Employment Background and Responsibilities
I was employed in a private company since November 2016 as Manager of Commercial & Logistics, responsible for availing input tax credit on purchases of raw materials used in manufacturing. This function was to be performed on ERP (SAP), which I was unfamiliar with, and no formal training was provided. In fact, the software was only accessible to me three months after joining. To fulfill my duties, I sought help from colleagues and filed the statutory returns. These returns were shared with higher-ups for review, but since no feedback was received, it was assumed that the returns were correct.
Show Cause Notice and Initial Response
In January 2019, after an 18-month gap, I received a show cause notice based on my manager's observations, stating that irregularities in the statutory returns led to a company loss of 11.57 lakhs. I responded to this notice and was called for a discussion. Surprisingly, the members present were neither my accusing manager nor the HR AGM who issued the notice.
Explanation of the Issue
During the discussion, I explained that the issue arose due to a software glitch, even though I correctly captured the input tax credit. I had entered the document number generated by the system on the hard copy and marked it as "CENVAT CAPTURED." However, an error in the June 2017 monthly report led to the omission of the captured amount. I mentioned that the omitted amount would be refunded by the department, but they claimed rectification was not possible due to GST implementation.
Complexity of GST Transition
I pointed out that the GST transition was complex, with the department allowing multiple opportunities to correct mistakes, including a window until January 31, 2019. They responded by stating the company did not intend to claim the money, questioning the validity of the show cause notice. Subsequently, they highlighted minor procedural lapses (not part of the notice) and pressured me to resign, threatening termination and withholding of my settlement if I refused.
Forced Resignation and Current Status
After I left for the washroom, they took my laptop and drafted a resignation letter on my behalf. Upon discovering this, I retracted the resignation, but they insisted it had been accepted, and my settlement was being processed. Now, a notice of inquiry has been sent, stating that I am under suspension.
Please advise.
From India, Bangalore
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I was employed in a private company since November 2016 as Manager of Commercial & Logistics, responsible for availing input tax credit on purchases of raw materials used in manufacturing. This function was to be performed on ERP (SAP), which I was unfamiliar with, and no formal training was provided. In fact, the software was only accessible to me three months after joining. To fulfill my duties, I sought help from colleagues and filed the statutory returns. These returns were shared with higher-ups for review, but since no feedback was received, it was assumed that the returns were correct.
Show Cause Notice and Initial Response
In January 2019, after an 18-month gap, I received a show cause notice based on my manager's observations, stating that irregularities in the statutory returns led to a company loss of 11.57 lakhs. I responded to this notice and was called for a discussion. Surprisingly, the members present were neither my accusing manager nor the HR AGM who issued the notice.
Explanation of the Issue
During the discussion, I explained that the issue arose due to a software glitch, even though I correctly captured the input tax credit. I had entered the document number generated by the system on the hard copy and marked it as "CENVAT CAPTURED." However, an error in the June 2017 monthly report led to the omission of the captured amount. I mentioned that the omitted amount would be refunded by the department, but they claimed rectification was not possible due to GST implementation.
Complexity of GST Transition
I pointed out that the GST transition was complex, with the department allowing multiple opportunities to correct mistakes, including a window until January 31, 2019. They responded by stating the company did not intend to claim the money, questioning the validity of the show cause notice. Subsequently, they highlighted minor procedural lapses (not part of the notice) and pressured me to resign, threatening termination and withholding of my settlement if I refused.
Forced Resignation and Current Status
After I left for the washroom, they took my laptop and drafted a resignation letter on my behalf. Upon discovering this, I retracted the resignation, but they insisted it had been accepted, and my settlement was being processed. Now, a notice of inquiry has been sent, stating that I am under suspension.
Please advise.
From India, Bangalore
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Hi Natraj,
Was the said notice issued through emails or hard copy? Did you sign it and receive it? The whole matter described has become very complicated with nitty-gritty sequence. Are you receiving ‘subsistence allowance’ since the date of suspension imposed by your company? Since it is a manufacturing unit, possibly a ‘factory,’ you have to consult an advocate well-versed in labor-IR cases and take his advice to act upon to safeguard your interest. You need to have documents to defend yourself.
From India, Bangalore
Acknowledge(0)Amend(0)
1159Was the said notice issued through emails or hard copy? Did you sign it and receive it? The whole matter described has become very complicated with nitty-gritty sequence. Are you receiving ‘subsistence allowance’ since the date of suspension imposed by your company? Since it is a manufacturing unit, possibly a ‘factory,’ you have to consult an advocate well-versed in labor-IR cases and take his advice to act upon to safeguard your interest. You need to have documents to defend yourself.
From India, Bangalore
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