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Dispute Resolution Committee provides an opt-in ADR path reducing penalties and granting prosecution immunity for minor tax disputes.
Clause 379 creates an opt in Dispute Resolution Committee to resolve minor tax disputes by allowing modification of assessment variations, reduction or waiver of penalties, and grant of immunity from prosecution, with Assessing Officers required to implement DRC directions within a prescribed short timeframe; eligibility is confined by a monetary ceiling on variations, exclusions for search/survey or international information cases, and an income threshold as reported in returns, while procedural details and disqualifications are to be prescribed in subordinate rules.
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Set-off of tax refunds: authority to adjust refunds against outstanding dues with written intimation and time limited withholding.
Clause 438 authorises specified tax officers to set off any refund due against sums remaining payable by the taxpayer, subject to mandatory written intimation. If assessment or reassessment proceedings are pending, the Assessing Officer may withhold the refund for a limited, time bound period, but only after recording reasons in writing and obtaining prior approval from the Principal Commissioner or Commissioner. The clause streamlines language from Section 245, narrows discretionary grounds for withholding by focusing on pendency of proceedings, and retains procedural safeguards without specifying priority among kinds of dues.
Act Rules Bills
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Interest on tax refunds: prescribed entitlement and computation rules ensure compensation for delayed refunds and administrative resolution.
Clause 437 provides a statutory entitlement to interest on delayed tax refunds, specifying commencement dates for interest based on refund source (advance tax, TCS, tax treated as paid, self-assessment, rectification or excess payment), a materiality threshold exempting trivial refunds, extension of entitlement to deductors, exclusion of periods of delay attributable to the taxpayer or deductor, additional interest for appellate or revision order-related refunds, adjustment and recovery mechanisms for varied refund amounts, and administrative resolution of disputes on excluded periods by a senior tax authority.
Act Rules Bills
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Finality of assessments: refund claims limited to refunds for wrongly paid or excess tax, not re litigation of settled assessments.
Clause 436 prevents an assessee, in refund claims, from questioning or seeking review of any assessment or matter that has become final and conclusive; relief in such claims is limited to refund of tax wrongly paid or paid in excess and the provision must be read with appeal, rectification and revision mechanisms to avoid undermining corrective powers elsewhere in the statute.
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Automatic refunds on appellate or statutory orders require proactive AO disbursement, subject to reassessment and annulment limits.
Automatic refunds are mandated when appellate or other statutory orders reduce or annul tax liability, requiring the Assessing Officer to refund excess amounts without a claim, except where the Act provides otherwise. Refunds become due only after a fresh assessment when an order directs reassessment, and where an assessment is annulled the refund is limited to the excess tax paid over tax chargeable on the returned total income. The provision preserves AO obligations, exceptions for set off or stay, and separates principal refund rules from interest entitlement.
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TDS refund mechanism for deductors clarifies eligibility, prescribed application procedure, and time bound AO orders.
Clause 434 creates a statutory TDS refund mechanism allowing a deductor who, under a written agreement, bore withholding tax and later claims no deduction was legally required to apply for refund in the prescribed form; the Assessing Officer must inquire as necessary, provide the applicant an opportunity to be heard, and pass a written order allowing or rejecting the claim within the specified time frame.
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Return-based refund claims must be made through the income tax return, tying refund limitation to return filing timelines.
Clause 433 requires that every refund claim be made by furnishing the return of income under section 263, making return filing the exclusive procedural vehicle for refund claims and implicitly tying limitation to the return filing timelines without providing express condonation or separate application mechanisms.
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Refund entitlement: clubbed-income payee and authorised representatives may claim tax refunds when taxpayer cannot act.
The clause entitles the person in whose total income clubbed income is included to claim the refund attributable to that income, and authorises a legal representative, trustee, guardian or receiver to claim or receive refunds on behalf of a taxpayer who cannot do so because of death, incapacity, insolvency, liquidation or similar cause; procedural formalities and limitation issues are left to subordinate rules and practice.
Act Rules Bills
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Tax refund entitlement preserved: statutory right maintained under new bill with procedural verification by Assessing Officer.
Clause 431 preserves a statutory right to a refund where a person satisfies the Assessing Officer that tax paid, paid on or treated as paid on their behalf for a tax year exceeds the amount properly chargeable; it covers direct payments and deemed payments (TDS/TCS, advance tax), places an initial procedural burden on the taxpayer, and mirrors Section 237 of the 1961 Act except for the shift from assessment year to tax year, with attendant implications for temporal reference, procedural integration, and ancillary issues such as interest, set offs and standards of verification.
Act Rules Bills
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Aadhaar intimation fee imposed for belated compliance, payable on late intimation through subordinate legislation.
Clause 430 of the Income Tax Bill, 2025 prescribes an administrative fee for failure to intimate Aadhaar by the prescribed date: the fee is payable at the time of belated intimation, is to be set by subordinate rules subject to a statutory ceiling, and operates without prejudice to other consequences under the Act. The provision delegates essential operational elements-prescribed date, fee quantum, and collection mechanism-to rule-making while retaining a maximum cap and signalling continuity with the existing compliance approach.
Act Rules Bills
