Analysis of Union Budget 2017 provisions of Income Tax Service Tax Excise Duty Custom Duty with Budget Highlights Commentary Speech, Notification, News & Articles.
AMENDMENTS IN THE CENTRAL EXCISE ACT, 1944:
1) Section 9 provides that an offence case involving evasion in which the duty leviable exceeds thirty lakh rupees shall be punishable with a term of imprisonment extending to seven years with fine. This section is being amended so as to substitute the amount of thirty lakh rupees with fifty lakh rupees. [Clause 78]
2) Section 9A is being amended to make an offence cognizable and non-bailable where the duty liability exceeds Rs.50 lakh and punishable under clause (b) or clause (bbbb) of sub-section (1) of section 9. [Clause 79]
3) Section 11 is being amended so as to provide for
(i) recovery of money due to the Government from any person other than from whom money is due after giving a proper notice, if that other person holds money for or on account of the first person;
(ii) the other person to whom such notice has been issued is bound to comply and (iii) if the other person to whom the notice is served fails to comply, he shall face all the consequences under this Act. [Clause 80]
4) Section 11A 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. [Clause 81]
5) Reference to sub-section (1) in section 11DDA is being omitted. [Clause 82]
6) Section 20 is being amended so as to make the provisions applicable only to offence which is non-cognizable. [Clause 83]
7) Section 21 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. [Clause 84]
8) Clause (a) of section 23A is being amended to expand the definition of the term “activity” to include any new business of production or manufacture proposed to be undertaken by the existing producer or manufacturer. [Clause 85]
9) The existing sub-section (2) of section 23C provides for the admissibility of application for advance ruling, inter alia, for credit of excise duty paid or deemed to have been paid. The scope of admissibility has been expanded to include credit of service tax paid or deemed to have been paid on input services. [Clause 86]
10) Reference to section 28-I in section 23F is being substituted with section 23D. [Clause 87]
11) A new proviso is being inserted in sub-section (2A) of section 35C so as to provide that in cases where delay in disposing of the appeal is not attributable to the appellant, the Tribunal may extend the period of stay by a period not exceeding 185 days subject to the condition that if the appeal is not disposed of within the total period of 365 days from the date of order, the stay shall stand vacated. [Clause 88]
12) Section 35D is being amended to enhance the monetary limit of the Single Bench of the Tribunal to hear and dispose of appeals from “ten lakh rupees” to “fifty lakh rupees”. [Clause 89]
13) Section 37C 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. [Clause 90]
14) Third Schedule is being amended to:
(a) insert S. No. 31A to include branded and generic Ayurvedic, Unani, Siddha, Homeopathic or Bio-chemic medicaments.
(b) substitute the present tariff item in S. No. 64 relating to pressure cooker with tariff item “7615 10 11”
The changes at para 14) will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931. [Clause 91]
AMENDMENTS IN CENTRAL EXCISE TARIFF ACT, 1985:
1) First Schedule is being amended to:
(a) change the present description of tariff items 03022400 and 03033400 to “Turbots (Psetta maxima)”.
(b) omit the tariff item 1517 90 20 (Peanut butter).
(c) substitute the existing tariff rates for various lengths of cigarettes and cigars of heading 2402 with the enhanced rates.
(d) enhance the tariff rate of specified tariff items of heading 8703 to 30%.
The changes at para 1) will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931. [Clause 92]
Proposals involving changes in rates of duty
I. AGRICULTURE/AGRO PROCESSING/PLANTATION SECTOR:
1) Full exemption from excise duty is being provided on tapioca sago (sabudana) and tapioca starch manufactured and consumed captively in the manufacture of tapioca sago.
2) Full exemption from excise duty is being provided on henna powder or paste, not mixed with any other ingredient.
1) Excise duty on SUVs is being increased from 27% to 30%.
2) Excise duty on truck chassis (8706 00 42) is being reduced from 14% to 13%.
3) Sports Utility Vehicles registered solely for use as taxis will not suffer additional excise duty consequent to the increase in excise duty on SUVs from 27% to 30%. Taxi refund in respect of SUVs is being adjusted accordingly.
1) Excise duty of 4% is being levied on silver manufactured from zinc/lead smelting.
2) Compounded levy on stainless steel “Patta Patti” is being increased from Rs 30,000 per machine per month to Rs 40,000 per machine per month.
3) It is being clarified that the item “trimmed or untrimmed sheets or circles of copper intended for use in the manufacture of handicrafts or utensils” presently leviable to excise duty at Rs. 3500 per MT includes copper and copper alloys including brass.
IV. AIRCRAFTS & SHIPS:
1) Full exemption from excise duty is being provided on ships and other vessels. Consequently, there will be no CVD on these ships and vessels when imported.
1) Full exemption from excise duty is being provided on hand made carpets and carpets and other textile floor coverings of coir or jute, whether or not handmade.
2) ‘Zero excise duty route’, as existed prior to Budget 2011-12, is being restored in respect of branded readymade garments and made ups. In the case of cotton there will be zero duty at the fibre stage and, in the case of spun yarn of man made fibres, there will be a duty of 12% at the fibre stage. The ‘Zero excise duty route’ will be in addition to the CENVAT route now available.
1) Branded Ayurvedic medicaments and medicaments of Unani, Siddha, Homeopathic or bio-chemic system are being brought under MRP based assessment with abatement of 35% from MRP.
1) Excise duty on mobile phones of retail sale price exceeding Rs 2000/- is being increased from 1% to 6%.
1) Excise duty on cigarettes is being increased by about 18% on all cigarettes except cigarettes of length not exceeding 65 mm. Cigars and cigarillos duty is also being similarly raised.
2) Excise duty on marble tiles and slabs is being increased from Rs 30 per sq. mtr to Rs 60 per sq. mtr.
3) Full exemption from excise duty is being provided to intermediate goods manufactured and consumed captively by exempted units under Area Based Exemption Scheme in Himachal Pradesh and Uttarakhand.