Prasadjoshi11's Blog

Service Tax- 2009-2010

prasadjoshi — Wed, 15 Jul 2009 04:57:17 +0000

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EXPLANATORY NOTES – SERVICE TAX
A. The following changes are being proposed in the Finance (No.2) Bill, 2009 [refer
clause 112 of the Finance (No.2) Bill, 2009].
(I) Section 65 is being amended to :
(a) specifically include and define the following services, in the list of taxable
services, namely:-
(i) Service provided in relation to transport of coastal goods and goods
through National Waterways and Inland Water,
(ii) Service provided in relation to transport of goods by rail,
(iii) Cosmetic and plastic surgery service,
(iv) Legal consultancy service.
(The above changes will come into effect from a date to be notified, after the
enactment of the Finance Bill, 2009).
(b) extend or modify the scope of certain services, namely:-
(i) Business auxiliary service [Section 65 (19) ], so as to provide that only
those processes which result in the manufacture of excisable goods
(as defined in the Central Excise Act) are excluded from the purview
of Business auxiliary service.
(ii) Information technology service [Section 65 (105) (zzzze)], to replace
the word, `acquiring’, with the word, `providing’ [appearing in serial
number (iv) and (v) of the definition].The amendment is being given
retrospective effect from 16.05.2008.
(iii) Stock-broker service [Section 65 (101)], to exclude sub-broker from its
ambit. As a result sub-brokers will be outside the ambit of service tax.
(The above changes will come into effect from a date to be notified, after the
enactment of the Finance Bill, 2009).
(II) Section 66 pertaining to “charge of service tax” is being amended, to include the
services which are individually specified, for inclusion in the list of taxable
service.
(III) Section 84 is being amended, to abolish the revision procedure prescribed in
Section 84. Revision of orders by the Commissioner is being replaced, with the
filing of departmental appeals before the Commissioner of Central Excise
(Appeals), similar to the Central Excise provisions. Consequential changes are
effected in Section 86. A saving clause is being provided, to protect the pending
cases.
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(IV) Section 94 is being amended, to empower the Central Government, to frame rules
with respect to the place of supply of taxable services, and the relevant date for
determination of service tax.
(The above changes will come into effect from the date of enactment of the
Finance Bill, 2009).
B. Amendments in the Rules and existing Notifications:
(I) The scope of notification No.1/2002-ST dated 01.03.2002 is being enlarged, by
extending the applicability of service tax provisions to installations, structures
and vessels in the entire Continental Shelf of India and Exclusive Economic Zone
of India[refer notification No. 21/2009-ST dated 07.07.2009].
(II) Explanation provided in the Works Contract Rules, 2007 is being modified, so as
to allow the benefit of optional composition scheme, only for such works
contracts, where the taxpayer declares the entire value of goods (whether
supplied under any other contract for a consideration or otherwise) and services
used in the execution of the works contract, as the `gross value’ charged for the
works contract. This restriction would not apply to the current works contracts
where either the execution has commenced or any payment been made on or
before 07.07.2009 [refer notification No.23/2009-ST dated 07.07.2009].
(III) Rule 6(3) of the Cenvat Credit Rules, 2004 is being amended, to reduce the
amounts to be paid on clearances of exempted goods and on provision of
exempted services, from 10% to 5% in case of Central Excise and from 8% to 6%
in case of service tax respectively [refer notification No.16/2009-CE(N.T.) dated
07.07.2009].
(IV) Rule 3(5B) of the Cenvat Credit Rules, 2004 is being amended, so as to provide
that a service provider shall pay back the amount of credit taken on inputs/capital
goods fully written off[ refer notification No. 16/2009-CE(N.T.) dated
07.07.2009].
(The above changes would come into effect immediately).
C. Exemptions:
(I). Exemption from service tax is being provided, to inter-state or intra-state
transportation of passengers, in a vehicle bearing `contract carriage permit’, with
specified conditions [refer notification No. 20/2009-ST dated 07.07.2009].
