The Finance Minister highlighted the role of indirect tax in the context of promotion of domestic manufacturing and Make in India. Thus, mark the amendments of Budget 2015 regarding Excise Duty:

• Excise duty on chassis for ambulance reduced from 24% to 12.5%.
• Wafers for use in the manufacture of integrated circuit (IC) modules for smart cards from 12% to 6%
• Inputs for use in the manufacture of LED drivers and MCPCB for LED lights, fixtures and LED lamps from 12% to 6%
• Excise levy on cigarettes and the compounded levy scheme applicable to pan masala, gutkha and other tobacco products also changed
• Excise duty on footwear with leather uppers and having retail price of more than `1000 per pair reduced to 6%
• Mobiles handsets, including cellular phones from 1% without CENVAT credit or 6% with CENVAT credit to 1% without CENVAT credit or 12.5% with CENVAT credit. NCCD of 1% on mobile handsets including cellular phones remains unchanged
• Tablet computers from 12% to 2% without CENVAT credit or 12.5% with CENVAT credit
• Pig iron SG grade and Ferro-silicon-magnesium for use in the manufacture of cast components of wind operated electricity generators to Nil, subject to certification by MNRE
• Solar water heater and system from 12% to Nil without CENVAT credit or 12.5% with CENVAT credit
• Excise duty on sacks and bags of polymers of ethylene other than for industrial use increased from 12% to 15%
• Conversion of existing excise duty on petrol and diesel to the extent of Rs. 4 per liter into Road Cess to fund investment
• Excise duty on rails for manufacture of railway or tram way track construction material exempted retrospectively from 17-03-2012 to 02-02-2014, if not CENVAT credit of duty paid on such rails is availed
• Excise duty exemption for captively consumed intermediate compound coming into existence during the manufacture of agarbathi

Inclusion in Third Schedule to the Central Excise Act, 1944:

• All goods falling under Chapter sub-heading 2101 20, including iced tea, are being notified under section 4A of the Central Excise Act for the purpose of assessment of Central Excise duty with reference to the Retail Sale Price with an abatement of 30%
• Goods, such as lemonade and other beverages, are being notified under section 4A of the Central Excise Act for the purpose of assessment of Central Excise duty with reference to the Retail Sale Price with an abatement of 35

Compliance:

• Online central excise and service tax registration to be done in two working days
• Time limit for taking CENVAT credit on inputs and input services increased from 6 months to 1 year
• Facility of direct dispatch of goods by registered, dealer from seller to customer’s premises is being provided. Similar facility is also being allowed in respect of job-workers. Registered importer can also send goods directly to customer from the port of importation.
• Penalty provisions in Customs, Central Excise & Service Tax are being rationalized to encourage compliance and early dispute resolution.
• Central Excise/Service Tax assessees are being allowed to issue digitally signed invoices and maintain other records electronically.
• Education cess and the Secondary and Higher education cess to be subsumed in Central Excise Duty

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