outgoing;
(ii) Adjudication of disputes in time bound manner;
(iii)Management of risks (such as duty-evasion, misuse by unscrupulous
elements in trade, under-invoicing and over-invoicing, mis-declaration etc.);
(iv) Statutory audit of the required number of taxpayers and imports and
exports;
(v) Enforcement of a large number of allied laws including wildlife, trafficking
in cultural property, Intellectual Property Rights, Narcotics & Psychotropic
Substances Act, environment related acts including import of hazardous
chemicals and e-waste, etc.;
(vi) Compliance under SEVOTTAM, CPGRAM, Right to Information Act, 2005,
etc. which are aimed at improving quality of service to stakeholders.

6.0 Thus in addition to the present work load, manpower requirement


forecasting also requires estimating demand of additional manpower to combat
the anticipated newer areas of work and work process re engineering arising out
of increased automation.
****

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Chapter 4

Trade Facilitation and Ease of Doing Business

CBIC has undertaken key initiatives to implement the Government’s vision


of Trade Facilitation and Ease of Doing Business.

2. Goods and Services Tax (GST):

2.1 Much before actual implementation of GST, large scale awareness and
sensitization campaigns on GST were organized, taking along all
stakeholders for smooth implementation of GST. The officers of CBIC have
significantly contributed in drafting of model GST laws and various work
relating to GST legislations and related matters. Thousands of GST Seva
Kendras (GSKs) were set up for resolving any problems/issues and to
educate the trade and stakeholders on GST. In fact, even till today, every
Central GST Office is having a functional GST Seva Kendra. The migration
of the registered taxpayers of erstwhile Central Excise and Service Tax
regime to GST was completed successfully, well in time, due to untiring
efforts of the officers of CBIC as well as the State Governments.

2.2 In order to prepare its field formations for GST, CBIC undertook the
reorganization of its Central Excise and Service Tax formations to align the
structure as per the requirements of GST in June’ 2017. From
implementation of GST till date, the officers of CBIC have been extensively
involved in conducting various outreach programs for the trade and for
resolving any issues/problems etc by any stakeholder or trade. In fact,
over 10000 GST workshops have so far been conducted by the CBIC
Officers. Due to persistent efforts of the officers and prompt policy
interventions, GST has been implemented successfully. The department
continues its efforts for smooth implementation of GST.

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Empowering the nation, shaping a new India- the journey of CBIC so
far:
 37.7 crore e-way bills generated
 19.5 crore returns filed
 25 lakh Amendments in Registration Particulars approved
 395 crore invoices processed
 17.5 lakh composition dealers
 1.17 crore total taxpayers
 61 lakh existing taxpayers migrated
 56.3 lakh new registrations
* figures as on 16.12.2018

Team GST, Department of Revenue (GoI) was awarded for Excellence


in Public Administration by the Hon’ble PM on the occasion of Civil
Services Day’ 2018.GST has been aptly described as: “ONE NATION,
ONE MARKET, ONE TAX” by the Hon’ble Prime Minister of India.

3. Customs:

3.1 CBIC and its field formations have been directing their efforts, in the
best possible manner, towards Trade Facilitation and Ease of Doing
Business. Board has initiated numerous measures to facilitate the
Customs clearance process and reduce transaction costs. The objective is
to make the Customs clearance process in India a world class experience
by reducing dwell time of cargo, which in turn improves the
competitiveness of businesses. Some of these measures highlight the
approach of the Board towards promoting the Trade Facilitation and Ease
of Doing Business.CBIC’s continuous endeavour has been to harness
technology for innovations and efficiency. Starting from Indian Customs
EDI System (ICES) in 1996 to Automation of Central Excise & Service Tax
(ACES) in 2008 to GST-CBIC Application & Project “Saksham” in 2017,
CBIC has been frontrunner in adopting technology in tax administration.
Some of the recent key initiatives include:

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3.1.1 Single Window: An Indian Customs Single Window Project has
begun with the establishment of an appropriate administrative structure
in the form of an inter-ministerial Steering Group that is chaired by
Member (Customs), CBIC, a Project Management Group in CBIC and
Project Management Units in the Ministries. With the introduction of
Single Window, an electronic online message exchange between the Food
Safety and Standards Authority of India (FSSAI) and the Department of
Plant Protection, Quarantine and Storage (PQIS) with the Customs has
started, which enables reducing the dwell time considerably. Under this
online message exchange system for import goods there is seamless online
exchange in real time of the Customs Bill of Entry (Import declaration)
with these agencies and Release Order (RO) from both the agencies will be
received by the Customs in electronic message format. Various other
Participative Government Agencies (PGAs), associated with EXIM trade,
are being included in the Single Window.

3.1.2 SWIFT in Exports has been extended on export side for online
referral to WCCB to all Customs EDI locations for smooth online
clearance.

3.1.3 Customs Clearance Facilitation Committee (CCFC): Board has set


up a Customs Clearance Facilitation Committee (CCFC) at every major
Customs seaport, airport, Customs Preventive Commissionerates, Land
Customs Stations and Commissionerates having jurisdiction over Inland
Container Depot, which is chaired by the Principal Commissioner of
Customs/Commissioner of Customs concerned. Its membership includes
the senior-most functionary of various departments/agencies/
stakeholders at the particular seaport/airport namely, (i) Food Safety
Standards Authority of India/Port Health Officer (PHO), (ii) Plant
Quarantine Authorities, (iii) Animal Quarantine Authorities, (iv) Drug
Controller of India (CDSO), (v) Textile Committee, (vi) Port Trust / Airport
Authority of India / Land Ports Authority of India (for CCFC in LCSs),(vii)

22 | P a g e
Custodians, (viii) Forest and Wild Life Authorities, (ix) Railways/CONCOR,
(x) Border Security Agencies (for CCFC in LCSs), (xi) Pollution Control
Board and (xii) any other Department / Agency / stakeholder to be co-
opted on need basis. The CCFC is required to meet once a week or more
frequently, if needed, to ensure bottleneck free flow of imports and
exports. Customs play an important role in multi-agency coordination and
cooperation, through the CCFC mechanism, for promoting trade
facilitation.

3.1.4 Refunds of taxpayers/ Duty Drawback on exports/ ROSL:


Consequent upon implementation of GST, the processing/ sanction of
refunds of Integrated Goods & Services Tax (IGST) on exports is being
done by Customs. In spite of huge challenges due to GSTN data issues,
IGST refunds of thousands of crore have already been disbursed at
Customs end. Timely refunds of IGST would continue to be an important
priority area and consequently, this would naturally entail additional
work for Customs officers. Rebate of State Levies (ROSL) scheme to
provide for remission of state levies in addition to the duty drawback
scheme, on export of garments has been implemented successfully by
Indian Customs w.e.f. September 2016. This scheme is sponsored by the
Ministry of Textiles. The Government of India has extended the RoSL on
garment exports to exports of made-up articles as well, w.e.f. March 2017.

3.1.5 Implementation of WTO Trade Facilitation Agreement (TFA) and


National Trade Facilitation Action Plan: With an objective to
comprehensively implement WTO Trade Facilitation Agreement (WTOTFA)
ratified by India on 22nd April, 2016, Government of India has unveiled
“National Trade Facilitation Action Plan (NTFAP)” that gives a time bound
map, not only for implementing TFA, but also for India’s initiatives for
trade facilitation and Ease of Doing Business which goes beyond TFA
(i.e.TFA Plus). CBIC is also tasked with implementation of Trade
Facilitation Agreement (TFA). The National Trade Facilitation Action Plan
also aims to transform cross border clearance ecosystem. Other major
objective to be achieved by NTFAP is improvement in ease of doing

23 | P a g e
business by reduction in cargo release time and cost and improved
investment climate. The Action Plan covers many activities in the areas of
infrastructure augmentation, particularly the road and rail infrastructures
leading to ports and the infrastructure within ports, airports, ICDs, Land
Customs stations that cuts across all stakeholders for which various
ministries like Shipping, Civil Aviation, Railways, Road transport and
Highways, Home Affairs, Finance, Commerce etc have been assigned
specified targets.

Against this backdrop, the role of Customs assumes importance in


ensuring that not only the TFA is implemented properly and that too
within the stringent timelines to be followed in clearance of EXIM cargo.
There is a constant endeavour on part of CBIC to reduce the Dwell Time
and Cargo Release Time, as mandated under TFA, which is a legally
binding international agreement.

3.1.6 Round the clock customs clearances: Round the clock (24*7)
Customs clearances facility is one more step in promoting Trade
Facilitation and Ease of Doing Business. Customs clearances are affected
on real time basis by Customs officers all the time (24x7), even on
Saturday/ Sundays and Holidays for import goods covered by facilitated
Bills of Entry, Reefer containers with perishable export goods sealed in
presence of customs and export goods covered under free Shipping Bills.

3.2 CBIC and its officers/field formations are committed and have been
continuously working for improving the Ease of Doing Business and
increasing Trade Facilitation levels. It may not be out of place to mention
here in this context that there has been a quantum jump in India’s Ease
of Doing Business ranking by the World Bank. In the said rating, there
has been a quantum leap to rank 77 in 2019 from rank 130 in 2017 in the
Ease of Doing Business, amongst 190 countries in which Indian
Customs/ CBIC and all its field formations have played an important role.
This is mainly due to the fact that India's rank on the "Trading Across
Borders" metric has jumped from 146 in 2018 to 80 in 2019.

24 | P a g e
Indicator/Area 2017 2018 2019
Ease of doing business 130 100 77
Trading across borders 143 146 80
Dealing with construction permits 185 181 52
Getting credit 44 29 22

To ensure this momentum continues and for the country to further


improve its ranking to bring India into top 50 rank (as per vision of the
Government), the customs formations will have added responsibility of
constantly refining and redesigning its business processes and adopting
innovative measures to optimise trade facilitation and for swifter clearance
of Exim cargo.

4. India’s first National Time Release Study: In fast track clearances of


cargo, Indian Customs has taken up India’s first National Time Release
Study from 1st to 7th Aug’ 2019 (Phase 1: Sea Ports) and from 3rd to 9th
September (Phase 2: Air Cargo Complexes and Integrated Check Posts).
The TRS is an internationally recognized tool to measure the efficiency and
effectiveness of international trade flows. The National TRS is being
conducted across 15 locations including sea, air, land and dry ports and
its results are expected to help in further reducing the time taken for
cargo clearances by various stakeholders.

5. Apart from its core work of revenue, CBIC and all its field formations
have been pro-actively taking up and promoting various other ambitious
programs/activities of Govt., especially Swachhta Activities/ Swachh
Bharat Mission by actively engaging with public and communities at
ground level. CBIC has taken up various measures on HR front for better
cadre management of Officers and staff. Online writing of APARs in
SPARROW has been introduced for IRS(C&CE) w.e.f. 2016-17 and w.e.f.
2018-19 for Group B & C Officers/staff.
25 | P a g e
6. Way Forward: There has been a constant endeavour on part of CBIC to
adapt and transform as per the needs/ requirements of time. From
physical controls era to fully automated working environment of today, the
process has been ever evolving. The focus of CBIC is to remove any
barriers to trade and to further enhance Trade Facilitation and Ease of
Doing Business.
 Enabling compliance by segregation:
 Strikes optimal balance between facilitation and compliance
 Promotes culture of self compliance
 Enhances efficiency by focussing on high risk trade
 Reduces need for physical interface.
 Enhancing ease of doing business
 Simplified tax structure
 Boost to investment and exports
 Creating one economic India
 Free flow of Goods and Services
 Making India a manufacturing Hub.

****

26 | P a g e
Chapter 5

Need for Cadre Restructuring

Cadre restructuring of an Organization aims at removing shortcomings, that


might have crept in over a period due to changes in organisational functioning
consequent to changes in governmental policies, introduction of modern
technologies, and adoption of global best practices etc. It also aims at ensuring
alignment of the reorganization structure with the functional, structural and
personnel considerations of the department. The exercise provides an opportunity
to overcome bottlenecks, remove existing distortions and bring about
rationalisation of cadre structure so as to improve the efficiency as well as morale
of the personnel and thereby enhance the effectiveness and efficiency of the
Department in the fulfilment of the objectives. The major tasks of the cadre
restructuring exercise include projection of manpower requirements and
rationalisation of the department from the functional, structural and personnel
angles.

2. The last such cadre restructuring was undertaken by the Central Board of
Indirect Taxes & Customs (CBIC) in the year 2013-14. Thereafter in 2017, a
comprehensive exercise for reorganization of the field formations under CBIC was
carried out to align the organizational structure and the resources, including
available manpower, with the functional and administrative needs of the
Department in the new tax regime that was ushered in with the introduction of
the Goods & Services Tax (GST) w.e.f. 01.07.2017. After GST reorganization,
similar exercise was undertaken for Customs formations also. However, both
these exercises were limited to the extent of personnel available in the different
grades, and no new post in any grade was asked for.

27 | P a g e
3.1 The implementation of Goods & Services Tax, considered as the biggest tax
reform since 1947, marked a major transition of the country’s indirect tax
administration to a common national market based on a ‘One Nation-One
Market- One Tax’ approach. The GST subsumed almost all the indirect Central
and State taxes into a single tax. Concept-wise GST is not a new idea. It fact, it
was first introduced in France as early as 1954, and now it has been adopted by
140 countries. Most countries follow the unified system of GST, while some
countries like Brazil, Canada follow a dual GST system where the tax is imposed
by both Federal and Provincial/Central and State governments. India has
adopted the dual system of GST. Implementation of dual system of GST- Central
GST and State GST- and the process changes associated with it have thrown up
challenges, including those related to more than threefold increase in taxpayers
base and manpower management.

3.2 In the area of Customs also, there has been a significant increase in
workload with increase in India’s merchandise exports and imports, necessitating
a comprehensive restructuring of various Group ‘A’, ‘B’ & ‘C’ cadres. Assessment
and collection of Customs Duty functions have also witnessed changes in
procedures and processes, particularly due to introduction of Integrated Goods &
Services Tax (IGST), that have impacted manpower management.

3.3 In addition to the role of revenue collection for the Government Exchequer
CBIC also plays an important role in Economic Security and in securing the
Coastal and Land Borders of the nation in coordination with other agencies such
as Enforcement Directorate, Intelligence Bureau, Coast Guard, NCB etc.

3.4 DoP&T letter F. No. I. 11019/9/2018-CRD dated 25/5/2018 also require


the Department to complete the Cadre Restructuring at the earliest.

3.5 The paradigm shift in indirect taxes administration and its business
processes have necessitated a completely fresh Zero-based review of the present
organizational structure of the Department. A zero-base review facilitates
optimum utilization of resources as per the current functional needs of the

28 | P a g e
organization. While assessing the increase in workload and other factors, it is
important to identify the practices and processes that require focus in newer
areas, processes that have or would become redundant or that might require to
be reconfigured and rationalised for optimal utilisation of resources. At the same
time, the restructuring exercise needs to ensure that it is centred upon the core
mandate of the Department, namely, revenue collection and trade facilitation.

4.0 In order to complete the Cadre Restructuring within the prescribed


schedule, the Central Board of Indirect Taxes & Customs constituted a Working
Group of following senior officers under the chairmanship of Shri Banibrata
Bhattacharya, the then Director General (HRD), vide letter dated 12.06.2018:-

(i) Shri Balesh Kumar, Principal ADG, DGHRD- Convener


(ii) Ms. Hemambika R. Priya, Commissioner (Coordination), CBIC
(iii) Ms. Seema Jere Bisht, ADG, DGARM, Mumbai
(iv) Ms. Bandhana Deori, Commissioner, Shillong
(v) Shri Upendra Gupta, Commissioner (GST), CBIC
(vi) Shri Rajesh Pandey, ADG, DGGSTI, Pune
(vii) Shri M.M. Partibhan, ADG, DG Vigilance, Chennai
(viii) Shri L. Satya Srinivas, Joint Secretary (Customs), CBIC
(ix) Shri Vimal Kumar Srivastava, ADG, NACIN
(x) Shri G. Narayanaswami, Commissioner,, GST, Bengaluru
(xi) Shri Shubh Chintan, ADG, HRM-II, DGHRD
(xii) Shri G. Sreenivasa Rao, Commissioner, Coimbatore
(xiii) Shri Manish Kumar Sinha, Commissioner (Central Excise), CBIC
(xiv) Shri Basavaraj Nalagave, ADG (Systems), Bengaluru
(xv) Shri Ranjit Kumar, Commissioner, GST, Patna
(xvi) Shri Utkarsh Tiwari, Commissioner , Customs, Nhava Sheva
(xvii) Shri Deepankar Aron, ADG, DGRI, Kolkata

5.0 First meeting of the Working Group was held on 06.07.2018 when the
following Vision, Mission, Objectives and Methodology for the Cadre
Restructuring exercise were finalized:-

29 | P a g e
5.1 Vision

Restructuring the Organisation for Ease of Doing Business and to promote the
initiatives of:
 Make in India for larger benefit of the trade and industry.

 Efficient collection of Customs Duty and GST in a fair and effective


regulatory environment through optimal utilization of Human Resources
brought about by such restructuring

 Strengthening the organization to combat tax evasion and illicit trade.

5.2 Mission

 Assess the suitability of the existing structures in view of the national /


International priorities;
 Uniformity in principles/procedures as per GoI guidelines through
scientific management of the cadres;
 Modernisation in HR practices;
 Improve effectiveness of functioning of GST, Customs and Customs
(Preventive) field formations;
 Review of functional verticals in the Department in order to make them
more result oriented;
 To ensure better career progression in order to meet the legitimate
aspirations of personnel;
 Capacity building on the basis of Competency framework;
 Providing a favourable environment by ensuring equal opportunities for all.

5.3 Objectives

 Review the organisational structures in CGST on the basis of the


experience gained in the implementation of GST regime.
 Strengthen the functioning of Customs and Customs (Preventive) field
formations.

30 | P a g e
 Invigorate the functional verticals viz. Directorates to provide the much
needed high level support to the Board.
 Rationally determine the optimal distribution of personnel among the
functionally oriented formations.
 Take concrete steps to mitigate the stagnation in the career prospects of
the cadres to ensure a motivated and self driven workforce.
 Work towards better career progression by introduction of new grades as
well as merit based examinations in order to meet the legitimate
aspirations of personnel.

5.4 Methodology adopted

DoP&T letter F. No. I. 11019/9/2018-CRD dated 25 /5/2018 required the


Department to do the Cadre Restructuring of Indian Revenue Service (C&CE).
However it was decided to do a comprehensive exercise of Cadre Restructuring for
all Group ‘A’, ‘B’ & ‘C’ grades, keeping in view the functional requirements of the
Department in the GST regime, more so as the Cadre Review of only the Group A
posts does not have any meaning without corresponding changes in the structure
down below. To make the entire exercise of preparation of cadre restructuring
proposal more inclusive, following initiatives were taken :-
 Discussions and deliberations with
 Working Group
 Officers
 Staff Associations
 Cadre Controlling Authorities
 Surveys

 Research

 Consultations with CCAs as well as Zones

 Study of the Reports submitted by individuals/ group between 2013 to


2018

31 | P a g e
5.4.1 Discussions with the Working Group

Working Group, headed by the Director General (HRD), held extensive


discussions on various aspects of cadre restructuring on 06.07.2018, 17.08.2018
and 25.09.2018. Working Group constituted following sub-groups for examining
different issues:
(a) Shri L. Satya Srinivas, Joint Secretary (Customs) & Smt. Seema Jere
Bisht, ADG, DG ARM- Restructuring of Customs formations
(b) Shri Rajesh Pandey, Commissioner - Appeal & Audit
Commissionerates & Sub-commissionerates
(c) Shri M.M. Parthiban, Commissioner - Strengthening of Directorates
(d) Shri Utkarsh Tiwari, Commissioner- Career Progression of Group ‘B’
(e) Shri G. Narayanaswamy, Commissioner & Shri G. Sreenivasa Rao,
Commissioner - Analysis of the structure of CGST formations under
CGST vis-a-vis those under State GST
(f) Shri Ranjeet Kumar, Commissioner – (i) Should the structure of
formations be reviewed? (ii) Ideal Staffing pattern and other cadre
related issues.
All Sub-groups submitted their respective reports. Suggestions given therein
were thoroughly examined by the Working Group. Gist of the Recommendations
of the Sub-groups is furnished below:-

 Review organisational structure of GST formations


 Separate Assessment /Preventive vertical
 Appeal Commissionerates to continue
 More Audit and Customs Audit Commissionerates
 Specialised verticals for Narcotics, Wildlife, IPR, Revenue & Economic
Security etc. within DGRI with additional manpower
 Directorates to be strengthened
 Create separate institution to impart training in GST to taxpayers and
tax professionals
 Disparity in manpower availability between CGST and SGST

32 | P a g e
 Additional manpower to Customs and Directorates
 Introduction of Probationary / Leave reserves
 Allocation of ministerial staff to Ranges
 Merger of two Customs cadre into a single Customs cadre / all three
executive cadres into a single cadre
 Ratio of promotion to direct recruitment in appointment to the grade of
Inspector should be 75:25.
 Non functional upgradation in Superintendent grade should be re-
designated as Senior Superintendent
 Merit based examination
 Increase new grades to remove stagnation in Inspector grade
 Provide new channels of promotion in Havaldar grade
 10 % shift in sanctioned staff at all levels from GST / C Ex
 Creation of new Customs formations
 Creation of various Cells to assist Board:

 Harmonised Systems Cell under JS (Customs)


 IMC Cell
 FTA Cell under Commissioner (Customs)
 Single Window Cell under Commissioner (Single Window)
 Augmentation of staff in WCO Cell
 5 % shift in sanctioned staff at all levels from GST / C Ex formations to
Directorates
 Ideal ratio of sanctioned staff strength to be 45:40:15 for GST : Customs
: Directorates
 Creation of Maritime Zone comprising of Customs (P) Commissioner
Jamnagar, Mumbai, Cochin, Trichy, Vijayawada, Bhubaneswar, Pune
Customs and Goa Customs
 Land Border Zone comprising of Customs(P) Delhi, Amritsar, Jodhpur,
Lucknow, Patna, West Bengal and Shillong
 Audit Zone
 Airport (Passenger) Zone
 Appeal Zone

33 | P a g e
 National Assessment Centre
 Reorganise CC Zone Delhi, Mumbai I, Mumbai II, Chennai, Ahmedabad,
Bengaluru and Kolkata
 Create 3 Audit, 2 Airport and 2 Appeal Commissionerates
 Reorganising existing Airport Commissionerates

5.4.2 Surveys:

 Suggestion Box: A Suggestion Box was created on


www.dghrdcbec.gov.in wherein any individual employee of any cadre
could submit his suggestions in respect of Cadre Restructuring.

