Budget 2013-2014
Circular from TRU, Department of Revenue
[D.O.F.No.334/ 3/2013-TRU dated 28.02.2013]
The
Finance Minister has introduced the Finance Bill, 2013 in Lok
Sabha today, i.e., 28th February, 2013. Changes in
Customs and Central Excise law and rates of duty have been proposed through the
Finance Bill, 2013 (clauses 54 to 77 for Customs and clauses 78 to 92 for
Central Excise). In order to prescribe effective rates of duty and to carry out
changes in the Rules made under the respective Acts, the following
notifications are being issued:
|
|
Notification Nos |
Date |
|
Customs |
||
|
Tariff |
No. 9 /2013-Customs to
No.15/2013-Customs |
1st March, 2013 |
|
Non-Tariff |
No. 25 /2013-Customs(NT) |
1st March, 2013 |
|
Central Excise |
||
|
Tariff |
No. 5 /2013-CE to No. 12/2013-CE |
1st March, 2013 |
|
Non-Tariff |
No. 1 /2013-CE (NT) to No. 4/2013-CE
(NT) |
1st March, 2013 |
Unless otherwise stated, all changes in
rates of duty take effect from the midnight of 28th February/1st March, 2013. A
declaration has been made under the Provisional Collection of Taxes Act, 1931
in respect of clauses 76, 77(b), 91 and 92 of the Finance Bill, 2013 so that
changes proposed therein also take effect from the midnight of 28th February/1st
March, 2013. The remaining legislative changes would come into effect only upon
the enactment of the Finance Bill, 2013. Retrospective amendments in the
provisions of law or notification issued under the respective Acts shall have
the force of law only upon the enactment of the Finance Bill, 2013 but with
effect from the date indicated in the relevant clause or Schedule. These dates
may be carefully noted.
2. Important changes
in respect of Customs and Central Excise duty and legislative changes are
contained in the three Annexes appended to this letter. Annex I contains
Chapter wise changes relating to Customs; Annex II contains Chapter wise
changes relating to Central Excise. These Annexes also contain a few
clarifications. Annex III provides a bird’s eye view of legislative changes
proposed in the Finance Bill, 2013.
2.1 The Annexes provide a summary of the changes
made and should not be used in any quasi-judicial or judicial proceedings,
where only the relevant legal texts need to be referred to.
3. In order to achieve a sharper focus, I have
alluded only to the key highlights of the budgetary changes in this
communication. The details are contained in the Finance Bill and notifications
which alone have legal force. My team and I have made every possible effort to
avoid the occurrence of errors or mistakes in the Budget documents. However,
given the scale of changes, inadvertent errors cannot be ruled out. I shall be
grateful if the provisions of the Finance Bill are studied carefully and feedback
on issues that may need clarification is provided urgently.
4. It may kindly be ensured that the changes are
implemented in a smooth manner without causing any inconvenience to the
taxpayers and other stakeholders. All possible efforts may be made to guide the
taxpayers by holding interactive sessions/ seminars for their benefit. In case
of any doubt or difficulty, I would request you to kindly bring it to my notice
immediately or to the notice of Shri Amitabh Kumar,
Director (TRU) (Tel No.011-23092236; e-mail: amitabh.kumar@nic.in, Sh. G. G. Pai, Director (TRU) (Tel No. 011-23092753; e-mail:
giridhar.pai@nic.in or Sh. Prashant Kumar Jha, Budget Officer (TRU) (Tel No. 011-23094819; e-mail: prashantk.jha@nic.in ). We can also be reached at
budget-cbec@nic.in.
5. Copies of Finance Bill, 2013, Finance
Minister’s Budget Speech, Explanatory Memorandum to the Bill, relevant
notifications can be downloaded directly from www.indiabudget.nic.in as well as
www.cbec.gov.in.
6. To conclude, my
team and I would like to express my gratitude to you for the valuable
suggestions, feedback and support and would look forward to your comments/
suggestions.
Customs
Explanatory
Memoranda to notification Nos. 09 to 15/2013-Customs, dated 01-03-2013.
|
Notification
No. |
Description |
|
09/01.03.2013 |
Seeks to amend
notification No. 69/2004-Customs, dated the 9th July, 2004, so as to review
the existing entries therein and make necessary changes. |
|
10/01.03.2013 |
Seeks to amend
notification No. 75/2005-Customs, dated the 22nd July, 2005 so as to make
editorial changes in column (2) of S. No. 118, to align it with HS 2012. |
|
11/01.03.2013 |
Seeks to amend
notification No. 9/2012-Customs, dated the 9th March, 2012, so as to revise
the variation limit in respect to height and circumference in case of
reimport of cut and polished diamond. |
|
12/01.03.2013 |
Seeks to amend
notification No. 12/2012-Customs, dated the 17th March, 2012, so as to make
necessary changes in the specified entries therein. |
|
13/01.03.2013 |
Seeks to
rescind the notifications No. 19/2012-Customs, dated the 17th March, 2012,
and No. 20/2012-Customs, dated the 17th March, 2012. |
|
14/01.03.2013 |
Seeks to amend
notification No. 146/94-Customs, dated the 13th July, 1994, so as to exempt
“Trophy” when imported into India by the National Sports Federation or any
other registered sports body, for being awarded to the winning team in the
international tournament to be held in India. |
|
15/01.03.2013 |
Seeks to amend
notification No.27/2011-Customs, dated the 1st March, 2011, so as to specify
effective rates of export duty on specified goods. |
Explanatory Memorandum to
notification No. 25/2013-Customs (N.T.) dated 01-03-2013.
|
Notification No. |
Description |
|
25-Cus(NT)/01.03.2013 |
Seeks to further amend notification
No. 30/98-Customs (N.T.), dated 2nd June, 1998, so as to raise the value
limit of Jewellery allowed duty free to an Indian passengers who has been residing abroad for
more than one year. |
Chapter 1 to 7
No change
Chapter 8
8.1 The basic customs duty (BCD) on
hazel nuts is being reduced from 30% to 10%. Notification No.12/2012-Customs,
dated 1st March, 2012 as amended by notification No. 12/2013-Customs, dated 1st
March, 2013 refers. S. No. 23A contains the changes.
