The Department of Revenue functions under the overall administrative direction and control of the Secretary (Revenue).  It exercises control in respect of matters relating to all the Direct and Indirect Taxes through two statutory Boards, namely, the Central Board of Direct Taxes (CBDT) and the Central Board of Customs and Central Excise (CBEC).  Each Board is headed by a Chairman who is also ex-officio Special Secretary to the Government of India.  Matters relating to the levy and collection of all the Direct Taxes are looked after by CBDT, whereas those relating to levy and collection of customs and central excise duties and service tax fall within the purview of CBEC.  The two Boards were constituted under the Central Board of Revenue Act, 1963.
CBDT has six Members and CBEC has five Members.  The Members are also ex-officio Additional Secretaries to the Government of India.  

 A list of Acts administered by Department of Revenue is at Annexure I.  

2.       The Department of Revenue is headed by Shri P.V. Bhide, IAS(AP:73), Revenue Secretary, K. Jose Cyriac, IAS(KL:77), Additional Secretary( Revenue); and Shri Mukul Singhal, IAS(UP:86), Joint Secretary( Revenue ). The present incumbency position is placed at Annexure II.

REVENUE ( HEADQUARTERS )

3.       The Headquarters of the Department of Revenue looks after matters relating to all administration work pertaining to the Department, all matters relating to economic intelligence, coordination between the two Boards, i.e., CBDT and CBEC, administration of the Indian Stamp Act, 1899 (to the extent falling within the jurisdiction of the Union ), the Central Sales Tax Act, 1956, the Narcotics Drugs and Psychotropic Substances (NDPS ) Act, 1985 and SAFEMA ( FOP ) Act, 1976,  and matters relating to the following organizations/offices:

a.      Directorate of Enforcement

b.      Central Bureau of Narcotics (CBN) and Opium Factories

c.      Central Economic Intelligence Bureau (CEIB)

d.      Settlement Commission (Income Tax/Wealth Tax)

e.      Settlement Commission (Customs & Central Excise)

f.       Authority for Advance Rulings for Income-tax

g.      Authority for Advance Rulings for Customs and Central Excise

h.      Customs, Excise and Service Tax Appellate Tribunal (CESTAT)

i.       Competent Authorities under SAFEM (FOP) Act

j.       Appellate Tribunal for Forfeited Property (ATFP)

  4.     The Revenue Headquarters comprises  the following Divisions :  

4.1     Headquarters deals, inter alia, with appointment of Chairman/Members of CBDT/CBEC, Settlement Commission (IT/WT), Settlement Commission (C&CE), the Appellate Tribunal for Forfeited Property ( ATFP ), the Customs, Excise and Service Tax Appellate Tribunal  (CESTAT), and Director-General CEIB, Director (Enforcement) and Authority for Advance Rulings ( AAR), processing of cases of deputation of IRS/IC&CES Officers to Central Government under the Central Staffing Scheme or any Board/PSU, etc. matters relating to Foreign Exchange Manipulators (Forfeiture of Property) Act, 1976, Chapter V-A of Narcotics Drugs and Psychotropic Substances Act, 1985, etc.  

4.2     Administration deals with the administration of staff posted in the Deptt. of Revenue, infrastructural requirements of the Department including requirements of accommodations, furniture, computers, stationery, electric items, telephone, staff cars, arrangement of conferences/meetings, regular office inspection, etc.

Recruitment Rules for the posts of Member and Chairman / Presidents of various organisations administered by the Department of Revenue
   
4.3     Co-ordination Division deals, inter-alia, with all technical matters regarding coordination between C.B.D.T. and C.B.E.C. including coordination of the Parliament Questions of common concern, review of Revenue Collections, draft Notes for Cabinet pertaining to both Boards, etc.

4.4     Narcotics Control Division deals, inter-alia, with framing of annual opium licensing policy, notifying tracks for cultivation of opium poppy in pursuance of opium licensing policy, matters relating to poppy straw and poppy seeds, fixation of procurement price of opium payable to poppy cultivators, matters relating to Central Bureau of Narcotics and Chief Controller of Factories. 

          The administrative control over Narcotics Control Bureau ( NCB ) has shifted from Department of Revenue to MHA w.e.f. February, 2003.  However, the administration of Narcotics Drugs and Psychotropic Substances Act (NDPS) continues with this Department.

4.5     Sales Tax Division deals, inter-alia, with enactment and amendment of the Central Sales Tax Act and the Indian Stamp Act, 1899 and levy of tax on sales in the course of inter-State trade or commerce, VAT, etc.   

