CBIC Increases Special Additional Excise Duty on export of Diesel to Rs. 1.50 per litre from earlier rate of Rs. Nil per litre with effect from 16th day of February, 2024 by amending principal notification No. 04/2022-Central Excise, dated the 30th June, 2022. For the period from 2nd January 2024 to 15th February 2024 Rate of Special Additional Excise Duty on export of Diesel was Rs. Nil per litre.
Detailed Analysis
On February 15, 2024, the Central Board of Indirect Taxes and Customs (CBIC) has revised the rate of Special Additional Excise Duty applicable to the export of diesel. This amendment, made under the powers conferred by section 5A of the Central Excise Act, 1944, comes into effect from February 16, 2024.
The amendment modifies the existing notification No. 04/2022-Central Excise, which previously imposed no Special Additional Excise Duty on diesel exports. However, with this latest revision, the rate has been set at Rs. 1.50 per litre.
This decision reflects the government’s response to prevailing economic conditions and aims to regulate the export of diesel in line with public interest considerations. The increase in duty is likely motivated by fiscal objectives and considerations of domestic demand and supply dynamics.
The adjustment in Special Additional Excise Duty on diesel exports signifies a strategic move by the government to manage the flow of diesel in the international market while safeguarding domestic interests. The revised rate of Rs. 1.50 per litre, effective from February 16, 2024, is expected to have implications for exporters and the broader energy sector.
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 07/2024-Central Excise | Dated: 15th February, 2024
G.S.R. 112(E).— In exercise of the powers conferred by section 5A of the Central Excise Act, 1944 (1 of 1944) read with section 147 of Finance Act, 2002 (20 of 2002), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 04/2022-Central Excise, dated the 30th June, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 492 (E), dated the 30th June, 2022, namely:-
In the said notification, in the Table,
(i) against S. No. 2, for the entry in column (4), the entry “Rs. 1.50 per litre” shall be substituted;
2. This notification shall come into force on the 16th day of February, 2024.
[F. No. 354/15/2022-TRU]
PUNEETA BEDI, Director
Note: The principal notification No. 04/2022-Central Excise, dated the 30th June, 2022, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 492 (E), dated the 30th June, 2022, and was last amended vide notification No. 02/2024-Central Excise, dated the 1st January, 2024 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 2(E), dated the 1st January, 2024.
