 |
OFFICE OF THE
COMMISSIONER OF CUSTOMS, |
PUBLIC NOTICE NO: 33 / 2001
Sub: BUDGET 2001
– 2002 – CUSTOMS & CENTRAL EXCISE -
The Finance Bill 2001 – 2002 was introduced in the Lok Sabha on 28.02.2001 at
11.00 A.M. Budget Bulletin issued by the
Directorate of Publications, Customs & Central Excise, New Delhi, containing the
relevant extracts of the Finance Bill, 2001 and Notifications relating to Customs issued
in connection with the Budget will be available for sale at the Enquiry Unit of this
Custom House from 02.03.2001.
2.
The
changes made by the Finance Bill, 2001 and by Notifications (unless otherwise specified in
the Bill or in any Notifications) come into effect from the midnight of 28th
Feb 2001.
3.
The
salient features of the changes relating to Customs are given in the annexure to this
notice. However, the Public are advised to
refer to the Budget Bulletin and Notifications for clear understanding.
(M.V.S. PRASAD)
COMMISSIONER
OF CUSTOMS (PORT)
F. No.C2/9/2001 – Corrs(Budget)
Custom House,
Chennai – 1.
Dated : 28.02.2001.
BUDGET SYNOPSIS
_______________________________________________________________________________________________
FROM: T.R.RUSTAGI, JOINT SECRETARY,
TAX RESEARCH UNIT, DEPARTMENT OF REVENUE,
MINISTRY OF FINANCE.
TO: CHIEF COMMISSIONERS OF CUSTOMS AND CENTRAL
EXCISE (ALL)/ DIRECTOR GENERALS (ALL) / COMMISSIONERS OF CUSTOMS AND CENTRAL EXCISE (ALL)
F.NO.334/1/2001-TRU DATED 28th
FEBRUARY, 2001 (.) THE FOLLOWING IMPORTANT CHANGES ARE BEING MADE THROUGH FINANCE BILL
2001 AND NOTIFICATIONS ISSUED ON 1st MARCH, 2001 (.) ALL CHANGES, UNLESS
OTHERWISE STATED ARE EFFECTIVE FROM THE MIDNIGHT BETWEEN 28th FEBRUARY, 2001
AND 1st MARCH, 2001(.)
AMENDMENTS IN SECTION 3 OF THE CUSTOMS
TARIFF ACTS:
SECTION 3 OF THE CUSTOMS TARIFF ACT IS PROPOSED TO BE AMENDED VIDE CLAUSE 110 OF THE FINANCE BILL, 2001(.) A PROVISO IS BEING INCORPORATED IN THE SUB-SECTION (1) SO THAT IN THE CASE OF ALCOHOLIC LIQUOR FOR HUMAN CONSUMPTION, THE CENTRAL GOVERNMENT WOULD HAVE THE POWERS TO SPECIFY THE RATE OF ADDITIONAL DUTY ON THESE GOODS BY NOTIFICATION (.) THIS WOULD ENABLE THE CHARGING OF ADDITIONAL DUTY ON THESE GOODS AT A UNIFORM RATE EVEN THOUGH THE RATES OF STATE EXCISE MAY BE DIFFERENT (.)
ANOTHER IMPORTANT AMENDMENT MADE IN SECTION 3 RELATES TO THE VALUATION (FOR THE PURPOSES
OF ADDITIONAL DUTY) OF PACKAGED COMMODITIES IMPORTED INTO INDIA (.) IN THE CASE OF SUCH
GOODS THE VALUE WOULD BE COMPUTED ON THE BASIS OF THEIR MAXIMUM RETAIL PRICE IN INDIA (.)
THE PROVISION IS APPLICABLE TO GOODS:
(a) WHERE IT IS THE REQUIREMENT EITHER OF THE
STANDARDS OF WEIGHTS
AND MEASURES ACT OR ANY OTHER LAW TO DECLARE THE RETAIL SALE PRICE ON THE PACKAGE (BEFORE
CLEARANCE FOR HOME CONSUMPTION); AND
(b) LIKE GOODS MANUFACTURED IN INDIA ARE NOTIFIED
UNDER SECTION 4A OF THE CENTRAL EXCISE ACT (.)
IN SUCH CASES, THE VALUE OF THE GOODS WOULD BE THE MAXIMUM RETAIL PRICE (DECLARED ON THE
PACKAGE) MINUS THE ABATEMENT NOTIFIED FOR LIKE DOMESTIC GOODS UNDER SECTION 4A(.)
BOTH THESE PROVISIONS HAVE BEEN DECLARED UNDER THE PROVISIONAL COLLECTION OF TAXES ACT AND SHALL COME INTO FORCE ON THE 1 ST OF MARCH 2001(.
AMENDMENTS IN SECTIONS 8B AND 9A OF THE
CUSTOMS TARIFF ACT:
CLAUSE 112 OF THE FINANCE BILL, 2001 AMENDS
SECTION 8B OF THE
IT HAS ALSO BEEN PROPOSED TO AMEND THIS SECTION SO THAT ANY NOTIFICATION IMPOSING
SAFEGUARD DUTY, WHETHER PROVISIONAL OR FINAL, WOULD NOT APPLY TO GOODS IMPORTED BY A 100%
EXPORT-ORIENTED UNDERTAKING, A UNIT IN A FREE TRADE ZONE OR SPECIAL ECONOMIC ZONE, UNLESS
IT SPECIFICALLY STATES SO (.) A SIMILAR AMENDMENT HAS BEEN MADE IN SECTION 9A WITH REGARD
TO ANTI-DUMPING DUTY.
CUSTOMS DUTIES
SURCHARGE OF CUSTOMS ON
IMPORTED GOODS LEVIED UNDER SECTION 90 OF THE FINANCE ACT, 2000 HAS BEEN ABOLISHED WITH
EFFECT FROM 1ST MARCH, 2001 AND NOTIFICATION NO. 26/2001- CUSTOMS HAS BEEN
ISSUED EXEMPTING ALL IMPORTED GOODS FROM THE LEVY OF SURCHARGE (.) CONSEQUENTLY, THERE
WILL BE NO SURCHARGE OF CUSTOMS ON ANY IMPORTED GOODS WITH EFFECT FROM 1ST MARCH, 2001(.)
IMPORTANT CHANGES IN THE RATES OF DUTY ON
DIFFERENT ITEMS ARE
BASIC CUSTOMS DUTY ON PULSES HAS BEEN INCREASED TO 5%(.) HOWEVER, THE SAME IS EXEMPT FROM
SAD (.) TARIFF RATE AND EFFECTIVE RATE ON COCONUTS FALLING UNDER SUB-HEADING NOS. 0801.11
AND 0801.19 INCREASED TO 70%(. ) PREFERENTIAL RATE FOR EACH OF THE ABOVE SUB-HEADINGS
INCREASED TO 60%(.) TARIFF RATE AND EFFECTIVE RATE ON COFFEE FALLING UNDER HEADING NO.
09.01 INCREASED TO 70%(. ) THE PREFERENTIAL RATE SHALL BE 70% LESS 13 PAISE PER KG (.)
TARIFF AND EFFECTIVE RATE ON TEA FALLING UNDER HEADING NO. 09.02 HAS BEEN INCREASED TO
70%(.) THE PREFERENTIAL RATE SHALL BE 70% LESS 26 PAISE PER KG (.) TARIFF RATE AND
EFFECTIVE RATE ON COPRA FALLING UNDER HEADING NO. 12.03 INCREASED TO 70%(.) THE
PREFERENTIAL RATE SHALL BE 60%(.) BASIC CUSTOMS DUTY ON EDIBLE GRADE CRUDE EDIBLE OILS
(OTHER THAN SOYABEAN OIL) IMPORTED FOR THE MANUFACTURE OF VANASPATI OR FOR REFINING
INCREASED TO 75%(.) THESE OILS CONTINUE TO BE EXEMPT FROM SAD (.) BASIC CUSTOMS DUTY ON
EDIBLE GRADE REFINED EDIBLE OILS (OTHER THAN SOYABEAN) INCREASED TO 85%(.) THESE OILS
CONTINUE TO
CRUDE PALM OIL & FRACTIONS THEREOF IMPORTED FOR THE MANUFACTURE OF VANASPATI SHALL BE
LEVIED TO A CUSTOMS DUTY OF 55%(.) HOWEVER, THIS CONCESSION SHALL BE RESTRICTED ONLY TO
SICK
BASIC CUSTOMS DUTY ON CLINKER AND CEMENT HAS BEEN REDUCED TO 25%(.) BASIC CUSTOMS DUTY ON
DBM, FUSED MAGNESIA AND SEA WATER MAGNESIA, WHEN IMPORTED BY A MANUFACTURER OF REFRACTORY
PRODUCTS REDUCED TO 15% (.) THE BASIC CUSTOMS DUTY ON SKO IMPORTED FOR THE PDS HAS BEEN
INCREASED TO 5%(.) LNG EXEMPTED FROM CVD (.) BASIC CUSTOMS DUTY ON DI-SODIUM CARBONATE
(SODA ASH) REDUCED FROM 35% TO 20%(.) BASIC CUSTOMS DUTY ON DMT, PTA, MEG AND CAPROLACTUM
REDUCED FROM 25% TO 20%(.) FULL EXEMPTION FROM ALL DUTIES OF CUSTOMS ON ENOXAPARIN, (BOTH
BULK DRUGS AND
EFFECTIVE BASIC CUSTOMS DUTY ON GRAPE GUARD PAPER USED FOR PACKING GRAPES INCREASED TO
5%(.) HOWEVER, THE ITEM IS EXEMPTED FROM SAD (.) BASIC CUSTOMS DUTY IN RESPECT OF PLANS,
DRAWINGS AND OTHER GOODS OF SUB-HEADING NO. 4906.00 INCREASED TO 25 PER CENT (.) EFFECTIVE
BASIC CUSTOMS DUTY HOWEVER CONTINUES AT NIL (.)
