THE FIRST SCHEDULE TO THE CUSTOMS TARIFF ACT, 1975

SECTION V

MINERAL PRODUCTS

CHAPTER 27

Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes

Notes :

1. This Chapter does not cover:

(a) separate chemically defined organic compounds other than pure methane and propane which are to be classified in heading 2711;

(b) medicaments of heading 3003 or 3004; or

(c) mixed unsaturated hydrocarbons of heading 3301, 3302 or 3805.

2. References in heading 2710 to "petroleum oils and oils obtained from bituminous minerals" include not only petroleum oils and oils obtained from bituminous minerals but also similar oils, as well as those consisting mainly of mixed unsaturated hydrocarbons, obtained by any process, provided that the weight of the non-aromatic constituents exceeds that of the aromatic constituents.

However, the references do not include liquid synthetic polyolefins of which less than 60% by volume distils at 3000C, after conversion to 1,013 millibars when a reduced-pressure distillation method is used (Chapter 39).

3. For the purposes of heading 2710, "waste oils" means waste containing mainly petroleum oils and oils obtained from bituminous minerals (as described in Note 2 to this Chapter), whether or not mixed with water. These include:-

(a) such oils no longer fit for use as primary products (for example, used lubricating oils, used hydraulic oils and used transformer oils);

(b) sludge oils from the storage tanks of petroleum oils, mainly containing such oils and high concentration of additives (for example, chemicals) used in the manufacture of the primary products ; and

(c) such oils in the form of emulsions in water or mixtures with water, such as those resulting from oil spills, storage tank washings, or from the use of cutting oils for machining operations.

Sub-heading Notes :

1. For the purposes of sub-heading 2701 11 "anthracite" means coal having a volatile matter limit (on a dry, mineral-matter-free basis) not exceeding 14%.

2. For the purposes of sub-heading 2701 12, "bituminous coal" means coal having a volatile matter limit (on a dry, mineral-matter-free basis) exceeding 14% and a calorific value limit (on a moist, mineral-matter-free basis) equal to or greater than 5,833 kcal/kg.

3. For the purposes oftariff items 2707 10 00, 2707 20 00, 2707 30 00 and 2707 40 00, the terms "benzol", "(benzene)", "toluol" (toluene)", "xylol" (xylenes)" and "naphthalene" apply to products which contain more than 50% by weight of benzene, toluene, xylenes or naphthalene, respectively.

4. For the purposes of sub-heading 2710 12, "light oils and preparations"are those of which 90 % or more by volume (including losses) distil at 210 °C according to the ISO 3405 method (equivalent to the ASTM D 86 method).

5. For the purposes of the sub-headings of heading 2710, the term "biodiesel" means mono-alkyl esters of fatty acids of a kind used as a fuel, derived from animal, vegetable or microbial fats and oils whether or not used.

Supplementary Note :

In this Chapter, reference to any standard of the Bureau of Indian standards refers to the last published version of that standard.

Illustration : IS 1459 refers to IS 1459: 2018 and not to IS 1459: 1974.

EXEMPTION NOTIFICATIONS

ADDITIONAL DUTY - LEVY & EXEMPTIONS

Transformer Oil (Additional Duty) Rules, 1978.

[Notfn. No. 190/78-Cus. dt.22.9.1978 as amended by 32/15].

The Central Government makes the following rules, namely:-

1. Short title and commencement-

(1) These rules may be called the Transformer Oil (Additional Duty) Rules, 1978.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. Levy of additional duty-

For the purpose of sub-section (3) of section 3 of the Customs Tariff Act, 1975 (51 of 1975), the additional duty leviable on transformer oil falling under Heading 2710 ofthe First Schedule to the said Act, when imported in India, shall be equal to such portion of the excise duty for the time being leviable on the raw material commonly known as transformer oil base stock or transformer oil feed stock as is equivalent to a duty of excise of one thousand and fifty-five rupees and twenty-five paise per metric tonne, that is to say, nine hundred rupees per kilolitre at fifteen degrees of Centigrade thermometer on indigenous transformer oil.

ADDITIONAL DUTY ON TRANSFORMER OIL

[Notfn. No. 191/78-Cus. dt. 22.9.1978 as amended by 32/15].

