Circular No. 640/31/2002-CX, Dt. 24/06/2002

Cars for Physically Handicapped Persons-Eligibility Norms for Excise Duty Concession
Subject:- Central Excise duty concession on,"cars.for physically handicapped persons" - Clarification - regarding.

Sir,

Doubts have been raised regarding the scope of exemption Notification No.6/2002, dt.1.3.2002 (S.No.216) and its predecessor notifications I as amended (which provides concessional rate of duty to cars for physically handicapped persons) as to whether the concession could be extended to any car so Iong as it is capable of being used by a physically handicapped person and so certified by an officer not below the rank of Deputy Secretary in the Ministry of Industry, even if the car was not specifically designed or manufactured for a physically handicapped person. Special devices or gadgets for handicapped person may be like auto transmission, grip assembly, accelerator pedals, hand control, etc. fitted in the car depending upon whether the disability is in right/left arm or right/left leg or in both legs or in combination thereof.

2. A vehicle manufacturer have represented that they are manufacturing cars with "Automatic Transmission" which are suitable for persons having left leg disability. Some customers had approached Ministry of Industry after medical examination, etc and got required certificate issued. Accordingly, they sought permission from Central Excise Department to clear these vehicles at concessional duty or in a few cases sought refund. However, local Excise department has rejected all such cases on the ground that this exemption is available only for those cars which have been manufactured for handicapped persons. As per the views of local Excise authorities, cars with automatic transmission are used by normal persons also & hence are not eligible for excise concession even though Ministry of Industry had issued prescribed certificate.

3. The matter has been examined. The description of the goods which is allowed concessional rate of duty as per SI.No.216 of notification No.6/2002 dt.1.3.2002 and its predecessor notifications is "cars for physically handicapped persons’, subject to condition "54’ of the notification. The condition No.54 attached against this entry merely requires that an officer not below the rank of Deputy Secretary to the Government of India in the Ministry of Industry certifies that the said goods are capable of being used by the physically handicapped persons". This condition does not require or state that the particular car should be specially designed or manufactured for use by the physically handicapped person. In fact, the whole emphasis appears to be more on the end-use rather than the nature of the product itself. Therefore, so long as the car has some special features and an officer, not below the rank of Deputy Secretary in the Ministry of Industry, clarifies that the particular car is capable of being used by a handicapped person, concession can not be denied. Just because normal persons can also drive these vehicles there is no ground for denying the concession. In fact, every vehicle which can be used by a handicapped person can also be used by a normal person

4. Since auto-transmission is one of the special devices required by person, with left leg disability, the Ministry of Industry has been issuing appropriate Certificates in respect of auto-transmission motor vehicles for extending concessional rate of duty to such handicapped persons. The concession will obviously not be available to all automatic transmission vehicles, but only in respect of those vehicles which are bought by physically handicapped persons and who produce necessary certificate from Ministry of Industry.

5. In view of the above, it is clarified that the concession should not be denied in respect of any motor vehicle with special features (like auto transmission) which is capable of being used by a handicapped person and for which necessary certificate from the Ministry of Industry is produced in this regard.

6. The field formations may be suitably informed.

7. Receipt of this Circular may please be acknowledged.

Sd/-
(Suraksha Katiyar)
Under Secretary to the Government of India

Issued by:
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs, New Delhi F.No.156/11/2001-CX.4.

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