Pakistan Sugar Mills Association, Sindh Zone (PSMA-SZ) has requested the Sindh Cane Commissioner to withdraw the advice to the sugar mills to deposit the surcharge at the rate of 0.15 paisa per 40 kilograms with effect from 1991-92 to date with the government treasury.
The Cane Commissioner has written a letter to the Provincial Secretary, Agriculture, endorsing a copy to the sugar mills, stating that during the audit of receipts of Sugarcane Development Cess (SDC) for the 2002-03 crushing season, the audit party observed that the withdrawal of surcharge on cess by the Sindh cabinet was quite illegal till the decision of the cabinet meeting was approved by the provincial legislature or an ordinance was issued by the Sindh Governor.
The audit party, therefore, observed that the decision of Sindh cabinet meeting, held on July 8, 2002, did not have any legal effect and had lost its legal validity.
It also requested that necessary demand notice might be issued to the concerned management of sugar mills and surcharge on cess might be recovered under intimation to the audit.
The PSMA-SZ, in its letter, pointed to the Cane Commissioner (CC) that the advice was arbitrary as it had ignored the following facts:
-- Sindh government cabinet meeting decision of July 8, 2002.
-- Several meetings were held and committees constituted to resolve the issue of sugar industry and time to time advises from the office of the Cane Commissioner, Sindh, to sugar mills for refund of surcharge to the sugarcane growers.
-- Reiteration of it in the Sugar Control Board (SCB) meeting held on January 7.
-- Several sugar mills, having already made disbursement of surcharge to sugarcane suppliers and others already doing it.
The PSMA-SZ further observed that the office of the Cane Commissioner is required to support and facilitate the sugar industry, a major constituent, rather than to compound the problems.