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Fuel Excise Law, 5718-1958

חוק הבלו על דלק, תשי"ח-1958

Published: 1958-07-24Consolidated Hebrew text as of 2026-04-14 · Last amended 2023-11-19✓ Amendment status checked against the Knesset legislation record on 2026-09-29
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Unofficial English translation — for reference only. It may contain errors or omissions and cannot be relied on as a legal text. Only the Hebrew text published in Reshumot is legally binding.More

This English text was translated from the official Hebrew using a range of translation tools, and it undergoes ongoing checks and updates. It is not a certified translation.

Despite these checks, it may contain errors, omissions, or imprecise renderings of legal terminology and cross-references, and it may not yet reflect the latest amendments. It cannot be relied upon as a legal text.

The Hebrew text as published in Reshumot (ספר החוקים) and on the Knesset website is the sole authoritative and legally binding version. In any discrepancy, the Hebrew text prevails.

This translation is provided for informational purposes only and does not constitute legal advice. For use in legal proceedings, request a certified Expert Legal Opinion.

Definitions§

1.

In this Law –

"storage site" – a place where fuel is held for the purpose of wholesale trade therein or where fuel is held as emergency stock;

"excise licence holder" – any person to whom a licence has been granted under section 15;

"the Director" – Director as defined in the Income Tax Ordinance [New Version];

"petroleum" – as defined in the Petroleum Law, 5712-1952 (hereinafter – the Petroleum Law);

"fuel" – petroleum and other fuel in the form of gas, liquid, solid, natural, synthetic, crude or processed, mineral oils including used oils, and all products derived from the aforesaid materials by separation, refining, regeneration, cracking or processing in any other manner; but excluding crude petroleum that has not been delivered for processing and has not been used for a purpose other than the operation of a petroleum field and has not been delivered for such use;

"excise-liable fuel" – fuel produced in Israel on which excise has been imposed pursuant to section 2;

"arrears charges" and "shekel interest" – as defined in the Interest and Linkage Law;

"Value Added Tax Law" – the Value Added Tax Law, 5736-1975;

"Interest and Linkage Law" – the Interest and Linkage Law, 5721-1961;

"production" – including extraction, separation, refining, regeneration, cracking or processing in any other manner and any process therein, and including the holding of fuel for the purpose of wholesale trade therein and the filling of liquefied petroleum gas into containers;

"producer" – a person who produces fuel;

"place of production" – a place where fuel is produced, extracted, separated, refined, regenerated, cracked or processed in any other manner;

"this Law" – including the Regulations made thereunder.

Imposition of excise on fuel§

2.
(a)The Minister of Finance may, by Order, impose excise on fuel produced in Israel, at rates to be prescribed in the Order, whether generally or by types of fuel.
(b)The Minister of Finance may prescribe by Order that a producer shall mark, in the manner, at the place and at the time to be prescribed, certain types of fuel intended for certain purposes to be prescribed (hereinafter – marking-liable fuel).
(c)Where the Minister of Finance has so prescribed under subsection (b), no person shall use marking-liable fuel except for the purposes prescribed for that fuel.

Application of the Customs and Excise Duties (Amendment of Tariff) Law§

3.

The provisions of the Customs and Excise Duties (Amendment of Tariff) Law, 5709-1949, shall apply to an Order under section 2 as if it were an Order under section 1 of that Law.

Payment of excise§

4.
(a)A producer who removes fuel from a place of production shall pay the excise at the time of removal of the fuel from the place of production and at the rate applicable at that time; the Director may determine that if the fuel has been piped to a storage site the location of which the Director has approved as provided in section 16, the producer of the fuel who removes the fuel from the storage site shall pay the excise at the time of removal of the fuel from that storage site.
(a1)Where fuel has been used, other than by way of processing the fuel into another type of excise-liable fuel, within a place of production or a storage site, the excise shall be paid by the person who used it on the day of use of the fuel.
(b)The Director may, after consultation with the Director of the Fuel Administration in the Ministry of National Infrastructure and subject to such conditions as appear to him appropriate, defer payment of the excise, in whole or in part, to another date, with or without security, provided that the period of deferral shall not exceed ten days from the date referred to in subsection (a).
(c)Where the Director has deferred payment of excise as provided in subsection (b) and the excise has not been paid by the date fixed in the deferral, the Director may demand payment of the excise, or such part thereof as has not yet been paid, at the rate of excise applicable at the time of actual payment.

