TaxTMI 
TaxTMI 
TaxTMI 
The Central Government vide Notification No. 6/2008 C.E.(NT) dated 24.1.2008 has notified that provisions of clause (ii) of section 133 of the Finance Act, 2007 will come into effect from 25.1.2008. Clause (ii) of section 133 of Finance Act, 2007amends Third Schedule of the Central Excise Tariff Act.
In terms of Section 2(f)(iii) of the Central Excise Act,
(i) packing or repacking of goods in a unit container, or
(ii) labelling or re-labelling of containers including the declaration or alteration of retail sale price on it, or
(iii) adoption of any other treatment on the goods to render the product marketable to the consumer
in relation to goods notified under the Third Schedule of the Central Excise Tariff Act amounts to manufacture.
In view of the above, any of the aforesaid activity in relation to the following goods, which are mainly computer peripherals, will amount to manufacture and accordingly will be subjected to excise duty.
Further, the Government has also amended Notification No. 2/2006-C.E.(N.T.) dated the 1.3.2006, to include aforesaid goods w.e.f. 25.01.2008 in the list of notified goods and henceforth, these will be subject to excise duty on the basis of MRP declared on the package after allowing abatement as notified under Notification No. 5/2008 C.E.(NT) dated 24.1.2008.
In view of the above, goods as listed below will also be subject to levy of additional duty of customs (CVD) on MRP basis.
S/No | Tariff Heading | Description of goods | Rate of excise duty | Abatement rate |
71A. | 8443 31 00 or 8443 32 | Printer, whether or not combined with the functions of copying or facsimile transmission | 16% | 25% |
71B. | 8443 32 60 or 8443 39 70 | Facsimile machines | 16% | 25% |
71C. | 8443 99 51 | Ink cartridges, with print head assembly | 16% |
|
'74A. | 8471 30 | Portable digital automatic data processing machines , weighing not more than 10 kg, consisting of at least a central processing unit, a keyboard and a display | 12%* | 25% |
74B. | 8471 60 | Input or output units whether or not containing storage units in the same housing including combined input or output units, Graphic printer, Plotter, other printers, Keyboard, Scanners, Mouse etc. | 16% | 22.5% |
'81A. | 8517 62 30 | Modems (modulators-demodulators) | 16% | 25% |
81B. | 8517 69 60 | Set top boxes for gaining access to internet | 16% | 24% |
'92A. | 8528 | Monitors of a kind solely or principally used in an automatic data processing machine | 16% | 25% |
92B. | 8528 71 00 | Set top boxes for television sets | 16% | 24% |