8.2 In notification No 12/2012-Customs,
at S. No. 24 of the Table, sub-heading 0802 50 00 (Pistachios) is being
replaced by sub-headings 0802 51 00 and 0802 52 00. This is a technical
rectification.
Chapter 9 to 10
No change
Chapter 11
11.1 The BCD on de-hulled oat grain is
being reduced from 30% to 15%. Notification No.12/2012-Customs, dated 1st
March, 2012 as amended by notification No. 12/2013-Customs, dated 1st March,
2013 refers. S. No. 38A contains the changes.
Chapter 12 and 14
No change.
Chapter 15
15.1 Peanut butter is presently
classified under sub-heading 1517 90 20 of the Customs Tariff whereas, under
the Harmonised System, peanut butter is classified
under sub-heading 2008 11. To align our Tariff Schedule with HSN, an amendment
has been proposed in the Finance Bill, 2013 (Clause 76 read with Third
Schedule) to delete the current sub-heading 1517 90 20 and entries relating
thereto from the Tariff. By virtue of this amendment, hereafter, the peanut
butter will fall under sub-heading 2008 11, which is the correct classification
as per the HSN.
15.2
Presently, peanut butter attracts a concessional BCD of 7.5% under notification
No. 12/2012-Customs (S. No 71 of the Table). In view of the amendment referred
to above, sub-heading 1517 90 20 is being deleted from S. No. 71. However, the
concessional duty is being continued under notification No. 12/2012-Customs at
new S. No. 88A. In the connection, notification No. 12/2013-Customs refers.
Chapter 16
No change
Chapter 17
17.1 Raw sugar, white or refined sugar
(1701) has been included in the Second Schedule to the Customs Tariff Act, 1975
(Export Schedule) vide Clause 77 read with Fourth Schedule of the Finance Bill,
2013 with a tariff rate of 20%. Exemption is however provided under
notification No 27/2011-Customs dated 1.3.2011, as amended by notification No
15/2013-Customs, dated the 1st March 2013. Thus, raw sugar, white or refined
sugar will not attract any export duty.
Chapter 18-22
No change
Chapter 23
23.1 De-oiled rice bran oil cake is
being exempted from export duty. S. No. 12 of notification No. 27/2011-Customs,
dated 1st March 2011, as amended by notification No.15/2013-Customs, dated 1st
March 2013 refers.
Chapter 24 and 25
No change
Chapter 26
26.1 Bauxite and ilmenite
are being incorporated in the Second Schedule to the Customs Tariff Act, 1975
(Export Schedule) with a tariff rate of 30%. (Clause 77 read with the Fourth
Schedule to the Finance Bill, 2013). However, the effective duty is being
prescribed at 10% on bauxite (2606 0010 and 2606 0020) and unprocessed ilmenite (2614 0010) and at 5% on upgraded ilmenite (2614 00 20). In this connection, notification No.
27/2011-Customs dated the 1st March as amended by notification
No.15/2013-Customs, dated 1st March 2013 refers. New S. Nos. 24A, 24B, 24C and
24D contain the changes. By virtue of the Provisional Collection of Taxes Act,
1931, the levies will come into force with immediate effect.
Chapter 27
27.1 The BCD on bituminous coal is
being reduced from 5 % to 2 % and CVD from 6 % to 2 %. The BCD on steam coal is
being raised from Nil to 2% and CVD from 1% to 2%. Hereafter, both steam coal
and bituminous coal will attract a uniform rate of 2% BCD and 2% CVD.
Notification No.12/2012-Cus, as amended by notification No. 12/2013-Customs
refers. Changes are contained in S. Nos 122 A, 123
and 124 of the Table.
Chapter 28-49
No
change.
Chapter 50
50.1 The BCD on raw silk is being
increased from 5% to 15%. S. No.276 of notification No.12/2012-Customs, as
amended by notification No.12 /2013-Customs, dated the 1st March 2013 refers.
Chapter 51 and 52
No change
Chapter 53
53.1 Presently, coir yarn (53.08) is
mentioned at S. No. 43 of notification No. 27/2011-Customs. In column (4),
which is presently blank, the entry Nil is being inserted. This is a technical
rectification. In this connection, notification No.15 /2013-Customs, dated the
1st March 2013 refers.
Chapter 54 – 70
No change
Chapter 71
71.1 Basic customs duty is being
reduced on pre-forms of precious and semi-precious stones from 10% to 2%.
Notification No.12/2012-Customs, dated 1st March, 2012 as amended by
notification No.12/2013-Customs, dated 1st March, 2013 refers. S. No.312A contains
the changes.
71.2. Under the Foreign Trade Policy
(paragraph 4A.2.2), an exporter with annual export turnover of Rs 5 crore for each of the last
three years is allowed to export cut & polished diamonds (each of 0.25
carat or more) abroad to any of the designated laboratories/agencies with
re-import facility at zero duty within 3 months from the date of export. In
this regard, a variance not exceeding +_1mm in height and circumference and not
exceeding +_1 cent in weight is allowed between exported and re-imported cut
and polished diamonds. In this connection, Explanation 1 of notification No.
9/2012-Customs, dated the 9th March, 2012 refers. This limit is being revised
in respect of height and circumference from +_1 mm to +_0.01 mm. The variation
in respect of weight shall remain unchanged. Notification No. 9/2012-Customs,
dated the 9th March, 2012 as amended by notification No. 11/2013-Customs, dated
the 1st March, 2013 may be referred to for details.
