GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF EXCISE & CUSTOMS
Circular No. 1034/22/2016-CX
New Delhi 1st July, 2016
Subject: Clearance of bunker fuels to Indian Ship/Vessel
carrying containerized cargo-reg.
I am directed to refer to Sl. No. 65A of
notification no. 12/2012-CE
dated 17.03.2012 as amended whereby clearance of bunker fuels (i) IFO
180 CST (ii) IFO 380 CST, for use in ships or vessels has been permitted
without payment of Central Excise duty subject to the conditions
specified under Sl. No. 52 of the annexure to the notification. In this
connection, trade has requested that a procedure be prescribed for
supply of bunker fuel for such use from bonded stocks of bunker fuel
being maintained by the Oil Manufacturing Companies (OMCs) at the ports
located in the coastal areas where the specified ships/ vessels operate.
2.1 The issue has been examined. To facilitate dispensation of bunker
fuel from existing export warehouse for petroleum products, warehousing
facility is being extended to the bunker fuel for consumption as per
exemption under Sl. No. 65A of
notification no 12/2012-CE dt 17.3.2012.
Existing warehouses from where bunker fuel would be dispensed shall be
deemed to be registered under Central Excise. The existing warehousing
and export warehousing procedures prescribed shall be followed mutatis
mutandis for clearance of bunker fuel from refinery to the warehouses of
the OMCs and for further supply to the eligible ships and vessels.
(Circular no 579/16/2001-CX dated 26-6-2001,
circular no. 581/18/2001-CX
dated 29.06.2001 and
circular no. 798/31/2004-CX dated 8.9.2004 refers.)
2.2 In pursuance of powers conferred under sub-rule (2) of rule 20 of
the Central Excise Rules, 2002 read with the conditions in the exemption
notification (ibid), Board specifies the following procedure and
conditions for supply of indigenous bunker fuel namely, IFO 180 CST and
IFO 380 CST, without payment of Central Excise duty from the warehouse
of the OMCs to the eligible ships/vessels under
notification no
12/2012-CE dated 17.03.2012.
Procedure for availing exemption
3.1. The Master of the eligible Indian Ship/vessel or his authorised
agent shall submit two copies of the undertaking to the OMCs, from which
it intends to procure bunker fuel, in the format enclosed as Annexure A.
A copy of registration certificate of the ship and fuel consumption rate
certificate shall be enclosed with the undertaking. The undertaking
shall be submitted only once and in case of any change in the details, a
new undertaking shall be submitted. OMCs shall retain one copy of the
undertaking and forward second copy to the jurisdictional Assistant or
Deputy Commissioner of Central Excise or Customs, as the case may be, to
whom the undertaking is addressed.
3.2. OMCs shall supply bunker fuel under the provisions of this circular
to ships and vessels registered under the Merchant Shipping Act, 1958
(44 of 1958) flying Indian flag and carrying containerized cargo. OMCs
shall submit a one-time undertaking in the format prescribed as Annexure
B to dispense bunker fuel available in the warehouse in terms of the
conditions of the notifications for the intended purpose only.
3.3 The Master of the eligible Indian ship/vessel or his authorised
agent on each filling of the bunker fuel shall give a dated
acknowledgment of the receipt of bunker fuel to the OMCs. Such
acknowledgment can even be given on the copy of delivery note/challan or
sale invoice retained by the OMCs.
3.4 Liability of duty, interest and penalty arising out of violation of
the condition of the notification shall shift to the Master of the
Vessel, once dated acknowledgment of the receipt of bunker fuel is given
to the OMC concerned.
Submission of utilisation certificate
4.1 The Master of the ship/vessel or his agent shall submit a
utilization certificate to the OMCs from whom they obtained bunker fuel
in the format enclosed as Annexure C. Utilization certificate shall be
submitted for each quarter of the year within two months of completion
of the quarter.
4.2 In case of non-receipt of utilisation certificate within the
stipulated period, the OMC shall submit details of the supplies for
which utilization certificate has not been received, within one month of
the period prescribed for submission of utilization certificate. For
example, for the quarter of April to June, 2016, utilization certificate
shall be submitted by the Master of the Vessel or his agent, by end of
August, 2016 and in case of non-receipt of utilization certificate, OMCs
shall submit necessary details of non-receipt of utilization certificate
to the Assistant/Deputy Commissioner by the end of September, 2016.
