Effect of Rescinding Notification No 18/2012-CE

[NEERAJ KUMAR, RANCHI]

Central Excise duty was increased from 10 % to 18 % vide Notification No. 18/2012-CE, now vide Notification no. 27/2012- CE Notification No 18/2012-CE has been rescinded. What is the efffect? Kindly give your views?

[NEERAJ KUMAR, RANCHI]

I wish to make a little a correction, In my question please read "increased from 10 % to 12 %."

[rajkumar shukla]

MR NEERAJ , ARE YOU SURE RATES OF DUTY CAN BE INCREASED BY A NOTIFICATION NORMALLY?

[rajkumar shukla]

MR NEERAJ , ARE YOU SURE RATES OF DUTY CAN BE INCREASED BY A NOTIFICATION NORMALLY?

[NEERAJ KUMAR, RANCHI]

No, as far as I understand , rate of duty is normally increased by way of finance bill only and for giving effect to it Notifications are issued. 

[rajkumar shukla]

18/2012 was to give effect to reductions in tariff rates. since reduction in tariff rates can not be effective unless finance bill is enacted, to make the proposal effective immediately. such notifications are issued. once finance bill is passed  such notifications become in effective and are subsequently rescinded being redundant.

[sv bhasker]

Mr. Niraj

Please recall that till recent budget propsal, Tariff rate of excise duty was  16% in general. However, reduced rate of duty from 1.3.2008 was made effective by the Notification No. 2/2008 as amended through various Notifications as 14%,10%,8%,10% till 17.3.2012. During the budget propsals 2012, Tariff rate was reduced to 12% across the board. As Notification No. 2/2008 was rescinded on 17.3.2012, when Tariff rate was 16% till the Finance Bill 2012 became an act,fresh effective rate 12% was made applicable through notification no.18/2012 covering almost all chapters. Once the Finance Bill 2012 reducing Tariff rate 12% became law, the notification no.18/2012 became redundant and therefore rescinded. Hope convincing views are offered.

AI Summary

Temporary excise rate notification rescinded after enactment of the finance law, the notification became redundant. Notification No.18/2012-CE applied a reduced excise tariff immediately to implement the budget proposal pending enactment; once the budget measure was enacted into law the notification became redundant and was rescinded, reflecting the principle that temporary notifications give immediate effect until the Finance Bill's statutory rate takes effect.