recent directory of meetings - gsia | goa … options (milav / upaay / ...) wer e shown and...

GSIA BulletinGSIA Bulletin

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07.05.2007 - Technical Advisory Committee Meeting attended by Mr Keshav K. Kamat.

11.05.2007 - SLIIC Committee Meeting attended by Mr Atul D. Pai Kane.

11.05.2007 - Meeting on to finalise name and logo for Integrated Citizen Service Centres to be established at

every village panchayat attended by Mr Lalit Saraswat.

The Integrated Information Infrastructure Project (i3) project is being implemented on a PPP

model. The technology partner 3i Infotech Ltd. talked of the plan to establish Integrated Citizen

Centric Service Centres (CSC) at each village panchayat. The BPR report of first 15 services to be offered as a

part of this will be submitted by 20 May 2007, and by 31 August, the online portal with these 15 services will be

offered to the public. The 31 March 2008 deadline is for 40 services. Eventually, 221 services will be offered

via these CSCs. These are G2C (Government to Citizen) and G2B (Government to Business) services. The

common man will be able to utilize these services via CSCs, as also via any PC with Internet access. The name /

logo options (Milav / Upaay / ...) were shown and discussed by the Lintas representatives.

st15.05.2007 - 81 Meeting of the Goa State Pollution Control Board attended by Mr Keshav K. Kamat.

17.05.2007 - Meeting to discuss the progress of Centre of Excellence Scheme for ITIs attended by Mr Atul D. Pai Kane, Dr.

Sangam Kurade and Mr G.P. Chimulkar.

18.05.2007 - Meeting regarding Revivial of Tool Room and Training Centre attended by Mr Atul D. Naik.

07.06.2007 - Technical Advisory Committee Meeting attended by Mr G.P. Chimulkar..

RECENT DIRECTORY OF MEETINGS

th1. A letter dated 10 May, 2007 was addressed by Mr Atul D. Pai Kane to the Director (Ancillary), Office of the

Development Commissioner, Ministry of Small Scale Industries, New Delhi forwarding the Progress Report of GSIA

Sub-Contract Exchange System for the period from Janaury-March, 2007.

th2. A letter dated 14 May, 2007 was addressed to the Deputy Commissioner, Office of the Commissioner of Customs and

Central Excise forwarding points to be discussed in the ensuing RAC Combined Meeting.

th3. A letter dated 14 May. 2007 was addressed to the Managing Director, Goa-IDC mentioning the

hardships being faced by the units in Kundaim Industrial Estate and to resolve the same as soon as possible.

th4. A letter dated 17 May, 2007 was addressed to Mr K. Shamjee, congratulating him for taking over as the Director, SISI-

Margao.

th5. A letter dated 19 May, 2007 was addressed to Mr K. Shamjee, Director, SISI-Margao forwarding data base regarding

important Women Entrepreneurs in the SSI/ MSE Sector in Goa.

RECENT IMPORTANT CORRESPONDENCE

May - June 2007May - June 2007


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IMPORTANT NOTIFICATIONS AND CIRCULARS

1. GOA STATE POLLUTION CONTROL BOARD

Circular No.4/77/06-PCB/

Sub: Combined Form for Consent to Operate under the Water and Air Act and Authorization

under Hazardous Waste.

thThe Board in its 77 Meeting approved issue of combined form for Consent to Operate under the Water and Air Act

and Authorization under the Hazardous Waste (M&H) Rules, as amended in 2004. With this approval, all industries

will have to obtain Consent to Operate under the Water and Air Act and Authorization under the HW Rules. The Draft

Notification has been forwarded to the Govt. for approval and Notification in the Gazette.

Orange Category Industries -

· On the issue of the Notification for the combined form, the industries categorized as Orange category will be issued

Consent with a validity period of 12 years and will pay two times the present prescribed fee.

The industries which apply for Consent prior to issue of Notification, with present fee will be issued a Consent with a

validity period of five years for SSI industries. After the publication of the Notification in the Gazette, the industries will

have to pay one more fee as per the present fee structure, and the validity of the Consent will be extended for a further

period of seven years (effective 12 years) for SSI industries.

With regards to the industries which are already in operation and have obtained permanent SSI registration, will have to

pay one fee for the operation in the previous period on pro-rata basis (if the industry has obtained a permanent SSI in

the previous two years, the industry will have to pay fees for two years (2 years)(2/5). Industries which are not

permanently registered as SSI units with DITC will have to pay all the past fees and the late fees as applicable.

Green Category Industries -

On the issue of the Notification for the combined form, the industries categorized as Green category will be issued

Consent with a validity period of 15 years and will pay two times the present prescribed fee.

The industries which are in operation and apply for Consent prior to issue of Notification with the present fees, will be

issued a Consent with a validity period of five years for SSI industries. After the publication of the Notification in the

Gazette, the industries will have to pay one more fee as per the present fee structure, and the validity of the Consent will

be extended for a further period of ten years (effective 15 years) for SSI industries.

With regards to the industries which are already in operation and have obtained permanent SSI registration, will have to

pay one fee for the operation in the previous period on pro-rata basis(if the industry has obtained a permanent SSI in

the previous two years, the industry will have to pay fees for two year (2 years) (2/5). Industries which are not

permanently registered as SSI units with DITC will have to pay all the past fees and the late fees as applicable.

sd/-

A.G. DAIWAJNA

MEMBER SECRETARY



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2. LIST OF ITEMS DE-RESERVED

The Union Ministry of Commerce and Industry (Department of Industrial Policy and Promotion), GoI has vide notification no. SO.355 (E) dated 13.03.2007 de - reserved 125 items reserved for exclusive manufacture in the small scale sector. With this, the number of items reserved for exclusive manufacture in the small scale sector noe stands at 114. For the revised list of items reserved for exclusive manufacture in small scale sector visit www.smallindustryindia.com or www.laghu-udyog.com. Given below is the list of 125 items de-reserved.


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3. OFFICE OF THE COMMISSIONER OF CUSTOMS AND CENTRAL EXCISE TRADE NOTICE NO. 07/2007-CE

Sub: Time bound disposal of application for the unit set up under EOU/EHPT/STP/BTP scheme -reg.

Attention of the Trade is invited to Circular No. 02/2007-Cus, issued vide F.No.DGEP/ EOU/459/2006 dated 09.1.2007, by the Addl. Director General (EP), Govt. of India, Ministry of Finance, Department of Revenue, Central Board of Excise & Customs, Directorate General of Export Promotion, New Delhi, on the above subject.

2. The issue of timely disposal of the applications/requests of EOUs has often been raised in Open Houses. Several representations from the EOU exporters have also been received expressing difficulties on account of delayed action on their applications/requests in the field.

3. CBEC vide Circular no. 07/2006-Cus dated 13.01.2006 and 17/2006-Cus dated 01.06.2006, has already prescribed time limit for certain activities like certification for debonding from EOU scheme within 15 days, priority verification of premises of EOU/EHTP/STP to facilitate issue of LOP by the Development Commissioner within 15 days and declaration of warehousing station under Section 9 of the Customs Act, 1962 within 23 days.

4. Fixation of time frame improves transparency and sensitizes the field officers to discharge their functions in a time bound manner. Accordingly, it has been decided to prescribe the following time frame for disposal of applications/requests of EOU/STP/EHTP by the field formations at the field level:

Sl.No. Nature of Work Time for disposal of

applications

1 Certification for de-bonding from EOU scheme 15 days

2

Priority verification of premises of EOU/EHTP/STP, to facilitate issue of LOP by

the Development Commissioner.

15 days

3 Declaration of warehousing station under Section 9 of the Customs Act, 1962. 23 days

4 Issuance of Licence under Section 58 and Section 65 of Customs Act, 1962. Five days


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Sl.No. Nature of Work Time for disposal of

applications

15

Re-export

(subject to 24 hrs advance intimation required to be gi ven by the exporter in case

of sealing of goods and examination at the place of despatch).

One day or such

shorter period as may

be mutually agreed.

16 Permission for re-export of rejected raw material/ capital goods/ consumables. Two days

17 Permission for job work/ sub-contract. Five days

18 Renewal/ extension of job work/ sub-contrct in cse of no change in the application. One day

5 Execution and acceptance of B-17 bond. One day

6 Additional B-17 Bond acceptance Same day

7 Extention/ Renewal of License Three days

8 Broad banding of license Three days

9 Broad banding of goods Same day

10 Issuance of Procurement Certificate Same day

11 Issuance of CT-3 Certificate Same day

12 Warehousing of raw material/ capital goods/ consumables One day

13 Issuance of Re-warehousing certificate of raw-material/ capital goods/ consumables. One day

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Export

(subject to 24 hrs. advance intimation required to be given by the exporter in case

of sealing of goods and examination at the place of despatch).

Same day or such

shorter period as may

be mutually agreed.

5. The above proposed time period would be exclusive of holidays. Further in a case, where any deficiency is found in the application or any additional information/ action is required, the proposed time period will apply only after rectification of deficiency and re-submission of the complete application.

sd/-Sheo Narayan SinghCommissioner

4. OFFICE OF THE COMMISSIONER OF CUSTOMS AND CENTRAL EXCISE TRADE NOTICE NO. 08/2007-CE

Sub: Inter Unit Transfer of Capital goods from one EOU / STP / EHTP unit to another EOU/STP /EHTP unit -reg.

Attention of the Trade is invited to Circular No. 16/2007-Cus, issued vide F.No.305/15/2006- FTT (DGEP) dated 18.04.2007, by the Addl. Director General (EP), Govt. of India, Ministry of Finance, Department of Revenue, Central Board of Excise & Customs, Directorate General of Export Promotion, New Delhi, on the above subject.