EFFECTIVE RATE OF BASIC CUSTOMS DUTY ON SILK
WASTE REDUCED FROM 35% TO 15%(.) EFFECTIVE RATE OF BASIC CUSTOMS DUTY ON COTTON WASTE
(HEADING NO. 52.02) REDUCED FROM 25% TO 15% (.) EFFECTIVE RATE OF DUTY ON FLAX FIBRE
(HEADING NO. 53.01) REDUCED FROM 25% TO 15% (.) TARIFF RATE IN RESPECT OF SEVERAL
CATEGORIES OF WOVEN FABRICS OF CHAPTERS 51, 52, 54 AND 58, AND ARTICLES OF APPAREL AND
CLOTHING ACCESSORIES OF CHAPTERS 61 AND 62, AND BLANKETS (OTHER THAN ELECTRIC BLANKETS) IS
BEING CHANGED SO AS TO INCORPORATE THE EFFECTIVE RATES OF BASIC CUSTOMS DUTY AS NOTIFIED
UNDER NOTIFICATION NO. 130/2000-CUSTOMS, DATED 16-10-2000(.) HOWEVER, THERE IS NO CHANGE
IN THE EFFECTIVE RATES OF BASIC CUSTOMS DUTY IN RESPECT OF THE ABOVE GOODS (.) UPHOLSTERY
FABRICS AND FABRICS OTHER THAN UPHOLSTERY FABRICS CONTINUE TO ATTRACT DIFFERENT RATES OF
BASIC CUSTOMS DUTY AS BEFORE (.) BASIC CUSTOMS DUTY ON RAW WOOL IMPORTED BY APEX/ STATE
HANDLOOM COOPERATIVE SOCIETY, KVIC AND BY STATE KHADI AND VILLAGE INDUSTRIES BOARD
INCREASED FROM NIL TO 5% (.) HOWEVER, THEY CONTINUE TO BE EXEMPTED FROM THE SPECIAL
ADDITIONAL DUTY OF CUSTOMS (SAD). TARIFF AND EFFECTIVE RATE OF CUSTOMS DUTY IN RESPECT OF
SLIVERS, YARNS ETC. OF GLASS FIBRES (SUB-HEADING NO. 7019.11) REDUCED FROM 35% TO 20% (.)
TARIFF AND EFFECTIVE RATE OF CUSTOMS DUTY IN RESPECT OF WOVEN FABRICS OF GLASS NOT
EXCEEDING 30 CM (SUB-HEADING NO. 7019.51) REDUCED FROM 35% TO 25%(.)
EFFECTIVE BASIC CUSTOMS DUTY ON CAPILLARY TUBES
AND RODS OF GLASS (SUB-HEADING NO. 70.02), FOR THE MANUFACTURE OF THERMOMETERS, REDUCED TO
25% SUBJECT TO END-USE CONDITION (.) EFFECTIVE RATE OF DUTY FOR GOLD INCLUDING ORNAMENTS
(BUT EXCLUDING ORNAMENTS STUDDED WITH STONES OR PEARLS) IMPORTED BY ELIGIBLE PASSENGERS
REDUCED TO RS. 250/- PER TEN GRAMS (.) EFFECTIVE CUSTOMS DUTY ON GOLD IMPORTED UNDER
SPECIAL IMPORT LICENCE BY MMTC, HHEC, STC ETC. REDUCED TO RS. 250/- PER TEN GRAMS (.)
BASIC CUSTOMS DUTY ON CUT AND POLISHED COLOURED GEMSTONES FALLING UNDER CHAPTER 71 REDUCED
FROM 35% TO 15%(.) BASIC CUSTOMS DUTY ON RAW PEARLS INCLUDING RAW CULTURED PEARLS; RUBIES,
EMERALDS AND SAPPHIRES (UNSET AND UNCUT); ROUGH DIAMONDS AND ROUGH SEMI-PRECIOUS STONES
INCREASED FROM NIL TO 5% (.) HOWEVER, THESE GOODS CONTINUE TO BE EXEMPTED FROM SAD (.)
CONCESSIONAL BASIC CUSTOMS DUTY OF 5% FOR
MELTING SCRAP EXTENDED TO ALL UNITS IRRESPECTIVE OF THE TECHNOLOGY ADOPTED FOR MELTING (.)
CONCESSIONAL BASIC CUSTOMS DUTY OF 25% FOR HOT ROLLED COILS OF STAINLESS STEEL AND OF IRON
AND NON-ALLOY STEEL RESTRICTED TO OTHER THAN SECONDS AND DEFECTIVES ONLY (.) SECONDSAND
DEFECTIVES OF HR COILS TO ATTRACT BASIC CUSTOMS DUTY OF 35%(.) CONCESSIONAL RATE OF IMPORT
DUTY IN RESPECT OF TOLL SMELTING OF COPPER REVERTS AND COPPER ANODE SLIME EXTENDED TO
BASIC, CVD AND SAD (.)
BASIC CUSTOMS DUTY ON GOODS OF CHAPTER 84 AND
85 (OTHER THAN ELECTRONICS / IT), IN GENERAL, RETAINED AT THE EXISTING LEVELS (.) 159
SPECIFIED TEXTILE MACHINERY AND PARTS THEREOF TO NOW ATTRACT BASIC CUSTOMS DUTY AT 5%(.)
PARTS OF OUTBOARD MOTORS TO NOW ATTRACT BASIC CUSTOMS DUTY AT 5% (.) HOWEVER, THEY ARE NOW
EXEMPTED FROM SPECIAL ADDITIONAL DUTY OF CUSTOMS (.) LPG CONVERSION KITS AND PARTS THEREOF
TO ATTRACT BASIC CUSTOMS DUTY OF 5% (BASIC)+16% (CVD) AS APPLICABLE TO CNG OR PROPANE
CONVERSION KITS (.) CONCESSIONAL RATE OF 5% BASIC CUSTOMS DUTY ALSO EXTENDED TO SPECIFIED
PARTS OF WIND OPERATED ELECTRICITY GENERATORS FOR MAINTENANCE (.) 105 SPECIFIED MACHINERY
AND TOOLS IMPORTED BY THREE SPECIFIED GEM AND JEWELLERY TRAINING INSTITUTES TO NOW ATTRACT
A CONCESSIONAL RATE OF BASIC CUSTOMS DUTY OF 15%(.) CONCESSIONAL RATE OF 5% (BCD) + 16%
(CVD) APPLICABLE TO SPECIFIED EQUIPMENT AND
BASIC CUSTOMS DUTY ON WORD PROCESSING MACHINES
(8469.11) AND ON PRINTED CIRCUIT ASSEMBLIES OF WORD PROCESSING MACHINES (8473.10) REDUCED
FROM 20% TO 15%. (.) BASIC CUSTOMS DUTY ON CALCULATING AND OTHER MACHINES OF HEADING
NO.84.70 AND THEIR PARTS (8473.21, 8473.29) REDUCED FROM 20% TO 15%. (.) BASIC CUSTOMS
DUTY ON AUTOMATIC TELLER MACHINES (ATMS) (8472.90) REDUCED FROM 20% TO 15%(.) BASIC
CUSTOMS DUTY ON PRINTED CIRCUIT ASSEMBLIES OF ATMS ALSO REDUCED FROM 20% TO 15%. (.)
