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TMI BlogD.O. Letter from JS(TRU-I)X X X X Extracts X X X X X X X X Extracts X X X X ..... AL EXCISE No. 2/2019-CE to No. 6/2019-CE 6 th July, 2019 2. Unless otherwise states, all changes in rates of duty take effect from the midnight of 5th July/6th July, 2019. A declaration has been made under the Provisional Collection of Taxes Act, 1931 in respect of clauses 87(a), 90, 185 and 201 of the Finance (No.2) Bill, 2019 so that changes proposed therein take effect from the midnight of 5th July/6th July, 2019. The remaining legislative changes would come into effect only upon the enactment of the Finance (No.2) Bill, 2019 . 3. Important changes in respect of Customs and Central Excise duties rates are contained in the Annexures appended to this letter: a) Annex A contains,- (i) details of Chapter wise changes in Basic Customs Duty; (ii) amendments in provisions relating to Countervailing duty and safeguard duty in the Customs Tariff Act, 1975; b) Annex B contains details of Chapter wise changes relating to Central Excise Duty; and c) Annex C contains the details of retrospective amendments made i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nounced on the same question by the Appellate Authorities of two or more States. These changes shall come into effect from a notified date. (iv) Clauses 116 to 118 of the Finance (No. 2) Bill, 2019 seek to retrospectively exempt service tax on liquor license, long duration courses of IIMs for relevant periods and upfront amount paid towards long term lease of plots for development of infrastructure for financial business. (v) Clauses 119 to 134 of the Finance (No. 2) Bill, 2019 seek to provide for a dispute resolution cum amnesty scheme, for legacy cases of the Central Excise, Service Tax and Cess. The provisions of this scheme, called as the Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 will be effective from a date to be notified later. Details regarding the manner in which the scheme will operate will be contained in the rules and instructions which will be issued later. 6. This letter only summarizes the key highlights of the budgetary changes. It should not be used in any quasi-judicial or judicial proceedings. The relevant legal texts contained in the Finance Bill and notifications alone have legal force . While every p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ructure Cess means the additional duty of customs levied under section 111 of the Finance Act, 2018 . These increases will come into effect immediately [from 00 hours on 06.07.2019] owing to the declaration under the Provisional Collection of Taxes Act, 1931. I. Changes in BCD rate Chapter 1-7: No Change Chapter 8 (1) BCD on Cashew Kernel, broken falling under tariff item 0801 32 10 is being increased from ₹ 60 per Kg or 45%, whichever is higher to 70%. S. No. 23 of notification No. 50/2017-Customs dated 30th June, 2017 , is being omitted vide notification No. 25/2019-Customs, dated 6th July, 2019. (2) BCD on Cashew Kernel, whole falling under tariff item 0801 32 20 and on Cashew Shelled, Other under tariff item 0801 32 90 is being increased from ₹ 75 per Kg or 45%, whichever is higher to 70%. S. No. 24 of notification No. 50/2017-Customs dated 30th June, 2017 , is being omitted vide notification No. 25/2019-Customs, dated 6th July, 2019 . Chapter 9-14: No Change Chapter 15 (1) The end use-based exemption on goods, havin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect (2) A nominal BCD of Re. 1 per tonne is being imposed on imported Petroleum crude falling under tariff item 2709 00 00. Presently the tariff item 2709 00 00 is exempt from BCD (S. No. 145 of notification No. 50/2017- Customs, dated 30th June, 2017 and Sl. No. 1 of notification No. 52/2017- Customs, dated 30th June, 2017 ). The entry at S. No. 145 of notification No. 50/2017-Customs, dated 30th June, 2017 is being omitted. The amended rate of BCD would be effective from Sl. No. 1 of notification No. 52/2017- Customs, dated 30th June, 2017 as amended vide notification No. 20/2019-Customs, dated 6th July, 2019. (3) BCD on Naphtha falling under heading 2710 is being reduced from 5% to 4% by amending S. No. 147 Notification No. 50/2017- Customs, dated 30th June, 2017 vide notification No.25/2019-Customs, dated 6th July, 2019 [new S. No. 147A refers]. Chapter 28 (1) BCD on all goods falling under tariff item 2844 20 00 is being reduced from 7.5% to Nil, for use in generation of nuclear power [S. No. 182 of notification No. 50/2017- Customs, dated 30th June, 2017 as amended vide notification No.25/2019-Customs, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 and 3926 90 99, is being increased from 10% to 15% by omitting entries at Sr. Nos. 11 and 12 of the notification No. 57/2017-Customs, dated 30th June 2017 as amended vide notification No 24/2019-Customs dated 6th July, 2019. Chapter 40 (1) BCD on butyl rubber falling under tariff item 4011 31 10 and Chlorobutyl rubber or bromobutyl Rubber falling under tariff item 4011 39 10 is being increased from 5% to 10% by omitting S. Nos. 282 and 283 of notification No.50/2017-Customs, dated 30th June, 2017 , vide notification No. 25/2019-Customs, dated 6th July, 2019. Chapter 41 (1) Export duty is being reduced from 15% to Nil on El tanned leather falling under