Telangana is born - Special Category Status for AP - Visionary Central Excise
THE first among the linguistic States of India, Andhra Pradesh is bifurcated into Telangana and Andhra. Prosperous and reasonably well-administrated state of Andhra Pradesh is advanced in education, health, IT, Pharma and food sectors and has the highest budget for any State in India. Now, this rich State is to be bifurcated into rich Telangana and poor Andhra.
First of all, we must appreciate the visionary outlook of the Central Excise administrators in Andhra Pradesh. In 2002, the Central Excise (and Customs and Service Tax) jurisdiction in Andhra Pradesh was divided between two zones - Hyderabad and Visakhapatnam and today 12 years later, the State of Andhra Pradesh is bifurcated into two States - Telangana and Andhra and the territorial areas of these two states are coterminous with the jurisdiction of Hyderabad and Vizag Central Excise Zones respectively.
Now, the poor State of Andhra will have to depend on Central alms for its survival. Even to start with, they need assistance from the Centre. Yesterday, the Prime Minister assured in the Rajya Sabha, "the resource gap that may arise in the successor state of Andhra Pradesh in the very first year, especially during the period between the appointed day and the acceptance of the 14th Finance Commission recommendations by the Government of India, will be compensated in the Regular Union Budget for 2014-15."
The Prime Minister also assured tax incentives to the new State. This will be given on the lines of the Excise Exemption to certain States like Uttarakhand, J&K etc.
The Prime Minister has announced these fiscal concessions to the 'successor' State of Andhra Pradesh, but that can be implemented only by his 'successor'. He has promised allocation in the Regular Union Budget for 2014-15, but that budget will be presented by a Government which, perhaps, he will not head. Can he make promises on behalf of his 'successor' Government? Can he bind the next Finance Minister who will take office in another three months?
A new CESTAT Bench for the present State of Andhra Pradesh is proposed to be established at Hyderabad. Now, in view of the bifurcation of the State, should the new CESTAT Bench be located in Hyderabad?
Advocate Sarveswara Rao from Visakhapatnam tells me that whatever happens, he has to always appear before a CESTAT Bench located outside his State. He used to attend CEGAT/CESTAT at Chennai in Tamil Nadu, when that bench had jurisdiction over Andhra Pradesh. Later he attended CESTAT Bench at Bangalore in Karnataka, which at present has jurisdiction over Andhra Pradesh. Now, he will have to attend CESTAT at Hyderabad in Telangana!