Post Budget Changes in Custom and Excise Duty rates wef 08.05.2013

Notification Nos 16/2013-Central Excise, 25/2013-Customs and 26/2013 –Customs, all dated 8th May, 2013 have been issued on 08.05.2013. The changes made in the duty rates are summarized below.

EXCISE DUTY

1. Excise duty on jaggery powder has been reduced from 12 % to 2 % (without CENVAT) and 6 % (with CENVAT). For this purpose, notification No. 1/2011-CE and 2/2011-CE, both dated 1-3-2011 have been amended by notification No.16 /2013-Central Excise, dated 08-05-2013. New serial number 9A in notification No. 1/2011-CE and 2A in notification No. 2/2011-CE may be referred to for details.

2. Particle/Fibre Board manufactured from agricultural crop residues have been exempted from excise duty. Serial number 330 of notification No. 12/2012-Central Excise, dated 17-03-2012 has been suitably amended by notification No. 16/2013-CE, dated 8-5-2013 to provide for this change.

3. Excise duty on flattened bamboo boards and bamboo flooring tiles has been reduced from 12% to 2% without CENVAT credit and 6% with CENVAT credit. Notification No.  16/2013-Central Excise, dated 08-05-2013 may be referred to for details.

4. Clay bricks (Tariff Item 69010010) and roofing tiles (Tariff Item 69051000) have been exempted from excise duty. Amendments have been carried out in notification Nos.  1/2011-CE and 2/2011-CE, both dated 1.3.2011 and 12/2012-CE, dated 17.3.2012 by notification No. 16/2013-Central Excise, dated 08-05-2013. New serial numbers 187A and 187B of notification No. 12/2012-CE may be referred to for details.

5. Steel supplied to the Indian shipyards manufacturing ships and vessels [CETH 8901, 8902, 8904, 8905 (except sub heading 8905 20) or 8906] in accordance with the provisions of section 65 of Customs Act,1962 has been exempted from excise duty subject to fulfillment of certain conditions. A new serial number 306B has been inserted in notification No. 12/2012-CE by notification No. 16/2013-Central Excise, dated 08-05-2013.

3.         CUSTOMS DUTY

1. Exemption from basic customs duty (BCD) has been extended to Liquefied Natural Gas (LNG) and Natural Gas (NG) imported by 2 PSUs, namely, GAIL NTPC JV and Petronet LNG Ltd. for supply to a generating company as defined in section 2(28) of the Electricity Act,2003 subject to fulfillment of certain conditions. For this purpose, notification No.  12/2012-Customs, dated 17-03-2012 has been amended by notification No. 25/2013-Customs, dated 08-05-2013.  New serial number 139A of notification No. 12/2012-Customs, dated 17-3-2012 may be referred to for details.

2. The basic customs duty (BCD) on titanium dioxide falling under heading 28.23 has been enhanced from 7.5% to 10%. Henceforth, titanium dioxide, regardless of its classification under heading 28.23 or 32.06, will attract a uniform duty at 10%. Serial number 150 of notification No. 12/2012-Customs has been amended by notification No. 25/2013-Customs, dated 08-05-2013 to provide for this change.

3. The basic customs duty (BCD) on polymers (CTH 3901, 3902, 3903 and 3904) including ethylene vinyl acetate (EVA) has been increased from 5% to 7.5%. Notification No.  25/2013-Customs,  dated 08-05-2013 amending S. Nos. 231, 237, 238, 239 and 240 of notification No. 12/2012-Customs may be referred to for details.

4. The basic customs duty on iron or steel scrap including stainless steel scrap (CTH 7204) has been increased from Nil to 2.5%.  Serial numbers 332 & 333 of notification No. 12/2012-Customs have been amended by notification No.  25/2013-Customs, dated 08-05-2013 to provide for this change.

5. The basic customs duty on aluminum scrap (CTH 7602) has been increased from Nil to 2.5%. Serial number 338 of notification No. 12/2012-Customs has been amended by notification No. 25/2013-Customs, dated 08-05-2013 to provide for this change.

6. The exemption from special additional duty (Special CVD) on brass scrap has been withdrawn.  The entry at serial number 80 of notification No. 21/2012-Customs, dated 17-03-2012 has been omitted by notification No. 26/2013-Customs, dated 08-05-2013 to effect this change.

Notification   Nos. 16/2013-CE, 25/2013-Customs and 26/2013-Customs, all dated 08-05-2013 may kindly be perused to note the changes.

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