"Now coming to the cost, which I would like to specially describe as I availed certain concessions, which are available to physically challenged and this may help others also. Some of these benefits (only for physically challenged peoples) are given below:
The AT cars are provided at 4% excise duty which is a clear benefit of around 19% considering the rate of 23% on cars above 1200 cc. The benefit would obviously be less for smaller cars as the rate of duty is less.
The process:
- There is a format provided by Department of Heavy Industry as per which a govt. panel of doctor has to certify that one can’t drive manual car and is fit to drive an AT car.
- The copy of this cert is given to car manufacturer, who then certify that the said car, chosen by the customer suits him as per his requirement (as certified by govt. panel)
- The car manufacturer’s certificate, doctor’s certificate alongwith an affidavit that the excise duty concession has not been availed in last 5 yrs and the car will not be sold for next 5 yrs is submitted to D/o Heavy industry.
- D/o Heavy Industry than issues an order for providing excise concession to manufacturer, based on which it gives the reduced price.
In my case the invoice of 8,38,671 for City VAT was given as compare to original invoice of around 9.78 lakh.
The insurance company also gives a 50% concession on basic price.
Finally even to my surprise the roadtax is completely exempted on such cars(atleast in Delhi this is the rule, it depends on state but I think most of the states follow it)"
Raj Sir,
Congrats for ANHC,
I am physically challenged too, right now i am using Honda Activa (Purchased - June'11) with 2 extra wheels. I was very happy to know that you have used concessions given by Indian Govt. But my experience was not very good with this. As you have rightly mentioned...every state gives exemption in Raod Tax for vehicles used by physically challenged persons.
When i went to register my vehicle with local RTO, to my shock i was said that there is one person in Pune who is approved by Maha Govt to carry out modification for Honda Activa. If and ONLY IF the my vehicle is modified by him I can avail ROAD TAX exemption..otherwise i cannot. Is it by any chance logical to get any vehicle to Pune frm Mumbai and other parts of Maha for modification. The expenses to get vehicle to Pune would easily be same as ROAD TAX exemption. Then why should we get our vehicles to Pune...??????
At last I registered my vehicle normally and sent it for modification. Left with NO OPTION other than that. Could not save a penny though Govt has widely provided for it ???
I would like to knw from you whether your Registration papers (RC book) reflects something to suggest that ROAD TAX exemption is exercised ....do let me knw. I am going to provide actual Govt notification (seprate post) for excise DUTY exemption.
GENERAL CIRCULAR NO : 25/2002 Dated : 16.07.2002
Sub: Central Excise duty concession on cars for physically handicapped persons – clarification – regarding.
Copy of Board's Circular No. 640/31/2002 - CX dated 24.06.2002 (issued from file F.No.156/11/2001 - CX 4) on the above subject is communicated herewith for information and necessary action.
(Issued from file C.No.IV/16/02/2002 CX . POL)
Sd/-
(T.K.VIJAYAVELAN)
SUPERINTENDENT (TECH)
Circular No. 640/31/2002-CX
F.No.156/11/2001-CX.4
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
New Delhi, the 24th June,2002
To
All Chief Commissioners of Central Excise & Customs
All Director Generals
All Commissioners of Central Excise
All Commissioners of Central Excise (Appeals)
All Commissioners of Central Excise (Judicial)
Subject: Central Excise duty concession on cars for physically handicapped persons – clarification – regarding.
Sir,
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 concessional 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.
6. The field formations may be suitably informed.
7. Receipt of this Circular may please be acknowledged.
8. Hindi version will follow.
Yours faithfully,
Sd/-
(Suraksha Katiyar)
Under Secretary to the Government of India
Tel No. 3016829
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