5, u.k. industrial est, behind durian, 2nd pokhran …cosia.org.in/pdfs/tisa/2014-02-tisa.pdfshri....

5, U.K. Industrial Est, Behind Durian, 2nd Pokhran Road, Thane

Postal Registration No.MH/MR/TNC/71/2014Volume No.VI Issue No.II Dated 07.02.2014

Shri. Panditrao Bari receiving the honour

and Citation

Shri. Bapu Patil receiving the honour

and Citation

Smt. Jyoti Jirafe receiving the honour

and Citation

Dr. Ashok Pendse receiving the honour

and Citation

2 TISA 7th February, 2014 www.cosia.org.in

5TISA ( 7th February ‘14) www.cosia.org.in

CHAMBER OF SMALL INDUSTRY ASSOCIATIONSTSSIA House, P-26, Road No. 16 -T, Wagle Ind. Estate, Thane-4

Ph : 25803536, Fax : 25823303, E-mail: [email protected] Website : cosia.org.in

Yearly Subscription Rs.400/-.This Copy Rs. 40/- Cheques / DDbe drawn in favour as Chamber of Small Industry Associations.Published on 7th of every month.

Vice PresidentMr. V. D. TibrewalaMr. J. B. MehtaMr. A. D. Shah

Hon. TreasurerMr. Ninad Jaywant

Hon. Gen. SecretaryMr. P. S. Agwan

Hon. Jt. SecretaryDr. Madhu Gupta

Chairman Liasion OfficeGuwahati Mr. Sailen BaruahMengaluru Mr. Jairaj PaiPune Mr. Pravin Mistry

Secretary GeneralMr. Dilip Salvekar

Editorial BoardMr. M. R. KhambeteMrs. Sujata SoparkarDr. Ipshita GuhaMrs. Savita Kuchekar

PresidentMr. M. R. Khambete

Executive SecretaryMr. Eknath Sonwane

EC MembersMr. A. Y. Akolawala

Mr. Ashish Sirsat

Mr. Dharmu A. Vanjani

Mr. Haribhau S. Rokade

Dr. Ipshita Guha

Mr. J. V. Kulkarni

Mr. Jimmy Pauly

Dr. Kusum S. Joshi

Mr. Ninad R. Jaywant

Mr. Pandit Ramaji Bari

Mr. Prasad G. Kavishvar

Mr. Sachin R. Mhatre

Mrs. Suhasini R. Joshi

Mr. Sumant H. Mathure

Mr. Tarit Guha

Mr. V. K. KulkarniMr. Ashok PendseLate Shantibhai K. Patel

President

Vice President

vice President

Vice President

Vice President

Vice President

Hon. Gen. Secretary

Joint Secretary

Joint Secretary

Hon. Treasurer

Joint Treasurer

Mr. M. R.Khambete

Mr. J.B. Mehta

Mr. Govind Singh

Smt. Sujata Soparkar

Mr. Sandeep J. Parikh

Mr. Bhaskar Shetty

Mr. Sunil P. Kulkarni

Mr. P.S. Agwan

Dr. Madhu Gupta

Mr. Vilas D. Soman

Mr. Bhavesh Maru

○ ○ ○ ○ ○ ○ ○

[Views Expressed In the articles are the views of the authors.]

INDEX

Championing the cause of MSMEs

Page No. 7saMvaad

Law Update Page No.24-25ExciseExport

Court Ruling Page No. 25Negotiable Instrument Act

Cover Page Design - Mr. Mahesh Anjarlekar Mr. Eknath Sonawane

Articles Page No. 21-241. Appeal to Appellate Tribunal for Refund/Rebate ofCustoms/Excise Duty and Service Tax – No Fee Payable– Shri. Manmohan Gupta, Advocate

2. India’ Policy Meeting process for manufacturing hasbeen weakened by a missing middle says- Shri. ArunMaira, Member, Planning Commission, Govt. of India

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Page No. 28

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Reprot Page No. 8-20

1. Boosting Exports from MSME Sector2. EOU Scheme -Recommendations of -Committee on Review and Revamp

COSIA Activity Page No.27-28

TSSIA News Page No. 29

6 TISA 7th February, 2014


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8 TISA ( 7th February‘14)www.cosia.org.in

RECOMMENDATIONS OF THECOMMITTEEThe Committee met the differentindustry Associations anddiscussed with theirrepresentatives the various issuesthey face and suggestions toresolve them. Inputs were alsotaken from the differentGovernment departments andagencies. The detailedsuggestions are given in AnnexureVIII. Based on the suggestionsreceived, the Committee makesthe following recommendations.

1 Availability and Cost of CreditThe cost of credit and creditavailability is perhaps one of themost important factors forMSMEs. Availability of credit atinternationally competitive rates isa major issue facing the MSMEs inIndia. The Committee whilerecognizing the limited roomavailable for budgetary support,after reviewing the varioussuggestions recommends thefollowing:

1.1. Cost of CreditThe cost of export credit forMSMEs varies from 11-14% evenafter taking into account thecurrent 2% interest subventionavailable. This is on the higherside compared to internationalstandards. There is a need tolower the interest rate forMSME exporters. PadmanabhanCommittee (RBI) has alsorecommended inclusion of exportcredit under priority sectorlending and framing of a suitableinterest subvention policy for longterm export credit. While credit toMicro and Small enterprises is

considered as Priority Sectorlending, further support isrequired for MSME exports. TheCommittee recommends that anadditional 2% interest subventionmay be provided to MSMEexporters who repay on a timelybasis. A separate sub-limit of say8% for credit to MSME exporters,within the overall priority sectorlimit may also be stipulated.

1.2. Receipt of Interest SubventionThe credit of interest subventionon a timely basis is essential forexporters. Many banks reportedlypay the interest subvention onlyafter delayed receipt of theamount through RBI/Govt. TheCommittee recommends that RBI& MoC should examine thereasons for delay; so as to ensurethat interest subvention isprovided to all the exporters on atimely basis. PadmanabhanCommittee (RBI) has alsorecommended for a more promptand efficient working of thescheme so that the purpose of thescheme is fully achieved.

1.3. Foreign Currency CreditInterest Rate on Export Credit inForeign Currency is an importantfactor in export competitiveness.Currently, the interest rate is ashigh as Libor + 4%. The Committeerecommends to consider whetherthe spread can be reduced to Libor+ 2%. (Earlier it was stated to beLIBOR + 2.5 %.) PadmanabhanCommittee also recommends thatbanks may not charge a spreadbeyond a specific cap in respectof export finance, for whichrefinance is being provided byRBI.

1.4 Pre-shipment Credit inForeign Currency – ConversionLossesPre-shipment Credit in ForeignCurrency (PCFC) is a majorcomponent of export credit. TheCommittee recommends thatthere is a need to verify if underPCFC, the limits are convertedinto INR and on paymentreconverted to USD leading tolosses for the exporter.

1.5 Automatic Increase in CreditLimitWhen rupee is depreciating, thereis a need to immediately increasethe Export Credit Limit. TheCommittee recommends thatExport Credit Limit to MSME Unitsmay be increased by 20%automatically. Alternativelycredit limits could be set in USdollars wherever possible. Themethodology for this needs to beinstitutionalized

1.6 Swap FacilitiesUnder the swap arrangement, abank can buy US dollars up to itseligible swap limit from the RBIand further sell the same amountof dollars at the prevailing marketrates for swaps of a similartenor. As recommended byPadmanabhan Committee also,this Committee recommends thatRBI may consider the followingregarding the swap facilityscheme:a. Swap facility scheme which isavailable till June 28, 2013 beextended for at least 3 years withannual rollover,b. RBI to provide 100% refinanceunder the scheme, c. The fund forswap may be increased from USD

ReportReportReportReportReportReport of the Inter-Ministerial Committee onBoosting Exports from MSME Sector


6.5 billion to USD 20 billion toensure adequate availability d.50% of the total fund should beearmarked for MSME units.

1.7 Increasing Access to FinanceThe Committee received manysuggestions about the ways toincrease access to finance forthe MSME sector. Therecommendations of theCommittee are as follows:a. The Committee recommendsthat banks should aim that 40% ofExport Credit is earmarked bybanks for MSMEs(in consonancewith the share of MSMEs in India’stotal exports).b. As also suggested byPadmanbhan Committee, thisCommittee suggests inclusion of‘export credit to MSMEs’ as aneligible sector for deployment of50% of the respective bank’sshortfall in priority sector lending,automatically to be allocated toexport credit for MSMEs in thesubsequent year, with the balanceshortfall continuing to bedeployed in RIDF.c. Targets may be given to Banksto achieve a 10% increase in newMSME enterprises borrowers onan annual basis between 2013-17.Banks should also look at adding,say, 12 new exporting MSMEs perbranch in their Semi Urban andUrban branches every year.d. The buyer’s credit limit underautomatic route is recommendedto be increased from US $20million to US $50 million.e. A group should work out auniform credit rating format andprocess, to bring transparency andspeed to this important issue.f. Relaxation of RBI’s externalcommercial borrowings (ECB)norms, so as to allow allcategories of MSME engineering

exporters to raise ECBs for importof capital goods and equipment.g. Guarantee coverage underCredit Guarantee Fund Trust forMSMEs (CGTMSE) may beincreased to at least 10 times thepresent corpus.h. Industry Associations canbecome an effective institutionalmechanism for facilitating creditflow to MSME sector. The modelinitiated by SIDBI in this directionmay be replicated by lead banksin their domain MSME clusters.i. SIDBI and NSIC may bepermitted to raise SLR bonds / Taxfree bonds / Capital Gain Bondsfrom the market, as per theeligibility limit fixed by GOI.j. It is suggested to introduce ascheme called “Need forFactoring Services” with abudgetary support of Rs.750 crorein the next 4 years under whichassistance would be provided forequity or margin money supportfor factoring companies.

