Sr. No. 195 of Notification No. 4/97 provides concessional rates of duty to Motor Vehicles registered for use solely as taxi or ambulance subject of the following conditions:

(a)    The manufacturer at the time of clearance of motor vehicle mentioned against S.No.195 in column (3) of the said Table (hereinafter in this condition referred to as the said motor vehicle) has paid excise duty calculated at the rate of 40% ad valorem;

(b)    The manufacturer furnishes to the Assistant Commissioner of Central Excise a certificate from an officer authorised by the concerned State Transport Authority, to the effect that the said motor vehicle has been registered for use solely as a taxi or ambulance, as the case may be, within three months of the clearance of the said motor vehicle from the factory of manufacture or such extended period as the said Assistant Commissioner may allow;

(c)    The manufacturer had not collected from the person, group of persons, any body or organisation, as the case may be, in whose name the said motor vehicle has been registered as a taxi or ambulance, as the case may be, or in case had collected, has refunded to such person, group of persons, any body or organisation, the amount equivalent of such exemption of duty;

(d)    The exemption in case of ambulance is only applicable for registered hospitals, nursing homes and sanatoriums and such other organisations as the Central Government may notify, in this behalf, in the Official Gazette; and

(e)    The manufacturer files a claim for refund of duty paid in excess of that specified against S.No. 195 in column (4) of the said Table, in terms of Section 11B of the Central Excise Act, 1944 (1 of 1944).

        There were similar exemption in the earlier period vide Notifications No. 64/93-CE dated 28.2.1993 and 8/96-CE dated 23.7.1996.

2.0   It has been represented to the Board that there has been undue delay in sanctioning refund claims to the manufacturer due to the following reasons:

(i)     The certificate of Registration submitted to Assistant Commissioner within 90 days cannot be linked up with the refund claim submitted subsequently.

(ii)      There is lot of delay in verification of the refund claim in the Divisional Office and the Range Office.

3.0   The matter has been examined. It is absolutely necessary that the refund claims are disposed of within three month from the date of their receipts otherwise there would be liability on the department to pay interest. In order to overcome the problem of linking the certificate of registration with the refund claim, there is no harm if the registration certificate is submitted along with the refund claim as the Assistant commissioner has power to extend the period for submitting certificate of registration. The manufacturer may be allowed to submit the certificate of registration along with the refund claim. However, there will be no relaxation in the condition that the motor vehicle should be registered within 90 days from the date of clearance from the factory. The refund claim has to be filed within the time limit governed under Section 11B.

4.0   The refund claim should be sent to the Range Office within seven days from the date of receipt in the Division Office. The Range Superintendent should complete the verification and should send the papers to the Assistant Commissioner within two weeks. Within one week of the receipt of the refund papers from the Range Superintendent the Assistant Commissioner should decide the refund within one week.

5.0   The Assistant Commissioner should visit the Range Office at least once in a week to check that there has not been any delay in submitting the verification report by the Range Officer. It there are any such cases, the Assistant Commissioner should get them verified on the spot and should take immediate action to dispose of the refund claim. The assistant Commissioner should also take action against the Range superintendent for not submitting the verification report within 15 days.

6.0   The Commissioner should take immediate action to ensure that these instructions are followed strictly and should personally monitor the disposal of the refund claim every month.