Transformer Oil falling under Heading 2710 shall be liable to such Additional duty as may be determined in accordance with the Transformer Oil (Additional Duty) Rules, 1978.

Exemption to Petroleum Crude.

[Notfn. No. 50/97-Cus. dt. 25.5.1997]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts petroleum crude, falling under heading No. 27.09 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India, from so much of the additional duty leviable thereon under sub-section (1) of Section 3 of the said Customs Tariff Act, as is equivalent to the duty of excise leviable on petroleum crude under sub-section (1) of section 15 of the Oil Industry (Development) Act, 1974 (47 of 1974).

Exemption to Kerosene when imported by manufacturer of linear alky Benzene for extraction of N - Paraffin

[Notfn. No. 26/99-Cus dt. 28.2.1999 as amended by 28/02-Cus. dt. 11.3.2002]

In exercise of the power conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the goods of the description specified in column (2) of the T able below (hereinafter referred to as the said T able) and falling under Chapter 27 of the First Schedule to the said Customs Tariff Act, imported by a manufacturer of linear alkyl benzene for the purpose of extracting N-Paraffin, -

(i) from so much of the the duty of customs leviable thereon under the said First Schedule as is in excess of the amount calculated at the rate specified in the corresponding entry in column (3) of the said Table;

(ii) Omitted

2. The exemption contained in this notification shall be given effect to in the following manner, namely:-

(a) at the time of importation, the manufacturer-importer shall pay customs duty leviable under the said First Schedule and the said Customs Tariff Act or any other law for the time being in force on 85% of the quantity of kerosene imported at the rate as if no exemption is applicable on such imports;

(b) the Assistant Commissioner or Deputy Commissioner of Customs shall furnish a copy of the assessed bill of entry to the Assistant Commissioner of Central Excise having jurisdiction over the factory of the manufacturer-importer where kerosene is used for extraction of N-Paraffin therefrom;

(c) the manufacturer-importer shall maintain such accounts as may be considered necessary by the Assistant Commissioner or Deputy Commissioner of Central Excise having jurisdiction to ascertain the actual quantity of kerosene consumed in the process of extraction of N-Paraffin and the manner in which the remnant quantity of kerosene is disposed of by the manufacturer-importer and the customers to whom such remnant quantity is sold and the price realised therefor;

(d) at the end of each calendar month and by the fifth of the next month, the manufacturer shall furnish a statement to the Assistant Commissioner or Deputy Commissioner of Customs Central Excise having jurisdiction over the factory of the manufacturer-importer indicating the quantity of kerosene actually consumed during the calendar month in the process of extraction of N-Paraffin duly certified by a Chartered Accountant or a Chartered Engineer. The manufacturer-importer shall also furnish the information about the quantity of imported kerosene sold and supplied to the Indian Oil Corporation Limited in the calendar month;

(e) on receipt of the above information and any other information as the Assistant Commissioner or Deputy Commissioner of Central Excise having jurisdiction may require for this purpose, he shall, in exercise of the powers of the Assistant Commissioner of Customs or Deputy Commissioner of Customs as conferred on him to do so, pass an order on the following, namely:-

(i) the quantity of kerosene as determined by him to have been consumed for extraction of N-Paraffin in the calendar month;

(ii) the quantity of kerosene as determined by him to have been supplied and sold to the Indian Oil Corporation Limited in the calendar month;

(iii) having regard to the quantity of kerosene eligible to exemption under serial No. 1 of the said Table, determine the additional amount of customs duty, if any, payable by the manufacturer-importer on the basis of the quantity of kerosene determined to be consumed for the extraction of N-Paraffin and the quantity of kerosene supplied and sold to the Indian Oil Corporation Limited, if any, during the calendar month; while doing so, the Assistant Commissioner of Central Excise or Deputy Commissioner Central Excise shall adjust the duty paid by the manufacturer-importer under clause (a);

Axtraction N-Pooration and quantity of Kerosene supplied and sold to the Indian Oil Corporation Limited.

(iv) having regard to the quantity of kerosene eligible to exemption under serial Numbers 1 and 2 of the said Table, determine the amount of refund of duty, if any, due to the manufacturer-importer on the basis of the quantity of kerosene determined to be consumed for the extraction of N-Paraffin and the quantity of kerosene supplied and sold to Indian Oil Corporation Limited, if any, during the calendar month; while doing so, the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise having jurisdiction shall adjust the duty paid by the manufacturer-importer under clause (a).

