Extension of time for ST dispute settlement scheme urged

By Our Staff Reporter

HYDERABAD, AUG. 21. There were plenty of questions, but not many answers. At least not to the satisfaction of the traders. However, the Commissioner of Commercial Taxes, Mr.N.Ramesh Kumar, managed to stave them off with a smile, pleading that he was a `sevak', and like a `postman' will communicate their demands to the Government.

Many traders who gathered at the Federation of Andhra Pradesh Chamber of Commerce and Industry (FAPCCI) here on Tuesday for an interaction with the Commissioner, wanted extension of time limit for the first phase of the A.P.Sales Tax Settlement of Disputes Scheme-2001, as also deletion of the powers to revoke a settlement, once it has been thrashed out.

The scheme envisages presentation of a certificate to the concerned party, once the settlement process is through. But it also vests the Government with powers to revoke the settlement at a later date, if any irregularity was discovered. But dealers felt the clause ``exposes the malafide intentions of the Department'', and that `dealers are forced to come with hands tied behind them. What is the advantage of the scheme?'', they asked.

Mr.Ramesh Kumar pleaded with folded hands and a smile, with a joke thrown in now and then to keep them in good humour ``Don't get so emotional and angry. We are friends and not enemies. We are not like India and Pakistan''. Assuring to take the feedback to the Government, he however asked them not to assume that the Government would extend the deadline based on this.

There were occasions when the Government would examine his suggestions and say ``After considering the suggestions of the Commissioner of Commercial Taxes, the Government has `great pleasure' in rejecting it'', he said amidst laughter, relieving some tension among the traders.

Faced with a volley of complaints about pending cases and uncertainty about their resolution under the scheme, he said ``I have a large heart, but to settle your case I will end up with an enlarged heart''.

Finally he conceded the scheme was a conservative one and not like the voluntary disclosure of income scheme (VDIS). It was not intended to be. The objective was only to decrease the litigation, he said and appealed to them to make `fair use' of the scheme and cooperate.

The scheme was applicable to those with arrears and penalties (and interest) pending as on March 31, 2001. Evasion and non- compliance were not covered. Of 7293 cases pending, he said 7019 involved disputes of Rs.1 crore or less and these were the target group for the scheme. It was not for bigger amounts (not more than Rs.1 crore), nor for litigation after March 31.

The scheme was cleared by the Cabinet and he felt there can be no radical changes, even though there were demands from FAPCCI as also the Confederation of Indian Industry. It has been modelled after Maharashtra. Tamil Nadu was the first to have such a scheme, followed by Maharashtra and A.P. was third. The first phase deadline was August 31, and second phase September 30.

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