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TMI BlogMemorandum Part-II (Cen.excise & Cus.)X X X X Extracts X X X X X X X X Extracts X X X X ..... . Cleared in packaged form,- (i) of retail sale price not exceeding Rs. 190 per Rs. 230 per tonne Rs.290 per tonne 50 kg bag or of per tonne equivalent retail sale price not exceeding Rs. 3800; (ii) of retail sale price exceeding Rs. 190 per 8% of retail sale price 10% of retail sale price 50 kg bag of per tonne equivalent retail sale price exceeding Rs. 3800; 2. Cleared other than in packaged form 8% or Rs. 230 per tonne, 10% or Rs.290 per tonne whichever is higher whichever is higher Cement clinker Rs.300 per tonne Rs. 375 per tonne C. AUTOMOBILE SECTOR Ad-valorem component of excise duty on large cars, Multi Utility Vehicles and Sports Utility Vehicles etc. and chassis thereof is being increased from 20% to 22%. There is no change in the specific component, which will continue to be levied as applicable. D. PETROLEUM PRODUCTS The rates of excise duty on Motor Spirit (petrol) and HSD (diesel) are being increased by Re.1 per litre. The revised rates of duty on these items are as under: Description Without Brand Name With Brand Name Motor Spirit *Rs.14.35 per litre *Rs.15.50 per litre HSD **Rs.4.60 per litre **Rs.5.75 per litre Note: * Includes Rs.2 Additional Excise Duty and Rs.6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch unbranded tobacco is being increased from 8% to 10%. 7) Basic excise duty on smoking mixtures of pipes and cigarettes is being increased from 300% to 360%. 8) Basic excise duty on cut tobacco is being increased from Rs.50 per kg. to Rs.60 per kg. 9) Excise Duty on Chewing Tobacco and branded unmanufactured Tobacco packed in pouches with the aid of packing machines will now be levied based on capacity of production under Section 3A of the Central Excise Act, 1944 (compounded levy). The levy will come into effect on 8th March, 2010. F. CLEAN ENERGY CESS Clean Energy Cess is being imposed on coal, lignite and peat produced in India. This cess would be levied and collected as a duty of excise with effect from a date to be notified after the enactment of the Finance Bill, 2010. G. SECTOR SPECIFIC RELIEF MEASURES: I. FOOD /AGRO PROCESSING AND AGRICULTURE SECTOR 1) Full exemption from excise duty presently available to 20 specified equipments for preservation, storage or transport of agricultural produce is being extended to apiary, horticultural, dairy, poultry, aquatic marine produce and meat as well as processing thereof. 2) Full exemption from excise duty is being extended to self- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... old and silver jewellery manufactured by a 100% EOU is being increased from: (i) Rs.500 per 10 gram to Rs.750 per 10 gram for gold jewellery; and (ii) Rs.1000 per kg to Rs.1500 per kg. for silver jewellery. H. OTHER RELIEF MEASURES 1) Following items are being fully exempted from excise duty: a) Articles of bedding wholly made of quilted textile materials; b) Toy balloons made of natural rubber; c) Betel nut product known as "Supari"; d) Dementholised oil, Deterpenated Mentha oil, Spearmint/ Mentha Piperita oils and all intermediates and by-products of Menthol. 2) Excise duty is being reduced from 8% to 4% on: a) Replaceable kits for all household type water filters (except those operating on RO technology) b) Corrugated boxes/ cartons manufactured by stand- alone manufacturers c) Latex rubber thread. 3) Excise duty on goods covered under the Medicinal and Toilet Preparations Act is being reduced from 16% to 10% to bring it at par with standard Cenvat rate. I. RATIONALIZATION MEASURES 1) At present, maize starch and tapioca starch are exempt from excise duty while potato starch attracts 8% duty. Excise duty on all these starches is now being unified at 4%. 2) In the last budget, co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing relaxed. The Commission is being empowered to extend the time limit of nine months for disposal of applications by another three months, for reasons to be recorded in writing. 3) In Section 37, a new clause is being inserted to provide rule-making powers to the Central Government for withdrawal of facilities or imposition of restrictions including restrictions on utilization of Cenvat credit on a manufacturer or exporter or suspension of registration of a dealer for dealing with evasion of duty or misuse of Cenvat credit. The above changes will come into effect on enactment of the Finance Bill. L. AMENDMENTS IN THE FIRST SCHEDULE TO CENTRAL EXCISE TARIFF ACT, 1985 1) In heading 2402, a new tariff item covering filter cigarettes of length not exceeding 60 mm has been inserted. Consequential changes have been made to other tariff items in the said heading. 2) In Chapter 27, sub-heading 2712 20 and the tariff items 2712 20 10 and 2712 20 90 are being substituted by 2712 2000 covering 'Paraffin Wax containing by weight less than 0.75% of oil'. Further, tariff item 2712 90 40 covering 'Paraffin wax containing by weight 0.75% and more of oil' is being inserted. 