FM Replies to Debate in Parliament on
Finance Bill
Custom and Excise Changes
Protection to Battery, Charger and Headset for Mobile Manufacture Cut to
12.5% from 29.441%
New Policy to Protect Populated PCB manufacture, Mobile exempted
·
TRU Clarification on Finance Act
2016 Changes on TV without Video Display, set Top Boxes
·
Customs Notification
30/05.05.2016 Amends Jumbo Customs Notification 12-Customs dated 17.03.2012
·
31-Customs/05.05.2016 amending 4%
SAD Notification 21-Customs/17.03.2012
·
32-Customs/05.05.2016 Amends ITA
Zero Duty notification 24-Customs 01.03.2005
·
20-CE/05.05.2016 Amends 2% Excise
01/2011-CE dated 01.03.2011
·
21-CE/05.05.2016 Amends 6% Excise
02/2011-CE dated 01.03.2011
·
22-CE/05.05.2016 Amends Jumbo
Excise 12-CE/17.03.2012
· 20% MRP Based Assessment on Routers - No.
25/2016-Central Excise (N.T) dated 5 May 2016 amending 49/2008-Central Excise
(N.T.), dated the 24th December, 2008
TRU
Clarifications on Finance Act 2016 Changes
[D.O.F.No.334/8/2016-TRU dated 5
May 2016]
Dear Principal Chief Commissioner
/ Chief Commissioner / Director General / Principal Commissioner
While
replying to the discussions on the Finance Bill, 2016 in Lok
Sabha today, Finance Minister has announced certain changes in Central Excise
and Customs duty rates. In order to prescribe effective rates of duty, the
following notifications have been issued:
|
Customs |
Notification Nos. |
Date |
|
Tariff |
No.30/2016-Customs to
No.32/2016-Customs |
5th May, 2016 |
|
Central Excise |
|
|
|
Tariff |
No.20/2016-CE to No.22/2016-CE |
5th May, 2016 |
|
Non-Tariff |
No.25/2016-CE (NT) and
No.26/2016-CE (NT) |
5th May, 2016 |
For details, the said
notifications may be referred to. All changes in rates of duty take effect from
the midnight of 4th May / 5th May, 2016.
2. You may recall that in this years Budget, excise duty of 4%
(without CENVAT credit) or 12.5% (with CENVAT credit) was prescribed for
reception apparatus for television not designed to incorporate a video display
falling under tariff item 8528 71 00 [S.No.263T of notification
No.12/2012-Central Excise, dated 17.03.2012 refers]. Simultaneously, parts,
components and accessories for use in manufacture of such reception apparatus
for television and sub-parts for manufacture of such parts, components or
accessories were also exempted from BCD, excise/CVD and SAD [S.No.431I of
notification No.12/2012-Customs, dated 17.03.2012 and S.No.
263U of notification No.12/2012-Central Excise, dated 17.03.2012 refers]. In
this regard, the Trade and industry has represented that some field formations
are denying the benefit of aforesaid concessions to manufacturers of set top
boxes for cable TV, on the ground that such set top boxes are not explicitly
mentioned in the aforesaid notification. As such, set top boxes for TV are
covered under the description reception apparatus for television not designed
to incorporate a video display falling under tariff item 8528 71 00.
Accordingly, it is clarified that:
(i) Set Top Box for
cable TV are covered under description reception apparatus for television not
designed to incorporate a video display falling under tariff item 8528 71 00
and are eligible for excise duty of 4% (without CENVAT credit) or 12.5% (with
CENVAT credit); and
(ii) Parts, components and accessories for use in
manufacture of Set Top Box for cable TV and sub-parts for manufacture of such
parts, components or accessories are eligible for Nil BCD, Nil excise/CVD and
Nil SAD.
