Home India Ministry of Finance In exercise of the powers conferred by sub section 1 of sect...
Date: 27-Apr-2023 Category: Extra Ordinary State: Union Government Country: India

In exercise of the powers conferred by sub section 1 of section 5A of the Central Excise Act

Issued by Ministry of Finance · Department of Revenue

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Executive Summary & Key Takeaways

What it means

  • The notification No. 20/2023-Central Excise, dated April 26, 2023, issued by the Ministry of Finance, Department of Revenue, amends notifications 22/2003-Central Excise and 23/2003-Central Excise, both dated March 31, 2003.
  • These amendments are made in exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944, and are deemed necessary in the public interest.

Key Changes

  • Notification 22/2003-Central Excise is amended to:
  • Replace references to paragraphs and clauses within the notification, specifically updating references related to the Foreign Trade Policy.
  • Insert a new paragraph 11A, which states that excise duty exemptions will not apply to the procurement of goods for setting up, operating, and maintaining wind and solar captive power plants.
  • Update the definition of 'Foreign Trade Policy' to refer to the Foreign Trade Policy 2023, notified by the Ministry of Commerce and Industry via Notification No. 1/2023, dated March 31, 2023.
  • Update the definition of 'Handbook of Procedures' to refer to the Handbook of Procedures 2023, notified by the Ministry of Commerce and Industry via Public Notice No. 01/2023, dated April 1, 2023.
  • Remove the figures “2015-20” from clauses (xi) and (xii) in the explanation.
  • Replace the definition of 'Letter of Permission' to align with Chapter 6 of the Foreign Trade Policy 2023.
  • Notification 23/2003-Central Excise is amended to:
  • Update a paragraph reference in the TABLE, changing the reference from “paragraph 4.25” to “paragraph 4.24” against Sr. No. 23 in Column (4).
  • Replace all instances of “Paragraph 6.8” with “paragraph 6.07” in the ANNEXURE.
  • Update the definition of 'Foreign Trade Policy' to refer to the Foreign Trade Policy 2023, notified by the Ministry of Commerce and Industry via Notification No. 1/2023, dated March 31, 2023.
  • Update the definition of 'Handbook of Procedures' to refer to the Handbook of Procedures 2023, notified by the Ministry of Commerce and Industry via Public Notice No. 01/2023, dated April 1, 2023.

Impact Analysis

Wind and Solar Power Sector

  • Action Items: Re-evaluate project costs and financial models for new and existing wind and solar captive power plant projects. Engage with the Ministry of Finance to discuss potential alternative incentives or support mechanisms for the renewable energy sector.

Exporters and Units operating under Foreign Trade Policy

  • Action Items: Review and update internal documentation, processes, and training materials to reflect the changes in the Foreign Trade Policy 2023 and Handbook of Procedures 2023. Ensure that all relevant personnel are aware of the updated policies and procedures.

Government Agencies

  • Action Items: Update internal databases and systems to reflect the changes in paragraph numbers and policy references. Communicate the changes to relevant departments and officers to ensure consistent application of the regulations.

Overall Economy

  • Action Items: Monitor the impact of the excise duty changes on investment in the renewable energy sector. Conduct a comprehensive review of the effectiveness of existing incentives and policies for promoting renewable energy adoption.

