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Circular No. 122/33/95 CX,
dated 8/5/95
F.No. 268/17/95-CX.8
 
Government of India
Ministry of Finance, Department of Revenue
Central Board of Excise & Customs, New Delhi
 
Subject:-       Notification 64/93-CE dated 28.2.93 as amended by Notification 11/94-CE dated 1st March, 1994- Regarding

        Notification 64/93 provides, inter alia, that in a case where saloon car after clearance has been registered for use solely as a Taxi, the manufacturer of the said saloon car shall be entitled to further exemption of duty of 7% subject to the conditions, namely:-

    (iii)    the manufacturer had not collected from the person in whose name such saloon car had been registered as a taxi, or in a case had collected and has refunded to such person, the amount equivalent of such further exemption of duty; and

    (iv)    the manufacturer files a claim from refund of duty in terms of section 11B of Central Excise and Salt Act, 1944 (1 of 1944).

2.    In regard to above a doubt has been expressed as to what should be taken to be the date of refund, viz:-
    i)    whether the date of preparation of the cheque by the manufacturer or
    ii)    dated of despatch by the manufacturer of the cheque to the buyer or

    iii)    date of receipt of the cheque by the buyer of the taxi or

    iv)    the date of encashment of the cheque by the buyer of the taxi.

3.    The matter has been examined by the Board. The word refund has to be construed to mean the refund to person on whose name the saloon car has been registered as a taxi, (hereinafter referred to as the 'person concerned') since mere preparation and issue of cheque may not lead to even receipt of the cheque by the person concerned. On the other hand, the encashment of the cheque could be delayed by the person concerned or on account of other circumstances. Therefore what is material and relevant is the receipt of cheque by the person concerned. However the refund application is to be made by a manufacturer within six months from the date of payment of duty on saloon cars under section 11B. If the date of receipt of the cheque is taken to be the date of refund, then the available time for refund under section 11B would be reduced by the time taken in delivery of cheque to the person concerned. Hence, a harmonious construction of the provisions would require that refund application be made within 6 months from the date of payment of duty and that the cheque is issued to the person conconcerned before the refund claim can be sanctioned by the Assistant Collector.
 
Sd/-
(Mallika Arya)
Under Secretary to the Government of India