VAT on liquor: Centre seeks report from Admn

Rodrigues had asked the inquiry officer to find out how the case had been initiated and whether any external influence was put on anyone. He had also directed Finance Secretary Sanjay Kumar to fix responsibilities on those who could have been at fault.

The inquiry report submitted by Finance Secretary has pointed that the proposal was not a step in the right direction. The report has further pointed that the proposal moved by UT Adviser Pardip Mehra was not legally feasible as no changes can be made in the Excise policy during the year.

Among the other points that the Administrator wanted the inquiry officer to find out was whether correct procedure was followed in moving the file. He also wanted to know whether any lapses were committed by the UT officials in dealing with the case at different levels.

He had said that the Administration did not follow Punjab but framed its own policy and added that the suggestion to increase VAT is not only fraught with legal implications, but has the potential of destabilising liquor trade in the union territory.

The Home ministry has now sought a detailed report from the UT Administration highlighting the procedural and legal lapses in the issue.