Regarding recent notification issued by Ministry of Finance on Excise Duty on goods other than Petroleum & Tobacco Goods resulted confusion amount various stake holders.
In that regard, the revenue secretary Dr. Hasmukh Adhia said, “Department of Revenue has examined the validity and implications of notifications dated 10th and 16th September with reference to the existing taxes imposed by the Union and states. There is no legal infirmity in these notifications. Law dept has confirmed that there appears to be no legal requirement to issue any further clarification or notification in this regard”.
Some experts in this field have raised doubt about the legality of levying excise duty by the Centre on various commodities till implementation of the goods and services tax (GST) from April 1, 2017, after the government on September 16 notified certain provisions of the Act.
The notification declared that no excise duty shall be levied on goods other than petroleum and tobacco products from 16th September 2016. This was with an aim to give effect to all the sections of the GST(Constitutional Amendment) Act, 2016.
1/3 DoR examined the validity and implications of notfns dated 10th and 16th Sept wrt existing taxes imposed by the Union and states
— Dr Hasmukh Adhia (@adhia03) September 19, 2016
2/3 There is no legal infirmity in these notifications.
— Dr Hasmukh Adhia (@adhia03) September 19, 2016
3/3 Law dept has confirmed that there appears to be no legal requirement to issue any further clarification or notification in this regard.
— Dr Hasmukh Adhia (@adhia03) September 19, 2016
