The Central Excise Act,1944

pd4ml evaluation copy. visit http://pd4ml.com

The Central Excise Act,1944

The Central Excise Act,1944

1. Preamble

§1.PreamblePREAMBLE

An Act to consolidate and amend the law relating to Central Duties of Excise.

WHEREAS it is expedient to consolidate and amend the law relating to centralduties ofexcise on goods manufactured or produced in certain parts of India.

It is hereby enacted as follows :-

2. Short title, extent and commencement.

§2.Short title, extent and commencement.1.SHORT TITLE, EXTENT AND COMMENCEMENT.

(1) This Act may be called the Central Excise Act, 1944.

(2) It extends 6 to the whole of India.

(3) It shall come into force on such date 8 as the Central Government may, bynotification in the Official Gazette, appoint in this behalf.

3. Definitions.

§3.Definitions.2.DEFINITIONS.

In this Act, unless there is anything repugnant in the subject or context, -

(a) "Adjudicating authority" means any authority competent to pass any orderordecision under this Act, but does not include the Central Board of Excise andCustomsconstituted under the Central Boards of Revenue Act, 1963 (54 of 1963),Commissionerof Central Excise (Appeals) or Appellate Tribunal;


(aa) "Appellate Tribunal" means the Customs, Excise and Gold (Control)AppellateTribunal constituted under section 129 of the Customs Act, 1962 (52of 1962);

(aaa) "broker" or "commission agent" means a person who in theordinary courseof business makes contracts for the sale or purchase of excisable goodsforothers;

(b) "Central Excise Officer" means the Chief Commissioner of CentralExcise,Commissioner of Central Excise, Commissioner of Central Excise(Appeals),Additional Commissioner of Central Excise, Deputy Commissioner ofCentral Excise,Assistant Commissioner of Central Excise or any other officerof the Central ExciseDepartment, or any person (including an officer of theState Government) invested by theCentral Board of Excise and Customsconstituted under the Central Boards of Revenue Act,1963 (54 of 1963) with anyof the powers of a Central Excise Officer under this Act.

(c) "Curing" includes wilting, drying, fermenting and any process forrenderingan unmanufactured product fit for marketing or manufacture;

(d) "Excisable goods" means goods specified in the First Scheduleand SecondSchedule to the Central Excise Tariff Act, 1985 (5 of 1986) as beingsubject toa duty of excise and includes salt;

(e) "Factory" means any premises, including the precincts thereof, wherein orinany part of which excisable goods other than salt are manufactured, orwherein or in anypart of which any manufacturing process connected with theproduction of these goods isbeing carried on or is ordinarily carried on;

(ee) "Fund" means the Consumer Welfare Fund established under section 12C;

(f) Manufacture "includes any process, -

(i) Incidental or ancillary to the completion of a manufactured product; and

(ii) which is specified in relation to any goods in the Section or Chapternotes of theSchedule to the Central Excise Tariff Act, 1985 (5 of 1986) asamounting tomanufacture, and the word "manufacturer" shall be construedaccordinglyand shall include not only a person who employs hired labour in theproduction ormanufacture of excisable goods, but also any person who engagesin their production ormanufacture on his own account;

(g) "Prescribed" means prescribed by rules made under this Act;

(h) "Sale" and "purchase", with their grammatical variations andcognate


expressions, mean any transfer of the possession of goods by one person toanotherin the ordinary course of trade or business for cash or deferredpayment or other valuableconsideration;

(i) * * * *

(j) * * * *

(jj) * * * * * *

(k) "wholesale dealer" means a person who buys or sells excisablegoodswholesale for the purpose of trade or manufacture, and includes a brokeror commissionagent who, in addition to making contracts for the sale orpurchase of excisable goods forothers, stocks such goods belonging to othersas an agent for the purpose of sale.

4. Duties specified in the [The first schedule andthe second schedule].

§4.Duties specified in the [The first schedule and the second schedule].3.DUTIES SPECIFIED IN THE FIRST SCHEDULE AND THE SECOND SCHEDULE TO THECENTRALEXCISE TARIFF ACT,1985 TO BE LEVIED 17 .

(1) There shall be levied and collected in such manner as may be prescribed

(a) A duty of excise on all excisable goods which are produced ormanufacturedin India as, and at the rates, set forth in the Schedule to theCentral ExciseTariff Act, 1985 (5 of 1986) :

(b) A special duty of excise, in addition to the duty of excise specified inclause (a)above, on excisable goods specified in the Second Schedule to theCentral ExciseTariff Act, 1985 (5 of 1986) which are produced or manufacturein India, as, and at therates set forth in the said Second Schedule.

Provided that the duties of excise which shall be levied and collected onanyexcisable goods which are produced or manufactured, -

(i) In a free trade zone and brought to any other place in India; or

(ii) By a hundred per cent export-oriented undertaking and allowed to be soldin India,

Shall be an amount equal to the aggregate of the duties of customs which wouldbeleviable under section 12 of the Customs Act, 1962 (52 of 1962), on likegoods produced ormanufactured outside India if imported into India, and where


the said duties of customsare chargeable by reference to their value; thevalue of such excisable goods shall,notwithstanding anything contained in anyother provision of this Act, be determined inaccordance with the provisions ofthe Customs Act, 1962 (52 of 1962) and the CustomsTariff Act, 1975 (51 of1975).

Explanation 1 : Where in respect of any such like goods, any duty of customsleviableunder the said section 12 is leviable at different rates, then, suchduty shall, for thepurposes of this proviso, be deemed to be leviable underthe said section 12 at thehighest of those rates.

Explanation 2 : In this proviso, -

(i) "Free trade zone" means the Kandla Free Trade Zone and the SantaCruzElectronics Export Processing Zone and includes any other free trade zonewhich theCentral Government may, by notification in the Official Gazette, 21specify in thisbehalf;

(ii) "Hundred per cent export-oriented undertaking" means an undertakingwhichhas been approved as a hundred per cent export-oriented undertaking bythe Board appointedin this behalf by the Central Government in exercise of thepowers conferred by section 14of the Industries (Development and Regulation)Act, 1951 (65 of 1951), and the rules madeunder that Act.

(1A) The provisions of sub-section (1) shall apply in respect of all excisablegoodsother than salt which are produced or manufactured in India by, or onbehalf of,Government, as they apply in respect of goods which are not producedor manufactured byGovernment.

(2) The Central Government may, by notification in the Official Gazette, fix,for thepurpose of levying the said duties, tariff values of any articlesenumerated, eitherspecifically or under general headings, in the FirstSchedule and theSecond Schedule to the Central Excise Tariff Act, 1985 (5 of1986) aschargeable with duty ad valorem and may alter any tariff values forthe time being inforce.

(3) Different tariff values may be fixed -

(a) For different classes or descriptions of the same excisable goods; or

(b) For excisable goods of the same class or description -

(i) Produced or manufactured by different classes of producers ormanufacturers; or

(ii) Sold to different classes of buyers :


Provided that in fixing different tariff values in respect of excisable goodsfallingunder sub-clause (i) or sub-clause (ii), regard shall be had to thesale pricescharged by the different classes of producers or manufacturers or,as the case may be, thenormal practice of the wholesale trade in such goods.

5. Valuation of excisable goods for purposes ofcharging of duty.

§5.Valuation of excisable goods for purposes of charging of duty.4.VALUATION OF EXCISABLE GOODS FOR PURPOSES OF CHARGING OF DUTY OF EXCISE.

(1) Where under this Act, the duty of excise is chargeable on any excisablegoods withreference to value, such value, shall, subject to the otherprovisions of this section, bedeemed to be -

(a) The normal price thereof, that is to say, the price at which such goodsare ordinarilysold by the assessee to a buyer in the course of wholesale tradefor delivery at the timeand place of removal, where the buyer is not a relatedperson and the price is the soleconsideration for the sale:

Provided that -

(i) Where, in accordance with the normal practice of the wholesale trade insuch goods,such goods are sold by the assessee at different prices todifferent classes of buyers(not being related persons) each such price shall,subject to the existence of the othercircumstances specified in clause (a), bedeemed to be the normal price of such goods inrelation to each such class ofbuyers;

(ia) where the price at which such goods are ordinarily sold by the assesseeisdifferent for different places of removal, each such price shall, subject tothe existenceof other circumstances specified in clause (a), be deemed to bethe normal price of suchgoods in relation to each such place of removal;

(ii) Where such goods are sold by the assessee in the course of wholesaletrade fordelivery at the time and place of removal at a price fixed under anylaw for the timebeing in force or at a price, being the maximum, fixed underany such law, then,notwithstanding anything contained in clause (iii) of thisproviso, the price or themaximum price, as the case may be, so fixed, shall,in relation to the goods so sold, bedeemed to be the normal price thereof;

(iii) Where the assessee so arranges that the goods are generally not sold byhim in thecourse of wholesale trade except to or through a related person, thenormal price of thegoods sold by the assessee to or through such related


person shall be deemed to be theprice at which they are ordinarily sold by therelated person in the course of wholesale trade at the time of removal, todealers (not being related persons) orwhere such goods are not sold to suchdealers, to dealers (being related persons), whosell such goods in retail;

(b) Where the normal price of such goods is not ascertainable for the reason,that suchgoods are not sold or for any other reason, the nearest ascertainableequivalent thereofdetermined in such manner as may be prescribed.

(2) Where, in relation to any excisable goods the price thereof for deliveryat the placeof removal is not known and the value thereof is determined withreference to the pricefor delivery at a place other than the place of removal,the cost of transportation fromthe place of removal to the place of deliveryshall be excluded from such price.

(3) The provisions of this section shall not apply in respect of any excisablegoods forwhich a tariff value has been fixed under sub-section (2) of section3.

(4) For the purposes of this section, -

(a) "Assessee" means the person who is liable to pay the duty of exciseunderthis Act and includes his agent;

(b) "Place of removal" means -

(i) A factory or any other place or premises of production or manufacture ofthe excisablegoods;

(ii) A warehouse or any other place or premises wherein the excisable goodshave beenpermitted to be deposited without payment of duty;

(iii) A depot, premises of a consignment agent or any other place or premisesfromwhere the excisable goods are to be sold after their clearance from thefactory and,from where such goods are removed;

(ba) "Time of removal", in respect of goods removed from the place ofremovalreferred to in sub-clause (iii) of clause (b), shall be deemed to be the timeatwhich such goods are cleared from the factory;

(c) "Related person" means a person who is so associated with the assesseethatthey have interest, directly or indirectly, in the business of each otherand includes aholding company, a subsidiary company, a relative and adistributor of the assessee, andany sub-distributor of such distributor.

Explanation : In this clause "holding company", "subsidiary company"and


"relative" have the same meanings as in the Companies Act, 1956 (1 of 1956);

(d) "Value", in relation to any excisable goods, -

(i) Where the goods are delivered at the time of removal in a packedcondition, includesthe cost of such packing except the cost of the packingwhich is of a durable nature andis returnable by the buyer to the assessee.

Explanation : In this sub-clause, "packing" means the wrapper,container,bobbin, pirn, spool, reel or warp beam or any other thing in whichor on which theexcisable goods are wrapped, contained or wound;

(ii) Does not include the amount of the duty of excise, sales tax and othertaxes, if any,payable on such goods and, subject to such rules as may be made,the tradediscount (such discount not being refundable on any accountwhatsoever) allowed inaccordance with the normal practice of the wholesaletrade at the time of removal inrespect of such goods sold or contracted forsale.

Explanation : For the purposes of this sub-clause, the amount of the dutyofexcise payable on any excisable goods shall be the sum total of -

(a) The effective duty of excise payable on such goods under this Act; and

(b) The aggregate of the effective duties of excise payable under otherCentral Acts, ifany, providing for the levy of duties of excise on such goods,and the effective duty ofexcise on such goods under each Act referred to inclause (a) or clause (b) shall be, -

(i) In a case where a notification or order providing for any exemption (notbeing anexemption for giving credit with respect to, or reduction of duty ofexcise undersuch Act on such goods equal to, any duty of excise under suchAct, or the additional dutyunder section 3 of the Customs Tariff Act, 1975 (51of 1975), already paid on the rawmaterial or component parts used in theproduction or manufacture of such goods) from theduty of excise under such Actis for the time being in force, the duty of excise computedwith reference tothe rate specified in such Act, in respect of such goods as reduced soas togive full and complete effect to such exemption; and

(ii) In any other case, the duty of excise computed with reference to the ratespecifiedin such Act in respect of such goods.

