Sunday, July 23, 2000,
Chandigarh, India







THE TRIBUNE SPECIALS
50 YEARS OF INDEPENDENCE

TERCENTENARY CELEBRATIONS
B U S I N E S S

Visa relaxation must for
better IT ties

NEW DELHI, July 22 — Relaxation of Visa regulations between India and China will be key to boost economic relations between the two countries, especially in the field of Information Technology, the Minister for Information and Technology, Mr Pramod Mahajan said today.

Make the police computer savvy
LONG awaited Bill on IT has been passed. So e-mail gets legal sanctity. Digital signatures shall get authenticated and electronic record shall be recognised by Court of Law. The main thrust of the Bill is to check cyber crime which is global in nature and is growing. Regulatory structure shall be in place with cyber Regulation Appellate Tribunal.

Withdraw subsidies on LPG, kerosene: experts
NEW DELHI, July 22 — To reduce the gap between the demand and supply of petroleum products, a leading think-tank on country’s petroleum policies has recommended slimming of ONGC and Oil India, gradual withdrawal of subsidies on LPG and kerosene and setting up of a petroleum finance corporation.

Computerisation of PSEB sub-stations
CHANDIGARH, July 22 — The effort of Punjab State Electricity Board to computerise sub-stations for better energy management would be supported by the CII. This was stated by Mr S.P. Oswal, Chairman, CII Punjab State Council during an interaction with Mr P.S. Kang, Chief Engineer (Commercial) and Mr S.C. Matta, Chief Engineer (Metering), PSEB here today.

Creditors to split Daewoo Corp
SEOUL, July 22 — Creditors of Daewoo Corp, the trading and construction arm of the disbanded Daewoo Group, have agreed to split the company into three entities to settle its bankruptcy, a report said today.


 


EARLIER STORIES
 

IOC among top corporates
NEW DELHI, July 22 — The Indian Oil Corporation has been ranked among the world’s top 500 companies by the Fortune magazine.

Website on J&K handicrafts launched
CHANDIGARH, July 22 — Mr Omar Abdullah, Union Minister of State for Industry and Commerce today launched a website on J&K handicrafts— www.jkhandicraft.com. The site developed and hosted by Chandigarh based web solutions provider, Pugmarks Inter Web Pvt. Ltd. has a comprehensive collection of products and a detailed profile of the handicraft sector of J&K.Top






Visa relaxation must for better IT ties
Tribune News Service

NEW DELHI, July 22 — Relaxation of Visa regulations between India and China will be key to boost economic relations between the two countries, especially in the field of Information Technology, the Minister for Information and Technology (IT), Mr Pramod Mahajan said today.

“Relaxation of visa rules should be the first step for greater trade and business cooperation between India and China, especially in the Information Technology field,” Mr Mahajan, who returned yesterday from a five-day official tour to China, told reporters here.

Stating that there is a “tremendous scope” for business exchange in the IT sector between the two countries, the minister said in his report, to the Prime Minister Mr Atal Behari Vajpayee, about the tour he would underline the need for visa relaxation.

Unless IT specialists from the two countries make frequent visits to each others country they will not be able to know about each other and build confidence. Here lies the importance of relaxation of viva rules, the Minister said.

Terming his tour to the neighbouring country as a “great success”, Mr Mahajan said while China was very strong in computer hardware, India has niche in computer software.

“Both the countries will be in a win-win situation, if the computer Hardware companies in China and Indian Software companies join hands in a big way,” he said.

Mr Mahajan, who visited Beijing, Shanghai and Zhenchen besides Hong Kong, said the Chinese industrialists and ministers were impressed with India’s software technology and expressed their desire to penetrate Indian computer hardware market.

During his visit, Mr Mahajan had met Vice-Premier of China Mr Wu Bangguo, Minister of Information Industry Mr Wu Jichun, Minister of Foreign Trade and Economic Cooperation Mr Shi Guangsheng, Foreign Minister of China, Mr Tang Jiaxuan, besides several other Chinese officials and executives of top computer companies.

