Leviability of Cess on Natural Gas - Instructions regarding - Central Excise - 21/91-CX.8

Circular No. 21/91-CX.8 Dated 17-11-1998 [From F. No. 262/5/91-CX.8] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Leviability of Cess on Natural Gas - Instructions regarding. Reference to various references received from different Collectorates on the above subject. 2. The issue has been examined comprehensively. It is observed that unlike the notifications of Customs and Central Excise, where Government can exempt some part of the tariff rates of duty, Section 15 of the Oil Industry (Development) Act, 1974 requires the government to fix a rate of cess on Natural Gas not exceeding the tariff rate. Since no such notification fixing a rate on Natural Gas has been issued till date by the Government, it can be concluded that no such rate exists and thus there is no need to collect cess on Natural Gas. Protective demands issued, if any, as this amount may please be finalised accordingly. 3. The instructions contained in paras 149 and 150 in petroleum products manual may be reads as amended accordingly.