Friday, July 5, 2013

Today a delegation of United Cycle & Parts Manufacturers Association met with the Hon’ble Finance Minister


Today a delegation of United Cycle & Parts Manufacturers Association met with the Hon'ble Finance Minister, Sh. P. Chidambaram, under the leadership of S. Onkar Singh Pahwa CMD of M/s. Avon Cycles Limited. The delegation was lead by Sh. Manish Tiwari, Hon'ble Union Minister Information and broadcasting for discussion regarding exemption of 2% excise duty being levied on complete bicycle.

S. Onkar Singh Pahwa urged the Finance Minister to exempt from the Central Excise duty levy for the last two years for the cycle industry.

Sh. Gurmeet Singh Kular, President UCPMA said \"Since Ludhiana is a big market of cycle production; it was felt that we should have a meeting with the Finance Minister with our problems.

After the meeting with the Finance Minister, S. Onkar Singh Pahwa revealed that Chidambaram has assured them that he would take cognisance of the cycle industry's concerns and provide relief from the excise levy.

Central Excise Duty of 1% was imposed on bicycles, without CENVAT credit facility for inputs and input services and 5% with full CENVAT credit facility. This was enhanced to 2% and 6% respectively in this year's budget. The bicycle industry has been making representations praying for restoration for the age old exemption from Central Excise levy for the last two years. At present, the optional rate without CENVAT is 2% and 6% with full CENVAT credit. In this industry, the various component manufacturers are in the small-scale sector availing threshold exemption. With the parts of bicycles and other inputs relating to this product being exempt from Central Excise duty and carrying a high burden of duty incidence on the basic raw materials, there is no question of availing CENVAT credit in the hands of a bicycle manufacturer.

Consequently, the 2% duty only adds up to the cost of the product. Relief by way of restoration of the exemption for bicycles may have a revenue impact of about Rs 67crore only.

Further S. Gurmeet Singh Kular, President requested the Hon'ble Finance Minister to increase the limit of exemption of excise duty from 1.5 crore to 5 crore which will boost the morale of the cycle industry of the country which is the second largest industry in the world.

The Hon'ble Finance Minister was kind enough to give patient hearing to the problems put forward by the delegation and have assured to redress them positively

S. Gurmeet Singh Kular, President UCPMA is greatly thankful to Sh. Manish Tiwari, Hon'ble Union Minister of information and Broadcasting and Sh. Pawan Deewan President DCC (Ludhiana) for this gesture.

Among others, S. Manjinder Singh Sachdeva, General Secretary UCPMA, Sh. Ashok Prasar , Sh. Pankaj Munjal of M/s. Hero Cycles Ltd , Sh. Arun Alagappan of M/s. T.I Cycles , Sh. Angad Kapoor, Sh. I.D Chugh from Ms/. Atlas Group and Sh. Gaurav Himkar were also present.

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