Notification for Rate of duty on coke as per Tariff and refund notification applicability

[Raginee Goyal]

1. Coke products falling under Chapter 2704 were earlier not taxable. The levy came in wef 1.3.2011 by way of 1/2011 CE @1% (concessional) without availing input credit. The Tariff rate for such products was prescribed @5% under the budget 2011 and notified under 2/2011 CE. However, I am not able to locate 2704under 2/2011 CE. Please help with relevant reference.

2. If products are manufactured in North east India, the area based exemption under 20/2008/CE dated 27.03.2008 applies. However, the levy came in later and thereafter there was no specific notification for updating 20/2008 CE in this regard. But 20/2008 has a residuary head under which rate of refund for any chapter other than those listed is marked @ 36%. Please advise will this bar the assessee from claiming refund @36% because the levy came in after the refund notification and no fresh notification clarifying the position is issued.

Thanks and Regards

[rajkumar shukla]

1. the tariff rate is never prescribed by notification therefore it is in correct to say 5% was prescribed through 2/2011

2. 2/2011 is a separate notification which does not cover 2704.

3.you may yourself examine applicability of notification no. 20/2007 as amended. late levy does not matter.

AI Summary

Tariff classification: coke under chapter classification lacks a notified tariff rate, affecting levy and refund claims. Coke under Chapter 2704 became subject to a concessional central excise levy effective March of two thousand eleven by a specific notification imposing the levy without input credit; budget statements referencing a tariff rate do not equate to a notified tariff and notification two of two thousand eleven does not cover Chapter 2704. For northeast manufacturers, an area based exemption notification contains a residuary refund head applying a refund percentage to chapters not listed; the fact that the levy was introduced after the refund notification does not automatically bar refund claims, and the notification as amended must be examined to determine entitlement.