(II). Exemption from service tax (leviable under “club or association” service) is being
provided, to the Federation of Indian Export Organizations (FIEO) and specified
Export Promotion Councils, on the membership or any other fee collected by
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them. This exemption is valid up to 31.03.2010[refer notification No.16/2009-ST
dated 07.07.2009]
(III). Exemption from service tax (leviable under “banking and other financial
services” or “foreign exchange broker” services) is being provided, to inter-bank
purchase and sale of foreign currency between scheduled banks [refer notification
No.19/2009-ST dated 07.07.2009].
(IV). Refund Scheme for Exporters:
Notification No.41/2007-ST dated 06.10.2007 provides for refund of service
tax paid on services, which though not in the nature of input services, are
relatable to export goods. The scheme is being revamped, to ensure speedier
grant of refunds, to the exporters. The salient features of the new scheme,
being notified under two notifications, No.17/2009-ST and No.18/2009-ST,
both dated 07.07.2009, are as follows:
(a) Under notification No.18/2009-ST dated 07.07.2009, two taxable services,
namely, `transport of goods by road’ and `commission paid to foreign agents’
have been exempted from the levy of service tax, if the exporter is liable to
pay service tax on reverse charge basis. The present cap of 10% on
commission agency charges has been retained, and the exporter will have to
pay service tax on the amount of commission which is in excess of 10%.
(b) Superseding notification No.41/2007-ST dated 06.10.2007, a revised refund
scheme is being brought into effect under notification No.17/2009-ST dated
07.07.2009.The salient features of this scheme are:-
• ‘Terminal handling charges’ is being added in the list of eligible
services.
• The time period for filing refund claim is being increased to one year
from the date of export. The condition for filing refund claims once in
a quarter is also being dispensed with. Now the exporter can file a
refund claim anytime after export.
• A simplified format is being prescribed for filing refund claims.
• Many of the conditions that were imposed under the previous scheme
have been deleted.
• Self certification is being introduced to ensure speedier sanction and
disbursement of refunds. In case, where the total refund claim does not
exceed 0.25% of the total f.o.b. value of the exports under a claim, a
self-certification by the exporter on the invoice, bill or challan, to the
effect that: (a) the eligible services have been received by the exporter;
(b) the service tax payable thereon has been reimbursed by the
exporter, and (c) such services have been used for the export, would be
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sufficient. The refunds shall be granted within one month without any
pre-audit.
• In cases, where the amount of refund claim exceeds 0.25% of the f.o.b.
value of exports, the invoice, bill or challan submitted by the exporter
should be certified by the Chartered Accountant, who audits his annual
accounts. On the basis of such certification, the refund claim shall be
sanctioned by the department within one month, without any pre-audit.
(All these exemptions would come into effect immediately).
D. Giving retrospective effect to certain exemptions:
(I) The exemption given vide notification number 1/2009 dated 05.01.2009 to persons
providing specified services to goods transport agency is being given retrospective effect
from 1st day of January, 2005.
(This exemption will come into effect the date of enactment of Finance Bill, 2009).

Central Excise 2009-2010

prasadjoshi — Wed, 15 Jul 2009 04:51:15 +0000

EXPLANATORY NOTES- CENTRAL EXCISE
GENERAL
Excise duty rate: – There is no change in the mean Cenvat rate of 8% ad valorem. However,
the concessional excise duty rate of 4% has been increased to 8%, with certain exceptions
like food products, pharmaceuticals products including drugs, papers, medical equipments
and specified textiles machinery etc. Chapter-wise details are given below.
CHAPTERS 1 TO 20
No change.
CHAPTER 21
21.1 Appropriate classification is being indicated for Coffee or tea pre-mixes which are
fully exempt from excise duty [S.No 22A of Notification No. 3/2006-CE dated the 1st March
2006 as amended by Notification No. 13/2009 –CE refers. Consequently, S.No.26A has been
omitted]
CHAPTERS 22 TO 26
No change
CHAPTER 27
27.1 Basic excise duty on motor spirit commonly known as petrol intended for sale with a
brand name is being converted from ‘6% + Rs 5 per litre’ to a specific rate of Rs 6.50 per
litre. Consequently petrol intended for sale with a brand name will attract total excise duty of
Rs. 14.50 per litre. [S.No.17 of the Notification No. 4/2006-CE dated the 1st March 2006 as
amended vide notification No. 14 /2009-C.E refers].
