GST India Solution

914/01/2010-CX, Dated: 16/02/2010

Circular No. 914/04/2010-CX

F.No.262/01/2009-CX8

Government of India
Ministry of Finance
Department of Revenue
(Central Board of Excise & Customs)

New Delhi, dated the 16^th February, 2010.

To,

All Director Generals,

All Chief Commissioners of Central Excise (including LTU),

All Commissioners of Central Excise (including LTU).

Sir/ Madam,

Subject: Beedi cess payable under the provisions of Section 3 of Beedi Workmen Welfare Cess Act-reg.

References have been received from Trade & Industry as well as field formations, regarding leviability of beedi cess on labelled as well as unlabelled beedis. It has been stated that Notification No. S-23011/1/79-M.V. dated 19.12.1981[G.S.R. No.669(E)] as amended by [G.S.R. No. 281(E)] dated 30.03.82, issued by the Ministry of Labour, provides that when cess has been collected on unlabelled beedis, no further cess shall be collected when they are subsequently labelled. The trade has represented that despite the notification, some Commissionerates are insisting on payment of cess on labelled beedis. Differing stands are being taken by different adjudicating authorities in this regard.

2. The matter has been examined in consultation with the administrative ministry. The Ministry of Labour have confirmed that the aforesaid notification is still in operation. They have informed that the rate of cess on manufactured beedis has, however, been enhanced vide Notification No. S.O.363 (E) dated 17.03.2006. Other provisions of the Act and Rules made in this regard are still applicable.

3. On examination of the aforesaid notification dated 19.12.1981 as amended by notification dated 30.03.1982, the following position emerges with regard to the leviability of cess:-

(i) If the biris are otherwise exempted from payment of Central Excise duty, they are also exempted from payment of biri cess.

(ii) If cess has been collected on unlabelled beedis, no further cess is required to be collected, if they are subsequently labelled.

(iii) For cases covered under (i) above, if the exempted beedis are subsequently labelled, cess shall be payable on labelled beedis.

4. Trade & Industry as well as field formations may be suitably informed.

5. Receipt of this circular may kindly be acknowledged.

6. Hindi version will follow.

Yours faithfully,
(Amish Kumar Gupta)
OSD (CX-8)

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GST India Solution is an effort of firm of professionals who welcome implementation of GST. This is an interactiveplatformthat aspires to disseminate right knowledge to professionals, practitioners and public at large. This platform has beenfloatedbya firm of Chartered Accountants relentlessly working in field of direct and indirect taxes since early 1985.

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Goods & Service Tax

Our core competence is statutory compliance, advisory, corporate tax planning and appellate matters of direct and indirect taxesandcorporate training sessions on GST.

The senior partner of the firm has to his credit several professional publications viz., Delhi Sales Tax Right to Use Goods Act, Delhi VAT, Maharashtra VAT, West Bengal VAT, Haryana VAT published by Taxmann. Madhya Pradesh VAT and Chhattisgarh VAT were published by Suvidha Law House, Bhopal. He has also addressed seminars on indirect taxes organized by professional bodies like ICAI, IMA, NIFM etc. and has also contributed articles on subjects of pro. . . . .