Circular No. 32/2011- custom
F. No. 341/26/2011-TRU
Government of India
Ministry of Finance
Department of Revenue
Tax Research Unit
New Delhi dated 26th July, 2011
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 However, vide Produce Cess Laws (Abolition) Act, 2006, the said Produce Cess Act, 1966 has been repealed w.e.f 25thSeptember, 2006.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.