In keeping with the Budget announcement, the Finance Ministry on Monday released a list of existing indirect tax exemptions that are sought to be withdrawn in due course. The views of trade and industry and other stakeholders have been sought by June 10 on this proposal.
In his Budget speech of 2006-07, the Finance Minister, Mr P. Chidambaram, had said that he proposed to remove many exemptions that were granted through notifications.
He had also said that exemptions that are end-use based or had outlived their utility or need certification or give rise to disputes would be rescinded, with only a few exceptions.
The Finance Ministry has now identified a number of exemption notifications that can be removed.
LIST OF CUSTOMS DUTY EXEMPTIONS PROPOSED TO BE WITHDRAWN
S.No
Chapter/Heading/Tariff item no.
Description of goods
Notification No. and S.No
21/2002
1
28 or 29
Chemicals, for use in the manufacture of Centchroman
79
2
29
Codeine Phosphate or Narcotine, imported by Government Opium and Alkaloid Factories
100
3
29
Maltol, for use in the manufacture of Deferiprone
101
4
37
Film of a predominantly educational character, if so certified by AIR, Doordarshan or CBFC
125
5
37
Microfilms, of printed books (including covers for printed books), periodicals (including newspapers), music manuscripts, maps, charts, plans, drawings and designs
126
6
37
Exposed and developed film sheets for printing or reproduction of printed books (including covers for printed books), periodicals (including newspapers), music manuscripts, maps, charts, plans, drawings and designs
127
7
37
Exposed cinematographic films, meant for training of defence personnel on certification by Ministry of Defence
128
8
37.04 or 85.24
(1)Cinematographic films, exposed but not developed;
(2) Recorded magnetic films used for producing TV serials
132
9
38.22
Pharmaceutical Reference Standard imported from organization approved by WHO or International Organization of Standards
138
10
48
Grape guard, namely, paper of a type generally used for the packing of grapes.
153
11
6001.10 or 6001.92
Pile fabrics for the manufacture of toys, on actual user condition basis
172
12
84, 85 or 90
The goods specified in List 27 (i.e. Television cameras (professional grade), audio recording equipment, table top desk production video machine, 8-channel video mixer/switches, etc), on the strength of a certificate by PIB
245
13
84, 85 or 90
The following goods, imported, upto CIF value of 1 lakh rupees in two years, by an accredited press cameraman:-
246
(i) Photographic cameras;
(ii) cinematographic cameras;
(iii) digital cameras; and
(iv) lenses, filters, flash light apparatus and exposure meters required for use with the aforesaid cameras
14
84, 85 or 90
The following goods, imported, upto CIF value of 1 lakh rupees in two years by an accredited journalist:-
247
(i) Personal computers including lap top personal computers;
(ii) typewriters; and
(iii) fax machines
15
84 or 85
Spares, supplied with outboard motors for maintenance of such outboard motors, and imported by State Fisheries Corporation/Co-operative Federation or any person on the strength of a certificate for end use satisfaction
254
16
84
Fogging machines imported by a Municipal Committee, District Board or other authority legally entitled to, or entrusted by the Government with, the control or management of a Municipal Fund, for use in combating malaria and other mosquito borne diseases
259
17
85 or any other Chapter
The wireless apparatus, accessories and parts specified in List 35, imported by a licensed amateur radio operator
283
18
8524
Recorded magnetic tapes and floppy diskettes, imported by the University Grants Commission for use in computers
310
19
90.22
X-Ray Baggage Inspection Systems and parts thereof, if imported for anti-smuggling operations or for bomb detection or disposal purposes, on production of certificate to the Customs
382
20
95 or any other Chapter
(i) Synthetic tracks and artificial surfaces of heading 95.06; (ii) Equipment required for installation of (i) above, imported under the "Scheme for Laying Synthetic Tracks and Artificial Surfaces" of the Department of Youth Affairs, and subject to production of certificate
391
21
95
Requisites for games and sports, if certified by the apex body which controls or regulates the concerned sport or by the Sports Authority of the concerned State that requisites are required for use in a national or international championship or competition in India or abroad:
393
LIST OF EXCISE DUTY EXEMPTIONS PROPOSED TO BE WITHDRAWN
S.No
Chapter/Heading/Tariff item no.
