CIR NO.769/02/2004-CX, DT. 09/01/2004

Basis of calculation of quantity of Crude Petroleum Oil for the purpose of levy of National Calamity Contingent Duty (NCCD)

I am directed to state that clarification was sought as to whether National Calamity Contingent Duty (NCCD) applicable to Crude Petroleum Oil as per Section 136 (1) of the Finance Act, 2001 should be calculated on the net quantity of Crude Petroleum Oil received in the refinery or gross quantity produced and supplied from the oil field to the refinery. The matter was discussed in the meeting of the Chief Commissioners’ Conference held on 13th and 14th November, 2003 at Indore. The Conference took the view that suitable clarifications may be issued in consultation with TRU.

2. The matter has been examined in consultation with TRU. In view of the provisions of Section 136(1) of Finance Act, 2001, National Calamity Contingent Duty (NCCD) on Crude Petroleum Oil should be charged only on the total quantity of Crude Petroleum Oil produced and supplied from the oil field to the refineries.

3. Field formations may be informed suitably.

(Anantha Krishnan S)
Under Secretary to the Govt of India

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