2. A doubt has arisen regarding scope of the term 'capital goods' for inter unit transfer from one EOU/STP/EHTP unit to another EOU/STP/EHTP unit in terms of notification No. 52/2003-Cus dated


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31.03.2003 as amended. A view has been expressed that since 51. NO.1 of Annexure-I to notification No. 52/2003-Cus dated 31.03.2003 specifically lists 'capital goods', items listed at Sl.No. 2 to.30 of the said Annexure-I cannot be considered as 'capital goods' and consequently inter unit transfer of these goods cannot be permitted in terms of condition (4b) of the opening paragraph of notification No. 52/2003-Cus dated 31.03.2003. This issue was also discussed during the Chief Commissioner's Conference held on 15-16 December, 2006.

3. The matter has been examined. SI.No. 1 of Annexure-I to notification No. 52/2003-Cus refers to the term 'capital goods'. However, this term has not been defined in the notification. Some of the items mentioned in other Sl.Nos. of the Annexure to this notification, which are specifically listed for being eligible for the exemption, may also qualify as 'capital goods' depending upon their use in a particular case (such as overhead cranes, jigs & fixtures, moulds etc). It is viewed that 'capital goods' listed at Sl. No.1 and some of the goods covered under other Sl.Nos. are not mutually exclusive.

4. Hence it is clarified that specific items listed at Sl. Nos. other than SI. No.1 of the Annexure to the notification may also be allowed the facility of inter unit transfer, if these items Qualify to be considered as 'capital goods' depending upon their use.

5. The above clarification would also apply to capital goods covered under other annexures to this notification and under annexures to notification No. 22/2003-C. E. dated 31.03.2003 as amended.

sd/-Sheo Narayan SinghCommissioner

Sr.No. Description

1 The Central Sales Tax Act, 1956 (Central Act 7 of 1956)

2 The Goa Value Added Tax Act, 2005 (Goa Act 9 of 2005)

3 The Goa Value Added Tax Rules, 2005

4 The Goa Tax on Entry of Goods Act, 2000 (Goa Act of 2000)

5 The Goa Tax on Entry of Goods, Rules, 2000

6 The Income Tax Act.

7 The Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act)

8 The Micro, Small and Medium Enterprises Development Rules, 2006 (MSMED Rules)

9 Hazardous Waste (Management & Handling) Rules, 1989.

10 The Environment (Protection) Rules 1986,

11 The Electricity Act, 2003 (Central Act No. 36 of 2003)

12 Air (Prevention & Control of Pollu tion) Act, 1981

13 Water (Prevention & Control of Pollution) Act, 1974

ACTS AND RULES APPLICABLE TO INDUSTRIES IN GOA

Industrialization has contributed immensely to the economic development of the world. However, in

its wake has caused environmental degradation. Since human beings have to live within their

environment, the process of development should be sustainable so that environment quality is

maintained within safe limits. Rapid industrialization has resulted in deterioration of the quality of air.

This happens in almost all urban areas throughout the world. Due to development in urban areas as

centers of trade, commerce and industries, the increase in number of vehicles in urban India,

particularly in metropolitan cities as well as in Goa is (5,29,019) in Goa)

Air pollution from vehicles is of serious concern. The main pollutants emitted by automobiles include,

hydrocarbons, lead, benzene, carbon monoxide, sulphur dioxide, nitrogen dioxide, particulate matter, etc. The pollutants give

rise to symptoms like cough, headache, nausea, irritation of eyes, various bronchial and visibility problems. The air that we

breathe contains oxygen and other pollutant gases which enter our respiratory system.

Water pollution became a serious problem ever since sewage and industrial effluents were disposed into rivers, streams, lakes

and oceans. Industrial activities generate a wide variety of waste products which are sometimes discharged into water courses.

Some of these wastes are toxic. Besides, modern techniques of agriculture involve the use of fertilizers and pesticides which

when applied improperly to the soil find their way into water courses. Nitrogen, phosphate and potash are now used in large

quantities on farmlands. These phosphates and nitrates when applied carelessly to crops or though run-offs may concentrate in

lakes and estuaries causing algal blooms by which entire stretches of water become choked, plants rot resulting in oxygen

deficiency in water bodies and hence fish die. In addition to fertilizers, large amounts of pesticides, insecticides and herbicides

are also applied, resulting in contamination of both surface and ground waters. All pesticides are toxic to human beings and

animals. Pesticides often concentrate in food chains. They affect reproductive abilities of fish and birds. They also affect the

central nervous systems. Recent researches have shown that chlorinated hydrocarbons affect photosynthesis and growth of

marine phyto-plankton. However, it may be stated that water pollution through agricultural practices is much less compared to

sewage and industrial effluents.

Much of the pollution could be prevented without undue cost by (1) careful planning and siting of industries, 2) better designed

equipments and 3) better operation of the equipments.

There are three major means of controlling pollution. These include (1) fuels selection and utilization, 2) process changes or

equipments and 3) site selection and zoning.

