The Comptroller and Auditor General of India has pulled up Uttar Pradesh for its failure to impose penalty on unauthorised entry of goods worth nearly Rs 2,500 crore into the state.
The CAG in its report for the year ended March 31, 2008, said that "test check of records of five trade tax offices between December 2005 and October 2007 revealed that six dealers imported goods from outside the state valued at Rs 2,451.99 crore" without having made the requisite declaration.
Under the UP Trade Tax Act, a registered dealer shall furnish a declaration in form XXXI to the Assessing Authorities (AA) whenever he intends to import goods from outside the state by air, rail, river or road.
"The importer shall not obtain delivery thereof unless he furnishes to the AA the declaration in duplicate dully filled in and signed by him for endorsement by such an authority.
"In the event of violation of these provisions, AA may direct that such dealer or person shall pay, by way of penalty, a sum not exceeding 40 per cent of the value of goods imported or three times the tax leviable on such goods, whichever is higher," the report said.