Untitled Document
EXTRAORDINARY
PART II-Section 1
PUBLISHED BY AUTHORITY
NEW DELHI
MINISTRY OF LAW AND JUSTICE
(LEGISLATIVE DEPARTMENT)
NEW DELHI
Dated: May 5, 2017
The following Act of Parliament received the assent of the President on the
04th April, 2017, and is hereby published for general information:-
THE TAXATION LAWS (AMENDMENT) ACT, 2017
NO. 18 OF 2017
[4th May, 2017.]
An Act further to amend the Customs Act, 1962, the Customs Tariff Act, 1975,
the Central Excise Act, 1944, the Central Sales Tax Act, 1956, the Finance
Act, 2001 and the Finance Act, 2005 and to repeal certain enactments.
BE it enacted by Parliament in the Sixty-eighth Year of the Republic of India as follows:-
Short title and
commencement.
1. (1) This Act may be called the Taxation Laws (Amendment) Act, 2017.
(2) It shall come into force on such date as the Central Government may, by notification
in the Official Gazette, appoint:
Provided that different dates may be appointed for different provisions of this Act and
any reference in any such provision to the commencement of this Act shall be construed as
a reference to the commencement of that provision.
CHAPTER I
CUSTOMS
Amendment
of section 2.
2. In the Customs Act, 1962 (hereinafter referred to as the Customs Act), in section 2,
in clause (11), after the words "the area of a Customs station", the words "or a warehouse" shall be inserted. (52 of 1962.)
Insertion of new
sections 108A
and 108B.
Obligation to
furnish
information.
3. In the Customs Act, after section 108, the following sections shall be inserted,
namely:-
"108A. (1) Any person, being-
(a) a local authority or other public body or association; or
(b) any authority of the State Government responsible for the collection of
value added tax or sales tax or any other tax relating to the goods or services; or
(c) an income-tax authority appointed under the provisions of the Incometax
Act, 1961; (43 of 1961.)
(d) a Banking company within the meaning of clause (a) of section 45A of
the Reserve Bank of India Act, 1934; or (2 of 1934.)
(e) a co-operative bank within the meaning of clause (dd ) of section 2 of
the Deposit Insurance and Credit Guarantee Corporation Act,1961; or (47 of 1961.)
(f) a financial institution within the meaning of clause (c), or a non-banking
financial company within the meaning of clause (f), of section 45-I of the Reserve
Bank of India Act,1934; or (2 of 1934.)
(g) a State Electricity Board; or an electricity distribution or transmission
licensee under the Electricity Act, 2003, or any other entity entrusted, as the case
may be, with such functions by the Central Government or the State
Government; or (36 of 2003.)
(h) the Registrar or Sub-Registrar appointed under section 6 of the
Registration Act, 1908; or (16 of 1908.)
(i) a Registrar within the meaning of the Companies Act, 2013; or (18 of 2013.)
(j) the registering authority empowered to register motor vehicles under
Chapter IV of the Motor Vehicles Act, 1988; or (59 of 1988.)
(k) the Collector referred to in clause (c) of section 3 of the Right to Fair
Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013; or (30 of 2013.)
(l) the recognised stock exchange referred to in clause (f) of section 2 of
the Securities Contracts (Regulation) Act, 1956; or (42 of 1956.)
(m) a depository referred to in clause (e) of sub-section (1) of section 2 of
the Depositories Act, 1996; or (22 of 1996.)
(n) the Post Master General within the meaning of clause ( j) of section 2 of
the Indian Post Office Act, 1898; or (6 of 1898.)
(o) the Director General of Foreign Trade within the meaning of clause (d)
of section 2 of the Foreign Trade (Development and Regulation) Act,1992; or (22 of 1992.)
(p) the General Manager of a Zonal Railway within the meaning of
clause (18) of section 2 of the Railways Act,1989; or (24 of 1989.)
(q) an officer of the Reserve Bank of India constituted under section 3 of
the Reserve Bank of India Act, 1934, (2 of 1934.)
who is responsible for maintaining record of registration or statement of accounts or
holding any other information under any of the Acts specified above or under any
other law for the time being in force, which is considered relevant for the purposes of
this Act, shall furnish such information to the proper officer in such manner as may be
prescribed by rules made under this Act.
(2) Where the proper officer considers that the information furnished under
sub-section (1) is defective, he may intimate the defect to the person who has furnished such information and give him an opportunity of rectifying the defect within a period
of seven days from the date of such intimation or within such further period which, on
an application made in this behalf, the proper officer may allow and if the defect is not
rectified within the said period of seven days or, further period, as the case may be, so
allowed, then, notwithstanding anything contained in any other provision of this Act,
such information shall be deemed as not furnished and the provisions of this Act shall
apply.
(3) Where a person who is required to furnish information has not furnished the
same within the time specified in sub-section (1) or sub-section (2), the proper officer
may serve upon him a notice requiring him to furnish such information within a period
not exceeding thirty days from the date of service of the notice and such person shall
furnish such information.
Penalty for
failure to
furnish
information
return.
108B. Where the person who is required to furnish information under
section 108A fails to do so within the period specified in the notice issued under
sub-section (3) thereof, the proper officer may direct such person to pay, by way of
penalty, a sum of one hundred rupees for each day of the period during which the
failure to furnish such information continues.".
