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| Sunday, February
25, 2001, Chandigarh, India   
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Women show their prowess in leather industry
‘India targets 1,42,000 MW power by 2005’ SC decision needs reconsideration
Open up: British Airways GM |
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Hindustan Lever raises consumer goods prices Hong Kong firm to
invest in SGN Telecom Tunisia for trade with India Emm Tel service launched
in Chandigarh
Termination order
Revive tax holiday; don’t burden
ICE Consumers have right to know quality of
products
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Women show their prowess in leather industry Chennai, February 24 Larger employment to women in this sector is no concession to them. It is, in fact, recognition of their strength with the women being more deft in jobs like stitching. There are factories here where the entire workforce comprises women. Having graduated from mass-based to quality-based, the leather industry is now looking to new export markets specially those in Latin America, middle-east and Asia-Pacific. According to Mr Mohammed Hashim, chairman of the Chennai-based Council of Leather Exports (CLE), a CLE delegation is shortly leaving for Uruguay and Mexico to seek markets for Indian leather products which are now increasingly exploring the world fashion market. Leather exporters want the government to amend the Cruelty to Animal Act to make it more stringent in dealing with people who do not take due care of animals during transportation. They have also suggested streamlining of policies regarding slaughter of animals. Industry sources say that there is no dearth of raw material in the country with India having more cattle than China. But there are certain ambiguities in the policies regarding slaughter of animals which, officials say, encourages some people to try circumventing the law. They say animals are transported along long distances to the states that allow their slaughter and greedy transporters pack animals like sardines. Officials say that Council wants strict action against transporters who do not adhere to the prescribed norms. “The present laws only entail a small fine,” regretted a CLE official. Dr T. Ramasami, Director, Central Leather Research Institute, has also given suggestions to the government which aim at plugging the loopholes in the system. The CLE was also giving thrust towards environment protection and Rs 120 crore had been invested to install effluent treatment plants. The CLE, which is backed in its efforts by Chennai-based Central Leather Research Institute, wants the government to reduce the turnout time at ports and reduce the rate of ineterest on the loans given to the leather industry.
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‘India targets 1,42,000 MW power by 2005’ New Delhi, February 24 And India is one such entity with a projected capacity of 50,000 MW in the next two years is among the top ten markets as seen by potential global electricity majors. India has the second largest manufacturing capacity in electric generation and the government has conceded that without beefing up its power sector there would be no growth. Industry estimates say that with new programmes on the anvil production levels are expected to rise by 1,42,000 MW by 2005. Against this backdrop, New Delhi is going to have the world’s biggest and prominent companies, technocrats and professionals spanning across the globe. The event, Power-Gen India and Central Asia 2001, will focus on the changing trends in electric power distribution and transmission. Last year has been a turning point in the power sector studded with a series of policy initiatives and sectoral reforms especially to recharge the physical and financial performance of central utilities, so that the power sector gets rejuvenated especially with funds. The Central utilities have also been encouraged to complete the ongoing projects and start new ones. Further transmission and distribution losses were exceedingly high in India. The per capita consumption of the country as a whole was 335.42 KW in 1995-96. This has grown seven times since then, however, the generation capacity is much less when compared to this. Power-Gen India and Central Asia 2001 is an effort that will also concentrate on these areas and help work out solutions for the growing demand for electricity. The exposition is third in the series after Power Gen Asia ’96 and Power Gen Asia ’98. The three-day event starts at Delhi’s Pragati Maidan on February 27. It is expected to be the largest and most comprehensive with convergence of government officials, industry executives, advisors, project managers, buyers, project developers, technicians and engineers from across the region including Central Asia. It is also the largest vertical industry exposition and the most mammoth.
