Dear Professional Colleague,
Mist on applicability of Excise Duty w.e.f September 16, 2016
Recently, the Central Government vide Notification S.O. 2986(E).- [F. No. 31011/07/2014-SO (ST)] dated September 16, 2016, has appointed 16th day of September, 2016 as the date on which the provisions of Sections 1 to 20 (except Section 12 which was notified on September 12, 2016) of the Constitution (101st Amendment) Act, 2016 (“the Constitutional Amendment Act”) shall come into force.
It may be noted that Section 1(2) of the Constitutional Amendment Act empowers the Central Government to appoint, by notification in the Official Gazette, different dates for different provisions of this Act. After, notifying September 12, 2016 as the appointed date for Section 12 (GST Council provisions) of the Constitutional Amendment Act, now September 16, 2016 has been notified as the appointed date for remaining 19 Sections.
According to the aforesaid Notification, Section 17 of the said Act has come into force w.e.f September 16, 2016 which substitutes the entry 84 of List-I of Seventh Schedule to the Constitution — as follows:
| Entry No. 84 as existed prior to September 16, 2016 | Entry No. 84 post enactment of Section 17 of the Constitutional Amendment Act |
| “Duties of excise on tobacco and other goods manufactured or produced in India except—
(a) alcoholic liquors for human consumption; (b) opium, Indian hemp and other narcotic drugs and narcotics, but including medicinal and toilet preparations containing alcohol or any substance included in sub-paragraph (b) of this entry.” |
“Duties of excise on following goods manufactured or produced In India namely—
(a) petroleum crude; (b) high speed diesel; (c) motor spirit (commonly known as petrol); (d) natural gas; (e)aviation turbine fuel and (f) tobacco and tobacco products.” |
Presently, Entry No. 84 has empowered the Centre to levy Central Excise duty on all goods including tobacco products but excluding alcoholic liquor for human consumption, opium, Indian hemp and other narcotic drugs and narcotics. However with the amendment in Entry No. 84 vide Section 17 of the Constitutional Amendment Act, this Entry is restricting the powers of the Centre to levy Excise duty only on manufacture or production of:
“(i) Petroleum and petroleum products viz. petroleum crude, high speed diesel, motor spirit (petrol), natural gas, aviation turbine fuel; and
(ii) Tobacco and tobacco products.”
Now, does this mean that no Central Excise duty can be levied on any other goods other than the specified goods? Apparently, it seems to have created doubts on legislative competence of the Central Government to levy Central Excise duty on goods other than Petroleum and Tobacco products w.e.f. September 16, 2016.
This definitely cannot be the intention of the legislature as the said entry has relevance only under GST regime and the Central Government will continue to levy Excise duty on manufacture of all goods except alcoholic liquor for human consumption, opium, Indian hemp and other narcotic drugs and narcotics till GST is implemented.
We are hopeful of that the Government will issue a clarification to the stated issue at the earliest under the mist.
“Some questions are raised about the notifications issued recently in respect of GST constitutional amendment. We will be clarifying the correct legal position tomorrow and we will issue amendments if the need be”…..
Tweet by Revenue Secretary, Shri. Hasmukh Adhia on Sunday late night
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Thanks & Best Regards,
Bimal Jain
FCA, FCS, LLB, B.Com (Hons)
Author of a book on Goods and Services Tax, titled, “GOODS AND SERVICES TAX – INTRODUCTION AND WAY FORWARD” (1st Edition)
A2Z TAXCORP LLP
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