‘GENEROUS’ OFFICERS at the trade tax department have caused a whopping Rs 492-crore revenue loss to the state exchequer by offering 15 big industrial units more tax rebate than what was sanctioned.
The irregularities were detected by the Comptroller and Auditor General (CAG), which tabled its report (which went largely unnoticed) in this connection in the State Assembly a few months ago. Neither the trade tax department nor the government is aware of any such fraud having been committed.
As per the existing laws, the state government is authorised to provide tax-waiver or rebate to new industrial units or the existing ones that went for expansion/modernisation/diversification after March 31, 1995. During an audit, the CAG found out that between August 2003 and December 2003, trade tax officers in various divisions issued eligibility certificates to 15 units enabling them to claim tax exemptions. However, as against a Rs 813.14-crore tax rebate which the 15 units were legally entitled to, the T-T officers gave them a rebate of Rs 1305.14 crore, which was Rs 492.21 cr more than what was actually sanctioned.
Most of the units getting undue rebate are situated in Noida, Ghaziabad and Kanpur. The biggest beneficiaries were Bhushan Industries Ltd (Ghaziabad), which got Rs 262.04 cr excess rebate, Samtal Ltd Gautambuddh Nagar, which received Rs 57.51 crore excess rebate, and BPL Disposal Devices (Ghaziabad) which benefited by Rs 54.57 cr more. Others who got excess rebate were Pioneer Polyfeb, Ghazibad (Rs 5.5 cr), Goel MG Gases, Ghaziabad (Rs 5.39 cr), Albert David, Ghaziabad (Rs 5.89 crore), Premium Packaging Pvt Ltd, Kanpur (Rs 2.95 crore).
Alkan Paper Mill Ltd, Kanpur (Rs 1.15 crore), Daewoo Motors, Gautambuddh Nagar, (Rs 31.97 crore), Hindustan Adhesive Ltd, Gautambuddh Nagar (Rs 2.33 crore), LG Electronics India Ltd, (Rs 14.45 crore), Ever Shine Moulder Ltd, Noida (Rs 1.45 crore), Hindustan Liver Ltd, Agra (Rs 41.05 crore), Brandavan Agro Industries Ltd, Agra, (Rs 4.83 crore) and Holistic Indian Ltd, Noida (Rs 4.83 crore).
Trade Tax commissioner Rajnish Gupta said he was not aware of the report of the Comptroller and Auditor general. “The matter has not yet come to my knowledge, but I think action must have been taken against the guilty and money recovered by now,” he said.
Principal secretary (Trade Tax) K Chandramauli said, “I will have to find out.”