This CBIC Notification No. 56/2026-Central Excise, dated October 31, 2026, amends the existing Notification No. 08/2026-Central Excise, dated March 26, 2026.
Key Statutory Clarifications & Analysis
1. RBI-Permitted Set-Off Transactions
The primary purpose is to revise the Special Additional Excise Duty (SAED) rate applicable to exports of Aviation Turbine Fuel (ATF) from India.
2. Specifically
The SAED rate on ATF exports has been increased from its previous value to Rs.
Point 3
11 per litre.
Point 4
This amendment is made under the powers conferred by Section 5A of the Central Excise Act, 1944, read with Section 147 of the Finance Act, 2002, indicating the government's intent to adjust export duties on specific petroleum products based on prevailing market conditions or revenue considerations.
Point 5
The notification comes into force immediately upon its publication in the Official Gazette, i.e., October 31, 2026.
Point 6
For exporters of ATF, this signifies an immediate increase in their tax liability, directly impacting their export competitiveness and profitability margins.
Procedural Changes & Compliance Impact
- The Special Additional Excise Duty (SAED) rate on exports of Aviation Turbine Fuel (ATF) has been revised.: The SAED rate on ATF exports is now fixed at Rs. 11 per litre, replacing the previous entry in the principal notification.
- Amendment to Notification No. 08/2026-Central Excise, dated March 26, 2026.: This notification specifically targets and modifies the SAED rate for ATF exports as listed under serial number 1 in the Table of the principal notification.
- Effective date of the amendment.: The revised SAED rate of Rs. 11 per litre on ATF exports is effective from October 31, 2026, the date of publication in the Official Gazette.
- Increased tax liability for ATF exporters.: Exporters of ATF will face higher tax outgo on their shipments, potentially affecting their pricing strategies and global competitiveness.