SUBHEADING NOTES
- For the purposes of sub-heading 2701 11 “anthracite” means coal having a volatile matter limit (on a dry, mineral-matter-free basis) not exceeding 14%.
- For the purposes of sub-heading 2701 12, “bituminous coal” means coal having a volatile matter limit (on a dry, mineral-matter-free basis) exceeding 14% and a calorific value limit (on a moist, mineral-matter-free basis) equal to or greater than 5,833 Kcal/Kg.
- For the purposes of sub-headings 2707 10, 2707 20, 2707 30, 2707 40 and 2707 60, the terms “benzol (benzene)”, “toluol (toluene)”, “xylol (xylenes)”, “naphthalene” or “phenols” apply to products which contain more than 50% by weight of benzene, toluene, xylene, naphthalene or phenols, respectively.
- For the purposes of sub-heading 2710 11, “light oils and preparations” are those of which 90% or more by volume (including losses) distil at 2100C (ASTM D 86 method).
- For the purposes of the sub-heading of heading 2710 the term “biodiesel” means mono-alkyl esters of fatty acids of a kind used as a fuel, derived from animal or vegetable fats and oils whether or not used.
SUPPLIMENTRY NOTES
In this Chapter, the following expressions have the meanings hereby assigned to them :
(a) “motor spirit” means any hydrocarbon oil (excluding crude mineral oil) which has its flash point below 250C and which either by itself or in admixture with any other substance, is suitable for use as fuel in spark ignition engines. “Special boiling point spirits (tariff items 2710 11 11, 2710 11 12 and 2710 11 13 )” means light oils, as defined in Sub-heading Note 4, not containing any anti-knock preparations, and with a difference of not more than 600C between the temperatures at which 5% and 90% by volume (including losses) distil;
(b) “natural gasoline liquid (NGL)” is a low–boiling liquid petroleum product extracted from Natural Gas;
(c) “superior kerosene oil (SKO)” means any hydrocarbon oil conforming to the Indian Standards Specification of Bureau of Indian Standards IS : 1459-1974 (Reaffirmed in the year 1996);
(d) “aviation turbine fuel (ATF)” means any hydrocarbon oil conforming to the Indian Standards Specification of Bureau of Indian Standards IS : 1571:1992:2000;
(e) “high speed diesel (HSD)” means any hydrocarbon oil conforming to the Indian Standards Specification of Bureau of Indian Standards IS: 1460:2000;
(f) “light diesel oil (LDO)” means any hydrocarbon oil conforming to the Indian Standards Specification of Bureau of Indian Standards IS: 1460;
(g) “fuel oil” means any hydrocarbon oil conforming to the Indian Standards Specification of Bureau of Indian Standards IS:1593:1982 (Reaffirmed in the year 1997);
(h) “lubricating oil” means any oil, which is ordinarily used, for lubrication, excluding any hydrocarbon oil, which has its flash point below 93.3º C;
(i) “jute batching oil” and “textile oil” are hydrocarbon oils which have their flash point at or above 93.3ºC, and is ordinarily used for the batching of jute or other textile fibers;
(j) the expression “petroleum jelly crude” (tariff item 2712 10 10) shall be taken to apply to petroleum jelly of a natural colour higher than 4.5 by the ASTM D 1500 method;
(k) for the purposes of these additional notes, the tests prescribed have the meaning hereby assigned to them :
(1) “Flash Point” shall be determined in accordance with the test prescribed in this behalf in the rules made under the Petroleum Act, 1934 (30 of 1934);
(2) “Smoke Point” shall be determined in the apparatus known as the Smoke Point Lamp in the manner indicated in the Indian Standards Institution specification IS:1448 (p. 31)-1967 as for the time being in force;
(3) “Final Boiling Point” shall be determined in the manner indicated in the Indian Standards Institution specification IS:1448 (p.18)-1967 as for the time being in force;
(4) “Carbon Residue” shall be determined in the apparatus known as Rams bottom Carbon Residue Apparatus in the manner indicated in the Indian Standards Institution specification IS:1448 (p. 8)-1967 as for the time being in force;
(5) “Colour Comparison Test” shall be done in the following manner, namely :
(i) first prepare a five per cent. weight by volume solution of Potassium Iodine (analytical reagent quality) in distilled water;
(ii) to this, add Iodine (analytical reagent quality) in requisite amount to prepare an exactly 0.04 normal Iodine solution;
(iii) thereafter, compare the colour of the mineral oil under test with the Iodine solution so prepared.
