Fuel-efficient motor car [Heading 87.03] - 468/86 - Central Excise - Tariff

Fuel-efficient motor car [Heading 87.03]

Notification No. 468/86-C.E.

Dated 24-12-1986

In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, the Central Government hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 332/86-Central Excises, dated the 2nd June, 1986, namely :-

In the said notification, -

(a) after the opening portion and before the Explanation, the following proviso shall be inserted, namely :-

"Provided that such fuel efficient motor cars are manufactured under a phased manufacturing programme duly approved by the Ministry of Industry and the Industrial Adviser of the Directorate General of Technical Development in the Ministry of Industry and the manufacturer produces a certificate from the Industrial Adviser in the Directorate General of Technical Development showing the details of the degree of indigenisation required to be achieved under the aforesaid programme and the actual degree of indigenisation achieved in the preceding financial year and in a case where the degree of indigenisation achieved in the preceding financial year is lower than the degree as per the approved programme, the manufacturer also produces a certificate from an officer not below the rank of a Joint Secretary in the Ministry of Industry (Department of Industrial Development) certifying that the failure in achieving the required degree of indigenisation is on account of valid reasons to be recorded in writing and that such failure is marginal.

(b) in the Explanation, -

(i) in clause (iii), -

(a) after the words and brackets "Industrial Development)", the brackets and words "(certificate issued in this regard, hereinafter referred to as the fuel efficiency certificate)" shall be inserted;

(b) the words and brackets "or the Automotive Research Association of India, Pune (Maharashtra)" shall be omitted;

(ii) in clause (b), the word "and" occurring at the end shall be omitted and after clause (c), the following clause shall be inserted, namely :-

"(d) the fuel-efficiency test shall be conducted on five motor cars selected at random by the testing agency from the production plant and the lowest of the test figures shall be relevant for the purpose of issuing fuel efficient certificate.";

(c) the following paragraphs shall be inserted at the end, namely:-

"2. The fuel-efficiency certificate so issued shall be valid for a period of six months from the date of issue.

3. 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 eight weeks or such further extended period not exceeding four weeks 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."