Deccan Chronicle

Messenger punished, culprit saved tax dept

- N. VAMSI SRINIVAS I DC

Shooting the messenger, the top brass of Andhra Pradesh tax department have penalised an assistant commission­er, who did his best to prevent loss of revenue to the government, while sparing his senior who actually caused the loss.

The messenger, G. Prabhakar Murthy. is due for retirement on June 30 and Piyush Kumar, chief commission­er of state tax, recommende­d to the government to recover `50 lakh paid to Essar Steel, Visakhapat­nam, as a penalty, from his retirement benefits and a cut in pension. The chief commission­er, by implicatin­g Murthy in this case, rescued additional commission­er S. Sekhar, whose inaction left the government with no option but to pay the penalty.

Interestin­gly, a crucial report submitted by the Visakhapat­nam joint commission­er explaining in detail the events that led to the loss of revenue to the exchequer and holding Sekhar responsibl­e for the loss was ignored by the chief commission­er for reasons best known to him.

“The inaction of then deputy commission­er (Sekhar) resulted in the loss and there is nothing to be attributed to the then commercial tax officer (Murthy) who acted in good faith and as per provisions of the Act,” says the report.

Inquiries by Deccan Chronicle revealed that Essar Steel claimed a refund of a certain tax amount. Murthy’s predecesso­r neither rejected nor approved the refund for eight months. When Murthy took charge, he immediatel­y sought a direction from Sekhar on Essar’s request.

Initially, Sekhar tried to send the ball back to Murthy’s court but the latter, quoting the provisions of the Act, recommende­d to his senior to withhold the amount as the government had appealed against the refund. Sekhar did not pass any order and Murthy was transferre­d to another place. Later, Essar approached the AP High Court against the delay in refund and the court directed the government to refund the amount along with an interest of `50 lakh.

• A REPORT by Visakhapat­nam joint commission­er explained the events that led to loss of revenue.

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