No Excise Duty On Ethanol Blended Petrol: CBIC

The government is empowered under sub-section (1) of section 5A of the Central Excise Act, 1944, amended the notification No. 11/2017-Central Excise, dated the 30th June, 2017.

The CBIC has notified that no excise duty is leviable on 12% ethanol blended petrol that is a blend. The ethanol blended petrol consists, by volume, of 88% motor spirit (petrol), on which the appropriate duties of excise have been paid and of 12% ethanol, on which the appropriate central tax, state tax, union territory tax, or integrated tax have been paid.

The excise duty is not payable on 12% ethanol blended petrol that is a blend conforming to the Bureau of Indian Standards specification IS 17586.

The excise duty is not payable on 15% ethanol blended petrol that is a blend consisting, by volume, of 85% motor spirit (petrol), on which the appropriate duties of excise have been paid and of 15% ethanol, on which the appropriate central tax, state tax, union territory tax, or integrated tax, as the case may be, has been paid.

"High speed diesel oil blended with bio-diesel, up to 20% by volume, that is, a blend consisting of 80% or more of high speed diesel oil, on which the appropriate duties of excise have been paid and up to 20% bio-diesel on which the appropriate Central tax, State tax, Union territory tax or Integrated tax, as the case may be, has been paid," the notification read.

Notification No.12/2022-Central Excise

Dated: 04.06.2022

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