The Comptroller and Auditor General (CAG) has found that 28 cases of irregularity, like short realisation of stamp duty and registration fees, splitting of transaction resulting in short levy of stamp duty, wasteful expenditure on account of rent paid, caused a loss of Rs 13.76 cr to the State.
During the year 2018-19 the CAG test checked the records of 30 units of Sales Tax/Value Added Tax, State Excise, Motor Vehicles, Goods and Passengers tax, Stamp Duty and Registration and other Departmental offices.
The test check showed under-assessment/short-levy/loss of revenue aggregating Rs 73.80 crore in 86 cases.
During the year, the departments concerned have recovered cases of under assessment and other deficiencies amounting to Rs 26 lakh involved in 15 cases.
The details of assessments, registrations, licences issued and other activities undertaken by five major revenue collection departments of the State and the extent of audit and coverage are as discussed below:
Registration Department
There are 14 auditable units in the Registration Department. Total 23,668 instruments were registered during 2018-19. Total nine units were audited during 2018-19 out which 723 instruments were selected for test check.
During the course of audit 28 cases of irregularity were noticed, short realisation of stamp duty and registration fees, splitting of transaction resulting in short levy of stamp duty, wasteful expenditure on account of rent paid, safeguard of public properties from unauthorised transfers, loss of revenue due to short deposit of amount into Government account, loss of revenue due to non-fixation of guidelines for minimum true market value etc, involving Rs 13.76 crore.
Commercial Taxes Department
There are eight auditable units in the Commercial Taxes Department. Audit selected four units for test check wherein 11.188 assessments were finalised during the year 2018-19. Audit test checked 809 assessments (7.23 per cent) during the year 2018-19 and noticed 47 cases (5.81 per cent of audited sample) of non/short levy of tax/interest, irregular allowance of Input Tax Credit, grant of incorrect tax exemption benefits, acceptance of defective declaration forms, application of incorrect rates by misclassifying goods and non-observance of provisions of Acts/Rules etc, involving Rs 55.90 crore.
Revenue Department
There are 22 auditable units in the Department, of which no units were selected for test check during the year 2018-19.
Excise Department
There are 12 auditable units in the Excise Department. Of this one unit with 245 licensees was selected for test check during the year 2018-19. Audit test checked records of 30 licences. During test check audit noticed two cases of delay in disposal of confiscated liquor goods and non-levy of excise duty on old stock lying idle in bonded warehouse, involving Rs 19 lakh.
Transport Department
There are 12 auditable units in the Transport Department. Total 26,445 vehicles were registered during 2018-19.
CAG audited entire cases of vehicles registered with 100 per cent test check. During test check we noticed nine cases of short levy of road tax, compounding of offences booked and short collection of revenue, short levy of Infrastructure Development Cess, loss of revenue due to registration of commercial vehicle in the name of Individuals arrears of revenue etc, involving Rs 3.95 crore.
