Ludhiana, August 12, 2012: A joint meeting of the United Cycle and Parts Manufacturers Association (UCPMA) and All India Induction Furnace Association was held here on Saturday.
The meeting was presided by the UCPMA president Gurmeet Singh Kular and the All India Induction Furnace Association president KK Garg.
In this meeting, mater was discussed related to press release issued by Garg that they would buy scrap on floor price fixed by them plus Excise 12.36% plus Vat 4.4% .
In this regard, Kular presented his resentment saying that bicycle industry was not covered under the Central Excise. “How can they charge Central Excise while selling the scrap to the furnaces”, he questioned. He opined that if this resolution of Induction Furnace Association was implemented; exempted category Industry would face a loss of 3 to 4 thousand per ton.
Speaking on the occasion, KK Seth, CMD, Seth Industrial Corporation categorically said Bicycle Industry could not bear this loss and would become uncompetitive in national and international market.
The UCPMA chairman Manjit Singh Khalsa commented that in such circumstance Bicycle Industry would be compelled to sell their scrap to the neighboring states where they got the remunerative price of scrap to meet competition. It was seconded by Subash Lakra, MD, S.K. Bikes Pvt Ltd and Charanjit Singh Vishivkarma, MD, Vishivkarma Industries Pvt Ltd.
Jaswinder Singh Birdi, MD, Birdi Cycle Industries and Ravi Mahajan, CMD, Hippo Bikes proposed for deemed credit of excise duty on sale of scrap by the exempted bicycle Industry, as the raw material used by the Bicycle Industry included Central Excise of 12.36% .which was supported by all the members present in the meeting.
The meeting decided that in this regard a delegation consisting of members of bicycle industry alongwith members of Furnace Association would meet chief commissioner central excise and the concerned ministry in New Delhi.
In the meeting, Inderjit Singh Navyug, Senior Vice President, Harjit Singh Sondh, Vice President, Pardeep Wadhawan, Secretary, Baljit Singh Lotey, Ajit Kumar, Propaganda Secretary, and Achhru Ram Gupta, Finance Secretary, Rajeev Jain, Harpal Singh Bhamber, Gurcharan Singh Mankoo, J.P Jain and others were present.