Black sheep in Excise Department delaying probes: Lokayukta
Bhartesh Singh Thakur
Tribune News Service
Chandigarh, August 9
Haryana Lokayukta Justice Nawal Kishore Agarwal (retd) has come down heavily on the Excise and Taxation Department for delaying probe into tax evasion cases. He made the comment while referring to a case related to the misuse of tax identification number (TIN) of one firm by another.
In 2017, a Sirsa resident had approached the Lokayukta against Pratham Industries for allegedly cheating the state government of lakhs of rupees by using the TIN of another firm, Manish Marbles.
In February 2019, the Lokayukta had asked the Additional Chief Secretary (ACS), Excise and Taxation Department, to inquire into the matter. In spite of several reminders, the department did not file a report.
On February 10 this year, a show-cause notice was issued to the ACS. Even then the department submitted an action-taken report, and not the inquiry report, to the Lokayukta on March 6.
By that time, the cases against Pratham Industries became time-barred. It means an investigation Pratham Industries against the industry could not be carried out. The Section 16 of the Haryana VAT Act sets a three-year time limit on investigations into tax evasion cases.
The complaint against Pratham Industries pertaining to the period from 2006 to 2009, but the complaint was received in 2017. So, as per the Act, the cases were time-barred.
The Lokayukta, in its July 27 order, observed that the action-taken report issued by the Joint Excise and Taxation Commissioner (Range), Hisar, and endorsed by the Excise and Taxation Commissioner claimed that “the cases against Pratham Industries have become time-barred and Manish Marbles is not involved in tax evasion”.
“The Excise and Taxation Department did not wait for the report of this authority (Lokayukta) and decided the matter at its own end,” the Lokayukta said.
He added the matter related to Sirsa firms showed that excise and taxation officers were ignoring tax evasion and if it was taken as an example, it would not be difficult to presume the quantum of loss to the public exchequer on account of tax evasion in the entire state.
“There is not an iota of doubt in my mind that there are some black sheep in the department, who delayed the enquiries and have not done their duties to detect such matters,” the Lokayukta said in his report.
He called for a fresh enquiry into the case by the ACS (Excise and Taxation) and for taking stern action against erring officials “if complainant’s allegations are correct”.
The trigger
In 2017, a Sirsa resident approached the Lokayukta against Pratham Industries for allegedly cheating the state of lakhs. It allegedly used tax identification number of another firm
In Feb 2019, the Lokayukta had asked the Additional Chief Secretary (ACS), Excise and Taxation, to probe the matter. In spite of several reminders, the dept did not file a report
On Feb 10 this year, a show-cause notice was issued to the ACS. Even then the dept submitted an action-taken report, and not the inquiry report, to the Lokayukta on March 6
