Circular No. 20/20/94-CX
dated 10/2/94

Government of India
Ministry of Finance, Department of Revenue,
Central Board of Excise & Customs, New Delhi

Subject :  Procedure for settlement of disputes with Public Sector Undertakings – Regarding

Reference is invited to Board”s D.O.F. No. 275/68/91-CX.8A (Pt.) dt. 17.10.92 enclosing a copy of O.M. No. 53/3/91-Cab. dt. 31/21/91 issued by the Cabinet Sectt.

2. I am directed, in this regard, to state that the matter was discussed by the Committee of Secretaries on 11.11.93. Who have decided that the Public Sector Undertakings should first try to resolve the disputes through discussions with the Chief Commissioners / Principal Collectors. The Department of Revenue agreed to issue suitable instructions. It was also decided that Department of Public Enterprises shall impress upon the Public Sector Undertakings to narrow down the real issues in consultation with the Chief Commissioners/Principal Collectors.

3. I am further directed to say that with a view to resolve such disputes as may arise in future through discussions with the Senior Officers of the Public Sector Undertakings the following procedure should be followed :

4. When an issue relating to a Public Sector Undertaking arises  and issue of Show Cause Notice is proposed : 

(a) The Asstt. Collector/Deputy Collector concerned should send a brief summary of the points involved to the local General Manager/Chief Executive of the concerned Unit and to the Collector ;

(b) The collector should hold a meeting with the General Manager Chief Executive with a view to resolve the dispute through mutual discussion within  two weeks of receipt of such communication ;

(c) In case the dispute is not so resolved, The Collector should send the facts of the case and report on his discussion held on the case to the Principal Collector;

(d) The Principal Collector shall within 4 weeks of receipt the Collectors report hold a meeting with the Chairman/Managing Director of the Public Sector Undertaking to resolve the matter.

5. It is also clarified that the above procedure should not preclude issue of show cause notice within the relevant time-limit, which should be proceeded, with notwithstanding the bilateral discussions. If the procedure as outlined above does not result-in-any satisfactory settlement, the process of adjudication in accordance with law may be completed as usual.

(J P Singh)
Under Secretary to the Govt. of India

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