2 Marketing SupportThe need for better marketingand brand development wasrecognized to be a majorimpediment in increasingexports. There is a need to focusmore on the marketing needs ofthe MSMEs to enhance theirexports, many of which may notinvolve cost to the exchequor. Thebroad recommendations of theCommittee in this regard are asfollows:

2.1. Budget For MDA/MAIThe cost of accessing exportmarkets by the MSME’s needs tobe reduced drastically. Greatersupport for organizing tradevisits, trade promotion andfacilitation in major cities is‘required’. The budget for the

MDA scheme of DoC is aboutRs. 50 crores and the schemeallows support to a maximum offive visits by an exporter with atotal annual support of Rs. 7.10lakhs (4 to different focus areasand 1 to rest of the world). TheCommittee recommends thatthere is a need to significantlyincrease the funds available formarketing; and accordinglydouble the budgetary provisionsfor MDA/MAI schemes of DoC(from present level of Rs.50crores/ Rs.180 crores to Rs. 100crore/Rs. 300 crore respectively).Further increases may be made ina gradual manner, based uponabsorptive capacity of exportcouncils and take off of 2%interest equalization scheme ofProject exports, financed by EXIMBank.

2.2. Scope of MDA/MAIExporters need to frequentlyincur soft expenditures likebranding, advertisement,promotional events for whichfinancial availability is limited.These expenses need to beencouraged through variousmeans, including the concept ofallowing eligible companies todeduct against their taxableincome twice the amount ofexpenses incurred on certainexport related qualifyingactivities. The scope of MDA/MAIcould be amended, if necessary,to include such activities.

2.3 Convergence Of SchemesConvergence of “MarketDevelopment Assistance”schemes run by Ministry of MSME,NSIC, KVIC and Ministry ofCommerce needs to be ensured.

2.4 Focus On Asia

ReportReportReportReportReport


The Committee also noted that as50% of India’s exports are to Asia,MDA/MAI may focus moretowards Asia. Greater pro-activesupport would be required fromcommercial sections of Indianembassies in such countries.

2.5 Building Brand IndiaIBEF’s primary objective is topromote and create internationalawareness of the ‘Made in India’label in markets overseas and tofacilitate the dissemination ofknowledge of Indian products andservices. Against this backdrop, afund to subsidize MSMEs’marketing operations would be astep in the right direction. AnExport Development Fund may becreated if necessary in associationwith trade councils staffed withprofessionals having knowledgeof MSMEs in India, for selling toimporters elsewhere.

2.6 Better Market InformationIt was suggested that there is aneed to create, for the benefitof MSMEs a virtual marketinformation cell on latestdevelopment on consumerpreferences, standards,regulations, etc. where MSMEscan be made aware. TheCommittee recommends that itmay be examined forimplementation by industryCouncils, along with institutionslike IIFT. Support for litigatingbarriers set up in differentcountries could also beconsidered.

2.7 Support for E-CommerceIt was suggested that Support forE–Commerce be provided asE-Commerce portals providemarketing support to MSME andthe linked payment gateway

ensures payment without any riskto exporters. The Committeerecommends that all product EPCsmay set up e-enabled sites for therespective product groups; andDGFT may set up a website (as anew scheme) with support fromNIC. Padmanabhan Committee(RBI) also recommends supportfor E-commerce to reducetransaction cost and to earnbetter price margins.

2.8. Support from large corporateexportersLarge corporate exporters may beenlisted to promote some of theirdomestic MSME suppliers inforeign markets, perhaps as a partof their CSR activities. This couldalso be incentivized.

3 Productivity/Technology/SkillUpgradation of MSMEsThe recommendations of theCommittee are as follows:3.1. Labour Law ModificationsPolicy intervention wassuggested for overcoming majornon-compliance in garmentfactories through twoamendments in the Factories Act,1948.i). Overtime wages at the rate ofone and one quarter times of theregular rate (Section 59)ii). The cap of 50 hours a quartershould be removed (Section 64).

The Committee recommends thatadjustments should be made andMoLE should expeditiouslyexamine this issue, especiallyregarding the restriction of theovertime cap of 50 hours aquarter. The Central Act providesfor 50 to 150 hours overtime.Karnataka has perhaps sent suchan Amendment to MoLE. Higherworking hours greater than 8

hours to be allowed (with 5working days).Women may beallowed to work at night withsafety mechanism in place.Karnataka has perhaps alsorecommended to tweakMinimum Wage – with lower wageprescribed for Backward Areas.The Committee recommends thatthis may be implementedexpeditiously.

3.2 Enhancement Of CLCSSCredit Linked Capital SubsidyScheme (CLCSS) provides upfrontcapital subsidy on institutionalfinance for technologyupgradation to SSI units, includingtiny, khadi, village and coirindustrial units. Considering thespecial need for enhancingp r o d u c t i v i t y / t e c h n o l o g i c a lupgradation of MSMEs, theCommittee recommends that theCredit Linked Capital Subsidylimit, currently Rs.1 crore, may beallowed to be increased to Rs. 5crore, and that Subsidy may alsobe treated as Margin money. TheCommittee noted that the CLCSSof MSME is presently only formachinery, and subsidy is 15%.TheCommittee recommends that thesubsidy level may be enhanced to25%, and also recommendsinclusion of support forinfrastructure and CETPs.Alternatively, while keeping thecapital subsidy level at 15%, anadditional component of interestsubvention (on the lines of TUFSfor textiles) could beimplemented for the Engineering,Chemicals & plastic goods sectors.Procedural issues regarding theCLCSS also need streamlining. TheCommittee accordinglyrecommends increase inbudgetary provision for theCLCSS.For sustained financing



support of the scheme, Govt. mayconsider levy of a cess of 0.1% onthe production by all engineering,chemicals and plastic units.

3.3 Design SupportDesign support and exposure toMSMEs is essential for betterproduct development. TheCommittee recommends that thismay be considered, andassociations of MSMEs may bemade Implementing Agencies,and the Existing scheme of MSMEbe modified to provide both hardintervention (infrastructure/common facility centre) and softsupport (training/DPRpreparation).

3.4 Research/Resource CentresIt was suggested to allocate fundsfor setting up innovativeresearch/resource centre. TheCommittee noting that the valueaddition in knitted export is high,recommends setting up of Centersat T irupur, Kolkata andLudhiana.In view of Training/SkillDevelopment being a significantcomponent of the ResourceCenters, the Centers could beconsidered a part of IntegratedSkill Development Scheme (ISDS).

3.5 Process/ Product DevelopmentCentresFor quality product development,Process cum ProductDevelopment Centre should beestablished in every cluster withtechnical staff for testing theproducts and to assist indevelopment of the products. TheCommittee recommends thatAssociations may provide the listof Product Clusters where aProcess cum ProductDevelopment Centre is required.Matter needs to be examined for

approval thereafter by MSME/DOC.

3.6. Tool RoomsTowards enhancing skill level ofworkers of MSME sectors, settingup of 100 Tool rooms/TechnologyDevelopment Centre isrecommended

3.7. Common Facilities CentresIt was suggested that ‘clusters’may be provided with CommonFacility Centres for qualitytesting, effluent treatment etc.The Committee recommends toincorporate this in the relevantschemes, like the cluster schemefor Electronics.

3.8 Compilation Of SkillDevelopment SchemesThere is a need to dovetail thevarious HRD schemes of DIPP,Ministry of HRD, MoLE, Ministry ofMSME and also StateGovernments, so that themaximum utilization of funds forthe MSMEs could be ensured. TheCommittee recommends thatAssociations should compiledetails of all Skill DevelopmentSchemes/Programmes of GOI, andhelp the MSME exporters to getmaximum benefit out of theseschemes.

3.9. Linkages With TechnicalInstitutionsTo support technologicalinnovation and design, technicalinstitutions such as IIT or NIT may‘adopt’ export oriented MSMEclusters. Preferably, ‘designclinics’ may be set up for MSMEclusters. The Committeerecommends that linkages of eachcluster with different technicalinstitutions, including CSIR labs,must be ensured.

3.10 Technology AcquisitionSchemeIt was suggested that the Ministryof MSME, through its arm NSIC, canconsider looking at providing aplatform for technologicalalliance for SSIs with GlobalCompanies. A Technologyacquisition scheme to provideassistance in both, developmentof indigenous R&D products aswell as procurement of globaltechnology, could be considered.

3.11 Enhance InnovationInnovation helps in continuousimprovement of product quality.To enhance innovation at low cost,a list of dead patents may beprovided to SMEs. In this regard,the Committee recommends that:a. Indian Patent Office may do so,for local patents,b. The Associations may inform ofproblems in access from foreignpatent office, if anyc. Possibility to use commercialoffices in Indian Embassies beexamined and implemented.

4. Duties/Indirect Taxes/Incentives Related IssuesThere is a need to have asupportive duty and incentivestructure for the MSME sector, sothat the manufactured product isat a competitive price at theinternational level. Products ofMSMEs need more incentives asMSMEs have a limited resourcebase. While the Committeerecognizes the fact that incentivescan be only short term stop gaparrangements, nevertheless, theCommittee also recognizes thatthe MSME units need more hand-holding and better risk mitigation.In view of this, the Committeerecommends the following:



4.1. Differential Tax RegimeTax deductions for exportturnover/ profit were a bigincentive for boosting exports(instead of focusing on domesticmarket). But with the movementtowards Direct Taxes Code, profitrelated deductions are beingphased out. To provide moreincentive for exports and keepingin view the acute situation ofIndia’s CAD, the Committeerecommends for considerationthat export turnover/ profitdeduction for MSMEs may beintroduced for a limited fixedperiod of 5 years viz. 2014-15till 2018-19.Alternatively, theCommittee recommends adifferential tax regime (for 5years), for MSME exports (withexports profit being taxed at alower rate of 5 to 10%). Further,for marketing expenditurerelated to development of exportmarket & sales (excluding exportsales commission), theCommittee recommends 200%deduction in respect of MSMEexporters.

