EXPLANATORY NOTES (EXCISE)
Note: All changes come into effect immediately unless otherwise specified.
GENERALEnhancement of Standard Rate: - The standard rate of excise duty, which was reduced to 8% in
February 2009 as a part of the Stimulus package on non-petroleum products is now being enhanced from 8% to 10% with a few exceptions. Consequent to the increase in the standard rate, rates of excise duty on certain products like Cement, Large Cars etc. are also being suitably enhanced. Chapter wise changes in excise duty rates, other than enhancement of standard rate from 8% to 10%, are given below:
Chapters 1 to 10No change.Chapter 1111.1 Excise duty exemption on Tapioca Starch & Maize Starch is being withdrawn and these products will now attract excise duty at 4%. (S.No. 3 of Notification 3/2006-CE as amended by the notification 9/2010-CE dated 27.02.2010 refers) 11.2 Excise duty on potato starch is being reduced from 8% to 4 %.( S.No. 3 of Notification 3/2006-CE as amended by the notification 9/2010-CE dated 27.02.2010 refers)
Chapters 12 to 20No change.
Chapter 2121.1 Excise duty on Betel nut product known as „Supari. is being fully exempted from excise duty. However, Scented Supari will continue to attract duty at applicable rates. (S.No. 27Aof Notification 3/2006-CE as amended by the notification 9/2010-CE dated 27.02.2010 refers)
21.2 Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Amendment Rules, 2010 have been issued to amend Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008 to effect certain technical changes in the said rules (Notification No. 8/2010-Central Excise (N.T.), dated 27.02.2010 refers).
Chapter 22 & 23No change.
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