GreaterKashmir.com: FAHEEM ASLAM: SRINAGAR, MONDAY, 15 AUGUST 2011.
Srinagar, Aug 14: In a major expose, information sought under the Right to Information Act has revealed how a number of government departments and bigwigs in political and business circles in Jammu and Kashmir have been left untouched by the Sales Tax Department for one reason or the other, even as the defaulters have arrears ranging from Rs 10 lakh to Rs 50 crores for the past 10 to 15 years.
The information, sought by an RTI activist from Sangharsh RTI Movement Jammu, reveals the list of sales tax defaulters in both Kashmir and Jammu regions of the state. It reveals that there are about 650 defaulters in the Valley while 212 are from Jammu, with overall arrears amounting to Rs 592 crores, approximately.
But in the Valley, the information reveals that out of 650 defaulters, 263 are not traceable and 36 are Non-Traceable Migrants—something which has raised questions on the functioning of the Sales Tax Department.
In Budgam, it says, there are 56 defaulters and out of them 31 (52 percent) are not traceable.
A cursory analysis of the information reveals that on an average 40 to 50 percent defaulters are “Not Traceable” and almost same number of cases are “under process” for the past five to 15 years for unknown reasons.
In most of the cases, the Deputy Commissioner (Appeals) has given a stay which has remained pending for years together while in cases, where warrants have been issued, it is not clear why they have not been executed, though the department admits non-execution without citing anything.
DEFAULTERS/ANALYSIS:
Apart from small enterprises and multinational companies in different parts of the state, the list of defaulters includes some of the top business and industrial firms. Surprisingly, a number of Government Departments also figure in the list.
In Jammu division, the Power Grid Corporation (Jammu) tops the list, with pending arrears amounting to over Rs 50 crores from 1988-89 to 2005-2006. The Sales Tax Tribunal, as per the documents, has granted stay for over Rs 23 crores while rest of the amount has been stayed by the DC (Appeals). No reasons have been cited therein.
Similarly, at Serial No 2 is the telecom giant Bharat Sanchar Nigam Limited, Green Belt Park Jammu. Its arrears amount to over Rs 25 crores from 2003-2006. The case, the documents say, is sub-judice while “Demand Dastak Notice” has been issued for 2005-04. The department is silent on the action thereafter.
J&K Minerals is also among the defaulters, with pending arrears amounting to over Rs 18 lakh while the J&K Agro Industries owes over Rs 25 lakh. The cases are ‘under process’ for the past many years.
The arrears of the J&K Confed are over Rs 6 crores, with case under process while arrears of the office of the Director Agriculture are over Rs 59 lakh. The arrears of the JK State Cooperative Consumers are more than Rs 6 crores while the State Forest Corporation owes Rs 3 crores as Sales Tax. The cases are under process.
The office of the Chief Conservator of Forests is also a defaulter with arrears over Rs 45 lakh while the J&K Projects Construction Corporation and the J&K Tourism Development Corporation owe over Rs 41 crores and Rs 4 crores respectively. The cases are under process.
The Indian Oil Corporation also owes Rs 31 lakh. Besides Government offices, some of the well-known firms have figured in the list of defaulters.
One of the firms (Gladsome Enterprises and Gladsome Marketing) has been a repeated defaulter at three places in the list, with arrears of more than Rs 4 crores.
Interestingly, the documents reveal that some firms are non-existent on ground while they are very much in existence. For instance, the National Garage at BC Road Jammu.
According to documents, the firm owes Rs 87 lakh has been shown non-existing at the given address with defaulter being a domicile of J&K against whom warrants have been issued many times. “But the firm very much exists on ground,” said an RTI activist.
PDP/CONG LEADER IN LIST:
Maulvi Iftikar Ansari, senior PDP leader who runs Ansari Motors owes Rs 18 Crores while Highland Motors, owned by Amjad Abbas Ansari, owes Rs 15 crores. However, Imran Ansari, the son of Iftikhar Ansari has recently claimed that “We have paid Rs 9 crores and if political linkages are kept aside, it is the department which will owe us money.”
Shaurya Motors owned by son of Janak Raj Gupta, a Congress leader owes Rs 26 Lakh.
