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Date: 2022-07-15 Category: Extra Ordinary State: Union Government Country: India

RCS

Issued by Ministry of Finance · Department of Revenue

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Executive Summary & Key Takeaways

Okay, I'm ready to generate the report based on the provided government policy text. **Report: Analysis of Central Excise Notification No. 16/2022** **1. Executive Summary:** This report analyzes Notification No. 16/2022-Central Excise, issued by the Department of Revenue, Ministry of Finance, Government of India. This notification introduces amendments to Notification No. 11/2017-Central Excise, providing exemptions from central excise duty on Aviation Turbine Fuel (ATF) drawn by operators or cargo operators from Regional Connectivity Scheme (RCS) airports for specific routes. The key finding is that this amendment aims to support the RCS scheme by reducing operational costs for airlines on certain routes, with a defined end date for the exemption for each route. **2. Introduction:** The purpose of this report is to provide an informative analysis of Notification No. 16/2022-Central Excise, based solely on the content of the provided policy text. This report aims to clarify the changes introduced by this notification and its likely implications. **3. Policy Overview:** * This notification is an amendment to the original Notification No. 11/2017-Central Excise, dated June 30, 2017. * The core objective of this amendment, as inferred from the text, is to provide targeted excise duty exemptions to support the Regional Connectivity Scheme (RCS). **4. Background and Rationale:** The amendment is likely intended to reduce the operational costs associated with flying on RCS routes by exempting Aviation Turbine Fuel (ATF) from central excise duty. This incentive may encourage airlines to operate on these routes and potentially improve the viability and expansion of the RCS scheme. **5. Key Provisions / Changes:** This notification amends Notification No. 11/2017-Central Excise by: * **Adding a new entry (Sl. No. 7B) to the Table:** This entry specifies that Aviation Turbine Fuel (ATF) falling under tariff heading 2710 19 39, when drawn by operators or cargo operators from RCS airports for routes specified in the Annexure, will be eligible for an excise duty exemption. * **Inserting an Annexure:** This Annexure lists the RCS routes eligible for the exemption and specifies the "End date for exemption" for each route. Examples include Mumbai-Kandla (8th December, 2022), Delhi-Adampur (7th February, 2023), and Pakyong-Guwahati (date not clearly captured by OCR in text). The effect of this change is to provide a time-limited excise duty exemption on ATF for specific RCS routes, thereby reducing the cost of fuel for operators. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders are: * Airlines and cargo operators operating on routes under the Regional Connectivity Scheme (RCS). * Regional Connectivity Scheme (RCS) airports. * Ministry of Civil Aviation (indirectly). **7. Implementation Aspects (Inferred):** * **Responsible Agency:** The Central Board of Indirect Taxes and Customs (CBIC), under the Department of Revenue, Ministry of Finance, is the responsible agency for implementing and administering this notification. * **Timelines:** The notification comes into effect on July 16, 2022. The exemptions are valid until the "End date for exemption" specified for each RCS route in the Annexure. * Operators will need to demonstrate that the ATF is drawn from RCS airports and used for flights on the specified routes to avail of the exemption. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of these changes are: * Reduced operational costs for airlines operating on RCS routes, making these routes more financially viable. * Increased connectivity to underserved regions through the RCS scheme. * Potential increase in air traffic and economic activity in these regions. **9. Conclusion:** Notification No. 16/2022-Central Excise introduces targeted excise duty exemptions on Aviation Turbine Fuel for specific RCS routes. This amendment is designed to reduce operational costs for airlines, support the RCS scheme, and improve regional air connectivity. The limited timeframes for these exemptions, specified in the annexure, suggest a phased approach or a pilot program to assess the effectiveness of this fiscal incentive. This is a significant step towards promoting regional air connectivity by making RCS routes more attractive to airlines and cargo operators.

