In budget 2013, Finance Minister proposed some changes in excise duty structure. Basic excise duty remains same at 12% whereas some products will attracts higher excise duty and some products get cheaper with lower excise duty. So these are the changes in excise duty structure which is effective from 1 March 2013.
Tariff Heading
|
Product
|
Old Rate
|
New Rate
|
72
|
Stainless steel pattis
or pattas – Compounded Levy Scheme
|
Rs. 30,000 per cold
rolling machine, per month
|
Rs. 40,000 per cold
rolling machine, per month
|
85
|
Mobile handsets
including cellular phones having retail sale price more than Rs. 2000/-
|
1.00%
|
6.00%
|
85
|
Mobile handsets
including cellular phones having retail sale price upto Rs. 2000/-
|
1.00%
|
1.00%
|
39
|
Urea formaldehyde
resins or binders captively consumed within the factory of production, in the
manufacture of particle board in respect of which exemption is claimed under
notification No. 49/2003-C.E. and 50/2003-C.E. both dated 10-6-2003
|
Exempt
|
Exempt
|
61, 62 and 63 (except 6309 00 00 and 6310)
|
All goods of cotton,
not containing any other textile material
|
Such goods bearing a
brand name or sold under a brand name were not eligible for exemption.
|
Exemption has been
extended to such branded goods.
|
61, 62 and 63 (except 6305, 6309 00 00 and 6310)
|
All goods – Textile
and Textile Articles
|
Such goods bearing a
brand name or sold under a brand name were not eligible for exemption.
|
Exemption has been
extended to such branded goods.
|
11
|
Tapioca starch
manufactured and consumed captively in the manufacture of tapioca sago (sabudana)
|
6.00%
|
NIL
|
1517 90 20
|
Peanut butter
|
Nil
|
Nil
|
19
|
Tapioca sago (Sabudana)
|
Liable to duty
|
NIL
|
24
|
Cigarettes
|
See Note 1
|
See Note 1
|
24
|
Cigar, Cheroots and
Cigarillos
|
See Note 2
|
See Note 2
|
25 or 68
|
Marble slabs and tiles
|
Rs. 30 per square
meter
|
Rs. 60 per square
meter.
|
25
|
Sulphur recovered as
by product in refining of crude oil (sub-heading 2503 00 10) used for the
manufacture of fertilisers ("Fertilizers" include bentonite
sulphur)
|
Exempt
|
Exempt
|
30
|
Branded Ayurvedic
medicaments and medicaments of Unani, Siddha, Homeopathy or Bio-chemic system
|
Not under MRP-based
duty
|
Brought under
MRP-based duty with abatement of 35%
|
33
|
Henna powder or paste, not mixed with any other ingredient
|
Liable to duty
|
Exempted
|
57
|
All handmade carpets
and carpets & other textile floor coverings of coir and jute, whether or
not handmade
|
Liable to duty
|
Exempted
|
71
|
Silver produced or
manufactured during the process of zinc or lead smelting starting from the
stage of zinc or lead ore or concentrate
|
Nil
|
4.00%
|
74
|
Trimmed or untrimmed
sheets or circles of copper, intended for use in the manufacture of
handicrafts or utensils
|
No change
|
No change
|
7615 19 10
|
Pressure cookers
|
No change
|
No change
|
87
|
Specified parts of
hybrid and electric vehicles
|
6.00%
|
6.00%
|
8706 00 42
|
Chassis of diesel
motor vehicles for the transport of goods
|
14.00%
|
13.00%
|
8703
|
Sports Utility
Vehicles i.e., SUVs (including utility vehicles) with engine capacity
>1500 cc
|
27.00%
|
30.00%
|
8901, 8904, 8905, 8906 90 00
|
Ships, tugs and pusher
craft, dredgers and other vessels
|
Liable to duty
|
NIL
|
Note 1 – Cigarettes
: Basic excise duty on
cigarettes and other products of tariff heading 2402 is being increased [Clause
92 of the Finance Bill, 2013 read with the Sixth Schedule]
Finance Minister also proposed some legistative canges in contrast of excise duty. These changes are as under.
