TMI BlogFinance Bill, 2017. To prescribe effective rates of duty and to carry out changes in the Rules made under the respective Acts.X X X X Extracts X X X X X X X X Extracts X X X X ..... CENTRAL EXCI SE Tariff No.3/2017-Central Excise to No.7/2017-Central Excise 2 nd February, 2017 Non-Tariff No.2/2017-Central Excise (N.T.) to No.5/2017-Central Excise (N.T.) 2 nd February, 2017 Unless otherwise stated, all changes in rates of duty take effect from the midnight of 1st February/2nd February, 2017. A declaration has been made under the Provisional Collection of Taxes Act, 1931 in respect of clauses 109 (a) , 110 , 118 and 146 of the Finance Bill, 2017 so that changes proposed therein take effect from the midnight of 1st February / 2nd February, 2017. The remaining legislative changes would come into effect only upon the enactment of the Finance Bill, 2017 . These dates may be carefully noted. 2. Important changes in respect of Customs and Central Excise duty rates and legislative changes are contained in the four Annexes appended to this letter: 1) Annex I contains Chapter wise changes relating to Customs; 2) Annex II contains Chapter wise changes relating to Central Excise; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect. Chapter 21 to 25 : No change Chapter 26 : 1) The Second Schedule (Export Tariff) to the Customs Tariff Act, 1975 is being amended so as to prescribe a tariff rate of export duty of 30% for all goods falling under tariff item 2606 00 90, namely, Other aluminium ores and concentrates . Clause 110 of the Finance Bill, 2017 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this change will come into force with immediate effect. 2) Export duty is being imposed at an effective rate of 15% on Other aluminium ores, including laterite falling under tariff item 2606 00 90. However, goods other than the said goods falling under tariff item 2606 00 90 (concentrates) will continue to attract Nil export duty. S.No.24E and S.No.24F of notification No. 27/2011-Customs, dated 1st March, 2011 as amended by notification No.3/2017-Customs, dated the 2nd February, 2017 refers. Chapter 27 : 1) Basic Customs Duty on Liquefied Natural Gas (LNG) falling under tariff item 2711 11 00 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as amended by notification No.6/2017-Customs, dated the 2nd February, 2017 [New S.No.214A] refers. Chapter 35 to 37 : No change Chapter 38 and 39 : 1) Basic Custom Duty (BCD) is being reduced from 7.5% to 5% on Catalyst [3815 90 00] and Resin [3909 40 90] for use in the manufacture of cast components of Wind Operated Electricity Generator [WOEG], subject to actual user condition. Notification No. 12/2012Customs, dated 17th March, 2012 as amended vide Notification No.6/2017- Customs, dated 2nd February, 2017 [new S. Nos. 230C and 230D] refers. 2) SAD is being exempted on Catalyst [3815 90 00] and Resin [3909 40 90] for use in the manufacture of cast components of WOEG, subject to actual user condition. Exemption from SAD will be valid till 30th June, 2017. Notification No. 21/2012-Customs, dated 17th March, 2012 as amended vide Notification No.4/2017- Customs, dated 2nd February, 2017 [new S. Nos. 14H and 14I] refer. Chapter 40 to 53 : No change Chapter 54 : 1) Basic Customs Duty on Nylon Monofilament yarn falling under Customs Tariff Item 5404 19 90 for use in Monofilament long line systems for tuna fishing is being reduced from 7.5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o.6/2017- Customs, dated 2nd February, 2017 refers 4) Simultaneously, 10% concessional BCD is being prescribed on Co-polymer coated MS tape/stainless steel tape for manufacture of telecommunication grade optical fibres or optical fibre cables, subject to actual user condition. Notification No. 12/2012-Customs, dated 17th March, 2012 as amended vide Notification No.6/2017- Customs, dated 2nd February, 2017 [New S. No. 333D] refers. Chapter 73 to 74 : No change Chapter 75: 1) Basic Customs duty on Nickel and articles thereof is being reduced from 2.5% to Nil. S. No.337 of Notification No. 12/2012-Customs dated 17th March, 2012 as amended by Notification No.6/2017-Customs, dated 2nd February, 2017 refers. Chapter 76 to 83: No change Chapter 84 and 85: 1) Basic Customs duty on Reverse Osmosis (RO) membrane element for household type filters falling under tariff