LUCKNOW: The Comptroller and Auditor General (CAG) in its report for 2018-19, tabled in the state assembly on Wednesday, highlighted excise tax evasion of Rs 1,646.04 crore by Wave Distilleries and Breweries Ltd of Aligarh from 2013-14 to 2016-17.
The report says that when the company’s submissions to the Income Tax Department and to the Assistant Excise Commissioner were compared by the auditor, it found a huge discrepancy between the two.
“The discrepancies found in the consumed material indicate that the assessee (Wave Distilleries and Breweries Ltd ) had understated the consumption of input/intermediates which resulted in evasion of excise revenues including interest of 1,646.04 crore over an extended period from 2013-14 to 2016-17,” the report said.
The report goes on to say that even though assessing offices of the excise department are located in the premises of the assessee, they failed to monitor the quantity of inputs utilised by the assessee and the products manufactured by it. Due to this lapse, the report says, the company managed to evade payment of a large amount of excise duty.
“The amount of non-realisation of revenue to the Government on account of this is extremely large. The Finance Department, Government of Uttar Pradesh, in its instructions dated 11 June, 2020 had also specifically advised the Excise Department that in all cases where it is established that the assessee has suppressed/concealed particulars in its returns, demand should be raised to protect the interest of revenue,” the report says, adding that despite this, no action with respect to raising demand from the assessee has been intimated to the Audit.
The total shortfall in excise revenue till the end of FY 2019, was Rs 1,839 crore, the report says. Similarly, a loss of Rs 239 crore was found in mining, Rs 108.20 crore loss in sales and commercial tax, Rs 91.69 crore in stamp and duty, Rs Rs 1,427.40 crore in transport, it said.