 Suggestion through Email: An email id cr2018.dghrd@gov.in was also


created and officers and staff were requested to submit their suggestion
on cadre restructuring. Totally 1122 suggestions were received. Each
such suggestion was individually examined. Following table indicates
the number of officers (grade-wise) who responded:-

No. of
Sl. No. Grade suggestions
1 DC/AC 7
2 DD/ AD (OL) 6
3 CAO 5
4 Administrative Officer 8
5 Under Secretary 1
6 Appraisers 2
7 Superintendent of Customs (P) 5
8 Superintendent of CE 53
9 Examiner 5
10 Preventive Officer 8
11 Inspector CE 88
12 EA/TA 712
13 LDC 18
14 Sr. Translator/ Jr. Translator 11
15 Steno./ PS/ Sr. PS 135
16 Asst. Programmer 2
17 Others 10
18 Marine Staff 37
19 Telecommunication Staff 9

34 | P a g e
Gist of the suggestions received is furnished below:-
- Consideration of base cadre seniority for determining All India
seniority in Superintendent grade
- Revision in RR for reduction of qualifying service for promotion from
TA/EA to Inspector
- In situ promotion to stagnating Inspectors and Superintendent grade
officers
- Creation of promotional hierarchy for AD(OL)
- Providing of Weapons training to Havaldars and upgrade Head
Havaldar post to GP 2000

5.4.3 Research:

- Information/ Statistical Inputs for last five years in all the aspects of
indirect tax administration, like revenue collection, taxpayers base,
documents handled, volume of Imports & Exports etc. were collected from
the field formations, Directorate General of Systems & Data Management.
The information was analysed to ascertain the areas of functioning of
indirect tax administration that needed strengthening.

5.4.4 Consultations with Officers and Staff Associations:

DG (HRD) and Pr. ADG (HRD) held discussions with all the Officers and Staff
Federations/ Associations, representing staff at various Group ‘A’, ‘B’ & ‘C’
grades, from 30th July, 2018 to 02.08.2018. Following are the main suggestions
of the Associations:

- Alignment of CGST Organisation with SGST and Parity


- Introduction of deputation / training / leave reserves
- Continuation of 2118 Temporary posts of Assistant Commissioners
- Parallel / separate Group B Service with posts up to Additional
Commissioner grade

35 | P a g e
- More Customs Commissionerates and more posts in Customs
- Appraisers /Examiners to be posted in Customs Audit Commissionerates
- Implementation of Stagnation Committee Report
- Merger of three executive cadres at Group B level
- Equitable distribution of assessees among Divisions and Ranges
- CGST Ranges to be strengthened and ministerial staff in Ranges
- Introduction of Group A posts in Stenographers cadre
- Introduction of more grades in Ministerial cadre
- Parity of CGST hierarchical structure with SGST
- Infrastructure for the formations in CBIC
- Expansion of Systems wing offices in all Zones / States
- Relook into working of Customs Preventive Commissionerates
- Creation of Directorate of Intellectual Property Enforcement
- Departmental examination for promotion to every higher grade

5.4.5 Consultations with Cadre Controlling Authorities:

DG (HRD) and Pr. ADG (HRD) held extensive discussions with all 21 Cadre
Controlling Authorities for Group ‘B’ & ‘C’ staff cadres (15 for GST, 5 for Customs
and 1 for Directorates) and sought their opinion and suggestions. Gist of the
recommendations by CCAs:-
- Parity of CGST hierarchical structure with that of SGST
- Demand for additional GST/Customs Commissionerates in few places
- Strengthening of Ranges
- Increase in sanctioned strength in Customs
- Redefining the duties of the different grades of officers in GST
- Redistribution of staff strength among the cadres
- Ministerial staff in Ranges and Audit Circle
- Merger of three cadres
- Fast track promotion on the basis of Limited Departmental Examination
- Do away with loan basis arrangement

36 | P a g e
5.4.6 Suggestions from the Field formations:

Suggestions were also sought from Zonal Chief Commissioners and Directorates
General. A few of the GST and Customs zones sent their suggestions. Gist of
such suggestions is furnished below:-

- Increase in Sanctioned strength in all grades in GST as well as Customs


formations;
- Audit and anti- evasion need to be strengthened;
- There should be structural and hierarchical parity of CGST with SGST;
- Operational vehicles should be provided to the Range offices;
- Creation of GST/Customs Commissionerates in some places;
- Enhancing the cadre strength of Directorates by merging the loan
strength with the existing sanctioned strength;
- Strengthening of DGPM
o To be headed by Apex grade officer
o More officers needed
- Newly created Directorates should have separate sanctioned staff
strength;
- 2 more ADG posts required in DG GST- Kolkata and Chennai;
- 2 more Zonal Units of DG Audit- Pune/Bhopal and Lucknow;
- Additional staff strength for DRI;
- Directorate General (Systems & Data Management) have proposed
creation of new Zonal Units, headed by Commissioners, at Ahmedabad,
Chandigarh, Hyderabad, Bhopal and Guwahati, new sub-zonal units at
Kochi, Lucknow, Patna, Jammu and Shillong;
- Directorate General of Valuation have proposed creation of Zonal Units
at Delhi, Kolkata, Chennai, Bengaluru, Ahmedabad and Hyderabad

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6.0 Path to be treaded

All the suggestions received so far from different sources were discussed in great
details in the last Working Group Meeting. The thorough preparatory process led
to the identification of the following “Focus Areas for Cadre Restructuring 2018”
which are detailed in the following chapters:

 Strengthening of the constituent units


 Enhancing the Sanctioned Strength and its redistribution
 Streamlining the cadres

6.1 The core team comprising of the following officers examined every suggestion
in depth:
a) Shri Balesh Kumar, DG
b) Ms. Limatula Yaden, ADG
c) Shri Sanjeev K. Singh, ADD
d) Ms. Samriti Goel Saran, ADD
e) Shri Vishnu Kumar, JD
f) Shri Sanjai Kumar Srivastava, AC
g) Smt. Geetha Sreedhar, AAD
h) Shri Ankur Rathi, Inspector
i) Ms. Sonia Yadav, Inspector

The Core Team looked at alternative solutions for each issue and problem so as
to suggest the best solution. Many of the issues have persisted for long time and
required to be dealt with in the present working environment governed by rules
which have also undergone change. The challenge before the Core Group was to
work out meticulously balanced solutions for competing alternatives that can
serve the Department for years to come.
****

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Chapter 6
Existing Organizational Structure of the Central Board of Indirect
Taxes & Customs (CBIC)

Central Board of Indirect Taxes & Customs (CBIC), as part of Department of


Revenue, handles the critical tasks of formulation of policy concerning levy
and collection of Customs, Central Excise duties, Central Goods & Services
Tax and IGST, prevention of smuggling and administration of matters
relating to Customs, Central Excise, Central Goods & Services Tax, IGST
and Narcotics to the extent under CBIC's purview. The Board is the
administrative authority for its subordinate organizations, including Custom
Houses, Central Excise and Central GST Commissionerates and the Central
Revenues Control Laboratories. CBIC is headed by the Chairman duly
assisted by six Members, all of whom are Special Secretaries to the
Government of India.

2.0 The CBIC heads one of the largest formations of Government of India
with around 90,000 mainstream and technical employees deployed over
4000 locations all over the country. The erstwhile central excise locations
were restructured and expanded to meet the design of the Goods & Services
Tax (GST) levy (which is consumption based) and to facilitate the smooth roll
out and implementation of GST. The customs presence is primarily focused
on collection of Customs duties, facilitation of cross border trade, border
management and control functions.

3.0 CBIC has 18 attached offices designated as Directorates. These


Directorates, apart from few specialised anti tax avoidance formations, such
as the Directorate General of Revenue Intelligence and Directorate General
of GST Intelligence, are repositories of technical knowledge in their allotted

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domain of expertise and provide critical inputs to the CBIC, for example, DG
(Systems), is the nodal agency for all IT enabled services; DG (Valuation)
analyses import data and provides technical inputs for correct valuation in
the course of International Trade; National Academy of Customs, Indirect
Taxes and Narcotics (NACIN), is the apex training organisation that provides
specialised in house training at entry level and also targeted modules for
skill/ capacity building not only to all departmental officers but also to
Officers and Staff of State GST departments and other stakeholders.
Directorate General of Revenue Intelligence and Directorate General of GST
Intelligence, by virtue of their special mandate, perform executive function of
enforcing Indirect Tax laws and detecting violations and duty evasion.

4.0 The field formations of CBIC follows a uniform administrative


structure with defined geographical area jurisdictions headed by a Zone that
comprises of Commissionerates for administering Indirect Tax and
Customs laws. This organizational structure is followed for GST as well as
for Customs. However, for GST, the Commissionerates have Divisions and
Ranges. Divisions are headed by DC/AC, while Ranges are headed by
Superintendents. Divisional DC/AC reports to the Joint /Additional
Commissioner who in turn reports to the Commissioner. For Customs, the
Commissionerates perform Assessment as well as Preventive functions.
While preventive functions are handled by Customs Preventive Divisions and
other preventive formations performing anti-smuggling work, on the
assessment side, there are commodity based Assessment Groups headed by
Assistant Commissioners/ Dy. Commissioner reporting to Additional/Joint
Commissioner who further report to the Commissioner. Each AC/DC of
customs exercises supervision over the work of Appraisers, Superintendent
of Customs who in turn are supported by Inspectors/ Preventive Officers.

5.0 In addition, there are GST and Customs Audit Commissionerates. The
GST Audit is aimed at fostering taxpayer voluntary compliance ensuring
proper and timely payments of tax dues. The customs Post-clearance Audit
based on global best practices is aimed at creating an environment of

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increased compliance while allowing Customs to reduce border controls by
shifting compliance checks from the clearance stage to the post clearance
stage. The dispute resolution mechanism involves Commissioner (Appeal)
and independent Tribunal (CESTAT) for hearing the appeals against the
orders of adjudicating authorities. On the Customs side, Commissioner
(Appeals) hears appeals against the orders of officers up to the rank of
Additional Commissioner, CESTAT hears appeals against the orders of
Commissioner (Appeals) and Executive Commissioner. Under the GST, first
appeal against the orders of officers up to the rank of Deputy Commissioner
rests with the Joint / Additional Commissioner (Appeals). Appeal against
orders of Joint/Additional Commissioner are filed before Commissioner
(Appeals). The second appeal in both the cases rests with the GST Tribunal.

6.0 The following Table indicates the existing numbers of the field
formations under CBIC:-

Sl. No. Formation Existing number


1 GST Zones 21
2 GST Commissionerates 107
3 Commissioner (Audit) 48
4 Commissioners (Appeal) 49
5 Customs Zones 11
6 Customs Commissionerates 58
7 Commissioner (Appeal) 9
8 Commissioner (Audit) 3
9 Directorates 18

****

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Chapter 7

Strengthening of the Constituent Units

A constituent unit is an administrative unit delineated for the purpose of


administration. This delineation may be based on functionalities, geography as
well as levels of administration. In CBIC, Board is the national administrative
unit which has Subordinate offices viz. Field formations and Attached offices viz.
Directorates under it for formulation of policy concerning levy, assessment and
collection of Customs, Central Excise duties, Central Goods & Services Tax and
IGST, prevention of smuggling and administration of matters relating to Customs,
Central Excise, Central Goods & Services Tax, IGST and Narcotics to the extent
under CBIC's purview. The field formations are further classified based on the
functionalities into GST and Customs formations. The GST formations administer
GST laws and are responsible for collection of both GST and Central Excise
duties on select commodities/products.

A. Reorganization of GST Formations:

Indirect taxation underwent a paradigm shift with implementation of the Goods &
Service Tax and gradual phasing out of Central Excise duties and Service Tax
other than on select commodities/products. To smoothen the process of
transition to the new indirect taxation regime, an exercise of reorganization of
Central Excise and Service Tax formations and other attached offices under CBIC
was undertaken in the first half of the year 2017. However, this exercise was
limited only to reorganization of the field formations and the aspect of additional
manpower could not be examined, even though it was felt that the available
manpower at that time was not adequate to meet the functional requirements of
the Department. This was because there was no real-time workload related
information available given that the GST and its business processes were new.
The reorganized formations came into existence one week before introduction of
Goods & Services Tax w.e.f. 1st July, 2017. During the said exercise, the basic

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organizational structure of Zone, namely, Commissionerate – Division – Range
was retained. Consequent to reorganization, 21 GST & CE Zones, 107 GST &CE
Commissionerates having 12 Sub-Commissionerates, 768 Divisions and 3969
Ranges, 48 GST Audit and 49 GST Appeal Commissionerates came into existence
across the country. The existing Central Excise and Service tax manpower were
positioned to meet the functional requirements of GST introduction. The said
reorganisation of CE & ST formations into GST formations in 2017 for GST
readiness was done broadly taking into account:-

(a) The estimated taxpayers base which was likely to come into the Central GST
taxpayer net.
(b) A proportionate allocation of revenue based on ratio of distribution of
assessees as per the accepted norms of the Governments.

2.1 A period of around 2 years has elapsed since implementation of GST.


During this period the teething problems of GST introduction have more or less
settled and stabilized. The assessee base of GST under CBIC has gone up
substantially by three times.

2.2 With real-time data of taxpayer base and revenue now available, it appears
appropriate to undertake a relook into the reorganization done for a realistic
assessment of the required number of the field formations alongwith manpower
requirements. Accordingly, the proposal for reorganization of GST formations
has been formulated on the twin parameters of (i) effectiveness of the existing
GST field formations and; (ii) the adequacy, or otherwise, of existing staff strength
available with them. The following principles have been adopted while
formulating the proposal:-

a. Congruity of the jurisdiction of the Commissionerates with the State


boundary.
b. An average taxpayer base ranging from 20,000-50,000 and revenue-base of
around Rs. 3500 Cr for creation of a GST Commissionerate.

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c. The number of taxpayers in a Division as well as Range has been worked
out to be 1800 -5000 in a Division and 300 - 1400 in a Range.
d. Each of the States and Union Territories, except those with small
taxpayers-base and revenue collection in preceding year, should have at
least one GST Commissionerate.
e. Small States and Union Territories, where creation of a Commissionerate is
not viable number of taxpayers and revenue-wise, to at least have a GST
Division.
f. GST Commissionerates having geographically large jurisdictions should
have Sub-Commissionerates for providing taxpayer services to the trade
and industry at their door-steps. Alternately geographically large states
with very limited number of taxpayers to have Sub Commissionerates eg.
some of the North Eastern states
g. Normatively, One GST Audit Commissionerate for every set of two GST
Commissionerates.
h. Normatively, there should be one GST Appeal Commissionerate for every
set of two GST Commissionerates.

3.0 The Proposal:

3.1 GST Zones

3.1.1 Keeping in view the state congruity and the assessee base, the 27 Zones (23
Central Excise Zones and 4 Service Tax Zones) were reorganized to 21 GST
Zones, with one GST Zone in each State, except smaller States such as Nagaland,
Mizoram, Sikkim, Arunachal Pradesh, Assam, Meghalaya, Manipur, Tripura,
Jammu & Kashmir, Himachal Pradesh, Puducherry, Dadra & Nagar Haveli,
Daman & Diu, Andaman & Nicobar, Lakshadweep and Chandigarh. Such States/
UTs with small GST assessee base were brought under the jurisdiction of the
zone of the neighbouring State. However, two States viz. Uttar Pradesh and
Gujarat, with relatively larger assessee base have an additional Zone headed by
Chief Commissioner. Maharashtra with the largest assessee base has three
Zones.

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3.1.2 The registered taxpayer base with CBIC as on 01.04.2018 as well as
01.04.2019 shows that the States with maximum taxpayer base are
Maharashtra, Uttar Pradesh and Gujarat in descending order. Hence the
principle based on which the Zones were formed in the GST reorganisation
continue to hold good and the number of GST Chief Commissioner Zones is
proposed to be maintained at 21 Zones. The proposed Zones and the location of
the headquarters are placed as Annexure A.

3.2 GST Taxpayer Service Commissionerates

It is proposed to continue with the three tier structure of Commissionerate –


Division – Range for the field formations created during the GST reorganisation.
Sub Commissionerates created for maximizing trade facilitation for providing
greater level of ease of doing business and proximity to Tax payers is also
proposed to be continued.

3.2.1. Commissionerates

107 GST executive Commissionerates were created in GST reorganisation based


on the factors viz. (i) State congruity (ii) Taxpayer base (iii) Revenue base and (iv)
existing infrastructure. It has been observed that the reorganisations of the
formations have more or less stabilised. There has been a quantum leap in
taxpayer base by three in the Commissionerates. While the technology friendly
GST tax system has made it feasible for the organisational structure, created
during the introduction of GST, to cater to the increased taxpayer base, it is
observed that some rationalisation is further required. The following proposals
are being made based on the GST Commissionerate wise taxpayer base and
revenue collected (Data enclosed as Annexure B1 to B3).

 Surat Commissionerate which has a taxpayer base of more than one lakh is
proposed to be split to form two Commissionerates viz. Surat I and Surat II

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 Following GST Commissionerates in North East which have very low taxpayer
base of less than 5000 are proposed to be converted to Sub
Commissionerates:
(1) Aizawl (under Imphal Commissionerate) (2) Dimapur (under Dibrugarh
Commissionerate)

The above proposals would translate to reduction in the number of


Commissionerates from 107 to 106. Detailed annexure giving the number and
location of the Commissionerates is given as Annexure C.

3.2.2 Sub Commissionerates

At present there are 12 Sub Commissionerates headed by Additional / Joint


Commissioner existing within the jurisdiction of Commissionerate. It is proposed
to continue with these 12 Sub Commissionerates. In addition, it is also proposed
to create 2 new Sub Commissionerates in (1) Dimapur (2) Aizawl thereby
increasing the number of Sub Commissionerates from 12 to 14. Details of the
proposed 14 Sub Commissionerates are given in Annexure D.

3.2.3 Divisions and Ranges

768 Divisions and 3969 Ranges were created to cater to the taxpayers of the
proposed 107 Commissionerates. To ensure continued last mile connectivity to
the taxpayers, for the time being, the number of Divisions and Ranges are
proposed to be continued as existing.

3.3 GST Audit and Appeal Commissionerates

The GST Audit and Appeal Commissionerates are proposed to be continued as


per the existing norm of one Audit / Appeal Commissionerate for two GST
Taxpayer Service Commissionerate. Depending on State congruity and taxpayer
base Audit / Appeal Commissionerates have been provided in some States for a
single executive Commissionerate also. The proposed changes in number of

46 | P a g e
Taxpayer Service Commissionerates does not necessitate any addition /
reduction in numbers of Audit and Appeal Commissionerate. It is therefore
proposed to retain the 48 Audit and 49 Appeal Commissionerates which are
detailed in Annexures D & E.