item 8421 99 00 is being increased from 7.5% to 10%. Clause 109 (a) of Finance Bill, 2017 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect. 2) However, all other goods falling u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r condition. Notification No. 12/2012-Customs, dated 17th March, 2012 as amended vide Notification No.6/2017- Customs, dated 2nd February, 2017 , new S. No. 408A refers. Chapter 86 to 97 : No change Chapter 98 1) Goods imported through postal parcels, packets and letters, of CIF value not more than one thousand rupees per consignment are being exempted from BCD, CVD and consequently from SAD. S. No. 519 of Notification No. 12/2012-Customs dated 17.03.2012 as amended by Notification No.6/2017-Customs dated 02.02.2017 refers Miscellaneous: 1) Condition No.40A [S.No.357A] of notification No.12/2012-Customs dated 17.03.2012 is being amended so as to allow the goods imported for petroleum or coal bed methane operations by availing of the benefit of the exemption, which are no longer required for the said purpose, to be disposed of on payment of applicable customs duties, on the depreciated value calculated as per straight line method (subject to depreciated value not being less than 30% of the original value) of such goods. Condition No.40A of notification No.12/2012Customs, dated 17th March, 2012, as amended by notification No.6/2017-Customs, dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aratus and appliances, transmission equipment and auxiliary equipment (including those required for testing and quality control) and components, required for balance of systems operating on biogas or bio-methane or byproduct hydrogen subject to certain conditions. Notification No.5/2017 -Customs dated 2nd February, 2017 refers. ***** ANNEX II EXCISE Chapter 1 to 20 and 22, 23 : No change Chapter 21 and 24 : 1) The additional duty of excise levied under the Seventh Schedule to the Finance Act, 2005 [commonly known as health cess] on non-filter and filter cigarettes of sub-heading 2402 20 is being increased. Clause 146 of the Finance Bill, 2017 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, these increases will come into force with immediate effect. There is no change in the Basic Excise Duty leviable under the First Schedule to the Central Excise Tariff Act, 1985 and the NCCD leviable under Seventh Schedule to the Finance Act, 2001. The changes in additional duty of excise rates on cigarettes are summarized below. Tariff Item Description Additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her. Clause 118 of the Finance Bill, 2017 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, these increases will come into force with immediate effect. 3) The effective basic excise duty rate on Handmade Paper rolled biris and Machine made Paper rolled biris [ both falling under tariff item 2403 19 29] is being increased from ₹ 21 per thousand to ₹ 28 per thousand and from ₹ 21 per thousand to ₹ 78 per thousand respectively. However, there is no change in basic excise duty rate on other goods falling under tariff item 2403 19 29, which will continue to be ₹ 21 per thousand. Notification No. 12/2012 -Central Excise dated 17.03.2012 as amended by notification No.6/2017-Central Excise dated 02.02.2017 [S.No.48 and new S.Nos.48A and 48B] refers. 4) The additional duty of excise levied under the Seventh Schedule to the Finance Act, 2005 [commonly known as health cess] on jarda scented tobacco, gutkha and chewing tobacco is being increased from 6% to 12%. Clause 146 of the Finance Bill, 2017 and notification No. 6/2005-Central Excise, dated the 1st March, 2005 as amended by notific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2403 99 10 6 12 Zarda Scented Tobacco 2403 99 30 6 12 Chapter 25 to 30 : No change Chapter 31: 1) Goods falling under heading 3101 of the Central Excise Tariff attract Nil Central Excise duty by tariff. Notification No.12/2012-Central Excise dated 17.03.2012 [S.No.128, which prescribed a concessional excise duty of 1% subject to certain conditions] is being amended so as to exclude goods falling under heading 3101 from the purview of the said entry. Notification No. 12/2012- Central Excise, dated 17th March, 2012 as amended by notification No.6/2017-Central Excise dated the 2nd February, 2017 [S. No. 128] refers. Chapter 32 to 37 : No change Chapter 38 and 39 : 1) Excise duty is being exempted on Catalyst [3815 90 00] and Resin [3909 40 90] for use in the manufacture of cast components of Wind Operated Electricity Generator subject to actual user condition. The exemption from excise duty will be valid till 30th June, 2017. Notification No. 12/2012-Central Excise, dated 17th March, 2012 as amended vide Notificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -Central Excise dated 17.03.2012 as amended by Notification No.6/2017- Central Excise dated 02.02.2017 refers. 