(e) "Wholesale trade" means sales to dealers, industrial consumers,Government,local authorities and other buyers, who or which purchase theirrequirements otherwisethan in retail.


6. Valuation of excisable goods with reference toretail sale price.

§6.Valuation of excisable goods with reference to retail sale price.4A.VALUATION OF EXCISABLE GOODS WITH REFERENCE TO RETAIL SALE PRICE.

(1) The Central Government may, by notification in the Official Gazette,specify anygoods, in relation to which it is required, under the provisions ofthe Standards ofWeights and Measures Act, 1976 (60 of 1976) or the rules madethere under or under anyother law for the time being in force, to declare onthe package thereof the retail saleprice of such goods, to which theprovisions of sub-section (2) shall apply.

(2) Where the goods specified under sub-section (1) are excisable goods andare chargeableto duty of excise with reference to value, then, notwithstandinganything contained insection 4, such value shall be deemed to be the retailsale price declared on such goodsless such amount of abatement, if any, fromsuch retail sale price as the CentralGovernment may allow by notification inthe Official Gazette.

(3) The Central Government may, for the purpose of allowing any abatementundersub-section (2), take into account the amount of duty of excise, salestax and othertaxes, if any, payable on such goods.

Explanation 1 : For the purpose of this section, "retail sale price"means themaximum price at which the excisable goods in packaged form may be sold totheultimate consumer and includes all taxes local or otherwise, freight,transport charges,commission payable to dealers, and all charges towardsadvertisement, delivery, packing,forwarding and the like, as the case may be,and the price is the sole consideration forsuch sale.

Explanation 2 : Where on any excisable goods more than one retail sale priceis declared,the maximum of such retail sale price shall be deemed to be theretail sale price for thepurposes of this section.

7. Remission of duty on goods found deficient inquantity.

§7.Remission of duty on goods found deficient in quantity.5.REMISSION OF DUTY ON GOODS FOUND DEFICIENT IN QUANTITY.

(1) The Central Government may, by rules made under this section, provide forremission ofduty of excise leviable on any excisable goods which due to any


natural cause are found tobe deficient in quantity.

(2) Any rules made under sub-section (1) may, having regard to the nature ofthe excisablegoods or of processing or of curing thereof, the period of theirstorage or transit andother relevant considerations, fix the limit or limitsof percentage beyond which no suchremission shall be allowed :

Provided that different limit or limits of percentage may be fixed fordifferent varietiesof the same excisable goods or for different areas or fordifferent seasons.

8. Power to grant exemption from duty of excise.

§8.Power to grant exemption from duty of excise.5A.POWER TO GRANT EXEMPTION FROM DUTY OF EXCISE.

(1) If the Central Government is satisfied that it is necessary in the publicinterest soto do, it may, by notification in the Official Gazette 35 exemptgenerally eitherabsolutely or subject to such conditions (to be fulfilledbefore or after removal) as maybe specified in the notification, excisablegoods of any specified description from thewhole or any part of the duty ofexcise leviable thereon :

Provided that, unless specifically provided in such notification, no exemptionthereinshall apply to excisable goods which are produced or manufactured -

(i) In a free trade zone and brought to any other place in India; or

(ii) By a hundred per cent export-oriented undertaking and allowed to be soldin India.

Explanation : In this proviso, "free trade zone" and "hundred per centexport-oriented undertaking" shall have the same meanings as in Explanation 2 tosub-section (1) of section 3.

(2) If the Central Government is satisfied that it is necessary in the publicinterest soto do, it may, by special order in each case, exempt from thepayment of dutyof excise, under circumstances of an exceptional nature to bestated in such order, anyexcisable goods on which duty of excise is leviable.

(3) An exemption under sub-section (1) or sub-section (2) in respect of anyexcisablegoods from any part of the duty of excise leviable thereon (the dutyof excise leviablethereon being hereinafter referred to as the statutory duty)may be granted by providingfor the levy of a duty on such goods at a rateexpressed in a form or method differentfrom the form or method in which the


statutory duty is leviable and any exemption grantedin relation to anyexcisable goods in the manner provided in this sub-section shall haveeffectsubject to the condition that the duty of excise chargeable on such goodsshall inno case exceed the statutory duty.

Explanation : "Form or method", in relation to a rate of duty of excisemeansthe basis, namely, valuation, weight, number, length, area, volume orother measure withreference to which the duty is leviable :

(4) Every notification issued under sub-rule (1), and every order made undersub-rule (2),of rule 8 of the Central Excise Rules, 1944, and in forceimmediately before thecommencement of the Customs and Central Excises Laws(Amendment) Act, 1988 (29 of 1988)shall be deemed to have been issued or madeunder the provisions of this section and shallcontinue to have the same forceand effect after such commencement until it is amended,varied, rescinded orsuperseded under the provisions of this section.

(5) Every notification issued under sub-section (1) shall, -

(a) unless otherwise provided, come into force on the date of its issue by theCentralGovernment for publication in the Official Gazette;

(b) also be published and offered for sale on the date of its issue by thedirectorate ofPublicity and Public Relation, Customs and Central Excise, NewDelhi, under the CentralBoard of Excise and Customs Constituted under theCentral Boards of Revenue Act, 1963 (54of 1963).

(6) Notwithstanding anything contained in sub-section (5), where anotification comes intoforce on a date later than the date of its issue, thesame shall be published and offeredfor sale by the said Directorate ofPublicity and Public Relation on a date on or beforethe date on which the saidnotification comes into force.

9. Registration of certain persons.

§9.Registration of certain persons.6.REGISTRATION OF CERTAIN PERSONS.

Any prescribed person who is engaged in -

(a) The production or manufacture or any process of production or manufactureof anyspecified goods included in the First Schedule and the Second Scheduletothe Central Excise Tariff Act, 1985 (5 of 1986), or

(b) The wholesale purchase or sale (whether on his own account or as a broker


orcommission agent) or the storage of any specified goods included in the theFirstSchedule and the Second Schedule to the Central Excise Tariff Act, 1985(5 of 1986).

Shall get himself registered with the proper officer in such manner as may beprescribed.

10. Restriction on possession of excisable goods.

§10.Restriction on possession of excisable goods.8.RESTRICTION ON POSSESSION OF EXCISABLE GOODS.

From such date as may be specified in this behalf by the Central Governmentbynotification in the Official Gazette, no person shall, except as provided byrules madeunder this Act, have in his possession any goods specified in theSecond Schedule in excess of such quantity as may be prescribed for thepurposes of this section as themaximum amount of such goods or of any varietyof such goods which may be possessed at anyone time by such a person.

11. Offences and penalties

§11.Offences and penalties9.OFFENCES AND PENALTIES

(1) Whoever commits any of the following offences, namely : -

(a) Contravenes any of the provisions of section 8 or of a rule made underclause(iii) or clause (xxvii) of sub-section (2) of section 37;

(b) Evades the payment of any duty payable under this Act;

(bb) Removes any excisable goods in contravention of any of the provisions ofthisAct or any rules made there under or in any way concerns himself with suchremoval;

(bbb) Acquires possession of, or in any way concerns himself in transporting,depositing,keeping, concealing, selling or purchasing, or in any other mannerdeals with anyexcisable goods which he knows or has reason to believe areliable to confiscation underthis Act or any rule made thereunder;

(bbbb) Contravenes any of the provisions of this Act or the rules made thereunder inrelation to credit of any duty allowed to be utilised towards paymentof excise duty onfinal products;


(c) Fails to supply any information which he is required by rules made underthis Act tosupply, or (unless with a reasonable belief, the burden of provingwhich shall be uponhim, that the information supplied by him is true) suppliesfalse information;

(d) Attempts to commit, or abets the commission of, any of the offencesmentioned inclauses (a) and (b) of this section;

Shall be punishable, -

(i) In the case of an offence relating to any excisable goods, the dutyleviable thereonunder this Act exceeds one lakh of rupees, with imprisonmentfor a term which may extendto seven years and with fine :

Provided that in the absence of special and adequate reasons to the contraryto berecorded in the judgment of the Court such imprisonment shall not be fora term of lessthan six months;

(ii) In any other case, with imprisonment for a term which may extend to threeyears orwith fine or with both.

(2) If any person convicted of an offence under this section is againconvicted of anoffence under this section, then, he shall be punishable "forthe second and for everysubsequent offence with imprisonment for a term whichmay extend to seven years and withfine :

Provided that in the absence of special and adequate reasons to the contraryto berecorded in the judgment of the Court such imprisonment shall not be fora term of lessthan six months.

(3) For the purposes of sub-sections (1) and (2), the following shall not beconsidered asspecial and adequate reasons for awarding a sentence ofimprisonment for a term of lessthan six months, namely :-

(i) The fact that the accused has been convicted for the first time for anoffence underthis Act;

(ii) The fact that in any proceeding under this Act, other than a prosecution,the accusedhas been ordered to pay a penalty or the goods in relation to suchproceedings have beenordered to be confiscated or any other action has beentaken against him for the same actwhich constitutes the offence;

(iii) The fact that the accused was not the principal offender and was actingmerely as acarrier of goods or otherwise was a secondary party in thecommission of theoffence;


(iv) The age of the accused.

12. Certain offences to be non-cognizable.

§12.Certain offences to be non-cognizable.9A.CERTAIN OFFENCES TO BE NON-COGNIZABLE.

Notwithstanding anything contained in the Code of Criminal Procedure, 1898 (5of 1898) 45, offences under section 9 shall be deemed to be non-cognizablewithin the meaning of thatCode.

13. Offences by companies.

§13.Offences by companies.9AA.OFFENCES BY COMPANIES.

(1) Where an offence under this Act has been committed by a company, everyperson who, atthe time the offence was committed was in charge of, and wasresponsible to, the companyfor the conduct of the business of the company, aswell as the company, shall be deemed tobe guilty of the offence and shall beliable to be proceeded against and punishedaccordingly :

Provided that nothing contained in this sub-section shall render any suchperson liable toany punishment provided in this Act, if he proves that theoffence was committed withouthis knowledge or that he had exercised all duediligence to prevent the commission of suchoffence.

(2) Notwithstanding anything contained in sub-section (1), where an offenceunder this Acthas been committed by a company and it is proved that theoffence has been committed withthe consent or connivance of, or isattributable to any neglect on the part of, anydirector, manager, secretary orother officer of the company, such director, manager,secretary or otherofficer shall also be deemed to be guilty of that offence and shall beliableto be proceeded against and punished accordingly.

Explanation : For the purposes of this section, -

(a) "Company" means any body corporate and includes a firm or otherassociationof individuals; and

(b) "Director" in relation to a firm means a partner in the firm.


14. Power of court to publish name, place ofbusiness, etc.,

§14.Power of court to publish name, place of business, etc.,9B.POWER OF COURT TO PUBLISH NAME, PLACE OF BUSINESS, ETC., OF PERSONSCONVICTED UNDER THEACT. -

(1) Where any person is convicted under this Act for contravention of any oftheprovisions thereof, it shall be competent for the Court convicting theperson to cause thename and place of business or residence of such person,nature of the contravention, thefact that the person has been so convicted andsuch other particulars as the Court may consider to be appropriate in thecircumstances of the case, to be published atthe expense of such person, insuch newspapers or in such manner as the Court may direct.

(2) No publication under sub-section (1) shall be made until the period forpreferring anappeal against the orders of the Court has expired without anyappeal having beenpreferred, or such an appeal, having been preferred, hasbeen disposed of.

(3) The expenses of any publication under sub-section (1) shall be recoverablefrom theconvicted person as if it were a fine imposed by the Court.

15. Presumption of culpable mental state.

§15.Presumption of culpable mental state.9C.PRESUMPTION OF CULPABLE MENTAL STATE.

(1) In any prosecution for an offence under this Act which requires a culpablementalstate on the part of the accused, the Court shall presume the existenceof suchmental state but it shall be a defence for the accused to prove thefact that he had nosuch mental state with respect to the act charged as anoffence in that prosecution.

