Subject: Central Excise – Levy of additional excise duty under Finance Act, 1985 on T.V. Sets exported under Rule 13 of the Central Excise Rules- Withdrawal of Instructions regarding….
Attention is invited to Board”s Circular No. 11/91-CX. 6 dt. 3.7.91 relating to levy of additional excise duty under Finance Act, 1985 on TV sets. It was clarified in this Circular that Rule 13 does not permit export of goods without payment of duty leviable under the Finance Act, 1985 and in the absence of a specific Notification exemption payment of AED on goods under export, the provisions of Rule 13 are not applicable and AED would accordingly be leviable on goods exported.
2. consumer Electronics & TV Manufacturers Association (CETMA) have represented that AFD on TV sets was levied in lieu of the licence fee and the Government had no intention to charge AED on TVs exported out of India. They have requested that the demands raised for AED on TV sets exported out of India should be withdrawn.
3. The matter has been examined by the Board. Para 145 of the Budget speech of 1985 Budget refers to imposition of AED on TV sets. The relevant portion reads as follows:
“The second proposal regarding simplification concerns the licence fee on television sets, VCRs and radios. While the requirement of taking out a licence in the case of radios, television sets and VCRs is being dispensed with, a new one- time levy is being introduced on television sets alone at a uniform rate of Rs. 100 per set in lieu of the present licence fee of Rs. 50 payable every year till the T.V. set lasts. Henceforth, people will not have to go to the post offices for taking out or renewing licences. This levy would be an additional duty of excise, so far as T.V. sets manufactured in India are concerned. The additional duty of excise collected from this will accrue to the Center only and will not be shareable with the States”.
4. From the above, it is clear that this AED was in lieu of the licence fee which was collectable on domestic use of TV sets and not on TVs exported.
5. In view of the above, it is clarified that demands of AED on TV sets when exported out of India are not sustainable and pending assessments may be finalised accordingly.
6. Board”s earlier Circular No. 11/91-CX.6 dt. 3.7.91 and 10.10.94-Cx.6 dated 1.2.1994 accordingly stands withdrawn.