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Fee for delay in furnishing statements requires payment before submission and is capped at the amount concerned.
Clause 429 imposes an administrative fee for failure to deliver or furnish prescribed statements or certificates by scientific research and charitable institutions, accruing daily and capped at the amount in respect of which the failure occurred; payment of the fee is required before the delayed document or certificate may be filed, and the levy operates without prejudice to other consequences under the Act.
Act Rules Bills
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Late filing fee for income tax returns: income linked penalties retained, alongside other liabilities and administrative discretion.
Clause 428 imposes a fee where a person required to furnish a return under Section 263 fails to file within the prescribed time, with an income linked structure: a higher fee for those above a specified income threshold and a capped lower fee otherwise; the clause operates without prejudice to interest, penalties, or prosecution and retains administrative discretion through "not exceeding" wording for the lower slab.
Act Rules Bills
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Fee for default in furnishing TDS/TCS statements requires pre payment before filing and is capped by tax liability.
Clause 427 imposes a statutory fee for default in furnishing TDS/TCS statements as triggered by section 393(3)(b), prescribing a fixed per day charge for each day of delay, capped at the amount of tax deductible or collectible, and requiring payment of the fee before delivery of the delayed statement; the provision operates without prejudice to other consequences under the Act and mirrors the substantive structure of Section 234E while omitting explicit commencement and detailed procedural rules.
Act Rules Bills
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Interest on excess refunds: Bill imposes interest from refund grant to regular assessment, with reduction if appellate orders confirm refund.
Clause 426 charges simple interest on refunds granted under section 270(1) that exceed amounts determined on regular assessment, with interest computed from the date of grant to the date of regular assessment. Assessments under section 279 are deemed "regular assessment" for this purpose. Interest is reduced where appellate or revisionary orders ultimately validate the refund in whole or part. The clause mirrors Section 234D's core mechanics but changes cross-references and lacks an explicit retrospective application, raising transitional and interpretational concerns.
Act Rules Bills
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Interest for deferment of advance tax simplified to lump-sum rates, changing computation and compliance implications.
Clause 425 prescribes lump-sum interest rates on shortfalls in advance tax instalments tied to specified due dates and percentage targets, retains partial compliance safe-harbours and exemptions for certain unpredictable income categories provided tax is paid by the final instalment, and defines the tax base for interest by allowing deductions for TDS/TCS and specified tax credits; it shifts from monthly computation to a simplified tabled regime while leaving interpretive gaps around new cross-references and treatment of early rectification of shortfalls.
Act Rules Bills
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Interest on advance tax: default triggers automatic monthly interest until assessment or regular assessment is completed.
Clause 424 establishes interest for failure to pay advance tax or where advance payments are below the prescribed benchmark, charging monthly interest from the first April following the tax year until determination of total income or completion of regular assessment. Interest is computed on net assessed tax after reductions for TDS/TCS, foreign tax reliefs and specified credits. The clause clarifies interpretative points about regular assessments, excludes certain additional income-tax from the assessed base, allows reduction of interest upon pre-assessment payment, and prescribes additional interest on increments arising from reassessment.
Act Rules Bills
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Interest on late tax returns: monthly interest applied under new provision with clarified computation and adjustment mechanism.
A formulaic charging provision imposes simple monthly interest on tax due where returns are filed late or not filed, with a matrix of scenarios specifying for each the starting date, ending date and tax base for interest computation. The clause mandates adjustment of interest following appellate or revisional orders to reflect the final tax, permits reduction by previously paid interest and credits, excludes certain additional taxes from the tax base, and deems specified first time assessments as regular assessments for interest purposes.
Act Rules Bills
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Government's right to recover tax arrears preserved, allowing concurrent statutory and civil recovery remedies.
Clause 421 preserves the Government's right to recover tax arrears by methods beyond the statutory recovery modes, expressly allowing reliance on any other law for recovery and the institution of civil suits; it authorises assessing officers or the Government to pursue such alternative or concurrent remedies notwithstanding that recovery under the tax statute is being undertaken.
Act Rules Bills
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Delegated legislative power to frame broad tax schemes may permit statutory modification, raising oversight and legal certainty concerns.
Clause 532 grants the Central Government a broad power to frame schemes for any purpose under the Income Tax Act by notification, aiming to eliminate taxpayer interface where technologically feasible and to optimise resources; it permits notifications to disapply or modify statutory provisions to implement schemes, validates amendment of existing schemes under the 1961 Act, and requires notifications to be laid before Parliament, raising questions about the scope of delegated legislation and safeguards for legal certainty and taxpayer rights.
Act Rules Bills
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Tax clearance certificate requirement conditions departure to secure tax liabilities and imposes carrier liability for non-compliance.
Clause 420 requires a tax clearance certificate or an undertaking from an employer/payer before certain non-domiciled persons who earn Indian-source income may depart, excepting tourists; domiciled persons must furnish prescribed information (including PAN) and may be restricted from leaving if the tax authority records reasons and obtains senior approval. Owners or charterers of ships and aircraft are vicariously liable for departures without clearance, and the Board may make rules for implementation.

