Changes In Excise Duty and Notification India Budget 2014-15

0 0 RAJ KUMARI Thursday, July 10, 2014 Edit this post

BUDGET CHANGES 2015 DATED 28.02.2015 EXCISE AVAILABLE HERE

INDIRECT TAXES PROPOSALS

To boost domestic manufacture and to address the issue of inverted duties, basic customs duty (BCD) reduced on certain items.
To encourage new investment and capacity addition in the chemicals and petrochemicals sector, basic customs duty reduced on certain items.
Steps taken to boost domestic production of electronic items and reduce our dependence on imports. These include imposition of basic customs duty on certain items falling outside the purview of IT Agreement, exemption from SAD on inputs/ components for PC manufacturing, imposition of education cess on imported electronic products for parity etc.
Colour picture tubes exempted from basic customs duty to make cathode ray TVs cheaper and more affordable to weaker sections.
To encourage production of LCD and LED TVs below 19 inches in India, basic customs duty on LCD and LED TV panels of below 19 inches reduced from 10 percent to Nil.
To give an impetus to the stainless steel industry, increase in basic customs duty on imported flat-rolled products of stainless steel from 5 percent to 7.5 percent.
Concessional basic customs duty of 5 percent extended to machinery and equipment required for setting up of a project for solar energy production.
Specified inputs for use in the manufacture of EVA sheets and back sheets and flat copper wire for the manufacture of PV ribbons exempted from basic customs duty.
Reduction in basic customs duty from 10 percent to 5 percent on forged steel rings used in the manufacture of bearings of wind operated electricity generators. Exemption from SAD of 4 percent on parts and raw materials required for the manufacture of wind operated generators.
Concessional basic customs duty of 5 percent on machinery and equipment required for setting up of compressed biogas plants (Bio-CNG).
Anthracite coal, bituminous coal, coking coal, steam coal and other coal to attract 2.5 per cent basic customs duty and 2 per cent CVD to eliminate all assessment disputes and transaction costs associated with testing of various parameters of coal.
Basic customs duty on metallurgical coke increased from Nil to 2.5 percent in line with the duty on coking coal.
Duty on ship breaking scrap and melting scrap of iron or steel rationalized by reducing the basic customs duty on ships imported for breaking up from 5 percent to 2.5 percent.
To prevent mis-use and avoid assessment disputes, basic customs duty on semi processed, half cut or broken diamonds, cut and polished diamonds and coloured gemstones rationalized at 2.5 percent.
To encourage exports, pre-forms of precious and semi-precious stones exempted from basic customs duty.
Duty free entitlement for import of trimmings, embellishments and other specified items increased from 3 percent to 5 percent of the value of their export, for readymade garments.
Export duty on bauxite increased from 10 percent to 20 percent.
For passenger facilitation, free baggage allowance increased from `.35,000 to `.45,000.
To incentivize expansion of processing capacity, reduction in excise duty on specified food processing and packaging machinery from 10 percent to 6 percent.
Reduction in the excise duty from 12 percent to 6 percent on footwear of retail price exceeding ` 500 per pair but not exceeding ` 1,000 per pair.
Withdraw concessional excise duty (2 percent without Cenvat benefit and 6 percent with Cenvat benefit) on smart cards and a uniform excise duty at 12 percent.
To develop renewable energy, various items exempted from excise duty.
Exemption to PSF and PFY manufactured from plastic waste and scrap including PET bottles from excise duty with effect from 29th June, 2010 to 7th May, 2012.
Prospective levy of a nominal duty of 2 percent without Cenvat benefit and 6 percent with Cenvat benefit on such PSF and PFY.
Concessional excise duty of 2 percent without Cenvat benefit and 6 percent with Cenvat benefit on sports gloves.
Specific rates of excise duty increased on cigrettes in the range of 11 per cent to 72 per cent.
Excise duty increased from 12 percent to 16 percent on pan masala, from 50 percent to 55 percent on unmanufactured tobacco and from 60 percent to 70 percent on gutkha and chewing tobacco.
Levy of an additional duty of excise at 5 percent on aerated waters containing added sugar.
To finance Clean Environment initiatives, Clean Energy Cess increased from `.50 per tonne to `.100 per tonne.

