 "Govt promises no raids for excise on jewellers")
Following aggressive opposition from jewellers against the excise duty levy, the government has promised them that no one would face harassment or raids by government officials until and unless there was some proof against him/her.
The office of the Commissioner of Central Excise has clarified that excise duty roll-out would be automated to reduce the possibility of corruption or harassment significantly. The jewellers had earlier expressed fear that the duty roll-out would bring back ‘inspector raj’ as seen in previous regimes. Finance Minister Arun Jaitley proposed one per cent excise duty on jewellery manufacturers who do not claim central value added tax (cenvat or raw material duty) credit and 12.5 per cent on those who claim cenvat credit. Job workers, however, are exempted from excise registration.
“We would like to assure jewellery makers that there will be no involvement of officers in the entire filing of returns and payment of excise duty. Whatever jewellers declare (turnover and stock position), the excise department would accept that. There will be no raids and book audits. We would accept whatever jewellers declare as turnover, production and stock at the end of the month,” said Subhash C Varshney, Chief Commissioner of Central Excise, Mumbai region.
The announcement has come as a major relief for jewellery manufacturers who went on indefinite strike after the proposal to levy duty was announced by Jaitley in the Budget speech. The striking jewellers have met several bureaucrats and politicians, including the Finance Minister, seeking roll back of the duty. But their request has been ignored by and large.
Jaitley told jewellers that the excise duty was an attempt towards smooth transaction to the proposed goods and services tax regime. The excise department has already started online registration of jewellery manufacturers and assured them that the process would be completed within two days of the application.
“We have clarified around 90 per cent of their concerns. Only 10 per cent concerns, primarily relating to the procedural issues, remain. We are in the process to ease them out,” said Varshney.
In the previous regime, the government had levied 1 per cent excise duty in 2005 and 2012 which was rolled back after massive resistance from jewellers.
“That time, the scenario was different. Previously, raids were conducted in the gold control regime. The scenario is different now. There is no gold control. So, there is no question of raids. We will ensure that jewellers’ business does not get affected,” said Varshney.
Meanwhile, striking jewellers have hinted that their protest rally in Delhi would take place as scheduled on March 17. “But, we would take a call around the same time over continuation of the strike. The ongoing strike might be called off,” said an official of India Bullion and Jewellers Association (IBJA).
The office of the Commissioner of Central Excise has clarified that excise duty roll-out would be automated to reduce the possibility of corruption or harassment significantly. The jewellers had earlier expressed fear that the duty roll-out would bring back ‘inspector raj’ as seen in previous regimes. Finance Minister Arun Jaitley proposed one per cent excise duty on jewellery manufacturers who do not claim central value added tax (cenvat or raw material duty) credit and 12.5 per cent on those who claim cenvat credit. Job workers, however, are exempted from excise registration.
“We would like to assure jewellery makers that there will be no involvement of officers in the entire filing of returns and payment of excise duty. Whatever jewellers declare (turnover and stock position), the excise department would accept that. There will be no raids and book audits. We would accept whatever jewellers declare as turnover, production and stock at the end of the month,” said Subhash C Varshney, Chief Commissioner of Central Excise, Mumbai region.
The announcement has come as a major relief for jewellery manufacturers who went on indefinite strike after the proposal to levy duty was announced by Jaitley in the Budget speech. The striking jewellers have met several bureaucrats and politicians, including the Finance Minister, seeking roll back of the duty. But their request has been ignored by and large.
Jaitley told jewellers that the excise duty was an attempt towards smooth transaction to the proposed goods and services tax regime. The excise department has already started online registration of jewellery manufacturers and assured them that the process would be completed within two days of the application.
“We have clarified around 90 per cent of their concerns. Only 10 per cent concerns, primarily relating to the procedural issues, remain. We are in the process to ease them out,” said Varshney.
In the previous regime, the government had levied 1 per cent excise duty in 2005 and 2012 which was rolled back after massive resistance from jewellers.
“That time, the scenario was different. Previously, raids were conducted in the gold control regime. The scenario is different now. There is no gold control. So, there is no question of raids. We will ensure that jewellers’ business does not get affected,” said Varshney.
Meanwhile, striking jewellers have hinted that their protest rally in Delhi would take place as scheduled on March 17. “But, we would take a call around the same time over continuation of the strike. The ongoing strike might be called off,” said an official of India Bullion and Jewellers Association (IBJA).
Jewellers with up to Rs 12 crore of annual turnover are exempted from excise duty levy. But, in case their turnover does not reach Rs 12 crore mark, they would be exempted from excise duty levy to the tune of Rs 6 crore in the next financial year.