Biggest Business battles of 2012

3. Service Tax and Central Excise Duty

Comptroller and Auditor General of India (CAG) said that there over 10,300 cases of fraud involving over 19, 159 crore in service tax and central excise duty during 2008-11.

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The audit scrutiny revealed that Department of Revenue raised a demand of 7, 654.23 crore in central excise and only recovered 328.67 crore (4.29 per cent) out of it. "Similarly, out of a penalty of 320.85 crore (in central excise) that was imposed, the department could recover only 0.94 crore (0.29 per cent)," it said. In service tax also, the CAG observed the department raised a demand of 9, 905.84 crore and recovered only 2, 706 crore (27.32 per cent).

In the audit report of central excise CAG mentioned 17 cases involving uneven advantage and consumption of cenvat credit revenue worth 25.36 crore.

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