Kolkata, Jun 25 (UNI) Indian Chamber of Commerce(ICC) today strongly pleaded the Central government to restore the original excise duty concession granted by the NEIIP for industries in North-Eastern region.
With the objective to attract investors to the region which was otherwise lagging behind on developmental front, the NEIIP 2007 had granted 100 per cent exemption from excise duty, on finished goods produced in North-Eastern region, ICC sources said.
However, recent amendments made to the NEIIP through departmental notifications have severly reduced the available excise duty, sources said adding the 100 per cent exemption was withdrawn and different rates of refund were introduced for industries with reduced benefits.
Under the new system arbitrary amounts were assumed to be the adjustment of duty payable towards CENVAT on inputs and the excise benefits was thus based on National Value Addition instead of on the whole of the clearence as provided under the original policy, sources revealed.
The sources pointed out that at a high level meeting in New Delhi recently, ICC had taken substantial effort on the part of the government and Chambers of Commerce to promote the region as an investment destination and the 100 per cent exemption from excise duty was producing some salutory effects.
"Dilution of the benefits through departmental notifications will only negate the governments avowed policy for the development of the North-Eastern region" sources said.
The chamber therefore urges the Central government to restore the original benefits granted under NEIIP, 2007 and allay the misgivings that crept in the minds of prospective investors, sources added.
UNI RH PC DB1845