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PRUNING AND REVIEW OF CUSTOMS DUTY CONCESSIONS/ EXEMPTIONS

2 February, 2022

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IV. PRUNING AND REVIEW OF CUSTOMS DUTY CONCESSIONS/ EXEMPTIONS

A. Review of concessional rates of BCD prescribed to Capital Goods and Project Imports vide notification No. 50/2017 – Customs dated 30.6.2017:

The Customs duty rate structure on capital goods and project imports has been comprehensively reviewed and exemption on capital goods/ project imports are being phased out in a gradual manner. However, certain exemptions on capital goods would continue. Accordingly, the BCD exemption hitherto available on certain goods are being withdrawn by omitting the following entries of notification No. 50/2017Customs dated 30.6.2017, from the dates mentioned against each entry.

S.No.

S. No. of notification No. 50/2017

Description/ HS Code

(1)

(2)

(3)

Textile Sector

1.

399 [exemption is being phased out as per details in column (3)]

Goods (other than old and used) for use in man-made or synthetic fiber or yarn industry (84 or any other Chapter)

1. Concessional BCD rate to be withdrawn for Spindles, Yarn guides, Ballon Control Rings and Travellers [w.e.f 1.4.2022]

2. Concessional BCD rate to be withdrawn for the remaining items such as Machinery for continuous polymerization plant, Machinery for synthetic fibre plant, Machinery for synthetic filament yarn plant, Machinery for Regular/HWM Viscose Staple Fibre Plant, Machinery for Lyocell Fiber Plant, in this entry [w.e.f 1.4.2023]

2.

400 [w.e.f 1.4.2023]

Goods such as Machinery for garment sector, Machinery for manufacture of technical textiles, Woollen machinery items, Machinery for manufacture of non-wovens textiles, Machinery for manufacture of denim fabrics, Machinery for use with shuttleless looms etc. as specified in List 12 to the notification No. 50/2017-Customs, and parts for their manufacture for use in textiles industry

3.

432 [exemption is being phased out as per details in column (3)]

Goods (other than old and used) for use in the textile industry

1. Concessional BCD rate to be withdrawn for item no. 1, List 25: Effluent treatment unit with biopaq reactor, activate sludge process, activated carbon, ultrafiltration ozonisation facilities [w.e.f 1.4.2022]

2. Concessional BCD rate to be withdrawn for item no. 3, List 25: Effluent treatment unit with automatic sensing devices, automatic controlled chemical dosing, dissolved air floatation (DAF), reverse osmosis, sludge dewatering, decanters, ultrafilters, vacuum filters to deliver water for reuse [w.e.f 1.4.2022]

3. Concessional BCD rate to be withdrawn for the remaining items such as singeing machines, yarn drying machines, knitting machines etc., in this entry. [w.e.f 1.4.2023]

4.

433 [w.e.f 1.4.2022]

Machinery or equipment for effluent treatment plant for handloom sector or handicraft sector

5.

434 [w.e.f 1.4.2023]

Machinery for use in the silk textile industry

6.

460 [w.e.f 1.4.2023]

Shuttle less looms and parts for their manufacture for use in the textile industry

7.

461 [exemption is being phased out as per details in column (3)]

Machineries such as Knitting, weaving machines

1. Concessional BCD rate to be withdrawn for Card Clothing (HS Code 8448 31 00) used in textile machinery i.e., Carding Machine [w.e.f 1.4.2022]

2. Concessional BCD rate to be withdrawn for the remaining items, such as machines for extruding, drawing, texturing, textiles machines, machines for preparing textile fibers, textile spinning machines, textile twisting machines, textile winding machines, weaving machines, knitting machines, auxiliary machines etc., in entry. [w.e.f 1.4.2023]

Power Sector

8.

397 [exemption is being phased out as per details in column (3)]

Goods specified in List 10 required for use in high voltage power transmission project

1. Concessional BCD rate to be withdrawn for 13 items [List 10 in the notification] that include Transformers, Reactor, Circuit Breaker etc. [w.e.f 1.4.2022]

2. Concessional BCD rate to be withdrawn for the remaining items such as High Voltage DC Divider and CT, High Voltage DC Reactor, High TRV Circuit Breaker for High Voltage DC application, Optical Current Transformer etc. in this entry. [w.e.f 1.4.2023]

9.