Chapter 72
72.1
Flat rolled products of iron or non-alloy steel, plated or coated with zinc
(sub-headings 7210 30 10, 7210 30 90, 7210 41 00, 7210 49 00, 7212 20 10, 7212
20 90, 7212 30 10 and 7212 30 90) are being exempted from export duty
retrospectively from 1st March 2011. In this connection, clauses 75 and 77 of
the Finance Bill, 2013 may be referred to for details. The changes will come
into force upon enactment of the Finance Bill. In the meanwhile, export duty
may not be collected on the afore-cited product. Prior to 1st March 2011, this
product was exempt from export duty under notification No. 77/2008-Customs,
dated 13th June 2008.
Chapter 73
73.1. Under notification No
12/2012-Customs (S No. 371), specified goods for manufacture of catalytic
convertors and their parts attract a concessional BCD of 5%. Stainless Steel
Wire Cloth Stripe (sub-heading 7314 14 10) and Wash Coat (sub-heading 3824 90
90) are being added to the list for availing of concessional duty of 5%.
Chapter 74-83: No change.
Chapter 84
84.1 The BCD on 20
specified machinery for use in the leather industry or footwear industry
is being reduced from 7.5% to 5%. Descriptions of certain leather and footwear
machinery items are being modified. S No 390 (List 29) of notification No.
12/2012-Cus, as amended by notification No. 12/2013-Customs, dated the 1st
March 2013 refers.
84.2 The BCD on all textile machinery
and parts thereof falling under headings 8444 to 8449 is being reduced from
7.5% to 5%. Notification No.12/2012-Customs, dated 1st March, 2012 as amended
by notification No. 12/2013-Customs, dated 1st March, 2013 refers. S. No. 406A
contains the changes.
Chapter 85
85.1 The BCD on Integrated Decoder
Receiver, also known as Set Top Box, is being increased from 5% to 10%. S.
No411 of notification No.12/2012-Customs, as amended by notification No. 12
/2013-Customs, dated the 1st March 2013 refers.
85.2
LCD and LED TV Panels of 19” and above are presently exempt from BCD under
notification No 12/2012-Customs (S. No. 432). In this connection, a doubt has
been raised whether this exemption is available for LCD and LED TV Modules or
otherwise. It is clarified that LCD and LED TV Panels and LCD and LED TV
Modules are one and the same thing for the purpose of exemption under this
notification.
85.3 Presently, all goods required for
the manufacture of the goods falling under heading 8541 are exempt from BCD
subject to actual user condition. Solar cells and solar modules are classified
under heading 85.41. It has been brought to the notice of the Ministry that
this exemption has been denied at certain places although the imported goods
are required for the manufacture of solar cells and solar modules. It is
clarified that the BCD exemption under S No 39 of notification No.
24/2005-Customs, dated 1st March, 2005 is available to all goods including
chemicals and electronic parts required for the manufacture of solar cells
whether or not assembled in modules or panels.
Chapter 86
No change
Chapter 87
87.1 The validity period of exemption
granted to identified parts of hybrid and electric
vehicles is being extended by two more years up to 31st March, 2015. Clauses
(g) and (h) of Proviso to notification No.12/2012-Customs, as amended by
notification No. 12/2013-Customs, dated the 1st March 2013 refers.
87.2 BCD is being exempted on lithium
ion automotive battery for manufacture of lithium ion battery packs for supply
to the manufacturers of hybrid and electric vehicles. Notification
No.12/2012-Customs (S. No 438), as amended by notification No.
12/2013-Customs, dated the 1st March 2013 refers.
87.3 At present, cars and other motor
vehicles, new with FOB value more than US $ 40,000 and with engine capacity
more than 3000 cc for petrol-run vehicles and more than 2500 cc for diesel-run
vehicles attract a BCD of 75%. In this connection, notification No 12/2012-
Customs (S No 437, (2) (a) of the Table) refers. The entry is being amended to
read: “...with CIF value more than US $ 40,000 or with engine capacity more
than 3000 cc for petrol-run vehicles and more than 2500 cc for diesel-run
vehicles or with both”. Further, the BCD on these cars/motor vehicles is being
increased from 75% to 100%. Thus, hereafter, these cars/ motor vehicles with
CIF value more than US $ 40,000 would attract 100% BCD regardless of engine
capacity. Similarly, regardless of value, cars/motor vehicles with engine
capacity more than 3000 cc for petrol-run vehicles and more than 2500 cc for
diesel-run vehicles would attract BCD at 100%. S. No 437 of notification
No.12/2012-Cus, as amended by notification No. 12/2013-Cus, dated the 1st March
2013 refers.
87.4
The BCD on import of old cars is being increased from 100% to 125%. Clause 76
of the Finance Bill 2013 refers. By virtue of the Provisional Collection of
Taxes Act, 1931, the levy will come into force with immediate effect.
87.5 The BCD on new motorcycles with
engine capacity of 800cc or more is being increased from 60% to 75%.
Notification No.12/2012-Customs (S No 443), as amended by notification No. 12
/2013-Customs, dated the 1st March 2013 may be referred to for details.
Chapter 88
88.1 Exemption from education cess and secondary & higher education cess is being withdrawn on aeroplanes,
helicopters and their parts. For this purpose, S Nos
51 and 52 and entries relating thereto are being deleted from notification No
69/2004-Customs, dated 9th July 2004. The relevant entry at
S. No 1 is also being deleted. In this connection, notification No.
9/2013- Customs, dated 1st March 2013 refers.
88.2 The time period for
consumption/installation of parts and testing equipment imported for
maintenance, repair and overhaul (MRO) of aircraft by units engaged in such activities
is being increased from 3 months to 1 year. S. No.448 of notification
No.12/2012-Customs (Condition 73), as amended by notification No.
