Rate of Customs duty on wine increased to 150%- Can the Government increase the Tariff rate by a notification?
YES! As per Section 8A of the Customs Tariff Act,
Where in respect of any article included in the First Schedule, the Central Government is satisfied that the import duty leviable thereon under section 12 of the Customs Act, 1962 (52 of 1962) should be increased and that circumstances exist which render it necessary to take immediate action, it may, by notification in the Official Gazette, direct an amendment of that Schedule to be made so as to provide for an increase in the import duty leviable on such article to such extent as it thinks necessary:
There is a similar provision under the Central Excise Tariff Act, Section 3
Where, in respect of any goods, the Central Government is satisfied that the duty leviable thereon under section 3 of the Central Excise Act, 1944 (1 of 1944) should be increased and that circumstances exist which render it necessary to take immediate action, the Central Government may, by notification in the Official Gazette, direct an amendment of the First Schedule and the Second Schedule to be made so as to substitute for the rate of duty specified in the First Schedule and the Second Schedule in respect of such goods
The Government has exercised this power and increased the customs duty on
Wine of fresh grapes, including fortified wines; Vermouth and other wine of fresh grapes flavoured with plants or aromatic substances and Other fermented beverages ( for example, cider, perry, mead); mixtures of fermented beverages and non-alcoholic beverages, not elsewhere specified or included falling under headings 2204, 2205 and 2206
from 100% to 150% with effect from 3rd day of July, 2007.
Notification No. dated 3rd July 2007