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Economic and Revenue Sector for the Year Ended 31 March 2019

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Economic and Revenue Sector for the Year Ended 31 March 2019 Report of the Comptroller and Auditor General of India on Economic and Revenue Sector for the year ended 31 March 2019 GOVERNMENT OF GUJARAT (Report No. 3 of the year 2020) http://www.cag.gov.in TABLE OF CONTENTS Particulars Paragraph Page Preface vii Overview ix - xvi PART – I Economic Sector CHAPTER I – INTRODUCTION About this Report 1.1 1 Audited Entity Profile 1.2 1-2 Authority for Audit 1.3 3 Organisational structure of the Office of the 1.4 3 Principal Accountant General (Audit-II), Gujarat Planning and conduct of Audit 1.5 3-4 Significant audit observations 1.6 4-8 Response of the Government to Audit 1.7 8-9 CHAPTER II – COMPLIANCE AUDIT AGRICULTURE, FARMERS WELFARE AND CO-OPERATION DEPARTMENT Functioning of Junagadh Agricultural University 2.1 11-32 INDUSTRIES AND MINES DEPARTMENT Implementation of welfare programme for salt 2.2 32-54 workers FORESTS AND ENVIRONMENT DEPARTMENT Compensatory Afforestation 2.3 54-75 PART – II Revenue Sector CHAPTER–III: GENERAL Trend of revenue receipts 3.1 77 Analysis of arrears of revenue 3.2 80 i Arrears in assessments 3.3 81 Evasion of tax detected by the Department 3.4 81 Pendency of Refund Cases 3.5 82 Response of the Government / Departments 3.6 83 towards audit Audit Planning and Results of Audit 3.7 86 Coverage of this Report 3.8 86 CHAPTER–IV: GOODS AND SERVICES TAX/VALUE ADDED TAX/ SALES TAX Tax administration 4.1 87 Results of Audit 4.2 87 Audit of “Registration under GST” 4.3 88 Non/short levy of VAT due to misclassification 4.4 95 /application of incorrect rate of tax Irregularities in allowance of input tax credit 4.5 100 Short levy of VAT due to incorrect determination 4.6 103 of turnover Non/ short levy of CST 4.7 106 Non/ short levy of interest (VAT) 4.8 108 Tax Deduction at Source 4.9 109 Non-levy of penalty (VAT/ CST) 4.10 110 CHAPTER–V: LAND REVENUE Tax administration 5.1 111 Results of Audit 5.2 111 Performance Audit of ‘Grant of Government land 5.3 112 and monitoring of its proper utilisation’ Irregularities noticed during audit of cases of 5.4 139 conversion of new tenure land into old tenure Non levy of premium/penalty under Gujarat 5.5 143 Tenancy and Agricultural Lands Act ii Short levy of conversion tax 5.6 145 CHAPTER–VI: STAMP DUTY AND REGISTRATION FEES Tax Administration 6.1 147 Results of Audit 6.2 147 Non-levy of premium price on unauthorized 6.3 148 transfer of new tenure agricultural land Short levy of stamp duty and registration fees due 6.4 149 to undervaluation of properties Short levy of stamp duty on conveyance deeds 6.5 154 executed in pursuance of agreements Short levy of stamp duty on assignments/transfer of lease deed, partnership deed and dissolution of 6.6 155 partnership deed Blockage of revenue on documents comprising 6.7 156 distinct transactions Non/short levy of stamp duty on development 6.8 157 agreements Sort levy of stamp duty and registration fees on 6.9 158 documents containing distinct matters Short levy of stamp duty due to misclassification 6.10 159 of documents Irregular grant of exemption from payment of 6.11 161 stamp duty CHAPTER–VII: OTHER TAX AND NON-TAX RECEIPTS Results of Audit 7.1 163 IT Audit of Vahan and Sarathi 7.2 165 Non-realisation of motor vehicles tax 7.3 198 Non-levy of dead rent 7.4 199 Short levy of stamp duty 7.5 200 iii APPENDICES Appendix Subject Refer Page No. Paragraph Year-wise breakup of outstanding I Inspection Reports as on 1.7.1 203 30 September 2019 II Organisation set-up of the University 2.1.1 204-206 Crop-wise sowing area and 2.1.1 and III production in Saurashtra region and 207 2.1.5.3 rest of Gujarat Details of receipts and expenditure IV 2.1.1 208 during 2014-19 Details of job placement of students V 2.1.4.2 209-210 passing out from JAU Enrolment details of Graduation and VI 2.1.4.3 211-212 Post-graduation degree colleges VII Compliance to the fire safety norms 2.1.4.7 213-214 Compliance to the provisions for VIII 2.1.4.7 215-216 buildings used by disabled persons Details of crop varieties released and IX recommendations made for farming 2.1.5.3 217 community by JAU during 2004-19 Details of Varieties registered only in X 2.1.5.5 (b) 218 the name of ICAR Comparison of recommendations 219 XI made by JAU with CIB&RC approved 2.1.5.7 (b) list Use of non-approved Label and XII 2.1.5.7 (c) 220 Leaflets for the sale of Insecticides Crop-wise FLD undertaken for new 221 XIII varieties of top five crops during 2.1.6.1 2014-19 Roads where condition was not good