And what about Naphtha?

By Vijay Kumar

Yet another Netizen wrote in:-

Vide notification 23/2006 -CE dt. 1/3/2006, the effective rate of excise duty on Naphtha was set at 16% adv. In the budget of 2008, although the FM has made a statement that rate of excise duty is reduced to 14%, we do not see any amendment to the above notification reducing the rate to 14% and therefore it appears that Naphtha continues to remain excisable at 16%. For your information although there is no specific heading for Naphtha in the Central Excise Tariff Act, Naphtha is classified under Chapter 2710 of the
Central Excise Tariff Act.

We would be obliged if your experts could confirm that Naphtha continues to remain excisable at 16%.

So is Naphtha taxable at 16% or 14%. Any views?