THE THIRD SCHEDULE
[ See section 72( ii )]
In the Second Schedule to the Customs Tariff Act, against heading No. 12, for the entry in column (3), the entry “Rs. 3000 per tonne ” shall be substituted.
By virtue of declaration made under the provisions of Provisional collection of taxes Act, 1931, the provisions of clause 72(ii) of the Finance Bill will come into effect immediately. Therefore the increase in the export duty on chrome ores and concentrates of all sorts to Rs 3000 per tonne will be with immediate effect, ie from 1.3.2008
Now in the amendments proposed in the Finance Bill, the third schedule has been substituted as
'In the Second Schedule to the Customs Tariff Act, -
( i ) against heading No. 12, for the entry in column (3), the entry "Rs. 3000 per tonne " shall be substituted;
(ii) after heading No. 26 and the entries relating thereto, the following shall be inserted, namely : -
Heading No. | Description of article | Rate of duty |
|---|---|---|
(1) | (2) | (3) |
"27. | Pig iron and spiegeleisen in pigs, blocks or other primary forms | 20% |
28. | Ferrous products obtained by direct reduction of iron ore and other spongy ferrous products, in lumps, pellets or similar forms; iron having minimum purity weight of 99.94%, in lumps, pellets or similar forms | 20% |
29. | Ferrous waste and scrap, remelting scrap ingots of iron of steel | 20% |
30 | Granules and powders, of pig iron, spiegeleisen , iron or steel | 20% |
31 | Iron and non-allow steel in ingots or other primary forms | 20% |
32 | Semi-finished products of iron or non-alloy steel | 20% |
33 | Flat rolled products of iron or non-alloy steel, hot rolled, not clad, plated or coated | 20% |
34 | Flat rolled products of iron or non-alloy steel, cold rolled (cold-reduced) not clad, plated or coated | 20% |
35 | Flat rolled products of iron or non-alloy steel, plated or coated with zinc | 20% |
36 | Bars and rods, hot-rolled, in irregularly wounds coils, of iron or non-alloy steel | 20% |
37 | Other bars and rods of iron or non-alloy steel, not further worked than forged, hot-rolled, hot-drawn or hot-extruded, but including those twisted after rolling | 20% |
38 | Other bars and rods of iron or non-alloy steel | 20% |
39 | Angles, shapes and sections of iron or non-alloy-steel | 20% |
40 | Wire of iron or non-alloy steel | 20% |
41 | Tubes and pipes, of iron or steel | 20% |
42 | Basmati rice | Rs. 12000 per tonne" |
So, the Second Schedule to the Customs Tariff Act has been proposed to be amended as above and clause 72(ii) of the Finance Bill which will come into effect immediately as per the Declaration made under the Provisional Collection of Taxes Act. Therefore unless there is an exemption notification from the export duty, all the goods above will attract export duty at the rates mentioned in the above table with effect from 28.4.2008.
Similarly the First Schedule to the Central Excise Tariff Act has been now amended as mentioned in the seventh schedule of the Finance Bill as under:
(2) in Chapter 25,
( i ) in tariff item 2523 10 00, for the entry in column (4), the entry "Rs. 450 pertonne " shall be substitute;
(ii) in tariff items 2523 29 10, 2523 29 20, 2523 29 30, 2523 29 40 and 2523 29 90, for the entry in column (4), the entry " Rs. 900 per tonne " shall be substituted against each of them'.
The seventh schedule refers to clause 84 of the Finance Bill which also has immediate effect as per the declaration under the PCT Act. Therefore the duty of Rs 900 PMT on cement will be with immediate effect ( from 28 th April 2008) in absence of any notification to the effect of 12% ad valorem as stated by the FM.
We would be grateful if the Board clarifies this at the earliest, so that SCNs don't fly around and exports and clearances are held up.