For the first time perhaps the Central Board of Direct Taxes has chosen to consciously undermine a hoary law still extant, the one Parliament has chosen not to repeal. The tax administration has been exhorting taxpayers not to set store by the TDS certificates they receive, but by what appears in the Tax Information Network (TIN) as tax credit available to them by way of advance tax, tax collected at source and deducted at source.
What this meant was no matter what the TDS certificates said, the TIN information would be held as final and sacrosanct. And more galling would be a situation where a taxpayer has paid an instalment of advance tax, but can't claim credit for the same because the bank with which the amount has been deposited has goofed up.
TIN information is compiled out of what the banks with which tax deducted at source is deposited upload into the system and TDS certificates are issued by employers and others obliged to deduct tax at source.
The peremptory message is in case of discrepancy between the two, the former would prevail. This was the first step in dethroning of TDS certificates through an administrative fiat without the backing of the Parliamentary approval.
Going a step further, the tax administration now has exhorted the tax deductors not to issue Form 16/16A on the basis of their own accounting information, but on the basis of the TIN information. And this time round, the peremptory order is being flashed by the ticker in red appearing on its Web site. While the ticker might be construed as a belated attempt to forestall and pre-empt the discrepancy between TIN and TDS certificates by aligning the two peremptorily, the bottom-line is effective marginalisation nay annihilation of the true worth of TDS certificates.
The solution worked out by the CBDT to the problem of discrepancy inevitable in a dual system is ham-handed, to say the least. For, the Income-tax Act, 1961 still says that income-tax returns have to be filed on the basis of TDS certificates. Thus if a person has got in his possession TDS certificates obtained from various companies aggregating to Rs 25,000 whereas the TIN shows only Rs 20,000 to his credit, he can claim credit in his income-tax return only for Rs 20,000. . How can he be expected to bear the resultant interest liability for short payment of tax? And In the first place, how can the department place a burden on him for payment of Rs 5,000 when nothing is due from him and the fault is that of the system. The ham-handed solution being attempted is to ask these companies to look up the TIN, and not their own records before issuing the TDS certificates.
This begs the question - why go through the farce of TDS certificates when TIN is in any case going to overrule them.
The plausible explanation is the seeming respect for the mandate of Parliament that TDS certificates still rule the roost. The farce, confusion and contradiction are all going to be heightened when the Department goes ahead with its proposal evinced in its answer to a FAQ that soon it will start sending individual intimations of tax deducted at source to taxpayers from out of the information available in TIN.
Should this happen they would have two sets of documents in their hands - TDS certificates and the consolidated statement 26AS emanating out of TIN. The Department would like the taxpayers to junk the former if they do not reflect faithfully what has been stated in the statement of tax deducted i.e. 26AS. The ticker seeks to nip this possibility in the bud by calling upon tax deductors to set store by TIN, and not by their own records while issuing the certificates. Shouldn't Parliament step in and assert itself? Does it want to give the quietus to the TDS certificates regime?
A dual regime is always confusing and calls for needless reconciliation. Hence, a single unified regime is desirable. But the mandate for this has to come from the Parliament. While migrating to this regime it must be ensured that taxpayers are not put to trouble which is likely to happen should derelict tax deductors either sit on the tax deducted or are remiss in depositing them on time. Taxpayers should not be made to bear the cross for the shenanigans of the tax deductors or the inefficiency of the banking system or the TIN.
Sunday, July 17, 2011
Wednesday, April 6, 2011
Imprisonment not must for issuer of bounced cheque: SC
Imprisonment is not a must while punishing a person who issues cheques which bounce, the Supreme Court stated in the case, Kaushalya Devi vs Roopkishore. In this case, the drawer of cheques was convicted under the Negotiable Instruments Act. However, he deposited Rs 2 lakh out of Rs 3.5 lakh against the cheques. The magistrate felt that under that circumstance, fine would suffice and imprisonment was not necessary. He imposed a fine of Rs 4 lakh and allowed time to pay the balance. This order was challenged by the payee, but the Supreme Court agreed with the magistrate that jail sentence was not called for in this particular case.
Thursday, March 31, 2011
Presentation by Dealer fraternity on changing scenarios of operations, marketing, technology in use at our Retail Outlets.
I am herewith reproducing the docuument sent by our dealer Mr. Rajiv, M/s Amar Jyothi Fuels, Hyderabad, who presented the same at Dealer Convention of SEC DO, 2011 regarding the Presentation by Dealer fraternity on changing scenarios of operations, marketing, technology in use at our Retail Outlets.
Presentation by Dealer fraternity on changing scenarios of operations, marketing, technology in use at our Retail Outlets.
28th March 2011
In 2000:
Dealer had very less paper work and used to spend very less time behind the desk.
Dealer had lot of time to interact with the customers.
Dealer had lot of time for marketing.
Now in 2011:
Dealer has lots of paper work and spends good amount of time behind the desk.
Dealer has very less time to interact with customers.
Dealer has very less time to do marketing.
In 2000:
Dealer had time to keep an eye on the day to day activities (House Keeping, sales men, customer grievances etc…) at the RO.
Dealer was happy with the profits with Limited Retail Outlets to compete.
Dealer had good profit in Lube Sales as the prices were low with good margin.
Now in 2011:
Dealer has no time left because manual data entry is required in spite of honeywell automation and also other activities like TT retention samples, etc…) apart from following all the old procedures.
Dealer started looking for new businesses for additional income to survive and even to compete with the New ROs which are mushrooming like weeds.
Profits vaporized from Lube Sales.
In 2000:
Maintenance of Approach Road, Driveway, Dispensing units was taken up on time by the company as the number of RO’s were less.
Adequate dispensing units for giving quick and quality service were provided.
With less investment and good financial help from the company like Cheque/DOD/5-day revolving credit facilities we could extend credit to the customers to attain good volumes.
Now in 2011:
Delay in Maintenance of Approach Road, Driveway, Dispensing units, etc…
With shortage of dispensing units and non availability of spares we are in no position to give good customer service.
As the fuel prices have gone up by more than 2 folds the investment increased and by withdrawing Cheque/DOD/5-day revolving credit facilities, we are in no position to extend the same to the customers due to which we are loosing volumes to other oil companies.
Result :
No personal interaction with the customers.
No new business developments.
Customer feels ignored.
No control over the staff.
Ultimately loss of sales.
Solution :
Streamlining the paper work with less redundancy.
Effective support and timely response from company officials.
Use of professional help for handling complaints and maintenance of RO.
More remuneration for hiring skilled & educated staff for providing better service.
Cheque / eDOD / 5-day revolving credit facility should be extended to performing dealers even in small towns and villages to improve the volumes.
2-Stroke engines replaced by 4-Stroke engines.
Regular shortage of some grades like KoolPlus, Brake Fluid, Futura, etc. is driving the customer away.
SSA & SSI entering the retail market and poaching our customers.
Diminishing of road-side workshops and authorised service centers not allowing oil purchased from us by threatening loss of warranty.
Good quality lubes and fine engines have extended lube changing cycle.
Proper availability of small packs of all the grades should be ensured.
Improvement is needed in sealing and packing of the product to gain customer confidence.
Strict action should be taken against SSA / SSI if they are making a direct sale to the end-user.
If maintenance of DU’s is not done periodically we noticed irregularities in product delivery, which in turn is creating a negative picture of the dealers.
As the facility to deliver the product in rupees was introduced to avoid the inconvenience of providing proper change to the customer the dealer is getting a dent in his profits as some of the DU manufactures have a display of only 2 decimals for quantity calculation due to which excess product is delivered when product is given in rupees.
The new policy for Xtracare has a criteria where the reimbursement is based on MS sales irrespective of the area (Urban / Rural). Where as the old policy was based on location of the RO and even the reimbursement and man power requirement were accordingly. But as per the new policy the man power requirement for all the RO’s is the same due to which the reimbursement given to a low MS selling outlet is not sufficient for maintenance. We kindly request you to rewrite the policy to suit every Xtracare RO taking into consideration all product sales as a rural RO has low MS and high HSD sales.
Most of the dealers have observed variation beyond permissible limits in underground tank stock when the product volume is low or vise versa. We request the company to take necessary action to avoid penal actions against the dealer.
We dealers have even observed no change in volume (dip levels) of the product in the TT even though there are high variations in the temperature from loading point to the receiving point.
We have been receiving product with different densities in a short span of days and because of this there are huge variations in density in our underground tank beyond permissible limits. We request you to attend to this issue and also provide a solution.
Cantonment and Tool charges are not reimbursed to the dealers for unknown reasons.
Most of the dealers have not received their security deposits given for previous TT contract.
Without proper guidelines, modifications to the TT at the time of calibration, non approved color scheme, branding, etc., which attracts additional expenditure should not be imposed.
The security deposit collected for reconstitution should be reduced and also waiver of security deposit should be given if it is done within the family.
Regular updates should be done in reconstitution policies as per legal requirements to avoid unnecessary delays.
In spite of having a company helpline to register dealer complaints no issue is attended in a proper timeline. We request you to have enhanced dealer friendly complaint logging facility to have escalation levels as well as web / tele enabled tracking system.
Presentation by Dealer fraternity on changing scenarios of operations, marketing, technology in use at our Retail Outlets.
28th March 2011
In 2000:
Dealer had very less paper work and used to spend very less time behind the desk.
Dealer had lot of time to interact with the customers.
Dealer had lot of time for marketing.
Now in 2011:
Dealer has lots of paper work and spends good amount of time behind the desk.
Dealer has very less time to interact with customers.
