TaxTMI 
TaxTMI 
Finance Bill, 2016 - Changes in Customs and Central Excise law and rates of duty
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....ral Excise to No.18/2016-Central Excise 1st March, 2016 Non-Tariff No. 5/2016-Central Excise (N.T.) to No. 21/2016-Central Excise (N.T.) 1st March, 2016 MISCELLANEOUS Clean Energy Cess No.1 and No. 2/2016-Clean Energy Cess 1st March, 2016 Infrastructure Cess No.1/2016-Infrastructure Cess 1st March, 2016 Unless otherwise stated, all changes in rates of duty take effect from the midnight of 29th February / 1st March, 2016. A declaration has been made under the Provisional Collection of Taxes Act, 1931 in respect of clauses 138 (i), 142 (i), 143 (i), 159, 231 and 232 of the Finance Bill, 2016 so that changes proposed therein take effect from the midnight of 29th February / 1st March, 2016. The remaining legislative changes would come into effect only upon the enactment of the Finance Bill, 2016. These dates may be carefully noted. 2. Important changes in respect of Customs and Central Excise duty and legislative changes are contained in the four Annexes appended to this letter: 1) Annex I contains Chapter wise changes relating to Customs; 2) Annex II contains Chapter wise changes relating to....
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....me, which was introduced in the Budget 2011-12, except that: a. The present levy is an optional levy, that is domestic manufacturers will have the option to pay excise duty of „ 2% (without CENVAT credit) or 12.5% (with CENVAT credit)‟, b. The levy is restricted to such articles which have RSP of Rs. 1000 and above, and c. The tariff value is being revised from 30% of RSP to 60% of the RSP. 3.1.2 In this regard, I would like to reiterate the instructions issued vide Budget letter F.No.334/3/2011-TRU dated 28.02.2011, Instruction D.O. F.No.334/3/2011-TRU, dated 04.03.2011 and Instruction D.O. F.No. B-1/3/2011-TRU, dated 25.03.2011. The said instructions shall apply mutatis mutandis to the new levy. Salient features of these instructions [suitably modified for the proposed optional levy, as underlined] are as under: (i) The levy shall not apply to retail tailoring establishments that stitch garments in a customized manner to the size and style specifications of individual customers, whether out of fabric purchased by the customer from the same establishment or fabric supplied by the customer. (ii) The brand name owner, who gets the goods manufactu....
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....for the month of March 2016 is that the value of clearances for home consumption from one or more manufacturer from one or more unit should not have exceeded Rs. 4 crore in the financial year 2014-15. The computation for this purpose shall be done in accordance with the provisions of Para 3A of notification No. 8/2003-C.E. For this purpose, a certificate from a Chartered Accountant based on the books of accounts for 2014-15 shall suffice. (ix) Excisable goods which were produced on or before 29.02.2016 but lying in stock as on 29.02.2016 shall attract excise duty upon clearance. Manufacturers shall keep a stock declaration of finished goods, goods-in-process and inputs as on 29.02.2016 in their records duly certified by a Chartered Accountant so as to enable the manufacturers to claim CENVAT credit on inputs or inputs contained in goods lying in stock as already provided for in Rule 3(2) of the CENVAT Credit, Rules, 2004, if he so desires. No stock declaration, will, however, be required to be made to the jurisdictional central excise authorities. (x) Full exemption from Central Excise duty will be available to duty-paid goods returned to the manufacturer during a financial y....
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....learances for home consumption from one or more manufacturer from one or more factory or premises of production or manufacture during the financial year 2014-15 should not be more than Rs. 12 crore. Computation for this purpose shall be done in accordance with the provisions of Para 3A of notification No. 8/2003- CE. For this purpose, a certificate from a Chartered Accountant, based on the books of accounts for 2014-15, shall suffice. 3.2.3 Similarly, for determining the eligibility for availing of the SSI exemption from 2016-17 onwards, a certificate from a Chartered Accountant, based on the books of accounts for 2015-16, shall suffice. 3.2.4 Excisable goods which were produced on or before 29.02.2016 but lying in stock as on 29.02.2016 shall attract excise duty upon clearance. Jewellery manufacturer shall keep a stock declaration of finished goods, goods-in-process and inputs as on 29.02.2016 in their records duly certified by a Chartered Accountant so as to enable the manufacturers to claim CENVAT credit on inputs or inputs contained in goods lying in stock as already provided for in Rule 3(2) of the CENVAT Credit, Rules, 2004, if he so desires. No stock declaration, wi....
