TIOL-DDT 52 · the untouched capture
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<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <b><font color="#0000FF" size="3">TIOL-DDT
52</font><br>
11 2 2005<br>
Friday</b></font></p>
<p align="center"><font color="#006633" size="2" face="Verdana, Arial, Helvetica, sans-serif">
<b>Appeals by PSUs - Should we clog the system?</b></font></p>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> As is well known,
appeals to the Tribunal by Public Sector Undertakings need the clearance from
the Committee on Disputes which may come after five or six years. In the meantime
these PSUs invariably file appeals with the Tribunal so that later their appeals
are not dismissed as time barred. And what happens in the Tribunal? After
some time, these appeals are dismissed as there is no clearance from the COD,
however granting an opportunity to seek restoration of the appeal as and when
the clearance is obtained. <br>
<br>
See the steps in the system:-</font></p>
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">1. A jurisdictional Commissioner or Commissioner(Appeals) passes an order
against a PSU;<br>
<br>
2. The PSU prepares an appeal with all the formalities of an appeal, like
paper books, hundreds of pages of copied documents and these are religiously
transported and deposited with the Tribunal.<br>
<br>
3. Simultaneously take up the matter with the Committee of Secretaries.<br>
<br>
4. When the matter comes up for hearing in the Tribunal, adjournment is sought
as the clearance is yet to be received.<br>
<br>
5. After a few hearings, the Tribunal dismisses the appeal for want of clearance
from COD, but however allows an opportunity to seek restoration.<br>
<br>
6. The permission from COD is received.<br>
<br>
7. Application for restoration filed in the Tribunal.<br>
<br>
8. Tribunal allows restoration<br>
<br>
9. Appeal will come for listing in due course.</font></p>
</blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif">How much of paper, stationery and precious man hours are wasted for this totally
avoidable procedure? Should valuable judicial time be spent in dismissing
and restoring the appeals by PSUs? In the court, precious time is lost on
this insignificant piece of work. The members have to pronounce the order
in the court, somebody has to type it out and make about 20 copies, the honourable
members have to sign it and then the registry has to issue a certified copy
and then despatch it to several people - at the time of dismissing the
appeal. At the time of restoration - ditto!. Can we really afford this
luxury?<br>
<br>
Why can't we do away with this useless unproductive work? Why can't
we change the law so that PSUs can file their appeals after obtaining clearance
from COD? If they <b>don't give it</b> (Strictly, the COD cannot refuse
permission to appeal; In Canara Bank v Power Grid Corporation of India Ltd,
the Delhi High Court held that <b>"it does not lie with the High Power
Committee to refuse clearance; it has only two options - either to resolve
the dispute or to grant clearance for the litigation."</b>) at least
the appeal papers can be saved. <br>
<br>
<font color="#006633"><b>Here is a question for you</b></font><br>
<br>
A PSU filed an appeal against the Commissioner's order before the Tribunal.
It also applied to COD for permission, which was refused. As permission was
refused, it did not pursue the matter in the Tribunal. The case came up in
the Tribunal and even though the appellant was not present, the Tribunal passed
an order in his favour. The Commissioner was naturally aggrieved and so he
took the matter to the Supreme Court of India. He was also refused permission
by the COD. This is the situation. The appellant had no clearance to go to
Tribunal, but Tribunal passed an order in his favour. The Commissioner who
had no permission took the matter to the Supreme Court. What happens to the
case? I will be grateful if you can mail me your possible solutions. <br>
<br>
<font color="#006633"><br>
<b>POLICY THRUST AREAS FOR MINISTRIES AND DEPARTMENTS </b></font><br>
<br>
In consultation with various ministries of the Union Government and based
on the commitments made in the National Common Minimum Programme, the Prime
Minister's Office has identified a comprehensive list of "Thrust
Areas" for policy implementation within the next six months. The PMO
wants all ministries and departments to undertake Institutional reform in
terms of</font></p>
<blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>(i) decentralization, <br>
(ii) simplification, <br>
(iii) transparency, <br>
(iv) accountability and <br>
(v) e-governance</b> </font></p>
</blockquote>
<p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> DDT hopes at least the Revenue department will not send copies of the PMO's
letter to the field formations for strict compliance and periodical reports.
