Central Excise duty on "Demo Cars" - Regarding - Central Excise - Letter F. No. 6/40/2002-CX.I

Letter F. No. 6/40/2002-CX.I Dated 1-4-2003 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Central Excise duty on "Demo Cars" - Regarding I am directed to say that it has been brought to the notice of the Board that the Assessees manufacturing passenger cars and their spare parts, are clearing a car of each model, called the "Demo Car", in terms of their agreement with the dealers, on payment of duty on a lesser value when compared to the value of normal sales of such vehicles to their dealers. (2) The matter has been examined in the Board and after careful consideration it has come to the conclusion that since 'Demo Cars' are also manufactured like any other passenger car manufactured by the Assessees, there can be no difference in the value of the car when offered to the dealer. Accordingly, the Central Excise Duty payable on 'Demo Cars' would be the same as that paid on similar normal car. (3) These instructions may be brought to the notice of the trade field formations.