1% Excise Duty on Mobile Phones

[Ref: Central Excise Notification No. 20 dated 24th March 2011]

The entry relating to mobile handsets (S.No. 100 of Notification No. 1/2011-CE dated 01.03.2011) has been modified. 1% conditional excise duty will now apply only to Radio Trunking Terminals while separate Notification No.20/2011-CE dated 24.03.2011 has been issued prescribing unconditional excise duty rate of 1% on mobile handsets including cellular phones. The imports of these goods as well as their clearances from SEZ into DTA also will attract additional duty of customs of 1% over and above the NCCD of 1%. This duty rate will also be available to clearances from EOUs into the DTA

In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts mobile handsets including cellular phones, falling under chapter 85 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), from so much of the duty of excise leviable thereon under the said First Schedule, as is in excess of the amount calculated at the rate of 1% ad valorem.

[F. No. B-1/3/2011- TRU]