Regarding leviability of Cess on export of Lac/shellac

Circular No. 32 /2011-Customs

F. No. 341/26/2011-TRU

Government of India

Ministry of Finance

Department of Revenue

Tax Research Unit

***

New Delhi dated  26^th  July, 2011

To

All Chief Commissioners of Customs / Customs (Prev.),

All Chief Commissioners of Customs & Central Excise,

All Commissioners of Customs / Customs (Prev.),

All Commissioners of Customs & Central Excise,

All Director Generals under CBEC.

Subject: Leviability of Cess on export of Lac/shellac - regarding

Sir / Madam,

            Representations have been received from Trade and Industry stating that they are being required to pay Cess on Lac/Shellac at the time of export of such goods.

2.       The matter has been examined.  Exports of Lac/shellac were subject to Cess under ‘The Produce Cess Act, 1966’. However, vide Produce Cess Laws (Abolition) Act, 2006, the said Produce Cess Act, 1966 has been repealed w.e.f 25^thSeptember, 2006.  Thus, a Cess under this Act is no longer required to be paid on exports of Lac/shellac.

3.         Suitable instructions may accordingly be given to the field formations under your charge.

Yours faithfully,

Limatula Yaden

Director (TRU)