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Textile mills misusing excise sop Thursday, September 27, 2001

TIMES NEWS NETWORK
AHMEDABAD: The duty exemption granted to hand printing and processing textile units by the Central Excise department is being widely misused by many mills in and around the city, keeping the department on its toes for the duty evaders.

The department (Ahmedabad circle) is on the look out for those mechanised units that have avoided registration to enjoy the benefits of the sop.

The department has so far detected seven such cases of evasion worth Rs 75 lakh and have been able to recover the entire amount.

The zonal office, comprising six superintendents and 16 inspectors, is on the look out for many more such units around the Narol, Piplej and adjoining areas, says a senior official of the preventive wing.

While the hand processing units have been exempted from paying any duty on the finished products, the mechanised units have to pay duty at 16 per cent on the cost price. "Due to the huge difference in costs, there are number of bigger mechanised units which operate under the cover of hand processing units," says an official in the anti-evasion wing.

The department has so far detected evasion to the tune of about Rs 7 crore, out of which Rs 3.5 crore have been realised. "The evasions were detected during 150 raids conducted in various factories, godowns in and around Ahmedabad," an official confirmed.

In wake of the relief, owners of the hand processing units are exempted from getting their firms registered with the department. As a result of this, it is very difficult to find out which are the units that are actually using machines and evading the duty, officials in the department said. "Due to staff shortage of about 40 per cent, raiding a particular unit is a long tiring process at times," an official said.

News Source : The Times of India [India's best Newspaper]

 

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