3. The manufacturer-importer shall pay the additional amount of customs duty determined in the order passed by the Assistant Commissioner of Central Excise or Deputy Commissioner of Excise having jurisdiction within three days of the receipt of the order, and for any delay the manufacturer-importer shall be liable to pay interest on the amount not paid, at the rate of thirty six per cent. per annum.

4. The Assistant Commissioner of Central Excise or Deputy Commissioner of Excise having jurisdiction shall pass an order granting refund of the excess duty paid with reference to the determination under sub-clause (iv) of clause (e) of paragraph 2.

Exemption to Crude Petroleum oils and oils obtained from bituminous minerals:

[Notfn. No. 63/12-Cus. dt.31.12.2012]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.116/2010-Customs, dated the 1st November, 2010, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 875 (E), dated the 1st November, 2010, except as respects things done or omitted to be done before such supersession,the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts Crude Petroleum oils and oils obtained from bituminous minerals falling under the tariff item 2709 00 00 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India from Brunei Darussalam, from whole of the duty of customs leviable thereon under the First Schedule to the Customs tariff Act, 1975 ( 51 of 1975):

Provided that the importer proves to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, that the goods in respect of which the benefit of this exemption is claimed are of the origin of Brunei Darussalam, in accordance with provisions of the Customs Tariff [Determination of Origin of Goods under the Preferential Trade Agreement between the Governments of Member States of the Association of Southeast Asian Nations (ASEAN) and the Republic of India] Rules, 2009, published in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 189/2009-Customs (N.T.), dated the 31st December 2009.

2. This notification shall come into force with effect from 1st day of January, 2013.

Exemption to motor spirit commonly known as petrol falling under heading 2710 when imported into India, from so much of the additional duty of customs leviable thereon undersection 103 read with the Second Schedule to the Finance (No. 2) Act, 1998:

[Notfn. No. 6/15-Cus. dt.1.3.2015]

In exercise of the powers conferred by section 103 of the Finance (No.2) Act, 1998 (21 of 1998), read with sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts motor spirit commonly known as petrol, falling under heading 2710 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India, from so much of the additional duty of customs leviable thereon undersection 103 read with the Second Schedule to the said Finance (No.2)Act, 1998, as is in excess of the amount calculated at the rate of rupees six per litre.

Additinal duty of Customs at the rate of four percent for the items falling under column (3) of the Table

[Notfn. No. 53/17-Cus. dt.30.06.2017]

In exercise ofthe powers conferred by sub-section (5) of section 3 ofthe Customs Tariff Act, 1975 (51 of 1975), and in supersession of the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 19/2006-Customs, dated the 1st March, 2006, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 91 (E), dated the 1st March, 2006, except as respects things done or omitted to be done before such supersession, the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby directs that all goods of the description specified in column (3) ofthe Table below and falling within the Chapter, heading or sub-heading or tariff item of the First Schedule to the said Act, as specified in the corresponding entry in column (2) of the said Table, having regard to the sales tax, value added tax, local tax and other taxes or charges leviable on sale or purchase or transportation of like goods in India, when imported into India, shall be liable to an additional duty of customs at the rate of four per cent ad valorem.

TABLE

2. This notification shall come into force with effect from the 1st day of July, 2017.

Exemption to goods motor spirit commonly known as petrol and high speed diesel oil, falling under heading 2710:

[Notfn. No. 21/18-Cus. dt.2.2.2018]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), read with clause 110 of the Finance Bill, 2018 (4 of 2018), which, by virtue of the declaration made in the said Finance Act under the Provisional Collection of Taxes Act, 1931 (16 of 1931), has the force of law, the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts motor spirit commonly known as petrol and high speed diesel oil, falling under heading 2710 ofthe F irst Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India, from so much of the additional duty of customs leviable thereon under sub-section (1) of section 3 of the said Customs Tariff Act, as is equivalent to the additional duty of excise (Road and Infrastructure Cess) leviable on motor spirit commonly known as petrol and high speed diesel oil under the aforesaid clause 110 of the Finance Bill, 2018.