Explanation : In this section, "culpable mental state" includesintention,motive, knowledge of a fact, and belief in, or reason to believe, afact.

(2) For the purposes of this section, a fact is said to be proved only whenthe Courtbelieves it to exist beyond reasonable doubt and not merely when itsexistence isestablished by a preponderance of probability.

16. Relevancy of statements under certain


circumstances.

§16.Relevancy of statements under certain circumstances.9D.RELEVANCY OF STATEMENTS UNDER CERTAIN CIRCUMSTANCES

(1) A statement made and signed by a person before any Central Excise Officerof agazetted rank during the course of any inquiry or proceeding under thisAct shall berelevant, for the purpose of proving, in any prosecution for anoffence under this Act,the truth of the facts which it contains, -

(a) When the person who made the statement is dead or cannot be found, or isincapable ofgiving evidence, or is kept out of the way by the adverse party,or whose presence cannotbe obtained without an amount of delay or expensewhich, under the circumstances of thecase, the Court considers unreasonable;or

(b) When the person who made the statement is examined as a witness in thecase before theCourt and the Court is of opinion that, having regard to thecircumstances of the case,the statement should be admitted in evidence in theinterests of justice.

(2) The provisions of sub-section (1) shall, so far as may be, apply inrelation to anyproceeding under this Act, other than a proceeding before aCourt, as they apply inrelation to a proceeding before a Court.

17. Application of section 562 of the code ofcriminal procedure, 1998.

§17.Application of section 562 of the code of criminal procedure, 1998.9E.APPLICATION OF SECTION 562 OF THE CODE OF CRIMINAL PROCEDURE, 1898, AND OFTHE PROBATIONOF OFFENDERS ACT, 1958.

(1) Nothing contained in section 562 of the Code of Criminal Procedure, 189847 (5 of1898), or in the Probation of Offenders Act, 1958 (20 of 1958), shallapply to a personconvicted of an offence under this Act unless that person isunder eighteen years of age.

(2) The provisions of sub-section (1) shall have effect notwithstandinganything containedin sub-section (3) of section 9.

18. Power to courts to order forfeiture.


§18.Power to courts to order forfeiture.10.POWER OF COURTS TO ORDER FORFEITURE.

Any Court trying an offence under this Chapter may order the forfeiture toGovernment of any goods in respect of which the Court is satisfied that anoffence under thisChapter has been committed, and may also order theforfeiture of any receptacles, packagesor coverings in which such goods arecontained and the animals, vehicles, vessels or otherconveyances used incarrying the goods, and any implements or machinery used in themanufacture ofthe goods.

19. Recovery of sums due to Government.

§19.Recovery of sums due to Government.11.RECOVERY OF SUMS DUE TO GOVERNMENT.

In respect of duty and any other sums of any kind payable to the CentralGovernment underany of the provisions of this Act or of the rules made thereunder, the officer empoweredby the Central Board of Excise and Customsconstituted under the Central Boards ofRevenue Act, 1963 (54 of 1963) to levysuch duty or require the payment of such sumsmay deduct the amount so payablefrom any money owing to the person from whom such sumsmay be recoverable orduewhich may be in his hands or under his disposal or control, or may recoverthe amount byattachment and sale of excisable goods belonging to such person;and if the amount payableis not so recovered, he may prepare a certificatesigned by him specifying the amount duefrom the person liable to pay the sameand send it to the Collector of the districtin which such person resides orconducts his business and the said Collector, on receiptof such certificate,shall proceed to recover from the said person the amount specifiedtherein asif it were an arrear of land revenue.

20. Recovery of duties not levied or not paid orshort-levied.

§20.Recovery of duties not levied or not paid or short-levied.11A.RECOVERY OF DUTIES NOT LEVIED OR NOT PAID OR SHORT-LEVIED OR SHORT-PAID ORERRONEOUSLYREFUNDED.

(1) When any duty of excise has not been levied or paid or has been short-levied orshort-paid or erroneously refunded, a Central Excise Officer may,within six months fromthe relevant date, serve notice on the person chargeablewith the duty which has not beenlevied or paid or which has been short-levied


or short-paid or to whom the refund haserroneously been made, requiring him toshow cause why he should not pay the amountspecified in the notice :

Provided that where any duty of excise has not been levied or paid or hasbeenshort-levied or short-paid or erroneously refunded by reason of fraud,collusion or any willful mis-statement or suppression of facts, orcontravention of any of the provisions ofthis Act or of the rules made thereunder with intent to evade payment of duty, by suchperson or his agent, theprovisions of this sub-section shall have effect, as if, for the words "sixmonths", the words "five years"were substituted.

Explanation : Where the service of the notice is stayed by an order of acourt, the periodof such stay shall be excluded in computing the aforesaidperiod of six months or fiveyears, as the case may be.

(2) The Central Excise Officer shall, after considering the representation,ifany, made by the person on whom notice is served under sub-section (1),determine theamount of duty of excise due from such person (not being inexcess of the amount specifiedin the notice) and thereupon such person shallpay the amount so determined.


(i) "Refund" includes rebate of duty of excise on excisable goods exportedoutof India or on excisable materials used in the manufacture of goods whichare exported outof India;

(ii) "Relevant date" means, -

(a) In the case of excisable goods on which duty of excise has not been leviedorpaid or has been short-levied or short-paid -

(A) Where under the rules made under this Act a periodical return, showingparticulars ofthe duty paid on the excisable goods removed during the periodto which the said returnrelates, is to be filed by a manufacturer or aproducer or a licensee of a warehouse, asthe case may be, the date on whichsuch return is so filed;

(B) Where no periodical return as aforesaid is filed, the last date on whichsuch returnis to be filed under the said rules;

(C) In any other case, the date on which the duty is to be paid under this Actor therules made there under;

(b) In a case where duty of excise is provisionally assessed under this Act orthe rulesmade there under, the date of adjustment of duty after the final


assessment thereof;

(c) In the case of excisable goods on which duty of excise has beenerroneously refunded,the date of such refund.

21. Interest on delayed payment of duty.

§21.Interest on delayed payment of duty.11AA.INTEREST ON DELAYED PAYMENT OF DUTY.

Subject to the provisions contained in section 11AB, where a personchargeablewith duty determined under sub-section (2) of section 11A, fails topay such duty withinthree months from the date of such determination, he shallpay, in addition to the duty,interest at such rate not below ten per cent andnot exceeding thirty per cent per annumas is for the time being fixed by theBoard, on such duty from the date immediately afterthe expiry of the saidperiod of three months till the date of payment of such duty:

Provided that where a person chargeable with duty determined under sub-section(2) ofsection 11A before the date on which the Finance Bill, 1995 receives theassent of thePresident, fails to pay such duty within three months from suchdate, then, such personshall be liable to pay interest under this section fromthe date immediately after threemonths from such date, till the date ofpayment of such duty.

Explanation 1 : Where the duty determined to be payable is reduced by theCommissioner(Appeals), Appellate Tribunal or, as the case may be, the court,the date of suchdetermination shall be the date on which an amount of duty isfirst determined to bepayable.

Explanation 2 : Where the duty determined to be payable is increased orfurther increasedby the Commissioner (Appeals), Appellate Tribunal or, as thecase may be, the court, thedate of such determination shall be, -

(a) For the amount of duty first determined to be payable, the date on whichthe duty isso determined;

(b) For the amount of increased duty, the date of order by which the increasedamount ofduty is first determined to be payable;

(c) For the amount of further increase of duty, the date of order on which theduty is sofurther increased.

22. Interest on delayed payment of duty.


§22.Interest on delayed payment of duty.11AB.INTEREST ON DELAYED PAYMENT OF DUTY.

(1) Where any duty of excise has not been levied or paid or has been short-levied orshort-paid or erroneously refunded by reason of fraud, collusion orany willfulmis-statement or suppression of facts, or contravention of any ofthe provisions of thisAct or the rules made there under with intent to evadepayment of duty, the person liableto pay duty as determined under sub-section(2) of section 11A shall, in addition to theduty, be liable to pay interest atsuch rate not below ten per cent and not exceedingthirty per cent per annum,as is for the time being fixed by the Board, from the first dayof the monthsucceeding the month in which the duty ought to have been paid under this Actor the rules made there under or from the date of such erroneous refund, asthecase may be, but for the provisions contained in sub-section (2) of section11A, tillthe date of payment of such duty.

(2) For the removal of doubts, it is hereby declared that the provisions ofsub-section(1) shall not apply to cases where the duty became payable beforethe date on which theFinance (No. 2) Bill, 1996 receives the assent of thePresident.

Explanation 1 : Where the duty determined to be payable is reduced by theCommissioner(Appeals), the Appellate Tribunal or, as the case may be, thecourt, the interest shall bepayable on such reduced amount of duty.

Explanation 2 : Where the duty determined to be payable is increased orfurther increasedby the Commissioner (Appeals), the Appellate Tribunal or, asthe case may be, the court,the interest shall be payable on such increased orfurther increased amount of duty.

23. Penalty for short-levy or non-levy of duty incertain cases.

§23.Penalty for short-levy or non-levy of duty in certain cases.11AC.PENALTY FOR SHORT-LEVY OR NON-LEVY OF DUTY IN CERTAIN CASES.

Where any duty of excise has not been levied or paid or has been short-leviedorshort-paid or erroneously refunded by reasons of fraud, collusion or anywillful mis-statement or suppression of facts, or contravention of any of theprovisions of thisAct or of the rules made there under with intent to evadepayment of duty, the person whois liable to pay duty as determined under sub-section (2) of section 11A, shall alsobe liable to pay a penalty equal to theduty so determined :


Provided that where the duty determined to be payable is reduced or increasedby theCommissioner (Appeals), the Appellate Tribunal or, as the case may be,the court, then,for the purposes of this section, the duty as reduced orincreased, as the case may be,shall be taken into account.

24. Claim for refund of duty.

§24.Claim for refund of duty.11B.CLAIM FOR REFUND OF DUTY.

(1) Any person claiming refund of any duty of excise may make an applicationfor refund ofsuch duty to the Assistant Commissioner of Central Excise beforethe expiry ofsix months from the relevant date in such form and manner asmaybe prescribed and the application shall be accompanied by such documentaryor otherevidence (including the documents referred to in section 12A) as theapplicant may furnishto establish that the amount of duty of excise inrelation to which such refund is claimedwas collected from, or paid by, himand the incidence of such duty had not been passed onby him to any otherperson :

Provided that where an application for refund has been made before thecommencement of theCentral Excises and Customs Laws (Amendment) Act, 1991,such application shall be deemedto have been made under this sub-section asamended by the said Act and the same shall bedealt with in accordance with theprovisions of sub-section (2) substituted by that Act :

Provided further that the limitation of six months shall not apply whereanyduty has been paid under protest.

(2) If, on receipt of any such application, the Assistant CommissionerofCentral Excise is satisfied that the whole or any part of the duty of excise

paid by the applicant is refundable, he may make an order accordingly and theamount sodetermined shall be credited to the Fund :

Provided that the amount of duty of excise as determined by theAssistantCommissioner of Central Excise under the foregoing provisions of thissub-sectionshall, instead of being credited to the Fund, be paid to theapplicant, if such amount isrelatable to -

(a) Rebate of duty of excise on excisable goods exported out of India or onexcisablematerials used in the manufacture of goods which are exported out ofIndia;


(b) Unspent advance deposits lying in balance in the applicant"s accountcurrentmaintained with the [ 67 Commissioner of Central Excise 67 ];

(c) Refund of credit of duty paid on excisable goods used as inputs inaccordance with therules made, or any notification issued, under this Act;

(d) Duty of excise paid by the manufacturer, if he had not passed on theincidence of suchduty to any other person;

(e) The duty of excise borne by the buyer, if he had not passed on theincidence of suchduty to any other person;

(f) The duty of excise borne by any other such class of applicants as theCentralGovernment may, by notification in the Official Gazette, specify :

Provided further that no notification under clause (f) of the first provisoshall beissued unless in the opinion of the Central Government the incidenceof duty has not beenpassed on by the persons concerned to any other person.

