TIOL-DDT 493
17 11 2006
Friday

Commerce Secretary G K Pillai said there was misinformation with respect to SEZs. He said in Hyderabad yesterday that:-

++ In fact they would create multiple fold economic activity in the country.

++ all the 237 SEZs formally approved so far would need only 34,510 hectares land, which would be less then one per cent of total cultivable land in the country and ten per cent of the total land that State Governments proposing to acquire for various public works like roads, industries, schools, canals and other buildings.

++ While all the SEZs set up since 1969 generated a mere Rs 2,700 crore investment so far, during last nine months of new SEZs started floating so far generated Rs 10,000 crore investment and provided employment to 40,000 people.

++ SEZ promoters are not allowed to sell any portion of the land allotted to them and in any case they were unable to conduct the proceedings the land would return to the government only.

++ Centre has directed States to use only waste lands or single crop cultivable lands.

++ Exception was given to use lands cultivating two crops for multi-product SEZs only and so far only nine such SEZs were cleared.

++ these SEZs will get relief upto Rs 90,000 crore on export activities, but would bring over Rs 1.5 lakh crore revenue to the government due to increased economic activity in form of income tax, sales tax etc.

Special Economic Zones are the future vehicle of economic activities - Kamal Nath

The Minister of Commerce & Industry, said that Special Economic Zones (SEZs) are the future vehicle of economic activities. Addressing the 8th Ernst & Young Entrepreneur of the Year Awards function in Mumbai, he said: “41 SEZs are already operational, while approvals have been given for more than 237 SEZs and about 244 proposals are before us. We are also conceptualizing very large regions termed Investment Regions for manufacturing which will provide world class infrastructure and give benefits, sizes and costing to units”.

He also said that India’s trade – both exports and imports – had been steadily rising and the country was fast emerging as a favourite destination for foreign direct investment (FDI).

Paying a big tribute to the private sector, Kamal Nath said: “At the centre of this success story have been our entrepreneurs who have been injecting verve and creativity into Indian industry as they focus increasingly on competing in global markets. Let us take civil aviation. Today, more than 65% of the passengers are carried by private airlines as against none in 1991. Similarly, in the telecommunication sector, the major communication traffic is carried out by private entrepreneurs. Construction is another example. In fact, most of the service sector growth, which forms 50% of our GDP, is due to the private sector. The success of entrepreneurs in services, in BPO, IT, Drugs and Pharmaceuticals, Films, Advertising, Education, Health, Tourism and other knowledge base sectors in India is only due to private entrepreneurs”.

Coir Composite boards exempted from excise duty

Coir composite boards, coir matting boards, coir boards exempted from excise duty by amending Notification No.4/2006-Central Excise, dated the 1 st March, 2006

NOTIFICATION No.44/2006-Cex., Dated: November 15, 2006

Whether benefit of SSI exemption is available if Cenvat Credit is taken - Board wants opinion

Board has asked the opinion of Chief Commissioners whether in view of the Supreme Court Judgement in Ramesh Food Products case, SSI benefit and cenvat credit can be simultaneously availed. Board had in F.No 267/14/06- Cx. 8 Dated 1 st June 2006 clarified that it is permissible. The Tribunal also held so in 2006-TIOL-1380-CESTAT-MAD. Please see our analysis of the issue in Open sesame

Now the Board wants comments on the same issue. Is it not settled? Or are they trying to open up the issue again?

Board's F. No. 21/1/2006 – CX I Dated: 06.10.2006

Until Monday with more DDT

Have a nice week end.

Mail your comments to vijaywrite@taxindiaonline.com