Before I took over as Chairman of the Board, the industries were haphazardly spread in different industrial estates, e.g. steel

manufacturing units were established in front of pharmaceutical industries. Naturally, the emissions given out from the steel

manufacturing industries were hanging around the pharma industries, resulting in several complaints from pharma industries

and people dwelling around these areas. This was seen in Kundaim, Madkai industrial Estates. This haphazard distribution of

industries was brought to the notice of Central Pollution Control Board in one the Chairmen's meeting by me and then it was

decided that Zoning Atlas to be prepared and siting of industries to be indicated. A project fully funded by Central Pollution

Control Board has been taken up by the Board and the work is in progress.

The Goa State Pollution Control Board had also sent several Show Cause Notices to the polluting industries at Kundaim,

Madkai, Cuncolim, etc and forced them to install pollution control equipments to control pollution in their respective areas. In

order to control aerosol emissions, the Board has forced five steel manufacturing units in Kundaim to install pollution control

ROLE OF GOA STATE POLLUTION CONTROL BOARD FOR

INDUSTRIES IN GOA (with case studies and issues).Dr. L. U. Joshi

ChairmanGoa State Pollution Control Board.


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equipments such as wet and dry scrubbers, bag filters, ducts etc which will stop emissions of gases and forced them to take Bank

guarantees. These factories have installed such units within specific time and after inspecting, these units by our officials, the

factories were allowed to operate. Similar situations were observed at Madkai and Cuncolim Industrial factories. The officials of

the Board give surprise visits to many of the industries and take necessary action. In case of Cuncolim Indl. Units a PIL was filed

and the matter is subjudice. Other industries, the Board is forcing them to install effluent treatment and sewage treatment plants

before the water is discharged for gardening. All these directions are given as per the Guidelines of Central Pollution Control

Board.

Mining is one the most important industry in Goa and has a number of positive and significant impacts in economic

development of Goa. It is the backbone of economic development of the State. Mining industry gives large opportunities for

obtaining several jobs. Besides, associated industries such as workshops, etc also give rise to employment opportunities to

several people in the State. Goa is rich with minerals like iron ore, manganese, bauxite and silica sand. Mining is concentrated in

four Talukas. It has no doubt affected landscape like pits, overburden dumps and run-off from pits, which has damaged some of

the crops. Dust pollution has caused due to transportation of ore by trucks. However, this type of pollution could be easily

controlled by strictly observing the guidelines of the Central Pollution Control Board in proper perspective. The Board had

called several meetings of the concerned officials and informed them to implement the guidelines of the Central Pollution

Control Board, particularly washing of trucks tyres with water sprinklers, not to overload the trucks with iron ore and close the ore

in the trucks by tarpaulins, etc.

Coal pollution is yet another problem faced by people in Vasco city. I had several meetings with the Port Authorities and

decided to develop Berth Nos. 5A and 6A away from Vasco city. South West Port Ltd had developed these berths. At the same

time, I had forced Port Authorities to fix High Mast sprinklers in coal stacking areas around Marmagoa Harbour and wetting of

coal is carried out at Berth Nos. 10 & 11 to avoid coal particles from flying. I had also obtained 1100 fast, tall growing trees

(Acacia Mangienm) fromSesa Goa's Codli mines and forced Port Authorities to plant these trees which act as barrier and do not

allow the coal particles to reach Vasco city.

I had also forced M/s. South West Port Ltd to go for automization using Track Hopper and Conveyor Belt system at Berth Nos. 5A

and 6A, which was undertaken by M/s. South West Port Ltd and with this installation of automisation at 5A and 6A Berths the

pollution in the area is very much reduced. However, a PIL is in the High Court and the matter is sub-judice. There were two

Ambient Air Monitoring Stations, installed in Panaji and Vasco city, when I had taken over as Chairman, Goa State Pollution

Control Board in June 2003. I had installed two more Ambient Air Monitoring Stations one at the terrace of Central Fire Brigade

Station of MPT with the assistance from Central Pollution Control Board and with the assistance of M/s. South Port Ltd at Berth

Nos. 5A & 6A.

I had also fixed “DISPLAY BOARDS” at several places such as 1) Kadamba Bus Stand, Panaji 2) Syngenta, 3) Ciba, 4) Sesa

Goa, Amona, 5) Chicalim junction near Airport. I have also decided to fix few more Display Boards with the help of industries

under NEP-2004 under Polluter to Pay. This include “DISPLAY BOARDS” at Kundaim, Madkai, Cuncolim, Zuari Industry etc.

The “DISPLAY BOARDS” will give maximum permissible concentrations as per CPCB and the Actual values obtained on two

days in a week for sulphur dioxide, oxides of nitrogen, respirable suspended particulate matter and suspended particulate

matter.

