Flagging the issue of "skewed utilisation" of ACES software deployed by CBEC to improve efficiency of indirect tax administration, the Comptroller and Auditor General of India today said no review of the application was done even after five years of implementation.
The Automation of Central Excise and Service Tax (ACES) software was initially rolled out at the Large Tax Payer Unit Commissionerate in Bengaluru in December 2008 and subsequently implemented across the country in phases.
The report titled 'Working of Automation of Central Excise and Service Tax', which was presented in Parliament, covers December 2008 to June 2014.
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"We observed that not conducting trainings, seminars and workshops is one of the main reasons for skewed utilisation of ACES. We observed that even after five years of implementation of ACES, no post implementation review was carried out," the CAG report said.
ACES is the e-governance initiative by the Central Board of Excise and Customs (CBEC) and one of the Mission Mode Projects of the government under the National e-Governance plan.
According to the CAG report, there was no provision for digital signature and a big chunk of returns were marked for review and correction due to small errors which could be addressed by proper validations.
Also, "there was no provision in ACES to upload/attach any documents".
ACES, the report said, didn't address the issue of
selection of returns for detailed scrutiny on the basis of in-build risk parameters. There was no time limit for review of marked returns, it added.
It also pointed out that only three modules (Access Control Logic, Registration and Return) out of the total 10 in ACES were utilised by the stakeholders.
In its recommendations, CAG highlighted the need to simplify the cumbersome procedure in respect of mapping of employees in ACES to save mandays that go unutilised.
"In view of the ministry's commitment to grant registration in two days to overcome delay in issue of registration certificates, prompt completion of physical verification must be ensured," it added.
The auditor also said electronic filing may be made mandatory for compulsory intimations such as invoice books and records.
