MINISTRY OF LAW AND JUSTICE

(Legislative Department)

New Delhi the 10th May 2010

The following Act of Parliament received the assent of the President on the 8th May, 2010 and is hereby published for general information -

THE FINANCE ACT, 2010

No. 14 of 2010

[8th May 2010]

An Act give effect to the financial proposals of the Central Government for the financial year 2010-2011.

BE it enacted by Parliament in the Sixty-first Year of the Republic of India as follows : -

CHAPTER I

PRELIMINARY

1. Short the and commencement- (1) This Act may be called the Finance Act, 2010.

(2) Save as otherwise provided in this Act, sections 2 to 56 shall be deemed to have come into force on the 1st day of April, 2010.

CHAPTER IV

Indirect taxes

Customs

57. Amendment of Section 127B.- In the Customs Act, 1962 (hereinafter referred to as the Customs Act), in section 127B, in sub-section (7), for the words "but excluding the goods not included in the entry made under this Act", the words "or otherwise" shall be substituted. (52 of 1962.)

58. Amendment of Section 127C.- In section 127C of the Customs Act, in sub-section (6), the following proviso shall be inserted, namely: -

"Provided that the period specified under this sub-section may, for reasons to be recorded in writing, be extended by the Settlement Commission for a further period not exceeding three months.".

59. Amendment of Section 127L.- In section 127L of the Customs Act, -

(a) in sub-section (7), -

(i) the words, figures and letters "before the 1st day of June, 2007" shall be omitted;

(ii) in clause (i), after the words, brackets, figures and letter "sub-section (7) of section 127C", the words, figures, brackets and letter "as it stood immediately before the commencement of section 102 of the Finance Act, 2007 or sub-section (5) of section 127C" shall be inserted; (22 of 2007)

(iii) in clause (ii), after the word, brackets and figure "sub-section (7)", the words, figures, brackets and letter "as it stood immediately before the commencement of section 102 of the Finance Act, 2007 or sub-section (5) of section 127C" shall be inserted; (22 of 2007)

(b) sub-section (2) shall be omitted.

60. Amendment of notifications issued under sub-section (1) of section 25 of Customs Act.- (1) The notifications of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 118(E), dated the 1st March, 2002 and number G.S.R. 92(75), dated the 1st March, 2006, issued under sub-section (i) of section 25 of the Customs Act, shall stand amended and shall be deemed to have been amended retrospectively, in the manner specified in column (3) of the Second Schedule, on and from the corresponding date specified in column (4) of that Schedule, against each of the notifications specified in column (2) of that Schedule.

(2) For the purposes of sub-section (7), the Central Government shall have and shall be deemed to have the power to amend the notifications referred to in said sub-section (7) with retrospective effect as if the Central Government had the power to amend the said notifications under sub-section (7) of section 25 of the Customs Act, retrospectively, at all material times.

(3) No suit or other proceedings shall be instituted, maintained or continued in any court, tribunal or other authority for any action taken or anything done or omitted to be done, in respect of any goods, under any such rule, regulation, notification or order and no enforcement shall be made by any court, of any decree or order relating to such action taken or anything done or omitted to be done as if the amendments made in said notifications had been in force at all material times.

(4) Recovery shall be made of the amount which has not been paid but which would have been paid as if the amendments made in the manner specified in said subsection (7) had been in force at all material times.

Explanation. - For the removal of doubts, it is hereby declared that no act or omission on the part of any person shall be punishable as an offence which would not have been so punishable if the notifications referred to in this section had not been amended retrospectively.

Customs tariff

61. Amendment of section 3.- In the Customs Tariff Act, 1975 (hereinafter referred to as the Customs Tariff Act), in section 3, in sub-section (2), for the first proviso, the following proviso shall be substituted, namely: - (51 of 1975.)

" Provided that in case of an article imported into India, -

(a) in relation to which it is required, under the provisions of the Standards of Weights and Measures Act, 1976 or the rules made thereunder or under any other law for the time being in force, to declare on the package thereof the retail sale price of such article; and (60 of 1976)

(b) where the like article produced or manufactured in India, or in case where such like article is not so produced or manufactured, then, the class or description of articles to which the imported article belongs, is -

(i) the goods specified by notification in the Official Gazette under sub-section (7) of section 4A of the Central Excise Act, 1944, the value of the imported article shall be deemed to be the retail sale price declared on the imported article less such amount of abatement, if any, from such retail sale price as the Central Government may, by notification in the Official Gazette, allow in respect of such like article under sub-section (2) of section 4 A of that Act; or (1 of 1944)

(ii) the goods specified by notification in the Official Gazette under section 3, read with clause (7) of Explanation III of the Schedule to the Medicinal and Toilet Preparations (Excise Duties) Act, 1955, the value of the imported article shall be deemed to be the retail sale price declared on the imported article less such amount of abatement, if any, from such retail sale price as the Central Government may, by notification in the Official Gazette, allow in respect of such like article under clause (2) of the said Explanation. (16 of 1955)

Explanation. - Where on any imported article more than one retail sale price is declared, the maximum of such retail sale price shall be deemed to be the retail sale price for the purposes of this section.".

62. Amendment of First Schedule.- The First Schedule to the Customs Tariff Act shall be amended in the manner specified in the Third Schedule.

63. Amendment of Second Schedule.- In the Second Schedule to the Customs Tariff Act, against heading No. 16, in column (3), for the entry "Rs. 2500 per tonne", the entry "Rs. 10000 per tonne" shall be substituted.

Excise

64. Amendment of section 11A.- In the Central Excise Act, 1944 (hereinafter referred to as the Central Excise Act), in section 11 A, in sub-section (2B), after Explanation 2, the following Explanation shall be inserted, namely: - (1 of 1944)

"Explanation 3. - For the removal of doubts, it is hereby declared that no penalty under any of the provisions of this Act or the rules made thereunder shall be imposed in respect of payment of duty under this sub-section and interest thereon.".

