Budget 2017 – Central Excise (Tariff)

BUDGET 2017 – CENTRAL EXCISE (TARIFF)

 

In the budget 2017, Central Excise Duty rate in respect of certain commodities have been changed.  All these changes are effective from 2nd of February, 2017.  The Chapter wise changes in Rates of Duty are as under:-

Chapter 1 to 20 and 22, 23: No Change

Chapter21 & 24

As in all the previous Budgets the Central Excise Duty have been increased on Cigrates, Cigars, Cheroots, Biris, Pan Masala, Jarda Scented Tobacco, Gutkha and Chewing Tobacco have been increased.  Accordingly, the Excise Duty payable per machine per month under the compounded levy scheme applicable to to these products is modified.

Chapter 25 to 30: No Change

Chapter 31

Goods falling under heading 3101 of the Central Excise Tariff attract Nil Central Excise duty by tariff: Notification No.12/2012-Central Excise dated 17.03.2012 [S.No.128, which prescribed a concessional excise duty of 1% subject to certain conditions] is amended so as to exclude goods falling under heading 3101 from the purview of the said entry.

Chapter 32 to 37: No Change

Chapter 38 and 39:

1) Excise duty is exempted on Catalyst [3815 90 00] and Resin [3909 40 90] for use in the manufacture of cast components of Wind Operated Electricity Generator, subject to actual user  condition.  The  exemption from excise duty will be valid till 30th June,  2017.

2)  Excise duty on Membrane Sheet and Tricot / Shaper, falling under tariff item 3921 19 00, for use in the manufacture of Reverse Osmosis (RO) membrane for household type filters is reduced from 12.5% to 6% subject to actual user condition. This concessional excise duty will be valid till 30th June, 2017.

Chapter 40 to 69: No change

Chapter 70:

1)     Excise duty exemption on solar tempered glass for use in the manufacture of (a) solar photovoltaic cells or modules, (b) solar power generating equipment or systems, (c) flat plate solar collectors, or (d) solar photovoltaic module and panel for water pumping and other applications, [under S. No 187 C and List 8 of S. No. 332 A of Notification No. 12/2012-Central Excise dated 17th March, 2012] is withdrawn, and 6% concessional excise duty is imposed on such solar tempered glass, subject to actual user condition. This 6% concessional excise duty will be valid till 30th June, 2017.

2)     Excise duty is reduced from 12.5% to 6% on parts/raw material for use in the manufacture of solar tempered glass, for use in (a) solar photovoltaic cells or modules; (b) solar power generating equipment or systems, (c) flat plate solar collectors, or (d) solar photovoltaic module and panel for water pumping and other applications, subject to actual user condition. This 6% concessional excise duty will be valid till 30th June, 2017.

Chapter 71

1)     Nil excise duty, on waste and scrap of precious metals or metals clad with precious metals, arising in course of manufacture of goods, is made subject to condition that no credit of input or input services or capital goods has been availed by manufacturers of such goods.

2)     Nil excise duty, on strips, wires, sheets, plates and foils of silver, is made subject to condition that no credit of input or input services or capital goods has been availed by manufacturers of such goods.

3)     Nil excise duty, on articles of silver jewellery, other than those studded with diamond, ruby, emerald or sapphire, is made subject to condition that no credit of input or input services or capital goods has been availed by manufacturers of such goods.

4)     Nil excise duty, on Silver coins of purity 99.9% above, bearing a brand name, is made subject to condition that no credit of input or input services or capital goods has been availed by manufacturers of such goods.

Chapter 72 to 83: No change

Chapter 84 and 85:

1)      Excise duty is exempted on Micro ATMs as per standards version 1.5.1, fingerprint reader / scanner, and Iris Scanner. Further, excise duty is also exempted on parts and components for manufacture of these devices, subject to actual user condition. This exemption from excise duty will be valid till 30th June, 2017.

2)      Excise duty is exempted on miniaturised POS card reader for mPOS (other than Mobile phone or Tablet Computer). Further, excise duty is also  exempted on parts and components of miniaturised POS card reader for use in the manufacture of miniaturised POS card reader for mPOS (other than Mobile phone or Tablet Computer), subject to actual user condition. This exemption from excise duty will be valid till 30th June, 2017.

3)    Point of Sale [POS] devices and all goods for manufacture of POS devices subject to actual user condition were exempted from central excise / CV duty Vide Notification No.35/2016- Central Excise, dated 28th November, 2016. These exemptions which are valid till 31st March 2017 are  extended up to 30.06.2017.

Chapter 86: No change

Chapter 87:

1)   Excise duty on Motor Vehicles falling under tariff items 8702 90 21, 8702 90 22, 8702 90 28 and 8702 90 29 is  reduced from 27% to 12.5% retrospectively from 1st January, 2017. Clause 119 of Finance Bill, 2017 refers. With effect from 11.01.2017, vide S.No.277A of notification No.12/2012-Central Excise, dated 17.03.2012, these goods already attract excise duty of 12.5%.

Chapter 88 to 96: No change

Miscellaneous:

1)     6% concessional excise duty is  prescribed for all items of machinery, including, instruments, apparatus and appliances, transmission equipment and auxiliary equipment (including those required for testing and quality control) and components/parts, required for initial setting up of fuel cell based system for generation of power or for demonstration purposes subject to certain conditions. The concessional excise duty will be valid till 30th June, 2017.

2)     6% concessional excise duty is  prescribed for all items of machinery, including, instruments, apparatus and appliances, transmission equipment and auxiliary equipment (including those required for testing and quality control) and components/parts, required for balance of systems operating on biogas/ bio-methane/ by-product hydrogen, subject to certain conditions. The concessional excise duty will be valid till 30th June, 2017.

3)     6% concessional excise duty, currently applicable to LED (Light Emitting Diode) driver and MCPCB (Metal Core Printed Circuit Board) for use in the manufacture of LED lights and fixtures or LED lamps [S. No. 321A of Notification No. 12/2012- Central Excise dated 17th March, 2012 refers], is  extended to all parts for use in the manufacture of LED lights or fixtures including LED Lamps subject to actual user condition. This 6% concessional excise duty will be valid till 30th June, 2017. S.No.321A of Notification No. 12/2012-Central Excise, dated 17th March, 2012 as amended vide Notification No.6/2017- Central Excise, dated 2nd February, 2017 refers.

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