Exclusive taxi use supports exemption for motor cabs under the central excise notification.

Motor vehicles described as motor cabs were treated as eligible for exemption under Notification No. 5/99-C.E. where the registration certificates, permits and transport authority documents showed approval for use solely as taxis or tourist taxis. The expression "motor cab" was read consistently with "taxi", and the Tribunal relied on the documents as a whole to confirm exclusive taxi use for the notification. On that basis, the denial of exemption was set aside in favour of the assessee.

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Issues: Whether motor vehicles described in the registration certificates as motor cabs were entitled to exemption under Notification No. 5/99-C.E. dated 28-2-99 on the basis that they were registered for use solely as taxis.

Analysis: The Tribunal examined the registration certificates, permits, and related transport authority documents for both vehicles. On those materials, it found that each vehicle had been approved for use as a taxi or tourist taxi, notwithstanding the expression used in the registration certificate as motor cab. The word "cab" was also treated as meaning a taxi, and the Tribunal held that the documents as a whole established exclusive taxi use for the purpose of the notification.

Conclusion: The vehicles were eligible for the exemption under Notification No. 5/99-C.E. dated 28-2-99, and the denial of exemption was set aside in favour of the assessee.

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