ATO Interpretative Decision
ATO ID 2001/765 (Withdrawn)
Excise
Diesel Fuel Rebate - Maintenance of roads in forests or plantations (forestry roads)FOI status: may be released
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This ATO ID is withdrawn from the database because it contains a view in respect of the diesel fuel rebate provisions of the Excise Act 1901 and or the Customs Act 1901 that were repealed with effect from 1 July 2003. Despite its withdrawal from the database, this ATO ID continues to be a precedential view in respect of decisions for fuel purchased before 1 July 2003.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
Status of this decision: Decision Withdrawn 8 January 2010
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
For the purposes of subparagraph 78A(1B)(1)(aa) of the Excise Act 1901 (EA), is diesel fuel rebate payable for diesel fuel purchased for use in the maintenance of forestry roads used for transporting felled timber to a mill located outside the forest or plantation?
Decision
Diesel fuel rebate is payable for the maintenance of forestry roads, as provided by subparagraph 78A(1B)(1)(aa) of the EA, if the roads are integral to the transportation of timber felled in a forest or plantation.
Facts
The applicant purchased diesel fuel for maintenance of forestry roads. The forestry roads are used for the transportation of felled timber from the forest to a mill located outside the forest.
Reasons for Decision
Subparagraph 78A(1B)(1)(aa) of the (EA) provides that a rebate is payable to a person who purchases diesel fuel for use by him or her in primary production other than for the purposes of propelling a road vehicle on a public road.
Subsection 78A(7) of the EA provides that the same respective meaning is attributed to primary production as appears in section 164 of the Customs Act 1901 (CA). Subsection 164(7) of the CA provides that primary production includes forestry.
Subsection 164(7) of the CA also specifically defines forestry. Paragraph (f) of the definition of "forestry" includes 'the making and maintaining in a forest or plantation referred to in paragraph (a) or (b) of a road that is integral to the activities referred to in paragraph (a), (b) or (c)'. Paragraph (c) provides that forestry includes 'the transporting, milling or processing, in a forest or plantation, of timber felled in the forest or plantation'.
The diesel fuel at issue was used in the maintenance of a forestry road that is used for the purpose of transporting felled timber to a mill. This activity satisfies paragraph (f) of the forestry definition in so far as the road is integral to the transporting, in a forest or plantation, of timber felled in the forest or plantation.
This activity amounts to forestry pursuant to paragraph (f) of the definition of 'forestry'. On this basis a rebate of duty is payable under subparagraph 78A(1B)(1)(aa) of the EA.
Date of decision: 16 October 2001Year of income: Year ending 30 June 2002
Legislative References:
Customs Act 1901
section 164
subsection 164(7)
subparagraph 78A(1B)(1)(aa)
subsection 78A(1B)
subsection 78A(7)
Keywords
Excise
Diesel fuel rebate scheme
Excise payments
DFRS forestry
ISSN: 1445-2782
| Date: | Version: | |
| 16 October 2001 | Original statement | |
| You are here → | 8 January 2010 | Archived |