CBIC exempts applicable basic excise duty and Agriculture Infrastructure and Development Cess on petrol and diesel and basic excise duty on Aviation Turbine Fuel, when cleared for exports
The Ministry of Finance, Department of Revenue, has issued Notification No. 10/2026-Central Excise dated 26 March 2026 providing exemption from certain duties on specified petroleum products when cleared for export or supplied as fuel to foreign going aircraft. The notification has been issued under section 5A of the Central Excise Act, 1944 read with section 112 of the Finance Act, 2018 and section 125 of the Finance Act, 2021.
Under the notification, the Central Government has exempted goods listed in the table from the specified duties mentioned in the corresponding column when such goods are cleared for export or supplied as fuel to foreign going aircraft.
As per the table, motor spirit, commonly known as petrol, and high speed diesel are exempted from Basic Excise Duty and Agriculture Infrastructure and Development Cess. Aviation Turbine Fuel has been exempted from Basic Excise Duty.
The notification also provides explanations defining key terms for the purposes of its application. “Agriculture Infrastructure and Development Cess” refers to the cess levied under section 125 of the Finance Act, 2021. “Basic Excise Duty” refers to the duty levied under section 3 of the Central Excise Act, 1944. The term “Export” is defined as taking goods out of India to a place outside India.
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 10/2026-Central Excise | Dated: 26th March, 2026
G.S.R. 209(E).—In exercise of the powers conferred by section 5A of the Central Excise Act, 1944 (1 of 1944) read with section 112 of the Finance Act, 2018 (13 of 2018) and section 125 of the Finance Act, 2021 (13 of 2021), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the goods of description falling under Column (2) of the Table below from the whole of duties in Column (3) of the said Table when such goods are cleared for exports or supplied as fuel to foreign going aircraft.
TABLE
| S. No. |
Description of Item | Specified Duty |
|---|---|---|
| (1) | (2) | (3) |
| 1. | (i)Motor Spirit commonly known as Petrol (ii) High Speed Diesel | (i) Basic Excise Duty
(ii) Agriculture Infrastructure and Development Cess |
| 2. | Aviation Turbine Fuel | Basic Excise Duty |
Explanation: For the purpose of this notification, –
(i)“Agriculture Infrastructure and Development Cess” means the cess levied under section 125 of the Finance Act, 2021 (3 of 2021);
(ii)“Basic Excise Duty” means the duty levied under Section 3 of the Central Excise Act, 1944 (1 of 1944);
(iii) “Export”, with its grammatical variations and cognate expressions, means taking goods out of India to a place outside India;
2. This notification shall come into force with immediate effect.
[F. No. 190349/13/2026-TRU]
DHEERAJ SHARMA, Under Secy.
