Jammu, Jan 16 (KNN) The Federation of Industries (FOI) of Jammu have welcomed J&K government move that provides Central Excise benefits to local industrial units, an issue that has been pending for the last two years.
During a meeting of the Federation held recently, under the chairmanship of President, FOI and President, Bari Brahmana Industries Association (BBIA), Annil Suri, the members conveyed their gratitude to Chief Minister, Omar Abdullah, Minister of State for Industries and Commerce, Sajjad Ahmad Kitchloo and other senior officials of the state government.
Local industrial units who opt for the 2nd substantial expansion can now avail the Central Excise benefits as per notification No. CE-1/2010.
According to a BBIA press release, the clarification will provide great relief to the Industrial Units of J&K who had already made substantial expansion by investing crores of rupees over the years.
Others present at the meeting were Co-chairman FOI, Balbir Gupta, Secretary General FOIJ Varinder Jain General Secretary, BBIA Lalit Mahajan, Romesh Badyal, Vinod Rishi, Jatinder Aul, Ajit Bawa, Devinder Verma, and other office bearers of the Federation of Industries, Jammu.
As per official data from the Department of Revenue, Ministry of Finance, Government of India, “Notification No.1/2010-CE dated 6th February, 2010 provides exemption from Central Excise duty to goods cleared from new units or units that have undertaken substantial expansion in the State of Jammu and Kashmir for a period of ten years from the date of commencement of commercial production.
“Doubts were raised about the interpretation of provisions of this exemption relating to the date from which the ten years period is to be computed in the case of units undertaking substantial expansion. The notification is being amended retrospectively from the date of issue of the said notification i.e. 6th February, 2010 to provide that for units undertaking substantial expansion, the exemption period of ten years would be computed from the date of commercial production from the expanded capacity.”