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Compliance
Indirect Tax

Report No. 23 of 2010 - Compliance Audit on Indirect Taxes – Central Excise Union Government, Department of Revenue

Date on which Report Tabled:
Fri 25 Mar, 2011
Date of sending the report to Government
Government Type
Union
Union Department
Indirect Tax
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Sector Taxes and Duties

Overview

This Report contains 55 paragraphs, with a revenue implication of Rs.250.71 crore. We had issued another 95 paragraphs involving money value of Rs.77.06 crore to the department/Ministry on which rectificatory action was taken in the form of issuing of show cause notices, adjudicating of show cause notices and recovery of Rs.29.12 crore. In the last five audit reports (including the current year's report), we had included 664 audit paragraphs involving Rs.3,807.85 crore. Of these, the Government had accepted audit observations in 481 audit paragraphs involving Rs.2,687.21 crore and had recovered Rs.187.48 crore.

Instances of undervaluation due to non-inclusion of additional consideration in the value, incorrect determination of cost of excisable goods, valuation on the basis of retail sale price, excisable goods not being fully valued, non-inclusion of freight and other charges, etc., were noticed. Duty levied short in these cases amounted to Rs.101.86 crore.

Cases of separate accounts for common inputs used in dutiable/exempted goods not maintained, availing of cenvat credit on ineligible capital goods, availing of cenvat credit on inadmissible input services, availing of cenvat credit for service tax paid on non-taxable services, availing of credit on the basis of invalid documents, availing of credit on goods not received back from job workers, suo-moto availing of cenvat credit etc., were noticed in audit. Duty involved in these cases was Rs.91.45 crore. Duty of Rs.3.23 crore was not levied due to incorrect grant of exemptions.Interest of Rs.3.08 crore was not levied in a few cases of delayed payment of duty.Duty of Rs.1.04 crore was not levied on aluminium dross, on delayed payment of duty on due dates and duty not paid on goods cleared for remaking.Cases of incorrect determination of assessable value on petroleum products, Non-levy/payment of cess on cement and demands not raised were noticed in audit. Duty implication in these cases was Rs.50.05 crore.

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