Pension, excise edicts likely to lapse

The Pension Fund Regulatory and Development Authority and the Central Excise Laws (amendment and validation) Ordinances hang fire as there is only a day left before Parliament takes a three-week recess.

While the PFRDA edict has been introduced in the form of a Bill and is expected be referred to a parliamentary standing committee, the excise Ordinance is in danger of lapsing if a Bill is not introduced on Thursday.

The controversial excise Ordinance has changed the definition of "retail price" with retrospective effect, thereby imposing an additional Rs 450 crore (Rs 4.5 billion) excise demand on ITC.

The excise evasion charge on the company, amounting to around Rs 800 crore (Rs 8 billion), has been pending for nearly 17 years.

While ITC had paid the government Rs 350 crore (RS 3.5 billion), the Supreme Court

gave a ruling in favour of the company. The government consequently issued an Ordinance on January 25 to counter the ruling, and is now seeking the remaining dues of Rs 450 crore (Rs 4.5 billion).

According to the Constitution, an Ordinance has to be passed by both Houses of Parliament within six months or whenever Parliament is called to a session, whichever is earlier. Once a session is under way, an Ordinance lapses in six weeks if the Houses fail to okay it.

If an Ordinance has been introduced, as in the case of the PFRDA, the government has an option of moving it to a standing committee, where it can be considered as a Bill.

The PFRDA Ordinance is set to lapse on April 8.

North Block officials are tight-lipped over the fate of the excise Ordinance. "We are working on something. You will come to know soon," said an official.