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Radico Khaitan underpaid Rs 1,075 crore excise duty to UP govt: CAG

Interest is computed at the rate of 18 per cent per annum for delay in payment

CAG

CAG

Indivjal Dhasmana New Delhi

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The Comptroller & Auditor General (CAG) of India has said that liquor major Radico Khaitan underpaid excise duty to the tune of Rs 595.75 crore from 2013-14 to 2019-20 by not accurately reporting the inputs used to produce alcohol.

The duty after an interest of Rs 482.34 crore has now stood at Rs 1,075 crore, CAG said in its report on the state revenues tabled in the assembly earlier this month. 

Interest is computed at the rate of 18 per cent per annum for delay in payment.

The CAG also found assessing officers guilty in this regard and recommended appropriate action against them.  

The audit agency recommended the recovery process to be initiated against the company as this is tantamount to loss of revenue to the public exchequer.

CAG also reported this anomaly to the government of Uttar Pradesh in April 2022 and was still waiting for the response till the report was published.

While comparing the figures of Radico Khaitan’s income-tax returns (ITR) for the period under review, CAG noticed a difference of Rs 595.75 crore.

The consumption quantity of inputs was shown less in the documents submitted to the excise officials compared to those in ITRs.

Molasses, grains, and malt used as input material are fermented and distilled to obtain wash/spirit as an intermediate product, which is redistilled, compounded, blended, processed, and diluted to produce final products like liquors and other intoxicants.

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First Published: Aug 22 2023 | 9:08 PM IST

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