"The second proposal regarding simplification concerns the licence fee on television sets, VCRs and
radios. While the requirement of taking out a licence, in the case of radios"
television. sets and VCRs is being dispensed with, a new one-time levy is being introduced on television sets alone at a uniform rate of Rs. 1(X) per set in lieu of the present licence fee of Rs. 50 payable every year till the T.V. set lasts. Henceforth, people will not have to go to the post offices for taking out or renewing licences. This levy would be an additional duty of excise, so far as T.V. sets manufactured in India are concerned. The additional duty
of, excise collected from this will accrue to the Centre only and will .not be shareable with the States.""
4. Horn the above, it is clear that this AED was in lieu of the licence fee which was collectable on domestic use of TV sets and not on TVs exported.
5. In view of the above, it is clarified that demands of AED on TV sets when exported out of India are not sustainable and pending assessments may be finalised accordingly.
6. Board"s earlier Circular No. 11/91-CX.6 dt. 3.7.91 and 10.10.94-Cx.6 dated 1.2.1994 accordingly stands withdrawn.
Sd/-
(M. Ponnuswamy)
Deputy Secretary to the Govt. of India