12/2013-Customs, dated the 1st March 2013 refers.
88.3 The customs duty exemption on
parts and testing equipment for maintenance, repair and overhauling of aircraft
is being extended to parts and testing equipment for maintenance repair &
overhauling of aircraft and aircraft parts. S. No.448 of notification
No.12/2012-Customs, as amended by notification No. 12/2013-Customs, dated the
1st March 2013 refers.
88.4 Private category aircrafts are
being included in the list of eligible categories of aircrafts for the purpose
of availing of the exemption under notification No 12/2012- Customs. S. No.448
of notification No.12/2012-Customs, as amended by notification No.
12/2013-Customs, dated the 1st March 2013 refers.
88.5
The terms “scheduled air transport service” and “scheduled air cargo service”
are explained in condition No. 75 of notification No. 12/2012-Cus dated
17.3.2012. In this connection, a doubt has been raised whether exemption
granted to parts and testing equipment imported for servicing, repair or
maintenance of scheduled airlines includes foreign airlines or otherwise. Under
S. Nos. 448 and 454 of the notification No. 12/2012-Customs read with condition
Nos. 73 and 21 respectively, exemption has been provided for servicing, repair
or maintenance of aircraft used for operating “scheduled air transport service”
and “scheduled air cargo service”. The term “scheduled air transport service”/
“scheduled air cargo service”, as defined under condition No 75 of the
afore-said notification, does not exclude foreign airlines. It is as such
clarified that the aforesaid exemption available for “scheduled air transport service”
and “scheduled air cargo service” includes foreign airlines that meet the
definition of scheduled air transport and air cargo service.
88.6 Under S. No. 450 of the
notification No. 12/2012-Customs read with condition 75 (ii), a foreign
registered aircraft, that is brought into India for the purpose of “a flight to
or across India” and which is intended to be removed within the time period
specified for the purpose, is exempt from customs duty. In this connection,
doubts have been raised whether the term “a flight to India” means “one landing
and one take off” or it entitles the aircraft to fly to different destinations
within India during the stipulated period of stay in India. The matter has been
examined and it is clarified that the term “a flight to India” by a foreign
registered non-scheduled aircraft shall mean a flight which after completion of
its itinerary (which may include multiple destinations in India) leaves India
within the stipulated period of 15 days, or as extended by the competent authority
in the Ministry of Civil Aviation, not exceeding 60 days from the date of
entry.
Chapter 89
89.1 By virtue of excise duty exemption
on ships and vessels (89.01, 89. 04, 89.05 and 89.06 90 00), there will no CVD leviable on these ships and vessels. Notification
Nos. 19/2012-Customs and 20-2012-Customs, both dated 17th March 2012 and S.
No 462 of notification No. 12/2012-Customs, which have become redundant due to
excise duty exemption, are being rescinded.
89.2 Basic customs duty on yachts and
other vessels (89.03) is being increased from 10% to 25%. Clause 76 of the
finance Bill, 2013 refers. By virtue of the Provisional Collection of Taxes
Act, 1931, the levy will come into force with immediate effect.
89.3 The time limit for consumption of
imported goods for the purpose of repair of ocean going vessels by ship repair
units is being increased from 3 months to 1 year. S. Nos.459 and 460 of
notification No.12/2012-Customs (Conditions 79 and 80), as amended by
notification No. 12/2013-Customs, dated the 1st March 2013 refers.
Chapter 90-98
No change.
Miscellaneous
(i)
Full exemption is being provided to trophy when imported into India by National
Sports Federation recognized by the Central Government or any Sports Body
registered under any law for the time being in force in connection with
international tournament to be held in India. Notification No.
146/1994-Customs, dated the 13th July, 1994 as amended by notification No.
14/2013-Customs, dated the 1st March 2013 refers.
(ii) Notification No 75/2005-Customs,
dated 22nd July 2005 (India- Singapore FTA) is being amended to replace the
sub-heading 2920 90 90 with the sub-heading 2920 90 99. This is a technical
rectification.
(iii) Exemption from education cess and secondary & higher education cess is being withdrawn on soya bean oil, olive oil and a
few other items. Accordingly, S. Nos. 5, 6, 7, 8, 13, 51& 52 and entries
relating thereto are being deleted from notification No 69/2004-Customs, dated
9th July 2004. In the said notification, at various places, references have
been made to exemptions contained in erstwhile notification No.
21/2002-Customs, dated 1st March, 2002. The entries showing notification No.
21/2002-Customs (S. Nos. 9, 10, 12, 55) are being replaced by the relevant S.
Nos. of notification No.12/2012 –Customs. This is a technical rectification.
Notification No.69/2004-Customs as amended by notification No. 9/2013 –Customs,
dated 1st March, 2013 may be referred to for details.
Baggage Rules
Presently, under Rule 6 of the Baggage
Rules, 1998, an Indian passenger, who has been residing abroad for over one
year, is permitted to bring jewellery without payment
of duty up to an aggregate value of Rs 10,000/- in case of a gentleman
passenger and Rs 20,000/- in case of a lady passenger. Under Rule 8 of the
Baggage Rules,1998, a person who is transferring his residence ( Transfer of
Residence) to India is also allowed to bring jewellery
without payment of duty up to an aggregate value of Rs 10,000/- in case of a
gentleman passenger and Rs 20,000/- in case of a lady passenger. The duty free
limits are being raised to Rs 50,000/- in case of a gentleman passenger and Rs
100,000/- in case of a lady passenger.
Presently, under Rule 10 of the Baggage
Rules, 1998, a crew member of the vessel/aircraft is allowed to bring duty free
items like chocolates, cheese, cosmetics etc. for their personal or family use
up to a value of Rs 600. The duty free allowance is being increased from Rs 600
to Rs 1500.
