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G. Gurumurthy

Coimbatore , Nov. 7

EXCISE revenue collected out of textile goods by Coimbatore Central Excise and Customs zone, one of the country's largest textile revenue belts, has shown a negative growth in the first six months of the current fiscal, the first year of the introduction of the `complete Cenvat duty chain' for the textile industry.

Coimbatore zone, which mops roughly 25 per cent of its excise revenue from the cotton yarn and fabrics manufacturing sector, has seen excise duty go down by some 12 per cent to Rs 218 crore from Rs 250 crore netted for the same period in 2002.

Excise Department officials attributed the decline largely due to stoppage of manufacturing activity in the weaving centres for some three months after introduction of the Cenvat duty chain and the subsequent transport agitations.

Another reason is the higher quantum of exports in recent months (exports don't attract excise).

The officials said that the trend would reverse in the second half when most textile manufacturers would have already availed Cenvat credit to pay off the duty and fresh duty receivables.

The zone comprises five excise Commissionerates - Salem, Tiruchi, Madurai, and Tirunelveli being the others - and the excise duty realised from cement came in handy to offset the loss of income from textiles.

Excise from cement is up by 35 per cent and the physical excise duty collected during the first half has gone up to Rs 158 crore from last year's Rs 116 crore.

Similarly, the excise earnings from petroleum products are higher by 14 per cent at Rs 443 crore compared to Rs 387 crore earlier.

The other principal commodities that contributed to a positive excise income growth are engineering/machinery goods (at Rs 67 crore from Rs 52.5 crore) and paper and paperboards (from Rs 32 crore to Rs 42 crore).

Excise from sugar has come down by 22 per cent to Rs 20 crore from last year's Rs 26 crore, as have earnings from rubber products, down to Rs 11.79 crore from last year's Rs 14.4 crore.

The overall excise revenue realisation for the zone for the first six months has shown a seven per cent growth of Rs 86 crore at Rs 1,349 crore against Rs 1,263 crore earlier.

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