SHILLONG: Failure of the Commissioner of the Excise department to realize license fees of Rs 13.46 lakh collected by eight local chiefs from 299 out stills has resulted in loss to the State exchequer.
The Comptroller and Auditor General of India (Social, General and Economic Sectors and Public Sector Undertaking) for year ended March 31, 2012, revealed that the State Government in November, 2008 had fixed out still of licenses at Rs 3000 per annum.
According to the CAG report, the Commissioner of Excise in Meghalaya has empowered the local chiefs to act as Excise Officers with the authority to issue licenses for manufacturer and sale of country spirit within their respective territories.
“The Chiefs were permitted to retain 50 per cent of the license fees collected by them while the balance was to be deposited into the Government account,” the CAG report said.
While examining the reports of the Commissioner of Excise pertaining to eight local chiefs out of the ten chiefs appointed, the CAG found that the collected license fees totaled Rs 26.91 lakh from 299 out stills during the period from April 2009 to March 2012.
“The Chiefs had failed to deposit the Government share of 50 per cent of the fees amounting to Rs 13.46 lakh but the department did not take any action to realize the revenue,” the CAG report said.
The CAG report mentioned that the department in September, 2012 informed that the matter had been referred to the Government to revoke the powers of the local chiefs to collect license fees.
“The reply is, however, silent regarding non-deposit of the license fees by the local chiefs,” the CAG report said.
Meanwhile, in another case, the CAG report revealed that twelve distilleries had failed to register 41 brands of liquor which led to non-realization of revenue of Rs 19.50 lakh.
“Under Rule 363 (1) of the Meghalaya Excise Rules, no persons can sell Indian Made Foreign Liquor (IMFL), beer, wine and Bottled-in-Origin (BIO) products in the State unless its brand name and label are registered with the Commissioner of Excise (COE). The registration was valid till March 31, 2013 after which it may be renewed on payment of the prescribed renewal fees. The State Government fixed the fees for registration of IMFL at Rs 45000, beer at Rs 22000 and BIO products at Rs 25000,” the CAG report said.
A test check of records of the Commissioner of Excise in April, 2012 revealed that the registration of 41 brands of IMFL, beer, wine and BIO products of 12 distilleries were not renewed during 2011-2012 although distilleries were required to apply for re-registration of the brand names before the last day of proceeding.
The COE also neither issued demand notices to them nor cancelled the brand name registration certificates authorizing their sale within the State.
“Thus, the lack of timely action by the COE resulted in the non-realization of revenues of Rs 19.50 lakh and illegal sale of unregistered liquor products in the State,” the CAG report stated.
Meanwhile, the CAG report stated that the department on September, 2012 informed that in respect of two distilleries the renewal fees were realized.
“In respect of others, the brands were cancelled. The reply is not acceptable as the same should have been cancelled immediately on non-receipt of renewal fees from the beginning of the year and not subsequently,” the CAG report said.