Audit Reports

Indirect Tax

Overview

The Export Promotion Capital Goods (EPCG) scheme facilitates import of capital goods for producing quality goods and services to enhance India’s manufacturing competitiveness. Performance Audit of this scheme was conducted to ascertain whether the issue, utilization, redemption and implementation of authorizations by the Directorate General of Foreign Trade (DGFT) and the Customs Department is being done in an efficient and effective manner. Audit also examined the effectiveness of inter-departmental coordination involved in the administration of the scheme and whether the internal control measures are sufficient to minimize the risks of revenue loss, misuse, etc.

This report contains 72 audit observations and 26 recommendations. The performance audit has revenue implication of `479.81 crore. However, response were received only for 31 paras from Central Board of Indirect Taxes and Customs (CBIC)/DGFT out of which 27 paras have been fully/partially accepted by CBIC/DGFT. Response for remaining 41 paras are awaited. Similarly, 20 out of 26 recommendations have been accepted by CBIC/DGFT; response awaited in respect of two recommendations and not accepted in respect of four recommendations.

Download Audit Report

• Report No. 17 of 2024 - Performance Audit on Export Promotion Capital Goods (EPCG) Scheme, Union Government (Department of Revenue – Indirect Taxes -Customs)
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