BUDGET CHANGES 2015 DATED 28.02.2015 EXCISE AVAILABLE HERE

CENTRAL EXCISE

Chapter 1 to 20: No Change

Chapter 21 -24:

1) An additional duty of excise is being levied at the rate of 5% ad valorem on waters, including aerated waters, containing added sugar falling under chapter heading 2202 10 i.e. aerated waters [2202 10 10], lemonade [2202 10 20] and other [2202 10 90]. Clause 110 of the Finance (No.2) Bill, 2014 refers. By virtue of an entry in the Provisional Collection of Taxes Act, 1931, the levy will come into force with immediate effect.

2) Basic excise duty on cigarettes and other products of tariff heading 2402 is being increased.

Clause 105 of the Finance (No.2) Bill, 2014 may be referred to for details. There is no change in NCCD leviable under the Seventh Schedule to the Finance Act, 2001 and Additional Duty (health cess) under the Seventh Schedule to the Finance Act, 2005. Tariff items related to cigarettes of length exceeding 75 mm but not exceeding 85 mm and cigarettes of length exceeding 85 mm are being merged into a single tariff item i.e. others [2402 20 90]. Accordingly, tariff item 2402 20 60 and the entries relating thereto are being omitted from the Seventh Schedule to the Finance Act, 2001 and from the Seventh Schedule to the Finance Act, 2005. By virtue of an entry in the Provisional Collection of Taxes Act, 1931, these changes will come into force with immediate effect. The changes in total excise duty rates are summarized below.

TARIFF ITEM DESCRIPTION (length in mm) Rs. per 1000 sticks (Existing Rate) Rs. per 1000 sticks (New Rate)

24022010 Non filter not exceeding 65 669 1150

24022020 Non-filter exceeding 65 but not

exceeding 70 2027 2250

24022030 Filter not exceeding 65 669 1150

24022040 filter exceeding 65 but not exceeding 70 1409 1650

24022050 Filter exceeding 70 but not exceeding 75 2027 2250

24022060 Filter exceeding 75 but not exceeding 85 2725 Tariff item Omitted

24022090 Other 3290 3290

3) Basic Excise Duty is being increased from 12% to 16% on pan masala, from 50% to 55% on unmanufactured tobacco and from 60% to 70% on jarda scented tobacco, gutkha and 12 chewing tobacco. Clause 105 of the Finance (No.2) Bill, 2014 and S.No.35 of notification No.12/2012-Central Excise dated 17th March, 2012 as amended vide notification No.12/2014-Central Excise dated 11th July, 2014, may be referred to for details.

These changes will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931.

Accordingly, the duty leviable under the compounded levy scheme has been modified. In this regard, notification No.42/2008-Central Excise dated 01.07.2008 as amended by notification No.16/2014-Central Excise dated 11th July, 2014, notification No.16/2010-Central Excise dated 27.02.2010 as amended by notification No.17/2014-Central Excise dated 11th July, 2014, and notification No.30/2008-Central Excise (NT) dated 01.07.2008 as amended by notification No.22/2014-Central Excise (NT) dated 11th July, 2014 may be referred to for details.

There is no change in NCCD and Health Cess rates.

Chapter 25, 26: No Change

Chapter 27-29

1) The Tenth Schedule to the Finance Act, 2010 dealing with Clean Energy Cess is being amended so as to expand the scope of purposes of levy of the said cess to include clean environment initiatives and funding research in the area of clean environment. Clause 111 of the Finance (No.2) Bill, 2014 refers. The Clean Energy cess is being increased from Rs.50 per tonne to Rs.100 per tonne. Notification No.3/2010-CE dated 22.06.2010 which prescribes the effective rate of Rs.50 per tonne is being rescinded vide notification No.20/2014-Central Excise, dated 11th July, 2014. Henceforth, the rate of Clean Energy Cess will be the tariff rate i.e. Rs.100 per tonne.

2) Excise duty on Branded Petrol is being reduced from Rs.7.50 per litre to Rs. 2.35 per litre. S.No.70 of Notification 12/2012- Central Excise, dated 17th March, 2012 as amended vide notification No.12/2014-Central Excise dated 11 th July, 2014 refers.

3) Full exemption from Central Excise duty is being provided to Liquefied Propane and Butane mixture, Liquefied Propane, Liquefied Butane and Liquefied Petroleum Gases (LPG) for supply to Non-Domestic Exempted Category (NDEC) customers by the Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited or Bharat Petroleum Corporation Limited retrospectively w.e.f. 08.02.2013. Clause 103 of the Finance (No.2) Bill, 2014 refers. The exemption shall continue w.e.f. 11.07.2014 vide S.No.81 of Notification 12/2012-Central Excise, dated 17th March, 2012 as amended vide Notification No.12/2014-Central Excise dated 11 th July, 2014 refers.