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SC decision needs reconsideration Can an aggrieved party invoking the appellate jurisdiction to challenge the legality of levy of tax, interest and penalty under the sales tax laws be called upon to deposit the disputed amount involved as a condition precedent to the entertainment and hearing of appeal despite such assessment apparently is unlawful? This significant question came up for consideration recently before a two-judge Bench of the Superme Court in the case what has come to be known as the State of Haryana v. Maruti Udyog and others, Civil Appeal No. 4938 of 2000. Briefly stated, the facts of the case were that some tax demand had been raised against Maruti Udyog, Gurgaon. Calling in question the validity of the orders passed by the Deputy Excise and Taxation Commissioner (Inspection), Gurgaon, under the provisions of the Haryana General Sales Tax Act, 1973, the company carried the matter in appeal before the Sales Tax Tribunal, Haryana, Chandigarh, with a prayer “that the petitioner has not collected any additional tax from the customers and is unable to deposit the amount of additional demand created by patently illegal orders”. This plea did not find favour with the Tribunal and consequently a writ petition was filed in the high court under Article 226 of the Constitution of India which was allowed with a direction that the appeal preferred by the company should be entertained and heard on merits without insisting upon the assessed amount of tax. It was the State of Haryana which filed a special leave petition questioning the relief granted to the company and in this backdrop that the matter came to be debated before the Supreme Court. Interpreting the provisions contained in provision to sub-section (5) of Section 39 of the Haryana General Sales Tax Act, 1973, the Bench observed, inter alia, “In the instant case the prayer was made to grant stay on the ground that ‘the petitioner has not collected any additional tax from the customers and is unable to deposit the amount of additional demand created by patently illegal orders’, the respondent company nowhere mentioned to or referred its inability to pay the amount on account of its alleged financial difficulties or incapacity to make the requisite payment. The legality of the additional demand created could not be made the basis for insisting to entertain the appeal without prior payment, as that would have required the determination on the merits of the appeal.....” The important point which has been completely lost sight of is the provisions of Article 256 of the Constitution of India wherein it is unambiguously provided “No tax shall be levied or collected except by authority of law”. The question, therefore, arises whether the amount of tax levied in the manner not known to law can be required to be deposited in the name of a condition precedent to the entertainment and hearing of appeal which otherwise is contrary to the constitutional provisions? How far is it fair to regard such a statutory procedure as a “remedy of appeal” when the unlawful action of the taxing authority is virtually supported in the first instance in the guise of providing relief to the aggrieved parties? It is true that the revenue is supposed to safeguard its dues but at the same time none can be allowed to “levy” and “collect” taxes in complete disregard to the provisions of the Constitution of India. Even otherwise if the statutory appellate authority is empowered to set aside the illegal orders involving tax, interest or penalty, it ought to be considered to have equal powers to grant stay of the illegal demand of tax which is incidental and ancillary to the main powers. Obviously, therefore, the reasoning given by the judges with due respect to the authority of the court suffers from a serious infirmity which calls for reconsideration of the case. |
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Open up: British Airways GM Chandigarh, February 24 While the bilateral agreement with Germany has been recently reviewed permitting Lufthansa, to operate two additional Boeing 747 frequencies from Bangalore to Frankfurt every week, the German carrier will also have the option to operate three instead of two Boeing 747 aircraft on the Bangalore-Frankfurt sector provided the combined carrying capacity of the three smaller aircraft does not exceed the combined capacity of two Boeing 747s. The international air traffic is poised for interesting developments after United Airlines reintroduces its around the world ticket from April 1. Though the travel agents predict the ensuing financial year to be a year of “air fare war” in the sub continent, sales executive of many international air carriers only foresee a major growth in international air traffic from India. “We expect about 10 to 11 per cent growth in international air traffic from India,” says Mr Alan F. Brigs, General Manager, South Asia, of British Airways. Talking to The Tribune , Mr Brigs said the aviation industry was far more advanced in India than rest of the South Asia. As per the existing bilateral agreement with India, he said British Airways was permitted operations from only four metropolitan cities — New Delhi, Mumbai, Kolkata and Chennai. “We will have to wait for the review of the bilateral agreement before we can ask for increased frequency of our services from India. As far as the British Government is concerned, it is for open sky policy. The process of disinvestment in Air India and India Airlines may have slowed down the process of decision making. All those countries who have gone for open skies have made tremendous progress in the aviation sector. It would give a boost to the aviation sector if India also opens its skies to all international carriers,” he adds. He says “It is not only the price cutting. A customer satisfaction is the prime thing. British Airways has been doing exceeding well in North India and it has added to its capacity by linking the East India traffic to the Dhaka terminus flight. From April, we will be using a different aircraft for the Dhaka-Kolkata-London flight.” Mr Brigs says the return of United Airlines in no way would affect the market share of British Airways. “United was here before. There is enough for everyone in the Indian market, “ he said indicating that the introduction of polar flights by Canada 3000 would in no way affect the business of British Airways.
