80 rice mills banned from inter-state trade

Friday, 22/06/2012

http://www.tribuneindia.com/2012/20120622/punjab.htm#2

The Excise and Taxation Department has banned nearly 80 rice mills in Muktsar district from interstate trading after declaring these as defaulters for not paying the infrastructure development (ID) cess for the past three years.

Taking a strict action on the defaulters, department officials has even blocked their TIN numbers to ensure that they cannot even make any transaction regarding import or export of rice.

Officials of the Excise and Taxation Department said the dues were in crores as the cess is applicable at 3 per cent on the total value of rice purchased from other states.

“After we cracked down on the defaulters, some of them have paid the cess amounting to nearly Rs 20 lakh. But their TIN numbers are still blocked and they cannot trade with other states until they clear all their dues,” said BS Kahlon, Assistant Excise and Taxation Commissioner (AETC), Muktsar.

“Before trading with other states, they will have to clear the dues and get a no-dues certificate,” Kahlon said.

When contacted, Bharat Bhushan Binta, president, District Muktsar Rice Millers Association, said, “Nearly three years ago, the state government started charging 3 per cent ID cess on the total purchase amount from other states. This is unjustifiable as a trader cannot pay such a huge amount as cess.”

“There should be some middle path so that the millers can do business and earn some profit,” added Binta.

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