MANU/EXCR/0002/2021

Ministry : Ministry of Finance

Department/Board : Central Board of Indirect Taxes and Customs

Circular No. : 1078/02/2021-CX

Date : 22.06.2021

Notification/ Circulars Referred : Notification No. 15/2003- C.E., dated 1-3-2003 MANU/EXCT/0067/2003

Citing Reference:
Notification No. 15/2003- C.E., dated 1-3-2003 MANU/EXCT/0067/2003  Referred

To

All Principal Chief Commissioners/ Chief Commissioners of Customs & GST
All Principal Director Generals/ Director Generals of Customs & GST

Madam/Sir,

Applicability of Central Excise exemption on Ethanol/ Methanol blended Petrol, and high-speed diesel blended with bio-diesel, when blending is done within the refinery

References have been received seeking clarification on applicability of exemption from Basic Excise duty and other cesses, under different notifications, in case the blending of motor spirit (commonly known as petrol) and ethanol or methanol, is done within the refinery.

2. The matter has been examined. Exemption from Basic Excise Duty, Road and Infrastructure cess (RIC), Special Additional Excise Duty (SAED) and Agricultural and Infrastructure and Development Cess (AIDC), in all such notifications, on the blended fuel, is subject to the following conditions:

i. Appropriate duties of excise have been paid on portion of motor spirit (commonly known as petrol) which is a specified percentage of the blend (as specified in the relevant notification);

ii. Appropriate GST (Central tax, State tax, Union Territory Tax or integrated tax) have been paid on portion of ethanol or methanol, as the case may be, which is which is a specified percentage of the blend (specified in the relevant notification) and

iii. Ethanol/Methanol blended petrol is conforming to the Bureau of Indian Standards Specification, as specified in the relevant notification.