Rs 19k cr service tax, duty frauds: CAG
Comptroller and Auditor General of India (CAG) today said that there are over 10,300 cases of fraud involving over Rs 19,159 crores in service tax and central excise duty during 2008-11.
"In central excise, a total 3,690 cases of fraud or presumptive fraud were found during 2008-11 by the department involving duty of Rs 8,497.06 crore. In service tax, 6,655 cases involving tax of Rs 10,662.24 crore were detected during the same period," CAG said in two separate reports.
The audit scrutiny revealed that Department of Revenue raised a demand of Rs 7,654.23 crore in central excise and only recovered Rs 328.67 crore (4.29 per cent) out of it.
"Similarly, out of a penalty of Rs 320.85 crore (in central excise) that was imposed, the department could recover only Rs 0.94 crore (0.29 per cent)," it said.
In service tax also, the CAG observed the department raised a demand of Rs 9,905.84 crore and recovered only Rs 2,706 crore (27.32 per cent).
"Similarly, out of the penalty of Rs 489.61 crore that was imposed on service tax, the department could recover only Rs 2.40 crore (0.49 per cent)" the report added.
SOURCE: financialexpress.com
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