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K.R. Srivats

New Delhi, Sept. 2 Following the mandatory ‘production capacity’ based excise levy on pan masala and gutkha from July 1, the Finance Ministry has now put in place a mechanism, for the first time, to provide excise duty relief on the pan masala and gutkha pouches exported from the country.

The excise duty rebate would be available to exporters for exports made on or after July 1 this year and to countries other than Nepal and Bhutan, where there are special trade arrangements.

The Central Board of Excise and Customs (CBEC) has now prescribed a formula for determining the monthly average rate of rebate per pan masala pouch and also the maximum amount of rebate per pouch, a CBEC spokesperson confirmed.

The Government had introduced the mandatory ‘production capacity’ based levy on pan masala to tackle the excise duty evasion in the sector. The change in the basis of levy seem to have bolstered revenues for the Government going by the revenue mop up of Rs 215 crore achieved in the month of July alone.

Prior to the mandatory scheme based on production capacity, an optional scheme was prevalent for payment of excise duty on the basis of compounded levy. Official sources said that there had been no cases of refund of any excise duty on pan masala exports under the previous optional scheme.

More Stories on : Excise and Customs | Exports & Imports | Tobacco

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