26/2016-CENT dt. 05-05-2016

[Guest]

Dear Sir,

Please explain in short the said notification no 26/2016-CENT dt. 05-05-2016, Seeks to further amend notification No. 42/2001-CE(NT) dated 26.6.2001, No. 43/2001-CE(NT) dated 26.6.2001, No. 19/2004-CE(NT) dated 6.9.2004 and No. 21/2004-CE(NT) dated 6.9.2004.

[Ganeshan Kalyani]

Sir If you mention your query specifically then we may attempt to reply swiftly. Thanks.

[MADAN RAHEJA]

Dear Sh. Shinde

Explanation III of Notifications No. 42/2001-CE(NT) dated 26.6.2001, No. 43/2001-CE(NT) dated 26.6.2001, No. 19/2004-CE(NT) dated 6.9.2004 and No. 21/2004-CE(NT) dated 6.9.2004 defines term ‘Duty” for purpose of these Notifications respectively. Whenever any new duty or cess is levied and it is intended not to charge such duty/cess on export of goods under Bond or grant rebate of such duty/cess, same is inserted in Explanation III. Last such insertion was in 2007 for Secondary and Higher Education Cess.

The effect of Notification No. 26/2016-CENT dt. 05-05-2016, is that now Infrastructure Cess leviable under sub- clause (1) of clause 159 of the Finance Bill, 2016, has been inserted in the definition of duty and accordingly on export of goods under Bond, infrastructure cess is not payable and on export under rebate, this cess is rebatable

[KASTURI SETHI]

SH.MADAN RAHEJA JI,

THANKS FOR PERFECT REPLY. OTHERWISE ALSO CESS IS A KIND OF DUTY.

AI Summary

Infrastructure cess inclusion in duty definition makes exports under bond exempt and eligible for rebate. Notification No. 26/2016-CENT inserts the Infrastructure Cess into the definition of duty in Explanation III of specified notifications, so Infrastructure Cess is not payable on exports under bond and is eligible for rebate when exports are made under rebate provisions.