Action likely against officials for delay in tax recovery

The commercial tax department of Odisha government is mulling to initiate departmental proceedings against five joint tax commissioners for delay in recovery of taxes from illegal trade of minerals such as iron ore and manganese.

The special commissioner of commercial taxes, in a show cause notice to the joint commissioners of Cuttack (both divisions), Jajpur, Sambalpur and Sundergarh range, said, since there was significant delay in recovery of tax dues from illegal trade of mineral, departmental action would be taken against them.

"In spite of several reminders to furnish the data (of tax recovery) no response has been received so far. Why departmental proceeding will not be contemplated against you for wilful disobedience to the instructions of the higher authorities and dereliction of duties," he said in the notice.

In 2008 and 2009, the sales tax wing of the directorate of vigilance had submitted a list of dealers in Sundergarh, Jajpur, Sambalpur and Cuttack area who were involved in illegal trading of iron ore, manganese and sponge iron and other related products.

The commercial tax department had then directed the joint commissioners to take action against the accused traders and recover the tax dues from them. Despite several directives being sent to these officials in 2012, 2013 and as early as in January 2014, no action has been taken.

In the show cause notice, the tax commissioners have been asked to submit their replies by February 17, failing which departmental actions would be initiated. The tax collection department has become pro-active for recovery of the dues in the backdrop of Shah Commission of inquiry report which said, Rs 60,000 crore worth minerals were extracted illegally from the state.

The state steel and mines department has already sent notices to the miners for recovery of the value of minerals which was extracted without any lawful authorities. The miners have gone to courts challenging the decision of the government.

Meanwhile, the commercial tax department has sent letters to six miners such as Rungta, Indrani Patnaik and Sirajuddin for recovery of the sales tax dues.

The Odisha government has so far been able to collect nearly Rs 5 crore from the sale of iron ore lying at Uliburu mine in Keonjhar district, where minerals worth Rs 1,800 crore were illegally raised by the power of attorney holder of the lessee. state vigilance wing is investigating the matter.