Question : INDIRECT TAX EVASION

MINISTER OF FINANCE (SHRI PRANAB MUKHERJEE)

(a) to (d): A statement is laid on the Table of the House.

Statement referred to in reply to Lok Sabha Starred Question No. 406 for 04.05.2012

(a) Yes, Sir.

(b)&(c) Details of cases of evasion of Central Excise duty noticed in respect of steel and pharmaceutical companies during the last three financial years are as follows:

(Rs. In Crore)
Year	No. of	Duty	Amount	Cases	Involved	Recovered
2009-10	890	948.35	61.33
2010-11	910	980.42	78.04
2011-12	687	468.23	94.13

Company-wise details of cases involving duty evasion of Rs. 5 crore and above, including the amounts recovered and the amounts yet to be collected in the last three financial years are furnished in Annexure – A.

Details of cases of evasion of Service Tax noticed in respect of educational/coaching and training institutions as well as steel and pharmaceutical companies during the last three financial years are as under:

(Rs. In Crore)
Year	No. of	Tax	Amount	Cases	Involved	Recovered
2009-10	196	331.66	8.84
2010-11	176	286.32	8.31
2011-12	202	409.16	19.12

Company-wise details of cases involving Service Tax evasion of Rs. 10 lakh and above, including the amounts recovered and the amounts yet to be collected in the last three financial years are furnished in Annexure – B.

(d) Field formations as well as Directorate General of Central Excise Intelligence (DGCEI) regularly detect and check evasion of taxes and effect recovery of arrears. The assessees are issued show cause notices to demand taxes along with interest and penalty, including mandatory penalty. In serious cases, offenders are also prosecuted. The Department also carries out periodic audit of assessees to detect non-levy/short-levy of taxes. After confirmation of demands and completion of appellate proceedings, recovery proceedings are initiated in terms of legal provisions.