Dealer has very less time to do marketing.
In 2000:
Dealer had time to keep an eye on the day to day activities (House Keeping, sales men, customer grievances etc…) at the RO.
Dealer was happy with the profits with Limited Retail Outlets to compete.
Dealer had good profit in Lube Sales as the prices were low with good margin.
Now in 2011:
Dealer has no time left because manual data entry is required in spite of honeywell automation and also other activities like TT retention samples, etc…) apart from following all the old procedures.
Dealer started looking for new businesses for additional income to survive and even to compete with the New ROs which are mushrooming like weeds.
Profits vaporized from Lube Sales.
In 2000:
Maintenance of Approach Road, Driveway, Dispensing units was taken up on time by the company as the number of RO’s were less.
Adequate dispensing units for giving quick and quality service were provided.
With less investment and good financial help from the company like Cheque/DOD/5-day revolving credit facilities we could extend credit to the customers to attain good volumes.
Now in 2011:
Delay in Maintenance of Approach Road, Driveway, Dispensing units, etc…
With shortage of dispensing units and non availability of spares we are in no position to give good customer service.
As the fuel prices have gone up by more than 2 folds the investment increased and by withdrawing Cheque/DOD/5-day revolving credit facilities, we are in no position to extend the same to the customers due to which we are loosing volumes to other oil companies.
Result :
No personal interaction with the customers.
No new business developments.
Customer feels ignored.
No control over the staff.
Ultimately loss of sales.
Solution :
Streamlining the paper work with less redundancy.
Effective support and timely response from company officials.
Use of professional help for handling complaints and maintenance of RO.
More remuneration for hiring skilled & educated staff for providing better service.
Cheque / eDOD / 5-day revolving credit facility should be extended to performing dealers even in small towns and villages to improve the volumes.
2-Stroke engines replaced by 4-Stroke engines.
Regular shortage of some grades like KoolPlus, Brake Fluid, Futura, etc. is driving the customer away.
SSA & SSI entering the retail market and poaching our customers.
Diminishing of road-side workshops and authorised service centers not allowing oil purchased from us by threatening loss of warranty.
Good quality lubes and fine engines have extended lube changing cycle.
Proper availability of small packs of all the grades should be ensured.
Improvement is needed in sealing and packing of the product to gain customer confidence.
Strict action should be taken against SSA / SSI if they are making a direct sale to the end-user.
If maintenance of DU’s is not done periodically we noticed irregularities in product delivery, which in turn is creating a negative picture of the dealers.
As the facility to deliver the product in rupees was introduced to avoid the inconvenience of providing proper change to the customer the dealer is getting a dent in his profits as some of the DU manufactures have a display of only 2 decimals for quantity calculation due to which excess product is delivered when product is given in rupees.
The new policy for Xtracare has a criteria where the reimbursement is based on MS sales irrespective of the area (Urban / Rural). Where as the old policy was based on location of the RO and even the reimbursement and man power requirement were accordingly. But as per the new policy the man power requirement for all the RO’s is the same due to which the reimbursement given to a low MS selling outlet is not sufficient for maintenance. We kindly request you to rewrite the policy to suit every Xtracare RO taking into consideration all product sales as a rural RO has low MS and high HSD sales.
Most of the dealers have observed variation beyond permissible limits in underground tank stock when the product volume is low or vise versa. We request the company to take necessary action to avoid penal actions against the dealer.
We dealers have even observed no change in volume (dip levels) of the product in the TT even though there are high variations in the temperature from loading point to the receiving point.
We have been receiving product with different densities in a short span of days and because of this there are huge variations in density in our underground tank beyond permissible limits. We request you to attend to this issue and also provide a solution.
Cantonment and Tool charges are not reimbursed to the dealers for unknown reasons.
Most of the dealers have not received their security deposits given for previous TT contract.
Without proper guidelines, modifications to the TT at the time of calibration, non approved color scheme, branding, etc., which attracts additional expenditure should not be imposed.
The security deposit collected for reconstitution should be reduced and also waiver of security deposit should be given if it is done within the family.
Regular updates should be done in reconstitution policies as per legal requirements to avoid unnecessary delays.
In spite of having a company helpline to register dealer complaints no issue is attended in a proper timeline. We request you to have enhanced dealer friendly complaint logging facility to have escalation levels as well as web / tele enabled tracking system.
Thursday, March 10, 2011
Service Tax on Goods Transport OperatorsUps and Down
INTRODUCTION:-
“Though no one can go back and make a brand new start, anyone can start from now and make a brand new ending….” But ending is not the fate of every start, some issues only have start and no end seems even after passing of no. of years – It is surely applicable on the service tax on goods transport operator services.
Service tax on transportation had a bad innings right from its first levy. It has gone through the ups and downs since it was levied for the first time on 16.11.1997. The levy was challenged and was withdrawn on 2.6.1998 just after few months. Though government did retrospective amendments twice in this category of service, yet the issue does not seem to be settled till date. The levy of service tax for the mid-period of 16.11.97 to 2.6.98 is still in limelight by one reason or another. Here is the anatomy of the issue that has been on fire since past so many years.
HISTORY:-
The history of service tax on transportation begins with Finance Act, 1997 which proposed the levy under the category of “Goods Transport Operator”. Notification no. 41/97, dated 5-11-1997 was issued in this regard which was effective from 16.11.1997. Clarifications regarding the levy were issued vide Circular F. No. B 43/11/97-TRU, dated 6-11-1997. But it was a bleak tax right from the beginning.
WHAT WAS THE UN-DIRECTIONAL PATH IN SERVICE TAX LEVY?
Notification No. 42/97-ST dated 5.11.1997 was issued which inserted Rule 2(1)(d)(xvii) of the Service Tax Rules, 1944 whereby the customer of the goods transport operator was made responsible for collecting the service tax. In other words, the liability to pay the service tax was shifted to the customer, i.e. the person who hires the service of transporter. This was unconventional method of taxation which was initiated by the government; as such it faced a lot of opposition from public. The transporters went on country-wide strike against this levy. Various petitions were filed for reversing the levy. The issue was settled (as it seemed then) by the hon’ble Supreme Court in the case of Laghu Udyog Bharti.
JUDGEMENT OF APEX COURT:-
The levy of service tax on goods transport operator's services was set at zilch by the Hon’ble Supreme Court in the case of M/s. Laghu Udyog Bharati V/s Union of India [1999 (112) E.L.T. 365 (S.C.)] who has held that the levy of tax from the receiver was illicit as the same is ultra vires the Finance Act, 1994. In this case, it was held that the levy of service tax on the recipient of the service instead of person providing the service was clearly illegal and unsustainable in law. It was further held that all the refund claims, if filed within time, are required to be finalized within 12 weeks from the date of filing. The amount duly worked out and verified should be effectively refunded to the claimant or the consumer welfare fund, as the case may be, within the period of 12 weeks as per the decision of Supreme Court rendered on July 27, 1998.
WITHDRAWN OF LEVY:-
In view of the aforesaid judgment of the Supreme Court, levy of the service tax on the services provided by the goods transport operator was exempted vide Notification No. 49/98-ST, dated 2.6.1998. As a consequence of this notification, various trade notices were issued which directed the field formations to drop the show cause notices issued under this levy. The recoveries were seized and the service tax already paid was directed to be refunded.
FINANCE ACT 2000:-
Finance Act, 2000 made amendments to the relevant provisions with retrospective effect. Amendment sought to validate levy and collection of service tax for the period between 16-7-1997 to 12-5-2000 in respect of services of goods transport operators. The amendment also sought to deny refund of service tax to users and also for recovery of refund already granted consequent to the judgment of the Supreme Court in Laghu Udyog Bharti. Recovery of refunds already granted was to be done within 30 days from the date when the Finance bill, 2000 received the assent of the President. In the event of non-payment of service tax so refunded by an assessee, the interest @ 24% p.a. was to be charged after the said period of 30 days.
Fresh show cause notices were issued to the appellant on different dates in 2002 demanding service tax from them for the services received from goods transport operators. Show cause notice proposed to invoke extended period of limitation and there was also a proposal for imposition of penalty and demand of interest. It is the case of the appellants that no show cause notice could have been issued to them under Section 73 even after the amendment brought under Finance Act, 2000.
BUDGET, 2003:-
The Government of India has come for a fresh dose of retrospective law with Budget 2003. This budget amended the section 68 retrospectively for making the customer of GTO as the person liable to pay the service tax. A new section 71A was inserted for making customer liable to furnish the service tax return within six months from the date on which the Finance Bill, 2003 received the assent of the President. Rule 7A was inserted according to which return was also to be furnished for the period from 16.11.97 to 2.6.98 within six months from 13.5.2003, failing which, all the consequences like interest and penalty were to be followed.
CONSEQUENCES OF RETROSPECTIVE AMENDMENTS:-
But inspite of all these retrospective amendments, there remained certain errors and the case bended on part of the assessees. The section governing the issue of show cause notice, i.e. section 73 left to be amended. The language of this section still had the language that the show cause notice can be issued if there is default in filing of return under section 70 and whereas the recipient of GTO services were to file the return under section 71A. This lacuna was followed by the no. of judgments. Further, the limitation clause also benefitted the assessees but it couldn’t stop the proceedings initiated by the department.
JUDICIAL PRONOUNCEMENTS:-
In case of L.H. SUGAR FACTORIES LTD. V/s COMMISSIONER OF C. EX., MEERUT-II [2004 (165) E.L.T. 161 (Tri. - Del.)], Tribunal passed the order rejecting the Show Cause Notices issued under section 73 for recovering the allotted refund as well as interest and penalty stating that since Appellant is required to submit the Return under section 71A then SCN cannot be issued u/s 73 as only be issued only the case of assessees who are liable to file return under Section 70.
