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Why 'Department of Revenue' is unable to check the huge 'revenue leakages' of government money?
Department of Revenue is an independent Department under the Ministry of Finance headed by Revenue Secretary, which reports directly to the Finance Ministry.

Revenue from Income Tax , Central Excise(Now CGST) & Customs is being collected and monitored by this Department of the Finance Ministry, through Central Board of Direct Taxes (CBDT) and Central Board of Indirect Taxes & Customs(CBIC).

Ideally, CBDT and CBIC should be in a position to install a system under which they are able to monitor the Huge Tax Demands, which are recoverable from the taxpayers. However, it seems that no such system exists and Higher Authorities in CBDT,CBIC and Department of Revenue are  not aware of these tax demands for variety of reasons.

Before I proceed further, let me take one example where huge undisputed tax demands of Central Excise Duty could not be recovered by the Tax Authorities. I came to know that there is one taxpayer who is liable to pay a huge excise duty demand along with penalty and interest and demand is "undisputed" because no appeal has been filed by the taxpayer against this demand. Instead of depositing the demand, the taxpayer entity has now stands closed under the Simplified Exit Scheme of the Ministry of Corporate Affairs, making it almost impossible to recover the huge tax demand.

Through an RTI Application, when somebody asked from the concerned Tax Department as to why this huge Excise Duty demand was not recovered till date the answer which was  given was really shocking and surprising. RTI Reply simply said-"Party is not traceable."  This was just one case for the purpose of illustration. Thousands of such cases must be lying in the Files of the Tax Authorities and everyone from the Income Tax , Central Excise, GST and Customs Department to the higher authorities sitting in CBDT,CBIC and Department of Revenue are simply sleeping  and totally unaware of these huge demands which their officers are neither recovering nor reporting.

Let me also discuss, why this is happening. All Tax Departments are being headed by IRS officers who generally do not have sufficient working knowledge for tax administration and recovery. Most of these officers come from unrelated educational and professional backgrounds, which are totally unrelated to the job of a Tax Officer. Let me give you one more example here. Delhi Chief Minister Arvind Kejriwal who is an IIT Engineer, was also inducted as an IRS officer in the Income Tax Department. It is a matter of pure common sense whether we require an IIT Engineer as IRS Officer or a Chartered Accountant as IRS Officer. 

Have you ever seen any Private Company hiring An IIT Engineer for the post of Chief Finance Officer ? Finance Ministry is simply doing this and loosing huge tax revenue. No body is bothered because, the persons sitting in CBDT and CBIC are also either IRS or IAS officers. None of these Departments is engaging the experts like Chartered Accountants as a matter of Government Policy.

Editorial NOTE: This article is categorized under Opinion Section. The views expressed in this article are solely those of the author and do not necessarily represent the views of In case you have a opposing view, please click here to share the same in the comments section.
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