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....es without any difficulty. The thrust of these new levies shall be voluntary compliance. Therefore, visits to such units should not be made in the normal course. These instructions may be disseminated to the field formations for strict compliance. 5. Difficulties faced, if any, in implementation of these new levies which are not covered by the instructions issued in this regard may be communicated to the Board without delay. 6. In order to achieve a sharper focus, I have alluded only to the key highlights of the budgetary changes in this communication. The details are contained in the Finance Bill and notifications which alone have legal force. My team and I have made every possible effort to avoid the occurrence of errors or mistakes in the Budget documents. However, given the scale of changes, inadvertent errors cannot be ruled out. I shall be grateful if the provisions of the Finance Bill and notifications are studied carefully and feedback on issues that may need clarification is provided urgently. 7. It may kindly be ensured that the changes are implemented in a smooth manner without causing any inconvenience to the taxpayers and other stakeholders. Al....
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....nd Iron ore fines (below 58% Fe content) [2601 11 41 and 2601 11 42] is being reduced from 10% to Nil. S.No.20A of notification No. 27/2011-Customs, dated 01.03.2011 as amended by notification No. 15/2016-Customs, dated 01.03.2016 refers. 2) Export duty on chromium ores and concentrates, all sorts [2610] is being reduced from 30% to Nil. Notification No. 27/2011-Customs, dated 01.03.2011 as amended by notification No. 15/2016-Customs, dated 01.03.2016 [new S. No.24BA refers] 3) Export duty on bauxite (natural), not calcined [2606 00 10] and bauxite (natural) calcined [2606 00 20] is being reduced from 20% to 15%. S.No.24A, 24B of notification No.27/2011-Customs, dated 01.03.2011 as amended by notification No.15/2016-Customs, dated 01.03.2016 refers. Chapter 27: 1) Basic Customs Duty on all goods falling under 2701, 2702 and 2703 is being rationalized at 2.5% BCD. Notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12/2016-Customs, dated 1st March, 2016 [New S.Nos.121B, 121C] refer. 2) Basic Customs Duty on all goods falling under 2704, 2705 and 2706 is being rationalized at 5% BCD. Notification No.12/2012-Customs, dated 17th March, 2....
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....ustoms, dated the 1st March, 2016 [S.No.172A] refers. Consequently, S.No.173 is being amended and S.Nos.173A, 173B, 173C, 173D, 173E and 176 are being omitted. 2) Special Additional Duty (SAD) on orthoxylene [2902 41 00] for use in manufacture of phthalic anhydride is being reduced from 4% to 2%, subject to actual user condition. Notification No.21/2012-Customs, dated 17th March, 2012 as amended by notification No.16/2016-Customs, dated the 1st March, 2016 [new S.Nos.45AA] refers. Chapter 30 to 38: No change Chapter 39: 1) Basic Customs duty on Polypropylene granules / resins [3902] for the manufacture of capacitor grade plastic films is being reduced from 7.5% to Nil, subject to actual user condition. Notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12/2016-Customs, dated the 1st March, 2016 [new S.No. 238A] refers. 2) Basic Customs duty on Super Absorbent Polymer (SAP) [3906 90 90] for manufacture of goods falling under heading 9619 [sanitary towels, tampons, napkins, diapers etc.] is being reduced from 7.5% to 5%, subject to actual user condition. S.No 242 of Notification No.12/2012-Customs, dated 17th March, 2012 as amended by no....
