| 2709 |
w.e.f. 1 May 2022- BCD against tariff items 2709 00 90, the entry substituted by “Free”;
[Clause 98(b) of Finance Act 2022]
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| Budget 2021: In Chapter 27, for heading 2709, tariff items 2709 10 00 and 2709 20 00 and the entries relating thereto, the following shall be substituted with effect from the 1st day of April, 2021
[Schedule Change by Sec 95(ii) of Finance Bill 2021 w.e.f. 1 April 2021]
|
| Petroleum crude in heading 2709 00 10
[SNo(1) in Ntfn 52-Customs/2017 dated 30.06.2017 as amended by 24/31.03.2021] |
| Exemption on Imports of Petroleum Crude and ATF from Whole of the Additional Duty of Customs leviable thereon under sub-section (1) of Section 3 of the said Customs Tariff Act, as is equivalent to the Special Additional Excise
[Notification No. 32/2022-Customs dated 30th June, 2022, See full text of notification under heading 2710]
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| SAED Exempt on Crude Petroleum Produced by a Person whose Annual Production of the said Goods during the Preceding Financial Year was less than Two Million Barrels
[Notification No. 06/2022-Central Excise dated 30th June, 2022]
G.S.R. ......(E). - In exercise of the powers conferred by section 5A of the Central Excise Act, 1944 (1 of 1944) read with section 147 of Finance Act, 2002 (20 of 2002), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the crude petroleum, falling under heading 2709 of the of the Fourth Schedule to the Central Excise Act, 1944 (herein after referred to as “the said goods” produced by a person whose annual production of the said goods during the preceding Financial Year was less than two million barrel, from the whole of the Special Additional Excise Duty leviable thereon under section 147 read with the Eighth Schedule to the said Finance Act, 2002.
2. This notification shall come into force on the 1st day of July, 2022.
[F. No. 354/15/2022-TRU]
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| SAED Exempt on Crude Produced by a Person which is in Excess of Crude Petroleum Oil Produced by such Person during the Preceding Financial Year
[Notification No. 07/2022-Central Excise dated 30th June, 2022]
G.S.R. ......(E). - In exercise of the powers conferred by section 5A of the Central Excise Act, 1944 (1 of 1944) read with section 147 of Finance Act, 2002 (20 of 2002), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the crude petroleum, falling under heading 2709 of the of the Fourth Schedule to the Central Excise Act 1944, produced by a person which is in excess of crude petroleum oil produced by such person during the preceding Financial Year, from the whole of the Special Additional Excise Duty leviable thereon under section 147 read with the Eighth Schedule to the said Finance Act, 2002.
Explanation: For the Financial year, 2022-23, the Special Additional Excise Duty shall not apply to such quantity that is produced by a person immediately after exceeding his production of crude petroleum oil during the Financial Year 2021-22.
2. This notification shall come into force on the 1st day of July, 2022.
[F. No. 354/15/2022-TRU]
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| Budget 2019: A nominal BCD of Re. 1 per tonne is being imposed on imported Petroleum crude falling under tariff item 2709 00 00. Presently the tariff item 2709 00 00 is exempt from BCD (S. No. 145 of notification No. 50/2017- Customs, dated 30th June, 2017 and Sl. No. 1 of notification No. 52/2017- Customs, dated 30th June, 2017). The entry at S. No. 145 of notification No. 50/2017-Customs, dated 30th June, 2017 is being omitted. The amended rate of BCD would be effective from Sl. No. 1 of notification No. 52/2017- Customs, dated 30th June, 2017 as amended vide notification No. 20/2019-Customs, dated 6th July, 2019. (It is alleged that NCCD cannot charged on crude since basic duty is exempt. The normal duty of Re. 1 per MT seeks to overcome this). |
| Note: Crude and Four Petro Products (Petrol, Diesel, ATF, Natural Gas are outside the GST. These are under CVD of Excise [Sec 3(1)] of CTA, 1975 and SAD [Sec 5(3)] of CTA, 1975 with CENVAT Credit. The rest of the Petro Products are in GST net under the IGST mechanism with full ITC. There is no linkage between Excise and IGST, the two operate independent of each other. |
| NCCD in this Heading |
| OID Cess of 20%
Oil Industries Development Cess levied on domestically produced crude oil under the Oil Industry (Development) Act, 1974 is being reduced from Rs.4500 PMT to 20% ad valorem. This change will come into force with effect from the date of assent to the Finance Bill, 2016. Till the enactment of the Finance Bill, 2016, Notification prescribing 20% effective rate of OID Cess will be issued by Ministry of Petroleum & Natural Gas. [Ref: SNo. 1 of Schedule to OIDA, 1974]
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| CVD of Excise on Crude in heading 2709 exempted by Central Excise Schedule. |
