CBIC reduces Special Additional Excise Duty on export of Diesel to Rs. 4.00 per litre from earlier rate of Rs. 5.00 per litre with effect from 18th day of October, 2023.
Introduction: In a significant development, the Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 35/2023-Central Excise on October 17, 2023. This notification brings an important change regarding the Special Additional Excise Duty on the export of diesel. Effective from October 18, 2023, the duty rate has been revised, aiming to influence the pricing and taxation structure related to diesel exports.
Detailed Analysis: Under the powers conferred by section 5A of the Central Excise Act, 1944, in conjunction with section 147 of the Finance Act, 2002, the Central Government has made a crucial amendment in the notification No. 04/2022-Central Excise. This notification, initially dated June 30, 2022, and subject to various amendments, has been modified to lower the Special Additional Excise Duty on diesel exports. The specific change introduced is as follows:
- Special Additional Excise Duty on Diesel Exports: The duty rate on the export of diesel has been reduced from the earlier rate of Rs. 5 per litre to the new rate of Rs. 4 per litre. This change holds significance for the energy and transportation sectors, where diesel plays a critical role in fueling various vehicles and machinery.
Conclusion: The revision in the Special Additional Excise Duty for diesel exports, as implemented through Notification No. 35/2023-Central Excise, signifies a strategic move by the Central Board of Indirect Taxes and Customs (CBIC) to influence the pricing and taxation structure related to diesel exports. The reduction in excise duty on diesel exports from Rs. 5 per litre to Rs. 4 per litre, effective from October 18, 2023, is expected to have implications for industries dependent on diesel for their operations. This change may lead to potential cost savings in sectors involving the use of diesel and may affect the pricing dynamics in these areas. Industry stakeholders will closely monitor the implications of this revision, especially in the context of energy and transportation.
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 35/2023-Central Excise | Dated: 17th October, 2023
G.S.R. 748(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), notification 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. 4 per litre” shall be substituted;
- 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. 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.33/2023-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. 701(E), dated the 29th September, 2023.
