Export under bond - AED on Motor spirit and HSD
An issue before the Board was whether
(a) AED on Motor Spirit levied under section 111 of the Finance Act, 1998 read with section 167 of the Finance Act, 2003.
(b) AED on High Speed Diesel (w.e.f. 1.3.1999) under Section 133 of the Finance Act, 1999 read with section 168 of the Finance Act, 2003.
(c) SAED on Motor Spirit under section 147 of the Finance Act, 2002.
are required to be paid while exporting goods under bond. Board has now emphatically clarified that these additional duties are NOT required to be paid while exporting under bond. A good clarification indeed! But this leaves a major question yet to be answered. Will this facility be allowed for clearances to EOUs which are deemed exports? Many EOUs are made to pay these additional duties. Recently a Development Commissioner was heard lamenting that many in the country did not even know what these additional duties are but the poor EOUs are made to pay them. Let us hope the good Board will clarify this too.
CIRCULAR NO. , Dated: February 10, 2005