In case of CCE, Vadodara-II V/S Welspun Gujarat Stahl Rohren Ltd. [200-TIOL-108-CESTAT-AHM], Tribunal held regarding Time Limitation of issuance of SCN relating to filing of Return by the recipients of the said service that the SCN must be issued within one year from the relevant date which was the 14/11/2003 i.e. date of insertion of section 71A in Finance Act through BUDGET 2003. The decision has been made relying upon the decision made in case of Mangalam Cement Ltd. as reported in [2007-TIOL-906-CESTAT-DEL]. From this decision one law point was cleared that SCN can be issued after one or two or three or so on years but should be within one year from new amendment in law itself relating to same matter.
OUTCOMES OF JUDICIAL PRONOUNCEMENTS:-
The decision of L.H. Sugar Factories Ltd was corrected by substituting the section 73. Finance (no. 2) Act, 2004 substituted this section w.e.f. 10.9.2004. After this amendment, the show cause notice can be issued on failure to file the return under section 70 as well as section 71A read with rule 7A of the Service Tax Rules, 1994.
But the conflicting decisions given on the issue of limitation resulted into reference to larger bench. The larger bench decided the reference in favour of the Revenue. This decision is cited as M/s Agauta Sugar & Chemicals Vs CCE, Noida [2010-TIOL-1185-CESTAT-DEL-LB] wherein it is held that show cause notice demanding the service tax for the period from 16.11.1997 to 1.6.1998 issued in 2004 after the amendment to Section 73 of the Finance Act, 1994 is valid. Thus, the larger bench struck off the expectations of the poor assessees. But this also did not ended the issue. Again a decision came in favour of the assessees during the last quarter of year 2010.
LATEST JUDGEMENT:-
The latest judgement in this sequence has been reported in 2010-TIOL-1208-CESTAT-AHM in case of CCE, VAPI V/S M/s. Mutual Industries Ltd. in which the CESTAT again dismissed the Appeal of Revenue. The view taken by the hon’ble Tribunal was that demand for the period from 16.07.1997 to 15.10.1998 was confirmed on the basis of retrospective amendments to pertinent provisions. In such a case, question of suppression of facts, fraud or collusion does not arise. So, SCN issued after one year but within 5 years is no more sustainable. So, even after the decision of larger bench, the issue is not yet settled.
BEFORE PARTING:-
In spite of all retrospective modifications have been made by the Government of India, they are not able to collect the service tax on “Goods Transport Operator” service for that numinous period between November, 1997 and June, 1998. One question is arising from all the recipients of the said service that why the department is so meticulous about collecting the tax for that tiny period? Will any further alteration of retrospective nature in law solve the matter absolutely? No one knows, but everyone is waiting to have this issue dumped forever.
COURTESY: SIMPLE TAX INDIA
“Though no one can go back and make a brand new start, anyone can start from now and make a brand new ending….” But ending is not the fate of every start, some issues only have start and no end seems even after passing of no. of years – It is surely applicable on the service tax on goods transport operator services.
Service tax on transportation had a bad innings right from its first levy. It has gone through the ups and downs since it was levied for the first time on 16.11.1997. The levy was challenged and was withdrawn on 2.6.1998 just after few months. Though government did retrospective amendments twice in this category of service, yet the issue does not seem to be settled till date. The levy of service tax for the mid-period of 16.11.97 to 2.6.98 is still in limelight by one reason or another. Here is the anatomy of the issue that has been on fire since past so many years.
HISTORY:-
The history of service tax on transportation begins with Finance Act, 1997 which proposed the levy under the category of “Goods Transport Operator”. Notification no. 41/97, dated 5-11-1997 was issued in this regard which was effective from 16.11.1997. Clarifications regarding the levy were issued vide Circular F. No. B 43/11/97-TRU, dated 6-11-1997. But it was a bleak tax right from the beginning.
WHAT WAS THE UN-DIRECTIONAL PATH IN SERVICE TAX LEVY?
Notification No. 42/97-ST dated 5.11.1997 was issued which inserted Rule 2(1)(d)(xvii) of the Service Tax Rules, 1944 whereby the customer of the goods transport operator was made responsible for collecting the service tax. In other words, the liability to pay the service tax was shifted to the customer, i.e. the person who hires the service of transporter. This was unconventional method of taxation which was initiated by the government; as such it faced a lot of opposition from public. The transporters went on country-wide strike against this levy. Various petitions were filed for reversing the levy. The issue was settled (as it seemed then) by the hon’ble Supreme Court in the case of Laghu Udyog Bharti.
JUDGEMENT OF APEX COURT:-
The levy of service tax on goods transport operator's services was set at zilch by the Hon’ble Supreme Court in the case of M/s. Laghu Udyog Bharati V/s Union of India [1999 (112) E.L.T. 365 (S.C.)] who has held that the levy of tax from the receiver was illicit as the same is ultra vires the Finance Act, 1994. In this case, it was held that the levy of service tax on the recipient of the service instead of person providing the service was clearly illegal and unsustainable in law. It was further held that all the refund claims, if filed within time, are required to be finalized within 12 weeks from the date of filing. The amount duly worked out and verified should be effectively refunded to the claimant or the consumer welfare fund, as the case may be, within the period of 12 weeks as per the decision of Supreme Court rendered on July 27, 1998.
WITHDRAWN OF LEVY:-
In view of the aforesaid judgment of the Supreme Court, levy of the service tax on the services provided by the goods transport operator was exempted vide Notification No. 49/98-ST, dated 2.6.1998. As a consequence of this notification, various trade notices were issued which directed the field formations to drop the show cause notices issued under this levy. The recoveries were seized and the service tax already paid was directed to be refunded.
FINANCE ACT 2000:-
Finance Act, 2000 made amendments to the relevant provisions with retrospective effect. Amendment sought to validate levy and collection of service tax for the period between 16-7-1997 to 12-5-2000 in respect of services of goods transport operators. The amendment also sought to deny refund of service tax to users and also for recovery of refund already granted consequent to the judgment of the Supreme Court in Laghu Udyog Bharti. Recovery of refunds already granted was to be done within 30 days from the date when the Finance bill, 2000 received the assent of the President. In the event of non-payment of service tax so refunded by an assessee, the interest @ 24% p.a. was to be charged after the said period of 30 days.
Fresh show cause notices were issued to the appellant on different dates in 2002 demanding service tax from them for the services received from goods transport operators. Show cause notice proposed to invoke extended period of limitation and there was also a proposal for imposition of penalty and demand of interest. It is the case of the appellants that no show cause notice could have been issued to them under Section 73 even after the amendment brought under Finance Act, 2000.
BUDGET, 2003:-
The Government of India has come for a fresh dose of retrospective law with Budget 2003. This budget amended the section 68 retrospectively for making the customer of GTO as the person liable to pay the service tax. A new section 71A was inserted for making customer liable to furnish the service tax return within six months from the date on which the Finance Bill, 2003 received the assent of the President. Rule 7A was inserted according to which return was also to be furnished for the period from 16.11.97 to 2.6.98 within six months from 13.5.2003, failing which, all the consequences like interest and penalty were to be followed.
CONSEQUENCES OF RETROSPECTIVE AMENDMENTS:-
But inspite of all these retrospective amendments, there remained certain errors and the case bended on part of the assessees. The section governing the issue of show cause notice, i.e. section 73 left to be amended. The language of this section still had the language that the show cause notice can be issued if there is default in filing of return under section 70 and whereas the recipient of GTO services were to file the return under section 71A. This lacuna was followed by the no. of judgments. Further, the limitation clause also benefitted the assessees but it couldn’t stop the proceedings initiated by the department.
JUDICIAL PRONOUNCEMENTS:-
In case of L.H. SUGAR FACTORIES LTD. V/s COMMISSIONER OF C. EX., MEERUT-II [2004 (165) E.L.T. 161 (Tri. - Del.)], Tribunal passed the order rejecting the Show Cause Notices issued under section 73 for recovering the allotted refund as well as interest and penalty stating that since Appellant is required to submit the Return under section 71A then SCN cannot be issued u/s 73 as only be issued only the case of assessees who are liable to file return under Section 70.
In case of CCE, Vadodara-II V/S Welspun Gujarat Stahl Rohren Ltd. [200-TIOL-108-CESTAT-AHM], Tribunal held regarding Time Limitation of issuance of SCN relating to filing of Return by the recipients of the said service that the SCN must be issued within one year from the relevant date which was the 14/11/2003 i.e. date of insertion of section 71A in Finance Act through BUDGET 2003. The decision has been made relying upon the decision made in case of Mangalam Cement Ltd. as reported in [2007-TIOL-906-CESTAT-DEL]. From this decision one law point was cleared that SCN can be issued after one or two or three or so on years but should be within one year from new amendment in law itself relating to same matter.
OUTCOMES OF JUDICIAL PRONOUNCEMENTS:-
The decision of L.H. Sugar Factories Ltd was corrected by substituting the section 73. Finance (no. 2) Act, 2004 substituted this section w.e.f. 10.9.2004. After this amendment, the show cause notice can be issued on failure to file the return under section 70 as well as section 71A read with rule 7A of the Service Tax Rules, 1994.
