ATTENTION MEMBERS

Shri Keshav Kamat who represents GSIA on the Goa State Pollution Control Board explained about the discussions and decisions taken by the Board on “Categorization of Industries and Consent to Operate under Water & Air Acts”.

The matter was discussed in the 77th GSPCB Meeting held on 29/01/07 and the Categorization of Industries has been finalized and notification will be issued shortly by the Government.

Shri Keshav Kamat appraised the members that the validity for SSIs;

categorized as orange and specified orange shall be 12 years with two times the present fee for Consent to operate under Water and Air Act and

15 years for SSI which are categorized as green category with two times the present fee.

Besides those units registered permanently with DITC and not obtained the Consent so far shall be charged one time fee for the the past period on prorata basis and no late fees will be charged upto 31/03/07.

However, if the units registered permanently as SSI do not apply by 31st March, 2007 they will have to pay all the past fees as well as the late fee.

A Composite Form will be introduced in March 2007 under which one can apply to obtain Consent under Air ; Water and Hazardous Waste Management Act at a time.

Sub: i) Goa Sales Tax Deferment-cum-Net Present Value Scheme, 2001.

ii) Central Excise Demand Notice to pay the Central Excise duty as the amount retained by the unit under Goa Value Added Tax Deferment-cum-Net Present Value Scheme.

GSIA had taken up above subject matter with Commissioner of Customs and Central Excise vide letter no.GSIA/APK/CE/Feb/2007/856 dated 27th February, 2007 in respect of Central Excise Demand Notices to pay the Central Excise Duty on the amount retained by the unit under Goa Vale Added Tax Deferment-cum-Net Present Value Scheme, not to pursue the matter as the matter is sub-judice before Hon’ble Supreme Court.

Reply has been received from Commissioner of Central and Customs vide letter no. V/30/18(A)/06-C.X.I/943 dated 14.03.2007.

Both the letters mentioned above are reproduced here below for the information and necessary action of members.

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27th February, 2007 Ref.No.:GSIA/APK/CE/Feb/2007/856

To,
Shri Sheo Narayan Singh
Commissioner of Customs,
Central Excise & Service Tax
ICE House, EDC Complex,
Patto Plaza, Panaji,
Goa – 403 001.

Sub: i) Goa Sales Tax Deferment-cum-Net Present Value Scheme, 2001.

ii) Central Excise Demand Notice to pay the Central Excise duty as the amount retained by the unit under Goa Value Added Tax Deferment- cum-Net Present Value Scheme.

Dear Sir,

Please refer to our joint representation alongwith GCCI and CII on above subject. Some of our members have again approached us that they are still receiving notices to pay the Central Excise Duty on the amount retained by the unit with the interest immediately or else furnish the details within seven days.

In this connection we would like to invite your attention to the point no. 8 of the Minutes of the Regional Advisory Committee (RAC) held on 15/12/2006 wherein the Chairman of RAC mentioned that the matter is sub-judice and the same is pending before the Hon’ble Supreme Court of India for decision.

As the case is sub-judice before the Hon’ble Apex Court, GSIA, would like to request you to issue necessary instruction to the concerned authorities not to issue Demand Notices to the unit pending the verdict of Apex Court.

Thanking you.

Yours sincerely,

For GOA SMALL INDUSTRIES ASSOCIATION

sd/-

ATUL D. PAI KANE
PRESIDENT

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OFFICE OF THE COMMISSIONER OF CUSTOMS AND CENTRAL EXCISE PLOT NO.6, EDC COMPLEX, PATTO, PANAJI-GOA.

F.No. :- V/30/18(A)/06-CX.I /943
Date : 14.03.2007

To,
Goa Small Industries Association,
4th Floor, Goa IDC Bldg.,
Patto Plaza,
Panaji – Goa.

Gentlemen,

Sub :- i) Goa Sales Tax Deferment-Cum-Net-Present Value Scheme, 2001;

ii) Central Excise Demand Notice to pay the Central Excise Duty as the amount retained by the unit under Goa Value Added Tax Deferment – Cum – Net Present Value Scheme.