Prohibition of removal of fuel on deferred payment of excise§

4a.

Notwithstanding the provisions of section 4(b), where there is reasonable apprehension that the excise will not be paid by the date prescribed, the Director may prohibit the removal of fuel from a place of production or from a storage site on deferred payment of excise, until such apprehension has been removed, by means of a direction to excise licence holders – a fuel producer or a storage site operator; where such a prohibition has been imposed, removal of fuel shall be permitted only after the Director has confirmed that the apprehension has been removed to his satisfaction.

No re-imposition of excise§

5.

Fuel on which customs duty or excise has been paid shall not be subject to excise again, except in the following cases:

(1)fuel that has been processed into a type of excise-liable fuel, or
(2)excise-liable fuel that has been regenerated after use.

Deduction of prior payment§

6.

Where fuel on which customs duty or excise has been paid has not been used but has been processed into another type of excise-liable fuel, the amount of the prior customs duty or excise shall be deducted from the amount of the new excise.

Collection of excise and monetary penalty§

7.
(a)The excise and a monetary penalty as provided in section 25a are collectible under the Tax Collection Ordinance, and the provisions of that Ordinance, except section 12 thereof, shall apply to the excise and to a monetary penalty as aforesaid as if they were a tax within the meaning of that Ordinance.
(b)The provisions of sections 102(b), 102a and 102b of the Value Added Tax Law shall apply to collection as provided in subsection (a), with the necessary modifications.

Exemption from excise on exported fuel§

8.

Where the Director is satisfied that fuel has been exported from the country, the excise thereon shall not be collected, and if it has already been paid – the excise shall be refunded if a written request therefor has been submitted to the Director within six months from the date of export.

Special exemption and drawback§

9.
(a)The Minister of Finance, with the approval of the Finance Committee of the Knesset, may prescribe by Order –
(1)an exemption, full or partial, from the excise imposed on fuel sold to those listed in the Schedule to the Customs, Excise and Purchase Tax (Abolition of Special Exemption) Law, 5717-1957, or on fuel intended or used for a particular purpose prescribed by him;
(2)a drawback, full or partial, of the excise paid on fuel intended or used for a particular purpose prescribed by him, to be granted to the person who paid the excise or to the person who used the fuel for that purpose, all as prescribed by him.
(b)Where the Minister of Finance has prescribed a partial exemption or a partial drawback pursuant to the provisions of subsection (a), he may prescribe that the amount of the exemption or the drawback shall not exceed a maximum amount to be determined by the Director.
(c)Where the Minister of Finance has prescribed pursuant to the provisions of subsection (a) that a drawback shall be granted to a person who used fuel for a particular purpose, the drawback shall be granted to such user, provided that the Director is satisfied that the fuel purchased by the user is fuel on which excise was paid by the producer, and the user has proved that all of the following are met:
(1)the user used the fuel for the purpose prescribed by the Minister of Finance;
(2)the fuel was purchased directly from a person registered as an authorised dealer under the Value Added Tax Law;
(3)where the fuel was purchased at a filling station – the filling station is included in the list of stations, and for this purpose an internal filling station shall be deemed to be a station included in the list of stations; in this paragraph – "list of stations", "filling station" and "internal filling station" – as defined in the Fuel Sector (Prohibition of Fuel Sales to Certain Filling Stations) Law, 5765-2005.
(d)A drawback as provided in subsection (c) shall be granted if a request therefor has been submitted within one year from the date of issuance of a tax invoice within the meaning of section 47 of the Value Added Tax Law, in respect of the purchase of the fuel by the user.
(e)The Director may make the granting of the exemption or drawback prescribed under subsection (a) subject to conditions, including requiring the provision of security for compliance with the conditions for granting the exemption or drawback prescribed under this section.

Refund of excise on fuel to which special exemption applies§

10.

The Director may, subject to such conditions as appear to him appropriate, refund the excise, in whole or in part, paid on fuel in respect of which an exemption as provided in section 9 has been granted, if a written request therefor has been submitted to the Director within six months from the delivery of the fuel to the person entitled to the exemption.

Prevention of double benefit§

10a.

