Miscellaneous Amendments

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Question - What are proposed miscellaneous amendments in Central Excise Act ,1944 in Finance Bill 2015 ?

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MISCELLANEOUS

1) The Second Schedule to the Finance (No.2) Act, 1998 which deals with levy of Additional Duty of Excise and Additional Duty of Customs (commonly known as Road Cess) on Motor Spirit commonly known as Petrol is being amended so as to increase the Scheduled rate from ₹ 2 per litre to ₹ 8 per litre. The effective rate of Additional Duty of Excise and Additional Duty of Customs (commonly known as Road Cess) on Motor Spirit commonly known as Petrol is being increased from ₹ 2 per litre to ₹ 6 per litre.

2) The Second Schedule to the Finance Act, 1999 which deals with levy of Additional Duty of Excise and Additional Duty of Customs (commonly known as Road Cess) on High Speed Diesel oil is being amended so as to increase the Scheduled rate from Rs2 per litre to Rs8 per litre. The effective rate of Additional Duty of Excise and Additional Duty of Customs (commonly known as Road Cess) on High Speed Diesel oil is being increased from Rs2 per litre to Rs6 per litre.

3) The Seventh Schedule to the Finance Act, 2005 is being amended so as to omit the entry relating to levy of Additional Duty of Excise of 5% ad valorem on waters, including mineral waters and aerated waters containing added sugar.

4) The Tenth Schedule to the Finance Act, 2010 dealing with Clean Energy Cess is being amended so as to increase the Scheduled rate of Clean Energy Cess from Rs100 per tonne to Rs 300 per tonne. The effective rate of Clean Energy Cess is being increased from Rs100 per tonne to Rs 200 per tonne.

The changes at Para 1), 2) and 4) will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931.

AI Summary

Excise levy changes: higher road cess on petrol and diesel and higher clean energy cess; excise on sugary waters omitted. Amendments increase Scheduled and effective rates of Additional Duty of Excise and Additional Duty of Customs (road cess) on petrol and high speed diesel, and raise the Scheduled and effective rates of Clean Energy Cess; the petrol, diesel and clean energy cess increases are effective immediately under the Provisional Collection of Taxes Act, 1931. Separately, the amendment omits the Additional Duty of Excise entry previously applying to waters, including mineral and aerated waters containing added sugar.