CHAPTER II
CUSTOMS TARIFF
Amendment
of section 3.
4. In the Customs Tariff Act, 1975, in section 3,- (51 of 1975.)
(a) in sub-section (2),-
(i) in clause (ii), for item (a), the following item shall be substituted,
namely:-
"(a) the duty referred to in sub-sections (1), (3), (5), (7) and (9);";
(ii) in the proviso, in sub-clause (b), item (ii) shall be omitted;
(b) in sub-section (6), in clause (ii), for item (a), the following item shall be
substituted, namely:-
"(a) the duty referred to in sub-sections (5), (7) and (9);";
(c) for sub-sections (7) and (8), the following sub-sections shall be substituted,
namely:-
"(7) Any article which is imported into India shall, in addition, be liable to
integrated tax at such rate, not exceeding forty per cent. as is leviable under
section 5 of the Integrated Goods and Services Tax Act, 2017 on a like article on
its supply in India, on the value of the imported article as determined under
sub-section (8).
(8) For the purposes of calculating the integrated tax under
sub-section (7) on any imported article where such tax is leviable at any percentage
of its value, the value of the imported article shall, notwithstanding anything
contained in section 14 of the Customs Act, 1962, be the aggregate of- (52 of 1962.)
(a) the value of the imported article determined under
sub-section (1) of section 14 of the Customs Act, 1962 or the tariff value
of such article fixed under sub-section (2) of that section, as the case may
be; and (52 of 1962.)
(b) any duty of customs chargeable on that article under section 12
of the Customs Act, 1962, and any sum chargeable on that article under
any law for the time being in force as an addition to, and in the same
manner as, a duty of customs, but does not include the tax referred to in
sub-section (7) or the cess referred to in sub-section (9). (52 of 1962.)
(9) Any article which is imported into India shall, in addition, be liable to
the goods and services tax compensation cess at such rate, as is leviable under
section 8 of the Goods and Services Tax (Compensation to States) Cess Act,
2017 on a like article on its supply in India, on the value of the imported article as
determined under sub-section (10).
(10) For the purposes of calculating the goods and services tax
compensation cess under sub-section (9) on any imported article where such cess
is leviable at any percentage of its value, the value of the imported article shall,
notwithstanding anything contained in section 14 of the Customs Act, 1962, be
the aggregate of- (52 of 1962.)
(a) the value of the imported article determined under
sub-section (1) of section 14 of the Customs Act, 1962 or the tariff value of
such article fixed under sub-section (2) of that section, as the case may
be; and
(b) any duty of customs chargeable on that article under section 12
of the Customs Act, 1962, and any sum chargeable on that article under
any law for the time being in force as an addition to, and in the same
manner as, a duty of customs, but does not include the tax referred to in
sub-section (7) or the cess referred to in sub-section (9).
(11) The duty or tax or cess, as the case may be, chargeable under this
section shall be in addition to any other duty or tax or cess, as the case may be,
imposed under this Act or under any other law for the time being in force.
(12) The provisions of the Customs Act, 1962 and the rules and regulations
made thereunder, including those relating to drawbacks, refunds and exemption
from duties shall, so far as may be, apply to the duty or tax or cess, as the case
may be, chargeable under this section as they apply in relation to the duties
leviable under that Act.". (52 of 1962.)
CHAPTER III
CENTRAL EXCISE
Amendment of section 2.
5. In the Central Excise Act, 1944 (hereinafter referred to as the Central Excise Act), in
section 2,- (1 of 1944.)
(a) in clause (d), for the words and figures "the First Schedule and the Second
Schedule to the Central Excise Tariff Act, 1985", the words "the Fourth Schedule" shall
be substituted; (5 of 1986.)
(b) in clause (e) the words "other than salt" shall be omitted;
(c) in clause (f), in sub-clause (ii), for the words and figures "the First Schedule
to the Central Excise Tariff Act, 1985", the words "the Fourth Schedule" shall be
substituted. (5 of 1986.)
Substitution of
new section
for section 3.
6. In the Central Excise Act, for section 3, the following section shall be substituted,
namely:-
Duty specified
in the Fourth
Schedule to be
levied.
"3. (1) There shall be levied and collected in such manner as may be prescribed
a duty of excise to be called the Central Value Added Tax (CENVAT) on all excisable
goods (excluding goods produced or manufactured in special economic zones) which
are produced or manufactured in India as, and at the rates, set forth in the Fourth
Schedule:
Provided that the duty of excise which shall be levied and collected on any
excisable goods which are produced or manufactured by a hundred per cent. exportoriented
undertaking and brought to any other place in India, shall be an amount equal
to the aggregate of the duties of customs which would be leviable under the Customs Act, 1962 or any other law for the time being in force, on like goods produced or
manufactured outside India if imported into India, and where the said duties of customs
are chargeable by reference to their value, the value of such excisable goods shall,
notwithstanding anything contained in any other provision of this Act, be determined
in accordance with the provisions of the Customs Act, 1962 and the Customs Tariff
Act, 1975. (52 of 1962.) (51 of 1975.)
Explanation 1.-Where in respect of any such like goods, any duty of customs
leviable for the time being in force is leviable at different rates, then, such duty shall,
for the purposes of this proviso, be deemed to be leviable at the highest of those rates.