(3) Notwithstanding anything to the contrary contained in any judgment,decree, order ordirection of the Appellate Tribunal or any Court or in anyother provision of this Act orthe rules made there under or any other law forthe time being in force, no refund shall bemade except as provided in sub-section (2).

(4) Every notification under clause (f) of the first proviso to sub-section(2) shall belaid before each House of Parliament, if it is sitting, as soon asmay be after theissue of the notification, and, if it is not sitting, withinseven days of itsre-assembly, and the Central Government shall seek theapproval of Parliament to thenotification by a resolution moved within aperiod of fifteen days beginning with the dayon which the notification is solaid before the House of the People andif Parliament makes any modification inthe notification or directs that the notificationshould cease to have effect,the notification shall thereafter have effect only in such modified form or beof no effect, as the case may be, but without prejudice to thevalidity ofanything previously done there under.

(5) For the removal of doubts, it is hereby declared that any notificationissued underclause (f) of the first proviso to sub-section (2), including anysuch notificationapproved or modified under sub-section (4), may be rescindedby the Central Government atany time by notification in the Official Gazette.


(A) "Refund" includes rebate of duty of excise on excisable goods exportedoutof India or on excisable materials used in the manufacture of goods which


are exported outof India;

(B) "Relevant date" means, -

(a) In the case of goods exported out of India where a refund of excise dutypaid isavailable in respect of the goods themselves or, as the case may be,the excisablematerials used in the manufacture of such goods, -

(i) If the goods are exported by sea or air, the date on which the ship or theaircraft inwhich such goods are loaded, leaves India, or

(ii) If the goods are exported by land, the date on which such goods pass thefrontier, or

(iii) If the goods are exported by post, the date of despatch of goods by thePost Officeconcerned to a place outside India;

(b) In the case of goods returned for being remade, refined, reconditioned, orsubjectedto any other similar process, in any factory, the date of entry intothe factory for thepurposes aforesaid;

(c) In the case of goods to which banderols are required to be affixed ifremoved for homeconsumption but not so required when exported outside India,if returned to a factoryafter having been removed from such factory for exportout of India, the date of entryinto the factory;

(d) In a case where a manufacturer is required to pay a sum, for a certainperiod, on thebasis of the rate fixed by the Central Government bynotification in the Official Gazettein full discharge of his liability for theduty leviable on his production of certaingoods, if after the manufacturer hasmade the payment on the basis of such rate for anyperiod but before the expiryof that period such rate is reduced, the date of suchreduction;

(e) In the case of a person, other than the manufacturer, the date of purchaseof thegoods by such person;

(ea) In the case of goods which are exempt from payment of duty by a specialorderissued under sub-section (2) of section 5A, the date of issue of suchorder;

(eb) In case where duty of excise is paid provisionally under this Act or therulesmade there under, the sub-section (2) of section 5A, the date of issue ofsuchorder;

(f) In any other case, the date of payment of duty.


25. Interest on delayed refunds.

§25.Interest on delayed refunds.11BB.INTEREST ON DELAYED REFUNDS. -

If any duty ordered to be refunded under sub-section (2) of section 11B to anyapplicantis not refunded within three months from the date of receipt ofapplication undersub-section (1) of that section, there shall be paid to thatapplicant interest at suchrate, not below ten per cent and not exceedingthirty per cent per annum as is for thetime being fixed by the Board, on suchduty from the date immediately after the expiry ofthree months from the dateof receipt of such application till the date of refund of suchduty :

Provided that where any duty ordered to be refunded under sub-section (2) ofsection 11Bin respect of an application under sub-section (1) of that sectionmade before the date onwhich the Finance Bill, 1995 receives the assent of thePresident, is not refunded withinthree months from such date, there shall bepaid to the applicant interest under thissection from the date immediatelyafter three months from such date, till the date ofrefund of such duty.

Explanation : Where any order of refund is made by the Commissioner (Appeals),AppellateTribunal or any court against an order of the Assistant Commissionerof Central Excise,under sub-section (2) of section 11B, the order passed bythe Commissioner (Appeals),Appellate Tribunal or, as the case may be, by thecourt shall be deemed to be an orderpassed under the said sub-section (2) forthe purposes of this section.

26. Power not to recover duty of excise not leviedfor short-levied.

§26.Power not to recover duty of excise not levied for short-levied.11C.POWER NOT TO RECOVER DUTY OF EXCISE NOT LEVIED OR SHORT-LEVIED AS A RESULTOF GENERALPRACTICE.

(1) Notwithstanding anything contained in this Act, if the Central Governmentissatisfied -

(a) That a practice was, or is, generally prevalent regarding levy of duty ofexcise(including non-levy thereof) on any excisable goods; and

(b) That such goods were, or are, liable -

(i) To duty of excise, in cases where according to the said practice the dutywas not, oris not being, levied, or


(ii) To a higher amount of duty of excise than what was, or is being, levied,according tothe said practice,

Then, the Central Government may, by notification in the Official Gazette 74direct thatthe whole of the duty of excise payable on such goods, or as thecase may be, the duty ofexcise in excess of that payable on such goods, butfor the said practice, shall not berequired to be paid in respect of the goodson which the duty of excise was not, or is notbeing, levied, or was, or isbeing, short-levied, in accordance with the said practice.

(2) Where any notification under sub-section (1) in respect of any goods hasbeenissued, the whole of the duty of excise paid on such goods or, as the casemay be, theduty of excise paid in excess of that payable on such goods, whichwould not have beenpaid if the said notification had been in force, shall bedealt with in accordance withthe provisions of sub-section (2) of section 11B:

Provided that the person claiming the refund of such duty or, as the case maybe, excessduty, makes an application in this behalf to the AssistantCommissioner of CentralExcise, in the form referred to in sub-section (1) ofsection 11B, before the expiryof six months from the date of issue of the saidnotification.

27. Duties of excise collected form the buyer to bedeposited.

§27.Duties of excise collected form the buyer to be deposited.11D.DUTIES OF EXCISE COLLECTED FROM THE BUYER TO BE DEPOSITED WITH THE CENTRALGOVERNMENT. -

(1) Notwithstanding anything to the contrary contained in any order ordirection of theAppellate Tribunal or any Court or in any other provision ofthis Act or the rules made there under, every person who has collected anyamount from the buyer of any goods in anymanner as representing duty ofexcise, shall forthwith pay the amount so collected to thecredit of theCentral Government.

(2) The amount paid to the credit of the Central Government under sub-section(1) shall beadjusted against the duty of excise payable by the person onfinalisation of assessmentand where any surplus is left after such adjustment,the amount of such surplus shalleither be credited to the Fund or, as the casemay be, refunded to the person who hasborne the incidence of such amount, inaccordance with the provisions of section 11Band the relevant date for making


an application under that section in such cases shall bethe date of the publicnotice to be issued by the Assistant Commissioner of CentralExcise.

28. Application of the provisions of [Act No.52 of1962] to central excises.

§28.Application of the provisions of [Act No.52 of 1962] to central excises.12.APPLICATION OF THE PROVISIONS OF ACT NO. 52 OF 1962 TO CENTRAL EXCISEDUTIES.

The Central Government may, by notification in the Official Gazette, 79declare thatany of the provisions of the Customs Act, 1962 (52 of 1962),relating to thelevy of and exemption from customs duties, drawback of duty,warehousing, offences andpenalties, confiscation, and procedure relating tooffences and appeals shall, with suchmodifications and alterations as it mayconsider necessary or desirable to adapt them tothe circumstances, beapplicable in regard to like matters in respect of the dutiesimposed bysection 3.

29. Price of goods to indicate the amount of dutypaid thereon.

§29.Price of goods to indicate the amount of duty paid thereon.12A.PRICE OF GOODS TO INDICATE THE AMOUNT OF DUTY PAID THEREON.

Notwithstanding anything contained in this Act or any other law for the timebeing inforce, every person who is liable to pay duty of excise on any goodsshall, at the time ofclearance of the goods, prominently indicate in all thedocuments relating to assessment,sales invoice, and other like documents, theamount of such duty which will form part ofthe price at which such goods areto be sold.

30. Presumption that the incidence of duty has beenpassed on the buyer.

§30.Presumption that the incidence of duty has been passed on the buyer.12B.PRESUMPTION THAT THE INCIDENCE OF DUTY HAS BEEN PASSED ON TO THE BUYER.

Every person who has paid the duty of excise on any goods under this Actshall, unless thecontrary is proved by him, be deemed to have passed on the


full incidence of such duty tothe buyer of such goods.

31. Consumer welfare fund.

§31.Consumer welfare fund.12C.CONSUMER WELFARE FUND.

(1) There shall be established by the Central Government a fund, to be calledthe ConsumerWelfare Fund.

(2) There shall be credited to the Fund, in such manner as may be prescribed,-

(a) The amount of duty of excise referred to in sub-section (2) of section 11Borsub-section (2) of section 11C or sub-section (2) of section 11D;

(b) The amount of duty of customs referred to in sub-section (2) of section 27orsub-section (2) of section 28A, or sub-section (2) of section 28B of theCustoms Act, 1962(52 of 1962);

(c) Any income from investment of the amount credited to the Fund and anyother moniesreceived by the Central Government for the purposes of this Fund.

32. Utilisation of the fund.

§32.Utilisation of the fund.12D.UTILISATION OF THE FUND.

(1) Any money credited to the Fund shall be utilised by the Central Governmentfor thewelfare of the consumers in accordance with such rules as thatGovernment may make in thisbehalf.

(2) The Central Government shall maintain or, if it thinks fit, specify theauthoritywhich shall maintain, proper and separate account and other relevantrecords in relationto the Fund in such form as may be prescribed inconsultation with the Comptroller andAuditor-General of India.

33. Power of central excise officers.

§33.Power of central excise officers.12E.POWERS OF CENTRAL EXCISE OFFICERS.

(1) A Central Excise Officer may exercise the powers and discharge the duties


conferred orimposed under this Act on any other Central Excise Officer who issubordinate to him.

(2) Notwithstanding anything contained in sub-section (1), the CommissionerofCentral Excise (Appeals) shall not exercise the powers and discharge thedutiesconferred or imposed on a Central Excise Officer other than thosespecified in section 14or Chapter VIA.

34. Power of Arrest

§34.Power of Arrest13. POWER TO ARREST.

(1) Any Central Excise Officer duly empowered 82a by the Central Government inthis behalfmay arrest any person whom he has reason to believe to be liable topunishment under thisAct.

(2) Any person accused or reasonably suspected of committing an offence underthis Act orany rules made there under, who on demand of any officer dulyempowered 82a by the CentralGovernment in this behalf, refuses to give hisname and residence, or who gives a name orresidence which such officer hasreason to believe to be false, may be arrested by suchofficer in order thathis name and residence may be ascertained.

35. Power to summon persons to give evidence andproduce documents.

§35.Power to summon persons to give evidence and produce documents.14.POWER TO SUMMON PERSONS TO GIVE EVIDENCE AND PRODUCE DOCUMENTS IN INQUIRIESUNDER THISACT.

(1) Any Central Excise Officer duly empowered by the Central Government inthis behalf,shall have power to summon any person whose attendance heconsiders necessary either togive evidence or to produce a document or anyother thing in any inquiry which suchofficer is making for any of the purposesof this Act. A summons to produce documents orother things may be for theproduction of certain specified documents or things or for theproduction ofall documents or things of a certain description in the possession orunder thecontrol of the person summoned.

(2) All persons so summoned shall be bound to attend, either in person or byan authorisedagent, as such officer may direct; and all persons so summonedshall be bound to state thetruth upon any subject respecting which they are


examined or make statements and toproduce such documents and other things asmay be required :

Provided that the exemptions under sections 132 and 133 of the Code of CivilProcedure,1908 (5 of 1908) shall be applicable to requisitions for attendanceunder this section.

(3) Every such inquiry as aforesaid shall be deemed to be a"judicialproceeding" within the meaning of section 193 and section 228 of theIndian PenalCode, 1860 (45 of 1860).

36. Special audit in certain cases.

§36.Special audit in certain cases.14A.SPECIAL AUDIT IN CERTAIN CASES.

