Central Excise -Complicated Exemption to RBD Palm Stearin, biodiesel
THE Central Government has issued an amending notification -
++ to exempt excise duty on RBD Palm Stearin, Methanol and Sodium Methoxide for the manufacture of bio-diesel (alkyl ester of long chain fatty acids obtained from vegetable oils, commonly known as biodiesels) on actual user basis for a period upto and inclusive of 31st March, 2017;
++ to withdraw excise duty exemption on biodiesel with effect from 1st April, 2017; and
++ to levy 6% excise duty on biodiesel and its inputs namely, RBD Palm Stearin, Methanol and Sodium Methoxide with effect from 1st April, 2017.
This is as complicated as it can be.
1. Alkyl esters of long chain fatty acids obtained from vegetable oils, commonly known as bio-diesels are exempted by Sl. No. 113 of the table to Notification No. 12/2012-CE, dated 17th March, 2012. Now this exemption will be valid only up to 31st March, 2017.
2. a. RBD Palm Stearin, Methanol and Sodium Methoxide for use in the manufacture of alkyl esters are exempted by Sl. No 113A. But that was only up to 31 st March 2016. So, this has expired on 1 st April 2016.
b. They have reinserted the same exemption as Sl. No. 113B with a condition that the exemption will lapse on 31 st March 2017.
c. These goods will attract a duty of 6% from 1st April 2017 as per the newly inserted Sl. No. 113D of the notification.
Those boys in TRU must be really brilliant to make and amend such notifications.
Notification No. , Dated: May 17, 2016