The Comptroller and Auditor General (CAG) has revealed that the Meghalaya government has lost Rs 1,166.89 crore in revenue owing to under-assessments and other factors.
In its report for the revenue sector till March 31, 2020, the audit report said that test check of the records on sale, trade etc, state excise, motor vehicles tax, forest receipts and other non-tax receipts conducted during the year 2019-20 revealed under-assessment/short/non-levy/loss in as many as 498 cases amounting to a revenue loss of 1,166.89 crore which is 48.19 per cent of the State’s own tax revenue for 2019-20.
The report also stated that the departments of taxation, mining and geology, forest and environment, excise, and transport have accepted underassessment/short/non-levy/loss of revenue of Rs 376.97 crore in 293 cases pointed out by the CAG in 2019-20.
However, out of Rs 376.97 crore, the recovery by these six departments was only Rs 12.81 crore.
The report also features key findings relating to concealment of turnover/non-realisation of revenue/loss of revenue/short collection of penalties, taxes and fines involving Rs 267.66 crore.
It said that the Excise Department failed to notify norms for production of Indian Made Foreign Liquor (IMFL from Extra Neutral Alcohol (ENA) and norms for production of ENA from raw materials has resulted in one distillery and three bottling plants namely CMJ Breweries Pvt Ltd (bottling unit), North East Bottling Plant, Marwet Bottling Plant and Oaken Gold Bottling Plant declaring a short yield IMFL during production and this has resulted in loss of revenue to the tune of Rs 57.83 crore.
The CAG also said that the Mining and Geology Department failed to collect the interest of Rs 34.10 lakh on delayed payment of the District Mineral Foundation Fund by three cement companies namely Meghalaya Cements Ltd, Dalmia Bharat Cements Ltd and Star Cements Ltd.
The Mining and Geology Department also failed to assess the limestone mined under the Divisional Mining Officer, Jowai by two cement companies namely Green Valley Industries Ltd and Goldstone Cements Ltd, thus resulting in loss of revenue of Rs 10.56 crore.
As far as Forest Department is concerned, it was found that export of boulders and limestone to Bangladesh was under-reported by three forest check-gates at Erbamon (Pynursla), Majai-Bholaganj and Amsarin resulting in loss of revenue of Rs 3.49 crore.
The CAG also said that the Transport Department delayed in implementation of revised rates of penalties from defaulting vehicle owners resulting in short collection of penalties amounting to Rs 1.23 crore by District Transport Officers (DTOs) of East Khasi Hills, Ri-Bhoi, West Jaintia Hills and East Jaintia Hills.
Failure by the Taxation Department to assess the case records of a petrol pump dealer namely Arkiwan Service Station, Sohiong resulted in concealment of turnover on motor spirits, high speed diesel and consequent evasion/ short payment of tax to the tune of Rs 89 lakh.
Further, the department failed to initiate action against two dealers, KBS Motors and Mohan Trading, who had suspended their business and stopped furnishing their tax returns. This resulted in loss of Rs 28.78 lakh and non-realisation of assessed revenue amounting to Rs 84.81 lakh.