3) In chapter 68, Note ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facility available to goods supplied against International Competitive Bidding available at present is also being continued. 6) Rule 15 of the Cenvat Credit Rules, 2004 is being amended to harmonize the penal provisions for incorrect availment of Cenvat credit of duty paid on inputs or capital goods or input services. N. AMENDMENTS IN MEDI CINA L AND TOILET PREPARATIONS (EXCISE DUTIES) ACT, 1955 Section 3 of the M TP Act is being amended to exclude goods manufactured or produced by units in SEZ from excise duty leviable under that Act. This change will come into effect on enactment of the Finance Bill. O. AMENDMENTS IN CENTRAL SALES TAX ACT, 1956 The provisions of CST Act are being amended so as to provide for: (i) reassessment by the assessing authority on the basis of new facts discovered or revision by a higher authority. (ii) filing of appeals to the highest authority of every State against the orders made by assessing authorities on issues involving stock transfer or inter state sale including incidental issues relating to rate of tax, computation of assessable turnover, penalty and procedure. (iii) filing of appeal against any order passed by the highest appellate authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses for food grains and sugar, with concessional rate of basic customs duty of 5%. Such systems are also being exempted from additional duty of customs (CVD) and special additional duty of customs. 3) Truck Refrigeration units for the manufacture of refrigerated vans/trucks are being fully exempted from basic customs duty. Such units are already exempt from excise duty. 4) Basic customs duty is being reduced from 7.5% to 5% on specified agricultural machinery such as paddy transplanter, laser land leveler, cotton picker, reaper-cum-binder, straw or fodder balers, sugarcane harvesters, track used for manufacture of track-type combine harvester etc. E. AGRICULTURE/HORTICULTURE 1) Basic customs duty on long pepper is being reduced from 70% to 30%. 2) Basic customs duty on 'asafoetida' (heeng) is being reduced from 30% to 20%. 3) Full exemption from basic customs duty is being provided to bio-polymer/bio-plastics (HS Code 39139090) used for manufacture of bio-degradable agro mulching films, nursery plantation flower pots. F. CAPITAL GOODS 1) Mono Rail Projects for urban transport are being granted project imports status under Heading No. 98 01 and would accordingly attract concessional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CVD/excise duty is being retained for specified medical devices (exempt by description) as well as for assistive devices, rehabilitation aids and other goods for disabled (List 41). 5) Cobalt-chrome alloys, special grade stainless steel etc. for the manufacture of orthopaedic implants are being exempted from basic customs duty subject to actual user condition. I. ELECTRONICS HARDWARE 1) Battery chargers and hands-free headphones are the basic accessories of mobile phones. Full exemption from basic customs duty and CVD presently available for parts, components, accessories for manufacturing of mobile handsets including cellular phones and parts thereof is being extended to parts for the manufacture of battery chargers and hands-free headphones also. 2) Full exemption from 4% special additional duty of customs presently available upto 06.07.2010 on parts, components and accessories for manufacture of mobile handsets including cellular phones, parts thereof (except accessories) is being extended to parts of two specified accessories also upto 31.03.2011. 3) Basic customs duty is being reduced from 10% to 5% on magnetrons of upto 1,000 kw for the manufacture of microwave ovens. 4) Full ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ettlement Commission is being amended so as to restore certain provisions as they obtained prior to the enactment of the Finance Bill, 2007. Accordingly, the prohibition on filing of applications for the settlement of cases where an assessee admits short-levy in respect of goods not included in the entry made under the said Act. (i.e. cases of misdeclaration, suppression etc.) is being removed. Similarly, the restriction that an assessee may seek only one-time settlement is also being relaxed. The Commission is being empowered to extend the time limit of nine months for disposal of applications by another three months, for reasons to be recorded in writing. O. AMENDMENTS IN CUSTOMS TARIFF ACT, 1975 1) Section 3 of the Customs Tariff Act is being amended to provide that the value of the imported goods for the purpose of charging CVD in respect of goods chargeable to excise duty on the basis of Maximum Retail Sale Price under Medicinal and Toilet Preparations (Excise Duties) Act, 1955 shall be the retail sale price declared on such imported goods less the amount of abatement, if any. This change will come into effect on enactment of the Finance Bill. 2) Consequent upon insertion of a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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