The aspect that was worth noting in China was their phenomenal advancement in infrastructural development and telecommunication, he said.

During his tour, Mr Mahajan said, he tried to impress upon his counterparts that greater economic ties will also bring the two neighbours close politically.

However, some of the Chinese ministers had a different point of view. They felt that political and economic ties should be together, he said.
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Make the police computer savvy
By P.D. Sharma

LONG awaited Bill on IT has been passed. So e-mail gets legal sanctity. Digital signatures shall get authenticated and electronic record shall be recognised by Court of Law. The main thrust of the Bill is to check cyber crime which is global in nature and is growing. Regulatory structure shall be in place with cyber Regulation Appellate Tribunal.

There are many shortcomings in the Bill. The provisions under section 80 of the Bill are likely to be misused by police as it empowers them search and arrest a person on mere suspicion that a cyber crime is about to be committed.

Any police officer not below the rank of a DSP or any other officer of the Central Government or State Government authorised by the Central Government in this behalf may enter public place and search and arrest without warrant any person found there in who is reasonably suspected or having committed or of committing or of being about to commit any offence under this Act. There is lot of hue and cry against this which is justified.

Our police is not computer savvy. In fact their work culture is such that even implications of calculation may not be understood. To check cyber crimes trained police is the need. We may call it e-police. Only recently a seminar on police role to check cyber crimes was held in Bangalore. Our police personnel is like ‘Virtual Cop’ unable to do any thing against offenders on the World Wide Web.

According to National Law School of India University (NLSIU) special police force should be created which is technology savvy. To expand computer literacy 17,000 gazetted officers and equal number of other policemen at the regional and state training centres have been trained, according to National Crime Record Bureau.

Another bad part of the Bill is that it gives immunity to the Central Government and its officials including police from any suit, prosecution and other legal proceedings for any act done in good faith in pursuance of the provisions of the Act. So this denies any remedy for a person who may be the target of abuse and misuse by the police.

In the Internet-driven World of today cyber crime committed at one distant place affect some one at the other end. In the USA alone an average of 890 complaints of fraud per month reported by the National Consumer League’s Internet Fraud Watch during 1999.

The other failing in the Bill is the non-existent of its international character. Any body can leave the country after committing cyber crime. Such a crime may be committed from outside the country.

So bilateral treaties/international legislature to deal with cross border cyber crime have to be provided. We have not been able to get Dawood Ibrahim so far. When international treaties like WTO and CTBT can be had such a treaty for cyber crimes is a must.

Last year we had about 2,70,000 Internet users and this is likely to grow to 90 lakh by 2003. During 1998-99 e-commerce transactions in the country were worth Rs 13 crore may increse to Rs 450 crore this year against $ 43 billion in USA in 1998.Top


 

Withdraw subsidies on LPG, kerosene: experts
Tribune News Service

NEW DELHI, July 22 — To reduce the gap between the demand and supply of petroleum products, a leading think-tank on country’s petroleum policies has recommended slimming of ONGC and Oil India, gradual withdrawal of subsidies on LPG and kerosene and setting up of a petroleum finance corporation.

Among other things, it has also sought setting up of a national petroleum data bank to store all relevant seismic data for on-shore and off-shore surveys and a high-powered regulatory authority to oversee functioning of the deregulated oil industry.

The think-tank, which gave its recommendations to the Centre today, has sought modification in the New Exploration Licensing Policy (NLEP) and greater participation of Indian entrepreneurs without the need of their having experience in E&P activity.

Mr Jai Prakash, Chairman of the Surya Foundation under whose aegis the think-tank had been set up, said the proposed petroleum regulatory authority should not only guard interests of consumers but ensure quality and compliance with environment norms.

Maintaining that the petroleum finance corporation should be set up from the cess being charged on fuel, the think-tank said the corporation funds should be made available to private parties also. Emphasising the need of petroleum data bank on the pattern of that existing in the USA, it said that the data should be made available to interested parties at nominal rates. Surveys should be conducted both in maritime economic zone and in deep water to explore for oil.

