Introduction: The Ministry of Finance has announced a further amendment to No. 04/2022-Central Excise, dated the 30th June 2022, with an increase in the Special Additional Excise Duty on the export of Diesel and Aviation Turbine Fuel (ATF). This change will come into effect on the 15th day of August, 2023, impacting the pricing structure for exporters in India.
Analysis:
1. Amendment Details: The amendment alters the entry against S. No. 2, with the Special Additional Excise Duty on diesel and ATF exports being substituted to Rs. 5.50 per litre.
2. Legal Framework: Exercising the powers under section 5A of the Central Excise Act, 1944 read with section 147 of Finance Act, 2002, the Central Government has made this decision in the public interest.
3. Impact on Exporters: This change could lead to a significant impact on the export market, potentially altering pricing strategies and export competitiveness for diesel and ATF.
4. Previous Amendments: This is the latest in a series of amendments to No. 04/2022-Central Excise, indicating an ongoing review and adaptation of policy related to fuel export duties.
Conclusion: The Indian Government’s decision to increase the Special Additional Excise Duty on diesel and ATF exports reflects a strategic approach to managing the export sector of the fuel industry. This change, effective from August 15, 2023, may influence both domestic and international markets. Exporters and related stakeholders must take this amendment into account to ensure compliance and consider potential effects on the economic viability of their operations.
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MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 27/2023-Central Excise | Dated: 14th August, 2023
G.S.R. 601(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. 5.50 per litre” shall be substituted;
2. This notification shall come into force on the 15th day of August, 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.25/2023-Central Excise, dated the 31st July, 2023, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 573(E), dated the 31st July, 2023.