27.2 Basic excise duty on High speed diesel oil intended for sale with a brand name is
being converted from ‘6% + Rs 1.25 per litre’ to a specific rate of Rs 2.75 per litre.
Consequently, High Speed Diesel intended for sale with a brand name will attract total excise
duty of Rs 4.75 per litre. [S.No.19 of the Notification No. 4/2006-CE dated the 1st March
2006 as amended vide notification No. 14 /2009-C.E refers].
27.3 High speed diesel oil blended with alkyl esters of long chain fatty acids obtained from
vegetable oils, commonly known as bio-diesels, up to 20% by volume is being exempted
from basic excise duty, additional duty of excise and special additional duty of excise subject
to the condition that appropriate duties have been paid both on HSD and bio-diesel. [Sr. No.
24B of the Notification No. 4/2006-CE dated the 1st March 2006 as amended vide
notification No. 14 /2009-C.E, notification No. 21 /2009-C.E. & S. No. 5 of notification No.
28/2002-Central Excise, dated the 13th May, 2002 as amended vide notification No. 8/2009-
C.E, refer]
27.4 Excise duty rate on special boiling point spirits falling under tariff items 27101111,
27101112, 27101113 has been reduced to 14%. [S.No. 15 of notification No. 2/2008-Central
Excise dated the 1st March, 2008 as amended vide notification No. 19/2009-C.E and
notification No. 18 /2009-C.E refers]
27.5 Excise duty rate on Naphtha falling under heading 2710 has been reduced to 14%.
[Notification No. 18/2009-CE issued in supersession of Notification No.23/2006-Central
Excise, dated the 1st March 2006 refers. Consequently, S.No. 18 of the Notification No.
4/2006-CE dated the 1st March 2006 has been omitted vide notification No. 14/ 2009-C.E.]
27.6 Notification No. 4/2006-CE dated 1st March, 2006 has been amended so as to
expressly provide that exemption from excise duty is available to Naphtha or Natural
Gasoline Liquid –
(a) for use in the manufacture of fertiliser and if such fertiliser is cleared as such from
the factory of production; or
(b) for use in the manufacture of ammonia, if such ammonia is used in the
manufacture of fertiliser and such fertilizer is cleared as such from the factory of
production.
The implication of these changes is that exemption to naphtha or NGL would not be available
if they are used in the manufacture of fertiliser/ ammonia which in turn is used for
manufacture of some other item.
[S. Nos. 7 and 7A of the notification No. 4/2006-C.E as amended/inserted vide notification
No. 14/2009-C.E refers].
CHAPTER 28
No change.
CHAPTER 29
29.1 Excise duty on pure terephthalic acid (PTA) is being increased from 4% to 8% [S.No.
52C of the notification No. 4/2006-C.E as amended vide notification No.14/2009-C.E refers].
29.2 Excise duty on dimethyl terephthalate (DMT) is being increased from 4% to 8%
[S.No. 52D of the notification No. 4/2006-C.E as amended vide notification No. 14/2009-C.E
refers].
29.3 Excise duty on acrylonitrile is being increased from 4% to 8% (S.No. 52E of the
notification No. 4/2006-C.E as amended vide notification No. 14/2009-C.E refers).
CHAPTER 30-31
No change.
CHAPTER 32
32.1 Excise duty on ink used in writing instruments is being increased from 4% to 8%
(S.No 68A of the Notification No. 4/2006-C.E as amended vide notification No. 14/2009-C.E
refers).
CHAPTER 33 TO 38
No change.
CHAPTER 39
39.1 Excise duty on polyester chips is being increased from 4% to 8% [S.No. 80A of the
Notification No. 4/2006-C.E as amended vide notification No. 14/2009-C.E refers].
