an analytical report on central excise with graphs & charts

DIRECTORATE OF DATA MANAGEMENTCUSTOMS & CENTRAL EXCISE

NEW DELHICENTRAL EXCISE

Monthly Revenue Performance Report(October, 2014)

1. CENTRAL EXCISE REVENUE TREND UPTO OCTOBER, 2014

Net Revenue realization upto October, 2014 is 81830.61 Crore, which is 3.83% less than the revenue of 85092.54 crore realized over the corresponding period last year.

2. ALL INDIA ZONAL REVENUE TREND WITH REVENUE ANALYSIS

The zone wise revenue realization trend upto October, 2014 is given below: ( in Crores)

S. No.

Name of The Region / Zone

Target 2014-15

(BE)

Revenue Upto October 2013-14

Revenue Upto October 2014-15

Excess / Shortfall in Revenue

over 2013-14

% Age Excess / Shortfall

over 2013-14

1 Mumbai-I 19750 8838.23 9268.31 430.08 4.87

2 Mumbai-II 12700 5577.41 5509.75 -67.66 -1.21

3 Pune 7230 2938.62 2434.24 -504.38 -17.16

4 Nagpur 5070 2081.85 2080.38 -1.47 -0.07

5 Vadodara 14285 6284.77 6092.13 -192.64 -3.07

6 Ahmedabad 10110 4211.03 4288.25 77.22 1.83

I Western Region 69145 29931.91 29673.06 -258.85 -0.867 Bangalore 8600 3799.34 3702.51 -96.83 -2.55

8 Mysore 8170 3697.84 3772.56 74.72 2.02

9 Cochin 7050 3319.51 3230.36 -89.15 -2.69

10 Hyderabad 5330 2038.07 1913.34 -124.73 -6.12

11 Vishakhapatnam 9170 4039.13 3977.52 -61.61 -1.53

12 Chennai 11250 4517.77 4196.02 -321.75 -7.12

13 Coimbatore 2795 1234.99 1086.21 -148.78 -12.05

II Southern Region 52365 22646.65 21878.52 -768.13 -3.3914 Lucknow 6900 3222.88 3755.66 532.78 16.53

15 Meerut 10360 4173.39 4344.52 171.13 4.10

16 Ranchi 13920 5874.85 5936.85 62.00 1.06

17 Delhi 15150 6396.17 5865.25 -530.92 -8.30

18 Chandigarh 6650 2928.45 2253.56 -674.89 -23.05

19 Jaipur 9200 4130.41 4132.10 1.69 0.04

20 Bhopal 14220 5567.57 6293.58 726.01 13.04

III Northern Region 76400 32293.72 32581.52 287.80 0.8921 Kolkata 10210 4441.65 4572.86 131.21 2.95

22 Bhubaneshwar 4160 1516.77 2331.58 814.81 53.72

23 Shillong 4650 2130.08 2146.22 16.14 0.76

IV Eastern Region 19020 8088.50 9050.66 962.16 11.90

Net Excise Revenue 216930 92960.78 93183.76 222.98 0.24

Excise drawback paid by Customs 11478 7868.24 11353.15 3484.91 44.29

All India Total 205452 85092.54 81830.61 -3261.93 -3.83

Note: Figures have not been uploaded on DDM website during October, 2014 by Kolkata-V and Kolkata-VII Commissionerates.

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2.2 CHIEF COMMISSIONER’S REPORT FOR SHORTFALL IN REVENUE

Out of 23 Zones, 12 have realized less revenue as compared to the last year. Chief Commissioners of Mumbai-II, Pune, Nagpur, Vadodara, Bangalore, Cochin, Hyderabad, Vizag, Chennai, Coimbatore, Delhi and Chandigarh have reported shortfall in revenue. Revenue Analysis has been received from the Chief Commissioners Mumbai-II, Pune, Nagpur, Bangalore, Cochin, Vizag, Chennai and Coimbatore.

MUMBAI-II ZONE

The actual revenue realization upto October, 2014 is Rs.5509.75 Crores as against Rs.5577.41 Crores upto October, 2013 resulting in a negative growth of Rs.67.66 Crores (1.21%).

Brief revenue analysis with special reference to major assessees and commodities

Sr. No

Name of the Commodity Group

Percentage Revenue

Contribution to the total gross revenue (%)

Excess / Shortage upto the month as

compared to previous year (Rs. In Crores)

Reasons for shortfall

PLA CENVATPetroleum Products including Motor Spirit, R.D. Oil and all others in Ch. 27

79.59 404.47 -417.51 Gain.

2 Tobacco products 5.11 22.67 2.82 Gain.

Iron and steel & Articles of iron & steel

4.46 -162.6 460.21

M/s JSW Ispat has paid less payment through PLA to the tune of Rs.147.66 Cr. as compared to last year and availed more cenvat credit of Rs. 144.67 Cr. accumulated on account of procurement of (raw material (Rs. 88 Cr.+ finalisation of PA 12 Cr. credit on import Rs. 10 Cr., Service Tax credit Rs. 12 Cr.) Also they have Cenvat credit closing balance of Rs.21 Cr. Further, there is shortfall in PLA to the tune of Rs. 6.83 cr. and increase in cenvat credit utilisation of Rs. 32.57 cr. available due to increase in export value (1.10 Cr.) and total credit on imported inputs 5.06 cr. by M/s Mukund Ltd. and purchase of local inputs of Rs. 19.16 crores.

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Chemicals, plastics & Misc. Chemical products including Soap & Detergent, Paint & Dyes etc.

3.19 -4.17 235.51

M/s VVF (India) Ltd. less duty in PLA of Rs. 15.74 crores as Custom duty reducted from 15% to 7.5% from July 2014. Also there is reduction in clearances in the current financial year. M/s Godrej Industries have paid less PLA revenue to the tune of RS. 1.13 due to shifting of unit outside the Commissionerate.

5 Electrical and Non-Electrical Machinery including refrigerator & air conditioner &

its parts thereof

2.00 -43.51 -220.23 The rate of duty of Chapter 84 & 85 has been decreased from 12.36% to 10.24% on account of budgetary changes, which resulted in less revenue collection. Further, downfall in PLA is due to the fact that most of the companies falling under this

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Chapter heading have more cenvat credit balance as they received raw material at higher rate of duty i.e. 12% and clearing their goods at lower rate of duty i.e. @ 10%. Shifting of one of the plant of M/s L&T (Switchgear Plant) out of the Mumbai II Commissionerate to Vadodara Commissionerate. M/s Voltas Ltd. have shifted their Forklift Division to

6Rubber Products including tyres & tubes

0.76 -5.5 3.04

The clearances of tyres has reduced by 139915 nos. during the period April to October 2014-15 over the same period of last year by M/s CEAT Ltd resulting loss of revenue to the tune of Rs. 2.21 Cr. Further, M/s Basant Rubber has paid less payment in PLA of Rs. 0.60 crores and utilised more cenvat credit accumulated on account of Notfn. No. 21/2014. M/s AVI Worldwide has started the manufacture of new product under Ch. 40 from April, 2014and hence there is considerable decrease in a product made under Ch. 87. Also, less payment in PLA and utilised more cenvat credit available due to increase in imported / indigineous inputs and high value export by M/s Polyrub Extrusion and M/s AVI Worldvide respectively.

7 Paper & Paper Board 0.36 1.24 3.73 Gain.

8 Glass & Glassware 0.33 -10.16 5.39

Temporary shut down of M/s. Asahi Glass due to furnace problem resulting loss of revenue to the tune of Rs. 11.71 Cr.

9 Ceramic Products 0.28 -0.20 3.53

M/s Nitco Ltd there is decrease in PLA by Rs 2.04 Crores and increase in Cenvat by Rs 2.87 Crores over last year even though the duty paid including PLA and Cenvat has increased by Rs 0.83 Lakhs compared to last year. This is mainly due to higher utilization of Service Tax credit by the assessee compared to last year.

10 Pharmaceutical Products 0.27 4.22 -4.97 Gain.

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PUNE ZONE

The actual revenue realization upto October, 2014 is Rs.2434.24 Crores as against Rs.2938.62 Crores upto October, 2013 resulting in a negative of Rs.504.38 Crores (17.16%).


Analysis of the factors affecting revenue growth:

(a) Impact of Refund/Rebate: Refunds/Rebate have increased from Rs. 696.61 Crore upto October, 2013 to Rs. 839.24 Crore upto October, 2014 causing a decline in revenue collections by Rs. 142.63 Crore (-20.47%).

(b) Motor Vehicle sector: The motor vehicle sector alone accounts for almost 29% of the zonal revenue. During the period upto October, 2014 the performance in this sector has not been very encouraging leading to a shortfall of Rs.(-) 209.53 Crore vis-à-vis the corresponding period upto October, 2013 of the previous fiscal. The major factor contributing to the shortfall in revenue collection from the Motor Vehicle Sector is the reduction in Central Excise duties from 12% to 8% on small cars, commercial vehicles and trailers, 30% to 24% on SUVs and reduction in rate of duty on large and mid segment cars from 27% and 24% to 24% and 20% respectively vide Notification No.4/2014-Central Excise, dated 17.02.2014. The reduction in duty rates have not translated into increase in volumes for the auto majors viz., M/s Volkswagen India Pvt. Ltd., M/s Mahindra Vehicle Manufacturers Ltd., and M/s Fiat India Pvt. Ltd., as their domestic clearances have declined by -28.60%, -23.40%, and -17.14% respectively.

(c) Electrical & Non-Electrical Machinery Sector: Goods falling under Chapter 84 & 85 are a major contributor to the Zonal revenue. The gross revenue collection upto October, 2014 from this sector is Rs. 311.74 Crore vis-à-vis Rs. 480.12 Crore upto October, 2013. The revenue shortfall on this account upto October, 2014 is Rs. (-) 168.38 Crores (-35.07%). The primary reason for shortfall in revenue is the reduction in rate of duty from 12% to 8% & 10% vide Notification No.04/2014-CE dated 17.02.2014.The major units in this category are M/s Cummins India Ltd., M/s Thermax Ltd., M/s Taco Hendrick Suspension Pvt. Ltd., M/s Keihin Fie Pvt. Ltd., M/s Eagleburgmann India Pvt. Ltd., M/s Indocount ED, M/s Kirloskar Oil Engines Ltd., M/s Hager Electro Pvt. Ltd., M/s Cummins Tech India Ltd., M/s Manugraph (I) Ltd., and M/s Alfa Laval (I) Ltd.

(d) Tobacco Sector: The gross revenue collection upto October, 2014 from this sector is Rs. 702.38 Crore vis-à-vis Rs. 767.29 Crore upto October, 2013. The revenue shortfall on this account upto October, 2014 is Rs. (-) 64.90 Crores (-8.46%). M/s ITC Ltd. is the lone manufacturer of Cigarettes in this Zone. The period upto October, 2014 has witnessed a negative growth of -19.74% in production and negative growth of (-) 13.73% in domestic clearances as compared to the corresponding period of the previous fiscal. The increase in rate of duty in the Union Budget of F.Y.2014-15 had translated into a positive revenue contribution in the first two quarters of the current fiscal, however with increase in export clearances by 111% and decrease in DTA clearances by -13.73%, the revenue trend has reversed to a decline. The revenue collection upto October, 2014 from this unit is Rs. 670.35 Crore vis-à-vis Rs. 737.18 Crore upto October, 2013. The revenue shortfall upto October, 2014 is Rs. (-) 66.83 Crore (-9.07%).

Revenue trend of Top 10assessees in the Zone.

The revenue collection from the Top 10 assessees in the zone has registered a negative growth of Rs. (-) 190.05 Crore (i.e.-11.81%) upto October, 2014 vis-à-vis upto October, 2013. The gross revenue contributed is Rs. 1419.64 Crore upto October, 2014 as against Rs. 1609.69 upto October, 2013.

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Positive Revenue trend amongst major assessees in the Zone.

M/s Mercedes Benz India Pvt. Ltd.

M/s Mercedes Benz India Pvt. Ltd. is a major motor car manufacturer in the premium segment. The unit has posted a positive growth of 11.95% in domestic clearances leading to a growth of Rs. 15.96 Crore (8.21%) in revenue collection upto October, 2014 vis-à-vis the corresponding period upto October, 2013. The revenue collected upto October, 2014 is Rs.210.42 Crore as against Rs. 194.46 Crore upto October 2013.

M/s Coca Cola India Pvt. Ltd.

M/s Coca Cola India Pvt. Ltd. is a major manufacturer of non alcoholic beverages in the zone. The unit has posted a positive growth of 16.61% in domestic clearances leading to a growth of Rs. 17.90 Crore (15%) in revenue collection upto October, 2014 vis-à-vis the corresponding period upto October, 2013. The revenue collected upto October, 2014 is Rs.137.23 Crore as against Rs.119.33 Crore upto October, 2013.

M/s Ultratech Cement Ltd.

M/s Ultratech Cement Ltd., have posted an increase of 24.73% in domestic clearances leading to a growth of Rs. 15.29 Crore (61.48%) in revenue collection upto October, 2014 vis-à-vis the corresponding period upto October, 2013. The revenue collected upto October 2014 is Rs.40.16 Crore as against Rs.24.87 Crore upto October, 2013.

NegativeRevenue trend amongst major assesses in the Zone.

M/s Mahindra Vehicle Manufacturers Limited.

The revenue collection upto October, 2014 from this unit is Rs.250.04 Crore vis-à-vis Rs.320.57 Crore upto October, 2013. The net revenue shortfall upto October, 2014 is Rs.(-)70.53 Crore(-22%). The primary reason for shortfall in revenue collection can be attributed to the reduction in Central Excise duties vide Notification No.4/2014-Central Excise, dated 17.02.2014 coupled with a decline of -23.40% in domestic clearances during the period upto October, 2014 vis-à-vis the corresponding period upto October, 2013. As against 57861 units of motor vehicles cleared in DTA upto October, 2013, only 44324 units have been cleared in DTA upto October, 2014.

M/s Volkswagen India Pvt. Ltd.

The revenue collection upto October, 2014 from this unit is Rs.1.97 Crore vis-à-vis Rs. 30.71 Crore upto October,2013, thereby registering a negative growth of Rs. (-) 28.74 Crore(-93.59%). The production has increased by 13.52% i.e. 7797 units upto October, 2014 vis-à-vis to the period upto October, 2013. However, the increased production is not commensurate to the quantum of domestic clearances. The domestic clearances have witnessed a fall of -28.60% during the period upto October, 2014. From 41945 units of motor cars cleared upto October, 2013, only 29947 units have been cleared upto October, 2014. Whereas, exports have risen drastically by 168.36% upto October, 2014 vis-à-vis to the period upto October, 2013. As against 14573 units of motor vehicles valued at Rs. 1272.67 Crore exported upto October, 2013, 39109 units valued at Rs. 2587.47 Crore has been exported upto October, 2014.

M/s Fiat India Pvt. Ltd.

The company is a major supplier of engines to other automobile manufacturers besides manufacturing their own cars. The revenue collection upto October, 2014 from this unit was Rs. 11.20 Crore vis-à-vis Rs. 67.81 Crore upto October, 2013. The revenue shortfall upto

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October, 2014 is Rs. (-) 56.61 Crore (-83.48%). The major reason for the negative growth is the decline in production by 12.12% and clearance by 17.14%.

M/s ITC Ltd.

M/s ITC Ltd., is the lone manufacturer of Cigarettes in this Zone. The period upto October, 2014 has witnessed a negative growth of -19.74% in production and negative growth of (-) 13.73% in domestic clearances as compared to the corresponding period of the previous fiscal. The increase in rate of duty in the Union Budget of F.Y.2014-15 had translated into a positive revenue contribution in the first two quarters of the current fiscal, however with increase in export clearances by 111% and decrease in DTA clearances by -13.73%, the revenue trend has reversed to a decline. The revenue collection upto October, 2014 from this unit is Rs. 670.35 Crore vis-à-vis Rs. 737.18 Crore upto October, 2013. The revenue shortfall upto October, 2014 is Rs. (-) 66.83 Crore (-9.07%).

M/s Loreal India Pvt.Ltd.

The revenue collection upto October, 2014 from this unit is Rs. 26.21 Crore vis-à-vis Rs. 39.21 Crore upto October, 2013. The revenue shortfall upto October, 2014 is Rs. (-) 13.00 Crore (-33.15%). The shortfall in revenue collection can be attributed to decline in domestic clearances by -78.03% during the period upto October, 2014 vis-à-vis the corresponding period upto October, 2013.

M/s Colgate Palmolive (I) Pvt.Ltd (M/s. Professional Oral Care)

The company is a manufacturer of Tooth Pastes. The revenue collection upto October, 2014 from this unit is Rs. 41.39 Crore vis-à-vis Rs. 42.09 Crore upto October, 2013. The revenue shortfall upto October, 2014 is Rs. (-) 0.70 Crore (-3.64%). The shortfall in revenue collection can be attributed to 20% increase in export as compared to earlier period leading to higher availability of Cenvat Credit. The assessee’s Export clearances upto the month of October, 2013 was 2.66 Crore nos of Tooth Pastes valued at Rs.19 crores whereas this year upto October, 2014 the Export clearance was 3.19 Crore nos. valued at Rs.21 crores.

M/s Mahindra & Mahindra Ltd.

The company is a major supplier of M.V.Parts to other automobile manufacturers. The revenue collection upto October, 2014 from this unit was Rs.30.67 Crore vis-à-vis Rs. 33.46 Crore upto October, 2013. The revenue shortfall upto October, 2014 is Rs. (-) 2.79 Crore(-8.34%). The major reason for the negative growth is the decline in production by -28.06% and clearance by -28.97%.

NAGPUR ZONE The actual revenue realization upto October, 2014 is Rs.2080.38 Crores as against Rs.2081.85 Crores upto October, 2013 resulting in a negative growth of Rs.1.47 Crores (0.07%).


Assessees

Out of these top 10 Assessees, only Four Assessees are showing shortfall in revenue and the remaining Six Assessees are showing positive growth in revenue upto Oct,2014 as compared to Oct,2013.

(1) M/s. Mahindra & Mahindra Limited, Nasik: - Net revenue in Current F.Y. is Rs. 321.44 Cr. as compared to Rs. 539.13 Cr. in F.Y.13-14 showing a shortfall of Rs. 217.69 Cr. i.e. 40.38%. Clearance quantity in current year is 58061 vehicles as compared to 64866 vehicles in last year showing a fall of 11.72%. Thus it may be seen that clearance quantity has fallen.