4.2. Double Weightage for MSMEsDouble weightage for MSMEs,along with other weightages forgrant of recognition as StatusHolders, was suggestedThe Committee receivedrepresentation that higher rate ofexport concession/incentiveshould be given to MSMEsexporters compared toconcession/incentive given tolarge industries.

4.3 Removal of export incentivesfor large companiesExport incentives for largeexporting units may be phasedout and focused incentivesprovided for the MSME sector. The

Committee recommends that thematter be considered by DGFT

4.4. Additional Incentive for HightechIt was suggested that Investmentin High Tech Exports Units shouldbe made and policy measures maybe taken to encourageentrepreneurs to move in thisdirection. The Committeerecommends that additionalexport incentives for export ofHigh Tech items need to beprovided by Department ofCommerce.

4.5 Reasonable Freight ratesThe Committee receivedrepresentation that becauseCONCOR (Container Corporation)is having a monopoly, freightrates for export cargo wereextremely high. The Committeerecommends that while freightrates need to be commerciallyreasonable, differential rates forMSME export products could beconsidered. The proposed RailTariff Authority would also behelpful in this regard.

4.6 High Cost of ECGC CoverAt present, ECGC reportedlyrequires banks to take insurancefor the entire export advancebook while issuing whole turnoverpolicy. The payment of premiumfor covering the entire exportadvance book may work out to bean expensive proposition forbanks, as the margins are thin incorporate deals. The Committeerecommends that ECGC mayconsider introducing a newscheme for MSMEs permittingbanks to cover segment/sectorspecific portfolios. TheCommittee also receivedrepresentation for introduction of

a separate ECGC policy, with morefriendly procedures to beimplemented for Small & MicroExporters (based on ExportTurnover). The Committeerecommends ECGC to examinethis issue.

4.7. Specific Duty Drawback RatesThe Committee, whileappreciating the need forrebatement of all taxes in theexport product noted that afterdiscontinuation of DutyEntitlement Pass Book (DEPB),there were various exportproducts for which specific DutyDrawback rates were not fixed.The Committee recommends thata list of items without a DutyDrawback Rate may be providedby the export associations alongwith cost and other data, so thatCBEC/Duty Drawback Committeemay take further action to ensurefixation of separate DutyDrawback rates.

4.8. Inverted Duty StructureThe Committee receivedrepresentation that the Customduty on raw materials used in aproduct should be lower than theimport duty charged on thefinished products e.g. Felt usedon lawn tennis balls, copper andzinc in brass rods etc. TheCommittee recommends thatdifferent Associations shouldgive a list of items with no dualuse – but with inverted dutystructure. CBEC to examine thematter thereafter, for appropriaterectification. Information on therelative value added would alsobe required in order to rectify thedisadvantages.

4.9. Advance AuthorizationThe Committee noted that



Domestic suppliers who arehaving invalidation of advanceauthorization cannot get thebenefit of supplies made beforeapplying for advanceauthorization. The Committeerecommends that this issue, beinga procedural one, be examined byDGFT.

4.10. Expeditious Rebates/RefundsIn order to expedite the processof rebates and refund for MSMEexporters, the Committeereceived various suggestions like:a. The rebate claims be filedelectronically;b. The hard copies of documentssuch as shipping bills, ARE – I dulysigned by customs etc. may besubmitted manually;c. If possible the CENVAT rebateclaims may be paid electronically;d. If possible the time period forrefund of the CENVAT claim mayalso be reduced to within onemonth.The Committee recommends thatthese issues may be examinedand resolved by CBEC/DGFT.

4.11. Quick Payment of DrawbackFor payment of drawback, scrollsare sent to the authorized bank.After the receipt of scroll, somebanks take up to 15 days to makethe payment vouchers manually.There is no fixed time for takingout the scroll. It was suggestedthat the customs departmentshould transfer the drawbackamount electronically to theexporters’ account as everyexporter ’s bank A/c number isrecorded in the EDI system. TheCommittee recommends thismatter for follow up withdefaulting banks

4.12. Refund Of Excise DutiesIt was suggested that refund ofExcise Duty against physicalexport under Rule 18 of centralexcise may be done on linessimilar to Draw Back refund. It wasalso suggested to dematerializethe duty scrips under chapter 3.The Committee recommends thatthe same may be examined byCBEC, for implementation in atime bound manner.

4.13. Refund Of VATThe Committee noted that thereare many cases of VAT refundpending for more than onemonth, especially in UP, Haryanaand Delhi. The Committeerecommends that there should bea provision of a maximum periodof one month for refund of VATbeyond which interest may bepayable to the exporters; and thatthe DoC should take up the matterwith the respective StateGovernments. The Committeealso recommended thatimplementation of GST should beexpedited, to provide a stablepolicy framework.

4.14. Service Tax On InwardRemittancesThe Committee noted that ServiceTax is levied on conversion toRupees on inward remittances ofexport proceeds. The Committeerecommends non-levy of servicetax on such conversion of exportproceeds.

4.15. Status Holder IncentiveSchemeThe MSMEs Exports would benefitif the Status Holder IncentiveScheme could be extended until2019, which has been withdrawnfrom the year 2013-14; and also for

allowing transfer of scrips to thirdparties. The Committeerecommends DGFT and DoR toreexamine the matter.

5.5 InfrastructureGood infrastructure facilitiesensure the proper delivery andsafety of the exported productalongwith savings in time andcost. The major recommendationsof the Committee oninfrastructure facilities for MSMEsare as follows:5.1. 24*7 FacilitiesThere is a need to allow exportconsignments under DutyDrawback/FTP incentive schemes,on a 24*7 basis, so as to ensurefaster delivery of export product.The Committee noted that exportof Duty Drawback consignmentshas been allowed 24*7 forBangalore, Chennai, Delhi, andMumbai Air Cargo Complexes.The Committee recommends thisfacility to be extended to othermajor ports in a specified timebound manner by CBEC.

5.2. Port CongestionThe congestion in ports mayhamper the export effortsof MSMEs. The Committeerecommends that DGFT/CBEC maylook into the matter, and takesimilar measures includingelectronic payments, so that portcongestion does not impede theexport efforts of MSMEs.

5.3. No Detention of ExportConsignmentsAccording to FTP provisions, noexport consignment shall bedetained at ports. The Committeerecommends that CBEC shouldissue Circular again (earliercircular in 2011), so that Export



Consignments are not stopped atthe port. Specific instances couldbe brought to the notice of CBECfor remedial measures.

5.4. Uninterrupted Power SupplyIt was suggested thatuninterrupted power supply tothe export-oriented MSMEclusters/ industrial parks may beensured, as it would increaseworking hours and labourproductivity and thereforeexportable surplus. TheCommittee recommends that thepossibility of providingindependent feeders for powersupply for such clusters beexamined, in consultation withthe State Govts., so thatuninterrupted power supplycould be ensured.

5.5. MSME Clusters NearHighway/Rail CorridorsLocating MSME clusters close tothe National Highway or railwaycorridors was suggested so as toensure facilitation for boostingexports. Keeping in view theincreasing difficulties in landacquisition, the Committeerecommends that MSME exportclusters may be so identified, andState Governments may beencouraged to acquire land nearHighways and Railways corridors.5.6. Enhancement of ASIDESchemeThe funds available under theASIDE scheme for development ofexport related infrastructure arequite limited. In view of thesignificant gaps in infrastructure,increased funding for ASIDE alongwith a prioritized list of projectsneeds to be ensured.

5.6 Institutional FrameworkThe institutional framework to

support MSMEs is essential fortheir all-round development andcontribution to the exports of thecountry. The Committeerecommends the following forstrengthening the institutionalframework for MSMEs:

5. 6.1 Focus On MSMEsThe Committee recommends thatan institutional mechanism tohear MSMEs may be constitutedwhich may include the following:a. An Inter-ministerial grievanceredressal mechanism to addressthe policy related issues ofexporters related to DGFT and theCentral Ministries.b. The Board of Trade to discussexport strategy, continuouslymonitor progress of executionand suggest course correction,with a focus on MSMEs.c. The Committee received asuggestion for constitution of aStanding Committee ofSecretaries to sort out policiesand implementation relatedissues of exports by MSMEs. TheCommittee recommends that thesaid committee may beconstituted and institutionalizedin the Cabinet Secretariat.

5.6.2. Facilitation SupportMSMEs face the problem ofunpaid invoicing in exports. It wassuggested that a facilitationcouncil should be set up to takeup the matter on their behalf at asubsidized cost. The Committeerecommends that the IndianEmbassies (commercial sections)must also be directed to assist inthis regard.

5.6.3. Zonal Coordination andRevival of REIACThe Committee noted thatTransactional issues may result in

delay of export consignmentssometimes if there is lack of co-ordination between Customs &DGFT. The Committeerecommends that there is a needto strengthen the existingmechanism and co-ordinationbetween Customs & DGFT. ZonalDGFTs and the respectiveCommissioner of Customs shouldregularly convene meetings toresolve issues, particularly ofMSME exporters. Regional ExportImport Advisory Committees(REIAC) may help the MSMEsexporters in suggesting measuresrelating to customs clearance,shipping, credit insuranceand export inspection.The Committee receivedrepresentations that these REIACmay be revived and aninstitutional arrangement shouldbe made for dialog with MSMEexporters.

5.6.4 Role of AssociationsThe awareness among MSMEs ofthe different schemes seems tobe limited The Committeerecommends that in order to guideMSMEs, the export Associationsneed to be more pro-active andthese Associations must regularlyupdate/inform the MSMEsregarding the export relatedschemes, procedures andfacilities of the Government.

