TMI BlogImportant changes in respect of Customs and Central Excise duty and legislative changesX X X X Extracts X X X X X X X X Extracts X X X X ..... L 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 I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Annex I CUSTOMS 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 curren ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. No 411 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 m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s (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.12/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vil 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 b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1st March, 2013 which contains these changes may be referred to for details. ***** Annex II CENTRAL EXCISE 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 notificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apter 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 the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s amended by notification No. 12/2013-CE, dated the 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 No. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith 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 the 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 the 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 II ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce 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. Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... il 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 c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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