CAG detects lapses in revenues of Rs 906.66 cr in UP

Lucknow, Jan 25 (UNI) The Comptroller and Auditor General of India (CAG) has detected serious irregularities in revenue collection by various departments in Uttar Pradesh during 2005-06 and said the state exchequer lost Rs 906.66 crore during that period.

In its recent report on revenue receipts for 2005-06, which was tabled in UP Assembly today, CAG, however said the revenue in the state rose to Rs 21,788.22 crore, in both tax and non-tax sector.

UP raised only 48 per cent of its receipts while the remaining 52 per cent came from the union government. The percentage of revenue raised by UP was lower by one per cent compared to 49 percent in 2004-05.

In the year 2005-06, the state government could not collect tax and non-tax revenue as estimated in its budget, although the figures increased by 20.17 per cent and 7.72 per cent respectively over the receipts of the previous year.

The report said a test check of records of trade tax, state excise, taxes on vehicles, goods and passengers, stamp duty and Registration fees, Land Revenue and other departmental receipts, conducted during 2005-06 revealed 1,817 cases of under-assessment, short levy, loss of revenue amounting to Rs 1,159.59 crore.

The concerned departments accepted under-assessments of Rs 3.55 crore in 55 cases, of which 11 cases involving Rs 37.20 lakh, had been pointed out in audit during 2005-06 and the rest in earlier years.

Altogether, 7,832 inspection reports were issued up to December 31, 2005 containing 19,257 audit observations, while money value of Rs 4,225.60 crore were not settled upto June 2006.

Eight manufacturers, who had availed, wholly or partly, the facility of exemption under section 4-A, were granted irregular deferment (moratorium) amounting to Rs 44.95 crore, out of which Rs 25.19 crore were availed.

In six cases, deferment of Rs 15.37 crore was irregularly availed by manufacturers, who were ineligible for exemption under section 4-A.

Two manufacturers availed irregular deferment amounting to Rs 32.59 crore although they could not achieve the base production.

Nine manufacturers availed CST deferment of Rs 12.69 crore, which was inadmissible.

Deferment amounting to Rs 2.08 crore with interest of Rs 1.52 crore were not recovered, while due to failure of the department, penalty of Rs 381.78 crore for unlawful manufacturing of alcohol by a distillery was not imposed.

Low yield of alcohol from molasses as compared to norms resulted in a loss of Rs 16.03 crore revenue.

Allowing sale of stock of previous year in the ensuing year without recovery of differential rate of duty resulted in a loss of excise duty amounting to Rs 6.10 crore.

In trade tax department, irregular allowance of exemption under the compounding scheme resulted in short levy of tax worth Rs 6.75 crore.

Also interest of Rs 2.54 crore was not levied while non-levy of penalty under CST Act amounted to Rs 1.13 crore.

In transport department, application of incorrect rates of additional tax resulted in short levy of Rs 1.36 crore.

In land revenue department, Nazul land valued at Rs 342.26 crore was not returned by the government, on the expiry of lease.

Besides, the stamp duty and registration fee of Rs 34.30 crore were also leviable.

In entertainment tax department, unutilised maintenance charges amounting to Rs 4 crore was not realised.

In finance department, guarantee fees amounting to Rs 12 crore was short levied.

In forest department, due to non felling of matured/over matured Sal trees, revenue amounting to Rs 88.03 crore was blocked.

UNI