Customs Notification
No. 30/2016-Customs dated 5 May 2016
In exercise of the powers conferred by sub-section (1) of section 25
of the Customs Act, 1962
(52 of 1962), the Central Government being satisfied
that it is necessary in the public interest so to do, hereby makes the following
further amendments in the
notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 12/2012-Customs, dated the 17th March, 2012,
published in the Gazette of India, Extraordinary,
Part II, Section 3, Sub-section (i) vide number G.S.R. 185 (E), dated the 17th March, 2012, namely:-
In the said
notification,-
(A) in the Table,-
(i) in serial number 163A, for the entry in
column (3), the entry Medical use fission Molybdenum-99 (Mo-99) for use in the manufacture of radio pharmaceuticals shall be
substituted;
(ii) after serial number 305A and the entries relating thereto, the following serial number and entries shall be inserted, namely :-
|
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
|
305B |
70 |
Preform of silica for use in the manufacture
of telecommunication grade optical fibres
or optical fibre cables. |
5% |
- |
5; |
(iii) after serial number 430 and the entries relating thereto, the following serial number and
entries shall be inserted, namely :-
|
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
|
430A |
Any Chapter |
Charger or adapter, battery, wired headsets for
use in manufacture of mobile
handsets including cellular
phones |
Nil |
- |
5; |
(iv) against serial number 431, in column (3),
in item (i), the words and speakers shall be
omitted;
(v) serial number 431D and entries relating thereto shall
be omitted;
(vi) against serial number 431E,
in column (3), in item
(a), after the words Parts, components and accessories, the brackets and words (except populated printed circuit
boards) shall be inserted;
(vii) against serial number 431F,
in column (3), in item
(a), after the words Parts, components and accessories, the brackets and words (except populated printed circuit boards) shall be inserted;
(viii) against serial number 431G, in column (3), in item (a), after the words
Parts, components and accessories, the brackets and words (except populated printed circuit boards) shall be inserted;
(ix) against serial
number 431H, in column
(3), in item (a), after
the words Parts, components and accessories, the brackets and words (except populated printed circuit
boards) shall be inserted;
(x) against serial
number 431-I, in column
(3), in item (a), after the words
Parts, components and accessories, the brackets and words (except populated printed circuit boards) shall be inserted;
(xi) against serial
number 431J, in column (3),
in item (a), after
the words Parts, components and accessories, the brackets and words (except populated printed circuit boards) shall be inserted;
(xii) against serial number 431K, in column (3), in item (a), after the words
Parts, components and accessories, the brackets and words (except populated printed circuit boards) shall be inserted;
(xiii) after serial number 431K and the entries relating thereto, the following serial number and entries shall be inserted, namely :-
|
431L |
Any Chapter |
(a) |
Parts or components for use in manufacture
of populated printed circuit board
of,- |
Nil |
- |
5 |
|
|
|
|
(i)
Lithium-ion battery other
than battery for
mobile handset [tariff
item
8507 60 00]; |
|
|
|
|
|
|
|
(ii) Broadband modem [tariff item 8517
62 30]; |
|
|
|
|
|
|
|
(iii) Router
[tariff item
8517 69 30]; |
|
|
|
|
|
|
|
(iv) Set-top
box for gaining access to internet [tariff
item 8517 69 60]; |
|
|
|
|
|
|
|
(v) Digital Video
Recorder (DVR)/Network Video Recorder
(NVR) [tariff item 8521
90 90]; |
|
|
|
|
|
|
|
(vi) CCTV Camera/IP Camera
[tariff item 8525 20 80]; |
|
|
|
|
|
|
|
(vii) Reception
apparatus for television but not designed to incorporate a video display
[tariff item 8528 71 00]; |
|
|
|
|
|
|
(b) |
Sub-parts for use in the
manufacture of the parts or components in item (a) above. |
Nil |
- |
5 |
(xiv) against serial number 448,
in column (3), for the exisiting entry,
the following entry shall
be substituted, namely:-
Parts, testing equipment, tools and tool-kits for maintenance, repair, and overhauling
of,-
(i) aircraft falling under heading 8802;
or
(ii) components or parts, including engine,
of aircrafts
of heading 8802,
by the units engaged
in such activities.
