9911796707
TMI BlogClarification on proposal made by the Finance Bill, 2006X X X X Extracts X X X X X X X X Extracts X X X X ..... (5) of the Customs Tariff Act, 1975 which was imposed last year only on ITA goods and their parts/components, has been extended in general to all imports. It will apply to both agricultural and industrial products. This additional duty will not be included in the assessable value for levy of education cess on imported goods. Manufacturers will be able to take credit of this additional duty for payment of excise duty on their finished products. Articles of jewellery will, however, attract a lower rate of special CVD at 1%. 2.2 Some categories of imports, however, have been exempted from this special CVD. These are : (a) Goods exempt from VAT ; (b) Goods exempted both from basic and CV duty (including CV duty exemption by way of excise duty exemption) ; (c) Petroleum crude, kerosene for PDS, LPG for domestic supply, petrol, diesel, coal, coke and petroleum gases and fuels of Chapter 27 ; (d) Passenger baggage ; (e) Fertilizers and inputs for fertilizers ; (f) DTA clearances of EOUs/EHTP/STP/SEZ units, provided such goods are not exempted from VAT/sales tax ; (g) Gold concentrate ; (h) Gold silver, rough a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustoms duty has been increased from 30% to 80% on vanaspati, bakery shortening, inter-esterified, re-esterified, elaidinised fats, margarine and similar boiled, oxidized, dehydrated, sulphurised, blown, polymerized or modified preparations of edible grade, falling under headings 1516, 1517 or 1518. 7.4 Customs duty has been reduced on Atlantic salmon from 30% to 10%. 8. Information Technology : 8.1 Customs duty on Set Top Boxes, whether or not covered under ITA (Information Technology Agreement), has been unified at Nil customs duty plus 16% CV duty plus 4% special additional duty of customs. 8.2 CVD under Section 3(3) of the Customs Tariff Act on computers has been withdrawn consequent to imposition of excise duty at 12% on computers. 8.3 Customs duty on MP3 Players and MPEG4 Players has been reduced from 15% to 5%. 9. Petroleum Products : 9.1 Customs duty has been reduced from 10% to 5% on naphtha and Petroleum Coke. 9.2 Customs duty on propane, butanes and natural gas, in any form, has been unified at 5%. 10. Chemicals and Petrochemicals : 10.1 Customs duty on basic inorganic chemicals such as halogens, sulphur, carbon, hydrogen, fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Electronic Trade and Technology Development Corporation Ltd or by others. 6) Food preparations containing flour, meal, starch, etc. in a specified proportion meant for infant use and put up for retail sale. 7) Food products (excluding alcoholic preparations) imported by hotels/tourism industry in terms of licenses issued under 1997-2002 Exim Policy. 8) Plant, machinery, equipment imported for setting up of Currency Note/Bank Note Press at Salbony, Mysore, Nasik and Dewas. 9) Exemption from CVD on gold concentrate. This exemption will continue by way of excise duty exemption on gold concentrate. 10) Specified goods for manufacture of capital goods for setting up of a unit with an investment of Rs 5 crore or more. 14. Miscellaneous : 1) Customs duty has been reduced on: (a) Non-edible grade industrial oils having Free Fatty Acid content of 20% or above, used for manufacture of soaps, industrial fatty acids and fatty alcohols, from 20% to 12.5%. (b) Vinyl acetate monomer from 15% to 10%. (c) Butyl rubber from 15% to 10%. (d) Crude glycerine from 30% to 12.5%. (e) 2-Vinyl pyridine from 15% to 10%. (f) Metallurgical grade silicon from 15% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ddy de-husking rice rubber rolls. (b) Nuclear grade sodium produced by Heavy Water Board for supply to Kalpakkam Nuclear Power Plant. (c) Drawing inks. (d) Quebracho and Chestnut extract. (e) Gold concentrate for refining. 16. Imposition and increase in Duty: 16.1 Excise duty of 8% with CENVAT credit has been imposed on : 1) Goggles ; 2) Articles of wood ; 3) Registers, accounts books, order books, receipt books, letter pads, memorandum pads, dairies, binders, folders, file covers, etc. (excluding note books and exercise books); 4) Paper labels ; 5) Paper pulp moulded trays ; 6) Articles of mica ; 7) Goods containing at least 25% by weight of fly ash/phospho gypsum; 8) Roofing tiles ; 9) Raw, tanned or dressed fur skins ; 10) Portable receivers for calling, alerting or paging ; 11) Henna powder, not mixed with any other ingredient ; 12) 100% wood free plain or pre- laminated particle or fiberboard, made from sugarcane bagasse or other agro-waste ; 13) Parts of walking-sticks, seat-sticks, whips, riding-crops and the like ; 14) Parts of drawing and mathematical instruments ; 15) Frames and mountings fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent : 19.1 Abatement from RSP for levy of excise duty on aerated waters has been reduced from 45% to 42.5% consequent to reduction in excise duty from 24% to 16%. 19.2 Abatement from RSP for levy of excise duty on Compact Fluorescent Lamp has been reduced from 40% to 37% consequent to reduction in excise duty from 16% to 8%. 19.3 Abatement from RSP for levy of excise duty on footwear of RSP exceeding Rs.250 and upto Rs.750 per pair has been reduced from 40% to 37% consequent to reduction in excise duty from 16% to 8%. 