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K.R. Srivats

NEW DELHI, April 28

THE Finance Ministry has again extended the deadline for submission of written declaration on the quantity and value of stock of inputs, as on March 31, 2003 held by different segments of the textile industry that have been brought under the excise net from April 1, 2003.

A declaration is a must if Cenvat credit is to be obtained by a manufacturer, producer, first stage or second stage dealer on the duty paid on inputs lying in stock as on April 1, 2003.

Official sources said that the deadline for submission of declaration — which was originally set at April 7, 2003 and later extended to April 15 and then to April 25 — has now been extended by a week to May 2, 2003.

The submission of declaration, industry observers say, has direct correlation to the willingness of these segments to come under the excise net. They pointed out that certain segments such as powerloom weavers have been expressing reluctance to come under the excise net.

As a transitional measure, the Finance Ministry had promised that the segments entering into the excise net would be entitled to avail Cenvat credit equivalent to the duty paid on inputs of the finished products — lying in stock or in process or contained in finished goods lying in stock as on March 31, 2003.

Segments of the industry, which are unable to produce the document evidencing the actual payment of duty on inputs are also entitled to avail themselves of the Cenvat credit, which is calculated in a different manner.

Besides withdrawing deemed Cenvat credit scheme, the Finance Bill 2003 had removed a large number of exemptions.

Small-scale industries (SSIs) exemption on readymade garments and optional excise duty exemption on woven, crocheted or knitted fabrics have also been withdrawn from April 1, 2003.

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