Illegal Mining: Govt Directs Fresh Assessment of Tax
By Express News Service | Published: 03rd February 2014 11:49 AM |
The State Government has directed the Commercial Tax department to make a fresh assessment of tax on minerals illegally mined and traded by mining lease holders and mineral trading companies to recover the revenue loss.
The Government’s directive came in the wake of the Shah Commission report pointing out huge loss of revenue to the State due to illegal mining and suppression of revenue earning by the mining companies and the mineral traders.
“Illegal mining of iron ore, manganese ore and other minerals in the State and non-payment of Government revenue in the form of royalty, commercial tax, income tax, and other tax revenue have formed the subject matter of inquiry of Justice MB Shah Commission. Suppression of huge revenue in the form of value added tax, central sales tax and entry tax have come to the knowledge of the revenue authorities,” special commissioner of Commercial Taxes said in an official communique to the Deputy Commissioner of commercial taxes (DCCT) of Mayurbhanj and Barbil circles.
The DCCT has been directed to reopen the assessment of dealers under section 43 of Odisha Value Added Tax (OVAT) Act and relevant sections of Central Sales Tax (CST) and Odisha Entry Tax (OET) Act, if escape assessment of turnover and loss of tax is detected on the basis of further examination of the information and data available in the records of the mining, income tax and vigilance departments.
“While examining the transactions for detection of escape assessment, emphasis should be laid on under valuation of sales proceeds, illegal and unaccounted raising of ore and its disposal and any colourful agreement and arrangements to defraud revenue,” the letter said. The DCCT has been asked to take up cases of seven lease holders on priority basis and the assessment should be made from 2006-07 onwards.
The lease holders are Basanta Kumar Das, Kasibeda Iron Mines, Jai Jagannath Movers Pvt Ltd, Indrani Patnaik, Unchabali Iron and Manganese mines, Mangilal Rungta, Silijora Kalimati Manganese and Iron Ore Mines, Sirrajudin and Company and Sarada Mines.
The Shah Commission has recommended recovery of nearly ` 60,000 crore from miners for unlawful extraction of iron and manganese ores.
Though the Commission has not quantified the scam in monetary terms, its recommendation was on the basis of the recovery notices issued by the State Government on the miners for excess mining of minerals.