Minutes of the DEPB Committee Meeting held on 24/03/ 2005
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1 Minutes of the DEPB Committee Meeting held on 24/03/ 2005 The Committee meet ing was held under t he Chair manship of Shr i Vipin Saxena, Export Commissioner. The following officers were present:- S.No Name of the representatives & their Designation Deptt. 1. Shri R.K. Talajia, OSD(DBK) Deptt of Revenue 2. Shri Jagmohan Singh, Asstt.Dir. Deptt of Revenue 3. Shri S.K. Jain, Sr.DO DIPP 4. Shri Saish Kumar, DO DIPP 5. Shri Rajat Srivastava, Executive EEPC 6. Shri S.B.S. Reddy, Jt.DGFT DGFT 7. Shri A.K. Shrivastava, Dy.DGFT DGFT 8. Shri V.B. Saxena, Dy.DGFT DGFT 9. Shri R.P. Singh, FTDO DGFT 10. Shri Sanjay Arora, FTDO DGFT 11. Shri M.K.Parimoo, Dy.DGFT DGFT At t he out set, it was decided t o have a re-look at t he pending issues which wer e discussed in t he meet ing held on but eit her ar e pending or stand partially resolved. These issues included the following (1) Case No.81 M/s Bharat Forge Ltd., Pune F.No.01/80/162/605/AM05/DES-I Commit t ee on t he wr it t en r ecommendat ion of DOR decided t o amend t he DEPB rate and value cap in respect of the following items to read as under:-
2 2 S.No. Product DEPB Rate Value Cap 410B Forged Crank Shaf t made of 10% Rs.95/Kg Alloy Steel 411B Front Axle Beam Forging made of Alloy Steel 10% Rs.73/Kg As f ar t he r evision of t he DEPB r at e consequent upon downwar d r evision of t he cust oms dut y in t he budget pr oposals f or t he same would be taken up when the revision is carried out across the board on all items in the DEPB schedule. (2) Case No.56 M/s Mahindra & Mahindra Ltd., Mumbai F.No.01/80/162/1780/AM04/DES-I The Commit t ee in t he meet ing held on had decided t o f ix an adhoc DEPB r at e of 3% wit h a value cap of Rs.4,75,000/Tractor and were awaiting t he concur r ence of DOR on t his issue. I n t oday s meet ing DOR concurred wit h f ixing of adhoc r at e of 3% in t he inst ant case. However, t hey wer e agreeable to an average value cap which works out to Rs.3,75,000 based upon t he dat a available wit h DOR as also dat a submit t ed t o t his of f ice. Accor dingly, it was decided t o f ix an adhoc DEPB r at e of 3% in r espect of M/ s Mahindr a & Mahindr a Lt d, Mumbai wit h a value cap of Rs.3,75,000 and this will be valid f or a per iod of 6 mont hs subj ect t o usual condit ions applicable to adhoc DEPB rates. (3) Case No.66 M/s Electrosteel Castings Ltd, Kolkata F.No.01/80/162/1248/AM05/DES-I The case had alr eady been decided on t o incr ease t he r at e f r om exist ing level of 1% t o 3%. The minut es of t he meet ing held on in this regard are reproduced below:- The Commit t ee considered t he case as per det ails given in t he Agenda. The case was discussed at length and it was noticed that t his case had been under examinat ion of The Commit t ee f or quit e some t ime and decision was not possible because DOR have not
3 3 been able t o give t heir comment s pending verif icat ion of t he dat a. I n t he inst ant case, it was seen t hat about 15 it ems are required f or manuf act ure of t he end product as per SI ON at C Out of t hese 15, t he applicant had f urnished t he dat a in respect of 7 it ems. The represent at ives f rom DOR, however present in t he meet ing f urt her reit erat ed t heir earlier st and t hat t hey have not been able t o verif y t he dat a and t heref ore it will not be possible f or t hem t o give any comment s on f ixat ion of DEPB rat es based