TEWARI leads delegation of cycle manufacturers to FM
Author(s): City Air NewsInformation and Broadcasting Minister Manish Tewari leads a delegation of All India Cycle Manufacturers Association (AICMA) to Finance Minister P Chidambaram in New Delhi on Friday. New Delhi/Ludhiana, July 5, 2013:...
New Delhi/Ludhiana, July 5, 2013: Information and Broadcasting Minister Manish Tewari today led a delegation of All India Cycle Manufacturers Association (AICMA) to Finance Minister P Chidambaram to express the cycle industry's concerns related to imposition of Central Excise.
Tewari urged the Finance Minister to restore exemption from Central Excise levy for the last two years for the cycle industry.
"Since Ludhiana is a big market of cycle production, it was felt that we should reach the Finance Minister with our problems and concerns," said Tewari, who represents Ludhiana seat in the Lok Sabha.
After the meeting with the FM, Tewari revealed that Chidambaram has assured them that he would take cognisance of the cycle industry’s concerns and provide relief from the excise levy.
Central Excise Duty of 1% was imposed on bicycles, without CENVAT credit facility for inputs and input services and 5% with full CENVAT credit facility. This was enhanced to 2% and 6% respectively in this year’s budget. The bicycle industry has been making representations praying for restoration for the age old exemption from Central Excise levy for the last two years.
At present, the optional rate without CENVAT is 2% and 6% with full CENVAT credit. In this industry, the various component manufacturers are in the small-scale sector availing threshold exemption. With the parts of bicycles and other inputs relating to this product being exempt from Central Excise duty and carrying a high burden of duty incidence on the basic raw materials, there is no question of availing CENVAT credit in the hands of a bicycle manufacturer.
Consequently, the 2% duty only adds up to the cost of the product. Relief by way of restoration of the exemption for bicycles may have a revenue impact of about Rs 70 crore only.
Among others, Pawan Dewan President DCC (U), Ashok Prashar, Gurmeet Singh Kular, President UCPMA, Onkar Singh Pahwa, Manjinder Singh Sachdeva, Pankaj Munjal, Arun Algappan, Angad Kapoor, ID Chugh, Gaurav Himkar were also present.