EXEMPTION NOTIFICATIONS
Effective rates of special additional duty on motor spirit and high speed diesel .
In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944) read with sub-section (3) of section 147 of the Finance Act, 2002 ( 20 of 2002), and in super session of the notification of the Government of India in the Ministry of Finance( Department of Revenue) No 19/2002-Central Excise, dated the 1st March , 2002 [ G.S.R 140(E), dated the 1st March, 2002], the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts goods falling within the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) and specified in column(2) of the Table hereto annexed, from so much of the special additional excise duty leviable thereon under sub-section(1) of section 147 of the said Finance Act, as is in excess
of the amount indicated in the corresponding entry in column (3) of the said Table,
namely:-
TABLE
S.No Description of goods Rate
(1) (2)
(3)
1. Motor spirit , commonly known as petrol Rupees six
per liter
2. High speed diesel oil Nil
3. 5% ethanol blended petrol that is a blend.- Nil
(a) consisting, by volume, of 95% Motor spirit,
(commonly known as petrol) on which the appropriate duties of excise have been paid and, of 5% ethanol on
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SECTION V CHAPTER 27
which the appropriate duties of excise have been paid, and
b) conforming to Bureau of Indian Standards specification 2796.
Explanation : For the purposes of thus exemption “appropriate duties of excise” shall mean the duties of excise leviable under the First Schedule and Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) the additional duty of excise of excise leviable under section 111 of the Finance (No. 2) Act,
1998 (21 of 1998) and the special additional excise duty leviable under section 147 of the Finance Act, 2002 (20 of 2002), read
with any relevant exemption notification for the time being in force
[Ntfn. 28/02-CE, Dated. 13.5.02 as amended by Ntfn. Nos.62/02, 16/03, 12/04 and
40/04]
Exemption to Motor Spirit falling under Heading No. 27.10, intended for use in ethanol blended petrol:
In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1of 1944), the Central Government hereby exempts Motor Spirit (commonly known as petrol) (hereinafter referred to as said goods), falling under heading No.27.10
of the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) (hereinafter referred to as said Schedules), manufactured in and cleared from an oil refinery or cleared from a registered warehouse, intended for use in ethanol blended petrol, that is, a blend,
a) consisting, by volume, of 95% Motor spirit, (commonly known as petrol) and of 5% ethanol; and
b) conforming to Bureau of Indian Standards specification 2796 from so much of the duty of excise leviable thereon under the said Schedules, as is in excess of the duty that would have been leviable on such goods under the said Schedules, if sold by the manufacturer for delivery at the time of removal of such goods or at any other time nearest to the removal of such goods, where the manufacturer and the buyer are not related and the price is the sole consideration.
[Ntfn. No. 37/04-CE., Dated. 4.8.2004]
Exemption to ethanol blended petrol from Additional Duty of Excise:
In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), read with sub-section (3) of section 111 of the Finance (No
2) Act, 1998 ( 21 of 1998) the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts 5% ethanol blended petrol that is a blend ,-
a) consisting, by volume, of 95% Motor spirit, (commonly known as petrol), on which the appropriate duties of excise have been paid and, of 5% ethanol on which the appropriate duties of excise have been paid; and
b) conforming to Bureau of Indian Standards specification 2796, from the whole of the additional duty of excise leviable thereon.
Explanation.- For the purposes of this exemption “appropriate duties of excise” shall mean the duties of excise leviable under the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), the additional duty of excise
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SECTION V CHAPTER 27
leviable under section 111 of the Finance (No.2) Act, 1998 (21 of 1998), and the special additional excise duty leviable under section 147 of the Finance Act, 2002 ( 20 of 2002), read with any relevant exemption notification for the time being in force.
[Ntfn. No. 38/04-CE., Dated. 4.8.2004]
Exemptions petroleum oils and oils obtained from bituminous minerals, crude, from whole of the National Calamity Contingent Duty under specified conditions.
In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act 1944 (1 of 1944), read with section 136 of the Finance Act, 2001 (14 of 2001), the Central Government being satisfied that it is necessary in the public interest so to do, hereby exempts, petroleum oils and oils obtained from bituminous minerals, crude, produced either in the fields under the Production Sharing Contracts, specified in column (2) of the Table below or in the exploration blocks offered under the New Exploration Licensing Policy (NELP) through competitive international bidding, from the whole of the National Calamity Contingent Duty leviable thereon under section 136 of the said Finance Act 2001, read with section 169 of the Finance Act, 2003 (32 of 2003).