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....alue of exports in the financial year 2014-15. Notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12/2016-Customs, dated the 1st March, 2016 [new S.No.284A] refers. Chapter 51 and 53: No change Chapter 54 and 55: 1) Basic Customs Duty on specified fibres, filaments/yarns is being reduced from 5% to 2.5%. Notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12/2016-Customs, dated the 1st March, 2016 [new S.No. 290A] of refers. Chapter 56 to 69: No change Chapter 70: 1) Exemption from Basic Customs Duty is being withdrawn on solar tempered glass/solar tempered (anti-reflective coated) glass for use in manufacture solar cells/modules/panels. Such solar tempered glass/solar tempered (anti-reflective coated) glass for use in manufacture solar cells/modules/panels will now attract 5% BCD, subject to actual user condition. S. No. 39 of Notification No.24/2005-Customs, dated 1st March, 2005 as amended by notification No. 19/2016-Customs, dated the 1st March, 2016 and Notification No.12/2012-Customs, dated 17th March, 2012 as amended vide notification No. 12/2016-Customs, dated 1st March, 2016 [new S.No. 3....
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....ng increased from 7.5% to 10% on 206 specified tariff lines falling in Chapters 84 and 85. Clause 138 (i) of the Finance Bill 2016 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, these changes will come into force with immediate effect. The effective rates for 96 specified tariff lines will be 10%. 2) However, the effective rate for the remaining 110 tariff lines will continue to be 7.5%. S. No 422A to 422H of notification 12/2012- Customs as inserted by notification No. 12/2016 refers 3) CVD exemption on specified machinery required for construction of roads is being withdrawn. S.No.368 of notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12/2016-Customs, dated the 1st March 2016 refers. 2) Basic Customs duty on industrial solar water heater [8419 19 20] is being increased from 7.5% to 10%. Clause 138 (i) of the Finance Bill 2016 refers. Further, Basic Customs duty of 7.5% is being retained on other water heaters [with other than solar heating source] falling under 8419 19 20. 4) Basic customs duty is being exempted on specified raw materials for use in manufacture of Micro fuses, Sub-....
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....y notification No. 16/2016- Customs dated 1st March, 2016 [new S.No. 82A] refers. 9) Basic Customs Duty and Special Additional Duty (SAD) are being exempted on machinery, electrical equipments, other instruments and their parts [except populated PCBs] falling under chapter 84, 85, 90 for assembly, testing, marking and packaging of semiconductor chips (ATMP), subject to actual user condition. Notification No. 12/2012-Customs dated 17th March, 2012 as amended by notification No. 12/2016- Customs dated 1st March, 2016 [new S.No.372B] refers. Notification No. 21/2012-Customs dated 17th March, 2012 as amended by notification No. 16/2016- Customs dated 1st March, 2016 [new S.No. 82B] refers. 10) Basic Customs Duty and CVD exemptions are being withdrawn on charger/Adapter, Battery and Wired Headsets/Speakers for use in manufacture of mobile handsets including cellular phone. S.No. 431 of Notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No. 12/2016-Customs dated 1st March, 2016 refers and S.No. 39 of Notification No.24/2005-Customs, dated 1st March, 2005 as amended by notification No. 19/2016-Customs dated 1st March, 2016 refers. 11)....
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.... Multiprotocol Label Switching-Transport Profile (MPLS-TP) products, Multiple Input / Multiple Output (MIMO) and Long Term Evolution (LTE) Products] is being withdrawn. S.No 372 of Notification No.12/2012-Customs, dated 17th March, 2012 as amended vide notification No.12/2016-Customs; dated 1st March, 2016 refers. 15) Basic Custom Duty is being withdrawn on Magnetic - Heads (all types), Ceramic / Magnetic cartridges and stylus, Antennas, EHT cables, Level meters/level indicators/ tuning indicators/ peak level meters/ battery meter/VC meters / Tape counters, Tone arms and Electron guns. Items (4), (5), (7), (9), (10), (11) and (17) of List 21 of Notification No.12/2012-Customs, dated 17th March, 2012 as omitted vide notification No. 12/2016-Customs, dated 1st March, 2016 refers 16) Basic Customs Duty exemption on LCD (Liquid Crystal Display), LED (Light Emitting Diode) or OLED (Organic LED) panels is being restricted to imports for manufacture of TVs, subjected to actual user condition. S.No. 432 of Notification No.12/2012-Customs, dated 17th March, 2012 as amended vide notification No. 12/2016-Customs, dated 1st March, 2016 refers. 17) Basic Customs Duty is being exempted ....