Seeking a restructuring of ONGC and Oil India, it said functions of drilling, seismic surveys, well logging and equipment operation should be out-sourced as was being done the world over. It also sought one central research organisation for the entire oil industry.

NGO said the distribution and marketing of petroleum products should be deregulated to bring about greater competition among the oil companies. A national network of product pipelines should be provided in preference to other modes such as rail and road.

Drawing attention to the need of removing subsidies, the NGO said it will not only reduce oil pool deficit but reduce adulteration and corruption. It said India should urgently finalise arrangements for import of surplus natural gas from Iran to pre-empts any move from countries like China. India needs this gas on a long-term basis to meet its growing oil deficit.

The NGO think-tank, comprising former top executives of the petroleum and gas sectors, has been meeting for over a year to thrash out the recommendations.

With the indigenous production of crude oil declining in the past two years, pressure has been mounting on imports as the demand is growing at over 6 per cent annually. The hardening of international oil prices in recent past and sluggish domestic production would result in India’s import bill touching Rs 60,000 this year. The NGO warns that if the trend continues and local production of crude does not expand substantially to fill the gap, the country may not have adequate foreign exchange to sustain such expensive imports during the next 10 years.Top



 

Computerisation of PSEB sub-stations
Tribune News Service

CHANDIGARH, July 22 — The effort of Punjab State Electricity Board (PSEB) to computerise sub-stations for better energy management would be supported by the CII. This was stated by Mr S.P. Oswal, Chairman, CII Punjab State Council during an interaction with Mr P.S. Kang, Chief Engineer (Commercial) and Mr S.C. Matta, Chief Engineer (Metering), PSEB here today.

Explaining the need for computerisation, Mr P.S. Kang said it will not only help in keeping a record of energy received by the sub-station but also make available the data relating to energy dispatched.

Mr Oswal on behalf of CII assured him that the industry would certainly help the PSEB in computerising a minimum of 50 sub-stations in a year from now.

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Creditors to split Daewoo Corp

SEOUL, July 22 (AFP) — Creditors of Daewoo Corp, the trading and construction arm of the disbanded Daewoo Group, have agreed to split the company into three entities to settle its bankruptcy, a report said today.

Twenty-two major creditor banks approved the plan to divide the indebted Daewoo Corp into a trading company, a construction firm and a company laden with most of Daewoo Corp’s debt, The Dong — a daily said today.

“If Daewoo Corp is divided up, it would help bolster efforts to settle the bankruptcy and to rescue viable units,” a bank official told Yonhap News Agency.

The creditors also agreed to swap their loans for equity shares in two of the three units. The amount of the debt-equity swaps will be $338 million for the new trading company, Daewoo International, and $ 653 million for the new construction company, Daewoo Construction.

South Korea’s financial watchdog has said a special audit into the Daewoo Group found that the group fiddled with figures and that group officials would face punishment for false accounting.

Reports said former Daewoo Group Chairman Kim Woo-Choong, who is staying abroad, topped the list of those responsible for inflating the group’s asset value by $ 21 billion. Kim and 25 other Daewoo officials have reportedly been listed as those responsible for false accounting.
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IOC among top corporates

NEW DELHI, July 22 (TNS) — The Indian Oil Corporation has been ranked among the world’s top 500 companies by the Fortune magazine. It has been ranked 232nd based on revenue and is 46 rungs above last year’s position. Among the petroleum refining companies, IOC continues to be the 16th largest in the world.Top


 

Website on J&K handicrafts launched
Tribune News Service

CHANDIGARH, July 22 — Mr Omar Abdullah, Union Minister of State for Industry and Commerce today launched a website on J&K handicrafts— www.jkhandicraft.com. The site developed and hosted by Chandigarh based web solutions provider, Pugmarks Inter Web Pvt. Ltd. has a comprehensive collection of products and a detailed profile of the handicraft sector of J&K.

