Full Exemption from Special Additional Excise Duty on Aviation Turbine Fuel (ATF): Key Highlights of Notification No. 9/2026-Central Excise

The Ministry of Finance, Department of Revenue, has issued an important relief measure for the aviation sector through Notification No. 9/2026-Central Excise dated 26th March, 2026. This notification grants a complete exemption from Special Additional Excise Duty on Aviation Turbine Fuel (ATF), subject to specific conditions relating to exports.

This write-up explains the scope, legal basis, coverage, exclusions, and practical implications of the notification in a structured and easy-to-understand manner for assessees and industry stakeholders.

Statutory Powers Invoked

The Central Government has exercised its powers under:

  • section 5A of the Central Excise Act, 1944 (1 of 1944), and
  • section 147 of the Finance Act, 2002 (20 of 2002)

These provisions empower the Government to issue notifications granting exemptions from duties of excise in the public interest.

Note: The exemption is specifically from the Special Additional Excise Duty leviable under section 147 of the Finance Act, 2002, and not from basic excise duty or any other applicable levy, unless separately notified.

Nature and Extent of Exemption

Complete waiver of Special Additional Excise Duty on ATF

The notification provides that Aviation Turbine Fuel falling under Heading 2710 of the Fourth Schedule to the Central Excise Act, 1944 is exempted from the whole of the Special Additional Excise Duty that would otherwise be chargeable under section 147 of the Finance Act, 2002.

In simple terms:

  • Prior to this notification, ATF classified under Heading 2710 attracted Special Additional Excise Duty under the Finance Act, 2002.
  • With effect from the date of issuance of this notification, that specific component of duty is reduced to zero, except in the clearly defined export-related situations discussed below.

This exemption is absolute with respect to the Special Additional Excise Duty component and is not conditional on any procedural compliance such as registrations, declarations, or certifications under this notification itself.

Classification of Aviation Turbine Fuel Covered

Coverage under Heading 2710

The exemption is applicable to:

  • Aviation Turbine Fuel falling under Heading 2710 of the Fourth Schedule to the Central Excise Act, 1944

Heading 2710 broadly covers certain petroleum oils and oils obtained from bituminous minerals, among others, including ATF.

Assessees dealing in petroleum products should ensure that:

  1. The product cleared is correctly classifiable as Aviation Turbine Fuel, and
  2. It falls under Heading 2710 in accordance with the tariff and relevant classification principles.

Practical Point: Misclassification may expose the assessee to differential duty, interest, and potential penal consequences. Contemporary tariff entries, explanatory notes, and departmental circulars should be consulted where there is any ambiguity.

General Rule: Exemption not available for exports

The notification clearly states that the benefit shall not apply to goods cleared for export. This means: