Notification No. 21/2007-Cus. Rescinded - Why
Notification No. 21/2007-Cus. Dated 1.3.2007 had fixed the effective rates of duty of Customs of 427 items. This notification is now rescinded. Does it mean that the exemption is gone? If you look at the printed tariffs of any publications, you will find that the rates printed in notification No. 21/2007 are the same as the tariff rates. What is the mystery?
The issue is simple. In the Budget, the Finance Minister had announced reduction in peak rates of duty for several commodities. As is well known, under the Provisional Collection of Taxes Act, the Customs and Excise duties proposed in the Finance Bill have immediate effect. But this immediate effect is only for imposition or increase, not for decrease. So, if a Finance Bill proposes decrease in Customs or Excise duties, the decrease does not have immediate effect. But the Government any way has the power to exempt duties partly or wholly. So to give effect to the reduction immediately, Notification No. 21/2007-Cus., was issued on 1.3.2007. With the enactment of the Finance Bill, this notification is no more required. And so rightly rescinded.
Notification No. , Dated May 12, 2007