The Hindu Business Line : Bringing woven and knitwear sector under Cenvat chain

THE Central Excise Commissionerates that will be saddled with the new task of registering the textile producers in the decentralised sector, which had hitherto remained outside the excise net, will have to seek the help of the trade associations to reach out to these units.

"We have asked all the textile producers and trade associations to help us in the registration of the units, who would be coming under the textile Cenvat chain. The option of getting registered with the department for complying with the excise regime is left to the master-weavers or the job-workers, as the case may be, who could take the responsibility and we will accept whatever the `challan' system they have for usage of inputs in the manufacture," said Mr Krishnamurthy, Chief Commissioner, Central Excise and Customs of Coimbatore zone. Mr Krishnamurthy and the other senior officials in the zone, which consists of Salem, Tiruchi, Madurai and Tirunelveli commissionerates, besides Coimbatore, held discussions with the leading textile industrial associations in the region here on Wednesday hearing their views on a simplified excise procedure to be followed by the excise authorities, in view of the extension of the `Cenvat' chain to woven and knitwear sectors. The amended excise procedure would be in place by the end of this month.

The views of the trade and industry including their suggestions are being forwarded to the Central Board of Excise and Customs so as to enable the latter to come out with a modified excise procedure to be followed for the textile sector. "Most industry representatives were positive in their views on extending the `Cenvat' chain and our interaction with the members of the industry revealed that they have a system of accounting," Mr Krishnamurthy said adding that the simplified procedure would cover those to be documented by the textile manufacturers including the production, stock clearances and periodicity of returns to be filed by them (quarterly or monthly).

To facilitate expedition of the units registration for the Cenvat cover, the Coimbatore zonal excise authorities would be forming a special cell which will interact with the individual trade associations, it is said.

Among the major textile trade and industrial bodies, which represented in Wednesday's meeting were the Karur Exporters Association, South India Hosiery Manufacturers Association from Tirupur, Powerloom Development and Export Promotion Council and the Southern India Mills Association. The textile units, it is said, have expressed their willingness to be registered with the excise authorities. So also the dealers of yarn who would be using the modvat-able invoices, the excise officials said.

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