(Fast Mail News) - The State Petroleum dealers Association has demanded a high level inquiry into the alleged corruption in Diesel supply by some unscrupulous traders thus evading VAT that incurred a loss of crores of rupees to the state exchequer.
The association has alleged that during the last 12 months, there have been lockdowns and shut downs resulting in disruption of business and thereby losing crores of rupees as revenue to the state exchequer.
As per the government rules, purchases of diesel to road contractors, industries,mining sector on C-Form is banned in Odisha.
Utkal petroleum dealers Association has alleged that about 15% of diesel consumed in Odisha is being brought from other states with a complete loss of revenue to the state exchequer. This has prompted these consumers to now make their purchases from neighboring states as the vat is cheaper there.
Sanjay Kumar Lath, General Secretary Utkal petroleum dealers Association alleged:”Though Bio-Diesel is supposed to be a boon for the environment and the agric-economy, some unscrupulous traders are violating all rules and marketing this fuel by evading all state government taxes, leading to a loss of volumes of normal diesel revenues through VAT”.
Upon banning of C-Form purchases from neighboring states by the central government large industries, mining contractors, road contractors are already using pure Biodiesel to gain more profits and evade state VAT.The same unscrupulous practice was being followed in states like Gujarat,Karnataka,Tamil Nadu,Haryana,Telangana and Pubjab,Lath alleged.
In most of the industrial districts in odisha these unscupulous traders eyewashing the concerned authorities and funneling away crores of rupees,it is alleged.
Angul district can be taken for example.This district consumes a large volume of diesel in the state and such illegal Bio-diesel is being brought to here by many such consumers, it is alleged.
The association alleged that In Angul district,NOCs for setting up of Consumer Pumps by contractors, industries and transporters are being issued by the district administration, to name a few like Omm Syndicate and Sherawali transport and others.
The association General Secretary alleged that Oil Marketing Companies like IOCL,BPCL,HPCL,Reliance and Naayra Energy are appointing these consumer pumps by overlooking all laid down guidelines and also supplying them diesel from other states like UP, Uttar Pradesh where VAT is lower, herby causing huge loss to the Odisha State Exchequer to the tune of over hundreds of crores of rupees .
How ever,the commissionerate of CT & GST has denied the allegation saying that the fuel is being purchased after depositing tax from the concerned contractor or parties.Pratap Kumar Panigrahi,the deputy Commissioner,CT &GST said,”The concerned agencies or contractors are purchasing the disel with pre-paying of taxes.If any other fraud come to our notice we will take action”.
On the other hand,the consumer pumps are also allegedly creating a serious safety hazard as they do not follow the petroleum rules, nor they are aware of them..A major fire accident can happen anytime due to this negligence and result in loss of human lives and properties.
The Association has demanded an inquiry into the issue of such NOCs and cancel the same to stop the huge loss of state revenue as well as prevent any major accident.
Sidhartha Shankar Swain, collector Angul told,”We have asked for a report from the concerned authorities regarding the allegation of the association.After getting reports from the concerned we will take action in this regard”.