Exemption to fuel efficient light commercial motor vehicles [Ch. 87] - 257/88 - Central Excise - Tariff

Contents

Exemption to fuel efficient light commercial motor vehicles [Ch. 87]

Notification No. 257/88-C.E.

Dated 30-9-1988

In exercise of the powers conferred under sub-section (1) of section 5A of Central Excises and Salt Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in public interest so to do, hereby exempts fuel efficient light commercial motor vehicles of payload not exceeding 4000 kilograms employing indirect injection (IDI) engines and falling within Chapter 87 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) from so much of the duty of excise leviable thereon which is specified in the said schedule as is in excess of the amount calculated at the rate of 10 per cent ad valorem :

Provided that such motor vehicles are manufactured under a programme duly approved both by the Ministry of Industry and the Industrial Adviser of the Directorate General of Technical Development in the Ministry of Industry.

Provided further that where a manufacturer is entitled for exemption under this notification but is not able to produce a fuel-efficiency certificate at the time of clearance such manufacturer shall undertake to the Assistant Collector of Central Excise that he will produce such fuel-efficiency certificate within a period of three months or such extended period not exceeding three months as may be determined by the Collector of Central Excise and also undertake to pay an amount equal to the difference between the duty leviable but for the exemption contained herein and that already paid at the time of clearance, if he fails to produce the fuel-efficiency certificate within the said period.

Explanation : For the purpose of this notification "Fuel efficient light commercial motor vehicle employing indirect injection (IDI) engines" means a motor vehicle which satisfies specific fuel consumption and kilometre or net-tonne kilometre moved per litre of diesel as specified in columns (3), (4) and (5) of the Table hereto annexed, with further upgradation of, kilometre or net tonne kilometre norms from the date from which such upgraded norms shall be applicable, as specified in column (6) of the said Table,

and certified accordingly by an officer not below the rank of Deputy Secretary to the Government of India in the Ministry of Industry, Department of Industrial Development on the basis of the tests (hereinafter referred to as Fuel Efficiency Test) carried out by the Vehicle Research Development Establishment of the Ministry of Defence, Ahmednagar, (Maharashtra) or the Automotive Research Association of India, Pune (Maharashtra) having regard to the following, namely :-

(a) the fuel efficiency test shall be conducted for the rated GVW or payload of the vehicle as specified in the table, regardless of whether it is used for passenger transport or goods transport;

(b) the vehicle shall be tested with cab and body as follows :-

(i) the vehicle shall be tested with the standard cab only produced by the manufacturer; and

(ii) the vehicle shall be tested with the body used by the manufacturer as standard fitment; and

(iii) where the vehicle is not having standard production body or is having more than one version of standard production body, the following allowances shall be applied :

Allowances in weight		GVWRange
(i)	Below 3000 kgs.	120 kg
(ii)	3000 kgs and above and upto 4000 kgs	200 kg
(iii)	Exceeding 4000 kgs but not exceeding 6000 kgs	400 kg

(d) the fuel efficiency tests shall be carried out on a selected level test track at a steady speed of 40, 50 and 60 KMS PER HOUR as specified in the table, for a minimum stretch of 1 kilometre, and the average of 20 runs, comprising 10 runs in each direction, shall be taken for carrying out tests and the test figures shall be corrected to sea level altitude and to +25 degrees Centigrade ambient temperature;

(e) the specific fuel consumption shall be taken as the minimum value at full load and full throttle in accordance with testing conditions stipulated in IS : 10000 (Part VIII)-1980; and

(f) detailed fuel efficiency testing procedures shall be as specified by the Ministry of Industry, (Department of Industrial Development).

TABLE

S. No.	Description of the vehicle	Specific fuel consumption per KW hour - not exceeding	Kms per Ltr. of Diesel at 50 KMPH - not less than	NTKMPL of diesel - Not less than			Upgradation
				At 40 KMPH	At 60 KMPH
(1)	(2)	(3)	(4)	(5)			(6)
1.	Light Commercial Motor Vehicle of pay load not exceeding 2500 kilograms with Indirect Injection Engines (IDI)	275 gms	100	Not applicable			Norms specified in Col. 4 shall stand upgraded by 5% with effect from 1-4-1990
2.	Light Commercial Motor Vehicles of pay load exceeding 2500 Kms. and not exceeding 4000 Tonnes - Indirect Injection Engines (IDI)	275 gms	Not applicable	86.6t 3.4 + 1.53t		U 2.7 + 2.35t	Norms specified in Col. 5 shall stand upgraded by 5% with effect from 1-4-1989
				where t is the pay load in tones