The Hindu : CAG raps Excise Department

Online edition of India's National Newspaper
Monday, Feb 16, 2004

Kerala

Kerala

CAG raps Excise Department

By Our Staff Reporter

KOZHIKODE, FEB. 15. The State Excise Department has come in for sharp criticism from the Comptroller and Auditor General (CAG) for causing a fall in the revenue of the exchequer to the tune of Rs 2.36 crores, owing to its delay in completing confiscation proceedings of seized vehicles and disposal of seized spirit during the last several years.

Lapses have been found in 51 cases regarding the non-levy of duty on inadmissible wastage, disposal of confiscated vehicles and other articles, according to the latest report published by the CAG.

Of the 2,156 vehicles seized by the Excise Department during 1996-97 to 2000-2001, it completed confiscation proceedings only in 36 per cent of cases. Confiscation proceedings were conducted in 520 cases after a delay of one to 103 months after the seizure of the vehicles.

Final disposal by way of permanent release and auction was completed in 506 cases while 206 vehicles were not auctioned. Thus, revenue in respect of these 260 vehicles remained unrealised. Nearly 149 cases pending in appeals were not disposed of by the Additional Commissioners within the prescribed period of three months to 30 months, violating the provisions of the Kerala Abkari (Disposal of Confiscated Articles) Rules, 1996, the audit report said.

The seized vehicles lay in the open till the finalisation of confiscation proceedings. The mechanical engineer attached to the office of the Additional Excise Commissioner, while appraising the confiscated vehicles, reported that the vehicles were usually kept in the open yard. The total loss was Rs 1.12 crores.

During the audit review it was observed that in 96 cases, the vehicles seized between 1981-82 to 1999-2000 were auctioned off during the 1996-1997 and 1999-2000. The price of the vehicles were determined as Rs 96.48 lakhs by the mechanical engineer but were auctioned off for Rs 57.37 lakhs, resulting in a loss of revenue of Rs 39.11 lakhs.

The fall in revenue was attributed to the exposure of the vehicles to the vagaries of weather, delay in auctioning vehicles due to non-receipt of certificates, delay in completion of investigation reports, pending of appeals, revisions and auction formalities.

A test check of the records at four district offices in Kollam, Alappuzha, Thrissur and Kannur revealed that four vehicles valued at Rs 9.46 lakhs, seized between December 1996 and March 1999, were released temporarily between January 1997 and August 1999 without obtaining deposit of an amount equivalent to the market value assessed by the mechanical engineer, the report pointed out.

It is a different story in the case of seizures and disposal of spirit. As per the details furnished by the Deputy Commissioners of the three zones — Thiruvananthapuram, Kochi and Kozhikode— a total quantity of 8.78 lakhs litres of spirit involved in various abkari offences since 1996-97 was kept in stock as on March 31, 2002. About 6.95 litres of the seized spirit pertained to court cases. But the Excise Department failed to send the remaining quantity of 1.82-lakh litres for chemical analysis and distilleries for disposal. This resulted in blockage of Government revenue of Rs 54.84 lakhs.

Owing to the lack of proper storage facilities for vehicles and articles seized in abkari offences, the loss sustained by the Government by way of theft of parts of vehicles, damages caused by natural calamities and leakage of spirit amounted to Rs. 9.25 lakhs. The Mattannur Range Office in Kannur district reported that 10,500 litres of spirit, a fiat car and a lorry were destroyed as a tree fell over them in June 2001. Theft of parts of a seized lorry at Mattanuur, destruction of an Ambassador car in a fire in the Kozhikode range and leakage of 6,900 litres of spirit in Pathanapuram range were also reported.

Printer friendly page
Send this article to Friends by E-Mail

Kerala