Excelsior Correspondent
JAMMU, May 23: Bari Brahmana Industries Association (BBIA) has expressed serious concern over illegal collection of Excise Duty by Excise Department at Lakhanpur check post on the import of industrial chemicals by industrial units.
In a meeting of the Association held here today under the chairmanship of Lalit Mahajan, president BBIA in presence of Ajay Langer, general secretary, Vivek Singhal Secretary, Viraaj Malhotra treasurer BBIA and others, the members discussed the illegal collection of Excise Duty by Excise Department at Lakhanpur on the import of industrial chemicals.
During discussions, the members present from Pharma/Pesticides and other units raised serious concern in respect of illegal collection of Excise Duty by Excise Department at Lakhanpur check post in respect of import of Industrial chemicals by misinterpreting the Clause No. 14B of the Excise Policy 2019-20of JK Excise Act.
It is pertinent to mention here that as per Clause No. 14-B of the Excise Policy 2016, the duty of Rs 10-00 P/Ltrs shall be payable on Rectified Spirit, Alcohol, Denatured Spirit and Molasses and by misinterpreting the above clause forcefully collecting the Excise Duty of Rs 10=00 P/ Ltrs on the Import of industrial chemicals like IPA/Butanol and other chemicals being used in the manufacturing of medicinal, toiletry, pharma and other products.
BBIA submitted that the Industrial units importing the industrial chemicals under GST Act of Govt of India by paying the Goods & Service Tax @ 18% and it is very surprising that on one side Govt. of India is classified as industrial chemicals under GST Act and on the other hand State Excise Department is treating the industrial chemicals under the preview of items covered under the State Excise Policy.
Mahajan said of the same practice of harassment by Finance Department continued, the industrial Units may opt for the closure of their unit due to additional cost of raw materials, in view of imposition of Excise Duty on the import of industrial chemicals resulting mass scale retrenchment of local industrial workers.
He said in this connection a delegation met the Excise Commissioner at Jammu on May 21, 2019 but he refused to provide relief and advise us to contact the Principal Secretary Finance in this regard.
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