Another thrust area the PMO should have identified was a total ban on calling
for reports. With the amount of time and money spent on paper, phone calls,
fax, Xerox and a host of other paraphernalia to generate useless reports,
perhaps we can link all our rivers. Incidentally that is another thrust area
identified by the PMO - linking rivers, not generating reports. <br>
<br>
The thrust areas identified fgor major economic ministries are:-<br>
<br>
<b>Ministry of Commerce </b><br>
<br>
Department of Commerce <br>
<br>
6.1 Complete introduction of Electronic Data interchange with regard to foreign
trade for online filling, data collection etc. <br>
<br>
6.2 Implementation of the Report of Task Force on Project Exports. <br>
<br>
6.3 Shape content of SEZ and Competitive Economic Zone Policy, including the
Central SEZ Act, to enable world class infrastructure through private participation
and hassle-free regulatory regime in various areas including taxation, customs,
labour etc., in SEZ. <br>
<br>
<b>Ministry of Finance </b><br>
<br>
<font color="#0000FF"><b>Department of Disinvestment </b></font><br>
<br>
15.1 Prepare White Paper on Disinvestment. <br>
<br>
<font color="#0000FF"><b>Department of Expenditure </b></font><br>
<br>
15.3 Finalising and implementing the Task Force Report on review of the General
Financial Rules 1963 with a view to promoting efficiency and transparency
in Government financial systems and procedures. <br>
<br>
15.4 Implementation, through the established working groups, of the report
of the Task Force on revision of procurement norms to ensure greater transparency,
competition, fairness and elimination of discretion in procurement of goods
by Government. <br>
<br>
15.5 Budget for 2005-06 - have detailed interaction on revenues, plan
support, new programmes and policies <br>
<br>
<font color="#0000FF"><b>Banking and Insurance Division </b></font><br>
<br>
15.7 Implementation of Action Plan to facilitate financial flows to the unorganised
sector. <br>
15.8 Prepare action plan and undertake necessary follow-up for time bound
implementation of proposed actions to strengthen the rural credit system. <br>
<br>
<font color="#0000FF"><b>Department of Economic Affairs </b></font><br>
<br>
15.10 Strengthen and facilitate professional functioning of regulatory institutions
to ensure free and fair competition. To achieve this objective, develop an
underlying approach on optimal regulatory arrangements, with necessary sectoral
variants, to provide the basic framework for creating regulatory arrangements
across various sectors. <br>
<br>
15.11 Formulate a National Policy on subsidies, which would identify target
groups, goods & services, subsidy norms, and an exit strategy for existing
subsidies which are inconsistent with the policy. <br>
<br>
15.12 Review existing provisions relating to FDI and develop a comprehensive
policy governing FDI in various sectors, keeping in view investment / developmental
needs, strategic concerns and other relevant factors. <br>
<br>
15.13 Take follow up action on NRI report on FDI within a timeframe of next
six months <br>
<br>
<font color="#0000FF"><b>Financial Sector </b></font><br>
<br>
15.15 Time bound implementation of the Action Plan for the Financial Sector. <br>
<br>
<font color="#0000FF"><b>Department of Revenue </b></font><br>
<br>
15.16 Ensure timely implementation of the State level VAT. <br>
<br>
15.17 Undertake necessary actions for implementation of the proposed system
for services taxation in the country that is acceptable to the Centre and
the State. <br>
<br>
15.18 Comprehensive computerization of Income Tax System to benefits income
tax payers and improve tax administration. <br>
<br>
15.19 Complete introduction of Electronic Data interchange with regard to
foreign trade for online filling, data collection etc. <br>
<br>
15.20 Comprehensive Revision of Customs and Central Excise Code etc. to be
accomplished to ensure transparency, overcome absence of direction, elimination
of unnecessary stages and mandatory time lines. <br>
<br>
<font color="#FF0000"><b>Until tomorrow with more of DDT<br>
<br>
Have a Nice Day<br>
<br>
Mail your comments to</b></font> <b>vijaywrite@taxindiaonline.com </b></font>
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