Rule 54 — GAR

54. As between different departments of the same Government, the recoveries shall be classified as deduction from the gross expenditure except that such recoveries as are made by a commercial department e.g. Railways, Department of Posts and Department of Telecommunications or a departmental commercial undertaking (e.g. A.I.R.) should be treated as receipts of that department. Exception:—Recoveries of fees for purchase, Inspection etc., effected by the Central Purchase Organisations of Government of India (e.g. DGS&D Army Purchase Organisations of the Ministry of Defence) are treated as receipts of the Department concerned. NOTE 1:—Such recoveries realised by a non-commercial department (other than the Central Purchase Organisations of the Government of India) from another Department of the same Government shall be shown in the relevant Demand for Grant as "below the line" recovery under the appropriate major head of account. Recovery actually effected, irrespective of the year to which it relates, shall be adjusted in accounts in reduction of expenditure and exhibited in the schedule of recovery to be attached to the Appropriation Accounts of the year in which the recovery is effected. NOTE 2:—The term "recoveries" by a commercial department (viz. Posts, Telecommunications and Railways) or by a Departmental commercial undertaking (e.g. A.I.R.) for the purpose of this rule shall apply to recoveries in respect of services rendered to other departments in pursuance of the proper functions for which the department is constituted, that is to say, in the case of Department of Posts and Department of Telecommunications, recoveries shall be classified as receipts only when they are made in respect of Postal, Telegraphs or Telephone services rendered to the other departments. Where, a commercial department or a departmental commercial undertaking acts as an agent of another department for the discharge of functions not germane to the essential

purpose of the department, the recoveries shall be taken in reduction of expenditure. Classification of recoveries of expenditure on works in progress and transactions of stock and other suspense account