4. Tax Administration :
4.1 The issue of tax administration springs up frequently and is also engaging the attention of the Commission.
4.2 The question of mechanics of tax administration is a management issue. Prime attention has to be given for the positive principles in Administrative Law. The dangers of administrative law : denial of liberty, excessive delegation of authority, absence of justice in law, and weaknesses in administration put people into inconvenience . The citizen has little scope for redressal. Government regulations do not eliminate potentially dishonest individuals, but merely make their activities harder to detect or easier to hush up. Furthermore, the possibility of individual dishonesty applies to government employees fully as much as to any other group of men. There is nothing to guarantee the superior judgment, knowledge, and integrity of an inspector or a bureaucrat-and the deadly consequences of entrusting him with arbitrary power are obvious. - - Alan Greenspan THE ASSAULT ON INTEGRITY
4.3 It is necessary that policy and law should be separated from the Department of Commercial Taxes or any other department that administers tax.
4.4 The Finance and revenue ministries must take care of public interest in the matter of taxation or its administration. Therefore, policy and law should not be under the purview of the administrative machinery. Unfortunately, the ministry relies heavily on the administrative machinery for Policy and Law
4.5 In addition to administration, when administrative machinery is entrusted with policy and law functions, as also the functions of administration of justice, then there is a conflict of interest. A revenue bias and a departmental bias gets generated. The citizen is hapless and does not have a forum or a fair and unbiased Government to express an opinion, to present the deleterious effects of clauses or address a particular grievance against the administrative department. This needs to be addressed to.
4.6 There needs to be a system of administration of justice in a systematic and time bound manner. Commercial activity in this fast moving world depends on the criteria of certainty. When a dispute arises an element of uncertainty creeps in. The Commercial world cannot be efficient if there are disputes and even if there are indefinite delays in the administration of justice. Therefore, justice system should be separated from the department.