5.7 Sector Specific IssuesThe Committee consulted theindustry associations of thespecific sectors having high exportpotential. The recommendationsof the Committee on someimportant sectors are as follows:

5.7.1 Chemicalsa. One of the main raw materialsfor pigment industry is urea and



potash which is only sold tofarmers at subsidized rates. It wassuggested that urea & potash begiven at non-subsidized rates tothe actual manufacturer ofpigments. The Committeerecommends that DGFT resolvethis matter in consultation withDepartment of Fertilizers –(imports directly by the industrycould be examined).

b. Fatty Alcohols manufacturershave invested huge amounts inEurope to distribute all grades ofFatty Alcohol. However, Europehas levied anti-dumping duties onthis product, causing an adverseimpact of over 7% higher costs.Such high and unfair duties areaffecting the exports of FattyAlcohols from India. Committeerecommends that mechanism beinstitutionalized to examinewhether anti dumping duties orother non-tariff barriers are beingused by any particular country, sothat the issues could be taken upat a Governmental level forresolution.c. Environmental ban has beenput up in Chemical industrialareas such as Ankleshwar, Vatvaand Lote Parshuram whereexpansion of the existing capacityis not allowed. Moreover, thereare stringent product specificnorms. An example was givenregarding the Lote ParshuramIndustrial Area which appliedunder the ASIDE scheme forexpansion of the common ETP;however, no action has beentaken. This has resulted in itsexports declining from aboutRs. 1700 crore to Rs. 600 crore. TheCommittee recommends:i. To provide assistance underASIDE scheme for upgradingCETPs

ii. DOC may expeditiously followup for approval regarding CETPproposal for Lote Parshuram, andiii. D/o Chemicals &Pharmaceuticals proposes to levya cess of 0.1% on ChemicalProduction for creating a corpusfund for TUFS for Chemicals. Thisproposal (as also discussed in para4.3.1) may be expeditiously takenforward.d. The Committee receivedrepresentation that to safeguardmanufacturers of Oleo ChemicalIndustry, it is essential to correctthe inverted duty structure. TheCommittee recommends this maybe examined by CBEC.Data onvalue addition at various stagesneeds to be provided

5.7.2. Handicraftsa. In spite of support forhandicrafts, exports from thissector are declining.Development Commissioner (H)needs to examine the problemsfaced by handicraft clusters likebrassware, wood products, stonework etc. It was suggested thatthrust should be given to theMSME sectors which have naturaladvantage, (like Handicrafts). TheCommittee recommends thattraditional crafts need to besupported for exports andrequired budgetary support maybe provided.b. There is need for a vigorouscluster development process toimprove the competitiveness oftraditional products.c. It was suggested that there is aneed to enlarge the list of dutyfree import provisions ofembellishment, trimmings andtools to the handicraft sector.DGFT may provide a list to CBECfor examination.d. It was suggested that there is a

need for the creation of ICDs forcarpet producing areas ascontainerized, custom-clearedtransportation from themanufactures’ premises or acentralized location near themanufacturing areas to the port ofshipment is most critical. ExistingICDs are also located outside themain manufacturing areas e.g.Varanasi ICD. The Committeerecommenda that CBEC mayexamine the issue.e. The committee receivedrepresentation that AutomatedScrap Monitoring System (ASM)may be installed at ICDMoradabad for scanning RadioActive Contamination (Cobalt 60)in metal handicrafts. Ministry ofShipping is also likely to installRadiation Portals/RadiationMonitors at major seaports in theyear 2013.For airports, Bureau ofCivil Aviation is mandated toinstall such Radiation Portals/Radiation Monitors. Committeerecommends that scheme beimplemented early.

5.7.3. Leathera. Increased assistance at 50% onthe investment made in plant andmachinery subject to ceiling ofRs. 2 crores under the IntegratedDevelopment of Leather Scheme(IDLS) (as against the current limitof 30% for SSI and 20% for non-SSIand 20% for all units for assistanceabove Rs.50 lakhs) was suggested.The Committee notes thatfunding is not a problem under thescheme, and recommends thatthe scheme guidelines may bemade similar to schemes of M/oMSME / M/o Textiles, in respectof MSME exporters.b. It was suggested that 100%assistance may be consideredunder MAI scheme for organizing



visit of leather sourcingdelegations. The committeerecommends that MAI supportneeds to be expanded.c. It was suggested that Kanpur,Jalandhar & other ICDs beincluded as designated ports forimporting raw hides & skins, alongwith posting of Veterinaryinspector to enable these placesfor AQCS. The Committeerecommends that the matter maybe expeditiously resolved byDGFT, CBEC and Deptt. of AHD&F.d. Relaxation in import procedureof hides, skins and leathers wassuggested for reduction intransaction cost. The Currentposition is: i) Raw & Pickled Hidesand Skins can be imported intoIndia against submission ofVeterinary Certificate of thesupplying country as per theformat notified by DAHD&F andupon obtaining NOC from AQCS inIndia. ii) Semi-processed andfinished leathers can be importedinto India against submission ofVeterinary Certificate of thesupplying country as per their ownformat and upon obtaining NOCfrom AQCS in India. TheCommittee recommends thatDGFT may resolve the matter inconjunction with DAHD&F.e. The association requested thatfrequency of train services shouldbe increased, between Agra andMumbai & Kanpur and Mumbai.This needs to be examined by Min.of Railways & Concor.

5.7.4. Textilesa. Suggestions were receivedregarding increasing overtimehours allowed and women to beallowed to work at night withsuitable safety measures atleastin the textile industry. The

Committee supports thesuggestion.b. It was suggested to calibrateexports of Cotton Yarn. It was alsosuggested that Import duty oncotton yarn be reduced from 12%and that export incentive forexport of cotton yarn beremoved. The Committeerecommends that there should beno export incentive for export ofeither cotton or cotton yarn.c. It was suggested to incorporateseparate entries in the Drawbackschedule for cotton Woven/Knitted with Elastomer (Spandex/Lycra) special finish and suitablymodify value caps. TheCommittee recommends that thematter may be resolved by CBEC/DOR.d. It was suggested that in orderto avoid unintended exclusionsFabrics items may be covered atthe four digit HS level and Madeups items at the two digitHS level. The Committeerecommends that the matter maybe examined by CBEC.e. To reduce transportation costfor raw materials, it wassuggested to suspend CabotageRules for transporting Cottonfrom Gujarat & Maharashtra toTamil Nadu for a period of sixmonths every year (for say 3 to 5years) i.e. from Oct to March, sothat foreign vessels can carrycoastal cargo, until infrastructurefacilities are streamlined in thecountry. The Committeerecommends that Ministry ofShipping may examine thismatter.f. It was suggested to issue dutycredit scrip on import of specialtyfabrics at the rate of 5%, so as toenlarge garment export by usingfabrics which are not widely

available in India. The committeerecommends lowering of theimport duties on fabrics notsignificantly manufactured inIndia. CBEC may examine theproposal on receipt of details.g. It was suggested that Govt.should notify that TextilesCommittee’s opinion onclassification regarding garmentsshall be binding on Customs. TheCommittee recommends thatCBEC may give due considerationto the opinion of the TextileCommittee while finalizing theclassification.

5.7.5. Plasticsa. There is an urgent need toincrease the export of valueadded plastic items and increaseits share in the total plasticexports. A major constraint inachieving this goal is the lowproduction volume of plasticprocessing industry. Therefore, itwas suggested that TechnologyUpgradation Fund is essential forPlastic Processing Sector. TheCommittee recommends that thisissue may be considered. D/oChemicals to examine andformulate TUFS for plasticprocessing sector, on similar linesas proposed for Chemicals.b. Plastic Processing Parks, havingfacilities for design andprototyping of plastic items,mould & die design centers, toolrooms etc., was suggested to beset up.Action on setting up of 4 PCPIRsshould be expedited. TheCommittee recommends thatD/o Chemicals should closelymonitor and expedite progress ofthe PCPIR projects. For CommonFacility/Design Center, scheme ofD/o MSME may also be tapped.



5.7.6 Agricultural & FoodProcessing Productsa. It was suggested that directpurchases from the farmersshould be allowed to reduce thetransaction costs. There is aproblem in procurement of rawmaterial due to restrictiveprovisions in APMC Acts. Marketreforms carried out by the Statesvary from State to State. Somedegree of uniformity in terms ofthe provision in the Model Act isneeded for ensuring smoothsupply of raw materials TheCommittee recommends thatState APMC Acts need to bemodified, so as to enable directpurchase by exporters from thefarmers, of at least horticulture/vegetable items.b. In Food Processing, QualityCertification is a major issuewhere costs are very high. TheCommittee recommends that thefacilities for Quality Certificationmay be expeditiously expanded.c. Most of the processed foodproducts were brought under levyof excise duties from March, 2011.Thus, processed food products,except fruits, vegetables and milkproducts, attract excise duty of 2%without CENVAT facility, and of6%-12% with CENVAT facility. Italso attracts VAT ranging from 4%to 16% at state level. Further,excise duty of 6-12% is also leviedon food processing equipments.For attracting investment to thesector, exemption from exciseduty was suggested for allprocessed food products,produced by MSMEs.d. It was suggested to developinfrastructure including setting upof post-harvest handling facilities,food testing laboratories, pack

houses etc. The Committeerecommends greater investmentto boost post-harvestinfrastructure facilities, andrecommends that for suchschemes Plan funds need to beenhanced. Agricultural exportshave a huge potential. The biggestbottleneck for this sector isrequisite infrastructure,particularly post-harvest. Planschemes funds are inadequate,and the Committee recommendsthat this sector requires morePlan funds for achieving its fullexport potential.

5.7.7. Meat & Meat Productsa. The benefit under VisheshKrishi Gram Udyog Yojana whichwas withdrawn from meat & meatproducts around two years back,be restored.b. Efforts should be made forestablishing equivalence of SPSmeasures/standards betweenIndia and other importingcountries.c. MOU has been signed withChina for export of deboned anddeglanded frozen buffalo meat.Similar agreements need to bepursued with other countries.

d. APEDA should facilitate andgive hand holding services to thepromoters of abattoirs. Similarly,Dimapur Abattoir could facilitateaccess to Yangon for export ofmeat products. There is need forconvergence and formalintervention.

