Meeting of Alang Ship-breakers with Finance Minister likely next week

Bhavnagar

Bhavangar based world famous Alang ship breaking yard is observing five days shut down due to lack of clarity over reversal of Modvat Credit after 6% PLA excise duty on ship-breaking industry in union budget.

Those close to this development said that there’s holiday of Holi and Dhuleti and then there’s weekend. The ship breakers have added one more day to it and declared shut down for five days. They however added that confusion prevailing over excise matter is genuine, and government needs to address the issue and clarify reversal of Modvat Credit on non-excisable items removed from the ship in the process of breaking.

Ship breakier belive, excise department has in its PLA asked 6% advance payment, but there’s no clarity on how this amount of duty will be paid back through Modvat credit. Ship breakers fear double taxation due to lack of clarity on this.

Meanwhile local members of parliament Mansukh Mandavia and Bhartiben Shiyal – both from ruling BJP have tried to resolve the issue. A meeting in this regard is likely to be held between Ship breakers and Finance Minister in presence of BJP MPs next week in Delhi.

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