405 [exemption is being phased out as per details in column (3)]

Wind operated electricity generators, its parts and raw material, thereof

1. Concessional BCD rate to be withdrawn for item No. (1) & (3) of this entry that include wind operated electricity generators (WOEG) upto 30 kW, wind operated battery chargers upto 30kW and blades for the rotors of WOEG [w.e.f 1.4.2022]

2. Concessional BCD rate to be withdrawn for the remaining items, such as parts of wind operated electricity generators including special bearings, gear box, yaw components, wind turbine controllers etc. and parts thereof and parts of blades, raw materials of blades etc. in this entry. [w.e.f 1.4.2023]

10.

406 [w.e.f 1.4.2023]

Permanent magnets for manufacture of PM synchronous generators above 500KW for use in wind operated electricity generators

11.

413 [w.e.f 1.4.2022]

All goods, for renovation or modernization of a power generation plant (other than captive power generation plant)

12.

414 [w.e.f 1.4.2022]

All goods, imported by a manufacturer-supplier for the manufacture and supply of machinery and equipment to a power generation plant (other than captive power generation plant)

Petroleum Sector

13.

403 [w.e.f 1.4.2023]

Parts and raw materials for manufacture of goods to be supplied in connection with the purposes of off- shore oil exploration or exploitation

14.

409 [exemption is being phased out as per details in column (3)]

Goods specified in List 13 required for setting up crude petroleum refinery

1. Concessional BCD rate to be withdrawn for 11 items of List 13 that include utility systems, water treatment systems, air handling systems, boilers etc. [w.e.f 1.4.2022]

2. Concessional BCD rate to be withdrawn for the remaining items such as all types of Refinery Process Units, All types of Hydrogen Generation, Recovery and Purification Plants, All types of Process Subsystems, All types of Effluent Solids/Liquids/Gaseous Processing etc. in this S. No. [w.e.f 1.4.2023]

15.

410 [w.e.f 1.4.2022]

Kits and its parts required for the conversion of motor- spirit or diesel driven vehicles into Compressed Natural Gas driven or Propane driven or Liquefied Petroleum Gas driven vehicles

Leather Sector

16.

396 [w.e.f 1.4.2022]

Machinery or equipment for effluent treatment plant for leather industry

17.

439 [w.e.f 1.4.2023]

292 goods specified in List 27 to notification No. 50/2017Customs, designed for use in the leather industry or the footwear industry, like Air blast dust removing machine, Automatic Drying machine etc.

Food Packaging Sector

18.

455 [w.e.f 1.4.2023]

Machinery for filling, closing, sealing or labelling bottles, cans, boxes, bags or other containers

19.

458 [w.e.f 1.4.2023]

Machinery for the industrial preparation or manufacture of food or drink, other than machinery for the extraction or preparation of animal or fixed vegetable fats or oils

Other Sectors

20.

393 [w.e.f 1.4.2023]

(i) Cricket bat and hockey stick splice joining machine

(ii) Rugby ball or soccer ball stitching Machine

(iii) Moulds for soccer ball, basketball and volley ball

21.

394 [w.e.f 1.4.2023]

Bacteria removing clarifier

22.

395 [w.e.f 1.4.2023]

Marine seawater pumps with fibre impellers and Automatic fish/prawn feeder

23.

407 [w.e.f 1.4.2023]

Goods required for, -

(a) the substitution of ozone depleting substances (ODS);

(b) the setting up of new capacity with non – ODS technology.

24.

408 [w.e.f 1.4.2023]

Goods required for renovation, modernization or maintenance of a fertilizer plant

25.

436 [w.e.f 1.4.2023]

Spares, supplied with outboard motors for maintenance of such outboard motors

26.

440 [w.e.f 1.4.2023]

Fogging machines imported by a Municipal Committee, District Board etc.

27.

443 [w.e.f 2.2.2022]

Goods to be imported by or on behalf of security printing and minting corporation of India limited (SPMCIL) that include Plant or machinery or equipment, related spares and consumables for printing of banknotes, etc.

28.

444 [w.e.f 1.4.2023]

Geothermal ground source heat pumps

29.

445 [w.e.f 1.4.2023]

Goods for making of gem and jewellery –

(1) Automatic Chain Making machine,

(2) chain twisting machine,

(3) Spiral making machine,

(4) Rolling machine (combined Profile Groovers/Strip Making)

(5) Automatic Investing Machine/casting Machine

30.

448 [w.e.f 1.4.2023]

Specific agricultural implements and parts used for their manufacture that include paddy transplanter, sugarcane harvester, cotton picker etc.

31.

469 [w.e.f 1.4.2023]

Atmospheric water generator

32.

470 [w.e.f 1.4.2023]

Machinery for making wooden fiberboards

Project Imports

33.

