Automobiles - Reduction in duty rates to continue - Sunset clause extended
FOR the last few days, many newspapers carried advertisements by car dealers luring the buyers with the caption - buy before the excise duty rates go up again. They were referring to the Notification No 4/2014-Central Excise, Dated: February 17, 2014, which reduced duty rates of automobiles. This Notification has a sunset clause - "Provided further that nothing contained in this notification shall apply to goods specified against serial number 345 to 369 of the said Table after the 30th day of June, 2014." - Now, the Government has decided to extend the reduced duty benefit till 31 st December 2014 and accordingly issued Notification No 6/2014 CE dated 25.06.2014 amending the Mega exemption Notification No 12/2012 CE dated 17.03.2012. Similarly the reduced rate of 10% for goods falling under chapters 84 and 85 of the Tariff has also been extended till 31st December 2014.
In a press release, the FM said "We expect the industry to show positive results in the coming months. We also expect that the benefit of these duty concessions will be passed on to the consumers at large”
Notification No. , Dated: June 25, 2014