Central Excise duty concession on cars for differently abled – clarification

| | posted on:Multiple Disability

1. Doubts have been raised regarding the scope of exemption Notification No. 6/2002 dated 01.03.2002 (S.No.216) and its predecessor notifications as amended (which provides confessional rate of duty to cars for physically handicapped persons) as to whether the concession could be extended to any car so long as it is capable of being user by a physically handicapped person and so certified by an officer not below the rank of Deputy Secretary in the Ministry of Industry, even if the car was not specifically designed or manufactured for a physically handicapped person. Special devices or gadgets for handicapped person may be like auto transmission, grip assembly, accelerator pedals, hand control, etc. fitted in the car depending upon whether the disability is in right/left arm or in right/left leg or in both legs in combination thereof.
2. A vehicle manufacturer have represented that they are manufacturing cars with ‘Automatic Transmission’ which are suitable for persons having left leg disability. Some customers had approached Ministry of Industry after medical examination etc. and got required certificate issued. Accordingly, they sought permission from Central Excise Department to clear these vehicles at concessional duty or in a few cases sought refund. However, local Excise department has rejected all such cases on the ground that this exemption is available only for those cars which have been manufactured for handicapped persons. As per the views of local Excise authorities, cars with automatic transmission are used by normal persons also & hence are not eligible for excise concession even though Ministry of Industry has issued prescribed certificate.
3. The matter has been examined. The description of the goods which is allowed concessional rate of duty as per Sl.No.216 of notification No.6/2002 dated 01.03.2002 (and its predecessor notifications) is ‘cars for physically handicapped persons’ subject to condition ‘54’ of the notification. The condition No. 54 attached against this entry merely required that an officer not below the rank of Deputy Secretary to the Government of India in the Ministry of Industry certifies that the said goods are capable of being used by the physically handicapped persons. This condition does not require or state that the particular car should be specially designed or manufactured for use by the physically handicapped persons. In fact, the whole emphasis appears to be more on the end-use rather than the nature of the product itself. Therefore, so long as the car has some special features and an officer, not below the rank of Deputy Secretary in the Ministry of Industry, clarifies that the particular car is capable of being used by a handicapped person, concession can not be denied. Just because normal persons can also drive these vehicles there is no ground for denying the concession. In fact, every vehicle which can be used by a handicapped person can also be used by a normal person.
4. Since auto-transmission is one of the special devices required by person, with left leg disability, the Ministry of Industry has been issuing appropriate Certificates in respect of auto-transmission motor vehicles for extending concessional rate of duty to such handicapped persons. The concession will obviously not be available to all automatic transmission vehicles, but in respect of those vehicles which are bought by physically handicapped persons and who produce necessary certificate from Ministry of Industry.
5. In view of the above, it is clarified that the concession should not be denied in respect of any motor vehicle with special features (like auto transmission) which is capable of being used by a handicapped person and for which necessary certificate from the Ministry of Industry is produced in this regard.
Under Secretary to the Government of India



2 thoughts on “Central Excise duty concession on cars for differently abled – clarification”

  1. I am physically challanged (Locomotor Disability. I am living at Coimbatore. I want to an auto transmission car hand control driving. I am searching auto transmission car at Coimbatore, but still have not get the same. I asking auto transmission car where available in Coimbatore? Please give me details for auto transmission car designer/modifier.
    Thanking You.
    Yours
    S.Ravi (Physically Challaged person – LD)

  2. I am physically handicapped with left leg affected with Polio having 40% disability. I have to buy a car and claim Central Excise duty exemption and VAT and RTO registration fees. Please guide me. Thank you very much.

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