New Delhi: Under pressure from textile industry for more concessions, government on May 15 announced more tax sops including raising of excise duty exemption limits for power-loom weavers and readymade garments.

The Finance Ministry statement said power-loom weavers will get excise duty exemption up to Rs 25 lakh for the first clearance for an annual turnover of Rs 35 lakh.

Earlier it was Rs 20 lakh for the first clearance with an annual turnover of Rs 30 lakh, the statement said.

All this duty exemption will henceforth be available to manufacturers of shoddy blankets, terry-towels, fabrics made from monofilament, rubberised textile fabric, woven and unprocessed cotton belting and round mesh mosquito net fabric.

Small or self-employed manufacturers of readymade garments now having an annual turnover of Rs 40 lakh will have excise duty exemption for the first clearance of Rs 30 lakh during the 2003-04.

Earlier, it was available up to an annual turnover of Rs 30 lakh with first clearance of Rs 25 lakh.

Incidental processes like putting price tags, washing instructions or altering of garments done by the traders or retailers will be fully exempt so as to avoid their coming under any kind of harassment, the statement said.

The statement said considering that a number of manufacturing activities in textile sector are undertaken on job work basis, the job worker has been allowed option to remain entirely outside the purview of the central excise duty.

The procedure already provides that a principal manufacturer complies with all these formalities, it said.

A one-time credit was announced on textile inputs lying in stock as on April 1, 2003 on the basis of self- declaration of such stock, as given by the manufacturers and traders themselves.

There will be no verification of such stock by the department, it said.

The last date for declaring such stock would now be May 26, 2003 the statement said adding it will not be extended any further.

The stock valuation limit of Rs 10,000 per loom has now been enhanced to Rs 20,000 per power-loom, of stock of yarn and finished goods, the statement said, adding other details will be issued through departmental circulars.

However, as announced by the Finance Minister, this will not have retrospective application or consequences, the statement added.

PTI