Motor Vehicles - Changes due to new Tariff - Notification of chassis, bodies and vehicles under rule 191-B - Export thereof under bond - Procedure Regarding - Central Excise - 261/56/1/87-CX.8

Motor Vehicles - Changes due to new Tariff - Notification of chassis, bodies and vehicles under rule 191-B - Export thereof under bond - Procedure Regarding F. No. 261/56/1/87-CX.8 Dated 5-3-1987 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Motor Vehicles - Changes due to new Tariff - Notification of chassis, bodies and vehicles under rule 191-B - Export thereof under bond - Procedure Regarding. Reference to Board's F. No. 261/34/1/81-CX.8, dated 21-12-1981 and F.No. 261/34/1/81-CX.8, dated 4-2-1983 wherein a procedure for in bond clearances of motor vehicles chassis to another premises for body building before it is finally exported is prescribed. 2. In the old Central Excise Tariff chassis included body built motor vehicles also. Therefore, once duty on chassis was paid no further duty on built up vehicle was leviable. However, with the introduction of new Central Excise Tariff Act, 1985, (5 of 1986) motor vehicles, chassis and bodies fall under different sub-headings chargeable to duty separately. Consequent to this change certain difficulties were faced by exporters of motor vehicles who were required to pay duty on chassis and then obtain drawback. To obviate this difficulty Notification No. 53/59, dated 9-5-1959 has been suitably amended vide Notification No. 21/87, dated 16-2-1987 to include chassis fitted with engines and bodies for in bond manufacture of motor vehicles under rule 191-B. This facility has also been extended to nylon twine yarn manufactured out of nylon yarn under the aforesaid amending Notification. 3. It may be ensured that in both the aforementioned cases drawback is not admissible. In this context the procedure prescribed in Board's instructions issued under F. No. 261/29A/6/76-CX.8, dated 19-10-1976 henceforth should be followed