Penalty Proceedings against Central Government Employees…

The below information is tabled to a question in Lok Sabha on 9th July 2014 by the Minister of State for Personnel, Public Grievances and Pensions as follows…

 Article 311(1) of the Constitution provides that no person who is a member of the civil service of the Union or an all-India service or a civil service of a State or holds a civil post under the Union or a State shall be dismissed or removed by an authority subordinate to that by which he was appointed. Again as per Article 311(2) no such person as aforesaid shall be dismissed or removed or reduced in rank except after an inquiry in which he has been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges.

 Disciplinary proceedings under the Central Civil Services (Classification, Control and Appeal) Rules, 1965 [CCS(CCA)Rules, 1965] can be initiated against a Government Servant for violation of the provisions of the Central Civil Services (Conduct) Rul\1964. The procedures for imposition of major penalties minor penalties are prescribed in the Rule 14 and Rule 16 of the [CCS(CCA)Rules, 1965], respectively. There are similar provisions in Rules governing the All India Services.

 A list of Minor and Major penalties that may be imposed on a Government servant for good and sufficient reasons as provided in Rule 11 of CCS (CCA) Rules is annexed.

 The data on cases registered involving major penalty proceedings and punishment awarded on conviction are not centrally maintained. It is the endeavour of the Government to strengthen and streamline the institutional mechanism for disciplinary proceedings.In order to check delays in completion of disciplinary proceedings, guidelines for monitoring and expeditious disposal of the disciplinary proceedings cases have been issued on 29th November, 2012.




(i) Censure;

 (ii) Withholding of his promotion;

(iii) Recovery from his pay of the whole or part of any pecuniary loss caused the Government by negligence or breach of orders;

 (iii a) Reduction to a lower stage in the time-scale of pay by one stage for a period not exceeding three years, without cumulative effect and not adversely affecting his pension.

 (iv) Withholding of increments of pay;


 (v) Save as provided for in clause (iii) (a), reduction to a lower stage in the time-scale of pay for a specified period, with further directions as to whether or not the Government servant will earn increments of pay during the period of such reduction and whether on the expiry of such period, the reduction will or will not have the effect of postponing the future increments of his pay

 (vi) reduction to lower time-scale of pay, grade, post or Service for a period to be specified in the order of penalty, which shall be a bar to the promotion of the Government servant during such specified period to the time-scale of pay, grade, post or Service from which he was reduced, with direction as to whether or not, on promotion on the expiry of the said specified period -

 (a) the period of reduction to time-scale of pay, grade, post or service shall operate to postpone future increments of his pay, and if so, to what extent;


(b) the Government servant shall regain his original seniority in the higher time scale of pay , grade, post or service;

 (vii) Compulsory retirement;

 (viii) Removal from service which shall not be a disqualification for future employment under the Government;

 (ix) Dismissal from service which shall ordinarily be a disqualification for future employment under the Government.

 Provided that, in every case in which the charge of possession of assets disproportionate to known-source of income or the charge of acceptance from any person of any gratification, other than legal remuneration, as a motive or reward for doing or forbearing to do any official act is established, the penalty mentioned in clause (viii) or clause (ix) shall be imposed:

 Provided further that in any exceptional case and for special reasons recorded in writing, any other penalty may be imposed


Comprehensive GST regime a reality by year end – Revenue Secretary

The Centre is working towards making a comprehensive GST regime a reality by the end of the year, Revenue Secretary Shri Shaktikanita Das said in New Delhi on Monday. Efforts are underway to resolve the contentious issues of entry tax on petroleum and tobacco and arrive at a consensus on compensation to States, Mr. Das said. 

The clarification assumes significance as a major criticism of the Union budget that the Modi government presented in Parliament last week was its silence on a possible time line for the introduction of GST. 

The Hindu.

Advisory to Tax Payers Against Phishing Mails

Press Information Bureau

Government of India
Ministry of Finance 

Information has been received from several quarters that emails are being received by taxpayers claiming to be sent by the Income Tax Department asking the taxpayers to download file containing payable tax details. Such phishing mails are being sent from email addresses like “incometaxindia.gov.india@gmail.com”.

It is clarified that the Income Tax Department does not send any communication from private email addresses such as gmail, yahoo etc. Taxpayers are cautioned that they should not respond to such phishing mails and avoid downloading any attachment , which may contain virus or malicious software.

Taxpayers are advised to visit “Report Phishing” button on National Website of Income Tax Department i.e. www.incometaxindia.gov.in in case they receive such phishing mails.


New Holiday Home at Tirupati for Central Government Employees – Rates under Category C will be applicable for Tirupati Holiday Home


No. D-11016/3/2009-Regions

Government of India

Ministry of Urban Development

Directorate of Estates

Nirman Bhawan, New Delhi

Dated 01-07-2014

Office Memorandum

Subject: Opening of holiday home at Tirupati.