upon t his dat a. The Commit t ee was however inf ormed t hat in t he instant case the fixation of DEPB rate had been worked out based upon VABAL SI ON which cont ained only 2 input s i. e. Pig I ron and Non Alloy St eel Melt ing Scrap. Prior t o t he revision carried out on t he dut y component t aken int o account f or computation of DEPB rates for both these items was taken as 15% and t heref ore DEPB rat value addit ion was worked out at 9%. By the time the revision took place on the customs dut y on Pig I ron had come down t o 5% and t hat on Melt ing Scrap t o zero. However, while working out revised DEPB rat e based upon 5% dut y on Pig I ron and zero percent on Melt ing Scrap, t he dut y neut ralizat ion was worked out at only 2. 5% by t aking 50% as Pig I ron component and 50% as Non Alloy Melt ing Scrap component. However as per SI ON t he rat io of Pig I ron is t o Non Alloy Melt ing Scrap is 75:25% t heref ore dut y neut ralizat ion component is also required t o be worked out in t his rat io. 5% dut y on Pig I ron and zero percent on Non Alloy Melt ing Scrap t he dut y neut ralizat ion works out t o 3. 75% and wit h t his dut y neutralizat ion at 50% value addit ion, t he DEPB rat e works out t o 3%. DOR represent at ives were inf ormed t hat t heir basic obj ect ion of non- verif icat ion of dat a does not hold good in t he light of t he det ails as above as t he new input s proposed t o be t aken int o account f or working out t he DEPB rat e was not considered because t hey were not able t o verif y t he dat a. Theref ore based upon t he act ual input s as per SI ON t he DEPB rat e of 1% need t o be amended t o 3% f or t he present. However since t he applicant cont inues t o represent f or enhancement of DEPB rat e by t aking int o account of t he input s, DOR in t he meantime should verify the data and give it before The Committee wit h t heir suit able recommendat ions. I n t he meant ime t he DEPB rate in respect of this entry may be amended to read as 3%.
4 4 The f or mal not if icat ion t o t his ef f ect could not been issued because r at if icat ion of t his decision f r om DOR had not been r eceived. However, t he DOR has since r at if ied t his decision in t he meet ing it self and t her ef or e, it was decided t o amend t he DEPB r at e in r espect of t his it em t o r ead as 3%. The said entry in the DEPB schedule will now read as under:- S.No. Product DEPB Rate Value Cap 130 Ductile Iron Spun Pipes 3% - (4) Case No.75 (5) Case No.D-4 M/s Indian Steel Alliances, New Delhi F.No.01/80/162/1335/AM04/DES-I M/s Uttam Galva Steel Ltd F.No.01/81/162/1007/AM05/DES-II Committ ee deliber at ed upon t he issue and r epr esent at ive f r om DOR st at ed t hat t hey had ver if ied t he dat a and t he value cap, accor ding t o t his dat a f or ent r y at Sl.No.85, wor ks out t o Rs.32.50/ Kg and in r espect of ent r y at Sl.No.329, wor ks out t o Rs.30.50/ Kg. Accor dingly, it was decided t o amend these entries as under:- S.No. Product DEPB Rate Value Cap 85 Cold Rolled Galvanized, Colour coated Non-Alloy steel sheets/ 6 % Rs.32.50/Kg hoops and strips/ wide coils (plain / corrugated) 329 Cold Rolled Galvanized Non-alloy Steel sheets/hoops & Strips/ wide coils/circles(plain/ Corrugated) 5% Rs.30.50/Kg (6) Case No.D-15 M/s Paushak Ltd, Vadodara DEPB Meeting No.07/05 F.No.01/82/162/1089/AM04/DES-I V dt The Commit t ee consider ed t he case as per det ails given in t he Agenda. I t was decided t o def er t he case t o enable DOR t o examine t he det ails as