CONCESSIONAL RATE OF 15% AD VALOREM HAS ALSO BEEN EXTENDED TO CASH DISPENSING MECHANISM
AND DEPOSIT MODULES FOR ATMS (8473.40)(.) THERE IS NO CHANGE IN THE DUTY RATES IN RESPECT
OF AUTOMATIC DATA PROCESSING MACHINES (COMPUTERS) AND OTHER MACHINES FALLING UNDER HEADING
NO.84.71 (.) PARTS OF MACHINES OF HEADING NO. 84.71, (INCLUDING INK CARTRIDGES WITH PRINT
HEAD ASSEMBLY AND SPRAY INK NOZZLE BUT EXCLUDING PPCBS) (8473.30) CONTINUE TO ATTRACT 5%
BASIC CUSTOMS DUTY (.) HOWEVER, THE EXEMPTION IS NOT AVAILABLE IN THE CASE OF AN ASSEMBLY
WHICH INCLUDES PPCBS, MOTHERBOARDS (WITH OR WITHOUT CPU) OR POWERSUPPLY UNIT (.) BASIC
CUSTOMS DUTY ON STATIC CONVERTERS USED IN AUTOMATIC DATA PROCESSING MACHINES AND UNITS
THEREOF, AND ALSO USED IN TELECOMMUNICATION APPARATUS (8504.40), INDUCTORS FOR POWER
SUPPLIES FOR AUTOMATIC DATA PROCESSING MACHINES (8504.50) AND THEIR SPECIFIED PARTS
(8504.90) REDUCED FROM 20% TO 15%. (.)
BASIC CUSTOMS DUTY ON TELEPHONE SETS, CORDLESS
PHONES, VIDEOPHONES, FAX MACHINES, TELEPRINTERS, TELEPHONIC OR TELEGRAPHIC SWITCHING
APPARATUS, OTHER APPARATUS FOR CARRIER CURRENT LINE SYSTEMS OR FOR DIGITAL LINE SYSTEMS
AND OTHER APPARATUS (8517.11,8517.19,8517.21,8517.22,8517.30,8517.50 AND 8517.80) REDUCED
FROM 25% TO 15% (.) BASIC CUSTOMS DUTY ON SPECIFIED LOUDSPEAKERS FOR TELECOMMUNICATION USE
(OTHER THAN CONE TYPE)(8518.29) REDUCED FROM 20% TO 15%. (.) BASIC CUSTOMS DUTY ON
TELEPHONE ANSWERING MACHINES (8520.20) IS BEING REDUCED FROM 20% TO 15%. (.)
BASIC CUSTOMS DUTY ON SPECIFIED UNRECORDED
MEDIA LIKE MAGNETIC TAPES OF SPECIFIC WIDTHS AND MAGNETIC DISCS (8523.11, 8523.12, 8523.13
AND 8523.20) AND OTHER UNRECORDED MEDIA FOR SOUND
BASIC CUSTOMS DUTY ON SPECIFIED DISCS FOR LASER
READING SYSTEMS, FOR REPRODUCING PHENOMENA OTHER THAN SOUND OR IMAGE (8524.31), MAGNETIC
TAPES (8524.40) AND OTHER RECORDED MEDIA (8524.91), FOR REPRODUCING PHENOMENA OTHER THAN
SOUND OR IMAGE REDUCED FROM 25% TO 15% (.)
BASIC CUSTOMS DUTY ON TRANSMISSION APPARATUS
(OTHER THAN
BASIC CUSTOMS DUTY ON FLAT PANEL DISPLAYS OF A
KIND USED IN AUTOMATIC DATA PROCESSING MACHINES AND TELECOMMUNICATION APPARATUS (8531.80)
AND PARTS OF INDICATOR PANELS INCORPORATING LIQUID CRYSTAL DEVICES OR LIGHT EMITTING
DIODES (8531.90) REDUCED FROM 20% TO 15% (.) BASIC CUSTOMS DUTY ON POWER CAPACITORS
(8532.10) REDUCED FROM 35% TO 15% AND THE BASIC CUSTOMS DUTY ON ALUMINIUM ELECTROLYTIC
FIXED CAPACITORS, (8532.22), CERAMIC DIELECTRIC, SINGLE LAYER FIXED CAPACITORS (8532.23),
FIXED CAPACITORS CONTAINING A DIELECTRIC OF PAPER OR PLASTICS (8532.25), OTHER TYPES OF
FIXED CAPACITORS (8532.29) AND VARIABLE OR ADJUSTABLE (PRE-SET) CAPACITORS (8532.30)
REDUCED FROM 20% TO 15%. (.) BASIC CUSTOMS DUTY ON SPECIFIED ELECTRONIC/ELECTROMECHANICAL
SWITCHES (8536.50), PLUGS AND SOCKETS FOR CO-AXIAL CABLES AND PRINTED CIRCUITS (8536.69),
CONNECTION AND CONTACT ELEMENTS FOR WIRES AND CABLES (8536.90), SPECIFIED PARTS OF GOODS
OF HEADING 85.36(8538.90), PROXIMITY CARDS AND TAGS (8543.81), ELECTRICAL MACHINES WITH
TRANSLATION OR DICTIONARY FUNCTIONS (8543.89), SPECIFIED PARTS OF GOODS OF HEADING
NO.85.43 AND SPECIFIED ELECTRIC CONDUCTORS USED FOR TELECOMMUNICATION APPLICATIONS
(8544.41 OR 8544.49 AND 8544.51) REDUCED FROM 20% TO 15% (.)
CONCESSIONAL RATES OF DUTY FOR SPECIFIED RAW
MATERIALS FOR THE ELECTRONICS INDUSTRY IS BEING CONTINUED AND THERE IS NO CHANGE IN THE
DUTY RATE STRUCTURE (.) HOWEVER, THERE ARE MINOR TECHNICAL CHANGES BY WAY OF AMENDMENTS IN
SOME OF THE EXISTING
BASIC CUSTOMS DUTY ON MOTOR CARS AND OTHER
MOTOR VEHICLES; MOTOR CYCLES AND SIDE CARS, ETC. (HEADING NOS. 87.03 AND 87.11) RAISED
FROM 35% TO 105% (.) HOWEVER, EFFECTIVE RATE ON SUCH MOTOR VEHICLES (INCLUDING THOSE
PRESENTED UNASSEMBLED OR DIS-ASSEMBLED) PRESCRIBED AT 35% (.) IN OTHER WORDS, THE TARIFF
RATE WILL APPLY IN RESPECT OF SECOND HAND (USED) VEHICLES (.) BASIC CUSTOMS DUTY EXEMPTION
ON AEROPLANES, HELICOPTERS, SIMULATORS OF AEROPLANES AND GLIDERS (CHAPTER 88) WITHDRAWN
AND 3% DUTY IMPOSED (.) SIMILARLY BASIC CUSTOMS DUTY EXEMPTION ON ALL GOODS FALLING UNDER
HEADING NOS. 89.01, 89.02, 89.04, 8905.10 AND 8905.90 WITHDRAWN AND 5% DUTY IMPOSED (.)
HOWEVER, THESE GOODS ARE EXEMPT FROM SPECIAL ADDITIONAL DUTY OF CUSTOMS (.) DIGITAL
CAMERAS INCLUDED IN THE LIST OF EXEMPTED ITEMS FOR IMPORT BY ACCREDITED PRESS CAMERAMAN
(.) PERIOD FOR AVAILING THE EXEMPTION AND FOR USE/ RETENTION OF SUCH GOODS BY AN
ACCREDITED PRESS CAMERAMAN OR ACCREDITED JOURNALIST REDUCED FROM FIVE YEARS TO TWO YEARS
(.) EFFECTIVE RATE OF BASIC CUSTOMS DUTY ON CINEMATOGRAPHIC CAMERAS AND PROJECTORS
(HEADING 90.07), APPARATUS AND EQUIPMENT FOR PHOTOGRAPHIC (INCLUDING CINEMATOGRAPHIC)
LABORATORIES AND NEGATOSCOPES AND THEIR PARTS AND ACCESSORIES (SUB-HEADING NOS. 9010.10,
9010.50 AND 9010.90) REDUCED FROM 25% TO 15% (.) EFFECTIVE RATE OF BASIC CUSTOMS DUTY ON
LAMPS AND LIGHTING FITTINGS IMPORTED FOR USE IN SPORTS OR GAMES STADIA, BY SPECIFIED
SPORTS AUTHORITIES RECOGNISED BY THE GOVERNMENT REDUCED TO 15% (.) EFFECTIVE RATE OF BASIC
CUSTOMS DUTY ON PARTS OF PENS (SUB-HEADING NOS. 9608.60, 9608.91 AND 9608.99) HAVE BEEN
REDUCED TO 15% (.) BAGGAGE HAS BEEN EXEMPTED FROM SAD (.) EFFECTIVE DUTY ONBAGGAGE HAS
BEEN FIXED AT 60% ADV. AND IN THE CASE OF SPECIFIED ARTICLES UNDER TRANSFER OF RESIDENCE
RULES, THE SAME HAS BEEN KEPT AT 35%(.)
