The state government took a tough stand on Day 1 of the strike by petrol dealers, saying sales tax on diesel cannot be cut by even 1 per cent.
Surendra Gangan & Gouri Shah
MUMBAI: The state government took a tough stand on Day 1 of the strike by petrol dealers, saying sales tax on diesel, the issue that sparked the strike, cannot be cut by even 1 per cent, and threatening action against them under the Essential Commodities Act, 1955.
“Although sales tax in the state is the highest in the country, it cannot be decreased,” Sales Tax Commissioner BC Khatua said. “The state had assured dealers in February that it would adjust taxes with the next hike in prices of petrol and diesel. The promise was kept in June.”
The dealers, however, were unfazed by the state’s unyielding stance and its caveat about invoking the law against them.
After deliberating with their lawyers on the course of action, the Petrol Dealers’ Association of Mumbai (PDAM) decided to avert legal action by selling their existing stocks. “According to the Essential Commodities Act, the government can only take action against us if we have the product but refuse to sell it,” said Ravi Shinde, president, PDAM.
Shinde said that after fuel supply is exhausted, the authorities cannot force dealers to buy a product they can’t afford. “Nor can they haul us up for not stocking it,” he said.
According to legal experts, the association’s stratagem is likely to buy it ample time, especially in an environment where public opinion is going to be the determining factor. “This seems to be a well thought-out decision,” said Raju Z Moray, advocate and civic activist. “The state government cannot be seen as not taking any action. What they may do, after consulting the advocate general, is take action that is not questionable or likely to be challenged in court,” Moray said. Only such a move, he said, may prevent the crisis from escalating.
Meanwhile, Union Petroleum Minister Murli Deora urged the dealers to call off their strike. “I am trying to arrange a meeting of all parties concerned,” he said. “I will be talking to the association as well as CM Vilasrao Deshmukh and FM Jayant Patil very soon.”
The state government, however, plans to seek the Centre’s permission to keep open all 619 consumer petrol pumps, which are reserved for certain consumers, like the BEST or the MSRTC, in the state. This figure includes 38 pumps in Mumbai and Thane. Maharashtra will also ask the Centre’s consent to keep open 166 (30 in Mumbai) petroleum company-owned pumps.
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