CAG points out at underpayment of excise duty to UP govt by Radico Khaitan

New Delhi, August 22 (SocialNews.XYZ) The Comptroller and Auditor General (CAG) of India has pointed out at reported underpayment of excise duty worth Rs 1,078.09 crore, including taxes, to the Uttar Pradesh government by Radico Khaitan Ltd.

Radico Khaitan is the manufacturer of 8 PM whiskey and Magic Moments vodka.

According to the CAG report, "the assistant excise commissioner, Radico Khaitan Limited, Rampur failed to monitor consumption of input excise material shown in excise records vis-a-vis returns filed in Income Tax Department (ITD) resulted in not detecting understatement of consumption of input excise material involving excise revenue of Rs 1,078.09 crore (including interest of Rs 482.34 crore) during the period 2013-14 to 2019-20".

Records related to molasses, grain and barley malt used for the manufacture of liquor, were examined by the auditor. 

It also compared the consumption figures of molasses, grain and barley malt submitted by the assessee through statutory returns to the (ITD) with the respective quantities depicted in the records of the Assistant Excise Commissioner (AEC), Radico Khaitan Limited, Rampur, where variation in quantities disclosed in the records and returns submitted to the income tax department compared to those available with the state excise department, were reportedly noticed.

“The variations found in the consumed material indicate that the assessee had understated the consumption of inputs items in excise records, involving excise revenue of Rs 595.75 crore on which interest of Rs 482.34 crore was leviable,” the CAG said.

Radico Khaitan contributes about 30 per cent of the excise revenue of the state.

Source: IANS