TMI BlogMemorandum Part-II (Cen.excise & Cus.)X X X X Extracts X X X X X X X X Extracts X X X X ..... mini cement plant: Cement Present rate Proposed rate 1. Cleared in packaged form,- (i) of retail sale price not exceeding Rs. 190 per Rs. 230 per tonne Rs.290 per tonne 50 kg bag or of per tonne equivalent retail sale price not exceeding Rs. 3800; (ii) of retail sale price exceeding Rs. 190 per 8% of retail sale price 10% of retail sale price 50 kg bag of per tonne equivalent retail sale price exceeding Rs. 3800; 2. Cleared other than in packaged form 8% or Rs. 230 per tonne, 10% or Rs.290 per tonne whichever is higher whichever is higher Cement clinker Rs.300 per tonne Rs. 375 per tonne C. AUTOMOBILE SECTOR Ad-valorem component of excise duty on large cars, Multi Utility Vehicles and Sports Utility Vehicles etc. and chassis thereof is being increased from 20% to 22%. There is no change in the specific component, which will continue to be levied as applicable. D. PETROLEUM PRODUCTS The rates of excise duty on Motor Spirit (petrol) and HSD (diesel) are being increased by Re.1 per litre. The revised rates of duty on these items are as under: Description Without Brand Name With Brand Name Motor Spirit *Rs.14.35 per litre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncreased from 8% to 10% while that on chewing tobacco, preparations containing chewing tobacco, jarda scented tobacco, snuff and its preparations, tobacco extracts and essences etc. has been increased from 50% to 60%. 5) Basic excise duty on branded homogenised or reconstituted tobacco is also being increased from 50% to 60%. 6) Basic excise duty on items of other smoking tobacco (branded) is being increased from 34% to 40% while the duty on such unbranded tobacco is being increased from 8% to 10%. 7) Basic excise duty on smoking mixtures of pipes and cigarettes is being increased from 300% to 360%. 8) Basic excise duty on cut tobacco is being increased from Rs.50 per kg. to Rs.60 per kg. 9) Excise Duty on Chewing Tobacco and branded unmanufactured Tobacco packed in pouches with the aid of packing machines will now be levied based on capacity of production under Section 3A of the Central Excise Act, 1944 (compounded levy). The levy will come into effect on 8th March, 2010. F. CLEAN ENERGY CESS Clean Energy Cess is being imposed on coal, lignite and peat produced in India. This cess would be levied and collected as a duty of excise with effect from a date to be notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s is being advanced to the 10th of the month following the quarter. 3) The relaxation from brand name restriction under the general SSI exemption scheme is being extended to plastic bottles and plastic containers used as packing material. V. GOLD AND SILVER 1) Refined serially numbered gold bars made from the ore/concentrate stage will now attract excise duty of Rs.280 per 10 grams (instead of 8% ad valorem) with Cenvat credit facility on inputs and capital goods. 2) Excise duty on DTA clearances of plain gold and silver jewellery manufactured by a 100% EOU is being increased from: (i) Rs.500 per 10 gram to Rs.750 per 10 gram for gold jewellery; and (ii) Rs.1000 per kg to Rs.1500 per kg. for silver jewellery. H. OTHER RELIEF MEASURES 1) Following items are being fully exempted from excise duty: a) Articles of bedding wholly made of quilted textile materials; b) Toy balloons made of natural rubber; c) Betel nut product known as "Supari"; d) Dementholised oil, Deterpenated Mentha oil, Spearmint/ Mentha Piperita oils and all intermediates and by-products of Menthol. 2) Excise duty is being reduced from 8% to 4% on: a) Replaceable kits for all househ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st has been paid before the issuance of a demand notice by the Department. 2) Section 32 dealing with Settlement Commission is being amended so as to restore certain provisions as they obtained prior to the enactment of the Finance Bill, 2007. Accordingly, the prohibition on filing of applications for the settlement of cases where an assessee admits short-levy for goods in respect of which he has not maintained proper records (i.e. cases of misdeclaration, clandestine removal etc.) is being removed. Similarly, the restriction that an assessee may seek only onetime settlement is also being relaxed. The Commission is being empowered to extend the time limit of nine months for disposal of applications by another three months, for reasons to be recorded in writing. 3) In Section 37, a new clause is being inserted to provide rule-making powers to the Central Government for withdrawal of facilities or imposition of restrictions including restrictions on utilization of Cenvat credit on a manufacturer or exporter or suspension of registration of a dealer for dealing with evasion of duty or misuse of Cenvat credit. The above changes will come into effect on enactment of the Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... P units under Notification No. 52/2003-Customs. 