HimVani
Shimla (Dec 25): Himachal Pradesh Chief Minister Prem Kumar Dhumal today hailed the decisions of Central Board of Excise and Customs for deciding to continue excise exemption to those units which are extending up their investment in Himachal Pradesh and Uttarakhand after ending this exemption on March 2010. (known as Sunset clause)
Quoting media reports, Dhumal said that CBEC accepted state government’s demand, which was raised during a high-level meeting with Prime Minister Manmohan Singh on April 2010. He said that he can decipher from CBEC notifications that it has given central excise exemption to those units which are continuing their investment in the state and want to set up new units and plants.
A newspaper had quoted CBEC source on December 24 that full excise duty exemptions would be available on capacity expansions undertaken by such units even after March 2010, which was the cut-off date on which the excise duty exemption regime ended in these two States. Also, full excise duty exemption will be available to all the new products manufactured by such units even if they install fresh plant and machinery or capital goods after the cut-off date. However, the excise exemption period will remain at ten years. The ten-year period will be counted from the date of commencement of commercial production of the industrial unit.
The Himachal Pradesh Government, had, in May, urged the Center to restore excise duty exemption for units set up in that State on or after April 1 this year, news item mentioned. Dhumal said that Government should continue the package for remaining period in full quantum as it has given to Jammu and Kashmir.