No drawback or refund of excise paid on fuel shall be granted to a person under sections 9 or 10, if an exemption, drawback or refund in respect of such excise has been granted to another person.

Transfer of fuel exempt from excise§

11.
(a)A person shall not transfer to another, nor use for a purpose other than the purpose for which the exemption was granted, fuel in respect of which an exemption from excise has been granted under section 9, including by way of a refund of excise paid under section 10, unless he has obtained the Director's consent thereto and has paid the full excise applicable at the time of payment of the excise, prior to such transfer or use.
(b)Notwithstanding the provisions of subsection (a), the Director may permit a person to transfer fuel or use fuel, as set out below, without payment of excise under the provisions of that subsection, subject to such conditions and restrictions as he may direct:
(1)transfer of the fuel to a person entitled to an exemption from excise thereon under section 9;
(2)use of the fuel for a purpose other than the purpose for which the exemption from excise was granted, provided that an exemption from excise has been prescribed under section 9 also in respect of the use of fuel for that other purpose.

Transfer of fuel in respect of which a drawback has been granted§

11a.

A person shall not transfer to another, nor use for a purpose other than the purpose for which the drawback was granted, fuel in respect of which a drawback has been granted under section 9.

Refund of excise on damaged fuel§

12.

Where the Director is satisfied that excise-liable fuel was damaged prior to its use while in the possession of the person liable to pay the excise, the Director may, at his discretion, direct that the excise for the damaged fuel, in whole or in part, shall not be collected, or shall be reduced or refunded, if a written request therefor has been submitted to the Director within a reasonable time from the date on which the damage occurred.

Bad debts not to be recognised§

12a.

Where excise has been paid on fuel that was removed from a place of production and was not sold, or was sold without consideration having been paid therefor – no refund of the excise thereon shall be granted.

13.§

(Repealed — תשכ״ח)

14.§

(Repealed — תשכ״ח)

Licence for production and operation of a storage site§

15.
(a)No person shall produce fuel or operate a storage site unless he has received a licence to do so from the Director and has provided security as the Director has prescribed for the fulfilment of his obligations; this provision shall not apply to the extraction of petroleum by a petroleum rights holder under the Petroleum Law.
(b)The Director may suspend, restrict or revoke a licence granted under this Law if he is satisfied that an excise licence holder has contravened a provision of this Law or has committed an act listed in section 117(b) of the Value Added Tax Law or in section 220 of the Income Tax Ordinance [New Version], with intent to evade payment of tax, provided that the act was committed in the circumstances of the licence holder's activity in the fuel field; a decision of the Director under this subsection is subject to appeal before a Magistrate's Court within one month from the date on which it was given, but the appeal does not stay its execution.
(c)Where no appeal has been filed against a decision under subsection (b), or an appeal was filed and the court confirmed the Director's decision with or without modification, the decision shall expire after one year if no criminal prosecution has been brought in respect of the offence that served as the ground for the Director's decision.
(d)(Repealed)

Approval of place of production and location of storage site§

16.

No person shall produce fuel or operate a fuel storage site except at a place in respect of which he has received approval from the Director on the basis of a written application submitted to him containing a description of the place of production or the location of the storage site. This provision shall not apply to a petroleum rights holder under the Petroleum Law.

Exemption from the obligation under sections 15 and 16§

17.

The Minister of Finance may, by Order, exempt producers and storage site operators from the obligations imposed on them under sections 15 and 16.

Removal of fuel from the place of production§

18.
(a)No person shall remove excise-liable fuel from a place of production or from a storage site without the Director's confirmation that the excise thereon has been paid or that its payment has been deferred.
(b)The Director may, in cases appearing to him appropriate, exempt a person or a category of persons from the obligation to obtain confirmation as provided in subsection (a), and may also permit the piping of fuel from one place of fuel production to another place of fuel production or to a storage site without payment of excise, in whole or in part.
(c)Where excise-liable fuel has been removed from the place of production or from the storage site in contravention of the provisions of this section, the excise licence holder who received approval under section 16 for the place of production or the storage site from which the fuel was removed shall pay double the excise, unless he has proved to the Director's satisfaction that he took all reasonable measures to prevent the removal of the fuel.

Holding of Fuel§

19.

