Excise duty : chapter 8705
CA Harsharanjit Chahal
(Querist) 05 April 2014
This query is : Resolved
Sir
As per notification 6/2006, under chapter 8705, Special purpose motor vehicles are exempted from
excise duty subject to condition 12. The condition 12 states that the exemption shall be
available if If manufactured out of chassis and equipment, on which the duty of excise leviable
under the First Schedule or the additional duty leviable under section 3 of the Customs Tariff
Act, 1975 (51 of 1975), as the case may be, has already been paid.
My query is if a manufacturer purchases different parts of the machine then assembles them into a
machine which is mounted on chasis (excise paid) to make a special purpose vehicle. Please advice
whether sale of that vehicle will attract excise duty
ajay sethi
(Expert) 05 April 2014
contact excise consultant
Anirudh
(Expert) 06 April 2014
Dear Mr. Harsharanjit,
Pl. tell me whether your activity would amount to 'manufacture' or not?
If amounts to manufacture, then under what C.E.heading you will clear it?
Anirudh
(Expert) 06 April 2014
Dear Mr. Harsharanjit,
Pl. ignore my earlier post. I will come back to you on this soon.
CA Harsharanjit Chahal
(Querist) 07 April 2014
DearbAnirudh, it is manufacture and it is under Chapter 8705. Issue is whether the condition 12 is complied if the machine is manufactured from parts (excise paid) and then mounted on chasis and not the already made machine is purchased and mounted on chasis