(1) If at any stage of enquiry, investigation or any other proceedings beforehim, anyCentral Excise Officer not below the rank of an Assistant Commissionerof Central Excise,having regard to the nature and complexity of the case andthe interest of revenue, is ofthe opinion that the value has not beencorrectly declared or determined by a manufactureror any person, he may, withthe previous approval of the Chief Commissioner of CentralExcise, direct suchmanufacturer or such person to get the accounts of his factory,office, depots,distributors or any other place, as may be specified by the said CentralExciseOfficer, audited by a cost accountant, nominated by the Chief CommissionerofCentral Excise in this behalf.

(2) The cost accountant, so nominated shall, within the period specified bythe CentralExcise Officer, submit a report of such audit duly signed andcertified by him to the saidCentral Excise Officer mentioning therein suchother particulars as may be specified :

Provided that the Central Excise Officer may, on an application made to him inthis behalfby the manufacturer or the person and for any material andsufficient reason, extend thesaid period by such further period or periods ashe thinks fit; so, however, that theaggregate of the period originally fixedand the period or periods so extended shall not,in any case, exceed onehundred and eighty days from the date on which the direction undersub-section(1) is received by the manufacturer or the person.

(3) The provisions of sub-section (1) shall have effect notwithstanding thattheaccounts of the manufacturer or person aforesaid have been audited underany other law forthe time being in force or otherwise.


(4) The expenses of, and incidental to, such audit (including the remunerationof the costaccountant) shall be determined by the Chief Commissioner ofCentral Excise (whichdetermination shall be final) and paid by themanufacturer or person and in default ofsuch payment, shall be recoverablefrom the manufacturer or the person in the mannerprovided in section 11 forthe recovery of sums due to the Government.

(5) The manufacturer or the person shall be given an opportunity of beingheard in respectof any material gathered on the basis of audit under sub-section (1) andproposed to be utilised in any proceedings under this Act orrules made there under.

Explanation : For the purpose of this section, "cost accountant" shall havethemeaning assigned to it in clause (b) of sub-section (1) of section 2 of theCost and WorksAccountants Act, 1959 (23 of 1959).

37. Special audit in cases where credit of dutyavailed or utilised is not.

§37.Special audit in cases where credit of duty availed or utilised is not.14AA.SPECIAL AUDIT IN CASES WHERE CREDIT OF DUTY AVAILED OR UTILISED IS NOTWITHIN THE NORMALLIMITS, ETC.

(1) If the Commissioner of Central Excise has reason to believe that thecredit of dutyavailed of or utilised under the rules made under this Act by amanufacturer of anyexcisable goods -

(a) Is not within the normal limits having regard to the nature of theexcisable goodsproduced or manufactured, the type of inputs used and otherrelevant factors, as he maydeem appropriate;

(b) Has been availed of or utilised by reason of fraud, collusion or anywillful mis-statement or suppression of facts,

He may direct such manufacturer to get the accounts of his factory, office,depot,distributor or any other place, as may be specified by him, audited by acost accountantnominated by him.

(2) The cost accountant so nominated shall, within the period specified bytheCommissioner of Central Excise, submit a report of such audit duly signedand certified byhim to the said Commissioner mentioning therein such otherparticulars as may bespecified.

(3) The provisions of sub-section (1) shall have effect notwithstanding that


the accountsof the said manufacturer aforesaid have been audited under anyother law for the timebeing in force or otherwise.

(4) The expenses of, and incidental to, such audit (including the remunerationof the costaccountant) shall be determined by the Commissioner of CentralExcise (which determinationshall be final) and paid by the manufacturer and indefault of such payment shall berecoverable from the manufacturer in themanner provided in section 11 for the recovery ofsums due to the Government.

(5) The manufacturer shall be given an opportunity of being heard in respectof anymaterial gathered on the basis of the audit under sub-section (1) andproposed to beutilised in any proceeding under this Act or rules made thereunder.

Explanation : For the purpose of this section, "cost accountant" shall havethemeaning assigned to it in clause (b) of sub-section (1) of section 2 of theCost and WorksAccountants Act, 1959 (23 of 1959).

38. Officers required to assist central exciseofficers.

§38.Officers required to assist central excise officers.15.OFFICERS REQUIRED TO ASSIST CENTRAL EXCISE OFFICERS.

All officers of Police and Customs and all officers of Government engaged inthecollection of land revenue, and all village officers are hereby empoweredand required toassist the Central Excise Officers in the execution of thisAct.

39. Owners or occupiers of land to reportmanufacture of contraband excise.

§39.Owners or occupiers of land to report manufacture of contraband excise.16.OWNERS OR OCCUPIERS OF LAND TO REPORT MANUFACTURE OF CONTRABAND EXCISABLEGOODS.

Every owner or occupier of land, and the agent of any such owner oroccupierin-charge of the management of that land, if contraband excisablegoods are manufacturedthereon, shall, in the absence of reasonable excuse, bebound to give notice of suchmanufacture to a Magistrate, or to an officer ofthe Central Excise, Customs, Police, orLand Revenue Department, immediatelythe fact comes to his knowledge.


40. Punishment for connivance at offences.

§40.Punishment for connivance at offences.17.PUNISHMENT FOR CONNIVANCE AT OFFENCES.

Any owner or occupier of land, or any agent of such owner or occupier incharge of themanagement of that land, who willfully connives at any offenceagainst the provisions ofthis Act or of any rules made there under shall, forevery such offence, be punishable withimprisonment for a term which may extendto six months, or with fine which may extend tofive hundred rupees, or withboth.

41. Searches and Arrests how to be made.

§41.Searches and Arrests how to be made.18.SEARCHES AND ARRESTS HOW TO BE MADE.

All searches made under this Act or any rules made there under and all arrestsmade underthis Act shall be carried out in accordance with the provisions ofthe Codeof Criminal Procedure, 1898 (5 of 1898), 85 relating respectively tosearches and arrestsmade under that Code.

42. Disposal of persons arrested.

§42.Disposal of persons arrested.19.DISPOSAL OF PERSONS ARRESTED.

Every person arrested under this Act shall be forwarded without delay to thenearestCentral Excise Officer 86 empowered to send persons so arrested to aMagistrate, or,if there is no such Central Excise Officer within a reasonabledistance, to theofficer-in-charge of the nearest police station.

43. Procedure to be followed by officer-in-charge ofpolice station.

§43.Procedure to be followed by officer-in-charge of police station.20.PROCEDURE TO BE FOLLOWED BY OFFICER-IN-CHARGE OF POLICE STATION.

The officer-in-charge of a police station to whom any person is forwardedunder section 19shall either admit him to bail to appear before the Magistrate


having jurisdiction, or indefault of bail forward him in custody to suchMagistrate.

44. Inquiry how to be made by central exciseofficers against arrested.

§44.Inquiry how to be made by central excise officers against arrested.21.INQUIRY HOW TO BE MADE BY CENTRAL EXCISE OFFICERS AGAINST ARRESTED PERSONSFORWARDED TOTHEM UNDER SECTION 19.

(1) When any person is forwarded under section 19 to a Central Excise Officerempowered82a to send persons so arrested to a Magistrate, the Central ExciseOfficer shall proceedto enquire into the charge against him.

(2) For this purpose the Central Excise Officer may exercise the same powersand shall besubject to the same provisions as the officer-in-charge of apolice station may exerciseand is subject to under the Code of CriminalProcedure, 1898 (5 of 1898), 87 wheninvestigating a cognizable case :

Provided that -

(a) If the Central Excise Officer is of opinion that there is sufficientevidence orreasonable ground of suspicion against the accused person, he shalleither admit him tobail to appear before a Magistrate having jurisdiction in the case, or forwardhim incustody to such Magistrate;

(b) If it appears to the Central Excise Officer that there is not sufficientevidence orreasonable ground of suspicion against the accused person, he shallrelease the accusedperson on his executing a bond, with or without sureties asthe Central Excise Officer maydirect, to appear, if and when so required,before the Magistrate having jurisdiction, andshall make a full report of allthe particulars of the case to his official superior.

45. Vexatious search, seizure, etc., by Centralexcise officers.

§45.Vexatious search, seizure, etc., by Central excise officers.22.VEXATIOUS SEARCH, SEIZURE, ETC., BY CENTRAL EXCISE OFFICER.

Any Central Excise or other officer exercising powers under this Act or underthe rulesmade there under who -


(a) without reasonable ground of suspicion searches or causes to be searchedany house,boat or place;

(b) vexatiously and unnecessarily detains, searches or arrests any person;

(c) vexatiously and unnecessarily seizes the movable property of any person,on pretenceof seizing or searching for any article liable to confiscationunder this Act;

(d) commits, as such officer, any other act to the injury of any person,without havingreason to believe that such act is required for the execution ofhis duty; shall, forevery such offence, be punishable with fine which mayextend to two thousand rupees.

Any person willfully and maliciously giving false information and so causingan arrest or asearch to be made under this Act shall be punishable with finewhich may extend to twothousand rupees or with imprisonment for a term whichmay extend to two years or withboth.

46. Failure of Central excise officer in duty.

§46.Failure of Central excise officer in duty.23.FAILURE OF CENTRAL EXCISE OFFICER IN DUTY.

Any Central Excise Officer who ceases or refuses to perform or withdrawshimself from theduties of his office, unless he has obtained the expresswritten permission of theCommissioner of Central Excise, or has given to hissuperior officer two months"notice in writing of his intention or has otherlawful excuse, shall on conviction beforea Magistrate be punishable withimprisonment for a term which may extend to three months,or with fine whichmay extend to three months" pay, or with both.

47. Penalties for carrying excisable goods incertain vessels.

§47.Penalties for carrying excisable goods in certain vessels.24.PENALTIES FOR CARRYING EXCISABLE GOODS IN CERTAIN VESSELS.

When any excisable goods are carried by sea in any vessel other than a vesselof theburden of three hundred tons and upwards, the owner and master of suchvessel shall eachbe punishable with imprisonment for a term which may extendto six months, or with finewhich may extend to one thousand rupees, or withboth.


48. Exceptions.

§48.Exceptions.25.EXCEPTIONS.

Nothing in section 24 applies to -

(a) Any excisable goods covered by a permit granted under rules made underthis Act;

(b) Any excisable goods covered by a pass granted by any officer whom theCentralBoard of Excise and Customs constituted under the Central Boards ofRevenue Act, 1963 (54of 1963) may appoint in this behalf;

(c) Such amount of excisable goods carried on board any vessel for consumptionby her crewor by the passengers or animals (if any) on board as the CentralBoard of Excise andCustoms constituted under the Central Boards of RevenueAct, 1963 (54 of 1963) mayfrom time to time exempt from the operation ofsection 24.

49. Power of stoppage, search and arrest.

§49.Power of stoppage, search and arrest.26.POWER OF STOPPAGE, SEARCH AND ARREST.

When any officer empowered 82a by the Central Board of Excise and Customsconstitutedunder the Central Boards of Revenue Act, 1963 (54 of 1963), to actunder this sectionhas reason to believe, from personal knowledge or frominformation taken down in writing,that any excisable goods are being carried,or have within the previous twenty-fourhours been carried, in any vessel so asto render the owner or master of such vesselliable to the penalties imposed bysection 24, he may require such vessel to be brought toand thereupon may -

(a) enter and search the vessel;

(b) require the master of the vessel to produce any documents in hispossession relatingto the vessel or the cargo thereof;

(c) seize the vessel if the officer has reason to believe it liable toconfiscation underthis Act, and cause it to be brought with its crew and cargointo any port in India; and

(d) where any excisable goods are found on board the vessel, search and arrest


without awarrant any person on board the vessel whom he has reason to believeto be punishableunder section 24.

50. Penalties for resisting officer.

§50.Penalties for resisting officer.27.PENALTIES FOR RESISTING OFFICER. -

Any master of a vessel refusing or neglecting to bring to the vessel or toproduce hispapers when required to do so by an officer acting under section26, and any personobstructing any such officer in the performance of his duty,may be arrested by suchofficer without a warrant, and shall be punishable withimprisonment for a term which mayextend to six months or with fine which mayextend to one thousand rupees, or with both.

