Rule 44 — GAR
Original Rule Text
44. A commercial department or undertaking shall ordinarily charge and be charged for: any supplies and services made or rendered to, or by, other departments of Government.
This rule may be applied to particular units or particular activities of any: department even though the department as a whole may: not be a commercial department. Such a unit or activity: shall ordinarily charge for its services or its supplies, to, and may likewise be charged by, either the department of which it forms a part or any other departments.
NOTE 1:- Save: as otherwise provided in these rules, services rendered by: a: service department falling under sub-rule A
(a) of rule 421 in the normal discharge of its functions shall not be regarded as service rendered for the purpose of this rule.
NOTE 2:- The: supply of residential accommodation by: one department to the employees of another: shall not for: the purposes of the rules in this Chapter, be held to constitute a service rendered. In all such cases the rent charges for residential accommodation will be the rent recoverable under the rules for the time being in force from the persons actually using such accommodation.
The Central Water Commission and the Central Electricity Authority shall charge commercial departments in respect of advice tendered or: services rendered except in the following eases:-
(a) Where the advice tendered is based on the data already collected by the Commission or the Authority as part of its normal functions.
(b) Where the amount of recovery does not exceed Rs. 100/-provided that the work involved is not of a recurring nature.
What This Means
Rule 44 establishes the mirror-image rule to Rule 43, but for commercial departments: while service departments generally do not charge (Rule 43), commercial departments ordinarily must charge and be charged for all supplies and services they provide to or receive from other departments. This is consistent with their nature — they exist to generate a measurable financial result, and allowing free services would undermine their commercial accountability.
The rule extends this charging principle even within a larger department: if a specific unit or specific activity within a department is designated as commercial (even if the department as a whole is not), that unit must ordinarily charge for its services and may be charged for services it receives. This reflects the flexibility noted in Rule 42 — commercial classification can apply to parts of a department. The rule also carves out two specific exclusions from Note 2: the supply of residential accommodation by one department to another department's employees is not treated as a chargeable 'service rendered' — the rent rules for such accommodation apply directly to the occupying employee, not to the employing department.
Additionally, the Central Water Commission and Central Electricity Authority have a specific charging obligation towards commercial departments for advice and services rendered — with two exceptions: when the advice is based on data already collected by them as part of normal functions (no extra work needed), and when the recovery amount would not exceed Rs. 100 and the work is not recurring (too small to be worth the administrative cost of billing).
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Commercial departments ordinarily must charge other departments for services and supplies provided, and must also pay when they receive services from other departments.
- 2This charging principle applies to specific commercial units or activities within a larger non-commercial department.
- 3Note 1 exception: services rendered by Service Department category (a) functions (courts, defence, police etc.) in their normal discharge are not chargeable services.
- 4Note 2 exception: supply of residential accommodation by one department to another's employees is not a chargeable service — occupant's rent rules apply directly.
- 5Central Water Commission and Central Electricity Authority must charge commercial departments for advice and services, with two exceptions: advice based on existing data, and amounts not exceeding Rs. 100 for non-recurring work.
Practical Example
The Central Electricity Authority (CEA) is asked by the National Thermal Power Corporation (NTPC) — a commercial undertaking — to review the technical specifications for a new 800 MW supercritical unit at its Vindhyachal station. CEA must charge NTPC for this technical advisory service, since NTPC is a commercial undertaking and Rule 44 applies.
However, if part of CEA's advice is based on the national grid data that CEA routinely collects as its normal function (such as load flow analysis CEA already performs), that component is exempt from charges under the exception 'where the advice tendered is based on the data already collected by the Commission as part of its normal functions'. CEA charges only for the additional work done beyond its normal functions.
Separately, the CPWD accommodation colony next to a Ministry of Finance campus houses both Finance Ministry employees and (by allocation) some Public Works employees. The PWD does not charge the Ministry of Finance for accommodating Finance employees, nor does Finance charge PWD — under Rule 44 Note 2, residential accommodation is outside the scope of inter-departmental service charges. Each occupying employee pays rent as prescribed under the House Rent rules applicable to them.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
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This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.