Key Entities Referenced

Central Government: The authority issuing the notification, acting through the Ministry of Finance (Department of Revenue). Central Excise Act, 1944: The principal legislation under which the notification is issued, specifically referencing Section 5A which grants powers to the Central Government to grant exemptions from excise duty. Notification 22/2003-Central Excise: The original notification dated March 31, 2003, which is being amended by this notification. It pertains to central excise duties. Notification 23/2003-Central Excise: The original notification dated March 31, 2003, which is also being amended by this notification. It also pertains to central excise duties. Foreign Trade Policy 2023: The updated Foreign Trade Policy notified by the Ministry of Commerce and Industry, replacing references to the 2015-2020 policy. Handbook of Procedures 2023: The updated Handbook of Procedures notified by the Ministry of Commerce and Industry, providing guidelines and procedures related to foreign trade. Ministry of Commerce and Industry: The ministry responsible for notifying the Foreign Trade Policy and Handbook of Procedures.
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रजजस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सससीीी...जजजीीी...---डडडीीी...एएएललल...---अअअ...---222777000444222000222333---222444555444888444 xxxGIDHxxx CCCGGG---DDDLLL---EEE---222777000444222000222333---222444555444888444 xxxGIDExxx असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (i) PART II—Section 3—Sub-section (i) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 255] नई ददल्ली, बृहस्ट्प जतिार, अप्रलै 27, 2023/ििै ाख 7, 1945 No. 255] NEW DELHI, THURSDAY, APRIL 27, 2023/VAISAKHA 7, 1945 जित्त मत्रं ालय (राजस्ट्ि जिभाग) अजधसचू ना नई ददल्ली, 26 अप्रैल, 2023 (स.ं 20/2023-केंद्रीय उत्पाद िल्ु क) सा.का.जन. 317(अ).—केंद्रीय उत्पाद िुल्क अजधजनयम, 1944 (1944 का 1) की धारा 5क की उप-धारा (1) द्वारा प्रदत्त िजियों का प्रयोग करते हुए, केंद्र सरकार, इस बात से संतुष्ट होने पर दक जनजहत में ऐसा करना आिश्यक ह,ै इसके द्वारा जनदेि देती ह ै दक नीचे दी गई ताजलका के कॉलम (2) में जनर्ददष्ट भारत सरकार, जित्त मंत्रालय (राजस्ट्ि जिभाग) की प्रत्येक अजधसूचना म ें उि ताजलका के कॉलम (3) म ें संबंजधत प्रजिजष्ट म ें जनर्ददष्ट तरीके स े आग े संिोजधत दकया जाएगा, अथाात:् - ताजलका क्रम संख्या अजधसूचना संख्या और तारीख संिोधन (1) (2) (3) 1. 22/2003-केंद्रीय उत्पाद उि अजधसूचना में, - िुल्क, ददनांक 31 माचा, (1.) पैराग्राफ 6 में, िब्द, कोष्ठक, अक्षर और अंक "पैराग्राफ 6.9 के खंड (ङ)" के जलए, 2003, (सा.का.जन. 265 िब्द, कोष्ठक, अक्षर और अंक "पैराग्राफ 6.08 के खंड (ङ)" प्रजतस्ट्थाजपत होंगे; (अ), ददनांक 31 माचा, 2763 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] 2003) (2.) पैराग्राफ 8 में, (i) पहले परंतुक में, िब्द, अंक, कोष्ठक और अक्षर "पैरा 6.18 (घ)" के जलए, िब्द, अंक, कोष्ठक और अक्षर "पैरा 6.17 (घ)" प्रजतस्ट्थाजपत दकया जाएगा; (ii) खंड (iii) में, परंतुक में, िब्द, अंक, कोष्ठक और अक्षर "पैरा 6.18 (छ)" के स्ट्थान पर िब्द, अंक, कोष्ठक और अक्षर "पैरा 6.17 (छ)" प्रजतस्ट्थाजपत दकए जाएंगे; (3.) पैराग्राफ 9 में, िब्द, अंक और कोष्ठक "जिदिे व्यापार नीजत 2015-2020 के पैरा 6.12 (छ)" के स्ट्थान पर िब्द, अंक और कोष्ठक "जिदिे व्यापार नीजत के पैरा 6.11 (च)" को प्रजतस्ट्थाजपत दकया जाएगा; (4.) पैराग्राफ 10क में, (i) खंड (i)(क) में, िब्द, अंक, कोष्ठक और अक्षर "जिदिे व्यापार नीजत 2015-2020 के पैरा 6.08 (क)" के स्ट्थान पर िब्द, अंक, कोष्ठक और अक्षर "जिदिे व्यापार नीजत के पैरा 6.07 (क)" को प्रजतस्ट्थाजपत दकया जाएगा। ; (ii) परंतुक में, िब्द और अंक " पैराग्राफ 6.8" के स्ट्थान पर, िब्द और अंक "पैराग्राफ 6.07" प्रजतस्ट्थाजपत दकया जाएगा; (5.) पैराग्राफ 11 के बाद, जनम्नजलजखत पैराग्राफ को िाजमल दकया जाएगा, अथाात्: - "11क इस अजधसूचना में जनजहत दकसी बात के होते हुए भी उत्पाद िुल्क से छूट पिन कैजटटि पािर टलांट और सौर कैजटटि पािर टलांट की स्ट्थापना, संचालन और रखरखाि के जलए दकये गए माल की खरीद पर लागू नहीं होगी।" (6.) स्ट्पष्टीकरण में, (i) खंड (iii) के जलए, जनम्नजलजखत खंड को प्रजतस्ट्थाजपत दकया जाएगा, अथाात्: "(iii) 'जिदिे व्यापार नीजत' का अथा ह ै िाजणज्य और उद्योग मंत्रालय द्वारा अजधसूजचत जिदिे व्यापार नीजत, 2023 ह,ै जो अजधसूचना संख्या 1/2023, ददनांक 31 माचा, 2023 द्वारा भारत के राजपत्र, असाधारण, भाग- II, खंड 3, उप-खंड (ii) में प्रकाजित हुई ह;ै"; (ii) खंड (vi) के जलए, जनम्नजलजखत खंड को प्रजतस्ट्थाजपत दकया जाएगा, अथाात्: "(vi) 'प्रदक्रयाओं की पुजस्ट्तका' का अथा िाजणज्य और उद्योग मंत्रालय द्वारा अजधसूजचत प्रदक्रयाओं की पुजस्ट्तका, 2023 ह,ै जो सािाजजनक सूचना संख्या 01/ 2023, ददनांक 1 अप्रैल, 2023 के माध्यम से भारत के राजपत्र, असाधारण, भाग- I, खंड- I में प्रकाजित हुई ह;ै"; (iii) खंड (xi) में, आंकडे "2015-20" का लोप दकया जाएगा; (iv) खंड (xii) में, आंकडे "2015-20" का लोप दकया जाएगा; (v) खंड (xiv) के स्ट्थान पर जनम्नजलजखत खंड को प्रजतस्ट्थाजपत दकया जाएगा, अथाात्: ‘(xiv) "अनुमजत पत्र" का अथा िही है जो िाजणज्य और उद्योग मंत्रालय द्वारा अजधसूजचत जिदिे व्यापार नीजत, 2023 के अध्याय 6 में जनर्ददष्ट ह,ै जो अजधसूचना संख्या 1/2023, ददनांक 31 माचा, 2023 द्वारा भारत के राजपत्र, असाधारण, भाग- II, खंड 3, उप-खंड (ii) में प्रकाजित हुआ ह।ै ’। 2. 23/2003-केंद्रीय उत्पाद उि अजधसूचना में, - िुल्क, ददनांक 31 माचा, (1.) ताजलका में, 2003 (सा.का.जन. 266 (अ), (i) क्रम संख्या 23 के सामने, कॉलम (4) में, िब्द और अंक "पैराग्राफ 4.25" के ददनांक 31 माचा, 2003( स्ट्थान पर, िब्द और अंक "पैराग्राफ 4.24" द्वारा प्रजतस्ट्थाजपत दकया जाएगा;[भाग II—खण् ड 3(i)] भारत का राजपत्र : असाधारण 3 (2.) अनुलग्नक में, िब्द और अंक "पैराग्राफ 6.8" के स्ट्थान पर, जहां भी िे आते हैं, िब्द और अंक "पैराग्राफ 6.07" द्वारा प्रजतस्ट्थाजपत दकए जाएंगे; (3.) स्ट्पष्टीकरण I में, (a) खंड (ii) के जलए, जनम्नजलजखत खंड को प्रजतस्ट्थाजपत दकया जाएगा, अथाात्: "(ii) 'जिदिे व्यापार नीजत' का अथा ह ै िाजणज्य और उद्योग मंत्रालय द्वारा अजधसूजचत जिदिे व्यापार नीजत, 2023, जो अजधसूचना संख्या 1/2023, ददनांक 31 माचा, 2023 द्वारा भारत के राजपत्र, असाधारण, भाग- II, खंड 3, उप-खंड (ii) में प्रकाजित हुई ह;ै"; (b) खंड (v) के जलए, जनम्नजलजखत खंड को प्रजतस्ट्थाजपत दकया जाएगा, अथाात्: "(v) 'प्रदक्रयाओं की पुजस्ट्तका' का अथा िाजणज्य और उद्योग मंत्रालय द्वारा अजधसूजचत प्रदक्रयाओं की पुजस्ट्तका, 2023 है, जो सािाजजनक सूचना संख्या 01/ 2023, ददनांक 1 अप्रैल, 2023 के माध्यम से भारत के राजपत्र, असाधारण, भाग- I, खंड- I में प्रकाजित हुई ह;ै”। [फा. स.