BUDGET CHANGES 2015 DATED 28.02.2015 EXCISE AVAILABLE HERE

Chapter 30 to 33: No ChangE

1) Full exemption from excise duty is being provided to specified raw materials used in the manufacture of backsheet and EVA sheet for manufacture of solar photovoltaic cells or modules. Notification No.12/2012- Central Excise as amended vide Notification No.12/2014-Central Excise dated 11th July, 2014 [new S.No.133A] refers.

2) Semi-mechanized units manufacturing safety matches, which attract concessional excise duty of 6%, are being allowed to carry out the processes of „Pasting of labels‟ and „Packing‟ with the aid of power. S.No.142 of notification No.12/2012-Central Excise, dated 17th March, 2012 as amended vide Notification No.12/2014-Central Excise dated 11 th July, 2014 refers.

3) Full exemption from excise duty is being provided to DDT manufactured by Hindustan Insecticides Limited for supply to the National Vector Borne Diseases Control Programme (NVBDCP) of the Ministry of Health & Family Welfare. Notification 12/2012- Central Excise, dated 17th March, 2012 as amended vide notification No.12/2014-Central Excise dated 11 th July, 2014 [new S.No.144A] refers.

4) Full exemption from excise duty is being provided on plastic materials reprocessed out of the scrap or waste and cleared into the DTA by an EOU. This would bring EOU at par with domestic and SEZ Units. S.No.147 of Notification No.12/2012- Central Excise, dated 17th March, 2012 as amended vide Notification No.12/2014-Central Excise dated 11th July, 2014 refers.

5) Full exemption from excise duty is being provided to backsheet and EVA sheet used in the manufacture of solar photovoltaic cells or modules. Notification No.12/2012-Central Excise dated 17th March, 2012 as amended vide Notification No.12/2014-Central Excise dated 11th July, 2014 [new S.No.148A] refers.

Chapter 40-55:

1) Concessional excise duty of 2% without CENVAT credit and 6% with CENVAT credit is being extended to gloves specially designed for use in sports. Notification No.1/2011-Central Excise, dated 1st March, 2011 as amended vide notification No.8/2014-Central Excise, dated the 11th July 2014 [new S.No.51A] and notification No.2/2011-Central Excise, dated 1st March, 2011 as amended vide notification No.9/2014-Customs, dated the 11th July 2014 [new S.No.28A] refers.

2) Optional excise duty of 2% (without CENVAT) / 6% (with CENVAT) on writing and printing paper for printing of educational textbooks is being withdrawn and instead a uniform excise duty of 6% with CENVAT is being levied. S.No.63 is being omitted from notification No.1/2011- Central Excise, dated 1st

March, 2011. Notification No.8/2014-Central Excise, dated the 11th July 2014 refers.

3) Full exemption from excise duty is being provided for security threads and security fibre supplied to Security Paper Mill, Hoshangabad and Bank Note Paper Mill India Private Limited (BNPMIPL), Mysore. Notification No.12/2012-Central Excise, dated 17th March, 2012 as amended vide notification No.12/2014-Central Excise dated 11th July, 2014 [new S.No.149A] refers. 14

4) Excise duty on Polyester Staple Fiber (PSF) and Polyester Filament Yarn (PFY) manufactured from plastic waste or scrap or plastic waste including waste polyethylene terephthalate (PET) bottles (which is already exempt w.e.f. 08.05.2012) is being exempted retrospectively w.e.f. 29.06.2010 to 07.05.2012. Clause 102 of the Finance (No.2) Bill, 2014 refers. Intermediate product „Tow‟ arising during the course of manufacture of such PSF/PFY is being exempted retrospectively w.e.f. 29.06.2010 to 10.07.2014 so as to provide relief to the manufacturers of such PSF/PFY. Clauses 102 and 103 of the Finance (No.2) Bill, 2014 refer.

5) Excise duty at the rate of 2% (without CENVAT) or 6% (with CENVAT) is being imposed on Polyester Staple Fiber and Polyester Filament Yarn manufactured from plastic waste or scrap or plastic waste including waste polyethylene terephthalate (PET) bottles w.e.f. 11th July, 2014. Notification No.1/2011- Central Excise, dated 1st March, 2011 as amended vide notification No.8/2014-Central Excise, dated the 11th July 2014 [new S.No.70A] and S.No.172A of notification No.12/2012-Central Excise, dated 17th

March, 2012 as amended vide notification No.12/2014-Central Excise dated 11th July, 2014 refer.