Key Entities Referenced

NEW DELHI: Location of publication of the Gazette of India. Central Excise Act, 1944: The Act under which the powers are conferred for the notification. Central Government: The governing body issuing the notification. Ministry of Finance: The ministry under which the Department of Revenue operates. Department of Revenue: The department within the Ministry of Finance issuing the notification. G.S.R. 579E: Gazette of India number related to the Central Excise Notification. G.S.R. 793E: Gazette of India number related to the original notification No. 112017Central Excise, dated the 30th June, 2017. G.S.R. 510 E: Gazette of India number related to the notification No. 122022Central Excise dated 4th July, 2022. Aviation Turbine Fuel: The fuel type to which the amendment applies Regional Connectivity Scheme RCS: Scheme for which aviation turbine fuel is drawn from airports. Mumbai: City in Maharashtra, part of RCS route. Kandla: City in Gujarat, part of RCS route. Jaipur: City in Rajasthan, part of RCS route. Jaisalmer: City in Rajasthan, part of RCS route. Delhi: Union Territory, part of RCS route. Kanpur: City in Uttar Pradesh, part of RCS route. Kolkata: City in West Bengal, part of RCS route. Pakyong: Town in Sikkim, part of RCS route. Kishangarh: City in Rajasthan, part of RCS route. Porbandar: City in Gujarat, part of RCS route. Hyderabad: City in Telangana, part of RCS route. Puducherry: Union Territory, part of RCS route. Adampur: City in Punjab, part of RCS route. Guwahati: City in Assam, part of RCS route. VIKRAM VIJAY WANERE: Under Secretary. Government of India Press, Ring Road, Mayapuri, New Delhi: Location of Uploading of document
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-15072022-237309 xxxGIDHxxx CG-DL-E-15072022-237309 xxxGIDExxx असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (i) PART II—Section 3—Sub-section (i) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 509] नई दिल्ली, िुक्रिार, िुलाई 15, 2022/आषाढ़ 24, 1944 No. 509] NEW DELHI, FRIDAY, JULY 15, 2022/ASHADHA 24, 1944 जित्त ं्ं ाल (रािस्ट्ि जिभाग) अजधसचू ना नई दिल् ली, 15 िुलाई, 2022 स.ं 16/2022-केन्‍दर ी उत्प ाि िल्ु क सा.का.जन. 579(अ).—केन्‍द री उत् पाि िुल् क अजधजन ं, 1944 (1944 का 1) की धारा 5क की उप-धारा (1) के तहत प्रित् त िजतिय का प्र गग करते ुएए केन्‍दर सरकार, इस बात से संतुष्ट हगते ुएए दक ऐसा करना िनजहत ं ें आिश् क ह, एति्द्वारा, भारत सरकार, जित् त ंं्ाल (रािस्ट् ि जिभाग) की अजधसूचना संख् ा 11/2017-केन्‍द री उत् पाि िल्ु क, दिनांक 30 िून, 2017, जिसे सा.का.जन. 793 (अ), दिनांक 30 िून, 2017 के तहत भारत के रािप्, असाधारण, के भाग II, खंड 3, उप-खंड (i) ंें प्रकाजित दक ा ग ा था, ंें और आगे भी जनम्न जलजखत संिगधन करती ह, था:- उक्त अजधसूचना ं,ें सारणी ं;ें- (i) क्रं संख् ा 7क और उससे संबंजधत प्रजिजि के पश् चात जनम्न जलजखत क्रं संख् ा और प्रजिजि कग अंत:स्ट्थ ाजपत दक ा िाएगा, था:- (1) (2) (3) (4) “7ख 2710 19 39 एजिएिन टरबाईन फ् ूल, िग दक आपरेटर ा कागो आपरेटर के 2%”; द्वारा ररिनल कनेजक्टजिटी स्ट् कीं (आरसीएस) हिाई अड्ड स े तथा अनुबंध के कॉलं (2) ं ें जिजनर्िष्ि ट ंागगों के जलए और उक्त 4725 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] अनुबंध के कॉलं (3) ं ें उजल्लजखत अंजतं तारीख