B. Reorganization of Customs Formations:

Customs formations operate in a complex and dynamic environment that


presents them with multiple and multipronged challenges as well as
opportunities. This dynamic environment requires them to constantly adapt their
management and operational processes and models. Embracing a flexible and
proactive approach to the management of resources is paramount for Customs
Administrations, if they are to effectively carry out their missions and meet the
expectations of their government and stakeholders. The increasing volume of
trade translating to commensurate increase in transactions, introduction of new
trade policy obligations, the ever-changing challenges of border management and
the emerging security threats places additional demands on Customs
Administrations.

2.0 Over the years, India’s exports and imports have registered a rapid growth,
which have resulted in the increase in the Customs workload. The following
graphic indicates the increase in Imports and Exports since 2013-14:

Source: www.commerce.gov.in

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It may be seen that in 2018-19 the imports have risen in U.S. Dollar terms by
19.35% and exports by 14.85% over 2013-14. Consequently, the number of
import and export documents handled by Customs is increasing considerably
over the years, as shown in Chart below. It is evident that number of Bills of
Entry has increased by 43% from 2013-14 to 2018-19, whereas number of
shipping bills has grown by about 48% over the same period.

Source: www.commerce.gov.in

3.0 In addition to the workload increase in terms of conventional parameters,


there are other equally important functional areas where the workload increase
has been notable. A few of these functional areas are mentioned below:-

a) Border Haats: Four Border Haats across the India-Bangladesh Border, two
each in Meghalaya and Tripura, are operational along remote border areas.
Six more Border Haats are likely to become operational soon. More such
Border Haats are also envisaged to be opened.

b) Land Customs Stations (LCS) and Integrated Check Posts (ICPs): There are
131 LCSs (including 16 ICPs) across international borders of the country.

c) International Airports: Civil Aviation revolution in the country has resulted


in 24 International Airports becoming operational over the years. This
number is likely to increase further. Accordingly the passenger traffic in
these international airports have also gone up tremendously.

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d) Special Economic Zones (SEZs): As per CGST laws, supplies made to SEZ
developers /Unit holders are deemed as exports requiring the payment of
IGST at applicable rates. The export invoice are generated in Indian
currency with an endorsement that ‘Supply is meant for SEZ developer /
unit with payment of integrated tax’. There has been a marked increase in
the number of SEZs which has led to requirement of additional manpower
to cater to the enhanced workload.

4.0 The trend of collection of Customs duty is as indicated below:-

Source: www.indiabudget.gov.in

5.0 The Proposal:


Customs formations were reorganized in 2017 following implementation of Goods
& Services Tax w.e.f. 1st July, 2017. To ensure seamless transition to the GST
regime, the customs functions hitherto handled by Central Excise officers were

49 | P a g e
reorganised. The increased moves towards trade facilitation have been balanced
by strengthening anti avoidance measures including Post Clearance Audits. For
undertaking such functions, specialisation and domain knowledge is critical and
hence specialised Commissionerates have been created.

However, the said reorganization at that time did not factor the requirements of
additional staff strength to meet the increased workload. Therefore, it was
deemed necessary to have a relook in the existing organisational structure not
only for addressing the requirement of additional staff for efficient handling
increased workload, but also making the organizational structure more trade and
industry friendly.

For ensuring effective and round the clock vigilant border control, it is proposed
to strengthen Anti-smuggling set-up across international borders and coastal
areas. This is all the more necessitated against backdrop of spurt in smuggling
activities in the recent years especially of gold and its deleterious impact on the
economy. The proposal is also to strengthen Customs Audit functions to improve
voluntary compliance while facilitating speedy customs clearances in tune with
the Government’s policy of ‘Ease of Doing Business’ and to give a fillip to the
‘Make in India’ programme. The nature of work and its demands translate
differently for Customs and GST formations and therefore call for domain
specialisation and creating institutions of excellence. It is therefore functionally
expedient that the Customs Commissionerates – whether Trade facilitation and
Assessment /Appeal or Audit should lie under the jurisdiction of a Customs Chief
Commissioner. This would ensure further honing of specialisation skills
especially in the age of IT backed business systems. Keeping in view the increase
in workload, recommendations of Cadre Restructuring Working Group and the
discussions with the field formations, reorganization of the Customs Formations
is proposed as detailed below:

5.1 Customs Zones and Commissionerates


There are 11 Customs Zones at present. These Zones are proposed to be
reorganized into 16 Customs Zones. Existing Customs Zones are proposed to be
reorganized as indicated below:-

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5.1.1 Coastal Chief Commissioner Zones

Two Chief Commissioner Zones are proposed based on Coastal boundaries. This
is being proposed to take forward the concept of topographical boundaries. Every
Customs Commissionerate has been mandated to carry out assessment and
preventive functions. This is intended, among others, to provide clearance
facilities (both import and export) to trade and industry at their doorstep through
ICDs /CFS etc in the hinterland.

(1) Eastern Coast Customs Zone:

The Zone, headed by a Chief Commissioner of Customs, is proposed to have


following Customs Commissionerates under the jurisdiction:
(i) Chennai Coastal,
(ii) Tiruchirapalli Customs,
(iii)Tuticorin Customs,
(iv) Vishakhapatnam Customs and
(v) Vijayawada Customs.
The proposed Zone would cover the coastal length of 1881 Kilometres
encompassing jurisdiction of 5 Customs Commissionerates. Chennai, which is
centrally located in the Zone, would be the headquarters of the Zone. This Zone
will provide an integrated approach to anti-smuggling operations throughout the
eastern coastline of the country.

(2) Western Coast Customs Zone:

Western Coast Customs Zone, to be headed by Chief Commissioner, is proposed


to have following Customs Commissionerates under its jurisdiction:-
(i) Mumbai Coastal (now Mumbai Customs Preventive),
(ii) Pune Customs,
(iii)Goa Customs,
(iv) Mangalore Customs,

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(v) Cochin Sea and Air (Now Cochin Customs) and
(vi) Cochin Land Customs (now Cochin Customs Preventive).
The Zone will provide the Customs cover to entire 1800 Kilometres. Zonal
headquarters of the Zone is proposed to be located at Goa, since it is centrally
located within its jurisdiction.

5.1.2 Hinterland Chief Commissioner Zone

(3) Indore Customs Zone:

The uniqueness of the proposed Indore Customs Zone is that the work in the
zone would neither involve ports nor international land borders. The entire
jurisdiction is land-locked. Headquarters of the Zone is proposed to be located at
Indore. The zone is proposed to have a geographical spread of 6.78 lakh Sq. Kms.
handling Customs work of the area covered under the jurisdiction of 13 CGST
Commissionerates. Indore Customs Zone is proposed to have following Customs
Commissionerates under its jurisdiction :
(a) Nagpur Customs
(b) Indore Customs and
(c) Hyderabad Customs.

5.1.3 Land Border Chief Commissioner Zone

Four Land Border Chief Commissioner Zones - 2 in the North, 1 in North Central
and 1 in North East are proposed based on land borders. This is being proposed
to take forward the concept of topographical boundaries. Gujarat Customs has
been covered in entirety and hence its land border Commissionerates has not
been considered in this Zone.

(4) Shillong Customs Zone:

Considering the highly sensitive and strategically important geographical area of


the country located along Indo-Myanmar, Indo-Bhutan and Indo-Bangladesh

52 | P a g e
international borders, it is proposed to create a new Customs Zone in Shillong.
The proposed Customs Zone will not only attend to the Customs work in North-
Eastern States including the State of Sikkim, but also in some parts of the State
of West Bengal that will be under the jurisdiction of the proposed
Commissionerate at Siliguri. The eight North-Eastern States together cover a total
geographical area of 2,62,185 sq.kms. It occupies 7.9 per cent of the total land of
the country. The state of Sikkim is the smallest of eight states, which covers
comparatively small area of 7,096 sq. kms., whereas Arunachal Pradesh covers
about 83,743 sq.km. The Zone is also proposed to attend to the functions related
to the Border Management on 2217 Kms. of Indo-Bangladesh border, 194 Kms.
of Indo-Nepal Border,1880 Kms. of Indo-Bangladesh border, 1300 Kms. of Indo-
China border, 98 kms. of Indo- Nepal border, 1643 kms. of Indo-Myanmar border
and 713 kms. of Indo-Bhutan border. Shillong is proposed to be the headquarters
of the Customs Zone. It is proposed to be named as Shillong Customs Zone,
having three (3) Customs Commissionerates under its jurisdiction, viz.
(a) Shillong,
(b) West Bengal and
(c) Siliguri.
West Bengal Customs Commissionerate is proposed to be kept under
Shillong Customs Zone and not in Kolkata Zone in order to have an integrated
approach to Border Management on the international borders on the eastern side
of the country.

(5) Lucknow Customs Zone:

The Zone has under its jurisdiction the entire Indo Nepal border. At present, the
Zonal headquarter of Customs Zone is at Patna and there are two Customs
Commissionerates, viz. Patna and Lucknow, under its jurisdiction. Being
centrally located, Lucknow is the most suitable place to have the headquarters of
the Customs Zone. It is, therefore, proposed to shift the headquarters of existing
Patna Customs (Preventive) Zone to Lucknow and bring NOIDA Customs
Commissionerate under its jurisdiction.

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(6) Delhi Land Customs Zone:

Considering the strategic importance and sensitivity of the area, it is proposed to


that the Delhi Customs Preventive Zone be redesignated as Delhi Land Customs
Zone with its headquarters at Delhi. Four Customs Commissionerates, viz. Delhi
Land Commissionerate (presently Delhi Cus (P) Commissionerate), Ludhiana
Customs, Amritsar Customs and Jodhpur Customs are proposed to be kept
under the jurisdiction of this Zone. The Zone will provide the Customs cover to
the Indo-Pak Border in the States of Punjab, Rajasthan Jammu & Kashmir.

5.1.4 Customs Trade Facilitation and Assessment Chief Commissioner Zones

(7) Ahmedabad Customs Zone:

This Zone covers the state of Gujarat and the Union Territories of Dadra& Nagar
Haveli and Daman & Diu. The Zone also has jurisdiction over 506 km of Indo
Pakistan border. At present, there are four Executive Customs
Commissionerates, i.e. (a) Ahmedabad, (b) Kandla, (c) Jamnagar, (d) Mundra
under the jurisdiction of the Zone. It is proposed to maintain status quo in the
zone.

(8) Bengaluru Customs Zone:

There are presently three Executive Customs Commissionerates under the Zone,
viz. (a) Bengaluru Airport & ACC Commissionerate, (b) Bengaluru City (ICD)
Commissionerate, (c) Mangalore Commissionerate. Mangalore Customs
Commissionerate is proposed to be brought under the proposed Western Coast
Zone in order to have an integrated Coastal management.
Bengaluru Customs Zone has witnessed tremendous growth in all fronts. The Air
Cargo Complex has seen approximately 50% increase in BoE/SB in the last five
years. The Courier terminal has seen a whopping 66% increase in number of Bills
of Entry over the last five years. International Airport in Bengaluru has seen a
53% increase in number of international flights handled and 57% increase in

54 | P a g e
number of international passengers during the last five years. Hence taking into
consideration the huge increase in workload, it is proposed to create an exclusive
Air Cargo Complex Commissionerate in Bengaluru. The Bengaluru Airport
Commissionerate will handle work relating to Courier Terminals also and will be
renamed as Bengaluru Airport & Courier Terminal. It is therefore proposed to
have three executive Commissionerates in the Zone viz. a) Bengaluru Airport &
Courier Terminal (b) Bengaluru ACC and (c) Bengaluru City (ICD).

(9) Chennai Customs Zone:

At present, there are five Executive Customs Commissionerates, i.e. (a) Chennai-I
(Airport) (b) Chennai-II (Import) (c) Chennai-III (Export) (d) Chennai (ACC) and (e)
Chennai (General) under the jurisdiction of the Zone. Chennai Customs Zone has
a large Customs Cadre under its control and also the second largest revenue
earning Zone. Hence it is proposed to bring this Zone under the administrative
control of a Principal Chief Commissioner.

(10) Delhi ICD Zone & (11) Delhi Air Zone:

Delhi has an important International Airport and Air Cargo as well as many
Inland Container Depots, viz. ICD (Tuglakabad), ICD (Patparganj) and ICDs in
Haryana. There has been more than 60 % increase in workload in air cargo
complex and a whopping 133% in courier terminal over the last few years. The
workload in Inland Container Depots has also increased by around 20 %. Since
the present Delhi Zone has two distinctively streams of customs formations
namely ICDs and Air Cargos, both entailing huge revenue and workload
independently, it is proposed to create a new Customs Zone in Delhi and
bifurcate the Customs workload currently being handled by Delhi Customs
Zone between these two Zones – one handling the ICDs and the other Airport and
Air Cargo. This would also serve the objective of specialised Zones. The
Jurisdictions of these two Zones are proposed as below:

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Existing Proposed
Existing Zone Proposed Zone
Commissionerates Commissionerates
ICD (Tughlakabad) ICD (Tughlakabad)
Imports Imports
Delhi ICD Customs
ICD (Tughlakabad) ICD (Tughlakabad)
Zone
Exports Exports
ICDs (PPG & Others) ICDs (PPG & Others

General & Airport IGI Airport


Delhi Customs

ACC (Imports) Delhi Air Customs ACC (Imports)


Zone

ACC (Exports) ACC (Exports &


General)

(12) Kolkata Zone:

At present, three Commissionerates, viz. Sea Port, Airport & ACC and West
Bengal Customs Preventive, are under the jurisdiction of this Zone. The West
Bengal Customs Preventive Commissionerate is proposed to be shifted under the
jurisdiction of the Land border control Zone viz. Shillong Zone. Bhubaneshwar
Customs Commissionerate which is currently under the jurisdiction of
Bhubaneshwar GST Chief Commissionerate Zone is proposed to be brought
under Kolkata Zone. This not only organises the Customs Commissionerates in
the Eastern part of India under a single umbrella, it also completes the
rationalisation of Bhubaneshwar Customs Commissionerate. It is, therefore,
proposed to have following three Commissionerates under the jurisdiction of the
Zone:
(a) Kolkata Seaport;
(b) Kolkata Airport & ACC;
(c) Bhubaneshwar Customs (Presently under Bhubaneshwar GST Zone)

(13) Mumbai Zone:

Mumbai Customs Zone I comprises of four executive Commissionerates and


Mumbai Customs Zone III has under its jurisdiction six executive
Commissionerates including the Customs (Prev) Commissionerate. The overall

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workload in Mumbai Zone I has been shrinking in both the Port as well as the
ICD. The reduction in workload amounts to approximately 16% in the last few
years.
It is, therefore, proposed to merge the Mumbai-I Customs Zone with Mumbai-III
Customs Zone to create Mumbai Zone. Mumbai Customs Preventive
Commissionerate has been proposed in the preceding paras to be brought under
the Western Coast Customs Zone (proposed). The zone would have the following
Commissionerates under its jurisdiction:

Existing Proposed
Existing Zone Proposed Zone
Commissionerates Commissionerates
General General
Mumbai Customs Import I Mumbai Sea Port
Zone I Import II ACC (Import)
Export ACC(Export)
Customs I (AP) Airport (Special Cargo)
Mumbai
Mumbai Customs
Customs II (APSC) Mumbai Airport
Zone III
Customs III (IMP)
Customs IV (EXP)
Customs V (Gen)

(14) Nhava Sheva Zone:

There has been a nominal increase in the workload of Mumbai Customs Zone-II
since last Cadre Restructuring 2013. Thus, there does not appear a need to
reorganize the zone and status quo needs to be maintained.

5.1.5 Annexure detailing the existing as well as proposed Zones and


Commissionerates is placed at Annexure F, G & H.

6.0 Customs Audit and Appeal Zones and Commissionerates

6.1 Customs Audit Zone:

Due to the growing emphasis on improving trade facilitation requiring


modification in Customs procedures to reduce dwell time, the thrust of the
department is on the audit to encourage voluntary compliance. With the overall

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objective of balancing between compliance and facilitation, the initiative of
Customs Post Clearance Audit (PCA) based on global best practices was
introduced with creation of four Customs Audit Commissionerates , one at Delhi,
Chennai each and two at Mumbai. PCA allows Customs to shift compliance
checks from the clearance stage to the post clearance whilst retaining selective
and targeted checks at the frontier. The scope of work of Audit
Commissionerates covers (i) Premises Based Audit, (ii) Transaction Based Audit
and (iii) Theme Based Audit in addition to administrative functions. The Audit
Officers are required to conduct transaction Based Audit with regard to
valuation, mis-classification, wrong availment of exemption Notification benefits,
proper payment of IGST and Anti dumping etc. Under theme based Audits, the
Audit Commissionerates are allotted select themes by the Board and after
retrieval , analysis of data and segregation of data pertaining to the various
Commissionerates, the same is forwarded to the respective commissionerates for
necessary action such as recovery, issuance of SCNs etc. The Audit
Commissionerates are also mandated to conduct premises based audit which is
resource heavy in terms of manpower and time.
In a short time of its implementation, the audit detection and recoveries have
been promising indicating future potential. For Instance, the recovery for the last
financial year 2018-19 on account of the objections raised by the Audit
Commissionerate, JNCH, was Rs 43.5 Cr. During the current year, the recovery
on account of audit objections raised, has already touched Rs 95.61 Cr till
31.08.2019. Similarly, Chennai Audit Commissionerate has effected recovery of
Rs 30.18 crore.

Accordingly, it is proposed to create three more Audit Commissionerates, one


each at Kolkata, Bengaluru and Ahmedabad. In order to maintain a nation-wide
uniform audit policy, it appears necessary to have a dedicated vertical for
monitoring performance of Audit Commissionerates. Accordingly, it is proposed
to create a Customs Audit Zone, having headquarters at Mumbai, with all seven
Customs Audit Commissionerates, viz. Chennai, Mumbai-I, Mumbai-II, Delhi,
Kolkata, Bengaluru and Ahmedabad Customs Audit Commissionerates, under its
jurisdiction. Details of the 7 Audit Commissionerates are in Annexure H & I.

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6.2 Customs Appeal Zone:

Efficient disposal of pending cases before Commissioner (Appeals) is an important


part of dispute resolution. In order to bring discipline and uniformity in the
dispute resolution process of the department and to reduce unnecessary
litigation as envisaged in the National Litigation Policy, it is necessary to create a
Chief Commissioner Appeal Zone headquartered at Delhi comprising of all
Commissioner (Appeals). There will be an Appeal Commissionerate in each of the
14 Zones. Details of the 14 Appeal Commissionerates are as in Annexure G & H.

C. Reorganization of Board and its attached offices:

(i) Board

The structure of the Central Board of Indirect Taxes and Customs (CBIC) was
reorganised in 2017 along with change in nomenclature to Central Board of
Indirect taxes and Customs to meet the work profile ushered in by the GST
regime. The Board is currently headed by a Chairman who is assisted by 6
Members – Member (Tax Policy), Member (GST & CX), Member (Customs),
Member (Investigation), Member (Admin & Vigilance) and Member (Legal, IT and
Compliance Verification).The existing structure is proposed to be continued at
this level. The Chairman and Members of the Board are assisted by 6 Joint
Secretaries and 10 Commissioners sanctioned for CBIC Headquarters. The
various posts of Commissioner in Board is as below:
1. Commissioner (Coordination)
2. Commissioner (CX)
3. Commissioner (Service Tax)
4. Commissioner (Legal)
5. Commissioner (Customs & EP)
6. Commissioner (RI & I)
7. Commissioner (IT and Compliance Verification)
8. Commissioner (Investigation-Customs)

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9. Commissioner (Investigation-GST)
10. Commissioner (PAC)

While the salary for the posts of Commissioners at S.No. 1 to 6 above are borne
by the Department of Revenue, the same for the remaining four are borne by
CBIC. The following reorganisation of Commissioner’s posts in the Board is
proposed:
a) Redesignate Commissioner (CX) as Commissioner (CX & Service Tax) who
would look after legacy issues of Central Excise and Service Tax and Central
Excise matters on goods that continue to attract Central Excise duty such as
petroleum products and also tobacco products which attract Central Excise duty
over and above GST.
b) Redesignate Commissioner (Service Tax) as Commissioner (GST Policy -I).
c) Create a new post of Commissioner (GST Policy -II).