Value Added Tax (VAT ) was to be introduced by 1^st April, 2003.  Though the States/ UTs expressed their commitment, this deadline could not be met since the States were not fully prepared with regard to legislative and other infrastructural requirements.  A new road-map for introduction of VAT has to be worked out in consultation with the principal political parties and the Empowered Committee of State Finance Ministers. No specific date for introduction of State level VAT has yet been decided.  

The wing also deals with Service Tax legislation. A Constitutional Amendment Bill was passed by the Parliament to provide for levy of tax on services by the Union and State Governments in accordance with the principles to be laid down by a law made by the Parliament. After its ratification  by the requisite number of States, the amendment 
received assent of the President on 15^th January 2004 .. Accordingly, a draft Service Tax Bill has been circulated to the States for their comments.

4.6     Economic Security Cell   has been recently constituted in this Department to look after all matters relating to economic intelligence, including coordination with various Ministries and national & international organisations/agencies in matters relating to economic crimes. The cell also looks after matter relating to financing of terrorism, which is being coordinated by MHA.  

4.7     Integrated Financial Unit -- headed by the Financial Advisor (FA), an officer of the rank of Joint Secretary, it deals with the financial matters of the Department of Revenue.   

4.8      Hindi Division -- it deals with translation work of material for Public Accounts Committee, Consultative Committee, Agreements, translation work received from the Ministers and senior officers and all matters relating to implementation of Official Language Policy of the Government.                     

4.9     Grievances Cell – it is functioning in the headquarters and its work is monitored by an officer of the rank of Director. A Women’s Complaint Cell is also functioning in the Headquarters. 

4.10    Computerisation Cell - The Computerisation Cell looks after the content management and other related issues on computerization of Revenue Headquarters including CBDT and CBEC. 

5. SUBORDINATE / ATTACHED OFFICES

 5.1    DIRECTORATE OF ENFORCEMENT  

The Enforcement Directorate was entrusted with the enforcement of Foreign Exchange Regulation Act, 1973. The said Act has since been repealed and a new Act viz. Foreign Exchange Management Act, 1999 (FEMA) has become effective from 1^st June, 2000 .  

The Directorate has its headquarters at Delhi with 7 Zonal Offices, 9 Sub-Zonal Offices and 1 Field Unit. The Directorate is headed by Shri Sudhir Nath, Director Enforcement, an officer in the rank of Secretary to the Government of India.    

The Enforcement Directorate is responsible for enforcement of the provisions of Foreign Exchange Management Act, 1999 (FEMA) as well as certain provisions under the Prevention of Money Laundering Act.  The Directorate is under the administrative control of Department of Revenue for operational purposes; the policy aspect of the FEMA, its legislation and its amendments are within the purview of the Department of Economic Affairs. 

Work relating to investigation and prosecution of cases under the PMLA has been  entrusted to Enforcement Directorate. 

5.2     CENTRAL ECONOMIC INTELLIGENCE BUREAU (CEIB)  

The Central Economic Intelligence Bureau was set up in July, 1985 with the main objective of coordinating and strengthening the intelligence gathering activities, the investigative efforts and enforcement action by various agencies concerned with investigation into economic offences and enforcement of economic laws.  The Bureau was made responsible for maintaining liaison with the concerned Departments and Directorates both at the Central and State Government level, and was also made responsible for overall direction and control of investigative agencies within the Department of Revenue.  It is headed by Shri S.P.S. Pundir, Director General, CEIB, an officer designated as ex-officio Special Secretary to the Government of India.  The CEIB has the following functions:  

(i)       Act as the Secretariat for Economic Intelligence Council (EIC) by

·      providing all necessary support and assistance, including infrastructural support to the EIC in discharge of its functions.  

·       organizing meetings at prescribed intervals  

·       Coordinating the progress of implementation of all decisions taken  by the EIC.

(ii)      To ensure prompt dissemination of intelligence having security implications among the NSCS, IB & R&AW.

(iii)      Coordinate the functioning of Regional Economic Intelligence Councils (REICs).

(iv)      Coordination with Multi Agency Centre (MAC)

(v)       Organize meetings of the Working Group under the chairmanship of Revenue Secretary at prescribed intervals and submit a report to the Chairman of the EIC after every meeting.

5.3     CENTRAL BUREAU OF NARCOTICS  

The Central Bureau of Narcotics is headed by Smt. Jagjit Pavadia, Narcotics Commissioner. He is assisted by three Deputy Narcotics Commissioners, each incharge of the three opium growing States of Rajasthan, Madhya Pradesh and Uttar Pradesh. The Deputy Narcotics Commissioner is assisted by the Asstt. Narcotics Commissioner and District Opium Officers.   