No person shall hold excise-liable fuel or transfer it to another person in any manner, unless the excise applicable to the fuel has been paid, or payment has been deferred, or an exemption therefrom has been granted under this Law; provided that a person who holds fuel for personal use and purchased it from a person authorised to sell fuel shall not be charged with an offence under this Section if he did not know and, in the circumstances of the case, ought not to have known that the excise on that fuel had not been paid, in whole or in part.

Burden of Proof§

20.

In proceedings for an offence under section 19 in which a producer is a party, the burden of proof that the excise was paid, or that payment was deferred, or that an exemption therefrom was granted, lies with the producer.

Registers, Information and Stock Balance§

21.
(a)A person liable to report shall maintain registers and submit reports as prescribed in the Regulations.
(b)The Director, or a person authorised by him, may at any reasonable time inspect the registers of a person liable to report.
(c)A person liable to report shall furnish to the Director or to a person authorised by him, upon their demand and within the period they determine, information, particulars or declarations relating to this Law, and shall prepare a balance of the fuel stock in his possession; if the stock is found to contain less than the quantity of fuel that ought to be in it and the person liable to report has no reasonable explanation for the deficiency, the person liable to report shall pay double the excise on the deficiency as determined by the Director.
(d)In this Section, "person liable to report" – an excise licence holder, as well as a user of fuel in respect of which an exemption from excise has been granted under section 9, or a user of fuel in respect of which a rebate has been granted to him under that section.

Online Submission§

21a.

In addition to what is stated in section 21 and the Regulations made thereunder, the Minister of Finance, with the approval of the Finance Committee of the Knesset, may prescribe that reports, documents or forms that are required to be submitted to the Director under this Law, all or some of them, shall be submitted online as the sole means of reporting, and may so prescribe also in respect of a person not subject to the obligation of online submission who has chosen to do so; the provisions of section 67b of the Value Added Tax Law shall apply to such submission, with the necessary modifications.

Reporting in respect of an Opinion§

21b.
(a)In this Section –

"opinion" – a written opinion, signed by the opinion-giver, given, directly or indirectly, to a person and enabling or intended to enable a tax benefit, provided that one of the following applies to it:

(1)the fee for the opinion, in whole or in part, is contingent on the amount of the tax benefit that will accrue to the recipient of the opinion;
(2)it is a shelf plan;

"tax benefit" – including any of the following:

(1)a discount or relief from tax, deferral of a tax event, reduction of the amount of tax, or avoidance of tax;
(2)a refund of tax;
(3)a deferral of the date of payment of tax;

"fee" – an amount of at least NIS 100,000, agreed between the parties to be paid for the opinion in respect of the maximum total tax saving that will accrue to the recipient of the opinion;

"shelf plan" – one of the following:

(1)an opinion that consists mainly of uniform content on the same subject, given directly or indirectly by the opinion-giver to at least three tax-liable persons, within a period of two years, subject to the provisions of subsection (f), who are not relatives, and which does not depend mainly on the particular circumstances of each tax-liable person; for this purpose, "relative" – as defined in paragraphs (1) or (2) of section 88 of the Income Tax Ordinance [New Version];
(2)an opinion that was proposed to the recipient by the opinion-giver on his own initiative, and the recipient was bound by an obligation of confidentiality in respect of its content, in whole or in part.
(b)
(1)A person who received an opinion shall report thereon in a form to be determined by the Director, within 60 days of the end of the tax year in which the tax benefit in respect of the opinion was received, provided that submission of the opinion to the Tax Authority shall not be required; the report shall detail only the following:
(a)the fact of receipt of the opinion;
(b)the transaction or asset dealt with in the opinion;
(c)the type of tax issue affected by the opinion, as determined by the Director;
(2)A person who received an opinion after the end of the tax year shall report thereon in the form referred to in paragraph (1), within 60 days of the date on which he received it.
(c)A report as referred to in subsection (b) shall be submitted online, and the provisions of section 21a shall apply thereto.
(d)Notwithstanding what is stated in subsection (b), a person shall not be liable to report –
(1)in respect of a shelf plan as referred to in paragraph (1) only of the definition of "shelf plan" in respect of which no notice has been given under subsection (e);
(2)in respect of an opinion given to him regarding issues dealt with in proceedings in connection with a demand for underpayment as defined in the Indirect Taxes Law (Overpayment or Underpayment), 5728-1968, provided that the opinion was given during the period in which such proceedings are taking place, and in respect of that reporting period only.
(e)A person who gave an opinion that is a shelf plan under paragraph (1) of the definition of "shelf plan" shall notify thereof the person who received it, provided that he is the third or subsequent person to whom the opinion was given.
(f)The provisions of this Section shall not apply to a public institution as defined in section 9(2) of the Income Tax Ordinance [New Version], to a body of persons as referred to in paragraph (2) of the definition of non-profit organisation in the Value Added Tax Law, or to a dealer whose transaction turnover does not exceed NIS 3 million.