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Overall assessable value of domestic clearance in current year is Rs.3248.68 cr. as compared to Rs.3548.90 cr. in last F.Y. showing a fall of 9.24%. Total duty including cenvat in last F.Y was Rs. 961.10 cr. (PLA Rs.539.13 Cr. + Cenvat Rs.321.44 Cr.) as compared to Rs. 686.59 cr. (PLA Rs.321.44 Cr. + Cenvat Rs.365.15 Cr.) in current F.Y. showing a fall of 28.56%. Duty incidence, which is total duty divided by total assessable value, is 21.13% in current F.Y. as compared to 27.08% in last F.Y. PLA percentage is 46.82% as compared to 56.10% in last F.Y. Further, duty incidence has also fallen due to adverse change in product mix having more vehicles of lower duty rate of 8%(12% last year) which is 17618 vehicles as compared to 6050 vehicles last year, as compared to (20% and 24%) (Last year 24% and 30% rated vehicles) which is 37179 vehicles as compared to 46610 vehicles last year. On account of adverse product mix in terms of duty rate, PLA percentage has also fallen. The assessee manufactures Xylo, Bolero, Scorpio, Verito, Vibe, Quanto and Bolero-BMT brands of vehicles. Of these, Xylo, Bolero and Scorpio, being big vehicles, attract 24% (last year 30% BED); Verito attracts 20% (last year 24%) and the small vehicles like Vibe, Bolero-BMT and Quanto attract 8% (last year12%) BED. Production and Clearance of Vibe, Bolero-BMT and Quanto had increased at cost of big vehicles. The clearance quantity of vehicles attracting rate of duty of 8% (last year12%) has increased by 11568, whereas for vehicles attracting duty 20% (last year @ 24%) & 24% (last year 30%) has decreased by 9431. Further in interim budget of 2014-15 (in Feb.2014) the duty rate of small vehicles has been reduced from 12% to 8% and bigger vehicles from 24% / 30% to 20% / 24%. The shortfall in respect of M/s Mahindra and Mahindra Ltd Satpur, Nasik is Rs.217.69 cr.

(2). M/s. Skoda Auto India Private Limited, Aurangabad :- The Assessee has paid Rs. 176.26 Crores upto October, 2014 as compared to Rs. 180.78 Crores paid upto October,2013. Thus, there is shortfall of Rs. 4.52 Crores (i.e. 2.50%) upto October, 2014 as compared with the corresponding period of last year. The main reason for shortfall in the revenue is due to the less clearance by the assessee during the current financial year upto October-2014. The total clearance upto Oct.,2014 is 2120837 Nos, whereas it was 2167410 Nos upto October,2013. Hence both in PLA and Cenvat front, the revenue is showing downfall trend during the current year upto October,2014. The revenue from PLA is down by almost 2.50% this year as well as the Cenvat utilization is also down by 8.02% as compared with the corresponding period of last year.(3). M/s Steel Authority of India Ltd., (M/s MEL) :- The Assessee has paid Rs. 30.44 Crores upto October,2014 as compared to Rs. 42.21 Crores paid upto October,2013. Thus, there is shortfall of Rs. 11.77 Crores (i.e.27.88%) upto October, 2014 as compared with the corresponding period of last year. The main reason for shortfall in the revenue is due to the less clearance by the assessee during the current financial year upto October-2014. The total clearance upto Oct.,2014 is 34083 MT, whereas it was 50352 MTs upto October, 2013. Hence both in PLA and Cenvat front, the revenue is showing downfall trend during the current year upto October, 2014. The revenue from PLA is down by almost 27.88% this year as well as the Cenvat utilization is also down by 32.94% as compared with the corresponding period of last year.

(4). M/s. Larsen & Toubro Limited, Ahmednagar (Aurangabad) :- The Assessee has paid Rs. 21.09 Crores upto October,2014 as compared to Rs. 30.55 Crores paid upto October,2013. Thus, there is shortfall of Rs. 9.46 Crores (i.e.30.97%) upto October, 2014 as compared with the corresponding period of last year. There is also decrease of 3.05% in utilization of cenvat credit upto October, 2014. The assessee is manufacturing goods falling under Chapter 84 & 85. During the Budget 2014-15 rates of duties on Machinery and Electrical Machinery falling under Chapter 84 and 85 respectively have been reduced to 10.30% from 12.36%., net decrease of 2.06% (in actual terms the reduction is 16.67%) for further period up to December 2014. Therefore there is short fall in revenue.

COMMODITIESOut of these top 10 commodities only 3 commodities are showing shortfall in revenue and the

remaining seven commodities are showing positive growth in revenue upto October, 2014 as compared to October, 2013.

(1) Motor Vehicles:- Net revenue in Current F.Y. is Rs. 486.36 Cr. as compared to Rs. 707.27 Cr. in F.Y.13-14 showing a shortfall of Rs. 220.91 Cr. i.e. 31.23%. Clearance of M/s.

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Mahindra & Mahindra Limited, Nasik’s quantity in current year is 58061 vehicles as compared to 64866 vehicles in last year showing a fall of 11.72%. Thus it may be seen that clearance quantity has fallen. Overall assessable value of domestic clearance in current year is Rs.3248.68 cr. as compared to Rs.3548.90 cr. in last F.Y. showing a fall of 9.24%. Total duty including cenvat in last F.Y was Rs. 961.10 cr. (PLA Rs.539.13 Cr. + Cenvat Rs.321.44 Cr.) as compared to Rs. 686.59 cr. (PLA Rs.321.44 Cr. + Cenvat Rs.365.15 Cr.) in current F.Y. showing a fall of 28.56%. Duty incidence, which is total duty divided by total assessable value, is 21.13% in current F.Y. as compared to 27.08% in last F.Y. PLA percentage is 46.82% as compared to 56.10% in last F.Y. Further, duty incidence has also fallen due to adverse change in product mix having more vehicles of lower duty rate of 8%(12% last year) which is 17618 vehicles as compared to 6050 vehicles last year, as compared to (20% and 24%) (Last year 24% and 30% rated vehicles) which is 37179 vehicles as compared to 46610 vehicles last year. On account of adverse product mix in terms of duty rate, PLA percentage has also fallen. The assessee manufactures Xylo, Bolero, Scorpio, Verito, Vibe, Quanto and Bolero-BMT brands of vehicles. Of these, Xylo, Bolero and Scorpio, being big vehicles, attract 24% (last year 30% BED), Verito attracts 20% (last year 24%) and the small vehicles like Vibe, Bolero-BMT and Quanto attract 8% (last year12%) BED. Production and Clearance of Vibe, Bolero-BMT and Quanto had increased at cost of big vehicles. The clearance quantity of vehicles attracting rate of duty of 8% (last year12%) has increased by 11568, whereas for vehicles attracting duty 20% (last year @ 24%) & 24% (last year 30%) has decreased by 9431. Further in interim budget of 2014-15 (in Feb.2014) the duty rate of small vehicles has been reduced from 12% to 8% and bigger vehicles from 24% / 30% to 20% / 24%. The shortfall in respect of M/s Mahindra and Mahindra Ltd Satpur, Nasik is Rs.217.69 cr.

2. Machinery: - There is decrease in PLA Revenue by Rs. 44.26 Crores in this commodity. The main reason of shortfall of revenue in PLA is that there is reduction in Excise duty from 12.36% to 10.30% in the Budget 2014-15. Moreover one unit viz. M/s Tata Hitachi Constructions Equipment Co. Ltd. was transferred to the LTU Banglore in the month of Aug-2013. Before shifting to Banglore the said unit has paid Rs. 5 Crores in 2013-14 which has also affected in shortfall in revenue.

3. Electrical Machinery: - There is decrease in PLA Revenue by Rs. 43.38 Crores in this commodity. The main reason of shortfall of revenue in PLA is that there is reduction in Excise duty from 12.36% to 10.30% in the Budget 2014-15. The major units of this commodity have witnessed decrease in clearances due weak market condition to which the PLA revenue has gone down.

VADODARA ZONE


REVENUE ANALYSIS NOT RECEIVED

BANGALORE ZONE



COMMISSIONERATE-WISE REVENUE ANALYSIS:

The Commissionerate-wise analysis indicating the major factors affecting revenue is given below: -8 (A) BANGALORE — I COMMISSIONERATE

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The Revenue Target of the Commissionerate for the financial year 2014-15 is fixed at Rs.845 Crores. The gross revenue collected upto the month of October 2014 is Rs.440.42 Crores and the cash refund sanctioned/paid upto the month is Rs.90.25 Crores. Thereby, the net revenue collected by the Commissionerate upto October 2014 is Rs.350.17 Crores. The net revenue collected during the corresponding period of the previous financial year was Rs.393.06 Crores. The revenue figures have been reconciled with NSDL data base and the cash refunds have been reconciled with PAO figures.

The analysis of the revenue is as follows:

A. COMMISSIONERATE’s REVENUE FOR THE YEAR 2014-15

Table I (Total Revenue upto October, 2013) (Rs. In Crore)

PLA CENVAT TOTALFor October,

2013Upto October,

2013For October,

2013Upto October,

2013For October,

2013Upto October,

2013

51.29 393.06 301.09 1792.88 352.83 2185.94

Table II (Total Revenue upto October, 2014) (Rs. In Crore)

PLA CENVAT TOTALFor October,

2014Upto October,

2014For October,

2014Upto October,

2014For October,

2014Upto October,

2014

39.93 350.17 241.82 2042.65 281.75 2392.82

As could be seen from the above tables:

i. The overall duty (PLA+Cenvat) of the Commissionerate upto the month of October, 2014 has shown an increasing trend. The overall duty has increased from Rs.2185.94 Crores to Rs.2392.82 Crores resulting in an increase of Rs.206.88 Crores (9.46%).

ii. The revenue realization in PLA upto October, 2014 has shown a decreasing trend. The PLA payment has decreased from Rs.393.06 Crores realized upto October, 2013 to Rs.350.17 Crores realized upto October, 2014 i.e., decreased by Rs.42.89 Crores (-10.91%).

iii. Duty paid through CENVAT upto October, 2014 is showing an increasing trend compared to the same period of the previous financial year. Duty paid through CENVAT upto October, 2014 is Rs.2042.65 Crores compared to Rs. 1792.88 Crores paid during the same period of the previous financial year, resulting in an increase of Rs.249.77 Crores (13.93%).

The reasons for decrease in PLA revenue are as under :

I. The Commissionerate had realised PLA revenue of Rs.32.70 Cr., upto the month of May 2013 from Tobacco Sector (Gutkha). Consequent to the Karnataka State Government imposing ban on manufacture and sale of Gutkha in the state vide Order dated 30.05.2013 issued by the Food Safety Commissioner, Karnataka all the units under this sector stopped their manufacturing activity and there was no revenue from this sector w.e.f 01.06.2013. The revenue loss from this sector during the current financial year upto October 2014 on account of this is Rs.32.70 Cr.

II. M/s.Tata Motors Pvt. Ltd., [manufacturer of Parts of Motor Vehicles] who opted for LTU, Mumbai during October 2013 had paid PLA revenue of Rs.1.27 Cr. upto October 2013, whereas, there is no revenue during the current financial year. Thereby, the revenue loss upto October 2014 on account of this unit shifting to LTU, Mumbai is Rs.1.27 Cr.

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III. M/s.Manjushree Technopack Pvt. Ltd., [manufacturer of plastic performs and bottles] opted for LTU, Bangalore during October, 2013. This unit had paid PLA revenue of Rs.5.02 Cr. upto October 2013 and there is no revenue from this unit during the current financial year. Hence, the revenue loss upto October 2014 is Rs.5.02 Cr.

IV. M/s.Manjushree Technopack Ltd., Unit-2 who also moved to LTU, Bangalore as a group unit during October 2013 had paid PLA revenue of Rs.1.84 Cr. upto October 2013. However, there is no revenue for this unit during the current year and thereby the revenue deficit from this unit upto October 2014 is Rs.1.84 Cr.

V. M/s BEML, K.G.F. opted to LTU, Bangalore during April 2014. They had paid PLA revenue of Rs.6.33 Cr. upto October 2013. However, there is no revenue from this unit during the current year and thereby the revenue loss from this unit upto October 2014 is Rs.6.33 Cr.

VI. M/s BEML, Bangalore, who also moved to LTU, Bangalore as a group unit during April 2014, had paid PLA revenue of Rs.4.45 Cr. Upto October 2013. However, there is no revenue from this unit during the current year and thereby the revenue deficit from this unit upto October 2014 is Rs.4.45 Cr.

VII. The loss of revenue on account of above factors during the current financial year upto October 2014 is Rs.51.61 Cr.

VIII. Due to curbing of cash refund / rebate sanctions during the end of the previous financial year and keeping the claims pending, there is an increase in the sanctions of refund / rebate claims during the current financial year. The total refund and rebate sanctioned / paid in cash upto the month of October 2014 is Rs.90.25 Cr. as against Rs.77.13Cr. sanctioned during the corresponding period of the previous financial year. Thereby, there is an increase of Rs.13.12 Cr. (17.01%) cash outflow during the current financial year upto October 2014, and this has impacted the net revenue of the Commissionerate to that extent.

IX. Also there is loss of revenue on account of downward revision of duty in respect of a few goods falling under Chapter 84, 85 and 87, w.e.f. 17.02.2014.

Thus, the above reasons have contributed to short fall in PLA revenue to the extent of Rs.64.73 Crore. Therefore, a net short fall of Rs.42.89 Crore in PLA upto October 2014 in the Commissionerate is on account of said reasons.

REVENUE ANALYSIS OF MAJOR UNITS:

The top 10 units of the Commissionerate have contributed Rs.120.30 Crores upto October, 2014 as against of Rs.119.80 Crores during the corresponding period of the last financial year, thereby registering a marginal increase in revenue by Rs.0.50 Crores (0.42%). The gross revenue from other units is Rs.320.12 Crores upto October, 2014, as against Rs.350.40 Crores realized upto October, 2013, thereby registering a decrease in revenue by Rs.30.28 Crores (-8.64%).

The following units have registered positive growth upto October, 2014 :

I. M/s.Honda Motorcycle & Scooter India Pvt. Ltd., : The assessee are the manufacturers of Two wheelers falling under chapter 87 of the CETA, 1985. The revenue realized from this unit upto October, 2014 is Rs.4.21Crores. The unit started their commercial production and clearance during July 2013 and hence there was duty payment of only Rs.3.01 Crores in PLA upto October 2013. The unit has manufactured 916,575 Nos. of two wheelers during the current financial year upto October 2014 as compared to 259,942 Nos. manufactured upto October 2013, which is an increase by 656,633 Nos. (252.61%). They have cleared 924,267 Nos. upto October 2014 as compared to 247,313 Nos. upto October 2013, which is an increase by 247,313 (273.72%).

II. M/s.Dhariwal Industries: The assessees are the manufacturers of Pan Masala without Tobacco and functioning under Compounded levy scheme pertaining to Pan Masala (Capacity Determination and Collection of Duty) Rules, 2008. They were previously manufacturing Gutkha, but stopped production of the same consequent to the imposing of ban on manufacture and sale of Gutkha w.e.f. 30.05.2013 by the Karnataka State Government. They had paid duty on Gutkha during the months of April, 2013 and May, 2013. The duty paid in

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PLA by the assessee upto October, 2014 is Rs.35.74 Crores as against Rs.24.27 Crores paid during the same period of the last financial year, registering an increase in revenue by Rs.11.47Crores [47.26%]. The increase in PLA revenue is due to (a) increase in rate of duty per machine in respect of Sada Pan Masala during the budget in July 2014 and (b) increase in MRP of Sada Pan Masala by the unit, which attracts higher rate of duty.

III. M/s.Associate Decor Ltd. : The assessees are the manufacturers of Laminated Paper Board falling under chapter 48 of the CETA, 1985. The revenue realized from this unit upto October, 2014 is Rs.15.45 Crores as against Rs.10.67 Crores upto October, 2013, resulting in an increase of Rs.4.78 Crores (44.80%). The production during the current fiscal upto October 2014 is 9,596,388 M2 as against 7,871,937 M2 during the corresponding period of the previous financial year, which is an increase by 7,871,937 M2 (21.91%). The home clearance during the current financial year upto October 2014 is 10,118,089 M2 as against 7,603,663 M2 during the corresponding period of the previous financial year, which as increase by 2,514,426 M2 (33.07%).

IV. M/s. British Biologicals: The assessee are the manufacturers of protein extracts and protein concentrates falling under Chapter 19 and 21 of the CETA, 1985. The revenue realized from this unit upto October, 2014 is Rs.12.13 Crores as compared to that of Rs.11.34 Crores paid upto October, 2013 accounting for an increase of Rs.0.79 Crores [6.97%]. The production during the current fiscal upto October 2014 is 5136516 units as against 5304063 units during the corresponding period of the previous financial year. The home clearance during the current financial year upto October 2014 is 4855537 units as against 5196150 units during the corresponding period of the previous financial year. Therefore, there is decrease in production and decrease in clearance by 3.15% and 6.56% respectively. There is an upward movement in the price of their commodity and thus their value of clearance has increased during the current financial year, resulting in higher PLA payment.

V. M/s.R.M.Dhariwal : The assessee are the manufacturers of Jarda scented tobacco / chewing tobacco and functioning under Compounded levy scheme pertaining to Pan Masala (Capacity Determination and Collection of Duty) Rules, 2008. The assessee has paid an amount of Rs.15.86 Crores in PLA upto October 2014 as against Rs.3.85 Crores revenue during the same period of the last financial year registering an increase in PLA revenue by Rs.12.01 Crores (311.95%). The huge increase in revenue during the current financial year is due to (a) increase in number of machines (b) increase in rate of duty per machine in respect of chewing tobacco during the budget in July 2014 and (c) increase in MRP by the unit, which attracts higher rate of duty.

VI. M/s.The Tata Power Co. Ltd., : The assessee are the manufacturers of Electronic Modules for AAFL and LBW, Akash Air Force Launcher, Sub System for Lakshya & Encoder and decoder unit etc. falling under Chapter Heading 85371000 and 93019000 of the CETA, 1985. The assessee have paid Rs.5.61 Crore revenue during the current year upto October, 2014 and paid Rs.2.93 crore upto October 2013 of the previous financial year resulting in increase of Rs.2.68 Crores(91.47%). Akash Air Force Launcher is manufactured by the assessee only on receipt of orders and is not being cleared every month. The sales pattern shows huge variation, mainly because these products have to be successfully tested before clearance. Hence, the clearances may or may not take place every month.