Please refer to your letter No. GSIA/APK/CE/Feb/2007/856 dated 27.02.2007 on the above subject.

2. In this regard, it is to inform that since these matters are time bound, Show Cause Notices have to be issued; however, the Show Cause Notices will be kept in abeyance till the Apex Court decides the matter.

3. You are, therefore, requested to kindly co-operate with the Department by furnishing whatever data is required in this regard for issue of Show Cause Notice.
This issues with approval of Commissioner.

Thanking you.

Yours faithfully,

sd/-

(S.S.R. LOBO)
DEPUTY COMMISSIONER (TECH)
CUSTOMS AND CENTRAL EXCISE,
PANAJI-GOA.

FOR THE KIND ATTENTION OF MEMBERS
GOA STATE POLLUTION CONTROL BOARD
Circular No.4/77/06-PCB/

Sub: Combined Form for Consent to Operate under the Water and Air Act and Authorization under Hazardous Waste.

The Board in its 77th Meeting approved issue of combined form for Consent to Operate under the Water and Air Act and Authorization under the Hazardous Waste (M&H) Rules, as amended in 2004. With this approval, all industries will have to obtain Consent to Operate under the Water and Air Act and Authorization under the HW Rules. The Draft Notification has been forwarded to the Govt. for approval and Notification in the Gazette.

Orange Category Industries –
On the issue of the Notification for the combined form, the industries categorized as Orange category will be issued Consent with a validity period of 12 years and will pay two times the present prescribed fee.
The industries which apply for Consent prior to issue of Notification, with present fee will be issued a Consent with a validity period of five years for SSI industries. After the publication of the Notification in the Gazette, the industries will have to pay one more fee as per the present fee structure, and the validity of the Consent will be extended for a further period of seven years (effective 12 years) for SSI industries.
With regards to the industries which are already in operation and have obtained permanent SSI registration, will have to pay one fee for the operation in the previous period on pro-rata basis (if the industry has obtained a permanent SSI in the previous two years, the industry will have to pay fees for two years (2 years)(2/5). Industries which are not permanently registered as SSI units with DITC will have to pay all the past fees and the late fees as applicable.

Green Category Industries –
On the issue of the Notification for the combined form, the industries categorized as Green category will be issued Consent with a validity period of 15 years and will pay two times the present prescribed fee.
The industries which are in operation and apply for Consent prior to issue of Notification with the present fees, will be issued a Consent with a validity period of five years for SSI industries. After the publication of the Notification in the Gazette, the industries will have to pay one more fee as per the present fee structure, and the validity of the Consent will be extended for a further period of ten years (effective 15 years) for SSI industries.
With regards to the industries which are already in operation and have obtained permanent SSI registration, will have to pay one fee for the operation in the previous period on pro-rata basis(if the industry has obtained a permanent SSI in the previous two years, the industry will have to pay fees for two year (2 years) (2/5). Industries which are not permanently registered as SSI units with DITC will have to pay all the past fees and the late fees as applicable.

sd/-

A.G. DAIWAJNA
MEMBER SECRETARY

Click here to download CHART SHOWING THE CONSENT FEES FOR ORANGE AND GREEN CATEGORIES OF INDUSTRIES

Last Updated ( Saturday, 26 May 2007 )

No.10/2/05-PCB/Vol 1287
Date: 12/06/07

Sub: Clarification of Membership of Industrial Waste Management

Association of Goa.

Sir,

The Industrial Waste Management Association has been formed for establishment, development and operation of Secured Landfill site to treat and dispose Hazardous waste requiring landfill.

Industries generating Hazardous waste which requires to be treated and disposed in a landfill should join the association as members.

Industries generating only used oil/ waste oil or recyclable hazardous waste need not join as members of the Association.

sd/-

A.G. Daiwajna

Member Secretary

Last Updated ( Friday, 15 June 2007 )

No.3/3/98-IND (Part-I)
Government of Goa
INDUSTRIES DEPARTMENT,
Secretariat, Porvorim-Goa.