(xv) after serial number 448A
and the entries relating
thereto, the following serial number and entries shall be inserted, namely:-
|
448B |
8803 |
Components or parts, including
engines, of aircraft of heading 8802 |
Nil |
Nil |
73B |
(B) in
the ANNEXURE,-
(i) for Condition No. 73,
the following Condition shall be substituted,
namely:-
|
Condition No |
Condition |
|
73. |
If,- |
|
|
(A) imported by
units approved by Director General of Civil Aviation in the Ministry of Civil Aviation, for maintenance, repair, or overhauling of- (a) aircraft
registered in India; or (b) aircraft not registered in India,
which are brought into
India for the purpose of flight to or across
India, or for the
purpose of maintenance, repair or overhauling and which are
intended to be removed from India within six
months or for
such periods as
extended by the Director
General of Civil
Aviation, as the case may be;
or (c) aircraft
components or parts, including engines of aircrafts; (B) the importer submits documents
duly certified by the Director
General of Civil Aviation approved Quality Managers of aircraft maintenance organisations indicating such parts, testing equipment,
tools and tool-kits; (C) the importer
maintains a proper account of import, use and consumption of the specified
goods imported for the purpose of servicing, repair and maintenance of
aircrafts, aircraft components, parts including engines of aircrafts and
submits such account periodically to the Commissioner of Customs in such
manner as may be specified by the said Commissioner; (D) the importer, by
the execution of bond, in such form and for such sum as may be specified by
the said Commissioner, binds himself to pay on demand an amount equal to the
duty leviable,- (i)
on parts, tools and tool kits as are not proved to the satisfaction of the
said Commissioner to have been used or consumed for the aforesaid purpose; (ii) on the testing
equipment, as are not proved to the satisfaction of the said Commissioner to
have been installed or otherwise used for the aforesaid purposes, within a period of
three years from the date of importation thereof or within such extended
period as that Commissioner, on being satisfied that there is sufficient
cause for not installing, using or consuming as the case may be, for the
aforesaid purposes within the said period, allow. |
(ii) after
Condition No. 73A, the following
Condition shall be inserted,
namely:-
|
73B |
If the components or
parts, including engines, of aircraft of heading 8802, is imported for
maintenance, repair or overhauling by units approved by the Director General
of Civil Aviation in the Ministry of Civil Aviation for the said purpose and
such components or parts, including engines, of aircraft of heading 8802 are
exported subsequent to such maintenance, repair or overhauling |
[F. No. 334/8/2016-TRU]
Customs Notification No. 31/2016-Customs dated 5
May 2016
In exercise of the powers
conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of
1962), the Central Government, being satisfied that it is necessary in the
public interest so to do, hereby makes the following further amendments in the
notification of the Government of India in the Ministry of Finance (Department
of Revenue) No. 21/2012-Customs, dated
the 17th March, 2012, published in the Gazette of India, Extraordinary,
Part II, Section 3, Sub-section (i), vide number
G.S.R. 194(E), dated the 17th March, 2012, namely:-
In the said notification, in the
Table, -
(i) against serial number
1, in column (3), the words mobile
phones and shall be omitted;
(ii) against
serial number 14D, in column (3),
the words, charger or adapter, battery,
wired headsets and speakers of mobile handsets including cellular phones and
shall be omitted;
(iii) after serial number 14F and the entries relating thereto,
the following serial number and entries shall be inserted, namely :-
|
14G |
Any Chapter |
Charger or adapter, battery,
wired headsets for use in manufacture of mobile handsets including cellular
phones |
Nil |
|
|
|
Provided that the
importer shall comply the procedure specified in the Customs (Import of Goods
at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2016. |
|
(iv) against
serial number 85A, in column (3),
the words and mobile handsets including
cellular phones shall be omitted.
[F.No.334/8/2016-TRU]
Customs Notification No. 32/2016-Customs dated 5
May 2016
In exercise of the powers
conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of
1962), the Central Government, being satisfied that it is necessary in the
public interest so to do, hereby makes the following further amendments in the
notification of the Government of India in the Ministry of Finance (Department
of Revenue) No. 24/2005-Customs, dated
the 1st March, 2005, published in the Gazette of India, Extraordinary, Part
II, Section 3, Sub-section (i) vide number
G.S.R. 122(E), dated the 1st March, 2005, namely :-
In the said notification, in the
table, against serial number 39, in
column (3), the words charger or
adapter, battery, wired headsets and speakers of mobile handsets including
cellular phones and shall be omitted.
[F.No.334/8/2016-TRU]
Wireless
Data Modem Cards with PCMCIA or USB or PCI Express Ports Omitted from 2% Excise
Duty subject to No Cenvat Credit
Excise Notification No. 20 dated 5
May 2016
In exercise of the powers
conferred by sub-section (1) section 5A of the Central Excise Act, 1944 (1 of
1944), the Central Government, being satisfied that it is necessary in the
public interest so to do, hereby makes the following further amendment in the
notification of the Government of India in the Ministry of Finance (Department
of Revenue), No 1/2011-Central Excise,
dated the 1st March, 2011, published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (i), vide
number G.S.R. 116 (E), dated the 1st March, 2011, namely :-
In the said notification, in the
Table, serial number 101 and the
entries relating thereto shall be omitted.
[F.No.
334/8/2016-TRU]
Wireless
Data Modem Cards with PCMCIA or USB or PCI Express Ports Omitted from 6% Excise
Duty Notification
Excise Notification No. 21 dated 5
May 2016
In exercise of the powers
conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1
of 1944), the Central Government, being satisfied that it is necessary in the
public interest so to do, hereby makes the following further amendment in the
notification of the Government of India in the Ministry of Finance (Department
of Revenue), No 2/2011-Central Excise,
dated the 1st March, 2011, published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (i), vide
number G.S.R. 117 (E), dated the 1st March, 2011, namely :-
In the said notification, in the
Table, serial number 61 and the
entries relating thereto shall be omitted.
