1
OFFICE OF THE COMMISSIONER OF CENTRAL EXCISE, AHMEDABAD – I
CENTRAL EXCISE BHAVAN, NR. POLYTECHNIC,
AHMEDABAD-380 015
Website: www.cenexahmedabad.nic.in
E-mail: cexahmed@excise.nic.in
Telephone No. (079) 2630 0024
Fax No. (079) 2630 6152
TRADE NOTICE NO. 21 /2010
Subject: Amendments to the Finance Bill,2010-
Regarding.
________________________________________________
The Finance Minister has introduced a few amendments to the
Finance Bill, 2010 in Lok Sabha on 29.04.2010. A few changes in excise and
customs duties have been proposed through Notification Nos.54/2010-Customs to
56/2010-Customs, 19/2010-C.Excise (NT), 20/2010-CE to 24/2010-C.Excise, and
23/2010 S.Tax, all dated 29.04.2010. Changes in rates of duty (unless otherwise
stated) have taken effect from the midnight of 28th April/29th April of 2010.
2.
The important changes in respect of customs & Central Excise duty and
Service Tax are discussed below.
A.
CENTRAL EXCISE
I.
Tobacco Products :
i.i
Excise duty on hand-rolled cheroots priced upto Rs.3 per stick has been
reduced to 10% ad valorem. (Notification No.21/2010-C.Excise refers)
i.ii
Additional excise duty on hand-rolled cheroots priced upto Rs.3 per stick
shall now be 1.6% ad valorem(Notification No.23/2010-C.Excise refers)
i.iii
Scented supari has been fully exempted from payment of Central Excise
duty. (Notification No.21/2010-C.Excise refers)
II.
Paper Products :
ii.i
Concessional rate of 4% Central Excise duty was applicable on units
manufacturing corrugated boxes and cartons from Kraft paper. Now, this
concessional rate of Central Excise duty has been extended to units that
manufacture corrugated boxes and cartons from corrugated paper or
paperboard. (Notification No.20/2010-C.Excise refers)
ii.ii
Excise duty on waste paper and paper scrap has been reduced to 4%
(Notification No.20/2010-C.Excise refers)
III.
AUTOMOBILES
iii.i
The ambit of assessment of Automobile components on the basis of their
retail sale price, has been expanded to include parts, components and
assemblies of earthmoving machinery like loaders, excavators etc.
(Notification No.19/2010-C.Excise (NT)refers)
IV.
SMALL SCALE SECTOR
iv.i
Excise duty exemption for small scale units has been extended to all types
of materials which are meant for use as packing material by or on behalf of
2
the person whose brand name they bear. (Notification No.24/2010-C.Excise
refers)
B.
CUSTOMS :
I.
MACHINERY :
i.i
Parts and components of tunnel boring machines for use in the assembly of
Tunnel boring machines have been fully exempted from Basic Customs
Duty (S.No.598 of Notification No.54/2010-Customs refers)
II.
HEALTH :
ii.i
Basic Customs Duty on Ostomy products (Appliances), their Accessories
and parts has been reduced to 5% (S.No.363A of Notification No.54/2010Customs refers)
ii.ii
Basic Customs Duty on 11 specified drugs including two anti-cancer and
one for the treatment of AIDS has been reduced to 5%. (List 3 of annexure
to Notification No.54/2010-Customs refers)
III.
METALS & ORES :
iii.i
Basic Customs duty on stainless steel melting scrap has been reduced to
2.5% (S.No.202 of Notification No.54/2010-Customs refers)
iii.ii
Export duty on Iron ore (Lumps) has been increased to 15% Ad Valorem.
(Notification No.56/2010-Customs refers)
IV.
INFORMATION TECHNOLOGY :
iv.i
Specified parts or components required for the manufacture of Optical Disc
Drives (ODD) have been exempted from basic customs duty. (S.No.604 of
Notification No.54/2010-Customs refers)
V.
MISCELLANEOUS :
v.i
Acetate rayon tow required for the manufacture of cigarette filter rods has
been fully exempted from payment of special CVD of 4%. (Notification
No.55/2010-Customs refers)
v.ii
Flax fibre has been fully exempted from payment of Basic Customs duty.
(S.No.436 of Notification No.54/2010-Customs refers)
v.iii.
Statutory rate of export duty for raw cotton is being enhanced to Rs.10,000
PMT.
However, the effective rate of export duty is being maintained at
current levels of Rs.2,500/- PMT. For this purpose ; an official amendment
to the Finance Bill, 2010 has been moved by the Finance Minister and the
new statutory rate will be applicable when Finance Act, 2010 is signed by
the President of India.
C.
SERVICE TAX
I.
Modular Employable Skill courses , approved by the National Council of
Vocational Training, by a Vocational Training Provider registered under the
Skill Development Initiative Scheme with the Directorate General of
Employment and Training, Ministry of Labour and Employent, Government
of India, have been exempted from the whole of the service tax. (Service
as per Section 65 (105) (zzc) of Finance Act, 1994)
(Notification
3
No.23/2010-Service Tax refers).
However, other courses conducted by
such vocational training providers would continue to attract Service Tax.
3/-
All the Trade Associations / Chambers of Commerce and the
members of the RAC/PGRC are requested to bring/publicize the contents of this
Trade Notice amongst their Members/Constituents for their information and
necessary action.
4/-
Authority for issue of this Trade Notice : Ministry of Finance ‘s D.O.Letter
F.No.B-1/22/2010-TRU dated 29.04.2010.
[M. RAHMAN]
JOINT COMMISSIONER (Technical)
F.No.IV/16-01/MP/2010
Encl. As above.
Copy to:As per mailing list of Trade & Deptt.
Dated :10.05.2010