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Indirect tax dues recovery target set at Rs 2,450 cr
August, 21st 2006
The Finance Ministry has set for itself an indirect tax arrears recovery target of Rs 2,450 crore for 2006-07. Of this target, the Central Board of Excise and Customs (CBEC) expects to recover Rs 650 crore as Customs duty, Rs 1,300 crore as Central Excise duty and Rs 500 crore as service tax arrears. Official sources said that the Revenue Department had recovered Rs 3,139.65 crore as indirect tax arrears in 2005-06 against a target of Rs 2,700 crore. As on February 28 this year, the total indirect tax arrears pending recovery stood at Rs 21,578 crore. Out of this amount, Rs 7,533 crore has been stayed by various courts and hence was not recoverable. Sources said that there were also substantial unrecoverable arrears, outside the purview of any stay, owing to factors such as the defaulting units being under the Board for Industrial & Financial Reconstruction (BIFR) or due to proceedings imitated by the Debt Recovery Tribunal (DRT).
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