I had established one Physical and Analytical Chemistry Laboratory on the first floor of the Board at Dempo Towers and later

procured another space on the fourth floor and set up another Physical and Analytical Chemistry Laboratory and Micro-

biological Laboratory. I had also procured most sophisticated instruments such as Atomic Absorption Spectrophotometer, Gas

Chromatograph, Mercury Analyzer, pH meters, Noise monitors, UV spectrophotometer, Conductivity meter, Turbidity meter,

Air samplers, etc from the funds obtained by me from Ministry of Environment and Forests (New Delhi) and Central Pollution

Control Board. With this the Board is able to analyse all pollutants in the parts per million and parts per billion levels. I had also

taken steps and got our laboratory recognized by Ministry of Environment and Forests under Environment Protection Act 1986.



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The officials if Ministry of Environment and Forests and Central Pollution Control Board who visited our laboratories have stated

that our Board is one of the Best State Boards in the Country. After recognition under EP Act (1986), I am now proceeding for

NABL recognition, which is likely to be obtained within next two years. If this is achieved then the Board's laboratory will be

World Recognized and the Goa State Pollution Control Board will be the Best Board.

I have computerized the Board's activities by installing 20 computers from funds which I have received from Ministry of

Environment and Forests, New Delhi and Central Pollution control Board. Networking was completed and Website of the

Board was launched [email protected]

I had also brought transparency in the working of the Board. The meetings of the Technical Committee are held on every

Tuesday and approval is given by the Chairman on every Wednesday and on the same day the approvals are displayed on

GSPCB Notice Board, GSPCB Website and GCCI Website. The approvals are then dispatched to the concerned factories on

Thursday. The fees for consents are to be paid to the Oriental Bank of Commerce, Patto. The officials of the companies/units

should not visit the Board's office or contact any official about the approvals as the same are dispatched immediately. Thus, I

have made the Board totally transparent and free from corruption.

I had procured one Tempo Traveller which was modified and fitted with portable instruments in order to determine

concentrations of various pollutants by moving this “MOBILE LABORATORY” to the required place. The mobile laboratory

and instruments were procured from the funds (Rs.31.4 lakhs) which the Board had received recently from the Ministry of

Environment and Forests (MOEF) New Delhi and Central Pollution Control Board. The Board has now received funds for the

procurement of instruments for second “MOBILE LABORATORY”. This second Mobile laboratory will be put into operation

shortly. One MOBILE LABORATORY will be used for North Goa and the other MOBILE LABORATORY for South Goa for

measurements of pollutants.

I have also fixed “WEATHER MONITORING STATION” on the terrace of Dempo Towers at Panaji which gives data for every

minute, averaged to every hour on Air temperature, Solar radiation, Rainfall, Relative Humidity, Wind speed and Wind

direction. The data received will be used for modelling studies of air masses which will throw light on the movements of various

pollutants. This is a research study which will be undertaken with the funds available from the Central Pollution Board.

The Board has undertaken Projects with funds from Central Pollution Control Board. These include 1) SPATIAL PLANNING -

for the preparation of guidelines for siting of industries in Goa, 2) NAAQAM- National Ambient Air Quality Measurements and 3)

MINARS.

I have also established “REGIONAL OFFICE” of Goa State Pollution Control Board at Verna Industrial Estate which will cater

the needs of all the industries situated in South Goa. I have already received rupees 24.35 lakhs for computerization of activities

from Central Pollution Control Board and 78.83 lakhs from the Ministry of Environment and Forests, New Delhi for instruments

which will be used foe setting up a full fledged Laboratory at the “REGIONAL OFFICE “ at Verna

MUNICIPAL SOLID WASTE (GARBAGE) is a serious problem faced in Goa. According to MSW Rules (2000), all the

municipalities have to undertake the work of collection, segregation, transportation, treatment and disposal of municipal solid

waste in their areas of jurisdiction. According to the Municipal Solid Waste Rules (2000), all the Municipalities had to set up

treatment facility and landfill site by 31.12.2003. The Goa State Pollution Control Board had given authorization for all the 14

Municipalities for setting up the treatment facility and landfill site after recommendations are given by the committee comprising

of (1) Town and Country Planning 2) Water Resources Department 2) Director, Municipal Administration, 4) Forest Department,

5) Airport Authority of India and 6) Member Secretary, Goa State Pollution Control Board. However, till today none of the

Municipalities were able to comply with Directions of the Hon. Supreme Court. Hence, the Goa State Pollution Control Board

had issued Show Cause Notices to all the Municipalities on THREE different occasions. A PIL is also filed in the Higher Court and

the matter is subjudice. It may be noted that as per MSW Rules (2000), the District Collector has the ultimate responsibility for

implementation of the Rules.



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Goa is generating about 300 MT of garbage and it is necessary that the disposal of the garbage has to be taken on priority basis.

For this the Board had taken several meetings of the Chief Officers and Chairpersons of the Municipalities. The Board had also

informed all the Municipalities on several occasions not to burn the wastes in bins since the burning of plastics will emit dioxanes

and furans which are highly carcinogenic.