Explanation 2.-For the purposes of this sub-section,-
(i) "hundred per cent. export-oriented undertaking" means an undertaking
which has been approved as a hundred per cent. export-oriented undertaking by
the Board appointed in this behalf by the Central Government in exercise of the
powers conferred by section 14 of the Industries (Development and Regulation)
Act, 1951, and the rules made under that Act; (65 of 1951.)
(ii) "Special Economic Zone" shall have the meaning assigned to it in
clause (za) of section 2 of the Special Economic Zones Act, 2005. (28 of 2005.)
(2) The provisions of sub-section (1) shall apply in respect of all excisable
goods which are produced or manufactured in India by or on behalf of the Government,
as they apply in respect of goods which are not produced or manufactured by the
Government.
(3) The Central Government may, by notification in the Official Gazette, fix, for
the purposes of levying the said duty, tariff values of any articles enumerated, either
specifically or under general headings, in the Fourth Schedule as chargeable with duty
ad valorem and may alter any tariff values for the time being in force.
(4) The Central Government may fix different tariff values-
(a) for different classes or descriptions of the same excisable goods; or
(b) for excisable goods of the same class or description-
(i) produced or manufactured by different classes of producers or
manufacturers; or
(ii) sold to different classes of buyers:
Provided that in fixing different tariff values in respect of excisable
goods falling under sub-clause (i) or sub-clause (ii), regard shall be had to
the sale prices charged by the different classes of producers or
manufacturers or, as the case may be, the normal practice of the wholesale
trade in such goods.".
Amendment
of section
3A.
7. In the Central Excise Act, in section 3A, in Explanation 1, for the words and figures, "First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985", the words
"Fourth Schedule" shall be substituted. (5 of 1986.)
Insertion of
new sections
3B and 3C.
Emergency
power of
Central
Government
to increase
duty of
excise.
8. In the Central Excise Act, after section 3A, the following sections shall be inserted,
namely:-
"3B. (1) Where, in respect of any goods, the Central Government is satisfied that
the duty leviable thereon under section 3 should be increased and that circumstances
exist which render it necessary to take immediate action, the Central Government may,
by notification in the Official Gazette, amend the Fourth Schedule to substitute the rate
of duty specified therein in respect of such goods in the following manner, namely:-
(a) in a case where the rate of duty as specified in the Fourth Schedule as
in force immediately before the issue of such notification is nil, a rate of duty not
exceeding fifty per cent. ad valorem expressed in any form or method;
(b) in any other case, a rate of duty which shall not be more than twice the
rate of duty specified in respect of such goods in the Fourth Schedule as in force
immediately before the issue of the said notification:
Provided that the Central Government shall not issue any notification
under this sub-section for substituting the rate of duty in respect of any goods
as specified by an earlier notification issued under this sub-section by that
Government before such earlier notification has been approved with or without
modifications under sub-section (2).
Explanation.-For the purposes of this sub-section, the term "form or
method", in relation to a rate of duty of excise, means the basis, including
valuation, weight, number, length, area, volume or any other measure, on which
the duty may be levied.
(2) Every notification under sub-section (1) shall be laid before each House of
Parliament, if it is in session, as soon as may be after the issue of the notification,
and, if it is not in session, within seven days of its re-assembly, and the Central
Government shall seek the approval of Parliament to the notification by a resolution
moved within a period of fifteen days beginning with the day on which the notification
is so laid before the House of the People and if Parliament makes any modification in
the notification or directs that the notification should cease to have effect, the
notification shall thereafter have effect only in such modified form or be of no effect,
as the case may be, but without prejudice to the validity of anything previously
done thereunder.
(3) Any notification issued under sub-section (1), including a notification
approved or modified under sub-section (2), may be rescinded by the Central
Government at any time by issuing notification in the Official Gazette.
Power of
Central
Government
to amend
Fourth
Schedule.
3C. (1) Where the Central Government is satisfied that it is necessary so to do in
the public interest, it may, by notification in the Official Gazette, amend the Fourth
Schedule:
Provided that such amendment shall not alter or affect in any manner the rates
specified in the Fourth Schedule at which the duties of excise shall be leviable on the
goods specified therein.".
Amendment
of section 38.
9. In the Central Excise Act, in section 38, after the word, figure and letter "section 3A", the word, figure and letter "section 3C" shall be inserted.
Insertion of a
new section
38B.
10. In the Central Excise Act, after section 38A, the following section shall be inserted,
namely:-
Savings of
references to
Chapter,
heading, subheading
and
tariff item in
Central Excise
Tariff Act,
1985.
"38B. Notwithstanding the repeal of the Central Excise Tariff Act, 1985 by
sub-section (1) of section 174 of the Central Goods and Services Tax Act, 2017, any
reference to the Chapter, heading, sub-heading or tariff item, as the case may be, in the
First Schedule to the said Act or in any rules or regulations made thereunder, or in any
notification, circular, order or instruction issued thereunder, shall mean a reference to
the Chapter, heading, sub-heading or tariff item, as the case may be, in the Fourth
Schedule.". (5 of 1986.)
Substitution of
new Schedule
for Third
Schedule.
11. In the Central Excise Act, for the Third Schedule, the Schedule specified in the
First Schedule shall be substituted.
Insertion of
Fourth
Schedule.
