The Hindu Business Line : Tea exporters' plea to allow house-stuffing

AT a time when the members of the tea trade were literally rejoicing the reversal in fortunes, the circular from the Coimbatore Central Excise disallowing `house-stuffing' by member-exporters came as a bolt from the blue.

Addressing the 22nd Annual General Meeting of the Tea Trade Association (TTA) of Coimbatore, its Chairman Mr N. Anand, recalled that the department, had in July this year, sent this circular barring house-stuffing by exporters in the auction centre.

``This notification created a lot of dislocation, and had even led to non-fulfilment of export commitment `on time'. The exporters, meanwhile, took up the matter with the Coimbatore Central Excise. The department allowed two-weeks time for filing the house-stuffing application with the Deputy Commissioner/Assistant Commissioner as per the old procedure and another application with the Additional/Joint Commissioner seeking permission for the entire financial year,'' Mr Anand said and appealed to the department to maintain the status quo and allow house-stuffing as in the past.

The exports, he said had picked up considerably during the first half of 2004. Tea exports from the South stood at 35.13 million kg between January and May 2004 as against 22.83 mkg, registering a 54 per cent growth, notwithstanding imported teas for export. The exporters have been able to tap the hitherto untapped markets like Pakistan, Kenya, Iraq and Australia. With Iran removing the ban on Indian teas and Libya lifting sanctions on tea imports the market appears to be good.

Expressing concern about the proposed move to tax tea at 12.5 per cent while the tax on coffee proposed at 4 per cent, the association has appealed to the Government to consider the proposed tax on tea through VAT to 4 per cent.

In his reply, the Deputy Commissioner of Commercial Taxes, Mr V. Ponmani said that the association's representation was being considered by the Government on lowering the tax rate. However, with the imposition of VAT by April 2005, the need for a reduction in the rate would not arise, he added.

The Chief Commissioner of Central Excise, Mr J.M. K. Sekhar, while conceding that there were some problems in house-stuffing procedural formalities in excise, said it (house-stuffing) was important for tea. The department, he said had initiated this measure to bring some order. ``We are thinking of developing a system for house-stuffing,'' he added.

TTA Office Bearers: Mr U.V. Saraf has taken over as Chairman of the Tea Trade Association of Coimbatore for the year 2004-05, and Mr R.L. Maheshwari as the Vice Chairman of the association.

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