Area based Exemption for Uttarakhand and Himachal Pradesh lapses
ALL industrialists who were enthusiastic about setting up new units or expanding existing units in Uttarakhand and Himachal Pradesh in anticipation of excise benefits may have to shelve their plans forever.
Today is April 1, 2010 and the Government of India in its wisdom has thought fit not to extend the area based exemption to new industrial units which could not commence commercial production on or before March 31, 2010 or existing industrial units which existed before January 7, 2003, but which have undertaken substantial expansion as specified in the relevant notifications but could not commence commercial production from such expanded capacity on or before March 31, 2010.
With the result, excise benefits under Notifications 49/2003-CE and 50/2003-CE will not be applicable to new industrial units which could not commence commercial production on or before March 31, 2010 or existing industrial units which existed before January 7, 2003, but which have undertaken substantial expansion as specified in the relevant notifications but could not commence commercial production from such expanded capacity on or before March 31, 2010.
If any industry ventured into these States and commenced setting up of their new units or set in motion expansion of their existing units in anticipation of excise benefits for ten years under these two Notifications, but could not beat the March 31st deadline due to any operational reasons, then it should only be regarded as their misfortune for not meeting the deadline.
Let us hope that the Government will consider extending the benefits to those industries which started construction of their new units or set in motion expansion of their existing units but could not complete such construction or expansion and commence commercial production, provided they are able to at least commence commercial production within a certain reasonable time.