12. In the Central Excise Act, after the Third Schedule, the Schedule specified in the
Second Schedule shall be inserted.
CHAPTER IV
CENTRAL SALES TAX
Amendment
of section 2.
13. In the Central Sales Tax Act, 1956 (hereinafter referred to as the Central Sales Tax
Act), in section 2,- (74 of 1956.)
(a) clause (c) shall be omitted;
(b) for clause (d), the following clause shall be substituted, namely:-
‘(d) "goods" means-
(i) petroleum crude;
(ii) high speed diesel;
(iii) motor spirit (commonly known as petrol);
(iv) natural gas;
(v) aviation turbine fuel; and
(vi) alcoholic liquor for human consumption;’.
Omission of
section 14.
14. In the Central Sales Tax Act, section 14 shall be omitted.
Omission of
section 15.
15. In the Central Sales Tax Act, section 15 shall be omitted.
CHAPTER V
MISCELLANEOUS
Amendment
of Seventh
Schedule to
Act 14 of
2001.
16. In the Finance Act, 2001, in the Seventh Schedule,-
(a) except tariff items 2402 20 10, 2402 20 20, 2402 20 30, 2402 20 40, 2402 20 50,
2402 20 90, 2402 90 10, 2403 11 10, 2403 19 10, 2403 19 21, 2403 19 29, 2403 19 90, 2403 91
00, 2403 99 10, 2403 99 20, 2403 99 30, 2403 99 40, 2403 99 50, 2403 99 60, 2403 99 90 and
2709 00 00 and the entries relating thereto, all other heading, sub-heading, tariff items
and entries relating thereto shall be omitted;
(b) for tariff item 2709 00 00 and the entries relating thereto, the following
tariff item and entries shall be substituted, namely:-
(1) |
(2) |
(3) |
(4) |
‘‘2709 20 00 |
Petroleum Crude |
Kg. |
Rs. 50 per tonne’’. |
Amendment
of Seventh
Schedule to
Act 18 of
2005.
17. In the Finance Act, 2005, in the Seventh Schedule, tariff item 2106 90 20 and the
entries relating thereto shall be omitted.
Repeal and
savings of
certain
enactments.
18. (1) The enactments specified in the third column of the Third Schedule are hereby
repealed to the extent specified in the fourth column thereof.
(2) Notwithstanding the repeal under sub-section (1), such repeal shall not-
(a) affect any other law in which the repealed enactment has been applied,
incorporated or referred to;
(b) affect the validity, invalidity, effect or consequences of anything already
done or suffered or any right, title, obligation or liability already acquired, accrued or
incurred or any remedy or proceeding in respect thereof, or any release or discharge of
or from any debt, penalty, obligation, liability, claim or demand, or any indemnity
already granted, or the proof of any past act or thing under the repealed enactment;
(c) affect any principle or rule of law, or established jurisdiction, form or course
of pleading, practice or procedure, or existing usage, custom, privilege, restriction,
exemption, office or appointment, notwithstanding that the same respectively may
have been in any manner affirmed or recognised or derived by, in or from any enactment
hereby repealed;
(d) revive or restore any jurisdiction, office, custom, liability, right, title, privilege,
restriction, exemption, usage, practice, procedure or other matter or thing not now
existing or in force.
(2) The mention of particular matters in sub-section (1) shall not be held to prejudice or
affect the general application of section 6 of the General Clauses Act, 1897, with regard to the
effect of repeals. (10 of 1897.)
Collection
and payment
of arrears of
duties
19. Notwithstanding the repeal of the enactments specified in the Third Schedule, the
proceeds of duties levied under the said enactments immediately preceding the date appointed
under sub-section (2) of section 1,-
(i) if collected by the collecting agencies but not paid into the Reserve Bank of
India; or
(ii) if not collected by the collecting agencies,
shall be paid or as the case may be, collected and paid into the Reserve Bank of India for
being credited to the Consolidated Fund of India.
THE FIRST SCHEDULE
(See section 11)
"THE THIRD SCHEDULE
[See section 2 (f) (iii)]
NOTES
1. In this Schedule, "heading", "sub-heading" and "tariff item" mean respectively, a
heading, sub-heading and tariff item in the Fourth Schedule.
2. The rules for the interpretation, the Section, Chapter Notes and the General
Explanatory Notes of the Fourth Schedule shall apply to the interpretation of this Schedule.
Sl.No. |
Heading, Sub-heading or Tariff item |
Description of goods |
1. |
2402 20 10 to 2402 20 90 |
All Goods |
2. |
2403 99 10, 2403 99 20, 2403 99 30 |
Chewing tobacco and preparations
containing chewing tabacco |
3. |
2403 99 90 |
Pan masala containing tobacco". |
THE SECOND SCHEDULE
(See section 12)
"THE FOURTH SCHEDULE
[See section 2 (d) and 2 (f) (ii)]
General Rules for the interpretation of this Schedule
Classification of goods in this Schedule shall be governed by the following principles:
1. The titles of Sections, Chapters and Sub-Chapters are provided for ease of reference
only; for legal purposes, classification shall be determined according to the terms of the
headings and any relative Sections or Chapter Notes and, provided such headings or Notes
do not otherwise require, according to the following provisions.