597, 598, 599, 600, 601, 602, 603, 604, 605, 606

a. Project Imports for project such as

(i) Power Projects, including Nuclear and Solar Power

(ii) Coal Projects

(iii) Gas Projects

(iv) Iron Ore Projects

(v) Water Supply Projects

(vi) Mandi and Warehousing Projects for Food Grains

(vii) Other Projects

b. New projects registered after 30th September 2022 under project imports will attract 7.5% BCD rate with change in BCD Tariff rate to 7.5%.

c. Existing projects registered till 30th September 2022 under project imports will be grandfathered till 30th September 2023 attracting old BCD rates of 0%/2.5%/5% as applicable.

d. After 30th September 2023, all projects registered under project imports will attract 7.5% BCD rate.

B. Review of concessional rates of BCD prescribed in notification No. 50/2017 – customs dated 30.06.2017: The BCD exemption hitherto available on certain goods are being withdrawn by omitting some of the entries of notification No. 50/2017Customs dated 30.6.2017 as shown below. Additionally, modifications have also been made with respect to some of the entries of notification No. 50/2017-Customs dated 30.6.2017, wherein end-dates have been prescribed, and partial changes has been made to the exemptions. These changes are detailed below.

S. No.

S. No. of notification No. 50/ 2017

Description

 

Entries to be immediately omitted

 

1.

4

Atlantic Salmon

 

2.

26

Hazelnuts or filberts, shelled and in-shell

 

3.

28

Other nuts, shelled and in-shell

 

4.

33

Durians, other fresh fruits like Pomegranates, Tamarind, Sapota, Custard- apple, Bore, Lichi, etc. other than currants and gooseberries

 

5.

50

Seed Lac

 

6.

52

Dammar Batu

 

7.

82

Crude glycerin for use in the manufacture of soaps

 

8.

96

Tapioca and substitutes therefor prepared from starch

 

9.

122

Silica Sands

 

10.

124

Marble, travertine, granite other than rough marble and travertine blocks and marble slabs

 

11.

151

Kerosene imported by the Indian IOCL. BPCL, HPCL and IBP Company Limited for ultimate sale through the Public Distribution System

 

12.

159

Bio-based asphalt sealer and preservation agent; Millings remover and crack filler; Asphalt remover and corrosion protectant; Sprayer system for bio-based Asphalt and condition no. 14

 

13.

171

The goods specified in List 7, for the manufacture of laser and laser-based instrumentation and condition No. 17

 

14.

173

Goods used in manufacture of telecommunication grade impregnated glass reinforcement roving, namely: E-glass roving/ yarn, liquid absorbent polymer, polyurethane polymer and vinyl polymer

 

15.

175

Common Salt (including Rock salt, Sea salt and Table salt)

 

16.

187

Raw materials intermediates and consumables supplied by UNICEF for manufacture of DTP vaccines and condition No. 19

 

17.

233

Myrobalan fruit extract

 

18.

234

Triband Phosphor

 

19.

235

Ceramic Colours

 

20.

236

Glass frit and other glass, in the form of powder, granules or flakes

 

21.

241

Vinyl Polyethylene Glycol for use in manufacture of Poly Carboxylate Ether

 

22.

242

The following goods for use in the manufacture of Plasma Volume Expanders, namely: Hydroxyethyl starch and Dextran

 

23.

277

Mica glass tape for use in manufacture of insulated wire and cables

 

24.

293

Grape guard paper (paper used for packaging grapes)

 

25.

324

Monofilament long line system for tuna fishing and condition No. 34

 

26.

327

Samples of hand knotted carpets and condition No. 36

 

27.

328

Polyester Tyre Cord Fabric

 

28.

332

Parts of Umbrella

 

29.

216 & 481

Artificial Kidney (Dialyzer)

 

30.

216A & 481A

Parts for manufacture of Artificial Kidney

 

31.

402

Goods, for use in the manufacture of static converters of automatic data processing machines: PCBA, Transformer, Battery and Copper enameled wires

 

32.

424

Listed goods for paging goods and its parts

 

33.

425

Listed goods for Public Mobile Radio Trunked Service (PMRTS) and its parts

 

34.

431

Goods used for Research and development in Agro-Chemical Sector Unit

 

35.

449

Goods for use in the manufacture of refrigerator compressor namely: -

(i) C-Block compressor;

(ii) Crankshafts.

 

36.

450

Over Load Protector (OLP) and positive thermal coefficient for use in the manufacture of refrigerator compressor

 

37.

501

Recorded magnetic tapes and floppy diskettes, imported by the University Grants Commission for use in Computers

 

38.

588

Synthetic tracks and equipment to lay synthetic tracks.

 

39.

589

(i) Asphalt resurfacer;

(ii) Acrylic resurfacer;

(iii) Cushion coat;

(iv) Acrylic colour concentrate;

(v) Acrylic marking paint; and

(vi) Polytan in powder or granule form

 

40.

