- There is no change in the peak rate of the custom duty in the current budget
- Exemption from 4% additional duty of customs has been withdrawn :- The exemption from 4% additional duty of custom leviable under section 3(5) of the Custom Tariff Act has been withdrawn from Power generation projects, (Other than mega power projects) transmission, sub-transmission and distribution projects, and goods for high voltage transmission projects.
- NCCD duty @1% withdrawn :- The national Calamity Contingent duty @ 1% leviable on the polyerter filament yarn has been withdrawn.
- The Basic custom duty has been reduced on
| industries | Description of goods | Earlier | Present |
| Project imports | Project imports | 7.5% | 5% |
| Chemicals | Crude and unrefined sulphur | 5% | 2% |
| Phosphoric acid has been unified | “60”>
7.5% |
5% | |
| Drugs & kit | Specified drugs/kit and their bulk drugs used in the treatment of cancer/diabetes/asthma/ hepatitis B,etc. | 10% | 5% |
| Metals | Steel Melting Scrap | 5% | Nil |
| Aluminium Scrap | 5% | Nil | |
| Sports goods | Specified machinery for manufacture of sports goods | 7.5% | 5% |
| Specified raw materials for manufacture of sports goods, upto 3% of the FOB value of exports of sports goods in the preceding year | 10% | Nil | |
| Other | Specified raw materials for tyre industry | 10% | 5% |
CHANGES IN THE STATUTORY PROVISION :-
CREDIT ELIGIBLE AGAINST THE AMOUNT DEBITED IN DUTY FREE CREDIT ENTITLEMENT CERTIFICATE RETROSPECTIVE FROM 1.4.2003
The manufacturer will be eligible to avail the credit or drawback for duty amount debited from the DFEC certificate. The above provision will given the retrospective effect from 1st April 2003. The manufacturer not avail the credit on the CVD portion debited in the DFEC certificate and intimate the excise department and avail the credit.
INCREASE IN THE AMOUNT OF PENALTY FOR CONTRAVENTION OF THE ACT, RULES AND THE REGULATION :-
The amendment has been made to increase the maximum amount of penalty from existing ten thousand to one lacs, for contravention of any provision of the Act where no express penalty is provided.
The amendment has been made to increase the maximum amount of penalty from existing five hundred rupees to fifty thousand rupees, for contravention of any of the rules and from two hundred rupees to fifty thousand rupees for contravention of regulation.
REVIEW OF ORDER PASSED BY JURISDICTIONAL CHIEF COMMISSIONER OR APPELLATE TRIBUNAL
Presently, the committee of Chief Commissioners and Committee of Commissioners have been empowered to review the order of jurisdictional Commissioner or Commissioner (Appeals) and direct the proper officer to file the appeal against the order, in case they are not satisfied that the order is legal or proper. There have been instances where committee which consist of 2 Chief Commissioners or Commissioners have differed. Now, it is specifically provided that in such a case, in case the two Chief Commissioners differ, the matter shall be referred to Board of Central Excise and Customs and in case of difference of opinion in Commissioners, it shall be referred to Chief Commissioners.