Sec./ Rule
|
Change
|
3
|
Cenvat Credit Rules,
2004 : It is provided that If
the manufacturer of goods or the provider of output service fails to pay the
amount payable under sub-rules (5), (5A), and (5B) of Rule 3 (payment on
removal of inputs/capital goods as such or after use and write off of
inputs/capital goods), it shall be recovered, in the manner as provided in
rule 14, for recovery of CENVAT credit wrongly taken.
|
7
|
Central Excise Rules,
2002 : Rule 7(5) is amended
to provide that where the assessee is entitled to a refund consequent to an
order of final assessment under sub-rule (3), then, subject to sub-rule (6),
there shall be paid an interest on such refund as provided under section 11BB
of the Act. The period for which interest shall be paid has been removed from
Rule 7(5) and the period for payment of interest will be same as per section
11BB.
|
23A
|
Advance rulings –
Expansion : "Activity" now includes any new business of production
or manufacture by the existing producers or manufacturers. This will enable
such producers or manufacturers to seek advance ruling when starting a new
line of business. [W.e.f. Date of enactment of finance bill]
|
23(C) (e)
|
Advance rulings – Input service credit : Presently, advance ruling can be sought,
inter- alia, on the issue of admissibility of credit of excise duty paid or
deemed to have been paid on the goods used in/ in relation to the
manufacturer of excisable goods. This section is being amended so as to
extend the advance ruling provisions also to the admissibility of the credit
of service tax paid on or deemed to have been paid on input services used in
the manufacture of excisable goods.
[W.e.f. Date of enactment of finance bill]
|
23A
|
"Resident public
limited companies" will be eligible for seeking advance ruling on
central excise, in view of Notification No. 4/2013-CE(NT)[W.e.f. 1-3-2013]
|
9
|
Prosecution for 7
years and fine will be applicable only to offences involving duty of Rs. 50
lakhs or more. The present limit is Rs. 30 lakhs.[W.e.f. Date of enactment
of finance bill]
|
9A
|
The offences relating to excisable goods where
the duty leviable thereon exceeds Rs. 50 lakh and relating to –
• evading the payment of
any duty payable under this Act; or
• contravention of any of
the provisions of this Act or the rules made thereunder in relation to credit
of any duty allowed to be utilised towards payment of excise duty on final
products,
shall be cognizable and non-bailable. [W.e.f.
Date of enactment of finance bill]
|
11
|
The following modes of recovery of duty will
be available —
• deducting or requiring
any other Central Excise Officer or a proper officer referred to in section
142 of the Customs Act, 1962 to deduct the amount so payable from any money
owing to the person from whom such sums may be recoverable or due which may
be in his hands or under his disposal or control or may be in the hands or
under disposal or control of such other officer ;
• garnishee
proceedings i.e. recovering from assessee's debtor/bank, etc. : requiring
any other person from whom money is due to such person, or may become due to
such person, or who holds or may subsequently hold money for or on account of
such person, to pay to the credit of the Central Government either forthwith
upon the money becoming due or being held, or at or within the time specified
in the notice, not being before the money becomes due or is held, so much of
the money as is sufficient to pay the amount due from such person or the
whole of the money when it is equal to or less than that amount.
[W.e.f. Date of enactment of finance bill]
|
11A
|
This section is being amended to insert
sub-section (7A) providing that service of a statement containing details of
duty not paid, short levied or erroneously refunded shall be deemed to be a
service of notice under sub-section (1) or (3) or (4) or (5) of this section
for a period subsequent to period involved in original notice.
[W.e.f. Date of enactment of finance bill]
|
11DDA
|
Notice served under any sub-section of section
11A will attract this section.
[W.e.f. Date of enactment of finance bill]
|
20
|
Section 20 will apply only to non-cognizable
offences.
[W.e.f. Date of enactment of finance bill]
|
21
|
It is being amended so as to make the
provisions regarding release of arrested person on bail or personal bond
applicable only to offence which is non-cognizable.
[W.e.f. Date of enactment of finance bill]
|
37C
|
It is being amended to specify additional
modes of delivery of specified documents i.e. by speed post with proof of
delivery or through courier approved by the Central Board of Excise &
Customs.
[W.e.f. Date of enactment of finance bill]
|
35C
|
It is 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 above-mentioned 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.
Circular No. 967/1/2013-CX., dated 1-1-2013
and judgment of Bombay High Court in Larsen and Tourbro Ltd. v. Union of
India [2013] 30 taxmann.com 363 (Bom.) remain unaffected, because this
amendment applies only after stay has been granted and 1 year has elapsed
thereafter. There is no change in position where stay application is pending
!
[W.e.f. Date of enactment of finance bill]
|
35D
|
It is being amended to enhance the monetary
limit of the Single Bench of the Tribunal to hear and dispose of appeals from
Rs. 10 lakh to Rs. 50 lakh.
[W.e.f. Date of enactment of finance bill]
|