MISCELLANEOUS: -
COURIER IMPORTS AND EXPORTS (CLEARANCE)
REGULATIONS, 1998 HAS BEEN AMENDED SO AS TO ENHANCE THE VALUE LIMIT FOR COMMERCIAL SAMPLES
FOR EXPORT FROM RS. 10000/- TO RS. 50000/- (.) RATE OF INTEREST ON WAREHOUSED GOODS UNDER
SECTION 61 (2) OF THE CUSTOMS ACT, 1962 HAS BEEN PRESCRIBED AT A FLAT RATE OF 24% PER
ANNUM (.) THIS IS EFFECTIVE FROM 16.3.2001 AND THE GRADED RATE OF INTEREST STANDS
ABOLISHED FROM 16.3.2001 (.)
CENTRAL EXCISE
GENERAL:
NEW CENTRAL EXCISE RULES HAVE BEEN NOTIFIED (.)
THESE RULES SHALL COME INTO FORCE ON THE 1 ST DAY OF JULY 2001(.)
CENVAT RULES
STORAGE TANKS INCLUDED IN THE DEFINITION OF
CAPITAL GOODS (.) CREDIT OF SPECIAL EXCISE DUTY IS ALLOWED ON ALL INPUTS WITH EFFECT FROM
1st MARCH, 2001 (.) CREDIT OF NATIONAL CALAMITY CONTINGENT DUTY (NCD) ALLOWED
TO BE USED FOR PAYMENT OF NATIONAL CALAMITY CONTINGENT DUTY ON THE FINAL PRODUCTS (.)
SCOPE OF RATE OF DUTY AND VALUE OF INPUTS AND CAPITAL GOODS REMOVED AS SUCH, CLARIFIED (.)
FACILITY AVAILABLE TO MOULDS AND DIES IN RULE 57AC(5)(B) EXTENDED TO JIGS AND FIXTURES (.)
PERMISSION OF COMMISSIONER FOR CLEARANCE FROM THE JOB-WORKERS PREMISES IN EACH INDIVIDUAL
CASE IS RELAXED TO GENERAL PERMISSION VALID IN RESPECT OF CLEARANCES IN A FINANCIAL YEAR
SUBJECT TO SAFEGUARDS AND CONDITIONS THAT THE COMMISSIONER MAY PRESCRIBE (.) CREDIT OF
DIFFERENTIAL EXCISE DUTY PAID SUBSEQUENT TO CLEARANCE OF GOODS ALLOWED UNDER CENVAT RULES
(.)
IMPOSITION OF EXCISE DUTY ON SPECIFIED GOODS:
EXCISE DUTY HAS BEEN IMPOSED ON A FEW SPECIFIED
GOODS AT THE CONCESSIONAL RATE OF 4% AD VALOREM (.) THESE GOODS WERE HITHERTO EXEMPT FROM
EXCISE DUTY (.)
THESE ARE:
(1) CANDLES (3406.10)
(2) FOOTWEAR HAVING RETAIL PRICE UPTO RS.125
PER PAIR (6401.12)
(3) TABLEWARE AND KITCHENWARE OF GLASS (70.15)
(4) IMITATION JEWELLERY (7101.50)
(5) VACUUM AND GAS FILLED BULBS OF RETAIL PRICE
NOT
(6) BLACK AND WHITE TELEVISION SETS
(7) SUNGLASSES FOR CORRECTING VISION (9004.90)
(8) WATCHES AND CLOCKS OF RETAIL PRICE NOT
EXCEEDING RS.500 PER PIECE (91)
(9) RUBBERISED COIR MATTRESSES (94.04)
(10) TOOTHBRUSHES (96.03)
THIS CONCESSION WOULD BE AVAILABLE ONLY IF NO
MODVAT CREDIT OF INPUTS OR CAPITAL GOODS (.) IF CAPITAL GOODS ARE COMMON FOR THESE GOODS
AND OTHER DUTIABLE GOODS, THEN CAPITAL GOODS CREDIT SHALL NOT BE DENIED (.) BARRING
WATCHES HAVING A RETAIL SALE PRICE LESS THAN RS 500 PER PIECE, ALL OTHER COMMODITIES ARE
ELIGIBLE FOR THE SSI CONCESSION (.) HOWEVER IN THE FINANCIAL YEAR 2000-2001 I.E. IN MARCH,
2001, THEY CAN AVAIL OF FULL EXEMPTION UPTO AN AGGREGATE VALUE OF CLEARANCES OF RS 10
LAKHS ONLY (.) AFTER AVAILING OF FULL EXEMPTION, MANUFACTURERS OF SPECIFIED GOODS
CAN OPT TO PAY 4% DUTY (WITHOUT CENVAT)(.) EVEN IN THE NEXT FINANCIAL YEAR, MANUFACTURERS
OF THESE COMMODITIES (BARRING WATCHES HAVING A RETAIL SALE PRICE LESS THAN RS 500 PER
PIECE), ARE ELIGIBLE FOR SSI EXEMPTION UNDER NOTIFICATION 8/2001-CE AND 9/2001-CE. AFTER
AVAILING OF FULL EXEMPTION UNDER NOTIFICATION NO.8/2001, A MANUFACTURER MAY OPT TO PAY
DUTY @4%, IF HE SO DESIRES (.)
IN RESPECTS OF THESE GOODS, THE LEVY WILL APPLY
ON PRE-BUDGET STOCK ALSO AND THEREFORE, NECESSARY ACTION MAY BE TAKEN FOR VERIFICATION OF
PRE-BUDGET STOCK, WHEREVER REQUIRED (.)
IMPORTANT CHANGES IN CENTRAL EXCISE DUTY ON DIFFERENT ITEMS ARE AS UNDER:
MAIZE STARCH HAS BEEN FULLY EXEMPTED FROM THE
LEVY OF EXCISE DUTY (.) CONCESSIONAL RATE OF CENVAT DUTY AVAILABLE TO BISCUITS PUT UP IN
RETAIL PACKS OF 100GMS WITH PRICE BELOW RS 5/- HAS BEEN WITHDRAWN AND CONSEQUENTLY THEY
WILL BE CHARGED TO A CENVAT OF 16%(.) JAMS, JELLIES, MARMALADES, FRUIT PUREES, FRUIT
JUICES, VEGETABLE JUICES ETC. ALL FALLING UNDER SUB-HEADING NO. 2001.10, HAVE BEEN
EXEMPTED FROM LEVY OF CENVAT RATE OF 16%(.) NON-ALCOHOLIC BEVERAGES OF THIS CHAPTER
DISPENSED THROUGH VENDING MACHINES HAVE BEEN EXEMPTED FROM CENVAT (.) NOTE 3 TO CHAPTER 21
HAS BEEN AMENDED SO AS TO REDEFINE THE TERM ‘PAN MASALA’ (.) AS A RESULT OF THIS
AMENDMENT, PAN MASALA CONTAINING TOBACCO IS NO LONGER CLASSIFIABLE UNDER HEADING NO.
21.06(.) THIS HEADING WILL, THUS COVER ONLY ‘PAN MASALA’ NOT CONTAINING TOBACCO
(.) THE TOTAL DUTY ON GOODS FALLING UNDER HEADING NO. 21.06 I.E. PAN MASALA NOT CONTAINING
TOBACCO HAS BEEN FIXED AT 55%(.) IT SHALL COMPRISE 16% CENVAT PLUS 16% SPECIAL EXCISE DUTY
PLUS 23% NATIONAL CALAMITY CONTINGENT DUTY (.) HOWEVER, PAN MASALA CLEARED BY UNITS
OPERATING UNDER EITHER NOTIFICATION NO. 32/99-CE OR NO. 33/99-CE BOTH DATED 8TH JULY, 1999
HAS BEEN EXEMPT FROM THE LEVY OF NATIONAL CALAMITY CONTINGENT DUTY (.) MOREOVER, GOODS
FALLING UNDER HEADING NO. 21.06 AND CONTAINING NOT MORE THAN 10% BETEL NUT BY WEIGHT AND
NOT CONTAINING TOBACCO IN ANY PROPORTION HAVE BEEN EXEMPT FROM THE LEVY OF NATIONAL
CALAMITY CUSTOMS DUTY (.)
SAUCES, KETCHUPS AND LIKE PREPARATIONS FALLING
UNDER SUB-HEADING NO. 2103.10 HAVE BEEN EXEMPTED FROM THE LEVY OF CENVAT RATE OF 16% (.)
