Tariff Notification No. 12/2016 dated 01-03-2016

[Chirag Jain]

Respected Sir,

We have Mfg. & Cleared goods "8413.70.10 - Submersible Pump" and "8413.91.20 - Submersible Spares"

As per the tariff notification no. 12/2016 Sl. No. (xvi) adding serial no 235A.

Please suggest from 01-03-2016 rate of duty for "8413.91.20 - Submersible Spares" is 6% or 12.50%

Note: We have cleared "8413.91.20 - Submersible Spares" upto 29-02-2016 at 12.50% rate of duty.

Best Regard,

Chirag Jain

[Mukund Thakkar]

Chapter 84 :

1) Basic Excise Duty on 5 specified parts required for the manufacture of centrifugal

pump is being reduced from 12.5% to 6%, subject to actual user condition. Notification

No. 12/2012-Central Excise, dated 17th March, 2012 as amended by Notification No. 12/2016-Central Excise dated 1st March, 2016 [New S. No. 235A] refers.

2) Accessories of goods falling under tariff item 8426 41 00, heading 8427, 8429 and sub-heading 8430 10 are being included for the purposes of RSP based assessment of excise duty. S. No. 109 of Notification No.49/2008-Central Excise (N.T.), dated 24^th December, 2008 as amended vide notification No. 12/2016-Central Excise (N.T.), dated 1st March, 2016 and Clause 142 (i) of the Finance Bill, 2016 refer. The Third Schedule to the Central Excise Act, 1944 is also being amended so as to include therein these accessories. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this change will come into force with immediate effect.

If you are manufacturer of centrifugal pumps parts. Excise duty is applicable of 6%. as per your query you are manufacurer of submersible spare. please check technicality between centrifugal pump and submersible pump.

[Mukund Thakkar]

235A

8413 91 or 8501 31 19

The following goods for use in manufacture of centrifugal pumps falling under tariff item 8413 70 10, namely:- (i) Shafts (ii) Sleeve (iii) Chamber (iv) Impeller (v) Washer (vi) Electric motor

6%

[Mukund Thakkar]

if you are manufacturer of

(i) Shafts

(ii) Sleeve

(iii) Chamber

(iv) Impeller

(v) Washer

(vi) Electric motor

than your rate of duty will be 6%. not on for submeriseble pump..

[Chirag Jain]

Respected Sir,

Thanks for your prompt reply......

please explain colounm No. 6 (Condition 2) as per Notification No. 12/2016

Central Excise dated 1st March, 2016 [New S. No. 235A].

Regards

Chirag Jain

[Mahir S]

Condition 2 is not applicable to you,, so just ignore it..

[Kirti Kothari]

Hi Sir,

We are manufacturing centrifugal pumps for food industries, last year as per the notification 12/2014 we have collected central excise @ 6% on the sales during last year.

we request you to inform what is the existing tariff for the same and what duty has to be collected on centrifugal pumps this 2016.

best regards

Kirti Jain

AI Summary

Reduced excise duty for specified pump parts applies only when parts are used in centrifugal pump manufacture; submersible spares excluded.
Tariff Notification No. 12/2016 reduces excise duty for specified parts-shafts, sleeve, chamber, impeller, washer, and electric motor-when used in the manufacture of centrifugal pumps, subject to an actual user condition; parts for submersible pumps do not automatically qualify and require technical assessment. The notification also brings certain accessories into RSP-based assessment and amends the Third Schedule, with immediate effect under the provisional collection declaration.