65. Amendment of section 32E.- In section 32E of the Central Excise Act, in sub-section (1), for the words "but excluding the goods in respect of which no proper record has been maintained by the assessee in his daily stock register", the words "or otherwise" shall be substituted.

66. Amendment of section 32F.- In section 32F of the Central Excise Act, in sub-section (6), the following proviso shall be inserted, namely: -

"Provided that the period specified under this sub-section may, for reasons to be recorded in writing, be extended by the Settlement Commission for a further period not exceeding three months.".

67. Amendment of section 32-O.- In section 32-O of the Central Excise Act, -

(a) in sub-section (1), -

(i) the words, figures and letters "before the 1st day of June, 2007" shall be omitted;

(ii) in clause (i), after the words, brackets, figures and letter "sub-section (7) of section 32F", the words, figures, brackets and letter ", as it stood immediately before the commencement of section 122 of the Finance Act, 2007 or sub-section (5) of section 32F," shall be inserted; (22 of 2007)

(iii) in clause (ii), after the word, brackets and figure "sub-section (7)", the words, figures, brackets and letter ", as it stood immediately before the commencement of section 122 of the Finance Act, 2007 or sub-section (5) of section 32F," shall be inserted; (22 of 2007)

(b) sub-section (2) shall be omitted.

68. Amendment of section 37.- In section 37 of the Central Excise Act, in sub-section (2), after clause (xiii), the following clause shall be inserted, namely: -

"(xiiia) provide for withdrawal of facilities or imposition of restrictions (including restrictions on utilisation of CENVAT credit) on manufacturer or exporter or suspension of registration of dealer, for dealing with evasion of duty or misuse of CENVAT credit;".

69. Amendment of Central Excise Rules, 1944 by insertion of new rule 57CCC.- (1) The Central Excise Rules, 1944, made by the Central Government in exercise of the powers conferred by section 37 of the Central Excise Act, shall stand amended and shall be deemed to have been amended retrospectively, in the manner specified in column (3) of the Fourth Schedule, on and from and up to the corresponding date specified in column (4) of that Schedule, against the rule specified in column (2) of that Schedule.

(2) Where a person opts to pay the amount in accordance with the provisions of the Central Excise Rules, 1944 as amended by sub-section (/), he shall pay the amount along with interest specified thereunder and make an application to the Commissioner of Central Excise along with documentary evidence and a certificate from a Chartered Accountant or a Cost Accountant certifying the amount of input credit attributable to the inputs used in or in relation to the manufacture of the final products, which are exempted from the whole of the duty of excise leviable thereon or chargeable to nil rate of duty, within a period of six months from the date on which the Finance Bill, 2010 receives the assent of the President.

(3) The Commissioner of Central Excise shall, on receipt of an application under subsection (2), verify the correctness of the amount paid within a period of two months from the date of receipt of the application and in case the amount so paid is found to be less than the amount payable, he shall call upon the applicant to pay the differential amount along with interest, which shall be paid within a period of ten days from the date of receipt of the communication from the Commissioner in this regard.

(4) Notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done, at any time during the period commencing on and from the 1st day of September, 1996 and ending with the 31st day of March, 2000, relating to the provisions as amended by sub-section (7), shall be deemed to be and deemed always to have been, for all purposes, as validly and effectively taken or done as if the amendment made by sub-section (7) had been in force at all material times.

(5) Notwithstanding the supersession of the Central Excise Rules, 1944, for the purposes of sub-section (1), the Central Government shall have and shall be deemed to have the power to make rules with retrospective effect as if the Central Government had the power to make rules under section 37 of the Central Excise Act, retrospectively, at all material times.

Explanation. - For the removal of doubts, it is hereby declared that no act or omission on the part of any person shall be punishable as an offence which would not have been so punishable had this section not come into force.

70. Amendment of rule 57AD of Central Excise Rules, 1944.- (1) In the Central Excise Rules, 1944, made by the Central Government in exercise of the powers conferred by section 37 of the Central Excise Act, rule 57D, as substituted by rule 2 of the Central Excise (Second Amendment) Rules, 2000, published in the Official Gazette vide notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 203(E), dated the 1 st March, 2000, and subsequently substituted as rule 57AD by rule 5 of the Central Excise [Second Amendment (Amendment)] Rules, 2000, published in the Gazette of India vide notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 298 (E), dated the 31 st March, 2000, shall stand amended and shall be deemed to have been amended retrospectively, in the manner specified in column (3) of the Fifth Schedule, on and from and up to the corresponding date specified in column (4) of that Schedule against the rules specified in column (2) of that Schedule.

(2) Where a person opts to pay the amount in accordance with the provisions as amended by sub-section (1), he shall pay the amount along with interest specified thereunder and make an application to the Commissioner of Central Excise along with documentary evidence and a certificate from a Chartered Accountant or a Cost Accountant certifying the amount of input credit attributable to the inputs used in or in relation to the manufacture of the final products, which are exempted from the whole of the duty of excise leviable thereon or chargeable to nil rate of duty, within a period of six months from the date on which the Finance Bill, 2010 receives the assent of the President.

(3) The Commissioner of Central Excise shall, on receipt of an application under subsection (2), verify the correctness of the amount paid within a period of two months from the date of receipt of the application and in case the amount so paid is found to be less than the amount payable, he shall call upon the applicant to pay the differential amount along with interest which shall be paid within a period of ten days from the date of receipt of the communication from the Commissioner in this regard.

(4) Notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done, at any time during the period commencing on and from the 1st day of April, 2000 and ending with the 30th day of June, 2001 relating to the provisions as amended by sub-section (7), shall be deemed to be and deemed always to have been, for all purposes, as validly and effectively taken or done as if the amendment made by sub-section (7) had been in force at all material times.

