The Commerce Ministry has lost the legal battle with Textile Ministry over ''right to administer Research and Development (R&D) support to textile sector''.
Sources told Business Recorder that the two ministries were having a legal bout over R&D controversy, but the Law Ministry stamped out Commerce Ministry saying that since the subject of R&D support had been allocated to Ministry of Textile Industry, the administration of this subject be transferred to it.
"Draft order, proposed to be issued by Textile Ministry, is perfectly legal and does not suffer from any jurisdictional infirmity," sources quoted Law Ministry as saying.
However, Commerce Ministry has challenged the observation of Law Ministry by sending the case to Cabinet Division which, one official said, was the right forum to decide such disputes. Giving background, sources said that Commerce Ministry, which is uneasy since the creation of Textile Ministry, had approached Law Ministry, claiming that the subject of R&D support in textile sector belonged to Commerce Division.
The stance of Commerce Ministry was that imports and exports across customs frontiers are a subject allocated to it under the Rules of Business, 1973 and it is competent to issue statutory rules and orders (SRO) involving imports and exports invoking its powers under section 3 of Imports and Exports (Control) Act 1950. The ministry claimed that the Act has not assigned to the Ministry of Textile Industry.
The Law Ministry said that the subject R&D support to textile sector is aimed at facilitating and supporting the textile sector. It seems pertinent to point out that the Ministry of Textile Industry came into existence on May 9, 2005, pursuant to the notification S.R.O. 430(1) 2005, and subjects related to textile industry were allocated to it, sources quoted the Law Ministry as saying.
It further said that the subjects allocated to the Textile Industry Division are enumerated at item 29A reads as follows: "Training, skill development, research for quality improvement and productivity enhancement throughout the production/valuation change".
In view of these provisions, it transpires that R&D support to textile sector is the administrative concern of the Textile Ministry, the sources quoted Azam Warraich, Additional Secretary Law as saying. "No doubt, administration of Imports and Exports (Control) Act, 1950 has not been assigned to the Textile Ministry but the subject of R&D support to textile sector has been allocated to it," Law Ministry added.
However, Law Ministry has suggested that as the issue raised by the Commerce Ministry basically relates to the interpretation of entry 7 of item 29 A of the schedule II to the Rules of Business, 1973, the Commerce Ministry, if it so liked, may seek interpretation of the Cabinet Division.
"If there still remains any legal issue to be resolved we will be glad to render necessary assistance to the Commerce Ministry as and when desired," Additional Secretary, Law said. Sources said that Commerce Ministry has now taken up the issue with the Cabinet Division.
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