Excelsior Correspondent
JAMMU, May 23: Bari Brahmana Industries Association (BBIA) has claimed that existing edible oil manufacturing units in J&K are facing closure due to lack of support from the Government.
In a meeting of the Association held here today, its president Lalit Mahajan said that existing edible oil manufacturing units working in JKUT face closure as the Finance Department failed to remove the edible oil manufacturing industrial units from the negative list of SRO 63 of 05-02-2018 (Item No. 4 Edible Oil), extended up to 31-3-2031 vide SO NO.243 dated 16-07-2021, due to which the reimbursement of SGST under budgetary support not permitted to these units working in Jammu & Kashmir.
While highlighting the issue Mahajan drew the attention of Lt Governor of Union Territory of J&K, Manoj Sinha and Chief Secretary- Atal Dulloo that the manufacturing of edible oil by Micro & Small Scale Industrial Units by crushing of oil seeds is classified as Industrial activity as the unit holders use the oil seeds as a raw material to extract the oil by crushing the seeds and having requisite quality marks as per the “FSSAI”.
Keeping in mind the above facts there is no justification for keeping the edible oil in negative list which is being manufactured by the Industrial units by crushing the oil seeds duly registered with the Industries Department as “Manufacturing Activities”.
Mahajan said as per SRO 63 of 2018 issued by J&K UT Finance Department, number of Industrial goods being manufactured by MSME Sector in Jammu & Kashmir classified under Negative List with the inclusion of Edible Oil resulting stiff competition between the Local Existing Units as on 31-3-2021 and new units being set up under the NCSS-2021 who are getting the gross reimbursement of GST resulting, the local units established prior to 31-3-2021 may face closure in near future. He sought immediate intervention of Lt Governor into the matter.
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