TaxTMI 
TaxTMI 
D.O. Letter from JS(TRU-I)
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....xes Act, 1931 in respect of clauses 87(a), 90, 185 and 201 of the Finance (No.2) Bill, 2019 so that changes proposed therein take effect from the midnight of 5th July/6th July, 2019. The remaining legislative changes would come into effect only upon the enactment of the Finance (No.2) Bill, 2019. 3. Important changes in respect of Customs and Central Excise duties rates are contained in the Annexures appended to this letter: a) Annex A contains,- (i) details of Chapter wise changes in Basic Customs Duty; (ii) amendments in provisions relating to Countervailing duty and safeguard duty in the Customs Tariff Act, 1975; b) Annex B contains details of Chapter wise changes relating to Central Excise Duty; and c) Annex C contains the details of retrospective amendments made in certain notifications through Finance Bill (Customs and GST) 4. Nominal excise duty, as mentioned in Annexure 'B', is being imposed on tobacco products and crude petroleum. These products attract levy of NCCD which in certain cases is being contested on the ground of basic du....
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.... IIMs for relevant periods and upfront amount paid towards long term lease of plots for development of infrastructure for financial business. (v) Clauses 119 to 134 of the Finance (No. 2) Bill, 2019 seek to provide for a dispute resolution cum amnesty scheme, for legacy cases of the Central Excise, Service Tax and Cess. The provisions of this scheme, called as the "Sabka Vishwas Legacy Dispute Resolution Scheme, 2019" will be effective from a date to be notified later. Details regarding the manner in which the scheme will operate will be contained in the rules and instructions which will be issued later. 6. This letter only summarizes the key highlights of the budgetary changes. It should not be used in any quasi-judicial or judicial proceedings. The relevant legal texts contained in the Finance Bill and notifications alone have legal force. While every possible effort has been made to make errors free Budget documents, however, given the scale of changes, possibility of inadvertent errors cannot be completely 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 clar....
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....ing increased from " Rs. 60 per Kg or 45%, whichever is higher" to 70%. S. No. 23 of notification No. 50/2017-Customs dated 30th June, 2017, is being omitted vide notification No. 25/2019-Customs, dated 6th July, 2019. (2) BCD on Cashew Kernel, whole falling under tariff item 0801 32 20 and on Cashew Shelled, Other under tariff item 0801 32 90 is being increased from " Rs. 75 per Kg or 45%, whichever is higher" to 70%. S. No. 24 of notification No. 50/2017-Customs dated 30th June, 2017, is being omitted vide notification No. 25/2019-Customs, dated 6th July, 2019. Chapter 9-14: No Change Chapter 15 (1) The end use-based exemption on goods, having free fatty acid (FFA) 20% or more, is being withdrawn. Entries at I(A), I(B) and I(C) in S. No. 57 along with S. No. 67 of notification No. 50/2017-Customs dated 30th June, 2017 are being amended vide notification No. 25/2019-Customs, dated 6th July, 2019. Chapter 16-22: No Change Chapter 23 (1) vide entry at S. No. 119 in notification No. 50/2017- Customs, dated 30th June, 2017, concessional BCD at the rate of 5% has been prescribed on prawn feed, shrimp larvae feed and fish feed in pellet form. Certain int....
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....tha falling under heading 2710 is being reduced from 5% to 4% by amending S. No. 147 Notification No. 50/2017- Customs, dated 30th June, 2017 vide notification No.25/2019-Customs, dated 6th July, 2019 [new S. No. 147A refers]. Chapter 28 (1) BCD on all goods falling under tariff item 2844 20 00 is being reduced from 7.5% to Nil, for use in generation of nuclear power [S. No. 182 of notification No. 50/2017- Customs, dated 30th June, 2017 as amended vide notification No.25/2019-Customs, dated 6th July, 2019 refers]. Hitherto, only some forms like sintered natural uranium dioxide and sintered uranium dioxide pellets (U235), for use in generation of nuclear power were attracting Nil rate of BCD. Chapter 29 (1) Basic Custom Duty on Ethylene dichloride (EDC)], falling under tariff item 2903 15 00 is being reduced from 2% to Nil by amending S. No. 198 of notification No.50/2017-Customs, dated 30th June, 2017, vide notification No.25/2019-Customs, dated 6th July, 2019. (2) Basic Custom Duty on Methyloxirane (Propylene Oxide), falling under tariff item 2910 20 00 is being reduced from 7.5% to 5% by amending notification No.50/2017-Customs, dated 30th ....