The site has complete information of products ranging from Kashmiri carpets, Kashmiri shawls, wood carvings, papier machie, crewel and namdha to Jammu’s heritage products like Basohli Painting, Calico Painting and Phool Kari. The site also gives detail information on the handicraft products of Ladakh ranging from woodcarving and painting, Ladakhi Pashmina weaving.
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GRAPEVINE

Mobile Trouble
THE classic battle between commerce and ecology continues, with the WHO firing off reports of brain pains, if an individual uses too much of his mobile phone. Meanwhile the mobile phone operators are using gimmicks like Customer Relationship Management to woo consumers. Well, well wonder how the market takes this news? Orange anyone!!!

Cadila Health
The grapevine has it that this Indian pharma major is set to scale new heights. After becoming the first off the blocks with the Indian Viagra’, it is now making rapid progress following the introduction of an anti-HIV drug. What’s more, a biotechnology breakthrough too is on the cards. Are the competitors listening?

Global Telesys
Warning! Global Tele expects a showdown in its growth because it plans to exit from product segments like packaged software, hardware business in the network segment, etc. The company contrives or rather hopes (with their fingers crossed?!!) to raise further revenues from software, B2B and e-commerce segments. The grapevine buzz is that this is a well-orchestrated stock market exercise. Any takers?

Indian Rayon
Louis Phillipe, Van Huesen and Allen Solley are lines with good brand equity. The question is, will they work their magic for the company and are they really worth the money spent? The company seems to be doing its bit, but retailers complain of a distribution problem. Will the brands shine their ray on the financials too, please?
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SALES TAX ISSUES

by A.K. Sachdeva

Q: We are registered as a dealer under the provisions of the Punjab General Sales Tax Act, 1948 and the Central Sales Tax Act, 1956. While framing the assessment for the assessment year 1996-97, additional demand of Rs 15,000 was raised by the assessing authority which was challenged by us in appeal before the Deputy Excise and Taxation Commissioner (Appeals).

The contention raised was accepted and the amount of additional tax was quashed. We became entitled to the refund of the amount of Rs 15,000 for which application under section 12 of the Punjab General Sales Tax Act, 1948 read with rule 48 of the Punjab General Sales Tax Rules, 1949 was submitted in the month of May, 1999. The assessing authority, however, is maintaining silence over the issue despite several requests made by us. Kindly advise.

— H.J. Singh, Ludhiana

Ans: Sub-section (3) of section 12 of the Punjab General Sales Tax Act, 1948 says “where any amount required to be refunded by the assessing authority to any person by virtue of an order issued under this Act is not refunded to him within ninety days of the date of the order, the dealer shall be entitled to get simple interest on such amount at the rate of one percentum per month from the date immediately following the date of expiry of the said period for a period of one month and thereafter at the rate of one and half percentum per month till the refund is made”.

The application submitted by the queriest in the month of May, 1999 ought to have been disposed of before August, 1999 and therefore the assessee is not only entitled to the refund of the principal amount but interest has also become payable on the delay involved. Having regard to the facts of the case it would be appropriate if the queriest makes a representation to the Excise and Taxation Commissioner, Punjab, Patiala as well as the Assistant Excise and Taxation Commissioner-cum-District In charge bringing all these facts to their notice.

Q: We are engaged in the business of iron and steel goods being a dealer registered under the provisions of the Haryana General Sales Tax Act, 1973 and the Central Sales Tax Act, 1956. The assessment for the assessment year 1995-96 was completed by the assessing authority when the account books and the sales tax returns furnished were accepted. No additional tax demand was created as we had paid tax due as per the returns. Now the assessing authority has issued a notice on the basis of an audit objection to the effect that the turnover relating to our business has been under-assessed. Kindly advise under what circumstances the assessing authority can proceed to re-open the assessment?

— R.K. Sharma, Bhiwani

Ans: According to the provisions contained in section 31 of the Haryana General Sales Tax Act, 1973 an assessment can be re-opened only if the assessing authority on the basis of the definite information which has come into his possession discovers that the turnover of the business of a dealer has been either under assessed or has escaped assessment.

The point raised by the audit party does not constitute definite information and therefore no notice for reassessment can be issued. The assessing authority does not have jurisdiction to re-open the assessment simply because on the basis of the objection raised by the audit party.

