Heavy excise loss due to closure of units

By Our Staff Reporter

NEW DELHI, DEC. 13.

Closure of small and medium scale industrial units, under directions of the Supreme Court is likely to have an adverse effect on Central Excise collections as the fall could amount to Rs. 180 crores per annum in that sector. Majority of the collections would stand affected from the trans-Yamuna area, where a large number of these units are concentrated.

Addressing a press conference to highlight the massive drive launched against the evaders, which had resulted in detection of record evasion by the Central Excise (Delhi Zone), the Chief Commissioner, Mr. Someshwar, said that the quantum of revenue likely to be lost due to closure of industries had not been calculated, but it could be substantial.

He said that as result of effective anti-evasion measures, the Department had been able to detect evasion of Rs. 174 crores by booking 681 people during the current financial year. Significantly, breaking past trends, the evaders themselves have agreed to deposit Rs. 68.93 crores towards their liabilities, which is a record by itself. Stating that while the drive would continue with renewed vigour, Mr. Someshwar said that his Department had also ensured that the honest tax payers were not harassed. ``We want to establish a tax-friendly regime for which various measures have been taken and could continue to be upgraded,'' he added.

He said a system has been put in place to ensure remedial action to redress quickly all grievances to the satisfaction of the trade and industry. Nearly 50 excise officials had been transferred in recent months and the performance of others was constantly being reviewed. If there is any grievance, the system provides that any person can approach any senior officer with his complaint.

The Chief Commissioner, who since taking over in March this year, has taken a number of innovative measures which has reduced the gap between the tax payer and the Department, said two directors of M/s. Skipper India Limited, Gurgaon and M/s. M.M. Electronics, Delhi have been arrested for their alleged involved in large- scale evasion. They have been remanded to police custody and the court has denied them bail. The evasion in this case is reported to be around Rs. 8 crores. These parties had failed to respond to nearly 10 summons and notices following which action was taken.

He said a major preventive drive was launched in East Delhi in the first fortnight of November during which 22 manufacturing units as well as residential premises were searched. The operation resulted in seizure of dutiable goods worth Rs. 66 lakhs. A case of duty evasion has also been made against a manufacturer of ayurvedic medicine. This unit was manufacturing medicine without obtaining Central Excise registration and clearing goods without payment of duty. The total evasion was estimated to be about Rs. 3.5 crores, of which Rs. 2 crore had been deposited.

Similarly, during a raid on the premises of a 100 per cent export oriented unit, it was detected that they had evaded Central Excise duty to the tune of Rs. 26 crores by selling the finished goods clandestinely in the DTA market without issuing any documents and without payment of government dues.

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