Budget 2021 - CBIC prescribe effective rate of Special Additional Excise Duty for Petrol and Diesel

Last updated: 03 February 2021

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The Central Board of Indirect Taxes and Customs (CBIC) has announced new effective rates for the Special Additional Excise Duty on petrol and diesel. These changes, outlined in Notification No. 02/2021-Central Excise, will come into effect on 2nd February 2021. The duty on petrol has been set at Rs. 11 per litre, and the duty on diesel is now Rs. 8 per litre. These new rates do not apply to goods manufactured on or before 1st February 2021.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)

Notification No. 02/2021-Central Excise

New Delhi, the 1^st February, 2021

G.S.R.84(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 makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue) No. 05/2019-Central Excise, dated the 6^th July, 2019, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 488(E), dated the 6^th July, 2019, namely:-

In the said notification, in the Table, –

(i) against Sl. No. 1, in column (4), for the entry, the entry “Rs. 11 per litre” shall be substituted;

(ii) against Sl. No. 2, in column (4), for the entry, the entry “Rs. 8 per litre” shall be substituted;

2. This notification shall come into force on the 2^nd February, 2021.

3. Nothing contained in this notification shall apply to the goods manufactured on or before the 1^st February, 2021 and cleared on or after the 2^nd February, 2021.

[F.No.334/02/2021-TRU]

(Rajeev Ranjan)
Under Secretary to the Government of India

Note. – The principal notification No. 05/2019-Central Excise, dated the 6^th July, 2019 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number 488(E), dated the 6^th July, 2019 and last amended vide notification No. 5/2020-Central Excise, dated the 5^th May, 2020, vide number G.S.R. 278(E), dated the 5^th May, 2020.

FAQ :

The new effective rate for the Special Additional Excise Duty on petrol is Rs. 11 per litre.

The new effective rate for the Special Additional Excise Duty on diesel is Rs. 8 per litre.

These new rates come into effect on 2nd February 2021.

Yes, these new rates do not apply to petrol or diesel manufactured on or before 1st February 2021 but cleared on or after 2nd February 2021.

Notification No : 02/2021-Central Excise
Source : https://www.cbic.gov.in/resources//htdocs-cbec/excise/cx-act/notifications/notfns-2021/cx-tarr2021/ce02-2021.pdf

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