Hindustan Lever raises consumer goods prices
Mumbai, February 24 According to the spokesman, higher costs of soda ash and linear alkyle benzene has pushed up the manufacturing costs of Surf, a major detergent manufactured by the company. The cost of one kilo pack of Surf has gone up to Rs 82 from Rs 78. The price of Pepsodent toothpaste has increased by Rs 6. It is now priced at Rs 38. Price of Close-up tooth paste has increased to Rs 35 from 32.
ANI
Hong Kong firm to
invest in SGN Telecom New Delhi, February 24 SGN has been manufacturing electrical cables for the last 22 years and has gained considerable experience in the manufacturing field and quality processes. The company would be manufacturing optical fibre underground and aerial cables up to 24 pairs which will subsequently be increased to 48 pairs. Great Rise is mainly supplying and trading electrical and telecom cables to Middle East and African countries.
Tunisia for trade with India Chandigarh, February 24 Tunisia’s Ambassador to India M. S. Basly said here today that the country would welcome entrepreneurs from Haryana to set-up textile units there. He said both Tunisia and Haryana could establish a strong frame work for cultural and economic activities. Tourism was another area, where ties need to be strengthened, Dr Basly added. The Ambassador said a new policy has been introduced to attract tourists by creating a special fund.
Emm Tel service
launched in Chandigarh Chandigarh, February 24 Targeting to capture at least 20 per cent share in the market within one year, Emm Tel promises to offer services of international standards. “ The competitive advantages we will offer to our user will be faster data processing and greater security”, said Mr B.B. Gandhi, CEO of the company. 64 bit processors, high end routers, a firewall (hardware) and a lower port user ratio giving a faster access and no busy tones etc. will enable us to provide services at par with the international standards, he said . The “Nightbird” package, an offer under which a connection for 500 hours will be available for Rs 999 (Rs 2 per hour) , is what is expected to help attract customers, said Mr Gandhi, “This package will be effective between 10 pm to 7 am only “, he said. Other packages include 50/100 hours for Rs 499; 100/200 hours for Rs 899 and 500/1000 hours for Rs 3,999. Emm Tel services will shortly be available in Jalandhar, Patiala and Amritsar also. |
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Pentamedia This company has acquired 100 per cent of Improvision Corporation, California, USA in an all-stock deal, for a total consideration of US $19.8 million. The acquisition entitles Pentamedia to own the content, digital assets and other tangible and intangibles of Improvision. The acquisition should help the company strengthen its pre-production and post-production base. Can you ‘see’ the lines rising on the company’s ‘graph’?!!
TN newsprint The state-owned company has lined up a Rs 40-crore capacity addition plan, which would make it one of the largest manufacturers of quality paper and newsprint in the country. The update would help the existing machinery to be more efficient, besides making substantial improvement in quality of the product. The company seems to be planning to mint or rather print money for itself!!!
Piramal
healthcare Wellspring — the healthcare facility owned by Bupa Piramal Healthcare Ltd — has opened a branch of Medicine Shoppe spread over 1,000 square feet within its complex in Mumbai on Wednesday. The Medicine Shoppe, in its second year of operation in India, is the world’s largest franchised pharmacy chain and plans to open 30 stores in 10 cities over the next few months. The shop will also stock a wide range of non-prescription medicines and consumer goods with periodic discounts and offers. Wealth is good health for a company!!!
