Automobiles - concessional duty to end on 31.12.2014?

Something is terrible wrong in respect of concessional duty of levying 8% and 6% on Automobiles ,because CENVAT credit of Inputs and Input services available on any type of of Motor Vehicle is more or less 10 to 11% ( excluding credit on capital goods) of Assessable Value of Final Products . Is it not irrational ? This way it is negative tax i.e. on every clearance of such Motor Vehicle Manufacturer is getting 2-5 % CENVAT Credit accumulation ,which he is using for payment of duty on clearance of high end Vehicles which are leviable to 20 % or 24 % duty or saving for use after this concession is lifted.It will be better if duty of 2 % without Cenvat facility is levied, or even better if Chapter 87 is denied CENVAT facility and a 10% concession on Tariff Rate is given to all types of Vehicles, that way even accumulated credit will not be available for utilisation since it was unintended benefit ,because No Tax is Levied to give Money instead of collecting money.

Bhojraj Gagnani 26/12/2014