(ii) Attached Offices of CBIC

Directorates are the attached offices of the Board. There are 18 Directorates
under Central Board of Indirect Taxes & Customs. Each of the Directorate is a
specialized unit dealing in assigned technical area of indirect tax administration
and is the repository of information on related aspect, besides providing /
strengthening institutional memory. Due to the varied nature of the functioning
of different Directorates, it is not possible to formulate general norms applicable
to all the Directorates. Nevertheless, each Directorate has been assessed
individually for reorganization based on the recommendations of the individual
Directorate as well as future role in indirect tax administration envisaged for it.
Before proceeding further, it is pertinent to mention that the practice of providing
manpower on a loan basis needs a relook. Given the specialised tasks carried out
by these organisations and their increased utility in policy making etc the
proposal is to strengthen the Directorates by provision of additional manpower on
regular basis doing away with the systems of drawing manpower on loan basis.
As a principle it is proposed that all Directorates would be headed by a
Apex/HAG+ grade officers given that the Directorates provide thematic inputs to

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the Board in policy matters. Therefore Directorates presently headed by SAG
Grade officers would be brought under the administrative control of Directorates
headed by Apex/HAG+.

The Directorate-wise reorganization proposal is discussed in the following


paragraphs:

(1) Directorate of GST Intelligence (DGGI)


Consequent upon implementation of Goods & Services Tax w.e.f. 01.07.2017
and gradual phasing out of Central Excise duties on goods barring a few and
Service tax, the Directorate General of Central Excise Intelligence was
reorganized and rechristened as Directorate General of Goods & Services
Intelligence. The major tasks and responsibilities assigned to it include collection,
collation and dissemination of intelligence relating to evasion of Goods & Service
Tax and to study the price structure, marking patterns, classification of
commodities vulnerable to evasion of GST. It also coordinates with other
Departments including State GST departments, Income Tax department etc. It
investigates the cases of evasion of GST. It also advises the Board and the
Commissionerates on the modus operandi of evasion of Goods & Service Tax and
suggests appropriate remedial measures, procedures and practices in order to
plug any loopholes. While the Directorate was recently reorganized to align its
functions with new GST administration, commensurate with increase in workload
there is a case for strengthening the Directorate. Moreover for effective and
efficient monitoring of Prosecution cases a Prosecution Cell is proposed to be
created in DGGI. Details in this regard are provided in Chapter 9.

(2) Directorate General of Revenue Intelligence (DGRI)

DGRI is an apex customs intelligence organization under the CBIC having pan-
India jurisdiction. It has been assigned the following tasks:-
(a) To study and disseminate intelligence about smuggling;
(b) To identify the organized gangs of smugglers and areas vulnerable to
smuggling, targeting of intelligence against them and their immobilization;

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(c) To maintain liaison with the intelligence and enforcement agencies in India
and abroad for collection of intelligence and in-depth investigation of important
cases having inter-Commissionerate and international ramification;
(d) To alert field formations for interception of suspects and contraband goods,
assessment of current and likely trends in smuggling;
(e) To advise the Ministry in all matters pertaining to anti-smuggling measures
and in formulating or amending laws, procedures and practices in order to plug
any loopholes; and,
(f) To attend to such other matters as may be entrusted to the Directorate by the
Ministry or the Board for action/ investigation.

Over the years, the workload of the Directorate General of Revenue Intelligence
has increased exponentially not only in its traditional operational areas but also
in areas of emerging international threats like globalisation of tobacco epidemic.
India has become a party to the WHO-FCTC protocol to eliminate illicit trade in
tobacco products. This protocol casts many obligations which are mainly
enforcement related. Though Ministry of Health and Family Welfare is the line
ministry, the role of Customs and enforcement agencies under CBIC is very
significant. CBIC must take a proactive role in the matters relating to WHO-FCTC
protocol. The Protocol also entrusts various aspects including enforcement,
international co-operation etc. Therefore, implementation of the Protocol in the
true spirit calls for a dedicated wing in the CBIC. To start with, it is proposed to
have a separate Tobacco Control Wing headed by a ADG(SAG) level officer that
can specialise in all aspects relating to the protocol and administration of
legislation in this regard and assisted by one Additional/Joint Director, two
DDs/ADs and support staff. This Wing will also act as a nodal agency in India to
interact with other line Ministries/Departments/Agencies as well as International
Agencies and other countries.
For effective and efficient monitoring of Prosecution cases a Prosecution Cell is
proposed to be created in DGRI. Details in this regard are provided in Chapter 9.
The number and amount involved in the adjudication cases being handled by the
two Commissioners (Adjudication) has increased tremendously. The total number
of case pending for adjudication has increased from 126 numbers involving an

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amount of Rs. 1744.15 cr in March 2018 to 235 nos. involving an amount of Rs.
4106.90 cr in March 2019. Considering the enormity and pan India nature of the
cases, it is proposed to create one more post of Commissioner (Adjudication) in
DGRI in Chennai.
Due to increase in workload, the existing sanctioned strength has become
insufficient to handle the duties and responsibilities assigned in an efficient
manner. Therefore, it is proposed to strengthen the Directorate by providing
additional staff strength, while keeping the extant organizational structure intact.

(3) Directorate General of Performance Management (DGPM)

DGPM is the oldest of all the Directorates under CBIC. It has been assigned the
following tasks:-
(i) Study the working of the Customs and Goods & Service Tax Departmental
Machinery throughout the country.
(ii) Suggest measures for improvement in efficiency and rectification of
important defects in it through inspection and by laying down procedures
for smooth functioning.
(iii) Carry out inspection to determine whether the working of the field
formations is as per Customs and Goods and Service Tax procedures and
to make recommendations in respect to the procedural flaws, if any
noticed.
(iv) Suggest measures for improvement in functioning of the field formations.
(v) Monitor performance of the field formations in key result areas through
monthly performance report compilation in Customs, Goods and Service
Tax.
(vi) Process rebate claims in terms of Board’s notification or a treaty
(vii) Function as the nodal office for implementation of the Rajbhasha (Official
Language) Policy of Government in the field formations.
(viii) Undertake functions and responsibilities of erstwhile Chief Commissioner
Tax Arrears Recovery, viz., review the position of Arrears of Revenue of
Central Excise and Customs and finalize and implement the strategy for
realization of arrears with the objective of meeting the targets.

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In order to streamline the manpower management, Group ‘B’ and ‘C’ staff cadres
management have been integrated and DGPM has been assigned the task of the
Cadre Controlling Authority for the integrated cadre of all Directorates. It is
proposed to strengthen the Directorate by providing additional staff strength,
while keeping the extant organizational structure intact.

(4) Directorate General of Human Resources Development (DGHRD)

DGHRD has been primarily assigned the task of devising and designing CBEC’s
Human Resource Management plans in congruence with the goals and vision of
the department and to analyze and propose changes in the organizational
structure of the department. It has four wings and each wing has been tasked
with a specialised function – Human Resource Management –I, Human Resource
Management –II, Expenditure Management Cell and Infrastructure & Welfare.
HRM wings maintain and update the Human Resource Information System
(HRIS) for recommending officers/staff for training, placement, skill upgradation
and succession planning and to provide data support to CBIC for promotions,
placement and transfer of officers. It is also mandated to develop and maintain
an effective Management Information System (MIS) and Performance
Management System (PMS) for capturing and assessing individual performances
and to coordinate and act as Custodian of all Annual Performance Appraisal
Reports (APAR) of Group A officers. HRM wings also provide inputs for all policy
matters including recruitment rules for effective career progression and
management of Gr A, B and C cadres. Infrastructure Division of the Directorate
functions as ‘nodal authority’ for examination and processing of all infrastructure
proposals received from the field formations and to attend all issues pertaining to
approval and sanction for infrastructural projects. Welfare Wing of the
Directorate attends to all Staff welfare measures, while Expenditure Management
Cell attends to all the matters related to the annual Budget of the Department.

With the introduction of e Sparrow for more than 90% of Group B and C staff and
with the proposed merger of the three executive grades of Inspector Central
Excise, Inspector Customs Preventive and Customs Examiner into an All India

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cadre, maintaining this huge cadre of around 30000 officers would need a
dedicated set up. Hence it is proposed to create HRM III Wing headed by an
Additional Director General. It is also proposed to rename the Expenditure
Management Cell as Expenditure Management Wing and strengthen the
Directorate by providing more staff strength at different Group A, B & C levels.

As part of rationalisation exercise detailed in Paragraph C (ii) above, the issue of


placing Directorate of Logistics under DGHRD was also examined. Directorate of
Logistics is the nodal agency to monitor the logistical requirements of field
formations pertaining to Anti-smuggling, Communication and Marine. It also
assists the Board in planning and assessing the need for staff training,
equipments, vehicles, vessels, communications or other resources required for
anti smuggling work and to deal with the matters concerning acquisition,
procurement, purchase, repair and reallocation of such equipment. The
Directorate is also in the process of establishment and expansion of a Customs
Canine squad. Given the nature of its functions, which is akin to work
undertaken by the Infrastructure wing, hence it is proposed that the Directorate
of Logistics be brought under the administrative control of DGHRD.

(5) Directorate of Logistics (DoL)


As detailed in foregoing para.

(6) National Academy of Customs, Indirect Taxes & Narcotics (NACIN)

NACIN, as the premier training academy, is mandated to regularly impart


induction training and refresher courses to all the officers and staff – direct
recruit as well as promotee officers – in different grades. After implementation of
Goods & Services Tax, the Academy has also been imparting training to officers of
the GST departments of different States and Union Territories. In addition the
Academy regularly conducts training for the officers of various other countries
under UNDP. NACIN was reorganised in 2017 and 16 zonal Training Institutes
and 2 Regional Training Institutes were set up to impart induction and refresher
training for Group B & C officers and continuous skill upgradation for all in

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service officers. NACIN also conducts promotion and confirmation exams for all
Group B and C officers. Since NACIN was reorganized in 2017 no change in
organisational set up is proposed. However it is proposed to strengthen the
Academy by providing more staff strength at various levels so as to enable it to
efficiently handle the increased workload.

(7) Directorate General of Vigilance (DGoV)

DGoV is the watchdog of the CBIC and it assists the Board in ensuring
corruption free Indirect Taxes administration. It is mandated (a) to monitor the
vigilance cases against the officers of Customs, GST and Central Excise
formations; (b) to maintain proper surveillance on the officials of doubtful
integrity; and, (c) to maintain close liaison with the Central Bureau of
Investigation, Directorate General of Revenue Intelligence in order to ensure that
the programmes on vigilance and anti-corruption are implemented in all
Commissionerates of Customs, Goods & Services Tax, Central Excise and
Narcotics formations.
Keeping in view the thrust on preventive vigilance, it is proposed to create one
more Zonal Unit of DGoV in Bhopal. This Zonal Unit will be carved out of the
jurisdiction of existing Lucknow Zonal unit which has the largest jurisdiction
spread across 6 States of India. Moreover it is proposed to provide one post of
Commissioner (Inquiry Officer) in South Zonal Unit of DG Vigilance, as has been
provided to the North, East and West Zonal Units. It is also proposed to
strengthen this Directorate by providing more manpower.

(8) Directorate General of Systems and Data Management

Directorate General of Systems & Data Management is headquartered in Delhi


and its four Zonal Units headed by Commissioners are at Chennai, Mumbai and
Bengaluru and Kolkata. It is assigned with the task of looking after all aspects of
the implantation of Customs, central excise and GST computerization projects
including acquisition of hardware, development and maintenance of software,
training of personnel and monitoring of expenditure budget on computerization

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at the central and field levels. It also collects and consolidates data and statistics
pertaining to realization of revenue from indirect taxes and advices the Ministry
and the Board in forecasting budget estimates. It also provides digital and
Information Technology support to the Business Processes in GST, including
GSTN, and Customs. It is proposed to create a new Zonal Unit at Hyderabad to
meet the IT support needs of the local commissionerates in the States of Andhra
Pradesh and Telangana. It is also proposed to strengthen the Directorate in
terms of manpower in different grades.

(9) Directorate General of Audit

DG Audit provides support and advice to the CBIC in policy formulation,


coordination and supervision of audits for evolution and improvement of audit
techniques and procedures and to ensure effective and efficient implementation
of new audit system through periodic reviews. It also helps in coordination with
the external agencies as well as other formations within the Department and
suggests measures to improve tax compliance. It also carries out periodic studies
of the audit standards and assesses satisfaction level and evolves policy for
development of a sound database as well as enhancing the skills of the auditors
with a view to making the audit effective and meaningful. Keeping in tandem with
the growth in GST assessee base, the role, responsibilities and workload of this
Directorate have increased under the Goods & Services Tax regime. While the
organisational structure of this Directorate is not proposed to be altered, it is
proposed to increase its manpower support to facilitate enable it to handle the
fresh challenges and increased workload post implementation of GST.

(10) Directorate General of Anti-profiteering

As a precursor to introduction of GST, Directorate General of Anti-profiteering


was created in June, 2017, primarily to conduct investigations and gather
evidence to determine whether the benefit of reduction in the rate of tax on any
supply of goods or services or the benefits of Input Tax Credit has been passed on
to the recipient by way of commensurate reduction in prices in terms of Section

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171 of the Central GST Act, 2017, and the Rules made therein. It coordinates on
behalf of CBIC with National Anti-profiteering Authority. This formation is
proposed to be headed by a SAG grade officer and brought under DG GST as
Anti-profiteering Wing with suitable staff strength.

(11) Directorate General of Export Promotion (DGEP)

DGEP interacts on behalf of the Board with the Export Promotion Councils to
smoothen and ease the difficulties being faced by the genuine exporters/ trade. It
also functions in close liaison with allied agencies concerned with the exports to
ensure that genuine exporters get the full benefits of the export schemes without
facing any hurdles. It also carries y out the appraisal studies to examine the
efficacy of the existing legal provisions/ rules and procedures and provides
suggestions to the Ministry on policy changes to be made, if any; and conduct
post-audit of the Brand Rate fixed by the field formations. It also conducts post
audit of the select cases of duty free imports allowed under various Export
Promotion Schemes. This Directorate, headquartered in Delhi, is proposed to be
strengthened by providing additional staff strength. Moreover as part of
rationalisation exercise, it is proposed to bring the Directorate of International
Customs under the administrative control of DGEP and rechristen the
Directorate as “Directorate General of International Customs and Export
Promotion”

(12) Directorate General of Valuation

Directorate General of Valuation, as an attached office of the CBIC carries out


important function in ensuring a level playing field to domestic industry by
ensuring proper valuation of import and export goods. Its primary functions
include assisting and advising the Board in Policy matters concerning Customs
and GST Valuation, developing valuation tools (including databases) and best
practices for the effective and uniform application of Valuation laws, monitoring
valuation trends of sensitive commodities and taking corrective action, providing
guidance and advice through valuation alerts as well as advisories to field

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formations on valuation matters and checking undervaluation/overvaluation of
imported or export goods so as to prevent leakage of Customs and Central Excise
revenue, and co-ordinating Customs valuation matters with relevant
international organizations. It carries out analysis of valuation data for providing
suitable inputs for interdictions to be inserted by Risk Management System. The
GST valuation database is expected to carry forward all the best practices that
have been evolved under the NIDB. The workload has since increased
substantially. It is proposed to strengthen the Directorate by providing additional
staff strength in different grades.

(13) Office of the Chief Commissioner (Authorised Representative), CESTAT

Authorised Representatives working in the Office of Chief Commissioner (AR),


CESTAT, represent the Department before the Tribunal in Central Excise and
Customs appeal cases filed against the orders of Commissioner and
Commissioner (Appeal). With introduction of GST and gradual phasing out of
Central Excise duties except on few select goods, there has been a change in the
appellate mechanism of Appeals against GST adjudication cases. Under the GST
laws, the Appeals against GST adjudication cases will be heard by a State
Tribunal and the Department is to be represented only by Legal Advocates in the
GST State Tribunal. Hence, the CESTAT, will hear cases pending with Tribunal
and only the Appeals filed under Customs Act, 1962 and Central Excise Act,
1944. From the following data, it may be seen that there are substantial number
of cases pending before the Tribunal and at various levels which are envisaged to
be agitated before the Tribunal.

Cases in CESTAT (As on 31.03.2019)


(Rs. in cr)

Central Excise Customs Service Tax Total

CESTAT No. Amt. No. Amt. No. Amt. No. Amt.


Receipt in
3461 10784.23 2762 2716.45 3576 14458.6 9799 27959.29
2018-19
Pending with
3466 11224.86 2809 3119.95 3592 14586 9867 28930.82
CESTAT

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Cases before Commissioner Appeals (As on 31.03.2019)
( Rs. in cr)
Commissioner
No. Amt. No. Amt. No. Amt. No. Amt.
Appeals
Receipt in
881 432.58 684 77.42 1079 631.41 2644 1141.42
2018-19
Pending with
Commissioner 833 431.25 655 75.95 1046 612.2 2534 1119.41
Appeals
Cases pending adjudication with Commissioner (As on 31.03.2019)
( Rs. in cr)

Commissioner No. Amt. No. Amt. No. Amt. No. Amt.

Receipt in
2843 24945.70 2236 14143.82 4693 117591.88 9772 156681.40
2018-19
Pending
adjudication
1231 15897.20 1085 11372.34 4298 108224.43 6614 135493.97
with
Commissioner

Hence, it is proposed to retain the present organization structure and the staff
strength already available to it. However, in line with the rationalisation exercise,
it is proposed to bring the Directorate of Legal Affairs under the administrative
control of CC(AR) CESTAT and rechristen the Directorate as “Directorate
General of Legal Affairs and AR”.

(14) Directorate General of GST

After implementation of Goods & Services Tax, Directorate General of Service Tax
was reorganised and rechristened as Directorate General of Goods & Services
Tax. The reorganized Directorate has been assigned the task of capacity building
by developing training modules including e-training modules in co-ordination
with NACIN. It has also been assigned the task of examining the issues relating to
GST on the basis of inputs received from trade, conducting research and analysis
in respect of GST and providing assistance to the Policy Wing of GST of CBIC. It
is also required to act as a Think Tank and an intermediary between the CBIC
and the field formations, professionals and other stake holders on behalf of CBIC.
The Directorate presently has four Zonal units for North, South, East and West

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and is headquartered at Delhi. However there is no separate organisational set up
for the operations of Headquarters and North Zonal Unit. It is proposed to make
the North Zonal Unit a separate entity independent of the Headquarters and
accordingly strengthen the Directorate in terms of additional manpower.
Moreover it is proposed to bring the Directorate of Anti Profiteering under the
administrative control of DGGST.

(15) Directorate General of Taxpayers Services

Directorate of Publicity, Publication and Public Relations was revamped at the


time of implementation of GST in July, 2017, and renamed as Directorate
General of Taxpayers Services. It is tasked with providing taxpayer information,
taxpayer education and taxpayer assistance and designing and executing
outreach programmes in coordination with NACEN, DG GST. It is also mandated
to create, put in place and execute appropriate media policy, including social
media. Prior to its revamping, the Directorate functioned from New Delhi.
However under the GST regime, it has spanned across the country with the aim
to help taxpayers at their door-steps. The Directorate presently has six Zonal
units located at Delhi, Chennai, Mumbai, Kolkata, Ahmedabad and Bengaluru
and is headquartered at Delhi. However there is no separate organisational set up
for the operations of Headquarters and North Zonal Unit. It is proposed to make
the North Zonal Unit a separate entity independent of the Headquarters and
accordingly strengthen the Directorate in terms of additional manpower.

(16) Directorate General of International Customs (DIC)

DIC is a formation created in July, 2017, and is mandated to attend the matters
related to Bilateral and Multi-lateral International Cooperation, Free Trade
Agreements, foreign delegations and visits abroad; Authorized Economic Operator
Programme; work related to National Committee on Trade Facilitation; Policy
support to the Board in the matters related to Customs Tariff, IGST, Post
Clearance Audit including Onsite Post clearance Audit and drafting of various
Rules and Regulations under Customs Act. It is proposed to retain its existing

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structure. However, it is proposed to bring the Directorate of International
Customs under the administrative control of DGEP which is proposed to be
renamed as Directorate General of International Customs and Exports
Promotion.

(17) Directorate General Analytics and Risk Management (DGARM)

DGARM is a new formation created at the time of implementation of GST. It has


four Wings viz. (i) Centre for Business Intelligence and Analytics (ii) Risk
Management Centre for Goods and Service Tax (iii) Risk Management Centre for
Customs and (iv) National Targeting Centre. While the Wings mentioned at (i) and
(ii) are associated with Goods and Service Tax, the Wings mentioned at (iii) and
(iv) are predominantly Customs oriented but provide assistance to GST
formations also. Since it is a new formation and has been working as envisaged,
it is not proposed to bring in any change in its set-up.

(18) Directorate of Legal Affairs (DoLA)

DoLA is mandated to monitor the appeal cases filed by the Department and the
taxpayers before the CESTAT, High Courts and the Supreme Court. It also
perform a liaison role between standing counsels and field formation for briefing,
requirement of additional documents etc as well as transmitting information to
field formations regarding curing of defects in pleadings. It also recommends
names of lawyers fit for empanelment as Standing Counsels for representing the
Government before different legal fora. Given the voluminous litigation cases that
require to be monitored to facilitate timely disposal and recovery of arrears, it is
proposed to strengthen this formation in terms of additional manpower. However
it is proposed to bring the Directorate of Legal Affairs under the administrative
control of CC (AR) CESTAT.