The following unit have registered negative growth upto October, 2014:

I. M/s. SKF India Ltd : The assessee are the manufacturers of Ball / Roller Bearings falling under Chapter heading 84821011 of CETA, 1985. The revenue realized from this unit upto October, 2014 is Rs.14.16 Crores, as compared to Rs.20.66 Crores paid during the corresponding period of the previous financial year, resulting in a shortfall of revenue by Rs.6.50 Crore [-31.46%]. Also there is a increase in utilization of Cenvat credit by Rs.0.42 Cr. (-2.09%) upto the month of October 2014 of the current financial year as compared to the corresponding period of the previous financial year. Their production during the current year upto October 2014 has increased by 7,187,770 units from 37,727,011 units upto October 2013 to 44,914,781 units upto October 2014. Their home clearance has decreased by 211,098 units from 38,085,682 units upto October 2013 to 37,874,584 units upto October 2014. Further, there is a decrease in rate of duty from 12% to 10% w.e.f. 17.02.2014 during

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the interim budget. Decrease in clearance & decrease in rate of duty has resulted in overall shortfall of duty payment during the current financial year upto October 2014.

II. M/s.S.M. Perfumers : They are the manufacturers of Pan Masala [without containing Nicotine or Tobacco] and Chewing Tobacco and functioning under Compounded levy scheme pertaining to Pan Masala (Capacity Determination and Collection of Duty) Rules, 2008. The assessees were previously manufacturing Gutkha, but owing to the ban imposed by the Karnataka State Government on manufacture and sale of Gutkha w.e.f. 30.05.2013, they stopped their production. Starting from October 2013 they began manufacture of Pan Masala [without containing Nicotine or Tobacco] and Chewing Tobacco. The revenue realized upto October, 2014 is Rs.6.99 Crores as compared to Rs.21.01 Crores realized during the previous financial year, registering a decrease of Rs.14.02 Crores [-66.73%]. The decrease in revenue is since the duty payable per machine in respect of Sada Pan Masala is much lesser in comparison to Gutkha.

III. M/s. Chloride Alloys India Ltd : The unit is into manufacture of articles of Lead viz., Unwroughten Lead falling under Chapter 78 of CETA, 1985. The revenue realized upto October, 2014 from this unit is Rs.3.85 Crores as compared to Rs.9.88 Crores paid upto October, 2013 registering a decrease in revenue by Rs.6.03 Crores [-61.03%]. The production is 30,631.855 MTs and clearance 30,169.906 MTs during the current year upto October 2014 as compared to the previous corresponding period production of 29,061.333MTs and clearance of 2,87,68.022 MTs. Though there is an increase in production and clearance during the current financial year upto October 2014 by 5.40 % and 4.87 % respectively, the decrease in duty payment is due to excess availment and utilization of cenvat credit. They have availed and utilized cenvat credit of Rs.58.04 Crores in the current year as against Rs.48.71 Crores in the corresponding period of the previous year, which is an increase by Rs.6.03 Crores (67.03%). They are mainly supplying lead ingots to M/s.Exide Battery.

IV. M/s.Ashirwad Pipes Pvt. Ltd., : The assessee are the manufacturers of PVC Pipes and PVC fittings falling under Chapter 39 of CETA, 1985. The revenue realized from this unit upto October, 2014 is Rs.6.30 Crore as compared to Rs.12.18 Crores paid upto October, 2013 registering a decrease of Rs.5.88 Crore [-48.28%]. Also, they have availed and utilized cenvat credit of Rs.82.13 Crores in the current year as against Rs.60.73 Crores in the corresponding period of the previous year due to accumulation of cenvat, (increase of 21.40 Crores at 35.24%) which has added to the decrease in PLA payment. The sale of their products is seasonal and based on rainfall. Presently, there is more demand for their products from Tamil Nadu. The production of PVC Pipes during the current year upto October 2014 is 26,044,727 Mtrs. as against 24,836,334 Mtrs. during the corresponding period of the previous financial year and their clearance during the current year upto October 2014 is 27,549,200 Mtrs. as against 27,082,603 Mtrs. during the corresponding previous period. There is an increase by 4.87% in production and increase by 1.72% in clearance during the current year. However, the decrease in PLA payment and increase in cenvat debits during the current year upto October 2014 is due to cenvat accumulation.

8(B) BANGALORE-II COMMISSIONERATERevenue:- The budget estimate for the Commissionerate for the FY 2014-15 has been fixed at Rs. 5393 Crs. as compared to previous year’s sanctioned budget estimate of Rs. 4420.00 Crs. However, during the previous FY 2013-14, the Commissionerate realised the total revenue of Rs. 4082.77 Crs only, therefore, the Chief Commissioner, Bangalore Zone has been requested to reconsider the target and fix a realistic one, as to achieve a growth of 32% above the last FY realized amount seems unrealistic. The Gross revenue collected up to October 2014 is Rs. 2280.42 Crs. and the refund sanctioned and accounted by PAO upto the month is Rs. 45.44 Crs. Therefore, the net revenue collected upto October 2014 is Rs. 2234.98 Crs. The net revenue collected for the corresponding period of last year was Rs. 2197.17 Crs. (after deducting the refund amount of Rs. 35.83 Crs.) hence showing a positive growth of Rs 37.82 Crs. upto October 2014.

NOTE:- M/s. ITC LTD had deposited an advance amount of Rs 60.03 Crs. in the month of March 2014 which they intended to utilize for making future payment of duty for clearances of excisable goods during the current financial year 2014-15. As such, during April, 2014, M/s. ITC Ltd., Bangalore, have utilized Rs. 60.03 Crs. for making payment of duty and debited the same in their ER-1 returns filed online through ACES. While generating the Commissionerate’s revenue for the month

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of April 2014 through NSDL, it was noticed that there is a short fall of about Rs. 60.03 Crs. in the NSDL data in comparison to Monthly Revenue Report (MRR) generated from ACES. Since, the said amount of Rs. 60.03 Crs. has already been accounted for in the previous financial year i.e, 2013-14, there is a continued deficit in the NSDL when compared with MRR ACES figures. The said fact has been reported as a note in this Commissionerate’s FMR for the earlier months of the current FY from April 2014 to September 2014 and the same has been rectified in this month also.

A separate reference has been made to the Additional Director General, DDM with request to effect necessary reconciliation in this Commissionerate’s revenue data.

A. COMMISSIONERATE’s NET REVENUE FOR THE YEAR 2013-14

Table:1 (Total Net Revenue upto October 2013) (Rs. In Crs.)

PLA CENVAT TOTAL DUTY (PLA+CEN)

For October2013

UptoOctober

2013

For October 2013

UptoOctober 2013

For October2013

UptoOctober 2013

349.41 2197.17 137.14 1003.51 486.55 3200.68

Table:-2 (Total Revenue upto October 2014) (Rs. In Crs.)

PLA CENVAT TOTAL DUTY (PLA+CEN)For October

2014Upto

October 2014For October

2014Upto

October 2014For October

2014Upto

October 2014327.74 2234.98 129.93 1038.06 457.67 3273.04

On comparing the revenue realized upto the month of October 2014 (refer to table II) to that of the previous year upto the month of October 2013 (refer to table I) it is noticed that-

a. The overall duty (PLA+Cenvat) of the Commissionerate upto the month of October 2014 has shown an increasing trend. The overall duty has increased from Rs. 3200.68 Crs. to Rs. 3273.04 Crs. resulting in an increase of approx. Rs. 72.36 Crs. (2.26%).

b. The revenue realization in PLA upto October 2014 has shown an increasing trend. The realization in PLA payment has increased from Rs. 2197.17 Crs. upto October 2013 to Rs. 2234.98 Crs. upto October 2014, recording an increase of Rs. 37.81 Crs. (i.e. 1.72%).

c. Further, the duty paid through CENVAT upto October 2014 is Rs. 1038.06 Crs. as compared to Rs. 1003.51 Crs. paid during the same period of the previous year, resulting an increase of Rs. 34.56 Crs. (3.44%).

d. It is also submitted that out of Rs. 2234.98 Crs. collected upto the October 2014, the revenue of Rs. 10.01 Crs. is from Audit, Preventive and Recovery of Arrears, which is 0.45% of total realization as against previous year details of Rs. 18.88 Crs. out of total revenue of Rs 2197.17 Crs. which was 0.85%.

B. The reasons for increase/decrease in PLA revenue are as under:

There is an increase of Rs. 37.82 Crs. in PLA upto October, 2014 as compared to the corresponding period of the last financial year and an increase of Rs. 34.56 Crs. in debits through Cenvat account. The main reason for the increase in PLA is more revenue contributed by Commissionerate’s major unit i.e. M/s. ITC Ltd., who manufactures cigarettes and it pays approx. 83% of the total revenue of the Commissionerate. The revenue of M/s ITC Ltd., upto October 2014 is Rs. 1898.40 Crs. as against Rs. 1859.01 Crs. realized upto October 2013, resulting in increase of Rs. 39.39 Crs. (i.e. 2.12%). The increase in the PLA payment of M/s. ITC Ltd. is due to increase in rate of duty., M/s. Grasim Industries Ltd. and M/s. Birla Super Bulk Terminal, the second & third top most

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units in respect of PLA payment of the Commissionerate have also contributed approximately Rs. 17 Crs. more as compared to corresponding period of the previous year.

TOP 10 UNITS ANALYSIS OF REVENUE IN PLA

Units showing negative growth in PLA:-+

I. VSN Products: - M/s VSN Products who have paid an amount of Rs 21.16 Crs. up to the October’13 in respect of Gutkha clearances has paid merely Rs. 12.52 Crs upto Oct, 2014 for Pan Masala clearances as the manufacture and sale of Gutkha is banned in Karnataka w.e.f. 01.06.2013. Hence, no more revenue from Gutkha is expected. Further, low revenue from Pan Masala category is due to the reason that during the previous FY upto October’13, Four (4) units were functioning with total 17 No of machines whereas during October 2014, only Three (3) units are functioning with only 05 machines. Hence, even increase in rate of duty in case of Pan Masala has not resulted positively.

II. M/s. Siddu Packaging Ltd : - The unit manufactures Gutka and has paid Revenue to the extent of Rs. 8.12 Crs. up to October 2013, as against merely Rs. 3.68 Crs. upto October, 2014, resulting a decline in PLA to the extent of 54.68%. The revenue has come down on account of decrease in production and clearance on account of ban on Gutka products by the Food Safety Commissioner, Government of Karnataka vide Order dated 30.05.2013. However the unit had started manufacturing Pan Masala without tobacco. Since the demand as well as the duty on Pan-masala is less than that of Gutkha, the revenue has been affected adversely.

III. Federal Mogul Goetze Ltd :- M/s. Federal Moghul Goetze have paid Revenue in PLA to the extent of merely Rs. 0.32 Cr. upto October 14, whereas previous year upto October 13, the unit had paid Rs. 8.75 Crs., thereby registering a sharp decrease in revenue to the extent of Rs. 8.43 Crs.(96.34%). Assessee manufactures Pistons for Motor Vehicles. Last year, the assessee has cleared Pistons for bigger vehicles 17608928 Nos and this year they have cleared 14363725 Nos. for smaller Vehicles and hence the value and duty has decreased drastically.

IV. Auma India Pvt Ltd :- The unit has paid duty of Rs. 3.95 Crs. up to October 2013 whereas in the current year up to October 2014, they have paid duty of Rs. 1.97 Crs. only in PLA, resulting a negative growth rate of 50%. Duty in PLA is less because of downward trend in Power Projects as the assessee who have cleared 10146 Nos Actuators upto October 2013, could clear only 8362 Actuators and has paid Rs. 2 Crs. Less upto October, 2014 as compared to corresponding period of last year.

In this Commissionerate the number of units, “under the category more than Rs. 1 crore” for the FY 2013-14 is 70. Out of 70 units the top 10 Units are taken for analysis. Units showing positive growth in PLA:-

I. M/s.ITC Limited:- This unit contributes approx. 83% of the total Commissionerate’s revenue. This unit manufactures cigarettes and is the top most unit of the Bangalore Zone in respect of revenue payment. The revenue of M/s ITC Ltd., upto October 2014 is Rs. 1898.40 Crs. as against Rs. 1859.01 Crs. realized upto October 2013, resulting in increase of Rs. 39.39 Crs. (i.e. 2.12%). The production and clearance of cigarettes has reduced by 624.50 millions (5.71%) and 221.646 millions (2.25%) respectively. However, the increase in the revenue from Cigarettes is due to increase in duty rates in Budget 2014. Constant interaction is being done with the management of M/s ITC Limited so as to work out the projected revenue for the current financial year.

II. M/s. Grasim Industries Ltd:- The assessee has paid Rs. 35.34 Crs. in PLA during the previous year upto October 2013 whereas during the current year upto October, the unit has paid Rs. 40.76 Crs. in PLA. There is increase in PLA revenue amounting to approx. Rs. 5.42 Crs (15.35%). The clearance has increased by 6% compared to previous year. Constant interaction is being done with the management and revenue trend is being monitored closely.

III. M/s. Birla Super Bulk Terminal, Unit of Ultratech Cement Limited :- The assessee had paid revenue of Rs. 23.17 Crs. upto October,13 whereas upto Oct’14, the assessee has paid

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Rs.34.66 Crs., resulting in 49.60% increase in the PLA payment. The increase in the PLA payment is due to increase in clearance of Cement by 175624 MT by the unit as compared with previous year upto October.

IV. M/s.Sunvik Steels Pvt Ltd :- M/s. Sunvik Steels, who manufactures sponge iron and TMT bars has discharged revenue to the extent of Rs. 12 Crs. upto October’14 as against only Rs. 7.15 Crs. upto October’13, resulting an increase of almost Rs. 4.85 Crs. i.e. 68%.The Clearance of Sponge iron and TMT bars have increased by 12428 MTs upto October’14 as compared to corresponding period of previous FY. Constant interaction is being done with the management and revenue trend is being monitored closely.

V. JK Paints :- The unit had paid Rs. 5.34 Cr. In the previous year up to October 2013, whereas in the current year up to October-14 the unit has paid duty of Rs. 6.36 Crs., resulting an increase of revenue to the extent of Rs. 1.02 Crs. (19%).

VI. Heidelberg Cement India Ltd :- M/s. Heidelberg Cements have paid Rs. 8.20 Crs. upto October’14 as compared to Rs. 7.47 Crs. upto October’13, thereby, showing an increase of approx. Rs. 0.75 Crs. as compared to corresponding period of previous FY due to more clearances of approx. 18600 MTs during current year (upto October) as compared to previous year for corresponding period. Constant interaction is being done with the management and revenue trend is being monitored closely.

8( C) BANGALORE III COMMISSIONERATE:The sanctioned budget estimate for the Commissionerate for 2014-15 is fixed at Rs.596 Crore. The net revenue collected upto October 2014 is Rs. 222.80 Cr after deducting the refund amount. The net revenue collected for the corresponding period of last year was Rs. 256.41 Cr hence showing a negative trend of Rs. 33.61 Cr upto October 2014. The revenue figures have been reconciled with NSDL database.

The Commissionerate revenue for 2014-15 (up to October 2014) in comparison with 2013-14 (up to October 2013), is as under:

Table:1 (Total Net Revenue upto October 2013) (Rs. In Crs.)

PLA CENVAT TOTAL DUTY (PLA+CEN)

For October’13 UptoOctober’13

For October’13

UptoOctober’13

For October’13

UptoOctober’13

34.13 256.41 114.31 920.50 148.44 1176.92

Table:-2 (Total Revenue upto October 2014) (Rs. In Crs.)

PLA CENVAT TOTAL DUTY (PLA+CEN)For

October’14Upto

October’14For

October’14Upto

October’14For

October’14Upto

October’1439.81 222.80 118.91 971.09 158.73 1193.90

On comparing the revenue realized upto the month of October, 2014 (refer to the table) to that of the previous year upto the month of October, 2013 it is noticed that;

a) The overall duty (PLA+CENVAT) of the Commissionerate upto the month of October-2014 has increased. The overall duty has increased from Rs. 1176.92 Cr in 2013-14 to Rs 1193.90 Cr in 2014-15 resulting in increase of Rs. 16.98 Cr (i.e 1.44%).

b) The revenue realization in PLA for the month of October, 2014 (Rs 39.81 Cr) is showing increasing trend as compared to the corresponding period of previous year (Rs 34.13 Cr). The PLA realization upto the month of October, 2014 is Rs. 222.80 Cr, when compared with the revenue of Rs. 256.41 Cr, realized upto October 2013, however depict downtrend.

Revenue analysis of Major units:-

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The following major units have shown negative trend: I. M/s GELUVU FOOD PRODUCTS:- The unit is engaged in the manufacture of pan masala

without tobacco and jarda. This unit has contributed 2.22% of total Commissionerate revenue of Rs. 520.13 Cr in 2013-14. This unit has paid NIL revenue through PLA upto October 2014 as against Rs. 11.57 crores during the corresponding period of the previous year, thereby decrease of Rs 11.57 crores (-100%) in PLA compared to last year. The duty is being paid under compounded levy scheme. The unit has surrendered the registration hence the duty from this unit is NIL. Another unit with same name M/s Geluvu Food Products has started production of Jarda and Pan Masala without tobacco in December, 2013-14. The new unit had paid Rs 4.79 Cr in PLA upto March 2014. Decrease in PLA compared to last year is due to less number of machines operating and ban on Gutkha in Karnataka with effect from 1st October 2013. In 2013-14, the new unit had shifted to the production of jarda and pan masala without tobacco which attracts less duty. This unit has paid Rs 7.59 Cr in PLA upto October 2014 in 2014-15.

