Depts overrule Cabinet tax waiver to two gold traders
Pratibha Chauhan
Tribune News Service
Shimla, September 16
Though the Cabinet on August 22 decided to waive Rs 14.11 crore taxes due from two gold traders, the Department of Excise, Law and Finance have expressed inability to implement the decisions as there is no provision in the laws to write off the dues.
The two gold traders – AJ Gold Refinery (Nadaun) and Sai Refinery (Parwanoo) — have not paid taxes since 2010 and they have been issued notice for being defaulters.
Sources said despite the Cabinet putting its stamp of approval on the decision, the Law Department had said it could not be implemented in view of the new GST regime. “If the law still insists that it cannot be done, the possibility of doling out some incentives to gold traders is being mulled,” said highly placed sources.
The decision to show magnanimity towards the two gold traders has come in for sharp criticism, especially in view of the fact that the state is faced with a grim financial position and waiving taxes without any valid reason will only aggravate the situation. The plea the Cabinet took while waiving the taxes was that since there was no entry tax on bringing gold in the adjoining states, the taxes must be waived.
Officials have stated that since the entry tax has been merged into the GST, the pending taxes cannot be waived. Rather there is a clause in the GST to recover the pending taxes but not to waive it. Now, it remains to be seen how the government will dole out this favour to them.
Leader of the Opposition PK Dhumal had questioned the move and said if voted to power, the BJP would start a probe. He had even warned that the officials, who would implement the decision, would also have to face action. This seems to have put the officialdom on guard.
