Clarifications Regarding Central Excise Duty Concession on Cars for
Physically Handicapped Persons
Central
Excise Circular No. 640 dated 24th June 2002
Doubts
have been raised regarding the scope of exemption Notification No. 6/ 2002 dated
1.3.2002 (S. No. 216) and its predecessor notifications 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 long as it is capable
of being used by 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 in 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 view of local Excise authorities, cars with automatic
transmission are used by normal person 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 Sl. No. 216 of notification No. 6/2002
dated 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. The 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 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 cannot 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 the 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.
8.
Hindi version will follow.
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