The Comptroller and Auditor General (CAG), in a report tabled before the Parliament said that over Rs. Rs 1.2 lakh crore revenue is not able to recover due to appeals pending before various Tribunals and Courts.
“Huge amounts of revenue remain unrealized for substantial periods of time due to pendency of appeals,” the report stated.
“Cases involving revenue of Rs 1,22,008 crore were pending in appeals at the end of FY17 registering a 26 per cent increase over the amount pending at the end of FY16,” it said.
According to the report, around 45,500 appeals were pending during 2015-16. Out of these, 8,147 appeals were pending in the Supreme Court, 12,450 in High Courts, 189 in Settlement Commission, and an overwhelming 94,327 were pending with the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).
“As no action can be initiated for recovery of revenue till the appeal is pending, early disposal by the various authorities to bring in possible revenue of Rs 1,22,008 crore to the government coffers is important,” the report said.
“The success ratio ranges between 10 per cent to 12 per cent when the department went in appeal in CESTAT and High Court” where a majority of appeals are pending, it said.
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