CHAPTER 40
40.1 Excise duty on Heat resistant latex rubber thread is being increased from 4% to 8%
[S.No. 82 of the notification No. 4/2006-Central Excise as amended vide notification No
14/2009-CE refers].
40.2 Excise duty on Heat resistant rubber tension tape is being increased from 4% to 8%
[S.No. 82A of the notification No. 4/2006-Central Excise as amended vide notification No
14/2009-CE refers].
CHAPTER 41 TO 42
No change.
CHAPTER 43
43.1 Excise duty on Raw, tanned and dressed fur skins is being increased from 4% to 8%
[S.No. 86 of the notification No. 4/2006-Central Excise as amended vide notification No
14/2009-CE refers].
CHAPTER 44
44.1 Excise duty on all goods falling under heading 4408 (Sheets for veneering for
plywood, similar laminated wood and other wood, of thickness not exceeding 6 mm) is being
increased from 4% to 8% [S.No. 86B of the notification No. 4/2006-Central Excise as
amended vide notification No. 14/2009-CE refers].
44.2 Excise duty on all goods falling under heading 4410 (particle board, oriented strand
board, Fibre board and similar board of wood or other ligneous materials) and all goods
falling under heading 4411 (Fibre board of wood or other ligneous materials) is being
increased from 4% to 8% [S.No. 87 of the notification No. 4/2006-Central Excise as amended
vide notification No. 14/2009-CE refers].
44.3 Excise duty on all goods falling under heading 4412 (Plywood, veneered panels and
similar laminated wood) is being increased from 4% to 8% [S.No. 87B of the notification No.
4/2006-Central Excise as amended vide notification No.14/2009-CE refers].
44.4 Excise duty on Flush doors is being increased from 4% to 8% [S.No. 87C of the
notification No. 4/2006-Central Excise as amended vide notification No. 14/2009-CE refers].
44.5 Excise duty on articles of wood, other than articles of densified wood is being increased
from 4% to 8% [S.No. 1 of the notification No. 10/2006-Central Excise as amended vide
notification No. 17 /2009-CE refers].
CHAPTER 45 TO 47
No change.
CHAPTER 48
48.1 Excise duty on all goods falling under heading 4820{folders, file covers, manifold
business forms & other articles of stationery, of paper or paperboard (except notebooks and
exercise books )} is being increased from 4% to 8% [S.No. 2 of the notification No. 10/2006-
Central Excise as amended vide notification No. 17/2009-CE refers]. Notebooks and exercise
books continue to be exempted [S.No. 97 of notification no. 4/2006- Central Excise dated
01.03.2006]
48.2 Excise duty on paper and paperboard labels is being increased from 4% to 8% [S.No.
3 of the notification No. 10/2006-Central Excise as amended vide notification No. 17 /2009-
CE refers].
CHAPTER 49
No change.
CHAPTER 50 TO 63
50.1 Excise duty on manmade filament yarn falling under headings 5402, 5403 and 5406 is
being increased from 4% to 8% [S.No 1 of notification No. 5/2006-CE as amended vide
notification No. 15/2009-CE refers].
50.2 Excise duty on manmade fibres (tow and staple fibres) falling under headings 5501 to
5507 has been increased from 4% to 8% [S.No 2 of notification No. 5/2006-CE as amended
vide notification No. 15/2009-CE refers].
50.3 Excise duty on all textile goods made of pure cotton, not containing any other textile
material, is being increased from nil to 4%. [Notification No 29/2004-CE as amended vide
notification No. 11/2009-CE refers]. However, the said goods would be exempt from excise
duty subject to non availment of Cenvat credit on input. [Notification No 30/2004-CE refers].
Thus, the exemption will be optional. Those opting to pay duty @ 4% will be eligible to avail
Cenvat credit. The applicable rates for CVD purposes will be 4%.
50.4 Excise duty on all textile goods, made of manmade fibre/yarn or natural fibres/yarn
other than cotton i.e. beyond the fibre/yarn stage is being increased from 4% to 8%
[Notification No. 59/2008- CE dated 7th December, 2008, as amended vide notification No.
