Akshay Azad
JAMMU, Mar 7: The Finance department of cash starved Jammu and Kashmir is seemingly so prosperous that it has granted remission of taxes to the tune of Rs. 171.68 Crores to 18 unregistered industrial units in five years.
According to recent report of the Comptroller and Auditor General of India, it has been maintained that an amount of Rs. 91.13 Crore on account of tax remission was granted in favour of 18 unregistered industrial units besides interest of Rs. 80.56 was also leviable against these units, in the years ranging from 2005-06 to 2010-11.
The industrial units which were given tax waiver including Kissan Agro, Krishna Binding House, Electrotech, Eoton Laboratories, M.Z. Enterprises, National Steel Industries, Admn Stee, Alkaram, Ambrosia Pharma, Nishat Paints, Brijesh Industries, Khaldun Plastic Industries, Khyber Cements Private Limited, Northson Enterprises, Saifco Cements, Khyber Industries and Tramboo Cement.
The CAG report maintained according to Government notification dated March 16, 2006, it stipulated that industrial units should be formally registered with the department of Industries and Commerce and also with the Commercial Tax department.
Moreover, in two Commercial Taxes Circles, the CAG report reads as, it was noticed that 18 industrial units didn't get themselves registered with the Commercial Taxes Department under J&K VAT Act 2005, even during the extension of period of registration.
The Assessing Authorities, allowed remission of tax to above said dealers for the period from 2005-06 to 2010-11 irregularly in contravention of condition of the notification, which had resulted in irregular remission of tax of Rs. 91.13 Crore and consequent non levy of tax of Rs. 91.13 Crore, besides interest of Rs. 80.56 Crore was also leviable.
Moreover, the CAG further maintained that on being pointed out, the Commercial Tax Officer, Circle 'E' Srinagar stated (January 2013) that VAT registrations were not issued to unit holders due to preoccupation of the authorities in awareness programmes and that the process could not be carried out well in time. "The reply furnished is not tenable in view of the fact that no notice in Form VAT-43 had been issued by the Assessing Authorities to above said dealers for furnishing reasons for cancellation of their registrations. |