Similarly J&K Motors Gandhi Nagar Jammu owes over Rs 2 crores as sales tax. The IRCON international is also in the list of defaulters, which owes Rs 9 crores as Sales Tax. The case is under process, as per the information. The NHPC (Uri-Civil) also owes Rs 16 crores as sales tax. But, the RTI says, the matter has been stayed by High Court.
Similarly, there are a number of wine shops in Jammu who are among the defaulters, with arrears ranging from several lakh rupees to many crores each.
The RTI has raised many questions.
“The point is why there are so many cases under process for the past many years? If there is a stay, why hasn’t the Department been able to vacate it quickly?” asked an RTI activist. “In many cases, the Department says that warrants against the defaulters have been issued. But why they have not been executed so far?”
The RTI has raised a big question mark on the functioning of the Department, with observers accusing it of going easy on the bigwigs. “There is a procedure in the Sales Tax Department that whenever register any firm, the officials seek site plans and proof of residential or commercial address from them and review the cases annually. Does the non-traceable category means that the Department has either registered them without any documents or failed to review the cases periodically?” said a source in the Sales Tax Department. “Why the officers should not be held responsible in the cases where the defaulters are not traceable? If the Party has not deposited the default in a specified time why it is allowed to carry on his business next year? There is also a big question on whether the Department has ever made any communication with Relief Commissioner to trace out the Non-Traceable Migrants. The Commissioner must be having all the data.”
Interestingly, the RTI activist believes that the Department has missed out some firms from the list for unknown reasons.
THE APPLICATION:
The RTI activist had asked for the list showing names of all the Sales Tax defaulters (above Rs 10 lakh) of Jammu and Kashmir regions for the last 10 years during the period from 01-04-2000 to 31-03-2011. The details sought included name of the defaulter, title /name and address of defaulter’s commercial unit, residential address of the defaulter, amount of default, period of default and action taken by the department till date.
‘PROBE IT’: Observers believe the State Government should probe the matter and fix the responsibility in each case. “Besides recovering the tax, the Government must publish the list of defaulters in newspapers. If names of ordinary people and firms are published, how can the Government hide the names of firms and the people who run them?” asked another RTI activist. “This money, if recovered, could be easily used for carrying out developmental activities. There are many schools without buildings in the state and there are many areas without roads. So the state cannot afford to be lenient towards big fishes which are not paying taxes. The Government must thoroughly probe the matter and punish the officials responsible for the delay in tax recovery. Also, it has become imperative to crack down on the defaulters in the interest of maintaining transparency in the functioning of the Sales Tax Department.”
The information, sought by an RTI activist from Sangharsh RTI Movement Jammu, reveals the list of sales tax defaulters in both Kashmir and Jammu regions of the state. It reveals that there are about 650 defaulters in the Valley while 212 are from Jammu, with overall arrears amounting to Rs 592 crores, approximately.
But in the Valley, the information reveals that out of 650 defaulters, 263 are not traceable and 36 are Non-Traceable Migrants—something which has raised questions on the functioning of the Sales Tax Department.
In Budgam, it says, there are 56 defaulters and out of them 31 (52 percent) are not traceable.
A cursory analysis of the information reveals that on an average 40 to 50 percent defaulters are “Not Traceable” and almost same number of cases are “under process” for the past five to 15 years for unknown reasons.
In most of the cases, the Deputy Commissioner (Appeals) has given a stay which has remained pending for years together while in cases, where warrants have been issued, it is not clear why they have not been executed, though the department admits non-execution without citing anything.
DEFAULTERS/ANALYSIS:
Apart from small enterprises and multinational companies in different parts of the state, the list of defaulters includes some of the top business and industrial firms. Surprisingly, a number of Government Departments also figure in the list.
In Jammu division, the Power Grid Corporation (Jammu) tops the list, with pending arrears amounting to over Rs 50 crores from 1988-89 to 2005-2006. The Sales Tax Tribunal, as per the documents, has granted stay for over Rs 23 crores while rest of the amount has been stayed by the DC (Appeals). No reasons have been cited therein.
Similarly, at Serial No 2 is the telecom giant Bharat Sanchar Nigam Limited, Green Belt Park Jammu. Its arrears amount to over Rs 25 crores from 2003-2006. The case, the documents say, is sub-judice while “Demand Dastak Notice” has been issued for 2005-04. The department is silent on the action thereafter.
J&K Minerals is also among the defaulters, with pending arrears amounting to over Rs 18 lakh while the J&K Agro Industries owes over Rs 25 lakh. The cases are ‘under process’ for the past many years.
