MARUTI UDYOG LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners are engaged in the manufacture of various types of motor vehicles. One of the type of motor vehicles manufactured by the petitioners is saloon motors specifiable under head 87.03 of the schedule to the Central Excise Tariff Act, 1985, attracting a tariff rate of excise duty @ 40% ad valorem.

(2.) The petitioners have appointed their dealers in various cities of the country. They sell their saloon cars through these dealers to customers who may get the saloon card registered with the regional State Transport Authority as taxi for being used as taxi. Such saloon cars used as taxies and so registered are liable to concessional rate of duty of excise as per notification issued from time to time.

(3.) As it cannot be ascertained by the manufacturers as to which saloon car would be sold for taxi purpose they are required to pay duty on all the cars at full effective rates and claim refund and excise duty paid after complying with the provisions of the relevant notification. Refund cannot be claimed by or made to the individual customer who ultimately utilises the saloon car as taxi. The claim for refund can be made only by the manufacturer.