Circular No. 92/3/95-CX dated 17/1/95

Subject: Central Excise - Classification/excisability of three wheeled auto rickshaws meant for transport of goods-Applicability of Notification No. 162/86-CE (SI. No. 5)-Clarification regarding.

Representations have been received about the application of Notification No. 162/86-CE, (SI.No. 5), as amended, to three wheeled auto rickshaws meant for transport of goods. Three wheeled auto rickshaws used for transport of goods are also known as:-

(i) Delivery vans

(ii) Pick-up vans

(iii) Auto-Trailers

A view has been expressed that the phrase "three wheeled auto rickshaws", in common parlance, denotes three wheeled auto rickshaws used for carrying passengers and as such, the benefit of exemption under Notification No. 162/86-CE is inadmissible to three wheeled auto rickshaws meant for transport of goods. 2. The matter has been examined by the Board. Notification No. 162/86-CE (SI.No. 5), as amended, prescribes concessional rate of duty of 15% advi. in respect of three wheeled auto rickshaws and chassis thereof, falling under heading 87.03,87.04 or 87.06 of the Schedule to the Central Excise Tariff Act, 1985. Thus, SI. No. 5 of the said Notification, includes heading S7.04 which is for "motor vehicles for the transport of the goods". Auto rickshaws, if used for carriage of goods are liable to be classified under heading 87.04 and would be covered by SI. No. 5. If it is viewed that SI. No. 5 of the said Notification is only for vehicles for transport of persons, the reference to heading 87.04 becomes redundant. 3. So long as a motor vehicle satisfies the description that it is three-wheeled and is covered by any of the headings mentioned under Sl. No. 5, it will be entitled to the benefit of Notification No. 162/86 as amended by Notification No. 49/94 dt. 1.03.1994.

4. All pending disputes of this nature may be settled in the light of these guidelines.

Sd/-
(M. Ponnuswamy)
Deputy Secretary to the Government of India

F.No. 156/17/94-CX.4

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