|
Regarding Notification 64/93-CE dated 28.2.93 as amended by Notification
11/94-CE dated 1st March 1994
Circular
No. 122
dated 8th May 1995
Notification
64/93 provides, inter alia, that in a case where saloon car after clearance has
been registered for use solely as a Taxi, the manufacturer of the said saloon
car shall be entitled to further exemption of duty of 7% subject to the
conditions, namely:
(iii)
the manufacturer had not collected from the person in whose name such
saloon car had been registered as a taxi, or in a case had collected and has
refunded to such person, the amount equivalent of such further exemption of
duty; and
(iv)
the manufacturer files a claim from refund of duty in terms of section
11B of Central Excise and Salt Act, 1944 (1 of 1944).
2.
In regard to above a doubt has been expressed as to what should be taken
to be the date of refund, viz: -
i)
whether the date of preparation of the cheque by the manufacturer or
ii)
dated of despatch by the manufacturer of the cheque to the buyer or
iii)
date of receipt of the cheque by the buyer of the taxi or
iv)
the date of encashment of the cheque by the buyer of the taxi.
3.
The matter has been examined by the Board. The word refund has to be
construed to mean the refund to person on whose name the saloon car has been
registered as a taxi, (hereinafter referred to as the 'person concerned') since
mere preparation and issue of cheque may not lead to even receipt of the cheque
by the person concerned. On the other hand, the encashment of the cheque could
be delayed by the person concerned or on account of other circumstances.
Therefore what is material and relevant is the receipt of cheque by the person
concerned. However the refund application is to be made by a manufacturer within
six months from the date of payment of duty on saloon cars under section 11B. If
the date of receipt of the cheque is taken to be the date of refund, then the
available time for refund under section 11B would be reduced by the time taken
in delivery of cheque to the person concerned. Hence, a harmonious construction
of the provisions would require that refund application be made within 6 months
from the date of payment of duty and that the cheque is issued to the person co
concerned before the refund claim can be sanctioned by the Assistant Collector.
|