2. Any reference in a heading-
(a) to an article shall be taken to include a reference to that article incomplete or
unfinished, provided that, as presented, the incomplete or unfinished article has the
essential character of the complete or finished article. It shall also be taken to include
a reference to that article complete or finished (or falling to be classified as complete or
finished by virtue of this rule), presented unassembled or disassembled;
(b) to a material or substance shall be taken to include a reference to mixtures or
combinations of that material or substance with other materials or substances. Any
reference to goods of a given material or substance shall be taken to include a reference
to goods consisting wholly or partly of such material or substance. The classification
of goods consisting of more than one material or substance shall be according to the
principles of rule 3.
3. When by application of clause (b) of rule 2 or for any other reason, goods are, prima
facie, classifiable under two or more headings, classification shall be effected as follows:-
(a) the heading which provides the most specific description shall be preferred
to headings providing a more general description. However, when two or more headings
each refer to part only of the materials or substances contained in mixed or composite
goods or to part only of the items in a set put up for retail sale, those headings are to
be regarded as equally specific in relation to those goods, even if one of them gives a
more complete or precise description of the goods;
(b) mixtures, composite goods consisting of different materials or made up of
different components, and goods put up in sets for retail sale, which cannot be classified
by reference to clause (a), shall be classified as if they consisted of the material or
component which gives them their essential character, insofar as this criterion is
applicable;
(c) when goods cannot be classified by reference to clause (a) or clause (b), they
shall be classified under the heading which occurs last in numerical order among those
which equally merit consideration.
4. Goods which cannot be classified in accordance with the above rules shall be
classified under the heading appropriate to the goods to which they are most akin.
5. For legal purposes, the classification of goods in the sub-headings of a heading
shall be determined according to the terms of those sub-headings and any related sub-heading
Notes and, mutatis mutandis, to the above rules, on the understanding that only sub-headings
at the same level are comparable. For the purposes of this rule, the relative Chapter Notes
also apply, unless the context otherwise requires.
General Explanatory Notes
1. Where in column (2) of this Schedule, the description of an article or group of
articles under a heading is preceded by "-", the said article or group of articles shall be taken
to be a sub-classification of the article or group of articles covered by the said heading.
Where, however, the description of an article or group of articles is preceded by "--", the said
article or group of articles shall be taken to be a sub-classification of the immediately preceding
description of the article or group of articles which has "-". Where the description of an
article or group of articles is preceded by "---" or "----", the said article or group of articles
shall be taken to be a sub-classification of the immediately preceding description of the
article or group of articles which has "-" or "--".
2. The abbreviation "%" in column (4) of this Schedule, in relation to the rate of duty,
indicates that the duty on the goods to which the entry relates shall be charged on the basis
of the value of the goods fixed, defined or deemed to be, as the case may be, under or in
sub-section (2), read with sub-section (3) of section 3 or section 4 or section 4A of the
Central Excise Act, 1944, the duty being equal to such percentage of the value as is indicated
in that column. (1 of 1944.)
Additional Notes
In this Schedule,-
(1) The expression,-
(a) "heading", in respect of goods, means a description in list of tariff
provisions accompanied by a four-digit number and includes all sub-headings
of tariff items the first four-digits of which correspond to that number;
(b) "sub-heading", in respect of goods, means a description in the list of
tariff provisions accompanied by a six-digit number and includes all tariff items
the first six-digits of which correspond to that number;
(c) "tariff item" means a description of goods in the list of tariff provisions
accompanying either eight-digit number and the rate of the duty of excise, or
eight-digit number with blank in the column of the rate of duty;
(2) The list of tariff provisions is divided into Sections, Chapters and
Sub-Chapters;
(3) In column (3), the standard unit of quantity is specified for each tariff item to
facilitate the collection, comparison and analysis of trade statistics;
(4) "….." against any goods denotes that Central Excise duty under this Schedule
is not leviable on such goods.
List of Abbreviations used.
Abbreviations |
For |
1. kg. |
Kilogram |
2. Tu |
Thousand in number |
SECTION IV
TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES
NOTE
In this Section, the expression "unit container" means a container, whether large or
small (for example, tin, can, box, jar, bottle, bag or carton, drum, barrel or canister) designed to
hold a predetermined quantity or number.
Chapter 24
TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES
NOTES
1. In this Chapter, "brand name" means a brand name, whether registered or not, that is
to say, a name or a mark, such as a symbol, monogram, label, signature invented words or any
writing which is used in relation to a product, for the purpose of indicating, or so as to
indicate, a connection in the course of trade between the product and some person using
such name or mark with or without any indication of the identity of that person.
2. In relation to products of heading 2401or 2402 or 2403, labelling or relabelling of
containers or repacking from bulk packs to retail packs or the adoption of any other treatment
to render the product marketable to the consumer, shall amount to ‘‘manufacture’’.
3. In this Chapter, "Pan masala containing tobacco", commonly known as ‘‘gutkha’’ or
by any other name, included in tariff item 2403 99 90, means any preparation containing betelnuts
and tobacco and any one or more of the following ingredients, namely:-
(i) lime; and
(ii) kattha(catechu),
whether or not containing any other ingredients, such ascardamom, copra and menthol.
