Automobile cesses are a type of excise duty for which also rebate available under Rule 18

Brief of the case:

The Hon’ble Karnataka High Court in the case of M/s TVS Motors Co. Ltd. held that the automobile cess leviable under the automobile cesses rules are governed by the provisions of central excise act and rules made under the act and are in the nature of excise duty and thus, allowable as rebate under Rule 18 of Central Excise Rules,2002.

Facts of the case:

• The petitioner (TVS Motors) is engaged in the manufacture of motor cycles/two wheelers of different types falling under Chapter – 87 of the First Schedule to the Central Excise Tariff Act, 1985.The petitioners cleared the two wheelers for export to various countries and claim rebate of central excise duty paid by petitioners under Rule 18 of Central Excise Rules, 2002.

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