[F.No.
334/8/2016-TRU]
Excise
Jumbo Exemption Notification - 22-CE/05.05.2016 Amending 12-CE/17.03.2012
Excise Notification No. 22 dated 5
May 2016
In exercise of the powers
conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1
of 1944), the Central Government, being satisfied that it is necessary in the
public interest so to do, hereby makes the following further amendments in the
notification of the Government of India in the Ministry of Finance (Department of
Revenue), No.12/2012-Central Excise,
dated the 17th March, 2012, published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (i) vide
number G.S.R. 163(E), dated the 17th March,2012, namely: -
In the said notification, in the
Table,-
(i) against serial number 189,
in column (4), for the entry 9.5% appearing in both places, the entry 9.35% shall be substituted;
(ii) against
serial number 191, in column (4),
for the entry 9.5%, the entry 9.35%
shall be substituted;
(iii) against
serial number 262B, in column (3),
in item (a), after the words Parts, components and accessories, the brackets
and words (except populated printed circuit boards) shall be inserted;
(iv)
serial numbers 263H and 263-I and
the entries relating thereto shall be omitted;
(v) against
serial number 263K, in column (3),
in item (a), after the words Parts, components and accessories, the brackets
and words (except populated printed circuit boards) shall be inserted;
(vi) against
serial number 263M, in column (3),
in item (a), after the words Parts, components and accessories, the brackets
and words (except populated printed circuit boards) shall be inserted;
(vii) against
serial number 263O, in column (3),
in item (a), after the words Parts, components and accessories, the brackets
and words (except populated printed circuit boards) shall be inserted;
(viii) against
serial number 263Q, in column (3),
in item (a), after the words Parts, components and accessories, the brackets
and words (except populated printed circuit boards) shall be inserted;
(ix) against
serial number 263S, in column (3),
in item (a), after the words Parts, components and accessories, the brackets
and words (except populated printed circuit boards) shall be inserted;
(x) against
serial number 263U, in column (3),
in item (a), after the words Parts, components and accessories, the brackets
and words (except populated printed circuit boards) shall be inserted;
(xi) after serial number 263U and the entries relating thereto,
the following serial number and entries shall be inserted, namely :-
|
263V |
85
or any Chapter |
Populated
printed circuit board of,- |
4% |
16 |
|
|
|
(i) Lithium-ion battery other than battery for mobile
handset [tariff item 8507 60 00]; |
|
|
|
|
|
(ii)
Broadband Modem [tariff item 8517 62 30]; |
|
|
|
|
|
(iii)
Router [tariff item 8517 69 30]; |
|
|
|
|
|
(iv)
Set-top box for gaining access to internet [tariff item 8517 69 60]; |
|
|
|
|
|
(v)
Digital Video Recorder (DVR)/Network Video Recorder (NVR) [tariff item 8521
90 90]; |
|
|
|
|
|
(vi)
CCTV Camera/IP Camera [tariff item 8525 20 80]; |
|
|
|
|
|
(vii)
Reception apparatus for television but not designed to incorporate a video
display [tariff item 8528 71 00]. |
|
|
|
263W |
Any
Chapter |
(a)
Parts or components for use in manufacture of Populated printed circuit board
of,- |
Nil |
2 |
|
|
|
(i) Lithium-ion battery other than battery for mobile
handset [tariff item 8507 60 00]; |
|
|
|
|
|
(ii)
Broadband Modem [tariff item 8517 62 30]; |
|
|
|
|
|
(iii)
Router [tariff item 8517 69 30]; (iv) Set-top box for gaining access to
internet [tariff item 8517 69 60]; |
|
|
|
|
|
(v)
Digital Video Recorder(DVR)/Network Video Recorder (NVR) [tariff item 8521 90
90]; |
|
|
|
|
|
(vi)
CCTV Camera/IP Camera [tariff item 8525 20 80]; |
|
|
|
|
|
(vii)
Reception apparatus for television but not designed to incorporate a video
display [tariff item 8528 71 00]. |
|
|
|
|
|
(b)
Sub-parts for use in the manufacture of the parts or components at (a) above |
Nil |
2 |
(xii) against
serial number 272, in column (3),
the words, and speakers shall be omitted.
(xiii) against
serial number 305, in column (3),
for the existing entry, the following entry shall be substituted, namely:-
Parts, testing equipment, tools
and tool-kits for maintenance, repair, and overhauling (MRO) of,-
(i) aircraft falling under heading 8802; or
(ii) components
or parts, including engine, of aircrafts of heading 8802,
specified against S. No. 448 of
the Table to the notification of the Government of India in the Ministry of
Finance (Department of Revenue), No.12/2012-Customs, dated the 17th March,
2012, published vide number GSR 185(E), dated the 17th March, 2012, for use by
the MRO units:
Provided that the exemption under
this entry shall be subject to the conditions, if any, specified against S. No.
