Exemption to components of fuel efficient Light commercial Motor Vehicles - 276/88 - Customs -Tariff

Exemption to components of fuel efficient Light commercial Motor Vehicles Notification No. 276/88-Cus. Dated 30-9-1988 In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts components of fuel efficient light commercial motor vehicles employing indirect injection (IDI) engines (including components of such fuel efficient light commercial motor vehicles in semi knocked down packs and completely knocked down packs) required for the manufacture of such fuel efficient light commercial motor vehicles of pay load not exceeding 4000 kilograms, from - (A) so much of the duty of Customs which is leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as is In excess of the amount calculated at the rate of 10 per cent ad valorem ; and (B) the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act, subject to the following conditions, namely :- (i) the exemption contained in this notification shall be applicable only to those components of light commercial motor vehicles (including components of light commercial motor vehicles in semi knocked down packs and completely knocked down packs) which are covered by lists certified by an officer not below the rank of an Industrial Adviser or Additional Industrial Adviser in the Directorate General of Technical Development to be required for the manufacture of light commercial motor vehicles employing indirect injection (IDI) engines; (ii) the importer produces evidence to the Assistant Collector of Customs to the effect that the said components (including components of light commercial motor vehicles in semi knocked down packs and completely knocked down packs) have been imported by such importer under a programme duly approved by the Ministry of Industry (Department of Industrial Development) and the Industrial Adviser or the Additional Industrial Adviser of the Directorate General of Technical Development in the Ministry of Industry for the manufacture of such light commercial motor vehicles employing indirect injection (IDI) engines; and (iii) the importer shall furnish an undertaking to the effect that :- (a) the said components shall be used for the purpose specified above; (b) an account of the said components received and consumed in the place of manufacture for the aforesaid purpose shall be maintained in the manner specified by the Assistant Collector of Customs; (c) he shall produce the extract of such account duly certified by the manufacturer evidencing receipt of the said components in the premises of the place of manufacture within a period of 3 months or such extended period as the Assistant Collector of Customs may allow; and (d) he shall pay, on demand, in the event of his failure to comply with (a), (b), or (c) above, an amount equal to the difference between the duty leviable on such quantity of the said imported goods but for the exemption contained herein and that already paid at the time of importation. 2. Where an importer is entitled for exemption under this notification but is not able to produce a fuel efficiency certificate at the time of importation such importer shall undertake to the Assistant Collector of Customs that he will produce such fuel efficiency certificate within a period of 3 months or such further extended period as may be determined by the Collector of Customs 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 importation, 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 kilometres or net - tonne kilometres 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 conduced for the rated GVW or payload of the vehicle as specified in the table, regardless 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 of body or is having more than one version of standard production of body, the following allowances shall be applied :   GVW Range Allowances in body weight (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 (c) the fuel efficiency test shall be conducted using diesel having cetane level of 42; (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 degree Centigrade ambient temperature; (e) the specific fuel consumption shall be taken as the minimum value at the full load and full throttle in accordance with the testing conditions stipulated in 1S: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 then 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 86.96t 3.4 + 1.53t 86.96t 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