CAG has also rapped the government for the loss of revenue of Rs 268.68 crore due to under-assessment of sales tax in 3,569 cases.

CAG has also flayed the state for the loss of revenue of Rs 494.65 crore due to under-assessment of sales tax, state excise and motor vehicles tax in 11,218 cases. The concerned departments have accepted the responsibility for under-assessment to the tune of only Rs 68.45 crore of which Rs 52.36 crore had been pointed out in 1997-98 CAG report and rest in earlier years. These departments have recovered a paltry Rs 9 crore at the instance of CAG.

The report, tabled by the state tourism minister Sudhir Mungantiwar in the absence of state finance minister Mahadev Shivankar in the state assembly on Thursday said that the government haslost a revenue of Rs 42.93 crore in 288 cases due to assessments being barred by limitations. Continuing delay in completing assessments of 358 dealers has resulted in non-realisation of Rs 67.67 crore.

Failure to invoke the provision for recovery of incentives under the package scheme of incentives availed by closed units during the period of agreement has resulted in non-recovery of Rs 74.30 crore from 190 units. Despite breach of conditions of eligibility, incentives of Rs 1.06 crore were not recovered from 14 units.

According to the CAG report, motor vehicles tax of Rs 60.49 lakh in 611 cases remained unrealised as demands were not raised; misclassification of documents in regard to stamp duty resulted in loss of revenue to the tune of Rs 51.34 lakh; and non-registration of 57 lease agreements/deeds resulted in loss of stamp duty and registration fees worth Rs 11.29 crore.

The report also pointed out that non-levy of hike in land revenue on government land measuring 9,30,567.08 sq mt, situated inNorth Central Mumbai, has resulted in non-recovery of Rs 39.83 crore. The land has been given on lease to the Mumbai Metropolitan Regional Development Authority for commercial use. Though the rent was recovered regularly, the increase of land revenue was not levied.

Besides, non-levy of non-agricultural assessment on acquired land resulted in non-recovery of Rs 36.76 lakh. The government has acquired land measuring 18,18,100 sq mt for various bodies in seven cases in five districts between 1989 and 1997.

CAG has also rapped the government for exemptions worth Rs 19.01 crore granted to film producers despite non-fulfilment of the prescribed conditions under the Bombay Entertainments Duty Act, 1923.

CAG has made it clear that all the exemption orders declaring the films as tax-free were required to be withdrawn under the rules as the essential conditions were not fulfilled.

The non-tax revenue has showed a fall of 3 per cent during 1997-98 as compared to previous year. The major receipts whichcontributed to this decline were power (-44 per cent), police (-42 per cent) and interest (-17 per cent).