ENTITLEMENT AND PROCEDURE FOR PURCHASE OF

ITEMS AGAINST FIRM DEMAND (AFD) CATEGORY –I

A) FOUR WHEELERS (CARS): OFFICERS

1. Eligibility:

a) All Commissioned / Honorary Commissioned Officers (serving /

retired).

b) Widows of Service Officers.

c) Equivalent status of Civilian Officers / Officers of CSD.

However, they will have to pay sales tax / Value Added Tax as
applicable in the respective State.

d) All GREF Officers (serving / retired).

e) All SSC and EC Officers who have put in five years of reckonable
service before release.

f) One of the parents i-e. either the father or the mother of

unmarried deceased officers.

g) Either of the officers child, if both the parents have died and the
child is drawing pension from Defence Estimates.

2. Other conditions:

a) Applicant must not have purchased a four wheeler (Car) within

the last two years on the day of submission of the application.
In addition, the applicant will have to give an undertaking that
he/she will not sell the vehicle within next two years.

b) As per finance bill of 1998-99, quoting of PAN/GIR No is

mandatory at the time of purchase of Car.

c) Application form for all entitled officers is at Appendix ‘A’

B) FOUR WHEELERS (CARS): PBOR

1. Eligibility:

All Personnel Below Officer rank (serving & retired), of the

three services having minimum of 15 years colour service and
having been released honorably are entitled to purchase a four
wheeler upto 1300cc capacity.

2. Procedure and Conditions:

a) JCOs/equivalent can purchase the second car after five years of

the initial purchase and all other entitled soldiers/Sailors/Airmen after seven years.
Sale of car is not allowed before completion of two years from the date of purchase.

b) Serving and retired PBOR will apply on the prescribed forms as

enclosed at Appendices B & C respectively.
 c) The following documents shall be submitted alongwith the
application:

I) Serving PBOR:-

i) A certified copy of Driving licence issued by the civil

authorities.

ii) A certificate from PBOR countersigned by the CO/OC troops

that the individual has not purchased a car in the last five / seven years, as
applicable, and that he will not sell the car before two years and that he is liable to
pay the entire excise/sales tax concession in case of any violation.

iii) A certified copy of the pay book wherein the entry with
regard to purchase of car by the PBOR is made.

iv) Following Certificate from the Commanding Officer / OC

Troops that financial position of the applicant allows him to purchase a car:-

CERTIFICATE

Certified that No. __________________ Rank _________

Name is eligible to purchase a car and that his financial position
allows him to purchase a car.

Commanding Officer/OC Troops

II) Retired PBOR: The retired PBOR shall submit an affidavit of

Rs. 5/- on Non Judicial Stamp Paper covering the following:-

i) I have not purchased a car in the last 5/7 years as

applicable.

ii) I shall not sell the car for the next two years.

iii) I understand that any Violation of the above will make me

liable to pay back the entire excise / sales tax concessions
to the Govt.

iv) The vehicle is for my personal use.

v) The vehicle purchased from the CSD will be registered on

self name.

d) Entry with regards to purchase of car by retd PBOR will be made on the
original PPO at the depot.

e) Misuse:

In case an individual is found to have violated any of the above

conditions, that is, purchase of second car before five/seven years
(as applicable) or sale of car before two years from the date of purchase, he
will be liable to pay the full excise duty/sales tax as applicable.
 f) Action by the CSD:

At the CSD Depot level the following action will be taken on receipt of
application from the PBOR:-

a) Verify the correctness of the details furnished by the PBOR.

b) Cross check from CSD HO whether the PBOR has already purchased
a car from any other CSD depot.

c) Share the data with regard to purchase of car by PBOR with other
depots.

d) The PBOR will be allowed to purchase the car only after receipt of
confirmation from CSD HO.

g) In case of retired PBOR following additional action shall be taken:-

i) Ensure that affidavit as above has been obtained.

ii) Ensure entry of purchase of car with date is made on the
original PPO.

C) CANCELLATION OF APPLICATION

In the event of Officer / PBOR intending to withdraw his application due

to any reason, the officer shall have to forfeit the incidental charges of
Rs.500/- and balance amount will be refunded.

D) PROCEDURE FOR BOOKING OF CARS

a) For readily available vehicles

Customer selects the vehicle with dealer. He/she submits

indent form (duly completed in all respects) at the depot. He/she
also deposits full amount of cost of vehicle with CSD depot.
Depot in turn places Local Supply order on dealer and customer
gets the delivery of vehicle.

b) For vehicles with waiting period of delivery

i) Depot will inform the customer of applicable selling price &

CSD handling charges on the vehicle to be purchased by
customer.
ii) Customer will deposit only 0.5% as CSD handling charges
in the first instance.
iii) Depot will issue provisional booking order to concerned
Dealer.
iv) Booking amount (as decided by firm and applicable for civil
customers also) will be paid directly by the customer to the dealer concerned.
v) On intimation of availability of the vehicle, the customer
will deposit full amount (excluding 0.5% CSD handing charges already paid) with the
Depot and the Depot will place LS Order on the dealer concerned.
vi) The customer will take delivery and obtain refund of
booking amount and applicable interest (as conveyed by the firm) from the dealer.
E) TWO WHEELERS/COMMERCIAL VEHICLES/TRUCKS/TRACTORS:

1. Eligibility:

a) All ranks (serving / retired) qualifying under entitled categories.

b) Widows of service personnel (including remarried) qualifying under

entitled categories.

c) Eldest child of the deceased service personnel, if he is not survived

by his wife, provided the under mentioned conditions are fulfilled:

i) If a son, he should be between 18 to 25 years of age and

should not be in service or commercially employed.
ii) If a daughter, she should be unmarried.