Reconciliation and recovery
5.1 Assistant/Deputy Commissioner shall write to the Master of the Ship
or Vessel or his agent from whom utilization certificate has not been
received to submit the same within thirty days with a copy to the OMCs,
failing which recovery proceedings would be initiated.
5.2 In cases where utilization certificate is not received even after
expiry of thirty days as prescribed in para 5.1, demand for recovery of
duty, interest and penalty, in terms of the undertaking submitted to
avail the exemption read with the provisions of the Central Excise Act,
1944 shall be initiated against the Master of the Vessel. Similar action
would follow in cases where bunker fuel is not used for the intended
purpose. However, in cases where utilization certificate is received, no
further action would be necessary.
Removal of difficulties by Commissioner
6. The jurisdictional Commissioner of Central Excise, in order to remove
any difficulty in implementation of the procedure, issue suitable orders
to remove the difficulty within the overall framework of law and the
procedure prescribed by this circular.
(Rohan)
Under Secretary to the Govt. of India
Encl.:Annexure A, B and C
Annexure A (Undertaking by master/Agent of
the Vessel)
(To be submitted only once)
To,
The Assistant/Deputy Commissioner,
....................................... Division,
............................... Commissionerate,
(Address)
Through : ............................... (Name and address of the
OMC owning the warehouse)
Subject: Undertaking to use bunker fuel for
intended purpose - reg.
Madam/Sir,
I ........................ master/authorized agent of Ship/Vessel. V
............................ (Reg.No.) flying Indian flag and capable of
carrying containerized cargo, intend to avail benefit of exemption of
Central Excise duty available to bunker fuel vide
Sl. No.65A of
notification no. 12/2012-CE dated 17-3-2012, I
understand that the exemption from the Central Excise duty available to
the bunker fuel, as specified in the notification, is available for
intended use only and is contingent upon fulfillment of conditions
prescribed at Sl. No. 52 of the annexure to the notification.
Certificated evidencing registration and class of ship and consumption
rate of fuel are enclosed.
2. I undertake to use bunker fuel received under exemption as
prescribed in the notification and to submit utilization certificate as
prescribed by the Circular No. 1034/22/2016-CX dated
01.07.2016. In case of failure to comply with any of the conditions
prescribed in the notification or on non-submission of utilization
certificate, I undertake to pay duty, interest and penalty in terms of
Central Excise Act, 1944, read with this undertaking, submitted in terms
of condition prescribed to avail the exemption.
Yours sincerely,
(Name and designation)
(Master of the Vessel or Authorised Agent/Signatory)
F.No.83/1/2015-CX.3 (Pt.)
Date and Place.
Encl: (i) Certificate of registration and class.
(ii) Certificate showing rate of fuel.
Annexure B (Undertaking by OMCs)
(To be submitted only once)
To,
The Assistant/Deputy Commissioner,
.................... Division, ...................... Commissionerate,
(Address)
Subject: Undertaking to dispense bunker fuel
to eligible ships - reg
Madam/Sir,
I ...............authorized signatory of the
warehouse.............undertake to dispense bunker fuel exempted vide
Sl. No. 65A of
notification no. 12/2012-CE dt
17-3-2012, following the conditions prescribed in the notification
and the procedure prescribed by the Circular No. 1034/22/2016-CX
dated 01.07.2016.
2. In case of failure to comply with the conditions in the
notification, I undertake to pay duty, interest and penalty in terms of
Central Excise Act, 1944, read with this undertaking, submitted in
terms of conditions prescribed to avail the exemption.
Yours sincerely,
Date and Place
(Name and designation)
(Annexure C) Utilization Certificate
(To be submitted quarterly)
1. Vessel Name :
2. Owner/Operator:
3. Fuel Oil taken from the OMC the
quarter............................ (Company's Name and address) during
the quarter.............................................,
Sl no. |
Bunker fuel type |
Challan/Invoice no |
Date |
Quantity |
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I, ..........................., Master/Agent of the vessel
...................., resident of
.................................certify that the bunker fuel oil as
detailed above has been consumed for the intended purpose and balance
quantity not consumed is lying in the vessel which shall also be used
for the intended purpose. During this period the ship/vessel has
travelled a total of...............nautical miles. Record of voyages
(voyage no, source and destination), EXIM and domestic containers
carried, and fuel consumption rate are available in our records from
which I have ascertained and am satisfied that this utilization
certificate is true to the best of my knowledge and belief.
(Name and designation)
Date and Place
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