For cultivation of opium, Govt. of India frames an opium licensing policy every year (1^st October – 30^th September).  The policy notifies the poppy cultivation tracts, the guidelines for issuing licences to different categories of cultivators, the area to be cultivated, the minimum expected yield of opium in Kgs./hectare.  Illicit cultivation of poppy is an offence under Section 8 of the N.D.P.S. Act, 1985.  

During the months of February and March, the poppy capsules become ripe for lancing, after which collection of raw opium is made by the cultivators.  All cultivators are required to weigh their daily collection of raw opium which is entered in the preliminary weighment records maintained by the Lambardar.  This operation is conducted under the overall supervision of the staff of the Narcotics Department. Thereafter the opium is delivered at the weighment centres of the Narcotics Department, which also conducts tests for purity of the tendered opium.  The Opium bags are then sent to the Opium Factories at Neemuch in M.P. and Ghazipur in U.P.  

The District Opium Officer, with the assistance of the field and preventive staff, exercises control over cultivation and procurement of opium produced and undertakes preventive checks to prevent diversion of opium into illicit channels.  In addition, there are Preventive Cells located at vulnerable points to undertake such checks.

5.4     GOVT. OPIUM AND ALKALOID WORKS (GOAW)

          The Govt. Opium & Alkaloid Factories (GOAF) are engaged in the processing of raw opium for export purposes and manufacturing opiate alkaloids, through their two factories viz. Govt. Opium & Alkaloid Works (GOAW) at Ghazipur (UP) and Neemuch (M.P.).  The Products manufactured at GOAW are mainly used by pharmaceutical industry of India for preparation of cough syrups, pain relievers and tablets for terminally ill   cancer   patients.     The   two   factories   of GOAW were declared as  Commercial Undertakings in 1970 and are running on commercial basis.  The security aspects of these factories are looked after by the Central Industrial Security Force (CISF), a paramilitary force of the Ministry of Home Affairs.

            The working of the Govt. Opium & Alkaloid Works (GOAW) is administered by a Committee of Management constituted and notified by the Govt. of India in 1970.  The Additional Secretary (Revenue) of the Department of Revenue of Ministry of Finance is the Chairman of the Committee.  An officer of the level of commissioner/Joint Secretary is the Head of the Organisation and designated as Chief Controller of Factories. The present incumbent is Shri Ajesh Kumar. The two factories at Neemuch and Ghazipur are managed by General Managers, who are of the rank of Addl. Commissioner/Director.  

5.5   THE PREVENTION OF ILLICIT TRAFFIC IN NARCOTICC DRUGS AND        PSYCHOTROPIC SUBSTANCES ACT ( PITNDPS) CELL

The Prevention of Illicit Traffic In Narcotics Drugs and Psychotropic Substances Act 1988 (PITNDPS Act) provides for one year's preventive detention under section 3(1) of the Act.  The PITNDPS Cell is headed by the Joint Secretary (COFEPOSA).

 5.6    SETTLEMENT COMMISSION (INCOME TAX/WEALTH TAX) 

          The Settlement Commission was constituted w.e.f. 1.4.1976 under chapter XIX-A of the Income-Tax Act, 1961 and Chapter V-A of the Wealth-tax Act 1957 for settlement of Income-tax and Wealth-tax cases. There are four benches of the Settlement Commission with Principal Bench at New Delhi and Additional Benches at Mumbai, Chennai and Kolkata. 

          The Principal Bench consists of one Chairman and two Members.  The Additional Benches consist of one Vice-Chairman and two Members.  The Chairman is the presiding officer of the Principal Bench and the Vice-Chairmen are the presiding officers of their respective Benches.  

          Each settlement application involves computation of Income and Wealth for a number of assessment years.  

5.7     SETTLEMENT COMMISSION (CUSTOMS & CENTRAL EXCISE)

            Vide Finance (No.2) Act, 1998, Chapter XIVA was inserted in the Customs Act, 1962 and Chapter V in the Central Excise Act, 1944 proposing for settlement of cases under the respective Acts.  Accordingly, the Customs & Central Excise Settlement Commission has been constituted by the Government under notification No.40/99-CX (NT) dated 9.6.99 with its Principal Bench at Delhi.  Three additional Benches of the Commission have been set up at Mumbai, Chennai and Kolkata.  The Principal Bench consists of a Chairman and two Members. The other benches consist of a Vice-Chairman and two Members each.

5.8     AUTHORITY FOR ADVANCE RULINGS FOR INCOME TAX(AAR – IT)

            The Authority for Advance Rulings for Income Tax was set-up with effect from 1st June, 1993 under the provisions of the Finance Act, 1993 with a view to avoid disputes regarding assessments of income-tax liability in respect of non-residents.  The Scheme enables the non-residents to obtain, in advance, binding rulings from the Authority on issues which could arise in the determination of their tax liabilities.

