| "We compliment the finance minister and the state government for accepting the industry's plea by exempting raw materials and component parts from the purview of the Special Tax on Entry of Certain Goods Act, 2004. However, the notification has caused much concern to industry since the bulk of critical commodities like capital goods deployed for infrastructure projects and petroleum products, an essential input in manufacturing, has been left out," S Chandrasekhar, president, Bangalore Chamber of Industry and Commerce (BCIC), said. |
| The exemption of SET is subject to conditions that the documents relating to such notified goods are produced before the officer in charge of the checkpost or before the officer who intercepts the goods vehicle transporting the notified goods. |
| "We are amazed that the notification specifies that documents have to be necessarily produced at the check post which is bound to increase detention costs, leave alone traffic bottlenecks. We strongly feel that this condition is uncalled for as the dealers in any case file this return," added Chandrashekar. |
| BCIC has requested the finance minister to review the notification and extend the relief to all registered dealers in the interest of investment flow into the state as well as competitiveness of the existing industries vis-à-vis neighbouring states. |
| The SET exemption is also subject to the condition that the dealer files before his assessing authority the return prescribed showing the particulars of such notified goods. |
| Monday's notification to exempt SET is also not across the board in another way. Dealers who bring notified goods from other states for personal purposes and service activity will still have to pay the entry tax. |
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