Row over selecting firm for digital fireworks

Thrissur: The district administration here has courted a controversy by selecting a digital firework firm from Athani here which allegedly does not have a licence to either store or sell materials related to digital fire show.  It has also not done registration  to pay sales tax to  the state or the central government.

The firm was selected to hold the first-ever digital show at Thekkinkkad Maidan on Saturday night after the Pulikkali fest.  When the sealed covers of four quotations were opened by the district finance officer at the collectorate on Monday afternoon,  the firm from Athani,  which quoted the lowest rate of  Rs 5,21, 500, was given the contract. But it  did not have the licence to store the finished products and details of Tax Payer Identification Number (TIN) or CST (Central Sales Tax).

A  company from Mulamkunnathukkavu contested the decision citing that the Athani firm did  not have the tax details in its quotation  which  was for Rs 5, 44,00, including  15 per cent tax.  If that is waved  by the collector on the basis that the fire show is a public event,  the show can be conducted for  Rs 4, 75, 300, they said.

They also said that if the Athani firm was given the contract, the government would incur  monetary loss in terms of tax. But the district administration said they were  going for the lowest bid.

It was for the first time that a government agency had invited  quotations for a firework show.  Collectorate officials said  that none in Kerala had  licence for conducting such digital shows.

But the officials of the firms that lost the bid said that as the Athani company had not done TIN and CST registration,  there was a possibility of unauthorized products  being used for the event.