VAT dispute: Vehicles go off CSD shelf

The issue started over the sale of two-wheelers and four-wheelers from the CSD at Chandigarh in July. The UT Administration demanded that the payment be made at Ambala depot and the delivery of vehicles be made from Chandigarh. The dealers were,however,asked to pay 12.5 per cent VAT instead of prevailing 4 per cent in Chandigarh. Till then,the dealers were paying only 4 per cent VAT on the sales.

The administration justified the move saying that it would rationalise the VAT structure. “It is an attempt to standardise the interest rate transfer of VAT across all the states. While the dealers receive the payment against their goods from Haryana (or any other state),they pay only 4 per cent VAT applicable in Chandigarh,” said the UT Secretary (Finance) Sanjay Kumar.  

The dealers,however,protested against the hike and stopped delivering automobiles to the persons carrying authority letters from the CSDs.

Subsequently,CSDs also refused to accept the orders for these goods. The countersigning authorities like Zila Sainik Board in case of retired service personnel also stopped issuing the authority letters for these goods.

According to the CSD rules,the AFD (Against Firm Demand) Category-I items are not procured at depots but arranged by the CSD and collected by consumers directly from dealers. Products like refrigerator,television,washing machine,two-wheelers and four- wheelers are included in AFD Category-I items.

Due to the dispute,the consumers are at the receiving end. “What is the objective of CSD service when we are not authorised to buy products. Since Chandigarh has a high percentage of defence personnel,the administration should make efforts to resolve the dispute at the earliest,” said Brigadier (Retired) Inderjeet Singh .

A Group Captain of Air Force said,“After waiting for three months with all the formalities completed,I decided to buy a car from Karnal. While I am serving at Chandigarh,I have to get the delivery from Karnal and visit the city for after-sale service. This would result in physical as well as mental harassment for me and other serving officers who have to follow the same procedure.”  

CSD rules on selling consumer goods
AFD (Against Firm demand) items like refrigerator,television,washing machine,two-wheelers and four-wheelers are not available through CSD. The delivery of these goods was though made by the dealers in Chandigarh,the payment was made at the nearest depot of Ambala.