The Committee recommends thatthe issues may be examined byDOC.

5.8. Specific Market RelatedThere are various problems faced

by MSMEs in some specificmarkets like EU, USA and othermarkets. The Committee reviewedsuch problems brought to itsnotice, which related to specificmarkets, and majorrecommendations of theCommittee are as follows:

5.8.1. Transit Period For Sight BillsUnder FEDAI Transit Rules forNorth America and Latin America,it was suggested that the transitperiod for sight bills be increasedto 60 days from the present levelof 25 days. The Committeerecommends that DFS/RBI mayexamine the issue. PadmanabhanCommittee (RBI) alsorecommends for enhancement ofthe transit period for sight bills forlong distance market.

5.8.2 Focus Market SchemeExpansionFocus Market Scheme helps theexporter to offset high freightcost and other externalities tomake Indian exports competitiveinternationally in selectcountries. The Committeereceived representation that EUand USA may be brought underFMS for those engineeringproducts which are exportedpredominantly by MSME such asarticles of iron and steel; handtools; machine tools; auto parts;medical devices etc. TheCommittee recommends thatfocused export incentives forproducts from MSMEs beexamined by DGFT.

5.8.3 Export Of AgrochemicalsThe countries where India hasvery good export potential likeUAE, Syria, and Lebanon do notallow import of Indian



agrochemicals unless they areregistered in USA. The Committeerecommends that the matter maybe taken up by DOC bilaterallywith the said countries.

5.8.4. Remittances From ThirdCountriesTimely and proper remittance ofpayments is an important part ofthe trade cycle. The Committeereceived representation thatthere are problems in remittancesin dollars from countries likeSudan. The customers areprepared to remit payments fromother countries, but RBI insists onpayment from the bank accountof that particular party. Certainexport orders have been lost inthe past due to this particularreason. The Committeerecommends that this beexamined by RBI for resolution.DGFT/CBEC could ensure thatlanding certificates are suppliedfrom destination country likeSudan.

5.8.5. Export Promotion In EastEuropeThe committee receivedrepresentation that assistancemay be provided for exportpromotion under the MDAScheme for East Europe. TheCommittee recommends thatDOC may examine the issue.

5.8.6. Review of FTAsMetal packaging is exported fromIndia to Sri Lanka but they are notcovered in the FTA. It wassuggested that there is a need tolook into the inclusion of the tariffitem in the Sri Lanka FTA.Similarlyduty concessions extended fortractors when imported fromJapan was mentioned to be

affecting the interest of localtractor manufacturer TheCommittee recommends that thisissue should be examined by DOC

5.9 General RecommendationsIn additions to specific problemsfaced by MSMEs, there are somegeneral issues faced by MSMEs inIndia. These issues are not sectorspecific or site-specific but aregeneral in nature. The Committeereviewed such issues andrecommendations of theCommittee are as follows:-5.9.1. Redefinition Of MSMEThere were representations bymost MSME exporters that theMSME Investment Limit underMSMED Act, 2006, may be revised.The Committee notes that thisissue has been partially addressedin the 2013 Budget announcementwhich mentions that non taxbenefits of MSME would continueto be available for 3 years after theunits graduating to a higher level,.However, keeping in view thedefinitions for MSMEs in othercountries, and the inflation inIndia in last few years, thisCommittee feels that the levelsof capital investment for definingMSMEs are too low. TheCommittee accordinglyrecommends enhancement of thecapital investment criteria byatleast 50% for MSMEs.This isessential to ensure pricecompetitiveness through someeconomies of scale, as well as toensure ‘export surplus’.

5.9.2. Incorporation of EmployeeNumber In MSME DefinitionMany countries incorporateemployee numbers in theirdefinition of MSMEs. TheCommittee also received

representation to incorporate thisaspect into the definition ofMSME. The Committeerecommends that like othercountries including Bangladesh,the possibility of incorporatingemployee numbers for thepurpose of definition of MSMEs,may also be examined.

5.9.3. Promoting MSME Exports inDefence SectorThe threshold for offset policy ofDefence for procurement shouldbe reduced to Rs.75 crore. Thetenure of banked offset clausewhich has been recentlyintroduced needs to be increasedto around 5 years. The Committeerecommends that offset is apowerful tool to support high techitems related to the defencesector. Offset Policy is not beingfully utilized to involve the MSMEPvt. sector for such export of hightech items from India. TheCommittee recommends thatMoD must re-examine in detailthe procedure outlined in theoffset policy, so that it can beleveraged to boost the capabilityand exports of high tech. itemsfrom MSMEs, particularly in theengineering and electronicsproduct groups.

5.10 Concluding RemarksThe Committee was conscious ofthe fact that a number of therecommendations would increasethe budgetary expenditure/reduce tax revenue andconsequently add to the strain onfiscal deficit. However theCommittee felt that the mostcritical issue facing the Indianeconomy today is CAD, and thatthere is no sustainable medium/long term option for the country



but to boost exports. Accordingly,while recommending taxation/fiscal incentives, the Committeehas suggested that the benefitmay be limited to a period of 5


The undersigned is directed torefer to the above mentionedsubject and to say that aCommittee was constituted bythe Government to Review andRevamp of Export Oriented Unit(EOU) Scheme with a mandate tosuggest suitable steps to make thescheme more vibrant andattractive for investors, developa synergy between the EOUscheme and SEZ scheme to makethem complementary to eachother and aligning the EOUs tomake them more globallycompetitive.

2. The recommendationssubmitted by the Committeewere subsequently examined inconsultation with line ministries.Based on such consultation, thefollowing measures are taken toimplement the acceptedrecommendations:Validity of the period of Letter ofPermission (LOP) issued to EOU :Lop issued to an EOU will have aninitial validity for a period of 2years to enable the Unit toconstruct the plant and install themachinery. The Next extension ofone year may be given by the DCfor valid reasons to be recordedin writing. Subsequent extensionof one year may be given by theUAC subject to condition that two-thirds of activities including

construction, relating to thesetting up of the Unit arecomplete and a CharteredEngineer’s certificate to this effectis submitted by the Unit.Subsequent extension, ifnecessary, will be granted by theBoard of Approval.

Aligning duration of goods andservices in EOU with the term ofLOP: At present, capital goods arerequired to be installed orotherwise used by the EOU,within a fixed period from thedate of import or procurementthereof and other goods are to beused in connection with theproduction or packaging of goodswithin a period of three years. Incase of failure to use within abovestated period, extension isrequired. It has now beendecided that the period of usageof goods should be co-terminuswith the period of LOP. This woulddo away with the current practiceof obtaining multiple extensionfor goods and LOP separately.

Setting up warehousing facilitiesoutside EOU premises and outsidethe jurisdiction of DC: EOUs whichintend to have their warehousesnear to the port of export toreduce lead time for delivery ofgoods overseas and to addressunpredictability of supply orders

will now be permitted to set upsuch warehouses subject to theprovisions related to exportwarehousing as given innotification No. 46/2001-CentralExcise (N.T.), dated 26.6.2001 andthe C.B.E. & C. Circular No. 581/18/2001-CX., dated 29.6.2001 asamended.

Sharing of facilities among EOU/STP/EHTP/SEZ Unit: In order toallow optional utilization ofinfrastructure facilities it has beendecided that sharing of facilitiesamong EOUs may be consideredby the UAC on case-to-case basisand the recommendations besent to the BoA for final approval.While accepting such proposals,the NFE obligations of the Unitsshall not be altered. However,sharing of facilities between EOUsand SEZs Units should not bepermitted.

Inter-Unit transfer (IUT) of goods& services: In order to facilitate agroup of Eous which sourcesinputs centrally to obtain bulkdiscount, reduce cost oftransportation and other logisticscost and to maintain effectivesupply chain, IUT of goods andservices will be permitted on acase to case basis by the UAC.Further, the procedure for Inter-Unit Transfer (IUT) of finished

ExportsExportsExportsExportsExportsEOU Scheme –Recommendations of Committee on Review and RevampSubject : Recommendations of the Committee on Review and Revamp of EOU Scheme –Regarding.

years. Where increase in budgetoutlays have been suggested forsome Plan schemes supportingMSME’s exports, the Committeealso felt that there may be a need

to curtail consumptionexpenditure in other schemes, soas to ensure that India remains onthe path of fiscal consolidation.[Source : dgft.gov.in]


goods will be clarified by C.B.E. &C. in order to bring uniformity inthe practices and proceduresadopted by various field offices.

Self-warehousing and self-certification of goods imported/procured by EOUs: The scheme ofself-warehousing and self-certification was introduced videCircular No. 19/2007-Cus., dated3.5.2007 dispensing with therequirement for physicalverification of imported/indigenously procured duty-freegoods before issuing re-warehousing certificate by theproper officer in respect of Unitsset up under EOU/EHTP/STP/BTPscheme having physical exportturnover of Rs. 15 Crore and abovein the preceding financial yearand having a clean track record. Inorder to extend self-warehousing

and self-certification facility tomore Units, it has been decidedto reduce the limit of physicalturnover from Rs. 15 Crore toRs. 10 Crore.

Rationalization of reports/returnsto be filed by EOUs: EOUs submitQuarterly Performance Report(QPR) and Annual PerformanceReport (APR) to the DevelopmentCommissioners and monthlyreturn ER-2 to Central Excise. Inorder to reduce multiplicity ofthese reports, a common returnto DoC and DoR would reducepaperwork for the EOUs. It has,therefore, been decided that asingle common report/return maybe devised which may serve thepurpose for DoC as well as DoR. Ajoint group of DoC and DoRincluding Director General ofSystems, C.B.E. & C. will be

formed to devise a proformaexhaustively capturing all the dataand figures relating to export,import, DTA sale, deemed exportsale, IUT, sale of goods as such,destruction, payment of duty etc.and devise simplified records tobe maintained by EOUs.

