Government losing 1 pc cess as delivery of fuel is done from pumps outside AMC limits

Aurangabad, Feb 12:

The state government is suffering a loss of one per cent 'cess' as the oil companies (in the name of home delivery) are supplying diesel to industries by Re 1 less than the diesel available at the fuel-pumps situated within the Aurangabad Municipal Corporation (AMC) limits. The diesel is transported through bowsers from the pumps situated outside the jurisdiction of AMC to evade payment of the cess.

On the lines of e-commerce, the Petroleum and Explosive Safety Organisation (PESO) had permitted the oil companies for home delivery of diesel. Accordingly, the companies had started supplying fuel through bowsers (tankers) for the past six months. The Hindustan Petroleum Corporation Limited (HPCL) has started bowser service from one fuel pump situated between Karmad and Shekta and another on Paithan Road, while Indian Oil Corporation Limited (IOCL) started service through a pump situated outside Waluj limit. The pump-operators are given bowsers (tankers) of 6,000 litres capacity. The supply of diesel is done through bowsers to the industrial companies from Shendra, Waluj, Chikalthana and Railway Station industrial areas for the operation of generators. Tracking software is also installed at each tanker also equipped with dispense machine and nozzle. Through these bowsers, the pump-operators are distributing more than 12,000 litres of diesel daily, it is learnt.

It has come to notice that in the process of home delivery, the payment of cess is being evaded. The state government collects an additional cess of 1 per cent on the sale of diesel in the municipal corporation limits. The cess is not applicable on pumps outside the AMC limit. The diesel was sold at Rs 86.48 paise at the pumps in city and at Rs 84.34 paise at the pumps outside the city limit.

It is learnt that excluding cess and other taxes, the price of diesel at the pumps in rural areas (outside AMC limit) is less by Rs 2.14 compared to the price of pumps inside AMC limit. The commission of pump-operator is Rs 1.86 paise, and the cess of government is 0.86 paise. It may be noted the sale of diesel is 12,000 litres daily without paying cess (of 0.86 paise) per litre. It means the government is suffering a loss of Rs 3 lakh (in the form of cess) per month. Needless to say, the illegal practice is going on for the past six months, it is said.

According to the city's fuel-pump operators, those evading the cess are also our colleagues. The diesel is being transported from pumps outside the AMC limit through bowsers and is sold in the city limit. It is true that the government is not getting cess in this delivery process. However, the practice is being done with the permissions of oil distribution companies. Hence they are also equally responsible with the pump-operators in evading of cess," they stressed on anonymity.