The Board had also made arrangements with CPCB to obtain funds for PLASTIC DEMO ROAD in Ponda City as Ponda

Municipality only submitted a proposal to the Board for the same. CPCB approved and sanctioned Rs.6.20 lakhs. The Board

had several meetings with the officials of Ponda Municipalities and it is expected that the work will start immediately after

monsoon. This way the plastic in the state which is thrown along the roadside will be reduced. All other Municipalities should also

follow the same procedure. The Board had also succeeded obtaining a sanction of 50% of the cost for setting up treatment

facility and landfill for one of the Municipal Councils from Central Pollution Control Board. In this regard, I had forced Panaji,

Margao and Ponda Municipalities to submit the proposals. These proposals were then forwarded to CPCB and CPCB was

agreeable to fund 50% of the cost to the Panaji Municipal Corporation. However, since they could not get proper landfill site, the

proposal remained pending with CPCB.

The Goa State Pollution Control Board on several occasions informed the Chief Officers and Chairpersons to take up the issue of

garbage on priority basis but so far they are not able to comply with the Directions given by Hon. Supreme Court. It may be

noted that leaching of the untreated garbage can give rise to several health problems as the rainy season is approaching. The

Board feels that Hon. High Court's directions will be implemented and the people of Goa will be free from Garbage menace.

In Goa there are 200 HAZARDOUS WASTE generating Units. The total amount of HAZARDOUS WASTE generated is 10000

tons, per annum of which 2300 is recyclables, 2400 is incinerable and 5500 tons is for the landfill. After having several meetings

with Min. for Environment and officials of Maharashtra Pollution Control Board, it was agreed that incinerable hazardous waste

generated in Goa will be treated and disposed at Mumbai Waste Management Facility at Taloja. The Government of Goa has

now identified a Site at Darbandora to establish secured landfill site. EIA and Public Hearing has been completed and the stapplications is submitted MOEF for Environment Clearance, the Meeting for which will be held on 21 June 2007. A Notification

will be issued on obtaining Environment Clearance.

The Goa State Pollution Control Board has also complied with the Directions issued by the Supreme Court Monitoring

Committee with regards to (1) Carrying out HAZARDOUS WASTE INVENTORY , (2) INSTALLATION OF BOARDS outside

the industrial units, and (3) CLOSURE OF INDUSTRIES not having AUTHORISATION from the Board.

The total no. of HEALTH CARE FACILITIES registered in Goa State Pollution Control Board is 182. The average quantity of the

waste generated in 1027 kg/day, excluding the waste generated in Goa Medical College. The Department of Health Services

had invited Expression of Interest for setting a common Biomedical Waste treatment facility in Goa. The work has been

awarded to M/s. P. K. Waste Management Services, Amravati.


***


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The structure of an ideal VAT:-

stThe Value Added Tax is an important innovation of 21 Century. In its purest form, VAT is a tax that is levied on the value added along different stages of production and distribution of a commodity or service. Therefore, it is on the sum total of value added, i.e., equal to the value of a commodity or service. In this sense, it should be equivalent to a retail sales tax that is collected only at the retail stage. But the retail sales tax is difficult to collect because there are too many retailers of various sizes. The VAT, instead, can be collected at earlier stage of production in different fragments and can end at the retail stage. But the total tax collected from the VAT should be exactly the same as if collected only from the retailers of the commodity concerned.

The VAT system is a basically a reform to replace the old Sales tax System which had manifold defects, the major one being 'cascading'. The change was never brought to increase the revenue of the state and the concept of Revenue Neutral Rate (RNR) was at the core of the systems. Unfortunately, we could not enforce RNR in true sense as different RNR's were working out for different states. Implementing such RNR's would have revived “rate war” which was effectively controlled under “Uniform Floor Rate”. In case of our own State the RNR was working out less than 12%. The VAT system introduced in India cannot be termed as true VAT. It is a distorted VAT. In true VAT, there is no scope for exemption such as Tax Based Industrial Incentive etc. But in India, all of sudden, discontinuance of such an incentive enjoyed by industries over a period of time would have created number of problems and therefore, it was thought of controlling it to the extent possible in acceptable form, without harming the VAT system, seeking to take it's place in the economy.

Sales Tax Based Incentive

Sales Tax based incentive by way of exemption of Sales Tax was introduced in the then Union Territory of Goa, Daman & Diu as early as in 1971. Initially, it was 5 years to be reckoned from the date of registration with the Department of Industries & Mines. Subsequently, having realized it's impact, the period of 5 years was counted from the date of first sale after the date of Sales Tax registration, provided the claimant industry is registered with the Department of Industries. The period of exemption provided for got enhanced to 15 years somewhere in the year 1983. The relevant entry of the second schedule also undergone changes with clause for graduation from 'small' to 'medium' and exclusion of highly polluting industries from the purview of exemption generally, but allowable conditionally.

Consequent upon decision in the conference of Chief Ministers on 16/11/1999, this incentive of exemption has been discontinued to the new units w.e.f. 1/4/2002. The existing units, however, were allowed to reap the benefit till its expiry, termed as “ balance unexpired “ period.