Taking a Reportable Position§

21c.
(a)In this Section –

"tax benefit" – as defined in section 21b;

"reportable position" – a position in respect of which all of the following apply:

(1)it is contrary to a position published by the Tax Authority up to the end of the preceding tax year;
(2)the tax benefit arising from it exceeds NIS 2 million in a year or NIS 5 million over a period of not more than four years.
(b)
(1)The position of the Tax Authority as referred to in paragraph (1) of the definition of "reportable position" shall be published in a separate location on the Tax Authority's website, after the Israel Bar Association, the Institute of Certified Public Accountants in Israel and the chamber as defined in the Law for the Regulation of the Occupation of Representation by Tax Advisers, 5765-2005, have been given a reasonable opportunity to present their arguments in respect thereof prior to its publication;
(2)the position of the Tax Authority shall be worded in clear and intelligible language;
(3)
(a)the number of positions that the Tax Authority publishes shall not exceed 25 in a year; if the Tax Authority seeks to publish additional positions in the same year, the Minister of Finance shall submit the additional number of positions so requested for the approval of the Finance Committee of the Knesset;
(b)notwithstanding what is stated in sub-paragraph (a), in the years 2016 and 2017 the Tax Authority shall be permitted to publish 50 positions in each year.
(c)A person who takes a reportable position shall report thereon in a form to be determined by the Director, within 60 days of the end of the tax year in which he took a reportable position as aforesaid; the provisions of section 21b(c) shall apply to a report under this subsection.
(d)The provisions of this Section shall not apply to a public institution as defined in section 9(2) of the Income Tax Ordinance [New Version], to a body of persons as referred to in paragraph (2) of the definition of non-profit organisation in the Value Added Tax Law, or to a dealer whose transaction turnover does not exceed NIS 3 million.

Provision of a Workplace for the Officer in Charge§

22.

A producer shall provide at the place of production a place and reasonable equipment, to the satisfaction of the Director, for clerical work for an officer to be appointed by the Director.

Supervision over the Introduction and Removal of Fuel from the Area and from the Gaza and Jericho Areas§

22a.

For the purpose of supervising the implementation of the provisions under this Law, the Minister of Finance may, in consultation with the Minister of Defence, direct the places at which the introduction of fuel into the Area and the Gaza and Jericho Areas and its removal therefrom shall be permitted, and the days and hours at which such introduction or removal shall be permitted, and may further direct that approval be required from the Director, in such manner as he prescribes, that the fuel was introduced or removed in accordance with the said provisions; a direction under this Section may be general or by types of fuel; for the purposes of this Section, "the Area" and "the Gaza and Jericho Areas" – as defined in the Value Added Tax Law.

Ancillary Powers§

23.
(a)For the purpose of supervising the implementation of the provisions under this Law, the Director or a person authorised by him for that purpose may –
(1)demand information and documents and also take fuel samples, to the extent necessary for the implementation of the provisions of this Law, from any person whom he has reasonable grounds to believe is producing fuel or selling fuel or using marking-liable fuel or fuel exempt from excise or in respect of which a refund has been given pursuant to an Order under section 9 or fuel used for the production of products;
(2)enter at any reasonable time any place which he has reasonable grounds to believe serves as a place for the production of fuel or the sale thereof or the use thereof as specified in paragraph (1);
(3)inspect fuel in a motor vehicle, other than a private car, as defined in section 1 of the Traffic Ordinance [New Version]; however, fuel in a private car found at a place where marking-liable fuel is used may be inspected.
(b)
(1)to interrogate any person who in his opinion is connected with the commission of an offence as aforesaid, or who has information regarding an offence as aforesaid, or who may have information regarding an offence as aforesaid; the provisions of sections 2 and 3 of the Criminal Procedure Ordinance (Testimony) shall apply to an interrogation under this section;
(2)to seize an object, fuel or document (hereinafter – object) as referred to in section 32(a) of the Criminal Procedure Ordinance (Arrest and Search) [New Version], 5729-1969 (hereinafter – the Arrest and Search Ordinance) or to block fuel that is liable to seizure as referred to in that section, connected with the commission of an offence as aforesaid.
(3)to conduct a search in any house or place, pursuant to a search warrant, as defined in section 23 of the Arrest and Search Ordinance; the provisions of sections 24(a)(1), 26 to 28 and 45 of the Arrest and Search Ordinance shall apply to such a search, with the necessary modifications.

