Exceptions in Excise Duty

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Central Excise Duty Notifications
Sr. No.Details of concession/exemptionReference under which such concessions/ exemptions are available
1Exemption to all goods manufactured by institutions for handicapped persons.Notification No. 63/95-C.E
2Exemption to all goods consumed within the factory of their production in the manufacture of artificial limbs and ., rehabilitation aids for the handicapped.Notification ‘No.1 0/96-C.ES.No.17
3Concessional rate of duty of 24% on cars for physically handicapped persons.Notification No. 5/99-C.E S.No.236
4Exemption from payment of duty on parts of hearing aids used within the factory of its production in the manufacture of hearing aids.Notification No. 5/99 -C.E S.No.269
5Nil duty on Braille paper falling under sub heading No.4823.1 0Tariff rate under First schedule to the Central Excise Tariff Act
6Nil duty on Artificial limbs and rehabilitation aids for handicapped, falling under sub heading NO.9021.1 0 and to Orthopaedic footwear manufactured without the aid of power, falling under sub heading NO.9021.20Tariff rate under First schedule to the Central Excise Tariff Act
7Nil duty on Braille watches falling under sub heading Nos.91 01.1 0 and 9102.1.0Tariff rate under First schedule to the Central Excise Tariff Act

Details description Notifications:

  1. Notification No 63/95-C.E (Exemption to goods manufactured by institutions for handicapped persons) In exercise of the powers conferred by Exceptions in Excise Dutysub-section (1) of section 5A of the Central Excises and Salt Act, 1944(1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts all goods manufactured by an institution which
    1. is primarily engaged in the rehabilitation of physically or mentally handicapped persons.
    2. employs primarily, physically or mentally handicapped persons for its manufacturing activity,
    3. is receiving financial assistance from the Govt. of India, Ministry of Social Welfare for such rehabilitation,

    From the whole of the duty of excise leviable thereon which is specified in the Schedule to the Central Excise Tariff Act, 1985(5 of 1986):Provided that the institution produces a certificate once in a financial year from an officer not below the rank of a Deputy Secretary to the Govt. of India, in the, Ministry of Social Welfare to the effect that it,-

    1. is primarily engaged in the rehabilitation of physically or mentally handicapped person
    2. employs primarily, physically or mentally handicapped persons for its manufacturing activity, and
    3. is receiving financial assistance during that year from the Government of India, Ministry of Social Welfare for such rehabilitation.
  2. Notification No 10196, dated 23-7-96-G.E (51. No. 17): (Exemption to goods consumed within the factory of their production in the manufacture of specified goods) -In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise and Salt Act, 1944 (1 of 1944), the Central Government being satisfied that it is necessary in the public interest so to do, hereby exempts all goods falling within the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), from the whole of the duty of excise leviable thereon which is specified in the said Schedule, subject to the condition that the said goods be consumed within the factory of their production in the manufacture of goods specified “in column (3) of the Table here to annexed and falling under Chapter, heading No. or, sub-heading No. of the said Schedule as specified in the corresponding entry in column(2) of the said Table
    Notification No 10196 Details
    Sr. no.Chapter or heading no. or sub-heading no.Description
    1790.21Artificial limbs and rehabilitation aids for the handicapped

    Notification no.5199 – G.E (SI.No 236) concessional rate of duty of 24% on cars for physically handicapped persons. Condition (No.46) – If an officer not below the rank of a 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.

  3. Notification No 5199 G.E (SI No.269): full exemption from payment of duty on parts of hearing aids used within the factory .of its production in the manufacture of hearing aids.
  4. Full exemption from payment of duty is allowed on Braille paper falling under subheading No 4823. 10
    – Nil Tariff Rate
  5. Full exemption from under payment of duty is allowed on Artificial limbs and rehabilitation aids for handicapped, falling under sub heading No 9021.. 10 and to Orthopaedic footwear manufactured without the aid of power, falling under sub heading No 9021.20.
    – Nil Tariff Rate
  6. Full exemption has been given to Braille falling under sub heading Nos.9101.10an 9102.10
    – Nil Tariff Rate

Further More Details :

Save income tax using section 80DD and 80U

Section 80DD- Medical Treatment of Handicapped Dependents

Relevant Sections of the Income Tax Act – 80G

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