2) Nil excise duty, on strips, wires, sheets, plates and foils of silver, is being made subject to condition that no credit of input or input services or capital goods has been availed by manufacturers of such goods. S. No. 196 of Notification No. 12/2012-Central Excise dated 17.03.2012 as amended by Notification No.6/2017- Central Excise dated 02.02.2017 refers 3) Nil excise duty, on articles of silver jewellery, other than those studded with diamond, ruby, emerald or sapphire, is being made subject to condition that no credit of input or input services or capital goods has been availed by manufacturers of such goods. S. No. 199 (III) of Notification No. 12/2012-Central Excise dated 17.03.2012 as amended by Notification No.6/2017- Central Excise dated 02.02.2017 refers. 4) Nil excise duty, on Silver coins of purity 99.9% above, bearing a brand name, is being made subject to condition that no credit of input or input services or capital goods has been availed by manufacturers of such goods. S. No. 200 (III) of Notification No. 12/2012-Central Excise da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uel cell based system for generation of power or for demonstration purposes subject to certain conditions. The concessional excise duty will be valid till 30th June, 2017. Notification No.5/2017- Central Excise dated 2nd February, 2017 refers. 2) 6% concessional excise duty is being prescribed for all items of machinery, including, instruments, apparatus and appliances, transmission equipment and auxiliary equipment (including those required for testing and quality control) and components/parts, required for balance of systems operating on biogas/ bio-methane/ by-product hydrogen, subject to certain conditions. The concessional excise duty will be valid till 30th June, 2017. Notification No.5/2017- Central Excise dated 2nd February, 2017 refers. 3) 6% concessional excise duty, currently applicable to LED (Light Emitting Diode) driver and MCPCB (Metal Core Printed Circuit Board) for use in the manufacture of LED lights and fixtures or LED lamps [ S. No. 321A of Notification No. 12/2012- Central Excise dated 17th March, 2012 refers], is being extended to all parts for use in the manufacture of LED lights or fixtures including LED Lamps subject to actual user condition. Thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cured domestically by them. 5. The matter has been examined. As mentioned in para 2 above, non-applicability of exemptions under notifications issued under section 5A of the Central Excise Act, 1944 is only in respect of excisable goods produced or manufactured by an EOU and cleared to DTA and not in respect of inputs/raw materials procured by them domestically and utilised for production/manufacture of goods which are cleared by them to DTA. 6. In view of the above, it is hereby clarified that EOUs will also be eligible to import or procure raw materials/inputs at other concessional/Nil rate of BCD, excise duty/CVD or SAD, as the case may be, provided they fulfill all conditions for being eligible to such concessional or Nil duty. For these purposes, if an EOU is already registered with the jurisdictional Central Excise Authority, it will not be required to take any fresh registration under the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2016 or the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable and Other Goods) Rules, 2016 , as the case may be. Further, there will be no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to substitute the definition of Authority to mean the Authority for Advance Ruling as constituted under section 245-O of the Income-tax Act, 1961. [ 92 ] 6. Section 28F is being amended so as to provide that the Authority for Advance Rulings constituted under section 245-O