Seizure of Objects§

23a.

The provisions of Chapter IV of the Arrest and Search Ordinance shall apply, with the necessary modifications, to the seizure and forfeiture of objects or to the blocking of fuel as referred to in section 23(b)(2).

24.§

(Repealed — תשע״ג)

25.§

(Repealed — תשע״ג)

Monetary Penalty§

25a.
(a)If the Director has reasonable grounds to believe that a person sold marking-liable fuel for purposes other than those prescribed in an Order under section 2(b), he may impose on him a monetary penalty at the rate of the fine prescribed in section 61(a)(3) of the Penal Law, 5737-1977 (hereinafter – the Penal Law), or three times the amount of the excise saved, whichever is higher.
(b)If the Director has reasonable grounds to believe that a person used marking-liable fuel, in a use that is not a sale, for purposes other than those prescribed in an Order under section 2(b), he may impose on him a monetary penalty at the rate of the fine prescribed in section 61(a)(1) of the Penal Law.
(b1)If the Director has reasonable grounds to believe that a person transferred or used fuel in respect of which an exemption from excise was granted under section 9, without having received consent thereto or without having paid the applicable excise prior to the transfer or use, contrary to the provisions of section 11, he may impose on him a monetary penalty at the rate of double the said excise.
(b2)If the Director has reasonable grounds to believe that a person to whom a rebate was granted under section 9 transferred or used fuel contrary to the provisions of section 11a, he may impose on him a monetary penalty at the rate of double the excise that was refunded.
(b3)If the Director has reasonable grounds to believe that a person introduced fuel into the Area or the Gaza and Jericho Areas or removed it therefrom contrary to the provisions under section 22a, he may impose on him a monetary penalty at the rate of the excise applicable to that fuel.
(c)In this Section and in sections 25b to 25e, "the Director" – including a person authorised by him in respect thereof.

Demand for and Payment of the Monetary Penalty§

25b.

A monetary penalty shall be paid, pursuant to a written demand from the Director, within thirty days of the date of receipt of the demand; the demand shall be issued after the person to whom it is directed has been notified of the intention to issue it and has been given an adequate opportunity to present his arguments.

Shekel Interest and Arrears Charges§

25c.

If the monetary penalty is not paid on time, shekel interest and arrears charges shall be added thereto until payment, and the provisions of the Interest and Linkage Law shall apply, with the necessary modifications.

Appeal against a Monetary Penalty§

25d.
(a)An appeal against a demand for payment of a monetary penalty may be brought before a Magistrate's Court.
(b)The appeal shall be submitted within thirty days of the date on which notification of the imposition of the monetary penalty was given.
(c)An appeal does not stay payment of the monetary penalty unless the court has ordered otherwise.
(d)If the appeal is allowed, the amount paid shall be refunded and shekel interest shall be added thereto from the date of payment until the date of refund, and the provisions of the Interest and Linkage Law shall apply in respect of such interest, with the necessary modifications.
(e)A decision of the Magistrate's Court in an appeal may be further appealed, with leave, before the District Court, which shall hear the appeal by a single judge.

Indictment§

25e.
(a)Nothing in the provisions of section 25a derogates from the authority of the Director to file an indictment as referred to in section 26 in respect of the breach, if he considers that the circumstances justify it, for reasons that shall be recorded.
(b)If an indictment has been filed against a person for an offence as referred to in section 26, he shall not be liable in respect thereof to payment of a monetary penalty, and if it has been paid, the amount paid shall be refunded to him and shekel interest shall be added thereto from the date of payment until the date of refund, and the provisions of the Interest and Linkage Law shall apply in respect of such interest, with the necessary modifications.

