NTF. NO. 64/2003-CE, DT. 06/08/2003

Motor Vehicles-Condition of CE Exemption Changed

G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government, being satisfied that it is in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 6/2002-C.E, dated 1st March, 2002, namely:-

In the annexure to the said notification, against condition No. 51, for the entries under Column heading “Conditions”, the following entries shall be substituted, namely:-

“(a) The manufacturer pays duties of excise at the rate specified under the First schedule and the Second Schedule read with exemption contained in any notification of the Government of India in the Ministry of Finance (Department of Revenue), except for this exemption, in the case of motor vehicle falling under sub-heading No. 8702.10 or sub-heading No. 8703.90 of the First Schedule, at the time of clearance of the vehicle;

(b) in the case of ambulance, the concessional rate of duty shall apply only when the ambulance is supplied to-

(1). hospitals, nursing homes or sanatorium, run by the Central Government or a State Government or a Union territory Administration or a local authority, or are registered as such with any Department of the Central Government or a State Government or a Union territory Administration or a local authority; or

(2). the Indian Red Cross Society;

(c) the manufacturer takes credit of the amount equal to the amount of duty paid in excess of that specified under this exemption, in the Account Current, maintained in terms of Part V of the Excise Manual of Supplementary Instructions issued by the Central Board of Excise and Customs and thereafter files a claim for refund of the said amount of duty before the expiry of six months from the date of payment of duty on the said motor vehicle, with the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction, along with the following documents, namely:-

(1). an intimation that the amount of refund of duty claimed has been credited by the manufacturer in his Account Current, also stating the amount of credit so taken;

(2). a certificate from an officer authorized by the concerned State Transport Authority, to the effect that the said motor vehicle has been registered for sole use as ambulance or taxi, as the case may be, within three months , or such extended period not exceeding a further period of three months as the said Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, may allow, from the date of clearance of the said motor vehicle from the factory of the manufacturer;

(3). a copy of the document evidencing the payment of excise duty, as mentioned in paragraph (a) above;

(4). where the manufacturer has collected an amount, as representing the duties of excise, in excess of the duties payable under this exemption from the buyer, an evidence to the effect that the said amount has been duly returned to the buyer; and

(5). where the manufacturer has not collected an amount, as representing the duties of excise, in excess of the duties payable under this exemption from the buyer, a declaration by the manufacturer to that effect;

(d) Within seven days of the receipt of the said claim for refund, the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, after such verification, as may be necessary, shall determine the amount refundable to the manufacturer and shall intimate the same to the manufacturer. In case the credit taken by the manufacturer is in excess of the amount so determined, the manufacturer shall, within five days from the receipt of the said intimation, reverse the said excess credit from the said Account Current maintained by him. In case the credit availed is lesser than the amount of refund determined, the manufacturer shall be eligible to take credit of the balance amount; and

(e) The recovery of the credit availed irregularly or availed in excess of the amount of credit so determined, and not reversed by the manufacturer within the period specified under paragraph (d ) above, shall be recovered as if it is a recovery of duty of excise erroneously refunded. In case such irregular or excess credit is utilized for payment of excise duty on clearance of excisable goods, the said goods shall be considered to have been cleared without payment of duty to the extent of utilization of such irregular or excess credit.”.

[F.No. 261/10/2003-CX]

(G. S. Karki)
Under Secretary to Government of India

Note.- The principal notification No. 6/2002-Central Excise, dated the 1st March, 2002 was published in the Gazette of India vide number G.S.R. 127 (E), dated the 1st March, 2002 and was last amended vide notification No.63/2003-Central Excise, dated the 31st July, 2003, number G.S.R. 618(E), dated the 31st, July, 2003.

(Please refer NTF. NO. 74/2003-CE, DT. 20/10/2003 for further amendments in Ntf. No. 6/2002, DT.01/03/2002)

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