The Government notified the amendment in 9 Excise notifications to add reference of Agriculture Infrastructure & Development Cess, a new levy proposed by the Union Finance Minister in her budget speech for the year 2021-22.
The new cess is a special purpose tax levied over and above basic tax rates with an aim to raise funds to finance spending on developing agriculture infrastructure.
The Excise notifications which are amended by the Government are Notification 28/2002-Central Excise, dated the 13th May 2002, 11/2017-Central Excise, dated the 30th June 2017, 10/2018-Central Excise, dated the 2nd February 2018, 11/2018- Central Excise, dated the 2nd February 2018, 12/2018- Central Excise, dated the 2nd February 2018, 13/2018- Central Excise, dated the 2nd February 2018, 03/2021-Central Excise, dated the 1st February 2021, 05/2021-Central Excise, dated the 1st February 2021, and 06/2021-Central Excise, dated the 1st February 2021.
The amendment in all the notification is to substitute from “clause 116 of the Finance Bill, 2021 (15 of 2021), which, by virtue of the declaration made in the said Finance Bill under the Provisional Collection of Taxes Act, 1931 (16 of 1931), has the force of law”, to “section 125 of the Finance Act, 2021 (13 of 2021)”
The Section 125 of the Finance Act, 2021 relates to agriculture Infrastructure and Development Cess on excisable goods.
As per the Section, an additional duty of excise, to be called Agriculture Infrastructure and Development Cess, on the goods specified in the Seventh Schedule, being the goods manufactured or produced, at the rates specified in column (3) of the said Schedule, for the purposes of financing the agriculture infrastructure and other development expenditure.
As per the notifications, the Central Government may, after due appropriation made by Parliament by law on this behalf, utilize such sums of money of the Agriculture Infrastructure and Development Cess levied.
The cess leviable under sub-section (1) of Section 125, chargeable on the scheduled goods, shall be in addition to any other duties of excise chargeable on such goods under the Central Excise Act, 1944 or any other law for the time being in force.
The notification further stated that the provisions of the Central Excise Act, 1944 and the rules and regulations made therein, including those relating to assessment, non-levy, short-levy, refund, exemptions, interest, appeals, offenses, and penalties shall, as far as may be, apply in relation to the levy and collection of the cess leviable under this section in respect of scheduled goods as they apply in relation to the levy and collection of duties of excise on such goods under the said Act or the rules or regulations, as the case may be.
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