II. BHARAT FRITZ WERNER LTD - They are the manufacturers of Capital goods for their Customers, i.e., CNC Machineries ranging from Rs.5.00 Lakhs to Rs.5.00 Crores, falling under Chapter 84. The unit has contributed revenue of 2.48% of total Commissionerate revenue of Rs. 520.13 Cr in 2013-14. The unit was paying duty @ 10 % (BED), 2% (EC) & 1% (SHE) i.e normal rate of duty. This unit has paid Rs 3.7 crore in PLA upto October 2014 as against Rs 7.23 crores during the corresponding period of previous year, thereby decrease of Rs 3.53 crores (48.8%) in PLA compared to the last year. The unit has paid Rs 16.64 Crores in Cenvat upto October 2014 compared to Rs 13.39 Cr in Cenvat upto October 2013 showing more utilization of Cenvat in this financial year by 24%. Consequent on budgetary changes, rate of duty on items falling under Chapter 84, is decreased to 10.3% against 12.36% whereas the excise duty on inputs is 12.36%, hence there is more accumulation and utilization of cenvat credit. The current revenue trend shows the gloomy picture of the industry

III. M/S WIPRO ENTERPRISES LTD:- The unit is the manufacturer of Hydraulic Cylinders being used in JCBs which are in turn used in Construction Industry. In other words, the Revenue of the said assessee depends up on the Construction Industry. The unit has contributed a revenue of 30.99% of total Commissionerate revenue of Rs. 520.13 Cr upto the month. The unit was paying duty @ 12% (BED), 2% (EC) & 1% (SHE) i.e normal rate of duty. The unit has paid Rs 8.39 Cr in PLA and Rs 31.09 Cr in Cenvat in 2013-14 thus gained a position in top 10 units of this commissionerate. This unit has paid Rs 0.18 Cr in PLA up to October 2014 as against Rs 2.38 Cr paid up to October 2013. Regading cenvat payment, the unit has paid Rs 16.47 Cr upto October 2014 against Rs 18.61 Cr paid upto October 2013 in the previous financial year. Till now in the current financial year, this unit is showing negative trend. Now that there is an encouraging budget for Construction Industry from Income Tax, the assessee is hoping for some positive response from the market. However, as could be seen from C Ex rate, the goods manufactured by them fall under the Chapter 84 and the rate of duty is 10.30% whereas the rate of duty for the raw materials they buy is @ 12.36% thereby there is accumulation of Cenvat credit and the same is being used for payment of duty. Further, the said rate of duty will be continued till December 2014, which means that the trend of accumulation of Cenvat Credit will continue for three quarters of the fiscal year 2014-15 which may not help to collect more revenue as for as the Government Revenue is concerned.

IV. TRIVENI TURBINE:- The unit is engaged in the manufacture of steam turbines and spares falling under Chapter 84. The said unit has contributed revenue of 1.31% of total commissionerate revenue of Rs. 520.13 Cr in 2013-14. The unit is paying duty @ 10 % (BED), 2% (EC) & 1% (SHE) i.e normal rate of duty. During the financial year 2013-14, the unit paid NIL in PLA and Rs 8.03 Cr in Cenvat and in 2014-15, the unit has paid 0.02 Cr in PLA and Rs 7.31 Cr in Cenvat upto October . Taking the total duty payment including both Cenvat and PLA, there is downtrend of revenue. However, PLA payment is positive marginally upto the month. The main reason is that the assessee is the manufacturers of the goods which are used in mega power projects and at present there is not much of scope for such projects. However, during the present budget, there is some scope for establishing new power projects as the Central Government is emphasizing more on Power, Housing and Infrastructure Industry. The assessee being the manufacturer of capital goods and excise duty on these goods is 10.3%, whereas the excise duty on their inputs is 12.36% which leads to accumulation of cenvat credit. It is emphasized here that the projects taken up by the

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assessee lasts from three months to one year depending upon the capacity of the steam turbines.

V. BHARAT HEAVY ELECTRICALS LTD (ELECTRONICS DIVISION) – The unit is engaged in the manufacture of static converter, electric supply meter parts, semi conductor device, solar photo voltaic etc. The unit has contributed revenue of 6.40% of total Commissionerate revenue of Rs. 520.13 Cr in 2013-14. This unit has paid Rs 33.30 Crores in PLA and Rs 53.19 Crores in 2013-14 thus becoming the top duty paying unit of this Commissionerate. The unit is paying duty @ 12% (BED), 2% (EC) & 1% (SHE) i.e normal rate of duty.This unit has paid Rs 1.87 Cr in PLA and Rs 24.30 Cr in Cenvat upto October 2014 whereas last financial year, the unit paid Rs 14.79 Cr in PLA and Rs 25.16 Cr in Cenvat upto October 2013. This shows negative revenue trend in respect of both PLA and Cenvat i.e. overall payment. Revenue trend is mostly affected by adverse market conditions.

The following major unit have shown positive trend:

I. M/s.MAA SHARDA TOBACCO CO. PVT. LTD. : This unit is engaged in the manufacture of chewing tobacco. The unit has contributed revenue of 2.24% of total Commissionerate revenue of Rs. 520.13 Cr in 2013-14. The duty is being paid under compounded levy scheme. This unit paid Rs. 11.66 crore in PLA in 2013-14. The unit has contributed Rs 8.10 Cr in PLA upto October 2014 as compared to 6.45 Cr in PLA upto October 2013. This shows a growth of Rs 1.65 Cr i.e. 25.6%. There are 03 machines operating in the unit. Increase in revenue is due to changed duty structure vide notification no 01/2014 and 02/2014 dt 24.01.2014 and duty rate has been increased consequent on budgetary changes.

II. HINDUSTAN COCA COLA BEVERAGES PVT. LTD. - This unit is engaged in the manufacture of aerated soft drinks and responsible for the manufacture, package, sale and distribution of beverages under the trademarks of The Coca-Cola Company. The unit is paying duty @ 12% (BED), 2% (EC) & 1% (SHE) i.e normal rate of duty. The unit paid Rs 16.04 Cr in PLA and Rs 61.61 Cr in Cenvat in 2013-14 and thus now reflected in top 10 units of this commissionerate which was 3.08% of the total revenue of Rs 520.13 Cr of 2013-14. This unit had shown a continuous positive trend in 2013-14 compared to earlier financial year 2012-13. In 2014-15, the unit has paid Rs 21.20 Cr in PLA upto October whereas the same was Rs 5.43 Cr in PLA in 2013-14 upto October thus showing increase of Rs 15.77 Cr (i.e. 4 fold increase). Increase in revenue contribution is due to increase duty structure consequent to budgetary changes this financial year. Their present revenue trend shows more payment in PLA and less utilization of cenvat credit.

III. PARAMOUNT NUTRITIONS INDIA PVT LTD - This unit manufactures biscuits and pays duty @ 12% (BED), 2% (EC) & 1% (SHE) i.e normal rate of duty. The unit paid Rs 14.09 Cr in PLA in 2013-14 which is 2.7% of the total revenue of Rs 520.13 Cr of this commissionerate. This unit had shown marked increase in PLA duty payment in 2013-14 compared to 2012-13 and secured its position in top 10 duty paying units in 2013-14. This unit paid Rs 9.42 Cr in PLA upto October 2014 compared to Rs 7.61 Cr in 2013-14 upto October 2013 thereby increase of Rs 1.81 Cr i.e. 23.8% compared to previous year..The present positive trend is due to increase in sales.

IV. SAINT GOBAIN GYPROC INDIA LTD: This unit is engaged in the manufacture of gypsum boards. The unit is paying duty @ 12 %( BED), 2% (EC) & 1% (SHE) i.e normal rate of duty. The unit has paid Rs 10.67 Cr in PLA and Rs 13.28 Cr in Cenvat in 2013-14 which is 2.05 % of the total revenue of Rs 520.13 Cr. This unit had also shown a positive revenue trend compared to 2012-13 and now reflected in top 10 duty paying units. The unit paid Rs 6.74 cr in 2014-15 as compared to Rs 4.55 Cr in PLA in 2013-14 upto October which is 48% increase compared to last year.

V. BHARAT HEAVY ELECTRICALS LTD (ELECTROPORCELAINS DIVISION) - The unit is engaged in the manufacture of porcelain disc, bushings, seam pipe and duct. The unit has

17

contributed a revenue of 1.64% of total Commissionerate revenue of Rs. 520.13 Cr upto the month. This is being reflected in the top list as the same unit has paid total revenue in PLA amounting to Rs. 8.52 Cr during last financial year. The unit is paying duty @ 12 % (BED), 2% (EC) & 1% (SHE) i.e normal rate of duty. The unit has contributed Rs 13.44 Crores in Cenvat upto March 2014.During this financial year, this unit has contributed Rs 2.48 Cr upto October 2014 as compared to Nil upto October 2013. Regarding cenvat payment, this unit has paid Rs 5.34 Cr in Cenvat upto October 2014 as compared to Rs 10.23 Cr upto the same period in last financial year. (Data reconciled after scrutiny as shown in ACES). Taking into account of revenue trend upto October 2014-15, this unit has shown positive trend in PLA payment and decline in Cenvat utilization.

8(D) LTU COMMISSIONERATE:

1.1. The Central Excise Revenue Target of Rs. 1766 Crore is fixed for 2014-15 for Large Taxpayer Unit, Bangalore. The Net Revenue collection (PLA) for the month of October-2014 is Rs. 145.43 Cr. as compared to Rs. 186.14 Cr in the corresponding month of the previous year, showing a decrease of Rs. 40.71 Cr. (-21.87 %).

A separate reference has been made to the Additional Director General, DDM with request to effect necessary reconciliation in this Commissionerate’s revenue data in relation to difference noticed in NSDL & ACES data due to refunds admissible in respect of cars registered as taxis in terms of Notification No.12/2012 dated 17.03.2012.

1.2 The Net revenue up to the month and growth achieved in LTU, Bangalore compared to previous year is as follows:Table: 1 (Total Revenue upto OCTOBER) (Rs. in Crores)

SBE CENTRAL

EXCISEMoving Target

Revenue up to

month

Revenue up to

month

Increase/ decrease over

last yearIncrease/ decrease over moving target

2014-15 2014-15 2013-14 2014-15 Actuals In % Actuals In %1766.00 947.64 952.69 916.76 -35.93 -3.77% -30.88 -3.26%

1.3 The net total revenue collected (PLA+Cenvat) during the year 2014-15 is as follows:

Table: 2 Total Revenue (PLA+CENVAT upto 2014-15) (Rs. in Crore)

The Net Central Excise

Revenue compared to the corresponding period of the previous year has decreased by Rs. 35.93Cr. (-3.77%). The Gross Central Excise Revenue upto the month is Rs. 1066.79 crores compared to the Gross revenue of Rs. 997.69 Crores during the corresponding period of the previous year showing an increase of Rs. 9.10 crores. However the Net Revenue shows a negative trend due to the excess Refund sanctioned of Rs. 45.03 Crores. The Refund sanctioned upto October, 2014 is Rs. 90.03 crores while the Refund sanctioned upto October, 2013 was Rs. 45.00 Crores. Cenvat utilization during the same period has increased by Rs. 56.86 Cr. (2.22%). M/s. Toyota Kirloskar Motor Ltd. contributed about Rs.726.01 Cr (79.19%) out of Rs. 916.76 Cr. Central Excise revenue collected by LTU, Bangalore up to OCT 2014 whereas up to OCT 2013 out of total revenue of Rs.952.69 Cr. the unit has contributed about Rs. 708.10 Cr (74.33%). The unit has paid Rs.726.01 Cr in PLA upto the month for 2014-15 as compared to Rs.708.10 Cr during the corresponding period of the previous year showing an increase of Rs 17.91 Cr (2.53%).

Up to the month2013-14 2014-15 Growth/ %age Growth/

ShortfallUpto Upto ShortfallPLA 952.69 916.76 -35.93 -3.77%

Cenvat 2566.35 2623.21 56.86 2.22%Total 3519.04 3539.97 20.93 0.59%

18

Revenue Analysis of Major Units:

I. M/s. TOYOTA KIRLOSKAR MOTORS LTD :- The Unit has paid Rs. 726.01 Crores in PLA up to OCT 2014 as against Rs.708.10 Crores in PLA paid during the corresponding period of the last year, thereby there is an increase in collection of revenue to the extent of Rs. 17.91 Crores. The Cenvat utilization has decreased by Rs. 123.40 Crores, i.e. from Rs. 1094.02 cr. to Rs. 970.62 Cr. The unit was under lock out for part of the month April, 2014. The clearances of vehicles for home consumption is 79708 and for exports is 9252 up to OCT 2014 whereas up to OCT 2013 the clearance of vehicles for home consumption was 78777 and for exports was 19032. The Gross revenue from PLA up to OCT 2014 as per the data downloaded from ACES is Rs. 726.01 Crores which includes the payment of Rs. 33.22 Crores in PLA by taking suo moto taxi refund as per Notification No.12/2012 dated 17.03.2012 as amended in respect of vehicles registered as taxi.

II. M/s. BOSCH Ltd : - Total duty paid up to OCT 2014 is Rs. 90.17 Crore whereas the total duty paid up to OCT 2013 was Rs. 111.06 Crore resulting in reduced revenue of Rs. 20.89 Crore which is about -18.80%. The shortfall in revenue is attributed to reduction in the rate of duty from 12% to 10 % in respect of major commodities manufactured such as fuel injection pump (8431), Spark plug (8511). The Cenvat balance held by the unit as on 01.04.2014 was Rs.6.08Crs. Besides the factory is under strike and the production & clearance have come down resulting in lesser revenue.

III. M/s. Falcon Tyres Ltd, Mysore :- The unit is undergoing financial crisis and was closed during the current financial year. The unit defaulted in payment of duty in April, 2014. An amount of Rs.29 lakhs have been recovered in the month of May-2014 under Sec.11 (2) (i) of CEA.

IV. M/s. Praxair India Ltd :- Total duty paid up to OCT 2014 is 31.32 Crores which is less by 2.15 crores, when compared with the revenue realized up to OCT, 2013. The shortfall in PLA revenue is due to excess utilization of unutilized Cenvat Credit held on 01.04.2014 amounting to Rs.31.08 Crores.

V. M/s Karnataka Soaps and Detergents Ltd Total duty paid up to OCT 2014 is 12.90 Crores which is higher than the revenue realised up to OCT 2013.. This is mainly due to more production and clearances during the current year upto October, 2014.

VI. M/s Suprajit Engineering Ltd :- The total duty paid upto October, 2014 is Rs.10.22 Crore whereas the total duty paid upto October, 2013 was Rs.9.79 Crore. There is a marginal increase in the revenue paid in PLA and the Cenvat utilization has marginally decreased.

VII. M/s. Bill Forge India Pvt. Ltd:- The Total duty paid upto October, 2014 is Rs. 13.39 Crore whereas the total duty paid upto to October, 2013 was Rs.9.21 Crore resulting in increased revenue of Rs.4.18 Crore. The utilization of Cenvat Credit has increased by Rs.7.03 Crore.

VIII. M/s TATA HITACHI :- The unit is engaged in manufacturing excavator and constructions machinery (Chapter 84). The rate of duty has been reduced from 12% to 10 % vide Notification No. 04/2014 dated 17.02.2014. The Total duty paid upto October, 2014 is Rs. 4.32 Crore whereas the total duty paid upto to October, 2013 was Rs.3.97 Crore resulting in increased revenue of Rs. 0.34 Crore.

IX. M/s. Toyota Kirloskar Auto Parts Ltd :- The Total duty paid upto October, 2014 is Rs. 14.08 Crore whereas the total duty paid upto to October, 2013 was Rs.18.64 Crore resulting in decrease in revenue. The utilization of Cenvat Credit has decreased from Rs. 53.75 Crore to Rs.39.21 Crore (by Rs. 14.54 Crore).

X. M/s. Fosroc Chemicals India Ltd :-The Total duty paid upto October, 2014 is Rs. 5.85 Crore whereas the total duty paid upto to October, 2013 was Rs.6.48 Crore resulting in marginal increase in revenue. The utilization of Cenvat Credit has marginally increased from Rs.11.99 Crore to Rs.12.88 Crore (by 0.89 Crore).

19

COCHIN ZONE



Commodity wise revenue analysis (As per Ministry’s letter F. No.96/50/2012-CX 1 dated 21.12.2012)

Decrease in revenue is noticed in the major commodities like (i) Petroleum Products and (ii) Tyres and Tubes / Other Rubber Products. Reasons for the same have been examined as detailed below:

1. Petroleum Products : This is the major product which contributes more than 90% to the total Zonal Revenue. M/s. BPCL, Cochin Refinery is the producer of the commodity. There is a decrease in revenue of Rs. 104 Crores from this unit upto the period of October, 2014 compared to the previous year. This is due to the increased usage of Cenvat Credit ie. Rs. 98 Crores more compared to the same period in previous year is the reason for the negative growth.

2. Tyres & Tubes / Other Rubber Products : Major producer of Tyres and Tubes is M/s. Apollo Tyres factories at Kalamassery and Thrissur. They are producing Bias Tyres for commercial vehicles. The Indian market share of Bias Tyres is decreasing due to more use of Radial Tyres and it lead to increase in export. Cenvat credit usage has also increased from these units.

HYDERABAD ZONE



VISHAKHAPATNAM ZONE



The POL Revenue upto the month is Rs 2394.26 Cr as against Rs 2271.71 Cr in the last Financial Year, showing a positive growth of 5.39% (Rs 122.54 Cr). The reasons for such increase in revenue are as given hereunder.

M/s HPCL of Visakhapatnam-I Commissionerate, who contributed 51% of the zonal revenue during 2013-14 have contributed Rs. 2235.81 Cr upto the month of 2014-15 against Rs 2091.02 Cr paid during the same period last year resulting in an increase of 6.92% (144.79 Cr). This is due to increase in the quantity cleared from the unit during the month when compared to same period last year. They have paid Rs.299.95 Cr during the current month as against Rs.272.73 Cr paid during the same month last year.

The remaining revenue under POL in this Zone comes in the form of Cess on Crude Oil from two Producers (Assessees) Viz. M/s ONGC, Rajahmundry and M/s Cairn Energy Limited, S Yanam of Visakhapatnam-II Commissionerate. The revenue upto the month in this financial

20

year 2014-15 is Rs 114.36 Cr as against Rs 134.42 Cr paid in the same period of the previous financial year resulting in a decrease of 14.92% (-20.06 Cr). This is due to the fact that the Oil wells have entered into natural decline phase like any other typical oil field and in that declining phase the water cut increases resulting in decrease of crude oil production.

Though the revenue of Cess on Crude Oil is less when compared to the last year, due to buoyant revenue from M/s. HPCL on RD Oil, Petroleum Gases & Other gaseous hydrocarbons during the current month the POL revenue is on positive side. Though the production was hampered due to Hudhud Cyclone in M/s. HPCL in the month of October, 2014, due to increase in quantity of clearances and increase in rate of duty, the revenue is on higher side.

3. The Non- POL Revenue upto the month of the current financial year 2014-15 is Rs 1583.28 Cr as against Rs 1767.42 Cr collected during the same period of the previous financial year resulting in a decrease of Rs 184.14 Cr or -10.42%. The commodity wise reasons for shortfall are as under.

