Rs 1.27 lakh crore indirect tax revenue stuck in litigations

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A staggering Rs 1.27 lakh crore revenue as central excise and service tax remained unrealised due to appeals and litigations pending before authorities during the financial year 2011-12, says a CAG report.

Of the total of Rs  1,27,897.39 crore pending demand, Rs  73,274.74 crore was for service tax and Rs 54,172.65 crore for excise duty, it said. The central excise duty cases involving duty of Rs  54,172.65 crore were pending as on March 31, 2012 with different authorities, of which cases involving revenue of Rs  15,663.69 crore (29 per cent) were with the adjudicating officers of the department.

“Cases involving revenue of Rs 28,677.73 crore (53 per cent) were pending with the judiciary,” said the recent Comptroller and Auditor General (CAG) report.

The cases of central excise duty realisation involving an amount of Rs  2,493.48 crore were pending with Commissioners (appeal) and Rs 28.54 crore with Government and Central Board of Excise and Customs. As many as Rs  7,309.21 crore were pending for coercive recovery measures, the report said. The number of cases of pending demands related to service tax have also grown significantly in the last ten years.       

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