51. Confiscation of vessel and cargo.

§51.Confiscation of vessel and cargo.28.CONFISCATION OF VESSEL AND CARGO. -

(1) Every vessel (including all appurtenances) in which any excisable goodsare carried soas to render the owner or master of such vessel liable topenalties imposed by section 24,the cargo on board such vessel and theexcisable goods in respect of which an offenceunder this Act has beencommitted shall be liable to confiscation on the orders of theofficerempowered 82a in this behalf by the Central Government.

(2) Whenever any Customs Officer is satisfied that any article is liable toconfiscationunder this section he may seize such article, and shall at oncereport the seizure to hissuperior officer for the information of the officerempowered to order confiscation undersub-section (1) and such officer may, ifsatisfied on such report or after making suchinquiry as he thinks fit, thatthe article so seized is liable to confiscation, eitherdeclare it to beconfiscated, or impose a fine in lieu thereof not exceeding the value ofthearticle.

52. Jurisdiction.

§52.Jurisdiction.29.JURISDICTION. -

Any offence punishable under section 24 or section 27 may be deemed to have


been committedwithin the limits of the jurisdiction of the Magistrate of anyplace where the offender isfound, or to which, if arrested under section 26 orsection 27, he may be brought.

53. Power to exempt from operation of this chapter.

§53.Power to exempt from operation of this chapter.30.POWER TO EXEMPT FROM OPERATION OF THIS CHAPTER.

The Central Government may, by notification in the Official Gazette, 93 exemptthecarriage of excisable goods within any local limits or in any class ofvessels from theoperation of this Chapter, and, by like notification, againsubject to such carriage tothe operation of this Chapter.

54. Definitions - In this chapter, unless thecontext otherwise requires.

§54.Definitions - In this chapter, unless the context otherwise requires.31.DEFINITIONS. - IN THIS CHAPTER, UNLESS THE CONTEXT OTHERWISE REQUIRES, -

(a) "Assesssee" means any person who is liable for payment of excisedutyassessed under this Act or any other Act and includes any producer ormanufacturer ofexcisable goods or a registered person under the rules madeunder this Act, of a privatewarehouse in which excisable goods are stored;

(b) "Bench" means a Bench of the Settlement Commission;

(c) "Case" means any proceeding under this Act or any other Act for thelevy,assessment and collection of excise duty, or any proceeding by way ofappeal or revisionin connection with such levy, assessment or collection,which may be pending before aCentral Excise Officer or Central Government onthe date on which an application undersub-section (1) of section 32E is made :

Provided that where any appeal or application for revision has been preferredafter theexpiry of the period specified for the filing of such appeal orapplication for revisionunder this Act and which has not been admitted, suchappeal or revision shall not bedeemed to be a proceeding pending within themeaning of this clause;

(d) "Chairman" means the Chairman of the Settlement Commission;

(e) "Commissioner (Investigation)" means an officer of the customs or a


CentralExcise Officer appointed as such Commissioner to conduct inquiry orinvestigation for thepurposes of this Chapter;

(f) "Member" means a Member of the Settlement Commission and includestheChairman and the Vice-Chairman;

(g) "Settlement Commission" means the Customs and Central ExciseSettlementCommission constituted under section 32; and (h) "Vice-Chairman"means aVice-Chairman of the Settlement Commission.

55. Customs and Central excise settlementcommission.

§55.Customs and Central excise settlement commission.32.CUSTOMS AND CENTRAL EXCISE SETTLEMENT COMMISSION. -

(1) The Central Government shall, by notification in the Official Gazette,constitute aCommission to be called the Customs and Central Excise SettlementCommission for thesettlement of cases under this Chapter and Chapter XIVA ofthe Customs Act, 1962 (52 of1962).

(2) The Settlement Commission shall consist of a Chairman and as many Vice-Chairmen andother Members as the Central Government thinks fit and shallfunction within theDepartment of the Central Government dealing with Customsand Central Excise matters.

(3) The Chairman, Vice-Chairman and other Members of the Settlement Commissionshall beappointed by the Central Government from amongst persons of integrityand outstandingability, having special knowledge of, and experience in,administration of customs andcentral excise laws :

Provided that, where a member of the Board is appointed as the Chairman, Vice-Chairman oras a Member of the Settlement Commission, he shall cease to be amember of the said Board.

56. Jurisdiction and Powers of settlementcommission.

§56.Jurisdiction and Powers of settlement commission.32A.JURISDICTION AND POWERS OF SETTLEMENT COMMISSION. -

(1) Subject to the other provisions of this Chapter, the jurisdiction, powersandauthority of the Settlement Commission may be exercised by Benches thereof.


(2) Subject to the other provisions of this section, a Bench shall be presidedover by theChairman or a Vice-Chairman and shall consist of two other Members.

(3) The Bench for which the Chairman is the presiding officer shall be theprincipal Benchand other Benches shall be known as additional Benches.

(4) Notwithstanding anything contained in sub-section (1) and sub-section (2),theChairman may authorise the Vice-Chairman or other Member appointed to oneBench todischarge also the functions of the Vice-Chairman or, as the case maybe, other Member ofanother Bench.

(5) The principal Bench shall sit at Delhi and the Central Government shall,bynotification in the Official Gazette, establish additional Benches at suchplaces as itconsiders necessary.

(6) Notwithstanding anything contained in the foregoing provisions of thissection, andsubject to any rules that may be made in this behalf, when one ofthe personsconstituting a Bench (whether such person be the presiding officer.or other Member of theBench) is unable to discharge his functions owing toabsence, illness or any other causeor in the event of the occurrence of anyvacancy either in the office of the presidingofficer or in the office of oneor the other Members of the Bench, the remaining Membersmay function as theBench and if the presiding officer of the Bench is not one of theremainingMembers, the senior among the remaining Members shall act as thepresidingofficer of the Bench :

Provided that if at any stage of the hearing of any such case or matter, itappears to thepresiding officer that the case or matter is of such a naturethat it ought to be heard ofby a Bench consisting of three Members, the caseor matter may be referred by thepresiding officer of such Bench to theChairman for transfer to such Bench as the Chairmanmay deem fit.

(7) Notwithstanding anything contained in the foregoing provisions of thissection, theChairman may, for the disposal of any particular case, constitutea special Benchconsisting of more than three Members.

(8) Subject to the other provisions of this Chapter, the special Bench shallsit at aplace to be fixed by the Chairman.

57. Vice-Chairman to Acct as Chairman or toDischarge his functions.


§57.Vice-Chairman to Acct as Chairman or to Discharge his functions.32B.VICE-CHAIRMAN TO ACT AS CHAIRMAN OR TO DISCHARGE HIS FUNCTIONS IN CERTAINCIRCUMSTANCES. -

(1) In the event of the occurrence of any vacancy in the office of theChairman by reasonof his death, resignation or otherwise, the Vice-Chairmanor, as the case may be, such oneof the Vice-Chairmen as the Central Governmentmay, by notification in the OfficialGazette, authorise in this behalf, shallact as the Chairman until the date on which a newChairman, appointed inaccordance with the provisions of this Chapter to fill suchvacancy, entersupon his office.

(2) When the Chairman is unable to discharge his functions" owing to absence,illness orany other cause, the Vice-Chairman or, as the case may be, such oneof theVice-Chairmen as the Central Government may, by notification in theOfficial Gazette,authorise in this behalf, shall discharge the functions ofthe Chairman until the date onwhich the Chairman resumes his duties.

58. Power of Chairman to transfer cases from onebench to another.

§58.Power of Chairman to transfer cases from one bench to another.32C.POWER OF CHAIRMAN TO TRANSFER CASES FROM ONE BENCH TO ANOTHER. -

On the application of the assessee or the Chief Commissioner or Commissionerof CentralExcise and after giving notice to them, and after hearing such ofthem as he may desire tobe heard, or on his own motion without such notice,the Chairman may transfer any casepending before one Bench, for disposal, toanother Bench.

59. Decision to be by Majority.

§59.Decision to be by Majority.32D.DECISION TO BE BY MAJORITY. -

If the Members of a Bench differ in opinion on any point, the point shall bedecidedaccording to the opinion of the majority, if there is a majority, butif the members areequally divided, they shall state the point or points onwhich they differ, and make areference to the Chairman who shall either hearthe point or points himself or refer thecase for hearing on such point orpoints by one or more of the other Members of theSettlement Commission andsuch point or points shall be decided according to the opinionof the majority


of the Members of the Settlement Commission who have heard the case,includingthose who first heard it.

60. Application for settlement of cases.

§60.Application for settlement of cases.32E.APPLICATION FOR SETTLEMENT OF CASES. -

(1) An assessee may, at any stage of a case relating to him make anapplication in suchform and in such manner as may be prescribed, andcontaining a full and true disclosure ofhis duty liability which has not beendisclosed before the Central Excise Officer havingjurisdiction, the manner inwhich such liability has been derived, the additional amountof excise dutyaccepted to be payable by him and such other particulars as may beprescribedincluding the particulars of such excisable goods in respect of which headmitsshort levy on account of misclassification or otherwise of suchexcisable goods, to theSettlement Commission to have the case settled and anysuch application shall be disposedof in the manner hereinafter provided :

Provided that no such application shall be made unless, -

(a) The applicant has filed monthly returns showing production, clearance andcentralexcise duty paid in the prescribed manner;

(b) A show cause notice for recovery of duty issued by the Central ExciseOfficer has beenreceived by the applicant; and

(c) The additional amount of duty accepted by the applicant in his applicationexceeds twolakh rupees :

Provided further that no application shall be entertained by the SettlementCommissionunder this sub-section in cases which are pending with the AppellateTribunal or any Court:

Provided also that no application under this sub-section shall be made fortheinterpretation of the classification of excisable goods under the CentralExcise TariffAct, 1985 (5 of 1986).

(2) Where any excisable goods, books of accounts, other documents have beenseized underthe provisions of this Act or rules made there under, the assesseeshall not be entitled tomake an application under sub-section (1), before theexpiry of one hundred and eightydays from the date of the seizure.

(3) Every application made under sub-section (1) shall be accompanied by suchfees as maybe prescribed.


(4) An application made under sub-section (1) shall not! be allowed to bewithdrawn by theapplicant.

61. Procedure on receipt of an application undersection 32E.

§61.Procedure on receipt of an application under section 32E.32F.PROCEDURE ON RECEIPT OF AN APPLICATION UNDER SECTION 32E. -

(1) On receipt of an application under sub-section (1) of section 32E, theSettlementCommission shall call for a report from the Commissioner of CentralExcise havingjurisdiction and on the basis of the materials contained in suchreport and having regardto the nature and circumstances of the case or thecomplexity of theinvestigation involved therein, the Settlement Commissionmay, by order, allow theapplication to be proceeded with or reject theapplication :

Provided that an application shall not be rejected under this sub-section,unless anopportunity has been given to the applicant of being heard :

Provided further that the Commissioner of Central Excise shall furnish suchreport withina period of one month of the receipt of the communication fromthe Settlement Commission,failing which it shall be presumed that theCommissioner of Central Excise has noobjection to such application; but he mayraise objections at the time of hearing fixed bythe Settlement Commission foradmission of the application and the date of such hearingshall be communicatedby the Settlement Commission to the applicant and the Commissionerof CentralExcise within a period not exceeding two months from the date of receiptofsuch application, unless the presiding officer of the Bench extends thetime, recordingthe reasons in writing.

(2) A copy of every order under sub-section (1) shall be sent to the applicantand to theCommissioner of Central Excise having jurisdiction.

(3) Subject to the provisions of sub-section (4), the applicant shall withinthirty daysof the receipt of a copy of the order under sub-section (1)allowing the application to beproceeded with, pay the amount of additionalduty admitted by him as payable and shallfurnish proof of such payment to theSettlement Commission.

(4) If the Settlement Commission is satisfied, on an application made in thisbehalf bythe assessee that he is unable for good and sufficient reasons to paythe amountreferred to in sub-section (3), within the time specified in that


sub-section, it mayextend the time for payment of the amount which remainsunpaid or allow payment thereof by installments, if the assessee furnishesadequate security for the payment thereof.

