Customs
10. Notification No , Dated: May 13, 2005:
4% Additional duty
Notification No. 19/2005-Cus, 1-3-2005 imposing the 4% Additional duty is amended to remove references to the Finance Bill and Provisional Collection of Taxes Act 1931, consequent to the enactment of the Finance Bill.
11. Notification No , Dated: May 13, 2005:
Exemption to parts and accessories of Mobile handsets
Notification No. 39/2005 is amended to delete the references to Finance Bill and Provisional Collection of Taxes Act 1931, consequent to the enactment of the Finance Bill.
12. Notification No , Dated: May 13, 2005:
Notification Nos. 13/2005, 17/2005 & 20/2005-Cus, dated 1-3-2005 rescinded
Notification No. 13/2005 reduced the peak rates of Customs duty to 15% for most of the commodities. This notification is now rescinded. What happens? Are the reduced peak rates going to be increased? Nothing is going to happen as the peak rates were reduced in the Tariff too but as the reduction in the tariff would be applicable only from the date of enactment of the Finance Bill. A notification was issued to give effect to the reduction. Now that the Finance Bill is Act, the notification become redundant and is rightly rescinded.
Notification No. 17/2005 - exemption from additional duty on tea and tea waste. This exemption notification is rescinded as the additional duty itself, imposed under Section 128 of the Finance Act 2003, is withdrawn by Section 123 of the Finance Act 2005.
Net Effect -NIL.
Notification No. 20/2005 exempted education cess on the 4% additional duty imposed in the 2005 budget. This notification is now withdrawn. Does it mean that importers have to pay education cess on the newly imposed additional duty also? No! As per Section 94 of the Finance (No.2) Act 2004, for calculating the education cess, the safeguards duty, countervailing duty, Anti-dumping duty and the education cess on imported goods are not included. Now to this list of exclusions, the 4% additional duty imposed under the new Section 3(5) of the Customs Tariff Act is added by Section 72 of the Finance Act 2005. As the Finance Act is effective only from 13-5-2005, this facility was allowed by the Notification No. 20/2005-Cus, dated 1-3-2005. Now that the Finance Bill is Act, this notification is no more required and is rightly withdrawn.