SUB-HEADING NOTE
For the purposes of sub-heading 2403 11, the expression "water pipe tobacco" means
tobacco intended for smoking in a water pipe and which consists of a mixture of tobacco and
glycerol, whether or not containing aromatic oils and extracts, molasses or sugar, and whether
or not flavoured with fruit. However, tobacco-free products intended for smoking in a water
pipe are excluded from this sub-heading.
SUPPLEMENTRY NOTES
For the purposes of this Chapter:
(1) "tobacco" means any form of tobacco, whether cured or uncured and whether
manufactured or not, and includes the leaf, stalks and stems of the tobacco plant, but does
not include any part of a tobacco plant while still attached to the earth.
(2) "cut-tobacco" means the prepared or processed cut-to-size tobacco which is
generally blended or moisturised to a desired extent for use in the manufacture of machinerolled
cigarettes.
(3) "smoking mixtures for pipes and cigarettes" of sub-heading 2403 10 does not cover
"Gudaku".
Tariff item |
Description of goods |
Unit |
Rate of Duty |
(1) |
(2) |
(3) |
(4) |
2401 |
Unmanufactured Tobacco; Tobacco Refuse |
|
|
2401 10 |
Tobacco, not stemmed or stripped : |
|
|
2401 10 10 |
Flue cured virginia tobacco |
kg. |
64% |
2401 10 20 |
Sun cured country (natu) tobacco |
kg. |
64% |
2401 10 30 |
Sun cured virginia tobacco |
kg. |
64% |
2401 10 40 |
Burley tobacco |
kg. |
64% |
2401 10 50 |
Tobacco for manufacture of biris, not stemmed |
kg. |
64% |
2401 10 60 |
Tobacco for manufacture of chewing tobacco |
kg. |
64% |
2401 10 70 |
Tobacco for manufacture of cigar and cheroot |
kg. |
64% |
2401 10 80 |
Tobacco for manufacture of hookah tobacco |
kg. |
64% |
2401 10 90 |
Other |
kg. |
64% |
2401 20 |
Tobacco, partly or wholly stemmed or stripped : |
|
|
2401 20 10 |
Flue cured virginia tobacco |
kg. |
64% |
2401 20 20 |
Sun cured country (natu) tobacco |
kg. |
64% |
2401 20 30 |
Sun cured virginia tobacco |
kg. |
64% |
2401 20 40 |
Burley tobacco |
kg. |
64% |
2401 20 50 |
Tobacco for manufacture of biris |
kg. |
64% |
2401 20 60 |
Tobacco for manufacture of chewing tobacco |
kg. |
64% |
2401 20 70 |
Tobacco for manufacture of cigar and cheroot |
kg. |
64% |
2401 20 80 |
Tobacco for manufacture of hookah tobacco |
kg. |
64% |
2401 20 90 |
Other |
kg. |
64% |
2401 30 00 |
Tobacco refuse |
kg. |
50% |
2402 |
Cigars, cheroots, cigarillos and cigarettes, of
tobacco or of tobacco substitutes |
|
|
2402 10 |
Cigars, cheroots and cigarillos, containing tobacco: |
|
|
2402 10 10 |
Cigar and cheroots |
Tu |
12.5% or
Rs. 4006 per
thousand,
whichever is
higher |
2402 10 20 |
Cigarillos |
Tu |
12.5% or
Rs. 4006 per
thousand,
whichever is
higher |
2402 20 |
Cigarettes, containing tobacco: |
|
|
2402 20 10 |
Other than filter cigarettes, of length not exceeding
65 millimetres |
Tu |
Rs. 1280 per
thousand |
2402 20 20 |
Other than filter cigarettes, of length exceeding
65 millimetres but not exceeding 70 millimetres |
Tu |
Rs. 2335 per
thousand |
2402 20 30 |
Filter cigarettes of length (including the length
of the filter, the length of filter being 11 millimetres
or its actual length, whichever is more) not
exceeding 65 millimetres |
Tu |
Rs. 1280 per
thousand |
2402 20 40 |
Filter cigarettes of length (including the length
of the filter, the length of filter being 11 millimetres or its actual length, whichever is more)
exceeding 65 millimetres but not exceeding
70 millimetres |
Tu |
Rs. 1740 per
thousand |
2402 20 50 |
Filter cigarettes of length (including the length
of the filter, the length of filter being 11 millimetres
or its actual length, whichever is more) exceeding
70 millimetres but not exceeding 75 millimetres |
Tu |
Rs. 2335 per
thousand |
2402 20 90 |
Other |
Tu |
Rs. 3375 per
thousand |
2402 90 |
Other: |
|
|
2402 90 10 |
Cigarettes of tobacco substitutes |
Tu |
Rs. 3375 per
thousand |
2402 90 20 |
Cigarillos of tobacco substitutes |
Tu |
12.5 % or Rs.
4006 per
thousand
whichever is
higher |
2402 90 90 |
Other |
Tu |
12.5% or Rs.
