NESTLE, EXCISE DEPT FIGHT OVER `WAFER'

Article Abstract:

Nestle India Ltd (NIL) and the Central Excise authorities have expressed difference of opinion over the classification of KitKat. NIL which contends its product to be a wafer, has paid the duty payable at the rate applicable to wafers. The Central Excise department feels that KitKat is a chocolate and wants NIL to pay the higher duty applicable to chocolates along with the penalty for misclassifying the product. The Central Excise department has also pointed out that NIL had not countered the claim of the retail store audit report of ORG, a research firm, which claimed the product to be a moulded chocolate. The Excise department has asked NIL had to pay a duty of Rs24 crore which includes a differential duty of Rs12 crore and an equal amount of penalty for misclassifying KitKat. (ag)

Government regulation, Cookie and Cracker Manufacturing, Wafers for Ice Cream Sandwiches, Nestle India Ltd., Ice cream cones

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8 PERCENT EXCISE WILL HIT BRANDED TEA EXPORTS

Article Abstract:

The eight percent excise duty imposed on tea by the union budget for 1998-99 is expected to hit the Rs850 crore branded tea segment severely. The domestic tea market will be first hit which in turn will upset the technical upgradation for exports. The excise levy will increase the prices of the domestic branded tea by at least Rs12 per kg leading to fall in demand and consequently a funds crunch for modernisation. At present, exports of value-added tea account for 49 percent of India's total tea exports, amounting to Rs1,800 crore. (gsh)

Comment:

India: Eight percent excise duty on tea by union budget for 1998-99 is seen to hit Rs850 crore branded tea segment severely

Processed Tea, Coffee and Tea Manufacturing, Tea (Beverage), Article

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