Notification
No 25/2013-Customs (NT), dated 1st March, 2013 which contains these changes may
be referred to for details.
Central Excise
Explanatory
Memoranda to notification Nos. 5 to 12/2013-Central Excise, dated 01-03-2013
|
Notification No. |
Description |
|
05-CE/01.03.2013 |
Seeks to amend notification No.
17/2007- CE, dated the 1st March, 2007 so as to increase the compound levy
rate of duty for Stainless pattis/pattas from Rupees Thirty Thousand to Rupees Forty
Thousand per cold rolling machine, per month. |
|
06-CE/01.03.2013
|
Seeks to rescind notification No.
20/2011- CE, dated the 24th March, 2011 relating to 1% excise duty on Mobile
handsets including Cellular phones. |
|
07-CE/01.03.2013 |
Seeks to provide exemption to
intermediate goods captively consumed in the
manufacture of goods by units availing Area Based Exemption in the State of
Himachal Pradesh and Uttarakhand. |
|
08-CE/01.03.2013 |
Seeks to amend notification No.
7/2012- CE, dated the 17th March, 2012, so as to prescribe 6% rate of excise
duty to branded readymade garments and made ups of cotton, not containing any
other textile materials. |
|
09-CE/01.03.2013 |
Seeks to amend notification No.
1/2011- CE, dated the 1st March, 2011, so as to omit the entry relating to
specified goods. |
|
10-CE/01.03.2013 |
Seeks to amend notification No.
2/2011-CE, dated the 1st March, 2011, so as to omit the entry relating to
handmade carpets and other carpets and floor coverings of Jute and Coir. |
|
11-CE/01.03.2013 |
Seeks to amend notification
No.30/2004-CE, dated the 9th July, 2004, so as to provide ‘zero excise duty
route’ to branded ready- made garments and made-ups. |
|
12-CE/01.03.2013 |
Seeks to amend notification No.
12/2012 – CE, dated the 17th March, 2012, so as to make necessary amendments
in the specified entries thererin. |
Explanatory Memoranda to notification
Nos. 1 to 4/2013-Central Excise (N.T.), dated 01-03-2013.
|
Notification No. |
Description |
|
01-CE(NT)/01.03.2013 |
Seeks to amend notification No.
49/2008- CE (N.T.), dated the 24th December, 2008, so as to prescribe MRP
based assessment with 35% abatement thereon, for branded medicaments used in Ayurvedic, Unani, Sidha, Homeopathic or Bio-Chemic systems and to align the
tariff lines relating to Pressure Cooker with HS 2012. |
|
02-CE(NT)/01.03.2013 |
Seeks to further amend the
notification No. 04/2002-CE (N.T.), dated 1st March, 2002 so as to make
provision for interest on refund, subject to sub-rule (6), arising out of an
order of final assessment under sub-rule (3) of rule 7 of the Central Excise
Rules, 2002. |
|
03-CE(NT)/01.03.2013 |
Seeks to amend the notification No.
23/2004-CE (N.T.), dated 10th September, 2004, so as to provide a mode of
recovery of CENVAT credit wrongly taken, under the CENVAT Credit Rules, 2004.
|
|
04-CE(NT)/01.03.2013 |
Seeks to notify “the resident public
limited company” as a class of persons under the sub-clause (iii) of clause
(c) of section 23A of Central Excise Act, 1944. |
Chapter 1 to 10
No change
Chapter 11
11.1 Tapioca starch manufactured and
consumed captively in the manufacture of tapioca sago
(sabudana) is being exempted from excise duty.
Notification No.12/2012-CE, dated 17th March, 2012 as amended by notification
No. 12/2013-CE, dated the 1st March 2013 refers. S. No 8A contains the changes.
Chapter 12-14
No change
Chapter 15
15.1 Sub-heading 1517 90 20 (peanut
butter) is being deleted from the First Schedule to the Central Excise Tariff
Act, 1985. An amendment has been proposed in the Finance Bill, 2013 (Clause 92
read with the Sixth Schedule) to delete the current sub-heading 1517 90 20 and
entries relating thereto from the Tariff. Hereafter, peanut butter will be
classified under sub-heading 2008 11 00. At present, sub-heading 1517 90 20 as
well as sub-heading 2008 11 00 of the Central Excise Tariff carries a tariff
rate of 6%. However, the applied rate is Nil for sub-heading 1517 90 20. The
exemption is being continued. In this connection, notification No. 12/2012-CE,
as amended by notification No.12/2013-CE, dated 1st March, 2013 refers. S. No
13A contains the changes.
Chapter 16-18
No change
Chapter 19
19.1 Tapioca sago (Sabudana)
is being exempted from excise duty. Notification No.12/2012-CE, as amended by
notification No. 12/2013-CE, dated the 1st March 2013 refers. S. No 24A
contains the changes.
Chapter 20 -23
No change
Chapter 24
24.1
Basic excise duty on cigarettes and other products of tariff heading 2402 is
being increased. Clause 92 of the Finance Bill, 2013 read with the Sixth
Schedule may be referred to for details. By virtue of the Provisional
Collection of Taxes Act, 1931, the levies will come into force with immediate
effect. There is no change in NCCD and Health Cess
rates. The changes in basic excise duty rates are summarized below.
