TIOL-DDT 1301 · Wednesday, 17 February 2010 · story 2 of 6

Plight of a Biri Manufacturing Woman - Will CBEC and FM listen?

WE received this mail from a school teacher in Kerala.

I am working as a High School Teacher in Kerala. I am submitting following lines for the kind consideration while preparing the Budget 2010.

One of my friends, who is not a well educated woman, started the production of Hand Made Branded Biris (other than paper rolled biris), falling under Central Excise Tariff Heading 24031031. The Hand Made Branded Biris attracts Central Excise duty of Rs.14.42 per 1000 nos. (ie. BED-Rs.8.00 + NCCD- Rs.1.00 + Cess- Rs.5.00 + Education Cess @ 2% + Higher Education Cess @ 1%).

Though clearance of 20 lakhs nos of handmade biris per month, without brand name, has been exempted from payment duty vide Sl.No.36 of Notification No.3/06, there is no exemption for clearance of branded biris. So she took central excise registration and paying duty, though her monthly turnover is around Rs. 2000 (20,000 nos of biris). For payment of monthly duty of Rs.289/-, she has to travel 20 kms to nearest designated bank, and to file monthly ER-1 return she has to travel 30 kms to nearest Central Excise Range. Moreover, on implementation of ACES system, it has become too difficult for tiny biri units to follow the new procedures. Since majority of HMBB units are clearing less than 3 lakhs biris per annum (Total duty involvement is less than Rs.4326 per annum ), providing an exemption for the clearance upto 3 lakhs nos. of biris in a financial year would be very much helpful and be a relief for these tiny units. Such an exemption would be supportive for woman empowerment, like in the case of my friend. Though the clearance of biris has an effect on public health, the exemption discussed herein would not result in a major impact as the market share of these tiny units is less than 5%. Hence it is requested to kindly present the case before concerned authorities to get an exemption to the tiny handmade branded biri manufactures.

She ended her mail with, “May Jesus Christ shower his abundant blessings upon you.”

Will Jesus Christ, Pranab Mukherjee or CBEC Chairman Sridhar help this woman?