| The CAG, which tabled its report in Parliament, also criticised the government for lapses like short levy and irregularities in assessment that led to revenue shortfall. | |
| Of the total direct tax demand of Rs 1,93,106 crore, CAG said about Rs 88,017 crore -- Rs 57,064 crore of earlier years and Rs 30,953 crore of 2003-04 -- remained uncollected. | |
| The percentage of recovery of tax demands declined to 19 per cent in 2003-04 from 22 per cent in 2002-03, CAG said, adding, "81 per cent of the certified amount remained uncollected at the end of 2003-04." | |
| In case of indirect taxes, the CAG said, "The amount of duty foregone under various export promotion schemes during the year was Rs 39,704 crore, which was 82 per cent of the total Customs receipts." | |
| The government also lost Rs 795.27 crore in duty due to failure to recover benefits of export incentives under advance licencing schemes and EOU from defaulting exporters, it pointed out. | |
| Custom duty foregone due to "adhoc exemptions" increased seven times to Rs 258 crore in 2003-04, it said. | |
| Customs collections for 2003-04 fell short of the budget target of Rs 49,350 crore by Rs 737 crore. | |
| In case of excise, the CAG said 54,560 cases involving duty of Rs 23,275.77 crore were pending finalisation of March 31, 2004, with different authorities like adjudicating officers, tribunals, high courts and the Supreme Court. Short or non-levy of excise duty totalled Rs 1,897.94 crore in 2003-04, the CAG said. | |
| The CAG criticised the finance ministry for making "optimistic" projections despite falling short of budget estimates year after year. | |
| Excise was budgeted at Rs 9,96,396 crore but actual collections fell short by Rs 6,006 crore in 2003-04.
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