Rule 124 — GFR

Rule 124 Principles for division of Departments for purposes of inter-departmental payments. For purposes of inter- Departmental payments, the Departments of a Government shall be divided into service Departments and commercial departments according to the following principles: -

(i) Service Departments-These are constituted for the discharge of those functions which either -

(a) Are inseparable from and form part of the idea of Government e.g. Departments of Administration of Justice, Jails, Police, Education, Medical, Public Health, Forest, Defence; or

(b) Are necessary to, and form part of, the general conduct of the business of Government e.g. Departments of Survey, Government Printing, Stationery, Public Works (Building and Roads Branch), Central Purchase Organisation (Director- General of Supplies and Disposals, New Delhi).

(ii) Commercial Departments or Undertakings.- These are established mainly for the purposes of rendering services or providing supplies, of certain special kinds, on payment for the services rendered or for the articles supplied. They perform functions, which are not necessarily governmental functions. They are required to work to a financial result determined through accounts maintained on commercial principles.