BUDGET 2018-19 - Central Excise - Imposition of Road and Infrastructure Cess on Petrol and Diesel - Exemption from Road Cess on Petrol, Diesel, Ethanol-blended Petrol and Bio-Diesel - Central Excise Notifications Nos.01/2018-CE to 16/2018-CE, all dated 02.02.2018 - Communication thereof - Central Excise - CENTRAL EXCISE TRADE NOTICE NO. 001/2018

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE OFFICE OF THE PRINCIPAL CHIEF COMMISSIONER OF GST CENTRAL EXCISE TAMILNADU PUDUCHERRY No.26/1, MAHATHMA GANDHI ROAD, CHENNAI - 600 034 C.N0. IV/ 16/80/2018-PCCO Date: 09.02.2018 CENTRAL EXCISE TRADE NOTICE NO. 001/2018 Sub: BUDGET 2018-19 - Central Excise - Imposition of Road and Infrastructure Cess on Petrol and Diesel - Exemption from Road Cess on Petrol, Diesel, Ethanol-blended Petrol and Bio-Diesel - Central Excise Notifications Nos. 01/2018-CE to 16/2018-CE, all dated 02.02.2018 - Communication thereof - Reg. In the Budget 2018-19, Road and Infrastructure Cess on motor spirit commonly known as petrol and high speed diesel falling under Chapter 2710 at the rate of ₹ 8/- per litre has been levied [Clause 110 read with Sixth Schedule of the Finance Bill, 2018 refers]. Further, the said levy will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931. 2.0 Further, the Central Board of Excise Customs [CBEC] has issued the following Central Excise Notifications pertaining to reduction in rate of excise duty on petrol and diesel, exemption from road and infrastructure cess on specified petroleum products, exemption to specified refineries, etc. The gist of the same is detailed as hereunder: S. No. Notification No. Date Subject 1 1/2018- CE 02.02.2018 Rescinds Notification No. 10/2015-Centra1 Excise dated 01.03.2015 pertaining to exemption from Road Cess leviable in excess of ₹ 6/- per litre on Petrol 2 2/2018- CE 02.02.2018 Rescinds Notification No. 11/2015-Central Excise dated 01.03.2015 pertaining to exemption from Road Cess in excess of ₹ 6/- per litre on Diesel 3 3/2018- CE 02.02.2018 Rescinds Notification No. 38/2004-Central Excise dated 04.08.2004 pertaining to exemption of Road Cess on 5% ethanol blended Petrol 4 4/2018- CE 02.02.2018 Rescinds Notification No. 62/2008-Central Excise dated 24.12.2008 pertaining to pertaining to exemption of Road Cess on 10% ethanol blended Petrol 5 5/2018- CE 02.02.2018 Rescinds Notification No. 21/2009-Central Excise dated 07.07.2009 pertaining to exemption of Road Cess on Bio-Diesel 6 8/2018- CE 02.02.2018 Rescinds Notification No. 29/2002-Central Excise dated 13.05.2002 pertaining to partial exemption [50%] to Petrol and Diesel cleared from 4 specified refineries in North East 7 7/2018- CE 02.02.2018 Provides for exemption from payment of Road Cess on Petrol till the enactment of Finance Bill, 2018 8 8/2018- CE 02.02.2018 Provides for exemption from payment of Road Cess on Diesel till the enactment of Finance Bill, 2018 9 9/2018- CE 02.02.2018 Amends notification No. 11/2017-CE dated 30.06.2017 so as to [i] reduce the rate of Excise Duty on petrol and diesel by ₹ 2/- per litre [Sl. Nos.2 3 of the table] and [ii] to include Road and Infrastructure Cess for ethanol-blended petrol and bio-diesel in the explanation of appropriate duty of excise in Sl. Nos.4 to 6 of the table 10 10/2018- CE 02.02.2018 Exemption of 50% from BED, Special AED and Road and Infrastructure Cess on clearances of petrol and diesel from 4 specified refineries in North East 11 11/2018- CE 02.02.2018 Exemption from Road and Infrastructure Cess on 5% ethanol blended Petrol 12 12/2018- CE 02.02.2018 Exemption from Road and Infrastructure Cess on 10% ethanol blended Petrol 13 13/2018- CE 02.02.2018 Exemption to Bio-Diesel from Road and Infrastructure Cess 14 14/2018- CE 02.02.2018 Amendment to the effect that the exemption under Notification No.7/2018-CE does not apply to the goods manufactured on or before 01.02.2018 and cleared on or after 02.02.2018 - (Refer Sl. No.7 above) 15 15/2018- CE 02.02.2018 Amendment to the effect that the exemption under Notification No.8/2018-CE does not apply to the goods manufactured on or before 01.02.2018 and cleared on or after 02.02.2018 - (Refer Sl. No.8 above) 16 16/2018- CE 02.02.2018 Amends Notification No. 11/2017-CE dated 30.06.2017 to the effect that the exemption on Petrol, Diesel, ethanol-blended petrol and Bio- diesel [Entry Nos.2 to 6 of the notification] does not apply to the goods manufactured on or before 01.02.2018 and cleared on or after 02.02.2018 - (Refer Sl.No.1 to 5 above) 2.1 Consequent to the issue of aforesaid notifications, the changes in duties applicable to Petrol and Diesel are summarised in the Table below, for ease of reference: Item Duty rates applicable upto 01.02.2018 [Rs. per litre] Duty rates applicable from 02.02.2018 [Rs. per litre] Product Basic Excise Duty (BED) AED (Road Cess) SAED Total Excise Duty Basic Excise Duty (BED) Road and Infrastructure Cess SAED Total Excise Duty Petrol (unbranded) 6.48 6 7 19.48 4.48 8 7 19.48 Petrol (branded) 7.66 6 7 20.66 5.66 8 7 20.66 Diesel (unbranded) 8.33 6 1 15.33 6.33 8 1 15.33 Diesel (branded) 10.69 6 1 17.69 8.69 8 1 17.69 3. This Trade Notice is being issued so as to sensitize the trade and field formations about the salient features of the aforesaid references and for complete details, the respective references may please be referred in the CBEC's website www.cbec.gov.in. 4. All the Commissioners are requested to bring the contents of the Trade Notice to the notice of all the officers working under their charge and the assessees falling under their respective jurisdiction. 5. The Trade Industry Associations/ Chambers of Commerce are requested to bring the contents of the Trade Notice to the notice of all their members. [C.P. RAO] PRINCIPAL CHIEF COMMISSIONER