CBIC decreases Special Additional Excise Duty on production of Petroleum Crude to Rs. 9050 per tonne from earlier Rs. 12,100 per tonne and reduce the Special Additional Excise Duty on export of ATF to Rs. 1 per litre from earlier Rs. 2.5 per litre with effect from 18th day of October, 2023 vide Notification No. 34/2023-Central Excise Dated: 17th October, 2023 by amending notification No. 18/2022-Central Excise, dated the 19th July, 2022.
Introduction: In a significant development, the Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 34/2023-Central Excise on October 17, 2023, bringing amendments to the existing excise duties related to the production of petroleum crude and the export of aviation turbine fuel (ATF). These changes are aimed at influencing the pricing and taxation of these crucial commodities. Let’s explore these modifications in detail.
Detailed Analysis: The CBIC, under the authority granted by section 5A of the Central Excise Act, 1944, in conjunction with section 147 of the Finance Act, 2002, has introduced important changes. These modifications have been made to the notification No. 18/2022-Central Excise, which was initially dated July 19, 2022, and has undergone various amendments. As of October 18, 2023, the following key alterations have been made:
i. Special Additional Excise Duty on Petroleum Crude Production: The Special Additional Excise Duty imposed on the production of petroleum crude has been significantly reduced. Previously standing at Rs. 12,100 per tonne, this duty has been amended to Rs. 9,050 per tonne. This change is expected to have a notable impact on the pricing of petroleum crude and may influence the cost structure of various petroleum-related industries.
ii. Special Additional Excise Duty on Export of ATF: In another noteworthy alteration, the Special Additional Excise Duty related to the export of aviation turbine fuel (ATF) has been lowered. It was previously set at Rs. 2.5 per litre, and it has now been reduced to just Rs. 1 per litre. This change is significant for the aviation industry, as it may lead to cost savings for airlines engaged in international flights.
Conclusion: The amendments introduced by the Central Board of Indirect Taxes and Customs through Notification No. 34/2023-Central Excise signify a strategic move to influence the pricing and taxation of critical commodities like petroleum crude and aviation turbine fuel. The reduction in excise duties on the production of petroleum crude and the export of ATF may have a far-reaching impact on industries dependent on these resources. These changes could lead to potential cost savings and affect the overall dynamics of these sectors. The notification is scheduled to take effect on the 18th day of October, 2023
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
Notification No. 34/2023-Central Excise | Dated: 17th October, 2023
G.S.R. 747(E).— In exercise of the powers conferred by section 5A of the Central Excise Act, 1944 (1 of 1944) read with section 147 of the 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), notification No. 18/2022-Central Excise, dated the 19th July, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 584 (E), dated the 19th July, 2022, namely:-
In the said notification, in the Table,-
(i) against S. No. 1, for the entry in column (4), the entry “Rs. 9050 per tonne” shall be substituted;
(ii) against S. No. 2, for the entry in column (4), the entry “Rs. 1 per litre” shall be substituted
2. This notification shall come into force on the 18th day of October, 2023.
[F. No. 354/15/2022-TRU]
AMREETA TITUS, Dy. Secy.
Note: The principal notification No. 18/2022-Central Excise, dated the 19th July, 2022 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 584 (E), dated the 19th July, 2022, and was last amended vide notification No. 32/2023-Central Excise, dated the 29th September, 2023, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 700(E), dated the 29th September, 2023.