Table detailing the existing and proposed Directorates and Zonal Units is placed
at Annexure J1 and J2.

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2.0 Formation(s) other than Directorates

(1) Central Revenues Control Laboratories (CRCL)

In addition to the Directorates specified above, the CBIC has under its control
the Central Revenues Control Laboratory. CRCL provides an in-house technical
support to the field formations under CBIC by analyzing samples of goods, and
rendering technical advice to the Board and its field formations, in regard to the
nature, characteristics and composition for various goods. Though this formation
is purely technical in nature and majority of its officers and staff also attends to
technical nature duties, there are mainstream ministerial officers also that attend
to the non-technical work related to general administration of the formation.

(2) Central Bureau of Narcotics (CBN)

(3) Office of Chief Controller of Opium and Alkaloid Factories (CCF)

Both these formations function under the direct supervision of the Revenue
Secretary and the CBIC provides only the manpower support at Group A level. It
is proposed to continue the existing arrangement.

(4) Settlement Commission: Four (4) posts each of Commissioner and


Additional Commissioner in Settlement Commission are encadred with IRS
(C&CE). It is proposed to continue with this arrangement.

****

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Chapter 8

Streamlining the Cadres

Zero-based manpower planning in the department is one of the guiding principles of


the present exercise. The underlying essence of the principle, including its
implication in manpower planning, presupposes that every function in an
organization is unnecessary, until proved otherwise. The application of this
principle purely in the man power domain stresses on the importance of ongoing
organizational vigil to measure effectiveness and value addition from each job to
generate bottom line benefits, meaning thereby that no man power should remain
unutilized and should be optimally utilized for the benefit of the organization. It
entails study and analysis for optimum utilization of the available manpower
resources at all the levels of the hierarchy. Consequently, this will lead to not only
to redeployment and reassignment of the employees according to current
organization’s functional requirements, but also ensure right-sizing of the
organization structure that maximizes cost efficiency without sacrificing operational
and functional requirements.

2.0 In the present exercise, following factors have been taken into account for
ensuring Zero based manpower planning: -

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(i) Process Reengineering: Introduction of GST was a fundamental shift in the
indirect taxes administration. It has resulted in re-engineering and
reconfiguration of business processes to make the GST transition smoother
and to scale up the capacity of the department to deal with multi-fold
increase in the taxpayer base, without causing inconvenience to the trade &
industry. This process re-engineering and reconfiguration has resulted in
decreased compliance burden for trade and industry. It has considerably
reduced the paperwork, and decreased the need for the taxpayers to interact
with the indirect taxes officials. Similarly, in Customs, export and import
related departmental processes like those related to clearance of goods,
payment of duty, Authorized Economic Operator scheme, Single Window
clearance, etc. have been reengineered to simplify the procedures to facilitate
genuine trade.
(ii) Impact of Technology on functions: In line with Government’s Digital India
initiative, the Central Board of Indirect Taxes and Customs (CBIC) has
initiated a number of projects aimed at harnessing Information &
Communication Technology (ICT) in achieving the objectives of Customs,
Goods & Services Tax and Central Excise administration. These projects are

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of far reaching consequence and have altered in a fundamental way, the
manner in which the department delivers its services.
(iii) Impact of Statutory and Legal functions on manpower: Changes brought in
the indirect taxation legislations always impact the manpower requirements
of the department. To ensure smooth functioning of the department, it is
necessary to align the manpower requirements with the changes brought in
in the tax laws. This has become particularly important with the introduction
of GST, which has subsumed erstwhile Service Tax, and Central Excise levies
except on select goods.
(iv) Identification of Redundant grades: Changes introduced in the indirect taxes
administration may have resulted in making a few grades functionally
redundant in the department. Needless to say that such grades should be
identified and either abolished altogether or merged with other grades to
streamline the organizational structure. However, the emergence of new
functional necessities has brought in new functions where in the redundant
grades can be utilised and additional manpower added.

3.0 Indirect Taxes administration has undergone a major shift in the country
with the implementation of Goods & Services Tax with effect from 01st July, 2017.
Under the new indirect taxes regime, the officers of CBIC are authorized to collect
Goods & Services Tax for the Central Government as well as for the State
Governments and Union Territories. With the experience gained in implementation
of GST laws, it has become imperative to reexamine the existing organizational
structure and redesign it as per the present functional requirements of the
Department and also to meet the legitimate aspirations for upward movement of the
officers and staff of all grades. The proposed reorganization of the field formations in
the changed indirect taxes administration has been discussed in the preceding
chapter. Therefore, the proposals in this chapter are limited to restructuring of the
officers and staff cadres.

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3.1 Restructuring of IRS (C&CE)

3.1.1 Nomenclature: It is proposed to rename the Indian Revenue Service


(Customs & Central Excise) - IRS(C&CE) as Indian Revenue Service (Indirect Taxes
& Customs) - IRS(IC) in order to align it with the new Indirect Taxes administration.

3.1.2 Sanctioned Strength: Functional and operational changes ushered in the


processes of indirect taxes collection due to implementation of GST and exponential
increase in the number of taxpayers have substantially enhanced the requirements
of the Officers at Group A level, particularly at field level grades, viz. Junior
Administrative Grade, Senior Time Scale and Junior Time Scale. However,
substantial enhancement of strength at these levels within an Organized Group A
Service, howsoever justified it may be on the basis of functional requirements, may
not be possible, considering the guidelines contained in the Cadre Review of Group
‘A’ Central Services - A Monograph (2010). At the same time, the Department cannot
afford to sacrifice its bare-minimum manpower needs (assessed on the basis of the
functional requirements) without adversely impacting the functional efficiency and
efficacy of the Department. Therefore, it is proposed to do away with the promotion
quota at Junior Time Scale level (meant for Group B Gazetted Executive grades) of
Indian Revenue Service (C&CE), while carving out a service- independent of IRS
(C&CE) - not only for creation of required number of Group ‘A’ field posts, but also
for upward movement of Group B Executive Cadres.
There is a need to substantially enhance the number of Junior Administrative and
Non functional Selection Grades as the GST laws and procedures empower Officers
of these grades with many statutory functions. They are the highest adjudicating
authority under the GST Act. They have been provided with appellate powers and
advance ruling as well. They also have to play a role in GST Tribunals as the
Central GST Member.

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In view of the above the following Sanctioned strength is proposed in the IRS(C&CE)
Group A in CBIC:-

S.No. Grade Proposed SS Proposed SS


in Group A in IRS (C&CE)

1 Principal Chief 15 15
Commissioner
2 Chief Commissioner 40 40

3 Principal Commissioner 100 100

4 Commissioner 351 342

5 ADC

1089 982
6 JC

7 DC 1027 677

8 AC 3716 624

Total 6338 2780

3.2 Creation of IRS(IT&C) Branch B service:

3.2.1 Group ‘B’ Executive Officers in the Department have been facing acute
stagnation, as majority of direct recruit Inspector level officer get only one
functional promotion during their average service tenure of 33-35 years. Needless to
say that such a situation demoralizes the cutting edge level workforce (constituting
more than 50% of entire workforce under CBIC), which in turn has a bearing on the
revenue collection and anti-evasion efforts of the department. During the last Cadre

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Restructuring exercise in 2013-14, the Union Cabinet, on the recommendations of
the Cadre Review Committee (CRC), approved creation of 2118 temporary posts at
Junior Time Scale, with the condition that the Central Board of Excise & Customs
(now CBIC) will find out a lasting solution to the problem of stagnation in Group B
Executive grades. The CRC had further recommended that the Board should
identify the causes of such acute stagnation in Group ‘B’ feeder grades and ensure
that such situation does not recur in future by taking suitable and effective
measures.

3.2.2 Keeping in view the said directions of the Union Cabinet, the following options
were examined:
(i) Increase in the promotion quota from existing 50% of annual vacancies to
75% by reducing direct recruitment quota to 25% of annual vacancies at JTS
level. However, this option has not been found feasible, as it may be against
the attributes of an Organized Group ‘A’ Service provided in DoP&T Office
Memorandum I-11019/12/2008-CRD dated 20.1.2009.
(ii) Introduction of the scheme for grant of Non-functional Financial Upgradation
(instead of MACPS) for delay in promotion from Inspector/ Preventive Officer
/Examiner to Superintendent Central Excise / Superintendent Customs
(P)/Appraiser. A similar provision can be made for delay in promotion from
Executive Gazetted Group B to Group A. Such delay was proposed to be
computed in relation to grant of promotion at the comparable level -Assistant
Section Officer (ASO) in Central Secretariat Service (CSS) level. The ASOs are
also recruited, like Inspector grade officers in CBIC) through Combined
Graduate Level Examination of the Staff Selection Commission). In this
regard, a proposal was sent vide CBEC F. No. A-26017/84/2014-Ad.IIA to
Department of Expenditure and Seventh Central Pay Commission in 2014-15
for consideration. However, the same does not appear to have been
considered, as the said proposal does not find any mention- positive or
negative- in the 7th CPC Report.

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3.2.3 In the aforesaid background and in order to comply with the directions of the
Union Cabinet to find a workable solution to the problem of stagnation in the Group
B Executive grade, it is proposed to create a dedicated channel of promotions for
Group ‘B’ Executive grades, independent of IRS (IT&C), up to the grade of
Commissioner. The proposed dispensation will be on all India basis and will entail
all India transferability of the officers concerned. The structure of the proposed
channel may be considered to be kept as indicated ahead:-

S.No. Grade Proposed SS Proposed SS


in Group A in IRS(IT&C)
Branch B

1 Principal Chief 15 0
Commissioner
2 Chief Commissioner 40 0

3 Principal Commissioner 100 0

4 Commissioner 351 9

5 ADC
1089 27
6 JC 80

7 DC 1027 350

8 AC 3716 3092

Total 6338 3558

3.2.4 Creation of the aforesaid dedicated channel will not only provide a
permanent solution to the problem of acute stagnation in Group ‘B’ Executive, it
will also effectively cater to the functional needs of the department.

3.3 Merger of Pay Levels 8 And 9

3.3.1 As per the DoP&T Guidelines contained in the O.M. No. AB 14017/61/2008
(RR) dated 24.03.2009 and 12.03.2010, Inspector grade officers working in the Pay
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Level 7 (Pre-revised PB-2 GP Rs. 4600/-) are required to have minimum qualifying
service of 2 years for promotion to Group ‘B’ Gazetted Executive Grade
(Superintendent GST/ Superintendent Customs Preventive/ Appraiser) in Pay Level
8 (Pre-revised PB-2 GP Rs. 4800/-). An officer in Pay level 8 after 4 years is granted
a financial upgradation to Pay Level 9 (pre-revised PB-2 GP Rs. 4800- after 4 years
Rs. 5400). As per the existing Recruitment Rules of Inspectors, 90% of them are
direct recruits, who have to necessarily complete the probation of 2 years before
being regularized. Thus, as a result of DoP&T guidelines regarding minimum
qualifying service for promotion, a direct recruit Inspector becomes eligible for
promotion to the next higher grade on the same day of his completion of probation
and before acquiring any real time work experience. In order to rectify this
anomalous situation it is proposed to place all Group ‘B’ Gazetted Executive Officers
in Pay Level 9 (pre-revised PB-2 GP Rs. 5400). As a result, the minimum qualifying
service required to get promoted from Inspector grade to Superintendent grade
would become 3 years as per DoP&T Guidelines referred above. This would ensure
that the Inspector grade officers compulsorily gain one year of real time experience
after completion of probation and before becoming eligible for promotion to the
grade of Superintendent. Incidentally, it may be pertinent to mention that for
promotion from Examiner grade to Appraiser grade, the minimum qualifying service
has always been 3 years.

3.3.2 There is another anomalous situation wherein a Superintendent grade Officer


(Pay Level 8 - pre-revised PB-2 GP Rs. 4800) becomes eligible for promotion to the
next higher grade in Group A IRS (C&CE) Junior Time Scale (Pay Level 10 - pre-
revised PB-3 GP Rs. 5400) after two years of service in the grade. However the
Superintendent grade officer gets financial upgradation (Non functional scale) in the
same post (Pay Level 9 - pre-revised PB-2 GP Rs. 5400) only after 4 years of service
in the grade. Thus while the officer can get promoted to the entry level of Group A
viz. IRS(C&CE) in two years, the said officer gets a financial upgradation in the
same post only after four years and that too, to a lower Pay Level.

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3.3.3 As of now, around 85% of total sanctioned strength of Superintendents is
already working in Pay Level 9 and at any point of time at least two thirds of the
Superintendent grade officers will be in Pay Level 9. In this context, the judgment
of the Hon’ble Supreme Court in M. Subramaniam case may also be kept in view,
vide which Inspector grade officers (Pay Level 7) who have been granted Pay Level 8
under Modified Assured Career Progression Scheme should be granted financial
upgradation ( Non functional scale) in Pay Level 9 after they complete 4 years in
Level 8. This means that the financial upgradation to Pay Level 9 is also available to
the Inspector grade officers. Thus it may be possible that an officer is already
working in Pay Level 9 at the time of his promotion to the grade of Superintendent.

3.3.4 Thus, the proposed placement of Group ‘B’ Gazetted Executive Officers in Pay
Level 9 will rectify the two anomalous situations mentioned above. Moreover this
placement of Group ‘B’ Gazetted Executive Officers (Superintendent GST/
Superintendent Customs Preventive/ Appraiser) will not result in any substantial
financial implications for the exchequer.

3.4 Merger of three Group ‘B’ Executive streams:

3.4.1 At present, there are three Group ‘B’ Non-Gazetted Executive streams, viz.
Inspector of Central Excise, Preventive Officer of Customs and Examiner of
Customs, in the Department. At Group ‘B’ Executive Gazetted level also, there are
three streams, viz. Superintendent of Central Excise, Superintendent of Customs
(Preventive) and Appraiser of Customs. Officers working in these three streams are
further divided into localized cadres- 15 in case of Central Excise, 5 in case of
Customs (Preventive) and 3 in case of Appraising. The officers in all the three Group
‘B’ Executive Non-Gazetted grades are recruited through same competitive
examination - Combined Graduate Level Examination conducted by the Staff
Selection Commission. Promotion quota posts in these grades are filled up locally
by promotion from ministerial feeder grades of Executive Assistant and Tax

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Assistant. Though recruited through a common competitive examination, there are
huge inter-grade and inter-cadre cadre disparities in promotions to higher grades
from these Non-Gazetted grades. While the officers recruited as Examiner of
Customs, generally get promoted up to the level of Additional / Joint Commissioner,
the officers recruited in other two grades viz. Inspector of Central Excise and
Preventive Officer of Customs, though recruited through same examination of the
same year, lag far behind as the most of them superannuate as Superintendent of
Central Excise or Superintendent of Customs (Preventive) with barely 1-2% officers
getting second promotion as Assistant Commissioner at the far end of their average
service span of 33-35 years. There are intra-cadre cadre disparities as well due to
further fragmentation of grades into Zonal/ State cadres. For example, while the
Inspector Central Excise of the year 2012 have already been promoted as
Superintendent Central Excise in some cadres like Delhi, Inspectors of Central
Excise of 2002 of Shillong GST Zone are still stagnating in the same grade. Such a
situation creates an unhealthy and demoralizing work environment, reducing the
efficacy and efficiency of the Department as a whole.

3.4.2 In order to remove these zonal/ inter and intra cadre disparities, it is
proposed to merge all three cadres into one all India cadre at Group ‘B’ Gazetted
and Non-Gazetted levels prospectively. Following are the features of the proposal:-

i. With effect from the date of notification of the aforesaid proposal, all
recruitments/promotions in Group ‘B’ Executive Non-Gazetted grades shall be
merged into a unified executive cadre of ‘Indirect Taxes & Customs Officer’. The
promotions from this post shall be to another unified Group ‘B’ Gazetted
Executive post of ‘Superintendent of Indirect Taxes & Customs’. In other
words, it is proposed to merge all existing Group ‘B’ Gazetted grades
(Superintendent of Central Excise, Superintendent of Customs Preventive and
Appraiser) and ‘B’ Non-Gazetted Executive grades (Inspector of Central Taxes,
Preventive Officer and Examiner) in the Department prospectively w.e.f. the
date of approval of the proposal by the Government of India.

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ii. All India seniority lists of Group ‘B’ Gazetted and Non-Gazetted Executive
grades are proposed to be maintained.
iii. All promotions to the next higher grade shall be made on the basis of such all
India Seniority List as indicated in clause (ii) above.
iv. The officers in the Group ‘B’ Gazetted and Non-Gazetted Executive grades shall
have all India transfer liability.
v. The transfer liability shall be restricted to transfer on promotion, that too only
if promotion cannot be granted to an Officer due to unavailability of vacancy
in the promotion grade in the State where the promoted officer is working at
the time of his/her promotion. In such an eventuality, the Officers shall be
promoted and transferred to a nearby Zone as far as administratively possible
and shall be allowed the option of being transferred back to original state of
posting on first out first in basis.
vi. The inter-se seniority of existing incumbents of Group ‘B’ Gazetted and Non-
Gazetted Executive grades shall be fixed on the basis of the date of regular
promotion to the grade and DoP&T and other relevant guidelines for fixing
seniority.

3.5 Merger of Ministerial grades with Executive grades:

3.5.1 Merger of Chief Accounts Officer with Assistant Commissioner:

Over the years, it has been observed that the officers promoted to the Group ‘A’
post of Chief Accounts Officers refuse promotions because they generally get such
promotion only at the far end of their service- may be six months to one and half
years before superannuation. Consequently, the functions of the post of Chief
Accounts Officer are performed by Deputy/ Assistant Commissioners in most of
the field formations under CBIC. Accordingly, it is proposed to merge this grade
with the grade of Assistant Commissioner. However, officers working in the grade
of Chief Accounts Officer at the time of merger shall continue to perform the duties
and responsibilities of the post of Chief Accounts Officer till their superannuation.

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3.5.2 Merger of Administrative Officer with Superintendent grade:

It has been observed that most of the officers working in the grade of Executive
Assistant, which is the feeder grade for the grades of Administrative Officer and
Inspector grade posts, opt for promotion to the executive streams, viz. Inspector of
Central Taxes/ Preventive Officer/ Examiner, while refusing promotion to their
normal channel of promotion in ministerial grade, i.e. Administrative Officer. It is
generally observed that only such ministerial officers who do not fulfill the
essential physical qualifications prescribed for the grade of Inspectors take
promotion as Administrative Officer. This leads to the posts remaining vacant due
to lack of eligible candidates opting for this channel. Consequently, in most of the
field formations, the duties and responsibilities of the grade of Administrative
Officer are being performed by the officers working in the Group ‘B’ Gazetted
Executive grades. In this background, it is proposed to merge Group ‘B’ Gazetted
Ministerial posts of Administrative Officer with Group ‘B’ Gazetted Executive posts
with the following conditions:-
- For existing incumbents of the post of Administrative Officer, the merger shall
be treated as promotion.
- On merger such Administrative Officers will be placed en masse at the bottom
of the all India Seniority cum eligibility lists of Group ‘B’ Gazetted Executive
grades – All India Seniority list of Superintendent of Central Excise for the
Administrative Officers working in Central Excise cadres/ All India Seniority
list of Superintendent of Customs Preventive for the Administrative Officers
working in Customs cadres / Common Seniority List of all Directorates for
the grade of Superintendent for officers working in Directorates.
- Officers so promoted due to merger shall continue to perform the duties of the
posts of Administrative Officer for next three years. They will not be assigned
any field duties associated with Group ‘B’ Gazetted Executive grades during
the said period of 3 years.

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- During the period of three years, such officers shall be liable to successfully
complete at least 6 months training in administration of Indirect Taxation and
Customs. Officers who fail to successfully complete such training shall be
debarred from further promotions.

