Mamata Banerjee's govt creates own DRI and ED

Kolkata: In another case where the state government has created an institution parallel to a central government-run one, West Bengal Chief Minister Mamata Banerjee has created her own Directorate of Revenue Intelligence and Enforcement (DRI&E). This will run parallel to the Centre’s DRI and Enforcement Directorate and probe tax evasion cases, according to a government order, a copy of which is with ET.
A government notification, dated February 12, stated that the government had, for long, been considering a rejig of “the indirect tax administration of the state to counter revenue leakage and tax evasion through intensive and broadbased investigation”. The government also wants to focus on “enforcement with a multi-faceted approach”. The state government has created a “new Directorate of Revenue Intelligence and Enforcement (DRI&E) under the Finance Department for comprehensive approach for investigation and enforcement of tax laws for tackling the menace of tax evasion and leakage of state revenue in a more efficient and effective manner,” the notification states. Its functions include investigation of cases of tax evasion and undertaking enforcement measures for the Acts administered mainly by the Directorate of Commercial Taxes, Directorate of Excise, Directorate of Registration and Stamp Revenue and Directorate of State Lotteries.

The state DRI&E can investigate cases based on its own information and also cases referred to it by other revenue directorates or by the state government.

It will send reports of the investigation to the respective revenue authorities for follow-up measures; share and exchange revenue intelligence-related information with the revenue directorates of the state and also act as a nodal agency for prosecution for offences under the relevant tax laws.

The directorate can also conduct inquiries for the purpose of vigilance over government employees of the Revenue Directorates if there are allegations of malpractices involving tax evasion, analyses of tax evasion patterns and suggest appropriate remedial, legal and procedural measures, including that for systematic improvements in IT systems, to the state government. It can also “perform such other functions as may be specifically required by the state government.” The directorate will be headed by the Director of Revenue Intelligence and Enforcement, an officer of IAS cadre, and will have jurisdiction throughout West Bengal. Cases might be registered under the state government Acts, including West Bengal Goods and Services Tax Act, 2017; West Bengal Value Added Tax Act, 2003; The West Bengal Sales Tax Act, 1994; The West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979 and six other Acts. The directorate will have at least seven wings such as administrative, investigation, prosecution, cyber forensic laboratory, vigilance and others.