Exemption to Body Built Motor Vehicles [Ch. 87] - 265/87 - Central Excise - Tariff

Exemption to Body Built Motor Vehicles [Ch. 87]

Notification No. 265/87-C.E.

Dated 10-12-1987

Whereas the Central Government is satisfied that according to a practice that was generally prevalent regarding levy of duty of excise (including non-levy thereof) under section 3 of the Central Excises and Salt Act, 1944 (1 of 1944), the duty of excise on body built motor vehicles, falling under Heading No. 87.02 or 87.04 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) and manufactured from chassis on which the duty of excise leviable under the said section 3 has been paid but no credit of the duty paid on the chassis was taken under rule 56A or 57A of the Central Excise Rules, 1944, was being levied, during the period commencing on the 1st day of March, 1986 and ending with the 2nd day of April, 1986, under the said section 3, at a rate equivalent to the duty differential between the duty of excise leviable on the value of such motor vehicles and the duty of excise leviable with reference to that part of the value thereof which represents the value of chassis used in such motor vehicles;

Now, therefore, in exercise of the powers conferred by section 11C of the Central Excises and Salt Act, 1944 (1 of 1944), the Central Government hereby directs that so much of that portion of the duty of excise as is in excess of that payable on such motor vehicles, but for the said practice, shall not be required to be paid in respect of the motor vehicles on which the duty of excise was short-levied during the period aforesaid, in accordance with the said practice.