3.5.2 Additional Assistant Director Grade to become eligible for promotion to


IRS Group A :

There are two different Group B&C cadres in CBIC up to Pay level 9 – (i) Cadre of
the field formations and (ii) cadre of the Directorate. In the cadre of the field
formations direct recruitment is made in different grades up to the level of
Inspector Grade (Pay level 7). In the executive line, Superintendent grade (Pay level
8/9) is the highest in the hierarchy of Group B grade who then enter the Group A
service (Pay level10) and then become eligible to get promoted in further grades of
Group A. In the cadres of the Attached Offices viz. Directorates, direct recruitment
is made in different grades up to the level of Tax Assistant Grade (Pay level 4). The
Additional Assistant Director (Pay level 8/9) is the highest level in the executive
hierarchy. This cadre is not the feeder grade for promotion to JTS in Group A
executive grade of Assistant Commissioner. However, currently those opting for
the Ministerial line of promotion in the Directorate the hierarchy may reach up to
Group A post of Chief Accounts Officer (Pay Level 10). With the proposal to merge
Group ‘B’ Gazetted Ministerial posts of Administrative Officer with Group ‘B’
Gazetted Executive posts, the directorate staff cadre may be deprived of the
opportunity to enter Group A grade in Ministerial line also. Moreover presently the
eligibility service for promotion to all grades in both the field as well as Directorate
cadres are in line with the DoP&T guidelines. Hence it is proposed to make the
Additional Assistant Director grade, which is analogous to the post of
Superintendent in the field formations, also a feeder cadre to the grade of
Assistant Commissioner with the with the following conditions:-
- Seniority List of all Directorates for the grade of Superintendent for officers
working in Directorates will be prepared in DGPM.

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- This Seniority List will be integrated with the All India Seniority List of
Superintendents of Central Excise based on the principles and guidelines of
Seniority issued by DoP&T, as is done in the case of Superintendent /
intelligence Officer grade in Central Bureau of Narcotics.

3.6 Identification and abolition of redundant grades:

3.6.1 The following grades in the cadre have been identified to be abolished:

(i) Lady Searcher: The Sanctioned Strength in the grade of Lady Searcher is 12
against which only 2 officers are presently working. The relevance of this post has
been almost nullified after increase in entry of female officers in Group B and C
grades in CBIC. Hence these posts carrying a Pay level 4 is proposed to be
abolished.

(ii) Assistant Programmer: The Sanctioned Strength in the grade of Assistant


Programmer is 5 against which 3 officers are working. These posts were in the
erstwhile Data Entry Operator cadre in CBEC. With present recruitment of SSC
making computer skills as an essential qualification, the need for these posts have
greatly diminished. Hence these posts in the Pay Level 6 is proposed to be
abolished.

(iii) ASI (Weapons): In earlier set up, the department used to have forearms and ASI
(Weapons) was supposed to be in charge of the weapons. The sanctioned strength in
the grade of ASI (Weapons) is 52. Though these are 100% promotion posts it is seen
that since Cadre Restructuring 2013, vacancy positions in this grade continue to be
largely unfilled. Since the relevance has gradually decreased, it is proposed to
abolish these posts having Pay Level 3.

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3.6.2 The reduction in number of posts in the above three grades will be effective
after the existing incumbents of the posts are promoted to the next higher level or
the posts fall vacant on account of superannuation etc.

3.7 Creation of specialized grades for handling of Customs Canine Unit:

3.7.1 ASI (Dog Handler)

The CBIC has at its disposal the services of 17 dogs in the various Customs
formations. These dogs are handled by 22 dog handlers, while the Sanctioned
strength of ASI (Dog Handlers) (Pay Level 2) is only 5. In order to meet the
Economic, National Security and Environmental/Narcotics crime threats as well as
for the efficient and effective discharge of Customs work, it is proposed to increase
the Sanctioned strength of ASI (Dog Handlers) from 5 to 57. The 52 posts of ASI
(Weapons) being proposed for abolition would be utilized for creation of these posts.
These posts can be proposed to be filled up by officers who have the essential as
well as the desired qualifications (i) by promotion from the grade of Havaldar/MTS
and (ii) by deputation from Central Police/Para military forces etc.

3.7.2 Sub Inspector (Dog Handler):

In order to supervise the functioning of the Canine units and the working of the Dog
Handlers it is essential to have dedicated posts for this purpose. This would also
provide a promotional avenue to the ASI (Dog Handler). It is proposed to have 12
posts of Sub Inspector (Dog Handler) at Pay Level 4. The 12 posts of Lady Searcher
being proposed for abolition would be utilized for creation of these posts. The Sub
Inspector (Dog Handlers) will be eligible for promotion to the grade of Inspector in
the Directorate cadre of CBIC as per the DoP&T guidelines for promotion.

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3.8 Rationalisation of Ratios:

3.8.1 In the present exercise of cadre review, staffing norms for the various
formations have been worked out taking into consideration the following guidelines
of DoP&T:
(i) Functional cum structural considerations
(ii) Duties and responsibilities entrusted to the posts
(iii) Need to promote efficiency in the organization/Department
(iv) Ratio of the promotion cadre to the feeder cadre.

3.8.2 Ministerial grades: In order to rationalize the organizational structure, it is


proposed to merge the ministerial grades of Chief Accounts Officer and
Administrative Officer with those in the grades of Assistant Commissioner and
Superintendent respectively. The detailed proposal is discussed in preceding paras.
This proposal will not only streamline the organization structure, it will also open
up better promotional avenues for ministerial grades.

3.8.3 Havaldars and Multi-tasking Staff: At present Havaldars and Multi-tasking


Staff have two promotion channels- one to the grade of Lower Division Clerk and
the other to the posts of Head Havaldar. However, there is no further promotion
from the grade of Head Havaldar, while from the grade of Lower Division Clerk,
channel for further promotions exist. It is proposed to provide further channels of
promotion to Head Havaldars by making them as one of the feeder cadres for Tax
Assistant. Head Havaldars posted in Directorates will also have an additional
option of becoming the feeder cadre for ASI (Dog Handler).

3.8.4 DoP&T guidelines for framing and amendment of Recruitment Rules issued
vide Office Memorandum dated 31.12.2010 stipulate that where promotion is kept
as method of recruitment, normally the number of posts in feeder grade should be
three to five times the number of sanctioned posts in the promotional grade.
Presently the ratio of promotional grade to feeder grade is below the stipulated

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ratios in few of the grades where promotion is the only mode of recruitment
(Annexure K). DoP&T has advised that remedial measures need to be taken in cadre
reviews that are undertaken in the future. Accordingly, though it may not be
possible to bring in the desired ratios in a single cadre restructuring, as a signal
towards movement in this direction, it is proposed to gradually improve the existing
ratios in case of different grades and their respective feeder grades. (Annexures L1
and L2). The rationalization of ratios of strengths between promotion posts and
feeder posts are proposed to be as follows:-

*PC:FC Ratio
Existing Proposed
S.
Grade (based on
No.
proposed
Strength)
1 LDC:MTS 1:2.72 1 : 3.09
2 LDC: Havaldar 1:5.16 1 : 2.32
3 Tax Assistant: Head Havaldar - 1 : 3.38
4 TA:LDC 1:3.1 1 : 2.49
5 Executive Assistant: Tax Assistant 1:2.13 1 : 3.24
6 Inspector: Executive Assistant 1:2.03 1 : 2.63
7 Superintendent: Inspector 1:1.33 1 : 1.46
8 Asst. Commissioner: Superintendent 1:30.67 1 : 6.41
*Promoted Cadre: Feeder Cadre

****

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Chapter 9

Strengthening of Prosecution Machinery

Both Customs and Central Excise Acts provide for launch of prosecution in specified
offences. GST Act 2017 also provides for prosecution of tax evaders in certain cases. It
entails commencement of criminal proceedings in a court of law against companies and
persons for evasion of duties and/or contraventions of the Acts. Comptroller & Auditor
General in its Report No. 29 of 2014 (Performance Audit) has recommended that the
Ministry should ensure that all long‐pending prosecution cases are reviewed at periodic
intervals. In order to do so, the Board may strengthen its monitoring mechanism by
deploying specially trained group of personnel to handle issues relating to prosecution
cases and courts, to have an efficient monitoring over its cases and its revenue. The
Board vide Circular number 27/2015- Customs dated 23.10.2015 issued from F. No.
394/68/2013- Cus.(AS) had also issued directions to create a Prosecution Cell in DGRI
(Headquarters) and each of its Zonal Units to supervise the prosecution work relating to
the cases pertaining to the headquarters and zonal units respectively. The functions of
the Prosecution Cell include:

1) Examination of all the investigation report and the relied upon documents (RUD) /
evidences thoroughly in order to ascertain the definite involvement of different
people/ executives/ directors / officials before sanctioning prosecution;
2) Timely filing of complaint along with all the exhibits before the court and
monitoring the court proceedings;
3) Assigning the case to Special Public Prosecutor/ Public Prosecutors;
4) Ensure regular hearings and attendance of the witnesses during hearings;
5) Ensure presentation of the case exhibits (Case Property) before the Court,
whenever required.

1.2 Pursuant to the directions of the Hon’ble Supreme Court, the High Court of Delhi
had convened a meeting in July, 2019 to review the pendency of prosecution cases
pertaining to the Directorate General of Revenue Intelligence (DGRI) before the

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subordinate courts in Delhi, wherein it was observed that there were cases that have
been pending for more than 30 years. It was also observed that similar situation may be
in existence in the courts located in other parts of the country as well. Accordingly, the
High Court has directed that the department should ensure completion of trial in a time
bound manner by deputing a dedicated set of officers to attend to the pending
prosecution cases.

2.1 Even though the aforesaid meeting was held in respect of the DGRI, this would
equally be applicable to pending cases of the erstwhile Directorate General of Central
Excise Intelligence-now Directorate General of GST Intelligence (DGGI)-as there is
considerable pendency of prosecution cases of DGGI also. Besides the sizeable legacy
cases of Central Excise and Service Tax, certain goods still continue to attract Central
Excise duty.

2.2 During last three years, the DGRI has booked 1849 cases of outright smuggling
and 2452 cases of Commercial fraud wherein the prosecution has been initiated / is
being considered to be initiated. Similarly, DGGI has booked number of cases of Central
Excise and Service Tax evasion during last three years wherein prosecution proceedings
have been launched / are being considered to be initiated. Moreover large number of
prosecution cases may likely be initiated in GST also. The following table gives a
snapshot of prosecution proceedings initiated / sanctioned during last three years by
DGRI and DGGI:-
As on 01.04.2018

Prosecution Initiated Prosecution Sanctioned


Number Number
Sl. Number Number Number Number
Formation of of
No. of cases of firms of cases of firms
Persons Persons
pending involved pending involved
involved involved
2016-17
Customs
1 DGRI
159 160 0 40 44 0
Central Excise
14 112 - 28 159 -
2 DGGI
Service Tax
7 9 - 7 13 -
2017-18
Customs
1 DGRI
214 249 2 193 285 3
Central Excise
14 95 - 19 127 -
2 DGGI
Service Tax
3 5 - 13 20 -

92 | P a g e
2018-19
Customs
1 DGRI
276 420 2 164 213 5
Central Excise
3 10 - 25 124 -
2 DGGI
Service Tax
2 1 - 11 12 -
Total
Customs
1 DGRI
649 829 4 397 542 8
Central Excise
31 217 0 72 410 0
2 DGGI
Service Tax
12 15 0 31 45 0
Source: DDM Portal

3.1 In addition to the above laws, DGRI has also been making cases under various
other statutes including NDPS Act, Wildlife Protection Act, Antiquities and Art Treasures
Act etc. Thus, it is clear that there is a need to put in a suitable mechanism for follow up
and monitoring of the prosecution cases and ensure completion of trial in a time bound
manner.

3.2 In view of the aforesaid, it is proposed to create prosecution cells at the


headquarters and Zonal Units of DGRI and DGGI along with same lines as those
presently functioning in the Enforcement Directorate (ED) and Central Bureau of
Investigation (CBI)- to monitor the progress of prosecution cases filed by them before
various courts of law. In ED and CBI, the posts in Prosecution Wing are filled up through
lateral entry / deputation / promotion from suitably qualified officers in the lower
grades. Accordingly, the prosecution cells in DGRI and DGGI are proposed to be manned
by appointment of the officers having legal educational qualifications/ background
through lateral entry / deputation / promotion from suitably qualified officers in the
lower grades. The prosecution cells are proposed to be created at DGRI (Hqrs.) and DGGI
(Hqrs.) and their respective Zonal Units / Sub-national Units located at Mumbai, Delhi,
Kolkata & Chennai.

Following is the normative staff strength for prosecution cells at headquarters and one
zonal unit:-

93 | P a g e
Proposed Normative Strength
Sl. Headquar DRI ZUs (Pr.
Grade Qualification required
No. ters ADG) / DGGI Zonal Units
SNU (DGGI)
(i)Graduate in Law ;
(ii)14 years experience at
Bar in dealing with Indirect
Taxes & Customs cases
(3 years Contract,
extendable by 2 years –
one year a time) (for initial
period of 10 years from the
date of creation of the
Prosecution Cell)@
Additional
1 Director Or, 1 - -
(Pay Level 13) Central Government
Officers working at Pay
Level 13 and having
relevant experience and
having the a graduate
degree in Law (Deputation)
Or,
Departmental Officers with
5 years experience as Joint
Director in Prosecution
Cell (Promotion)
(i)Graduate in Law ;
(ii) 8 years experience at
Bar in dealing with Indirect
Taxes & Customs cases
(3 years Contract,
extendable by 2 years –
one year a a time) (for
initial period of 10 years
from the date of creation of
the Prosecution Cell) @
Joint Director
2 Or, - 1
(Pay Level 12)
Central Government
Officers working at Pay
Level 12 and having
relevant experience and
having a graduate degree
in Law (Deputation)
Or,
Departmental Officers with
5 years experience as Dy.
Director in Prosecution Cell
(Promotion)
(i)Graduate in Law ;
(ii) 4 years experience at
Bar in dealing with Indirect
Taxes & Customs cases
(3 years Contract,
extendable by 2 years –
Dy. Director one year a a time) (for
3 2 2 -
(Pay Level 11)
initial period of 10 years
from the date of creation of
the Prosecution Cell) @

Or,
Central Government

94 | P a g e
Officers working at Pay
Level 11 and having
relevant experience and
having a graduate degree
in Law (Deputation)
Or,
Departmental Officers with
4 years experience as Asst.
Director in Prosecution
Cell (Promotion)
(i)Graduate in Law ;
(ii)3 years experience at
Bar in dealing with Indirect
Taxes & Customs cases
(3 years Contract,
extendable by 2 years –
one year a a time) (for
initial period of 10 years
from the date of creation of
the Prosecution Cell) @
Assistant Director Or,
4 2 1 1
(Pay Level 10) Departmental Officers
working at Pay Level 10
and having relevant
experience and having a
graduate degree in Law
(Deputation)
Or,
Departmental Officers
having a graduate degree
in Law with 2 years
experience
(Deputation/Absorption)
@ Consolidated Remuneration per month:
Addl. Director: Rs. 1,50,000/-
Joint Director: Rs. 1,00,000/-
Dy. Director: Rs. 80,000/-
Asst. Director: Rs. 65,000/-

3.3 Following table indicates the total requirement of strength in different


grades for the proposed prosecution cells:-

DGRI DGGI
Zonal
Sl. Pay Units Zonal Sub- Zonal
Grade Total
No. Level Hqrs (Pr. Units Hqrs. national Units
ADG) (12) Units (4) (26)
(4)

Additional
1 L-13 1 - - 1 - - 2
Director

2 Joint Director L-12 - 4 - - 4 - 8

95 | P a g e
DGRI DGGI
Zonal
Sl. Pay Units Zonal Sub- Zonal
Grade Total
No. Level Hqrs (Pr. Units Hqrs. national Units
ADG) (12) Units (4) (26)
(4)

3 Dy. Director L-11 2 4 - 2 4 - 12

4 Asst. Director L-10 2 - 12 2 - 26 42

3.4 The financial implication of the proposal would work out to about Rs.
5.79 crore per annum (Approx.).

****

96 | P a g e
Chapter 10

Staffing norms
and
Requirement of Staff Stre
ength

Human Resource Planning consists of putting right number and right kind of
people at the right place, right time, doing the right things for which they are
suited for the achievement of objectives of the organization, in the present case
the CBIC. Therefore, the Human Resource Planning has to be carried out after
assessing the staff requirements
requiremen of different
fferent participating units of the
Department. Accordingly, staffing norms for different types of units have to be
arrived at by closely analysing the tasks performed by these units.

2.1 Staffing Norms and standards refer to the minimum and appr
appropriate mix of
human resources required at the different levels to achieve the following
departmental objectives::-

i. Increase in effectiveness and productivity of the manpower


manpower;
ii. Increase in revenue collection;
iii. Improvement in delivery of services to the taxpayers;
iv. Improved career prospects at all levels;
v. Optimum utilization of information technology; and
vi. Standardization of work norms.
norms

2.2 The
he aforementioned objectives are sought to be achieved in the present
exercise of cadre restructuring and reorganisation by the Central Board of
Indirect Taxes & Customs (CBIC) through a multi-pronged
pronged strategy for:

97 | P a g e
a. Betterment of operational efficiency and efficacy of the department in
different areas of functioning;
b. Improvement in compliance management processes with the objective
of maximisation of revenue collection by improving the service delivery
to taxpayers;
c. Rationalisation of the span of control for better supervision, control and
management of workload;
d. Re-orientation and redeployment of the workforce with appropriate
incentives in the form of career advancement.

3.0 Keeping in view, the aforesaid objectives and fundamental shift in indirect
taxes administration as well as consequent increase in the workload, the
staffing norms for main-stream grades for different formations, viz. CGST Zones
& Taxpayer Services Commissionerates, ACGST Audit Zone &
Commissionerates, Appeal Commissionerates, Customs Zones and
Commissionerates etc. have been worked out and detailed below. In case of a
few other grades the following have been the guiding principles for working out
the required strength:-

(i) Rajbhasha grades: While working out the requirements of strength in


various Rajbhasha posts, the norms for attached and subordinate offices
of the Government of India, provided in Office Memorandum No.
13035/3/95 Ra. Bha. Dated 22.07.200, have been kept in view and it has
been ensured that each of the attached office and subordinate office of the
CBIC is provided with Raj Bhasha staff.

(ii) Stenographer: The requirement of strength at different levels of


Stenographer has been worked out in terms of the DoP&T guidelines
provided in the Office Memorandum No.35034/4/97Estt(D) dated
11.04.2001, according to which the strength of Senior Private Secretary
and Private Secretary should correspond with the strength in the HAG
and above grades and SAG respectively. In case the lower grades, the
proposed strength at Stenographer-I is equal to the strength proposed at

98 | P a g e
JAG and JAG (NFSG) levels. The same at Stenographer-II, the proposed
strength is half of the total proposed strength at STS & JTS levels.

(iii) Drivers: For last a decade and half, there have been exhaustive
restrictions for purchase of vehicles by the Government departments.
Various departments of the Government of India used to outsource their
requirements of staff cars and operational vehicles. Consequently, there
has not been any recruitment/ appointment to the grade of Driver in the
field formations under the Board. In fact, a large number of vacant posts
in different grades of drivers were abolished in the last cadre
restructuring. The aforesaid restrictions have recently been lifted by the
Government, vide the Department of Expenditure, Government of India,
Office Memorandum F. No. 7(1)/E. Coord./2019 dated 17th September,
2019. After the aforesaid change in policy, the field formations will be
required to do away with the out-sourced vehicles and purchase vehicle as
per the functional needs. The strength in the different grades of drivers in
the department has to be directly proportionate to the number of
Government owned vehicles. Normatively, the field formations located
across the country will require around 5000 vehicles. However, purchase
of such large number of vehicles may take place only in a phased manner.
Therefore, it is proposed to meet only half of the actual requirement of
drivers in the current restructuring exercise.

