Jammu, May 24 (KNN) The Micro, Small and Medium Enterprise (MSME) body from Jammu, Bari Brahmana Industries Association (BBIA), has expressed serious concerns over the illegal collection of excise duty by Excise Department at Lakhanpur checkpost on the import of industrial chemicals.

In a meeting held under the Chairmanship of Lalit Mahajan, President of BBIA, members from Pharma/Pesticides and other units mentioned that as per Clause No. 14-B of the Excise Policy 2016 the duty of Rs 10.00 P/ltrs shall be payable on Rectified Spirit, Alcohol, Denatured Spirit and Molasses.

But by misinterpreting the above clause, authorities forcefully collecting the excise duty of Rs 10.00 P/ ltrs on the import of industrial chemicals like IPA/Butanol and other Chemicals being used in the manufacturing of Medicinal, Toiletry, Pharma and other Products.

They stated that industrial units importing the industrial chemicals under GST Act of Government of India by paying the GST at 18% and it is very surprising that on one side Government has classified industrial chemicals under GST Act and on the other hand State Excise Department is treating the industrial chemicals under the preview of items covered under the State Excise Policy.

Due to if & but being imposed by the excise department on the import of industrial chemicals the confidence of industrial sector is sheltered and they have no option but to bear the additional cost of the raw materials, they added.

If the same practice of harassment by Finance Department continues, the industrial units may opt for the closer of their unit due to additional cost of raw materials due to imposition of excise duty on the import of industrial chemicals resulting mass scale retrenchment of local industrial workers.

In this regard, delegation met the worthy Excise Commissioner recently but he refused to provide relief and advise us to contact the Principal Secretary Finance in this regard for any clarification, said BBIA.

The association has requested K.K. Sharma, Advisor to the Governor and A.K. Mehta Principal Secretary of Finance Department to issue the immediate orders to exempt the industrial chemicals from the preview of the State Excise Department and save the industrial units from closer.