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TMI BlogChanges in the Rate of excise duties and other measures and Legislative Proposals have been proposed through the Finance Bill, 2010X X X X Extracts X X X X X X X X Extracts X X X X ..... 14/2008-CE (NT), all dated 27th February, 2010. Changes in rates of duty (unless otherwise stated) take effect from the midnight of 26th February/27th February of 2010. The legislative changes, except through clauses 60, 62, 74, 85 and 86 declared under the Provisional Collection of Taxes Act, 1931, would come into effect only upon the enactment of the Finance Bill, 2010. 2. The important changes in respect of Central excise duty are discussed below. I. CENTRAL EXCISE 3. Rate structure for goods, other than petroleum: 3.1 The standard rate of excise duty (CENVAT) for non-petroleum goods has been increased from 8% to 10%. The increased rate would apply to all such goods that hitherto attracted the general rate of 8% except in a few cases where a fresh exemption or concession has been given. The lower rate of 4% is being retained. However, there are some items for which this rate has either been enhanced to the standard rate or fully exempted. These exceptions are discussed later. 3.2 Consequent to enhancement of the standard rate, the rates of duty on cement have also been revised upwards suitably. In the case of packaged cement manufactured by units other than mini-ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tobacco, cut tobacco, smoking mixtures etc.), other than those which are already fully exempt. On some of these item notified under section 4A the rates of abatement are also being revised. The details are available in the Explanatory Notes. The rates of duty on 'biris' remain unchanged. 5.2 The tariff sub-heading 240220 covering cigarettes has been restructured through suitable bill entries (clause 74 read with Ninth Schedule of the Finance Bill, 2010). The existing slab of filter cigarettes of length not exceeding 70 mm has been broken up into two slabs: filter cigarettes of length not exceeding 60 mm; and filter cigarettes of length exceeding 60 mm but not exceeding 70 mm. Corresponding changes have also been made in the Tariff Schedules for National Calamity Contingency Duty (NCCD) leviable under Finance Act, 2001 and Additional Excise Duty leviable under Finance Act, 2005. The basic excise duty (BED) on all cigarettes, other than cigarettes of length not exceeding 60 mm (both filter and non-filter), has been increased. Some quarterly Post-Budget reports are being prescribed to monitor the production, clearance and revenue trend of cigarettes consequent upon these changes. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est you to identify the potential taxpayers and examine whether the provisions of the Central Excise Rules, 2002 require modification in order to implement this levy. I shall be grateful if feedback in this regard, especially from Zones or Commissionerates with potential taxpayers, along with any comments or suggestions for the smooth implementation of this levy is sent to us latest by 15th March, 2010. 7. Withdrawal of exemptions/ concessions: 7.1 A few exemptions or concessions have been withdrawn. The details along with revised rates are as under: S.No. Description of goods From To 1 Mosquito nets impregnated with insecticides Nil 4% 2 Av gas Nil 4% 3 Microprocessor for computers (other than motherboard), Floppy disk drive, Hard disk drive, flash drive, CD/DVD and Combo Drive meant for external use Nil 4% 4 Baby clinical diapers and sanitary napkins Nil 10% 5 Open top sanitary (OTS) cans 4% 10% 6 Goggles, other than those for correcting vision 4% 10% 8. Relief Measures: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uired for manufacture of all categories of electrical vehicles including cars, two wheelers and three wheelers (like 'Soleckshaw') subject to actual user condition. This concession will be available till 31.03.2013. Such vehicles will also be charged to excise duty @ 4%. 8.6 Refined serially numbered gold bars made from the ore/concentrate stage will now attract excise duty of Rs.280 per 10 grams (instead of 10% ad valorem) with Cenvat credit facility on inputs and capital goods. 8.7 The relaxation from brand name restriction under the general SSI exemption scheme has been extended to plastic bottles and plastic containers used as packing material. 9. Miscellaneous increase and rationalization: 9.1 Excise duty on DTA clearances of plain gold 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. 9.2 The rates of excise duty are being equalized/ unified in the following cases: * maize starch, tapioca starch and potato starch at 4% * umbrellas, umbrella parts and umbrella cloth panels at 4% * ceramic tiles manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posed * Settlement of cases through the Settlement Commission has been liberalized by removing restrictions on the nature of cases that may be settled and the number of times the Commission may be approached by an assessee 11. Other Legislative Proposals: 11.1 Among the important legislative provisions is the amendment of section 37 of the Central Excise Act, 1944 to enable the Central Government to make rules providing for deterrent action through the withdrawal of certain facilities to deal with evasion. 11.2 In the First Schedule to the Central Excise Tariff Act, amendments have been made to- (i) Carry out editorial changes in sub- heading no.2712 20 through the deletion of the entry covering chlorinated paraffin wax and insertion of new entries for paraffin wax. (ii) Prescribe that certain processes in respect of goods falling under chapters 68 and 76 as amounting to manufacture. These would come into effect immediately as the relevant provisions have been declared under the PCT Act. Vivek Johri Joint Secretary (TRU-I) Email: [email protected] - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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