5 5 requested by t hat aut hor it y who desir ed t hat t hey would like t o ver if y t he data and get back to the DEPB Committee in the next meeting. (7) Case No.Misc.03/05 DEPB Meeting No.07/05 M/s All India Glass Beads Manufacturers and Traders Association, Mumbai F.No.01/85/ 83/162/ 707/AM01/DES-VI The Commit t ee consider ed t he case as per det ails given in t he Agenda. As alr eady decided in t he meet ing on it was r eit er at ed t hat t he case be reverted back t o ALC t o have t he det ails of input s f or t hese dif f er ent pr oduct s as also t ot al input cost t o ar r ive at t he value addit ion, t o be t aken int o consider at ion f or r evision of value cap as r equest ed. The case to come back t o DEPB Commit t ee only af t er det ailed calculat ions ar e made available and suitable recommendation comes from the ALC. (8) Case No.D-3 DEPB Meeting No.3/05 dt M/s Reliance Industries Ltd., Mumbai F.No.01/87/162/773/AM05/DES-VIII F.No.01/87/162/774/AM05/DES-VIII Commit t ee agr eeing wit h t he wr it t en comment s of DOR decided t o enhance t he value cap f r om t he exist ing level of Rs.30/ Kg t o Rs.55/ Kg in r espect of expor t it em appear ing at Sl.No.556 of t he DEPB Schedule f or Chemical Gr oups. Similar ly, in r espect of it ems at Sl.No.48 of Plast ic Gr oup t his value cap would be incr eased f r om Rs.40 t o Rs.46/ Kg as per wr it t en comment s of Deptt of Revenue. As f ar t he r evision of t he DEPB r at e consequent upon downwar d r evision of t he cust oms dut y in t he budget pr oposals f or t he same would be taken up when the revision is carried out across the board on all items in the DEPB schedule. I n t he r evised scenar io t he amended ver sion of ent r y at sl.no.556 of Chemical Group and Sl.No.48 of Plastic Group will be read as under:-
6 6 Chemical Group: S.No. Product DEPB Rate Value Cap 556 Polyester Staple fibre 13% Rs.55/- per kg. Plastic Group S.No. Product DEPB Rate Value Cap 48 Polyest er Chip f or Moulding 13% Rs.46/- per kg Grade (High pressure Grade) (9) Case No.D-6 DEPB Meeting No.03/05 dt M/s Jalpac India Ltd., New Delhi F.No.01/87/162/644/AM04/DES-VIII r epr esent at ives f r om DOR inf or med t hat t he pr evalent mar ket pr ice of Met alized Polyest er Film f or which upwar d r evision of value cap has been sought, was Rs.85/ - only and t her e was no case f or incr easing the value cap. It was further decided to revert the case back to ALC for re-verification of t he dat a and have suit able r ecommendat ion bef or e it could be discussed afresh in the DEPB Committee.
7 7 I ndividual Cases in t he agenda were t aken up f or discussion and decision taken thereof is detailed below:- DES- I Division Case No.81 M/s Bharat Forge Ltd., Pune F.No.01/80/162/605/AM05/DES-I This case has already been decided as per minutes at sl.no.(1) above. Case No.86 Ref: FIEO, Delhi (M/s Kohinor Crafts, Moradabad) F.No.01/80/162/1105/AM05/DES-I Commit t ee agr eeing wit h t he r ecommendat ion of ALC decided t hat t he weight of Galvanised I r on Chain t o f ix in Br ass Ghundi is mor e t han 7%. Ther ef or e, Cust oms Aut hor it y is r ight by t r eat ing expor t pr oduct Aluminium Grape Leaf to hang with support of Galvanised Chain in pursuance of 11(iii) of General instructions for DEPB rates. Case No.87 M/s Chemjutex Exporters, Kolkata F.No.01/80/162/1127/AM05/DES-I Commit t ee agr eeing wit h t he r ecommendat ion of ALC decided t hat t her e is no separate DEPB rate for Bolster with Insert.
