Budget 2021: CBIC exempts Agriculture Infrastructure and Development Cess on blended Fuels [Read Notification]

Budget 2021 - CBIC - Agriculture Infrastructure - Development Cess on blended fuels - Taxscan

The Central Board of Indirect Taxes and Customs (CBIC) notified the exemption of Agriculture Infrastructure and Development Cess on blended fuels.

The Central Government being satisfied that it is necessary in the public interest to do so, further amended the notification No. 11/2017-Central Excise, dated the 30th June, 2017.

As per the notification Nil rate of Agriculture Infrastructure and Development Cess on 5 types of blended fuels.

Firstly, 5% ethanol blended petrol that is a blend, 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 Central tax, State tax, Union territory tax or Integrated tax, as the case may be, have been paid.

Secondly, 10% ethanol blended petrol that is a blend consisting, by volume, of 90% Motor spirit, (commonly known as petrol), on which the appropriate duties of excise have been paid and of 10% ethanol on Nil which the appropriate Central tax, State tax, Union territory tax or Integrated tax, as the case maybe, have been paid.

Thirdly, 20% ethanol blended petrol that is a blend consisting, by volume, of 80% motor spirit (commonly known as petrol), on which the appropriate duties of excise have been paid and, of 20% ethanol on which the appropriate Central tax, State tax, Union territory tax or Integrated tax, as the case may be, have been paid.

Fourthly, 15% methanol blended petrol that is a blend consisting of motor spirit (commonly known as petrol), on which the appropriate duties of excise have been paid and of methanol and co-solvents on which the appropriate Central tax, State tax, Union territory tax or Integrated tax, as the case may be, have been paid.

Lastly, High speed diesel oil blended with alkyl esters of long chain fatty acids obtained from vegetable oils, commonly known as bio – diesels, up to 20% by volume, that is, a blend, consisting 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 maybe, have been paid.

The notification shall come into force on the 2nd February, 2021

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