ATO Interpretative Decision
ATO ID 2002/917 (Withdrawn)
Excise
Excise - Payments - Diesel Fuel Rebate Scheme - electricity generation for research purposesFOI 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This ATO ID is withdrawn from the database because it contains a view in respect of the diesel fuel rebate provisions of the Excise Act 1901 and or the Customs Act 1901 that were repealed with effect from 1 July 2003.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.
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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
Is diesel fuel, purchased by an entity to generate electricity for use in the course of carrying on an enterprise as a research station at a remote location, eligible for diesel fuel rebate under paragraph 164(1)(ad) of the Customs Act 1901 (Customs Act) and/or paragraph 78A(1)(ad) of the Excise Act 1901 (Excise Act)?
Decision
The diesel fuel used for power generation for research purposes is not eligible for rebate under paragraph 164(1)(ad) of the Customs Act and/or paragraph 78A(1)(ad) of the Excise Act.
Facts
The applicant carries on an enterprise as a research station, which is not able to be connected to the national power grid.
The applicant submits that its enterprise is eligible for the rebate under paragraph 164(1)(ad) of the Customs Act and paragraph 78A(1)(ad) of the Excise Act because:
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- it carries on a business in a remote location which does not have access to a commercial supply of electricity; and
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- all the diesel it uses for power generation is linked to the conduct of its business.
Reasons for Decision
Paragraph 164(1)(ad) of the Customs Act and paragraph 78A(1)(ad) of the Excise Act extended the diesel fuel rebate from 1 July 2002 to entities at particular premises to generate electricity for use in the course of carrying on, at those premises, an enterprise that meets the following two criteria:
- (i)
- it does not have, at those premises, ready access to a commercial supply of electricity; and
- (ii)
- it has, as its principal purpose, the retail sale of goods or services or the provision of hospitality.
The applicant's premises meet the first criterion because there is no ready access to a commercial supply of electricity.
However, the applicant cannot satisfy the second criterion. The applicant's enterprise cannot be characterised as one, which has as its principal purpose the 'retail sale of goods or services or the provision of hospitality'. The applicant entity's principal purpose is research and education.
Date of decision: 30 August 2002
Legislative References:
Customs Act 1901
paragraph 164(1)(b)
paragraph 78A(1)(b)
Keywords
Hotel & motel industry
Northbridge ATO
Retail sales
Diesel fuel rebates
Excise
Diesel fuel rebate scheme
Excise Business Line
ISSN: 1445-2782
| Date: | Version: | |
| 30 August 2002 | Original statement | |
| You are here | 8 January 2010 | Archived |