No Cess on Lac/Shellac

[CBEC Circular No. 32 dated 26 July 2011]

Subject: Leviability of Cess on export of Lac/shellac

Representations have been received from Trade and Industry stating that they are being required to pay Cess on Lac/Shellac at the time of export of such goods.

2. The matter has been examined. Exports of Lac/shellac were subject to Cess under ‘The Produce Cess Act, 1966’. However, vide Produce Cess Laws (Abolition) Act, 2006, the said Produce Cess Act, 1966 has been repealed w.e.f 25^thSeptember, 2006. Thus, a Cess under this Act is no longer required to be paid on exports of Lac/shellac.

3. Suitable instructions may accordingly be given to the field formations under your charge.

F. No. 341/26/2011-TRU