19.4 Abatement from RSP for levy of excise duty for ready to eat packaged food, texturised vegetable protein (soya bari) and instant mixes has been reduced from 40% to 37% consequent to reduction in excise duty from 16% to 8%. 19.5 Existing rate of abatement of 50% will apply to all varieties of pan masala, which are subject to RSP based assessment. 20. Tobacco product including Pan Masala : 20.1 Pan masala (containing tobacco), pan masala (not containing tobacco) and pan masala (containing not more than 15% betel nut by weight) attract aggregate excise duty at 66%, 60.5% and 21.5% respectively. Excise duty rates have been unified at 66% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the aid of power : Exemptions to following goods manufactured without the aid of power have been removed: 1) Essential oils, solutions of essential oils, other than sandalwood 2) Perfumes and toilet waters 3) Bricks, blocks, ceramic tiles and other ceramic goods 4) Ceramic building bricks, roofing tiles, chimney pots, chimney liners, Ceramic pipes and conduits etc. 5) Unglazed ceramic flags and paving, vitrified tiles 6) Padlocks, locks of base metal, clasps 7) Signaling flares, rain rockets, fog signals and other pyrotechnic articles (excluding fireworks). 8) Precious metals and metals clad with precious metals excluding silver of Chapter 71. 9) Other items of Chapter 71 10) Metal containers of iron, steel and aluminium 11) Lacs, gums resins, other vegetable saps and extracts 12) Soap 13) Turpentine oil, rosin oil 14) Veneer sheets, and sheets for plywood and other wood sawn lengthwise, sliced or peeled, of a thickness not exceeding 6 mm. 15) Wood (including strips and friezes for parquet flooring, not assembled) continuously shaped along any of its edges or faces. 16) Biscuits 17) Marble slabs and tiles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the new rates of duty. As regards the dutiability of the stocks manufactured prior to 28.2.2006/1.3.2006, pre-budget stocks will be leviable to excise duty at the rates prevailing on the date of their removal. In other words, the goods cleared after 28.2.2006 would be liable to pay duty at the new rates even if they were exempted on or prior to 28.2.2006. In this connection, your attention is invited to the decision of the Supreme Court in the case of CCE Hyderabad vs. Vazir Sultan Tobacco Ltd 1996(83)ELT3(SC) which has laid down the law regarding duty liability of pre- budget stock. 27. Removal of Second Schedule and AED(GSI): 27.1 Excise duty on all goods falling under the Second Schedule to the Central Excise Tariff Act and those covered under the Additional Excise Duty (Goods of Special Importance) Act, 1957 has been exempted, and the duty incidence has been kept unchanged by suitably adjusting the basic excise duty rates, unless there is a separate proposal in the Budget to change the overall incidence of duty on these goods. 28. Revenue foregone statements : 28.1 I would like to invite your attention to the document titled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and 7305 amounts to 'manufacture'. This provision is being extended to goods of heading 7306. 30. 8 Digit Code In 2005, the excise tariff was revised so as to align it with the 8 digit Customs Tariff. But the notifications continued to have the earlier tariff heads, sub- heading No. and the then existing rates were protected by virtue of certain deeming notifications. This year, we have attempted to incorporate the tariff lines as per the 8 digit tariff. I would be grateful if you would go through the notifications and bring to our notice any anomalies or errors that might have crept in while replacing the old tariff lines. 31. Other Amendments in Customs and Central Excise Act and Rules : 1) Section 12C of the Central Excise Act is being amended so as to enable credit of any excess amount collected as service tax by any person to the Consumer Welfare Fund. 2) Section 23C of the Central Excise Act is being amended to explicitly confer the powers to decide the excisability of any product on the Advance Ruling Authority. 3) Capital goods imported under EPCG Scheme are assessed to duty on the basis of transaction value as per the Customs Valuation Law. Howeve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oms Tariff Act, 1975. This is an enabling provision for application of certain provisions of the Customs Act, 1962, in respect of date of determination of the rate of duty, non levy, short levy, refunds, interest, appeals, offences and penalties to the duty chargeable under Section 9. 8) In Section 9 A (1) of the Customs Tariff Act, 1975, the words 'meant for consumption' are being substituted by 'destined for consumption'. 9) Section 23 and 68 of the Customs Act, 1962 are being amended to ensure that the provisions relating to relinquishment of title to imported goods is not available to the importer in case such goods are involved in any offence. 10) First Schedule to the Central Excise Tariff Act, 1985 is being amended so as to align it with the Customs Tariff Act, 1975 (CTA), in line with the amendments proposed in CTA with effect from 1.1.2007. 32. General 32.1 You may kindly study these changes carefully and indicate your views, comments and suggestions on implementation of the proposed changes. A survey may be undertaken to identify the potential taxpayers and the revenue potential. Reports to this effect may be sent by 31 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