A. Goods & Services Formations:

i. Taxpayer Services Commissionerate:

Formations/Sub-formations
Sl.
Grade
No.
CCO Commissionerat Division Range
e (Hqrs.)
Pr. Chief
1 Commissioner/ Chief 1 0 0 0
Commissioner
Pr. Commissioner/
2 0 1 0 0
Commissioner

99 | P a g e
Addl./ Jt.
3 2 3 0 0
Commissioner
Dy. /Asst.
4 3 7 1 0
Commissioner
Superintendent
5 5 20 5 1
(Indirect Taxes)
Inspector (Indirect
6 6 25 8 1/2/3
Taxes)
7 Executive Assistant 2 4 2 1
8 Tax Assistant 4 10 4 1
Lower Division Clerk
9 2 10 2 0
Head Havaldar
10 3 6 1 0
Havaldar
11 5 8 2 1
Multi Tasking Staff
12 2 5 1 0

- Considering the voluminous increase in number of GST Taxpayers, it is


proposed to strengthen the field formations at the grass-root level, i.e.
Ranges, by providing manpower on the basis of the number of taxpayers
under its jurisdiction and consequent workload. It is also proposed to
provide ministerial (Executive Assistant) and support staff (Havaldar) to
Ranges. So far only one post of Inspector is allocated to a Range, and no
ministerial or support staff has been provided.
- Proposed normative staff strength in the Commissionerate headquarters
includes the manpower for Preventive and E-way Bill squad.

ii. Audit and Appeal Commissionerates:

Appeal
Sl. Audit Commissionerate
Grade Commissionerate
No.
Headquarters Circle Headquarters

1 Chief Commissioner 0 0 0

2 Commissioner 1 0 1
Addl./ Jt.
3 2 0 2
Commissioner
Dy. /Asst.
4 3 1 4
Commissioner

100 | P a g e
Superintendent
5 (Indirect Taxes & 4 7 6
Customs)
Inspector
6 (Indirect Taxes & 5 8 6
Customs)

7 Executive Assistant 3 8 2

8 Tax Assistant 4 2 4

9 Lower Division Clerk 2 1 4

10 Head Havaldar 2 1 4

11 Havaldar 3 1 5

12 Multi Tasking Staff 1 1 1

B. Customs:

i. Assessment and Trade Facilitation Commissionerates:

Formations/Sub-formations

Commissionerate
Commissionerate Other Functions
Sl.
Grade Assessment (Airport, Anti-smuggling
No.
etc.)
Commission
Commission
CCO CCO erate
erate
Pr. Chief
1 Commissioner/ Chief 1 0 1 0
Commissioner
Pr. Commissioner/
2 0 1 0 1
Commissioner
3
Addl./ Jt.
3 2 3 2
Commissioner
Dy. /Asst.
4 3 24 3 33
Commissioner

101 | P a g e
Formations/Sub-formations

Commissionerate
Sl. Commissionerate Other Functions
Grade
No. Assessment (Airport, Anti-smuggling
etc.)
Commission Commission
CCO CCO
erate erate
Superintendent
5 (Indirect Taxes & 5 110 5 135
Customs)
Inspector
6 (Indirect Taxes & 6 180 6 240
Customs)

7 Executive Assistant 2 40 2 40

8 Tax Assistant 8 60 8 60

9 Lower Division Clerk 2 25 2 25

10 Head Havaldar 3 40 3 50

11 Havaldar 5 60 5 75

12 Multi Tasking Staff 2 20 2 20

ii. Audit and Appeal Commissionerates:

Appeal
Audit
Sl.
Grade
No.
Commissio
Commissio
CCO CCO nerate
nerate
0
1 Chief Commissioner 1 0 1
1
2 Commissioner 0 1 0
Addl./ Jt.
3 1 2 1 0
Commissioner

Dy. /Asst.
4 3 12 2 2
Commissioner

102 | P a g e
Audit Appeal
Sl.
Grade
No.
Commissio Commissio
CCO CCO
nerate nerate
Superintendent
5 (Indirect Taxes & 3 45 2 3
Customs)
Inspector
6 (Indirect Taxes & 4 60 2 4
Customs)

7 Executive Assistant 2 20 1 4

8 Tax Assistant 4 8 2 4

9 Lower Division Clerk 2 4 2 4

10 Head Havaldar 2 3 1 1

11 Havaldar 1 3 1 1

12 Multi Tasking Staff 1 2 1 1

C. Directorates General:

All the Directorates General are the attached offices under the CBIC each one of
them having a specialized function. These Directorates function as repository of
information/data related to their respective functional domains and assist the
CBIC in formulation of policies. Hence, the staffing requirements of all the
Directorates are different from each other, and consequently their staffing
cannot be normative.

4.0 Requirement of Manpower:

On the basis of the Staffing Norms discussed above, the total staff strength at
different levels of mainstream organizational hierarchy and Directorate has been
assessed at 114315 – an increase by 29451 posts. Following table indicates the
grade-wise and wing-wise distribution of the proposed staff strength:-

103 | P a g e
Existing Proposed
Sanctioned Additional
Total
Designation Strength Designation GST Customs Directorates Posts
(a) (b) (b)-(a)
Principal Chief
Commissioner
Principal Chief
14 of Central 7 2 6 15 1
Commissioner
Taxes &
Customs
Chief
Commissioner
Chief
37 of Central 14 14 12 40 3
Commissioner
Taxes &
Customs
Principal
Commissioner
Principal
98 of Central 30 20 50 100 2
Commissioner
Taxes &
Customs
Commissioner
of Central
Commissioner 335 Taxes & 173 57 121 351 16
Customs

Addl/ Joint
Commissioner
Addl./ Joint
932 of Central 554 212 323 1089 157
Commissioner
Taxes &
Customs
2047 (801 Dy./ Assistant
Commissioner 4743
Dy./ Assistant DC/1246 AC
(1027
Regular) of Central 2243 1611 889 578
Commissioner + (2118 AC
DC/3716
Taxes & AC)
temporary) Customs
Superintendent
Superintendent
of Central
of Central 15526 12830 3022 986 16838 1312
Taxes &
Excise
Customs
Superintendent Superintendent
of Customs 2388 of Customs 2580 2388 192
(Preventive) (Preventive)
Appraiser of
Appraiser of
1194 Customs 1290 1194 96
Customs

Inspector of Inspector of
20638 17394 5986 1945 25325 4687
Central Excise Central Taxes

Preventive Preventive
Officer of 2970 Officer of 3582 3582 612
Customs Customs

104 | P a g e
Existing Proposed
Sanctioned Additional
Total
Strength Posts
Designation Designation GST Customs Directorates
(a) (b) (b)-(a)

Examiner of Examiner of
1595 1798 1798 203
Customs Customs

Chief Accounts
349 - - - - -
Officer 0

Administrative
1600 - - - - - 0
Officer

Dy./ Assistant Dy./ Assistant


79 21 16 42 79 0
Director (OL) Director (OL)

Senior/ Junior Senior/ Junior


237 176 86 84 346 109
Translator Translator

Senior Private Senior Private


152 51 38 66 155 3
Secretary Secretary

Private Private
340 173 57 121 351 11
Secretary Secretary

Stenographer-I 932 Stenographer-I 554 212 323 1089 157

Steno-II 801 Steno-II 1122 669 263 2054 1253

Executive Executive
4850 8853 2467 437 11757 6907
Assistant Assistant

Tax Assistant 6432 Tax Assistant 9175 3592 1031 13854 7422

Lower Division
Lower Division
Clerk 1917 3260 1516 244 5020 3103
Clerk

105 | P a g e
Existing Proposed
Sanctioned Additional
Total
Designation Strength Designation GST Customs Directorates Posts
(a) (b) (b)-(a)

Driver Special Driver Special


86 63 39 34 136 50
Grade Grade

951 560
Driver Grade-I 392 Driver Grade-I 439 275 237

427 Driver Grade-II 377 236 204 816 389


Driver Grade-II

Driver Grade-
Driver Grade-III 480 377 236 204 816 389
III

Head Havaldar 6500 Head Havaldar 4074 2425 182 6681 181

Havaldar 8690 Havaldar 5193 3663 406 9262 572

MTS 634 MTS 1767 1178 181 3126 2492

Assistant
5 - - - - 0 -5
Programmer

Lady Searcher 12 - - - - 0 -12

Asst. Sub-
inspector 52 - - - - 0 -52
(Weapons)
Sub-inspector
- - (Dog Handler) - - 12 12 12

Asst. Sub.
Asst. Sub.
Inspector
Inspector (Dog 5 - - 57 57 52
(Dog Handler)
Handler)

Total 84864 Total 68978 36877 8460 114315 29451

106 | P a g e
After approval of the aforesaid proposal, the share of the manpower of the three
wings will be as indicated below:-

Percentage-wise the share in total manpower works out as shown below:

107 | P a g e
5.0 Expenditure Involved:

The aforementioned proposal will incur additional expenditure of Rs.92.48


crore per month, as indicated below:
Rupees in crore

Existing Expenditure Proposed Expenditure Additional Expenditure

Per Month Per Annum Per Month Per Annum Per Month Per Annum

345.82 4150 438.30 5260 92.48 1110

Detailed worksheet in this regard is provided in the Annexure M.

****

108 | P a g e
ANNEXURE – A

109 | P a g e
ANNEXURE –B 1

TOTAL GST TAXPAYERS /REVENUE UNDER CBIC (ZONE WISE)


Sl.
2017-18 2018-19
ZONE No. of Revenue No. of Revenue
No.
Taxpayers (cr) Taxpayers (cr)
1 Chandigarh 180661 7596.45 172983 11071.31
2 Delhi 231672 11289.28 259972 15664.79
3 Panchkula 145390 14773.69 154207 20825.93
4 Lucknow 302636 7987.6 337290 12414.46
5 Meerut 203371 16995.89 223475 23401.57
6 Hyderabad 135472 12496.42 140455 18527.62
7 Vizag 132319 9267.04 144240 14096.36
8 Bengaluru 237943 25602.42 264973 38382
9 Thiruvananthapuram 86253 5414.01 96958 7760.45
10 Chennai 308585 25506.12 344194 34655.82
11 Ranchi 179302 9746.29 194512 15212.97
12 Kolkata 233900 11572.29 246617 17085.81
13 Bhubaneswar 83561 3487.77 91595 8312.58
14 Jaipur 210636 9822.45 231451 13767.47
15 Ahmedabad 179263 15572.72 187340 20290.3
16 Vadodara 162739 7657.66 165025 13720.24
17 Mumbai 255037 35603.36 281845 52898.26
18 Pune 147481 11808.85 155103 17014.49
19 Bhopal 184303 14201.86 197633 23163.28
20 Nagpur 131751 8930.57 135793 12040.68
21 Guwahati 98380 3280.43 107240 4934.75
Grand Total 3830655 268613.17 4132901 395241.14

110 | P a g e
ANNEXURE –B 2

TOTAL GST TAXPAYERS/ REVENUE IN CBIC (STATE/UNION TERRITORY WISE)


2017-18 2018-19
Sl.
No. No. of No. of
State /UT taxpayers Revenue (cr) taxpayers Revenue (cr)
1 Chandigarh UT 9849 618.53 11514 814.12
2 Himachal Pradesh 30132 2704.45 32985 3656.49
3 Punjab 114270 3977.23 122988 5522.3
4 J & K /Ladakh 26410 296.24 5496 1078.4
5 Delhi 231672 11289.28 259972 15664.79
6 Haryana 145390 14773.69 154207 20825.93
7 Uttar Pradesh 455291 20070.34 506486 29217.48
8 Uttaranchal 50716 4913.15 54279 6598.55
9 Telangana 135472 12496.42 140455 18527.62
10 Andhra Pradesh 132319 9267.04 144240 14096.36
11 Karnataka 237943 25602.42 264973 38382
12 Kerala 86253 5414.01 96958 7760.45
13 Tamil Nadu 301368 24997.36 336449 34058.11
14 Pondicherry 7217 508.76 7745 597.71
15 Bihar 124319 3674.25 134891 5827.43
16 Jharkhand 54983 6072.04 59621 9385.54
17 West Bengal 233900 11572.29 246617 17085.81
18 Odisha 83561 3487.77 91595 8312.58
19 Rajasthan 210636 9822.45 231451 13767.47
20 Gujarat 336582 22462.12 347478 32910.31

21 Dadar &Nagar Havelli 5420 768.26 4887 1100.23


and Daman & Diu
22 Maharashtra 386788 44533.93 417638 64938.94
23 Pune 136095 10306.81 144229 15198.3
24 Goa 11386 1502.04 10874 1816.19
25 Madhya Pradesh 135906 9499.96 147927 14212.84
26 Chattisgarh 48397 4701.9 49706 8950.44
27 Meghalaya 52988 2508.55 57171 3575.72
28 Arunachal Pradesh 4916 83.39 5559 134.51
29 Manipur 4828 49.55 5148 86.49
30 Mizoram 1779 26.46 1893 65.2
31 Nagaland 3054 24.94 3103 61.27
32 Tripura 7994 122.32 9936 220.1
33 Assam 22821 465.22 24430 791.46
Grand Total 3830655 268613.17 4132901 395241.14

111 | P a g e
ANNEXURE –B 3

TOTAL GST TAXPAYERS /REVENUE IN CBIC (COMMISSIONERATE WISE)


2017-18 2018-19
Sl. No. Commissionerate
No. of No. of
Revenue (cr) Revenue (cr)
Taxpayers Taxpayers
1 Chandigarh 9849 618.53 11514 814.12
2 Shimla 30132 2704.45 32985 3656.49
3 Jalandhar 37410 798.78 39988 1376.24
4 Ludhiana 76860 3178.45 83000 4146.06
5 Jammu 26410 296.24 5496 1078.40
6 Delhi East 71410 2634.98 78148 3851.48
7 Delhi South 46516 5416.81 52985 7617.33
8 Delhi North 54567 1566.11 59733 2054.19
9 Delhi West 59179 1671.38 69106 2141.79
10 Gurugram 33811 9322.71 36051 13589.07
11 Faridabad 33782 2286.31 37062 3017.81
12 Rohtak 35502 1737.71 39043 2357.13
13 Panchkula 42295 1426.96 42051 1861.92
14 Lucknow 68029 2924.74 76322 4483.50
15 Allahabad 56041 840.50 62545 1476.18
16 Kanpur 46437 1948.41 50984 3024.46
17 Agra 52745 711.41 58144 1091.90
18 Varanasi 79384 1562.54 89295 2338.42
19 Meerut 61022 5499.95 66706 7178.30
20 Noida 24294 3066.22 27410 4490.86
Gautam Buddh
21 37460 1348.32 40881 2390.86
Nagar
22 Ghazaiabad 29879 2168.25 34199 2743.00
23 Dehradun 50716 4913.15 54279 6598.55
24 Hyderabad 32081 5232.96 32751 4824.44
25 Secunderabad 25065 3260.84 24798 4776.14
26 Medchal 46449 2387.23 48711 3532.40
27 Rangareddy 31877 1615.39 34195 5394.64
28 Vizag 34765 3935.78 38632 5990.39
29 Tirupati 39469 2016.36 43529 3514.25

112 | P a g e
2017-18 2018-19
Commissionerate
Sl. No. No. of No. of
Revenue (cr) Revenue (cr)
Taxpayers Taxpayers
30 Guntur 58085 3314.90 62079 4591.72
31 Bengaluru East 29176 3984.93 31743 6091.03
32 Bengaluru West 30790 4704.35 34481 6838.64
Bengaluru North
33 30463 1619.34 34296 2028.93
West
34 Bengaluru North 25904 4128.63 30150 5497.51
35 Bengaluru South 32301 4193.74 36312 5969.64
36 Mysuru 26347 827.17 28107 1091.41
37 Mangalore 14421 1465.89 15654 2124.15
38 Belgavi 48541 4678.37 54230 8740.69
39 Kochi 30688 3334.39 33824 4170.45
40 Calicut 28453 762.32 32694 1075.69
41 Thiruvananthapuram 27112 1317.30 30440 2514.31
42 Chennai North 45309 9629.26 49903 12852.57
43 Chennai South 24413 3595.80 27546 5322.53
44 Chenna Outer 52538 6117.67 60226 8405.53
45 Coimbatore 51648 1266.57 56164 1799.64
46 Salem 45984 1541.95 52303 2235.51
47 Trichy 30189 1614.87 33889 1818.91
48 Madurai 51287 1231.24 56418 1623.42
49 Pondicherry 7217 508.76 7745 597.71
50 Patna I 58040 3349.23 65152 5176.51
51 Patna II 66279 325.02 69739 650.92
52 Ranchi 44414 2588.69 48435 4194.94
53 Jamshedpur 10569 3483.35 11186 5190.60
54 Kolkata North 72352 3998.81 73593 5560.48
55 Kolkata South 37000 2477.36 39856 3868.89
56 Howrah 26850 524.05 28349 722.82
57 Haldia 25964 824.31 26546 888.87
58 Bolpur 39220 2743.31 42967 4513.71

59 Siliguri 32514 1004.45 35306 1531.04

113 | P a g e
2017-18 2018-19
Sl. No. Commissionerate
No. of No. of
Revenue (cr) Revenue (cr)
Taxpayers Taxpayers
60 Bhubaneswar 60086 2190.90 67010 3900.58
61 Rourkela 23475 1296.87 24585 4412.00
62 Jaipur 70649 3947.98 78842 5031.98
63 Jodhpur 61699 1515.49 67429 2385.13
64 Alwar 35074 1895.12 38214 2978.98
65 Udaipur 43214 2463.86 46966 3371.38
66 Ahmedabad South 42696 4416.98 45053 4551.32
67 Ahmedabad North 41138 3848.86 42925 6488.99
68 Gandhinagar 24489 1898.09 26193 2552.88
69 Rajkot 39439 2963.88 40867 3494.91
70 Bhavnagar 21126 1156.76 21900 1559.74
71 Kutch 10375 1288.15 10402 1642.46
72 Vadodara I 31623 2353.08 31067 4078.48
73 Vadodara II 13308 1873.15 13303 3539.48
74 Surat 112388 2663.17 115768 5002.05
75 Daman 5420 768.26 4887 1100.23
76 Mumbai South 21050 8717.18 22417 13789.34
77 Mumbai Central 26981 7884.19 29380 10792.24
78 Mumbai East 41020 7614.20 43975 10553.37
79 Mumbai West 29937 3046.46 33331 4192.31
80 Bhiwandi 11688 791.82 12833 1143.65
81 Palghar 16930 284.65 21845 821.81
82 Navi Mumbai 22415 2191.20 24008 3431.97
83 Thane 36513 1257.10 40001 2502.45
84 Thane Rural 20490 371.66 23719 638.83
85 Belapur 13554 2811.61 14486 4073.13
86 Raigarh 14459 633.29 15850 959.16
87 Pune I (North) 47104 6994.13 51626 9917.91
88 Pune II (South) 52943 2214.74 56335 3572.65
89 Kolhapur 36048 1097.94 36268 1707.74
90 Goa 11386 1502.04 10874 1816.19

114 | P a g e
2017-18 2018-19
Sl. No. Commissionerate
No. of No. of
Revenue (cr) Revenue (cr)
Taxpayers Taxpayers
91 Indore 24836 1696.96 27964 2301.70
92 Bhopal 47611 1706.07 52274 2879.49
93 Jabalpur 40681 4955.58 44051 7459.30
94 Ujjain 22778 1141.35 23638 1572.35
95 Raipur 48397 4701.90 49706 8950.44
96 Nagpur I 20447 3500.65 20316 2634.86
97 Nagpur II 30870 1413.62 31764 3588.74
98 Nashik 44937 2001.17 46290 2822.88
99 Aurangabad 35497 2015.13 37423 2994.20
100 Guwahati 44282 2068.74 47856 2950.36
101 Itanagar 4916 83.39 5559 134.51
102 Imphal 4828 49.55 5148 86.49
103 Shillong 8706 439.81 9315 625.36
104 Aizawl 1779 26.46 1893 65.20
105 Dimapur 3054 24.94 3103 61.27
106 Agartala 7994 122.32 9936 220.10
107 Dibrugarh 22821 465.22 24430 791.46
Grand Total 3830655 268613 4132901 395241.12

115 | P a g e
ANNEXURE –C

116 | P a g e
ANNEXURE – D

Gist of Proposed GST Formations

Sr. Sub Appeal Audit


STATE/UT CC Zones Commissionerates Division Range
No Commissionerate Commissionerate Commissionerate

J&K &
1 Chandigarh 1. Jammu 4 20 Jammu Jammu
LADAKH
HIMACHAL
2 Chandigarh 1. Shimla 5 20
PRADESH
3 CHANDIGARH Chandigarh 1. Chandigarh 3 15 Chandigarh Chandigarh

4 PUNJAB Chandigarh 1. Ludhiana Mohali 31 150 Ludhiana Ludhiana


2. Jalandhar

1. Delhi East
2. Delhi South
Delhi-I Delhi-I
5 DELHI Delhi 3. Delhi North 35 175
Delhi-II Delhi-II
4. Delhi West

1. Gurugram
2. Faridabad Gurugram Gurugram
6 HARYANA Panchkula Sonepat 25 150
3. Panchkula Panchkula Panchkula
4. Rohtak

117 | P a g e
Sr. Sub Appeal Audit
STATE/UT CC Zones Commissionerates Division Range
No Commissionerate Commissionerate Commissionerate

1. Lucknow
2. Allahabad
Lucknow Lucknow
Lucknow 3. Kanpur 30 140
Allahabad Kanpur
4. Agra
5. Varanasi
UTTAR
7
PRADESH
1. Meerut
2. Noida Meerut
Meerut
Meerut 3. Gautam Budh 29 140 Noida
Noida
Nagar
4. Ghaziabad

8 UTTARANCHAL 1. Dehradun 7 35 Dehradun


Dehradun

1. Vizag
ANDHRA Nellore
9 Vishakhapatnam 2. Guntur 15 113 Guntur Guntur
PRADESH Kakinada
3. Tirupati

118 | P a g e
Sr. Sub Appeal Audit
STATE/UT CC Zones Commissionerates Division Range
No Commissionerate Commissionerate Commissionerate