Cement is the first major commodity of NON-POL group of Zone which contributed 15 % of the total revenue and 33.65% of the Non POL revenue of the Zone during the financial year 2013-14. An amount of Rs 648.82 Cr has been realized upto the month in the financial year 2014-15 as against Rs 585.52 Cr collected during the same period in the previous financial year. The PLA Collections have gone up marginally by 10.81% (63.30 Cr) in respect of this commodity upto the month. The majority of the Cement Units are situated in Tirupathi and Guntur Commissionerates. The reasons for increase in revenue are due to increase in the quantity cleared when compared to the same period last year (last year there was Samaikyandhra Agitation going on in the state at the current time and it impacted on the working of the factories resulting in decrease in revenue).

IRON AND STEEL is the second major commodity of NON-POL group of the Zone which contributed 14.47% of the total Revenue of the Non POL revenue of the Zone during the financial year 2013-14. An amount of Rs 479.55 Cr. has been realized through PLA payment upto the month of 2014-15 against Rs 507.86 Cr realized during the same period of previous financial year showing a decrease in revenue (-28.31 Cr or -5.57%). The main reason for such decrease is due to decrease in PLA payments by M/s. RINL to the tune of Rs 63.26 Cr (-14.65%). They have paid Rs. 368.61 Cr upto the month in 2014-15 as against Rs 431.87 Cr paid during the corresponding period last year. This is due to decrease in the value of home clearances from Rs. 6068 Cr to Rs. 5714 Cr during the current year. Further, Cenvat utilization has gone up by 2.81% (Rs.9.77 Cr) due to increase in value of exports from 499 Cr to 637 Cr during the current year (A Qty of 203840 MT was exported during last year when compared to 229845 MT exported during the current year) and also due to availability of more Capital Goods Credit. As regards to the other unit M/s ESSAR STEEL INDIA LIMITED, the shortfall is Rs. 115.61 Cr upto the month in 2014-15 when compared to the same period last year due to high cenvat utilization. The unit has paid Rs. 49.60 Cr upto the month as against Rs. 165.21 Cr paid during the same period last year in PLA. In respect of Cenvat, they have paid Rs.166.60 Cr upto the month as against Rs. 47.84 Cr paid during the same period last year (Increase in Cenvat Utilisation +118.76 Cr or +248.24%). This is due to receipt of duty suffered Iron Ore concentrate as input and utilisation of Cenvat Credit for duty payment during the current financial year compared to utilisation of non-duty paid Iron Ore during the last year.

4. Electrical & Non-Electrical Machinery have shown a negative growth of 62.21%. An amount of Rs 39.97 Cr only has been realized upto the month in 2014-15 as against Rs 105.77 Cr collected during the same period in the previous year 2013-14 (decrease of Rs 65.80 Cr).

CHENNAI ZONE


21


S. No.

Name of the commodity group & Reasons for shortfall in Growth Rate or Slow Growth in Zonal revenue as against the All

India Growth RateSl.No. of Budget Head statement)

1 2 19 I (A) Cess on Crude Oil

Negative growth due to (1) Less Production (11%) by one of the Major unit M/s. BPCL and higher CENVAT utilisation by M/s. IOCL, as the said unit procures Base oil at higher price from

HPC ( due to shut down of base oil unit by CPCLUnit) to the extent of 10% when compared

to corresponding period of last year.

(B) Petroleum Products Motor Sprit (34) R.D. Oil (36)

Petroleum Gases & other gaseous Hydrocarbons (39)

All Other in CH 27(35,37,38 &40)

Sub-Total(A)+(B)

II Electrical & Non-Electrical Machinery Less PLA revenue due to reduction in rate of Duty from 12.36% to 10.30% frin 17.2.2014 for the goods falling under Chapter 84. of CETA Higher utilisation of CENVAT by M/s. Exide Industries as the Credit availment of inputs is

continued at 12%. Besides increase in Exports (Under Bond) to the tune of Rs. 10 Crores

compared to corresponding period of previous year

Machinery (115,117,119)

Elec. Machy (120, 122, 125)

Refrigeration & A/Cond. (116)

Sub-TotalIII Textiles

Negative growth - No major units and not a major Revenue yielding Commodity group in this

zone

Syenthetic filament yarn(79)

M/M Fibres & Yarn (81-83)

Man made Fabrics (80, 84)

Cotton Yarn & Fabrics (75, 76)

Sub-Total

IV Chemicals, Plastics & Misc. Chemical Products.

Positive Growth

Caustic Soda/Caustic Potash and soda ash (42,43)

All other inorganic Chemicals (41, 44) Organic Chemicals(45) Plastics (61) Soap and detergents (52-54) Paints and dyes (48-50) Misc. Chemical Products (60) Sub-TotalV (A) Iron and Steel (102)

Negative PLA Growth due to higher utilisation of CENVAT Credit

(a) Integarated Steel Plants (b) Others

(B) Articles of Iron & Steel (103)

22

Sub-Total (A)+(B)VI N.F. Metals

Negative growth due to more CENVAT utilisation

Aluminium (106) Copper (104) Zinc (108) Sub-Total

VII Tobacco Products

Positive Growth due to more PLA payment by one of major unit under this zone namely M/s.

ATC to the tune of Rs. 74.42 Crores upto October 2014

Cigarettes (27)

Chewing Tobacco (29) Biris (28)

All others in CH 24 (30)

Sub-Total

VIII Cement (31) Negative Growth

IX Motor Vehicles

Due to reduction of Duty slab for the Automobile industry from (30%, 24%) to 20% and also due to higher utilisation of Input Credit availed by a

major unit M/s.BMW as the Assessee paid differential Customs duty of around Rs. 372 Crores in Oct 2013 for which CENVAT Credit

earned was around Rs. 203 Crores. The Balance CENVAT Credit available as on Nov 2013 was Rs. 239 Cr, Further, the assessee paid PLA payment only against Auto Cess,

NCCD and Edu Cess.

Tractors (07)

Motors Cars & other Motor Vehicles for transport of persons not more than six (128)

Public Transport Vehicle of heading 87.02/.04 for goods and passengers (129)

Two Wheelers (Motor cycles, Scooters, Mopeds of 87.11)

All other motor vehicles of CH.87

Sub-Total

X Rubber ProductsPositive Growth due to more PLA payment by

one of the major unit M/s Apollo Tyres Tyres, Tubes (62) Others (63) Sub-Total

XI Sugar (17 & 19)Negative Growth as major units namely M/s.

Rajshree Sugars and M/s Dharani Sugars are yet to receive Sugar control order from the

concerned Authority.

XII Pharmaceutical Products (46) Positive Growth

XIII Paper & Paper Board (71) Positive Growth

XIV Wires & Cables (124) Negative Growth

XV Cosmetics (51) Positive Growth

XVI Ceramic Products (99) Negative Growth

XVII Glass & Glassware (100) Positive Growth

23

XVIII Misc. Edible Preparations (23) Positive Growth

XIX Aerated & Mineral Water of Chapter 22 Positive Growth

XX Television Receivers, etc. (123)Lesser PLA Revenue is due to reduction in rate of duty from 12% to 10% and higher utilisation

of CENVAT Credit by a major unit namely Samsung Iindia

COIMBATORE ZONE



REVENUE ANALYSIS OF MAJOR ASSESSEES (UPTO OCTOBER ’14)

All the Cement Units shown above have shown negative trend except M/s Madras Cements Ltd., Ariyalur, Trichy and M/s. The India Cements Ltd., Tirunelveli. Further, M/s. India Cements Ltd., Dalavoi, Trichy has defaulted payment of Rs.6.75 Crs. in October, 2014.

M/s.BHEL, Trichy, has paid duty in Cash for Rs. 4.68 Crs. as against Rs. 50.78 Cr. Cash payment upto October, 2013 showing a shortfall of Rs. 46.10 Crs. (-91%). The reasons for shortfall is decrease in the receipt of new orders and reasons such as financial problems, environmental clearances, land acquisition problems, and coal allotments etc. has put a hold on the old projects too.

M/s. JSW Steel Ltd., Salem has paid duty in Cash for Rs. 113.68 Crs. as against Rs. 92.29 Crs. Cash payment upto October, 2013 shown an increase of Rs. 21.39 Crs. (23%).

M/s. TVS Srichakra Ltd., Madurai have shown a shortfall of Rs. 3.58 Crs. as they have utilised more Cenvat Credit of Rs. 14.64 Crs. compared to same period of last Financial Year 2013-14.

M/s ONGC, Karaikal (Crude Petroleum Oil) made a payment of Rs.56.40 Crs. upto October ’14 as against Rs. 57.62 Crs. upto October ’13 shown a marginal decrease of 1.22 Crs. (-2%)

REVENUE ANALYSIS OF MAJOR COMMODITIES (UPTO OCTOBER ’14)

Among major commodities, Cement, Electrical and Non Electrical Machinery, Rubber Products and Tobacco Products have shown negative trend. The reasons for the shortfall for the commodities showing negative trend are furnished below:

(1) CEMENT :

The major revenue yielding commodity for this Zone is Cement, contributing 29% of the total revenue. Revenue realized in Cash from Cement upto the month of October 2014 is Rs.317.82 Crs. as compared to the revenue of Rs. 405.04 Crs. last year (up to month of October 2013) showing a decrease of Rs. 87.23 Crs. (-22%). The Cenvat credit utilization upto the month is Rs.224.86 Crs. as compared to last year’s utilization of Rs.209.22 Crs. showing an increase of Rs.15.64 Crs. (+7%). During the year 2013-14, upto October 2013, the home clearance was 14980803 MTs whereas the home clearance is only 14429032 MTs. during the corresponding period this year, thereby showing a decrease of 551771 MTs. Hence, lesser home clearances, lull in market conditions and less clearance to industrial and institutional buyers have contributed for the lesser Revenue realisation.

24

(2) ELECTRICAL & NON ELECTRICAL MACHINERY :

The Revenue upto October ’14 was Rs.88.05 Crs. (non-electrical Rs.73.06 Crs. and electrical Rs.14.86 Crs.) as against the Revenue of Rs.181.99 Crs. for the period upto October ’13, showing a decrease of Rs.93.94 Crs. (-52%). The non electrical machinery has shown a decrease of Rs.85.66 Crs.(-54%), and electrical machinery has shown a decrease of Rs.8.31 Crs. (-36%). One of the reason for the short fall of Revenue realisation from this commodity is due to change in the duty structure from 12% to 10% w.e.f. 17.02.2014 for the commodities under the Chapters 84 and 85. The major contributor to this commodity is M/s. BHEL, Trichy and they lacks new orders this year. (3) IRON and STEEL: [Other than Integrated Steel Plant and Articles of Iron]

The Revenue upto October ’14 was Rs.191.21 Crs. as against Rs.173.42 Crs. realised for the period upto October ’13 thereby, showing an increase of Rs.17.79 Crs. (10%). CENVAT credit utilization has also gone up by Rs.106.52 Crs. (15%).

The overall Revenue from other Steel plants was Rs.136.21 Crs. as against Rs.113.67 Crs. for the corresponding period last year, showing an increase of Rs.22.54 Crs. (20%). The major unit M/s JSW, Salem paid Rs.113.68 Crs. in Cash upto October ’14 (Rs.21.39 Crs. higher than the previous year’s realisation for the same period). The Revenue from ‘Articles of Iron and steel’ stood at Rs. 54.48 Crs. compared to the last year’s Revenue of Rs.57.58 Crs. showing a shortfall of Rs. 3.10 Crs. (-5%).

(4) CHEMICALS, PLASTICS & MISCELLANEOUS CHEMICAL PRODUCTS: (Caustic Soda, all other org. Chemicals, Plastics, Soaps and Misc.Ch.Products)

The Revenue upto October ’14 was Rs.126.20 Crs. as against the Revenue of Rs.102.11 Crs. realized for the period upto October ’13 showing an increase in Revenue of Rs. 24.08 Crs. (24%). (5) PAPER & PAPER BOARD:

The Revenue upto October ’14 was Rs. 56.33 Crs. as against Rs.53.07 Crs. realized for the period upto October ’13 showing a marginal increase of Rs. 3.26 Crs. (6%)

(6) PETROLEUM PRODUCTS (Crude Oil):

The Revenue upto October ’14 was Rs.57.16 Crs. as against the Revenue of Rs.59.80 Crs.

for the period upto October ’13 showing a shortfall of Rs.2.64 Crs. (-4%).

(7) RUBBER PRODUCTS (Tyres & Tubes, Belts, Sugeical Glouse )

The Revenue upto October ’14 was Rs.61.30 Crs. as against the Revenue of Rs.63.18 Crs. showing a decrease of Rs.1.88 Crs. (-3%). Due to more availment of Cenvat Credit to the tune of Rs. 14.33 Crs. (18%), the Cash Revenue realisation decreased. Of the above M/s. TVS Srichakra manufacturers of Tyres and Tubes, contributed the major portion of Revenue for Rs.37.26 Crs.

(8) TOBACCO PRODUCTS: (Biri and Chewing Tobacco)

The Revenue for the period upto October ’14 was Rs. 34.84 Crs. as against Rs. 36.02 Crs. realised upto October ’13, showing a marginal decrease in Revenue for Rs. 1.17 Crs.(-3%). The major contributing commodities are Biris and Chewing Tobacco and have contributed Rs. 24.65 Crs. and Rs. 9.24 Crs. respectively.

25

(9) MOTOR VEHICLES / TRACTORS and Parts of Motor Vehicles

The Revenue realization upto October ’14 was Rs.17.25 Crs. as against Rs. 16.11 Crs. realised upto October ’13 showing an increase of Rs. 1.15 Cr. (7%)

(10) SUGAR:

The Revenue was Rs.22.48 Crs. for the period upto October ’14 as against the Revenue of Rs.13.97 Crs. realised upto October ’13 showing an increase of Rs.8.51 Crs. (61%).

DELHI ZONE

The actual revenue realization upto October, 2014 is Rs.5865.25 Crores as against Rs.6396.17 Crores upto October, 2013, resulting in a negative growth of Rs.530.92 Crores (8.30%).


Chandigarh Zone

The actual revenue realization upto October, 2014 is Rs.2253.56 Crores as against Rs.2928.45 Crores upto October, 2013, resulting in a negative growth of Rs.674.89 Crores (23.05%).


2.3 CHIEF COMMISSIONER’S REPORT FOR GAIN IN REVENUE

Out of 23 zones the Zonal Chief Commissioners of Mumbai-I, Ahmedabad, Mysore, Lucknow, Meerut, Ranchi, Jaipur, Bhopal, Kolkata, Bhubneshwar and Shillong have exceeded their revenue realization compared to the corresponding period of last year. Revenue Analyses have been received from the Chief Commissioners Mysore, Lucknow, Jaipur and Shillong Zone.

MUMBAI-I ZONE The actual revenue realization upto October, 2014 is Rs.9268.31 Crores as against Rs.8838.23 Crores upto October, 2013 resulting in a growth of Rs.430.08 Crores (4.87%).


AHMEDABAD ZONE

The actual revenue realization upto October, 2014 is Rs.4288.25 Crores as against Rs.4211.03 Crores upto October, 2013 resulting in a resulting in a growth of Rs.77.22 Crores (1.83%).


MYSORE ZONE

26

The actual revenue realization upto October, 2014 is Rs.3772.56 Crores as against Rs.3697.84 Crores upto October, 2013, resulting in a growth of Rs.74.72 Crores (2.02%).


Commodity Analysis: - The top 10 commodities as per Enclosure Annexure V-B accounts for around 86% of the Zonal revenue. Out of top 10 commodities, the five -commodities viz., (i) Diesel Oil, (ii) Iron & Steel-Other steel plants, (iii) Motor Spirit, (iv) Cement & Clinkers and (v) Ores, Slag and Ash accounted for 76% of the total zonal revenue for the year 2013-14. Hence the analysis of above five commodities is detailed below.

1. Diesel Oil (HSD):- HSD is a major commodity of the Zone and it contributed around 27% of the Zonal revenue. The details of revenue realization are as under:-

[Rs. in Cr. ]

Duty payment for 2013-14


(Up to 10/13)


(Up to 10/14)Excess/Short

fallExcess/Short fall

in %

PLA Cenvat PLA Cenvat PLA Cenvat PLA Cenvat PLA Cenvat

1 2 3 4 5 6 7 8 9 10

1831.94 98.53 998.89 82.27 1102.40 83.90 103.51 1.63 10.36 1.98

As could be seen from the table above, there is increase in revenue realization in PLA and increase in Cenvat utilization from this commodity for the period up to OCT 2014 when compared to the period up to OCT 2013. There is increase in total revenue (PLA+Cenvat) by Rs. 105.14 Crores from the commodity for the period up to OCT 2014 when compared up to OCT 2013.

2. Iron & Steel-Other steel plants: - This commodity contributed about 22% of the zonal revenue. The revenue realisation from this commodity is as under.

[Rs. in Cr. ]Duty payment

for 2013-14

Duty payment for 2013-14 (Upto 10/13)


(Up to 10/14)Excess/Short fall Excess/Short

fall in %


1 2 3 4 5 6 7 8 9 10

1472.49 2370.86 817.41 1339.47 753.19 1746.01 -64.22 406.54 -7.86% 30.35%

It could be seen from the table above, there is a decrease in PLA revenue realization from this

commodity for the period up to OCT 2014 when compared upto OCT 2013. One of the major duty paying assessee under this commodity group is M/s.JSW Steels Ltd. However, there is increase in total revenue (PLA+Cenvat) by Rs. 342.32 crores from this commodity upto OCT 2014 when compared up to OCT, 2013.

27

3. Motor Spirit: - Motor spirit is one of the major commodity of the Zone and it contributed around 17% of the Zonal revenue. The details of revenue realisation are as under:-

[Rs. in Cr.]

Duty payment for

2013-14


(Up to 10/13)


(Up to 10/14)Excess/Short fall Excess/Short

fall in %


1 2 3 4 5 6 7 8 9 10

1186.12 0.05 697.96 0.03 696.25 0.00 -1.71 -0.03 -0.24% 0.00

There is decrease in revenue realization from this commodity to the extent of Rs. 1.71 crores (-0.24%) for the period up to OCT 2014 when compared up to OCT 2013. The details of production and clearances are furnished below.

Particulars Up to OCT 2013

Up to OCT, 2014 Difference % difference

Production in KL. 826789.90 826734.66 -55.24 -0.01%Home Clearance in KL 731493.86 752811.37 21317.51 2.91%Export/Duty free clearances in KL 135431.67 111594.40 -23837.27 -17.60%

The reasons for decrease in Revenue is due to more clearance for home consumption upto OCT 2014 when compared upto OCT 2013.

4. Cement & Clinkers: - This commodity contributed around 5% of the Zonal revenue. The details of revenue realisation are as under:-

[Rs. in Cr.]

