Home ECONOMY Central excise arrears rose to over Rs.59,000 crore in 2013-14

Central excise arrears rose to over Rs.59,000 crore in 2013-14

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New Delhi, May 5:

Tax arrears of central excise rose to Rs.59,309 crore in 2013-14, from Rs 45,463 crore a year ago, India’s official auditor said on Tuesday.

cash moneyThe Comptroller and Auditor General (CAG) said in its report on Indirect Taxes (central excise) tabled in parliament on Tuesday that arrears have been on the rise since 2011-12.

Arrears at the end of 2011-12 were Rs.35,964 crore, which jumped to Rs.45,463 crore at the end of 2012-13, and again upwards to Rs.59,309 crore in 2013-14, the audit showed.

During 2013-14 fiscal, only Rs.1,178 crore of arrears in central excise could be realised, which was only 2.59 percent of the previous fiscal’s arrears.

“The collection during 2013-14 has fallen drastically to 2.59 percent compared to 4.34 percent in 2012-13 fiscal. There is a need to strengthen the recovery mechanism of the department,” the CAG said.

Central excise receipts during 2013-14 were over Rs.169,000 crore.

Revenue foregone towards central excise exemptions had declined to Rs.195,000 crore during the 2013-14, from Rs.209,000 crore a year ago, the auditor said

The Rs.195,000 crore was 115 percent of the total revenue from central excise during 2013-14, it added.

Revenue foregone as a percentage of central excise receipts has been declining from the 2009-10 fiscal to 2013-14.

While the percentage was as high as 164 percent during 2009-10, it has come down to 115 percent in 2013-14. (IANS)