PAC grills Law Secretary on AG's opinions; unhappy with reply

NEW DELHI: Parliament's Public Accounts Committee (PAC) today questioned the Law Secretary over two "contradictory" opinions of the Attorney General on a CAG report, with several members expressing unhappiness with his reply.

AG G E Vahanvati could not appear before the Committee as he was learnt to be busy with his court schedule.

The PAC had summoned the two over the AG's "contradictory" opinions on a CAG report which said expenditure on interest payment on tax refunds was in contravention of constitutional provisions.

Law Secretary Brahma Avatar Agrawal is learnt to have defended the AG's opinions saying that the country's top law officer gave a fresh legal opinion based on the new situation which had evolved after going through certain aspects.

In his first opinion, the AG supported CAG's view that expenditure on interest payment on refund of taxes was in contravention of Constitutional provisions. But in his revised opinion, he said the Central Board of Direct Taxes (CBDT) was not at fault.

Some members said after the meeting that the Law Secretary failed to explain the new aspects which Vahanvati considered while giving his fresh opinion.

"We are not at all happy with the reply. Now only the AG can clear the air on the issue," a member said.

Agrawal also justified the second opinion of the AG which said that interest component is not an expenditure.

PAC Chairman Murli Manohar Joshi wanted to know how Vahanvati interpreted the Constitution in a different way in his second opinion, but Agrawal is understood to have not answered the question.

Agarwal was summoned as the PAC had earlier sought Law Ministry's opinion on the issue. But the ministry referred the matter to the country's top law officer.