तक के जलए जनष्कर्षित दक ा ग ा हग । (ii) सारणी के पश् चात जनम्न जलजखत अनुबंध कग अंत:स्ट् थाजपत दक ा िाएगा, था:- अनबु धं क्रं सखं ् ा आरसीएस ंाग ि छूट की अजं तं तारीख (1) (2) (3) 1. ंुंबई-कांडला 2. कांडला-ंुंबई 3. ि पुर - ि सलंेर 4. ि सलंेर - ि पुर 5. दिल्ली - कानपुर 8 दिसंबर, 2022 6. कानपुर - दिल्ली 7. कगलकाता-पक ग 8. पक ग - कगलकाता 9. दिल्ली - दकिनगढ़ 10. दकिनगढ़ - दिल्ली 11. ंुंबई -पगरबंिर 12. हि राबाि-पुिचु ेरी 13. पुडुचेरी -हि राबाि 14. दिल्ली – आिंपरु 7 फरिरी, 2023 15. आिंपुर - दिल्ली 16. पक ग - गुिाहाटी 17. गुिाहाटी - पक ग 2. ह अजधसूचना 16 िुलाई, 2022 से लागू हगगी । [फा. स.ं सीबीआईसी -190354/95/2022-टीआर ू] जिक्रं जिि िानरे, अिर सजचि नगट : प्रधान अजधसूचना संख् ा 11/2017-केन्‍द री उत् पाि िुल् क, दिनांक 30 िून, 2017, कग सा.का.जन. 793 (अ), दिनांक 30 िून, 2017 के तहत भारत के रािप्, असाधारण, के भाग II, खंड 3, उप-खंड (i) ंें प्रकाजित दक ा ग ा था और इसंें अंजतं बार अजधसूचना संख् ा 12/2022-केन्‍द री उत् पाि िल्ु क, दिनांक 4 िुलाई, 2022, जिस े सा.का.जन. 510 (अ), दिनांक 4 िुलाई, 2022 के तहत भारत के रािप्, असाधारण, के भाग II, खंड 3, उप-खंड (i) ंें प्रकाजित दक ा ग ा था, के द्वारा संिगधन दक ा ग ा ह ।[भाग II—खण् ड 3(i)] भारत का रािप् : असाधारण 3 MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION New Delhi, the 15th July, 2022 No. 16/2022-Central Excise G.S.R. 579(E).—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, on 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. 11/2017-Central Excise, dated the 30th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 793(E), dated the 30th June, 2017, namely:- In the said notification, in the Table; - (i) after Sl. No. 7A and the entries relating thereto, the following Sl. No. and entries shall be inserted, namely: (1) (2) (3) (4) “7B. 2710 19 39 Aviation Turbine Fuel drawn by operators or cargo 2%”; operators from Regional Connectivity Scheme (RCS) airports for the routes specified in column (2) of the Annexure, till the end date mentioned in column (3) of the said Annexure. (ii) After the Table, the following Annexure shall be inserted, namely:- Annexure Sl. No. RCS routes End date for exemption (1) (2) (3) 1. Mumbai-Kandla 2. Kandla-Mumbai 3. Jaipur - Jaisalmer 4. Jaisalmer - Jaipur 5. Delhi - Kanpur 8th December, 2022 6. Kanpur - Delhi 7. Kolkata-Pakyong 8. Pakyong - Kolkata 9. Delhi - Kishangarh 10. Kishangarh - Delhi 11. Mumbai- Porbandar 12. Hyderabad-Puducherry 13. Puducherry- Hyderabad 14. Delhi - Adampur 7th February, 2023 15. Adampur - Delhi 16. Pakyong - Guwahati 17. Guwahati - Pakyong4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] 2. This notification shall come into force with effect from the 16th day of July, 2022. [F. No. CBIC-190354/95/2022-TRU] VIKRAM VIJAY WANERE, Under Secy. Note : The principal notification No. 11/2017-Central Excise, dated the 30th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 793(E), dated the 30th June, 2017 and last amended by notification No. 12/2022-Central Excise dated 4th July, 2022 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i), vide number G.S.R. 510 (E), dated 4th July, 2022. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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