Date of applicability of Changes in Excise and Custom Rates

Mihir Doshi , Last updated: 23 March 2012
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This time common man, an Indian Tax payer was expecting magical budget with high benefits but for Individual its "Give and Take" kinds of budget. Honorable FM has increased the Exemption limit for Individual by INR 20,000/-, on the other hand, he also hiked Indirect taxes rate from 10% to 12% in Excise and Service tax area.

As it is observed that, many CCI members facing problems of applicability of this increased rate of Excise and custom, I would like to publish very short analysis with Notification number of the applicability of proposed tax rate. It is seen that applicability of Service tax rate is from 1st April 2012 while in Excise it is 17th March 2012.

As 17th March 2012 is applicable date for Excise duties, it increases administrative work on part of Accountants and Admin Staff for Invoice preparation and any changes thereto, The hike will not be applicable for the stock in existence at 16th March 2012 because Excise is applicable on manufacturing of products though it is paid at the time of clearance.

For the sake of CCI members, I would like to publish this article with table given below:

BUDGET 2012-13

CENTRAL EXCISE - TARIFF NOTIFICATION

Sl.No	Budget Notification	Notification, which is amended by the Budget Notification	Effect of Amendment
1.	5/2012 CE dated 17.03.2012 (With effect from 17.3.12)	23/2003 CE (EOU Clearance Notification)	Rate of duty in respect of following Sl. Nos of Notification 23/2003 has been increased from 10% to 12%. Sl.No 5A - 5208-5212 Sl.No 6 - 5407, 5408, 5512-5516. Sl.No.7A - 300610 or 60 Sl.No.8 - 71
2.	07/2012 CE dated 17.03.2012 (With effect from 17.3.12)	29/2004 CE – Effective rate of duty for various textiles products.	Rate of duty, wherever it is 5% has been increased to 6%.
3.	12/2012 CE dated 17.03.2012 (With effect from 17.3.12)	Notifications rescinded – 3/2005-CE, 3/2006-CE, 5/2006-CE, 4/2006-CE, 6/2006-CE and 10/2006-CE.	Effective rate of duty in respect of various products, which are earlier covered by various notifications, which are rescinded, are now covered by notification 12/2012-CE. Sl.No.57 - 2619 Slag arising in the manufacture of Steel – Nil. Sl.No.212 - 7323 or 76151910 Pressure cooker - 6% Sl.No.235 - 8413 - Power driven pumps primarily designed for handling water - 6%.
4.	16/2012 CE dated 17.03.2012 (With effect from 17.3.12)	01/2011-CE	1% increased to 2% (No CENVAT Credit on inputs or input services availed)
5.	18/2012 CE dated 17.03.2012 (With effect from 17.3.12)	--	10% duty has been increased to 12%.
6.	19/2012-CE dated 17.3.2012 (With effect from 17.3.12)	2/2011-CE	5% increased to 6%