(5) Notwithstanding the supersession of the Central Excise Rules, 1944, for the purposes of sub-section (1), the Central Government shall have and shall be deemed to have the power to make rules with retrospective effect as if the Central Government had the power to make rules under section 37 of the Central Excise Act, retrospectively, at all material times.

Explanation. - For the removal of doubts, it is hereby declared that no act or omission on the part of any person shall be punishable as an offence which would not have been so punishable had this section not come into force.

71. Amendment of rule 6 of CENVAT Credit Rules, 2001.- (1) In the CENVAT Credit Rules, 2001, made by the Central Government in exercise of the powers conferred by section 37 of the Central Excise Act and published in the Official Gazette vide notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 445(£), dated the 21 st June, 2001, rule 6 shall stand amended and shall be deemed to have been amended retrospectively, in the manner specified in column (3) of the Sixth Schedule, on and from and up to the corresponding date specified in column (4) of that Schedule, against the rules specified in column (2) of that Schedule.

(2) Where a person opts to pay the amount in accordance with the provisions as amended by sub-section (7), he shall pay the amount along with interest specified thereunder and make an application to the Commissioner of Central Excise along with documentary evidence and a certificate from a Chartered Accountant or a Cost Accountant certifying the amount of input credit attributable to the inputs used in or in relation to the manufacture of exempted goods within a period of six months from the date on which the Finance Bill, 2010 receives the assent of the President.

(3) The Commissioner of Central Excise shall, on receipt of an application under subsection (2), verify the correctness of the amount paid within a period of two months from the date of receipt of the application and in case the amount so paid is found to be less than the amount payable, he shall call upon the applicant to pay the differential amount along with interest, which shall be paid within a period of ten days from the date of receipt of the communication from the Commissioner in this regard.

(4) Notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done, at any time during the period commencing on and from the 1st day of July, 2001 and ending with the 28th day of February, 2002, relating to the provisions as amended by sub-section (7), shall be deemed to be and deemed always to have been, for all purposes, as validly and effectively taken or done as if the amendment made by sub-section (7) had been in force at all material times.

(5) Notwithstanding the supersession of the CENVAT Credit Rules, 2001, for the purposes of sub-section (7), the Central Government shall have and shall be deemed to have the power to make rules with retrospective effect as if the Central Government had the power to make rules under section 37 of the Central Excise Act, retrospectively, at all material times.

Explanation. - For the removal of doubts, it is hereby declared that no act or omission on the part of any person shall be punishable as an offence which would not have been so punishable had this section not come into force.

72. Amendment of rule 6 of CENVAT Credit Rules, 2002.- (7) In the CENVAT Credit Rules, 2002, made by the Central Government in exercise of the powers conferred by section 3 7 of the Central Excise Act, and published in the Official Gazette vide notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 144(E), dated the 1 st March, 2002, rule 6 shall stand amended and shall be deemed to have been amended retrospectively, in the manner specified in column (3) of the Seventh Schedule, on and from and to the corresponding date specified in column (4) of that Schedule, against the rule specified in column (2) of that Schedule.

(2) Where a person opts to pay the mount in accordance with the provisions as amended by sub-section (7), he shall pay the mount along with interest specified thereunder and make an application to the Commissioner of Central Excise along with documentary evidence and a certificate from a Chartered Accountant or a Cost Accountant certifying the amount of input credit attributable to the inputs used in or in relation to the manufacture of exempted goods within a period of six months from the date on which the Finance Bill, 2010 receives the assent of the President.

(3) The Commissioner of Central Excise shall or receipt of an application under subsection (2), verify the correctness of the amount paid within a period of two months from the date of receipt of the application and in case the amount so paid is found to be less than the amount payable, he shall call upon the applicant to pay the differential amount along with interest, which shall be paid within a period of ten days from the date of receipt of the communication from the Commissioner in this regard.

(4) Notwithstanding anything contained in any judgment decree or order of any court, tribunal or other authority, any action taken or anything one or purported to have been taken or done, at any time during the period commencing on and from the 1st day of March, 2002 and ending with the 9th day of September, 2004, relation to the provisions as amended by sub-section (7), shall be deemed to be, and deemed always in have been, for all purposes, as validly and effectively taken or done as if the amendment made by sub-section (7) had been in force at all material times.

(5) Notwithstanding the supersession of the CENVAT Credit Rules, 2002, for the purposes of sub-section (7), the Central Government shall have and shall be deemed to have the power to make rules with retrospective effect as if the Central Government hat the power to make rules under section 37 of the Central Excise Act, retrospectively, at all material times.

Explanation. - For the removal of doubts, it is hereby declared that no act of omission on the part of any person shall be punishable as an offence which would not have been so punishable had this section not come into force.

73. Amendment of rule 6 of CENVAT Credit Rules, 2004.- (7) In the CENVAT Credit Rules, 2004, made by the Central Government in exercise of the powers conferred by section 37 of the Central Excise Act, as published in the Official Gazette vide notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 600(E), dated the 10th September, 2004, rule 6 shall stand amended and shall be deemed to have been amended retrospectively, in the manner specified in column (3) of the Eighth Schedule, on and from and up to the corresponding date specified in column (4) of that Schedule, against the rule specified in column (2) of that Schedule.

(2) Where a person opts to pay the amount in accordance with the provisions as amended by sub-section (7), he shall pay the amount along with interest specified thereunder and make an application to the Commissioner of Central Excise along with documentary evidence and a certificate from a Chartered Accountant or a Cost Accountant, certifying the amount of input credit attributable to the inputs used in or in relation to the manufacture of exempted goods, within a period of six months from the date on which the Finance Bill, 2010 receives the assent of the President.

(3) The Commissioner of Central Excise shall, on receipt of an application under subsection (2), verify the correctness of the amount paid within a period of two months from the date of receipt of the application and in case the amount so paid is found to be less than the amount payable, he shall call upon the applicant to pay the differential amount along with interest, which shall be paid within a period of ten days from the date of receipt of the communication from the Commissioner in this regard.

(4) Notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done, at any time during the period commencing on and from the 10th day of September, 2004 and ending with the 31 st day of March, 2008, relating to the provisions as amended by sub-section (7), shall be deemed to be and deemed always to have been, for all purposes, as validly and effectively taken or done as if the amendment made by sub-section (7) had been in force at all material times.

(5) For the purposes of sub-section (7), the Central Government shall have and shall be deemed to have the power to make rules with retrospective effect as if the Central Government had the power to make rules under section 37 of the Central Excise Act, retrospectively, at all material times.

Explanation. - For the removal of doubts, it is hereby declared that no act or omission on the part of any person shall be punishable as an offence which would not have been so punishable had this section not come into force.

74. Amendment of notification issued under rule 5 of CENVAT Credit Rules, 2004.- In the notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 156(£), dated the 14th day of March, 2006, issued under rule 5 of the CENVAT Credit Rules, 2004, with effect from the 14th day of March, 2006,—

(A) in the opening portion, -

(i) in clause (a), for the words "used in", the words "used in or in relation to" shall be substituted and shall be deemed to have been substituted;

(ii) in clause (b), for the words "used in", the words "used for" shall be substituted and shall be deemed to have been substituted;

(B) in the Appendix, in condition 5, the portion beginning with the letters and words "i.e. Maximum refund" and ending with the letters and figures "i.e. Rs. 50" shall be omitted and shall be deemed to have been omitted.

Central Excise Tariff

75. Amendment of First Schedule to Act 5 of 1986.- The First Schedule to the Central Excise Tariff Act, 1985 (hereinafter referred to as the Central Excise Tariff Act) shall be amended in the manner specified in the Ninth Schedule. of

CHAPTER V

Service Tax

76. Amendment of Act 32 of 1994.- In the Finance Act, 1994, -

(A) in section 65, save as otherwise provided, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, -

(1) in clause (19), in sub-clause (ii), the Explanation shall be omitted;

(2) after clause (19a), the following clause shall be inserted, namely: -

'(19b) "business entity" includes an association of persons, body of individuals, company or firm but does not include an individual;';

(3) in clause (25b), for the words "commercial or industrial construction service", the words "commercial or industrial construction" shall be substituted;

(4) for clause (77c), the following clause shall be substituted, namely: -

'(77c) "passenger" means any person boarding an aircraft in India for performing domestic journey or international journey;';

(5) for clause (82), the following clause shall be substituted, namely: -

'(82) "port service" means any service rendered within a port or other port, in any manner;';

(6) in clause (105), -

(a) for sub-clause (zn), the following sub-clause shall be substituted, namely: -

"(zn) to any person, by any other person, in relation to port services in a port, in any manner:

Provided that the provisions of section 65A shall not apply to any service when the same is rendered wholly within the port;";

(b) in sub-clause (zzc), the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of July. 2003, namely: -

'Explanation. - For the removal of doubts, it is hereby declared that the expression "commercial training or coaching centre" occurring in this sub-clause and in clauses (26), (27) and (90a) shall include any centre or institute, by whatever name called, where training or coaching is imparted for consideration, whether or not such centre or institute is registered as a trust or a society or similar other organisation under any law for the time being in force and carrying on its activity with or without profit motive and the expression "commercial training or coaching" shall be construed accordingly;';

(c) for sub-clauses (zzl) and (zzm), the following sub-clauses shall be substituted, namely: -

"(zzl) to any person, by any other person, in relation to port services in other port, in any manner:

Provided that the provisions of section 65A shall not apply to any service when the same is rendered wholly within other port;

(zzm) to any person, by airports authority or by any other person, in any airport or a civil enclave:

Provided that the provisions of section 65A shall not apply to any service when the same is rendered wholly within the airport or civil enclave;";

(d) in sub-clause (zzq), -

(i) the word "service" shall be omitted;

(ii) the following Explanation shall be inserted, namely: -

"Explanation. - For the purposes of this sub-clause, the construction of a new building which is intended for sale, wholly or partly, by a builder or any person authorised by the builder before, during or after construction (except in cases for which no sum is received from or on behalf of the prospective buyer by the builder or the person authorised by the builder before grant of completion certificate by the authority competent to issue such certificate under any law for the time being in force) shall be deemed to be service provided by the builder to the buyer;";

(e) in sub-clause (zzzh), the following Explanation shall be inserted, namely: -

"Explanation. - For the purposes of this sub-clause, construction of a complex which is intended for sale, wholly or partly, by a builder or any person authorised by the builder before, during or after construction (except in cases for which no sum is received from or on behalf of the prospective buyer by the builder or a person authorised by the builder before the grant of completion certificate by the authority competent to issue such certificate under any law for the time being in force) shall be deemed to be service provided by the builder to the buyer;";

(f) for sub-clauses (zzzn) and (zzzo), the following sub-clauses shall be substituted, namely: -

"(zzzn) to any person, by any other person receiving sponsorship, in relation to such sponsorship, in any manner;

(zzzo) to any passenger, by an aircraft operator, in relation to scheduled or non-scheduled air transport of such passenger embarking in India for domestic journey or international journey;";

(g) in sub-clause (zzzr), the following Explanation shall be inserted, namely: -

'Explanation. - For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, "auction by the Government" means the Government property being auctioned by any person acting as auctioneer;';

(h) in sub-clause (zzzz), -

(i) for the portion beginning with the words "to any person" and ending with the words "business or commerce", the following shall be substituted and shall be deemed to have been substituted with effect from the 1st day of June, 2007, namely: -

"to any person, by any other person, by renting of immovable property or any other service in relation to such renting, for use in the course of or for furtherance of, business or commerce.";