Colgate-Palmolive This dental care major’s gamble — the launch of Colgate’s Cibaca Top at an affordable price point of Rs 8 — is said to have worked, with Cibaca Top garnering a 5.9 per cent share of the rural market. The marketshare of Cibaca Top at the national level stands at 4.4 per cent. ‘Fresh breath energy’ into the company’s top and bottom line, right?!! |
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Praful R. Desai Termination order Q: If the order of termination does not cast any stigma then is it an order of simpliciter termination? Ans: In Chandra Deo Gautam v State of UP (2000-ll-LLJ. 1639) the SC gave the following verdict: The appellant was appointed as a General Manager in the Uttar Pradesh Scheduled Castes Finance and Development Corporation Ltd., on temporary basis. Subsequently by an order dated 4.2.1985, his services were terminated. The appellant field a writ petition in the HC and was successful in obtaining interim order, as a result of which he continued in service. Subsequently, the writ petition came up for hearing and the HC found that there was no illegality in the order terminating the services of the appellant. Consequenlty, the writ petition was
dismissed. Against the said order, the appellant is in appeal before the SC. The appellant strenously urged the SC that, in fact, the order of termination is an order of removal without giving an opportunity to show cause and, therefore, the unpugned order deserves to be set aside. The SC found no merit in this contention. The order of termination does not cast any stigma. Moreover, the decision referred to in the order of termination also does not cast any stigma. The impugned order is an order simpliciter termination and not an order of removal. Under such circumstances, the appellant was not entitled to any opportunity of show cause. The SC held that the present appeal lack merit and accordingly dismissed the appeal. Appeal in that way came to be dismissed. |
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Revive tax holiday; don’t burden
ICE Last weekend, I wan in Goa on a plant visit. It brought back memories of my last trip there attend a seminar organised by CRISIL on External Debt Management — Role of Financial Intermediaries. The proceedings of this seminar whose speakers included members of the Ministry of Finance, the World Bank, the RBI, some FIIs, foreign banks and DFI’s have been compiled as a book by CRISIL. Although I have been credited with editing and presenting this book, the fact is that the real credit therefore must go to my wife Garima and my young colleague Punit who put in a lot of blood and sweat into this effort. Finally, I must also admit that my debut as the editor of this book was greatly facilitated by the remarkable patience and professionalism displayed by Rajat Dutta of Crisil who anchored the entire project on behalf of that organisation. Having recovered from that bit of nostalgia, let me take you back to where we left off last week in our ongoing preview of the forthcoming Union Budget. The lowering of interest rates in line with
international trends could bring in more money for infrastructure building although there is also a school of thought that the lowering of interest rate would further diminish savings. Furthermore, it is true that coal and steel sectors are necessary
infrastructure facilities and need to be encouraged through fiscal incentives. Perhaps, there could be tax holidays for new industrial undertakings as India is still in the industrialisation process and has not reached a stage where incentives for setting up of new units should have been withdrawn. The
discontinuation of the tax holiday benefit has resulted in slowing down the pace of industrialisation. All efforts must be made to accelerate the industrial growth. In this regard, it suggested that the said tax holiday be revived. While it makes good economic sense to revive ailing industries through incentives, our strength which now lies in the ICE sectors, namely infotech (software), communications (telecom) and entertainment (media) sectors must not be ignored. Sinha should desist from the temptation of putting any excessive burden on these segments merely on the ground that they are outperforming other sectors. If the far from euphoric Budget countdown is any indication, we might well have a rally on our hands post-Budget. In case you think I have lost it, just rewind to the umpteen number of times when the markets crashed post-Budget after a euphoric pre-Budget build up. There’s no good reason why the reverse too might not happen. Finally, do spare a thought for the Finance Minister and the herculean task ahead of him. Remember, he has to address issues pertaining to the entire nation and not merely a few segments with never ending wish-lists. Talking of wishes, if they were horses........