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....d of exemption granted to specified goods for the use in the manufacture of electrically operated vehicles and hybrid vehicles is being extended without time limit. Clauses (g) and (h) of proviso to notification No. 12/2012-Customs, as omitted by notification No. 12/2016-Customs, dated 1st March, 2016 refers. 3) The description "Engine for HV(Atkinson cycle)" appearing in S. No. 440 of notification No. 12/2012-Customs is being changed to "Engine for xEV(hybrid electric vehicle)". Notification No. 12/2012-Customs as amended by notification No. 12/2016-Customs, dated 1st March, 2016 refers. 4) The entry of 6% appearing in column 5 of Sl. No. 439 and 440 of notification No. 12/2012-Customs is being omitted. Notification No. 12/2012-Customs as amended by notification No. 12/2016-Customs, dated 1st March, 2016 refers. 6% Concessional CVD on imports will, however, continue by virtue of 6% concessional excise duty under S. No. 296 and 297 of the Notification No. 12/2012-Central Excise dated 17.03.2012. Chapter 88: 1) Basic Customs duty on tools and tool kits for maintenance, repair, and overhauling of aircraft are being exempted. Further, the procedure for availment of the cus....
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....ms, dated 17.03.2012. Such imports will now be subject to actual used condition. S.No.459A of notification No.12/2012-Customs, dated 17.03.2012 as amended notification No. 12/2016-Customs, dated 1st March, 2016 refers. 2) CVD is exempted under S.No.459A of notification No.12/2012-Customs, dated 17.03.2012. This CVD exemption is being withdrawn. It will now be available by way of an excise duty exemption, under new S. No. 305A, as inserted in notification No.12/2012-Central Excise, dated 17.03.2012, vide amending notification No. 12/2016-Central Excise, dated 01.03.2016. Chapter 90 1) Tariff rate of BCD is being increased from 7.5% to 10% on 5 specified tariff lines falling in Chapter 90. Clause 138 (i) of the Finance Bill refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, these changes will come into force with immediate effect. However, the effective rates for 5 tariff lines are being maintained at 7.5%. Notification No.12/2012- Customs as amended by notification No. 12/2016 [new S. No. 422I] refers. Chapter 91 to 94: No change Chapter 95: 1) Basic Customs duty on natural latex rubber made balloons [9503 00 90,....
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....o, the list of specified goods is being unified into a single List 34 and the conditions are also being unified into a single Condition No. 40A. Further, the said exemption is being extended on imports of goods required for exploration & production of hydrocarbon activities undertaken under Petroleum Exploration Licenses (PEL) or Mining Leases (ML) issued or renewed before 1st April 1999 also. Notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12/2016-Customs dated 1st March, 2016 [new S.No.357A] refers. Consequently, S.Nos.356, 358, 359, 359A and 360; Condition Nos.41, 43 and 44; and List 13 and 14 are being omitted. 4) In case of power generation project based on municipal and urban waste, valid agreement between producer of power with urban local body for processing of municipal solid waste for not less than ten years from the date of commissioning of project is being prescribed for availing customs and excise duty concessions as an alternative to the existing condition of "production of valid power purchase agreement between the importer/producer of power and the purchaser, for the sale and purchase of electricity generated using non-con....
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....402 20 90 Other 180 560 2) Basic Excise Duty on other tobacco products falling under heading 2402 is being increased as under: Tariff Item Description Basic Excise Duty rate From To 2402 10 10 Cigar and cheroots 12.5% or Rs. 3375 per thousand, whichever is higher 12.5% or Rs. 3755 per thousand, whichever is higher 2402 10 20 Cigarillos 12.5% or Rs. 3375 per thousand, whichever is higher 12.5% or Rs. 3755 per thousand, whichever is higher 2402 90 10 Cigarettes of tobacco substitutes Rs.3375 per thousand Rs. 3755 per thousand 2402 90 20 Cigarillos of tobacco substitutes 12.5% or Rs. 3375 per thousand, whichever is higher 12.5% or Rs. 3755 per thousand, whichever is higher 2402 90 90 Others of tobacco substitutes 12.5% or Rs. 3375 per thousand, whichever is higher 12.5% or Rs. 3755 per thousand, whichever is higher 3) The tariff rate of Basic Excise Duty on Paper rolled biris [whether handmade or machine made] and other biris [other than handmade biris] [2403 19 29] is being increased from Rs. 30 per thousand to Rs. 80 per thousand. However, there is no change in effective bas....
