Manufacture and supply of fuel by IOC to Indian Navy or Coast Guard shall be exempt from excise duty

Central Government has issued a notification no.37/2007-central excise date 1-11-2007 to amend notification no. No.64/95-Central Excise, dated the 16th March, 1995  to grant the exemption of Fuels falling under Chapter Heading 2710 subject to:

If,-

(a) manufactured and supplied by Indian Oil Corporation Limited as stores for consumption on board a vessel of the Indian Navy or Coast Guard; or

(b) procured by Indian Oil Corporation Limited from any other manufacturer of the said fuels and supplied as stores for consumption on board a vessel of the Indian Navy or Coast Guard: Provided that-

(i) Indian Oil Corporation Limited obtains registration under rule 9 of the Central Excise Rules, 2002, with the Assistant Commissioner or Deputy Commissioner of Central Excise having jurisdiction over the concerned supply point;

(ii) maintains records of receipt and supplies of these fuels;

(iii)  submits a monthly reconciliation statement to and proves to the satisfaction of the jurisdictional central excise officer that such fuels have been supplied as stores for consumption on board a vessel of Indian Navy or Coast Guard; and

(iv) failing which Indian Oil Corporation Limited pays the excise duty leviable on fuels not properly accounted for along with interest."