CAG highlights short fall of 77 crores by Prohibition and Excise Department in Telangana
Hyderabad : The Comptroller and Auditor General (CAG) points out the laxity of the Prohibition and Excise Department in collecting Rs 77 crores of tax dodging amount found in CAG audit in the last five financial years 2017-18 to 2021-22. The CAG report was tabled in the Telangana assembly on Friday
The CAG report pointed out the department missed out on collecting Rs 77 crore in taxes in the last five years pertaining to non / short levy, non / short realization of excise tax, non /short levy of interest on belated payment of taxes.During the last five years, CAG through its audit reports had pointed out revenue implication of Rs 77 crore in 179 cases. However the Department accepted audit observations in 11 cases involving Rs 11 lakhs and had recovered the entire accepted amount.
“Recovery of Rs 11 crore as against the money value of Rs 77 crore relating to the objected cases during the period 2017-18 to 2021-22 indicated that the response of the Department is not encouraging,” highlights CAG in its report.
Referring to one such tax evasion case CAG pointed out the case of R K Distilleries, Medchal. During its audit CAG found that the Department either did not levy or short levied the penalty for the delayed payment of Annual Distillery Excise Tax for the licence years 2017-18 and 2018-19 amounting to Rs 86.99 lakh. The Distillery Officer assured a detailed reply. The matter was referred to the Government in October 2022. Reply has not been received, said CAG.
It is pertinent to note that income from the State Excise increased 21 percent from 2020-21 to 2021-22 (14,369 crores to 17,482 crores). According to CAG, the reason for the same is due to an increase in sale of Foreign Liquors and Spirits and Other Receipts.
