Central Excise

By Vijay Kumar

1. NOTIFICATION NO. , Dated: May 13, 2005

AED(GSI)

This notification exempts certain goods from Additional Duties of Excise (Goods of Special Importance). There is no real change. The First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957 which specifies the rates of additional duty has been replaced by a new schedule in the Finance Bill by clause 116 of the Finance Bill. This would come into effect only after the Budget is enacted. Now that the Finance Bill is Finance Act, certain exemptions are to be given to retain the old position. The whole exercise is to align with the new 8 digit tariff. To understand the issue better, take item No. 1 of this notification which is levy sugar which will now attract an AED(GSI) of Rs. 21/-. This was the same rate as per the old schedule to the Act. But the new schedule as given in the tenth schedule to the Finance Bill gives this rate as Rs. 37/ for all kinds of sugar except palmyra sugar. Now to retain the existing rate of Rs. 21/- an exemption notification is given.

Net effect – NIL. Don’t worry about the notification and let life go on as usual.

2. NOTIFICATION NO. , Dated: May 13, 2005