Excelsior Correspondent
JAMMU, Aug 18: Association of Industries (AoI), Gangyal, Jammu has expressed concern over abrupt withdrawal of the quantum of the previous central incentive and appealed the State Government not to allow the same.
While welcoming the announcement by the Central Government in granting relief by way of partial refund its share of GST to eligible units in J&K, AoI Gangyal in its meeting held here today under the chairmanship of Rajesh Jain, AoI president, said preliminary reading of the announcement indicates that the entire North-Eastern States along with Uttranchal, Himachal Pradesh and J&K have been clubbed in one category in the announced package of incentives.
“The Central Excise notification 01/2010 was alive and operational for existing and new industry in J&K State. The impact of this abrupt withdrawal of the existing excise duty notification which was alive till 06-02-2020 amounts to promissory estoppels and will adversely impact the existing industry and will discourage fresh investment in new industry”, they said, adding small SSI units earlier working in excise exemptions will not be able to avail new package of incentives, as they have been rendered ineligible.
The AoI members said that the earlier central excise exemption package operative in J&K allowed 100% refund of cash ledger within a prescribed ceiling of value addition. This now has been reduced and will be available for the balance period of 10 years of individual units, they added.
“It needs to be realized that previously small units under Rs 1.50 crore turnover were exempted from excise duty and accordingly were able to compete with larger exempted units. Now all these units are ineligible for any central incentives and will be disadvantageously placed against eligible units”, they alleged.
The AoI appealed Union Finance Minister Arun Jaitely to consider their request to grant of incentives to all existing units, under substantial expansion and all new industrial units upto 2027 with full refund. The Association further appealed Chief Minister Mehbooba Mufti and Minister for Industries and Commerce, Chander Parkash Ganga to intervene personally and not to allow abrupt withdrawal of the quantum of the previous central incentiveS and cover all existing and new industry.
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