But the conflicting decisions given on the issue of limitation resulted into reference to larger bench. The larger bench decided the reference in favour of the Revenue. This decision is cited as M/s Agauta Sugar & Chemicals Vs CCE, Noida [2010-TIOL-1185-CESTAT-DEL-LB] wherein it is held that show cause notice demanding the service tax for the period from 16.11.1997 to 1.6.1998 issued in 2004 after the amendment to Section 73 of the Finance Act, 1994 is valid. Thus, the larger bench struck off the expectations of the poor assessees. But this also did not ended the issue. Again a decision came in favour of the assessees during the last quarter of year 2010.
LATEST JUDGEMENT:-
The latest judgement in this sequence has been reported in 2010-TIOL-1208-CESTAT-AHM in case of CCE, VAPI V/S M/s. Mutual Industries Ltd. in which the CESTAT again dismissed the Appeal of Revenue. The view taken by the hon’ble Tribunal was that demand for the period from 16.07.1997 to 15.10.1998 was confirmed on the basis of retrospective amendments to pertinent provisions. In such a case, question of suppression of facts, fraud or collusion does not arise. So, SCN issued after one year but within 5 years is no more sustainable. So, even after the decision of larger bench, the issue is not yet settled.
BEFORE PARTING:-
In spite of all retrospective modifications have been made by the Government of India, they are not able to collect the service tax on “Goods Transport Operator” service for that numinous period between November, 1997 and June, 1998. One question is arising from all the recipients of the said service that why the department is so meticulous about collecting the tax for that tiny period? Will any further alteration of retrospective nature in law solve the matter absolutely? No one knows, but everyone is waiting to have this issue dumped forever.
COURTESY: SIMPLE TAX INDIA
Wednesday, March 9, 2011
AP Minimum Wages Act for FY 2010-2011
Dear All,
Please download the AP minimum Wages act for the Petrol Pumps & TT Crew for the Financial Year 2010 - 2011. Copy and Paste the bottom link in the new tab for downloading the document!!!!
https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0B1POSkBAOcgcMmE1YjE2NTktNmJhNS00YTk5LTg2ZTEtZDdmZDZlYmY5YzE0&hl=en&authkey=CI6ojOcH
Source: Office of the Commissioner of Labour, Government of Andhra Pradesh
Disclaimer : Minimum Wages have been provided by the Labour Departments of respective states. All efforts have been made to update the minimum wage data on a regular basis. However, there might be unforeseen errors.
Please download the AP minimum Wages act for the Petrol Pumps & TT Crew for the Financial Year 2010 - 2011. Copy and Paste the bottom link in the new tab for downloading the document!!!!
https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0B1POSkBAOcgcMmE1YjE2NTktNmJhNS00YTk5LTg2ZTEtZDdmZDZlYmY5YzE0&hl=en&authkey=CI6ojOcH
Source: Office of the Commissioner of Labour, Government of Andhra Pradesh
Disclaimer : Minimum Wages have been provided by the Labour Departments of respective states. All efforts have been made to update the minimum wage data on a regular basis. However, there might be unforeseen errors.
Thursday, March 3, 2011
Tuesday, March 1, 2011
Union Budget 2011 Highlights on Tax
Union Budget 2011 Highlights on Tax
New category of senior citizens above 80 years to get higher IT deduction limit of Rs. 5 lakh from this year
Investment in fertiliser plants and machinery to be treated as infrastructure investment
IT exemption for taxpayers raised from Rs. 1.6 lakh to Rs. 1.8 lakh. Tax relief is about Rs. 2,000 across-the-board.
Govt to allow issue of Rs. 30,000 crore worth of tax-free bonds by infrastructure companies in 2011-12
Tax deduction for investment in infrastructure bonds of Rs. 20,000 extended for one more year Loss on direct tax reliefs at Rs. 11,500 crore; gain on indirect tax changes at Rs. 11,300 crore
Interest subvention on home loans up to Rs. 15 lakh. Mortgage risk guarantee corporation to insure loans to the poor
Cement excise duties will be shifted to valorem basis from specific duty now
Foreign individual investors allowed to invest directly in mutual funds subject to KYC requirements
Government considering extension of nutrient-based subsidy for urea, the largest chunk of fertilisers used in agriculture
Public sector disinvestment target for 2011-12 is raised to Rs. 40,000 crore
Corporate tax surcharge reduced from 7.5% to 5%. Minimum alternate tax rate up from 18% to 18.5%.
Fiscal deficit for 2010-11 seen at 5.1% against 5.5% budgeted; deficit for 2011-12 projected at 4.6% of GDP
FM says no need to remove stimulus package at this stage, but will withdraw excise exemptions
Senior citizens to get higher IT deduction limit of Rs. 2.5 lakh. Entitlement age reduced to 60 from current 65
Priority sector home loans limit raised to Rs. 25 lakh from Rs. 20 lakh.
Centre’s net borrowing figure for 2011-12 fixed at Rs. 3,43,000 crore; fiscal deficit figure at Rs. 4,12,000 crore
Government to introduce direct cash payments for those entitled to subsidies in kerosene, cooking gas and fertiliser by March, 2012.
Excise exemptions withdrawn on 130 items; to pay minimum excise of 1% from next year
Service tax levels and excise stay at 10%; Peak rate of customs duty remains unchanged
National mission for electric and hybrid vehicles to be set up to create environment-friendly automobiles
New category of senior citizens above 80 years to get higher IT deduction limit of Rs. 5 lakh from this year
Investment in fertiliser plants and machinery to be treated as infrastructure investment
IT exemption for taxpayers raised from Rs. 1.6 lakh to Rs. 1.8 lakh. Tax relief is about Rs. 2,000 across-the-board.
Govt to allow issue of Rs. 30,000 crore worth of tax-free bonds by infrastructure companies in 2011-12
Tax deduction for investment in infrastructure bonds of Rs. 20,000 extended for one more year Loss on direct tax reliefs at Rs. 11,500 crore; gain on indirect tax changes at Rs. 11,300 crore
Interest subvention on home loans up to Rs. 15 lakh. Mortgage risk guarantee corporation to insure loans to the poor
Cement excise duties will be shifted to valorem basis from specific duty now
Foreign individual investors allowed to invest directly in mutual funds subject to KYC requirements
Government considering extension of nutrient-based subsidy for urea, the largest chunk of fertilisers used in agriculture
Public sector disinvestment target for 2011-12 is raised to Rs. 40,000 crore
Corporate tax surcharge reduced from 7.5% to 5%. Minimum alternate tax rate up from 18% to 18.5%.
Fiscal deficit for 2010-11 seen at 5.1% against 5.5% budgeted; deficit for 2011-12 projected at 4.6% of GDP
FM says no need to remove stimulus package at this stage, but will withdraw excise exemptions
Senior citizens to get higher IT deduction limit of Rs. 2.5 lakh. Entitlement age reduced to 60 from current 65
Priority sector home loans limit raised to Rs. 25 lakh from Rs. 20 lakh.
Centre’s net borrowing figure for 2011-12 fixed at Rs. 3,43,000 crore; fiscal deficit figure at Rs. 4,12,000 crore
Government to introduce direct cash payments for those entitled to subsidies in kerosene, cooking gas and fertiliser by March, 2012.
Excise exemptions withdrawn on 130 items; to pay minimum excise of 1% from next year
Service tax levels and excise stay at 10%; Peak rate of customs duty remains unchanged
National mission for electric and hybrid vehicles to be set up to create environment-friendly automobiles
Union Budget 2011 Highlights on Tax
Union Budget 2011 Highlights on Tax
New category of senior citizens above 80 years to get higher IT deduction limit of Rs. 5 lakh from this year
Investment in fertiliser plants and machinery to be treated as infrastructure investment
IT exemption for taxpayers raised from Rs. 1.6 lakh to Rs. 1.8 lakh. Tax relief is about Rs. 2,000 across-the-board.
Govt to allow issue of Rs. 30,000 crore worth of tax-free bonds by infrastructure companies in 2011-12
Tax deduction for investment in infrastructure bonds of Rs. 20,000 extended for one more year Loss on direct tax reliefs at Rs. 11,500 crore; gain on indirect tax changes at Rs. 11,300 crore
Interest subvention on home loans up to Rs. 15 lakh. Mortgage risk guarantee corporation to insure loans to the poor
Cement excise duties will be shifted to valorem basis from specific duty now
Foreign individual investors allowed to invest directly in mutual funds subject to KYC requirements
Government considering extension of nutrient-based subsidy for urea, the largest chunk of fertilisers used in agriculture
Public sector disinvestment target for 2011-12 is raised to Rs. 40,000 crore
Corporate tax surcharge reduced from 7.5% to 5%. Minimum alternate tax rate up from 18% to 18.5%.
Fiscal deficit for 2010-11 seen at 5.1% against 5.5% budgeted; deficit for 2011-12 projected at 4.6% of GDP
FM says no need to remove stimulus package at this stage, but will withdraw excise exemptions
Senior citizens to get higher IT deduction limit of Rs. 2.5 lakh. Entitlement age reduced to 60 from current 65
Priority sector home loans limit raised to Rs. 25 lakh from Rs. 20 lakh.
Centre’s net borrowing figure for 2011-12 fixed at Rs. 3,43,000 crore; fiscal deficit figure at Rs. 4,12,000 crore
Government to introduce direct cash payments for those entitled to subsidies in kerosene, cooking gas and fertiliser by March, 2012.
