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Custom duty on all fiber intermediates should be at 2%
26 Feb '07
3 min read
Having uniform excise duty across all the fibers will help eliminate loss of revenue to Government with different classification of items.
3. Accumulation of CENVAT Credit due to creation of new capacities.
The inverted excise duty structure, which still prevails, has put a lot of strain on the synthetic yarns & fibers units, especially those who made substantial investments to enhance their existing capacities, which the industry requires, to meet the target set by the government in terms of exports in the textile sector as well as looking to the future requirements of the domestic sector.
The blockage of such huge amount of cenvat in PLA account has put enormous strain on the working capital position of the synthetic yarns & fiber units, which needs immediate attention to maintain the continuity of operations.
To overcome the above situation where cenvat credit utilization is not possible, we pray that the central excise laws and cenvat laws to be suitably amended to the effect that non-utilized proportion of duty may be reimbursed to the assessee.
OR, alternatively, the government can introduce an excise certification/ exemption system where the manufacture should be allowed to procure his inputs without payment of duty to the extent of cenvat accumulation in the books of account.
4. National Calamity Contingency Duty (NCCD 1 percent)
Continued imposition of 1 percent NCCD on Partially Oriented Yarn (POY)and Fully Drawn Yarn (FDY) is extremely anomalous, considering that the other categories that have to bear this burden are "Tobacco", "Gutkhas", "Pan Masala" and "Motor Vehicles" one being a health hazard and the other still a luxury in India.
It is therefore requested that the levy of NCCD on Polyester Filament Yarns to be abolished immediately.
3. Accumulation of CENVAT Credit due to creation of new capacities.
The inverted excise duty structure, which still prevails, has put a lot of strain on the synthetic yarns & fibers units, especially those who made substantial investments to enhance their existing capacities, which the industry requires, to meet the target set by the government in terms of exports in the textile sector as well as looking to the future requirements of the domestic sector.
The blockage of such huge amount of cenvat in PLA account has put enormous strain on the working capital position of the synthetic yarns & fiber units, which needs immediate attention to maintain the continuity of operations.
To overcome the above situation where cenvat credit utilization is not possible, we pray that the central excise laws and cenvat laws to be suitably amended to the effect that non-utilized proportion of duty may be reimbursed to the assessee.
OR, alternatively, the government can introduce an excise certification/ exemption system where the manufacture should be allowed to procure his inputs without payment of duty to the extent of cenvat accumulation in the books of account.
4. National Calamity Contingency Duty (NCCD 1 percent)
Continued imposition of 1 percent NCCD on Partially Oriented Yarn (POY)and Fully Drawn Yarn (FDY) is extremely anomalous, considering that the other categories that have to bear this burden are "Tobacco", "Gutkhas", "Pan Masala" and "Motor Vehicles" one being a health hazard and the other still a luxury in India.
It is therefore requested that the levy of NCCD on Polyester Filament Yarns to be abolished immediately.
Fibre2fashion News Desk - India
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