WINDING UP OF LARGE TAX PAYER UNITS

The first LTU was established at Bangalore in 2006 followed by Chennai, Mumbai, Kolkata.   LTU functioned as self contained tax administration offices under the Department of Revenue, acting as a single window clearance points for all matters relating to central excise, service tax, income tax.  It aimed at reducing tax compliance, cost and delays and bringing about uniformity in the matters of tax/duty determination.   Eligible tax payers who opt for assessment in LTU shall be able to file their excise return, direct tax returns and service tax return at such LTUs and for all practical purposes will be assessed to these taxes there under.  These units are being equipped with modern facilities and trained manpower to assist the tax payers in all matters relating direct and indirect tax/duty payments, filing of documents and returns, claim of rebates/refunds, settlement of disputes etc.,

Vide Circular No. 1056/05/2017-CX, dated 29.06.2017 the Board indicated that it is proposed to wind up large tax payer units in the new GST regime which was implemented with effect from 01.07.2017.   The concept of state wise registration which is applicable for GST is the cause shown for the winding up of LTUs.

For this purpose the Board issued various directions to these Large Tax Payer units to address the issues relating to transition-

• The Chief Commissioners of LTUs may issue directions for transfer of files to the new formations;
• A committeeconsisting of Deputy/Assistant Commissioner, Superintendents and Inspectors may be constituted;
• The Committee shall have the effective monitoring of the movement and smooth transfer of the files to the new GST Commissionerates;
• The Committeemay make a list of files relating to not only the assessees but also other files dealt with by different sections in the LTU Commissionerates so that a view can be taken in the new Commissionerate regarding these files;
• Each file may be affixed with a sticker as per the following format-

• Common Adjudicating Authority shall be appointed for show cause notices issued by LTUs;
• Immediate adjudication of pending show cause notices issued on central excise and service tax matters;
• The cases pending adjudication will be sent to the proposed jurisdictional CGDT Commissionerates for adjudication;
• If in central excise also a common show cause notice has been issued to a company for a number of its units, the adjudication of the legacy notice may be taken up by the re-organized CGST/Central Excise Commissionerate exercising control over the principal business location of the company which was earlier registered under LTU by appointing him as common adjudicating authority through an order of Board of DCGEI;
• Proposal in this regard may be forwarded to the Board;
• The show cause notices issued to the assessees having centralized registration is concerned, the jurisdictional authority in the re-organized CGST/Central Excise Commissionerate exercising control over the business location which had taken centralized registration may take up the adjudication of the legacy notice irrespective of the fact that show cause notice issued toa particular location or to multiple locations covered under such centralized registrations after his appointment as common adjudicating authority;
• Proposal for appointment of common adjudicating authority may be forwarded to the Board;
• Show cause notice in future shall be issued for the past period under central excise and service tax law treating each unit as individual assessee under the jurisdictional Commissionerate as notified by Notification No.13/2017-CE (NT), dated 09.06.2017;
• The files relating to cases pending in CESTAT spread all over India may be transferred to the respective jurisdictional GST Commissionerate;
• The cases pending before High Court/Supreme Court may be transferred to the respective jurisdictional Commissionerate of each units;
• A legal cell may be created and named as LBU (Large Business Unit) in any one GST/Central Excise Commissionerate in the zone where the LTU was situated, which will co-ordinate with the jurisdictional Commissionerates in handling the cases for ease of continuity of interaction with the Departmental Counsel to ensure all legal steps are completed including the change in appellant or the respondent if any;
• The assessees who were earlier audited by the LTU Audit Commissionerate will now be audited by the respective audit Commissionerate having territorial jurisdiction over the assessee;
• The show cause notices issued by the Audit Commissionerate but answerable to the proper officer of the Executive Commissionerate of LTU may be adjudicated by the proper officer of the respective Executive Commissionerates having jurisdictions over the assessees;
• They may issue corrigendum to such show cause notices making them answerable to the proper officer of that Commissionerate;
• For adjudication of show cause notices issued by the LTU Audit Commissionerates the above said principle has to be followed;
• All the files relating to technical/planning sections can be preserved by any nominated CGST Commissionerate as nominated by the local Chief Commissioner for the required period;
• Special Audit files may be transferred to the territorial jurisdictional Audit Commissionerate post GST;
• Further necessary orders, if any, for smooth roll-out may be issued by the Chief Commissioner concerned.

Thus the LTUs which were much helpful for large tax payers in the metro cities will be winding up on the implementation of GST.