SAED on Aviation Turbine Fuel for Export Brought Down to Rs. 19 per Litre from 1 September 2026
1. Background and Context
The Central Government has revised the effective Special Additional Excise Duty (SAED) applicable on Aviation Turbine Fuel (ATF) exported out of India. This change has been implemented through Notification No. 47/2026-Central Excise dated 1 September 2026, which further amends Notification No. 08/2026-Central Excise dated 26 March 2026.
The legal basis for this revision lies in:
Section 5Aof the Central Excise Act, 1944, andSection 147of the **Finance Act, 2002`.
By exercising these powers, the Government has replaced the existing rate specified against serial number 1, column (4) of the Table in the principal notification with the figure “Rs. 19 per litre” for ATF exports.
Prior to this latest amendment, the applicable SAED rate on ATF cleared for export was Rs. 19.5 per litre, as per Notification No. 44/2026-Central Excise dated 14 August 2026 effective from 15 August 2026. Thus, the new notification results in a downward revision of Rs. 0.50 per litre from the immediately preceding rate, with effect from 1 September 2026 (i.e., the date of publication of Notification No. 47/2026-Central Excise in the Official Gazette).
2. Scope and Effect of Notification No. 47/2026-Central Excise
2.1 Nature of the Amendment
Notification No. 47/2026-Central Excise has a limited and specific operative effect. It:
- Does not introduce any fresh levy of SAED.
- Does not extend or curtail the category of goods already covered.
- Only substitutes the numerical rate of SAED applicable to ATF exports under serial number 1 of the Table to Notification No. 08/2026-Central Excise.
The underlying framework of the exemption mechanism, classification of ATF, and the statutory charging provisions remain intact.
2.2 Goods and Tariff Heading Covered
The principal notification originally covered ATF:
- Falling under heading 2710 of the Fourth Schedule to the Central Excise Act, 1944, and
- When such ATF is cleared for export outside India.
The present amendment continues to operate within this same ambit. There is no change in the description, tariff heading, or the condition that the ATF must be cleared for export.
3. Mechanism of SAED under the Principal Notification
3.1 Structure of the Exemption
The SAED on ATF is levied under:
Section 147read with the Eighth Schedule to the Finance Act, 2002.
The principal notification does not completely waive this duty. Instead, it provides a partial exemption, such that:
ATF is exempted from so much of the SAED leviable under
Section 147read with the Eighth Schedule to the Finance Act, 2002, as exceeds the rate stated in column (4) of the Table to Notification No. 08/2026-Central Excise.
In effect:
- The statutory SAED rate under the Finance Act, 2002 continues to apply in the background.
- The notification caps the effective burden on ATF exports at the specified rupee-per-litre figure.
- Any SAED amount beyond the notified rate is not required to be paid by the assessee.
3.2 Initial Rate under the Principal Notification
When Notification No. 08/2026-Central Excise was issued on 26 March 2026, it prescribed:
- An effective SAED rate of Rs. 29.5 per litre on ATF under heading 2710,
- Applicable when such ATF was cleared for export,
- With effect from 26 March 2026 itself.
This initial figure of Rs. 29.5 per litre serves as the base rate for evaluating subsequent changes during FY 2026-27.