Cigarettes:
|
Tariff Item |
Description (length in mm) |
BED Rs. per
1000 sticks (Existing Rate) |
BED Rs. per
1000 sticks (New Rate) |
|
24022010 |
Non filter not exceeding 65 |
509 |
No change |
|
24022020 |
Non-filter exceeding 65 but not
exceeding 70 |
1463 |
1772 |
|
24022030 |
Filter not exceeding 65 |
509 |
No change |
|
24022040 |
Filter exceeding 65 but not exceeding
70 |
1034 |
1249 |
|
24022050 |
Filter exceeding 70 but not exceeding
75 |
1463 |
1772 |
|
24022060 |
Filter exceeding 75 but not exceeding
85 |
1974 |
2390 |
|
24022090 |
Other |
2373 |
2875 |
Cigar, Cheroots and
Cigarillos:
|
Tariff Item |
Description |
BED (Existing Rate) |
BED (New Rate) |
|
2402 10 10 |
Cigar and cheroots |
12% or Rs.1370 whichever is higher |
12% or Rs.1781 whichever is higher |
|
2402 10 20 |
Cigarillos |
12% or Rs.1370 whichever is higher |
12% or Rs.1781 whichever is higher |
|
2402 90 10 |
Cigarettes of Tobacco Substitutes |
Rs.1258 per thousand |
Rs.1511 per thousand |
|
2402 90 20 |
Cigarillos of Tobacco Substitutes |
10% or Rs.1473 whichever is higher |
12% or Rs.1738 whichever is higher |
|
2402 90 90 |
Other |
10% or Rs.1473 whichever is higher |
12% or Rs.1738 whichever is higher |
Chapter 25
25.1.
Basic excise duty is being increased on marble slabs and tiles from ` 30 per
square meter to ` 60 per square meter. S.No.54 of notification No.12/2012-CE,
as amended by notification No. 12/2013-CE, dated the 1st March 2013 refers.
25.2 Under notification No.12/2012-CE
(S.No.55), sulphur recovered as by product in
refining of crude oil (sub-heading 2503 00 10) used for the manufacture of fertilisers is exempt from excise duty.
"Fertilizers" include bentonite sulphur and hence, sulphur under
sub-heading 2503 00 10 used for manufacture of bentonite
sulphur is exempt from excise duty. An Explanation
has been inserted below the entry against S. No.55 to place the matter beyond
doubt. Notification No. 12/2013-CE dated 1st March, 2013 may be referred to for
details.
Chapter 26-29
No change
Chapter 30
30.1 Branded Ayurvedic
medicaments and medicaments of Unani, Siddha,
Homeopathy or Bio-chemic system are being brought under MRP based assessment
with an abatement of 35% from the MRP. Ayurvedic
medicaments as well as medicaments of Unani, Siddha,
Homeopathy or Bio-chemic System (generic as well as branded) have been included
in the Third Schedule to the Central Excise Tariff Act, 1944. In this
connection, clause 91 of the Finance Bill 2013 read with the Fifth Schedule and
notification No. 1/2013-C.E. (NT) dated 1st March, 2013 refer. By virtue of the
Provisional Collection of Taxes Act, 1931, the changes will come into force
with immediate effect.
Chapter 31 and 32
No change
Chapter 33
33.1 Henna powder or paste, not
mixed with any other ingredient is being exempted from excise duty. S No 134 of
notification No 12/2012-CE, as amended by notification No 12/2013-CE, dated 1st
March 2013 refers.
Chapter 34 -38
No change.
Chapter 39
39.1 S. No. 146 and the entries
relating thereto are being deleted from notification No. 12/2012-CE, as a
general exemption is being issued. Notification No. 7/2013-CE dated 1st March
2013 may be referred to for details.
Chapter 40-56
No change.
Chapter 57
57.1 All handmade carpets and carpets
& other textile floor coverings of coir and jute, whether or not handmade,
falling under Chapter 57, are being fully exempted from excise duty. In this
connection, notification No. 12/2012-CE as amended by notification No.
12/2013-C.E. dated 1st March, 2013 refers. S. No 173A contains the changes.
Consequently, the entries against S. No. 72 of notification No. 1/2011-CE,
dated 1st March, 2011 and S. No. 37 of notification No. 2/2011-CE, dated 1st
March, 2011 are being omitted. Notification No. 9/2013-CE and 10/2013-CE, both
dated 1st March, 2013 may be referred to.
Chapter 58-60
No change.
Chapter 61-63
61.1 Zero excise duty route, as existed
prior to Budget 2011-12, is being restored on readymade garments and made ups.
The zero excise duty route will now be available in
addition to the CENVAT route under which manufacturers can pay excise duty on
the final product and avail of credit of duty paid on inputs. S.No.16 of
notification No. 30/2004-CE dated the 9th July, 2004 as amended by notification
No.11/2013-CE dated the 1st March, 2013 and S. No.7 of notification No.
7/2012-CE dated 17th March,2012, as amended by notification No. 8/2013- CE
dated the 1st March, 2013 may be referred to for details.
Chapter 64 to 67
No change
Chapter 68
68.1 Excise duty on marble slabs and
tiles is being increased from ` 30 per square meter to ` 60 per square meter.
S. No. 54 of the notification No. 12/2012-CE, as amended by notification
No.12/2013-CE dated 1st March, 2013 refers.
Chapter 69 to 70
No change
Chapter 71
71.1 Excise duty of 4% is being imposed
on silver produced or manufactured during the process of zinc or lead smelting
starting from the stage of zinc or lead ore or concentrate. Notification
No.12/2012-CE, as amended by notification No.12/2013-CE, dated the 1st March
2013 refers. S. No 191A contains the changes.
Chapter 72
72.1. The compounded duty rate on
stainless steel “patta- patti”
is being increased from Rs 30,000 per machine per month to Rs 40,000 per
machine per month. Notification No. 17/2007-CE, dated 1st March, 2007 as
amended by notification No. 5/2013-CE, dated 1st March 2013 refers.
Chapter 73
No change
Chapter 74
74.1 Under notification 12/2012-CE (S.
No. 217), trimmed or untrimmed sheets or circles of copper, intended for use in
the manufacture of handicrafts or utensils attract excise duty of Rs 3,500 per
metric tonne. For the purposes of this entry, by way
of an explanation, it is clarified that copper means copper and copper alloys
including brass. Notification No. 12/2012-CE, as amended by notification No.
