The report contains 20 paragraphs, including one Performance Audit, relating to non / short levy of taxes, interest, penalty, etc. involving ` 4,769.56 crore.
Audit of Assessment, levy and collection of VAT and CST on Petroleum Products revealed (i) deficiencies in existing system / statutory provisions regarding the assessment, levy and collection of tax in respect of petroleum products; (ii) failure of the Assessing Authorities to ensure adherence to the conditions governing grant of exemption / applicability of reduced rate of tax; and (iii) ineffective utilisation of the e-transit pass system introduced for monitoring the interstate movement of petroleum products.
Audit of the Functioning of Business Intelligence Unit (BIU) revealed inadequacies in collection, analysis and dissemination of information by BIU, thereby resulting in poor utilization by the Assessing Authorities of the data procured and uploaded by BIU in intranet of CTD. Audit also revealed absence of proper monitoring mechanism to ensure timely and effective utilisation of BIU data by the enforcement and territorial wings of the Department.
Performance Audit on Assessment and levy of Stamp duty and Registration fee indicated an urgent need for augmentation of revenue by effectively implementing the existing provisions and by prescribing rates of duty where there is absence of rates. The instructions issued by the Valuation Committee was not followed in fixation of market value guidelines of properties. Effective system for monitoring of payments being credited into Government account is yet be devised. There were widespread errors in implementing grant of exemptions and remissions, classification of instruments, and necessary inquiries have not been made by registering officers before registration of documents.
Audit of Collection of Arrears of tax in Departments of Commercial Taxes and Geology and Mining revealed inadequacies in the system of collection of arrears. There existed no system to monitor disposal of cases pending with various appellate / judicial fora, thereby hindering proper pursuance of the same. The process of recovery of arrears under the Revenue Recovery Act suffered from deficiencies of failure to refer long pending cases of arrears for recovery under the RR Act, non-initiation of revenue recovery proceedings, non / delay in initiation of action for attachment of property and failure to conduct auction after attachment of property.