The arrears of the J&K Confed are over Rs 6 crores, with case under process while arrears of the office of the Director Agriculture are over Rs 59 lakh. The arrears of the JK State Cooperative Consumers are more than Rs 6 crores while the State Forest Corporation owes Rs 3 crores as Sales Tax. The cases are under process.
The office of the Chief Conservator of Forests is also a defaulter with arrears over Rs 45 lakh while the J&K Projects Construction Corporation and the J&K Tourism Development Corporation owe over Rs 41 crores and Rs 4 crores respectively. The cases are under process.
The Indian Oil Corporation also owes Rs 31 lakh. Besides Government offices, some of the well-known firms have figured in the list of defaulters.
One of the firms (Gladsome Enterprises and Gladsome Marketing) has been a repeated defaulter at three places in the list, with arrears of more than Rs 4 crores.
Interestingly, the documents reveal that some firms are non-existent on ground while they are very much in existence. For instance, the National Garage at BC Road Jammu.
According to documents, the firm owes Rs 87 lakh has been shown non-existing at the given address with defaulter being a domicile of J&K against whom warrants have been issued many times. “But the firm very much exists on ground,” said an RTI activist.
PDP/CONG LEADER IN LIST:
Maulvi Iftikar Ansari, senior PDP leader who runs Ansari Motors owes Rs 18 Crores while Highland Motors, owned by Amjad Abbas Ansari, owes Rs 15 crores. However, Imran Ansari, the son of Iftikhar Ansari has recently claimed that “We have paid Rs 9 crores and if political linkages are kept aside, it is the department which will owe us money.”
Shaurya Motors owned by son of Janak Raj Gupta, a Congress leader owes Rs 26 Lakh.
Similarly J&K Motors Gandhi Nagar Jammu owes over Rs 2 crores as sales tax. The IRCON international is also in the list of defaulters, which owes Rs 9 crores as Sales Tax. The case is under process, as per the information. The NHPC (Uri-Civil) also owes Rs 16 crores as sales tax. But, the RTI says, the matter has been stayed by High Court.
Similarly, there are a number of wine shops in Jammu who are among the defaulters, with arrears ranging from several lakh rupees to many crores each.
The RTI has raised many questions.
“The point is why there are so many cases under process for the past many years? If there is a stay, why hasn’t the Department been able to vacate it quickly?” asked an RTI activist. “In many cases, the Department says that warrants against the defaulters have been issued. But why they have not been executed so far?”
The RTI has raised a big question mark on the functioning of the Department, with observers accusing it of going easy on the bigwigs. “There is a procedure in the Sales Tax Department that whenever register any firm, the officials seek site plans and proof of residential or commercial address from them and review the cases annually. Does the non-traceable category means that the Department has either registered them without any documents or failed to review the cases periodically?” said a source in the Sales Tax Department. “Why the officers should not be held responsible in the cases where the defaulters are not traceable? If the Party has not deposited the default in a specified time why it is allowed to carry on his business next year? There is also a big question on whether the Department has ever made any communication with Relief Commissioner to trace out the Non-Traceable Migrants. The Commissioner must be having all the data.”
Interestingly, the RTI activist believes that the Department has missed out some firms from the list for unknown reasons.
THE APPLICATION:
The RTI activist had asked for the list showing names of all the Sales Tax defaulters (above Rs 10 lakh) of Jammu and Kashmir regions for the last 10 years during the period from 01-04-2000 to 31-03-2011. The details sought included name of the defaulter, title /name and address of defaulter’s commercial unit, residential address of the defaulter, amount of default, period of default and action taken by the department till date.
‘PROBE IT’: Observers believe the State Government should probe the matter and fix the responsibility in each case. “Besides recovering the tax, the Government must publish the list of defaulters in newspapers. If names of ordinary people and firms are published, how can the Government hide the names of firms and the people who run them?” asked another RTI activist. “This money, if recovered, could be easily used for carrying out developmental activities. There are many schools without buildings in the state and there are many areas without roads. So the state cannot afford to be lenient towards big fishes which are not paying taxes. The Government must thoroughly probe the matter and punish the officials responsible for the delay in tax recovery. Also, it has become imperative to crack down on the defaulters in the interest of maintaining transparency in the functioning of the Sales Tax Department.”
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