The Comptroller and Auditor General (CAG) of India has sharply criticized the Maharashtra State Excise Department for operational failures leading to a revenue loss exceeding ₹214 crore. The audit report, released on Friday, highlights multiple lapses, including improper fee assessments and unauthorized duty exemptions, raising serious concerns about the department’s efficiency.

The CAG found that incorrect assessments of licence renewal fees resulted in a loss of ₹20.15 crore in revenue and ₹70.22 crore in interest. Failure to implement revised supervision fee rates caused an additional shortfall of ₹1.20 crore. The report also flagged the then Excise Commissioner’s unauthorized exemption of excise duty on old beer stock, which lacked state government approval.

Delayed submission of mild beer samples for chemical analysis further hampered tax recovery, costing the state ₹73.18 crore. Under the Bombay Prohibition (Privilege Fee) Rules, 1954, fees for partnership changes were enforced, but the absence of provisions for shareholding changes in public limited companies led to a ₹26.93 crore loss. Additionally, the lack of a mechanism to declare production costs missed further revenue opportunities.

Also Read: Raj Thackeray Threatens School Shutdowns Over Hindi

The audit revealed undervaluation of production costs for 11 products at the Canteen Stores Department (CSD), causing a ₹38.34 crore loss in excise duty. Errors in assessing the purchase cost of imported foreign liquor resulted in non-collection of ₹11.48 crore from August 2018 to March 2022 and ₹2.89 crore from May 2017 to March 2022.

The CAG’s findings, based on a test check of records from 2017-22, underscore systemic inefficiencies in the Excise Department, prompting calls for urgent reforms to prevent future losses.

Also Read: Maharashtra’s Bold Grab for 14 Telangana Villages Sparks Outrage!