2. Other Condition:

Entitled category of personnel should not have drawn/brought any

of above items from the CSD within the last two years. Entitled purchaser
shall have to give an undertaking that he / she shall not sell the vehicles
for two years from the date of purchase.

F) REFRIGERATORS/COLOUR TVs/AIR CONDITIONERS/WASHING

MACHINES/AND OTHER AFD CAT-I ITEMS:

1. Eligibility:

All Ranks (Serving / retired) of Armed Forces.

2. Other Condition:

Entitled category of personnel should not have drawn/brought any

make of same AFD (CAT-I) items from the CSD within the last two years.
Entitled purchaser shall have to give an undertaking that he / she shall
not sell the item for two years from the date of purchase.

G) PROCEDURE FOR ALL CATEGORIES OF AFD-I ITEMS:

a) Entitled customers will fill the application form and submit the same to
the CSD Area Depot of their choice alongwith a Bank Draft for the value of
the item. Form for purchasing AFD-I items (except cars) is at Appendix
‘D’ for serving personnel and at Appendix ‘E’ for retired personnel.

b) Customers are required to deposit Demand Draft / Bankers Cheque drawn

on Nationalized Bank / Scheduled bank or UTI, HDFC, ICICI, IDBI banks
only. For all other State & Central Co-operative and other Private Banks,
the release order will be given only after the draft / bankers cheque
amount is actually credited in CSD Public Fund Account (Main). The
Demand Draft / bankers cheque should be drawn in favour of “CANTEEN
STORES DEPARTMENT PUBLIC FUND ACCOUNT (MAIN)” payable at the
location of Area Depot. Cheques will not be accepted.

c) The application form must be countersigned by the Commanding Officer

of the unit/Formation. In case of retired officers, the application must
have the countersignature of Stn HQs/DDZSB. They should also produce
original PPO for verification.
d) Customer should select four wheeler/car/two wheeler available with
authorized dealer and obtain Engine No./ Chasis No. & other details and
submit the same alongwith application form. For other AFD-I items,
customers should preferably confirm availability of item with the dealer.

e) Purchase of AFD-I items is subject to compliance of procedural

requirements laid down by Central / State Govts. and payment of taxes
(as applicable).

H) COLLECTION OF AFD-I ITEMS THROUGH AUTHORISED

REPRESENTATIVES:

Where the bonafide customer is unable to collect in person due to valid

reasons proper authority letter with the signature of the nominee duly attested
by the bonafide customer and countersigned by the Unit Commander in case of
Serving personnel and Station HQ/Secretary, Zila Sainik Board/Deputy Director,
Zila Sainik Board in case of retired Service personnel can be accepted for
effecting delivery at the discretion of the Depot. All the necessary documents in
respect of the bonafide customer required to be perused at the Depot will be
brought by the authorised representative to book the AFD item. The delivery of
an item will be given to the same person only, who signs at the Depot and in
whose favour the authority for collection has been given by the Depot.
No authorization in favour of any dealer or his employee will be accepted by the
depots.

I) PROCUREMENT OF AFD-I ITEMS FROM ANY OF THE DEPOT

AFD-I items including cars can be purchased from any CSD Depot of
choice of CSD customer subject to following preconditions:-

a) These items will be allowed to be purchased on smart cards since AFD

limit (excluding car) is catered for in the smart card.

b) The purchase will be through valid forms processed through the CSD.

c) The form duly countersigned by the CO/OC of the unit will be verified by
the CSD Manager concerned with an undertaking (on the form itself)
that the individual is making a valid purchase as per authorization.

d) For all other entitled category of pers, the form will be verified by the CSD
Manager/station HQ or local authority involved with canteen
management.

J) PAYMENT OF INTEREST ON DELAYED DELIVERY

No interest will be paid by the Department for late delivery of AFD-I items
including vehicles. Customers are requested to ascertain the delivery position
from the concerned dealer(s) and the concerned Depot(s) before booking of
AFD-I items. Prices prevailing on date of delivery will be applicable.

K) APPLICATION FORMS

Application Forms are enclosed as under:

1 Application Form for Cars (for Officers) : Appendix ‘A’

2 Application Form for Cars by PBOR (Serving) : Appendix ‘B’

3 Application Form for Cars by PBOR (Retired) : Appendix ‘C’

4 Application Form for AFD-I items (except Cars) by

Serving Personnel : Appendix ‘D’

5 Application Form for AFD-I items (except Cars)

by Retired Personnel : Appendix ‘E’