Central Excise circular about excise duty on sedan cards like SX4,Honda civic and Altis

Central Excise department issued a circular no. 972/2013 dated 24 July 2013 about applicable excise duty on sedan cars like Maruti SX4, Honda Civic and Toyota corolla altis. Full circular is as under.

1-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.

2.  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.

3.            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]

4.            Difficulties, if any, faced in the implementation of above instructions may be brought to the notice of the Board.
Tags-excise duty on cars in india,excise duty in india on cars,excise duty increased on cars,excise circular no. 972,excise circular no. 972/2013,central excise circular 972 on cars
Share on Google Plus

About Nitin Aggarwal

    Blogger Comment
    Facebook Comment

0 comments:

Post a Comment