International Journal of Goods and Service Tax Volume 1 Issue 1 Article: 00006 Website: http://www.gstjournal.

in

ACES PROVING MORE MANUAL THAN AUTOMATION

Dhirendra Kumar Journalist, Print Media E-mail: intjournalgst@gmail.com
ACES (Automation of Central Excise and Service Tax) is a centralised, web based software application which is connected through MPLS (*Multiprotocol Label Switching ) network which automates various processes of central excise and service tax and gives complete end to end solution under various modules. Any assessee can register with the Department online, can file online returns, claims, permissions & intimations. The system tracks its status and the assessee gets online messages. It has been implemented by the Central Board of Excise and Customs with certain objectives which include transparency and effective indirect tax administration in India. Technology Advisory Group on Unique Projects headed by Shri Nandan Nilekani has recommended to integrate the existing ACES project with the upcoming GST model. It has been advised for in-depth study of the reusability of various existing modules and functions in ACES. The limitation and other challenges faced in implementing ACES have to be considered for better strategy and introduction of GST project. Comptroller and Auditor General (CAG), Government of India in its audit Report No. -25 of 201112 for the period ended March 2011 which is related to Performance Audit of Taxes Central Excise and Service Tax has come-up with certain remarks regarding functionality and utility of ACES. It was pointed out that out of the 196 test checked ranges where ACES was implemented, there were functional problems in 112 ranges i.e., ACES was not functioning in nearly 60% of ranges. Major Problems for none functioning of ACES as mentioned in the audit report are as follows: 3. Surrender of Certificate ACES system was not generating any MIS (Management Information Systems ) reports related to surrendered registrations. Scrutiny of Returns Again ACES was not generating MIS Reports of returns submitted with delay and statement of assessees who had delayed the payment of duty. Any report showing list of non-filers was not being generated by ACES.

4.

Recommendation Based on the above shortcoming and limitation CAG has recommended following steps to be taken: 1. As a long term measure, the Board may identify sources from where information can be imported electronically into ACES, to form an intelligence gathering system on potential taxpayers. MIS reports may be designed in ACES in the format of the Audit Plan Registers to monitor whether all planned units had been audited and whether audit reports had been issued timely.

2.

3.

The department may monitor the time taken for post facto verification of registration applications. Appropriate MIS report may be generated in ACES.

4.

1. 2. 3. 4. 5. 6.

Lack of infrastructure including absence of power backup Non-allotment of user-id and password Frequent link failure Slow system response time Power supply of insufficient capacity Non-installation of hardware

Technical Problem 1. Lack of integration of Intergovernmental and interdepartmental Database in ACES There is no such module in ACES through which the information can be imported electronically from the database of other Government departments or agencies. Delay in Registration ACES was not generating a report showing the date of forwarding the duplicate copy of the application from the division to the range for post facto verification and date of receipt of verification report, which would enable the divisions to monitor delays.

*Multiprotocol Label Switching (MPLS) is a mechanism in highperformance telecommunications networks that directs data from one network node to the next based on short path labels rather than long network addresses, avoiding complex lookups in a routing table. The labels identify virtual links (paths) between distant nodes rather than endpoints. MPLS can encapsulate packets of various network protocols

2.

This article is based upon the CAG Audit Report, detailed report can be downloaded from http://www.cag.gov.in