I am directed to refer to Notification No. 64/93-CE, dated 28.02.93, as amended, in terms of which saloon cars, used as taxis are effectively charged excise duty @ 30% ad valorem. Since it is not certain, at the time of clearance of a saloon car from the the factory of manufacture, whether it would be used as a taxi, or otherwise, a provision has been made in the notification for allowing a refund of an amount equivalent to the excise duty of ten percentage points to the manufacturer of such saloon cars. In others, the intention of the notification is that the TAXI OWNER should effectively bear a duty burden of 30%  ad valorem and not 40% ad valorem..

2.    In this context it has been represented to the Board that the taxi owners generally purchase the saloon cars from the dealers and rarely from the manufacturers, directly. Thus, to settle the refund claims, the concerned excise officers insist on proof of encashment of cheques issued by the manufacturers to persons, in whose names and saloon cars are registered as taxis. This involves cumbersome correspondence, resulting in delays in settling refund claims Accordingly, the Board is of the view that having regard to the intention behind the exemption Notification, it would suffice that conditions under Notification No. 64/93-CE are deemed to be fulfilled, if the details of registration and proof of payment of differential duty to the customer (whether directly by the manufacturer or through the dealer) are produced in support of refund claims.

3.    The pending  claims may kindly be settled in the above instructions.