Punjab News Punjab industry seeks release of VAT refunds


Prime VIP
Chandigarh, June 28

Industry in Punjab has accused the State Excise and Taxation Department of withholding tax refunds worth Rs 300 crore, belonging to several Ludhiana-based light engineering goods manufacturers.

In a statement issued by Avtar Singh, general secretary, Chamber of Industrial and Commercial Undertakings, he said, "The Excise and Taxation Department has held up VAT refunds amounting to Rs 300 crore of a large number of bicycle parts manufacturers, bicycle makers and light engineering goods manufacturers, even though they have not violated any provisions of VAT laws”.

Seeking the intervention of Punjab Chief Minister Parkash Singh Badal, the industry has said that he should direct the department to issue VAT refunds at the earliest.

However, senior officials at the Excise and Taxation Department denied that it had withheld any VAT refunds. The department also rejected the industry's allegation that it had made a list of industrialists, against whom investigations would be conducted.

It is pertinent to mention that last year, the Punjab Excise and Taxation Department had detected a major scam, in which it was found that various Ludhiana, Khanna and Mandi Gobindgarh-based traders were involved in evading VAT amounting to Rs 100 crore through the issuance of bogus bills worth Rs 2,000 crore.