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....el [ATF] [2710 19 20] is being increased from 8% to 14%. However, ATF for supply to Scheduled Commuter Airlines [SCA] from the Regional Connectivity Scheme [RCS] airports shall attract 8%. The rate of 14% will operate through the tariff and the rate of 8% will operate through S. No. 77 of notification No.12/2012- Central Excise, dated 17th March, 2012 as amended by notification No.12/2016- Central Excise dated 1st March, 2016. 3) The Schedule Rate of Clean Energy Cess, levied on coal, lignite and peat, is being increased from Rs. 300 per tonne to Rs. 400 per tonne. Clause 232 of the Finance Bill, 2016 refers. The increase in rate of Clean Energy Cess will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931. Accordingly, notification No.1/2015-Clean Energy Cess, dated 1st March, 2015 is being rescinded, vide notification No. 1/2016-Clean Energy Cess, dated 1st March, 2016 and the rate of Rs. 400 per tonne will operate through the Schedule. Further, the Clean Energy Cess is being renamed as Clean Environment Cess. This change will come into force with effect from the date of enactment of the Finance Bill, 2016. 4) Clean Ene....
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...., the expression „site‟ is being defined in the exemption notification. S. No. 144 of notification No. 12/2012- Central Excise, dated 17th March, 2012 as amended by notification No. 12/2016-Central Excise dated 1st March, 2016 refers. Chapter 39: 1) Basic Excise Duty on sacks and bags of polymers of any plastics is being rationalized at 15%. Notification No.12/2012- Central Excise, dated 17th March, 2012 as amended by notification No. 12/2016- Central Excise dated 1st March, 2016 [new S.No.148AA] refers. Consequently, S. Nos. 148B, 148C and 148D are being omitted. Chapter 40: 1) Basic Excise Duty on rubber sheets & resin rubber sheets for soles and heels [4008 29 10] is being reduced from 12.5% to 6%. Notification No. 12/2012-Central Excise, dated 17th March, 2012 as amended by notification No. 12/2016-Central Excise, dated the 1st March, 2016 [new S. No 152A] refers. Chapter 41 to 53: No change. Chapter 54 and 55: 1) Basic excise duty on PSF / PFY manufactured from plastic scrap or plastic waste including waste PET bottles is being changed from „2% without CENVAT credit or 6% with CENVAT credit‟ to „2% without CENVAT credit or 12.....
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....No. 56 of Notification No. 49/2008-Central Excise (N.T.), dated 24th December, 2008 as amended by Notification No. 12/2016-Central Excise (N.T.), dated the 1st March, 2016 refers. Chapter 65 to 70: No change Chapter 71: 1) Basic Excise Duty of 1% (without Cenvat Credit) and 12.5% (with Cenvat Credit) is being imposed on Articles of Jewellery [excluding articles of silver jewellery, other than those studded with diamonds, ruby, emerald or sapphire]. S. No. 199 of Notification No. 12/2012- Central Excise, dated 17th March, 2012 as amended by notification No. 12/2016-Central Excise dated 1st March, 2016 refers. 2) SSI threshold exemption for Articles of Jewellery [excluding articles of silver jewellery, other than those studded with diamonds, ruby, emerald or sapphire] is being increased to Rs. 6 crore in a year, with an eligibility limit of Rs. 12 crore in the preceding financial year. For the month of March, 2016, the SSI exemption for such articles of jewellery is being restricted to Rs. 50 lakh. Notification No. 8/2003-Central Excise, dated 1st March, 2003 as amended by notification No. 8/2016-Central Excise dated 1st March, 2016 refers. 3) Optio....
