SHILLONG, March 21: The Comptroller and Auditor General (CAG) has suggested the state government to digitise operations of the Excise department while pointing out that the test check of records of seven units during 2018-2019 revealed non-realisation of duties and fees involving Rs 41.42 crore in 52 cases.
In a report, the CAG detected 24 cases with unrealised amount to the tune of Rs 6.35 crore under the category of non/short realisation of duties.
Under the category of loss of revenue, it discerned 12 cases with unrealised amount of Rs 28.76 crore, besides 16 cases with Rs 6.31 crore of unrealised money pertaining to other irregularities. It stated that during the year 2018-19, the department accepted under-assessments and other deficiencies of Rs 3.69 crore in 19 cases, while the reply in 22 cases was not furnished.
Moreover, in 11 cases the department did not accept the audit contention, the report stated. The Excise department realised recoveries of Rs 3.55 crore in 6 cases during the period.
Through the report, it was brought to light that the failure to renew licences of 93 Indian Made Foreign Liquor (IMFL) retail shops and bars as well as canteen licences resulted in Rs 1.84 crore of revenue becoming non-recoverable.
“Licence renewal fee amounting to Rs 1.84 crore still remains to be recovered from 93 units, and there was no assurance that they were not carrying on business on invalid licences,” the report stated.
In its recommendation, the CAG said, “The department may verify the remaining IMFL, retail bar and canteen licences to check their validity. Further, the government may digitise operations of the Excise department and information relating to bonded warehouses, liquor shops, bars, canteens licences should be kept in digital form to facilitate timley renewal of the licenses”.
It was also informed that the Commissioner of Excise (CoE) failed to realise advance licence fee of Rs 2.24 crore from 38 bonded warehouses for the year 2019-2020, adding that the department has recovered the entire amount at the instance of the audit.
Informing that the CoE registered 39 brands of eight distilleries, companies and bonded warehouses without realising registration, which amounted to Rs 19.90 lakh, the CAG recommended that the Commissioner of Excise may reiterate instructions to ensure that the applicable registration fees are duly realised at the time of granting registration of brands.
It also suggested that the department should not issue permits for import and sale of unregistered brands.
In terms of security deposit, it was mentioned that Rs 43.10 lakh was not obtained from 75 IMFL units and 14 bar licences.
It further recommended the department to ensure that security deposits are obtained from all the licencees for protection of government revenue in case of default by any of the licensee on conditions.
The department may also use IT systems to maintain detail of security deposits besides ensuring internal audit to check timely renewal of licence fees and security deposits, it added.
On excise duty, the report said that the Commissioner of Excise has failed to realise excise duty of Rs 10.56 lakh from four bonded warehouses that failed to execute eight import permits.
The CAG recommended that the department may develop a mechanism to check execution of import permits. On failure of execution within the validity period, the applicable excise duty should immediately be realised from the bonded warehouse, it added.
