By TIOL News Service

NEW DELHI, FEB 28, 2015: THE Third Schedule to the Central Excise Act, 1944 is being amended so as to include therein all goods falling under Chapter sub-heading 2101 20, all goods falling under chapter sub-heading 2202 and to amend the entry related to Sl. No. 94. This amendment is being made by clause 103 of the Finance Bill, 2015 and comes into immediate effect owing to the declaration made under the Provisional Collection of Taxes Act, 1931.

For the tea connoisseurs, make it known that sub-heading 2101 20 covers the following description "Extracts, essences and concentrates, of tea or mate, and preparation with a basis of these extracts, essences or concentrates with a basis of tea or mate." And the goods covered are Instant tea, Quick brewing black tea and Tea aroma.

So also heading 2202 covers “Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured and other non-alcoholic beverages, not including fruit or vegetable juices of heading 2009”.

Out of these, Aerated waters [2202 10 10] and Waters, including mineral waters, bearing a brand name [2202 10 90] are already covered under the Third Schedule and being subjected to RSP valuation &get an abatement of 45% and 40% respectively.

Also, serial no. 94 earlier covered‘All goods except lamps for automobiles falling under heading 8539'. These goods too are valued on RSP and get an abatement of 35%.

Now, this entry is amended to also include goods of chapter 94 and the description gets changed to “All goods falling under heading 8539 (except lamps for automobiles), LED lights or fixtures including LED lamps falling under chapter 85 or heading 9405”.

Obviously all this ground work is for making these goods liable for assessment based on the Retail Sale Price (RSP) under section 4A of the CEA, 1944.

Accordingly, notification 49/2008-CE(NT) sees an amendment by notification 3/2015-CE(NT) dated 01.03.2015.

Whereas goods of heading 2101 20 get an abatement of 30%, all goods falling under heading 2202 (except those already subjected to RSP assessment as mentioned above) are granted an abatement of 35%. The expressly added LED lights/lamps will get abatement of 35%.

Time for some LED disputes…