Staring at attachment of assets and sealing of bank accounts for failing to pay income tax dues, cooperative sugar factories in Maharashtra have sought a stay on the recovery of the dues.The Federation of Cooperative Sugar Factories in Maharashtra, a representative body of about 200 units, met the income tax chief commissioner yesterday, urging the recovery of arrears be deferred. It also requested the income tax department to refrain from attaching assets and sealing bank accounts.A total of 68 cooperative mills would have to pay 10 per cent of the Rs 1,000 crore, which includes interest and penalty since 1992-93, to pay 10 per cent to the income tax department.Cooperative factories said their financial woes would worsen, as the state cooperation department had projected a 20-25 per cent fall in sugar production this crushing season, owing to a shortage of cane. So far this year, the state has produced 6.7 million tonnes (mt) of sugar by crushing 60.2 mt of cane. However, recovery fell from 11.35 per cent last year to 11.18 per cent.

Source - http://www.business-standard.com