B-153756, OCT. 15, 1964

B-153756: Oct 15, 1964

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

TO AIR-INDIA: REFERENCE IS MADE TO YOUR LETTERS. DEDUCTED FROM A LATER BILL TO SATISFY AN OVERCHARGE IN THAT AMOUNT CONSIDERED TO HAVE BEEN MADE ON BILL NO. IT HAS BEEN DETERMINED THAT YOU ARE ENTITLED TO A REFUND OF $119. 08 OF THE $409.11 DEDUCTED TO RECOVER AN OVERCHARGE IN THE PAYMENT OF THAT BILL WHICH WAS PAID IN JULY. THE DETERMINATION THAT YOU WERE OVERPAID $130.60 IS BELIEVED TO BE CORRECT. THE TOTAL AMOUNT ON THE OVERCHARGE NOTICES ISSUED TO AIR-INDIA ON THESE THREE BILLS WAS $632.95. OF WHICH $612.51 WAS RECOVERED BY DEDUCTION FROM BILLS FOR SUBSEQUENT SERVICES. OUR TRANSPORTATION DIVISION WILL ISSUE SETTLEMENT ALLOWING YOU A NET AMOUNT OF $191.88 ($93.24 PLUS $119.08 LESS $20.44).

B-153756, OCT. 15, 1964

TO AIR-INDIA:

REFERENCE IS MADE TO YOUR LETTERS, FILE NY/ACCTS/7-/2D) (8780, CONCERNING YOUR CLAIMS FOR THE RECOVERY OF SUMS DEDUCTED BECAUSE OF OVERCHARGES FOUND IN THE PAYMENT OF YOUR BILLS NO. DCA/50, MAD/961 AND DEL/668. YOU QUESTION THE PROPRIETY OF THE DEDUCTION ACTION.

UPON RE-EXAMINATION OF THE ACCOUNTS INVOLVED IT HAS BEEN DETERMINED THAT REFUND SHOULD BE MADE TO YOU OF THE $93.24,

DEDUCTED FROM A LATER BILL TO SATISFY AN OVERCHARGE IN THAT AMOUNT CONSIDERED TO HAVE BEEN MADE ON BILL NO. DEL/668 FOR SERVICES PERFORMED IN 1957. IN CONNECTION WITH BILL NO. MAD-961, IT HAS BEEN DETERMINED THAT YOU ARE ENTITLED TO A REFUND OF $119,08 OF THE $409.11 DEDUCTED TO RECOVER AN OVERCHARGE IN THE PAYMENT OF THAT BILL WHICH WAS PAID IN JULY, 1960.

AS TO THE BILL, NO. DCA/50, THE DETERMINATION THAT YOU WERE OVERPAID $130.60 IS BELIEVED TO BE CORRECT. IN CONNECTION WITH THE OVERCHARGE OF $130.60 STATED IN GENERAL ACCOUNTING OFFICE FORM NO. 1003, DATED MAY 17, 1962, WE NOTE THAT $110.16 HAS BEEN RECOVERED BY DEDUCTION, THUS LEAVING AN UNCOLLECTED BALANCE OF $20.44. THE TOTAL AMOUNT ON THE OVERCHARGE NOTICES ISSUED TO AIR-INDIA ON THESE THREE BILLS WAS $632.95, OF WHICH $612.51 WAS RECOVERED BY DEDUCTION FROM BILLS FOR SUBSEQUENT SERVICES. OUR TRANSPORTATION DIVISION WILL ISSUE SETTLEMENT ALLOWING YOU A NET AMOUNT OF $191.88 ($93.24 PLUS $119.08 LESS $20.44).

YOUR OBJECTION TO THE DEDUCTION ACTION WHICH HAS BEEN TAKEN IS BASED ON YOUR VIEW THAT ANY ADJUSTMENTS IN YOUR INVOICES SHOULD BE EFFECTED BY THE USE OF CREDIT NOTES OR REFUNDS FROM YOUR OFFICE. HOWEVER, OUR METHOD OF ADJUSTMENT MUST BE

PURSUANT TO THE LAWS OF THE UNITED STATES. IN THE PRESENT CASE THE THREE BILLS INVOLVED WERE PAID UPON PRESENTATION BEFORE AUDIT IN THE GENERAL ACCOUNTING OFFICE. PAYMENT IN THIS MANNER IS AUTHORIZED BY AN ACT OF CONGRESS, KNOWN AS THE TRANSPORTATION ACT OF 1940, SECTION 322, 54 STAT. 955, 49 U.S.C.A. 66. THIS ACT WAS AMENDED BY THE ACT OF AUGUST 26, 1958, PUBLIC LAW 85-762, 72 STAT. 860. UNDER THE MENTIONED PROVISIONS OF LAW THE RIGHT IS RESERVED TO THE UNITED STATES GOVERNMENT TO DEDUCT THE AMOUNT OF ANY OVERCHARGES FROM ANY AMOUNT SUBSEQUENTLY FOUND DUE THE COLLECTING CARRIER.

THE LAW APPLIES TO ANY COMMON CARRIER SUBJECT TO THE INTERSTATE COMMERCE ACT, AS AMENDED, OR THE CIVIL AERONAUTICS ACT OF 1938, NOW THE FEDERAL AVIATION ACT OF 1958. SINCE AIR-INDIA IS A COMMON CARRIER SUBJECT IN CERTAIN MATERIAL RESPECTS TO THE CIVIL AERONAUTICS ACT OF 1958 AND THE FEDERAL AVIATION ACT OF 1958, THE UNITED STATES MAY PROPERLY RECOVER BY DEDUCTION ANY OVERCHARGES NOT VOLUNTARILY REFUNDED BY THE CARRIER. WHERE THE OBJECTIONS OF AIR-INDIA TO REQUESTS FOR REFUND WERE FULLY ANSWERED BY OUR OFFICE AS SEEMS TO HAVE BEEN THE CASE IN CONNECTION WITH THE BILLS NOW IN DISPUTE, AIR-INDIA COULD HAVE REFUNDED THE AMOUNT REQUESTED AND THEN FILED A RECLAIM.

THE SETTLEMENTS TO BE ISSUED BY OUR TRANSPORTATION DIVISION WILL SHOW THE BASIS USED TO DETERMINE THE ALLOWABLE CHARGES WHERE DISPUTED. IF SUCH SETTLEMENTS PROVE UNSATISFACTORY, YOU MAY REQUEST A REVIEW OF THE SETTLEMENTS BY APPROPRIATE LETTER SETTING FORTH YOUR OBJECTIONS TO SUCH SETTLEMENTS.