Reduced compensation cess on leased motor vehicles applies where vehicles were acquired and leased before the statutory cutoff, subject to conditions. Notification fixes a reduced compensation cess on specified motor vehicles purchased and supplied on lease before 1 July 2017, by applying sixty five percent of the cess otherwise applicable, subject to annexed conditions including that vehicles were acquired before the cutoff date and, where applicable, suppliers are registered and have not availed input tax credit on taxes paid on such vehicles.