Comptroller and Auditor General of India (CAG) has found various anomalies like irregular exemption and non-levy of taxes involving monetary implication to the tune of Rs 1,161.79 crore during 2012-13 in the revenue department of Assam government.
As per the CAG's report for the financial year which ended on March 31, 2013, Government of Assam (Revenue Sector) tabled in the Assam Legislative Assembly today different cases related to "non-short levy of taxes/duties, interest and penalty etc, loss of revenue, irregular exemption and other irregularities" were found.
The report also contained a performance audit on 'Receipts under State Excise'.
"The above cases involve monetary implication of Rs 1,161.79 crore," the CAG said.
The report said total receipts of the state in 2012-13 was Rs 30,690.98 crore against Rs 27,455.39 crore in the previous fiscal. Of this, 35 per cent was raised by Assam as tax and non-tax revenue, while the rest came from the Centre in the form of the state's share of net proceeds of divisible Union taxes ad grants-in-aid.
"Failure of senior officials to ensure timely replies and accountability resulted in non-settlement of 3,211 paragraphs involving revenue implication of Rs 1,299.15 crore at the end of June 2013," the report pointed out. The CAG said excess allowance of remission to industrial units resulted in non-realisation of tax and interest of Rs 11.76 crore in FY'13.
The government also had to forego a revenue of Rs 7.3 crore due to non-execution of conveyance deeds between landowners and developers, it added.
On excise duty, the CAG said "Cross verification of records revealed that 9.45 lakh bulk litres of extra neutral alcohol was dispatched by the distilleries located outside the state to the bottling units against permits, which were not issued by the Commissioner of Excise, Assam.
"The aforesaid volume of extra neutral alcohol was capable of producing India made foreign liquor involving revenue of Rs 21.8 crore, which was lost by the government," the report said. The report pointed out that the Assam government was yet to prescribe the norms for production of India made foreign liquor from extra neutral alcohol.
"...there was short production of 5.87 lakh cases involving revenue of Rs 80.79 crore," it said.
The government also lost Rs 238.34 crore revenue as it could not detect misclassification of brands due to absence of a system of re-verification of ex-bond prices of MRP in labels, the CAG added.