The Central Industrial Security Force (CISF), which has been guarding the Punjab and Haryana Civil Secretariat in Chandigarh for over a decade now, has threatened to withdraw its services, if both the governments failed to clear outstanding dues worth Rs 45 crore by August 31.

The amount included service tax and advance security deposit of three months on the security being provided by it to the states.

The CISF, earlier this month, had sent a strong-worded notice to the governments of Haryana and Punjab in this regard. According to CISF, while Haryana is required to clear an outstanding of Rs 23 crore, Punjab owes it Rs 22 crore. However, in a letter to the director general (CISF) under Union Ministry of Home Affairs, Haryana's Additional Chief Secretary (Home) Samir Mathur has rebutted its claims and clarified the government's position.

It stated that CISF is a central armed police force and clearly differentiated from private security agencies.

"In this case, it is providing safety and protection to the functioning of democratically elected governments under the Constitution. The Punjab and Haryana Secretariat is the seat of governance of the states of Punjab and Haryana from where the constitutional functions are discharged. It is difficult to conceive that service tax has been sought to be levied for security... when the states are paying deployment charges," the letter added.

On CISF's claim that Haryana owes it arrears worth Rs 6.47 crore and a penal interest of Rs 9.82 crore, the government said: "During reorganisation of the erstwhile Punjab state, the assets were divided in the ratio of 60:40, including the space and manpower deployed in the Secretariat building between Punjab and Haryana. ...during the period of deployment of ITBP, the cost was shared in the ratio of 60:40 and this pattern is continuing again from October 2009 till date."