Circular No. 93/4/95-CX dated 18/1/95

Subject: Central Excise - Levy of additional excise duty under Finance Act, 1985 on T.V. Sets exported under Rule 13 of the Central Excise Rules - Withdrawal of instructions regarding...

Attention is invited to Board"s Circular No. II/91-CX.6 dt. 3.7.91 relating -to levy of additional excise duty under Finance Act, 1985 on TV sets. It was clarified in this Circular that Rule 13 does not permit export of goods without payment of duty leviable under the Finance Act, 1985 and in the absence of a specific Notification exemption payment of AED on goods under export, the provisions of Rule 13 are not applicable and AED would accordingly be leviable on goods exported.

2. Consumer Notification & TV Manufacturers Association (CETMA) have represented that AED on TV sets was levied in lieu of the licence fee and the Government had no intention to charge AED on TVs exported out of India. They have requested that the demands raised for AED on TV sets exported out if India should be withdrawn.

3. The matter has been examined by the Board. Para 145 of the Budget speech of 1985 Budget refers to imposition of AED on TV sets. The relevant portion reads as follows:

"The second proposal regarding simplification concerns the licence fee on television sets, VCRs and radios. While the requirement of taking out a licence, in the case of radios" television. sets and VCRs is being dispensed with, a new one-time levy is being introduced on television sets alone at a uniform rate of Rs. 1(X) per set in lieu of the present licence fee of Rs. 50 payable every year till the T.V. set lasts. Henceforth, people will not have to go to the post offices for taking out or renewing licences. This levy would be an additional duty of excise, so far as T.V. sets manufactured in India are concerned. The additional duty of, excise collected from this will accrue to the Centre only and will .not be shareable with the States.""

4. Horn the above, it is clear that this AED was in lieu of the licence fee which was collectable on domestic use of TV sets and not on TVs exported.

5. In view of the above, it is clarified that demands of AED on TV sets when exported out of India are not sustainable and pending assessments may be finalised accordingly.

6. Board"s earlier Circular No. 11/91-CX.6 dt. 3.7.91 and 10.10.94-Cx.6 dated 1.2.1994 accordingly stands withdrawn.

Sd/-
(M. Ponnuswamy)
Deputy Secretary to the Govt. of India

F.No. 167/25/94-Cx.4

Presented by eximkey.com