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....ion No.27/2019-Customs, dated 6th July, 2019. (2) Export duty is being reduced from 60% to 40% on Hides, skins and leather, tanned and untanned, all sorts by amending notification No.27/2011-Customs, dated 1^st March 2011, vide notification No.27/2019-Customs, dated 6th July, 2019 [New S. No. 38A refers] Chapter 42-47: No change Chapter 48 (1) Exemption from BCD Newsprint 4801 withdrawn by omitting S. No. 294 of notification No.50/2017-Customs, dated 30th June, 2017, vide notification No. 25/2019-Customs, dated 6th July, 2019. Consequently, Newsprint will now attract 10% BCD [tariff rate]. (2) Exemption from BCD on uncoated paper used in printing of newspaper is being withdrawn by omitting S. No. 295 of notification No.50/2017-Customs, dated 30th June, 2017, vide notification No. 25/2019-Customs, dated 6th July, 2019. Consequently, Uncoated paper used in printing of newspaper will now attract 10% BCD [tariff rate]. (3) Exemption from BCD on Lightweight coated paper used in printing of magazines falling under heading 4810 is being withdrawn by omitting S. No. 297 of notification No.50/2017-Customs, dated 30th June, 20....
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....sing the tariff rate [Clause 87 (a) of the Finance Bill, 2019 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect.] Chapter 69 (1) BCD on all goods falling under heading 6905 is being increased from to 15% by increasing the tariff rate. Clause 87 (a) of the Finance Bill, 2018 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect. (2) BCD on all goods falling under heading 6907 is being increased from 10% to 15% by increasing the tariff rate. Clause 87 (a) of the Finance Bill, 2018 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect. Chapter 70 (1) BCD all goods 7009 increased from 10% to 15% by increasing the tariff rate. [Clause 87 (a) of the Finance Bill, 2019 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect.] (2) Specified raw materials for use in the manu....
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....er falling under Chapter 71 or 98 imported through baggage by eligible passengers is being increased from 10% to 12.5% by amending S. No. 356 and 357 of notification No.50/2017-Customs, dated 30th June, 2017, vide notification No. 25/2019-Customs, dated 6th July, 2019 (7) BCD on all goods falling under tariff item 7109 00 00 is being increased from 10% to 12.5% by increasing the tariff rate. Clause 87 (a) of the Finance Bill, 2018 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect. (8) Tariff rate on all goods falling under heading 7110 is being increased from 10% to 12.5%. Clause 87 (a) of the Finance Bill, 2018 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect. Consequently, BCD on Platinum falling under sub-heading 7110 11 or tariff item 7110 19 00 is being increased from 10% to 12.5%. Accordingly, S. No. 363 of notification No.50/2017-Customs, dated 30th June, 2017, is being omitted, vide notification No.__ /2019-Customs, dated 6th July, 2019. However, there is no ch....
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.... 25/2019-Customs, dated 6th July, 2019. [new S. No. 376B refers] Chapter 73-80: No Change Chapter 81 (1) BCD on cobalt mattes and other intermediate products of cobalt metallurgy falling under tariff item 8105 20 10 is being reduced from 5% to 2.5% by amending Notification No.50/2017-Customs, dated 30th June, 2017, vide notification No. 25/2019-Customs, dated 6^th July, 2019 [new S. No. 390A refers] Chapter 82: No change Chapter 83 (1) BCD on locks used in motor vehicles, falling under tariff item 8301 20 00 is being increased from 10% to 15% by increasing the tariff rate of all goods falling under this heading [Clause 87 (a) of the Finance Bill, 2019 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect.] (2) BCD on all goods falling under heading 8302, is being increased from 10% to 15% by increasing the tariff rate of all goods falling under this heading. [Clause 87 (a) of the Finance Bill, 2019 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect]. Chapter 84 and 85 ....
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.... included in the notification is being amended to align it with present HSN transposition. [Notification No. 25/1998-Customs, dated 2nd June, 1998 as amended vide notification No. 21/2019-Customs, dated 6th July, 2019 refer]. This is a technical amendment and clarificatory in nature. (6) Exemption from BCD on charger or adapter of Digital Video Recorder (DVR), Network Video Recorder (NVR), CCTV camera and IP camera falling under sub-heading 8504 40, is being withdrawn, they will now attract 15% of BCD. S.No. 13 of notification No. 57/2017-Customs, dated 30th June, 2017, as amended vide notification No. 24/2019-Customs, dated 6th July, 2019 and S. Nos 509 and 511 of notification No 50/2017-Customs dated 30th June, 2017 as amended vide notification No 25/2019-Customs dated 6th July, 2019 refers. (7) BCD on all goods falling under tariff item 8512 10 00, 8512 20 10, 8512 20 20, 8512 30 10 and 8512 40 00 is being increased from 10% to 15% by increasing the tariff rate [Clause 87 (a) of the Finance Bill, 2019 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect]. (8....