20/2009-CE refers]. However, the said goods would continue to be fully exempt from excise
duty subject to non-availment of Cenvat credit on inputs. [Notification No 30/2004-CE
refers]. A manufacturer, who takes credit of the duty paid on inputs, would be required to pay
duty on the final product. The applicable rates for CVD purposes will be 8%.
50.5. Excise duty exemption has been provided to tops (man-made), made out of duty paid
man-made tow procured from outside the factory using “tow-to-top” process. [S.No 10 A of
notification No 30/2004-CE as inserted vide notification No. 12/2009-CE refers].
50.6 No intimation or permission will be necessary either for availing full exemption or
paying duty and taking credit in cases as discussed above.
50. 7 There is no change in excise duty rates on items such as, Nylon fishnet twine, made
up fishing nets and nylon tyre cord fabrics etc, which already attract 8% excise duty with
option of exemption from excise duty subject to non-availment of Cenvat credit on inputs.
50.8 There is no change in the rates of excise duty on textiles and textile articles, presently
attracting ‘Nil’ rate by tariff or by notifications.
CHAPTER 64 to 67
No change
CHAPTER 68
68.1. Excise duty on goods in which not less than 25% by weight of fly ash or phosphogypsum
or both have been used, has been increased from 4% to 8% [S. No.9 of notification
No. 5/2006- Central Excise has been amended vide notification No.15/2009-Central Excise].
68.2. Goods manufactured at the site of construction for use in construction work at such
site have been fully exempted. This exemption was so far available only to the goods in
which more than 25% by weight of red mud, press mud or blast furnace slag or one or more
of these materials, have been used. This condition has now been removed, and exemption is
available to all kinds of goods irrespective of use of these materials in such goods [S. No.10
of notification No. 5/2006- Central Excise has been amended vide notification No. 15/2009-
Central Excise].
68.3. Excise duty on articles of mica has been increased from 4% to 8% [S. No.8 of
notification No. 10/2006- Central Excise has been amended vide notification No. 17/2009-
Central Excise].
68.4. Excise duty on solid or hollow building blocks, including aerated or cellular light
weight concrete block and slabs, has been increased from 4% to 8% [S. No.9 of notification
No. 5/2006- Central Excise has been amended vide notification No. 15/2009-Central Excise].
CHAPTER 69
69.1. Excise duty on ceramic tiles, manufactured in a factory not using electricity for firing
the kiln, has been increased from 4% to 8% [S. No.13 of notification No. 5/2006- Central
Excise has been amended vide notification No. 15/2009-Central Excise].
CHAPTER 70
No change
CHAPTER 71
71.1. Excise duty on articles of jewellery, on which brand name or trade name is indelibly
affixed or embossed on the article of jewellery itself, has been reduced from 2% to ‘nil’ [S.
No.26 of notification No. 10/2006- Central Excise has been amended vide notification No.
17/2009-Central Excise].
CHAPTER 72
No change.
CHAPTER 73
73.1 Excise duty on LPG Gas stoves has been increased from 4% to 8% [S.No. 36 of the
notification No. 5/2006-Central Excise as amended vide notification No. 15/2009-CE refers].
CHAPTER 74 TO 83
No change.
CHAPTER 84 & 85
84.1 Excise duty on electronic milk fat tester and electronic solid non-fat (SNF) tester has
been increased from 4% to 8%. [S. No. 19 of notification No. 6/2006-CE amended vide
notification No. 16/2009-CE refers].
84.2 Excise duty on MP3/ MP4 or MPEG 4 players with or without radio/ video reception
facility has been increased from 4% to 8%. [S. No 21 of notification No. 6/2006-CE amended
vide notification No. 16/2009-CE refers].
84.3 Excise duty exemption on recorded smart cards and recorded proximity cards and tags
has been made optional. Thus, a domestic manufacturer of recorded smart cards, recorded
proximity cards and tags can pay the applicable excise duty if he chooses to and avail the
credit of duty paid on the inputs. When these items are imported, CVD at 8% will be
attracted. [S. No 22A & S. No 22B of notification No. 6/2006-CE amended vide notification
No. 16/2009-CE refers].
