2013 (2) TMI 939 - HC - VAT and Sales Tax

Petition Against Tax Board's Outsourcing Policy Dismissed; Tribunal Finds Decision Economical and Efficient.

Laxmi Prasad Dubey & others Versus Union of India & others

The HC dismissed the petition challenging the CAT's decision to uphold the Central Board of Direct Taxes' outsourcing policy. The Tribunal found the ... - Issues involved: Challenge to order of Central Administrative Tribunal dismissing Original Application u/s Article 227 of the Constitution regarding outsourcing of services by Central Board of Direct Taxes.Summary:The petitioners, claiming to be daily wage workers, challenged the decision of the Central Board of Direct Taxes to outsource services like data entry, typing, cleaning, and security on a contract basis. The decision was based on the Department of Personnel & Training instruction and General Finance Rules permitting outsourcing for economy and efficiency. The petitioners feared discontinuation of their services and filed Original Application No.746/2011 before the Tribunal, which was dismissed. The Tribunal held that the decision to outsource was a policy decision in line with GFR-178 and not open to challenge solely on the grounds of potential retrospective enforcement affecting employment. As no specific removal order was issued to the petitioners, the application was deemed premature. The petitioners failed to provide appointment orders, and the respondents confirmed no such orders were issued. The nature of the petitioners' relationship with the respondents regarding service terms was unclear, and the respondents were within their rights to outsource services for economy and efficiency. The petition was dismissed, and the interim order in favor of the petitioners was vacated.