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EXPLANATORY NOTES (EXCISE)
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....n Betel nut product known as „Supari‟ is being fully exempted from excise duty. However, Scented Supari will continue to attract duty at applicable rates. (S.No. 27Aof Notification 3/2006-CE as amended by the notification 9/2010-CE dated 27.02.2010 refers) 21.2 Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Amendment Rules, 2010 have been issued to amend Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008 to effect certain technical changes in the said rules (Notification No. 8/2010-Central Excise (N.T.), dated 27.02.2010 refers). Chapter 22 & 23 No change. Chapter 24 24.1 The existing slab of filter cigarettes of length not exceeding 70 mm is being broken up into two slabs: filter cigarettes of length not exceeding 60 mm; and filter cigarettes of length exceeding 60 mm but not exceeding 70 mm (Clause 74 of the Finance Bill refers). Suitable rates are being prescribed for these slabs. The basic excise duty (BED) on other cigarettes is also being revised. The revised rates of excise duty including basic excise, additional excise and NCCD on cigarettes are as under: S. No. Description Present Rate Propo....
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....scented tobacco, snuff and its preparations, tobacco extracts and essences etc and is being increased from 50% to 60%. (Clause 74 of the Finance Bill 2010 refers for changes in 24.1 to 24.9 above) 24.10 The duty on other Pan Masala is being increased from 8% to 10%. (Entry no. 29A of Notification no. 3/2006-Central Excise as amended by Notification no. 9/2010- Central Excise dated 27.02.2010 refers). 24.11 Basic excise duty on branded „hookah‟ or „gudaku‟ tobacco is being increased from 8% to 10%. (Entry no. 33 of Notification no. 3/2006- Central Excise as amended by Notification no. 9/2010- Central Excise dated 27.02.2010 refers). 24.12 The duty on other smoking tobacco (unbranded) is being increased from 8% to 10%. (Entry no. 35 of Notification no. 3/2006- Central Excise as amended by Notification no. 9/2010- Central Excise dated 27.02.2010 refers). 24.13 The duty on other manufactured tobacco and manufactured tobacco substitutes (unbranded) is being increased from 8% to 10%. (Entry no. 40 of Notification no. 3/2006- Central Excise as amended by Notification no. 9/2010- Central Excise dated 27.02.2010 refers) 24.14 The AED on cigars, cheroots and cigarillos ....
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....posed Rate 1. Cleared in packaged form,- (i) of retail sale price not exceeding Rs. 190 per 50 kg bag or of per tonne equivalent retail sale price not exceeding Rs. 3800; (ii) of retail sale price exceeding Rs. 190 per 50 kg bag of per tonne equivalent retail sale price exceeding Rs. 3800 Rs. 230 per tonne 8% of retail sale price Rs.290 per tonne 10% of retail sale price 2. Cleared other than in packaged form 8% or Rs. 230 per tonne, whichever is higher 10% or Rs.290 per tonne whichever is higher Cement Clinker Rs. 300 per tonne Rs. 375 per tonne (S.No. (i) to (v) of notification No. 10/2010- Central Excise dated 27.02.2010 refers). Chapter 26: No change. Chapter 27: 27.1 A new cess to be called „Clean Energy Cess‟ is being imposed on Coal, Lignite and peat (CETH 2701, 2702, & 2703) produced in India. This will come into force from the date to be notified after the enactment of the Finance Bill, 2010. (Clause 82 & 83 of the Finance Bill, 2010 read with the Tenth schedule refers) 27.2 Excise exemption on Avgas is being withdrawn and 4% excise duty is being imposed on it. (S.No.16 of the Notification No. 4/2006-CE dated the 1st March 2006 as amen....
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....010- Central Excise dated 27.02.2010 refers). Chapter 41-47 No change. Chapter 48 48.1 Excise duty at 10% is being imposed on Baby and clinical diapers, which were fully exempt so far. (Relevant bill entries read with S.No. 96B of the notification No. 4/2006-Central Excise as inserted vide Notification No. 10/2010- Central Excise dated 27.02.2010 refers). 48.2 Excise duty exemption on Sanitary napkins is also being withdrawn and these goods will now attract standard rate of duty at 10% (Relevant bill entries read with S.No. 96C of the notification No. 4/2006-Central Excise as inserted vide Notification No. 10/2010- Central Excise dated 27.02.2010 refers). 48.3 Excise duty on Cartons, boxes and cases, of corrugated paper or paperboard manufactured by Standalone manufacturers is being reduced from 8% to 4% (S.No. 96E of the notification No. 4/2006-Central Excise as inserted vide Notification No. vide notification No. 10/2010-Central Excise dated 27.02.2010 refers). Chapter 50 to 62 No change. Chapter 63 63.1 Excise duty exemption on Mosquito nets impregnated with insecticide is being withdrawn and duty @ 4% is being imposed (S. No.3 of notification No. 5/2006- Central Excis....
