Overall indirect collections have grown by over 18 per cent in May over the same month last year. Indirect tax collections in May 1999 has grown to Rs 8,711 crore in May 1999 from Rs 7,359 crore in May 1998.

Excise collections in May 1999 has registered a figure of Rs 4,553 crore-- Rs 836 crore more than May 1998 collection. Customs collection in May 1999 has gone up to Rs 3,954 crore--Rs 526 crore more than May 1998 collection.

The cummulative indirect tax collection for the months of April and May 1999 has grown to Rs 15,150 crore from Rs 12,725 crore during the same period last year.

Revenue secretary Javed Chowdhary has termed the rise of 23 per cent in indirect tax collection in May 1999 over the same month last year "a clear sign of industrial revival".

Chowdharytold The Financial Express that it was clear that industry is picking up which belies the skepticism in some sections. "Recovery of indirect taxes is much more sharp than any one had expected," he added.

"The substantial increase cannot merely be explained by referring to the cess on diesel oil. There seems to be a fair indication that significant sectors of the economy are showing the revival trend. We are analysing the disaggregated picture of the aggregate collection to arrive at a definite conclusion as to which sector have shown greater buoyancy," Chowdhary said.

The substantial rise in customs collection in May this year is on account of rise in international oil prices. Customs collections maintained a growth rate of 2-3 per cent last year, which became zero at the end of the financial year. In April 1999, customs collection had grown by 6.4 per cent over the same month last year.

On the excise side, buoyancy in collection is partially due to the cess on diesel prices which has contributedabout Rs 400 crore to the indirect collection in May 1999. Modvat recovery too has grown substantially in the month, said the official. Last year, modvat recovery was less as some sectors of the industry had withheld it in expectation of a favourable response from the budget.

It may be noted that the indirect tax collections in April 1999 had grown by Rs 1,906 crore in April 1999 over the same month last year by registering a figure of Rs 7,575 crore. Customs collection in the same month had risen to Rs 2,811.87 crore from Rs 2,643.33 crore in April 1998. The excise collection during April 1999 was Rs 3,396.83 crore--Rs 895.31 crore more that the same month last year.