(ii) in Explanation 1, after item (iv), the following item shall be inserted, namely: -

"(v) vacant land given on lease or licence for construction of building or temporary structure at a later stage to be used for furtherance of business or commerce;";

(i) in sub-clause (zzzze), the words "for use in the course, or furtherance, of business or commerce," shall be omitted;

(j) in sub-clause (zzzzf), in the Explanation, for clauses (it) and (Hi), the following clause shall be substituted, namely: -

"(ii) the gross amount charged by the insurer from the policy holder for the said service provided or to be provided shall be equal to the maximum amount fixed by the Insurance Regulatory and Development Authority established under section 3 of the Insurance Regulatory and Development Authority Act, 1999, as fund management charges for unit linked insurance plan or the actual amount charged for the said purpose by the insurer from the policy holder, whichever is higher;"; (41 of 1999)

(k) Explanation to sub-clause (zzzzm) shall be omitted;

(l) after sub-clause (zzzzm), the following sub-clauses shall be inserted, namely: -

'(zzzzn) to any person, by any other person, for promotion, marketing, organising or in any other manner assisting in organising games of chance, including lottery, Bingo or Lotto in whatever form or by whatever name called, whether or not conducted through internet or other electronic networks;

(zzzzo) by any hospital, nursing home or multi-speciality clinic, -

(i) to an employee of any business entity, in relation to health check-up or preventive care, where the payment for such check-up or preventive care is made by such business entity directly to such hospital, nursing home or multi-speciality clinic; or

(ii) to a person covered by health insurance scheme, for any health check-up or treatment, where the payment for such health check-up or treatment is made by the insurance company directly to such hospital, nursing home or multi-speciality clinic;

(zzzzp) to any business entity, by any other person, in relation to storing, keeping or maintaining of medical records of employees of a business entity;

(zzzzq) to any person, by any other person, through a business entity or otherwise, under a contract for promotion or marketing of a brand of goods, service, event or endorsement of name, including a trade name, logo or house mark of a business entity by appearing in advertisement and promotional event or carrying out any promotional activity for such goods, service or event.

Explanation. - For the purposes of this sub-clause, "brand" includes symbol, monogram, label, signature or invented words which indicate connection with the said goods, service, event or business entity;

(zzzzr) to any person, by any other person, by granting the right or by permitting commercial use or exploitation of any event including an event relating to art, entertainment, business, sports or marriage organised by such other person;

(zzzzs) to any person, by an electricity exchange, by whatever name called, approved by the Central Electricity Regulatory Commission constituted under section 76 of the Electricity Act, 2003, in relation to trading, processing, clearing or settlement of spot contracts, term ahead contracts, seasonal contracts, derivatives or any other electricity related contract; (36 of 2003)

(zzzzt) to any person, by any other person, for -

(a) transferring temporarily; or

(b) permitting the use or enjoyment of,

any copyright defined in the Copyright Act, 1957, except the rights covered under sub-clause (a) of clause (1) of section 13 of the said Act; (14 of 1957 )

(zzzzu) to a buyer, by a builder of a residential complex, or a commercial complex, or any other person authorised by such builder, for providing preferential location or development of such complex but does not include services covered under sub-clauses (zzg), (zzq), (zzzh) and in relation to parking place.

Explanation. - For the purposes of this sub-clause, "preferential location" means any location having extra advantage which attracts extra payment over and above the basic sale price;';

(B) in section 66, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint, for the word, brackets and letters "and (zzzzm)", the brackets, letters and word ", (zzzzm), (zzzzn), (zzzzo), (zzzzp), (zzzzq), (zzzzr), (zzzzs), (zzzzt) and (zzzzu)" shall be substituted;

(C) in section 73, in sub-section (3), the Explanation shall be numbered as Explanation 1 thereof and after Explanation 1 as so numbered, the following Explanation shall be inserted, namely: -

"Explanation 2. - For the removal of doubts, it is hereby declared that no penalty under any of the provisions of this Act or the rules made thereunder shall be imposed in respect of payment of service tax under this sub-section and interest thereon.";

(D) in section 95, after sub-section (1F), the following sub-section shall be inserted, namely: -

"(1G) If any difficulty arises in respect of implementing, classifying or assessing the value of any taxable service incorporated in this Chapter by the Finance Act, 2010, the Central Government may, by order published in the Official Gazette, not inconsistent with the provisions of this Chapter, remove the difficulty:

Provided that no such order shall be made after the expiry of a period of one year from the date on which the Finance Bill, 2010 receives the assent of the President".

77. Validation of action taken under sub-clause (zzzz) of clause (105) of section 65.- Any action taken or anything done or omitted to be done or purported to have been taken or done or omitted to be done under sub-clause (zzzz) of clause (705) of section 65 of the Finance Act, 1994, at any time during the period commencing on and from the 1 st day of June, 2007 and ending with the day, the Finance Bill, 2010 receives the assent of the President, shall be deemed to be and deemed always to have been, for all purposes, as validly and effectively taken or done or omitted to be done as if the amendment made in sub-clause (zzzz) of clause (105) of section 65, by sub-item (i) of item (h) of sub-clause (6) of clause (A) of section 76 of the Finance Act, 2010 had been in force at all material times and, accordingly, notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority,— (32 of 1994)

(a) any action taken or anything done or omitted to be taken or done in relation to the levy and collection of service tax during the said period on the taxable service of renting of immovable property, shall be deemed to be and deemed always to have been, as validly taken or done or omitted to be done as if the said amendment had been in force at all material times;

(b) no suit or other proceedings shall be maintained or continued in any court, tribunal or other authority for the levy and collection of such service tax and no enforcement shall be made by any court of any decree or order relating to such action taken or anything done or omitted to be done as if the said amendment had been in force at all material times;

(c) recovery shall be made of all such amounts of service tax, interest or penalty or fine or other charges which may not have been collected or, as the case may be, which have been refunded but which would have been collected or, as the case may be, would not have been refunded, as if the said amendment had been in force at all material times.