Dated: – 27th June, 2007.

ORDER

Read:- Order No.3/3/98-IND-Part-I dated 30/04/2007.
Sub:- Preferential Purchase Scheme – Purchase of Products Manufactured by local SSI Units through Rate Contract.

The validity of the Order No. 3/3/93-IND-Part-I dated 30/04/2007 referred above, which is due to expire on 30/06/2007, is hereby extended upto 31/08/2007 or till the date of finalization of fresh Rate Contract under Preferential Purchase Scheme, whichever is earlier.

By order and in the name of the Governor of Goa.

(Hanumant T. Toraskar)

Under Secretary (Industries)

OFFICE OF THE COMISSIONER OF CUSTOMS AND CENTRAL EXCISE
PLOT NO.6, EDC COMPLEX, PATTO, PANAJI-GOA.
TRADE NOTICE NO.2/2007
CENTRAL EXCISE
F.No. :- V/30/63(C )/06-CX.I
Dated: January 2007

Sub: Measures to provide deterrence for tax evaders in the Manufacturing Sector – reg

Attention is invited to the Notification Nos.30/2006-CE(NT) and 31/2006-CE (NT) both dated 30.12.2006 inserting Rule 12CC in the Central Excise Rules, 2002 and Rule 12 AA in the CENVAT Credit Rules, 2004. Attention is also invited to the Notification No.32/2006-CE(NT) dated 30.12.2006. The salient features of the provisions are enumerated below:

2.1 The following types of offences committed by a Manufacturer or a First stage or Second stage Dealer or an Exporter is considered to be serious to warrant the imposition of restrictions on the facilities detailed in the subsequent para.
i. Removal of goods without the cover of an Invoice and without payment of duty;
ii. Removal of goods without declaring- the correct value for payment of duty, where a portion of sale price, in excess of Invoice price, is received by him or on his behalf but not accounted for in the books of account;
iii. Taking of CENVAT Credit without the receipt of goods specified in the document based on which the said credit has been taken;
iv. Taking of CENVAT Credit on Invoices or other documents which a person has reasons to believe as not genuine;
v. Issue of Excise duty Invoice without delivery of goods specified in the said Invoice;
vi. Claiming of refund or rebate based on the Excise duty paid Invoice or other documents which a person has reason to believe as not genuine.

2.2 Where a manufacturer is prima facie found to be knowingly involved in committing the offences as specified in Para 2.1, the following restrictions may be imposed on the facilities:
i. The facility of monthly payment of duties may be withdrawn and the assessees shall be required to pay Excise duty for each consignment at the time of removal of goods;
ii. The payment of duty by utilization of CENVAT credit may be restricted and the assessee shall be required to pay Excise duty without utilization of CENVAT credit;
However, it is clarified that a person against whom the order under sub-para (3) of para 4 of the Notification has been passed may continue to take CENVAT credit. However, he would not be able to utilize the credit for payment of duty during the period specified in the said order. If the person is found to be knowingly involved in committing anyone or more type of offences as specified in Para 2.1 for the second time or subsequently, every removal of goods from his factory will be ordered to be under an Invoice which shall be countersigned by the Inspector ‘of Central Excise or the Superintendent of Central Excise before the said goods are removed from the factory or warehouse. For the second time or subsequent offence, the restriction specified in clauses (i) and (ii) may also be imposed.

2.3 Where a First stage or Second stage Dealer is found to be knowingly involved in committing the offence specified at clauses (iv) or (v) of para 2.1, the registration granted under Rule 9 of the Central Excise Rules, 2002 may be suspended for a specified period. During the period of suspension, the said Dealer will not be able to issue any Central Excise Invoice. However, he can continue his business and issue sales Invoices without indicating the Excise duty component in the Invoice, and no CENVAT credit shall be admissible to the recipient of such goods.

2.4 Where a Merchant Exporter is found to be knowingly involved in committing the offence specified at clause (vi) of para 2.1, the Self Sealing facility for export consignment will be withdrawn whereby each export consignment shall be examined and sealed by the jurisdictional Central Excise Officer.