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....502A of the notification No. 50/2017-Customs, dated 30th June, 2017. (14) Exemption from BCD on specified electronic items as mentioned in entry at S. No. 427 read with List 20 of the notification No. 50/2017-Customs, dated 30th June, 2017, is being withdrawn by omitting the entry at S. No. 427 read with List 20 of the notification No. 50/2017-Customs, dated 30th June, 2017 (vide notification No 25/2019-Customs dated 6th July, 2019 refers). Consequently, these goods will attract applicable BCD rate. (15) BCD on all goods, falling under tariff items 8539 10 00, 8539 21 20 and 8539 29 40 is increased from to 15% by increasing the tariff rate of all goods falling under these tariff items [Clause 87 (a) of the Finance Bill, 2019 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect]. (16) Microphones, receivers and SIM sockets of mobile phones attracts 15% BCD by tariff rate. Further, in general speakers attracts 15% BCD by tariff rate. Also, connectors for use in cellular mobile phones attracts concessional 10% BCD [S.No. 5B of the notification No. 57/2....
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....visional Collection of Taxes Act, 1931, this change will come into force with immediate effect]. Miscellaneous: (1) BCD is being exempted on specified military equipment and their parts imported by the Ministry of Defence or the Armed Forces, subject to specified conditions. [notification No. 19/2019-Customs, dated 6th July, 2019 refers]. The notification is valid upto 30th June, 2024. (2) BCD is being exempted on specified capital goods [falling under Chapter 82, 84, 85 and 90] for manufacture of specified electronic items such as PCB, Charger of Cellular Mobile Phone, Display Panel, etc subject to actual user condition. Notification No. 25/2002-Customs, dated 1st March, 2002, is being amended vide notification No. 22/2019-Customs, dated 6th July, 2019. (3) BCD is being exempted on the goods imported under Project Imports for setting up of the following Atomic Power projects: - (a) Mahi Banswara Atomic Power project- 1 to 4, Mahi Banswara, Rajasthan; (b) Kaiga Atomic Power project-5 & 6, Kaiga site, Karnataka; (c) Gorakhpur Atomic Power project- 3 & 4, GHAVP site, Haryana....
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....ce Act, 2002. These increases will come into effect immediately [from 00 hours on 06.07.20191 owing to the declaration under the Provisional Collection of Taxes Act, 1931. Chapter 24 (1) The Central Excise duty is being imposed on the following tariff items (Notification No.03/2019-Central Excise dated the 6th July, 2019 refers): S. No. Heading, sub-heading tariff item Commodity From To 1 2402 20 10 Other than filter cigarettes, of length not exceeding 65 millimetres Nil Rs. 5 per thousand 2 2402 20 20 Other than filter cigarettes, of length exceeding 65 millimetres but not exceeding 70 millimetres Nil Rs. 5 per thousand 3 2402 20 30 Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) not exceeding 65 millimetres Nil Rs. 5 per thousand 4 2402 20 40 Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 65 millimetres but not exceeding 70 millimetres Nil Rs. 5 per thousand 5 ....
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....f Taxes Act, 1931, these changes will come into force with immediate effect. However, the effective rate of Additional Duty of Excise [commonly known as Road and Infrastructure Cess (RIC)] levied on Motor Spirit [Petrol] and High Speed Diesel Oil is being increased from Rs. 8 per litre to Rs. 9 per litre. Notification No. 4/2019-Central Excise dated the 6th July, 2019 refer. (3) Scheduled rate of Special Additional Excise Duty (SAED) levied on Motor Spirit [Petrol] is being increased from Rs. 7 per litre to Rs. 10 per litre. A suitable amendment has been proposed in the Eighth Schedule to the Finance (No.20) Act, 2002. Clause 185 of the Finance Bill, 2019 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 rate of Special Additional Excise Duty (SAED) on Motor Spirit [Petrol] is being increased from Rs. 7 per litre to Rs. 8 per litre. Notification No. 5/2019-Central Excise dated the 6th July, 2019 refer. (3) Scheduled rate of Special Additional Excise Duty (SAED) levied on High Speed Diesel Oil is being increased from Rs. 1 per litre to R....