Special Additional Excise Duty of Rs. 50 Per Litre Now Applicable on Aviation Turbine Fuel — Finance Act, 2002 Eighth Schedule Amended

Overview of the Notification

The Ministry of Finance (Department of Revenue) has taken a significant step in the indirect taxation landscape by issuing Notification No. 07/2026-Central Excise, dated 26th March, 2026, introducing a Special Additional Excise Duty (SAED) on Aviation Turbine Fuel (ATF). This move reflects the Central Government's exercise of its statutory authority to impose an immediate levy through amendment of a fiscal schedule, without waiting for the ordinary legislative process.

The notification has been published under G.S.R. 206(E) and has come into force with immediate effect from the date of its issuance, making compliance obligations applicable without any transitional window.

Legal Framework and Statutory Authority

Powers Invoked

The Central Government has issued this notification by drawing upon powers vested under:

• Section 3B of the Central Excise Act, 1944 (1 of 1944) — which enables the Central Government to levy Special Additional Excise Duty under prescribed circumstances
• Section 147 of the Finance Act, 2002 (No. 20 of 2002) — which governs the levy of Special Additional Excise Duty through the Eighth Schedule to the Finance Act, 2002

The satisfaction of the Central Government that circumstances exist necessitating immediate action forms the jurisdictional basis for issuing this notification without prior notice. This mechanism allows the government to bypass the usual budgetary route and give effect to a new duty levy instantly through a gazette notification, when the situation so demands.

Note: The invocation of the "immediate necessity" clause under Section 3B of the Central Excise Act, 1944 is a constitutionally recognised emergency power available to the Central Government in matters of excise duty imposition, and courts have consistently upheld its validity when properly exercised.

What Has Been Amended

Amendment to the Eighth Schedule — Finance Act, 2002

The Eighth Schedule to the Finance Act, 2002 has been modified by inserting a new item after Item No. 2 and the entries relating thereto. The newly inserted entry reads as follows:

This insertion formally brings ATF within the ambit of the Special Additional Excise Duty regime under the Finance Act, 2002, creating a fresh statutory obligation on manufacturers, producers, or importers of ATF who are liable under the Central Excise Act, 1944.

Classification of Aviation Turbine Fuel