Duty payment for

2013-14


(Up to 10/13)


(Up to 10/14)Excess/Short

fallExcess/Short fall

in %

PLA Cenvat PLA Cenvat PLA Cenvat PLA Cenvat PLA Cenvat1 2 3 4 5 6 7 8 9 10

348.10 308.97 168.37 193.21 252.33 206.79 83.96 13.58 49.87% 7.03%

There is increase in revenue realization from this commodity up to OCT 2014 when compared upto OCT, 2013.

28

5. Ores, Slag and Ash - This commodity contributed around 5% of the Zonal revenue. The details of revenue realisation are as under:- [Rs. in Cr.]

Duty payment for

2013-14



Excess/Short fall

Excess/Short fall in %


1 2 3 4 5 6 7 8 9 10

329.26 70.08 180.41 41.07 113.82 49.84 -66.59 8.77 -36.91% 21.35%

There is decrease in revenue realization from this commodity upto OCT 2014 when compared upto OCT, 2013. There is increase in Cenvat utilization upto OCT 2014 when compared to OCT 2013. However, total revenue from this commodity (PLA + Cenvat) is decreased by Rs.57.82 Crore

LUCKNOW ZONE

The actual revenue realization upto October, 2014 is Rs.3755.66 Crores as against Rs.3222.88 Crores upto October, 2013 resulting in a growth of Rs.532.78 Crores (16.53%). Brief revenue analysis with special reference to major assessees and commodities

• As compared with revenue collection upto OCTOBER, 2013 it is seen that up to OCTOBER ‘ 2014 the total collection has been increased by Rs.534.08 Crores showing an increase of 16.57%.

• M/s Tata Motors Ltd., Lucknow have opted to LTU Mumbai w.e.f. 01.07.2013 resulting in revenue loss of Rs.32.08 Crores, as during the last financial year upto May 2013, paid duty of Rs.32.08 Crores (PLA) while during this financial year upto OCT. 14, it is NIL

MEERUT ZONE

The actual revenue realization upto October, 2014 is Rs.4344.52 Crores as against Rs.4173.39 Crores upto October, 2013 resulting in a growth of Rs.171.13 Crores (4.10%).


RANCHI ZONE



29

JAIPUR ZONE



REVENUE ANALYSIS IN RESPECT OF MAJOR COMMODITIES OF THIS ZONE SHOWING SLOW GROWTH

1. Cement: Cement is the highest revenue yielding commodity of the Zone in non-POL sector. It contributes about 18% of the total revenue of the Zone and 39% of the non-POL revenue. The PLA revenue from Cement sector has increased by Rs. 81.35 Crores (10.79%) whereas cenvat utilization has increased by Rs. 135.23 Crores (+20.25%) upto October, 2014 as compared to the corresponding period of previous financial year.

2. Zinc:- Zinc is the IInd highest revenue yielding commodity in the Zone in non-POL sector. It contributes 2.52% of the total revenue of the Zone and 5.41% of the non-POL revenue. The revenue paid from PLA has increased by Rs.4.89 Crores (4.63%) upto October, 2014 as compared to revenue paid upto corresponding period of previous Financial Year. M/s Hindustan Zinc Ltd., Chittorgarh (who manufacture Zinc with some other products like Lead, Cadmium, Silver, etc. and contributes 52.83% of the total zinc revenue of the Zone), have paid higher revenue by Rs. 8.21 Crores (+12.64%) upto October, 2014 as compared to corresponding period of previous Financial Year.

3. Paints and Dyes:- Paints and Dyes contributes 1.81% of the total revenue of the Zone and 3.88% of the non-POL revenue. The revenue paid from PLA has increased by Rs. 1.11 Crores (1.36%) upto October, 2014 as compared to revenue paid upto corresponding period of previous Financial Year.

4. Chewing Tobacco: - Chewing Tobacco contributes 1.64% of the total revenue of the Zone and 3.52% of the non-POL revenue. The revenue paid from PLA has increased by Rs. 4.95 Crores (6.69%) whereas the utilization of cenvat credit has increased by Rs. 12.23 Crore (49.57%) upto October, 2014 as compared to corresponding period of previous year. M/s Miraj Products Private Limited (Unit-I) Udaipur have availed cenvat credit on chewing tobacco procured in bulk as per Rule 16 of the Chewing Tobacco and Un-manufactured Tobacco Packing Machines(Capacity Determination and Collection of Duty)Rules 2010.

5. Two wheelers: - Two wheelers contribute 1.45% of the total revenue of the Zone and 3.10% of the non-POL revenue. The revenue paid from PLA as well as from cenvat credit has decreased by Rs. 79.52 Crores (-90.88%) and Rs. 16.91 Crores (-5.27%) respectively upto October, 2014 as compared to the corresponding period of previous year. There is only one unit manufacturing two wheelers namely M/s. Honda Motorcycle and Scooter India Private Limited. The Revenue paid by this unit from PLA and Cenvat has decreased by Rs. 83.98 Crore (-95.98%) and Rs. 48.87 Crore (-15.24%) respectively upto October, 2014 as compared to corresponding period of previous financial year due to lesser domestic clearances (51878 units) amounting to Rs. 158.83 Cr [i.e.Rs. 2835.73 Cr. as compared to Rs. 2994.56 Cr. of last year], and higher export clearance amounting to Rs. 65 crores (16462 units). Further, the rate of duty on motor cycle and scooters has decrease from 12% to 8% while the credit on inputs is available @ 12%.

6. Machinery:- Machinery contributes 1.29% of the total revenue of the Zone and 2.77% of the non-POL revenue. The revenue paid from PLA as well as from cenvat credit has decreased by Rs. 21.25 Crores (-45.16%) and Rs. 17.67 Crores (-9.57%) respectively upto October, 2014 as compared to the corresponding period of previous year due to reduction in the rate of duty on various machineries from 12% to 10%.

30

BHOPAL ZONE



KOLKATA ZONE



BHUBANESHWAR ZONE



SHILLONG ZONE



Reasons for Shortfall in Central Excise revenue :

POL SECTOR:

Reasons cited by Oil Companies for above shortfall are:(i) Higher rate of decline in potential from old well, mainly because of rise in water-oil ratio and sand ingression problem.

(ii) Lower potential build- up from drilling activities.(iii) Environmental problems which are beyond human controls. (iv) M/s Numaligarh Refinery Ltd. was shutdown for annual repairing & maintenance from 26th March-2014 to 14th April-2014.

After issuance of the Circular No. 978/2/2014-CX dated 07.01.2014, all crude oil and Tea sector have stopped payment of Edu. Cess and Secondary and Higher Edn. Cess.

The revenue collection of this Zone is mainly depends on POL Sector. Production/Clearance is mainly dependent upon Crude Oil allotment which is made by the Ministry of Petroleum & Natural Gas, New Delhi. There is no likely hood of increase in crude Oil allotment as opined by the refineries.

31

NON-POL SECTOR:

Reasons for shortfall are as under: Industrial growth rate in Northeastern Region is otherwise lower as compared to the rest of the

country due to lack of industrialization and other geo-political reasons. Non-pol sector commodities mainly include iron & steel, cement, cosmetics, misc chemical products, plastics, pan masala, chewing tobacco. Most of the items except tobacco products are revenue neutral in view of the Northeast Area Based Exemption Scheme in force.

2.4. PLA CENVAT RATIO POL and Non-POL

In the preceding thirteen years i.e 2001-02 to 2013-14, the PLA ratio has declined from 60.4% in 2001-02 to 38% in 2013-14. The PLA CENVAT ratio upto October, 2014 is 38:62 which was 40:60 during the corresponding period of last year.

In respect of Petroleum products, the PLA CENVAT ratio upto October, 2014 is 87:13 which was same during the corresponding period of last year. In the non-POL sector, PLA CENVAT ratio upto October, 2014 is 25:75 which was 27:73 in the corresponding period of last year.

The overall growth of CENVAT utilization upto October, 2014 is 7.90 % over the same period last year. The main commodities availing CENVAT credit are Iron and steel Products: 36816.8 Crore, Chemicals Products: 32919.8 Crore, Motor Vehicles products: 28447.0 Crore, Machinery Products: 16743.5 Crore, Petroleum Products: 7669.0 Crore, N.F. Metals: 7587.4 Crore, Cement: 4298.8 Crore, Textiles: 3724.0 Crore, Rubber Products 3167.2 Crores, Paper & Paper Board: 2266.6 Crore, Pharmaceutical Products: 2203.1 Crore and Wires & Cables: 1954.2Crore.

The graphical presentation of commodities utilising PLA and CENVAT in percentage term is given below:

PERCENTAGE CENVAT UTILISATION BY MAJOR COMMODITIES

32

3 ANALYSIS OF 20 TOP REVENUE YIELDING COMMODITIES

The all India Revenue Trend of 20 major commodities is shown below in tabular form:(Rs. in Crores)

Upto the Month Upto the Month Difference of revenue over last

year

% difference over

last year

2013-14 2014-15

Sl. Commodity Group 2013-14 2014-15 Ratio RatioNo. C.V. C.V. C.V. C.V. C.V. C.V. PLA Credit PLA Credit PLA Credit PLA Credit PLA Credit PLA Credit1 2 3 4 5 6 7 8 9 10 11 12 13 141 Petroleum Products 49824.1 7646.3 51179.2 7669.0 1355.2 22.6 2.72 0.30 87 13 87 13

2 Tobacco Products 9922.8 460.5 10020.1 499.8 97.4 39.3 0.98 8.54 96 4 95 53 Iron and steel Products 8603.2 33652.0 9085.6 36816.8 482.4 3164.8 5.61 9.40 20 80 20 804 Chemicals Products 6959.0 29367.2 7866.4 32919.8 907.5 3552.6 13.04 12.10 19 81 19 815 Cement 5433.5 3813.6 5735.6 4298.8 302.1 485.2 5.56 12.72 59 41 57 43

6 Motor Vehicles Products 5455.0 26746.2 4710.8 28447.0 -744.2 1700.8 -13.64 6.36 17 83 14 86

7 Machinery Products 4047.6 16959.8 2978.3 16743.5 -1069.3 -216.3 -26.42 -1.28 19 81 15 85

8 Misc. Edible Preparations (23) 983.3 148.8 1217.6 188.4 234.3 39.6 23.83 26.60 87 13 87 13

9 Rubber Products 1074.0 2864.1 1158.0 3167.2 84.0 303.1 7.82 10.58 27 73 27 73

10 Sugar (17 & 19) 892.1 582.0 987.7 539.8 95.5 -42.2 10.71 -7.25 61 39 65 35

11 Ceramic Products (99) 857.6 622.7 983.1 675.2 125.5 52.5 14.63 8.42 58 42 59 41

12 Aerated & Mineral Water of CH.22 485.0 1050.8 843.4 1192.7 358.4 141.9 73.90 13.51 32 68 41 59

13 Paper & Paper Board (71) 712.9 1970.2 781.2 2266.6 68.3 296.4 9.58 15.04 27 73 26 74

14 N.F. Metals 805.4 7028.3 712.1 7587.4 -93.2 559.1 -11.57 7.95 10 90 9 91

15 Pharmaceutical Products (46) 597.7 1888.7 661.1 2203.1 63.4 314.4 10.61 16.64 24 76 23 77

16 Cosmetics (51) 520.4 604.3 543.8 710.6 23.4 106.3 4.50 17.60 46 54 43 57

17 Glass & Glassware (100) 256.8 645.2 323.4 648.1 66.6 2.9 25.94 0.45 28 72 33 67

18 Textiles 257.8 3938.9 207.0 3724.0 -50.8 -214.9 -19.71 -5.46 6 94 5 95

19 Television Receivers, etc. (123) 125.5 858.7 68.3 1067.9 -57.2 209.3 -45.58 24.37 13 87 6 94

20 Wires & Cables (124) 134.7 1896.3 57.0 1954.2 -77.7 57.9 -57.65 3.05 7 93 3 97

Other Commodities 6839.4 16394.8 6706.1 18413.8 -133.3 2019.0 -1.95 12.32 29 71 27 73

Gross Revenue 104787.6 159139.1 106826.0 171733.5 2038.4 12594.3 1.95 7.91 40 60 38 62Refunds 11827.0 83.5 13642.5 106.6 1815.5 23.2 15.35 27.75

Net Excise Revenue 92960.6 159055.7 93183.4 171626.8 222.9 12571.2 0.24 7.90Drawbacks by Customs Comm. 7868.2 11353.2

All INDIA TOTAL 85092.3 81830.3 -3262.0 -3.83

The table indicates that the total CENVAT utilization ratio upto October 2014 has gone up by 7.90% as compared to the corresponding period of last year.

The highest CENVAT utilization this year upto October in actual term is noticed in respect Iron and steel Products: 36816.8 Crore, Chemicals Products: 32919.8 Crore, Motor Vehicles products: 28447.0 Crore, Machinery Products: 16743.5 Crore, Combined CENVAT utilization of these four commodities groups in percentage terms is 67% ( 114927.13 crore) of the total Cenvat utilized.

The gross PLA growth lower than the All India Gross is noticed, in respect of Electrical & Non Electrical Machinery (-26.42%), Textile (-19.71%), N.F.Metals (-11.57%), Motor Vehicles (-13.64%), Wire & cabels (-57.65%) and Telivision Receivers etc (-45.18%). It is also noticed that the refunds (PLA) has increased by 15.35 % amounting to a difference of 18.15.51 Crore over the last year in the same period.

The top seven revenue yielding commodities group are Petroleum(48%), Tobacco(9%), Iron and Steel(9%), Chemicals(7%), Motor Vehicles(5%), Cement(5%), Machinery(3%) which have together contributed 86% (91576.18 Crore) to the total Central Excise gross revenue (PLA) of 106825.95 Crores upto October 2014. This is also shown in the graphical presentation given below:-

33

EXCISE REVENUE SHARE OF MAJOR COMMODITIES IN GROSS REVENUE

Petroleum Products: Excise revenue contribution of petroleum products is 51179.22 Crore of the All India gross revenue collected upto October, 2014 as against 49824.05 Crore to the All India gross revenue collected upto October last year. The revenue growth in petroleum products upto October, 2014 over last year is 2.72 %, whereas growth in CENVAT is 0.30%.

The major contribution of the petroleum revenue comes from ten zones shown in table below, which have contributed 73.20 % of petroleum revenue during October, 2014 against 72.04% upto October last year. Out of the ten zones, four zones, namely- Delhi (-9.57%), Cochin(-3.53%), Ahemdabad(5.61%) and Ranchi(1.69%), are below All India PLA revenue growth rate (2.72%), whereas the CENVAT utilization in respect of Vadodara(16.86%), Bhopal(20.86%), Cochin(124.05%), Chennai(10.63%), Ahemdabad(8.53%), Ranchi (37.91%) and Lucknow(18.85%), are more than the All India growth rate of CV utilization (0.30%). The PLA CENVAT ratio of Petroleum Products upto October, 2014 is 87:13 which was same during the period of last year.

Petroleum Products (Rs. in Crores)S.No ZONES 2013-14 Upto the Month Upto the Month %age Excess/short

upto month 2013-14 2014-15 PLA CENVAT PLA CENVAT PLA CENVAT PLA CENVAT

1 MUMBAI – I 11135.60 3069.56 6460.31 2041.25 6925.83 1924.94 7.21 -5.702 MUMBAI – II 9974.91 2132.47 5556.69 1285.02 5961.17 867.51 7.28 -32.493 VADODARA 8663.55 1374.02 4795.53 748.31 5125.44 874.50 6.88 16.864 DELHI 6061.38 549.78 3422.54 446.70 3094.86 401.30 -9.57 -10.165 BHOPAL 5022.33 683.64 2856.49 408.02 3082.44 493.15 7.91 20.866 COCHIN 5246.51 180.04 2997.34 79.38 2891.59 177.85 -3.53 124.057 CHENNAI 4820.19 525.45 2695.08 294.45 2802.41 325.74 3.98 10.638 RANCHI 4541.60 460.04 2548.23 248.16 2591.20 342.23 1.69 37.919 AHMEDABAD 4932.25 409.04 2660.68 223.49 2511.35 242.55 -5.61 8.5310 LUCKNOW 3167.98 162.83 1899.22 101.86 2477.18 121.06 30.43 18.85

Total Top 10 63566.30 9546.87 35892.11 5876.64 37463.47 5770.83 4.38 -1.80 Others 25033.46 3048.29 13931.94 1769.70 13715.75 1898.13 -1.55 7.26

TOTAL (All India) 88599.76 12595.16 49824.05 7646.34 51179.22 7668.96 2.72 0.30

Contribution of Top 10 Zones 71.75 75.80 72.04 76.86 73.20 75.25

34

REVENUE OF PETROLEUM PRODUCTS IN TOP TEN EXCISE ZONES

Iron & Steel: Excise revenue contribution of Iron and Steel Products is 9085.64 Crore to the All India gross revenue collected upto October, 2014 as against 8603.21 Crore to the All India gross revenue collected upto October last year. The revenue growth in Iron and Steel Products upto October, 2014 over last year is 5.61% whereas growth in CENVAT is 9.40%. The major contribution of the Iron and Steel Products revenue comes from ten zones shown in table below, which have contributed 82.47 % of Iron and Steel Products revenue upto October, 2014 against 79.61% upto October last year. Out of the ten zones, five zones, namely Mysore (-7.24%), Kolkata(-6.27%), Vizag( -5.57%), Pune(4.86%) and Ahemdabad(-14.09%) are below All India PLA revenue gross rate (5.61%) whereas the CENVAT utilization in respect of Ranchi( 18.15%), and Mysore(28.41%) is more than the All India growth rate of CV utilization (11.56%).

The PLA CENVAT ratio of Iron and Steel Products upto October, 2014 is 20:80 which was 20:80 during the same period in the last year.