Extension of time for submittingshipping bill for exportmade under self-sealing/self-certification: It has been decidedto increase the mandatoryrequirement to submit ShippingBill within 24 hrs to 48 hrs as it issometimes difficult to reachjurisdictional Central Excise officewithin 24 hrs from the port ofexport.3. The above issues with theapproval of Competent Authority.[M.C. & I. (D.C.) Office MemorandumF. No. 1/10/2010-EOU, dated 2.1.2014]

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The Hon’ble Delhi CESTAT in its recentdecision, dated 2.7.2013 in the caseof Glyph International Ltd. v.Commissioner of C. Ex. & Service Tax.,Noida reported in 2013 (31) S.T.R. 430(Tri.- LB) , has resolved the issuerelating to quantum of fees to becharged from the appellants in caseof appeals dealing with refund/rebateof Service Tax.

The respective Section 86(6) of theFinance Act, 1994, which deals withthe charging of fees in case of appealregarding Service Tax matters, readsas under:-“An appeal to the Appellate Tribunalshall be in the prescribed form andshall be verified in the prescribedmanner and shall, irrespective of thedate of demand of Service Tax andinterest or of levy of penalty inrelation to which the appeal is made,be accompanied by a fee of,-(a) Where the amount of ServiceTax and interest demanded andpenalty levied by any Central ExciseOfficer in the case to which the appealrelates is five lakh rupees or less, onethousand rupees;(b) Where the amount of ServiceTax and interest demanded andpenalty levied by any Central ExciseOfficer in the case to which the appealrelates is more than five lakh rupeesbut not exceeding fifty lakh rupees,five thousand rupees;(c) Where the amount of ServiceTax and interest demanded andpenalty levied by any Central ExciseOfficer in the case to which the appealrelates is more than fifty lakh rupees,ten thousand rupees:

Provided that no fees shall be payable

in the case of an appeal referred to insub-section (2) or sub-section (2A) ora memorandum of cross-objectionreferred to in sub-section (4).”

The above provision came into forcew.e.f. 1.11.2004 Prior to 1.11.2004Section 86(6) reads as under :-“An appeal to the Appellate Tribunalshall be in the prescribed form andshall be verified in the prescribedmanner and shall, except in the caseof an appeal referred to in sub-section(2) or sub-section (2A) or amemorandum of cross-objectionreferred to in sub-section (4), beaccompanied by a fee of two hundredrupees.”

On going through Section 86(6) as itexisted prior to 1.11.2004, fees wasto be charged on appeals (includingappeal pertaining to refund / rebate)at the rate of 200.

The Hon’ble CESTAT noted thatSection 86(6) which came into forcefrom 1.11.2004, clearly speaks ofcharging of fees in respect of demandof Service Tax, interest or levy ofpenalty.

For the purpose of levy of fees,appeals pertaining to demand ofService Tax, interest and levy ofpenalty are divided into threecategories (a), (b) and (c) based onamount of Service Tax, interest orpenalty involved in appeal, below`5 lakh, more than `5 lakh but notexceeding ` 50 lakh and more than`50 lakh, respectively.

Section 86(6) neither talks of refund /rebate nor there is any residuary

clause in Section 86(6) to coverappeals other than the demand ofService Tax, interest and penalty.

The Hon’ble CESTAT further notedthat prior to 1.11.2004 all appealswere chargeable to fees. New Section86(6) charges fees on appealsinvolving demand of Service Tax,interest and penalty only.

The Hon’ble CESTAT found thatprovisions relating to charging of feesin Customs [Section 129A(6) ofCustoms Act, 1962], Central Excise[Section 35B(6) of Central Excise Act,1944] and Service Tax [Section 86(6)of Finance Act, 1994] are identical,no fee is payable in respect of appealspertaining to refund of Central Exciseor Customs Duty.

It is submitted that under Section35B(7)(a) of Central Excise Act, 1944,under Section 129A(7)(a) of CustomsAct, 1962 or under Section 86(6A)(a)of Finance Act, 1994, fee of 500 isstill payable with the application forgrant of stay, provided that suchapplication is not filed by or on behalfof Commissioner of Central Exciseunder Section 35B(7)(a) of CentralExcise Act, 1944, by or on behalf ofCommissioner of Customs underSection 129A(7)(a) of Customs Act,1962 or by Commissioner of CentralExcise, Assistant Commissioner ofCentral Excise or DeputyCommissioner of Central Excise underSection 86(6A)(a) of Finance Act,1994.

[Source : Excise law times dated 28th

October 2013]

ArticleArticleArticleArticleArticleAppeal to Appellate Tribunal for Refund/Rebate of Customs/Excise

Duty and Service Tax – No Fee PayableShri. Manmohan Gupta, Advocate


A radical transformation ofgovernment processes for makingpolicies and implementing themis necessary to change the limpingtrajectory of Indianmanufacturing. India’s index ofindustrial production (IIP)numbers are in a yo-yo. Twomonths up; one month down. Onemonth up; two months down. Thenumbers are straws on thesurface. Economists and analystsclutch at them to gauge thecondition of India’s ailingmanufacturing sector. They wouldhave more solid evidence ofwhere India’s manufacturingstands if they could feel theground underfoot.

Policymakers must get beneaththe surface to the fundamentalson the ground. Deng Xiaoping’sfamous dictum, “You must crossthe river by feeling the stonesunderfoot”, explains very wellwhat the nature of policyprocesses must be. Signals to thepolicymaker’s head must comefrom the experience of feet on theground, not from numbers in theair. I will return to Deng’smetaphor of the river later. Thereare three models thatpolicymakers must apply tostrengthen Indian manufacturing.Policymakers, doctors andgardeners, whose objective is toimprove the condition of theorganism in their care, requirethree models to guide them. Thefirst is a good model of the

organism itself—what are itsconstituents and what functionsdo they perform. We would nottrust the care of our body to adoctor who did not know thelocations of the complex organsinside it. Nor would we leave aplant in the care of a gardener whohad no knowledge of whatfunctions its roots, stems, andleaves perform. Human bodiesand plants are not merely a lot ofstuff put together. It’s the uniqueway in which the stuff works thatgives them their lives. In the sameway, a manufacturing enterpriseis not merely a sum of factors ofproduction such as capital andlabour. These factors interact witheach other in complex ways insidea manufacturing enterprise, andinsights into those interactionsare necessary to understand theessence of manufacturing.

Industrialization is a process ofsocieties and economies learningto do more complex things theycould not do before. Industrialnations evolve from agriculturalsocieties and producers ofprimary materials when they areable to convert materials intomore complex products.Advanced industrial nations arethose that have learned to designand produce even more complexproducts than developing nations.The learning that stimulatesindustrial development takesplace in these countries’manufacturing enterprises. Amanufacturing enterprise is notmerely a list of resources tobe summed up in an accountant’sbalance sheet—capital,

machinery, land, labour andknowledge (patents or other unitsof knowledge). Rather, it is aliving, learning system. This is thefirst model that any policymaker,at the corporate level or nationalpolicymaking level, wanting toimprove the performance ofmanufacturing must adopt.

The second model explains howthe system improves itself. Alldoctors must know how bodiesfunction. The best doctors alsounderstand how bodies healthemselves. Their interventionsare very effective because theyknow what to prescribe to assistthe body’s own healing process.Similarly, a gardener with “greenfingers” has a touch with which tohelp the plant to revive and grow.In the same way, the masters ofmanufacturing improvement,such as the developers of theTotal Quality and Kaizenmovements in Japan, and theircounterparts in the industrialengineering disciplines inGermany, understood where thekeys to enable manufacturingenterprises to speed up theirpace of improvement lie. The keysare in the processes by whichthese enterprises perform, andthey are in the minds andmotivations of human beings inthese enterprises. These leadersknow that a manufacturingenterprise is a “system” and thatthe Total Factor Productivity(TFP) of a system can be increasedby improving the interactionsamong its parts. Therefore,the keys to performanceimprovement are in the design of

Industry Missing MiddleThere are three models that policymakers must apply to strengthen

the limping trajectory of Indian Manufacturing

ArticleArticleArticleArticleArticle

Shri. Arun MairaMember, Planning Commission,

Govt. of India


production processes and thequality of relationships among thepeople in the enterprises.

TFP, the economists’ holy grail,lies in the “residual” that cannotbe explained by accounting for thequantities of resources used inthe system. TFP rises by improvingthe interactions between theresources in the system.Economic models are built onproduction functions, such as y =f(a,b). Where y, a and b arequantities, and f is thetransformative function that mustbe changed to improve theproductivity and thecompetitiveness of the economyand its enterprises. For aneconomist, the transformativefunction may be a “given”. For amanager, it is not. In fact, theinnovative manager’s job is toimprove the transformativefunction by learning andexperimentation. Indeed, tosustain their competitiveness,economies and enterprises mustkeep improving their TFP—theirtransformative functions—fasterthan others.

I return to Deng’s metaphor of theriver crossing to explain the thirdmodel for the policymaker.Enterprises and economies whenthey are changing and improvingare learning to do what they havenot done before. Without aprecise map to connect them fromwhere they are to where theywant to go, they must find theirway across the river by feeling thestones underfoot. Manufacturingenterprises are the feet of anation’s manufacturing industry.They are trying to improve theircompetitiveness by learning and

innovating. The nationalpolicymaker is in the head of thebody. The policymaker has to bevery sensitive to the signals fromthe feet, to shift the weight of thewhole body and enable safer andfaster movement forward.

Let me summarize the essence ofthe three models required toaccelerate growth of India’smanufacturing sector. First, whatis “manufacturing”? It is a systemof learning at an enterprise levelto carry out more complexactivities competitively. Second,how does a manufacturingenterprise (and a manufacturingnation) advance? By improvingthe quality of processes andrelationships between peoplewithin the enterprises and acrossthem. And third, how does apolicymaker help themanufacturing sector toaccelerate improvement of itsproductivity andcompetitiveness? By listeningvery well to signals from theground and changing nationalpolicies accordingly.

