Government of India,
Ministry of Finance, Department of Revenue,
Tax Research Unit
Alok Shukla, Joint Secretary (TRU-I),
Tel: 23092687, Fax: 23092031,
Email: alok.shukla@nic.in
D.O.F.No.334/5/2015-TRU New Delhi, the 30th April,
2015.
Dear Principal Chief Commissioner / Chief Commissioner / Director General,
1.
While replying to the discussions on the Finance
Bill, 2015 in Lok Sabha today, Finance Minister has announced certain further
changes in Central Excise and Customs duty rates.
Notifications No.23 to
No.27/2015-Central Excise and
Notifications
No. 28 to No.30/2015- Customs, all dated 30th April, 2015 have been issued to
give effect to these announcements.
Notifications
No.12 and No.13/2015-Central Excise (N.T.), dated 30th April, 2015 has also
been issued in this regard.
As regards Service Tax,
notification No.12/2015-Service Tax, dated 30.04.2015 has been issued.
2.
The changes introduced through these
notifications are summarised below.
In addition, a clarification regarding
applicability of customs duty exemption notifications has also been provided.
Unless otherwise stated, all changes in rates of duty take effect from the
midnight of 29th April / 30th April, 2015.
CUSTOMS:
1. Basic
Customs Duty on raw and refined / white sugar has been increased from 25% to
40%. S.Nos.76, 77 and 78 of notification No. 12/2012-Customs, dated 17.03.2012
as amended by notification No.28/2015-Customs, dated 30.04.2015 refer.
2. Basic
Customs Duty on Colemanite and other Boron ores has been reduced from 2.5% to
Nil. S.No.1 13 of notification No. 12/2012-Customs, dated 17.03.2012 as amended
by notification No.28/2015-Customs, dated 30.04.2015 refers. S.No.1 13A has
been omitted since ulexite ore, being a boron ore, will be eligible for Nil
duty under S.No.1 13.
3. Basic
Customs Duty on natural rubber (NR) has been increased from 20% or Rs. 30 per
kg., whichever is lower, to 25% or Rs. 30 per kg., whichever is lower. S.No.252
of notification No. 12/2012-Customs, dated 17.03.2012 as amended by
notification No.28/2015-Customs, dated 30.04.2015 refers.
4. Basic
Customs Duty on raw silk (not thrown) has been reduced from 15% to 10%.
S.No.276 of notification No. 12/2012-Customs, dated 17.03.2012 as amended by
notification No.28/2015-Customs, dated 30.04.2015 refers.
5. All
Digital Still Image Video Cameras (DSC) falling under tariff item 8525 80 20
irrespective of their specification [including the restriction with reference
to video recording time] and their parts are being exempted from Basic Customs
Duty. S.No.428A and 429 of notification No. 12/2012-Customs, dated 17.03.2012
as amended by notification No.28/2015-Customs, dated 30.04.2015 refer.
6. Export
duty on iron ore fines (below 58% Fe content) [falling under tariff lines 2601
11 41 and 2601 11 42] has been reduced from 30% to 10%. There is no change in
the export duty rate on iron ore other than iron ore fines (below 58% Fe
content). Notification No.27/2011-Customs, dated 01.03.2011 as amended by
notification No.30/2015- Customs, dated 30.04.2015 [new S.No.20A refers].
7. Exemption
from additional duty of customs levied under section 3 of the Customs Tariff
Act (both CVD and SAD) in respect of certain entries of notification
No.39/96-Customs, dated 23.07.1996 are being withdrawn. Exemption from Basic
Customs Duty in respect of these entries, however, would continue. Paragraph 2
of the notification No.39/96- Customs, dated 23.07.1996 as amended by
notification No.29/2015-Customs dated 30.04.2015 refers. Further, exemption
from Basic Customs Duty, CVD and SAD in respect of direct imports by the
Government of India and the State Governments would continue. Notification
No.39/96-Customs, dated 23.07.1996 as amended by notification
No.29/2015-Customs dated 30.04.2015 [amended S. Nos.9 and 10] refer. These
changes, however, will be effective from 01.06.2015.
EXCISE:
1) The speed range
for ‘jarda scented tobacco’has been divided into two ranges (as in case of
chewing tobacco),
a.
first upto 300 pouches per minute; and
b.
second from 301 onwards, and the deemed capacity
and duty payable have been notified accordingly.
2)
Notification No.11/2010-Central Excise (N.T.),
dated 27.02.2010 [The Chewing Tobacco and Unmanufactured Tobacco Packing
Machines (Capacity Determination and Collection of Duty) Rules, 2010] as
amended by notification No.13/2015-Central Excise (N.T.), dated 30.04.2015 [for
deemed capacity of production] and notification No.16/2010-Central Excise,
dated the 27.02.2010 as amended by notification No.25/2015-Central Excise,
dated the 30.04.2015 [for duty payable per machine per month] refer.