Chapter 56-63: No Change

Chapter 64:

1) Excise duty is being reduced from 12% to 6% on footwear of retail price exceeding Rs.500 per pair but not exceeding Rs.1,000 per pair. Footwear of retail price upto Rs.500 per pair will continue to remain exempted. S.No.180 of notification No.12/2012-Central Excise, dated 17th March, 2012 as amended vide notification No.12/2014-Central Excise dated 11th July, 2014 refers.

Chapter 65 to 69: No Change

Chapter 70:

1) Full exemption from excise duty is being provided on solar tempered glass used in the manufacture of solar photovoltaic cells or modules, solar power generating equipment or systems and flat plate solar collectors. Notification No.12/2012-Central Excise, dated 17th March, 2012 as amended vide notification No.12/2014-Central Excise dated 11th July, 2014

[new S.No.187C] refers.

Chapter 71

1) Un-branded articles of precious metals are being exempted from excise duty retrospectively for the period 01.03.2011 to 16.03.2012. Clause 102 of the Finance (No.2) Bill, 2014 refers.

Chapter 73

1) Excise duty is being reduced from 12% to Nil on forged steel rings used in the manufacture of bearings of

wind operated electricity generators. Notification No.12/2012-Central Excise, dated 17th March, 2012 as amended vide notification No.12/2014-Central Excise dated 11th July, 2014 [new S.No.211A] refers.

Chapter 74

1) Full exemption from excise duty is being provided on flat copper wire used in the manufacture of PV ribbons (tinned copper interconnect) for use in the manufacture of solar cells or modules. Notification No.12/2012- Central Excise dated 17th March, 2012 as amended vide Notification No.12/2014-Central Excise dated 11th July, 2014 [new S.No.215A] refers.

2) Excise duty on winding wires of copper is being increased from 10% to 12%. S.No.346 of notification 12/2012- Central Excise, dated 17th March, 2012 as amended vide notification No.12/2014-Central Excise dated 11th July, 2014 refers.

Chapter 75-76: No Change

Chapter 77-84:

1) Excise duty on machinery for the preparation of meat, poultry, fruits, nuts or vegetables, and on presses, crushers and similar machinery used in the manufacture of wine, cider, fruit juices or similar beverages and on packaging machinery is being reduced from 10% to 6%. Notification No.12/2012-Central Excise, dated 17th March, 2012 as amended vide notification No.12/2014-Central Excise dated 11th July, 2014 [new S.No.241B, 245A and 245B] refers.

2) Full exemption from excise duty is being granted in respect of machinery, equipments, etc. required for initial setting up of solar energy production projects. Notification No.15/2010- Central Excise, dated 27th

February, 2010 as amended vide notification No.15/2014-Central Excise dated 11th July, 2014 refers.

3) Full exemption from excise duty is being provided on machinery, equipments, etc. required for initial setting up of compressed biogas plant (Bio-CNG). Notification No.33/2005- Central Excise, dated 8 th

September, 2005 as amended vide notification No.14/2014-Central Excise dated 11 th July, 2014 refers.

4) Excise duty on hand operated sewing machine (2% without CENVAT / 6% with CENVAT) is being rationalized by levying concessional excise duty on sewing machines other than those operated with electric motors (whether in-built or attachable to the body). S.No.97 of notification No.1/2011- Central Excise, dated 1st March, 2011 as amended vide notification No.8/2014-Customs, dated the 11th July 2014 and S.No.58 of notification No.2/2011- Central Excise, dated 1st March, 2011 as amended vide notification No.9/2014-Customs, dated the 11th July 2014 refer. 16

Chapter 85:

1) Excise duty on Metal Core PCB and LED driver for use in the manufacture of LED lights and fixtures and LED lamps is being reduced from 12% / 10% to 6%. Notification No.12/2012-Central Excise, dated 17th March, 2012 as amended vide notification No.12/2014-Central Excise dated 11th July, 2014 [new S.No.321A] refers.

