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CBEC puts recoverable indirect tax arrears at Rs 4,484 cr
September, 05th 2006
The total indirect tax arrears of Rs 24,605 cr includes substantial unrecoverable arrears. The Finance Ministry has estimated the level of recoverable indirect tax arrears at Rs 4,484 crore out of total indirect tax arrears of Rs 24,605 crore as on July 31 this year. Central excise arrears forms the largest chunk in the indirect tax arrears pie of the revenue department at Rs 17,945 crore. While customs duty arrears as on July 31 stood at Rs 5,868 crore, service tax arrears stood at Rs 792 crore. The total indirect tax arrears of Rs 24,605 crore includes substantial unrecoverable arrears owing to factors such as defaulting units being under the Board for Industrial and Financial Reconstruction or due to proceedings initiated by the Debt Recovery Tribunal. A Central Board of Excise and Customs spokesperson explained that recoverable arrears are basically those arrear amounts on which restrictions have not been placed on the revenue department through any court orders etc. In 2005-06, the Revenue Department had recovered indirect tax arrears of Rs 3,140 crore as against target of Rs 2,700 crore. In 2006-07, it has set for itself an indirect tax arrears recovery target of Rs 2,450 crore.
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