Mines closure caused customs duty loss in Odisha

Bhubaneswar: Impacted by mines closure in the state, customs duty collection in April-December period this year in Odisha has declined to Rs 1,353.76 crore from Rs 2,306.81 crore in the same period in the previous fiscal.

The central excise revenue, however, in the same period registered a growth of 51.52 per cent, while services tax revenue posted an expansion of 11 per cent.

Overall revenue (central excise, customs and service tax) in the nine-month period 5,900.98 crore, up is 4.67 per cent from Rs 5,637.37 crore in the same period last year.

“The main reason for negative growth in customs duty collection is because of less export of iron ore from the ports in Odisha due to closure of mines. The shortfall on account of export is to the tune of Rs 700 crore up to December 2014,” said S K Panda, Chief Commissioner, Central Excise, Customs and Service Tax, Bhubaneswar Zone.

While customs duty collection from mining sector was Rs 850 crore in the previous year, the amount this time by December, 2014 was Rs 150 crore.

“The growth of customs up to December 2014 is -41.31 per cent,” Panda said adding while the customs duty collection up to December 2014 is Rs 1353.76 crore, it was Rs 2306.81 crore up to December in last fiscal.

Stating that steps are being taken to fill up the gap by raising revenue collection from service taxes, he said the total revenue realisation this financial year up to December is Rs 5,900.98 crore. Therefore, the Bhubaneswar Zone has achieved 58.08 per cent of its target till December, 2014.

“Overall growth of revenue upto December in all three heads (central excise, customs and service tax) is 4.67 per cent. Total collection by December 2014 is Rs 5900.98 crore as against Rs 5637.37 crore by December of last fiscal, he said.

Panda said the growth in the central excise up to December is 51.52 per cent while the growth in the service tax upto December, 2014 is 11 per cent.

Central excise duty collection up to December is Rs 3,196.97 crore against Rs 2,110 crore by December last fiscal.

Similarly, while the service tax collection up to December is Rs 1,350.25 crore, it has been Rs 1,220.52 crore up to December in last fiscal.

During the period from April to December 2014, Rs 64.96 crore was realised through scrutiny of returns involving 60 cases of both central excise and service tax, he said.

“The total anti-evasion detection of 20 number of cases amounting to Rs 368.17 crore have been made during the period whereas in 36 number of cases an amount of Rs 14.66 crore have been realised,” Panda said.

Similarly, revenue also came from audit detection, adjudication of cases, provisional assessment, call book cases and closure of audit paras, he said.

To a question, Panda said a customs commissionerate has opened in the state in October 2014 which would ensure that the duty are properly collected from the export of materials through ports.

He also said the department has put in service four boats including two high speed ones, for detecting import and exports of smuggled goods.