Since the industrial reforms of the1990s, India’s manufacturingsector has failed to deliver whatwas expected. It has not been adriver of economic growth, whichthe service sector was. Moreworryingly, it has so far failed tocreate jobs in the large numbersit now must to absorb theburgeoning population of Indianyouth. Following Albert Einstein’sdictum that you cannot solve theproblem you have with the samemindset that created the problem,the Planning Commissionundertook a soul-searchingexamination, in the run-up to the

12th Plan, of its processes offormulating and implementingindustrial policy. For this, it alsotook the help of some of theworld’s leading industrialeconomists to understand thepolicymaking processes ofsuccessful industrial countries.

The conclusion of this study wasthat India’s policymaking processfor manufacturing has beenweakened by a “missing middle”.From numbers and opinions(quite often those of economists,rather than persons with hands-on manufacturing knowledge) thepolicymaking apparatus jumpsdown to devise schemes andrules. This is analogous to aninexperienced doctor prescribingsurgery after merely readingnumbers on a scanner. What hasbeen missing mostly in India’smanufacturing policymaking isthe middle: a systematic processof connecting the heads andnumbers in the air with theproducers with their feet feelingthe stones on the ground. Whathas passed for “consultation” isgenerally pro forma, a ticking ofboxes, and a barely disguisedlobbying for sectoral interests.

Growth of Indian manufacturingwill require many reforms, inaddition to improvement of thecountry’s transport and powerinfrastructure; reforms of thebusiness regulatory environmentwhich is among the mostcumbersome in the world; reformsof antiquated labour laws;improvement of manufacturingmanagement practices;reorientation of policies for theMSME sector, etc. These “whats”that must be done are now well-



known. Rather than repeatingthem again and again in seminarsand papers, the government andproducers must move on togetherto the “how” and get them done.India’s manufacturing sectorcannot be allowed to muddlealong much longer with weakpolicymaking and implementationprocesses. Too much is at stake.The next part of this article will

explain the most essential“whats” to accelerate Indianmanufacturing’s growth and the“hows” of getting them done.These “whats” and “hows” havebeen developed by the mostextensive and systematic processof consultation between thegovernment and producersundertaken so far in the country.The good news is that several of

these initiatives are alreadyunderway. What is required nowis much wider support for themand better alignment amongststakeholders.

[Courtesy - Mint, dated 7th Jan. 2014]

The 2nd part of this Article will bepublished in next issue of TISAMagazine.

I am directed to invite yourattention to amendments in rule8, 9 and 10 of the Central ExciseValuation (Determination of Priceof Excisable Goods) Rules, 2000.Under transaction value regimeeach transaction or removal isrequired to be assessedindependently, as would be clearfrom the language of section 4 ofthe Central Excise Act, 1944.Section 4(1) of the Central ExciseAct, 1944 reads as –Section 4 –Valuation of excisablegoods for purposes of charging ofduty of excise – (1) Where underthis Act, the duty of excise ischargeable on any excisable goodswith reference to their value,then, on each removal of thegoods, such value shall –

2. Rules 8,9 and 10 of the CentralExcise Valuation Rules, 2000dealing with determination ofassessable value in case of captiveconsumption and sale to relatedperson have been amended videnotification no. 14/2003 –CentralExcise (N.T.), dated 22.11.2013 to

ExciseExciseExciseExciseExciseCentral Excise Valuation (Determination of Price of Excisable Goods) Rules,

2000 –Rules 8, 9 and 10 amended- ClarificationsSubject : Amendment of rule 8,9 and 10 of the Central Excise Valuation (Determination of Price of Excisable

Goods) Rules, 2000 – Regarding.

clearly state that these rules applyirrespective of whether thewhole or a part of the clearancesof manufactured goods arecovered by the circumstancesgiven in these rules. Eachclearance is required to beassessed according to section 4(1)(a) or the relevant rule dealingwith the circumstances ofclearance of the goods, as thecase may be.

3. For example, if an assesseeclears his goods in such a way thatfirst removal of goods is to anindependent buyers, some goodsare captively consumed, secondremoval is to such a relatedperson who is covered under rule9 and third removal is to a personwho is covered under rule 10,then the first removal shouldassessed under section 4(1) (a),captively consumed goods shouldbe assessed under rule 8, secondremoval should be assessed underrule 9 and third removal beassessed under rule 10 of theserules. It may be noted that Central

Excise Valuation (Determinationof Price of Excisable Goods) Rules,2000 are not required to befollowed sequentially. Each ofthese rules provide for arriving atthe assessable value of goodsunder different contingencies asnoted by Hon’ble Supreme Courtat paragraph 70 in case ofCommissioner of Central Excise,Mumbai v. M/s. FIAT India Pvt. Ltd.[2012 (283) E.L.T. 161 or 2012-TIOL-58-SC-CX].

4. Serial no. 5,12 and 14 of theCircular No. 643/34/2002-CX, dated1.7.2002 [2002 (143) E.L.T. T39] aredeleted in view of theamendments in the Central ExciseValuation (Determination of Priceof Excisable Goods) Rules, 2000,as these amendments address theissues on which theseclarifications were issued. Theamended rules and accordinglythis circular shall apply with effectfrom 1st December, 2013.

[C.B.E. & C. Circular No. 975/9/2013-CX, dated 25.11.2013]

Law UpdateLaw UpdateLaw UpdateLaw UpdateLaw Update



Attention of all the members of trade and industry is invited to public Notice No. 22, dated 12.08.2013 and thePolicy Circular No. 8, dated 25.10.2013 issued by the Office of the DGFT, New Delhi for closure of cases ofdefault in Export Obligation Fulfillment in respect of the Duty Exemption Schemes and EPCG Scheme.

The Public Notice No. 22, dated 12.8.2013 has provided that all pending cases of the default in meeting ExportObligation (EO) can be regularized by the authorization holder on payment of applicable customs duty,corresponding to the shortfall in export obligation, along with interest on such customs duty; but the interestcomponent to be so paid shall not exceed the amount of customs duty payable for this default.

The Policy Circular No. 8, dated 25.10.2013 has laid down the procedure for closure of cases of default in ExportObligation under the above Public Notice No. 22, dated 12.8.2013 wherein this facility is also available even incases which have already been adjudicated (or pending adjudication), either originally or in appeal.

Therefore, all the firms/companies are hereby requested to utilize this one time opportunity for closure /regularization of all old cases of default in Export Obligation Fulfillment which is available only till 31.3.2014.

[Additional Director General of Foreign Trade, Mumbai, Trade Notice No. 2, dated 27.11.2013]

ExportsExportsExportsExportsExports Law UpdateLaw UpdateLaw UpdateLaw UpdateLaw UpdateExport Obligation –One time facility for closure/regularization of Export

Obligation default cases till 31.3.2014Subject : One time Facility for Regularization of Export Obligation Default Cases.

The offence of issuing a cheque without sufficient amount in the bank has five ingredients and it is not

necessary that all of the components should be present for prosecuting the drawer, the Supreme

Court reiterated last week in its judgment in the case, Devendra Kishanlal vs Dwarkesh Diamonds Ltd. The five

elements are drawing of the cheque, presentation to the bank, bouncing, giving notice to the drawer and his

failure to make payment within 15 days. It is not necessary that all the above acts should be carried out in the

same locality. It is possible that each of those five acts were done at different places. In this case, the business

dealing was held at Mumbai, products were supplied from Mumbai to Delhi, cheques were handed over in

Mumbai and were dishonoured by the bankers of Delhi and legal notice was issued from Mumbai.

When the complaint was filed in Mumbai, it was rejected by the magistrate stating that he has no jurisdiction

and Delhi was the right place. The sessions judge took a contrary view.The Bombay High Court held that the

session judge was wrong. On further appeal, the Supreme Court ruled that the high court was wrong and the

sessions judge was right in holding that the Mumbai magistrate has jurisdiction, as some of the transactions

occurred there.

[Source : Business Standard dated 2nd Dec. 2013]

Five elements in cheque bounce cases

Negotiable Instrument ActNegotiable Instrument ActNegotiable Instrument ActNegotiable Instrument ActNegotiable Instrument Act

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Court RulingCourt RulingCourt RulingCourt RulingCourt Ruling


“Reduce Your COSTS/TIME &Increase EFFICIENCY”

We offer Payroll Processing and relatedStatutory Compliances, Tax Advisory/

Consulting Services etc.

Contact :Hema Thakkar/ 9821682434 /

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9819225870 / 8097841839Email: [email protected]

SAMARTH MANGEMENT SOLUTIONS

The objective of this study mission is provide opportunity for professionals/managers/entrepreneurs froman individual member country or NPO to study, discuss, and observe recent developments and best practicesin specific areas of interest by visiting another country(ies).

In 2013, nine study missions benefiting 84 professionals from eight member countries were carried out onmaterial flow cost accounting, productivity specialist development, the customer satisfaction index.Productivity measurement, international marketing in processed agrifood, best practices of the serviceindustry, logistics and distribution systems, and productivity improvement in the public and service sectors.All missions were highly rated by participants, indicating the effectiveness of this program. This is furthercorroborated by the extent of capacity building in diverse subject areas under the I-OSM Program.

Scope and MethodologySubject Areas for Study MissionsCountries may propose the subject area(s) for study missions according to their needs. However, the hostcountries may also propose subject areas or fields of study for missions that they are prepared to receive. Thesubject areas may cover the latest developments in the industry, service, and agriculture sectors; technologyand management fields; and productivity-, environment, energy -, and quality –related issues.Last date of submission of proposal by 15.03.2014 alongwith demand draft of Rs. 500/- for MSMEs [nonrefundable] drawn in favor of National Productvity Council, New Delhi.

National Productivity Council has invited application for individual countryobservational study mission by the Asian Productivity organization [APO, Tokyo]

On the basis of an assessment of the current

and evolving macroeconomic situation, it has

been decided to:

• Increase the policy repo rate under the

liquidity adjustment facility (LAF) by 25 basis

points from 7.75 per cent to 8.0 per cent; and

• Keep the cash reserve ratio (CRR) of

scheduled banks unchanged at 4.0 per cent of

net demand and time liability (NDTL).

