CBIC Grants Excise Duty Relief on Petroleum Products Cleared for Export — Notification No. 10/2026-Central Excise

Overview of the Notification

The Ministry of Finance, through its Department of Revenue, has taken a significant step toward facilitating export-oriented trade in petroleum products by issuing Notification No. 10/2026-Central Excise dated 26th March 2026. This notification grants exemption from specified central excise levies on certain petroleum products — namely petrol, high speed diesel, and Aviation Turbine Fuel (ATF) — when such goods are either cleared for export or supplied as fuel to aircraft departing for foreign destinations.

The notification derives its legal authority from section 5A of the Central Excise Act, 1944, read in conjunction with section 112 of the Finance Act, 2018 and section 125 of the Finance Act, 2021. The Central Government, being satisfied that the exemption is warranted in public interest, has given this notification immediate effect upon its issuance.

Enabling Provisions

The Central Government's power to grant exemptions from excise duty flows from section 5A of the Central Excise Act, 1944, which empowers the government to exempt any goods from the whole or part of the duty leviable, subject to conditions, if it is satisfied that doing so is in the public interest.

In addition to this primary authority, the notification also draws upon:

  • Section 112 of the Finance Act, 2018 (13 of 2018) — which governs the Road and Infrastructure Cess framework
  • Section 125 of the Finance Act, 2021 (13 of 2021) — under which the Agriculture Infrastructure and Development Cess (AIDC) is levied

These provisions collectively form the statutory foundation upon which the exemption structure in this notification is built.

Scope of Exemption: Products and Duties Covered

Products Eligible for Exemption

The notification identifies two categories of goods that qualify for duty exemption, as laid out in the table forming part of the notification:

Category 1 — Motor Spirit and High Speed Diesel:

  • Motor Spirit, commonly known as Petrol
  • High Speed Diesel

Both of these products are exempted from:

  1. Basic Excise Duty
  2. Agriculture Infrastructure and Development Cess (AIDC)

Category 2 — Aviation Turbine Fuel:

  • Aviation Turbine Fuel (ATF)