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MATERIALS
FOR updation of government WEBSITE (
PARLIAMENTARY AFFAIRS DEPARTMENT ) CABINET
DECISIONS 09.09.2004 1.
Writing off Sales Tax on the Sale and Lease Back arrangement
between erstwhile OSEB and IDC of Orissa Ltd.
Approved. IDC had taken a loan from IDCOL out of the Steel Bond Fund and utilized the same to purchase the identified assets from OSEB, which qualified for 100% depreciation under Rule-5 of the Income Tax Rules. IDC leased back the assets to OSEB at a mutually agreed lease rental. It had been assumed that the sales tax exemption would be available to the above transaction as the arrangement is between the two State Public Sector under takings.
The sale and lease back agreement
between IDCOL & OSEB stipulated that, any tax to be levied on this
transaction will be to the account of OSEB. Unless sales tax exemption is
granted by Government, GRIDCO would have to pay sales tax on sale of
assets amounting to Rs.4.42 crores and also on lease rental amounting to
Rs.6.05 crores aggregating to Rs.10.47 crores as demanded by Sales Tax
Authority. Today, the Cabinet gave its nod to write off the Sales Tax
demands of Rs.10.47 crore payable by GRIDCO.
2.
Proposal to exempt certain goods from levy of Entry Tax.
Approved.
Post-facto approval of the cabinet was
accorded for allowing entry
tax exemption in respect of following five items in the public interest.
Sl.No.
Item
43
Pasteurised milk
64
Jaggery and Gur
68
Cycle, Cycle Rickshaw and
their Spare parts.
77
Dal and pulses
80
Dry Fish
Exemption Notification
under Section 6 of the Entry Tax Act has already been issued vide
Finance Deptt. Notification No.24087 dated 01.06.2004. 3.
Rationalization of Sales Tax Rates.
Approved.
As per the existing provision,
exemption of Sales Tax is admissible on the sale of handicraft goods only
when these are sold through authorized sale outlets of
Co-operatives/Government Agencies/KVI Commission/Board/Coir Board &
Handicraft Corporation.
In order to encourage the sale of
handicraft products manufactured in the State as well as the artisans
engaged in production of such handicraft items in an uniform manner, the
relevant provision in the existing Finance Deptt. Notification has been
amended w.e.f. 26.02.2004 by which sale of handicraft goods manufactured
in the State of Orissa has been exempted from levy of Sales Tax without
any stipulation/condition.
This will benefit both the organized
sector as well as individual artisans producing handicraft goods. 4.
Framing of Rules regulating method of recruitment and conditions of
service of Accountants, Accounts Superintendents and Assistant Controller
of Accounts in the office of the Controller of Accounts, Orissa,
Bhubaneswar.
This has been approved by the Cabinet.
Formal clearance of OPSC is to be obtained following which the
Rules can be notified. 5.
(A) Amendment
of provisions of IPR, 2001 relating to (i) Mega Projects and (ii) Negative
List. Approved.
(B)
Special Incentives for Mega Projects.
Approved.
In order to attract investments in
Mega Sector Projects specially on no mineral sectors, IPR 2001 needs
amendment for defining Mega Projects on various Sectors and also extending
special incentives keeping in view the overall situation prevailing in neighboring
States otherwise our State will loose competitiveness in
attracting large scale investments. Besides certain projects with huge
investment like Oil Refining with/without solvent extraction facility and
manufacture of spice with spice mark or AG mark products, are felt
necessary to bring under eligible list to bring out a rationality in all
types of projects. It is decided that the incentives to be extended to
Mega Projects are (1) Special Industrial Promotion Assistance linked with
Sales Tax. (2) Exemption from entry tax for into ports through Orissa Ports
from Foreign Countries. (3) Concessional C.S.T. for inter-state sale. 6.
Functioning of Single Window System for setting up Industries in
the State. Approved.
The Orissa Industries Facilitation Act
2004 aims to promote Industrial Development and facilitate new investment
by simplifying the regulatory framework and by providing for an investor
friendly environment in the State.
It was felt that expeditious
clearances of proposals relating to setting up of Industries is of prime
importance and therefore, Single Window Concepts was introduced in
IPR-2001. This concept will facilitate speedy implementation of Industrial
and other projects in the State by providing a single point guidance,
assistance to promoters, reducing procedural requirements, rationalizing
documents and minimizing inspection. For successful implementation
“Shilpa Jyoti” a contact point in IPICOL for Large and Medium projects
and “Shilpa Sathi” in all DICs for SSIs and Tiny Sectors will provide
required services to the promoters and also these contact points will have
interaction with various agencies and authorities for obtaining necessary
clearances and removal of bottlenecks. State Government’s nodal agency
IPICOL will facilitate setting up of Large and Medium Industries in the
State and DIC will function as Nodal Agency for Small & Tiny
Industries. 7.
