Press Release: AOJ Media Pvt. Ltd. the publisher of a magazine on the gem and jewelry sector, one that is a leader throughout India. It also conducts exhibitions for the
gem and jewelry industry in different parts of India, highlighting new trends in
manufacturing. In Kerala, AOJ Media has been hosting the Kerala Gem and Jewellery Show since 2008 under the
auspices of Department of Industries, Government of Kerala. The first three editions -- 2008,
2009 and 2010 -- were inaugurated by the Industry Minister at that time, Elamaram Kareem; the fourth edition was inaugurated by C.N. Balakrishnan, presently the Minister
for Cooperation and Khadi and Village Industries under the chairmanship of Therambil Ramakrishnan, MLA, Thrissur, with the sixth and seventh editions being inaugurated
by K. Babu, the Minister for Excise, Ports and Fisheries.
The present exhibition was proposed for December 6 to 8 and inaugurated by Minister Babu under the chairmanship of Anwar Sadath, MLA, Aluva at 12 p.m. on December 6.
The exhibition is purely a business-to-business (B2) event and not open to consumers. The
purpose of this exhibition is to enlighten the jewelry players about new trends
in jewelry manufacturing and to display novel and innovative designs. No
sales were made and no business transactions were conducted. The exhibition
is meant only for making new contacts, networking and promoting
the jewelry trade in Kerala. This was encouraged by the government of Kerala to
promote and facilitate jewelry manufacturing and trade in the state.
On the second day, December 7, while the exhibition was running smoothly,
the commercial tax department, under the leadership of Ajay Ghosh, the Deputy
Commissioner of Sales Tax Intelligence, sent about 75 so-called officers to attack the
exhibition premises and they did engage in hooliganism to stop the venture, instigated by
certain vested interest people.
There were about 100 exhibitors from different parts of India – Gujarat,
Maharashtra, Orissa, Delhi, Kolkata and Rajasthan, etc.
The so called officers came to CIAL exhibition premises acting in a manner as though they were attacking
enemy forces and started grabbing very valuable jewelry and gems under various
pretexts. The delegates who visited the exhibition, around 1,500 in number, ran off in
panic. This operation started at 2 p.m. on December 7 and continued through 4 p.m. on December 8.
Officers started weighing all the jewelry and gems as if exhibitors had all
committed a crime or violated the law of the state. Out of the 100 exhibitors, they
could find discrepancies in the stockpile of three to four cases, because the weight and measure was not taken correctly initially. For the remaining 97 cases, there were no discrepancies -- not even by 1 gram.
A venture that was designed to promote the industry and commerce in the state of
Kerala was spoiled by the so-called officers who were supposed to render all the
support and encouragement to the exhibitors as representatives of the Department of Industries for the government of Kerala.
The exhibitors and delegates did not violate any provision of law, including the Kerala
Value Added Tax Act, nor did exhibitors conduct any sales. Organizers informed the commissioner of the Commercial Tax Department Thiruvanantapuram beforehand,
as per our letter dated December 2, 2014 that we are going to conduct a B2B exhibition.
Participants brought jewelry along with proper
records, such as Form 16, affidavit, issue voucher, invoice, etc.; the jewelry and
samples were exhibited in the public venue and inaugurated by a government minister and
there was no clandestine dealing in any of the showfloor activity. Everything was in the daylight before the public; we failed to understand the irregularity and illegality in the
exhibition.
Now, in certain cases these officials issued notices under the act 44(9) and section 67
of KVAT act. For instance, in M/S Subas and Co., Odisha even in the shop inspection
report, the records maintained by the dealer, such as issue vouchers, affidavits were
all noted and an SIR (Shop inspection Report) was signed by Mrs. Purnima Sahu,
the proprietor of the company, acknowledging the weight of the gold jewelry 5,300.890
grams. Still, the intelligence officer, code number 8, seized gold ornaments of the
above weightment under section 44 (9) KVAT act as if this gold jewelry ornaments
were unclaimed.
Over and above this officer has also issued a notice under section
67(1) stating that the dealer had not taken 8 (FA) declaration and imposed a penalty as if he
has made a sale and evaded taxes and without mentioning the quantum
of penalty to be levied. There are similar cases in Choksi Vaachhraj Makanji & Co.,
Junagadh Gujarat, Derewala Industries Ltd. of Jaipur, Krizz Jewellery of Chennai.
The
above account is eloquent testimony of the sheer harassment as this entire uncalled for
and illegal operation was orchestrated with vested interests of certain parties, we
suppose.
In the instruction letter that was circulated by the department to the officers, there were
specific directions to harass North Indian exhibitors; copy of this letter is enclosed
herewith.
In a state like Kerala, which is considered as “God’s own country,” these
things are happening by which all the state jewelry players and, needless to say,
jewelers all over India are distressed.
In short, an exhibition, which has attracted the attention of all the media has been aborted
and this specific operation has been carried out on the participants and organizers.
Further, few exhibitors became panicked and frightened and left the venue under
pressure, paying illegal demands raised by the so called officers. This harassment was
aimed to destroy a platform, which has been perfectly orgnanized for the past seven years
with the support of all the state and national trade bodies such as All Kerala Gold
& Silver Merchants Association (AKGSMA), Jewellery Manufacturers Association of
Kerala (JMA), Kerala Jewellery Federation (KJF), Kerala Gold & Silver Dealers
Association (KGSDA), India Bullion & Jewellers Association (IBJA) and Karnataka
Jewellers Federation (KJF).
This exhibition also had many concurrent events, such as
the KGJS Awards night recognizing the jewelry entrepreneurs of Kerala for paying
the highest VAT in the jewelry sector; the jewelry karigars and designers, education seminars
and networking meetings.
Through this press release, which will be followed up by a memorandum to Chief Minister Oommen Chandy, Finance Minister K.M. Mani, Industry
Minister P.K. Kunhalikutty and Babu, we humbly request and pray for justice and immediate impartial inquiry
about the sheer harassment and the uncalled for and illegal demand notices that were issued to
the participants at this event. As otherwise, the state of Kerala will suffer irreparable
loss and injury.
Signed
Sumesh Wadhera, the managing director of AOJ Media Pvt. Ltd. and the vice president of IBJA
P.V. Jose, the convener of KGJS and the director of GJF
|
|
|
|
|