3)
Excise duty exemption on finishing agents, dye
carriers to accelerate the dyeing or fixing of dye-stuffs, printing paste and
other products and preparations of any kind used in the same factory for the
manufacture of textiles and textile articles has been withdrawn. S.No.133 of
notification No.12/2012-Central Excise, dated 17.03.2012 as omitted by
notification No. 24/2015-Central Excise, dated 30.04.2015 refers.
4) The concessional excise duty (and hence, CVD) of
6% on Hard disk, CD ROM drive, DVD drive or writer, Combo drive, flash memory,
microprocessors has been restricted only to actual users for manufacture of
computer (PCs/desktops) falling under heading 8471. S.No.255 of notification
No.12/2012-Central Excise, dated 17.03.2012 as amended by notification No.
24/2015-Central Excise, dated 30.04.2015 refers.
5) Excise duty exemption presently available to
Ordnance Factories is being withdrawn. S.No.1 and 6 of notification No.62/95-CE
dated 16.03.1995 as omitted by notification No.23/2015-Central Excise, dated
30.04.2015 refers. Further, excise duty exemption presently available to
Defence PSUs is being withdrawn. S.No.2 and 16 of notification No.63/95-CE
dated 16.03.1995 as omitted by notification No.23/2015-Central Excise, dated
30.04.2015 refers. These changes, however, will be effective from 01.06.2015.
6)
An Explanation has been inserted in
notifications No.14/2015-Central Excise and 15/2015-Central Excise, both dated
01.03.2015 to provide that exemption from Education Cess and Secondary &
Higher Education Cess contained therein will also apply to DTA clearances of
excisable goods from 100% EOU. Notification No.14/2015-Central Excise, dated
01.03.2015 as amended by notification No.26/2015-Central Excise, dated
30.04.2015; and notification No.15/2015-Central Excise, dated 01.03.2015 as
amended by notification No.27/2015-Central Excise, dated 30.04.2015 refers.
The CENVAT Credit Rules, 2004 (CCR, 2004):
1) Rule
3(7)(b) of the CCR, 2004 has been amended so as to allow utilisation of credit
of Education Cess and Secondary & Higher Education Cess for payment of
basic excise duty in the following situations:
a.
Education Cess and Secondary & Higher
Education Cess on inputs or capital goods received in the factory of
manufacture of final product on or after the 1st day of March, 2015;
b.
Balance 50% Education Cess and Secondary &
Higher Education Cess on capital goods received in the factory of manufacture
of final product in the financial year 2014-15; and
c.
Education Cess and Secondary & Higher
Education Cess on input services received by the manufacturer of final product
on or after the 1st day of March, 2015. Notification No.12/2015-Central Excise
(N.T.), dated 30.04.2015 refers.
CLARIFICATION:
The issue as to whether an importer can
simultaneously avail the exemption benefits under two notifications, one for
Basic Customs Duty and the other for CVD was examined in the Ministry in the
matter of import of coal from Indonesia and vide Circular No.41/2013-Customs
dated 21.10.2013 it was clarified that an importer while availing of BCD
exemption on steam coal under notification No.46/2011-Customs, dated 01.06.2011
can simultaneously avail of concessional CVD at 2% under S.No.123 of
Notification No. 12/2012-Customs, dated 17.03.2012.
Drawing the same analogy, in the case of muriate of
potash and urea for use in the manufacture of other fertilizers, it was clarified
to the Central Excise zone of Visakhapatnam and Bhubaneswar that importers can
simultaneously avail benefit of S.No. 198 or 203 of Notification No.
12/2012-Customs, dated 17.03.2012 for concessional rate of BCD and S.No.127 of notification No.12/2012-Central
Excise for CVD exemption. Representations have been received regarding
divergence in assessment practice in respect of such imports. It is, therefore,
clarified that importers can avail of the benefit of Notification No.
12/2012-Customs, dated 17.03.2012 for the purposes of BCD [i.e. S.No.197 to 203
as amended by notification No.46/2012-Customs, dated 17.08.2012] and
simultaneously avail benefit of S.No.127 of Notification No. 12/2012-Customs,
dated 17.03.2012 for the purposes of CVD where such imports are for use in the
manufacture of other fertilizers.
SERVICE TAX:
1)
Service tax on services of Life Insurance
business provided under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) have
been exempted.
2)
Service tax on services of Life Insurance
business provided under Pradhan Mantri Jan Dhan Yojana (PMJDY) have been
exempted.
3)
Service tax on services of General Insurance
business provided under Pradhan Mantri Suraksha Bima Yojana (PMSBY) have been
exempted.
4)
Service tax on services by way of collection of
contribution under Atal Pension Yojana (APY) have been exempted. [Notification
No.25/2012-Service Tax, dated 20.06.2012 as amended by notification
No.12/2015-Service Tax, dated 30.04.2015 [item (p) of entry.26 and items (e)
and (f) of entries 26A and 26B refer.]
With warm regards,
Yours sincerely, (Alok Shukla)
Joint Secretary (TRU-I)
No comments:
Post a Comment