1. Hyderabad
2. Secundrabad
Hyderabad-I Hyderabad-I
10 TELANGANA Hyderabad 3. Medchal 30 150
Hyderabad-II Hyderabad-II
4. Rangareddy

1. Bengaluru East
2. Bengaluru West
3. Bengaluru South Bengaluru I
Bengaluru I
4.Bengaluru North Bengaluru II
Bengaluru II
11 KARNATAKA Bengaluru 5. Bengaluru North 65 325 Mysuru
Mysuru
West Belguvi
Belguvi
6. Mysoru
7. Mangalore
8. Belguvi

119 | P a g e
Sr. Sub Appeal Audit
STATE/UT CC Zones Commissionerates Division Range
No Commissionerate Commissionerate Commissionerate

1.
KERALA & Thiruvananthapuram
12 Thiruvananthapuram 18 90 Kochi Kochi
LAKSHADWEEP 2. Kochi
3. Calicut

13 PUDUCHERRY Chennai 1. Puducherry 4 20

1. Chennai North
2. Chennai South
3. Chennai Outer
Chennai I
4. Coimbatore Chennai I
Chennai II
14 TAMIL NADU Chennai 5. Trichy Tirunelveli 62 322 Chennai II
Coimbatore
6. Madurai Coimbatore
7. Salem

120 | P a g e
Sr. Sub Appeal Audit
STATE/UT CC Zones Commissionerates Division Range
No Commissionerate Commissionerate Commissionerate

1. Patna-I
15 BIHAR Ranchi 10 50 Patna Patna
2. Patna-II

1. Ranchi
16 JHARKHAND Ranchi 2. Jamshedpur Dhanbad 15 85 Ranchi Ranchi

1. Kolkata North
2. Kolkata South
WEST BENGAL Kolkata-I Kolkata-I
3. Hawrah
17 & ANDMAN Kolkata Durgapur 56 300 Kolkata-II Kolkata-II
4. Haldia
NICOBAR Siliguri Durgapur
5. Siliguri
6. Bolpur

18 SIKKIM 1 5

1.Bhubaneshwar
19 ODISHA Bhubaneshwar 15 95 Bhubaneswar Bhubaneswar
2. Rourkela

121 | P a g e
Sr. Sub Appeal Audit
STATE/UT CC Zones Commissionerates Division Range
No Commissionerate Commissionerate Commissionerate

1. Jaipur
2. Jodhpur Jaipur Jaipur
20 RAJASTHAN Jaipur 36 170
3. Alwar Jodhpur Jodhpur
4. Udaipur

1. Ahmedabad South
2. Ahmedabad North
3. Gandhinagar
4. Rajkot Ahmedabad Ahmedabad
Ahmedabad 38 190
5. Bhavnagar Jamnagar Rajkot Rajkot
6. Kutch
(Gandhidham)

21 GUJARAT

1. Vadodara-I
2. Vadodara -II
Anand
Vadodara 3. Surat-I 35 176 Vadodara Vadodara
Bharuch
4. Surat-II Surat Surat

DADRA &
22
NAGAR HAVELI
Vadodara 1. Daman Silvassa 10 50
23 DAMAN & DIU

122 | P a g e
Sr. Sub Appeal Audit
STATE/UT CC Zones Commissionerates Division Range
No Commissionerate Commissionerate Commissionerate

1. Central Mumbai
2. Mumbai South
3. Mumbai East
4. Mumbai West
Mumbai I Mumbai I
5. Bhiwandi
Mumbai II Mumbai II
6. Palghar
Mumbai 82 437 Mumbai III Mumbai III
7. Navi Mumbai
Thane Thane
8. Thane
Raigarh Raigarh
9. Thane Rural
10. Belapur
24 11.Raigarh
Maharashtra

1. Nagpur-I
2.Nagpur-II Nagpur Nagpur
Nagpur 22 105
3.Nashik Nashik Nashik
4. Aurangabad

1. Pune-I
Pune I Pune I
Pune 2. Pune-II Solapur 21 108
Pune II Pune II
3. Kolhapur

25 GOA Pune 1. Goa 5 25 Goa

123 | P a g e
Sr. Sub Appeal Audit
STATE/UT CC Zones Commissionerates Division Range
No Commissionerate Commissionerate Commissionerate

1. Bhopal
MADHYA 2. Indore Indore Indore
26 Bhopal 33 170
PRADESH 3. Jabalpur Bhopal Bhopal
4. Ujjain

27 CHATTISGARH Bhopal 1. Raipur 10 50 Raipur Raipur

28 ASSAM 8 48

ARUNACHAL
29 1 5
PRADESH

30 MANIPUR 1. Guwahati 1 5
2. Dibrugarh
31 MEGHALAYA 3. Shillong 2 15
Guwahati Guwahati Shillong
4. Agartala
5. Itanagar
32 MIZORAM 6. Imphal Aizwal 1 5

33 NAGALAND Dimapur 1 5

34 TRIPURA 2 5

GRAND TOTAL 106 14 768 3969 49 48

124 | P a g e
ANNEXURE – E

125 | P a g e
ANNEXURE – F

126 | P a g e
ANNEXURE –G

127 | P a g e
ANNEXURE –H

CUSTOMS CC ZONES / COMMISSIONERATES EXISTING / PROPOSED


Existing
S.No. Existing CC Zone S.No. S.No. Proposed CC Zone S.No. Commissionerates proposed in the Zone
Commissionerates
1 Ahmedabad Customs 1 Ahmedabad 1 Ahmedabad Customs 1 Ahmedabad
2 Kandla 2 Kandla
3 Jamnagar(P) 3 Jamnagar
4 Mundra 4 Mundra
5 Appeals

2 Bengaluru Customs 6 Airport & ACC 2 Bengaluru Customs 5 Bengaluru Airport & Courier Terminal
7 City (ICD) 6 Bengaluru ACC
8 Mangalore 7 City (ICD)
9 Appeal

3 Chennai Customs 10 Customs I (AP) 3 Chennai Customs 8 Chennai Customs I (AP)


11 Customs II 9 Customs II (Import)
12 Customs III
13 Customs IV 10 Customs IV (Export)
14 Customs VII (ACC) 11 Customs VII (ACC)
15 Customs VIII (Gen) 12 Customs VIII (Gen)
16 Audit
17 Appeal I
18 Appeal II

4 Trichy Customs (P) 19 Trichy (P) 4 Eastern Coast (Chennai) 13 Trichy


20 Tuticorin (P) 14 Tuticorin
15 Chennai Coastal
16 Vishakapatnam

128 | P a g e
Existing
S.No. Existing CC Zone S.No. S.No. Proposed CC Zone S.No. Commissionerates proposed in the Zone
Commissionerates
5 Delhi Customs 21 General & Airport 5 Delhi ICD Zone 18 ICD, Tuglakabad (Import)
22 ACC (Import) 19 ICD, Tuglakabad (Export)
23 ACC (Export) 20 ICD Patparganj & other ICDs

ICD, Tuglakabad
24
(Import)
ICD, Tuglakabad
25
(Export)
26 PPG & Other ICDs
27 Audit
28 Appeal

6 Delhi Customs Prev 29 Delhi (Prev.) 6 Delhi Air Zone


30 Amritsar (Prev.) 21 ACC (Import)
31 Ludhiana 22 ACC (Export & General)
32 Jodhpur (Prev.) 23 Airport
7 Delhi Land Zone 24 Amritsar
25 Ludhiana
26 Delhi Land
27 Jodhpur
7 Kolkata Customs 33 Port 8 Kolkata Customs 28 Port
34 AP & ACC 29 AP & ACC
35 West Bengal (P) 30 Bhubaneswar Cus
36 Appeal
31 West Bengal Customs
9 Shillong Customs 32 Shillong Cus
33 Siliguri Cus
8 Mumbai I Customs 37 General 10 Mumbai Customs 34 General
38 Import I 35 Mumbai Sea Port

129 | P a g e
Existing
S.No. Existing CC Zone S.No. S.No. Proposed CC Zone S.No. Commissionerates proposed in the Zone
Commissionerates
39 Import II
40 Export 36 ACC (Import)
41 Audit 37 ACC(Export)
42 Appeal 38 Airport (Special Cargo)
39 Mumbai Airport
9 Mumbai II Customs 43 Nhava Sheva (Gen) 11 Nhava Sheva Customs 40 Nhava Sheva (Gen)
44 Nhava Sheva I 41 Nhava Sheva I
45 Nhava Sheva II 42 Nhava Sheva II

46 Nhava Sheva III 43 Nhava Sheva III


47 Nhava Sheva IV (Audit)
48 Nhava Sheva V 44 Nhava Sheva V
49 Appeal
10 Mumbai III Customs 50 Customs (Prev.)
51 ACC (Import)
52 ACC(Export)
53 ACC(G)
54 Airport (Special Cargo)
55 Airport
56 Appeals
12 Western Coast (Goa)
45 Mumbai Coastal
46 Pune Cus
47 Goa Cus
48 Mangalore Cus
49 Cochin Sea and Air
50 Cochin Land

130 | P a g e
Existing
S.No. Existing CC Zone S.No. S.No. Proposed CC Zone S.No. Commissionerates proposed in the Zone
Commissionerates
11 Patna Cus (P) Zone 57 Patna(P) 13 Lucknow Customs Zone 51 Patna Cus
58 Lucknow(P) 52 Lucknow Cus
53 Noida Cus
Bhubaneswar GST 59 Bhubaneswar Cus 14 Indore Customs Zone 54 Indore Customs
Shillong GST 60 Shillong Cus 55 Nagpur Customs
56 Hyderabad
Pune GST 61 Pune Cus
Pune GST 62 Goa Cus
Thiruvananthapuram Customs Audit Zone
63 Cochin I Cus 15 57 Customs Audit Chennai
GST Mumbai
Thiruvananthapuram
64 Cochin II Cus 58 Customs Audit I Mumbai
GST
Bhopal GST 65 Indore Customs 59 Customs Audit II Mumbai

Nagpur GST 66 Nagpur Customs 60 Customs Audit Delhi


Vishakapatnam GST 67 Vishakapatnam 61 Customs Audit Kolkata
Vishakapatnam GST 68 Vijayawada Cus(P) 62 Customs Audit Bengaluru
Hyderabad GST 69 Hyderabad 63 Customs Audit Ahmedabad
Meerut GST 70 Noida Cus
Customs Appeal Zone
16 64 Customs Appeal Ahmedabad
Delhi
65 Customs Appeal Bangalore
66 Customs Appeal Chennai

67 Customs Appeal Eastern Coast (Chennai)

131 | P a g e
68 Customs Appeal Delhi I
69 Customs Appeal Delhi II
70 Customs Appeal Amritsar
71 Customs Appeal Lucknow
72 Customs Appeal Nagpur
73 Customs Appeal Mumbai
74 Customs Appeal Nhava Sheva
75 Customs Appeal Western Coast (Goa)
76 Customs Appeal Kolkata
77 Customs Appeal Shillong

132 | P a g e
ANNEXURE –I

133 | P a g e
ANNEXURE – J1

DIRECTORATES /ZONAL UNITS - EXISTING

Existing No.
S.No. Name of Directorates of Zonal
Units
1 Directorate General of GST Intelligence (DGGI) 26
2 Directorate General of Revenue Intelligence (DGRI) 12
3 DG Vigilance 7
4 NACIN 16
5 DG Systems & Data Management 6
6 Directorate General of Taxpayer Services 6
7 Directorate General of Performance Management 4 (+ 1 RU)
8 Directorate General of Audit 7
9 Directorate General of Analytics and Risk Management -
10 Directorate General of Valuation (3 RU)
11 Directorate General of GST 3(+1 RU)
12 Directorate of Anti Profiteering -
13 Directorate General of Export Promotion -
14 Directorate of International Customs -
15 CC(AR) CESTAT 8+1 Pr. Bench
16 Directorate of Legal Affairs -
17 Directorate General of Human Resource Development -
18 Directorate of Logistics -

134 | P a g e
ANNEXURE – J2

DIRECTORATES /ZONAL UNITS - PROPOSED

Proposed No.
Name of Directorates of Zonal
Units
1 Directorate General of GST Intelligence (DGGI) 26
2 Directorate General of Revenue Intelligence (DGRI) 12
3 DG Vigilance 8
4 NACIN 16
5 DG Systems & Data Management 7
6 Directorate General of Taxpayer Services 6
7 Directorate General of Performance Management 4
8 Directorate General of Audit 7
9 Directorate General of Analytics and Risk Management -
10 Directorate General of Valuation (3 RU)
11 Directorate General of GST 4
- Directorate of Anti Profiteering
12 Directorate General of International Customs and Export Promotion -
- Directorate General of Export Promotion -
- Directorate of International Customs -
13 Directorate General of Legal Affairs and AR 8+1 Pr. B.
- CC(AR) CESTAT -
- Directorate of Legal Affairs -
14 Directorate General of Human Resource Development -
- Directorate of Logistics -

135 | P a g e
Existing Promotion Cadre : Feeder Cadre Annexure – K

PC : FC
1 : 1.32
Superintendent (E) Inspector(E) Head Havaldar(E)
14928 19738 5290

0% DR + 100%PR 90% DR + 10%PR


Havaldar(E)
0 + 14928 17764 + 1974 PC : FC 7055
1 : 1.97
PC : FC
1 : 5.24 Executive Assistant
CAO(E) AO(E) Tax Assistant(E) LDC(E)
(E)
283 1322 4614 1497
3908
0% DR + 100%PR 40% DR + 60%PR 90% DR + 10%PR
90% H + 10%MTS
0 + 1322 1563 + 2345 4153 + 461
1347 + 150 MTS(E)
343
PC : FC PC : FC
1 : 1.24 1 : 2.29
Assistant Superintendent (P) Preventive Officer
Commissioner 2388 2970 Head Havaldar(C)
623 (50% of SS)
1028
0% DR + 100%PR
90% DR + 10%PR
0 + 2388
2673 + 297 PC : FC Havaldar(C)
1 : 2.94 1395
PC : FC
1 : 2.65 Executive Assistant
CAO (C) AO(C) Tax Assistant(C) LDC(C)
(C)
66 175 1352 321
765
0% DR + 100%PR 40% DR + 60%PR
90% DR + 10%PR 90% H + 10%MTS
0 + 175 306 + 459 MTS(C)
1217 + 135 289 + 32 152

Appraiser Examiner PC : FC
910 1595 1 : 4.75
PC : FC
1 : 4.78
0% DR + 100%PR 90% DR + 10%PR
0 + 910 1435 + 160
20% P.O. 182 posts 80% Examiner 728 posts
PC : Promotion Cadre
FC : Feeder Cadre
PC : FC
1 : 2.19

136 | P a g e
ANNEXURE –L1

For Field Formations


All India Cadres Individual Cadres

Head Havaldar
PC : FC 6499
1 :3.38

PC : FC Havaldar
PC : FC PC : FC PC : FC PC : FC PC : FC 8856
1 : 2.32
1 : 6.41 1 : 1.46 1 : 2.63 1 : 3.24 1 : 2.49
DR : PR
DC AC Superintendent Inspector Executive Assistant Tax Assistant LDC 100 : 0
350 3092 19722 28760 11320 12823 4776 8856+ 0

DR : PR DR : PR DR : PR DR : PR DR : PR DR : PR PR(M) : PR(H)
0 : 100 0 : 100 0 : 100 85 : 15 65 : 35 85 : 15 20: 80 PC : FC MTS
0 + 350 0 + 3092 0 + 19722 24446 + 4314 7358+ 3962 10900+1923 955+ 3821 1 : 3.09 2945

DR : PR
100 : 0
DR : PR
JC
0 : 100 2945+ 0
80
0 + 80 Additional Assistant
Director
99
DR : PR
ADC
0 : 100
27
0 + 27
PC : Promotion Cadre
FC : Feeder Cadre
DR : PR
Commissioner
9 0 : 100
0+9

137 | P a g e
ANNEXURE-L2

For Directorates

PC : FC
1 : 4.75
SI (Dog Handler) ASI (Dog Handler)
12 57

Head Havaldar
182

PC : FC
Havaldar
1 : 2.1 406
PC : FC PC : FC PC : FC PC : FC
1:2 1 : 2.24 1 : 2.36 1 : 2.37 DR: PR
100 : 0
Additional Assistant
Assistant Commissioner
Director
Inspector Executive Assistant Tax Assistant LDC 406 + 0
of Field Formations 1945 437 1031 244
986
Depn. : PR Depn. : PR DR : PR DR : PR PR(M) : PR(H)
90 : 10 90 : 10 0 : 100 90 : 10 20: 80 MTS
PC : FC 181
887 + 99 1750 + 195 0 + 437 928 + 103 49 + 195 1 : 3.7
DR: PR
100 : 0
181 + 0

PC : Promotion Cadre
FC : Feeder Cadre

138 | P a g e
ANNEXURE – M

ANNUAL ADDITIONAL COST PROPOSED CR 2018


Additional
Pay Existing Proposed Existing Proposed Additional
S.No. Grade Pay Expenditure per
level SS SS Expenditure Expenditure Expenditure
annum
1 Pr. CC 17 225000 14 15 3150000 3375000 225000 2700000
CC 16 205400 38 40 7805200 8216000 410800 4929600
Pr.Comm 15 182200 99 100 18037800 18220000 182200 2186400
2 Comm. 14 144200 336 351 48451200 50614200 2163000 25956000
3 ADC 13 123100 666 726 81984600 89370600 7386000 88632000
JC 12 78800 265 363 20882000 28604400 7722400 92668800
4 DC 11 67700 801 1027 54227700 69527900 15300200 183602400
AC 10 56100 3364 3716 188720400 208467600 19747200 236966400
5 CAO 10 56100 349 0 19578900 0 -19578900 -234946800
6 Supdt. CX 9 53100 15526 16838 824430600 894097800 69667200 836006400
7 Supdt. (P) 9 53100 2388 2580 126802800 136998000 10195200 122342400
8 Appraiser 9 53100 1194 1290 63401400 68499000 5097600 61171200
9 AO 7 44900 1600 0 71840000 0 -71840000 -862080000
10 Sr. PS 8 47600 152 155 7235200 7378000 142800 1713600
11 PS 7 44900 340 351 15266000 15759900 493900 5926800
12 Insp. CX 7 44900 20638 25325 926646200 1137092500 210446300 2525355600

139 | P a g e
Additional
Pay Existing Proposed Existing Proposed Additional
S.No. Grade Pay Expenditure per
level SS SS Expenditure Expenditure Expenditure
annum
13 PO 7 44900 2970 3582 133353000 160831800 27478800 329745600
14 Examiner 7 44900 1595 1798 71615500 80730200 9114700 109376400
15 Steno-I 6 35400 932 1089 32992800 38550600 5557800 66693600
16 EA 6 35400 4850 11757 171690000 416197800 244507800 2934093600
17 DriverSpl. 6 35400 86 136 3044400 4814400 1770000 21240000
18 Steno-II 4 25500 801 2054 20425500 52377000 31951500 383418000
19 TA 4 25500 6432 13854 164016000 353277000 189261000 2271132000
20 LDC 2 19900 1917 5020 38148300 99898000 61749700 740996400
21 Driver I 5 29200 392 951 11446400 27769200 16322800 195873600
22 Driver II 4 25500 427 817 10888500 20833500 9945000 119340000
23 Driver III 2 19900 480 817 9552000 16258300 6706300 80475600
24 HH 2 19900 6500 6681 129350000 132951900 3601900 43222800
25 Havildar 1 18000 8690 9262 156420000 166716000 10296000 123552000
26 MTS 1 18000 634 3126 11412000 56268000 44856000 538272000
27 DD(OL) 11 67700 11 11 744700 744700 0 0
28 AD(OL) 10 56100 68 68 3814800 3814800 0 0
29 ST 7 44900 79 115 3547100 5163500 1616400 19396800
30 JT 6 35400 158 231 5593200 8177400 2584200 31010400
31 AP 6 35400 5 0 177000 0 -177000 -2124000

Lady
32 4 25500 12 0 306000 0 -306000 -3672000
searcher

140 | P a g e
Additional
Pay Existing Proposed Existing Proposed Additional
S.No. Grade Pay Expenditure per
level SS SS Expenditure Expenditure Expenditure
annum
SI Dog
33 4 25500 0 12 0 306000 306000 3672000
Handler
ASI
34 3 21700 52 0 1128400 0 -1128400 -13540800
Weapon
35 ASI Dog 2 19900 5 57 99500 1134300 1034800 12417600

Total 84866 114315 3458225100 4383035300 924810200 11097722400


345.82 cr 438.30 cr 92.48 cr 1109.77 cr

141 | P a g e

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