            Although the Authority was initially created to pronounce rulings in respect of non-residents only, its scope was enlarged by way of amendment in the Income Tax Act. The Gazette notification issued on 21.6.1999 specifies the following class of resident taxpayers as applicants for the purpose of Chapter XIX-B of the Income Tax Act :-

(a) public sector company as defined in clause 36(A) of the Income Tax Act.

(b) person seeking advance ruling in relation to the tax liability of a non-resident arising out of a transaction undertaken or proposed to be undertaken by him with a non-resident.

The AAR consists of a Chairman (a retired Judge of the Supreme Court) with two Members of the rank of Additional Secretary to the Government of India.

5.9      AUTHORITY FOR ADVANCE RULINGS FOR CUSTOMS & CENTRAL EXCISE  
            ( AAR – C&CE)

            The Authority for Advance Rulings for Customs & Central Excise was set-up  under the provisions of the Finance Act, 1999 with a view to issue rulings to  facilitate the foreign investors in the liberalised economy in matters pertaining to indirect taxes.  The Scheme enables the investors to obtain, in advance, binding rulings from the Authority on issues which could arise in the determination of their tax liabilities.

            The AAR consists of a Chairman (a retired Judge of the Supreme Court) with two Members of the rank of Additional Secretary to the Government of India.

5.10    CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL(CESTAT)

            The Customs, Excise and Gold Control Appellate Tribunal (CEGAT) was created to provide for an independent forum to hear appeals against the orders and decisions passed by the Commissioners of Customs and Excise under the Customs Act, 1962, Central Excise Act, 1944 and Gold (Control) Act, 1968.  The Gold (Control) Act has since been repealed.  The Tribunal is also empowered to hear appeals against the orders passed by the designated authority with regard to Anti Dumping Duties under the Customs Tariff Act, 1975 and matters relating to Service Tax.  It has now been renamed as Customs, Excise and Service Tax Appellate Tribunal (CESTAT).

 The sanctioned strength of the Members (including President and the two Vice Presidents) is 21. It has three benches in Delhi and four benches in Mumbai and one each at Kolkata, Chennai and Bangalore .  Each bench consists of a Judicial Member and a Technical Member. 

With a view to enable expeditious disposal of small cases, a Bench of a Single Member may deal with the matters not exceeding Rs. 10 lakhs.  Except in the matters relating to classification and valuation of goods, the Tribunal is the final Appellate Authority   though  a  reference  to  the  High  Court  can  be  made on a  question of Law.  An appeal lies against the order of the Tribunal in classification and valuation matters to the Supreme Court.

 5.11   COMPETENT AUTHORITIES UNDER SAFEM(FOP) ACT

          The Smugglers and Foreign Exchange manipulators (Forfeiture of Property) Act, 1976 SAFEM(FOP)A, provides for forfeiture of illegally acquired property of the persons convicted under the Sea Customs Act, 1878, the Customs Act, 1962, The Foreign Exchange Regulation Act, 1947 and the Foreign Exchange Regulation Act, 1973 and the persons detained under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974.  The Narcotic Drugs and Psychotropic Substances Act, 1985 (NDPS Act) provides for tracing, freezing, seizure and forfeiture of illegally acquired property of persons convicted under the Act or any corresponding law of any foreign country and those who are detained under the Prevention of Illicit Traffic in Narcotic Drugs and Psychotropic Substances Act, 1988 and Jammu & Kashmir Prevention of Illicit Traffic in Narcotic Drugs and Psychotropic Substances, Act, 1988.  

          SAFEM (FOP) Act and NDPS Act provide for appointment of Competent Authorities for carrying out forfeiture of illegally acquired property.  Offices of Competent Authority are located at Kolkata, Chennai, Delhi , Lucknow and Mumbai.

  5.12  APPELLATE TRIBUNAL FOR FORFEITED PROPERTY

          SAFEM (FOP) Act and NDPS Act envisage establishment of an appellate forum, namely, the Appellate Tribunal for Forfeited Property to hear appeals against the orders of the Competent Authorities. Accordingly, the said Tribunal was set up in 1977.

The Tribunal hears appeals against orders passed by the officers designated as Competent Authorities forfeiting properties acquired through illegal means by the economic offender himself and detenues under the COFEPOSA or held by the specified relatives/associates on his behalf.  The Tribunal comprises a Chairman and 2 Members.