of the Income-tax Act shall be the Authority for giving advance rulings for the purposes of the [ 93 ] Customs Act. It further seeks to provide that the Member of the Indian Revenue Service (Customs and Central Excise), who is qualified to be a Member of the Board, shall be the revenue Member of the Authority for the purposes of Customs Act. It also seeks to provide for transferring the pending applications before the Authority for Advance Rulings (Central Excise, Customs and Service Tax) to the Authority constituted under section 245-O of the Income-tax Act from the stage at which such proceedings stood as on the date on which the Finance Bill, 2017 receives the assent of the President. 7. Section 28G relating to vacancies not to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vessel or aircraft or vehicle carrying the goods arrives at a customs station at which such goods are to be cleared for home consumption or warehousing and to provide for imposition of such charges for late presentation of the bill of entry as may be prescribed. [ 99 ] 13. Sub-section (2) of section 47 is being amended so as to provide the manner of payment of duty and interest thereon in the case of selfassessed bills of entry or, as the case may be, assessed, reassessed or provisionally assessed bills of entry. [ 100 ] 14. Section 49 is being amended to extend the facility of storage under section 49 to imported goods entered for warehousing before their removal. [ 101 ] 15. Section 69 relating to clearance of warehoused goods for exportation is being amended to align it with the proposed omission of section 82. [ 102 ] 16. Section 82 relating to label or declaration accompanying goods to be treated as entry is being omitted. [ 103 ] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sification decision. Substitute tariff items 3823 11 11 to 3823 11 90 and entries relating thereto with tariff item 3823 11 00. Substitute tariff items 3904 10 10 to 3904 22 90 with tariff items 3904 10 10 to 3904 22 00 in relation to the PVC Resin. [ 109(b) ] 2. To amend Chapter Note (4) of Chapter 98 so as to remove the nonapplicability of headings 9803 and 9804 to goods imported through courier service. Also, to amend heading 9804 so as to extend the classification of personal imports by courier, sea, or land under this heading. [ 109(b) ] B. Amendments affecting rates of BCD [ 109(a) ] Rate of Duty Commodity From To 1. Cashew nut, roasted, salted or roasted and salted 30% 45% 2. RO membrane element for household type filters 7.5% 10% The amendments involving increase in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Authority constituted under section 245-O of the Income-tax Act from the stage at which such proceedings stood as on the date on which the Finance Bill, 2017 receives the assent of the President. [ 115 ] 6. Section 32E is being amended so as to insert a new sub-section (5) therein to enable any person, other than assessee, referred to in subsection (1) to make an application to the Settlement Commission. [ 116 ] 7. Sub-section (3) of section 32F is being amended so as to substitute certain words therein. It further seeks to insert a new sub-section (5A) therein to enable the Settlement Commission to amend the order passed by it under sub-section (5), to rectify any error apparent on the face of record. [ 117 ] AMENDMENTS IN THE FIRST SCHEDULE TO THE CENTRAL EXCISE TARIFF ACT, 1985 [ Clause 118 of the Finance Bill, 2017 ] S.No. Amendment Amendments involving change in the rate of Basic Excise duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ducts 1. Non-filter Cigarettes of length not exceeding 65mm Rs.215 per thousand Rs.311 per thousand 2. Non-filter Cigarettes of length exceeding 65mm but not exceeding 70mm Rs.370 per thousand Rs.541 per thousand 3. Filter Cigarettes of length not exceeding 65mm Rs.215 per thousand Rs.311 per thousand 4. Filter Cigarettes of length exceeding 65mm but not exceeding 70mm Rs.260 per thousand Rs.386 per thousand 5. Filter Cigarettes of length exceeding 70mm but not exceeding 75mm Rs.370 per thousand Rs.541 per thousand 6. Other Cigarettes Rs.560 per thousand Rs.811 per thousand 7. Chewing tobacco (including filter khaini) 10% 12% 8. Jarda scented t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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