(5) Where the additional amount of duty referred to in sub-section (3) is notpaid by theassessee within the time specified or extended period, as the casemay be, the SettlementCommission may direct that the amount which remainsunpaid, together with simple interestat the rate of eighteen per cent. perannum or at the rate notified by the Central Boardof Excise and Customs fromtime to time on the amount remaining unpaid, be recovered, asthe sum due toCentral Government by the Central Excise Officer having jurisdiction overtheassessee in accordance with the provisions of section 11.

(6) Where an application is allowed to be proceeded with under sub-section(1), theSettlement Commission may call for the relevant records from theCommissioner of CentralExcise having jurisdiction and after examination ofsuch records, if the SettlementCommission is of the opinion that any furtherenquiry or investigation in the matter isnecessary, it may direct theCommissioner (Investigation) to make or cause to be made suchfurther enquiryor investigation and furnish a report on the matters covered by theapplicationand any other matter relating to the case.

(7) After examination of the records and the report of the Commissioner ofCentral Excisereceived under sub-section (1), and the report, if any, of theCommissioner(Investigation) of the Settlement Commission under sub-section(6), and after giving anopportunity to the applicant and to the Commissionerof Central Excise having jurisdictionto be heard, either in person or througha representative duly authorised in this behalf,and after examining suchfurther evidence as may be placed before it or obtained by it,the SettlementCommission may, in accordance with the provisions of this Act, pass suchorderas it thinks fit on the matters covered by the application and any othermatterrelating to the case not covered by the application, but referred to inthe report of theCommissioner of Central Excise and Commissioner(Investigation) under sub-section (1) orsub-section (6).

(8) Subject to the provisions of section 32A, the materials brought on recordbefore theSettlement Commission shall be considered by the Members of theconcerned Bench beforepassing any order under sub-section (7) and, in relationto the passing of such order, theprovisions of section 32D shall apply.

(9) Every order passed under sub-section (7) shall provide for the terms ofsettlementincluding any demand by way of duty, penalty or interest, the mannerin which any sums dueunder the settlement shall be paid and all other mattersto make the settlement effectiveand shall also provide that the settlementshall be void if it is subsequently found bythe Settlement Commission that it


has been obtained by fraud, or misrepresentation offacts.

(10) Where any duty payable in pursuance of an order under sub-section (7) isnot paid bythe assessee within thirty days of the receipt of a copy of theorder by him, then,whether or not the Settlement Commission has extended thetime for payment of such duty orhas allowed payment thereof by installments,the assessee shall be liable to pay simpleinterest at the rate of eighteen percent. per annum or at such other rate as notified bythe Central Board ofExcise and Customs on the amount remaining unpaid from the date ofexpiry ofthe period of thirty days aforesaid.

(11) Where a settlement becomes void as provided under sub-section (9) theproceedingswith respect to the matters covered by the settlement shall bedeemed to have been revivedfrom the stage at which the application was allowedto be proceeded with by the SettlementCommission and the Central ExciseOfficer having jurisdiction may, notwithstandinganything contained in anyother provision of this Act, complete such proceedings at anytime before theexpiry of two years from the date of the receipt of communication thatthesettlement became void.

62. Power of settlement commission to orderprovisional attachment.

§62.Power of settlement commission to order provisional attachment.32G.POWER OF SETTLEMENT COMMISSION TO ORDER PROVISIONAL ATTACHMENT TO PROTECTREVENUE. -

(1) Where, during the pendency of any proceeding before it, the SettlementCommission isof the opinion that for the purpose of protecting the interestsof revenue it is necessaryso to do, it may, by order, attach provisionally anyproperty belonging to the applicantin the manner as may be prescribed.

(2) Every provisional attachment made by the Settlement Commission under sub-section (1)shall cease to have effect from the date, the sums due to theCentral Government for whichsuch attachment is made are discharged by theapplicant and evidence to that effect issubmitted to the SettlementCommission.

63. Power of settlement commission to reopencompleted proceedings.

§63.Power of settlement commission to reopen completed proceedings.


32H.POWER OF SETTLEMENT COMMISSION TO REOPEN COMPLETED PROCEEDINGS. -

If the Settlement Commission is of the opinion (the reasons for such opinionto berecorded by it in writing) that, for the proper disposal of the casepending before it, itis necessary or expedient to reopen any proceedingconnected with the case but which hasbeen completed under this Act beforeapplication for settlement under section 32E wasmade, it may, with theconcurrence of the applicant, reopen such proceeding and pass suchorderthereon as it thinks fit, as if the case in relation to which the applicationforsettlement had been made by the applicant under that section covered suchproceeding also:

Provided that no proceeding shall be reopened by the Settlement Commissionunder thissection after the expiry of five years from the date of application.

64. Powers and Procedure of settlement commissions.

§64.Powers and Procedure of settlement commissions.32-I.POWERS AND PROCEDURE OF SETTLEMENT COMMISSIONS. -

(1) In addition to the powers conferred on the Settlement Commission underthis Chapter,it shall have all the powers which are vested in a Central ExciseOfficer under this Actor the rules made there under.

(2) Where an application made under section 32E has been allowed to beproceeded withunder section 32F, the Settlement Commission shall, until anorder is passed undersubsection. (7) of section 32F, have, subject to theprovisions of sub-section (6) of thatsection, exclusive jurisdiction toexercise the powers and perform the functions of anyCentral Excise Officer,under this Act in relation to the case.

(3) In the absence of any express direction by the Settlement Commission tothe contrary,nothing in this Chapter shall affect the operation of theprovisions of this Act in so far as they relate to any matters other thanthose before the SettlementCommission.

(4) The Settlement Commission shall, subject to the provisions of thisChapter, have powerto regulate its own procedure and the procedure of Benchesthereof in all matters arising out of the exercise of its powers, or of thedischarge of its functions,including the places at which the Benches shallhold their sittings.

65. Inspection, etc., of reports


§65.Inspection, etc., of reports32J. INSPECTION, ETC., OF REPORTS. -

No person shall be entitled to inspect, or obtain copies of, any reports madebyany Central Excise Officer to the Settlement Commission; but theSettlementCommission may, in its discretion furnish copies thereof to any suchperson onan application made to it in this behalf and on payment of theprescribed fee :

Provided that, for the purpose of enabling any person whose case isunderconsideration to rebut any evidence brought on record against him in anysuchreport, the Settlement Commission shall, on an application made in thisbehalf,and on payment of the prescribed fee by such person, furnish him withacertified copy of any such report or part thereof relevant for the purpose.

66. Power of settlement commission to grant immunityfrom prosecution.

§66.Power of settlement commission to grant immunity from prosecution.32K.POWER OF SETTLEMENT COMMISSION TO GRANT IMMUNITY FROM PROSECUTION ANDPENALTY. -

(1) The Settlement Commission may, if it is satisfied that any person who madetheapplication for settlement under section 32E has co-operated with theSettlementCommission in the proceedings before it and has made a full and truedisclosure of hisduty liability, grant to such person, subject to suchconditions as it may think fit toimpose, immunity from prosecution for anyoffence under this Act or under the Indian PenalCode (45 of 1860) or under anyother Central Act for the time being in force and alsoeither wholly or in partfrom the imposition of any penalty, fine and interest underthis Act, withrespect to the case covered by the settlement :

Provided that no such immunity shall be granted by the Settlement Commissionin caseswhere the proceedings for the prosecution for any such offence havebeen instituted beforethe date of receipt of the application under section32E.

(2) An immunity granted to a person under sub-section (1) shall standwithdrawn if suchperson fails to pay any sum specified in the order of thesettlement passed undersub-section (7) of section 32F within the timespecified in such order or within suchfurther time as may be allowed by theSettlement Commission, or fails to comply with anyother condition subject towhich the immunity was granted and thereupon the provisions ofthis Act shall


apply as if such immunity had not been granted.

(3) An immunity granted to a person under sub-section (1) may, at any time, bewithdrawnby the Settlement Commission, if it is satisfied that such personhad, in the course ofthe settlement proceedings, concealed any particularmaterial to the settlement or hadgiven false evidence, and thereupon suchperson may be tried for the offence with respectto which the immunity wasgranted or for any other offence of which he appears to havebeen guilty inconnection with the settlement and shall also become liable to theimpositionof any penalty under this Act to which such person would have been liable,hadno such immunity been granted.

67. Power of settlement commission to send a caseback to the Central excise.

§67.Power of settlement commission to send a case back to the Central excise.32L.POWER OF SETTLEMENT COMMISSION TO SEND A CASE BACK TO THE CENTRAL EXCISEOFFICER. -

(1) The Settlement Commission may, if it is of opinion that any person whomade anapplication for settlement under section 32E has not co-operated withthe SettlementCommission in the proceedings before it, send the case back tothe Central Excise Officerhaving jurisdiction who shall thereupon dispose ofthe case in accordance with theprovisions of this Act as if no applicationunder section 32E had been made.

(2) For the purpose of sub-section (1), the Central Excise Officer shall beentitled touse all the materials and other information produced by theassessee before the SettlementCommission or the results of the inquiry held orevidence recorded by the SettlementCommission in the course of the proceedingsbefore it as if such materials, information,inquiry and evidence had beenproduced before such Central Excise Officer or held orrecorded by him in thecourse of the proceedings before him.

(3) For the purposes of the time limit under section 11A and for the purposesof interestunder section 11BB, in a case referred to in sub-section (1), theperiod commencing on andfrom the date of the application to the SettlementCommission under section 32E and endingwith the date of receipt by the CentralExcise Officer of the order of the SettlementCommission sending the case backto the Central Excise Officer shall be excluded.

68. Order of settlement to be conclusive.


§68.Order of settlement to be conclusive.32M.ORDER OF SETTLEMENT TO BE CONCLUSIVE. -

Every order of settlement passed under sub-section (7) of section 32F shall beconclusiveas to the matters stated therein and no matter covered by such ordershall, save asotherwise provided in this Chapter, be reopened in anyproceeding under this Act or underany other law for the time being in force.

69. Recovery of sums due under order of settlement.

§69.Recovery of sums due under order of settlement.32N.RECOVERY OF SUMS DUE UNDER ORDER OF SETTLEMENT. -

Any sum specified in an order of settlement passed under sub-section (7) ofsection32F may, subject to such conditions if any, as may be specifiedtherein, berecovered, and any penalty for default in making payment of suchsum may be imposed andrecovered as sums due to the Central Government inaccordance with the provisions undersection 11 by the Central Excise Officerhaving jurisdiction over the person who made theapplication for settlementunder section 32E.

70. Bar on subsequent application for settlement incertain cases.

§70.Bar on subsequent application for settlement in certain cases.32-O.BAR ON SUBSEQUENT APPLICATION FOR SETTLEMENT IN CERTAIN CASES. - Where -

(i) An order of settlement passed under sub-section (7) of section 32Fprovides for theimposition of a penalty on the person who made the applicationunder section 32E forsettlement, on the ground of concealment of particularsof his duty liability; or

(ii) After the passing of an order of settlement under the said sub-section(7) inrelation to a case, such person is convicted of any offence under thisAct in relation tothat case; or

(iii) The case of such person is sent back to the Central Excise Officerhavingjurisdiction by the Settlement Commission under section 32L, then, heshall not beentitled to apply for settlement under section 32E in relation toany other matter.


71. Proceedings before settlement commission to bejudicial proceedings.

§71.Proceedings before settlement commission to be judicial proceedings.32P.PROCEEDINGS BEFORE SETTLEMENT COMMISSION TO BE JUDICIAL PROCEEDINGS. -

Any proceedings under this Chapter before the Settlement Commission shall bedeemed to bea judicial proceeding within the meaning of sections 193 and 228,and for the purposes ofsection 196 of the Indian Penal Code (45 of 1860).

72. Power of Adjudication.

§72.Power of Adjudication.33.POWER OF ADJUDICATION.

Where by the rules made under this Act anything is liable to confiscation orany person isliable to a penalty, such confiscation or penalty may be adjudged-

(a) Without limit, by a Commissioner of Central Excise;

(b) Up to confiscation of goods not exceeding five hundred rupees in value andimpositionof penalty not exceeding two hundred and fifty rupees, by anAssistant Commissionerof Central Excise :

Provided that the Central Board of Excise and Customs constituted undertheCentral Boards of Revenue Act, 1963 (54 of 1963), may, in the case of anyofficerperforming the duties of an Assistant Commissioner of Central Excise,reduce thelimits indicated in clause (b) of this section and may confer on anyofficer the powersindicated in clause (a) or (b) of this section.

