The Chandigarh Zone of Customs, Central excise and service tax has registered a 26 per cent increase in Central excise collection in the first nine months of the current financial year over the corresponding period last year. The Customs collection witnessed an increase of 17 per cent, but the service tax collection has fallen by seven per cent.

The Chandigarh Zone comprises Chandigarh, Punjab, Himachal Pradesh and Jammu and Kashmir. According to the data, Central excise collection in the first nine months of the current financial year period has touched Rs 481.63 crore as compared to Rs 383.01 crore in the corresponding period of 2009-10, clearly showing signs of recovery for the manufacturing sectors. The upwardly swing in the excise collection in the region has been in tune with the national trend. The positive trends of rising collection have been witnessed across the board in Punjab and Jammu and Kashmir.

Also, the department has collected Rs 501.94 crore as Customs duty in the period compared to Rs 429.06 crore it collected during April-December in 2009.

The department has collected Rs 474.57 crore service tax up to December 2010 as compared to Rs 509.66 crore during the corresponding period in 2009. Officials said, besides evasion, manpower shortage is also one of the reasons causing fall in collections.

Further, concerned over evasion of Central excise and service tax, The Chandigarh Zone Customs Central Excise and Service Tax is increasing surveillance. The department hopes, with action against the defaulters compliance will increase and so will the collection. Earlier, the department had also issued showcause notice to cricketer Yuvraj Singh for evasion of service tax of Rs 1.32 crore and Rs 1.16 crore. It has also issued showcause notice to Ness Wadia-Preity Zinta promoted KPH Dream Cricket (pvt) Ltd for evasion of service tax of about Rs 5 crore.

Chandigarh tax department has set a target of Rs 690 crore for Central excise collection in the current financial year, while the target for service tax collection is Rs 825 crore and Customs duty is Rs 680 crore.