Revised Special Additional Excise Duty on ATF Exported from India Effective 1 July 2026

The Central Government has issued a fresh notification revising the Special Additional Excise Duty (SAED) on exports of Aviation Turbine Fuel (ATF), with effect from 1st July, 2026. This change has been carried out through Notification No. 37/2026-Central Excise dated 30th June, 2026, which amends Notification No. 08/2026-Central Excise dated 26th March, 2026.

This update is important for refineries, oil marketing companies, and other entities engaged in the export of ATF, as it directly alters the duty incidence on ATF exported outside India.

Statutory Basis of the Amendment

The revised duty has been notified by the Central Government using its powers under:

  • Section 5A of the Central Excise Act, 1944 (1 of 1944); read with
  • Section 147 of the Finance Act, 2002 (20 of 2002).

The notification records that the Government is “satisfied that it is necessary in the public interest” to implement these amendments. This public interest declaration is a statutory pre-condition for issuance of an exemption or modification notification under Section 5A of the Central Excise Act, 1944.

Notifications Involved and Their Inter-Relationship

Principal Notification: 08/2026-Central Excise

  • Notification No. 08/2026-Central Excise was originally issued on 26th March, 2026 by the Ministry of Finance (Department of Revenue).
  • It was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) as G.S.R. 207(E), also dated 26th March, 2026.
  • This principal notification laid down the SAED framework, including the table specifying the duty rates applicable to specified petroleum products, including ATF.

First Amendment: 31/2026-Central Excise

  • The principal notification was last amended prior to the current change by Notification No. 31/2026-Central Excise dated 15th June, 2026.
  • That earlier amendment was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) as G.S.R. 479(E) on 15th June, 2026.
  • Notification No. 31/2026-Central Excise modified certain aspects of the principal notification; however, the present notification now further alters the relevant entry concerning ATF exports.

Current Amendment: 37/2026-Central Excise

  • Notification No. 37/2026-Central Excise is dated 30th June, 2026 and carries G.S.R. 538(E).
  • It specifically focuses on revising the rate of SAED on ATF exports as contained in the table to the principal notification.

Exact Nature of the Change in SAED Rate

Amendment to Table Entry

The operative part of Notification No. 37/2026-Central Excise states that in the table to Notification No. 08/2026-Central Excise:

  • Against serial number 1,
  • In column (4),
  • The existing entry for the rate of SAED is substituted by the expression:

“Rs. 7.5 per litre”

Thus, the revised SAED applicable to the item listed at serial number 1 (i.e., ATF exported out of India, as per the principal notification) is now Rs. 7.5 per litre.

Scope of the Amendment