 II.      CENTRAL BOARD OF DIRECT TAXES (CBDT)

 6.      The Central Board of Revenue, as the Department’s apex body charged with the administration of taxes, came into existence as a result of the Central Board of Revenue Act 1924. Initially, the Board was in charge of both direct and indirect taxes. However, when the administration of taxes became too unwieldy for one Board to handle, the Board was split into two, namely the Central Board of Direct Taxes and the Central Board of Excise and Customs, with effect from 1/1/1964. This bifurcation was brought about by constitution of the two Boards under section 3 of the Central Board of Revenue Act,1963.   The Central Board of Direct Taxes administers the Direct tax Laws of the country. The CBDT is a statutory authority functioning under the Central Board of Revenue Act, 1963.  The field formations of the Income Tax Department are headed by Chief Commissioners of Income Tax / Director Generals of Income Tax

6.1     The CBDT is supported and assisted in its functioning by various Directorates and attached / subordinate offices: some of the important Directorates are:

1. Directorate of Investigation: Conducts searches and carries out investigations in cases of tax evasion.

2. Directorate of Systems: Responsible for computerization of the Department.

3. Directorate of Research, Statistics, Publications and Public Relations: Deals with all public relations, departmental publications and statistical matters.

4. Directorate of Vigilance: Deals with administrative and disciplinary matters of officers of the Department.

5. Directorate of Organization and Management Services: Deals with the organizational structure and procedural guidelines  of the Department.

6. Directorate of International Taxation:  Deals with international taxation issues and assessment of non-resident taxpayers.

The Board is headed by Chairman, Central Board of Direct Taxes. It has a sanctioned strength of six members. The present incumbency position is placed at Annexure III.

 III.                 CENTRAL BOARD OF EXCISE & CUSTOMS (CBEC)

7.       CBEC deals with the tasks of formulation of policy concerning levy  and collection of   customs  and  central  excise  duties,  service  taxes,  policy  relating  to  prevention  of smuggling and evasion of duties and all administrative matters relating to Customs, Central Excise, Service Taxes and Narcotics (to the extent under CBEC purview).  The Board discharges various tasks assigned with the help of field organisations namely Chief Commissionerates of Customs and Central Excise and Commissionerates of Customs and Central Excise having earmarked jurisdictions.  CBEC also ensures that taxes on foreign & inland travel are administered as per law and the collection agencies deposit the taxes collected, to the exchequer promptly.

7.1     In the performance of the administrative and executive functions, the following attached/subordinate offices assist the Board:-

a.      Directorate General of Inspection & Audit

b.      Directorate General of Revenue Intelligence

c.      Director General of Anti-evasion

d.      National Academy of Customs , Excise and Narcotics

e.      Directorate of Organisation & Management Services

f.       Directorate of Statistics and Intelligence

g.      Directorate of Preventive Operations

h.      Directorate of Publicity and Public Relations

i.       Directorate General of Vigilance

j.       Central Revenues Control Laboratory

k.      Directorate of Valuation

l.       Directorate of System and Data Management

m.      Directorate General of Service Tax

  7.2   The Board is headed by Chairman, Central Board of Excise & Customs. It has a sanctioned strength of five Members. The present incumbency position is placed at Annexure IV.

Annexure I

Acts administered by the Department of Revenue  

This Department administers the following Acts: - 

1.           Income Tax Act, 1961;

2.           Wealth Tax Act, 1958;

3.           Gift Tax Act, 1958;  

4.           Interest Tax Act, 1974;

5.           Expenditure Tax Act, 1987;

6.           Benami Transactions (Prohibition) Act, 1988;

7.           Estate Duty Act, 1953;

8.           Hotel Receipts Tax Act, 1980;

9.           Central Excise Act, 1944 and related matters;

10.           Customs Act, 1962 and other related matters;

11.           Central Sales Tax Act, 1956;

12.           Narcotic Dugs and Psychotropic Substances Act, 1985;

13.           Prevention of Illicit Trafficking in Narcotic Drugs and Psychotropic 
              Substances Act, 1988;

14.           Smugglers and Foreign Exchange Manipulators (Forfeiture of
              Property) Act, 1976;

15.           Indian Stamps Act, 1899 (to the extent falling within jurisdiction
              of the Union );

16.           Conservation of Foreign Exchange and Prevention of Smuggling
              Activities Act, 1974; and

17.           Foreign Exchange Management Act, 1999

18.           Prevention of Money Laundering Act, 2002

The administration of the Acts mentioned at Sl.No.III, IV, V and VII above is limited to cases pertaining to the period when these laws were in force.

          The matters relating to the above-mentioned Acts are handled by Revenue Headquarters, CBEC, CBDT and the various attached/subordinate field offices.