7/27/2019 Aces Proving More Manual Than Automation

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International Journal of Goods and Service Tax

Volume 1 Issue 1 Article: 00006

Website: http://www.gstjournal.in

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

ACES PROVING MORE MANUAL THAN AUTOMATIONDhirendra Kumar

Journalist, Print Media

E-mail: intjournalgst@gmail.com

ACES (Automation of Central Excise andService Tax) is a centralised, web based softwareapplication which is connected through MPLS

(*Multiprotocol Label Switching ) network which

automates various processes of central excise and servicetax and gives complete end to end solution under variousmodules. 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 theCentral Board of Excise and Customs with certain

objectives which include transparency and effectiveindirect tax administration in India. TechnologyAdvisory Group on Unique Projects headed by Shri

Nandan Nilekani has recommended to integrate theexisting ACES project with the upcoming GST model. Ithas been advised for in-depth study of the reusability ofvarious existing modules and functions in ACES. Thelimitation and other challenges faced in implementingACES 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 2011-12 for the period ended March 2011 which is related to

Performance Audit of Taxes Central Excise andService Tax has come-up with certain remarks regardingfunctionality 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 112ranges i.e., ACES was not functioning in nearly 60% ofranges.

Major Problems for none functioning of ACES as

mentioned in the audit report are as follows:

1. Lack of infrastructure including absence ofpower backup

2. Non-allotment of user-id and password3. Frequent link failure4. Slow system response time5. Power supply of insufficient capacity6.

Non-installation of hardware

Technical Problem

1. Lack of integration of Intergovernmental andinterdepartmental Database in ACESThere is no such module in ACES through

which the information can be importedelectronically from the database of otherGovernment departments or agencies.

2. Delay in RegistrationACES was not generating a report showing thedate of forwarding the duplicate copy of theapplication from the division to the range for

post facto verification and date of receipt ofverification report, which would enable thedivisions to monitor delays.

3. Surrender of CertificateACES system was not generating any MIS(Management Information Systems ) reports

related to surrendered registrations.

4. Scrutiny of ReturnsAgain ACES was not generating MIS Reports

of returns submitted with delay and statementof assessees who had delayed the payment of

duty. Any report showing list of non-filers wasnot being generated by ACES.

Recommendation

Based on the above shortcoming and limitation CAG hasrecommended following steps to be taken:

1. As a long term measure, the Board mayidentify sources from where information can beimported electronically into ACES, to form an

intelligence gathering system on potential

taxpayers.

2. MIS reports may be designed in ACES in theformat of the Audit Plan Registers to monitorwhether all planned units had been audited andwhether audit reports had been issued timely.

3. The department may monitor the time taken forpost facto verification of registrationapplications.

4. Appropriate MIS report may be generated inACES.

*Multiprotocol Label Switching

(MPLS) is a mechanism in high-

performance telecommunicationsnetworks that directs data from one

network node to the next based onshort path labels rather than long

network addresses, avoiding complex

lookups in a routing table. The labels

identify virtual links (paths) betweendistant nodes rather than endpoints.

MPLS can encapsulate packets of

various network protocols