04 June 2012
In the Union Budget 2012, general excise duty rate (CENVAT Rate) was enhanced from 10% to 12%.
Consequently, the merit rate of 5% was enhanced to 6% and 1% excise duty applicable on 130 items was enhanced to 2%
The First Schedule to the Central Excise Tariff Act, 1985 was accordingly amended till the Finance Bill, 2012 was enacted,
These above stated changes were notified by Notification 18/2012-CE dated 17th March, 2012.
The Finance Bill 2012 has now received the assent of the President on date 29.05.2012 and is now the law of the land.
The change of enhanced general Cenvat rate now being in place in The Central Excise Tariff Act, 1985, CBEC therefore has rescinded many Notifications including the Notification 18/2012 – C.E. Dated 17.03.2012
To summaries the above , it is clarified that there is no change in the rate of Central Excise Duties and Notification no 27/2012 is only clarifying the tariff rates as being final rates.
CAclubindia
