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TMI BlogFinance Bill, 2003 — Salient features of the post budget amendmentsX X X X Extracts X X X X X X X X Extracts X X X X ..... are indicated below (changes through notifications are effective from 30-4-2003): Amendments to the Finance Bill : 1.1 A new clause has been introduced in the Finance Bill, 2003 so as to increase the tariff rates of basic customs duty on vanaspati, margarine and other similar edible preparations and preparations of animal or vegetable fats and oil, falling under chapter headings 1516, 1517 and 1518, from 30% to 100%. However, there is no change in the effective rate of the customs duty applicable in respect of the said products. 1.2 Clause 129 which seeks to amend section 4A so as to enable the Government to ascertain the retail sale price (RSP), in cases where either RSP is not declared or incorrect RSP is declared, has been ame ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oms as inserted by Notification No. 68/2003-Customs, dated 30-4-2003 refers). 2.2 Basic customs duty has been reduced from 25% to 15% on decorative transfer films and dyestuffs used in the manufacture of writing instruments (S. No. 396 of Notification No. 21/2002-Customs as amended by Notification No. 67/2003-Customs, dated 30-4-2003 refers). 2.3 Basic customs duty has been reduced on fine and coarse animal hair and flax from 15% to 5% (S. Nos. 435 436 of Notification No. 21/2002-Customs as inserted by Notification No. 67/2003-Customs, dated 30-4-2003 refer) and on rags from 25% to 5% (S. No. 437 of Notification No. 21/2002-Customs as inserted by Notification No. 67/2003-Customs, dated 30-4-2003 refers). 2.4 Lists 45 and 46 of Notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition (S.Nos. 8A, 41A and 41B of Notification No. 23/2002-Customs as inserted by Notification No. 68/2003-Customs, dated 30-4-2003 refers refer). 2.8 S. No. 373 of Notification No. 21/2002-Customs has been amended ( vide Notification No. 67/2003-Customs, dated 30-4-2003) so as to extend the concessional rate of 5% to spare parts of hearing aids irrespective of their classification. Central Excise : Textiles The following turn over based exemptions 3.1 have been given to textile sector :- (i) Knitted and woven readymade garments or clothing accessories have been fully exempted from excise duty upto their first clearance of Rs. 25 lakhs per annum provided such garments do not bear the brand name of other manufacturer and if t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceed Rs. 30 lakhs (Notification No. 36 /2003-C.E., dated 30-4-2003 refers). 3.2 Excise duty on hand processed fabrics of pure cotton, which after having undergone bleaching, dyeing or printing without the aid of power or steam have been subjected to certain specified finishing processes (with the aid of power or steam), has been reduced to 5% and 8% respectively (Notification No. 38/2003-C.E., dated 30-4-2003 refers). In this case, the processors should certify that the fabrics in respect of which the 5% or 8% duty is being claimed has been subjected to the process of bleaching, printing or dyeing or one or more of these processes without the aid of power or steam. In other words, if the fabrics have been bleached or printed or dyed, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hortening irrespective of whether the same is branded and packed or not, at the stage of clearance from refinery/vanaspati factory. Refined edible oil and vanaspati manufactured respectively from duty paid refined edible oil and vanaspati shall be exempt from central excise duty (S. Nos. 244, 245 246A of Notification No. 6/2002-C.E. as amended by Notification No. 37/2003-C.E., dated 30-4-2003 refer). However, for removal of doubts, it is clarified that payment of Nil duty shall not be taken as duty payment for the purposes of this exemption as clarified in Board's Circular No. 667/58/2002-CX., dated 26-9-2002. 3.6 Nicotine Polacrilex gum, presently attracting 8% central excise duty, has been fully exempted from excise duty (S. No. 254 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it diverted and utilized for paying duty on non-exempted products, the entire period should be taken as a whole, and the amount should be worked out accordingly. 4.2 In the end, it is reiterated that all facilities must be provided to the powerlooms and readymade garments units, and manufacturers of other textile items who will now be required to pay excise duty and there should not be any case of harassment. The Finance Minister has made a commitment in the Lok Sabha today that a very serious view will be taken if there is any harassment of such units. The declaration made by these units should be accepted as correct, and credit of duty on inputs lying in stock may be given, on the basis of their declaration. Units opting for the exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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