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Circular No. 972/06/2013.CX
F. No. 354/04/2013 - TRU
Government of India
Ministry of Finance
Department of Revenue
Tax Research Unit
****
New Delhi, Dated 24
th
July, 2013.
To
All Chief Commissioners of Central Excise,
All Chief Commissioners of Customs & Central Excise.
Subject: Applicable excise duty on Sedan cars like Maruti SX4, Honda Civic, Toyota Corolla Altis under notification
No. 12/2013-CE dated 1
st
March, 2013 - regarding
Sir/Madam,
I am directed to invite your attention to the above mentioned subject and to say that references have been received from motor
vehicle manufacturers, seeking clarification as to whether the excise duty of 30% is applicable on sedan cars like Maruti SX4,
Honda Civic and Toyota Corolla Altis. It has been stated that these motor vehicles satisfy all the three conditions mentioned at
Sl. No. 284A of the Table in notification No. 12/2013-CE, dated the 1
st
March, 2013, viz. (i) the engine capacity exceeds 1500
cc; (ii) the length exceeds 4000 mm and (iii) ground clearance is 170 mm and above. However, these vehicles are not
popularly known as Sports Utility Vehicles and that these are in the nature of sedans.
2. The matter has been examined. In the Budget 2013-14, excise duty was increased from 27% to 30% on motor vehicles of
engine capacity exceeding 1500 cc, popularly known as Sports Utility Vehicles (SUVs) including utility vehicles. In the
Explanation appended at Sl. No. 284A of the aforecited notification, it has been mentioned that for the purposes of this entry,
SUV includes a motor vehicle of length exceeding 4000 mm and having ground clearance of 170 mm and above. From this, it
may be seen that the higher excise duty of 30% is applicable on motor vehicles which are popularly known as SUVs and which
satisfy all the three conditions, viz. (i) the engine capacity exceeds 1500 cc, (ii) the length exceeds 4000 mm; and (iii) the
ground clearance is 170 mm and above. Maruti SX4, Honda Civic and Toyota Corolla Altis are stated to satisfy all the three
conditions but, they are not popularly known as SUVs and neither are they known so in trade parlance. They are reportedly
known as sedans in trade and common parlance.
3. In view of the above, it is clarified that the aforecited motor vehicles, which are known as sedans, will attract the excise duty
of 27% as applicable to large segment cars.[Sl.No. 284 (ii) of the Table in notification ibid ]
4. Difficulties, if any, faced in the implementation of above instructions may be brought to the notice of the Board.
(Amitabh Kumar)
Director (TRU)
circulars no 972 06 2013 | iKargos