12/2013-CE dated 1st March, 2013 refers.
Chapter 75
No change.
Chapter 76
76.1. Sub-heading 7615 19 10 (pressure
cookers) is being replaced by sub-heading 7615 10 11 in the Third Schedule to
the Central Excise Act, 1944. An amendment has been proposed in the Finance
Bill, 2013 (Clause 91 read with the Fifth Schedule). This is basically a
technical rectification. In this connection, notification No. 12/2012-CE, as
amended by notification No.12/2013-CE, dated 1st March, 2013 refers. S. No 212
contains the changes. Relevant changes are also being made in notification
No.49/2008(NT) dated 24th December, 2008 as amended by notification No. 1/2013-CE(NT) dated 1st March,2013.
Chapter 77-84
No change.
Chapter 85
85.1 Excise duty on mobile handsets
including cellular phones having retail sale price more than Rs. 2000/- is
being increased from 1% to 6%. The duty on mobile phones priced up to and
inclusive of Rs. 2000 (retail sale price) would remain unchanged. Notification
No. 12/2013-CE, dated 1st March, 2013 (S. No. 263A) provides the details.
Consequently notification No. 20/2011-CE, dated 24th March, 2011 is being
rescinded. Notification No. 6/2013-CE, dated 1st March 2013 refers.
Chapter 86
No change
Chapter 87
87.1 The validity period of
concessional excise duty of 6% granted to specified parts of hybrid and
electric vehicles is being extended by two more years up to 31st March, 2015.
Proviso to notification No.12/2012-C.E, as amended by notification No.
12/2013-CE, dated the 1st March 2013 refers.
87.2 The excise duty on chassis of
diesel motor vehicles for the transport of goods (8706 00 42) is being reduced
from 14% to 13%. In this connection, notification No.12/2012-C.E, as amended by
notification No. 12/2013-CE, dated the 1st March 2013 refers. S. No.s 292A and 292B contain the changes.
87.3 Excise duty on SUVs (including
utility vehicles falling under CTH 8703) and engine capacity >1500 cc is
being increased from 27% to 30 %.( Clause 92 of the Finance Bill, 2013 read
with the Sixth Schedule). The SUV has been defined in the notification No.
12/2013-CE dated 1st March, 2013. S. No. 284A contains the changes. By virtue
of the Provisional Collection of Taxes Act, 1931, the levy will come into force
with immediate effect.
87.4 The taxi refund in respect of SUVs
is being adjusted with a view to ensuring that the duty increase does not
affect SUVs used as taxis. Now, in respect of SUVs the refund of 28% of the
excise duty paid at the time of clearance would be applicable. Notification
No.12/2012-CE, as amended by notification No. 12/2013-CE dated 1st March, 2013
may be referred to for details. S.No.s 284 and 284A
contains the changes.
Chapter 88
No change.
Chapter 89
89.1 Excise duty on ships, tugs and
pusher craft, dredgers and other vessels falling under CETH 8901, 8904, 8905,
8906 90 00 is being exempted. Notification No.12/2012-CE, as amended by
notification No. 12/2013-CE dated 1st March, 2013 may be referred to for
details.
Chapter 90-96
No change.
Miscellaneous:
Goods
manufactured and captively consumed within the
factory of production in the manufacture of final products in respect of which
exemption is claimed under the Area Based Exemption Scheme under notification
Nos. 49/2003-CE and 50/2003-CE, both dated 10th June 2003 (available for Uttarakhand and Himachal Pradesh) is being exempted from
excise duty. Notification No. 7/2013-CE dated the 1st March 2013 may be
referred to for details.
Annex III – Legislative Changes
Advance Ruling
Section 28E of the Customs Act, 1962
defines “advance ruling”. “Advance ruling” means “the determination, by the
Advance Ruling Authority, of a question of law or fact specified in the
application regarding the liability to pay in relation to an activity which is
proposed to be undertaken by the applicant”. “Activity” is defined to mean
“import or export”. The definition of “activity” is being expanded to include
any new business of import or export so as to enable such importer or exporter
to seek advance ruling when he starts a new line of business. Similar amendment
has been proposed in section 23A of the Central Excise Act, 1944. “Activity”
now includes any new business of production or manufacture by the existing
producers or manufacturers. This will enable such producers or manufacturers to
seek advance ruling when starting a new line of business.
Under 23 (C) (e) of the Central Excise
Act, 1944, an advance ruling can be sought, inter- alia, on the issue of
admissibility of credit of excise duty paid or deemed to have been paid on the
goods used in/ in relation to the manufacturer of excisable goods. This section
is being amended so as to extend the advance ruling provisions also to the
admissibility of the credit of service tax paid on or deemed to have been paid
on input services used in the manufacture of excisable goods.
Under section 28E of the Customs Act,
1962, only a select category of persons are eligible for advance ruling. This
includes joint ventures and resident public limited companies. Presently, the
latter category is not eligible for advance ruling under the Central Excise
law. Notifications are being issued to make “resident public limited companies”
eligible for seeking advance ruling on central excise and service tax matters
as is available on the Customs side
Arrests and Prosecutions
Section 104 of the Customs Act, 1962
contains provisions relating to arrest. This section is being amended to make
certain offences punishable under section 135 as non-bailable.
The offences are:
(a) Evasion or attempted evasion of
duty exceeding Rs. fifty lakh;
(b) Prohibited goods notified under section
11 which are also notified under sub-clause (C) of clause (i) of sub-section
(1) of section 135;
(c) Import or export of any goods which
have not been declared in accordance with the provisions of this Act and the
market price of which exceeds Rs. one crore;
(d) Fraudulently availing of or attempt
to avail of drawback or any exemption from duty provided under this Act, if the
amount of drawback or exemption from duty exceeds Rs. fifty lakh.