SOUPS AND BROTHS AND LIKE PREPARATIONS FALLING UNDER SUB-HEADING NO. 2104.10 HAVE BEEN
EXEMPTED FROM THE LEVY OF CENVAT RATE OF 16% (.) ICE-CREAMS AND NON-ALCOHOLIC BEVERAGES OF
THIS CHAPTER, DISPENSED THROUGH VENDING MACHINES HAVE BEEN EXEMPTED FROM CENVAT (.) FRUIT
PULP OR FRUIT JUICE BASED DRINKS FALLING UNDER HEADING NO. 2202.40 HAVE BEEN EXEMPTED FROM
THE LEVY OF CENVAT RATE OF 16%(.) NON-ALCOHOLIC BEVERAGES OF THIS CHAPTER DISPENSED
THROUGH VENDING MACHINES HAVE BEEN EXEMPTED FROM CENVAT (.) CLAUSE 129 OF THE FINANCE
BILL, 2001 IMPOSES BY SURCHARGE A DUTY OF EXCISE TO BE CALLED THE NATIONAL CALAMITY
CONTINGENT DUTY (NCD) ON PAN MASALA, PAN MASALA CONTAINING TOBACCO, BIRIS, CIGARETTES AND
OTHER TOBACCO PRODUCTS. THIS DUTY IS APPLICABLE TO GOODS SPECIFIED IN THE SEVENTH SCHEDULE
TO THE FINANCE BILL. WHILE THE RATES OF NCD ARE SPECIFIC FOR BIRIS & CIGARETTES, THEY
ARE AD-VALOREM IN THE CASE OF OTHER PRODUCTS (.) THE PROVISIONS OF THE CENTRAL EXCISE ACT
WILL APPLY TO THE LEVY AND COLLECTION OF THIS DUTY (.)
NOTE 6 HAS BEEN INSERTED IN CHAPTER 24 SO AS TO
INCLUDE ‘PAN
THERE IS NO CHANGE IN BED AS WELL AS AED
LEVIABLE ON CIGARETTES AND BIRIS (.)
CIGARETTES SHALL BE LEVIED TO A NCD AS
HEREUNDER:
(a) NON FILTER CIGARETTES NOT EXCEEDING 60 MM. IN
LENGTH SHALL BE LEVIED A NCD OF RS. 20/- PER THOUSAND;
(b) NON FILTER CIGARETTES EXCEEDING 60 MM. BUT NOT
EXCEEDING 70 MM. IN LENGTHS SHALL BE LEVIED A NCD OF RS. 60/- PER THOUSAND;
(c) FILTER CIGARETTES NOT EXCEEDING 70 MM. IN
LENGTH SHALL BE
PER THOUSAND;
(d) FILTER CIGARETTES EXCEEDING 70 MM. BUT NOT
EXCEEDING 75
(e) FILTER CIGARETTES EXCEEDING 75 MM. BUT NOT
EXCEEDING 85MM. SHALL BE LEVIED A NCD OF
RS. 190/- PER THOUSAND;
(f) OTHER
CIGARETTES SHALL BE LEVIED A NCD OF RS. 235/- PER
(g) CIGARETTES OF TOBACCO SUBSTITUTES SHALL BE
LEVIED A NCD OF RS. 150/- PER THOUSAND
(.)
BIRIS SHALL BE LEVIED TO A NCD AS HEREUNDER:
(a) BIRIS FALLING UNDER SUB-HEADING NO. 2404.31
SHALL BE LEVIED A NCD OF RE. 1.00/- PER
THOUSAND;
(b) BIRIS FALLING UNDER SUB-HEADING NO. 2404.39
SHALL BE LEVIED
CHEWING TOBACCO AND PREPARATIONS CONTAINING
CHEWING TOBACCO SHALL BE CLASSIFIED UNDER SUB-HEADING NO. 2404.41 AND SHALL ATTRACT A
TOTAL EXCISE DUTY OF 60%(.) THIS SHALL INCLUDE A BED OF 16% PLUS A SED OF 16% PLUS A
REVISED AED OF 18% AND A NATIONAL CALAMITY CONTINGENT DUTY OF 10% (.) SNUFF OF TOBACCO AND
SUCH OTHER PREPARATIONS OF TOBACCO FALLING UNDER SUB-HEADINGS 2404.50 AND 2404.99 SHALL
ATTRACT A TOTAL EXCISE DUTY OF 60% (.) THIS SHALL INCLUDE A BED OF 16% PLUS A SED OF 16%
PLUS A REVISED AED OF 18% AND A NATIONAL CALAMITY CONTINGENT DUTY OF 10% (.) HOOKAH
TOBACCO ALREADY AVAILS EXEMPTION FROM THE LEVY OF EXCISE DUTY (.) IN ADDITION, HOOKAH
TOBACCO HAS ALSO BEEN EXEMPT FROM THE LEVY OF NCD (.)
EXCISE DUTY ON WHITE CEMENT INCREASED FROM 24%
TO 32%(.)
DUTY ON HSD INCREASED FROM 12% TO 16% AND THAT
ON MOTOR SPIRIT FROM 16% TO 32%(. ) CNG WILL NOW BE CHARGED TO DUTY AT THE RATE OF 50% OF
CENVAT (I.E 8%)(.) CONCOMITANTLY CHAPTER NOTE 10 HAS ALSO BEEN INSERTED SO AS TO STIPULATE
THAT THE PROCESS OF COMPRESSION OF NATURAL GAS (EVEN IF IT DOES NOT INVOLVE LIQUEFACTION)
AMOUNTS TO MANUFACTURE (.)
DESCRIPTION OF INTRAVENOUS FLUIDS (IV FLUIDS)
HAS BEEN CHANGED TO INTRAVENOUS FLUIDS, FOR SUGAR, ELECTROLYTE OR FLUID REPLENISHMENT (.)
THIS CHANGE IS CLARIFICATORY IN NATURE (.) REFERENCE TO BRAND NAME, E MAL, IN THE
EXEMPTION RELATING TO ARTEETHER HAS BEEN DELETED (.) THE DESCRIPTION NOW READS AS “
ARTEETHER OR FORMULATIONS OF ARTEMISININ”(.)
BASIC EXCISE DUTY ON LAUNDRY SOAP INCREASED
FROM 8% TO 16%(.)
BASIC EXCISE DUTY ON MATCHES INCREASED AS
DETAILED IN NOTIFICATION NO.3/2001-CENTRAL EXCISE (.) THE RATES ARE NOW PRESCRIBED FOR BOX
SIZES CONTAINING 50 MATCHES ONLY (.)
IT HAS ALSO BEEN PROVIDED THAT THE CONCESSIONAL
RATES OF DUTY FOR DIFFERENT BOX SIZES MANUFACTURED BY DIFFERENT SECTORS SHALL BE WORKED
OUT ON PRO-RATA BASIS. E.G. THE RATES OF DUTY ON BOXES CONTAINING 100 MATCHES SHALL BE
TWICE THE RATE PRESCRIBED FOR 50 MATCHES, APPLICABLE TO THE SECTOR (.) SIMILARLY, THE RATE
OF DUTY FOR BOXES CONTAINING 25 MATCHES SHALL BE HALF OF THE RATE PRESCRIBED FOR 50
MATCHES (.)
EXEMPTION TO CUT TYRES AND TUBES IS WITHDRAWN
(.)
BASIC CENTRAL EXCISE DUTY ON CORRUGATED BOXES
ETC OF SUB-HEADING NO. 4819.12 INCREASED TO 16%(.) EXEMPTION ON CORRUGATED PAPER OR
PAPERBOARD OR CONVERTED TYPES OF PAPER OR PAPERBOARD INTENDED FOR THE MANUFACTURE OF
CORRUGATED BOXES ETC IS WITHDRAWN (.)
CAPACITY BASED COMPOUNDED LEVY ON INDEPENDENT
TEXTILE PROCESSORS MANUFACTURING PROCESSED TEXTILE FABRICS UNDER SECTION 3A OF THE CENTRAL
EXCISE ACT IS BEING WITHDRAWN WITH IMMEDIATE EFFECT, I.E., FROM 1-3-2001 (.) WITH EFFECT
FROM 1-3-2001, PROCESSED TEXTILE FABRICS, WHETHER MANUFACTURED BY COMPOSITE MILLS OR BY AN
INDEPENDENT PROCESSOR WOULD ATTRACT COMPOSITE/ AGGREGATE DUTY [CENVAT + AED (ST)] OF 16%
AD VALOREM (. )THE DUTY WILL BE APPORTIONED EQUALLY BETWEEN CENVAT AND AED (ST) (.)
