Detailed analysis of changes in rates of Central Excise & Custom – Union Budget 2019.
In Union Budget 2019-20, the Finance Minister has introduced the Finance (No.2) Bill, 2019 in Lok Sabha on July 05, 2019. The following are the gist of the notifications which makes amendment in Customs and Central Excise with effect from July 06, 2019 unless otherwise stated. To prescribe effective rate of duty following notifications are being issued:
| Notifications Nos. | Date | |
| CUSTOMS | No. 18/2019 – Customs to No. 27/2019 – Customs | 6th July, 2019 |
| CENTRAL EXCISE | No. 2/2019 – CE to No. 6/2019 – CE | 6th July, 2019 |
Unless otherwise stated, all changes in rate of duty take effect from the midnight of 5th July/6th July, 2019. A declaration has been made under the Provisional Collection of Taxes Act, 1931 in respect of clauses 87(a), 90, 185 and 201 of the Finance (No. 2) Bill, 2019 so that changes proposed therein takes effect from the midnight of 5th July/6th July, 2019. The remaining legislative changes would come into effect only upon the enactment of the Finance (No. 2) Bill, 2019.
| Customs: Amendment in First Schedule to the Customs Tariff Act, 1975 | ||
| S. No. | Notification No. | Description |
| 1.* | 18/2019-Customs dated July 06, 2019 | Seeks to increase the effective rate of Road and Infrastructure Cess, as additional duty of customs, on
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| *Note: Similar increase in the effective rate of Road and Infrastructure Cess as additional duty of excise on Petrol and Diesel vide Notification No. 04/2019 -Central Excise dated July 06, 2019 | ||
| 2. | 19/2019-Customs dated July 06, 2019
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Seeks to exempt specified defense equipment and their parts from whole of Basic Customs Duty subject to certain conditions for a period of 5 years i.e. till July 01, 2024. The conditions are as follows: –
a. The quantity, description and technical specifications of the imported goods; b. The said imported goods are intended for the purpose of and use by the defence forces only and recommends the grant of exemption to the imported goods.
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| 3. | 20/2019-Customs dated July 06, 2019 | Seeks to further amend notification No. 52/2017- Customs dated June 30, 2017 so as to increase the effective rate of Basic Customs Duty on Petroleum Crude falling under sub heading 2709 00 00 to Rs. 1 Per tonne. |
| 4. | 21/2019-Customs dated July 06, 2019 | Seeks to further amend notification No 25/1998-Customs dated June 02, 1998 to update the classification of certain goods in the notification. Following are some of the goods:
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| 5. | 22/2019-Customs dated July 06, 2019 | Seeks to further amend notification No 25/2002- Customs dated March 01, 2002 to exempt specified capital goods used for manufacture of specified electronic items. Some of the changes are as follows:
a. Populated PCBA. b. Camera module of cellular mobile phones. c. Charger/Adapter of cellular mobile phone. d. Lithium Ion Cell. e. Display Module. f. Set Top Box. g. Compact Camera Module, etc |
| 6. | 23/2019-Customs dated July 06, 2019 | Seeks to further amend notification No 25/2005- Customs dated March 01, 2005 to explicitly provide exemption from Basic Customs Duty on the specified parts of line telephone handset falling under tariff heading 8518 30 00. |
| 7. | 24/2019-Customs dated July 06, 2019 | Seeks to further amend notification No 57/2017- Customs dated June 30, 2017 to explicitly exclude the specified electronic items from scope of entry at S. No. 6A of the notification and to provide the effective rates on other goods. The following are some of the specified electronic items that are excluded from entry at S. No. 6A of the notification are as here under: –
a. Connectors; b. Microphones; c. Receivers; d. Speaker; e. SIM socket |
| 8. | 25/2019-Customs dated July 06 2019 | Seeks to further amend notification No 50/2017-Customs dated June 30, 2017 so as to prescribe effective rate of Basic Customs Duty (BCD). Following are some of items which shall be inserted:
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| 9. | 26/2019-Customs dated July 06, 2019 | Seeks to further amend notification No 14/2006- Customs dated March 01, 2006 in order to change the classification of other dyed fabrics of nylon from “5407 42 00” to “5407 42” |
| 10. | 27/2019-Customs dated July 06, 2019 | Seeks to further amend notification No 27/2011- Customs dated March 01, 2011 to reduce the export duty on EI tanned leather falling under chapter heading 41 from 15% to “Nil” and Hides, skins and leathers, tanned and untanned, all sorts falling under chapter heading 41 from 60% to “40%” |
Note: Readers are requested to read relevant notification for complete details.
| Central Excise: Amendments in the Fourth Schedule To The Central Excise Act, 1944 | ||
| 1. | 02/2019-Central Excise dated July 06, 2019 | Seeks to further amend notification No. 11/2017-Central Excise dated June 30, 2017 so as to omit Sl. No. 1 and entries relating thereto with respect to chapter 24. |
| 2. | 03/2019- Central Excise dated July 06, 2019 | Seeks to increase the Basic Excise Duty on specified goods in Chapter 24 under section 5A of the Central Excise Act 1944. The following are some of the specified goods: –
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| 3. | 04/2019- Central Excise dated July 06, 2019 | Seeks to increase the effective rate of Road and Infrastructure Cess as additional duty of excise on Petrol and Diesel. |
| 4. | 05/2019- Central Excise dated July 06, 2019 | Seeks to increase the effective rate of Special Additional Excise Duty on:
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| 5. | 06/2019- Central Excise dated July 06, 2019 | Seeks to exempt crude petroleum oil produced in specified oil fields under production sharing contracts or in the exploration blocks offered under the New Exploration Licensing Policy (NELP) through international competitive bidding. |
Note: Readers are requested to read relevant notification for complete details.
Hope the information will assist you in your Professional endeavours. In case of any query/ information, please do not hesitate to write back to us.
Author of a book on Goods and Services Tax, titled, “GST Law and Analysis (with conceptual procedures) [5th Edition]
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