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The
proposal to hike liquor VAT from 4 per cent to 12.5 per
cent on the pattern of Punjab, without referring the file
to the Excise department officials or the UT Finance
department, had raised a storm within the Administration.
Rodrigues
had asked the inquiry officer to find out how the case had
been initiated and whether any external influence was put
on anyone. He had also directed Finance Secretary Sanjay
Kumar to fix responsibilities on those who could have been
at fault.
The
inquiry report submitted by Finance Secretary has pointed
that the proposal was not a step in the right direction.
The report has further pointed that the proposal moved by
UT Adviser Pardip Mehra was not legally feasible as no
changes can be made in the Excise policy during the year.
Among
the other points that the Administrator wanted the inquiry
officer to find out was whether correct procedure was
followed in moving the file. He also wanted to know
whether any lapses were committed by the UT officials in
dealing with the case at different levels.
He
had said that the Administration did not follow Punjab but
framed its own policy and added that the suggestion to
increase VAT is not only fraught with legal implications,
but has the potential of destabilising liquor trade in the
union territory.
The
Home ministry has now sought a detailed report from the UT
Administration highlighting the procedural and legal
lapses in the issue.
Source
: Chandigarh Newsline - Chandigarh, India, dated
19/11/2008
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