ं DGEP/EOU/7/2023-TECH] धनंजय ससह, अिर सजचि टटटपणी:- 1. मूल अजधसूचना संख्या 22/2003-केन्द्द्रीय उत्पाद िल्ु क, ददनांक 31 माच,ा 2003, को भारत के राजपत्र, असाधारण, भाग II, खंड 3, उपखंड (i) सा.का.जन. 265 (अ), ददनांक 31 माचा, 2003 द्वारा प्रकाजित की गई थी और अंजतम बार अजधसूचना संख्या 23/2018-केंद्रीय उत्पाद िुल्क, ददनांक 5 ददसंबर, 2018 द्वारा संिोजधत की गई थी जो सा.का.जन. 1177(अ), ददनांक 6 ददसबं र, 2018 द्वारा प्रकाजित की गई थी । 2. मूल अजधसूचना संख्या 23/2003-केन्द्द्रीय उत्पाद िल्ु क, ददनांक 31 माच,ा 2003, को भारत के राजपत्र, असाधारण, भाग II, खंड 3, उपखंड (i) सा.का.जन. 266 (अ), ददनांक 31 माचा, 2003 द्वारा प्रकाजित की गई थी और अंजतम बार अजधसूचना संख्या 23/2018-केंद्रीय उत्पाद िुल्क, ददनांक 5 ददसंबर, 2018 द्वारा संिोजधत की गई थी जो सा.का.जन. 1177(अ), ददनांक 6 ददसबं र, 2018 द्वारा प्रकाजित की गई थी । MINISTRTY OF FINANCE (Department of Revenue) NOTIFICATION New Delhi, the 26th April, 2023 (No 20/2023-Central Excise) G.S.R. 317(E).—In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby directs that each of the notifications of the Government of India, Ministry of Finance (Department of Revenue), specified in Column (2) of the Table given below shall be further amended in the manner as specified in the corresponding entry in Column (3) of the said Table, namely:- TABLE Serial Notification number and Amendments Number Date (1) (2) (3) 1. 22/2003-Central Excise In the notification, - dated the 31st March, (1.) in paragraph 6, for the words, brackets, letter and figures “clause (e) of 2003 [G.S.R. 265(E), paragraph 6.9”, the words, brackets, letter and figures “clause (e) of dated the 31st March, paragraph 6.08” shall be substituted; 2003]4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] (2.) in paragraph 8, (i) in first proviso, for the words, figures, brackets and letter “Para 6.18 (d)”, the words, figures, brackets and letter “Para 6.17 (d)” shall be substituted; (ii) in clause (iii), in proviso, for the words, figures, brackets and letters “Para 6.18(g)”, the words, figures, brackets and letters “Para 6.17(g)” shall be substituted; (3.) in paragraph 9, for the words, figures, brackets and letters “para 6.12(g) of Foreign Trade Policy 2015-2020”, the words, figures, brackets and letters “para 6.11(f) of the Foreign Trade Policy” shall be substituted; (4.) in paragraph 10A, (i) in clause (ia), for the words, figures, brackets and letters “para 6.08 (a) of Foreign Trade Policy 2015-2020”, the words, figures, brackets and letters “para 6.07 (a) of the Foreign Trade Policy” shall be substituted; (ii) in proviso, for the word and figure “Paragraph 6.8”, the word and figure “paragraph 6.07” shall be substituted; (5.) After paragraph 11, the following paragraph shall be inserted, namely: - “11A. Notwithstanding anything contained in this Notification, exemption from the duty of excise shall not apply on procurement of goods for setting up, operations and maintenance of wind captive power plant and solar captive power plant.”; (6.) in the Explanation, (i) for clause (iii), the following clause shall be substituted, namely: “(iii) „Foreign