Rates Circular No.23 of 2003

Government of India
Ministry of Railways
Railway Board

The General Manager (Comml),
All Indian Railways.

             Sub:  Levy and charging of freight in respect of Military Traffic at correct rates - Audit Para No.3.1.7 appearing in C&AG's Report No.9 of 2000.

A copy of Audit Para No.3.1.7 appearing in C&AG's Report No.9 of 2000 is enclosed.  The Audit Para is self-explanatory to indicate the incorrect charging of freight in respect of Military special trains.  The contention of the Audit is that in respect of Military special trains consisting of wagons equivalent to 40 or more 4-wheeler wagons, the freight is chargeable at Vehicle Km. Rates, as per Rule 501(I) of Military Tariff, whereas the Railways have incorrectly charged the freight at wagon Km. Rate. 

On investigation by Northern Railway, it has been found that Audit observations are tenable and correct.  This is a serious lapse on the part of the Railways. 

All the Railways are hereby directed to ensure, that freight is correctly charged in respect of Military consignments, strictly as per extant rules and there should not be any chance for occurrence of undercharges in such cases.  The internal check by Accounts and Commercial staff should be intensified and all cases of Military Traffic may be reviewed.  All the Railways are requested to quickly recover the undercharges wherever noticed or pointed out to them. 

A copy of instructions issued by the Railways should be endorsed to Railway Board, for information and record.