Keep interest of economy before revenue in tax notices: Revenue secy

New Delhi, Dec 4, 2024 

Revenue Secretary Sanjay Malhotra on Wednesday asked officers to nab the masterminds behind smuggling rackets, but keep the interest of the economy in mind before issuing high-pitched notices in commercial fraud cases.

Addressing the 67th foundation day of the Directorate of Revenue Intelligence (DRI), Malhotra also said it is vital for the department to upgrade skills and manpower to adapt to the technology changes.

He urged the officers to focus energy on big fish and masterminds and bust syndicates in smuggling operations.

However, Malhotra added that the officers have to be "very careful" while taking action against traders or businesses involved in potential commercial fraud cases.

During 2023-24,I has detected duty evasion through misclassification and misdeclaration of goods, worth Rs 10,000 crore.

He said there could be a technical nature of some tax demands and classification disputes rampant across the industry on some goods, which could lead to a very high-pitched demand notices.

"We are here not only for revenue, we are here for the whole economy of the country, so if in the process of garnering some small revenue, we are hurting the whole industry or the economy of the county, it is certainly not the intent.

"Revenue comes in only when there is some income, so we have to be very cautious so that we do not in the process, as they say, kill the golden goose," Malhotra said.

He urges the officers ofI and customs to keep the interest of the economy before the interest of revenue while issuing tax notices.

[Press Trust of India]