Shillong, March 17: The lack of coordination between the Forest Department and the Mining and Geology Department resulted in non-collection of Cess amounting to Rs 1.18 crore.

This was revealed  by the Comptroller and Auditor General of India (CAG) in its report on state revenue for the year ended March 31, 2023.

Section 3 of the Meghalaya Minerals Cess (MMC) Act, 1988 specifies the imposition of cess on coal, sillimanite, limestone and fire-clay from any person who removes the minerals from any dumping ground in the State. As per the existing arrangements 35 50, the collection of mineral cess is done by the District Mining Officer.

To ensure that cess has been deposited by the lessees, the Forest Department issues Form K36 51 to the lessees requiring the latter to provide details of the cess paid. No transport challan is to be issued to the lessee until the necessary cess payments had been completed, and District Forest Officer has received completed Form K.

“Audit test-checked (May-June 2023) the records of the Divisional Forest Officer (DFO), Social Forestry & Territorial Division, Nongstoin for the period from April 2018 to March 2023 and observed that 16 mining leases were granted upto March 2023. Out of these 16 mining leases, it was observed that Cess amounting to ₹ 1.18 crore was not collected from three lessees for certain periods,” the CAG said.

“Given that the DFO possessed the information on transportation of limestone, the DFO should have instructed the lessees to deposit the cess due before the issuance of transport challans (Form H) against each lessee. However, the DFO neither directed the lessees to deposit the cess nor informed the Mining Department to raise the demand for payment of cess against the lessees,” it added.

The matter was communicated to the Department on August 2023, and subsequently to the Government on October 2023.

To confirm whether cess was paid by the lessees, the matter was taken up by Audit with the DMR in October 2023.

Subsequently, in November 2023, the DMR responded that records for payment of cess by the lessees from 04 January 2019 to 19 December 2019 were not available with DMR. Information of the same is being sought for from the lease holders after which demand notices will be issued. As of March 2024, the status of payment of cess by the three lessees is yet to be intimated.

“Thus, due the lack of co-ordination between the DFO, Social Forestry & Territorial Division, Nongstoin and the DMR, revenue in the form of cess amounting to ₹ 1.18 crore was not realised and remains recoverable. Comments of the Government is invited (April 2024),” the report said.

In its recommendation, the CAG said that steps should be taken to establish effective communication channels and collaboration mechanisms between the two departments. Implementing a streamlined process for sharing information and coordinating activities will facilitate timely collection of Cess, ensuring revenue is properly accounted for and minimising potential losses to the State Government.

Also Read: NIT Meghalaya erupts in protest: Unhygienic foods, flooded rooms & poor facilities anger students

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