City traders threaten stir over Excise move

Between dealers and manufacturers, the original manufacturer issues the invoice once the goods leave his unit. When the dealer receives them and sells them to another manufacturer who is to use them further, the dealer issues modvatable documents. It is at this stage thatModvatable documents are duplicated or manipulated, sources in the department allege.

In fact, in the last two months, Dec8217;98-Jan8217;99 the Mumbai commissionerate has detected 1,110 cases of alleged MODVAT misuse involving Rs 17 crore.

Trade representatives, have, on the other hand questioned how the department can impose such conditions on them when dealers are not the ones to avail of MODVAT.

Meanwhile, meetings are on in the Excise department and some 300 to 400 dealers have already been identified. The department is likely to go after them first.