Circular No. 32/2011-Custom

New Delhi dated 26^th July, 2011

F. No. 341/26/2011-TRU
Government of India
Ministry of Finance
Department of Revenue
Tax Research Unit
***

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 However, vide Produce Cess Laws (Abolition) Act, 2006, the said Produce Cess Act, 1966 has been repealed w.e.f 25thSeptember, 2006.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)