Chapter 41 by amending S. No. 26 of notification No.27/2011-Customs, dated 1st March 2011 , vide notification No.27/2019-Customs, dated 6th July, 2019. (2) Export duty is being reduced from 60% to 40% on Hides, skins and leather, tanned and untanned, all sorts by amending notification No.27/2011-Customs, dated 1 st March 2011 , vide notification No.27/2019-Customs, dated 6th July, 2019 [New S. No. 38A refers] Chapter 42-47: No change ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 5407 42 , vide notification No.26/2019-Customs, dated 6th July, 2019 . This is a technical change. Chapter 56 (1) Exemption from BCD on water blocking tape for use in manufacture of telecommunication grade optical fibres or optical fibre cables is being withdrawn. They will now attract applicable rate of BCD. List 5 of S. No. 168 of notification No. 50/2017-Customs, dated 30th June, 2017 as amended vide notification No. 25 /2019-Customs, dated 6th July, 2019 refers. 57-67: No Change Chapter 68 (1) BCD on Marble Slabs falling 6802 10 00, 6802 21 10, 6802 21 20, 6802 21 90, 6802 91 00 and 6802 92 00 is being increased to tariff rate of 40% by amending S. No. 335 and omitting S. No. 336 of notification No. 50/2017- Customs, dated 30th June, 2017 vide notification No.25/2019-Customs, dated 6th July, 2019 refers. (2) BCD on all goods, falling under heading 6813 is being increased from 10% to 15% by increasing the tariff rate [Clause 87 (a) of the Finance Bill, 2019 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Clause 87 (a) of the Finance Bill, 2018 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931 , this increase will come into force with immediate effect. (4) Tariff rate on all goods falling under heading 7108 is being increased from 10% to 12.5%. Clause 87 (a) of the Finance Bill, 2018 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931 , this increase will come into force with immediate effect. Consequently, BCD on Gold bars and Gold coins having gold content not below 99.5% and gold findings is being increased from 10% to 12.5%. Accordingly, S. No. 358 of notification No.50/2017-Customs, dated 30th June, 2017 , is being omitted, vide notification No. 25/2019-Customs, dated 6th July, 2019. (5) BCD on Gold Dore bar, having gold content not exceeding 95% is being increased from 9.35% to 11.85% by amending S. No. 354 of notification No.50/2017-Customs, dated 30th June, 2017 , vide notification No. 25/2019-Customs, dated 6th July, 2019 (6) BCD on Gold and Silver falling under Chapter 71 or 98 imported through baggage by eligible passengers is being increased from 10% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lling under heading 7229 is being increased from 5% to 7.5% by amending notification No.50/2017-Customs, dated 30th June, 2017 , vide No. 25/2019-Customs, dated 6th July, 2019 . BCD on INVAR is being retained at 5% [ amendment in S. No. 366 and New S. Nos 376C and 376D refer] (4) BCD on Magnesium Oxide (M g O) coated cold rolled steel used for manufacture of CRGO, is being reduced from 5% to 2.5% by amending S. No. 374 of notification No.50/2017-Customs, dated 30th June, 2017 , vide notification No.25/2019-Customs, dated 6th July, 2019. (5) BCD on (a) hot rolled coils, (b) cold-rolled Magnesium Oxide (M g O) coated and annealed steel, (c) hot rolled annealed and pickled coils, (d) cold rolled full hard, used for manufacture of CRGO, is being reduced from 5% to 2.5% by amending S. No. 375 of notification No. 50/2017-Customs dated 30th June, 2017 , vide notification No. 25/2019-Customs, dated 6th July, 2019. (4) BCD on amorphous alloy ribbon, falling under tariff item 7226 99 30 is being increased from 10% to 5% by amending notification No. 50/2017- Customs, dated 30th June, 2017 , vide notification No. 25/2019-Customs, dated 6th J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing under tariff items 8421 39 20 and 8421 39 90, is being increased from 5% to 10% by increasing the tariff rate from 7.5% to 10%. [Clause 87 (a) of the Finance Bill, 2019 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931 , this increase will come into force with immediate effect]. However, BCD on other goods falling under tariff items 8421 39 20 and 8421 39 90 will continue at 7.5%. Notification No. 50/2017-Custom, dated 30th June, 2017 is being amended vide notification No. 25/2019-Customs, dated 6th July, 2019 . [ S. No. 453 omitted and new S. No. 452A inserted] (4) BCD exemption hitherto available on stone crushing (cone type) plants falling under tariff item 8474 20 10, for construction of roads, is being withdrawn by amending S. No. 411 of the Table read with List 14 ( item 9) of notification No.50/2017-Customs, dated 30th June, 2017 , as amended vide notification No. 25/2019-Customs, dated 6th July, 2019 . Consequently, stone crushing (cone type) plants, will now attract 7.5% BCD. (5) Specified Capital goods to manufacture semiconductors included in ITA agreement were exempt from BCD as per notificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8518 30 00 is part of ITA agreement. Parts of line telephone handsets falling under tariff line 8518 30 00, is being explicitly exempt from BCD by amending notification No. 25/2005-Customs, dated 1 st March, 2005 vide notification No. 23/2019, dated 6th July, 2019. (12) BCD on Digital Video Recorder (DVR) and Network Video Recorder (NVR) falling under tariff item 8521 90 90, is being increased from 15% to 20% by increasing the tariff rate. [Clause 87(a) of the Finance Bill, 2019 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931 , this increase will come into force with immediate effect]. However, the existing BCD rate on other items of tariff item 8521 90 90 shall continue at 10% BCD as per S.No.499A of the notification No. 50/2017-Customs, dated 30th June, 2017 . (13) BCD on CCTV camera and IP camera falling under sub-heading 8525 80, is being increased from 15% to 20% by increasing the tariff rate. [Clause 87 (a) of the Finance Bill, 2019 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931 , this increase will come into force with immediate effect]. However, the existing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from 10% to 15% by increasing the tariff rate of all goods falling under this heading [Clause 87 (a) of the Finance Bill, 2019 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931 , this increase will come into force with immediate effect]. Chapter 88-89: No Change Chapter 90: (1) BCD on Optical fibres, optical fibres bundles and cables falling under tariff items 9001 10 00, is being increased from 10% to 15% by increasing the tariff rate. [Clause 87 (a) of the Finance Bill, 2019 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931 , this increase will come into force with immediate effect]. (2) Raw materials, parts and accessories for use in the manufacture of artificial kidney, disposable dialyzers and micro barriers of artificial kidney is being exempted from BCD. Notification No. 50/2017-Customs, dated 30th June, 2017, as amended vide notification No. 25/2019-Customs, dated 6th July, 2019 . [New S.N0.216A and 481A] Chapter 91-97: No Change Chapter 98 (1) Printed books imported for personal use are being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y free import upto 3% of FOB value of sports goods exported in the preceding financial year, subject to the condition that the manufacturer of sports goods is registered with the Sports Goods Exports Promotion Council . [existing entry at S. No. 612 of notification No. 50/2017-Customs dated 30th June, 2017 , amended vide notification No. 25/2019-Customs, dated 6th July, 2019 refers]. II. Amendment in provision relating to Countervailing duty and safeguard duty under Customs Tariff Act, 1975 (1) Anti-Circumvention provision for Countervailing Duty is being provided by inserting subsection IA in section 9 of the Customs Tariff Act, 1975 [Clause 85 of the Finance Bill, 2019 refers]. (2) Section 9C is being amended so as to provide that appeal against an order of determination or review regarding the existence, degree and effect of increased volume of imports of any article requiring imposing of safeguard duty, shall lie with CESTAT. [Clause 86 of the Finance Bill, 2019 refers]. ANNEX B EXCISE Note: (a) Basic Excise Duty means the excise duty set forth in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llimetres but not exceeding 75 millimetres Nil ₹ 5 per thousand 6 2402 20 90 Other Nil ₹ 10 per thousand 7 2402 90 10 Cigarettes of tobacco substitutes Nil ₹ 5 per thousand 8 2403 11 10 Hookah or gudaku tobacco Nil 0.5% 9 2403 19 10 Smoking mixtures for pipes and cigarettes Nil 1% 10 2403 19 21 Other than paper rolled biris, manufactured without the aid of machine Nil 5 paisa per thousand 11 2403 19 29 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2) Scheduled rate of Additional Duty of Excise [commonly known as Road and Infrastructure Cess (RIC)] levied on Motor Spirit [Petrol] and High Speed Diesel Oil is being increased from ₹ 8 per litre to ₹ 10 per litre. A suitable amendment has been proposed in the Sixth Schedule to the Finance (No. 13) Act, 2018 . Clause 201 of the Finance Bill, 2019 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931 , these changes will come into force with immediate effect. However, the effective rate of Additional Duty of Excise [commonly known as Road and Infrastructure Cess (RIC)] levied on Motor Spirit [Petrol] and High Speed Diesel Oil is being increased from ₹ 8 per litre to ₹ 9 per litre. Notification No. 4/2019-Central Excise dated the 6th July, 2019 refer. (3) Scheduled rate of Special Additional Excise Duty (SAED) levied on Motor Spirit [Petrol] is being increased from ₹ 7 per litre to ₹ 10 per litre. A suitable amendment has been proposed in the Eighth Schedule to the Finance (No.20) Act, 2002 . Clause 185 of the Finance Bill, 2019 refers. By virtue of declaration under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .83 4.83 2 9 15.83 Diesel (branded) 7.19 1 8 16.19 7.19 2 9 18.19 ANNEXURE-C MISCELLANEOUS CHANGES I. RETROSPECTIVE AMENDMENTS OF RATE NOTIFICATIONS (CUSTOMS) (1) Retrospective amendments in customs notification Nos. 46/2011 -Customs, dated 01.06.2011 , 53/2011-customs, dated 01.07.2011 , 12/2012-Customs, dated 17.03.2012 and 50/2017-Customs, dated 30.06.2017 , in order to insert correct classification of Stearic Acid as per WCO, for the period as mentioned in the table below: S. No. Notification Period for retrospective change (a) 46/2011-Customs, dated 01.06.2011 31.03.2017 to 14.09. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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