590

Requisites for games and sports

 

Entries where End-dates are prescribed

 

41.

289

Wood in chips for use in manufacture of paper, paperboard & newsprint [End-date of 31.03.2023 is prescribed]

 

42.

430

Goods used for Research and Development purpose in pharmaceutical and bio- technology sector. [End-date of 31.03.2023 is prescribed]

 

43.

479

Mono or Bi polar Membrane electrolysers and parts; Membrane and parts; Parts, other than those for caustic soda unit or caustic potash unit [End-date of 31.03.2024 is prescribed]

 

44.

594

Snow-skis and other snow-ski Equipment; Water-skis, surfboards, sailboards and other water-sport equipment [End-date of 31.03.2023 is prescribed]

 

Section 25 (4A) of the Customs Act, inserted vide Finance Act, 2021, prescribes that where any exemption is granted subject to any condition under sub section (1), such exemption shall, unless otherwise specified or varied or rescinded, be valid up to 31st day of March falling immediately after two years from the date of such grant or variation. Accordingly, conditional exemptions will have validity in terms of this subsection. Therefore, entry being impacted on account of this clause have been identified and an explanation has been inserted in the notification No. 50 /2017-Customs.

[“Explanation: Under the provisions of subsection (4A) of section 25 of the Customs Act, 1962, it is hereby specified that the conditional exemptions granted under the S. Nos. of the Table to the notification, mentioned under column (2) of the Table below, for which period of validity is not specified otherwise, shall unless varied or rescinded, be valid up to the date mentioned in the corresponding entry in column (3) of the said Table. ….” ]

 

The following entries, unless varied, will have validity up to 31.03.2023.

 

45.

16, 90, 133, 139, 150, 155, 164, 165, 168, 183, 184, 188, 204, 213, 237, 238, 253, 254, 255, 258, 259, 260, 261, 269, 271, 276, 277A, 279, 280, 325, 333, 334, 339, 340, 341, 341A, 353, 364A, 374, 375, 378, 379, 380, 381, 387, 392, 415, 415A, 416, 417, 418, 419, 420, 421, 426, 428, 429, 441, 462, 463, 464, 471, 472, 475, 478, 482, 489B, 495, 497, 504, 509, 510, 511, 512, 512A, 516, 519, 534, 535, 535A, 536, 538, 540, 542, 543, 544, 546, 549, 550, 559, 565, 566, 567, 568, 570, 575, 577, 578A, 579, 580, 581, 583, 593, 612

 

The following entries [having been reviewed in this exercise done this year], unless varied, will have validity up to 31.03.2024.

 

46.

17, 80A, 104, 172, 191, 257, 257A, 257B, 257C, 264A, 290, 292, 293A, 296A, 326, 329, 345A, 354, 355, 356, 357, 422, 423, 442, 446, 451, 465, 517, 591

 

Entries omitted being in the nature of technical change

 

47.

31

Dried Grapes (Raisins, Other)

 

48.

161

Electrical Energy originating from Nepal and Bhutan

 

49.

192

Alkyl esters of long chain fatty acids obtained from vegetable oils, commonly known as bio- diesels

 

50.

215

The Blood group sera, namely: -Anti C., anti E., anti c., anti e., anti M., anti N., anti Le., anti-Pl., anti S., antihuman globulin sera, anti F., anti kell, anti cellane, anti Jka., and anti I

 

51.

224

Potassium Nitrate, in a form indicative of its use for manurial purpose

 

52.

248

Dipping oil, Paclobutrazol (Cultar)

 

53.

466

Parts/ sub-parts, components or accessories for use in the manufacture of tablet computer.

 

54.

485

Deflection components for use in colour monitors for computers or for use in PCBs of colour monitors for computers

55.

496

Stepper Motors for use in the manufacture of goods falling under heading 8471

56.

505

Parts of Set-top box for use in its manufacture

57.

506

Parts/sub-parts, components for use in manufacture of broadband modem Other than PCBA, charger.

58.

507

Parts/ sub-parts, components and accessories for use in manufacture of routers other than PCBA, charger.

59.

508

Parts/ sub-parts, components and accessories for use in manufacture of set top boxes for gaining access to internet other than PCBA, charger.

Entries with partial changes

60.

15

Frozen Semen and Frozen semen equipment

[Exemption to continue only for bovine semen]

61.

104

List of specified goods used in the processing of sea-foods

[Exemption to continue for selected items and accordingly, exemption has been continued for 16 items and 4 new items has been added to the list]

62.

132

List A items:

1. Aluminous cement

2. Silicon metal (99%)

3. Micro/fumed silica

4. Brown fused alumina

5. Sintered/tabular alumina

6. Fused zirconia

7. Sodium hexameta phosphate

8. Silicon carbide

9. Boron carbide

10. Reactive alumina

11. Fused silica; and List B items: Phenolic resin

[Exemption to continue for list A with end-date of 31.03.2023 and discontinue for list B immediately]

63.