Barring the offences mentioned above,
all other offences under the Customs Act are bailable.
Similar changes have been proposed in the Central Excise Act, 1944 and Finance
Act, 1994 (relating to Service tax).
Stay Order by Appellate Tribunal and
Other Matters
Section 35C (2A) of the Central Excise
Act, 1944 and the corresponding provisions under section 129B (2A) of the
Customs Act, 1962 are being amended to provide for a maximum ceiling of 365
days up to which the Tribunal can grant stay of recoveries. By inserting a
proviso in the abovementioned sections, it is being stipulated that after 365
days from the stay order, this stay shall stand vacated even if the disposal of
the case is pending for no fault of the assessee. By
virtue of stipulation under section 86(7) of the Finance Act, 1994, the
provisions of the Central Excise Act would be applicable for dispute in Service
Tax matters.
Section 129C is being amended to
enhance the monetary limit of the Single Bench of the Tribunal to hear and
dispose of appeals from Rs.10 lakh to Rs.50 lakh. Corresponding changes have
been made in Section 35D of the Central Excise Act, 1944.
Other Amendments in the Customs Act,
1962
(i) Section 11: “Designs and
geographical indications” have been included along with patents, trade mark and
copy rights to enable the Central government to prohibit either absolutely or
conditionally the import or export of goods to protect these legal rights;
(ii) Section 27: Where the amount of
refund claimed is less than Rs 100/-, the same shall not be refunded;
(iii) Section 28: Show Cause Notice
shall not be served where the amount involved is less than Rs 100/-;
(iv)
Section 28BA: This section is being amended to provide for provisional
attachment of property belonging to any person to whom notice under sub-section
(4) of section 28 has been served.
(v) Section 29: This section is being
amended to empower Board to allow landing of vessels or aircrafts at any place
other than customs ports or customs airports.
(vi)
Section 30 and Section 41: These sections are being amended to provide
for electronic filing of Import General Manifest/Export General Manifest. It is
also being provided that where this is not feasible,
the Commissioner may allow the delivery of such manifest in any other manner.
(vii) Section 47: This section is being
amended reduce the interest free period for payment of import duty from 5 days
to 2 days;
(viii) Section 49: This section deals
with storage of imported goods in a warehouse pending clearance. This section
is amended to provide a time limit of 30 days for storage of goods in the
interest of accountability and early finalization of assessments. The
Commissioner may extend the period of storage for a further period not
exceeding 30 days at a time.
(ix) Section 69: This section deals
with export of warehoused goods. The document listed under the section is
Shipping Bill or Bill of Export. This section is being amended to allow export
of warehoused goods under postal export document;
(x) Section 135: In sub-clauses (B) and
(D) of clause (i) of section 135(1), the threshold limit for punishment in an
offence relating to evasion or attempted evasion of duty or fraudulently
availing of or attempting to avail of drawback or any exemption from duty in
connection with export of goods, has been increased from Rs.30 lakh to Rs.50
lakh.
(xi) Section 142: A new clause (d) is
being inserted in section 142 to provide (i) for recovery of money due to the
Central Government from any other person other than the defaulter after giving
such other person a notice in writing, (ii) that the person to whom such notice
has been issued shall be bound to comply, and (iii) that if the person to whom
the notice is issued fails to comply, he shall be deemed to be a defaulter in
respect of the amount specified in the notice.
(xii) Section 143A is being omitted.
(xiii) Section 144: Sub-section (3) of
section 144 is being amended to remove the duty liability on any sample of
goods which is consumed or destroyed during the course of testing or
examination.
(xiv) Section 146 is being substituted
to change the nomenclature of “customs house agents” to “customs brokers”
considering the global practice and internationally accepted nomenclature.
(xv) Section 146A is being amended so
as to:- (a) substitute the phrase “customs house agent” with the phrase
“customs broker”; (b) include any offence committed under the Finance Act, 1994
as a disqualification for person to act as an authorized representative in
customs matters.
(xvi) Section 147: Sub-section (3) of
section 147 is being amended to expand the scope of the liability of agents of
the owner, importer or exporter of any goods. It now casts equal responsibility
on agents for making correct self-assessment.
Other Amendments in the Central Excise
Act
(i) Section 9 provides that an offence
case involving evasion in which the duty leviable
exceeds thirty lakh rupees shall be punishable with a term of imprisonment
extending to seven years with fine. This section is being amended so as to
substitute the amount of thirty lakh rupees with fifty lakh rupees.
(ii) Section 9A is being amended to
make an offence cognizable and non-bailable where the
duty liability exceeds Rs.50 lakh and punishable under clause (b) or clause (bbbb) of sub-section (1) of section 9.
(iii) Section 11 is being amended so as
to provide for (i) recovery of money due to the Government from any person
other than from whom money is due after giving a proper notice, if that other person
holds money for or on account of the first person; (ii) the other person to
whom
such notice has been issued is bound to
comply and (iii) if the other person to whom the notice is served fails to
comply, he shall face all the consequences under this Act.
(iv) Section 11A is being amended to
insert sub-section (7A) providing that service of a statement containing
details of duty not paid, short levied or erroneously refunded shall be deemed
to be a service of notice under sub-section (1) or (3) or (4) or (5) of this
section.
Reference to sub-section (1) in section
11DDA is being omitted.
(v) Section 20 is being amended so as
to make the provisions applicable only to offence which is non-cognizable.
(vi)
Section 21 is being amended so as to make the provisions regarding
release of arrested person on bail or personal bond applicable only to offence
which is non-cognizable.
(vii) Section 37C is being amended to
specify additional modes of delivery of specified documents i.e. by speed post
with proof of delivery or through courier approved by the Central Board of
Excise & Customs.
These are the broad changes made through the
various clauses of the Finance Bill, 2013. The relevant clauses may kindly be
perused to find out the precise changes made.