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non-alloy steel Cars above 1,500 cc engine capacity but below 2,000 cc capacitywill attract specific duty of Rs 15,000 per car and cars above2,000 cc engine capacity will attract specific duty of Rs 20,000per car. The excise duty on small cars i.e. cars below 1,500 ccengine capacity remains unchanged. The hike in excise duty comes weeks after some car manufacturershad hiked the prices of cars due to increase in the prices of inputs especially steel. Maruti Suzuki increased prices of itsmodels from Rs 1,000 to Rs 18,000 on May 20. Two days later,Hyundai announced a price rise of 0.75 per cent to 2 per cent. Hyundai vehicles became costlier by Rs 2,000 to Rs 20,000 from June1. Tata Motors followed suit last week by announcing a 1 to 2 percent hike in prices. Its multi utility vehicles became costlier by2 to 3 per cent. Lower demand, especially in the monsoon months,may, however, force manufacturers to come out with promotionalmeasures and attractive discounts. The steel sector also got special attention last week. Export dutywas fully exempted on flat rolled products of iron or non-alloysteel, hot rolled, not clad, plated or coated, flat rolled productsof iron or non-alloy steel, cold rolled (cold-reduced), not clad,plated or coated, flat rolled products of iron or non-alloy steel,plated or coated with zinc and tubes and pipes, of iron or steel.The rate of export duty on long products such as bars and rods;angles, shapes and sections and wire was hiked from 10 per cent to15 per cent. The Government rescinded the notification regarding export duty oniron ore fines and imposed uniform export duty of 15 per cent oniron ore irrespective of iron content and also on all sorts of ironore and concentrates. The iron ore exporters from Goa will now haveto make suitable representations to the finance ministry to enablethem keep their export commitments. The duty revisions might have everything to do with curbing pricerise of steel items and suitable relaxation that lower demandduring the monsoon months warrant but the overall impression isthat the steps are taken keeping in view the need for party fundsin the run up to the impending elections  expected this year end,rather than mid-2009. The Government needs to explain its movesmore cogently to dispel such impressions. Area based excise duty exemption notifications have been amended toallow refund of 75 per cent of the duty payable for iron &steel, cement, starch and coco-butter, when these are manufacturedstarting from specified inputs in the same factory. The time limitfor filing application for revision of value addition rates havebeen revised and special provisions have been made for new units.