Excise exemptions withdrawn on 130 items; to pay minimum excise of 1% from next year
Service tax levels and excise stay at 10%; Peak rate of customs duty remains unchanged
National mission for electric and hybrid vehicles to be set up to create environment-friendly automobiles
New category of senior citizens above 80 years to get higher IT deduction limit of Rs. 5 lakh from this year
Investment in fertiliser plants and machinery to be treated as infrastructure investment
IT exemption for taxpayers raised from Rs. 1.6 lakh to Rs. 1.8 lakh. Tax relief is about Rs. 2,000 across-the-board.
Govt to allow issue of Rs. 30,000 crore worth of tax-free bonds by infrastructure companies in 2011-12
Tax deduction for investment in infrastructure bonds of Rs. 20,000 extended for one more year Loss on direct tax reliefs at Rs. 11,500 crore; gain on indirect tax changes at Rs. 11,300 crore
Interest subvention on home loans up to Rs. 15 lakh. Mortgage risk guarantee corporation to insure loans to the poor
Cement excise duties will be shifted to valorem basis from specific duty now
Foreign individual investors allowed to invest directly in mutual funds subject to KYC requirements
Government considering extension of nutrient-based subsidy for urea, the largest chunk of fertilisers used in agriculture
Public sector disinvestment target for 2011-12 is raised to Rs. 40,000 crore
Corporate tax surcharge reduced from 7.5% to 5%. Minimum alternate tax rate up from 18% to 18.5%.
Fiscal deficit for 2010-11 seen at 5.1% against 5.5% budgeted; deficit for 2011-12 projected at 4.6% of GDP
FM says no need to remove stimulus package at this stage, but will withdraw excise exemptions
Senior citizens to get higher IT deduction limit of Rs. 2.5 lakh. Entitlement age reduced to 60 from current 65
Priority sector home loans limit raised to Rs. 25 lakh from Rs. 20 lakh.
Centre’s net borrowing figure for 2011-12 fixed at Rs. 3,43,000 crore; fiscal deficit figure at Rs. 4,12,000 crore
Government to introduce direct cash payments for those entitled to subsidies in kerosene, cooking gas and fertiliser by March, 2012.
Excise exemptions withdrawn on 130 items; to pay minimum excise of 1% from next year
Service tax levels and excise stay at 10%; Peak rate of customs duty remains unchanged
National mission for electric and hybrid vehicles to be set up to create environment-friendly automobiles
Direct cash subsidy on fuel, fertilizers by 2012
Seeking to address the issue of subsidies not reaching the targeted groups, Finance Minister Pranab Mukherjee on Monday proposed to provide a direct cash subsidy on fuel and fertilizers to the poor from March, 2012.
“To ensure greater cost efficiency and better delivery of kerosene and fertilizers, the government will move toward direct transfer of cash subsidy for people below poverty line (BPL) in a phased manner,” Mr. Mukherjee said during the presentation of the budget. The system would be in place by March, 2012, he added.
A task force headed by the former chief of Infosys, Nandan Nilekani, who is now Unique Identification Authority of India (UIDAI) Chairman, is working out the modalities for the proposed system, he said. It comprises Secretaries from the Ministries of Finance, Chemicals and Fertilizers, Agriculture, Food, Petroleum and Rural Development.
“The interim report of this task force is expected by June this year,” he remarked.
At present, the government provides kerosene at subsidised rates to BPL families through the Public Distribution System (PDS). Furthermore, LPG is provided at a subsidised rate to households. As regards fertilizers, the government provides subsidy to companies so that farm inputs, which include urea and imported fertilizers, can be provided to farmers at cheaper rates.
The need to set up the task force arose in view of overwhelming evidence that the current policy is resulting in waste, leakage, adulteration and inefficiency. Therefore, it is imperative that the system of delivering the subsidised kerosene be reformed urgently, the government said.
Besides designing an IT framework, the task force will align the systems with the issuance of the UID numbers and suggest changes in the administration and supply chain management. The recommendations of the task force will be implemented on a pilot basis by the Ministries concerned and the final report will include the results of such projects.
A new policy on providing subsidies on fertilizers on the basis of their nutrient composition could soon be extended to urea, one of the most widely used fertilizers, Mr. Mukherjee said. “Nutrient-based fertilizer policy for urea is under consideration.” The nutrient-based subsidy (NBS) regime is expected to promote balanced fertilization and consequently increase agriculture productivity in the country through higher usage of secondary and micro-nutrients.
“To ensure greater cost efficiency and better delivery of kerosene and fertilizers, the government will move toward direct transfer of cash subsidy for people below poverty line (BPL) in a phased manner,” Mr. Mukherjee said during the presentation of the budget. The system would be in place by March, 2012, he added.
A task force headed by the former chief of Infosys, Nandan Nilekani, who is now Unique Identification Authority of India (UIDAI) Chairman, is working out the modalities for the proposed system, he said. It comprises Secretaries from the Ministries of Finance, Chemicals and Fertilizers, Agriculture, Food, Petroleum and Rural Development.
“The interim report of this task force is expected by June this year,” he remarked.
At present, the government provides kerosene at subsidised rates to BPL families through the Public Distribution System (PDS). Furthermore, LPG is provided at a subsidised rate to households. As regards fertilizers, the government provides subsidy to companies so that farm inputs, which include urea and imported fertilizers, can be provided to farmers at cheaper rates.
The need to set up the task force arose in view of overwhelming evidence that the current policy is resulting in waste, leakage, adulteration and inefficiency. Therefore, it is imperative that the system of delivering the subsidised kerosene be reformed urgently, the government said.
Besides designing an IT framework, the task force will align the systems with the issuance of the UID numbers and suggest changes in the administration and supply chain management. The recommendations of the task force will be implemented on a pilot basis by the Ministries concerned and the final report will include the results of such projects.
A new policy on providing subsidies on fertilizers on the basis of their nutrient composition could soon be extended to urea, one of the most widely used fertilizers, Mr. Mukherjee said. “Nutrient-based fertilizer policy for urea is under consideration.” The nutrient-based subsidy (NBS) regime is expected to promote balanced fertilization and consequently increase agriculture productivity in the country through higher usage of secondary and micro-nutrients.
Monday, February 28, 2011
Budget 2011: Will petrol cost more?
Petrol and diesel prices may increase. Finance Minister Pranab Mukherjee has not reduced the customs and excise duty to combat the world prices of global crude oil – they have touched a two-year high of $110 per barrel.
In his budget, Mr Mukherjee has left the customs duty on crude oil unchanged at 5 per cent. The duty on petrol and diesel remains 7.5 per cent. Excise duty on petrol will remain at Rs. 14.35 a litre and diesel at Rs. 4.60 per litre.
The Finance Minister did not refer in his speech to rising crude oil prices.
Petrol prices were deregulated last June. The state-owned IOC, BPCL and HPCL are currently losing about Rs. 2.25 a litre on petrol.
Oil firms were waiting to see if the Finance Minister would reduce customs and excise duties before deciding on whether they should increase their prices.
Oil Minister Jaipal Reddy had last week stated he would discuss a possible hike in petrol prices with an Empowered Group of Ministers (EGoM) headed by Mukherjee after the Budget.
The timing of the hike remains to be seen as the government may be jittery of raising prices when Parliament is in session.
At current prices, oil firms are projected to lose Rs. 76,559 crore in the current fiscal, half of which is meant to be compensated by the government.
In his budget, Mr Mukherjee has left the customs duty on crude oil unchanged at 5 per cent. The duty on petrol and diesel remains 7.5 per cent. Excise duty on petrol will remain at Rs. 14.35 a litre and diesel at Rs. 4.60 per litre.
The Finance Minister did not refer in his speech to rising crude oil prices.
Petrol prices were deregulated last June. The state-owned IOC, BPCL and HPCL are currently losing about Rs. 2.25 a litre on petrol.
Oil firms were waiting to see if the Finance Minister would reduce customs and excise duties before deciding on whether they should increase their prices.
Oil Minister Jaipal Reddy had last week stated he would discuss a possible hike in petrol prices with an Empowered Group of Ministers (EGoM) headed by Mukherjee after the Budget.
The timing of the hike remains to be seen as the government may be jittery of raising prices when Parliament is in session.
At current prices, oil firms are projected to lose Rs. 76,559 crore in the current fiscal, half of which is meant to be compensated by the government.
Tuesday, February 1, 2011
Oil hovers near $92 as traders eye Egypt protests
Oil prices hovered near $92 a barrel on Tuesday in Asia as a chaotic power struggle in Egypt threatened the key crude Suez Canal choke point.
Benchmark crude for March delivery was down 24 cents at $91.95 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $2.85, or 3.2 percent, to settle at $92.19 on Monday.
Opposition leaders are planning a massive street protest in Cairo on Tuesday in a bid to oust 82—year—old President Hosni Mubarak as an uprising against his 29—year rule begins its second week. Egypt’s military said Monday it would not use force on marchers and recognized “the legitimacy of the people’s demands.”
Oil has jumped about 8 percent in the last two trading sessions on fears that chaos in Egypt could disrupt the 2 million barrels of crude per day that pass through the Suez Canal and an adjacent pipeline. So far, the Suez remains open, and shipping has not been interrupted.
“The concern that the popular uprising in Egypt will impact either of these pieces of critical infrastructure has applied pressure to the price of crude,” said Richard D. Soultanian of NUS Consulting Group.
Investors are also worried violent street protests --which toppled Tunisian President Ben Ali last month {hbox}” could spread to other Middle Eastern countries.
“The force and duration of this market propellant will depend upon the shape and form of the resolution of the Egyptian uprising and whether this wave of public discontent ends with Egypt or continues to spread to neighboring countries,” Soultanian said.