Amendment of Orissa Industries Service Rules, 1985.
Approved.
In Orissa Industries Service Rules,
1985, four years service experience has been prescribed for promotion from
Class-II to Class-I (Jr.), Class-I (Jr) to Class-I (Intermediary) and
Class-I (Intermediary) to Class-I (Sr) of J.D.I. Subsequently the post of
JDI has been bifurcated into two grades such as JDI Level-II and JDI
Level-I as per F.D. Resolution No.32242/F. dated 22.8.1985. But, no
separate criteria for recruitment to the post of JDI Level-II and Level-I
has been prescribed in the OIS Rules, 1985. It has, therefore, been
decided by Govt. that four years of service experience in the grade of
Class-I (Intermediary) would be necessary for promotion to JDI Level-II.
Similarly, one year service experience in the grade of JDI Level-II for
promotion to JDI Level-I would be necessary. 8.
Amendment of thep Orissa Lokpal and Lokayuktas Act, 1995 (Orissa
Act 8 of 1995). Approved.
The pay and other perquisites of the
Lokpal are fixed keeping in view the pay and other perquisites of the
Chief Justice of Orissa High Court as per the provisions of Orissa Lokpal
and Lokayuktas Act, 1995 with effect from 29.08.2003, being the date from
which the present Lokpal have been holding office. The salaries of judges
of the High Courts have been revised after the 5th Pay Commission Report.
The Cabinet accordingly decided that the pay of the Lokpal should be fixed
equal to the pay of Chief Justice of Orissa High Court and the pay of the
Lokayukta should be equal to the pay of a judge of the High Court. It has
been decided to amend the Act accordingly. 9.
Proposal to file the Certificate Cases on deferred payment basis
without paying the Court fee at the beginning by the OSIC Ltd.
Approved.
The
Orissa Small Industries Corporation Ltd. is a State Govt. undertaking and
its dues have been declared Public Demand by Revenue Department. The
Corporation wants to file Certificate cases to realize Rs.7,13,26,306.22
under OPDR Act and for this purpose the Corporation shall have to pay
Rs.21,82,995/- as cost of Court fees to realize the said amount. As the
Corporation is facing sever finance hardship it has been proposed that
OSIC should file the Certificate Cases on deferred payment basis without
paying the Court fee at the beginning. But after recovery of the amount
from the Certificate Debter, the value of the Court fee shall be realized by the concerned Certificate Officer. 10.
Lease of Govt. land in favor of the North Orissa University,
Sriram Chandra Vihar, Takatpur, Baripada.
Approved.
The Registrar, North Orissa University
has applied for lease of Government land of Ac.98.84 in village
Hemachandrapur and Maharajpur under Baripada Tahasil for construction of
North Orissa University Campus free of premium which comes to
Rs.8,60,78,931/-.
As the North Orissa University has
been established to cater to the higher education needs of Mayurbhanj and
Keonjhar districts, Revenue Department have proposed to exempt premium
payable by the University. 11.
Proposal for a validating legislation to regularise the adhoc
appointment of one Assistant Director in Group-B Service of Textile Cadre
who was initially appointed as Stipendiary Engineer (Textile).
Approved.
To
regularise the Adhoc appointment of
Sri O.K. Gantayat, Assistant Director (Textiles) is appointed as
Stipendiary Engineer (Textile) through validation Act. 12.
Appointment of Shri Pratip Kumar Mohanty, IAS (Retired), Ex-Chief
Secretary, Orissa, as Member, Orissa Public Service Commission against a
vacant post. Approved. 13.
Re-constitution of Cabinet Sub-Committee for formulation of
allotment of Land Policy in respect of Bhubaneswar and reviewing the
matter of unauthorized constructions. Approved.
After
General Election to the State Legislative Assembly in April, 2004 a new
Council of Ministers assumed office. Hence, it was felt necessary to
reconstitute the Cabinet Sub-Committee with following Members : 1. Minister, 2. Minister, 3. Minister,
Finance
.....
Member 4.
Minister, 5. Minister,
The Cabinet has accorded post-facto approval to the same. 14.
Proposal for amendment of the Orissa Motor Vehicles Taxation Act,
1975. Approved. The Orissa Motor Vehicles Taxation Act, 1975 was enacted in the year, 1975 with the object to provide unified law relating to imposition of Tax and Penalty on Mtor Vehicles. The provision of section-4A of the said Act was amended during 2003 (Orissa Act-8 of 2003) for imposition of one time tax @ 5% of the cost of the vehicle on personalised vehicles. This amendment was aimed to fetch additional revenue to the State Exchequer. However, functioning of the amended provisions of the said Act has shown that the desired result has not been achieved due to certain deficiencies in the amended provisions of the said Act. The Cabinet, therefore, decided to bring further amendment under section-3, 3A, 4 & 4A of the said Act with a view to augment collection of more revenue to the State Government.
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