Construction of holiday home at Tirupati has been completed and it has been decided to commence the booking of holiday home at Tirupati with immediate effect. Address of holidayhome is D. No. 4-7-29/2, TUDA Apartments Complex, Near I.S. Mahal Threater, Nrisimha Teertham Road, Tirupati-517507. Tele/Telefax No. is 0877 2262211.

Further, as per existing categories, holiday home at Tirupati comes under Category ‘C’ and accordingly, rates of booking will be charged.

2. NIC is requested to upload this office memorandum on the website of holiday homes i.e. www.holidayhomes.nic.in.


(NS. Chauhan)

Assistant Director of Estates (Regions)

Rates of booking as per existing categories, holiday home at Tirupati under Category ‘C’ .

Room / Suite

Member of Parliament (For their own stay)

Category of applicants / Visitors






Central Govt. employee (serving / retired)

Employees of StateGovt. /UTs / Central or State PSU /Autonomous Bodies /Others (serving / Retired)

Private Persons accompanying as guests o fMPs /Govt. employees


Rs. 150

Rs. 450

Rs. 900

Rs. 1,350

Double/Three bedded AC

Rs. 150

Rs. 180

Rs. 330

Rs. 480

Double/Three beddedNon-AC

Rs. 150

Rs. 150

Rs. 300

Rs. 450

Four bedded AC

Rs. 150

Rs. 230

Rs. 430

Rs. 630

Four bedded Non-AC

Rs. 150

Rs. 200

Rs. 400

Rs. 600

Dormitory(per bed)

Rs. 150

Rs. 50

Rs. 100

Rs. 100



DOPT rejects 6-day week schedule amid protests from women


The Department of Personnel and Training (DoPT) will soon inform Parliament that the government is not going back to a six-day week for its employees, even as a senior representative of the central government employees said that women employees were biggest opponents of any such change by the new government.

A senior DoPT official told ET on Tuesday that all individual ministries would be advised that before they ask employees to come to work on Saturdays, they were expected to first consult the Joint Consultative Machinery set up in each ministry which has representatives from the staff side before implementing the same. There was confusion among government ranks last week after the road ministry issued an order asking employees to report to work on all Saturdays except the second. The same was apparently withdrawn after women employees in the ministry took it up with transport minister Nitin Gadkari.

Employees in many other ministries have also been asked informally to report to work on Saturdays in case senior officials or the respective minister is in office. ET has learnt that DoPT will soon inform Parliament that the government would continue to work 5-days-a-week to end all speculation on this as it has received questions on the same from MPs.

Shiva Gopal Mishra, Secretary (staff side) of the National Council, JCM, told ET that “no government ministry can enforce six-day week on employees without the concurrence of the DoPT. “Not just DoPT’s concurrence, the government also needs to consult employees on the same through the JCM mechanism.

There will be no use of going back to a six-day week system as it will only raise electricity costs of the government. Also, women employees form a sizeable proportion of the workforce and they are strongly against any move to resort to a six-day week,” Mishra, who is also general secretary, All India Railwaymen’s Federation, told ET.

Most women employees use the weekend for pending household chores. The JCM, chaired by the Cabinet Secretary, is a joint group of various staff unions of central government employees supposed to act as a platform for constructive dialogue between the representatives of the staff side and the official side for peaceful resolution of all disputes.

Source: http://timesofindia.indiatimes.com/india/Department-of-personnel-and-training-rejects-6-day-week-schedule-amid-protests-from-women/articleshow/38063908.cms

Budget Blues


I.                   CBEC  PROJECTED COLLECTIONS for the financial year 2014-15:

1.      Service Tax  : Rs. 2,15,973  crore

2.      Central excise:  Rs. 2,06,356 crore

3.      Customs Duty:  Rs, 2,01,819       crore

So from this financial year onwards, service tax collection is projected to exceed customs and excise duties.

Out of the governments proposed gross tax revenue of Rs. 13,64,524 crore for the current fiscal, the revenue from CBEC is expected to be around Rs.6,24,902 crores i.e. around 45%

II.                Individual Income Tax Rates:


1.      Exemption limit has been increased to Rs. 2.5. lakh from the present Rs. 2 lakhs and for senior citizens from Rs. 2.5 lakh to Rs. 3 lakh

2.      Section 80C deuction has been increased from Rs. 1 lakhs to Rs. 1.5 lakh

3.      Interest on Housing Loan has been increased from Rs. 1.5 lakh to Rs. 2 lakhs.

4.      Annual limit for investment under PPF is increased from Rs. 1 lakh to Rs. 1.5 lakh


III.             Important changes in Central Excise and Service Tax:

1.      Rule 4(1) (for input credit) and Rule 4(7) (for input service credit) of CCR,2004 are being amended in order to fix a time limit of six months for availment of the CENVAT Credit.

2.      CE valuation Rules are amended to provide that in cases where excisable goods are sold at a price below the manufacturing cost and there is no additional consideration flowing from the buyer to the seller directly or from a third person on behalf of the buyer, this price shall be the assessable value thus negating the Hon’ble Supreme Courts judgement in FIAT India Pvt. Ltd.

