i)

Misinterpretation of existing Excise rule

ii) Insistence of permission by excise authority when not stipulated
iii) Extension of exemption of duty facility for supply to another exporter
iv) Facility of clearance of goods from job workers premises without payment of duty.
v)

Non availability of input stage rebate to exporters

All these shortcomings have been brought to the attention of the MOT to consider the above cases & advise CBEC to make suitable changes in the concerned notifications or provisions, so that the manufacturers or exporters do not encounter difficulties in manufacturing & producing for export purpose.

(b)

A critical study on Cenvat V/s. VAT system has been made, bringing out certain shortcomings for consideration, before implementation of the proposed VAT system.

(c)

A representation was made for Terry Towels falling under the chapter 63 mainly manufactured in Solapur. These items were subjected to excise duty until excise duty was removed on all textile items from July, 2004. In respect of this item, excise duty even prior to July, 2004 were exempted upto the limit of Rs. 25 lakhs, cleared from the units under the notification no.36/2003-CX dated 30/4/2003 and no.47/2003-CX dated 17/5/2003.[dtd.7.2.2005 to the member (Excise) CBEC]
[Levy of Excise duty on preparatory processes undertaken in respect of towels prior to July, 2004]

(d)

A representation was made on Procedural reforms in excise & service matters.

VII)

DRAWBACK

(a)

Suitable representations for amendments were made to the Department of Revenue in the customs notifications so that manufacturer of cotton made-ups registered with the concerned Council can claim the benefit.

(b)

Drawback claims remained pending due to non-receipt of required fund in time from the Govt. by the customs drawback department. Suitable representations were made earlier to the Department of Revenue to ensure flow of funds to the drawback department to enable them to make the payment in respect of drawback claims.

VIII)

VALUE ADDED TAX

a)

The Empowered Committee of State Finance Ministers has issued a White Paper on State Level Value Added Tax on 17th of January, 2005. In the said paper, it was mentioned that the VAT scheme will come into effect from 1st of April, 2005 in all the states except state of Uttar Pradesh.

(b)

The Council had made suggestions on VAT to the Government.

IX)

TECHNOLOGY UPGRADATION FUND SCHEME [TUFS]

(a)

The Govt. has set up an Inspection Committee for various regions for the purpose of inspection of machinery under the 20% Capital Subsidy Scheme. A certificate shall be issued for all items of machinery under the aforesaid scheme, which shall be signed by all the members of the inspection team, duly countersigned by the authorised signatory of the unit regarding his authentication. The PDEXCIL organised the nomination of its members to the Inspection Committee.

(b)

A communication was addressed to the MOT regarding difficulties faced by members in getting adequate funds due to various reasons for the purpose of carrying out modernisation programme by the textile units under the TUF scheme.