IN RESPECT OF FABRICS WOVEN AND PROCESSED
WITHIN THE FACTORY, THE COMPOSITE MILLS WILL BE ELIGIBLE FOR CENVAT CREDIT ON ACTUALS
BASIS UNDER RULE 57AB(.) IN RESPECT OF FABRICS PROCESSED FROM UNPROCESSED FABRICS NOT
WOVEN IN THE SAME COMPOSITE MILL, THEY WOULD BE ELIGIBLE TO TAKE DEEMED CREDIT @ 20% OF
THE AGGREGATE DUTY (16%) OF CENVAT AND AED (ST) IN RESPECT OF 100% COTTON FABRICS AND @
40% OF 16% IN RESPECT OF OTHER PROCESSED FABRICS(I.E. BLENDED FABRICS AND FABRICS OF
MAN-MADE FILAMENT OR FIBRES)(.) DEEMED CREDIT IS IN LIEU OF DUTY PAID ON FIBRES AND YARNS
AND SHALL BE UTILIZED TOWARDS PAYMENT OF CENVAT OR AED (ST)(.) CENVAT CREDIT OF DUTY PAID
ON DYES, CHEMICALS, CONSUMABLES, PACKAGING MATERIALS AND CAPITAL GOODS WILL BE AVAILABLE
TO COMPOSITE MILLS ON ACTUAL BASIS UNDER RULE 57AB OF THE CENTRAL EXCISE RULES, 1944
SUBJECT TO THE PROVISIONS OF RULE 57AC IN THE CASE OF CAPITAL GOODS(.) IT HAS BEEN
FURTHER PROVIDED THAT A COMPOSITE MILL WOULD AVAIL OF DEEMED CREDIT ONLY IN RESPECT OF
UNPROCESSED FABRICS NOT WOVEN IN THE SAME COMPOSITE MILL AND NO CENVAT CREDIT HAS BEEN
TAKEN BY THE SAID COMPOSITE MILL IN RESPECT OF THE INPUTS CONTAINED IN THE UNPROCESSED
FABRICS UNDER ANY OTHER RULE OR NOTIFICATION(.) COMPOSITE MILL HAS BEEN DEFINED TO INCLUDE
A MULTI-LOCATIONAL COMPOSITE MILL ALSO (.)
MANUFACTURERS OTHER THAN COMPOSITE MILLS, THAT
IS, INDEPENDENT PROCESSORS ,WOULD BE ELIGIBLE TO AVAIL DEEMED CREDIT IN RESPECT OF 100%
COTTON FABRICS @ 25% OF THE AGGREGATE OF CENVAT AND AED (ST) (I.E. 25% OF 16%)(.) IN
RESPECT OF OTHER FABRICS, THE RATE OF DEEMED CREDIT IS 45% OF THE AGGREGATE OF CENVAT AND
AED (ST)(.)THE DEEMED CREDIT FOR INDEPENDENT PROCESSORS IS IN LIEU OF DUTY PAID ON FIBRES,
YARNS, DYES, CHEMICALS, CONSUMABLES AND PACKAGING MATERIALS AND THE SAME SHALL BE UTILIZED
TOWARDS PAYMENT OF CENVAT OR AED (ST)(.) CENVAT CREDIT OF DUTY PAID ON CAPITAL GOODS WILL
BE AVAILABLE TO INDEPENDENT PROCESSORS ON ACTUAL BASIS UNDER RULE 57AB OF THE CENTRAL
EXCISE RULES, 1944 SUBJECT TO THE PROVISIONS OF RULE 57AC (.)
IT MAY ALSO BE NOTED THAT THE DEEMED CREDIT CAN
BE TAKEN BY A COMPOSITE MILL OR INDEPENDENT PROCESSOR ONLY AT THE TIME OF CLEARANCE OF
PROCESSED FABRICS(.) IF PROCESSED FABRICS ARE EXPORTED UNDER BOND , THEN THE DEEMED CREDIT
IN RESPECT OF SUCH FABRICS CAN BE UTILIZED FOR PAYMENT OF DUTY ON OTHER PROCESSED FABRICS
CLEARED FOR HOME CONSUMPTION(.)
EFFECTIVE RATE OF BASIC EXCISE DUTY ON CARDED
WOOL, OTHER THAN ‘LEFA’ (SUB-HEADING NO. 5105.10), WOOL TOPS AND OTHER COMBED
WOOL (SUB-HEADING NOS. 5105.21 AND 5105.29), YARN OF CARDED WOOL (SUB-HEADING NOS.
5106.11, 5106.12 AND 5106.13) AND YARN OF COMBED WOOL (SUB-HEADING NOS. 5107.11 AND
5107.12) RAISED FROM 8% TO 16% (.)
TARIFF RATE OF AED (ST) IN RESPECT OF WOVEN
FABRICS OF CARDED OR COMBED WOOL OR FINE ANIMAL HAIR (SUB-HEADING NOS. 5110.10, 5110.21,
5110.22, 5110.23, 5110.29, 5111.10, 5111.21, 5111.22, 5111.23 AND 5111.29) IS RAISED FROM
5% TO 8% (.) HOWEVER, THE EFFECTIVE RATE OF AED (ST) IN RESPECT OF THE AFORESAID WOVEN
FABRICS, NOT SUBJECTED TO ANY PROCESS (SUB-HEADING NOS. 5110.10 AND 5111.10) CONTINUES TO
BE NIL. FURTHER, PROCESSED FABRICS OF CARDED/ COMBED WOOL AND CARDED/ COMBED FINE ANIMAL
HAIR WILL ATTRACT A COMPOSITE RATE [ CENVAT + AED (ST)] OF ONLY 16% ADV WITH THE DUTY
BEING APPORTIONED EQUALLY BETWEEN CENVAT AND AED (ST) (.).
SSI EXEMPTION IN RESPECT OF COTTON YARN, NOT
CONTAINING SYNTHETIC STAPLE FIBRES (HEADING NO. 52.05 OR 52.06) IS BEING WITHDRAWN, W.E.F.
1-3-2001 (.) HOWEVER, THEY WILL CONTINUE TO ATTRACT THE EFFECTIVE BASIC EXCISE DUTY OF 8%
ADV. AND AED (T & TA) @ 15% OF BASIC EXCISE DUTY(.) HOWEVER, COTTON SEWING THREAD, NOT
SEPARATE SUB-HEADING NOS., 5207.10 AND 5208.10,
HAVE BEEN CREATED FOR DENIM FABRICS IN BOTH THE FIRST SCHEDULE TO THE CENTRAL EXCISE
TARIFF ACT AND THE SCHEDULE TO THE AED(ST) ACT(.) A NEW CHAPTER NOTE 4 HAS BEEN
INCORPORATED IN CHAPTER 52 DEFINING DENIM FABRICS (.) TARIFF RATE OF BASIC EXCISE DUTY AND
AED (ST) IN RESPECT OF DENIM FABRIC WOULD BE 16% ADV. AND 8% ADV. RESPECTIVELY(.) HOWEVER,
DENIM FABRICS (WHETHER OR NOT PROCESSED) WOULD CONTINUE TO ATTRACT A COMPOSITE RATE[
CENVAT + AED (ST)] OF ONLY 16% ADV(.)
EFFECTIVE RATE OF BASIC EXCISE DUTY IN RESPECT
OF FLAX YARN,
THE CONCESSIONAL RATE OF EXCISE DUTY ON VISCOSE
FILAMENT YARN (HEADING NO. 54.03) PURCHASED BY REGISTERED CO-OPERATIVE SOCIETY/
CORPORATION (APEX/ NATIONAL/ STATE) HAS BEEN WITHDRAWN(.) THESE GOODS WILL NOW ATTRACT A
CENVAT DUTY OF 16% ADV(.) AIR-MINGLED YARNS OF THIS CHAPTER MANUFACTURED FROM DUTY
EFFECTIVE RATE OF EXCISE DUTY IN RESPECT OF
YARN OF SHODDY UPTO 10 COUNTS, IF MADE OUT OF USED OR NEW RAGS, FALLING UNDER HEADING NOS.
55.09 OR 55.10, RAISED FROM 8% ADV. TO 16% ADV(.) AIR-MINGLED YARNS OF THIS CHAPTER
MANUFACTURED FROM DUTY PAID YARNS BY AN INDEPENDENT YARN PROCESSOR HAVE BEEN EXEMPTED FROM
DUTY AS IN THE CASE OF MULTIPLE (FOLDED)/CABLED YARNS(.)
SSI EXEMPTION IS BEING EXTENDED IN RESPECT OF
CHENILLE YARN, FALLING UNDER SUB-HEADING NO. 5606.00, W.E.F 1-3-2001 (.)SPECIAL EXCISE
DUTY OF 8% ON CARPETS AND OTHER TEXTILE FLOOR COVERINGS (SUB-HEADING NOS. 5702.19 AND
5703.90) HAS BEEN ABOLISHED(.) SSI EXEMPTION IS BEING EXTENDED TO UNPROCESSED WOVEN PILE
FABRICS OF COTTON (5801.21) AND MAN-MADE FIBRES (5801.31), W.E.F. 1-3-2001 (.)
LINOLEUM AND OTHER FLOOR COVERINGS (
SUB-HEADING NOS. 5904.10, 5904.91 AND 5904.92), TEXTILE WALL COVERINGS (SUB-HEADING NO.
5905.00) AND PAINTED CANVAS, STUDIO BACK-CLOTHS OR THE LIKE (FALLING UNDER SUB-HEADING NO.
5907.90), WHICH HITHERTO ATTRACTED SPECIAL EXCISE DUTY (SED) OF 8% ADV. ARE NO LONGER
CHARGEABLE TO SED (.)
THE TARIFF RATE IN RESPECT OF GOODS FALLING
UNDER SUB-HEADING NOS. 6201.00 AND 6202.00 RAISED TO 16% AD VALOREM W.E.F. 1-3-2001 (.)
