CVD of Excise on Parts of IT Devices Including Computers and Laptops

Certifying Authority Shifted to CEO from Manufacturer for Mega Power Project Exemption at SI. No. 91B of 06-CE/01.03.2006

Excise duty charged as CVD on imports on parts of IT devices including flash drives slashed for all uses to 4%.

In the amendment of 7 May, the Department of Revenue has conceded its mistake and slashed the excise duty on seven parts of IT devices to 4% from the standard 10% for all uses. In the earlier dispensation, only external use with computers qualified for the concession. All other uses were charged 10% CVD. This fuelled smuggling, specially in the case of flash memories which are used in cameras and mobiles in a big way, apart from computers as flash memories or pen drives.

[Central Excise Notification No. 25 dated 7th May 2010]

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 makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 6/2006-Central Excise, dated the 1st March, 2006, published in the Gazette of India, Extraordinary vide number G.S.R. 96(E) dated 1st March, 2006, namely:-

In the said notification, -

(I)  in the Table,-

(i)   for S. No. 17 and the entries relating thereto, the following shall be substituted, namely:-

(1)

(2)

(3)

(4)

(5)

“17.

8471 70 or 8473 30 or 8523 51 00

The following goods, namely:-

(a) Microprocessor for computer, other than motherboards; 

(b) Floppy disc drive;

(c) Hard disc drive;

(d) CD-ROM drive;

(e) DVD Drive /DVD Writers; 

(f) Flash memory;

(g) Combo drive,-

(i) meant for fitment inside the CPU housing/laptop body only;

(ii) meant for use other than at (i) above

 

 

 

 

 

 

 

 

Nil

4%

 

 

 

 

 

 

 

 

-

-“ ;

(II) in the Annexure,-

(i)   for condition No. 28 and the entries relating thereto, the following shall be substituted, namely:-

Condition No.

Conditions

“28.

If,-

(a) such goods are exempted from the duties of customs leviable under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and the additional duty leviable under section 3 of the said Customs Tariff Act when imported into India;

(b) an officer not below the rank of a Joint Secretary to the Government of India, in the Ministry of Power certifies that the goods are required for a project of the nature specified in column (3) against S. No. 91B of the table;

(c) the Chief executive officer of the project furnishes an undertaking to the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction, to the effect that-

(i) the said goods will be used only in the said project and not for any other use; and

(ii) in the event of failure to observe sub-clause (i) above, the manufacturer will pay  the duty which would have been leviable at the time of clearance of goods, but for this exemption.”;

[F. No. 354/59/2010- TRU]