Zero Excise Duty for Bio Diesel Manufacturers Till 31 March 2017

· 6% Excise Duty will Apply from 1 April 2017

Specified biodiesel is exempt from central excise duty. However, its inputs namely, RBD Palm Stearin, Methanol and Sodium Methoxide are chargeable to central excise duty leading to CENVAT credit accumulation. Central excise duty has been exempted on RBD Palm Stearin, Methanol and Sodium Methoxide used in the manufacture of such biodiesel subject to actual user condition for a period upto 31.03.2017. Notification No.23/2015-Central Excise, dated 17.05.2016 may be referred to in this regard.

[Ref: Notification No. 23/2016-Central Excise dated 17 May 2016]

In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 12/2012-Central Excise, dated the 17th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 163(E), dated the 17th March, 2012, namely:-

In the said notification,–

(i) in the opening paragraph after the second proviso the following provisos shall be inserted, namely:–

Provided also that nothing contained in this notification shall apply to the goods specified against serial number 113 of the said Table after the 31st day of March, 2017:

Provided also that nothing contained in this notification shall apply to the goods specified against serial number 113B of the said Table after the 31st day of March, 2017:

Provided also that this notification shall apply to the goods specified against serial number 113C of the said Table with effect from the 1st day of April, 2017:

Provided also that this notification shall apply to the goods specified against serial number 113D of the said Table with effect from the 1st day of April, 2017:

(ii) in the Table, after serial number 113A and the entries relating thereto, the following serial numbers and entries shall be inserted, namely:–

(1)	(2)	(3)	(4)	(5)
“113B	2905 or 3823 11 12	The following goods for use in the manufacture of alkyl esters of long chain fatty acids obtained from vegetable oils, commonly known as bio-diesels, namely:- (i) RBD Palm Stearin (ii) Methanol (iii) Sodium Methoxide.	Nil	2
113C	29 or 38	Alkyl esters of long chain fatty acids obtained from vegetable oils, commonly known as bio-diesels.	6%	-
113D	2905 or 3823 11 12	The following goods for use in the manufacture of alkyl esters of long chain fatty acids obtained from vegetable oils, commonly known as bio-diesels, namely:- (i) RBD Palm Stearin (ii) Methanol (iii) Sodium Methoxide	6%	2”.

[F. No. 332/13/2015-TRU]