tarrif no 90172010

[ashish yadav]

my company charge the duty 2 % why because tarrif rate is 6%

[KASTURI SETHI]

Dear Sh.ashish yadav Ji,

You are paying duty @2% under notification no.1/11-CE dated 1.3.2011 as amended vide Notification No.16/12-CE dated 17.3.12. You product is specified and mentioned at serial no.119 of Notification No.1/11-CE dated 1.3.11 for this concessional rate of duty. You are not to take input credit or input service credit. That is why rate of duty is 2% instead of 6%.

 

[ashish yadav]

ok sir thanks but we can not take the service tax credit available service tax credit.

AI Summary

Concessional excise duty: reduced tariff applied under notification, available only if input and input service credits are disallowed. Concessional excise duty applies to goods under tariff heading 90172010 because the product is listed at the specified serial entry in Notification No.1/11-CE (as amended), yielding a reduced duty in place of the general tariff. That concessional treatment expressly prohibits claiming input credit or input service credit, so taxpayers pay the reduced duty but cannot take credit for inputs or input services.