Rs 2-lakh-crore tax dues cannot be recovered

Unrecovered sum is just from 379 cases, was almost equal to what the govt received from personal income tax in 2012-13

The Income Tax Department failed to recover tax revenue of about Rs 1.9 lakh crore in 379 cases as on December 31, 2012, as there were no or insufficient assets in these cases. The unrecovered sum and was almost equal to that collected as personal income tax during 2012-13. Also, according to Central Board of Direct Taxes (CBDT) data, another Rs 3,657 crore from 102 cases could not be recovered as the assessees concerned were not traceable.

The Central Board of Excise & Customs (CBEC), too, has reported non-recoverable taxes in 15,500 cases — to the tune of Rs 4,796 crore. The board has said these cases are fit for a write-off.

Expressing concern over failure in recovery of revenue dues, Parliament’s standing committee on finance has asked the government to find out how such huge dues in these cases became unrecoverable.

There are 3,519 cases of central excise duty evasion, involving Rs 2,812 crore, which cannot be recovered. In Customs, the number of cases where recovery is not possible is even higher —7,058, involving Rs 1,450 crore. Besides, service tax dues to the tune of Rs 506 crore cannot be recovered in 4,923 cases.

Further, CBDT has found that the arrear demand in 2012-13 increased to Rs 4,82,027 crore from Rs 3,33,079 crore and Rs 2,48,927 crore in the previous two years. The rise in indirect tax arrears was even steeper. Those from excise, Customs and service tax rose to Rs 1,03,975 crore in 2012-13 from Rs 33,791 crore the previous year. Service tax arrears saw a 10-fold increase.

	Number of cases	Amount involved (in Rs crore)
CBDT
No assets for recovery	379	1,94,073
Assessees not traceable	102	3,657,33
CBEC
Central Excise	3,519	2,812.48
Customs	7,058	1,450.88
Service Tax	4,923	506.12
Total	15,500	4,769.57
Source: Standing Committee on Finance

Replying to the standing committee’s direction, the finance ministry said most of these cases were locked in appeals. It was pressing for early hearing of petitions and trying to get stay orders vacated. Dedicated teams of officers had been set up in the field formations for expeditious recovery of dues, the ministry added.

The rely has, however, not impressed the committee, which has now recommended “urgent, time-bound and concrete action.”