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....ceeding 0.2 mm [7607] are being notified under section 4A of the Central Excise act for the purpose of assessment of Central Excise duty with reference to the Retail Sale Price with an abatement of 25%. Notification No. 49/2008-Central Excise (N.T.) dated 21.12.2008 as amended by notification No. 12/2016-Central Excise (N.T.) dated 1st March, 2016 [new S. No. 64A ] refers. The Third Schedule to the Central Excise Act, 1944 is also being amended so as to include therein all goods falling under Chapter heading 7607. Clause 142 (i) of the Finance Bill, 2016 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, these changes will come into force with immediate effect. 2) The excise duty structure on „disposable aluminium foil containers‟ is being changed from „2% without CENVAT credit and 6% with CENVAT credit‟ to „2% without CENVAT credit and 12.5% with CENVAT credit‟. S. No. 53 of notification No. 2/2011-Central Excise dated 01.03.2011 as amended by notification No. 10/2016-Central Excise, dated 1st March, 2016 refers. Chapter 77 to 83: No change. Chapter 84 and 85: 1) Basic....
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....nded by notification No.12/2016-Central Excise dated 1st March, 2016 [new S.Nos.263B, 263D, 263F, 263H] refers. 6) Further, excise duty is being exempted on inputs and parts for use in manufacture of charger/adapter, battery and wired headsets/speakers of mobile handsets including cellular phone. Excise duty is also being exempted on inputs and sub-parts for use in manufacture of parts of charger/adapter, battery and wired headsets/speaker of mobile handsets including cellular phone. These exemptions are subject to actual user condition. Notification No.12/2012-Central Excise, dated 17th March, 2012 as amended vide notification No.12/2016-Central Excise dated 1st March, 2016 [new S. Nos.263C, 263E, 263G, 263I] refers. 7) Excise duty of „4% without CENVAT credit / 12.5% with CENVAT credit‟ is being prescribed for the following Consumer Premise Equipments (CPEs). (i) Routers [ tariff item 8517 69 30] (ii) Broadband Modems [tariff item 8517 62 30] (iii) Set-top boxes for gaining access to internet [tariff item 8517 69 60] (iv) Reception apparatus for television but not designed to incorporate a video display[tariff item 8528 71 00] (v) Digital V....
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....xcise as amended by notification No. 12/2016-Central Excise, dated 1st March, 2016 refers. 3) An Infrastructure Cess, as a duty of excise, is being imposed on motor vehicles falling under heading 8703. Clause 159 read with the Eleventh Schedule of the Finance Bill, 2016 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this Cess will come into force with immediate effect. The effective rates of the Infrastructure Cess are being prescribed vide notification No. 1/2016-Infrastructure Cess dated 1st March, 2016, as under: a) Nil on : i. Three wheeled vehicles, ii. Electrically operated vehicles, iii. Hybrid vehicles, iv. Hydrogen vehicles based on fuel cell technology, v. Motor vehicles which after clearance have been registered for use solely as taxi (subject to prescribed conditions), vi. Cars for physically handicapped persons(subject to prescribed conditions), and vii. Motor vehicles cleared as ambulances or registered for use solely as ambulance(subject to prescribed conditions); b) 1% on Petrol/LPG/CNG driven motor vehicles of length not exceeding 4m and engine capacity not exceeding 1200cc; c) 2.5% on Diesel d....
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....o. 315A] refers. 2) Excise duty exemption on remnant kerosene, presently available for manufacture of Linear alkyl Benzene [LAB] and heavy alkylate [HA] is being extended to N-paraffin arising in the course of manufacture of LAB and HA also. S.No.68 of notification No.12/2012- Central Excise, dated 17th March, 2012 as amended by notification No.12/2016-Central Excise, dated 1st March, 2016 refers. 3) Excise duty exemption on 5 specified items for manufacture of rotor blades and intermediates, parts and sub-parts of rotor blades for wind operated electricity generators is being withdrawn. They will now attract a concessional excise duty of 6%, for manufacture of rotor blades and intermediates, parts and sub-parts of rotor blades for wind operated electricity generators, subject to actual user condition. Notification No.12/2012-Central Excise, dated 17th March, 2012 as amended by notification No.12/2016-Central Excise dated 1st March, 2016 [New S. No.327A, List 9A] refers. 4) Basic Excise Duty on Carbon pultrusions, for manufacture of rotor blades and intermediates, parts and sub-parts of rotor blades for wind operated electricity generators, is being reduced from 12.5% to 6....
