Chandigarh: In 4 years, Excise Dept misses revenue target by Rs 369 crore
Dushyant Singh Pundir
Chandigarh, December 19
In the last four years, the Excise and Taxation Department has failed to achieve its targets, pointed out the Director General of Audit (Central), Chandigarh, in its report.
Obtained under the RTI Act, the report revealed the department fell short of Rs 369.15 crore of revenue target in the past four financial years. The department was able to realise Rs 645.76 crore against the target of Rs 723 crore in 2019-20; Rs 497.18 crore against Rs 671.06 crore in 2020-21; Rs 724.60 crore against Rs 806 crore in 2021-22; and Rs 863.37 crore against Rs 900 crore in 2022-23. The report also mentioned that no internal audit was conducted during 2022-23.
No takers for 18 vends; Rs 150 cr loss likely
Revenue realisation for 2023-24 is likely to drop further as department failed to auction 18 of 95 liquor vends even after slashing reserve price by over 50%. Dept likely to suffer loss of Rs 150 cr this financial year
During the test checking of records, it was noticed that the Administration, vide letter dated January 4, 2023, had fixed the excise revenue target at Rs 900 crore, whereas Rs 863.37 crore was realised.
On being pointed out, the department stated the reply would be submitted after verifying the records, mentioned the report.
Meanwhile, the revenue realisation for 2023-24 is likely to drop further as the department has failed to auction 18 liquor vends of the total 95 even after slashing the reserve price by more than 50 per cent. The department is likely to suffer a loss of nearly Rs 150 crore this financial year.
Further, the report noticed that the department had realised Rs 863.37 crore as excise revenue during 2022-23, of which Rs 37.10 lakh was shown as received in daily collection register, but connected receipts/records were not available. “Necessary reconciliation with the treasury may be done under intimation to the audit. In the absence of reconciliation, chances of embezzlement or misappropriation can’t be ruled out,” stated the report. On being pointed out, the department again stated that reply would be submitted after verifying the records.
The report further noticed that cheques/demand draft received by the department on account of various licence fees were not credited into the government account immediately. “Some receipts were deposited into the treasury after a delay of 20-45 days in contravention of prescribed rules, which resulted in loss of interest to the exchequer,” the report stated.
The audit report also observed that cow cess amounting to Rs 19.05 lakh was short-deposited by wholesalers for 2022-23. As per a notification of the Administration applicable to the Excise Policy 2022-23, cow cess will be levied at Rs 5 per bottle of 750 ml of country liquor, Rs 5 per bottle of 650 ml of beer and Rs 10 per bottle of 750/650 ml of whisky and will be deposited by the wholesale licensees in the bank account of the Municipal Corporation. The report noticed that no reconciliation of cow cess was done by the department.
