The Centre has been unable to collect more than Rs 63,000 crore in indirect tax revenue in 2011-12 which were pending due to injunction or appeal among other reasons under a head called ‘call book’.
The CAG while giving out this figure called for close monitoring of the process of review of call book items.
Over 40,000 cases involving revenue of Rs 63,191.14 crore—Rs 46,586 crore related to central excise and Rs 16,605.14 crore from service tax—were pending in call book as of March 31, 2012, the Comptroller and Auditor General (CAG) said in its report tabled in Parliament recently.
A call book is a repository for those central excise and service tax cases where the demand could not be realised due to various reasons.
The number of such pendency has increased despite the Central Board of Excise and Customs (CBEC) emphasising on monthly review of call book cases.
“We tabulated the performance of the department in respect of call book clearance in central excise and service tax during recent years and noted that the pendency of call book cases is still very high indicating the need for close monitoring of the process of review of call book items.
“During FY 2011-12, the number of call book cases pending for over one year has crossed 20,000 in respect of central excise alone. The need for strengthening monitoring and review is also brought out through our observations raised during the course of compliance audit,” it said.
As many as 30,542 call book cases related to central excise were pending during fiscal 2012, of which 21,966 were pending for a year, 2,874 were 6-12 months old, 2,438 cases were 3-6 months old and 3,264 pending for over three months, the report said.
A total of 9,590 cases related to service tax were pending in call book during 2011-12. Of these, 3,780 were pending for more than two years, 3,322 were between one and two years old and 2,488 cases pending for up to one year, it said.
As per CBEC norms, cases which have reached a stage where no action can or need be taken to expedite their disposal for at least six months may be transferred to the call book with the approval of the competent authority.
Also, the cases in which the department had gone in appeal or injunction has been issued by the Supreme Court, High Court or Tribunal etc, cases where audit objections are contested and where CBEC has specifically ordered the same to be kept pending are entered into the call book.
These call book pendency were in addition to about Rs 1.27 lakh crore central excise and service tax revenue stuck due to appeals and litigations pending before various authorities during 2011—12.
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.