Statistics conceal more and reveal less
THE value of output V/s the Central Excise duty collections was analysed by the Audit in para 1.2. The report reads:
The value of output had increased by a factor of 1.36 during the years 2004-05 to 2008-09 and the corresponding increase in the central excise receipts was by a factor of 1.10. Accordingly, the central excise duties had generally kept steady pace with the value of output except for 2008-09 when there was a reduced growth in receipts compared to 2007-08.
Has the Central Excise duty rate anything to do with the Central Excise collections? Perhaps not for C & AG. Or else, how they can arrive at a conclusion about the value of the output vis-à-vis central excise receipts without taking into account the rate of central excise duty? In 2008-09, the duty rate was reduced from 16% to 14% and in the same year again to 10%. Are the auditors ignorant of this simple fact? Who are they trying to impress with such erroneous analysis and half-baked histograms?