84.4 Excise duty exemption has been provided to packaged software, subject to specified
conditions, from so much of the duty of excise leviable thereon as is equivalent to the excise
duty payable on the portion of the value which represents the consideration paid or payable
for transfer of the right to use such software. [Notification No. 22/2009-Central Excise
refers].
CHAPTER 86
No change
CHAPTER 87
87.1. Excise duty on motor vehicles of heading 8702 and 8703 having engine capacity
exceeding 1999cc, has been reduced from 20% + Rs.20,000 per unit to 20% + Rs.15,000 per
unit. [S.No.41A of notification No. 6/2006- Central Excise has been amended vide
notification No. 16/2009-Central Excise].
87.2. Excise duty on petrol driven motor vehicles for transport of goods except dumpers of
tariff item 8704 10 90 has been reduced from 20% to 8% [S. No.44 of notification No.
6/2006- Central Excise, dated 01.03.2006 has been amended vide notification No. 16/2009-
CE]. Further, the excise duty on chassis of such petrol driven vehicles has been reduced from
20% + Rs.10,000 per chassis to 8% + Rs.10,000 per chassis [S. No. 51A has been inserted in
notification No. 6/2006- Central Excise vide notification No. 16/2009-Central Excise].
CHAPTER 88 – 89
No change
CHAPTER 90
90.1 Excise duty on contact lenses has been increased from 4% to 8%. [S. No. 23 of
notification No. 59/2008-CE amended vide notification No. 20/2009-CE refers].
90.2 Excise duty on parts of drawing and mathematical instruments, used in the
manufacture of drawing and mathematical instruments has been increased from 4% to 8%.
[S. No. 58 of notification No. 6/2006-CE amended vide notification No. 16/2009-CE refers].
90.3 Excise duty exemption has been provided on specified medical devices namely,
Patent Ductus Arteriosus/ Atrial Septal Defect occlusion device. [S. No 68A of notification
No. 6/2006-CE inserted vide notification No. 16/2009-CE refers].
CHAPTER 91-94
No change
CHAPTER 95
95.1 Excise duty on playing cards has been increased from 4% to 8%. [S. No. 24 of
notification No. 59/2008-CE amended vide notification No. 20/2009-CE refers].
CHAPTER 96
96.1 Excise duty on all goods (except specified brooms) classified under heading 9603 of
the Central Excise Tariff like paint brushes, shaving brushes, toothbrushes etc has been
increased from 4% to 8%. [S. No. 75 of notification No. 6/2006-CE amended vide
notification No. 16/2009-CE refers].
96.2 Excise duty on slide fasteners and parts thereof classified under heading 9607 of the
Central Excise Tariff has been increased from 4% to 8%. [S. No. 75A of notification No.
6/2006-CE amended vide notification No. 16/2009-CE refers].
LEGISLATIVE AMENDMENTS
1. Amendments in First Schedule to the Central Excise Act, 1944: -
(i) Section 9A (2) of the Central Excise Act has been amended so as to exclude certain
types of offences and circumstances from the purview of the compounding provisions.
[Clause 103 of the Finance (No. 2) Bill, 2009 refers]. Consequently, section 37 of the Central
excise Act has also been amended. [Clause 109 of the Finance (No. 2) Bill, 2009 refers].
(ii) Sections 14A and 14AA have been amended to provide that the Chief Commissioner
may also nominate Chartered Accountants for conducting special audits under these
provisions. [Clauses 104 and 105 of the Finance (No. 2) Bill, 2009 refer].
(iii) Section 23A has been amended to prescribe that the Authority for Advance Rulings
authorised under section 28F of the Customs Act would be competent to deal with cases
under the Central Excise Act as well. [Clause 106 of the Finance (No. 2) Bill, 2009 refers].
(iv) Sections 35G and 35H have been amended so as to empower High Courts to condone
delay in the filing of appeals, applications as well as the memorandum of cross objections
where it is satisfied that there was sufficient cause for delay. [Clauses 108 and 109 of the
Finance (No. 2) Bill, 2009 refer].