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....onal materials". Notification No.33/2005- Central Excise, dated 8th September, 2005 as amended vide notification No.14/2016-Central Excise dated 1st March, 2016 refers. 8) Consequent upon abolition of the Duty Refund Procedure for exports to Nepal, notification No.8/2003-Central Excise dated 01.03.2003 is being amended so as to exclude value of clearances made for export to Nepal from the definition of „clearances for home consumption‟ under the said notification. Notification No. 8/2003-Central Excise, dated 1st March, 2003 as amended by notification No. 8/2016-Central Excise dated 1st March, 2016 refers. ANNEX III CLARIFICATION CUSTOMS 1) Notification No.51/96-Customs dated 23.07.1996, inter alia, exempts specified goods from the whole of the additional duty leviable thereon under section 3 of the Customs Tariff Act. Section 3 includes levy of additional duty of customs under Section 3(1) [commonly known as CVD] and additional duty of customs levied under Section 3(5) [commonly known as SAD]. Therefore, such goods are exempt from CVD as well as SAD. Representations have been received to make a provision in notification No.102/2007-Customs dated 14.09.20....
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.... exempt LNG with reference to the consumption of an equivalent quantity for authorized operations in the SEZ unit during any one of the preceding months against which no duty free import has been claimed by the SEZ under the said S.No.138A and that the expression „preceding month‟ shall be construed accordingly. 4) S.No. 399B of notification No. 12/2012-Customs prescribes 5% concessional BCD was prescribed on Over Load Protector (OLP) and positive thermal coefficient relays for use in the manufacture of refrigerator compressor. Classification mentioned in this entry is 8536 20 90. As Positive Thermal Coefficient (relays) are classified under 8536 49 00, trade has represented that concessional BCD was being denied on them. In this context, it is clarified that since Positive Thermal Coefficient (relays) were specifically covered by description in the said S. No. 399B of notification no. 12/2012-customs dated 17.03.2012, and therefore be eligible for the exemption for the past period. Prospectively, tariff item 8536 49 00 is being included in aforesaid S. No. 399B. [S.No. 399B of notification No. 12/2012-Customs as amended by Notification No. 12/2016-Customs refers] ....
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.... products, crude petroleum, and motor vehicles. In this context, for the past period it is clarified that credit of basic excise duty can be utilized for payment of NCCD on all goods, other than those falling under tariff items 8517 12 10 and 8517 12 90 [mobile phones]. However, with effect from 01.03.2016, the 5th proviso to rule 3(4) of the CENVAT Credit Rules, 2004 is being amended so as to provide that CENVAT credit of any duty specified in sub-rule (1) except NCCD cannot be utilized for payment of NCCD leviable under section 136 of the Finance Act, 2001 on any product. Notification No.13/2016-Central Excise (N.T.) dated 01.03.2016 refers. 3) A doubt has been raised with reference to the area based excise duty exemption for the North Eastern Region including Sikkim vide notification No.20/2007-CE dated 25.04.2007, as to whether an industrial unit which is presently availing of the said excise duty exemption, again undertakes substantial expansion by not less than 25% before 31.03.2017 and satisfies the conditions as stipulated under Para 5 and Para 6 of the said notification, will again be eligible for excise duty exemption from such expanded capacity with effect from the....
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....ied goods is not a manufacturer of excisable goods. It is hereby, reiterated, that the clarification issued vide the Circular No.672/63/2002-CX dated 23.10.2002, applies mutatis mutandis to Condition No. 2 for exemption under S.No. 232 of notification No. 12/2012-Central Excise dated 17.03.2012 also. ***** ANNEX IV LEGISLATIVE CHANGES AMENDMENTS IN THE CUSTOMS ACT, 1962: S.No. Amendment 1. Subsection (43) of Section 2 is being amended so as to add a new class of warehouses for enabling storage of specific goods under physical control of the department, as control over the other types of warehouses would be only record based. 2. Subsection (45) of Section 2 which defines "warehousing station" is being omitted. 3. Chapter heading of Chapter III is being amended to omit the word "warehousing station". 4. Section 9 is being omitted. 5. Section 25 is being amended so as to omit the requirement of publishing and offering for sale any notification issued, by the Directorate of Publicity and Public Relations of CBEC. 6. Sections 28, 47, 51 and 156 are being amended so as to: a) increase the period of limitation from one year to two y....