2.5 The provisions of this Notification shall be applicable only in a case where the duty or CENVAT Credit alleged to be involved in the specified offences is more than Rs.10 lakhs.

2.6 Attention is invited to second proviso in para 2 of the Notification, which provides that any other facility available to a Manufacturer or a Dealer or an Exporter, which has been provided by way of a Circular, or an Order may also be withdrawn. In this connection, the facility of payment of 80% refund / rebate on provisional basis within 15 days of filing of refund claim (Refer to Circular No. 825/5/2006-CX dated 20/04/2006 may also be considered.

3. All Trade Associations and Chambers of Commerce and Industries are requested to bring the contents of this Trade Notice to the notice of their member constituents.

Sd/- 01.02.2007 ( SHEO NARAYAN SINGH) COMMISSIONER

(Authority :- Board’s Instructions issued from

F.No. 224/40/2006-CX.6

dated 30.12.2006)

Office of the Commissioner of Customs and Central Excise, Panaji-Goa.
Trade Notice no.3/2007 – Central Excise
Date : 14/03/2007

Sub: Mandatory E-payment of Central Excise for major assessees.

Trade is hereby informed that in pursuance of the amendment to Rule 8 of the Central Excise Rules, 2002, in the Finance Bill / Union Budget 2007-08, the e-payment of Central Excise duty has been made mandatory w.e.f. 01.04.2007, for all assessees who have paid Central Excise duty of Rs. 50 lakhs and more in cash or through PLA during the preceeding Financial Year (2006-07).

2. Therefore, it is requested that all the assessees who have paid Central Excise duty of Rs. 50 lakhs and more in cash or through PLA during the preceeding Financial Year (2006-07) should use e-payment facility for payment of Central Excise duty to the government w.e.f. 01.04.2007.

sd/- 14.03.2007

(SHEO NARAYAN SINGH)

COMMISSIONER

OFFICE OF THE COMMISSIONER OF CUSTOMS AND CENTRAL EXCISE
TRADE NOTICE NO. 5/2007 – CENTRAL EXCISE
Sub: Amendment to Central Excise Valuation (Determination of Price of Excisable Goods), Rules, 2000 and the CENVAT Credit Rules, 2004.
F.No. :- V/30/11/(C )/07-CX.I
Date :- 16/03/2007

Trade is hereby informed that the Central Excise Rules, 2002, the Central Excise Valuation (Determination of Price of Excisable Goods), Rules, 2000 and the CENVAT Credit Rules, 2004 have been amended vide Notification Nos. 8, 9 and 10/2007-C.E.(N.T) all dated 01.03.2-007 respectively. The highlight of few important changes are as under :-

2. Rule 8 of the Central Excise Rules, 2002, has been amended to make e-payment mandatory for payment of duty by all the assessees who have paid Central Excise duty of Rs. 50 lakhs or above in cash or through PLA during the preceeding Financial Year (2006-07). This provision would come into effect from 01.04.2007. All the asses sees who have paid Central Excise duty of Rs. 50 lakhs and above in cash or through PLA during the preceeding Financial Year (2006-07), would be required to pay Central Excise duty electronically from April, 2007. (REFER :- This Office Trade Notice No. 3/2007-CE dated 14.03.2007)

3. Sub-Rule (2) of Rule 11 of the Central Excise Rules, 2002 has been amended to include the address of the jurisdictional Central Excise Division in the invoice. This change too comes into force from 01.04.2007 only. All the assessees, including first and second stage dealers are requested to take note of this change. It is, however, clarified that the existing printed invoices lying in stock as on 01.04.2007 can be used, and in address of the Division may either be hand written or stamped on such invoices.

4. Rule lOA has been inserted in the Central Excise Valuation (Determination of Price of Excisable Goods), Rules, 2000. This rules provides that where goods are manufactured by a job worker on behalf of a person (commonly known as principal manufacturer), the value for payment of excise duty would be based on the sale value at which the principal manufacturer sells the goods, as against the present provision where the value is taken as cost of raw materials plus the job charges. This provision has been made effective from 01.04.2007.