166

(A) Drugs, medicines, diagnostic kits or equipment specified in List 3.

(B) Bulk drugs used in the manufacture of drugs or medicines at (A)

[Exemptions under List-3 is being rationalized]

Note: Items included in List 3 under S. No. 166 provides for a conditional concessional rate of 5% on the imports of drugs, medicines, diagnostic kits, etc. along with bulk drugs used in the manufacture of such drugs or medicines. The items in the said list has been reviewed. Accordingly, 35 items have been removed from the List and 1 item [influenza vaccine] in the List would be omitted after 18 months. For further details, please refer to notification No. 02/2022 – Customs dated the 1st February, 2022.

64.

167

(A) Lifesaving drugs/medicines including their salts and esters and diagnostic test kits specified in List 4.

(B) Bulk drugs used in the manufacture of drugs or medicines at (A).

[Exemptions under List-4 is being rationalized in the manner as detailed in the Note at S. No. 63 above; Entry at S. No. 167 (C) has been omitted as a similar exemption is available under S. No. 607 (b) of notification No. 50/2017 – Customs]

Note: Items included in List 4 under S. No. 167 provides for customs duty exemption on the imports of Lifesaving drugs/medicines, diagnostic kits, etc. along with bulk drugs used in the manufacture of such goods. The items in the said list has been reviewed. Accordingly, 3 items in List 4 [Diagnostic agent for detection of Hepatitis B antigen, Diagnostic kits for detection of HIV antibodies, Enzyme Linked Immuno absorbent Assay kits (ELISA kits)] have been transferred to List 3, 2 bulk drugs [bulk drug substance for poliomyelitis vaccine (inactivated and live) and Monocomponent Insulin] that are currently included in List 4 would be transferred to List 3 after 2-3 years, and 36 items from List 4 have been omitted. For further details, please refer to notification No. 02/2022 – Customs dated the 1st February, 2022.

65.

404

Goods required in connection with Petroleum operations.

[Rationalization of the exemption provided for goods used in petroleum operations as specified in List 33 under S. No. 404, and simplification of the associated condition no. 48 for availing such exemption and disposal of such goods]

Note: A definition has been provided for a licensee, lessee, contractor or sub-contractor for the purpose of this entry. Also, the requirement of producing a certificate from Directorate General of Hydrocarbons (DGH) for import or each transaction under this entry has been dispensed with. Further, the list of items falling under List 33 has been pruned down and have been made more specific by prescribing the concerned HS Codes.

66.

513

Parts or components for use in manufacture of populated printed circuit board of various telecom and electronics related products, and its sub-parts.

[Exemption to continue for Digital Video Recorder(DVR)/Network Video Recorder(NVR) falling under tariff item 8521 90 90; CCTV Camera/IP Camera falling under tariff item 8525 20 80; Reception apparatus for television but not designed to incorporate a video display falling under tariff item 85287100]

C. Customs duty exemptions which have been granted through certain other standalone notifications, have also been reviewed:

S.No.

Notification No.

Amendment

I. The following notifications have been modified in the manner as detailed below:

1.

39/1996-Customs dated 23.07.1996

This notification prescribes concessional rate of customs duty on items relating to Defence and internal security forces. Upon review of exemption, entries under S. Nos. 14, 15, 17, 18, 19, 24, 29, 30, 31, 31A, 31B, 32, 33, 35, 36, 38, 39, 40, 41, 42, 43 have been omitted.

[Sunset date of 31.03.2023 has been prescribed for the remaining entries as per Section 25(4A) of the Customs Act, 1962]

2.

25/1999-Customs dated 28.02.1999

This notification prescribes concessional rate of customs duty on items relating to import of raw materials and parts for use in manufacture of electronic items.

Upon review of exemption, it has been pruned to remove redundant exemption entries and exemptions related to obsolete items and accordingly, more than 125 entries have been omitted.

[Sunset date of 31.03.2024 been applied for the remaining entries]

3.

25/2002-Customs dated 01.03.2002

This notification prescribes concessional rate of customs duty on import of items relating to capital goods used in manufacture of electronic items. [Sunset date of 31.03.2024 been applied for the all entries]

4.

27/2011-Customs dated 01.03.2011

This notification prescribes concessional rate of customs duty on export of goods. Upon review of the exemption, the entries under S. Nos. 20B, 63 and 64 have been omitted as these entries have become obsolete.

5.

37/2017-Customs dated 30.06.2017

This notification prescribes concessional rate of customs duty on import of items relating to internal security agencies. Upon review of exemption entries, the entries under S. Nos. 6 and 7 have been omitted as their validity has expired.

II. The following obsolete/expired notifications have been rescinded as detailed below:

S.No.