Trade Policy‟ means Foreign Trade Policy, 2023 notified by the Ministry of Commerce and Industry published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub- section (ii), vide Notification No 1/2023, dated the 31st March, 2023;”; (ii) for clause (vi), the following clause shall be substituted, namely: “(vi) „Handbook of Procedures‟ means Handbook of Procedures, 2023 notified by the Ministry of Commerce and Industry published in the Gazette of India, Extraordinary, Part-I, Section-I, vide Public Notice No 01/2023, dated the 1st April, 2023;”; (iii) in clause (xi), the figures “2015-20” shall be omitted; (iv) in clause (xii), the figures “2015-20” shall be omitted; (v) for clause (xiv), the following clause shall be substituted, namely: „(xiv) “Letter of Permission” has the same meaning as assigned in Chapter 6 of the Foreign Trade Policy, 2023 notified by the Ministry of Commerce and Industry, published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide Notification No 1/2023, dated the 31st March, 2023.‟. 2. 23/2003-Central Excise In the notification, - dated the 31st March, (1.) in the TABLE, 2003 [G.S.R. 266(E), dated the 31st March, (i) against Sr. No. 23, in Column (4), for the word and figures “paragraph 4.25”, the word and figures “paragraph 4.24” shall be substituted; 2003] (2.) in the ANNEXURE, for the word and figure “Paragraph 6.8” wherever they occur, the word and figure “paragraph 6.07” shall be substituted; (3.) in the Explanation I, (a) for clause (ii), the following clause shall be substituted, namely: “(ii) „Foreign Trade Policy‟ means Foreign Trade Policy, 2023[भाग II—खण् ड 3(i)] भारत का राजपत्र : असाधारण 5 notified by the Ministry of Commerce and Industry published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub- section (ii), vide Notification No 1/2023, dated the 31st March, 2023;”; (b) for clause (v), the following clause shall be substituted, namely: “(v) „Handbook of Procedures‟ means Handbook of Procedures, 2023 notified by the Ministry of Commerce and Industry, published in the Gazette of India, Extraordinary, Part-I, Section-I, vide Public Notice No 01/2023, dated the 1st April, 2023;”. [F. No. DGEP/EOU/7/2023-TECH] DHANANJAY SINGH, Under Secy. Note: - 1. The principal notification No. 22/2003-Central Excise, dated the 31st March, 2003 was published in the Gazette of India Extraordinary, Part II, Section 3 (i), vide G.S.R 265 (E), dated the 31st March, 2003 and last amended by notification No. 23/2018-Central Excise dated the 5th December, 2018 published vide G.S.R. 1177(E), dated the 6th December, 2018. 2. The principal notification No. 23/2003-Central Excise, dated the 31st March, 2003 was published in the Gazette of India Extraordinary, Part II, Section 3 (i), vide G.S.R 266 (E), dated the 31st March, 2003 and last amended by notification No. 23/2018-Central Excise dated the 5th December, 2018 published vide G.S.R. 1177(E), dated the 6th December, 2018. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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