In relation to medium and large scale industries, the exemption incentive was extended somewhere in the year 1985.Initially it was for 10 years for Medium Scale and 5 years for Large Scale Industries. Subsequently the period was enhanced to 12 years and curtailed to 10 years w.e.f. 1/4/2001. Polluting Industries were excluded from exemption generally, but allowed conditionally in exercise of power vested in Government.

As stated earlier, largely on account of sales tax based incentive by way of exemption the growth of small scale industries in the state was eye catching. It is an accepted fact, that within the State, raw materials and capital goods required by Industrial Units functioning in the State are by and large not available within the State. With the result these items are required to be procured from outside the State. Consequently, the procured goods had to be loaded with 4 % CST. Further, there being no local market for the goods produced by the Industrial Units, the dispatches had to made by way of sales to other states.

It is on account of extension of exemption to inter state sales made by eligible Industrial Units of the goods manufactured

PROBLEMS OF SSI'S IN VAT AND EXPECTED SOLUTIONS.

Advocate Y. S. Pai Bir

Former Commissioner of Sales Tax & Excise, Goa

& Hon. Advisor (Commercial Taxes) GSIA.


26


by them, the Industries could stand in the competitive market in relation to outside the state manufacturers.

The authorities at the helm of the affairs of the Sales Tax Department then realized the position and the difficulties likely

to be faced by the Industries once the VAT is introduced and implemented the Goa Sales Tax Deferment-Cum-Net Present Value

Compulsory Payment Scheme, 2001. The scheme underwent amendments according to the needs of hour in 2003 and 2005.

Exemption of CST: A noteworthy feature of Goa Sales Tax exemption is that it was extended to inter-state sales u/s

8(5) of the Central Sales Tax Act, 1956. Only after 11/5/2002 the requirement of production of C/D form was introduced by

amendment to the C.S.T. Act, 1956.

Effect of Incentive: During the pre-liberation era in Goa, we had only 46 industries. During the period from 1961 to

1971 approximately 423 industries were started in the Territory. In 1987, i.e. at the time when Goa achieved statehood, there

were approximately 3,200 Small Scale Industrial units. The credit for such a speedy growth of SSI 's has to go in a big way, to

Sales Tax incentive and effective implementation of relevant scheme. The march continued and at the end of 2005 it crossed

7000(Industries).

The Goa Value Added Tax Deferment-Cum-Net Present Value Compulsory Payment Scheme, 2005 which is

commonly known as 'NPV' Scheme has replaced the exemption available in Sales Tax regime. The scheme is compulsory as far

as local sales are concerned i.e. for purposes of VAT. It simply means payment of 25% of net tax payable during the balance

unexpired period of exemption available in pre-VAT regime.

Although in Goa, NPV Scheme is made compulsory; in neighbouring states exemption continued which placed the

Goan industries in disadvantageous position in competitive market as compared to neighbouring state industries.

Besides, as stated earlier there being no raw material required by industries available within the state, it had to be

imported from other states on payment of CST of 4 % for which no input tax credit was available in VAT .

It would have been an industry friendly gesture if the NPV was allowed to be worked out at 25% of output tax and

deduction of admissible input tax credit was allowed with due revenue safeguard from so allowed NPV at 25%. However, the

Authorities in Sales Tax were too much revenue minded and were working the revenue collection arithmetically forgetting that

the revenue for the State will only accrue if industries function effectively and required employment opportunities are created

within the State.

It would also have been a step towards safeguarding the local industries to allow one time option for eligible industries

who have opted for NPV to be in exemption during limited period within the so called 'balance unexpired' period. This could

have been till CST is completely phased out. Further, it could have been restricted at a point of sale by eligible industry to plug

the anticipated leakages of the revenue.

One more issue the framers of NPV Scheme have not taken into consideration is that, continuance of NPV Scheme

benefit in case of graduation from Small Scale Industry to Medium Scale Industry / Large Scale Industry. In the best interest of

local industries specially those in small scale sector, such a concession would have provided a required solace.

The above issues perhaps escaped attention of draftman of the scheme due to missing / postponing the VAT

implementation date and diluting the VAT to a large extent in National Interest. Proper feedback from the market during the post

implementation period of VAT and considering such feedback in right spirit would have eased out the problem of SSI sector.

Other issues affecting industries in VAT regime.

Entry 53 of schedule B to the Goa VAT Act, 2005 reads as under:-

“Industrial inputs and packing materials as may be notified.”

The Government of Goa has notified the items for purposes of said entry. Now, 'Industrial input' and 'packing material'

are two different and distinct classes of goods. The Department of Sales Tax has misinterpreted the entry to mean that packing


27


material, to fall within the ambit of said entry should be packing material to be consumed by the industry. With this

misinterpretation, Government prescribed form XXXIII for claiming the lower rate of 4 % under the entry referred to above. The

result is that traders are reluctant to purchase packing material from industries as the VAT rate for them is 12.5 % (without VAT

XXXIII ). In fact, under VAT system there should not be any forms such as VAT XXXIII, VAT XXX. If the revenue leakage is

required to be plugged and if Government fears loss due to misuse by certain unscrupulous traders, linkage could have been to

the provision of Section 8 (3) of the Central Sales Tax Act, 1956.