Explanation. - For the removal of doubts, it is hereby declared that no act or omission on the part of any person shall be punishable as an offence which would not have been so punishable had this amendment not come into force.

CHAPTER VI

Central Sales Tax

78. Amendment of section 6A.- In the Central Sales Tax Act, 1956 (hereinafter referred to as the Central Sales Tax Act), in section 6A, - (74 of 1956)

(a) in sub-section (2), for the portion beginning with the words "are true, he may" and ending with the words "declaration relates shall", the words "are true and that no inter-State sale has been effected, he may, at the time of, or at any time before, the assessment of the tax payable by the dealer under this Act, make an order to that effect and thereupon the movement of goods to which the declaration relates shall, subject to the provisions of sub-section (3)," shall be substituted;

(b) after sub-section (2), the following sub-section shall be inserted, namely: -

"(3) Nothing contained in sub-section (2) shall preclude reassessment by the assessing authority on the ground of discovery of new facts or revision by a higher authority on the ground that the findings of the assessing authority are contrary to law, and such reassessment or revision may be done in accordance with the provisions of general sales tax law of the State.".

79. Insertion of new Chapter VA.- After Chapter V of the Central Sales Tax Act, the following Chapter shall be inserted, namely: -

'CHAPTER VA

APPEALS TO THE HIGHEST APPELLATE AUTHORITY OF THE STATE

18A. Appeals to highest appellate authority of State.- (1) Notwithstanding anything contained in a State Act, any person aggrieved by an order made by the assessing authority under sub-section (2) of section 6A, or an order made under the provisions of sub-section (3) of that section, may, notwithstanding anything contained in the general sales tax law of the appropriate State, prefer an appeal to the highest appellate authority of the State against such order:

Provided that any incidental issues including the rate of tax, computation of assessable turnover and penalty may be raised in such appeal.

(2) An appeal under sub-section (1) shall be filed within sixty days from the date on which the order referred to in that sub-section is communicated to the aggrieved person:

Provided that any appeal forwarded by the highest appellate authority of a State to the first appellate authority under the proviso to sub-section (2) of section 25 and pending before such authority immediately before the appointed day shall be transferred, on such appointed day, to the highest appellate authority of the State and the same shall be treated as an appeal filed under sub-section (7) and dealt with accordingly.

Explanation. - For the purposes of this sub-section, "appointed day" means such date as the Central Government may, by notification in the Official Gazette, appoint.

(3) The highest appellate authority of a State may, after giving both the parties an opportunity of being heard, pass appropriate order.

(4) The highest appellate authority of the State may, as far as practicable, hear and decide such appeal within a period of six months from the date of filing of the appeal.

(5) Notwithstanding anything contained in a State Act, the highest appellate authority of a State may, on the application of the appellant and after considering relevant facts, including the deposit of any amount towards local or central sales tax in other States on the same goods, pass an order of stay subject to such terms and conditions as it thinks fit, and such order may, inter alia, indicate the portion of tax as assessed, to be deposited prior to admission of the appeal.

Explanation. - For the purposes of this section and sections 20, 21, 22 and 25, "highest appellate authority of a State", with its grammatical variations, means any authority or tribunal or court, except the High Court, established or constituted under the general sales tax law of a State, by whatever name called.'.

80. Amendment of section 20.- In section 20 of the Central Sales Tax Act, for sub-section (1) and the Explanation thereunder, the following sub-section shall be substituted, namely: -

"(1) An appeal shall lie to the Authority against any order passed by the highest appellate authority of a State under this Act determining issues relating to stock transfers or consignments of goods, in so far as they involve a dispute of inter-State nature.".

81. Amendment of section 22- In section 22 of the Central Sales Tax Act,-

(a) for the word "pre-deposit", wherever it occurs, the word "deposit" shall he substituted;

(b) after sub-section (1A), the following sub-section shall be inserted, namely;-

"(1B) The Authority may issue direction for refund of tax collected by a State which has been held by the Authority to be not due to that State, or alternatively, direct that State to transfer the refundable amount to the State to which central sales tax is due on the same transaction:

Provided that the amount of tax directed to be refunded by a State shall not exceed the amount of central sales tax payable by the appellant on the same transaction.".

82. Amendment of section 25- In section 25 of the Central Sales Tax Act, the proviso to sub-section (2) shall be omitted.

CHAPTER VII

CLEAN ENERGY CESS

83. Clean Energy Cess- (1) This Chapter extends to the whole of India.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

(3) There shall be levied and collected in accordance with the provisions of this Chapter, a cess to be called the Clean Energy Cess, as duty of excise, on goods specified in the Tenth Schedule, being goods produced in India, at the rates set forth in the said Schedule for the purposes of financing and promoting clean energy initiatives, funding research in the area of clean energy or for any other purpose relating thereto.

(4) The proceeds of the cess levied under sub-section (3) shall first be credited to the Consolidated Fund of India and the Central Government may, after due appropriation made by Parliament by law in this behalf, utilise such sums of money of the cess for the purposes specified in sub-section (3), as it may consider necessary.

(5) The cess leviable under sub-section (3) shall be in addition to any cess or duty leviable on the good specified in the Tenth Schedule under any other law for the time being in force.

(6) The cess leviable under sub-section (3) shall be for the purposes of the Union and the proceeds thereof shall not be distributed among the States and the manner of assessment, collection, utilisation and any other matter relating to cess shall be such as may be prescribed by rules.

(7) The Central Government may, by notification in the Official Gazette, declare that any of the provisions of the Central Excise Act, 1944, relating to levy of and exemption from duty of excise, refund, offences and penalties, confiscation and procedure relating to offences and appeals shall, with such modifications and alterations as it may consider necessary, be applicable in respect of cess levied under sub-section (3).

