Budget 2015-16- Changes in Central Excise-

Changes in Budget 2015-16 in Central Excise

• Central govt. may specify more than one factor relevant to the production of goods in those cases where excise duty is charged on capacity of production.
• In Section 11A - Specific provision where extended period of time applies, but the transactions are recorded in the specified record has been removed. Now it is immaterial whether transaction is recorded in books or not.
• In Section 11A- Insert definition of relevant date in respect of cases where a return is not filed on the due date and where only interest is required to be recovered- In the case relevant date will be, the date of payment of duty to which such interest relates.
• Provisions of section 11A shall not apply to cases where the non-payment or short payment of duty is reflected in the periodic returns filed. Rules may be specified in this regard.
• In Section 11AC - Rationalization of Penalties
• Now in settlement commission provisions, when any proceeding is referred back, whether in appeal or revision or otherwise, by any court, Appellate Tribunal Authority or any other authority to the adjudicating authority for a fresh adjudication or decision, then such case shall not be entitled for settlement.
• Penalty under Sec. 37 has been increased to ₹ 5000.
• Education Cess and Secondary and Higher Education Cess leviable on all excisable goods are being fully exempted.
• The standard ad valorem rate of duty of excise (i.e. CENVAT) is being increased from 12% to 12.5%.
• Education Cess and Secondary and Higher Education Cess leviable on excisable goods are being exempted in general, there will be no corresponding levy as CVD on imported goods.
• The rate of excise duty applicable to goods covered by the Medicinal and Toilet Preparations Act, 1955 is being increased from 12% to 12.5% ad valorem.
• Excise duty of 2% without CENVAT credit or 6% with CENVAT credit is being levied on condensed milk put up in unit containers and peanut butter.
• Condensed milk notified under section 4A of the Central Excise Act for the purpose of valuation with reference to the Retail Sale Price, with an abatement of 30%.
• Condensed milk, other than put up in unit containers will continue to be exempt from excise duty.
• All goods falling under Chapter sub-heading 2101 20, including iced tea, are being notified under section 4A of the Central Excise Act for the purpose of assessment of Central Excise duty with reference to the Retail Sale Price with an abatement of 30%.
• The Third Schedule to the Central Excise Act, 1944 is also being amended so as to include therein all goods falling under Chapter sub-heading 2101 20, including iced tea.
• All goods falling under heading 2202 [other than mineral waters and aerated waters which attract abatement of 45% and 40% respectively] are being notified under section 4A of the Central Excise Act for the purpose of assessment of Central Excise duty with reference to the Retail Sale Price with an abatement of 35%.
• The Third Schedule to the Central Excise Act, 1944 is also being amended so as to include therein all goods falling under Chapter heading 2202
• Excise duty on “waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured” falling under Chapter sub-heading 2202 10 is being increased from 12% to 18%. Simultaneously, the entry in the Seventh Schedule to the Finance Act, 2005 relating to levy of additional duty of excise @ 5% on these goods is being omitted
• Duty of excise on cigarettes is being increased by 25% for cigarettes of length not exceeding 65 mm and by 15% for cigarettes of other lengths. Increase in duty rates is also proposed on cigars, cheroots and cigarillos.
• Excise duty on cut tobacco is being increased from ₹ 60 per kg to ₹ 70 per kg.
• Maximum speed of packing machine for packages of notified goods of various retail sale prices is being specified as a factor relevant to production for determining excise duty payable under the Compounded Levy Scheme presently applicable to pan masala, gutkha and chewing tobacco. Accordingly, deemed production and duty payable per machine per month are being notified with reference to the speed range in which the maximum speed of a packing machine for packages of various retail sale prices falls
• Tariff rate of excise duty on goods falling under Chapter sub-heading 2523 29 is being increased from ₹ 900 per tonne to ₹ 1000 per tonne.
• Tariff rate of excise duty on high speed diesel (HSD) falling under tariff item 2710 19 30 is being increased from 14% + ₹ 5 per litre to 14% + ₹ 15 per litre. However, there is no change in the aggregate of various duties of excise on high speed diesel.
• The Schedule Rate of Clean Energy Cess, levied on coal, lignite and peat, is being increased from ₹ 100 per tonne to ₹ 300 per tonne
• Full exemption from excise duty is being provided to all goods which are consumed within the factory of their production in the manufacture of Agarbatti. Agarbattis attract NIL excise duty.
• Basic Excise Duty on leather footwear of Retail Sale Price exceeding ₹ 1000 per pair falling under Central Excise Tariff heading 6403 and 6405 is being reduced from 12% to 6%.The abatement as a percentage of Retail Sale Price is being reduced from 35% to 25% for all footwear.
• Excise duty is being reduced from 12% to Nil on Pig iron SG grade (7201 1000) and ferrosilicon-magnesium (7202 2900) for manufacture of cast components of wind operated electricity generators.
• Full exemption from excise duty is being extended to round copper wire and tine alloys for use in the manufacture of PV ribbon (tinned copper interconnect) for manufacture of solar PV cells and modules, subject to certification by Department of Electronics and Information Technology (DeitY)
• Excise duty exemption is being withdrawn on solar water heater and system.
• Excise duty exemption on parts for use in manufacture of solar water heater and system is being continued, subject to actual user condition
• Excise duty of 2% without CENVAT credit / 12.5% with CENVAT credit is being provided to tablet computer.
• Further, excise duty is being exempted on parts, components and accessories for use in manufacture of tablet computer. Excise duty is also being exempted on sub-parts for use in manufacture of parts, components and accessories of tablet computers
• Excise duty on mobile handsets including cellular phone is being changed from 1% without CENVAT credit or 6% with CENVAT credit to 1% without CENVAT credit or 12.5% with CENVAT credit.
• Excise duty is being reduced from 12% to 6% on wafers for use in the manufacture of IC modules for smart cards, subject to actual user condition
• Excise duty is being reduced from 12% to 6% on all inputs for use in manufacture of LED driver and MCPCB for LED lights and Fixtures and LED Lamps, subject to actual user condition
• RSP based assessment is being prescribed expressly for LED lights or fixtures including LED lamps (Chapter 85 or 94) with an abatement of 35%
• Excise duty on chassis for ambulance is being reduced from 24% to 12.5%, subject to actual user condition
• Excise duty is being exempted on specified raw materials for use in manufacture of pacemakers, subject to actual user condition
• Goods manufactured domestically and supplied against International Competitive Bidding are eligible for full excise duty exemption provided that such goods when imported attract Nil Basic Customs Duty and Nil CVD.