GSC-Central Excise Tariff-Budget-2016-17

Union Budget 2016-2017
Key Central Excise Tariff Amendments
2/19, Nityanand Nagar, Sahar Road, Andheri (East), Mumbai-400 069.
03/03/2016

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1. Excise Duty imposed:
Sr. No. Particulars Existing
Rate
New Rate
1 Branded readymade garments and made up
articles of textiles falling under chapters 61, 62
and 63 (heading 6301 to 6308, except 6309 00
00 and 6310) of retail sale price of Rs.1000 or
more
i) Cenvat credit not availed
ii) Cenvat credit availed
NIL
12.50%
2%
12.50%
2 Exemption available to specified items used for
manufacture of rotor blades and intermediates,
parts and sub parts thereof for wind operated
electricity generators is withdrawn
NIL 6%
3 Charger/adapter, battery and wired
headsets/speakers for supply to mobile phone
manufacturers if,
i) Cenvat credit not availed
ii) Cenvat credit availed
NIL
NIL
2%
12.50%

2. Excise Duty Enhanced- Basic Rate:
Rate
New Rate
1 Mineral waters and aerated waters, containing
added sugar or other sweetening matter or
flavored
18% 21%
2 Aviation Turbine Fuel [ATF] other than for
supply to scheduled commuter airlines (SCA)
8% 14%
3 Refined gold bars manufactured from dore bar,
ore or concentrate
9% 9.50%
4 Gold bars and coins produced during the
process of copper smelting
9% 9.50%
5 Refined silver manufactured from dore bar, ore
or concentrate
8% 8.50%
6 Silver produced during the process of copper,
zinc or lead smelting
8% 8.50%
7 Excise duty on sacks and bags of polymers of
any plastics
12.50% 15%

3. Excise Duty Exempted:
Rate
New Rate
1 N-paraffin arising during the course of
manufacture of Linear alkyl Benzene [LAB] and
heavy alkylate [HA]
14% NIL
2 Tools and tool kits procured by MROs for
maintenance, repair, and overhauling of aircraft
6% / 12.5% NIL
3 Solar lamp 12.50% NIL
4 Parts and components, subparts used in
manufacture of specified consumer premise
equipment’s like routers, broadband modems
etc.
12.50% NIL
5 Capital goods and spare thereof, raw materials,
parts, material handling equipment and
consumable for repairs of ocean-going vessels
by a ship repair unit subject to actual user
condition
6% / 12.5% NIL
6 Disposable sterilized dialyzer and micro barrier
of artificial kidney
12.50% NIL
7 Ready Mix Concrete manufactured at the site of
construction for use in construction work at
such site
i) Cenvat availed
ii) Cenvat not availed
6%
2%
NIL
NIL
8 Inputs, parts and components, subparts for
manufacture of charger / adapter, battery and
wired headsets / speakers of mobile phone,
subject to actual user condition
i) Cenvat availed
ii) Cenvat not availed
12.50%
NIL
NIL
NIL
9 Specified co-operative societies mixing chemical
fertilizers for supplying to its members
i) Cenvat availed
ii) Cenvat not aviled
6%
1%
NIL
NIL

4. Excise Duty reduced:
Rate
New Rate
1 Refrigerated containers 12.50% 6%
2 Specified micronutrients manufactured by the
manufacturers registered under Fertilizer
Control Order, 1985
12.50% 6%
3 Rubber sheets & resin rubber sheets for soles
and heels
12.50% 6%
4 Carbon pultrusion used for manufacture of
rotor blades and intermediates, parts and sub-
parts for wind operated electricity generators
12.50% 6%
5 Specified parts used in manufacture of
centrifugal pump
12.50% 6%
6 Engine for hybrid electric vehicle 12.50% 6%
7 Parts for Railway or Tramway covered under
Tariff ID 8607 and 8608
12.50% 6%

