The Central Board of Indirect Taxes and Customs (CBIC) on June 22, 2021 has issued a circular for the applicability of central excise exemption on ethanol/ methanol blended petrol and high speed diesel blended with bio-diesel, when blending is done with refinery.
The following conditions have been given:
• Appropriate duties of excise have been paid on portion of motor spirit (commonly known as petrol) which is a specified percentage of the blend.
• Appropriate GST (Central tax, State tax, Union Territory Tax or integrated tax) have been paid on portion of ethanol or methanol, as the case may be, which is which is a specified percentage of the blend.
• Ethanol/Methanol blended petrol is conforming to the Bureau of Indian Standards Specification.
Thus, it is clarified that the notifications grant exemption to the ethanol/ methanol blended petrol provided that the Central Excise duty (including applicable cesses) is paid on motor spirit (petrol) and GST is paid on ethanol/methanol, used in producing the blended fuel. The above clarification will also be applicable for High-speed diesel oil blended with alkyl esters of long chain fatty acids obtained from vegetable oils, commonly known as bio – diesel.
[Circular No. 1078/02/2021-CX]