In other Nymex trading in February contracts, heating oil fell 1.4 cent to $2.73 a gallon and gasoline slid 0.9 cent to $2.49 a gallon. Natural gas futures for March delivery were down 1.1 cents at $4.40 per 1,000 cubic feet.
In London, Brent crude was down 61 cents at $100.40 a barrel ICE Futures exchange.
Benchmark crude for March delivery was down 24 cents at $91.95 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $2.85, or 3.2 percent, to settle at $92.19 on Monday.
Opposition leaders are planning a massive street protest in Cairo on Tuesday in a bid to oust 82—year—old President Hosni Mubarak as an uprising against his 29—year rule begins its second week. Egypt’s military said Monday it would not use force on marchers and recognized “the legitimacy of the people’s demands.”
Oil has jumped about 8 percent in the last two trading sessions on fears that chaos in Egypt could disrupt the 2 million barrels of crude per day that pass through the Suez Canal and an adjacent pipeline. So far, the Suez remains open, and shipping has not been interrupted.
“The concern that the popular uprising in Egypt will impact either of these pieces of critical infrastructure has applied pressure to the price of crude,” said Richard D. Soultanian of NUS Consulting Group.
Investors are also worried violent street protests --which toppled Tunisian President Ben Ali last month {hbox}” could spread to other Middle Eastern countries.
“The force and duration of this market propellant will depend upon the shape and form of the resolution of the Egyptian uprising and whether this wave of public discontent ends with Egypt or continues to spread to neighboring countries,” Soultanian said.
In other Nymex trading in February contracts, heating oil fell 1.4 cent to $2.73 a gallon and gasoline slid 0.9 cent to $2.49 a gallon. Natural gas futures for March delivery were down 1.1 cents at $4.40 per 1,000 cubic feet.
In London, Brent crude was down 61 cents at $100.40 a barrel ICE Futures exchange.
Saturday, January 29, 2011
Chemicals worth Rs. one crore seized during raids in Maharashtra
In the biggest seizure during the ongoing raids against the oil mafia, officials have unearthed a major adulteration racket with the recovery of chemicals worth Rs. one crore from Maharashtra’s Solapur district.
District supply officials seized four tankers along with the chemicals near the temple town of Pandharpur late last night, sources said.
With this seizure, officials have busted a major racket involving adulteration of chemicals transported on the Bangalore—Hyderabad route, the sources said.
Maharashtra government is planning to act collectively against food, sand and oil adulteration mafia in the State in the aftermath of the murder of Additional Collector Yashwant Sonawane.
The government is also planning to rope in the oil companies to curb adulteration of petrol and diesel. Home Minister R. R. Patil has instructed police to seal the petrol pumps which sell adulterated fuel.
On Thursday night, police seized one lakh litres of adulterated petrol in suburban Kurla here.
District supply officials seized four tankers along with the chemicals near the temple town of Pandharpur late last night, sources said.
With this seizure, officials have busted a major racket involving adulteration of chemicals transported on the Bangalore—Hyderabad route, the sources said.
Maharashtra government is planning to act collectively against food, sand and oil adulteration mafia in the State in the aftermath of the murder of Additional Collector Yashwant Sonawane.
The government is also planning to rope in the oil companies to curb adulteration of petrol and diesel. Home Minister R. R. Patil has instructed police to seal the petrol pumps which sell adulterated fuel.
On Thursday night, police seized one lakh litres of adulterated petrol in suburban Kurla here.
Thursday, January 27, 2011
Centre to reintroduce chemical marker to check kerosene diversion
Two days after a local oil mafia in Maharashtra burnt alive an Additional Collector, the government on unveiled steps including re-introduction of a chemical marker in kerosene to reduce opportunities of the subsidised fuel being diverted for adulteration.
“We learnt with shock about the heinous killing of Additional Collector Yashwant Sonawane (who was set on fire by the oil mafia in Manmad on January 24 while attempting to stop diversion of PDS kerosene). He died a martyr to the cause of anti-adulteration drive,” Oil Minister S. Jaipal Reddy told a news conference in New Delhi.
Announcing an ex-gratia of Rs. 25 lakh to the family of Sonawane, he said the responsibility of distribution of subsidised kerosene through the Public Distribution System rests with State governments and it was their duty to see that subsidised fuel is not diverted for adulteration.
A litre of kerosene costs Rs. 12.32 a litre while diesel is priced at Rs. 37.75 a litre. The huge difference makes it lucrative for diverting kerosene for mixing in diesel.
An estimated 40 to 60 per cent of the 9.5 million tonnes of kerosene the Centre annually allocates to States is diverted once it leaves the oil company depots.
“This incident has once again highlighted the problem of kerosene being used for adulteration. There is a need to respond to the problem in systematic term,” Mr. Reddy said.
Mr. Reddy said an improved chemical marker will be doped in kerosene to make its mixing with diesel near impossible.
“The kerosene marker system (which was withdrawn in 2009) will be reintroduced in the next six months,” he said.
The government had in 2006 introduced a dye sourced from U.S. firm Authentix in kerosene but withdrew it in 2009 pending toxology tests.
Also, Mr. Reddy suggested that the states use GPS-based vehicular tracking system like the one being used for vehicles transporting petrol and diesel to track the movement, any route deviations being taken or long stoppages.
“It is an effective tool in warding off incidences of pilferage and diversion leading to adulteration which may taken place during the period of untracked transportation,” he said, adding oil companies would provide technological and institutional support to the state governments for installing GPS on tank trucks transporting kerosene.
Besides, oil companies will provide online real-time information on loading of kerosene trucks, quantity and time of departure from their depots so that state authorities can check any route diversion, he said.
Once kerosene trucks leave oil company depots, they make unscheduled stoppages where the fuel is pilfered and what State civil supplies department receive is much less and often diluted quantities of kerosene.
Mr. Reddy said: “We urge the State government (Maharashtra) to take stringent steps to see all those involved are punished in proper way.”
Sonawane was burnt alive because he tried to film kerosene being stolen from an oil tanker on his cell phone.
“We are aware that the (kerosene) marker system prevailed for a couple of years, it was found to be somewhat effective. However there were some complaints about its safety (and so) the system was withdrawn,” Mr. Reddy said, adding that oil companies through in-house research have found an effective marker.
He urged State governments to use GSP to check pilferage, dilution and adulteration.
“Under GPS, if a truck stops at a point for more than a period of time, it’s considered time deviation. In case a truck adopts a wrong route it will be routed under GPS as route deviation.
“The same GPS system has to be introduced by the States. We are prepared to lend technologists, management assistants at our costs to the state government to enable them to introduce GPS,” he said.
“We will also introduce the system of online updates. The quantity, time of departure of the truck will be uploaded online. We will urge the state governments to follow (these),” Mr. Reddy said.
“We learnt with shock about the heinous killing of Additional Collector Yashwant Sonawane (who was set on fire by the oil mafia in Manmad on January 24 while attempting to stop diversion of PDS kerosene). He died a martyr to the cause of anti-adulteration drive,” Oil Minister S. Jaipal Reddy told a news conference in New Delhi.
Announcing an ex-gratia of Rs. 25 lakh to the family of Sonawane, he said the responsibility of distribution of subsidised kerosene through the Public Distribution System rests with State governments and it was their duty to see that subsidised fuel is not diverted for adulteration.
A litre of kerosene costs Rs. 12.32 a litre while diesel is priced at Rs. 37.75 a litre. The huge difference makes it lucrative for diverting kerosene for mixing in diesel.
An estimated 40 to 60 per cent of the 9.5 million tonnes of kerosene the Centre annually allocates to States is diverted once it leaves the oil company depots.
“This incident has once again highlighted the problem of kerosene being used for adulteration. There is a need to respond to the problem in systematic term,” Mr. Reddy said.
Mr. Reddy said an improved chemical marker will be doped in kerosene to make its mixing with diesel near impossible.
“The kerosene marker system (which was withdrawn in 2009) will be reintroduced in the next six months,” he said.
The government had in 2006 introduced a dye sourced from U.S. firm Authentix in kerosene but withdrew it in 2009 pending toxology tests.
Also, Mr. Reddy suggested that the states use GPS-based vehicular tracking system like the one being used for vehicles transporting petrol and diesel to track the movement, any route deviations being taken or long stoppages.
“It is an effective tool in warding off incidences of pilferage and diversion leading to adulteration which may taken place during the period of untracked transportation,” he said, adding oil companies would provide technological and institutional support to the state governments for installing GPS on tank trucks transporting kerosene.
Besides, oil companies will provide online real-time information on loading of kerosene trucks, quantity and time of departure from their depots so that state authorities can check any route diversion, he said.
Once kerosene trucks leave oil company depots, they make unscheduled stoppages where the fuel is pilfered and what State civil supplies department receive is much less and often diluted quantities of kerosene.
Mr. Reddy said: “We urge the State government (Maharashtra) to take stringent steps to see all those involved are punished in proper way.”
Sonawane was burnt alive because he tried to film kerosene being stolen from an oil tanker on his cell phone.
“We are aware that the (kerosene) marker system prevailed for a couple of years, it was found to be somewhat effective. However there were some complaints about its safety (and so) the system was withdrawn,” Mr. Reddy said, adding that oil companies through in-house research have found an effective marker.
He urged State governments to use GSP to check pilferage, dilution and adulteration.
“Under GPS, if a truck stops at a point for more than a period of time, it’s considered time deviation. In case a truck adopts a wrong route it will be routed under GPS as route deviation.
