Karnataka - Gulbarga   

Rs. 2 .41-crore loss to exchequer

GULBARGA: The failure to collect additional licence fee levied for selling beer, from wholesale vendors of Indian Made Foreign Liquor for six years from 2000-05, has resulted in the loss of revenue of Rs. 2 .41 crore to the State exchequer.

And, the failure to levy licence fee from star hotels for vending liquor had resulted in the loss of Rs. 77.93 lakh to the exchequer.

Official sources said here today that these instances of the violation of the Karnataka Excise Rules 1968 and the notification issued by the Government in 2002 came to light during the cross verification of the records maintained by the Excise Department by the Comptroller of Auditor General of India.

The CAG had brought to the notice of the State Government the failure on the part of the Excise Department to collect the additional licence fee from wholesale vendors who had obtained CL-1 licence for wholesale vending of Indian Liquor or Foreign Liquor.

The licensees were required to pay an additional fee equal to 10 per cent of the licence fee for selling foreign liquor and another additional fee of 15 per cent of the total licence fee for infrastructure projects as per the provisions of the Karnataka Excise Rules and subsequent notifications issued in this regard by the Government.

Sources said that the information collected by the CAG from the Excise Department, between January and April 2006, revealed that in 11 districts, 326 wholesale licensees were allowed to sell beer without paying the additional licence fee to sell foreign liquor. While Rs. 20.96 crore was collected as the fee from 326 wholesale vendors during the period, the loss of additional licence fee for vending foreign liquor was Rs. 2.1 crore and the short levy of additional licence fee for infrastructure projects from the wholesale vendors resulted in a loss of another Rs. 31.43 lakh.

Sources said that the CAG had also rejected the contention of the Excise Commissioner and the Government that beer contained spirit generated in the process of fermentation.

The audit also found that the Excise Department had not collected the additional fee from the CL-9 holders for selling beer as per the amendment made to the Excise rules in 1990. Those who obtain CL-9 licences for selling beer in the bar and restaurants were expected to obtain permission in another separate form by paying additional fees.

In March 2005, it was noticed that 3,354 CL-9 licence holders were allowed to to sell bottled beer though they had not obtained the required licence.

This had led to a loss of Rs. 1.74 crore in 2004-05. The short recovery of licence fee from 15 star hotels in Bangalore, Chikmagalur, Kodagu and Mysore, for vending liquor in their premises during November 2005 to March 2006 had resulted in a loss of Rs. 77.93 lakh to the Government.

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