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....xcise, dated 27.02.2010 refers) Chapter 70 70.1. S. No. 20 of notification No. 5/2006- Central Excise, dated 01.03.2006 prescribing concessional excise duty rate of 4% on rough ophthalmic blanks, for manufacture of optical lenses is being omitted as such blanks already attract a „nil‟ excise duty vide S. No.10 of notification No. 10/2006-Central Excise, dated 01.03.2006 (S. No.20 of notification No. 5/2006- Central Excise, dated 01.03.2006 as omitted vide S. No. (xi) of notification No. 11/2010-Central Excise, dated 27.02.2010 refers) Chapter 71 71.1. Gold bars, other than tola bars, manufactured in a factory starting from the stage of gold ore or concentrate and bearing manufacturer‟s engraved serial number & weight expressed in metric units, will be levied excise duty at the rate of Rs.280 per 10gm, with full Cenvat credit facility. Primary gold including in bar form manufactured or refined with the aid of power from any form of gold shall continue to be exempt. (S. No.21A of notification No. 5/2006- Central Excise, dated 01.03.2006 as inserted vide S. No. (xii) of notification No. 11/2010-Central Excise, dated 27.02.2010 refers). 71.2. Excise duty rates applic....
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....erboards, floppy disc drives, CD-Rom drive etc when these items are meant for external use with a computer or laptop as a plug-in device. However, these items meant primarily for use inside the CPU housing/laptop body would continue to be exempt from excise duty. (S. No. 17 of notification No. 6/2006-CE substituted vide notification No. 12/2010-CE dated 27.02.2010 refers). 85.2 Excise duty exemption on parts, components and accessories of mobile handsets including cellular phones is being extended to parts of two accessories namely, battery chargers and hands-free headphones of these devices. (S. No. 31 of notification No. 6/2006-CE amended vide notification No. 12/2010-CE dated 27.02.2010 refers). 85.3 Packaged software or canned software, is at present exempted from so much of the excise duty, as is equivalent to the duty payable on the portion of the value of Packaged software determined under section 4 of the Central Excise Act, or the rules made thereunder, which represents the consideration paid or payable for transfer of the right to use such goods provided that the transfer of the right to use shall be for commercial exploitation. The condition of commercial exploitation ....
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....o. 12/2010-Central Excise, dated 27.02.2010 refers). 87.3. Ad-valorem component of excise duty on large cars, SUVs, etc. and their chassis is being increased from 20% to 22%. There is no change in the specific component of Rs. 15000 and the same will continue to be levied as applicable. (S. No.41 & 41A of notification No. 6/2006- Central Excise, dated 01.03.2006 as substituted vide S. No. (xix) & (xx) of notification No. 12/2010-Central Excise, dated 27.02.2010 refers). 87.4. Excise duty on self-loading or self-unloading trailers and semi-trailers for agricultural purposes (Tariff Item 8716 20 00) is being fully exempted (S. No.53A of notification No. 6/2006- Central Excise, dated 01.03.2006 as inserted vide S. No. (xxxiii) of notification No. 12/2010-Central Excise, dated 27.02.2010 refers). 87.5. "Parts, components and assemblies of automobiles", falling under any chapter, are notified for assessment of duty with reference to their retail sale price under Section 4A of the Central Excise Act, 1944, vide S. No.108 of notification No.49/2008-CE (N.T.), dated 24.12.08. The current entry against S. No. 108 is now being substituted with "Parts, components and assemblies of vehicles....
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....ification No. 6/2006-CE inserted vide notification No. 12/2010-CE dated 27.02.2010 refers). Legislative, Procedural & Miscellaneous changes M.1 Central Excise Act, 1944: (i) An Explanation is being inserted in sub-section (2B) to Section 11A of the Central Excise Act, 1944 to clarify that penalty shall not be imposed in case duty short paid and interest thereon is paid before service of show cause notice. (ii) Section 32 of the Central Excise Act, 1944, dealing with Settlement Commission is being amended so as to restore certain provisions as they obtained prior to the enactment of the Finance Bill, 2007. Accordingly, the prohibition on filing of applications for the settlement of cases where an assessee admits short-levy for goods in respect of which he has not maintained proper records (i.e. cases of mis-declaration, clandestine removal etc.) is being removed. Similarly, the restriction that an assessee may seek only one-time settlement is also being relaxed. The Commission is being empowered to extend the time limit of nine months for disposal of applications by another three months, for reasons to be recorded in writing. The above changes will come into effect on enactment....