“The same GPS system has to be introduced by the States. We are prepared to lend technologists, management assistants at our costs to the state government to enable them to introduce GPS,” he said.
“We will also introduce the system of online updates. The quantity, time of departure of the truck will be uploaded online. We will urge the state governments to follow (these),” Mr. Reddy said.
Wednesday, January 26, 2011
Oil mafia burns alive additional collector
MUMBAI: An additional collector was burnt alive on Tuesday afternoon in Manmad, near Malegaon, on Tuesday when he tried to call other government officials to the scene of a fuel theft. The perpetrators doused Yashwant Sonawane (44) with kerosene and set him afire in scenes that sent shockwaves across the state.
Sonawane was found dead in a field from severe burns. But before dying he clung on to one of his attackers, Popat Shinde, making it impossible for him to flee. Shinde sustained 80% burns and is critical. He has been arrested with four others.
The gruesome killing led to home minister R R Patil ordering an immediate crackdown on the fuel mafia across the state. CM Prithviraj Chavan ordered an inquiry into the incident. He also announced a Rs 25 lakh payment to the family, payment of his salary till retirement and other compensation. Furious gazetted officers plan a strike on Thursday. Deputy CM Ajit Pawar called it a blot on humanity.
Sonawane had gone to Chandvad, where farmers had been agitating, and was proceeding towards Nandgaon when he spotted oil pilferage at Panewadi village in Manmad taluka, said Nashik divisional commissioner Jayant Gaikwad.
The place has oil depots of major companies like HPCL, BPCL and IOC. When he saw the theft outside the shop of Popat Shinde, he took video footage on his cellphone and also called local officials for a raid."
Shinde`s servant heard Sonawane calling the officials and alerted his boss. Soon, Shinde`s accomplices accosted the government official, doused him with the kerosene they were stealing and set him on fire.
"Shinde arrived on the scene and got into a heated argument with Sonawane. Shinde`s son Kunal and other servants also reached the spot," said Gaikwad. "There were two kerosene cans of 20 litres each at the scene. One of the assailants poured the contents of a can over Sonawane and set him ablaze. Sonawane at that point caught hold of Shinde, who sustained nearly 60% burns and is critical."
The divisional commissioner said fuel pilferage is not uncommon in Panewadi. The oil depots in the area supply fuel to nearly 12 districts in northern Maharashtra and Marathwada.
Gaikwad said Shinde had lost his wife just 10 days ago. "We are taken aback at how he could have committed such a gory crime while in grief," said Gaikwad. The attacker had a criminal record and had been externed once.
Sonawane`s cell phone, with the video, is now with the police. The tanker from which the kerosene was being pilfered has been seized.
The additional director-general of police (law and order) said Shinde, his son Kunal, brother-in-law Sitaram Bhalerao and their aide Raju Shirsat have been arrested for the murder.
Nashik collector P Velarasu said Sonawane was a low profile, hard-working officer. "Local policemen reached the spot within minutes of receiving the information. However, it was too late. Sonawane had already died," said Velarasu.
The body was taken to Nashik where the last rites will be performed. A postmortem was conducted on Tuesday evening and the funeral was scheduled for later in the night. Sonawane is survived by his wife, who lives in Malegaon, and two sons who study in Pune. Sonawane was a native of Dindori, but his parents stayed in Nashik. He had joined the government as deputy collector in 1994 and was expected to be absorbed into the IAS later.
Police and government sources said officials have known about the fuel mafia, but all action taken so far has been merely cosmetic. Food and civil supplies minister Anil Deshmukh, who is visiting Satara district, said the government will unearth the adulteration racket and take action against those behind the gruesome killing.
The CM asked revenue minister Balasaheb Thorat to reach the spot. Thorat said, "We will not hesitate to apply the strict MCOCA against the culprits."
Read more: Oil mafia burns alive additional collector - The Times of India http://timesofindia.indiatimes.com/city/mumbai/Oil-mafia-burns-alive-additional-collector/articleshow/7364458.cms#ixzz1C78iAbbf
Sonawane was found dead in a field from severe burns. But before dying he clung on to one of his attackers, Popat Shinde, making it impossible for him to flee. Shinde sustained 80% burns and is critical. He has been arrested with four others.
The gruesome killing led to home minister R R Patil ordering an immediate crackdown on the fuel mafia across the state. CM Prithviraj Chavan ordered an inquiry into the incident. He also announced a Rs 25 lakh payment to the family, payment of his salary till retirement and other compensation. Furious gazetted officers plan a strike on Thursday. Deputy CM Ajit Pawar called it a blot on humanity.
Sonawane had gone to Chandvad, where farmers had been agitating, and was proceeding towards Nandgaon when he spotted oil pilferage at Panewadi village in Manmad taluka, said Nashik divisional commissioner Jayant Gaikwad.
The place has oil depots of major companies like HPCL, BPCL and IOC. When he saw the theft outside the shop of Popat Shinde, he took video footage on his cellphone and also called local officials for a raid."
Shinde`s servant heard Sonawane calling the officials and alerted his boss. Soon, Shinde`s accomplices accosted the government official, doused him with the kerosene they were stealing and set him on fire.
"Shinde arrived on the scene and got into a heated argument with Sonawane. Shinde`s son Kunal and other servants also reached the spot," said Gaikwad. "There were two kerosene cans of 20 litres each at the scene. One of the assailants poured the contents of a can over Sonawane and set him ablaze. Sonawane at that point caught hold of Shinde, who sustained nearly 60% burns and is critical."
The divisional commissioner said fuel pilferage is not uncommon in Panewadi. The oil depots in the area supply fuel to nearly 12 districts in northern Maharashtra and Marathwada.
Gaikwad said Shinde had lost his wife just 10 days ago. "We are taken aback at how he could have committed such a gory crime while in grief," said Gaikwad. The attacker had a criminal record and had been externed once.
Sonawane`s cell phone, with the video, is now with the police. The tanker from which the kerosene was being pilfered has been seized.
The additional director-general of police (law and order) said Shinde, his son Kunal, brother-in-law Sitaram Bhalerao and their aide Raju Shirsat have been arrested for the murder.
Nashik collector P Velarasu said Sonawane was a low profile, hard-working officer. "Local policemen reached the spot within minutes of receiving the information. However, it was too late. Sonawane had already died," said Velarasu.
The body was taken to Nashik where the last rites will be performed. A postmortem was conducted on Tuesday evening and the funeral was scheduled for later in the night. Sonawane is survived by his wife, who lives in Malegaon, and two sons who study in Pune. Sonawane was a native of Dindori, but his parents stayed in Nashik. He had joined the government as deputy collector in 1994 and was expected to be absorbed into the IAS later.
Police and government sources said officials have known about the fuel mafia, but all action taken so far has been merely cosmetic. Food and civil supplies minister Anil Deshmukh, who is visiting Satara district, said the government will unearth the adulteration racket and take action against those behind the gruesome killing.
The CM asked revenue minister Balasaheb Thorat to reach the spot. Thorat said, "We will not hesitate to apply the strict MCOCA against the culprits."
Read more: Oil mafia burns alive additional collector - The Times of India http://timesofindia.indiatimes.com/city/mumbai/Oil-mafia-burns-alive-additional-collector/articleshow/7364458.cms#ixzz1C78iAbbf
Tuesday, January 18, 2011
Why the retail price of petrol had to be increased w.e.f., 16th Jan’11
Based on current price levels in the international oil market, the desired increase in the retail selling prices (RSPs) of petrol in a market like New Delhi should have been Rs.3.72/Lt. However, IndianOil has chosen to soften the impact on the customer by increasing the price by Rs.2.50/Lt. only and not passing on the balance required increase of Rs.1.22/Lr.
Even during the previous revision of the price of petrol with effect from 16th Dec’10, as against the required increase of Rs.4.90/Lt. in the price at New Delhi, the actual increase was confined to Rs.2.96/Lt. thus leaving a gap of Rs.1.94/Lt. in anticipation of a likely fall in the price levels in the global oil market.
However, with the persistent rising trend in the international oil prices, average prices of the Indian crude basket have gone up from $87.83/bbl during the earlier petrol price revision in December to the current level of $92.31/bbl amounting to an increase of $4.48/bbl. Average global prices of petrol during the same period have gone through an even higher increase of $5.17/bbl, rising from a level of $95.30/bbl to $100.47/bbl.
Owing to the substantial increase in oil prices, the Oil Marketing Companies (OMCs) are continuing to incur huge amounts of under-realisations on the sales of other sensitive petroleum products, viz. diesel, kerosene(PDS) and LPG(Domestic). Based on the current price levels in the international oil market, the retail selling prices (inclusive of the tax elements) of diesel, kerosene(PDS) and LPG(Domestic) should have been higher by Rs.7.65/Lr, Rs.19.60/Lr and Rs.366.28/14.2 kg cylinder respectively at New Delhi with corresponding increases across the rest of the country.
IndianOil is currently incurring an under-realisation of about Rs.159 Crore per day on the sales of these three sensitive products. The gross under-realisation for the year 2010-11 is projected to be as high as Rs.40,600 Crore for IndianOil (Rs.73,600 Crore for all the PSU OMCs). The current increase in the retail selling price (RSP) of Petrol was absolutely warranted and necessitated in the context of the above scenario.
source : http://www.iocl.com/aboutus/NewsDetail.aspx?NewsID=11350&tID=8
Even during the previous revision of the price of petrol with effect from 16th Dec’10, as against the required increase of Rs.4.90/Lt. in the price at New Delhi, the actual increase was confined to Rs.2.96/Lt. thus leaving a gap of Rs.1.94/Lt. in anticipation of a likely fall in the price levels in the global oil market.
