In the budget 2012-13 the assessment practice of imported goods in respect of E.Cess and S.H.E. Cess was clarified and it was expained that there would be only one cess on imported goods that is no more cess on CVD. Notification No.13/2012-CUS AND 14/2012-Cus exempts both CVD Cess and Customs Cess that are leviable under Section 93 and 94 of the Finance Act 2004 and Section 138 and 139 of te Finance Act 2007 which means there would be no levy of any E.Cess and SHE Cess at all on imported goods. It seems to be an unintended mistake by CBEC. May be another amendment can be expected soon.
No cess on imported goods
rajavel calaimany
2012-13 Budget Removes CVD and Customs Cess on Imports; Potential Amendment by CBEC Expected In the 2012-13 budget, it was clarified that only one cess would apply to imported goods, eliminating the CVD Cess and Customs Cess. Notifications No. 13/2012-CUS and 14/2012-CUS exempt these cesses, which were previously imposed under the Finance Acts of 2004 and 2007. Consequently, there will be no Education Cess (E.Cess) and Secondary and Higher Education Cess (SHE Cess) on imported goods. This exemption appears to be an unintended oversight by the Central Board of Excise and Customs (CBEC), suggesting a potential amendment might be forthcoming. (AI Summary)