The excise and taxation department has so far failed to clear thousands of VAT refund cases prompting the industry in Ludhiana to call a meeting on October 1. Industrialists have also called the excise and taxation commissioner A Venuprasad for the meeting to find reasons for the delay and to urge the commissioner to simplify the methods for claiming VAT refund.

Sources, however, said a fund crunch was behind the delay while in a few other cases, incomplete documents were to blame. In the bicycle parts industry alone, more than 350 VAT refund cases are pending since 2011 while in the auto parts industry, around 500 such cases have been pending for more than a year.

Another reason being cited by industrialists for the delay is the four-stage verification of the claim while the excise department is mandatorily seeking C form and H forms before releasing the VAT refund. Industrial representatives had held a meeting with Kamaljeet Brar, deputy excise and taxation commissioner (DETC), a few days back over the issue.

Gurmeet Singh Kular, president of the United Cycles Parts and Manufacturers Association (UCPMA), said: On one hand, the department is increasing taxes, and later they are delaying VAT refund cases. Most of the association members are yet to get the VAT refund for 2011-12.

P D Sharma, president of Apex Chamber of Commerce and Industry, added: Hundreds of cases are lying pending for more than 2 years. We have called a special meeting to discuss the issue on October 1. If taxes are being sought, even the refund also need to be released soon. Industry cannot function like this.