2. Amendments in First Schedule to the Central Excise Tariff Act, 1985: -
(i) Note 1 of Chapter 8 in the First Schedule to the Central Excise Tariff Act, 1985 has
been substituted so as to exclude ‘betel nut product known as supari’ of tariff item 2106 9030
from its purview.
(ii) A note has been inserted in Chapter 21 so as to provide that in relation to product of
tariff item 2106 90 30 the process of adding or mixing cardamom, copra, menthol, spices,
sweetening agents or any such ingredients, other than lime, katha (catechu) or tobacco to
betel nut in any form shall amount to ‘manufacture’.
(iii) In chapter 58 against tariff item 5801 2210 in column (3) and (4), the entry ‘m2’ and
‘8%’ respectively is being inserted.
[Clause 111 of the Finance (No.2) Bill, 2009 refers]
3. Amendments in CENVAT Credit Rules 2004: -
(i) An explanation has been inserted in Rule 2 of the Cenvat Credit Rules 2004 so as to
clarify that ‘inputs’ which are eligible for availing Cenvat credit shall not include cement,
angles, channels, CTD or TMT bar and other items used for construction of shed, building or
structure for support of capital goods. [Notification No. 16/2009-CE (NT) refers].
(ii) Rule 6(3) of the Cenvat Credit Rules, 2004 is being amended to prescribe that a
manufacturer of both dutiable and exempted goods using common inputs, who does not
maintain separate accounts, shall pay an amount equal to 5% of the total price of the
exempted goods instead of 10%.[Notification No. 16/2009-CE (NT) refers].
4. Amendments in Central Excise Rules, 2002: -
A new rule has been inserted in the Central Excise Rules 2002 to provide that records
seized by the department during an investigation but not relied upon in the Show Cause
Notice should be returned to the party within 30 days of the issue of show cause notice or the
completion of the period for issue of the show cause notice [Notification No. 17/2009-CE
(NT) refers].
MISCELLANEOUS
1. The benefit of SSI exemption is being extended to printed laminated rolls bearing the
brand name of another person by adding this item to the list of specified packing materials at
para 4(e) of the exemption notification. The exemption for this item would be available for
the first clearances for home consumption not exceeding Rs. 150 lakhs during the remaining
period of this financial year i.e. 2009-10. [Notification No. 8/2003-CE dated the 1st March
2003 as amended vide notification No. 9/2009-C.E refers].
2. Excise duty exemption is being extended to Ethylene Vinyl Acetate (EVA) compound
manufactured by a job worker, for further use in the manufacture of exempted foot wear, on
par with PVC compound. [Notification Nos. 83/1994-CE and 84/1994-CE both dated the
11th April, 1994 as amended vide notification No.7/2009-C.E.].
3. Notification Nos. 33/97-CE (NT) dated 01.08.1997, 44/97-CE (NT) dated 30.08.1997
and 7/98-CE (NT) dated 10.03.1998, which relate to erstwhile compounded levy scheme for
steel induction furnace units and re-rolling mills, are being amended with retrospective effect
from the date of issue of the respective notifications so as to regularise fixation of rates of
duty under these notifications [Clause 110 of the Finance (No.2) Bill, 2009 refers].
4. Excise duty on all goods of cotton, not containing any other textile material which is
manufactured wholly out of indigenous raw material and cleared by EOU in domestic tariff
area, is being increased from nil to 4% ( S. Nos 5 and 7 of notification No. 23/2003-CE as
amended vide notification No. 10/2009-CE refers)
5. Excise duty on all goods, (other than of cotton), which is manufactured wholly out of
indigenous raw material and cleared by EOU in domestic tariff area is being increased from
4% to 8% [S. Nos 5A, 6 and 7A of notification No.23/2003-CE as amended vide notification
No. 10 /2009-CE refers].
6. Consequent to increase in excise duty rates from 4% to 8% on certain items covered
under RSP (Retail Sale Price) based assessment, the abatement rates have also been revised
suitably.[ Notification No. 18/2009-CE (NT) refers].

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prasadjoshi — Fri, 03 Jul 2009 12:39:47 +0000

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