UT excise dept failed to meet revenue target, causing `36-crore deficit: CAG

According to Appendix 2 under Rule 52 of General Financial Rules 2017, estimates of revenue receipts of the union territory (UT) administrations are to be furnished to the Ministry of Finance by the concerned audit/accounts officer wherever departmentalisation of accounts has not taken place and by the controller accounts where departmentalisation has been introduced.

The report mentioned how during the test check of record, it was noticed that the Chandigarh Administration had fixed the revenue receipt targets of excise for Rs 900 crore, however revenue of Rs 863.37 crore was realised, thereby causing a shortfall of Rs 36.63 crore.

“It is evident from above that an amount of Rs 863.37 crore had been realised against the total target of Rs 900 crore. This indicates the short realisation/ non-achievement of target of revenue receipt amounting to Rs 36.63 crore,” the CAG said in its report.

The audit also pointed out non-realisation of establishment charges worth Rs 1.05 crore.

It was said that according to the Section 13 of The Punjab Distillery Rules 1932, the licensee shall agree to the posting of a government excise establishment in his distillery for the purpose of ensuring the due observance of these rules and for watch and ward. Under Section 16, the licensee shall make into the government treasury such payment as may be demanded on account of the salaries of the government excise establishment posted to the distillery.

“During test check of the record, it was observed that one excise inspector was posted in distilleries falling under the jurisdiction of AETC/ETO Excise Chandigarh… and an amount was required to be realised from the concerned distilleries where the inspector was posted but no such establishment charges were recovered/obtained from the concerned distilleries as required which resulted into non-realisation of establishment charges of Rs 38.11 lakh during the years 2018-19, 2019-20, 2020-21, 2021-22 & 2022-23 respectively and Rs 67.22 lakh as per Para 3 of LAR for 2018-19. Thus, total unrealised amount becomes Rs.105.34 lakh (or 1.05 crore) (Rs 67.22 lakh + Rs 38.12 lakh). AETC/ETO (State Excise) Chandigarh, had failed to raise the demand of the dues as envisaged in the Rules,” the audit mentioned.

On being pointed out, the department stated that a reply would be submitted after verifying the records.
The Excise and Taxation Department, a revenue-generating arm of the Chandigarh Administration, is headed by the assistant excise and taxation commissioner, who oversees the office through the excise and taxation officer (state excise).

The finance secretary of Chandigarh, also serves as the secretary of the Excise and Taxation Department. This department is a significant contributor to the exchequer, ensuring that all enactments are implemented as per the statutory provisions of the relevant Acts and rules.