8 8 DES- II DIVISION Case No.D-1 M/s Venus Hotel Ware Pvt. Ltd F.No.01/81/162/1216/AM05/DES-II Committee observed that there could not be clear dividing line to distinguish Table Kit chen War e as a household ar t icle wit h t he one used in Rest aur ant and Hot els. The it ems Chaf f ing Dish/ Chaf f er have bot h domest ic use as well as commer cial use in Hot el/ par t ies. This was clear ly bor ne by t he f act t hat under Head of t he I ndian Tr ade Classif icat ion by Table and Kit chen ar t icles used f or ot her household pur poses includes some goods f or use of hot els and r est aur ant s as well. Ther ef or e, The Commit t ee agr eeing with the recommendation of ALC decided that in the instant case the item in quest ion i.e. Chaf f ing Dish/ Chaf f er is cover ed by Sl.No.353 of t he DEPB schedule f or Engineer ing pr oduct s f or t he pur pose of gr ant of DEPB benefits. Case No.D-2 M/s Prasad Koch-Technik Pvt. Ltd F.No.01/81/162/1371/AM05/DES-II DEPB r at e in t he inst ant case is applicable t o Plast ic Ext r usion Plant & Machiner y and not t o par t s t her eof as at Sl.No.561 cor r esponding t o C-446 in SI ON. I t was, t her ef or e decided t o r ever t t he case back t o ALC t o examine whet her f ull machiner y had been expor t ed in t he inst ant case or they are exporting parts, etc. Case No.D-3 M/s Prasad GWK Cooltech Pvt. Ltd F.No.01/81/162/1385/AM05/DES-II DEPB r at e in t he inst ant case is applicable t o Plast ic Ext r usion Plant & Machiner y and not t o par t s t her eof as at Sl.No.561 cor r esponding t o C-446 in SI ON. I t was, t her ef or e decided t o r ever t t he case back t o ALC t o examine whet her f ull machiner y had been expor t ed in t he inst ant case or they are exporting parts, etc.
9 9 Case No.D-4 M/s Tecumseh Products India Pvt. Ltd. F.No.01/81/162/1225/AM05/DES-II dat a available in t he pr esent case was being analyzed by DOR. I t was t her ef or e, decided t o def er t he case t o r elist it when DEPB Commit t ee meet s again. This is however t he last def er ment and no further deferment will be allowed thereafter. Case No.D-5 M/s Tecumseh Products India Pvt. Ltd. F.No.01/81/162/874/AM05/DES-II dat a available in t he pr esent case was being analyzed by DOR. I t was t her ef or e, decided t o def er t he case t o r elist it when DEPB Commit t ee meet s again. This is however t he last def er ment and no further deferment will be allowed thereafter. DES- I II Division Case No.1 DEPB Meeting M/s Matrix Laboratories Ltd, Hyderabad F.No.01/82/162/6376/AM05/DES-I II case is st ill under examinat ion of DOR. I t was t her ef or e, decided t o def er the case to relist it when DEPB Committee meets again. Case No.2 DEPB Meeting M/s Matrix Laboratories Ltd, Hyderabad F.No.01/82/162/1190/AM05/ DES-I II case is st ill under examinat ion of DOR. I t was t her ef or e, decided t o def er the case to relist it when DEPB Committee meets again.
10 10 Case No.3 DEPB Meeting M/s De-Nocil Crop Protection (P) Ltd, Mumbai F.No.01/82/162/778/AM04/DES-I II The Commit t ee consider ed t he case as per det ails given in t he Agenda. It was decided t o r ever t back t he case t o ALC who would ident if y t he specif ic it ems could be cover ed f or t his pur pose and a suit able f oot not e can be incorporated in the DEPB schedule thereafter. DES- I V Division Case No.17 DEPB Meeting No.08/05 M/s Jubliant Organosys Ltd., Noida F.No.01/83/162/758/AM05/DES-I V Commit t ee obser ved t hat it was a t ypogr aphical er r or and agr eeing t o t he r ecommendat ion of t he ALC, it was decided t o cor r ect t he descr ipt ion in respect of Sl.No.910 of DEPB schedule for Chemical items to read as under:- 2 Picoline (Alpha) / 4 Picoline (Gamma) The agenda r elat ing t o DES-VI division was not t aken up f or discussion as nobody from DES-VI Division was present to present the cases. This agenda will be taken up for discussion in the next meeting. I t was also decided t hat all t he ALCs should pr epar e pr oper r evised dat a base and wor k out r evised DEPB r at es consequent upon r educt ion in t he cust oms dut ies and t hese r evised dat a sheet s should be sent t o t he Convener of the DEPB Committee latest by The meeting ended with vote of thanks to the Chair. ********
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