Third Quarter Review ofMonetary Policy 2013-14


“Today with a total employment more than 10 croreswe have nearly 4.47 crores MSMEs in India out ofwhich 55.44% are in rural India, producing morethan 6000 quality products and contributing 8.72% inthe GDP, indeed there is no substitute for MSMEs inIndia”, opined Shri. Shriniwasji Patil, the Hon’bleGovernor of Sikkim. He was addressing thedistinguished audience of entrepreneurs from allover Maharashtra, on the occasion of Launching ofSilver Jubilee Celebrations of the Chamber of SmallIndustry Associations [COSIA] as Chief Guest.

Entrepreneurship vital -While honouring few outstanding entrepreneurs fortheir worthy contribution in the MSME Sector andstressing the need for the economy progress, theHon’ble Governor said that the entrepreneurship ismuch more than mere attitude and it is a way of lifewhich requires great courage to defeat odd situationswith alertness, astuteness and audacity. He appealedthe younger generation to come forth with their ownenterprises and help push our economy forward.

While congratulating COSIA for its role at a NationalLevel for the cause of MSMEs he invited COSIA toorganize a conference at Sikkim of MSMEs in NorthEast India in order to give further push to the MSMEmovement at North East India.

Integrating Education, Skill & Enterprises –While offering the Opening Remarks President Shri.M.R. Khambete said that COSIA is not mere thoughtbut is an oath solemnly taken for the movement andsolidarity of MSMEs in India.Referring to the unfriendly atmosphere for the Trade,Commerce & Industry in India, he added, it is becauseof organizations like COSIA, the Entrepreneurship inMSMEs is still alive and will remain so in future also.

Further Shri. M.R. Khambete declared the Plan ofActions for the Silver Jubilee Year of COSIA which interalia has a system of direct involvement of industryassociations in the field of Skills Development. At

MSMEs has no substitute

Hon’ble Governor of Sikkim, Shri. Shriniwasji Patilthe end, he declared the slogan for the Silver JubileeYear of COSIA, ‘Integrating, Skills and Enterprises’While welcoming the first batch of Rajat Members,he appealed all to unite strongly for the cause ofMSMEs.

COSIA Pranam –On this occasion following entrepreneurs werehonoured with a Citation and Traditional Felicitationfor their outstanding performance in the MSMESector at the hands of Hon’ble Governor of Sikkim,Shri. Shriniwasji Patil[1] Shri. Panditrao Bari [2] Shri. Mandar Gadre[3] Dr. Madhu Gupta [4] Smt. Jyoti Jirafe[5] Shri. Bapu Patil [6] Dr. Ashok Pendse[7] Shri. Suresh Sane [8] Shri. Vasant D. Soman[9] Dr. Vinod Tibrewala [10] Shri. Amar Vazalwar

Rajat Membership-To give a further boost to the solidarity and also tomake it easy even for smallest in the small to joinCOSIA, a special class of Rajat Members was alsolaunched on this occasion at the hands of Shri.Shriniwasji Patil, the Hon’ble Governor of Sikkim. Inthis category any MSME will receive the RajatMembership for 10 years just by paying Rs. 5000/-only. It is also open for the Industry Bodies and anysuch Industry Association will receive RajatMembership for 10 years by paying Rs. 15000/- only.

On this occasion the first batch of following RajatMembers was also honoured at the hands of Hon’bleGovernor of Sikkim, Shri. Shriniwasji Patil.1. M/s. Jai Jalaram Complex Owners Association2. M/s. Kangaroo Leather Pvt. Ltd.3. M/s. Vision Solution (Indl. Consultant)4. M/s. K. Lal Enterprise5. M/s. Asha Enterprise6. M/s. Tej Control Systems Pvt. Ltd.7. Shri. Pravin Mistry

The Hon. Gen. Secretary of COSIA Shri. P.S. Agwanwelcomed the audience. Smt. Sujata Soparkar,

ActivityActivityActivityActivityActivityLaunching Silver Jubilee YearLaunching Silver Jubilee YearLaunching Silver Jubilee YearLaunching Silver Jubilee YearLaunching Silver Jubilee Year


Committee Member of COSIA presented the Letter of Honour to the Governor and thereafterHon’ble Shri. Shriniwasji Patil was felicitated at the hands of President of COSIA, Shri. M.R. Khambete. TheFirst Lady of Sikkim, Smt. Rajanitai Patil was felicitated at the hands of Mrs. Padmja Khambete.

Dr. Ipshita Basu Guha, Committee Member of COSIA made a Power Point Presentation on COSIA. At the endShri. Sunil Kulkarni, the Committee Member of COSIA proposed a vote of thanks.

On this occasion many Office Bearers of MSME Associations, including Shri. Sudhir Kalia President of ThaneManfacturers Association, Shri. Kashikar of Vasai Industries Association, Shri. R.Sriniwasji, Founder Hon. Gen.Secretary of Thane Small Scale Industries Association, Shri. Damania, Ex. Joint Secretary of Thane Small ScaleIndustries Association, Shri. Govind Singh, Vice President of Thane Small Scale Industries Association werepresent. The Director of MSME Development Institute, Mumbai Shri. R. B. Gupte also participated and offeredhis goods wishes to COSIA.

jaagaitkIkrNaacao vaaro vaahU laagalyaanaMtr navaBaart inamaa-Na ivacaarQaaronao jaaor pkDlaa. ]darIkrNaacyaa maaQyamaatUna AaiNaKajagaIxao~acyaa sahyaaogaanao ivaivaQa pkarcao pklp¸ yaaojanaa AaiNa kamaaMcaI AaKNaI haovaU laagalaI. eka maagaUna ek ASaa AnaokivaQasauQaarNaa jaahIr Jaalyaa. Baart ek mahasa<aa vhavaI Asao svaPnahI paihlao gaolao. saSa@t navaBaartacyaa inaima-tIsaazI AnaokivacaarvaMtaMnaI AaiNa yaaojanaakaraMnaI naomako kaya kravao laagaola yaavar ]hapaoh kolaa Aaho. yaaca ivaYayaavarIla Da. ivanaaod iTbaovaalaayaaMcao [MgajaI pustk¸ ‘How to make a new India’ ho nauktoca pisaQd Jaalao Aaho. javaLpasa 400 panaacyaa yaa pustkatUna %yaaMnaIAnaok ivaYayaaMnaa spSa- kolaa Aaho. SaotI¸ baÐkIMga¸ kaLa pOsaa¸ Aaiqa-k sauQaarNaa¸ SaOxaiNak sauQaarNaa¸ tM~ iSaxaNa¸]VaogaaiBamauKiSaxaNa¸ dUr iSaxaNa¸ saMSaaoQana¸ Anna saurxaa¸ AMt-gat saurxaa¸ prraYT/ QaaorNao Aaraogya sauQaarNaa¸ kr ivaYayak sauQaarNaa¸ nyaaya pNaalaIsauQaarNaa¸ kamagaar sauQaarNaa¸ jamaIna sauQaarNaa¸ naOsaiga-k Aap<aI¸ vaahtUk sauQaarNaa¸ rajakIya sauQaarNaa¸ saamaaijak sauQaarNaa ASaaivaYayaaMvarIla %yaaMcao ivavaocana mauLatUna vaacaavayaasa hvao. Baart navainamaa-Nacao kaya- ho iktI ivaivaQa AMgaaMnaI krNyaacaI garja Aaho AaiNato krt Asatanaa kaoNa%yaa gaaoYTI najaroAaD krta naahIt ho %yaaMnaI svacCpNao saaMigatlao Aaho. jagaacyaa pazIvar Aaplaa doSa naomakakuzo Aaho yaabaabatcao %yaaMcao ivavaocana ivacaaraMsa caalanaa doNaaro Aaho.

navaBaart inamaa-Na kahI ivacaarnavaBaart inamaa-Na kahI ivacaarnavaBaart inamaa-Na kahI ivacaarnavaBaart inamaa-Na kahI ivacaarnavaBaart inamaa-Na kahI ivacaar marazI ivaBaagamarazI ivaBaagamarazI ivaBaagamarazI ivaBaagamarazI ivaBaaga

maI ek saamaanya naagairk AsaUna navaBaart inamaa-NaasaMdBaa-tIla maaJaI Bauimaka maaMDtAaho Asao mhNaNaaro Da. ivanaaod iTbaovaalaa ho ek pqaItyaSa ]VaogaptI AaiNa jaojao TI ivaSva ivaValaya¸ rajasqaanacao kulagau$ Aahot ho AapNa laxaat Gyaavayaasahvao. saaáyaa jagaBar BamaMtI kolaolyaa Da. iTbaovaalaa yaaMnaI DaoLsapNao ivaivaQadoSaatIla sauQaarNaa AByaasalyaa AsaUna %yaacao pirNaamahI saUxmapNao jaaNaUna GaotlaoAahot. Anaok ivaYayaatIla %yaaMcaI Kaolavar $caI va AByaasa yaa pustkatUnajaaNavatao. sava-ca baabatIt %yaaMcyaa ivacaaraMSaI matO@ya Sa@ya nasalao trI SaovaTInavainamaa-Na jana naayakasaazI Asalao paihjao Asao %yaaMcao mhNaNao ]caIt vaaTto.

sadrhu pustk jao jao TI yauinavh-isaTInao pkaiSat kolao Aaho.

idlaIp saaLvaokr¸sar kaya-vaah kaoisaAa

ActivityActivityActivityActivityActivity

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29TISA ( 7th February ‘14)www.cosia.org.in

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30TISA ( 7th February ‘14)www.cosia.org.in

5, u.k. industrial est, behind durian, 2nd pokhran …cosia.org.in/pdfs/tisa/2014-02-tisa.pdfshri....

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