Iron and Steel Products (Rs. in Crores)S.No ZONES 2013-14 Upto the Month Upto the Month %age Excess/short


1 RANCHI 3619.90 4882.41 1797.54 2952.27 1935.34 3488.22 7.67 18.152 BHOPAL 2976.37 5973.09 1366.07 3394.74 1558.65 3578.38 14.10 5.413 BHUB'WAR 1351.69 3484.84 599.89 2169.48 1029.24 2135.53 71.57 -1.564 MYSORE 1543.83 2578.51 857.86 1451.02 795.72 1863.32 -7.24 28.415 KOLKATA 1266.94 4688.68 639.50 2741.92 599.43 2803.63 -6.27 2.256 VIZAG 1103.14 1317.73 507.84 836.40 479.55 885.31 -5.57 5.857 NAGPUR 605.73 3110.57 307.16 1771.93 337.49 1863.04 9.87 5.148 CHANDIGARH 532.52 3708.98 261.58 2131.15 277.69 2349.42 6.16 10.249 AHMEDABAD 561.97 3927.46 300.10 2285.84 257.83 2381.93 -14.09 4.2010 PUNE 411.88 2490.73 211.72 1451.02 222.00 1560.92 4.86 7.57

Total Top 10 13973.97 36163.00 6849.26 21185.77 7492.94 22909.70 9.40 8.14 Others 3366.78 21905.60 1753.95 12466.22 1592.70 13907.11 -9.19 11.56 TOTAL (All India) 17340.75 58068.60 8603.21 33651.99 9085.64 36816.81 5.61 9.40


35

REVENUE OF IRON AND STEEL PRODUCTS IN TOP TEN EXCISE ZONES

Tobacco Products : Excise revenue contribution of Tobacco Products is 10020.13 Crore to the All India gross revenue collected upto October, 2014 as against 9922.76 Crore to the All India gross revenue collected upto October last year. The revenue growth in Tobacco Products upto October, 2014 over last year is (0.98%) whereas growth in CENVAT is (8.54%).

The major contribution of the Tobacco Products revenue comes from ten zones shown in table below, which have contributed 92.73% of Tobacco Products revenue upto October, 2014 against 91.90% upto October last year. Out of ten zones, five zones, namely- Meerut (-1.39%), Bangalore,( -0.60%), Kolkata (-3.87%), Ranchi(-2.48%) and Pune(-8.46%) are below All India PLA revenue growth rate (0.98%) whereas the CENVAT utilization in respect of six zones, viz Bangalore(15.42%), Kolkata (19.93%), Hyderabad(38.68%), Pune( 11.49%),Chennai(11.10%) and Mumbai-II (10.83%), are more than the All India growth rate of CV utilization (8.54% ).

The PLA CENVAT ratio of Tobacco Products upto October 2013 is 95:5 which was 96:4 during the corresponding period of last year.

Tobacco Products (Rs. in Crores)S.No ZONES 2013-14 Upto the Month Upto the Month %age Excess/short


1 MEERUT 4493.92 138.44 2475.10 89.83 2440.76 81.96 -1.39 -8.762 BANGALORE 3501.48 88.99 1947.75 64.52 1936.06 74.47 -0.60 15.423 HYDERABAD 1535.94 58.09 838.25 34.28 933.07 47.54 11.31 38.684 KOLKATA 1620.49 92.73 929.82 54.13 893.80 64.92 -3.87 19.935 RANCHI 1479.99 39.17 838.23 26.62 817.40 21.76 -2.48 -18.266 PUNE 1456.41 32.89 767.29 21.49 702.39 23.96 -8.46 11.497 CHENNAI 1133.22 49.33 603.79 30.19 679.78 33.54 12.59 11.108 MUMBAI – II 639.89 45.33 350.45 26.05 373.14 28.87 6.47 10.839 AHMEDABAD 407.79 57.39 229.93 38.83 292.58 20.56 27.25 -47.0510 BHOPAL 262.75 14.75 138.55 7.93 223.00 16.24 60.95 104.79

Total Top 10 16531.88 617.11 9119.16 393.87 9291.98 413.82 1.90 5.07 Others 1322.89 111.02 803.60 66.60 728.15 85.99 -9.39 29.11 TOTAL (All India) 17854.77 728.13 9922.76 460.47 10020.13 499.81 0.98 8.54


36

REVENUE OF TOBACCO PRODUCTS IN TOP TEN EXCISE ZONES

Chemical Products: Excise revenue contribution of Chemical Products is 7866.44 Crore to the All India gross revenue collected upto October, 2014 as against 6958.99 Crore to the All India gross revenue collected upto October last year. Thus, the revenue growth in Chemical Products upto October, 2014 over last year is (13.04%), whereas growth in CENVAT is (12.10%).

The major contribution of the Chemical Products revenue comes from ten zones shown in table below, which have contributed 75.97 % of Chemical Products revenue upto October, 2014 against 75.88% upto October last year. Out of the ten zones, six zones Mumbai-I(1.48%), Vadodara(10.72%), Chandigarh(1.37%), Chennai(10.92%), Mumbai-II(-1.97%), and Vizag (5.45%), are below All India PLA revenue growth rate (13.04%), whereas the CENVAT utilization in respect of Mumbai-I(15.09%), Vadodara(12.54%), Delhi(13.87%), Chandigarh(25.63%), Ahemdabad( 14.22%), Mumbai-II( 15.72%), Chennai( 14.38%) and Vizag (19.11%), are more than the All India growth rate of CV utilization (12.10%).

The PLA CENVAT ratio of Chemical Products upto October, 2014 is 19:81 which was same in the corresponding period of last year.

Chemical Products (Rs. in Crores)S.No ZONES 2013-14 Upto the Month Upto the Month %age Excess/short


1 MUMBAI – I 3176.51 8121.87 1627.96 4643.80 1652.12 5344.64 1.48 15.092 VADODARA 1842.87 10188.23 955.51 5968.23 1057.97 6716.60 10.72 12.543 DELHI 1333.92 2977.14 512.16 1907.51 802.85 2172.05 56.76 13.874 CHANDIGARH 1089.14 1777.38 657.73 1082.72 666.74 1360.23 1.37 25.635 AHMEDABAD 948.15 3386.91 525.04 1930.38 606.06 2204.82 15.43 14.226 KOLKATA 362.44 3485.96 183.32 2070.09 284.22 1694.20 55.04 -18.167 CHENNAI 421.57 2343.98 228.39 1327.29 253.34 1518.22 10.92 14.388 MEERUT 355.23 1828.48 179.23 1097.59 235.34 1015.81 31.31 -7.459 MUMBAI – II 400.33 2679.31 213.68 1497.91 209.48 1733.42 -1.97 15.7210 VIZAG 356.70 1213.82 197.42 674.95 208.17 803.90 5.45 19.11

Total Top 10 10286.86 38003.08 5280.44 22200.47 5976.29 24563.89 13.18 10.65 Others 3198.21 12839.17 1678.55 7166.73 1890.15 8355.92 12.61 16.59 TOTAL (All India) 13485.07 50842.25 6958.99 29367.20 7866.44 32919.81 13.04 12.10


37

REVENUE OF CHEMICAL PRODUCTS IN TOP TEN EXCISE ZONES

Motor Vehicles: Excise revenue contribution of Motor Vehicles is 4710.84 Crore to the All India gross revenue collected upto October, 2014 as against 5455.01 Crore to the All India gross revenue collected upto October last year. Thus, the revenue growth in Motor Vehicles upto October, 2014 over last year is (-13.64%), whereas growth in CENVAT is (6.36%).

The major contribution of the Motor Vehicles revenue comes from ten zones shown in table below, which have contributed 95.86% of Motor Vehicles revenue upto October, 2014 against 93.10% upto October last year. Out of the ten zones seven zones, namely- Delhi(-18.78%), Pune (-22.84%), Nagpur (-23.91%), Chennai(-15.27%), Chandigarh(-14.51%), Ranchi(-34.26%) and Bhopal(-34.44%) are below All India PLA revenue growth rate (-13.64%), whereas the CENVAT utilization in respect of four zones, viz. Chennai(14.42%), Bangalore (13.24%), Mumabi-I(36.23%) , and Chandigarh(8.79%) are more than the All India growth rate of CV utilization (6.36%).

The PLA CENVAT ratio of Motor Vehicles upto October, 2014 is 14:86 which was 17:83 in the corresponding period last year showing 3% increase in CENVAT utilization.

Motor Vehicles (Rs. in Crores)S.No ZONES 2013-14 Upto the Month Upto the Month %age Excess/short


1 DELHI 2130.73 12867.77 1036.12 7484.96 841.52 7755.53 -18.78 3.612 BANGALORE 1377.62 2725.62 778.49 1589.59 814.30 1800.01 4.60 13.243 PUNE 1557.68 5459.57 917.46 3338.38 707.95 3307.67 -22.84 -0.924 NAGPUR 1485.81 2445.59 851.87 1470.80 648.16 1491.87 -23.91 1.435 CHENNAI 1269.74 11314.53 667.98 6562.31 565.99 7508.69 -15.27 14.426 MUMBAI – I 679.91 4509.15 348.98 2387.01 532.36 3251.92 52.55 36.237 MEERUT 281.05 1021.70 151.77 590.25 160.77 333.70 5.93 -43.468 CHANDIGARH 291.99 664.02 155.24 389.73 132.71 423.99 -14.51 8.799 RANCHI 132.18 678.88 86.80 465.05 57.06 367.71 -34.26 -20.9310 BHOPAL 156.30 1005.83 83.70 615.31 54.87 553.87 -34.44 -9.99

Total Top 10 9363.01 42692.66 5078.41 24893.39 4515.69 26794.96 -11.08 7.64 Others 643.98 3165.54 376.60 1852.80 195.15 1652.01 -48.18 -10.84 TOTAL (All India) 10006.99 45858.20 5455.01 26746.19 4710.84 28446.97 -13.64 6.36


38

REVENUE OF MOTOR VEHICLES PRODUCTS IN TOP TEN EXCISE ZONES

Cement: Excise revenue contribution of Cement is 5735.57 Crore to the All India gross revenue collected upto October, 2014 as against 5433.47 Crore to the All India gross revenue collected upto October last year. The revenue growth in Cement upto October 2014 over last year is (5.56%), whereas growth in CENVAT is 12.72%.

The major contribution of the Cement revenue comes from ten zones shown in table below, which have contributed 82.45% of Cement revenue upto October, 2014 against 83.72% upto October last year. Out of the ten zones four zones, namely Mumbai-I(-4.62%), Chennai(4.82%), Hyderabad (-12.84%), and Coimbatore(-21.53%) are below All India PLA revenue growth rate (5.56%), whereas the CENVAT utilization in respect of four zones, viz.- Mumbai-I(22.65%), Jaipur(20.55%), Lucknow(25.20%), and Ahemdabad(22.67%) are more than the All India growth rate of CV utilization (12.90%).

The PLA CENVAT ratio of Cement upto October, 2014 is 57:43 which was 59:41 was during the corresponding period of last year.

Cement (Rs. in Crores)S.No ZONES 2013-14 Upto the Month Upto the Month %age Excess/short


1 MUMBAI – I 1720.81 813.54 919.33 505.54 876.87 620.05 -4.62 22.652 JAIPUR 1439.81 1096.48 753.63 658.13 834.98 793.36 10.79 20.553 BHOPAL 1523.54 839.08 771.61 555.19 829.26 560.17 7.47 0.904 VIZAG 1143.49 543.95 585.52 343.63 648.82 347.67 10.81 1.185 HYDERABAD 722.64 285.48 405.54 172.57 353.45 170.23 -12.84 -1.366 COIMBATORE 696.89 317.81 405.04 209.22 317.82 224.85 -21.53 7.477 MYSORE 348.10 308.97 168.37 193.21 252.33 206.79 49.87 7.038 AHMEDABAD 416.36 335.03 199.11 191.92 240.80 235.43 20.94 22.679 CHENNAI 333.53 173.43 190.39 109.34 199.57 91.07 4.82 -16.7110 LUCKNOW 276.87 246.79 150.45 146.05 174.92 182.85 16.26 25.20

Total Top 10 8622.04 4960.56 4548.99 3084.80 4728.82 3432.47 3.95 11.27 Others 1685.51 1279.02 884.48 728.78 1006.75 866.33 13.82 18.87 TOTAL (All India) 10307.55 6239.58 5433.47 3813.58 5735.57 4298.80 5.56 12.72


39

REVENUE OF CEMENT PRODUCTS IN TOP TEN EXCISE ZONES

Machinery Products: Excise revenue contribution of Machinery Products is 2978.34 Crore to the All India gross revenue collected upto October, 2014 as against 4047.61 Crore to the gross revenue collected upto October last year. Thus, the revenue growth in Machinery Products upto October, 2014 over last year is -26.42 %, whereas growth in CENVAT is -1.28%.

The major contribution of the Machinery Products revenue comes from ten zones shown in table below, which have contributed 79.75% of Machinery Products revenue upto October, 2014 against 77.15% upto October last year. Out of the ten zones, eight zones, namely- Pune (-35.07%), Delhi (-32.71%), Chennai (-42.68%), Ahemdabad(-32.87%), Mumbai-I (-27.38%), Kolkata(-44.23%) Nagpur(42.74%) and Vadodara (-39.60%) are below All India PLA revenue growth rate (-26.42 %), whereas the CENVAT utilization in respect of three zones, viz.– Meerut(14.52%), Pune(1.91%), and Chennai(9.42%), are more than the All India growth rate of CV utilization (0.25%.).

The PLA CENVAT ratio of Machinery Products upto October, 2014 is 15:85 which was 19:81 during the corresponding period of last year.

Machinery Products (Rs. in Crores)S.No ZONES 2013-14 Upto the Month Upto the Month %age Excess/short


1 MEERUT 1512.46 2061.03 755.20 1092.83 842.40 1251.56 11.55 14.522 PUNE 897.00 4782.38 480.12 2781.40 311.75 2834.64 -35.07 1.913 DELHI 785.69 4175.02 364.06 2506.70 244.96 2286.45 -32.71 -8.794 BANGALORE 593.78 2430.37 318.64 1357.00 239.76 1338.62 -24.76 -1.355 CHENNAI 664.43 3213.62 349.10 1877.87 200.09 2054.72 -42.68 9.426 AHMEDABAD 376.85 1459.69 192.24 840.51 129.06 828.94 -32.87 -1.387 MUMBAI – I 321.19 1016.69 160.87 554.94 116.82 527.13 -27.38 -5.018 VADODARA 356.39 1596.43 169.21 923.08 102.21 888.38 -39.60 -3.769 KOLKATA 281.52 826.35 169.13 463.08 94.32 418.37 -44.23 -9.65

10 NAGPUR 303.04 1260.99 164.12 749.59 93.98 738.84 -42.74 -1.43 Total Top 10 6092.35 22822.57 3122.69 13147.00 2375.35 13167.65 -23.93 0.16 Others 2022.52 6554.81 924.92 3812.80 602.99 3575.89 -34.81 -6.21 TOTAL (All India) 8114.87 29377.38 4047.61 16959.80 2978.34 16743.54 -26.42 -1.28


40

REVENUE OF MACHINERY PRODUCTS IN TOP TEN EXCISE ZONES

4. ALL INDIA PERFORMANCE IN KEY RESULT AREAS

The key areas essentially reflect the efforts made by the Commissioners and their staff for augmenting the revenue which otherwise would have not accrued in the normal course, without special efforts made by their office. The Table below gives a comparative performance in these areas upto October, 2014 and corresponding period last year.

Performance of Identified Key areas of Excise - October, 2014All India (Rs. in Lakhs)S.No. Key Areas 2013-14 2014-15 Increase/

decrease %

ChangeFor the month

Upto the month

For the month

Upto the month

1 2 3 4 5 6 7 81 Realisation of

arrears

Amount realised 4927 87155 35488 82127 -5028 -5.77 Total pendency 6414925 6437054 22129 0.34

2 Completion of Adjudication

No. of cases adjudicated

1038 7997 829 6162 -1835 -22.95

No. of cases pending 11558 13028 1470 12.723 Anti evasion

performance

No. of cases detected 460 1938 192 1344 -594 -30.65 Vol. Recovery made 5975 21892 2681 17678 -4214 -19.25

4 Audit Performance No. of objections

raised6269 30815 3305 30967 152 0.49

Amount recovered 10968 57828 5816 59701 1873 3.245 Call-book cases

No. of cases disposed 286 2113 1046 2665 552 26.12 total pendency 35998 37650 1652 4.59

41

Pendency of Arrears: An amount of 6437054 lakh is reflected as arrears of revenue pending realization upto OCTOBER 2014,. This amount was only 6414925 lakh upto October, 2013. The pendining arrears of revenue have therefore increased by 22129 lakhs (0.34%). Chief Commissioners of Nagpur, Vadodara, Ahemdabad, Mysore, Cochin, Hyderabad, Viishakhapatnam, Ciombatore, Lucknow, Ranchi, Meerut, Delhi, Jaipur, Bhopal, Kolkata, Bhubaneshwar and Shillong have realized less arrears in the month as compared to the corresponding period last year.

S.No. ZONE

Realisation of arrears (Rs. in Lakhs)2013-14 2014-15

Increase/ decrease

% ChangeFor the

month Upto the month

For the month

Upto the month

1 2 3 4 5 6 7 8 9

1 MUMBAI - I Amount realised 366 879 31969 36376 35497 4038.34Total pendency 878395 350865 -527530 -60.06

2 MUMBAI - II Amount realised 267 1270 481 3796 2526 198.90Total pendency 284911 309212 24301 8.53

3 PUNE Amount realised 477 2324 340 3662 1338 57.57Total pendency 101981 107600 5619 5.51

4 NAGPUR Amount realised 87 3575 1 433 -3142 -87.89Total pendency 303788 252974 -50814 -16.73

5 VADODARA Amount realised 83 5013 49 2692 -2321 -46.30Total pendency 777655 978560 200905 25.83

6 AHMEDABAD Amount realised 227 1735 51 885 -850 -48.99Total pendency 252809 262672 9863 3.90

7 BANGALORE Amount realised 210 1706 600 3054 1348 79.02Total pendency 360676 373931 13255 3.68

8 MYSORE Amount realised 905 2817 35 431 -2386 -84.70Total pendency 114353 124520 10167 8.89

9 COCHIN Amount realised 2 145 14 88 -57 -39.31Total pendency 33975 34544 569 1.67

10 HYDERABAD Amount realised 546 3168 88 1804 -1364 -43.06Total pendency 273040 275478 2438 0.89

11 VISHAKAPATNAM Amount realised 111 2494 26 1690 -804 -32.24Total pendency 177561 186594 9033 5.09

12 CHENNAI Amount realised 157 2939 492 3783 844 28.72Total pendency 182309 254477 72168 39.59

13 COIMBATORE Amount realised 235 1799 65 480 -1319 -73.32Total pendency 138812 135527 -3285 -2.37

14 LUCKNOW Amount realised 61 1168 68 402 -766 -65.58Total pendency 175836 136662 -39174 -22.28

15 MEERUT Amount realised 65 32879 44 11879 -21000 -63.87Total pendency 334829 343134 8305 2.48

16 RANCHI Amount realised 136 928 1 73 -855 -92.13Total pendency 122913 126593 3680 2.99

17 DELHI Amount realised 96 2311 207 2208 -103 -4.46Total pendency 663501 705027 41526 6.26

18 CHANDIGARH Amount realised 118 954 169 2476 1522 159.54Total pendency 201148 224538 23390 11.63

19 JAIPUR Amount realised 144 1380 163 1211 -169 -12.25Total pendency 119947 133765 13818 11.52

20 BHOPAL Amount realised 371 7115 195 1859 -5256 -73.87Total pendency 257652 289178 31526 12.24

21 KOLKATA Amount realised 160 2757 89 500 -2257 -81.86Total pendency 421877 472155 50278 11.92

22 BHUBANESHWAR Amount realised 86 2034 84 1304 -730 -35.89Total pendency 116028 238604 122576 105.64

23 SHILLONG Amount realised 17 5765 257 1041 -4724 -81.94Total pendency 120929 120444 -485 -0.40

ALL INDIA Amount realised 4927 87155 35488 82127 -5028 -5.77

Total pendency 6414925 6437054 22129 0.34

Pendency of adjudication: 13028 cases are pending adjudication upto OCTOBER, 2014, where as upto October 2013 11558 cases were pending adjudication resulting increase in pendency by 1470

42

cases (12.72%). The number of cases adjudicated has increased in the zones of Chief Commissioners of Nagpur, Mysore, Vizag, Ciombatore, Lucknow, Meerut, Ranchi, Chandigarh, Bhopal and Bhubaneshwar.

