Settlement with ITC as per SC advice: FM

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New Delhi, April 5: Justifying Rs 803-crore revenue settlement with the tobacco major ITC, finance minister P Chidambaram said that it was done in accordance with the ‘suggestions’ made by the Supreme Court during the course of litigation.

The minister, talking to newsmen on Tuesday said, "With the settlement, we are happy that a long pending dispute has been resolved and doubly happy that we have been able to resolve it in accordance with the suggestion that fell from the apex court".

Mr Chidambaram said that following the Cabinet decision of March 16 "we told ITC that we are willing to accept the offer provided they go through the process of recording the settlement in proper form." Later a memorandum of settlement was signed between revenue secretary and ITC.

The settlement has been filed before the adjudication officer, who would be passing the order after accepting the settlement, the finance minister said. As per the settlement, the government would give up claims for additional Rs 450 crore excise and the company will not seek a refund of Rs 350 crore which it had already paid to the tax department as interim deposit pending settlement of the Rs 803 crore excise dispute. During the hearings in 2003-04, the apex court had suggested settlement on excise row. u

But the court later decided in favour of ITC following which the government promulgated an ordinance on December 25 seeking to override the court order.