Where is specific duty mentioned in Excise law? How do we find the rate for specific duty on a product? how CG impose Specific duty, whether through Amendment or notification or circular or other means?
21 May 2010
SEC 3(2) provides provision for specific duties.the said sec empower CG to notify the specific goods and excise rate of these goods.CG issued notification time to time regarding these. these concept r quite similar to sec 14 of CST ACT 1956 i.e. specific goods.generally these goods are essential commodities nature.for d public intrest cg imposed that duty. if in any ex goods r notified by cg through sec 3(2) no other valuation meth (sec 4(1)(a)or sec 4A will not applicable
Excise duty rate on items currently attracting 4% to be raised to 8% with following major exceptions: Specified food items including biscuits, sharbats, cakes and pastries Drugs and pharmaceutical products falling under Chapter 30 Medical equipment Certain varieties of paper, paperboard and articles thereof Paraxylene Power driven pumps for handling water Footwear of RSP exceeding Rs.250 but not exceeding Rs.750 per pair Pressure cookers Vacuum and gas filled bulbs of RSP not exceeding Rs.20 per bulb Compact Fluorescent Lamps Cars for physically handicapped Specific component of excise duty applicable to large cars/utility vehicles of engine capacity 2000 cc and above to be reduced from Rs. 20,000/- per vehicle to Rs.15,000 per vehicle. Excise duty on petrol driven trucks/lorries to be reduced from 20% to 8%. Excise duty on chassis of such trucks/lorries to be reduced from ‘20% + Rs.10000’ to ‘8% + Rs.10000. Excise duty on Special Boiling Point spirits to be reduced to 14%.
Excise duty on naphtha to be reduced to 14%.
Duty paid High Speed Diesel blended with upto 20% bio-diesel to be fully exempted from excise duties. The ad valorem component of excise duty of 6% on petrol intended for sale with a brand name to be converted into a specific rate. Consequently, such petrol would now attract total excise duty of Rs.14.50 per litre instead of ‘6% + Rs.13 per litre’. The ad valorem component of excise duty of 6% on diesel intended for sale with a brand name to be converted into a specific rate. Consequently, such diesel would now attract total excise duty of Rs.4.75 per litre instead of ‘6% + Rs.3.25 per litre’. Excise duty on manmade fibre and yarn to be increased from 4% to 8%. Excise duty on PTA and DMT to be increased from 4% to 8%.
Excise duty on polyester chips to be increased from 4% to 8%. Excise duty on acrylonitrile to be increased from 4% to 8%. The scheme of optional excise duty of 4% for pure cotton to be restored. Excise duty for man-made and natural fibres other than pure cotton, beyond the fibre and yarn stage, to be increased from 4% to 8% under the existing optional scheme.
An optional excise duty exemption to be provided to tops of manmade fibre manufactured from duty paid tow at par with tops manufactured from duty paid staple fibre. Suitable adjustments to be made in the rates of duty applicable to DTA clearances of textile goods made by Export Oriented Units using indigenous raw materials/ inputs for manufacture of such goods. Full exemption from excise duty to be provided on goods of Chapter 68 of Central Excise Tariff manufactured at the site of construction for use in construction work at such site. Excise duty exemption on ‘recorded smart cards’ and ‘recorded proximity cards and tags’ to be made optional. Manufacturers have the option to pay the applicable excise duty and avail the credit of duty paid on inputs. EVA compound manufactured on job work for further use in manufacture of footwear to be exempted from excise duty. Benefit of SSI exemption scheme to be extended to printed laminated rolls bearing the brand name of others by excluding this item from the purview of the brand name restriction. On packaged or canned software, excise duty exemption to be provided on the portion of the value which represents the consideration for transfer of the right to use such software, subject to specified conditions. Excise duty on branded articles of jewellery to be reduced from 2% to Nil.
21 May 2010
Dear i hav heard Special Excise Duty (SED) and specific duty are different. you have answered about SED, not specific duty. Hopefully u had read about Specific duty in valuation chapter in Excise.
22 May 2010
u r absoultly right special excise duty and specific duty are different thing sec3(1) provides provision about BED AND SED BUT SEC3(2) SAYS ABOUT SPECIFIC DUTY so my answer is about specific duty not abut SED.
22 May 2010
Amar Under sec 3(1)(a)- BED, 3(1)(b)- SED and 3(2)- ad valurem duty based on Fixed tariff value are mentioned. Specific duty is not mentioned under 3(2)
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