5. All Trade Associations are requested to bring the contents of this Facilitation measures to the notice of their member manufacturers and trade in general.

(Authority :- Member, CBEC, New Delhi
D.O. F.No. 201/03/2007-CX.6)
Dated 05.03.2007

sd/- 16.03.2007

SHEO NARAYAN SINGH
COMMISSIONER

No. 10 (16) 11/2006-E&T
Government of India
Ministry of Small Scale Industries
Office of the Development Commissioner
(Small Scale Industries)
Nirman Bhavan, New Delhi-ll0 0ll
Dated: 12th March, 2007

To
The Secretary (Industries)
All State Governments/UTs.

Sub: National Awards to Small Scale Entrepreneurs – 2006.

Sir,
1. The Govt. of India has been operating a Scheme to give away National Awards to Small Scale Entrepreneurs.

2. Two special prizes, at par with First National Award, are also being given to honour an outstanding woman and an outstanding SC/ST entrepreneur.

3. The Awards are granted to deserving Small Scale Entrepreneurs whose units are permanently registered with the State Directorate of Industries and established within the preceding eight calendar years from the year of Awards i.e. units should be permanently registered on or after 1.1.1998 as SSI with State Industries Department and which have been in continuous production at least during last four years.

4. For consideration to ensure SSI status of the unit Notifications / Orders issued by SSI Board (copies for ready reference at GSIA Office) may be kept in view.

5. The selection of the suitable awardees is made through a two tier screening; (a) initial recommendation by the State/UT Level Selection Committee (SLSC). The composition of the SLSC is as follows
(i) Secreatary/ Commissioner ofIndustries State/ UT Chairman
(ii) M.P. of the State/ UT nominated by the concerned State Government Member
(iii) Director of Industries of State/ UT Member
(iv) Representative of EDI in the State to be nominated by the State Government Member
(v) A representative of one of the leading banks Member
(vi) Representative of one of the Sate Level Small Industries Association to be nominated by the Sate Government .
(vii) Director, Small Industries Service Institute
(b) the final selection by National Level Selection Committee (NLSC).

6. An application form along with details of the Scheme/instructions, eligibility oriteria and an Evaluation Criteria (Form X) for evaluating the applications is available at GSIA Office for reference.

7. A Committee consisting of Representatives of Director, Small Industries Service Institute, State Directorate of Industries and anyone suggested by State/ UT Level Selection Committee should visit applicant unit (s) to verify the information furnished by them in the application formes) including details of technology, performance,’ quality, growth trends etc. to be placed before the State Level Selection Committee for perusal and consideration before finalizing recommendations. The SLSC will award the marks based on the ‘enclosed Evaluation Criteria (Form X). The benchmark for eligibility is 60% and 50% in case of SC/ST and above, and only those applications which get 60% and 50% in case ofSC/ST or more marks need to be forwarded for consideration of National Level Selection Committee.

8. Last date for receiving applications by SISIs is 30th May 2007.

9. Scrutinised application forms along with appraisal on Form X (with detailed break up) and recommendations ofSLSC in’iespect ofa maximum offive entrepreneurs in order of merit (including at least one from women and one trom SC/ST candidates) should reach the office of the Development Commissioner, Small Scale Industries, Ministry of SSI, ‘A’ Wing, Nirman Bhavan, New Delhi-110 011, latest by 30th June 2007.

10. There will be no bar for an Awardee to be nominated or considered for a higher Award in the subsequent year.

11. SLSC should scrutinize applications received based on the evaluation criteria prescribed particularly ensuring that the applicants have provided necessary documentary evidence in support of their claims, which are relevant to the year ofthe award. While recommending the names for National Award, SLSC should institute such inquiries as may be necessary to satisfy themselves that the entrepreneur has been abiding by all necessary statutory requirements, maintaining proper documentation and is also not involved in any economic/other offence for which enquiry/legal action is pending.

Yours faithfully,

sd/-

(V.S. KARUNAKARAN)
INDUSTRIAL ADVISOR