The Hindu Business Line : Clarification sought on ‘actual’ excise paid

Mills are seeking clarification on the eligibility for special bank loans towards payment of cane arrears being linked to the amount of excise duty “actually paid” by them on levy and free sale sugar during 2006-07.

According to one miller, in many cases, the excise liability on sugar has been discharged by way of availing Cenvat credit against duty payments on machinery and other inputs. This is especially so during the last 2-3 years, when substantial investments in new mills as well expansion in the existing ones have been made.

“In all these instances, the excise payable on sugar has been set-off against the duties paid on plant and machinery and various other inputs. While these are reflected in the RG-23A form, there is no excise actually paid on the output. Will factories be allowed to avail of the special bank loans against such set-offs?,” the miller sought to know.

While the Cabinet Committee on Economic Affairs (CCEA) has cleared the special bank loan package for mills, the detailed operational guidelines are to be finalised by the Department of Financial Services in the Finance Ministry in consultation with the Food Ministry.

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Bailout plan for farmers with un-harvested cane

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