Maharashtra's Excise Department Under Fire for Revenue Lapses
The CAG of India criticized Maharashtra's state excise department for operational lapses causing substantial revenue loss. Key issues included incorrect license fee assessments, duty exemptions, and undervaluation of production costs, leading to a total loss exceeding Rs 240 crore.
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The Comptroller and Auditor General (CAG) of India has thrown a spotlight on the serious lapses within the Maharashtra state excise department, which have resulted in a significant revenue shortfall for the state. This revelation has sparked debate about the department's operational efficiencies and oversight.
According to the CAG report, incorrect assessments on license renewals resulted in a loss of Rs 20.15 crore in direct revenue and Rs 70.22 crore in interest. The failure to implement updated supervision fees caused an additional Rs 1.20 crore shortfall. Furthermore, exemptions granted on old stock of beer without requisite approvals added to the state's monetary woes.
Additional findings indicated undervaluation in production costs and mistakes in cost assessments for imported liquor. These compounded issues suggest that the excise department's lapses cumulatively led to a massive revenue loss, as elucidated by the CAG in their comprehensive audit. Concerns have been raised about whether existing frameworks are adequate to prevent such substantial leakages in the future.
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