causing difficulties to MHUs in XIV 2.2.7.2 222 providing medical services to salt workers Details of meetings held and proposals XV 2.2.10 223-224 received at DLECs during 2014 -19 Proposals/issues without final XVI 2.2.10 225-227 outcome XVII List of cases selected for scrutiny 2.3.3 228-232 List of violation cases selected for XVIII 2.3.3 233 scrutiny Short recovery of Net Present Value XIX 2.3.7 234 (NPV) iv Appendix Subject Refer Page No. Paragraph Short recovery of Net Present Value in XX 2.3.7 235 violation cases Short recovery of Compensatory XXI 2.3.7 236-238 Afforestation Cases in which cost-benefit analysis XXII were not carried out as per specified 2.3.8 239-240 parameters in Guidelines Cases where amounts were recovered XXIII by the Department in compliance to 2.3.9 241-242 additional conditions Details of irregular and inadmissible XXIV 2.3.11 243 activities Cases where additional plantation was suggested by Forest Department/ XXV 2.3.14 244 Other Department of GoG and Central Government XXVI Case Study 1 and 2 7.2.10 (ii) 245 Approvals granted to various services XXVII 7.2.11 (i) 246 by the officials of the RTO/ ARTOs Various levels of authorisation carried XXVIII 7.2.11 (ii) (a) 247 out by the same official XXIX Case Study 3 7.2.11 (ii) (a) 248 v vi PREFACE This Report for the year ended March 2019 has been prepared for submission to the Governor of Gujarat under Article 151 of the Constitution of India. The Report contains significant findings of audit of the Departments under Economic Sector and of the Receipts and Expenditure of major Revenue earning Departments under Revenue Sector under the provisions of the Comptroller and Auditor General of India’s (Duties, Powers and Conditions of Service) Act, 1971 and Regulations on Audit and Accounts, 2007 issued thereunder by the Comptroller and Auditor General of India. This report is required to be placed before the State Legislature under Article 151 (2) of the Constitution of India. The instances mentioned in this Report are among those, which came to notice in the course of test audit for the period 2018-19 as well as those which had come to notice in earlier years, but could not be reported in previous Audit Reports; instances relating to the period subsequent to 2018-19 have also been included, wherever necessary . The audit has been conducted in conformity with the Auditing Standards issued by the Comptroller and Auditor General of India. vii viii OVERVIEW I ECONOMIC SECTOR Part I of this Report contains three compliance audit paragraphs. The significant audit findings are discussed below. The Principal Accountant General (Audit–II), Gujarat conducts audit of the expenditure incurred by nine Departments under the Economic Services Sector in the State. It includes audit at the Secretariat level, the field offices, 59 autonomous bodies and 75 public sector undertakings (PSUs) falling under the jurisdiction of nine Departments. Each Department is headed by Additional Chief Secretary/ Principal Secretary/ Secretary, who are assisted by Directors/ Commissioners/ Chief Engineers and subordinate officers under them. During 2018-19, in the Economic Sector Audit Wing 5,943 man-days were utilised for compliance audit of 115 units and performance audit. The audit plan covered units/ entities selected on the basis of risk assessment. As of 30 September 2019, 589 IRs (2,437 Paragraphs) were outstanding against nine Departments under the Economic Sector. AGRICULTURE, FARMERS WELFARE AND CO-OPERATION DEPARTMENT Functioning of Junagadh Agricultural University Junagadh Agricultural University (JAU) came into existence on 01 May 2004 to provide support to agriculture and allied sectors in Education, Research and Extension Education. It has jurisdiction over 10 districts of Saurashtra region (Western Gujarat) covering about 32.74 per cent of the geographic area and 30.30 per cent of the cultivated area of the State. JAU has eight Colleges, seven Krishi Vigyan Kendra (KVKs) and 31 Research Stations and records of these were examined at the University level. Further, three Colleges and three KVKs were visited for detailed audit. JAU belatedly made application for accreditation to the National Agricultural Education Accreditation Board due to which two colleges did not receive grant from Indian Council of Agricultural Research for two years. In all the major 44 buildings of JAU, compliance to fire safety mechanisms and special provisions for disabled/ Divyang persons as per National Building Code was negligible. During the period 2016-19, placement of students in JAU decreased from 100 per cent to 48.63 per cent .
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