4) Rule 4(5) (b) of the Cenvat Credit Rules, 2004 is being amended to permit sending of jigs, fixtures, moulds and dies to a vendor for production of goods according to the specifications of the principal manufacturer without reversal of credit. 5) Rule 6 (6) (vii) of the Central Credit Rules, 2004 is being amended so as to allow Cenvat credit on inputs used in the manufacture of goods supplied to such mega power projects from which power has been tied up through tariff-based competitive bidding or the projects awarded through tariff-based competitive bidding. Similar facility available to goods supplied against International Competitive Bidding available at present is also being continued. 6) Rule 15 of the Cenvat Credit Rules, 2004 is being amended to harmonize the penal provisions for incorrect availment of Cenvat credit of duty paid on inputs or capital goods or input services. N. AMENDMENTS IN MEDI CINA L AND TOILET PREPARATIONS (EXCISE DUTIES) ACT, 1955 Section 3 of the M TP Act is being amended to exclude goods manufactured or produced by units in SEZ from excise duty leviable under that Act. This change will come ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty is also being provided to Carbon Black Feedstock, waste paper and paper scrap. The existing exemption by way of refund would continue on other items. D. FOOD /AGRO PROCESSING 1) Project imports status is being granted to the initial setting up or substantial expansion of, a cold storage, cold room (including farm pre-coolers) for preservation or storage or an industrial unit for processing of agricultural, apiary, horticultural, dairy, poultry, aquatic marine produce and meat. These projects would attract concessional rate of basic customs duty of 5%. 2) Project imports status is being granted to installation of Mechanized Handling Systems Pallet Racking Systems, in mandis or warehouses for food grains and sugar, with concessional rate of basic customs duty of 5%. Such systems are also being exempted from additional duty of customs (CVD) and special additional duty of customs. 3) Truck Refrigeration units for the manufacture of refrigerated vans/trucks are being fully exempted from basic customs duty. Such units are already exempt from excise duty. 4) Basic customs duty is being reduced from 7.5% to 5% on specified agricultural machinery such as paddy tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted from basic customs duty and special additional duty of customs. H. HEALTH SECTOR 1) At present, medical equipments attract varying rates of customs duty and are spread over many lists. This multiplicity of rates is being done away with and now all medical equipments (with some exceptions) will attract 5% basic customs duty, 4% CVD/excise duty and Nil special additional duty of customs [i.e. effective duty of 9.2%]. 2) Parts required for the manufacture and accessories of medical equipment will also attract 5% concessional basic customs duty with Nil special CVD. 3) Concessional customs duty available to spares for the maintenance of medical equipment is being withdrawn except in specified cases. 4) Full exemption from basic customs duty and CVD/excise duty is being retained for specified medical devices (exempt by description) as well as for assistive devices, rehabilitation aids and other goods for disabled (List 41). 5) Cobalt-chrome alloys, special grade stainless steel etc. for the manufacture of orthopaedic implants are being exempted from basic customs duty subject to actual user condition. I. ELECTRONICS HARDWARE 1) Battery chargers and hands-free h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o 2%. 2) The current limit of Rs. 1 lakh per annum for duty free import of samples is being enhanced to Rs. 3 lakh per annum 3) At present specified components, raw materials and accessories for the manufacture of sports goods are exempt from basic customs duty. Some additional items are being added to the list of exemption. M. ELECTRICAL ENERGY At present, Electrical energy is fully exempt from customs duty. Electrical energy supplied from a Special Economic Zone to the Domestic Tariff Area and non - processing areas of SEZ would now attract duty of 16% ad valorem + Nil Special CVD. This change is being made retrospectively w.e.f. 26th June, 2009. Exemption on supplies or imports of electrical energy, other than the above, would continue. N. AMENDMENTS IN CUSTOMS ACT, 1962 Section 127 dealing with Settlement Commission is being amended so as to restore certain provisions as they obtained prior to the enactment of the Finance Bill, 2007. Accordingly, the prohibition on filing of applications for the settlement of cases where an assessee admits short-levy in respect of goods not included in the entry made under the said Act. (i.e. cases of misdeclaration, suppression ..... X X X X Extracts X X X X X X X X Extracts X X X X
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