Q: We were registered as a dealer under the Haryana General Sales Tax Act, 1973 and the Central Sales Tax Act, 1956. On closure of business we applied to the assessing authority for cancellation of registration certificate. Certain goods were lying in stock which had been purchased during the currency of the registration certificate from the places situated outside the State. The assessing authority wants to levy tax on the stock of goods under section 10 of the Haryana General Sales Tax Act, 1973. Kindly advise.

— Rajan Srivastva

Ans: Section 10 of the Haryana General Sales Tax Act, 1973 which provides for levy of tax on stock does not apply to the goods lying in stock which are purchased in the course of inter-State trade or commerce. Under this provision tax becomes leviable only on the goods which are purchased from within the State without payment of tax.

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CHECK OUT

by Pushpa Girimaji

Make crash relief smooth and quick

BE it road, rail or air transportation, whenever a tragic accident such as the one at Patna involving Alliance Air’s Boeing 737 happens, the least that can be done by the service provider is to ensure that the process of payment of compensation to the victims or their relatives is simple, smooth and quick. I say this because there have not only been instances of inordinate delay, but also of service providers trying to escape liability on certain technical grounds such as bar of limitation.

Take this case filed by a victim of the air crash in Bangalore. On February 14, 1990, Indian Airlines IC 605 flying from Mumbai to Delhi caught fire and crash-landed near Bangalore airport. About 90 passengers were killed in the accident and 56 received varying degrees of injuries. Dr D.P. Hazra, one of the injured passengers, filed on March 15, 1991, a claim form, seeking Rs 2,50,000 as compensation for partial permanent disablement, loss of cash, luggage and loss of business. He followed this up with two reminders dated June 20 and October 10, 1991. Apparently, no reply was received and ultimately he contacted the concerned officials of the airlines who informed him that the settlement of claims was being handled by their solicitors and he was also given a copy of the letter dated March 23, 1991, written by the Solicitors asking him for certain details and documents regarding his claim. Mr Hazra sent those and was informed through a letter dated September 28, 1992, that his claim for damages stood extinguished on the expiration of two years from the date of the accident.

Upset over this reply, Mr Hazra filed a complaint before the Delhi State Consumer Disputes Redressal Commission, which first took up the preliminary objection of the Indian Airlines that (a) the complaint was time-barred under the Consumer Protection Act and (b) Mr Hazra’s right to compensation itself stood extinguished under the Carriage by Air Act.

Under Rule 30 (Schedule II) of the Carriage by Air Act, the right to damages will stand extinguished if an action is not brought within two years, reckoned from the date of arrival at the destination or from the date on which the aircraft ought to have arrived or from the date on which the carriage stopped. And sub rule (2) of Rule 30 provides that the method of calculating the period of limitation shall be determined by the law of the court seized of the case. Section 24 (A) of the Consumer Protection Act says that the complaint should be filed within two years from the date on which the “cause of action” has arisen. However, the consumer court may entertain a complaint even after the expiry of this period, if there is sufficient cause for condoning the delay.

In this case, the court pointed out that Section 24 (A) of the Consumer Protection Act did not apply as this Section was inserted in the Act only in June 1993, while the case filed in March 1993. And so as per sub rule (2) of Rule 30 of the Carriage by Air Act, the method of calculating the period of limitation was required to be determined by the Limitation Act. It then referred to Section 18 of the Limitation Act, which lays down that where, before the expiry of the prescribed period, an acknowledgement of liability is made in writing, a fresh period of limitation shall be computed from the time when the acknowledgement was signed. And in this case it considered whether the letter written by the Solicitor seeking more details about the claim constituted an acknowledgement of liability on the part of the airlines and whether the Solicitors had been authorised by the airlines to acknowledge the liability as required under Section 18. Its conclusion was that the complainant’s right to damages was not extinguished because the acknowledgement provided for a fresh period of limitation being calculated from the date it was signed.

