Excise​ duty ​exemption ​on bunker fuels used in ships /vessels registered under Merchant Shipping Act and plying cargo between two or more Indian ports

The Central Government vide Notification No. 21/2014 – C​E​ (Tariff) dated November 11, 2014 has extended the Excise​ duty​exemption​ on bunker fuels falling under Chapter 27 of the First Schedule to the Central Excise Act, 1985 used in ships/vessels registered under Merchant Shipping Act and plying cargo between two or more Indian ports​, till May 11, 2015 by inserting Sl. No. 65A subject to the condition no 52 of the Annexure attached in the Notification No. 12/2012​–CE (Tariff) dated March 17, 2012.

Full Text of the Notification is as follows :-

Notification No. 21/2014- Central Excise

New Delhi, the 11th November, 2014

G.S.R.   (E). – In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government 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. 12/2012-Central Excise, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 163(E), dated the 17th March, 2012, namely: –

In the said notification,-

(a) in the opening paragraph, after the second proviso, the following proviso shall be inserted, namely:-

“Provided also that nothing contained in this notification shall apply to the goods specified against serial number 65A of the said Table on or after the 11th day of May 2015;”;

(b) in the Table,after serial number 65 and the entries relating thereto, the following serial number and the entries shall be inserted, namely :-

“65A 27 The following bunker fuelsfor use in ships or vessels, namely:-

(i) IFO 180 CST;

(ii) IFO 380 CST.

Nil 52”;

(c) in the ANNEXURE, after condition number 51 and the entries relating thereto, the following shall be inserted, namely:-

“52 If,-

(i) the bunker fuels are procured for use in ships or vessels which are registered under the Merchant Shipping Act, 1958 (44 of 1958) and fly the Indian flag only;

(ii) such ships or vessels carry cargo between two or more Indian ports (including an intermediate foreign port);

(iii) such ships or vessels carry either containerised export-import cargo or empty containers or both between such ports;

(iv) such ships or vessels do not file any cargo related documentation under the Customs Act, 1962 (52 of 1962) with the Customs authorities, other than an import manifest (IGM) or an export manifest (EGM), as the case may be;

(v) the Master of the vessel or his authorised agent and the manufacturer or the warehouse keeper, as the case may be, submit a declaration-cum-undertaking stating the quantity of bunker fuels required under this notification to the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, based on a document certifying the consumption rate of fuel issued by any classification society which is a member of International Association of Classification Societies (IACS) and the distance proposed to be covered by the vessel during its voyage;

(vi) the Master of the vessel or his authorised agent and the manufacturer or the warehouse keeper, as the case maybe, submit an undertaking to the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, as the case may be, to pay, in the event of his failure to comply with any of the aforesaid conditions, an amount equal to the duty leviable on such goods but for the exemption contained therein, along with the applicable interest thereon.”.

 [F. No. 354/126/2014-TRU]

(Akshay Joshi)
Under Secretary to the Government of India

Note.- The principal notification No. 12/2012-Central Excise, dated the 17th March, 2012 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 163(E) dated the 17th March, 2012 and last amended vide notification No.12/2014-Central Excise, dated the 11th July, 2014 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.443(E), dated the 11th July, 2014.

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(Bimal Jain, FCA, FCS, LLB, B.Com (Hons), Mobile: +91 9810604563, Email: bimaljain@hotmail.com)

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0 Comments

  1. bvvraju says:

    Under the above notification, if ship starts at one point and unload the cargo in another port (within india) and take the load and went to foreign port then can we take this exemption on bunker fuels.

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