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TMI BlogEXPLANATORY NOTES (EXCISE)X X X X Extracts X X X X X X X X Extracts X X X X ..... Chapter 21 21.1 Excise duty on Betel nut product known as „Supari‟ is being fully exempted from excise duty. However, Scented Supari will continue to attract duty at applicable rates. (S.No. 27Aof Notification 3/2006-CE as amended by the notification 9/2010-CE dated 27.02.2010 refers) 21.2 Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Amendment Rules, 2010 have been issued to amend Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008 to effect certain technical changes in the said rules (Notification No. 8/2010-Central Excise (N.T.), dated 27.02.2010 refers). Chapter 22 23 No change. Chapter 24 24.1 The existing slab of filter cigarettes of length not exceeding 70 mm is being 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 (Clause 74 of the Finance Bill refers). Suitable rates are being prescribed for these slabs. The basic excise duty (BED) on other cigarettes is also being revised. The revised rates of excise duty including basic excise, additional excise and NCCD on cigarettes are as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igarettes is being increased from 300% to 360%. 24.8 Basic excise duty on cut tobacco is being increased from Rs.50 per kg. to Rs.60 per kg. 24.9 Basic excise duty on manufactured tobacco other than chewing tobacco, preparations containing chewing tobacco, zarda scented tobacco, snuff and its preparations, tobacco extracts and essences etc and is being increased from 50% to 60%. (Clause 74 of the Finance Bill 2010 refers for changes in 24.1 to 24.9 above) 24.10 The duty on other Pan Masala is being increased from 8% to 10%. (Entry no. 29A of Notification no. 3/2006-Central Excise as amended by Notification no. 9/2010- Central Excise dated 27.02.2010 refers). 24.11 Basic excise duty on branded „hookah‟ or „gudaku‟ tobacco is being increased from 8% to 10%. (Entry no. 33 of Notification no. 3/2006- Central Excise as amended by Notification no. 9/2010- Central Excise dated 27.02.2010 refers). 24.12 The duty on other smoking tobacco (unbranded) is being increased from 8% to 10%. (Entry no. 35 of Notification no. 3/2006- Central Excise as amended by Notification no. 9/2010- Central Excise dated 27.02.2010 refers). 24.13 The duty on other manufactured tobacco an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i) of retail sale price exceeding Rs. 190 per 50 kg bag or of per tonne equivalent retail sale price exceeding Rs. 3800; Rs.145 per tonne Rs. 250 per tonne Rs.185 per tonne Rs.315 per tonne 2. Cleared other than in packaged form Rs. 170 per tonne Rs.215 per tonne Other than mini cement plant: S. No . Cement Present Rate Proposed Rate 1. Cleared in packaged form,- (i) of retail sale price not exceeding Rs. 190 per 50 kg bag or of per tonne equivalent retail sale price not exceeding Rs. 3800; (ii) of retail sale price exceeding Rs. 190 per 50 kg bag of per tonne equivalent retail sale price exceeding Rs. 3800 Rs. 230 per tonne 8% of retail sale price Rs.290 per tonne 10% of retail sale price 2. Cleared other than in packaged form 8% or Rs. 230 per tonne, whichever is higher 10% or Rs.290 per tonne whichever is higher Cement Clinker Rs. 300 per tonne Rs. 375 per tonne (S.No. (i) to (v) of notification No. 10/2010- Central Excise dated 27.02.2010 refers) . Chapter 26: No change. Chapt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f notification No. 10/2010- Central Excise dated 27.02.2010 refers). Chapter 34 to 39 No change. Chapter 40 40.1 Excise duty on latex rubber thread of tariff item 4007 00 10 is being reduced from 8% to 4% (S.No. 82 of the notification No. 4/2006-Central Excise as amended vide notification No. 10/2010-Central Excise dated 27.02.2010 refers). 40.2 Excise duty on Toy Rubber Balloons of Natural Rubber Latex falling under heading 40 is being reduced from 8% to Nil (S.No. 85A of the notification No. 4/2006-Central Excise as inserted vide Notification No. 10/2010- Central Excise dated 27.02.2010 refers). Chapter 41-47 No change. Chapter 48 48.1 Excise duty at 10% is being imposed on Baby and clinical diapers, which were fully exempt so far. (Relevant bill entries read with S.No. 96B of the notification No. 4/2006-Central Excise as inserted vide Notification No. 10/2010- Central Excise dated 27.02.2010 refers). 48.2 Excise duty exemption on Sanitary napkins is also being withdrawn and these goods will now attract standard rate of duty at 10% (Relevant bill entries read with S.No. 96C of the notification No. 4/2006-Central Excise as inserted vide Notification No. 10/2010 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) not attract any further excise duty. Chapter 69 69.1. S. No. 13 of notification No. 5/2006- Central Excise, dated 01.03.2006 prescribing concessional excise duty rate of 8% on ceramic tiles, manufactured in a factory not using electricity for firing the kiln, is being omitted. Consequently, all ceramic tiles, whether manufactured by using electricity for firing the kiln or not, will attract a single excise duty rate of 10% with cenvat credit. (S. No.13 of notification No. 5/2006- Central Excise, dated 01.03.2006 as omitted vide S. No. (vii) of notification No. 11/2010-Central Excise, dated 27.02.2010 refers) Chapter 70 70.1. S. No. 20 of notification No. 5/2006- Central Excise, dated 01.03.2006 prescribing concessional excise duty rate of 4% on rough ophthalmic blanks, for manufacture of optical lenses is being omitted as such blanks already attract a „nil‟ excise duty vide S. No.10 of notification No. 10/2006-Central Excise, dated 01.03.2006 (S. No.20 of notification No. 5/2006- Central Excise, dated 01.03.2006 as omitted vide S. No. (xi) of notification No. 11/2010-Central Excise, dated 27.02.2010 refers) Chapter 71 71.1. Gold bars, other than tola bars, manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded to other sectors like apiary, horticulture, dairy, poultry, aquatic and marine produce and meat and their processing. (S. No. 5 of notification No. 6/2006-CE amended vide notification No. 5/2010-CE dated 27.02.2010 refers). 