Infrastructure Cess makes appearance in Export/Rebate notifications
CLAUSE 159 of the Finance Bill, 2016 provides that 'Infrastructure Cess' would be levied on the goods manufactured or produced in India, which are specified in Eleventh Schedule to the said Bill. Further, the said cess would be levied as duty of excise and the amount collected in the form of infrastructure cess would be used for financing infrastructure projects. The Finance Bill further provides that the said cess would be leviable in addition to any other duties of excise chargeable on specified goods.
Eleventh Schedule to the Finance Bill, 2016 provides that the Infrastructure Cess @ 4% would be levied on 'all goods falling under Chapter Heading 8703 (motor vehicles) of the First Schedule to the Central Excise Tariff Act, 1985. This Cess is in force from 1st March, 2016 (from 00:00 hours), since the same has been declared under the Provisional Collection of Taxes Act, 1931.
Notification No. -Infrastructure Cess, dated 01.03.2016 has been issued prescribing the rate of Infrastructure Cess & exemption available. So also , Notification No 13/2016-N.T., dated 01.03.2016 has amended the Cenvat Credit Rules, 2004 and while credit of such cess is not available,credit of any other duty cannot be utilized for payment of the said cess.
Reference to this Infrastructure Cess is now made in the following Export/Rebate notifications with reference to the definition of duty. -
Hope none of the manufacturers faced any issue in the matter of Infrastructure Cess till the advent of this notification yesterday.
Notification , May 5, 2016