Notification No.

Description

1.

190/1978-Customs dated 22.09.1978

These notification provides for additional duty of customs on import of transformer oil equivalent to such portion of the excise duty leviable on the raw material commonly known as transformer oil base stock or transformer oil feedstock.

2.

191/1978-Customs dated 22.09.1978

3.

10/1995-Customs dated 7.3.1995

This notification prescribes concessional rate of customs duty on import inputs imported for manufacturing of Iron & Steel intermediates.

4.

26/1999-Customs dated 28.2.1999

This notification prescribes concessional rate of basic customs duty on import of kerosene imported by a manufacturer of linear alkyl benzene for extracting N-Paraffin.

5.

27/2004-Customs dated 23.01.2004

This notification prescribes concessional rate of customs duty on import of specified goods imported for use in manufacture of certain chemicals.

6.

14/2006-Customs dated 01.03.2006

This notification prescribes concessional rate of customs duty on import of specified varieties of woven fabrics falling under Chapters 52, 54, 55 and 58.

The entries of this notification have been merged in notification No. 82/2017-Customs.

7.

48/2006-Customs dated 26.05.2006

This notification prescribes concessional rate of customs duty on import of woven fabrics of carded/combed wool or fine animal hair. The entries of this notification have been merged in notification No. 82/2017-Customs.

8.

90/2007-Customs dated 26.07.2007

This notification prescribes concessional rate of additional duty of customs on import of items related to Electronics and Information Technology goods.

9.

08/2011-Customs dated 14.02.2011

This notification prescribes exemption from the whole of the additional duty of customs, leviable thereon under subsection (1) of section 3 of the said Customs Tariff Act, on jute products imported from Bangladesh or Nepal.

The notification has been rescinded as post introduction of GST, the jute products attract integrated tax on imports.

10.

24/2011-Customs dated 1.03.2011

This notification exempts Basic Customs Duty on copper concentrate as is equivalent to the duty of customs leviable on the value of Gold and silver contained in such copper concentrate.

11.

49/2013-Customs dated 29.11.2013

This notification prescribed concessional rate of customs duty on import of Anti-Tuberculosis Drugs, Diagnostics and Equipment and had lapsed on 1st April, 2016.

12.

23/2014-Customs dated 11.07.2014

This notification prescribed concessional rate of customs duty on import of Drugs & equipment imported for National AIDS Control Programme and had lapsed on 1st April, 2015.

13.

37/2015-Customs dated 10.06.2015

This notification prescribed concessional rate of customs duty on import of Anti-Retroviral Drugs (ARV Drugs) and had lapsed on 1st April, 2016.

14.

11/2016-Customs dated 01.03.2016

This notification prescribes concessional rate of customs duty on import of software recorded media.

15.

20/2020-Customs dated 9.04.2020

This notification prescribes concessional rate of customs duty on import of Face Masks, Surgical Masks, Ventilators, COVID-19 Testing Kits, etc. and had lapsed on 30th September, 2020.

16.

40/2020-Customs dated 28.10.2020

This notification prescribes concessional rate of customs duty on import of Potatoes under Tariff Rate Quota (TRQ) and had lapsed on 31st January, 2021.

D. Inclusion of End-date as per Section 25(4A) of the Customs Act, 1962, in certain stand-alone notifications:

S.No.

Notification No./ Entry of the notification No.

Amendment

1.

146/94-Customs dated 13.07.1994

This notification prescribes concessional rate of customs duty on specified sports goods, equipment and requisites imported by National Sports Federation

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

2.

147/94-Customs dated 13.07.1994

This notification prescribes concessional rate of customs duty on exemption to Fire arms and ammunition for renowned shot

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

3.

50/96-Customs dated 23.07.1996

This notification prescribes concessional rate of customs duty on equipment, instrument, raw materials, components, pilot plants, computer software for R&D project

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

4.

30/2004-Customs dated 28.01.2004

This notification prescribes concessional rate of customs duty on import of second hand computers as donation

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

5.

81/2005-Customs dated 08.09.2005

This notification prescribes concessional rate of customs duty on machinery/components for initial setting up of power generation project

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

6.

5/2017-Customs dated 02.02.2017

This notification prescribes concessional rate of customs duty on machinery, equipment, apparatus, components and appliances for initial setting up of fuel cell based system for generation of power

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

7.

16/2017-Customs dated 20.04.2017

This notification prescribes concessional rate of customs duty on specified drugs and medicines supplied free of cost to patients

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

8.

Serial No. 2 of 32/2017-Customs dated 30.06.2017

This notification prescribes concessional rate of customs duty on art work created abroad by Indian artist and sculptures, antique books more than 100-year-old.

[The entry, unless varied or rescinded, will have validity up to 31.03.2023.]

 


Full Text:

Budget 2022-23 + FINANCE Bill, 2022

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Acts Income Tax