A Govt. Dept. must implement govt. policy

The Supreme Court last week stated that a government department must implement the industrial policy laid down by the government and should not devise its own policy, that too contrary to the Cabinet decision. The government must speak with one voice, the court stated in its judgment Llyod Electric & Engg Ltd vs State of Himachal Pradesh. "What is given by the right hand cannot be taken by the left hand," it remarked while allowing the appeal of the company holding that it was eligible for concessional rate in central sales tax. While the Cabinet had extended tax benefits up to 2013 for industrial units to attract investments, the department maintained that the company was not eligible for them as the notification was issued later and did not cover it. The high court upheld the interpretation of the department. Setting aside the judgment of the high court, the Supreme Court stated that the department cannot issue a notification contrary to the Cabinet decision on policy matters. Moreover, the department cannot deny the benefit because it delayed the notification consequent on the Cabinet decision. The company was eligible for the concessional rate at the rate of one per cent, and not two per cent on inter-state sales, the Supreme Court said.

Note: Therefore it can be said that departments notice being subject to Govt. notice, the Govt. notice/circular has precedence irrespective of the fact that the department has not issued a similar notice.

Articel referred: http://www.business-standard.com/article/opinion/govt-must-pay-for-officers-negligence-115090600684_1.html