Beedi cess payable under provisions of Section 3 of Beedi Workmen Welfare Cess Act - CBEC Clarifies
BOARD has been informed that some Commissionerates are insisting on payment of cess on labelled beedis. Differing stands are being taken by different adjudicating authorities in this regard.
Notification No. S-23011/1/79-M.V. dated 19.12.1981[G.S.R. No.669(E)] as amended by [G.S.R. No. 281(E)] dated 30.03.82, issued by the Ministry of Labour, provides that when cess has been collected on unlabelled beedis, no further cess shall be collected when they are subsequently labelled.
On analysing the above notifications, which are still valid and live, the Board has concluded that:
(i) If the biris are otherwise exempted from payment of Central Excise duty, they are also exempted from payment of biri cess.
(ii) If cess has been collected on unlabelled beedis, no further cess is required to be collected, if they are subsequently labelled.
(iii) For cases covered under (i) above, if the exempted beedis are subsequently labelled, cess shall be payable on labelled beedis.
Board wants the Trade & Industry as well as field formations to be suitably informed.
CBEC Circular No. 914/04/2010-CX., Dated: February 16, 2010