Customs Tariff Amendment – by Notification!
The Customs Tariff is amended by a Non-Tariff Notification! Strange? Not really! There is a belief among the trade and the Revenue Department officers that the Customs Tariff Act is a Parliament Legislation and only Parliament can amend it. The fact is even the Government can amend it! As per Section 11A of the Customs Tariff Act, the Government has the power to amend the First Schedule to the Customs Tariff Act by Notification, but this should not change the duty rates – so the Government can tinker only with heading numbers and description, but not duty rates.
But does it mean that the Government cannot change the duty rates? As is well known, Government can always reduce the duties by giving exemptions, but can the government increase the duty by a Notification? It can – as per Section 8 and 8A of the Customs Tariff Act!
Now the Government has exercised the power under Section 11A and amended the First Schedule to the Customs Tariff Act. Several headings are changed.
Now in the Central Excise Tariff, most of the items are aligned with the Customs Tariff – Government seems to have not amended the Central Excise Tariff accordingly – or they might have and the notification is somewhere in the pipeline. If it is, we will bring it to you soon.
Notification NO. Dated: September 24, 2008