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
It seems that the manufacturers are at it again - that is splashing advertisements in newspapers (by dealers) and informing Indians that the prices of the cars are going to be raised by rupees 20 to 40 thousands from the 1 st of January 2015. This, they attribute to the fact that the excise duty concession granted to them would come to an end on 31 st December 2014.
DDT has been receiving mails and phone calls enquiring whether we have got any scent of any notification to be issued extending this concession.
Frankly speaking, DDT only reports and comments on notifications but does not get a whiff of the notification to be issued. We are yet to lay our hands on the Customs Non-Tariff Notification 99/2014 which presumably is lying somewhere.
Considering that the first notification granting the exemption came during the Interim Budget vide notification 4/2014-CE, dated 17.02.2014 and the one extending the concession from 30.06.2014 to 31.12.2014 was issued on 25.06.2014 (i.e 6 days before) by notification 6/2014-CE, if any further extension is contemplated by the Central Government, the same should be out…today!