Maharashtra excise department lapses caused revenue loss of several crore rupees: CAG

The Hindu

19-07-2025

The Comptroller and Auditor General (CAG) of India has pulled up the Maharashtra State excise department for serious lapses in its operations, which have led to a substantial revenue shortfall.
The CAG report pointed out that due to incorrect assessment of licence renewal fees, the State lost ₹20.15 crore in revenue and ₹70.22 crore in interest.
The audit further stated that failure to implement revised rates for supervision fees had caused an additional shortfall of ₹1.20 crore.
According to the report, the then Excise Commissioner exempted excise duty on old stock of beer without obtaining prior approval from the State government.
The report also highlighted that the delayed submission of mild beer samples for chemical analysis had hampered tax recovery to the tune of ₹73.18 crore.
"Under the Bombay Prohibition (Privilege Fee) Rules, 1954, a provision exists to charge fees for changes in partnership. However, no such provision was applicable to significant changes in shareholding of public limited companies, resulting in a loss of ₹26.93 crore to the state," the CAG observed.
The absence of a provision in the Excise Act for declaring production cost also led to a missed opportunity for the government to earn additional revenue, it added.
The audit further revealed that in the case of Canteen Stores Department (CSD), the production cost of 11 products or brands was undervalued, causing a revenue loss of ₹38.34 crore in excise duty.
Additionally, errors in the purchase cost of imported foreign liquor resulted in non-collection of Rs 11.48 crore between August 2018 and March 2022, and ₹2.89 crore between May 2017 and March 2022.
The cumulative effect of these lapses caused a massive revenue loss for the government, raising serious concerns about the functioning of the Excise Department, the CAG stated.