4006 per
thousand
whichever is
higher |
2403 |
Other manufactured tobacco and manufactured
tobacco substitutes;"Homogenised" or
"Reconstituted" tobacco; Tobacco extracts and
essences |
|
|
|
Smoking tobacco, whether or not containing
tobacco substitute in any proportion; |
|
|
2403 11 |
Water pipe tobacco specified in Sub-heading
Note to this Chapter: |
|
|
2403 11 10 |
Hukkah or gudaku tobacco |
kg. |
60% |
2403 11 90 |
Other |
kg. |
60% |
2403 19 |
Other |
|
|
2403 19 10 |
Smoking mixtures for pipes and cigarettes |
kg. |
360% |
|
Biris: |
|
|
2403 19 21 |
Other than paper rolled biris, manufactured without the aid of machine |
Tu |
Rs. 12 per thousand |
2403 19 29 |
Other |
Tu |
Rs. 80 per
thousand |
2403 19 90 |
Other |
kg. |
40% |
|
Other: |
|
|
2403 91 00 |
"Homogenised" or "reconstituted" tobacco |
kg. |
60% |
2403 99 |
Other: |
|
|
2403 99 10 |
Chewing tobacco |
kg. |
81% |
2403 99 20 |
Preparations containing chewing tobacco |
kg. |
60% |
2403 99 30 |
Jarda scented tobacco |
kg. |
81% |
2403 99 40 |
Snuff |
kg. |
60% |
2403 99 50 |
Preparations containing snuff |
kg. |
60% |
2403 99 60 |
Tobacco extracts and essence |
kg. |
60% |
2403 99 70 |
Cut-tobacco |
kg. |
Rs. 70 per kg. |
2403 99 90 |
Other |
kg. |
81% |
SECTION V
MINERAL PRODUCTS
CHAPTER 27
MINERAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR DISTILLATION;
BITUMINOUS SUBSTANCES; MINERAL WAXES
NOTES
1. References in heading 2710 to "petroleum oils and oils obtained from bituminous
minerals" include not only petroleum oils and oils obtained from bituminous minerals, but
also similar oils, as well as those consisting mainly of mixed unsaturated hydrocarbons,
obtained by any process, provided that the weight of the non-aromatic constituents exceeds
that of the aromatic constituents.
However, the references do not include liquid synthetic polyolefins of which less than
60% by volume distils at 300ºC, after conversion to 1,013 millibars when a reduced-pressure
distillation method is used.
2. In relation to lubricating oils and lubricating preparations of heading 2710, labelling
or relabelling of containers or repacking from bulk packs to retail packs or the adoption of
any other treatment to render the product marketable to the consumer, shall amount to
"manufacture".
3. In relation to natural gas falling under heading 2711, the process of compression of
natural gas (even if it does not involve liquefaction), for the purpose of marketing it as
Compressed Natural Gas (CNG), for use as a fuel or for any other purpose, shall amount to "manufacture".
SUB-HEADING NOTE
For the purposes of sub-heading 2710 12, "light oils and preparations" are those of
which 90% or more by volume (including losses) distil at 210ºC (ASTM D 86 method).
SUPPLEMENTARY NOTES
In this Chapter, the following expressions have the meanings hereby assigned to
them:-
(1) "motor spirit" means any hydrocarbon oil (excluding crude mineral oil) which
has its flash point below 25ºC and which either by itself or in admixture with any other
substance, is suitable for use as fuel in spark ignition engines. "Special boiling point
spirits (tariff items 2710 12 11, 2710 12 12 and 2710 12 13 )" means light oils, as defined
in sub-heading Note 4, not containing any anti-knock preparations, and with a difference
of not more than 60ºC between the temperatures at which 5% and 90% by volume
(including losses) distil;
(2) "natural gasoline liquid (NGL)" is a low-boiling liquid petroleum product
extracted from Natural Gas;
(3) "aviation turbine fuel (ATF)" means any hydrocarbon oil conforming to the
Indian Standards Specification of Bureau of Indian Standards IS : 1571:1992:2000;
(4) "high speed diesel (HSD)" means any hydrocarbon oil conforming to the
Indian Standards Specification of Bureau of Indian Standards IS: 1460:2000;
(5) for the purposes of these additional notes, the tests prescribed have the
meaning hereby assigned to them:-
(a) "Flash Point" shall be determined in accordance with the test prescribed
in this behalf in the rules made under the Petroleum Act, 1934; (30 of 1934.)
(b) "Smoke Point" shall be determined in the apparatus known as the
Smoke Point Lamp in the manner indicated in the Indian Standards Institution
Specification IS: 1448 (p. 31)-1967 for the time being in force;
(c) "Final Boiling Point" shall be determined in the manner indicated in the
Indian Standards Institution Specification IS: 1448 (p.18)-1967 for the time being
in force;
(d) "Carbon Residue" shall be determined in the apparatus known as
Ramsbottom Carbon Residue Apparatus in the manner indicated in the Indian
Standards Institution Specification IS: 1448 (p. 8)-1967 for the time being in force;
(e) "Colour Comparison Test" shall be done in the following manner,
namely:-
(i) first prepare a five per cent. weight by volume solution of
Potassium Iodine (analytical reagent quality) in distilled water;
(ii) to this, add Iodine (analytical reagent quality) in requisite amount
to prepare an exactly 0.04 normal Iodine solution;
(iii) thereafter, compare the colour of the mineral oil under test with
the Iodine solution so prepared.