In the case of Station Manager, Indian Airlines v Dr Jiteswar Ahir too, one of the grounds on which the airlines fought the case (and lost) was that it was time-barred. Here the complainant had suffered injuries and permanent disability following a fall from the door of the aircraft. In this case, the National Commission pointed out that the airline had constituted a medical board to examine the complainant and even after that they had not settled his claim and so this was taken as implied repudiation of the claim. And thus the cause of action arose on the implied repudiation and calculated from that day, the complaint was filed within a period of two years from the time the cause of action arose.

Service providers should remember that in cases such as these, what determines quality of service is the manner in which they treat those who are in distress either because of injuries suffered or because of having lost a family member of members.
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LABOUR LAWS

Cafe, a factory?

Q: Whether hotel/cafe, is a factory within the meaning of S. 2 (K) of the Factories Act & S. 2 (12) of ESI Act?

Ans: In ESI Corprn, Hyderabad v Garden Cafe, Tikke, Nandyal (2000-I. LLJ-1557) the Andhra Pradesh HC opined thus:

The Act is a beneficial piece of social security legislation in the interest of labour in the factory at the first instance and with a power to extend to other establishments. The provisions of the Act will have to be construed with that end in view to promote the scheme and avoid the mischief.

In the instant case, however, without bearing in mind the above observation of the SC and the report submitted by the Inspector, which was submitted after verifying the records maintained by the employer. The Tribunal, however, failed to appreciate the report submitted by the Inspector, but accepted the version of the respondent contrary to the aims and objects of the Act, which is promulgated for the benefit of the employees.

Therefore, as seen from the report of the Inspector, who inspected the premises and found that 10 persons were employed for wages by the petitioner from April 1990 to June 1990 and he verified the attendance register. The Inspector also found that a grinder was being used with the aid of power for manufacturing pickles, chutneys etc.

Therefore, the petitioner-respondent cafe comes U/s. 2 K of the Factories Act and covered by S. 2 (12) of the ESI Act in the opinion of the HC . Taking any view from any angle, the cafe is a factory and its establishment is covered by ESI. Act.

Instead of accepting the report of the Inspector, the Tribunal on erroneous grounds allowed the petition filed by cafe, that the Inspector has failed to see the size of the grinder used by the Cafe. S. 45 of the Act. Nowhere obligates the Inspector to give the size, width and height of the grinder used by any hotelier or any establishment.

Therefore, the HC held that the finding of the Lower Court is erroneous, uncalled for and accordingly set aside.
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BIZ BRIEFS

Bankers meet
SRINAGAR, July 22 (PTI) — Srinagar will play host to a two-day meeting of heads of various banks and other financial institutions in September next. The proposed meeting is aimed at improving the lending facilities for industry and other priority sectors in the state. Among others, Union Finance Minister Yashwant Sinha will attend the meeting.

Mighty mouse
CHANDIGARH, July 22 (TNS) — Advance Education Technology Pvt Ltd has designed the programme “The Mighty mouse” for children of the age group 4-14 years to provide them training of computer education under the technical guidance of Info Soft International Pvt Ltd of Australia. The programmes curriculum focuses on basic concepts of computers like word-processing, desktop publishing, database, spread-sheets, graphics and animation, multimedia, internet etc.

Mr B.D. Narang, who has taken over as Chairman and Managing Director, Oriental Bank of Commerce at its head office in New Delhi. He was Executive Director of Punjab & Sind Bank.

Qualis
BANGALORE, July 22 (UNI) — “Toyota Qualis” reached a milestone today with its 10,000 unit rolling off from the Toyota Kirloskar Motor Facility at Bidadi near here. The vehicle rolled off in the presence of Director Tokuichi Uranishi besides senior officials of Tata Kirloskar at a function organised by the company.

Sunjewels
CHANDIGARH, July 22 (TNS) — Sunjewels International Ltd is poised to launch their 23.9 k fine gold jewellery in Punjab. They are renowned for their jewellery which is known as Sunjewels all over the country. It is holding a seminar in Chandigarh, Jalandhar, Ludhiana and Amritsar from July 22 to 25.
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