Background:
Earlier, the CBIC issued Notification No. 03/2019-Central Excise dated July 6, 2019 (“the Concessional Excise Duty rate Notification”), in order to prescribe concessional excise duty on specified goods falling within the chapter 24 of the Fourth Schedule to the Central Excise Act 1944.
Further, the new (seventh) edition of the Harmonized System (HS) nomenclature i.e., HS-2022, shall come into force from January 01, 2022. This edition has introduced significant changes to the Harmonized System with a total of 351 amendments at the six-digit level, covering a wide range of goods moving across borders.
As India is a party to the HS convention, necessary changes were brought in accordingly, under the Concessional Excise Duty rate Notification through the below mentioned notification:
Notification:
The CBIC vide Notification No. 10/2021-Central Excise dated December 29, 2021 has issued certain amendments in the Concessional Excise Duty rate Notification w.e.f. January 01, 2022 in following manner:
|
S. No. |
New HSN/Chapter | New Entry |
Rate |
|
27. |
2404 11 00 | All goods | 0.5% |
| 28. | 2404 19 00 | All goods |
0.5% |
The Notification can be accessed at: https://www.cbic.gov.in/resources//htdocs-cbec/excise/cx-act/notifications/notfns-2021/cx-tarr2021/ce10-2021.pdf;jsessionid=6063D099ECB935CBC418BAC64DA5D435
Our comments:
Similar changes have been adopted under GST provisions from January 01, 2022 so as to align the same with HS 2022. The list of notifications are as under:
Notification No. 18/2021- Central Tax (Rate) dated December 28, 2021
Notification No. 19/2021- Central Tax (Rate) dated December 28, 2021
Notification No. 20/2021- Central Tax (Rate) dated December 28, 2021
Similar notifications have been passed under Integrated Goods and Services Tax Act, 2017 and Union Territory Goods and Services Tax Act, 2017.
Notification No. 02/2021-Compensation Cess (Rate) dated December 28, 2021
The HSN Amendments chapter wise can be accessed at: https://a2z-bucket.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/12/HSN-Amendments-Chapterwise-from-Jan-1-2022.pdf
Correlation of Customs Tariff between 2021 and 2022 can be accessed at: https://www.cbic.gov.in/resources//htdocs-cbec/deptt_offcr/Guidance%20Document%20on%20Correlation%20of%20Customs%20Tariff%20between%202021%20and%202022.pdf