S.No. ZONE

Completion of Adjudication2013-14 2014-15

Increase/ decrease

% ChangeFor the


For the month

Upto the month

1 2 3 4 5 6 7 8 9

1 MUMBAI - INo. of cases adjudicated 68 902 35 721 -181 -20.07No. of cases pending 1438 2129 691 48.05

2 MUMBAI - IINo. of cases adjudicated 138 479 47 375 -104 -21.71No. of cases pending 547 297 -250 -45.70

3 PUNENo. of cases adjudicated 40 158 24 94 -64 -40.51No. of cases pending 188 234 46 24.47

4 NAGPURNo. of cases adjudicated 35 146 23 287 141 96.58No. of cases pending 117 219 102 87.18

5 VADODARANo. of cases adjudicated 101 537 49 429 -108 -20.11No. of cases pending 1331 1096 -235 -17.66

6 AHMEDABADNo. of cases adjudicated 39 166 50 109 -57 -34.34No. of cases pending 1371 1616 245 17.87

7 BANGALORENo. of cases adjudicated 44 259 68 158 -101 -39.00No. of cases pending 163 212 49 30.06

8 MYSORENo. of cases adjudicated 15 57 4 104 47 82.46No. of cases pending 169 232 63 37.28

9 COCHINNo. of cases adjudicated 2 32 0 18 -14 -43.75No. of cases pending 203 264 61 30.05

10 HYDERABADNo. of cases adjudicated 27 195 12 89 -106 -54.36No. of cases pending 128 113 -15 -11.72

11 VISHAKAPATNAMNo. of cases adjudicated 2 12 14 91 79 658.33No. of cases pending 12 69 57 475.00

12 CHENNAINo. of cases adjudicated 81 525 52 453 -72 -13.71No. of cases pending 340 279 -61 -17.94

13 COIMBATORENo. of cases adjudicated 31 148 31 152 4 2.70No. of cases pending 251 402 151 60.16

14 LUCKNOWNo. of cases adjudicated 25 293 27 351 58 19.80No. of cases pending 526 363 -163 -30.99

15 MEERUTNo. of cases adjudicated 45 200 30 340 140 70.00No. of cases pending 442 459 17 3.85

16 RANCHINo. of cases adjudicated 12 72 12 74 2 2.78No. of cases pending 137 188 51 37.23

17 DELHINo. of cases adjudicated 80 342 41 336 -6 -1.75No. of cases pending 940 1029 89 9.47

18 CHANDIGARHNo. of cases adjudicated 81 438 149 559 121 27.63No. of cases pending 1242 1049 -193 -15.54

19 JAIPURNo. of cases adjudicated 34 393 26 174 -219 -55.73No. of cases pending 337 419 82 24.33

20 BHOPALNo. of cases adjudicated 51 422 76 792 370 87.68No. of cases pending 792 881 89 11.24

21 KOLKATANo. of cases adjudicated 55 509 52 339 -170 -33.40No. of cases pending 573 1031 458 79.93

22 BHUBANESHWARNo. of cases adjudicated 11 48 3 93 45 93.75No. of cases pending 246 380 134 54.47

23 SHILLONGNo. of cases adjudicated 21 1664 4 24 -1640 -98.56No. of cases pending 65 67 2 3.08

ALL INDIANo. of cases adjudicated 1038 7997 829 6162 -1835 -22.95

No. of cases pending 11558 13028 1470 12.72Detection of Anti Evasion Cases: 1344 cases have been detected by the Anti Evasion wings upto OCTOBER, 2014 vis-à-vis 1938 cases detected upto October, 2013 resulting in decrease of 594 cases (-30.65%). Chief Commissioners of, Ahemdabad, Cochin, Chennai, Lucknow and Chandigarh have shown positive performance. Voluntary Recoveries made: 17678 lakhs have been voluntarily recovered upto OCTOBER, 2014 vis-à-vis

21892 lakhs recovered upto October, 2013 resulting in decrease of 4214 lakhs (-19.25%). Chief

43

Commissioners of Nagpur, Bangalore, , Cochin, Hyderabad, Delhi, and Shillong, have recovred more duty voluntarily from the assesses upto the month as compared to corresponding period last year.

S.No. ZONE

Anti evasion performance2013-14 2014-15

Increase/ decrease

% ChangeFor the


For the month

Upto the month

1 2 3 4 5 6 7 8 9

1 MUMBAI - INo. of cases detected 11 43 5 33 -10 -23.26Vol. Recovery made 389 1308 40 544 -764 -58.41

2 MUMBAI - IINo. of cases detected 10 64 1 33 -31 -48.44Vol. Recovery made 152 832 54 682 -150 -18.03

3 PUNENo. of cases detected 1 6 0 2 -4 -66.67Vol. Recovery made 20 286 0 179 -107 -37.41

4 NAGPURNo. of cases detected 31 171 12 139 -32 -18.71Vol. Recovery made 429 1564 279 2240 676 43.22

5 VADODARANo. of cases detected 38 127 1 47 -80 -62.99Vol. Recovery made 807 2693 19 1830 -863 -32.05

6 AHMEDABADNo. of cases detected 18 51 10 53 2 3.92Vol. Recovery made 365 1673 152 916 -757 -45.25

7 BANGALORENo. of cases detected 7 35 6 34 -1 -2.86Vol. Recovery made 179 895 872 1637 742 82.91

8 MYSORENo. of cases detected 3 15 0 10 -5 -33.33Vol. Recovery made 0 130 0 123 -7 -5.38

9 COCHINNo. of cases detected 7 19 3 24 5 26.32Vol. Recovery made 19 37 146 355 318 859.46

10 HYDERABADNo. of cases detected 7 27 5 25 -2 -7.41Vol. Recovery made 68 287 88 388 101 35.19

11 VISHAKAPATNAMNo. of cases detected 1 22 3 11 -11 -50.00Vol. Recovery made 283 513 5 113 -400 -77.97

12 CHENNAINo. of cases detected 4 24 4 29 5 20.83Vol. Recovery made 641 864 67 588 -276 -31.94

13 COIMBATORENo. of cases detected 6 33 1 19 -14 -42.42Vol. Recovery made 8 279 0 164 -115 -41.22

14 LUCKNOWNo. of cases detected 30 128 11 171 43 33.59Vol. Recovery made 48 519 107 363 -156 -30.06

15 MEERUTNo. of cases detected 22 92 9 77 -15 -16.30Vol. Recovery made 334 1631 224 1066 -565 -34.62

16 RANCHINo. of cases detected 2 19 4 14 -5 -26.32Vol. Recovery made 400 853 1 39 -814 -95.43

17 DELHINo. of cases detected 31 283 26 184 -99 -34.98Vol. Recovery made 132 1882 328 2206 324 17.22

18 CHANDIGARHNo. of cases detected 116 237 41 168 -69 -29.11Vol. Recovery made 610 1192 78 717 -475 -39.85

19 JAIPURNo. of cases detected 8 55 3 38 -17 -30.91Vol. Recovery made 328 1311 16 905 -406 -30.97

20 BHOPALNo. of cases detected 20 98 22 63 -35 -35.71Vol. Recovery made 624 1759 55 518 -1241 -70.55

21 KOLKATANo. of cases detected 9 134 6 78 -56 -41.79Vol. Recovery made 76 853 14 344 -509 -59.67

22 BHUBANESHWARNo. of cases detected 2 19 0 3 -16 -84.21Vol. Recovery made 18 279 0 103 -176 -63.08

23 SHILLONGNo. of cases detected 76 236 19 89 -147 -62.29Vol. Recovery made 45 252 136 1658 1406 557.94

ALL INDIANo. of cases detected 460 1938 192 1344 -594 -30.65Vol. Recovery made 5975 21892 2681 17678 -4214 -19.25

Audit Objections: 30967 audit objections have been raised by the Audit Parties upto October 2014, vis-à-vis 30815 cases detected upto October, 2013 resulting in increase of 152 audit objections (0.49%). Chief Commissioners of Pune, Nagpur, Vododara, Ahemdabad, Bangalore, Cochin, Hyderabad, Coimbatore, Lucknow, Meerut, Ranchi, Jaipur and Shillong have shown positive performance in raising audit points in the months as compared to the same period of the last year.

S.No. ZONE

Audit Performance (Rs. in Lakhs)2013-14 2014-15 Increase/

decrease %

ChangeFor the month

Upto the month

For the month

Upto the month

44

1 2 3 4 5 6 7 8 9

1 MUMBAI - I No. of objections raised 72 998 10 454 -544 -54.51Amount recovered 86 5956 30 1342 -4614 -77.47

2 MUMBAI - II No. of objections raised 440 2114 122 1635 -479 -22.66Amount recovered 668 3056 77 2025 -1031 -33.74

3 PUNE No. of objections raised 277 1258 152 1318 60 4.77Amount recovered 561 1911 504 4274 2363 123.65

4 NAGPUR No. of objections raised 267 1528 64 1793 265 17.34Amount recovered 448 2501 13 3535 1034 41.34

5 VADODARA No. of objections raised 495 2732 456 3583 851 31.15Amount recovered 780 4639 548 6221 1582 34.10

6 AHMEDABAD No. of objections raised 547 2379 183 2472 93 3.91Amount recovered 635 4721 306 3746 -975 -20.65

7 BANGALORE No. of objections raised 295 1838 291 2601 763 41.51Amount recovered 959 5640 1050 7608 1968 34.89

8 MYSORE No. of objections raised 102 429 16 235 -194 -45.22Amount recovered 176 315 8 226 -89 -28.25

9 COCHIN No. of objections raised 116 737 111 843 106 14.38Amount recovered 115 668 110 1314 646 96.71

10 HYDERABAD No. of objections raised 138 748 163 949 201 26.87Amount recovered 268 2805 167 2435 -370 -13.19

11 VISHAKAPATNAM No. of objections raised 167 808 57 722 -86 -10.64Amount recovered 324 873 576 1602 729 83.51

12 CHENNAI No. of objections raised 336 1938 213 1831 -107 -5.52Amount recovered 475 3898 542 3229 -669 -17.16

13 COIMBATORE No. of objections raised 131 614 257 837 223 36.32Amount recovered 671 1083 382 1654 571 52.72

14 LUCKNOW No. of objections raised 139 653 25 1020 367 56.20Amount recovered 66 722 1 1254 532 73.68

15 MEERUT No. of objections raised 299 1683 255 1759 76 4.52Amount recovered 439 2359 348 4041 1682 71.32

16 RANCHI No. of objections raised 53 399 68 710 311 77.94Amount recovered 95 785 64 1915 1130 143.95

17 DELHI No. of objections raised 1364 4051 224 3408 -643 -15.87Amount recovered 2499 6076 200 4323 -1753 -28.85

18 CHANDIGARH No. of objections raised 159 999 65 881 -118 -11.81Amount recovered 182 1234 146 2280 1046 84.76

19 JAIPUR No. of objections raised 240 1022 91 1077 55 5.38Amount recovered 218 1188 152 1396 208 17.51

20 BHOPAL No. of objections raised 303 1435 207 900 -535 -37.28Amount recovered 829 4737 340 3637 -1100 -23.22

21 KOLKATA No. of objections raised 181 1677 125 1157 -520 -31.01Amount recovered 97 1111 61 825 -286 -25.74

22 BHUBANESHWAR No. of objections raised 60 428 100 327 -101 -23.60Amount recovered 328 1203 137 637 -566 -47.05

23 SHILLONG No. of objections raised 88 347 50 455 108 31.12Amount recovered 49 347 54 182 -165 -47.55

ALL INDIANo. of objections raised 6269 30815 3305 30967 152 0.49

Amount recovered 10968 57828 5816 59701 1873 3.24

45

Call Book Cases: 37650 cases are pending in call book category upto OCTOBER, 2014, vis-à-vis 35998 call book cases pending upto October, 2013 resulting in increase in pendency by 1652 cases.

S.No. ZONE

Call-book cases (Rs. in Lakhs)2013-14 2014-15 Increase/

decrease %

ChangeFor the month

Upto the month

For the month

Upto the month

1 2 3 4 5 6 7 8 9

1 MUMBAI - INo. of cases disposed 37 63 16 135 72 114.29total pendency 1822 1876 54 2.96

2 MUMBAI - IINo. of cases disposed 0 324 64 197 -127 -39.20total pendency 1029 858 -171 -16.62

3 PUNENo. of cases disposed 3 83 43 256 173 208.43total pendency 3041 3550 509 16.74

4 NAGPURNo. of cases disposed 5 38 3 65 27 71.05total pendency 2775 2872 97 3.50

5 VADODARANo. of cases disposed 43 111 3 159 48 43.24total pendency 3684 3580 -104 -2.82

6 AHMEDABADNo. of cases disposed 17 159 61 104 -55 -34.59total pendency 995 1142 147 14.77

7 BANGALORENo. of cases disposed 3 62 162 276 214 345.16total pendency 1350 1232 -118 -8.74

8 MYSORENo. of cases disposed 5 9 0 31 22 244.44total pendency 894 932 38 4.25

9 COCHINNo. of cases disposed 6 7 1 8 1 14.29total pendency 710 737 27 3.80

10 HYDERABADNo. of cases disposed 10 18 21 52 34 188.89total pendency 1416 1536 120 8.47

11 VISHAKAPATNAMNo. of cases disposed 23 55 182 198 143 260.00total pendency 865 844 -21 -2.43

12 CHENNAINo. of cases disposed 30 170 234 295 125 73.53total pendency 3568 3810 242 6.78

13 COIMBATORENo. of cases disposed 14 33 0 1 -32 -96.97total pendency 1593 1603 10 0.63

14 LUCKNOWNo. of cases disposed 6 18 48 97 79 438.89total pendency 458 665 207 45.20

15 MEERUTNo. of cases disposed 9 30 130 219 189 630.00total pendency 1594 1805 211 13.24

16 RANCHINo. of cases disposed 4 60 0 7 -53 -88.33total pendency 762 749 -13 -1.71

17 DELHINo. of cases disposed 12 227 1 55 -172 -75.77total pendency 1498 1269 -229 -15.29

18 CHANDIGARHNo. of cases disposed 4 297 37 98 -199 -67.00total pendency 2017 2692 675 33.47

19 JAIPURNo. of cases disposed 3 75 0 29 -46 -61.33total pendency 1062 1135 73 6.87

20 BHOPALNo. of cases disposed 10 145 19 162 17 11.72total pendency 2437 2373 -64 -2.63

21 KOLKATANo. of cases disposed 7 83 21 105 22 26.51total pendency 1073 940 -133 -12.40

22 BHUBANESHWARNo. of cases disposed 0 0 0 61 61 #DIV/0!total pendency 868 941 73 8.41

23 SHILLONGNo. of cases disposed 35 46 0 55 9 19.57total pendency 487 509 22 4.52

ALL INDIANo. of cases disposed 286 2113 1046 2665 552 26.12

total pendency 35998 37650 1652 4.59

5. STATEMENT OF DUTY FOREGONE ON EXCISE DUTY-FREE PROCUREMENTS FROM INDIGENOUS FACTORIES UNDER VARIOUS EXPORT PROMOTION SCHEMES OF THE

46

GOVERNMENT

S.No Name of the Scheme Amount foregone %

Upto the Month Upto the Month increase/decline2013-14 2014-15

1 EPZs/EATPs/STPs 197.78 461.97 133.582 100% EOU 4364.77 3724.35 -14.673 SEZs 2317.97 2385.58 2.92

4SERVED FROM INDIA SCHEME NOTFN. NO. 34/2006 CENTRAL EXCISE

105.47 114.27 8.34

5FOCUS PRODUCT SCHEME -NOTIFICATION No.29/2012 CENTRAL EXCISE

0.00 0.00

6FOCUS MARKET SCHEME -NOTIFICATION No.30/2012 CENTRAL EXCISE

0.00 3.57

7AGRI. INFRASTRUCTURE INCENTIVE SCHEME -NOTIFICATION No.31/2012 CENTRAL EXCISE

0.00 0.35

8VISHESH KRISHI AND GRAM UDHOG YOMARA NOTIFICATION No.32/2012 CENTRAL EXCISE

0.00 1.53

9STATUS HOLDER INCENTIVE SCRIP(SHIS) NOTIFICATION No.33/2012

0.00 35.21


0.00 0.00


0.00 1.48


0.00 0.00

13EXPORT EPCG DUTY CREDIT SCRIP NOTIFICATION No.14/2013-CT 0.00 0.00

TOTAL 6985.99 6728.31 -3.69Note: This statement was not uploaded on DDM website during month of October, 2014 from Kolkata-V and

Kolkata-VII Commissionerates.

47

Duties forgone on various Export Promotion Schemes has gone down by -3.69 % upto October 2014 compared to October 2013.In numerical terms, the maximum duty foregone is in respect of 100% EOU: ( 3724.35 crore) followed by SEZs ( 2385.58 crore), EPZs/EATPs/STPs ( 461.97 crores) and Served from India Scheme (114.27 crore),

(VIJAY KUMAR) Additional Director General

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an analytical report on central excise with graphs & charts

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