448 of the Table to the said notification No.12/2012-Customs, dated 17th March,
2012.
[F. No.334/8/2016 -TRU]
20% MRP on
Routers
Excise Notification No. 25 (Non Tariff)
dated 5 May 2016 amending 49/2008-Central Excise (N.T.), dated the 24th December, 2008
In exercise of the powers
conferred by sub-sections (1) and (2) of section 4A of the Central Excise Act,
1944 (1 of 1944), the Central Government hereby makes the following further
amendments in the notification of the Government of India in the Ministry of
Finance (Department of Revenue) No. 49/2008-Central
Excise (N.T.), dated the 24th December, 2008, published in the Gazette of
India, Extraordinary, Part II, Section 3, Subsection (i),
vide number G.S.R. 882(E), dated the 24th December, 2008, namely :-
In
the said notification, in the table, after serial number 88 and the entries relating thereto, the following serial number
and entries shall be inserted,
namely :-
|
88A.
|
8517
69 30 |
Routers
|
20.
|
[F.No.334/8/2016-TRU]
Infrastructure
Cess under Clause 159 of Finance Bill, 2016
Excise Notification No. 26 (Non Tariff) dated 5 May 2016
In exercise of the powers
conferred by rule 18 or rule 19, as the case may be, of the Central Excise
Rules, 2002, the Central Government, being satisfied that it is necessary and
expedient in the public interest so to do, hereby directs that each of the notifications
of the Government of India in the Ministry of Finance (Department of Revenue),
specified in column (2) of Table below, shall be further amended, in the manner
specified in the corresponding entry in column (3) of the said Table, namely:-
|
Table |
||
|
S.No. |
Notification No. and date |
Amendments |
|
(1) |
(2) |
(3) |
|
1. |
No. 42/2001-CE(NT) dated the
26thJune, 2001 [G.S.R. 471(E), dated the 26th June, 2001] |
In the said notification, in
Explanation-III, after item (i), the following item
shall be inserted, namely:- "( j) Infrastructure Cess leviable under sub-clause
(1) of clause 159 of the Finance Bill, 2016, which clause has, by virtue of
the declaration made in the said Finance Bill under the Provisional Collection
of Taxes Act, 1931 (16 of 1931), the force of law.". |
|
2. |
No. 43/2001-CE(NT) dated the
26thJune, 2001 [G.S.R. 472(E), dated the 26th June, 2001] |
In the said notification, in
Explanation-I, after item (i), the following item
shall be inserted, namely:- "( j) Infrastructure Cess leviable under sub-clause
(1) of clause 159 of the Finance Bill, 2016, which clause has, by virtue of
the declaration made in the said Finance Bill under the Provisional
Collection of Taxes Act, 1931 (16 of 1931), the force of law.". |
|
3. |
No. 19/2004-CE(NT) dated the 6th
September, 2004 [G.S.R. 570(E), dated the 6th September, 2004] |
In the said notification, in
Explanation-I, after item (i), the following item
shall be inserted, namely:- "( j) Infrastructure Cess leviable under sub-clause
(1) of clause 159 of the Finance Bill, 2016, which clause has, by virtue of
the declaration made in the said Finance Bill under the Provisional
Collection of Taxes Act, 1931 (16 of 1931), the force of law.". |
|
4. |
No. 21/2004-CE(NT) dated
6thSeptember, 2004 [G.S.R. 572(E), dated the 6th September, 2004] |
In the said notification, in the
Explanation, for (i)
Secondary and Higher Education Cess on excisable
goods leviable under clause (126) read with
clause(128) of the Finance Bill, 2007, which has, by virtue of declaration
made in the said Finance Bill under the Provisional Collection of Taxes Act,
1931 (16 of 1931), the force of law., the following shall be substituted,
namely,- "(j) Secondary and Higher
Education Cess on excisable goods leviable under clause (126) read with clause(128) of the
Finance Bill, 2007, which has, by virtue of declaration made in the said
Finance Bill under the Provisional Collection of Taxes Act, 1931 (16 of
1931), the force of law. (k) Infrastructure Cess, leviable under sub-clause
(1) of clause 159 of the Finance Bill, 2016, which clause has, by virtue of
the declaration made in the said Finance Bill under the Provisional
Collection of Taxes Act, 1931 (16 of 1931), the force of law.". |
[F. No.334/8/2016-TRU]