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by Pushpa Girimaji Consumers have right to know quality of products What would you do if you found your neighbourhood shopkeeper using inaccurate weights and measures? Well, while one option is to warn him of the consequences of such violation of the law, the other is to straight away complain to the department of weights and measures. Of course if you are a member of a consumer group or a residents association and the members are willing to cooperate, then you could also threaten to boycott the trader. That would also send a signal to other traders in the area that you would not tolerate dishonesty. A consumer recently camp up with another interesting option. She says she suspected the accuracy of the weights used by some of the traders in the area. She, with some friends considered the various choices before them and came up with a novel way of handling it. On the first day, very casually and politely, she asked a shopkeeper whether the weights and measures that he was using was duly calibrated and accurate. Apparently the trader had never been questioned on this by any customer and initially he was taken aback. He expressed his resentment over the question too... But when within the next fortnight, at least three customers asked the same question, he got worried. He bought a new set of weights and put up a small notice informing the customers about it. In many situations, just by asking questions, consumers can force better compliance of laws, regulations and safety norms. But unfortunately, consumers rarely pose questions or demand an answer. Talking of weights, even in jewellery shops where the accuracy of the weights used is so important, consumers do not question the jeweller about it. Last week, I discussed the need for stringent regulation of amusement parks and rides. Now, how many consumers who visit these parks ever go to the manager and ask him about the safety procedures that they follow? If even ten consumers make such enquiry, the park owners would pay more heed to safety and also perhaps even distribute pamphlets explaining the measures taken by them to ensure the safety of the rides. The same pressure
tactics should work with cinema hall owners too when it comes to fire safety measures. Similarly, in many parts of the country, boating facilities and boat rides are provided, but often without a thought to the safety aspect. I fonly consumers begin to ask questions about the life buoys, life guards, emergency first aid provisions in case of an accident, those providing these services will not exhibit such casual attitude towards safety. This applies to swimming pools too. Before using a pool, ask those running and maintaining if about the cleanliness, depth of the pool, presence of life guards, first aid facilities. Are children safe at the pool? Whether it is safety, quality or quantity, it is only when consumers begin to question that those who are providing goods and services will sit up and take notice. When a doctor takes out a syringe and a needle, a patient will probably wonder whether he is using a fresh, disposable needle and syringe, but will hesitate to ask the doctor the question. Now why should you hesitate? After all, you are the one at risk in case the needle is contaminated. Besides, such questioning will also force the medical practitioner or the hospital to pay more attention to safety. Talking of hospitals, the quality of health service provided depends not only on the doctors but also the nurses. Yet, many private hospitals employ untrained and unqualified nurses. Remember the case of Harjot Ahluwalia vs Spring Meadows Hospital? Here, a two-year old child was given an intravenous injection of chloroquine instead of chloramphenicol by an unqualified nurse, resulting in irreparable damage to his brain cells. Now when you decide to go to a private hospital for treatment, ask them not only about the qualifications of the doctors there, but also about the nurses. If a dozen consumers pose such queries, I am sure hospitals will think twice before employing unqualified nurses. There is another issue here. Consumers have a right to information but not every manufacturer or service provider recognises this right. So when a consumer starts asking questions and demanding an answer, he or she is not just seeking accountability, but also exercising the right to information and forcing those from whom he is seeking answers, to respect that right. Such questioning, also sends a signal that the consumer has begun to assert himself. Suppose you buy a saree or a dress material, I am sure you would like to know the composition of the fabric, whether it is shrink-proof, whether the colour is stable, etc. Ask these questions. When ten customers demand answers from the retailer, he will get the manufacturer to come out with this information on the fabric. So go ahead and demand answers to all your
queries! |
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‘Arrest squad’ hunts Daewoo tycoon Turkish lira tumbles again IBM, Microsoft settle e-com dispute United Airlines may sell regional carriers |
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UPS system Insurance agents Electrical safety Office-bearers Life management |
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