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....ended to delete the payment of fees to Customs for supervision of manufacturing facilities under Bond; and empower Principal Commissioner or Commissioner of Customs to licence such facilities. 18. Section 68 is being amended to omit rent and other charges on account of omission of section 63. 19. Section 69 is being amended to omit rent and other charges on account of omission of section 63. 20. Section 71 is being amended so as to substitute the word "exportation" with the word "export" to align with definition contained in sub section (18) of section 2. 21. Section 72 is being amended to delete clause (c) regarding improper removal of samples 22. Section 73 is being amended to provide for cancellation bond in case of transfer of ownership of the goods, and is thus aligned with sub-section (5) of section 59. 23. New section 73A is being inserted so as to provide for custody of warehoused goods and responsibilities including the liabilities of warehouse keepers. RETROSPECTIVE AMENDMENT S. No. Amendment 1. Various notifications pertaining to Advance Licence and Duty Free Import Authorization Schemes are being amended retro....
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....creased from 7.5% to 10%. 7.5% 10% b) On remaining 115 tariff lines the effective rate will remain unchanged at 7.5%. 7.5% 7.5% The amendments involving increase in the duty rates will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931. AMENDMENTS IN THE CENTRAL EXCISE ACT, 1944: S.No. Amendment 1. Section 5A is being amended so as to omit the requirement of publishing and offering for sale any notification issued, by the Directorate of Publicity and Public Relations of CBEC. 2. Section 11A is being amended so as to increase the period of limitation from one year to two years in cases not involving fraud, suppression of facts, willful mis-statement, etc. 3. Section 37B is being amended so as to empower the Board for implementation of any other provision of the said Act in addition to the power to issue orders, instructions and directions. 4. The Third Schedule is being amended so as to: a) make some editorial changes, consequent to 2017 Harmonized System of Nomenclature. b) include therein: 1) All goods falling under heading 3401 and 3402; 2) Alumi....
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....i) and jarda scented tobacco 70% 81% 8. Unmanufactured tobacco 55% 64% Paper rolled biris [whether handmade or machine made] and other biris [other than handmade biris] However, the effective rate of basic excise duty of Rs. 21 per thousand shall remain unchanged. Rs.30 per thousand Rs.80 per thousand The amendments involving increase in the duty rates will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931. MISCELLANEOUS 1) The Oil Industry (Development) Act, 1974 is being amended so as to reduce the rate of Oil Industries Development Cess, on domestically produced crude oil, from Rs. 4500 PMT to 20% ad valorem. The amendment in the Act will be effective from the date of assent to the Finance Bill, 2016. Till the enactment of the Finance Bill, 2016, Notification prescribing 20% effective rate of OID Cess will be issued by Ministry of Petroleum & Natural Gas. 2) The Seventh Schedule to the Finance Act, 2005 is being amended so as to increase the excise duty across all lengths of non-filter and filter cigarettes as under: Cigarettes From Rs. Per thousand ....
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....ding allowing duty exemptions to importer/manufacturer based on self-declaration instead of obtaining permissions from the Central Excise authorities. Need for additional registration is also being done away with. The new Rules will be effective from 01.04.2016. 3) Interest rates on delayed payment of Customs duty under section 28AA are being rationalized at 15%. 4) The Customs Baggage Declaration Regulations, 2013 is being amended so as to prescribe filing of Customs declaration only for those passengers who carry dutiable or prohibited goods. AMENDMENTS IN THE CENTRAL EXCISE RULES, 2002 AND THE CENVAT CREDIT RULES, 2004 1) The Central Excise Rules, 2002 are being amended so as to: (a) reduce the number of returns to be filed by a central excise assessee above a certain threshold from 27 to 13, that is, one annual and 12 monthly returns. Monthly returns are already being e-filed. CBEC will provide for e-filing of annual return also. This annual return will have to be filed by service tax assessees also, above a certain threshold, taking total number of returns to three in a year for them, (b) extend the facility for revision of return, hitherto available to a ser....