Budget Day restriction on clearance of goods removed

NEW DELHI: The government on Monday lifted the "Budget Day restrictions" on clearance of manufactured goods, including for exporters and importers, by amending the Central Excise Rules of 2002.
"February 28 this year will be the first Budget Day when the manufacturers, importers and exporters would be free to conduct their normal activities. The removal of Budget Day restrictions and resultant unhindered economic activity is expected to impact the growth positively," an official release said.
The Centre amended the Central Excise Rules of 2002 and also revoked its earlier instructions relating to Budget Day restrictions in respect of indigenously manufactured goods as well as imported and exported goods.
Historically, Central Excise law imposed certain restrictions on clearance of manufactured goods and imported goods from customs bonded warehouses on Budget Day to prevent duty evasion.
Moreover, excise duty used to be paid prior to clearance of the goods but it is now paid on instalment basis.
"Thus, budget day restrictions appeared redundant and for this reason the Task Force on Indirect Taxes chaired by Vijay Kelkar had recommended their revocation."
Earlier, companies had to declare their stock of manufactured goods on the day preceding the Budget Day and no goods were allowed from the factory or warehouse on the Budget Day up to 12 mid night, unless an application had been made to tax authorities.
Permission was generally given to a few goods including those used in factory, petro products, export items and those required for essential services.