3.      Section 35F of CEA is proposed to be replaced to make it mandatory to pay Pre-deposit of 7.5% of tax or penalty or both for first appeal and 10%  CESTAT,

4.      Baggage allowance is increased from Rs 35K to Rs. 45K.

5.      Incremental interest rates for delayed payment of service tax for first six months 18%, above 6 months but upto 12 months 24% and above one year 30%.

6.      Service tax credit of service tax paid on hire a car is allowed.

7.      Extension of service on advertisement on  sale of slots or space online, theatres, mobile etc., is taxable

8.      The concept of auxiliary educational services is omitted and a new list of exempted services received by eligible educational institutions is introduced and renting of immovable property for educational institutions may henceforth be taxable.

9.      SEZ units should obtain Form A-2 containing list of exempted services from excise officers within 15 days from submission of A-1 and if it is not issued within 15 days, authorization shall be deemed to be valid from date of application in A-1. However, if authorization is not given to service providers within three months by SEZ unit, service tax shall become payable.

10.  In certain cases, the benefit of waiver of penalty which was earlier available for bona fide cases is now removed.

Government clears expansion of DGCEI across the country

The FM has cleared creation of new intelligence units across the country and appointment of over 8000 personnel to check any leakage in its earnings from the indirect tax. Anticipating increase in service tax revenue, the ministry  has also decided to restructure DGCEI – a body tasked with checking excise duty and service tax evasion, official sourses said.

 There will be three more zonal units of the DGCEI in Lucknow, Bhopal and Hyderabad. These three zonal units will have three regional units each as well, they said. “The government has approved total nine zonal units and 27 regional units of the DGCEI to check leakage of excise duty and service tax evasion” a Finance Ministry official said.  At present DGCEI has six zonal units and 18 regional units.

 The move has come in the wake of the government witnessing a growth in the service sector and increase in the service sector and increase in the number of taxable services. Although service tax has shown tremendous potential as an area of tax collection, it still remains a largely untapped and unexplored sector. The contribution of service tax to the gross tax revenue at a mere 13 percent is not commensurate with the contribution of service sector to the DDP of our country which was more than 60 per cent in the last financial year. It is, therefore, essential to provide more manpower for service tax related matters”, according to a intra-ministry communication on the issue.

 It is pertinent to mention that strengthening and expansion of the existing DGCEI formations is a better solution, in the long run, to effectively curb the ever increasing menace of central excise duty and service tax evasion than bifurcating it into two, the communication said. The DGCEI has, over the period of time, developed requisite expertise in cultivation and nurturing of a credible informer base and therefore enjoys an edge in gathering information, developing them into actionable intelligence and investigating cases of service tax evasion leading to recovery of government dues, it said. 

 The DGCEI , as the apex intelligence organization as far as central excise duty and service tax evasion matters are concerned, is well known and trusted by the informers. “Informers, who work on trust, may not start giving information to a newly created intelligence organisaition from day one, thereby creating a kind of vacuum,”, the communication reads.

 The DGCEI has detected RS. 8,000 crore of service tax evasion during 2013-14. According to a Finance Ministry data, there has been an increase of over 300 times in revenue collection from service tax in the past two decades. The ministry had collected RS. 1.32 lakh crore as service tax revenue during 2012-13 as against Rs. 407 crore in 1994-95 it said.

 Source: zeenews.india.com



Board issues transers and postings order in Chief Commissioner cadre

Chief Commissioner of Hyderabad Zone Shri B.B.Prasad has been transferred as CC-Customs, Mumbai-II after rendering yeoman service in Hyderabad Zone as CC for the past two years.

Shri B.B.Prasad has got the distinction of serving in Hyderabad for nearly ten years  during the last twenty three years in different capacities as Asst/Dy Collector, Commissioner and Chief Commissioner.

We place on record Shri B.B.Prasad Sirs contribution to the betterment of welfare and service conditions of staff and for his administrative capabilities. While wishing him all the best in his new assignment to the prestigious post, we  do hope that Shri B.B.Prasad Sir will continue to see his career growth in the days to come.

We also welcome Ms.R.Shakunthala as new Chief Commissioner of Hyderabad Zone. It is wonderful to see a local Officer taking over as Hyderabad Zone CC.



DA from 1st July estimated to be 107%

DA from July 2014 estimated to be 107% – Dearness Allowance with effect from July 2014 can be fixed at 106% only if AICPIN decreases to the tune of 2 points or more which is unlikely

We have All India Consumer Price Index for the months of July 2013 to May 2014 declared officially by Labour Bureau. As GConnect predicted in the month of April 2014 (Scenario 1), the likely DA from July 2014 payable to all Central Government Employees and Pensioners is estimated to be 107%, viz., an increase of 7% from the present DA of 100%.

 This estimation is based on the presumption that AICPI (IW) / AICPIN for the month of June 2014 is either unchanged (compared to CPI for the month of May 2014 which is 244) or there is one point decrease viz., AICPI (IW) at 243.


ICT Orders of Superintendents of Hyderabad Zone