Belying concerns over slowdown, indirect tax collections increased 16.1 per cent to Rs 2,85,787 crore during April-December mainly driven by an uptick in service tax mop-up.

Total collection of indirect tax -- Customs, Central Excise and Service Tax -- was Rs 2,46,168 crore in the same period last year.

"We hope we will be able to meet the Budget Estimates of Rs 3,92,908 crore (from indirect taxes) this fiscal," Chairman of Central Board of Excise and Customs (CBEC) S K Goel told reporters while releasing the data.

The indirect tax collection in three quarters of 2011-12 is about 72.7 per cent of the Budget Estimates.

The collection has shown a growth despite Rs 36,000 crore revenue forgone on account of customs and excise tax cut on petroleum products. The levies were slashed in June to provide a cushion to consumers against hike in prices of diesel, kerosene and LPG were hiked.

The tax mop up in December was Rs 34,819 crore, up 15.9 per cent from Rs 30,054 crore in the year ago period.

"December has given a positive news particularly on the Central Excise front, as the collection increased by 9.7 per cent to Rs 12,546 crore (year-on-year)," Goel added.

The growth in excise collection is a positive news, he said as the mop up had declined by 6.5 in November and by 8.7 per cent in September. It had shown a growth in October.

Goel further said that Service Tax collection continues to be strong and has shown 48.6 per cent expansion in December to Rs 9,665 crore from the year ago period.

There has been concerns on the economic growth prospects of the country in wake of high cost of credit coupled with global scenario. The economy is expected to slow to about 7 per cent this fiscal, against 8.5 per cent in the previous year.