Administrative Prohibition§

25f.
(a)If the Director has reasonable grounds to believe that marking-liable fuel was sold for use for purposes other than those prescribed in respect thereof, he may prohibit the sale of fuel in general, or the sale of a particular type of fuel at that place, for a period as he directs.
(b)The prohibition on sale shall be implemented pursuant to a written demand from the Director; the demand shall be issued after the Director has notified the person to whom the demand is directed of the intention to issue it and has given him an adequate opportunity to present his arguments.
(c)An appeal against a prohibition on sale may be brought before a Magistrate's Court.
(d)A decision of the court may be further appealed, with leave, before a District Court.
(e)If a criminal action for an offence on account of which the sale was prohibited has not been brought within three months of the date on which the sale of a particular type of fuel was prohibited, or within thirty days of the date on which the sale of fuel in general was prohibited, as the case may be, the prohibition shall be cancelled.

Penalties§

26.
(a)A person who contravened any provision of this Law or who furnished to the Director or to a person authorised by him or to an excise officer information or a declaration that is incorrect, or who misled them in a particular detail liable to impair the performance of their duties, is liable – to two years' imprisonment, or a fine of 5,000 liras or three times the excise applicable to the fuel in respect of which the offence was committed, whichever amount is greater.
(a1)A person who sold marking-liable fuel for purposes other than those prescribed in an Order under section 2b is liable – to 5 years' imprisonment or double the fine prescribed in section 61(a)(4) of the Penal Law.
(b)If a person is convicted of an offence as aforesaid, the court may, in addition to any other penalty, order that the fuel and any other thing in respect of which the offence was committed be forfeited, in whole or in part, in favour of the State; if the court has ordered forfeiture, the forfeited item shall be dealt with as the Director directs.
(c)A person who failed to report an opinion as defined in section 21b(a), contrary to the provisions of that section, is liable – to the fine prescribed in section 61(a)(2) of the Penal Law.
(d)A person who failed to give notice of a shelf plan as defined in section 21b(a), contrary to the provisions of section 21b(e), is liable – to one year's imprisonment or the fine prescribed in section 61(a)(2) of the Penal Law.
(e)A person who failed to report a reportable position as defined in section 21c(a), contrary to the provisions of that section, is liable – to the fine prescribed in section 61(a)(2) of the Penal Law.

Forfeiture§

27.

The court may order the forfeiture of fuel in respect of which an offence was committed even if the person suspected of the offence is unknown, or has absconded, or died before the conclusion of the trial.

Liability of Directors and Officers§

28.

Where a company, cooperative society or any other body of persons has committed an offence under this Law, every director, partner, bookkeeper or other responsible officer of that body shall also be charged therewith, unless he proves that the offence was committed without his knowledge or that he took all appropriate measures to ensure compliance with the provisions of this Law.

Compounding of Offences§

29.

Where the Director is satisfied that a person has committed an offence against any provision of this Law, he may, with that person's consent, accept from him a composition that shall not be less than double the excise applicable to the fuel in respect of which the offence was committed and shall not exceed the highest fine that may be imposed for that offence; if a criminal action has been brought, no composition shall be accepted unless the Attorney General has ordered the discontinuation of the proceedings.

Delegation of Powers§

30.

The Director may delegate his powers and functions under this Law, except the powers under section 15(b), to another State employee, whether generally or in respect of a particular matter or a particular area or place.

Implementation and Regulations§

31.

The Minister of Finance is charged with the implementation of this Law and may make Regulations on any matter relating to implementation, including Regulations concerning –

(1)the arrangements for the storage, keeping and transportation of fuel from place to place, to the extent necessary for the effective implementation of this Law;
(2)supervision of the production process of fuel, to the extent necessary for the effective implementation of this Law;
(3)the conditions for the removal of fuel intended for export from the place of production and for the transfer of fuel from a place of production to another place of production without payment of excise; in this paragraph, "place of production" – including a storage site;
(4)a fee to be paid by an excise licence holder for a licence under section 15 or for an approval under section 16, and also concerning the duration of validity of such a licence or approval;
(5)a fee to be paid by a producer for work performed by customs and excise officers at his place of fuel production outside the hours designated by the Director as regular working hours.

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