ALL GOODS FALLING IN THIS CHAPTER, OTHER THAN THOSE BEARING A REGISTERED BRAND NAME OR
SOLD UNDER A REGISTERED BRAND NAME, ARE BEING EXEMPTED FROM EXCISE DUTY VIDE AN EXEMPTION
NOTIFICATION (.) IN OTHER WORDS, GOODS FALLING UNDER SUB-HEADING NOS. 6201.00 AND 6202.00
AND BEARING A REGISTERED BRAND NAME OR SOLD UNDER A REGISTERED BRAND NAME, WILL ATTRACT
EFFECTIVE EXCISE DUTY OF 16% ADV. W.E.F. 1-3-2001(.) NEW CHAPTER NOTES 3 AND 4 HAVE BEEN
INSERTED IN CHAPTER 62 SO AS TO DEFINE BRAND NAME AND ALSO TO SPECIFY THAT CERTAIN
PROCESSES, LIKE AFFIXING A BRAND NAME, LABELING, RE-LABELLING OR REPACKING IN RELATION TO
GOODS OF THIS CHAPTER, SHALL AMOUNT TO MANUFACTURE (.) FURTHER, TARIFF VALUE, @ 60% OF THE
RETAIL SALE PRICE, IS BEING FIXED IN RESPECT OF THESE GOODS (.)
SUITABLE PROVISIONS HAVE BEEN MADE IN THE
CENVAT RULES TO ENABLE THE MANUFACTURER OF THE AFORESAID FINISHED GOODS TO AVAIL CENVAT
CREDIT OF DUTY PAID IN RESPECT OF INPUTS LYING IN STOCK OR IN PROCESS OR INPUTS CONTAINED
IN THE FINISHED GOODS LYING IN STOCK ON THE 1ST DAY OF MARCH, 2001 (.)GOODS FALLING UNDER
CHAPTER 62 HAVE BEEN EXCLUDED FROM SSI EXEMPTION W.E.F.
1-3-2001 (.)
TARIFF RATE IN RESPECT OF FOOTWEAR OF RETAIL
SALE PRICE NOT
SPECIAL EXCISE DUTY (SED) OF 8% ADV. ON AND
VITRIFIED TILE AND GLAZED TILES, (SUB-HEADING NOS. 6905.10 AND 6906.10) HAS BEEN ABOLISHED
(.) CONSEQUENTLY, THESE GOODS WOULD NOW ATTRACT
EXEMPTION HITHERTO AVAILABLE IN RESPECT OF
TABLE AND KITCHENWARE OF GLASS (SUB-HEADING NO. 7015.00) IS WITHDRAWN(.) HOWEVER, THESE
GOODS WOULD ATTRACT EFFECTIVE EXCISE DUTY OF 4% ADV. SUBJECT TO THE CONDITION THAT THE
MANUFACTURER OF THESE GOODS WOULD NOT BE ELIGIBLE TO TAKE CENVAT CREDIT OF DUTY PAID ON
INPUTS OR CAPITAL GOODS (.)
PLAIN GOLD JEWELLERY MANUFACTURED IN A 100% EOU OR A UNIT IN AN EXPORT PROCESSING ZONE
(EPZ) AND CLEARED TO THE DOMESTIC TARIFF
TRACK GOODS MANUFACTURED FROM DUTY PAID RAILS,
ON JOB-WORK BASIS, TO ATTRACT EXCISE DUTY ONLY ON THE VALUE ADDITION BY THE JOB-WORKER AND
NOT ON THE FULL VALUE OF THE TRACK MATERIALS (.)
BASIC EXCISE DUTY ON VACUUM AND GAS FILLED
BULBS OF RETAIL PRICE NOT EXCEEDING RS. 20 PER BULB, FALLING UNDER SUB-HEADING NO.
8539.10, INCREASED TO 16% AD VALOREM (.)HOWEVER, THESE GOODS WOULD ATTRACT EFFECTIVE
EXCISE DUTY OF 4% ADV. SUBJECT TO THE CONDITION THAT THE MANUFACTURER OF THESE GOODS WOULD
NOT BE ELIGIBLE TO TAKE CENVAT CREDIT OF DUTY PAID ON INPUTS OR CAPITAL GOODS (.) EXCISE
DUTY EXEMPTION ON BLACK & WHITE TV RECEIVER SETS (HEADING NO.85.28) HAS BEEN WITHDRAWN
(.) HOWEVER, THE EFFECTIVE RATE OF BASIC EXCISE DUTY (BED) FOR THE SAME WILL BE 4% AD
VALOREM IF NO CENVAT CREDIT OF THE DUTY PAID ON INPUTS AND CAPITAL GOODS IS TAKEN (.)
CHAPTER NOTE 3 IN CHAPTER 87 HAS BEEN AMENDED
TO SPECIFY THAT THE ACTIVITY OF BODY BUILDING ON CHASSIS FALLING UNDER HEADING 87.06 WILL
AMOUNT TO MANUFACTURE OF A MOTOR VEHICLE (.) DESCRIPTION OF SUB-HEADING 8707.00 HAS BEEN
AMENDED TO SPECIFY THAT THIS SUB-HEADING COVER THE BODIES OF MOTOR VEHICLE OF HEADING NOS.
87.01 TO 87.05 ONLY AND NOT CHASSIS OF HEADING 87.06(.)
SPECIAL EXCISE DUTY ON MOTOR CARS AND OTHER
MOTOR VEHICLES FALLING UNDER SUB-HEADING NOS. 8703.90 AND 8704.90 AND THEIR RESPECTIVE CHASSIS (SUB-HEADING NOS. 8706.39 AND
8706.49) REDUCED FROM 24% TO 16%(.) CONSEQUENTLY, THE TOTAL TARIFF RATE OF DUTY APPLICABLE
ON SUCH VEHICLES WILL NOW BE 16% BED + 16% SED, WHICH IS ALSO THE EFFECTIVE RATE
(.)SPECIAL EXCISE DUTY ON TWO WHEELED MOTOR VEHICLES AND OTHER MOTOR VEHICLES (
SUB-HEADING NOS. 8711.20 AND 8711.90) IS ABOLISHED(.) THESE GOODS WILL NOW ATTRACT ONLY
CENVAT DUTY OF 16% ADV(.)
CONCESSIONAL RATE OF DUTY ON VEHICLES OF
SUB-HEADING NO.8703.90, REGISTERED FOR USE SOLELY AS TAXI REDUCED FROM 16% BED +8% SED TO
16% BED(.) CONCESSIONAL RATE OF DUTY AT 16% ON VEHICLES OF SUB-HEADING NOS. 8702.10 OR
8703.90, REGISTERED FOR USE AS AMBULANCE IS BEING CONTINUED(.)
SPECIAL EXCISE DUTY UNDER THE SECOND SCHEDULE
FOR ALL GOODS FALLING UNDER SUB-HEADING NOS. 8903.00 AND 8907.00 RAISED FROM 8% TO 16%.
(.) CONSEQUENTLY, THEY WILL NOW ATTRACT A TOTAL DUTY OF 32% ADV. (16% CENVAT+16%SED)(.)
TARIFF RATE OF BASIC EXCISE DUTY ON ALL GOODS
OF SUB-HEADING NO.9004.90 IS BEING RAISED TO 16%(.) HOWEVER, THE EFFECTIVE RATE OF DUTY ON
THE GOODS OF SUB-HEADING NO.9004.90, OTHER THAN
EXCISE DUTY EXEMPTION ON WATCHES AND CLOCKS OF
RETAIL SALE PRICE NOT EXCEEDING RS. 500 PER PIECE HAS BEEN WITHDRAWN(.) HOWEVER, AN
EFFECTIVE BASIC EXCISE DUTY OF 4% ADV. HAS BEEN PRESCRIBED FOR THESE GOODS IF NO CENVAT
CREDIT OF DUTY PAID ON INPUTS OR CAPITAL GOODS IS TAKEN(.)
IN RESPECT OF ARMS AND AMMUNITIONS AND PARTS
THEREOF, FALLING UNDER SUB-HEADING NOS. 9302.00, 9303.00, 9304.00,9305.00 9306.00 AND
9307.00, SPECIAL EXCISE DUTY HAS BEEN RAISED FROM 8% TO 16% IN THE SECOND SCHEDULE (.)
CONSEQUENTLY THESE GOODS WILL NOW ATTRACT A TOTAL DUTY OF 32% ADV. (16% CENVAT + 16%
SED)(.) THE GOODS FALLING UNDER THIS CHAPTER HAVE BEEN EXCLUDED FROM THE LIST OF SPECIFIED
GOODS ELIGIBLE FOR SSI EXEMPTION(.)