However, with the persistent rising trend in the international oil prices, average prices of the Indian crude basket have gone up from $87.83/bbl during the earlier petrol price revision in December to the current level of $92.31/bbl amounting to an increase of $4.48/bbl. Average global prices of petrol during the same period have gone through an even higher increase of $5.17/bbl, rising from a level of $95.30/bbl to $100.47/bbl.
Owing to the substantial increase in oil prices, the Oil Marketing Companies (OMCs) are continuing to incur huge amounts of under-realisations on the sales of other sensitive petroleum products, viz. diesel, kerosene(PDS) and LPG(Domestic). Based on the current price levels in the international oil market, the retail selling prices (inclusive of the tax elements) of diesel, kerosene(PDS) and LPG(Domestic) should have been higher by Rs.7.65/Lr, Rs.19.60/Lr and Rs.366.28/14.2 kg cylinder respectively at New Delhi with corresponding increases across the rest of the country.
IndianOil is currently incurring an under-realisation of about Rs.159 Crore per day on the sales of these three sensitive products. The gross under-realisation for the year 2010-11 is projected to be as high as Rs.40,600 Crore for IndianOil (Rs.73,600 Crore for all the PSU OMCs). The current increase in the retail selling price (RSP) of Petrol was absolutely warranted and necessitated in the context of the above scenario.
source : http://www.iocl.com/aboutus/NewsDetail.aspx?NewsID=11350&tID=8
Crude costs as much as in ' 08 , petrol 28 % more
Petrol cost Rs
45 .52 a litre in Delhi when the
mix of crude that India buys
averaged a little over $ 92 /
barrel in February 2008 . But
today , the fuel costs Rs 58 . 37 ,
or 28 % more a litre , even though crude costs a
tad more than before at $ 93 a barrel in January .
The reason is that in 2008 , when international
crude price was going through the roof, the
government controlled the pricing of petrol . But
since last June , state - run oil companies are free
to set pump prices in tandem with global crude .
The result has been six price revisions for petrol
in the last six months, while the government has
capped prices of diesel and kitchen fuels much
below their cost of production for fear of stoking
an already- high inflation and public anger .
The government took $ 75 /barrel of Indian mix
as the benchmark when it freed up petrol . That
was the level at which crude appeared steady
and there were expectations that the global
economic slowdown would reduce demand and
maintain the priceline ^ if not pull it down .
But with international crude already back to
nudging the $ 100 - mark , how do things stack up
for consumers in India? While deregulating
petrol prices , the government had explained it
would step in if crude went beyond a point .
That promise was repeated through December
by oil minister Murli Deora. While the
government had not spelt out the threshold,
expectations were that a price range of $ 90 -
$ 100 would trigger government intervention .
On Monday , price of Brent crude inched up to
$ 98 / barrel as measured by futures trade for
March delivery in the London market . It had first
breached the $ 100 / barrel - mark in February
2008 . Though NYMEX ( New York Mercantile
Exchange ) is the bellwether for global oil trade,
Brent is clearly indicating what the future holds .
On Sunday, Iranian oil minister Masoud
Mirkazemi , who is also the present president of
oil- producer cartel Opec, said oil at $ 100 /barrel
was `` appropriate ''. He also said there was no
need to hold an emergency meeting to discuss
raising production to calm prices even if they
rose above $ 120 / barrel .
This means the government will have to rejig
duties if it wants to prevent further increase in
fuel prices . Deora said on Monday he had
sought a meeting with finance minister Pranab
Mukherjee . Last fortnight , Deora said on the
sidelines of an ONGC function in Delhi that the
government would cushion consumers from the
full impact of high oil prices .
But going by indications from Mukherjee and
finance secretary Ashok Chawla in the recent
past, any duty rejig will happen only in the
Budget. On Monday , another indication of that
came from petroleum secretary S Sundareshan ,
who told reporters in Mumbai that his ministry
will `` ask for duty reductions in the Budget'' .
There are enough political and economic
grounds for a duty rejig. The Congress on
Monday asked oil marketing companies to
explain Saturday 's price increase . IndianOil
Corporation, the country 's biggest refiner -
marketer, said in a statement that the
companies were still losing Rs 1 .22 a litre on
petrol as they did not pass on the burden
entirely .
But why were petrol prices revised when
inflation is over 8 %? One, the fuel has less than
one percentage point weightage in the price
index. Two, with this hike , oil companies would
reduce losses on petrol in the month and a half
left for the Budget.
They now have to reckon with Rs 7 .65 a litre
loss on diesel , Rs 366 loss on each cooking gas
cylinder and Rs 19 . 60 a litre on kerosene . The
government has said it will make good part of
these losses and oil producers will chip in with
33 % by way of discount . If crude keeps climbing
till the Budget, the government will rejig duties
and the three oil marketers can still expect to
keep their losses for the fiscal within the
estimated Rs 72 , 000 crore.
Last time Deora discussed the pricing issue with
Mukherjee in December , the oil minister asked
the finance ministry to make up half the losses
of oil marketers . Earlier this month , he again
asked Mukherjee to release Rs 10 ,000 crore as
interim relief so that oil companies do not show
loss in the third quarter . The finance ministry
has already released Rs 13 ,000 crore as subsidy .
45 .52 a litre in Delhi when the
mix of crude that India buys
averaged a little over $ 92 /
barrel in February 2008 . But
today , the fuel costs Rs 58 . 37 ,
or 28 % more a litre , even though crude costs a
tad more than before at $ 93 a barrel in January .
The reason is that in 2008 , when international
crude price was going through the roof, the
government controlled the pricing of petrol . But
since last June , state - run oil companies are free
to set pump prices in tandem with global crude .
The result has been six price revisions for petrol
in the last six months, while the government has
capped prices of diesel and kitchen fuels much
below their cost of production for fear of stoking
an already- high inflation and public anger .
The government took $ 75 /barrel of Indian mix
as the benchmark when it freed up petrol . That
was the level at which crude appeared steady
and there were expectations that the global
economic slowdown would reduce demand and
maintain the priceline ^ if not pull it down .
But with international crude already back to
nudging the $ 100 - mark , how do things stack up
for consumers in India? While deregulating
petrol prices , the government had explained it
would step in if crude went beyond a point .
That promise was repeated through December
by oil minister Murli Deora. While the
government had not spelt out the threshold,
expectations were that a price range of $ 90 -
$ 100 would trigger government intervention .
On Monday , price of Brent crude inched up to
$ 98 / barrel as measured by futures trade for
March delivery in the London market . It had first
breached the $ 100 / barrel - mark in February
2008 . Though NYMEX ( New York Mercantile
Exchange ) is the bellwether for global oil trade,
Brent is clearly indicating what the future holds .
On Sunday, Iranian oil minister Masoud
Mirkazemi , who is also the present president of
oil- producer cartel Opec, said oil at $ 100 /barrel
was `` appropriate ''. He also said there was no
need to hold an emergency meeting to discuss
raising production to calm prices even if they
rose above $ 120 / barrel .
This means the government will have to rejig
duties if it wants to prevent further increase in
fuel prices . Deora said on Monday he had
sought a meeting with finance minister Pranab
Mukherjee . Last fortnight , Deora said on the
sidelines of an ONGC function in Delhi that the
government would cushion consumers from the
full impact of high oil prices .
But going by indications from Mukherjee and
finance secretary Ashok Chawla in the recent
past, any duty rejig will happen only in the
Budget. On Monday , another indication of that
came from petroleum secretary S Sundareshan ,
who told reporters in Mumbai that his ministry
will `` ask for duty reductions in the Budget'' .
There are enough political and economic
grounds for a duty rejig. The Congress on
Monday asked oil marketing companies to
explain Saturday 's price increase . IndianOil
Corporation, the country 's biggest refiner -
marketer, said in a statement that the
companies were still losing Rs 1 .22 a litre on
petrol as they did not pass on the burden
entirely .
But why were petrol prices revised when
inflation is over 8 %? One, the fuel has less than
one percentage point weightage in the price
index. Two, with this hike , oil companies would
reduce losses on petrol in the month and a half
left for the Budget.
They now have to reckon with Rs 7 .65 a litre
loss on diesel , Rs 366 loss on each cooking gas
cylinder and Rs 19 . 60 a litre on kerosene . The
government has said it will make good part of
these losses and oil producers will chip in with
33 % by way of discount . If crude keeps climbing
till the Budget, the government will rejig duties
and the three oil marketers can still expect to
keep their losses for the fiscal within the
estimated Rs 72 , 000 crore.
Last time Deora discussed the pricing issue with
Mukherjee in December , the oil minister asked
the finance ministry to make up half the losses
of oil marketers . Earlier this month , he again
asked Mukherjee to release Rs 10 ,000 crore as
interim relief so that oil companies do not show
loss in the third quarter . The finance ministry
has already released Rs 13 ,000 crore as subsidy .
Fire breaks out at IOC ' s Navi Mumbai depot
A fire erupted at an Indian Oil
Corporation depot in Navi Mumbai and 25 fire
tenders have been rushed to the spot, the police
said . The fire broke out shortly after midnight.
No casualties have been reported so far . A
company official said the depot in Taloja stored
lube oil but had no stocks of crude oil.
Corporation depot in Navi Mumbai and 25 fire
tenders have been rushed to the spot, the police
said . The fire broke out shortly after midnight.
No casualties have been reported so far . A
company official said the depot in Taloja stored
lube oil but had no stocks of crude oil.
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