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Industry & Economy - Textiles


Textile Ministry views sought on Committee Cess

K.R. Srivats

New Delhi , Oct. 9

THE Finance Ministry has sought the views of the Union Textile Ministry on whether the Textile Committee Cess is to be collected at the point of export or otherwise.

A categorical view of the Textile Ministry on this issue is expected to enable the Finance Ministry to take a call on the actions of some of the Customs officials, who have been insisting on proof of payment of the cess before the `let export' order is made.

Official sources said that the move to involve the Union Textile Ministry comes on the back of a request made by the Apparel Export Promotion Council (AEPC) that directions be issued to field formations to refrain from insisting on proof of payment of the cess.

The AEPC is understood to have argued that neither the Revenue Department nor the foreign trade policy has specifically directed that the proof of payment of the cess has to be submitted before the `let export' order is made.

Further, the AEPC has also contended that the cess is a type of an excise duty and therefore, its recovery by the Textile Committee is a separate exercise.

A `let export' order is generally made after certain formalities are fulfilled and the Customs officer is satisfied that the export does not contravene the provisions of any law and that all duties have been paid.

The cess was introduced on textile goods in 1963 to fund the Textile Committee's activities such as mandatory pre-shipment quality inspection.

A few months back, the Union Textile Minister had indicated that the Government would do away with the cess.

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