In any case, the provision of forms VAT XXX and VAT XXXIII is against the principles of Value Added Tax.

Effect of recent amendment to the C.S.T. Act, 1956.

stWith effect from 1 April 2007, the Central Sales Tax Act, 1956 has been amended. As we are now aware, VAT is a

consumption based tax i.e. tax collected by State where goods are consumed. As against this, CST is production based tax i.e.

tax collected by State where goods are generally produced. On comparison of both these taxes, one can infer that they i.e. CST

and State VAT are not compatible.With effect from 1/4/2007 following changes, inter-alia, are brought in force:- i) CST rate reduced to 3%.ii) CST rate applicable for sale to unregistered dealers will be same as that of VAT rate within the State.

stiii) 'D' forms which were issued by Government Departments upto 31 March 2007, stands abolished.Now sale to Government will be treated for CST purposes as if it is sale to unregistered

dealer.SSI's in Goa supplying goods to Government Departments / registered dealers / Unregistered dealers, in course of inter-

state trade, shall have to charge CST as follows:-

Now in 4% taxable schedule of Goa VAT Act, there are certain entries which take within their ambit components, fittings

and parts of named commodities. It is quite possible that some of the parts are multi-use parts and for that reason disputes as

regards rate of tax with Assessing Authority at subordinate level cannot be ruled out. The SSI's manufacturing parts /

components / fittings should, therefore, exercise proper caution.Although there is 1% reduction in CST this year and it is hoped, further reduction will be as anticipated, the real solution

will come if CST is reduced to NIL and inter-state transactions are 'zero rated'.

Computerisation of the Department:-

It is surprising to know that the Department is not fully computerized even after two years of VAT being implemented.

CAN VAT be effectively enforced without Computerisation? Even the Registration Certificate under the Goa Value Added Tax

has not been issued to the dealers including the SSI's inspite of 2 years period having been elapsed. The Department is perhaps

happy on overall growth of tax revenue. But the fact remains that the major contribution is from 'petroleum products' and 'NPV'

of industries. It will be foolishness to place reliance on one single commodity. The ways and means for alternative should be

found out and the knock at the door of Goods and Service Tax by 2010 should not be ignored or passed on by Authorities to their

Successors. No time should be spared to make a comprehensive study of problems likely to crop in once Goods & Service Tax is

introduced as categorically spelt out by Honourable FM of India in his Budget Speech. He has placed the date of implementation

as 2010. The Government, Trade & Industries, therefore, have ample time to open a debate on the issue and to bring to light the

likely disadvantages of the business class, specially, SSI's which have bright future in posterity.

The newly installed Government in Goa should endeavour to translate the above suggestions in reality to give solace to

the SSI's which in turn will boost up revenue collection.

………..JAI HIND………….JAI GOA………………

CST rate VAT rate for sale in Goa. In case of sale to Reg. Dealers with

C form In case of sale to URDs / Govt.

NIL NIL NIL 4% 3% 4% 12.5% 3% 12.5%

***


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A Preliminary Meeting of Micro Entrepreneurs from various parts of Goa was held on 12th June '07

under the ageis of GSIA which has decided to form a Micro Enterprises Cell to focus on issues related

to this sector. Micro Enterprise is the largest contributor to employment generation in the industrial

sector but at the same time by the very nature of its size it is easily vulnerable. Governments have been

formulating policies to encourage this sector but the rules, procedural bottlenecks and

implementation is so poor that the policies remain on paper and problems continue to haunt this

sector.

ndThe MSMED Act 2006 which came into force from 2 Oct '06 defines Micro Enterprises as,

(a) a micro enterprise, where the investment in plant and machinery does not exceed twenty-five lakh rupees;

(b) a micro enterprise, where the investment in equipment does not exceed ten lakh rupees.

Various problems facing this sector were discussed. Major concerns were expressed regarding harassment by Inspectors. Variety

of documentations, registration & Inspections specially related to labour, the high cost and unrelated criterion for pollution

control board fees even for non polluting industries, recent increases in minimum wages besides others. Alternatives/ Solutions

using cluster to some of the issues like power, right type of labour, Bank finance etc. at different Industrial Estates were discussed.

It was decided to have a direct participation of Micro Enterprises from all over Goa in & out of the Industrial Estates to identify

more specific problems which could be addressed in a focused fashion.

Micro enterprises who have specific problems to be addressed as well as those who would like to participate in the deliberations

scheduled to be held are requested to contact 2438395 or 2438210.

GSIA - MICRO ENTERPRISES CELL

Mr. Rajkumar KamatGSIA Executive Committee Member

& Chairperson of the Micro Enterprises Cell

***

Source : The Economic Times, Mumbai

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