Trade Notice No.3/2010
Dated Shillong the 25.02.2010
Subject: Beedi cess payable
under the provisions of
The Trade, Industry and all concerned are informed that references have been received regarding leviability of beedi cess on labelled as well as unlabelled beedis. It has been stated that Notification No. S-23011/1/79-M.V. dated 19.12.1981[G.S.R. No.669(E)] as amended by [G.S.R. No. 281(E)] dated 30.03.82, issued by the Ministry of Labour, provides that when cess has been collected on unlabelled beedis, no further cess shall be collected when they are subsequently labelled. The trade has represented that despite the notification, some Commissionerates are insisting on payment of cess on labelled beedis. Differing stands are being taken by different adjudicating authorities in this regard.
2. The matter has been examined in consultation with the administrative ministry. The Ministry of Labour have confirmed that the aforesaid notification is still in operation. They have informed that the rate of cess on manufactured beedis has, however, been enhanced vide Notification No. S.O.363 (E) dated 17.03.2006. Other provisions of the Act and Rules made in this regard are still applicable.
3. On examination of the aforesaid notification dated 19.12.1981 as amended by notification dated 30.03.1982, the following position emerges with regard to the leviability of cess:-
(i) If the biris are otherwise
exempted from payment of Central Excise duty,
(ii) If cess has been
collected on unlabelled beedis, no further cess is
(iii) For cases covered under
(i) above, if the exempted beedis are
Authority:- Circular No. 914/04/2010-CX
New Delhi, dated the 16th February, 2010.
Central Board of Excise & Customs, New Delhi\