Government of India
Ministry of Finance
Department of Revenue
Tax Research Unit
Circular No. 972/06/2013.CX
New Delhi, Dated 24th July, 2013.
To
All Chief Commissioners of Central Excise,
All Chief Commissioners of Customs & Central Excise.
Subject: Applicable excise duty on Sedan cars like Maruti SX4, Honda Civic,
Toyota Corolla Altis under notification No. 12/2013-CE dated 1st March, 2013 -
regarding
Sir/Madam,
I am directed to invite your attention to the above mentioned subject and to say
that references have been received from motor vehicle manufacturers, seeking
clarification as to whether the excise duty of 30% is applicable on sedan cars
like Maruti SX4, Honda Civic and Toyota Corolla Altis. It has been stated that
these motor vehicles satisfy all the three conditions mentioned at Sl. No. 284A
of the Table in
notification No. 12/2013-CE, dated the 1st March, 2013, viz. (i)
the engine capacity exceeds 1500 cc; (ii) the length exceeds 4000 mm and (iii)
ground clearance is 170 mm and above. However, these vehicles are not popularly
known as Sports Utility Vehicles and that these are in the nature of sedans.
- The matter has been examined. In the Budget 2013-14, excise duty was
increased from 27% to 30% on motor vehicles of engine capacity exceeding 1500
cc, popularly known as Sports Utility Vehicles (SUVs) including utility
vehicles. In the Explanation appended at Sl. No. 284A of the aforecited
notification, it has been mentioned that for the purposes of this entry, SUV
includes a motor vehicle of length exceeding 4000 mm and having ground clearance
of 170 mm and above. From this, it may be seen that the higher excise duty of
30% is applicable on motor vehicles which are popularly known as SUVs and which
satisfy all the three conditions, viz. (i) the engine capacity exceeds 1500 cc,
(ii) the length exceeds 4000 mm; and (iii) the ground clearance is 170 mm and
above. Maruti SX4, Honda Civic and Toyota Corolla Altis are stated to satisfy
all the three conditions but, they are not popularly known as SUVs and neither
are they known so in trade parlance. They are reportedly known as sedans in
trade and common parlance.
- In view of the above, it is clarified that the aforecited motor vehicles,
which are known as sedans, will attract the excise duty of 27% as applicable to
large segment cars.[Sl. No. 284 (ii) of the Table in notification ibid]
- Difficulties, if any, faced in the implementation of above instructions may
be brought to the notice of the Board.
(Amitabh Kumar)
Director (TRU)
F. No. 354/04/2013 - TRU