MATTRESS SUPPORTS, ARTICLES OF BEDDING AND
SIMILAR FURNISHING ETC., FALLING UNDER SUB-HEADING 9404.00 HAVE BEEN OMITTED FROM SECOND
SCHEDULE(.) THEREFORE NO SPECIAL DUTY OF EXCISE IS CHARGEABLE ON THESE GOODS (.) EXEMPTION
FROM BASIC EXCISE DUTY ON RUBBERISED COIR MATTRESSES HAS BEEN WITHDRAWN AND THEY ARE NOW
CHARGED TO A CONCESSIONAL EXCISE DUTY OF 4% SUBJECT TO THE CONDITION THAT NO CENVAT CREDIT
OF DUTY PAID ON INPUTS OR CAPITAL GOODS IS TAKEN(.)
TARIFF RATE OF BASIC EXCISE DUTY ON ALL GOODS
OF SUB-HEADING NO.9603.00 RAISED TO 16%(.) HOWEVER, THE EFFECTIVE RATE OF DUTY ON THE
GOODS OF SUB-HEADING NO.9603.00, OTHER THAN TOOTHBRUSHES, IS BEING CONTINUED AT NIL RATE.
ON TOOTHBRUSHES (9603.00), AN EFFECTIVE DUTY OF 4% ADV. HAS BEEN PRESCRIBED PROVIDED NO
CENVAT CREDIT OF THE DUTY PAID ON INPUTS OR CAPITAL GOODS IS TAKEN(.)
THREE MORE COMMODITIES NAMELY STAINERS
(2502.90), FILLERS AND PUTTIES (3214.00) AND THINNERS (3814.00) HAVE BEEN BROUGHT UNDER
MRP BASED EXCISE LEVY UNDER SECTION 4A WITH EFFECT FROM 1-3-2001(.) AN ABATEMENT OF 40% OF
MRP HAS BEEN PRESCRIBED ON THESE ITEMS(.)
IN RESPECT OF FIVE COMMODITIES WHICH ARE
PRESENTLY COVERED UNDER THE MRP SCHEME, THE RATES OF ABATEMENT ARE BEING MODIFIED AS
FOLLOWS: (I) ON AERATED WATER FROM 55% TO 50%; (II) GLAZED TILES FROM 50% TO 45% (III)
VITRIFIED TILES FROM 50% TO 45% (IV) ELECTRIC FANS FROM 35% TO 40% AND (V) COLOUR TVS FROM
30% TO 35%(.) IN THE CASE OF ‘ROOM AIR CONDITIONER’, THE DESCRIPTION HAS BEEN
CHANGED TO ‘WINDOW ROOM AIR-CONDITIONERS AND SPLIT AIR-CONDITIONERS OF CAPACITY UP TO
3 TONNES’ (.)
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
New Delhi, dated the 1st March,2001.
EXPLANATORY MEMORANDUM
Subject:- Customs duties-
Notification Nos. 17/2001-Customs to 26 /2001-
The following notifications have been issued in
the context of Budget proposals relating to customs duties announced by the Finance
Minister in the Lok Sabha on the 28th February,2001. The subject matter of the
above notifications in brief is indicated below:-
TARIFF NOTIFICATIONS
S. No. |
Notification
No. |
Subject
(in brief) |
| 1. |
17/2001-Customs |
Seeks to prescribe
exemption and effective rates of basic customs duty and additional duty for specified |
| 2. |
18/2001-Customs |
Seeks to exempt specified goods when imported
into |
| 3. |
19/2001-Customs |
Seeks to exempt specified goods falling in the
First |
| 4. |
20/2001-Customs | Seeks to amend certain
notifications |
| 5. |
21/2001-Customs |
Seeks to rescind
notification Nos. 16/2000-Customs, |
| 6. |
22/2001 -Customs |
Seeks to rescind notification No.
61/2000-Customs, |
| 7. |
23/2001-Customs |
Seeks to prescribe effective basic customs duty
in |
| 8. |
24/2001-Customs |
Concession in respect of
toll smelting of copper reverts made applicable to basic, additional and special
additional duty |
| 9. |
25/2001-Customs |
Concession in respect of
toll smelting of copper anode slime made applicable to basic, additional and special
additional duty |
| 10. |
26/2001-Customs |
Seeks to exempt all goods from the whole of the |
NON-TARIFF NOTIFICATIONS
| S. No. |
Notification
No. |
Subject
(in brief) |
| 1. |
9/2001-Customs(N.T.) |
Seeks to amend Courier Imports and Exports (Clearance) Regulations, 1998 so as to enhance the value limit of commercial samples for export from Rs 10,000/- to Rs. 50,000/-. |
| 2. |
10/2001-Customs(N.T.) |
Seeks to supersede
notification No. 30/99-Customs, dated 12.5.99 and fix rate of interest for warehoused
goods at twenty four per cent. per annum under section 61(2) of the Customs Act, 1962. |
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF
REVENUE)
New Delhi, dated the 1 st March,2001.
EXPLANATORY MEMORANDUM
Subject:- Central
Excise duties- Notification Nos. 3/2001-Central Excise to 13/2001-Central Excise and Nos.
5 /2001-Central Excise (N.T) to 9 /2001-Central Excise (N.T), all dated the 1 st March, 2001.
The following
notifications have been issued in the context of Budget proposals relating to central
excise duties announced by the Finance Minister in the Lok Sabha on the 28 th February, 2001. The
subject matter of the above notifications in brief is
TARIFF NOTIFICATIONS
| S.No. |
Notification No. |
Subject |
| 1. |
3/2001-Central
Excise, dated 1 st March, 2001 |
Seeks to prescribe
effective rates for specified goods |
| 2. |
4/2001-Central Excise,
dated 1 st March, 2001 |
Seeks to provide effective
rates wherever duty rate has |
| 3. |
5/2001-Central
Excise, dated 1 st
March, 2001 |
Seeks
to exempt specified goods from NCC duty |
| 4. |
6/2001-Central
Excise, dated 1 st
March, 2001 |
Seeks to amend specified
Central Excise Tariff |
| 5. |
7/2001-Central
Excise, dated 1 st
March, 2001 |
Seeks to rescind certain
notifications issued under S-3A |
| 6. |
8/2001-Central
Excise, dated 1 st
March, 2001 |
SSI exemption scheme
effective from 1.4.2001 for units |
| 7. |
9/2001-Central
Excise, dated 1 st March, 2001 |
SSI exemption scheme
effective from 1.4.2001 for units |
| 8. |
10/2001-Central Excise,
dated 1 st March, 2001 |
Rescinds notifications
issued under S-5A of the Central |
| 9. |
11/2001-Central
Excise, dated 1 st
March, 2001 |
Seeks
to prescribe effective duty of excise and additional duty of excise in respect of
processed textile fabrics |
| 10. |
12/2001-Central
Excise, dated 1 st March, 2001 |
Seeks
to exempt articles of apparel and clothing accessories, not knitted or crocheted, other
than those bearing a registered brand name |
| 11. |
13/2001-Central Excise,
dated 1 st March, 2001 |
Seeks
to exempt Pan Masala falling under heading No. 21.06 produced by units availing exemption
under notification No. 32/99 or 33/99 CE, from the whole of National Calamity Contingent
Duty |
NON-TARIFF NOTIFICATIONS
| S. No. | Notification No. |
Subject |
| 1. |
5 /2001-Central
Excise(N.T.), dated 1 st March, 2001 |
Seeks to prescribe the
commodities to which MRP based excise levy is applicable and also abatement of retail sale
price under section 4A. |
| 2. |
6/2001-Central Excise
(N.T.), dated 1 st
March, 2001 |
Seeks to amend the Central
Excise Rules, 1944 so as to make changes in the CENVAT Rules |
| |
7/2001-Central Excise
(N.T.), dated 1 st
March, 2001 |
Seeks to prescribe rate of
deemed credit in respect of independent textile processors and composite mills |
| 4. | 8/2001-Central Excise
(N.T.), |
Seeks to prescribe tariff
values in respect of articles of apparel and clothing accessories, not knitted or
crocheted, bearing a registered brand name |
| 5. |
9/2001-Central Excise
(N.T.), |
Seeks to notify new Central
Excise Rules, 2001 to be brought into effect from 1 st day of July, 2001 |
| S.No. |
Notification No. |
Subject |
| 1. |
3/2001-Central
Excise, dated 1 st March, 2001 |
Seeks to prescribe
effective rates for specified goods |
| 2. |
4/2001-Central Excise,
dated 1 st March, 2001 |
Seeks to provide effective
rates wherever duty rate has |
| 3. |
5/2001-Central
Excise, dated 1 st
March, 2001 |
Seeks
to exempt specified goods from NCC duty |
| 4. |
6/2001-Central
Excise, dated 1 st
March, 2001 |
Seeks to amend specified
Central Excise Tariff |
| 5. |
7/2001-Central
Excise, dated 1 st
March, 2001 |
Seeks to rescind certain
notifications issued under S-3A |