84. Power of Central Government to make rules- (1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Chapter.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for -

(a) the manner of assessment, collection and utilisation of the cess under subsection (6) of section 83;

(b) any other matter relating to the cess under sub-section (6) of section 83.

(3) Every rule made and every notification issued under this Chapter shall be laid as soon as may be after it is made or issued, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session, or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification, or both Houses agree that the rule or notification should not be made or issued, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification.

CHAPTER VIII

Miscellaneous

85. Amendment of section 3 of Act 16 of 1955- In the Medicinal and Toilet Preparations (Excise Duties) Act, 1955, in section 3, in sub-section (1), after the words "dutiable goods", the brackets and words "(excluding goods produced or manufactured in a Special Economic Zone)" shall be inserted.

86. Amendment of Seventh Schedule to Act 14 of 2001. The Seventh Schedule to the Finance Act, 2001 shall be amended in the manner specified in the Eleventh Schedule.

87. Amendment of Seventh Schedule to Act 18 of 2005.- The Seventh Schedule to the Finance Act, 2005 shall be amended in the manner specified in the Twelfth Schedule.

THE SECOND SCHEDULE

[See section 60(1)]

THE THIRD SCHEDULE

(See section 62)

In the First Schedule to the Customs Tariff Act,-

(1) in Chapter 24, in heading 2402,-

(ii) for the entry in column (2) occurring against the tariff item 2402 20 40, the entry "-Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 60 millimetres but not exceeding 70 millimetres" shall be substituted;

(iii) for the entry in column (2) occurring against the tariff item 2402 20 50, the entry" - Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 70 millimetres but not exceeding 75 millimetres" shall be substituted;

(iv) after tariff item 2402 20 50 and the entries relating thereto, the following tariff item and entries shall be inserted, namely:-

(2) in Chapter 27.-

(a) for sub-heading 2712 20 and tariff items 2712 20 10 and 2712 20 90 and the entries relating thereto, the following tariff item and entries shall be substituted, namely:-

(b) after tariff item 2712 90 30 and the entries relating thereto, the following tariff item and entries shall be inserted, namely:-

THE FOURTH SCHEDULE

[See section 69(1)]

THE FIFTH SCHEDULE

[See section 70(1)]

THE SIXTH SCHEDULE

[See section 71(1)]

THE SEVENTH SCHEDULE

[See section 72(1)]

THE EIGHTH SCHEDULE

[See section 73(1)]

THE NINTH SCHEDULE

(See section 75)

In the First Schedule to the Central Excise Tariff Act, -

(1) in Chapter 24, -

(i) for the entry in column (4) occurring against all tariff items of heading 2401, the entry "50%" shall be substituted;

(ii) in tariff items 2402 10 10 and 2402 10 20, for the entry in column (4), the entry "10% or Rs. 1227 per thousand, whichever is higher" shall be substituted;

(iii) in tariff item 2402 20 10, for the entry in column (4), the entry "Rs. 509 per thousand" shall be substituted;

(iv) in tariff item 2402 20 20, for the entry in column (4), the entry "Rs. 1218 per thousand" shall be substituted;

(v) for the entries in column (2) and column (4) occurring against the tariff item 2402 20 30, the entries " - Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) not exceeding 60 millimetres" and "Rs. 509 per thousand" shall respectively be substituted;

(vi) for the entries in column (2) and column (4) occurring against the tariff item 2402 20 40, the entries " - Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 60 millimetres but not exceeding 70 millimetres" and "Rs. 809 per thousand" shall respectively be substituted;

(vii) for the entries in column (2) and column (4) occurring against the tariff item 2402 20 50, the entries " - Filter cigarettes of length (including the length of the filter, the length of filter being II millimetres or its actual length, whichever is more) exceeding 70 millimetres but not exceeding 75 millimetres" and "Rs. 1218 per thousand'1 shall respectively be substituted;

(viii) after tariff item 2402 20 50 and the entries relating thereto, the following tariff item and entries shall be inserted, namely: -

(3) in Chapter 48, in heading 4818, -

(i) in tariff item 4818 40 10, for the entry in column (4), the entry "16%" shall be substituted;

(ii) in tariff item 4818 40 90, for the entry in column (4), the entry "16%" shall be substituted;

(4) in Chapter 50, for the entry in column (4) occurring against all the tariff items of headings 5004, 5005, 5006 and 5007, the entry "10%" shall be substituted;

(5) in Chapter 51, for the entry in column (4) occurring against all the tariff items of headings 5105, 5106, 5107, 5108, 5109, 5110, 5111, 5112 and 5113, the entry "10%" shall be substituted;

(6) in Chapter 52, for the entry in column (4) occurring against all the tariff items of headings 5204, 5205, 5206, 5207, 5208, 5209, 5210, 5211 and 5212, the entry "10%" shall be substituted;

(7) in Chapter 53, for the entry in column (4) occurring against all the tariff items of headings 5302, 5305, 5306, 5308 (except 5308 10 10 and 5308 10 90), 5309, 5310 and 5311, the entry "10%" shall be substituted;

(8) in Chapter 54, for the entry in column (4) occurring against all the tariff items of headings 5401, 5404 (except 5404 11 00, 5404 12 00, 5404 19 10, 5404 19 20 and 5404 19 90), 5405, 5407 (except 5407 10 15, 5407 10 25, 5407 10 35, 5407 10 45, 5407 10 95, 5407 20 10, 5407 20 20, 5407 20 30, 5407 20 40, 5407 20 90, 5407 30 10, 5407 30 20, 5407 30 30, 5407 30 40, 5407 30 90, 5407 43 19, 5407 41 29, 5407 42 90, 5407 43 00, 5407 44 90, 5407 71 10, 5407 71 20, 5407 72 00, 5407 73 00, 5407 74 00, 5407 8119, 5407 81 29, 5407 82 90, 5407 83 00, 5407 84 90, 5407 91 10, 5407 91 20, 5407 92 00, 5407 93 00 and 5407 94 00) and 5408, the entry "10%" shall be substituted;