5. Amendments to optional Rates (i.e. With availment of Cenvat Credit or
otherwise) for specified goods:
Sr.
No.
Particulars Cenvat not availed Cenvat availed
Existing
Rate
New
Rate
Existing
Rate
New
Rate
1 Routers, broadband modems, set-
top boxes for gaining access to
internet, set top boxes for TV,
digital video recorder (DVR) /
network video recorder (NVR),
CCTV camera / IP camera, lithium
ion battery [other than those for
mobile handsets]
12.50% 4% 12.50% 12.50%
2 Disposable containers made of
aluminium foils
12% 2% 12% 12.5%
3 Polyester staple fibre or polyester
filament yarn, manufactured from
plastic scrap or plastic waste
including waste PET Bottles
2% 2% 6% 12.50%
4 Articles of Jewellery, Silver
jewellery studded with diamonds or
other precious stones with specified
conditions
- 1% - 12.50%

6. Change in RSP valuation:
Sr.
No.
Particulars Notified
abatement %
Remarks
1 All footwear products 30 Abatement from RSP increased
from 25% to 30%
2 Goods covered under tariff
heading soap, organic surface
active agents falling under
Tariff 3401 and 3402
30 Newly notified under RSP levy
3 Aluminum foils of a thickness
not exceeding 0.2 mm
4 Smart watches 35 Newly notified under RSP levy
5 Accessories of motor vehicle
and crane, fork- lift trucks,
self-propelled vehicles, pile
drivers falling under tariff ID
8426 41 00, 8427, 8429 and
8430 10

7. Change in Tariff Value:
Sr.
No.
Particulars Notified Tariff Value Remarks
1 Readymade garments and
made up articles of textiles
60 Increase in tariff value
from 30% to 60%

8. Other Tariff Amendments:
Sr. No. Particulars
1 Clean Energy Cess as levied on coal, lignite and peat has been renamed as
‘clean environment cess’ and its incidence increased from Rs.200 per tonne
to Rs.400 per tonne.
2 Oil Industries Development Cess is levied on domestically produced crude
oil under the Oil Industry (Development) Act, 1974 and its incidence is
changed from Rs.4500 PMT to 20% ad valorem. This will come into force
with effect from the date of assent of the Finance Bill, 2016.
3 The excise duty exemption under the existing area based exemptions for
production of gold and silver from gold dore, silver dore or any other raw
material is being prospectively withdrawn. Thus, new industrial units, which
commences commercial production on or after 01st
March, 2016 are
debarred from claiming exemption. Further, existing industrial units
undertaking substantial expansion in existing capacity shall not be entitled
for duty exemption for such expanded capacity.
4 Specified goods for the use in the manufacture of electrically operated
vehicles and hybrid vehicles were attracting concessional duty @ 6% uptil
31.03.2016. Now, validity period is extended unconditionally.
5 Clean Energy Cess / Clean Environment Cess on coal, lignite or peat
produced or extracted as per traditional and customary rights enjoyed by
local tribals without any license or lease in the State of Nagaland is fully
exempted
6 Excise duty on improved cookstoves (including smokeless chulhas) for
burning wood, agro-waste, cow dung, briquettes and coal are exempted
unconditionally.
7 Export to Nepal was treated on par with exports to other countries.

Consequently, notification No. 8/2003 - CE dated 01.03.2003 have excluded
the same from computation of home consumption.
8 In case of power generation project based on municipal and urban waste,
valid agreement between importer with urban local body for processing of
municipal solid waste for not less than ten years from the date of
commissioning of project is being prescribed for availing customs and excise
duty concessions as an alternative to the existing condition of “production
of valid power purchase agreement between the importer/producer of
power and the purchaser, for the sale and purchase of electricity generated
using non-conventional materials”.

Disclaimer
1. The document highlights general understanding of indirect tax amendments through
Union Budget 2016-2017. The same cannot be construed to be the opinion of the
Author.
2. Before using the same for any statutory interpretations, raising demands or taking any
business decisions, prior written consent of the author is mandatory.
3. In any case, the author or GSC Intime Services Pvt. Ltd. are not responsible for the
usage of the document without any written consent of the Author.
4. The views presented in the Document are personal views of the Author and may not be
accepted by the Tax or Judicial Authorities.
5. The document endeavors to explain the situation of the Law as on or before the date of
the document. The Author does not undertake any responsibility to update the same in
the future.
© Author

2/19 Nityanand Nagar, Sahar Road, Andheri (East), Mumbai-400 069.
6-A, Ranjit Studio Compound, DSP Road, Dadar (East), Mumbai-400 014.
+91 22 2683 6519
info@gscintime.com
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