The Hindu : National : "Appeal" over ITC duty due causes a stir

Online edition of India's National Newspaper
Tuesday, May 03, 2005

National

National

"Appeal" over ITC duty due causes a stir

Special Correspondent

NEW DELHI: Although the Centre has recently resolved the excise duty payment problem with ITC Limited in an out-of-court settlement, the issue cropped up in the Lok Sabha on Monday causing a furore in the House.

Giving details about the compromise settlement with ITC by which the Centre could keep the amount of Rs. 350 crores that was paid by the tobacco major, the Finance Minister, P. Chidambaram, while reply to the discussions on the Finance Bill, said two senior leaders of the NDA had requested him to withdraw the Ordinance that was promulgated to extract the dues.

"Two very respected NDA leaders had written to the Government that the Ordinance is unjust and be withdrawn. Had we acted on their advice, we would have lost Rs. 350 crores," Mr. Chidambaram said.

This remark led to members from the Treasury benches getting up and asking the Finance Minister to "expose" the names of the two leaders.

The Finance Minister, however, did not oblige and the Opposition members went totally silent on the issue. The uproar by the ruling part coalition members angered the Speaker, Somnath Chatterjee, who threatened to adjourn the House at one point.

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