Setting at rest confusion over levy of excise duty, the Finance Ministry on Monday said there is no ‘legal infirmity’ in the notifications issued by the Government with regard to the GST Constitution Amendment Act. Some experts have raised doubt about the legality of levying excise duty by the Centre on various commodities till implementation of the goods and services tax (GST) from April 1, 2017, after the government on September 16 notified certain provisions of the Act.
“DoR (department of revenue) examined the validity and implications of notifications dated September 10 and 16 with respect to existing taxes imposed by the Union and states. There is no legal infirmity in these notifications,” Revenue Secretary Hasmukh Adhia tweeted. He further said the law department has confirmed that ‘there appears to be no legal requirement to issue any further clarification or notification in this regard’.
The confusion arose following the notification with regard to amendment of Entry 84 of the Union list following which the Centre can levy excise only on petroleum crude, high-speed diesel, petrol and natural gas. Earlier, Entry 84 of the Union list of the Constitution allowed the Centre to levy excise duty on tobacco and other goods with the exception of potable alcohol, opium and narcotic drugs.