17 September: Important IDT Notifications & Circulars

Notification: Customs:

Increase in effective rate of Basic Customs Duty on import of Marble and Travertine blocks, Marble slabs and Granite slabs w.e.f. October 1, 2016

The Central Board of Excise and Customs vide Notification No. 49/2016- Customs dated September 16, 2016 has made amendments in Notification No. 12/2012- Customs dated March 17, 2012 dealing with effective rate of duty on import of goods thereby amending the following-

Substitution of “All goods” at entry in column (3) at serial number 110A with “All goods, other than,-
Rough Marble and Travertine blocks;
Marble slabs”
Insertion of serial no. and entries after serial number 110A –

S.No.	Chapter or Heading or sub-heading or tariff item	Description of goods	Standard rate	Additional duty rate	Condition No.
(1)	(2)	(3)	(4)	(5)	(6)
110AA	2515 12 20	Marble slabs	20%	–	–

Substitution of “All goods” at entry in column (3) at serial number 303A,with “All goods, other than goods mentioned at serial numbers 303AA and 303AB”
Insertion of serial no. and entries after serial number 303A –

S.No.	Chapter or Heading or sub-heading or tariff item	Description of goods	Standard rate	Additional duty rate	Condition No.
(1)	(2)	(3)	(4)	(5)	(6)
303AA	6802 10 00, 6802 21 10, 6802 21 20, 6802 21 90, 6802 91 00, 6802 92 00	Marble slabs	20%	–	–
303AB	6802 23 10, 6802 23 90, 6802 29 00, 6802 93 00	Granite slabs	20%	–	–

Further, the said amendments are effective from October 1, 2016.Thus, the effective rate of Basic Customs Duty on import of Marble slabs and Granite slabs is increased from 10% to 20% w.e.f. October 1, 2016.

Notification: Central Excise:

Amendment in form A.R.E.-2 for claiming rebate on removal of goods for export

The Central Board of Excise and Customs vide Notification No. 44/2016- Central Excise (N.T.) dated September 16, 2016 has made amendments in Notification No. 21/2004- CE (N.T.) dated September 6, 2004 dealing with procedure and conditions for rebate of whole of the duty paid on excisable goods used in the manufacture or processing of export goods thereby amending Form A.R.E. 2 i.e. combined application for removal of goods for export under claim for rebate of duty paid on excisable materials used in the manufacture and packing of such goods and removal of dutiable excisable goods for export under claim for rebate of finished stage Central Excise Duty or under bond without payment of finished stage Central Excise Duty leviable on export goods.

Circular: Central Excise:

Clarification regarding supply of goods by EOU to Advance License Holder without payment of duty

The Central Board of Excise and Customs vide Circular No. 1046/34/2016- CX dated September 16, 2016 has in regard to representation received from trade and field formations, clarified that second proviso to para 6 of the Notification no. 22/2003-CE dated March 31, 2003 denying the exemption from central excise duty on inputs, in cases where goods cleared into DTA are either non-excisable or in case of imports attract nil rate of Customs duty and additional Customs duty, when goods manufactured by EOU are supplied to Advance Licence /Authorisation holder in DTA and the proviso to para 3 of Notification no. 52/2003-Cus dated March 31, 2003 denying exemption from customs duties on similar grounds, would not be applicable, in case of supply of manufactured goods by EOU to Advance Licence/Authorisation holder in DTA, without payment of Central Excise duty.

Clarification regarding rebate of duties paid on raw materials used in manufacture or processing of export goods and admissibility of duty drawback in such cases

The Central Board of Excise and Customs vide Circular No. 1047/35/2016- CX dated September 16, 2016 has in respect of representations received from trade regarding difficulty in simultaneously availing drawback of Customs portion and rebate of duties of excise on raw material used in the manufacture or processing of goods exported, clarified the following–

(i) Where in respect of exports, CENVAT credit is not availed on inputs but input stage rebate on excisable goods except diesel is availed under rule 18 of the Central Excise Rules, 2002, drawback of Customs portion, as per rates and caps specified in column (6) and (7) of the drawback schedule shall be admissible,

