Ethanol blended petrol – retrospective exemption likely
The exemption to ethanol and ethanol blended petrol had caused quite a confusion. This was a notification with a sun set clause and the Board never woke up before sunset, with the result that the exemption used to get lapsed regularly, only to be revived later after representations and protests from the Oil companies. Please see our stories - LAPSED LAPSE RECTIFIED: ETHANOL BLENDED PETROL EXEMPTED and 'Duty Concession for ethanol mixed petrol: Lapse or lapsed'
But what happens during the period when the Board forgot to extend the exemption. The natural process should have been to give a Section 11C notification, but Board in its wisdom had decided that this is not a fit case for granting the retrospective exemption – may be somebody had to explain why the exemption was not extended on time.
But Board is in for a reconsideration and advises the field to restrain from any coercive action immediately. The Board letter says,
“However, on a representation from the Ministry of Petroleum and Natural Gas, the matter is being re-examined, therefore, it is requested that no coercive action should be taken for recovery of dues on demand confirmed on ethanol blended petrol for the above mentioned period.”
CBEC’sF.No. 83/7/2004 – CX.3 dated 1.8.2006