(9) in Chapter 55, for the entry in column (4) occurring against all the tariff items of headings 5508, 5509, 5510, 5511, 5512, 5513, 5514, 5515 and 5516, the entry "10%" shall be substituted;

(10) in Chapter 56, for the entry in column (4) occurring against all the tariff items of headings 5601 (except 5601 10 00 and 5601 22 00), 5602,5603,5604, 5605, 5606, 5607 (except 5607 50 10), 5608 (except 5608 11 10 and 5608 11 90) and 5609, the entry "10%" shall be substituted;

(11) in Chapter 57, for the entry in column (4) occurring against all the tariff items of headings 5701, 5702, 5703, 5704 and 5705, the entry "10%" shall be substituted;

(12) in Chapter 58, for the entry in column (4) occurring against all the tariff items of headings 5801 (except 5801 35 00). 5802, 5803, 5804 (except 5804 30 00), 5806, 5808, 5809, 5810 and 5811, the entry' "10%" shall be substituted;

(13) in Chapter 59, for the entry in column (4) occurring against all the tariff items of headings 5901, 5902 (except 5902 10 30 and 5902 10 90, 5903, 5904, 5905, 5906, 5907, 5908, 5909, 5910 and 5911, the entry "10%" shall be substituted;

(14) in Chapter 60, for the entry in column (4) occurring against all the tariff items of headings 6001,6002, 6003, 6004, 6005 and 6006, the entry "10%" shall be substituted;

(15) in Chapter 61, for the entry in column (4) occurring against ail the tariff items of headings 6101, 6102, 6103, 6104, 6105, 6106, 6107, 6108, 6109, 6110, 6111,6112, 613 3, 6114, 6115, 6116 and 6317, the entry "10%" shall be substituted;

(16) in Chapter 62, for the entry in column (4) occurring against all the tariff items of headings 6201, 6202,6203, 6204, 6205, 6206, 6207, 6208, 6209, 6210, 6211, 6212, 6213, 6214, 6215, 6216 and 6217, the entry "10%" shall be substituted;

(17) in Chapter 63, for the entry in column (4) occurring against all the tariff items of headings 6301,6302,6303, 6304, 6305, 6306, 6307 and 6308, the entry "10%" shall be substituted;

(18) in Cbaptcr.68, after NOTE 2, the following NOTE shall be inserted, namely: - '3. In relation to products of headings 6802 and 6810, the process of cutting or sawing or sizing or polishing or any-other process, for converting of stone blocks into slabs or tiles, shall amount to "manufacture".';

(19) in Chapter 76 -

(i) "NOTE" shall be numbered as "NOTE I" thereof and after NOTE 1 as so numbered, the following NOTE shall be inserted, namely: -

'2. In relation to products of heading 7608, the process of drawing or redrawing shall amount to "manufacture"'.';

(ii) in sub-heading Note 2, for the word "Note", the word and figure "Note 1" shall be substituted;

(20) in Chapter 90, in tariff item 9001 30 00, for the entry in column (4), the entry "10%" shall be substituted;

(21) in Chapter 95, in tariff item 9504 40 00, for the entry in column (4), the entry "10%" shall be substituted.

THE TENTH SCHEDULE

[See Section 83(3) and (5)]

NOTES :

1. In this Schedule, "Chapter", "heading", "sub-heading" and "tariff item" means respectively a Chapter, heading, sub-heading and tariff item of the First Schedule to the Central Excise Tariff Act.

2. The rules for the interpretation of the First Schedule to the Central Excise Tariff Act, the Section and Chapter Notes and the General Rules for the Interpretation of the First Schedule shall apply to the interpretation of this Schedule.

THE ELEVENTH SCHEDULE

(See section 86)

In the Seventh Schedule to the Finance Act, 2001, -

(i) for the entries in column (2) and column (4) occurring against the tariff item 2402 20 30, the entries " --- Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) not exceeding 60 millimetres" and "Rs. 90 per thousand" shall respectively be substituted;

(ii) for the entries in column (2) and column (4) occurring against the tariff item 2402 20 40, the entries " - Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 60 millimetres but not exceeding 70 millimetres" and "Rs. 90 per thousand" shall respectively be substituted:

(iii) for the entries in column (2) and column (4) occurring against the tariff item 2402 20 50, the entries " - Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 70 millimetres but not exceeding 75 millimetres" and "Rs. 145 per thousand" shall respectively be substituted;

(iv) after tariff item 2402 20 50 and the entries relating thereto, the following tariff item and the entries shall be inserted, namely: -

THE TWELFTH SCHEDULE

(See section 87)

In the Seventh Schedule to the Finance Act, 2005, -

(i) for the entries in column (2) and column (4) occurring against the tariff item 2402 20 30, the entries" --- Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) not exceeding 60 millimetres'1 and "Rs. 70 per thousand" shall respectively be substituted;

(ii) for the entries in column (2) and column (4) occurring against the tariff item 2402 20 40, the entries "---Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 60 millimetres but not exceeding 70 millimetres" and "Rs. 70 per thousand11 shall respectively be substituted:

(iii) for the entries in column (2) and column (4) occurring against the tariff item 2402 20 50, the entries "---Filter cigarettes of length (including the length of the filter, the length of filter being 11 millimetres or its actual length, whichever is more) exceeding 70 millimetres but not exceeding 75 millimetres" and "Rs. 110 per thousand" shall respectively be substituted;

(iv) after tariff item 2402 20 50 and the entries relating thereto, the following tariff item and the entries shall be inserted, namely: -

V.K. BHASIN
Secy. to the Govt. of India