TABLE
S.No Name of the field under Production Sharing Contracts
1. Panna and Mukta fields
2. Ravva field
3. Kharsang field
4. Mid and South Tapti fields
5. Hazira field
6. Bhandut field
7. Matar field
8. Sabarmati field
9. Cambay field
10. Indrora field
11. Bakrol field
12. Lohar field
13. Dholka field
14. Wavel field
15. Baola field
16. Asjol field
17. PY-I field
18. North Balol field
19. Allora field
20. Unawa field
21. Dholsan field
22. Kanwara field
23. Modhera field
24. Amguri field
25. North Kathana field
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SECTION V CHAPTER 27
S.No Name of the field under Production Sharing Contracts
26. Sanganpur field
EXEMPTION NOTIFICATIONS FOR EXCISE & ADDITIONAL DUTY OF EXCISE
140. (1) In the case of goods specified in the Eight Schedule, being goods manufactured, there shall be levied, and collected, for purposes of the Union, by surcharge, a duty of excise, to be called the Special Additional Excise Duty, at the rates specified in the said Schedule.
(2) The Special Additional Excise Duty chargeable on goods specified in the Eighth Schedule shall be additional to any other duties of excise chargeable on such goods under the Central Excise Act, 1944 or any other law for the time being in force.
(3) The provisions of the Central Excise Act, 1944 and the rules made thereunder, including those relating to refunds and exemptions from duties and imposition of penalty, shall, as far as may be, apply in relation to the levy and collection of the Special Additional Excise Duty leviable under this section in respect of the goods specified in the Eighth Schedule, as they apply in relation to the levy and collection of the duties of excise on such goods under that Act, or those rules, as the case may be.
ADDITION DUTY OF EXCISE
ADDITIONAL DUTY ON MOTOR SPIRIT (PETROL)
[See S.111 of Finance (No.2) Act, 1998 (21 of 1998), as amended by Section 159 of the Finance Bill, 2003 and Section 119 of the Finance Bill, 2005]
111. (1) In the case of goods specified in the Second Schedule, being goods manufactured in India, there shall be levied and collected as an additional duty of excise an amount calculated at the rate set forth in the said Schedule.
(2) The additional duty of excise referred to in sub-section (1) shall be in addition to any other duties of excise chargeable on such goods under the Central Excise Act, or any other law for the time being in force.
(3) The provisions of the Central Excise Act and the rules and regulations made thereunder, including those relating to refunds and exemptions from duties, shall, as far as may be, apply in relation to the levy and collection of the additional duty of excise leviable under this section in respect of any goods as they apply in relation to the levy and collection of the duties of excise on such goods under that Act or those rules and regulations, as the case may be.
(4) The additional duty of excise leviable under sub-section (1) shall be for the purposes of the Union and the proceeds thereof shall not be distributed among the States.
THE SECOND SCHEDULE
[See sections 103(1) and 111(1)]
Item No. Description of goods Rate of duty
(1) (2) (3)
1 Motor spirit commonly known as petrol Rupee two
per liter
ADDITIONAL DUTY ON HIGH SPEED DIESEL OIL
(Section 133 of Finance Act, 1999, as amended by Section 160 of the Finance Bill, 2003. and Section 120 of Finance Bill, 2005)
133. (1) In the case of goods specified in the Second Schedule, being goods manufactured in India, there shall be levied and collected as an additional duty of excise an amount calculated at the rate set forth in the said Schedule.
(2) The additional duty of excise referred to in sub-section (1), shall be in addition to any other duties of excise chargeable on such goods under the Central Excise Act, or any other law for the time being in force.
(3) The provisions of the Central Excise Act and the rules made thereunder, in-
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Including those relating to refunds and exemptions from duties, shall, as far as may be, apply in relation to the levy and collection of the additional duty of excise leviable under this section in respect of any goods as they apply in relation to the levy and collection of the duties of excise on such goods under that Act or those rules, as the case may be.
(4) The additional duty of excise leviable under sub-section (1), shall be for the purposes of the Union and the proceeds thereof shall not be distributed among the States.
THE SECOND SCHEDULE
[See sections 116(1) and 133(1)]
Item No. Description of goods Rate of duty
(1) (2) (3)
1 High speed diesel oil Rupee two per liter