Businessmen scared to complain against tax officials

NEW DELHI: The finance ministry's plan to stamp out corruption in customs and excise departments across the country and address other grievances by appointing ombudsmen hasn't taken off with businessmen reluctant to file complaints against tax officials fearing reprisals.

S Dutt Majumdar, the ombudsman for Delhi, Haryana, Punjab, Himachal and J&K, said he was facing a peculiar problem - he was swarmed with 'verbal' complaints but no one was ready to come on record or lodge a formal case, barring a few from Delhi. He has been an indirect tax ombudsman for a year now.

"Even from Delhi, the representations are only a few. One would have been happy if this really reflected the scenario that everything is fine, and there are no grievances from trade and industry," Majumdar said.

"But that's not the real story. Some complainants have asked me whether I can act on the basis of their verbal complaints. Their apprehension is that they may face trouble in their future interactions with field officers if they lodge a written complaint," Majumdar said, indicating how some officers in field formations were actually making it difficult to bring in transparency in the system. Though he says a few cases that his office has settled there has been no such complaints he has received.

Majumdar, who retired as the chairman of Central Board of Excise and Customs, said orders and circulars issued from the top were often not implemented at the field level in their true spirit.

"The problem is compounded by lack of proper monitoring at different supervisory levels," Majumdar said. For instance, each commissionerate has a grievance redressal mechanism in place but these do not inspire confidence among people at several places, he added. Affected businessmen got relief only in places where supervisory officers were straight and proactive, he said.

The ombudsman's comments reflect the rampant corruption prevailing in the department. Last month, CBI had raided a senior official of the Directorate of Revenue Intelligence for accepting bribes. That was a rare case where an official was trapped. But, usually, those who have to interact with the department on a regular basis and have day-to-day interaction compromise as that is the convenient and easy option.

The government had in 2011 created seven positions of indirect tax ombudsmen, one each in Delhi, Bangalore, Mumbai, Kolkata, Chennai, Ahmedabad and Lucknow. However, three posts are yet to be filled.

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