2) Full exemption from excise duty is being provided to parts consumed within the factory of production for the manufacture of non-conventional energy devices, and when such use in elsewhere than in the factory of production, the exemption is being allowed subject to actual user condition. Notification No.12/2012- Central Excise dated 17th March, 2012 as amended vide notification No.12/2014-Central Excise dated 11th July, 2014 [new S.No. 332A] refers.

3) Excise duty on recorded smart cards is being increased from 2% without CENVAT and 6% with CENVAT to a uniform rate of 12%. Accordingly, S.No.104 is being omitted from notification No.1/2011- Central Excise, dated 1st March, 2011 and S.No.63 from notification No.2/2011-Central Excise, dated 1st

March, 2011. In this connection, notifications No.8/2014-Central Excise and No.9/2014-Central Excise, both dated the 11th July 2014 and S.No.346 of notification No.12/2012-Central Excise dated 17th March, 2012 as amended vide notification No.12/2014-Central Excise dated 11th July, 2014 refer.

Chapter 86: No Change

Chapter 87:

1) Excise duty is being exempted on parts of tractors removed from one or more factories of a tractor manufacturer to another factory of the same manufacturer for manufacture of tractors.

S.No.340 of notification No.12/2012-Central Excise, dated 17th March, 2012 as amended vide notification No.12/2014-Central Excise dated 11th July, 2014 refers.

Chapter 88-96: No Change

Miscellaneous:

1) Full exemption from excise duty is being provided to reverse osmosis (RO) membrane element for water filtration or purification equipment (other than household type filter). Notification No.12/2012-Central Excise, dated 17th March, 2012 as amended vide notification No.12/2014-Central Excise dated 11th

July, 2014 [new S.No.239A] refers.

2) Excise duty on RO membrane element used in household type filters is being reduced from 12% / 10% to 6%. Notification No.12/2012-Central Excise, dated 17th March, 2012 as amended vide notification No.12/2014-Central Excise dated 11th July, 2014 [new S.No.241A] refers.

3) Director (Electrical) is being authorized to issue the requisite certificate to enable Delhi Metro Rail Corporation to avail of Nil excise duty benefit in respect of their Phase-1 and Phase-2 projects instead of Director (Rolling Stock, Electrical & Signalling) at present S.No.333 (ii) of notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12/2014-Central Excise, dated 11th July, 2014 refers. Condition 48 contains the change.

4) Full exemption from excise duty is being provided on specified HIV/AIDS drugs and diagnostic kits supplied under National AIDS Control Programme (NACP) funded by the Global Fund to Fight AIDS, TB and Malaria (GFATM). Notification No.13/2014-Central Excise dated 11th July, 2014 refers.

5) Full exemption from Excise Duty is being provided to goods supplied to National Technical Research Organisation (NTRO). Notification No.64/95-Central Excise, dated 16th March, 1995 as amended vide notification No.10/2014-Central Excise dated 11th July, 2014 refers.

6) Plants & Equipment supplied prior to 2008 for use in projects financed by the UN or an international organization, which hitherto could not be transferred / sold out of the project site, are now being allowed to be transferred / sold from the project site subject to the conditions specified therein. Notification No.108/95-Central Excise, dated the 28th August, 1995 as amended vide notification No.11/2014-Central Excise, dated the 11th July 2014 refers.

7) Intermediate goods manufactured and consumed captively for further manufacture of matches is being fully exempted. Notification No. 67/95-CE dated 16th March, 1995 as amended by Notification No.19/2014- Central Excise, dated the 11 th July 2014 refers.

8) Education cess and secondary & higher education cess (customs component) is being exempted on goods cleared by an EOU into the DTA. Notification No.23/2003-Central Excise dated 31.03.2003 as amended by notification No.18/2014-Central Excise dated 11 th July, 2014 [new S.Nos.1A and 1B] refers.

9) S.No.140 of notification No.49/2008-Central Excise (NT) dated 24th December, 2008 is being amended vide notification No.17/2014-Central Excise (NT) so as to specify the tariff item 8421 99 00 in column (2) relating to replaceable kits of water filters functioning without electricity.

10) Rule 8 of the Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008 is being amended with retrospective effect from 13.04.2010 to provide that where a manufacturer manufactures pouches of different RSPs on a single machine in a month, the duty liability for that month would be the duty applicable to the highest of the RSP so manufactured. This will align the Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008 with the Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules, 2010 with regard to manufacture of pouches of different RSPs on a single machine under the compounded levy scheme. Clause 101 of the Finance (No.2) Bill, 2014 refers.

Notification No. 08/2014-CE