Government amends the new Tariff

By Vijay Kumar

As per Section 3 of the CETA, 1985, the Government can, by notification increase the rates of duties in the Tariff. This is a very little known provision and very rarely used provision. Within 7 days of the coming into force of the new Tariff, the Government has used this provision and by notification imposed a duty of 16% on 5806 32 00. This is basically to correct a mistake in the new tariff.

As per Section 5 of the CETA, 1985 (as amended in 2005), the Government can amend the schedules to the Tariff by notification. The Government has used this seven days old power to change the chapter note regarding motor vehicles. But the notification invokes Section 3 and not Section 5.

See NOTIFICATION NO 14 /2005- Central Excise, dated March 7, 2005