(ii) Where in respect of exports, CENVAT credit is not availed on inputs but the inputs except diesel, are procured without payment of Central Excise duty under rule 19(2)of Central Excise Rules, 2002, drawback of Customs portion, as per rates and caps specified in column (6) and (7) of the drawback schedule shall be admissible,

(iii) Where in respect of exports, input stage rebate on diesel under rule 18 of Central Excise Rules, 2002 is availed or diesel is procured without payment of Central Excise duty under rule 19(2) of Central Excise Rules, 2002, no drawback either under column (6) and (7) or column (4) and (5) of the drawback schedule shall be admissible.

(a) Divisional Assistant/Deputy Commissioner, Central Excise, while sanctioning the rebate claim should verify this aspect and in case of availment of any drawback, where input stage rebate on diesel under rule 18 of Central Excise Rules, 2002 is also availed shall deny the claim of rebate involved on diesel out of the rebate claimed, for violation of the declaration (d) of the ARE 2.

(b) In cases where diesel is procured without payment of Central Excise duty under rule 19(2) of Central Excise Rules, 2002, and the goods are exported under claim of drawback the Central Excise duty involved on diesel shall be recovered for violation of the declaration (d) of the ARE 2, while examining the proof of export.

Notification: Maharashtra VAT:

Amendment in Schedule C, D, & E to enhance tax rate from 5.5% to 6% and 12.5% to 13.5% w.e.f. September 17, 2016

The Maharashtra Government vide Notification No. VAT. 1516/CR-123/Taxation-1dated September 16, 2016 has made amendment in Schedule ‘C’, ‘D’ and ‘E’ appended to the Maharashtra Value Added Tax Act, 2002 which are effective from September 17, 2016, as follows-

Schedule C dealing with list of goods for which rate of tax is between 2% to 6% (including both) (6% was earlier 5.5%)

Substitution of “6%” for the figures and sign “5.5%” in the heading and in the entries at the serial numbers in the Schedule where rate of tax appears 5.5% viz. all kinds of bricks excluding paver blocks but including fly ash bricks and refractory bricks and monolithics, asphaltic roofing tiles, earthen roofing tiles etc.

Schedule ‘ D ‘ dealing with list of goods for which rate of tax is 20% or above, in entry 10

Substitution of “26% + Six rupees per litre “, for the figures, signs and words ” 26% + Four rupees fifty paise per litre”, in sub-entry (a), against clauses (i) and (ii), in column (3).

Substitution of” 25% + Six rupees per litre “, for the figures, signs and words, ” 25%+ Four rupees fifty paise per litre ” in sub-entry (b), in column (3).

Thus the amended entry 10 will be as follows-

Sr. No.	Name of the commodity	Rate of Tax
(1)	(2)	(3)
10	Any other kind of Motor Spirit, (a) when delivered,- (i) to a retailer for trading from a place of business situated within the geographical limits of the Municipal Corporations of the Brihan Mumbai, Thane, Navi Mumbai and within such other areas for such period as may be notified by the State Government in the Official Gazette.(Municipal Corporation of Nagpur.(01-03-2016 to 29-02-2017)); and	26% +Six rupees per litre
	ii) to a person other than the retailer having place of business situated within the geographical limits of the Municipal Corporations of the Brihan Mumbai,Thane, Navi Mumbai and within such other areas for such period as may be notified by the State Government in the Official Gazette(Municipal Corporation of Nagpur.(01-03-2016 to 29-02-2017));	26% +Six rupees per litre
	(b) when delivered in circumstances other than those mentioned in clause (a) above	25% +Six rupees per litre

Schedule ‘E’, dealing with goods not covered elsewhere for which the rate of tax is 13.50% (earlier it was 12.5%)

Substitution of 13.5% for the figures and sign “12.5%” in the heading and in entry 1, in column (3) dealing with all goods not covered in any of the other Schedules.

17 September: Important IDT Notifications & Circulars

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17 September: Important IDT Notifications & Circulars

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