Description of goods
Notification No. and S.No
04/2006
1
2710
Avgas
16
2
2710 19 20
Aviation turbine fuel
22
3
28 or 31
Gibberellic acid
53
4
30 or any other chapter
Nicotine polacrilex gum
61
5
3306
Tooth powder
69
6
3822
Chemical reagents manufactured by Hindustan Antibiotics Ltd for use in the manufacture of kits for testing narcotic drugs and psychotropic substances
75
7
3901 to 3914
Plastic materials reprocessed in India out of the scrap or the waste of goods falling within Chapters 39, 54, 55, 56, 59, 64, 84, 85, 86, 87, 90, 91, 92, 93, 94, 95 and 96
78
8
3903
Unexpanded polystyrene beads purchased by the Malaria Research Centre, subject to certification of end use
79
9
40
Surgical rubber gloves or medical examination rubber gloves
81
10
4011, 4012 or 4013
Tyres, flaps and tubes used in the manufacture of power tillers of heading No. 8432 of the First Schedule.
83
11
4810
Light weight coated paper weighing upto 70 g/m2, procured by actual users for printing of magazines
96
05/2006
12
63
Mosquito nets impregnated with insecticide
3
13
68 or 69
Stoneware, which are only salt glazed
7
14
70
Optical glass manufactured by the Central Glass and Ceramic Research Institute, Calcutta and intended for use by any Department of the Central Government
17
15
7015 10 10
Rough ophthalmic blanks, for manufacture of optical lenses
20
16
7105 or 7112
Dust and powder of natural or synthetic precious or semi-precious stones; wast and scrap of precious metals or metal clad with precious metals, arising in course of manufacture of goods falling in Chapter 71
22
17
7310 or 7326
Mathematical boxes, geometry boxes and colour boxes
31
18
7326 19 90
Forgings and forged products of iron or steel used in the manufacture of parts and accessories of cycles.
37
19
7326 20 10
Tyre bead wire rings of iron or steel intended for use in the manufacture of tyres of cycles and cycle rickshaw.
38
20
7323 or 7615 19 10
Pressure cookers
39
21
7402 or 7403
Unrefined copper and unwrought copper, intended for use in the manufacture of utensils or handicrafts
40
22
7409
All goods other than trimmed or untrimmed sheets or circles of copper, intended for use in the manufacture of utensils or handicrafts
41
23
7409
Trimmed or untrimmed sheets or circles of copper, intended for use in the manufacture of handicrafts or utensils, if no CENVAT credit is taken
42
24
7601
Unwrought aluminium, whether or not alloyed, intended for use in manufacture of utensils
44
25
7606
Aluminium plates and sheets (other than circles), intended for use in manufacture of utensils, if no CENVAT credit is taken
Goods required by a jute mill for making jute textiles, subject to satisfaction of AC/DC that the goods are cleared for the intended use
13
30
8446
Automatic shuttle or shuttle-less looms
14
31
8481 80 41 or 8481 90 10
Bicycle valves and their parts
18
32
8524
Recorded video cassettes intended for television broadcasting and supplied in formats such as U-matic, Betacam or any similar format
23
33
9501, 9502 or 9503
Parts and accessories of wheeled toys, dolls, other toys.
73
34
95
Sports goods: Explanation- "Sports goods" for the purposes of this entry do not cover articles and equipment for general physical exercise.
74
35
9603
All goods e.g. brooms, brushes (other than tooth brushes), hand operated mechanical floor sweepers, not motorised, mops and feather dusters, prepared knots and tufts of broom or brush making, paint pads and rollers, squeegees.
75
36
9608
Following goods, namely, (i) Pens of value not exceeding Rs. 200 per piece; (ii) Ball point pens of value not exceeding Rs. 200 per piece; (iii) Refills (for ball point pens) of value not exceeding Rs. 200 per piece
76
37
9608
Following goods, namely, (i) Parts of pens; (ii) Parts (excluding refills) of ball point pens; (iii) Parts of refills of ball point pens
77
38
9608 or 9609
Parts of pencils including clutch pencils used in the manufacture of such pencils including clutch pencils, subject to end use condition
Tubular knitted gas mantle fabric for use in incandescent gas mantles
6
42
7323
Tableware of steel
11
43
7326 20 10
Tyre bead wire rings of iron or steel intended for use in the manufacture of tyres of cycles and cycle rickshaw.
12
44
7418
Tableware of copper
13
45
7615
Tableware of aluminium
14
46
8414 20 10
Bicycle pumps
19
47
8481 80 41
Bicycle valves
20
48
8712
Bicycles
24
49
8714
Parts and accessories of bicycles
25
50
9405
Kerosene pressure lantern
31
51
9501
Wheeled toys
32
52
9502
Dolls
33
53
9503
Other toys
34
54
Any chapter
Exemption to specified goods supplied to a Public Funded Research Institution, University, IIT, IISC, REC or a non-commercial research Institution other than hospital.