Tariff item |
Description of goods |
Unit |
Rate of Duty |
(1) |
(2) |
(3) |
(4) |
2709 |
Petroleum oils and oils obtained from bituminous minerals, crude. |
Kg. |
….. |
2709 10 00 |
Petroleum oils and oils obtained from bituminous minerals |
Kg. |
….. |
2709 20 00 |
Petroleum crude |
|
Nil |
2710 |
Petroleum oils and oils obtained from bituminous
minerals, other than crude; preparations not
elsewhere specified or included, containing by
weight 70% or more of petroleum oils or of oils
obtained from bituminous minerals, these oils
being the basic constituents of the preparations;
waste oils |
|
|
|
Petroleum oils and oils obtained from bituminous
minerals (other than crude) and preparations not
elsewhere specified or included, containing by
weight 70% or more of petroleum oils or of oils
obtained from bituminous minerals, these oils
being the basic constituents of the preparations,
other than those containing biodiesel and other
than waste oil |
|
|
2710 12 |
Light oils and preparations: |
|
|
|
Motor spirit (Commonly known as petrol): |
|
|
2710 12 11 |
Special boiling point spirits (other than benzene, toluol) with nominal boiling point range 55-115 °C |
Kg. |
14%+Rs 15.00 per litre |
2710 12 12 |
Special boiling point spirits (other than benzene, toluene and toluol) with nominal boiling point range 63-70 °C |
Kg. |
14%+Rs. 15.00 per litre |
2710 12 13 |
Other Special boiling points spirits (other than benzene, benzol, toluene and toluol) |
Kg. |
14%+Rs. 15.00 per litre |
2710 12 19 |
Other |
Kg. |
14%+Rs.
15.00 per litre |
2710 12 20 |
Natural gasoline Liquid |
Kg. |
14%+Rs.
15.00 per litre |
2710 12 90 |
Other |
Kg. |
14%+Rs.
15.00 per litre |
2710 19 |
Other: |
|
|
2710 19 10 |
Superior Kerosene oil (SKO) |
Kg. |
….. |
2710 19 20 |
Aviation turbine Fuel (ATF) |
Kg. |
14% |
2710 19 30 |
High speed diesel (HSD) |
Kg. |
14%+Rs.
15.00 per litre |
2710 19 40 |
Light Diesel oil (LDO) |
Kg. |
….. |
2710 19 50 |
Fuel oil |
Kg. |
….. |
2710 19 60 |
Base oil |
Kg |
….. |
2710 19 70 |
Jute batching oil and textile oil |
Kg. |
….. |
2710 19 80 |
Lubricating oil |
Kg. |
….. |
2710 19 90 |
Other |
Kg. |
….. |
|
Waste oil: |
|
….. |
2710 20 00 |
Petroleum oils and oils obtained from bituminous minerals (other than crude) and preparations not
elsewhere specified or included, containing by
weight 70% or more of petroleum oils or of oil
obtained from bituminous minerals, these oils being
the basic constituents of the preparations,
containing biodiesel, other than waste oils |
Kg. |
….. |
2710 91 00 |
Containing Polychlorinated biphenyls (PCBs), polychlorinated terphenyls (PCTs) or
polybrominated biphenyls (PBBs) |
Kg. |
….. |
2710 99 00 |
Other |
Kg. |
….. |
2711 |
Petroleum gases and other gaseous hydrocarbons |
|
|
|
Liquefied: |
|
|
2711 11 00 |
Natural gas |
Kg. |
14% |
2711 12 00 |
Propane |
Kg. |
….. |
2711 13 00 |
Butane |
Kg. |
….. |
2711 14 00 |
Ethylene, propylene, butylene and butadiene |
Kg. |
….. |
2711 19 00 |
Other |
Kg. |
….. |
|
In gaseous state: |
|
|
2711 21 00 |
Natural gas |
Kg. |
14% |
2711 29 00 |
Other |
Kg. |
….. |
THE THIRD SCHEDULE
(See section 15)
Year |
No. |
Short title of enactments |
Extent of repeal |
(1) |
(2) |
(3) |
(4) |
1947 |
24 |
The Rubber Act, 1947 |
Clause (b) of sub-section (1)
of section 9 and section 12 |
1951 |
65 |
The Industries (Development and Regulation) Act, 1951 |
Section 9 |
1953 |
29 |
The Tea Act, 1953 |
Clause (c) of section 3,
sections 25 and 26 and clause
(a) of sub-section (1) of
section 27 |
1974 |
28 |
The Coal Mines (Conservation and Development) Act, 1974 |
Sections 6, 7 and 8 |
1976 |
56 |
The Beedi Workers Welfare Cess Act, 1976 |
The Whole |
1977 |
36 |
The Water (Prevention and Control of Pollution) Cess Act, 1977 |
The Whole |
1982 |
3 |
The Sugar Cess Act, 1982 |
The Whole |
1982 |
4 |
The Sugar Development Fund Act, 1982 |
Sub-section (2) of section 3 |
1983 |
28 |
The Jute Manufacturers Cess Act, 1983 |
The Whole |
2004 |
23 |
The Finance (No. 2) Act, 2004 |
Section 93 |
2007 |
22 |
The Finance Act, 2007 |
Section 138 |
2010 |
14 |
The Finance Act, 2010 |
Chapter VII |
2015 |
20 |
The Finance Act, 2015 |
Chapter VI |
2016 |
28 |
The Finance Act, 2016 |
Chapters VI and VII |
(Dr G Narayana Raju)
Secretary to the Govt. of India
|