Excise dept fails to levy excise duty leading to shortfall in collection of Rs 14Cr: CAG

Syllad | The Rising MeghalayaMarch 16, 2025

Failure of the excise department to levy excise duty led to a shortfall in excise duty collection amounting to Rs 14.58 crore.

Audit of the records pertaining to the Superintendent of Excise (SE), Tura during the period April 2018 to March 2019, revealed the department failed to levy excise duty in accordance wth the prescribed rates , thereby leading to a substantial shortfall in Excise duty collection amounting to Rs 14.58 crore, the CAG said in its report on state revenues for the year ended March 31, 2023.

Out of the total excise duty liability amounting to Rs 41.90 crore, the sum levied from the three Bonded Warehouses (M/s Hill View Bonded Warehouse, Araimile,West Garo Hills,, M/s Gloria Bonded Warehouse, Tura and M/s Tura Bonded Warehouse) was Rs 27.32 crore, hence, there was a shortfall of Rs 14.58 crore (35 per cent).

“These discrepancies were reported to the Superintendents of Excise, Tura in June 2020, and subsequently to the Government in September 2023,” it said.

In December 2023, the Commissioner of Excise, Meghalaya issued correspondence seeking replies from the defaulting warehouses.

Additionally, the Superintendent of Excise, Tura issued orders for payment of the deficient amount to the aforementioned Bonded Warehouses and to the officers-in-charge in January 2024.

The details of recovery are yet to be intimated to Audit (April 2024).

In its recommendations, the CAG said that to address failure in excise duty collection and prevent revenue losses, it is recommended to conduct thorough investigations into the lapses, and enforce strict compliance with government notifications in application of excise duty rates .