Even as the dyeing units in Ludhiana commissionerate of central excise department are playing dilly delaying tactics over payment of the due central excise duty, the department has fixed a meeting of industry representatives to persuade them to pay up.
Sources in the department said the meeting with representatives of dyeing industry, including those who have to pay the central excise duty on account of wrongly availed exemption in excise duty, was fixed on May 9.
“The department officials will try to convince the industrialists to pay the duty. Even if the industry does not show an interest in paying up, the department officials will not hesitate in conveying the message to industry to either pay up or face the wrath of the department,” sources added.
It is important to mention here that a total of 81 units of dyeing and manmade processed knitted fabrics processing industry in Ludhiana commissionerate have to pay central excise duty worth Rs 32 crore on account of wrongly availed exemption on central excise duty.
After getting a letter from the Central Board of Excise and Customs (CBEC) to recover dues from the industry in January, department had initiated the process to recover them from the industry.
But after much hue and cry from the industry and due to political interference in the matter, the industry somehow managed to put the recovery of tax on hold.
“The industry is delaying the payment of due excise duty even though they don't have any stay on payment of the same by the Supreme Court, which industry had approached after the Central Excise and Service Tax Appellate Tribunal (CESTAT) on November 12, 2009, ordered these units to pay the excise duty for wrongly availed exemption on central excise,” sources said.