84.3 Excise duty on replaceable kits of all domestic water filters except those operating on reverse osmosis technology is being reduced from 8% to 4% (S. No. 8C of notification No. 6/2006-CE substituted vide notification No. 12/2010-CE dated 27.02.2010 refers). Chapter 85 85.1 An excise duty @ 4% is being imposed on specified IT products like microprocessor other than motherboards, floppy disc drives, CD-Rom drive etc when these items are meant for external use with a computer or laptop as a plug-in device. However, these items meant primarily for use inside the CPU housing/laptop body would continue to be exempt from excise duty. (S. No. 17 of notification No. 6/2006-CE substituted vide notification No. 12/2010-CE dated 27.02.2010 refers). 85.2 Excise duty exemption on parts, components and accessories of mobile handsets including cellular phones is being extended to parts of two accessories namely, battery chargers and hands-free headphones of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcise duty of 4% on end-use basis, namely:- (i) Battery Pack (ii) Battery Charger (iii) AC or DC Motor (iv) AC or DC Motor Controller. The concessional duty rate of 4% shall remain in force till 31st March, 2013. Consequent to this, the full excise duty exemption available to specified parts of battery operated cars is being withdrawn (S. No.35A of notification No. 6/2006- Central Excise, dated 01.03.2006 as inserted vide S. No. (xv) of notification No. 12/2010-Central Excise, dated 27.02.2010 refers; S. No.35B of notification No. 6/2006- Central Excise, dated 01.03.2006 omitted vide S. No.(xvi) of notification No. 12/2010-Central Excise, dated 27.02.2010 refers). 87.3. Ad-valorem component of excise duty on large cars, SUVs, etc. and their chassis is being increased from 20% to 22%. There is no change in the specific component of Rs. 15000 and the same will continue to be levied as applicable. (S. No.41 41A of notification No. 6/2006- Central Excise, dated 01.03.2006 as substituted vide S. No. (xix) (xx) of notification No. 12/2010-Central Excise, dated 27.02.2010 refers). 87.4. Excise duty on self-loading or self-unloading trailers and semi-trailers for agricultural purpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . (S. No. 68A of notification No. 6/2006-CE amended vide notification No. 12/2010-CE dated 27.02.2010 refers). Chapters 91 to 93 No change. Chapter 94 94.1 Excise duty on products wholly made of quilted textile materials falling under heading 9404 of the first schedule of the Central Excise Tariff Act, 1985 is being exempted. (S. No. 71A of notification No. 6/2006-CE inserted vide notification No. 12/2010-CE dated 27.02.2010 refers). 94.2 Excise duty on LED lights/ lighting fixtures falling under heading 9406 of the first schedule of the Central Excise Tariff Act, 1985 is being reduced from 8% to 4%. (S. No. 71B of notification No. 6/2006-CE inserted vide notification No. 12/2010-CE dated 27.02.2010 refers). Legislative, Procedural Miscellaneous changes M.1 Central Excise Act, 1944: (i) An Explanation is being inserted in sub-section (2B) to Section 11A of the Central Excise Act, 1944 to clarify that penalty shall not be imposed in case duty short paid and interest thereon is paid before service of show cause notice. (ii) Section 32 of the Central Excise Act, 1944, dealing with Settlement Commission is being amended so as to restore certain provisions as they ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2010-CE (N.T.) dated 27.02.2010 refers) (ii) Central Excise Rules 1944, Cenvat Credit Rules 2001, Cenvat Credit Rules 2002 and Cenvat Credit Rules 2004 are being amended retrospectively from 1st September 1996 to 31st March 20008 to provide for reversal of credit or payment of equivalent amount attributable to the inputs used in or in relation to the excisable goods on which no central excise duty is payable. These changes will take effect on enactment of the Finance Bill 2010. The provisions would apply only to such manufacturers where the disputes are pending as on the day the Finance Bill 2010 is enacted. M.4. SSI Exemption: Brand name exception under notification no. 8/2003-Central Excise dated 01.03.2003, presently available to packing materials bearing a brand name of another person is being extended to such plastic containers and plastic bottles also, provided the same are used as packing material by the person whose brand name such containers or bottles bear. (Notification No. 4/2010 dated 27.02.2010 refers) Explanatory Notes on changes in levies Medicinal Toilet Preparation Act M TP 1. Section 3 of the M TP (Excise Duties) Act, 1955 is being amended to exclude ..... X X X X Extracts X X X X X X X X Extracts X X X X
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