Notification No. 01/2025-Central Excise (Dated 1st February 2025)

🟢 Key Highlights:

Notification No. 01/2025-Central Excise, issued on 1st February 2025, makes amendments to the principal Notification No. 11/2017-Central Excise, extending the validity of certain excise duty exemptions.

📜 What This Notification Does:

This notification amends two specific places in Notification 11/2017:

1. In the Table, against Sl. No. 3, in column (3), after item (ii), in the proviso, the year "2025" is replaced with "2026".

2. After the Annexure, in item (b) of the proviso, the year "2025" is also replaced with "2026".

This effectively extends the validity of the excise duty exemption/concession by one more year, until 31st March 2026.

📃 Legal Framework:

• Section 5A of the Central Excise Act, 1944: Allows the Central Government to exempt goods from excise duty in public interest.

• Notification 11/2017-Central Excise: A master notification providing concessional excise duty rates for certain petroleum products.

⚖️ Before vs After Comparison:

🛠️ Practical Example:

Suppose a refinery produces unbranded petrol and was paying a reduced excise duty under Notification 11/2017:

• Before Amendment: This concessional duty was valid only till 31st March 2025.

• After Amendment: It is now valid till 31st March 2026.

Result: The refinery can continue paying lower excise duty, leading to lower fuel costs and price stability for the consumer.

👨‍💼 Who Benefits?

• Oil companies and refineries: Benefit from extended duty relief.

• Transport and logistics sectors: Enjoy continued cost savings.

• Consumers: Protected from potential fuel price hikes.

📣 Message Conveyed:

The Government is maintaining a stable fuel pricing strategy by continuing excise duty concessions, helping consumers and industries alike.

This move reflects a public interest-oriented policy to ease inflationary pressures and support the economy.

🗓️ Effective Date:

2nd February 2025

✅ Conclusion:

This is a straightforward yet significant step to ensure cost stability in petroleum products by extending concessional excise duty rates for one more year. It reflects the Government’s ongoing effort to balance revenue with public welfare.