73. Option to pay fine in lieu of confiscation.

§73.Option to pay fine in lieu of confiscation.34.OPTION TO PAY FINE IN LIEU OF CONFISCATION.

Whenever confiscation is adjudged under this Act or the rules made thereunder, the officeradjudging it, shall give the owner of the goods an option topay in lieu ofconfiscation such fine as the officer thinks fit.

74. Confiscation or penalty not to interfere with


other punishments.

§74.Confiscation or penalty not to interfere with other punishments.34A.CONFISCATION OR PENALTY NOT TO INTERFERE WITH OTHER PUNISHMENTS.

No confiscation made or penalty imposed under the provisions of the Act or ofany rulemade there under shall prevent the infliction of any other punishmentto which the personaffected thereby is liable under the provisions of this Actor under any other law.

75. Appeals to [Commissioner (Appeals)].

§75.Appeals to [Commissioner (Appeals)].35.APPEALS TO COMMISSIONER (APPEALS).

(1) Any person aggrieved by any decision or order passed under this Act by aCentralExcise Officer, lower in rank than a Commissioner of Central Excise,mayappeal to the Commissioner of Central Excise (Appeals) [hereafter inthisChapter referred to as the Commissioner (Appeals)] within three monthsfromthe date of the communication to him of such decision or order :

Provided that the Commissioner (Appeals) may, if he is satisfied thattheappellant was prevented by sufficient cause from presenting the appealwithin theaforesaid period of three months, allow it to be presented within afurther period ofthree months.

(2) Every appeal under this section shall be in the prescribed form and shallbe verifiedin the prescribed manner.

76. Procedure in appeals.

§76.Procedure in appeals.35A.PROCEDURE IN APPEAL.

(1) The Commissioner (Appeals) shall give an opportunity to the appellant tobeheard, if he so desires.

(2) The Commissioner (Appeals) may, at the hearing of an appeal, allowanappellant to go into any ground of appeal not specified in the grounds ofappeal, if the Commissioner (Appeals) is satisfied that the omission of thatground from thegrounds of appeal was not willful or unreasonable.

(3) The Commissioner (Appeals) may, after making such further inquiry as maybe


necessary, pass such order as he thinks fit confirming, modifying or annullingthedecision or order appealed against, or may refer the case back to theadjudicatingauthority with such directions as he may think fit for a freshadjudication or decision,as the case may be, after taking additional evidence,if necessary :

Provided that an order enhancing any penalty or fine in lieu of confiscationorconfiscating goods of greater value or reducing the amount of refund shallnot be passedunless the appellant has been given a reasonable opportunity ofshowing cause against theproposed order :

Provided further that where the Commissioner (Appeals) is of opinion thatanyduty of excise has not been levied or paid or has been short-levied orshort-paid orerroneously refunded, no order requiring the appellant to pay anyduty not levied or paid,short-levied or short-paid or erroneously refundedshall be passed unless the appellant is given notice within the time-limitspecified in section 11A to showcause against the proposed order.

(4) The order of the Commissioner (Appeals) disposing of the appeal shall beinwriting and shall state the points for determination, the decision thereon andthereasons for the decision.

(5) On the disposal of the appeal, the Commissioner (Appeals) shallcommunicatethe order passed by him to the appellant, the adjudicating authority and theCommissioner of Central Excise.

77. Appeals to the appellate tribunal.

§77.Appeals to the appellate tribunal.35B.APPEALS TO THE APPELLATE TRIBUNAL 101

(1) Any person aggrieved by any of the following orders may appeal to theAppellateTribunal against such order -

(a) A decision or order passed by the Commissioner of Central Excise asanadjudicating authority;

(b) An order passed by the Commissioner (Appeals) under section 35A;

(c) An order passed by the Central Board of Excise and Customs constitutedunder theCentral Boards of Revenue Act, 1963 (54 of 1963), (hereafter in thisChapter referred toas the Board) or the Appellate Commissioner of CentralExcise under section35, as it stood immediately before the appointed day;

(d) an order passed by the Board or the Commissioner of Central Excise,either


before or after the appointed day, under section 35A, as it stoodimmediatelybefore that day :

Provided that no appeal shall lie to the Appellate Tribunal and theAppellateTribunal shall not have jurisdiction to decide any appeal in respectof any orderreferred to in clause (b) if such order relates to, -

(a) A case of loss of goods, where the loss occurs in transit from a factoryto awarehouse or to another factory, or from one warehouse to another, orduring thecourse of processing of the goods in a warehouse or in storage,whether in a factory or ina warehouse;

(b) A rebate of duty of excise on goods exported to any country or territoryoutside Indiaor on excisable materials used in the manufacture of goods whichare exported to anycountry or territory outside India;

(c) Goods exported outside India (except to Nepal or Bhutan) without paymentof duty;

(d) Credit of any duty allowed to be utilised towards payment of excise dutyonfinal products under the provisions of this Act or the rules made thereunder and suchorder is passed by the Commissioner (Appeals) on or after thedate appointed under section109 of the Finance (No. 2) Act, 1998 :

Provided further that the Appellate Tribunal may, in its discretion, refuseadmit anappeal in respect of an order referred to in clause (b) or clause (c)or clause (d) where-

(i) In any disputed case, other than a case where the determination of anyquestion havinga relation to the rate of duty of excise or to the value ofgoods for purposes ofassessment is in issue or is one of the points in issue,the difference in duty involvedor the duty involved; or

(ii) The amount of fine or penalty determined by such order, does not exceedfiftythousand rupees;

(1A) Every appeal against any order of the nature referred to in the firstprovisoto sub-section (1), which is pending immediately before thecommencement of Section 47 ofthe Finance Act, 1984, before the AppellateTribunal and any matter arising out of, orconnected with, such appeal andwhich is so pending shall stand transferred on suchcommencement to the CentralGovernment, and the Central Government shall deal with suchappeal or matterunder section 35EE as if such appeal or matter were an application or amatterarising out of an application made to it tinder that section.

(2) The Commissioner of Central Excise may, if he is of opinion that an


orderpassed by the Appellate Commissioner of Central Excise under section 35,as itstood immediately before the appointed day, or the Commissioner(Appeals)under section 35A, is not legal or proper, direct any Central ExciseOfficer authorised by him in this behalf (hereafter in this Chapter referredto as theauthorised officer) to appeal on his behalf to the Appellate Tribunalagainst such order.

(3) Every appeal under this section shall be filed within three months fromthe date onwhich the order sought to be appealed against is communicated tothe Commissioner ofCentral Excise, or, as the case may be, the other partypreferring the appeal.

(4) On receipt of notice that an appeal has been preferred under this section,the partyagainst whom the appeal has been preferred may, notwithstanding thathe may not haveappealed against such order or any part thereof, file, withinforty-five days of thereceipt of the notice, a memorandum of cross-objectionsverified in the prescribed manneragainst any part of the order appealedagainst and such memorandum shall be disposed of bythe Appellate Tribunal asif it were an appeal presented within the time specified insub-section (3).

(5) The Appellate Tribunal may admit an appeal or permit the filing of amemorandum ofcross-objections after the expiry of the relevant period referredto in sub-section (3) orsub-section (4), if it is satisfied that there wassufficient cause for not presenting itwithin that period.

(6) An appeal to the Appellate Tribunal shall be in the prescribed form andshall beverified in the prescribed manner and shall, in the case of an appealmade on or after the1st day of June, 1993, irrespective of the date of demandof duty or of levy of penalty inrelation to which the appeal is made beaccompanied by a fee of, -

(a) Where the amount of duty demanded and penalty levied by any Central ExciseOfficer inthe case to which the appeal relates is one lakh rupees or less, twohundred rupees;

(b) Where the amount of duty demanded and penalty levied by any Central ExciseOfficer inthe case to which the appeal relates is more than one lakh rupees,one thousand rupees :

Provided that no such fee shall be payable in the case of an appeal referredto insub-section (2) or a memorandum of cross-objections referred to in sub-section (4).

78. Orders of appellate tribunal.


§78.Orders of appellate tribunal.35C.ORDERS OF APPELLATE TRIBUNAL. -

(1) The Appellate Tribunal may, after giving the parties to the appeal anopportunity ofbeing heard, pass such orders thereon as it thinks fit,confirming, modifying orannulling the decision or order appealed against ormay refer the case back to theauthority which passed such decision or orderwith such directions as the AppellateTribunal may think fit, for a freshadjudication or decision, as the case may be, aftertaking additional evidence,if necessary.

(2) The Appellate Tribunal may, at any time within four years from the date ofthe order,with a view to rectifying any mistake apparent from the record,amend any order passed byit under sub-section (1) and shall make suchamendments if the mistake is brought to itsnotice by the Commissioner ofCentral Excise or the other party to the appeal:

Provided that an amendment which has the effect of enhancing an assessment orreducing arefund or otherwise increasing the liability of the other party,shall not be made underthis sub-section, unless the Appellate Tribunal hasgiven notice to him of its intentionto do so and has allowed him a reasonableopportunity of being heard.

(3) The Appellate Tribunal shall send a copy of every order passed under thissection tothe Commissioner of Central Excise and the other party to theappeal.

(4) Save as provided in section 35G or section 35L, orders passed by theAppellateTribunal on appeal shall be final.

79. Procedure of appellate tribunal.

§79.Procedure of appellate tribunal.35D.PROCEDURE OF APPELLATE TRIBUNAL. 104 -

(1) The provisions of sub-sections (1), (2), (5) and (6) of section 129C ofthe CustomsAct, 1962 (52 of 3 1962), shall apply to the Appellate Tribunal inthe discharge of itsfunctions under this Act as they apply to it in thedischarge of its functions under theCustoms Act, 1962.

(2) * * *

(3) The President or any other member of the Appellate Tribunal authorisedthis behalf bythe President may, sitting singly, dispose of any case which hasallotted tothe Bench of which he is a member where -


(a) In any disputed case, other than a case where the determination of anyquestion havinga relation to the rate of duty of excise or to the value ofgoods for purposes ofassessment is in issue or is one of the points in issue,the difference in duty involvedor the duty involved; or

(b) The amount of fine or penalty involved, does not exceed ten lakh rupees.

80. Powers of board or [Commissioner of CentralExcise] to pass certain.

§80.Powers of board or [Commissioner of Central Excise] to pass certain.35E.POWERS OF BOARD OR COMMISSIONER OF CENTRAL EXCISE TO PASS CERTAIN ORDERS.-108

(1) The Board may, of its own motion, call for and examine the record of anyproceeding inwhich a Commissioner of Central Excise as an adjudicatingauthority has passedany decision or order under this Act for the purpose ofsatisfying itself as to thelegality or propriety of any such decision or orderand may, by order, direct such Commissioner to apply to the Appellate Tribunalfor the determination of suchpoints arising out of the decision or order asmay be specified by the Board in its order.

(2) The Commissioner of Central Excise may, of his own motion, call forandexamine the record of any proceeding in which an adjudicating authoritysubordinate to himhas passed any decision or order under this Act for thepurpose of satisfying himself asto the legality or propriety of any suchdecision or order and may, by order, directsuch authority to apply to theCommissioner (Appeals) for the determination ofsuch points arising out of thedecision or order as may be specified by theCommissioner of Central Excise inhis order.

(3) No order shall be made under sub-section (1) or sub-section (2) after theexpiry of one year from the date of the decision or order of the adjudicatingauthority.

(4) Where in pursuance of an order under sub-section (1) or sub-section (2)theadjudicating authority or the authorised officer makes an application tothe AppellateTribunal or the Commissioner (Appeals) within a period of threemonths fromthe date of communication of the order under sub-section (1) orsub-section (2) to theadjudicating authority, such application shall be heardby the Appellate Tribunal or the Commissioner (Appeals), as the case may be,as if such application were anappeal made against the decision or order of theadjudicating authority and theprovisions of this Act regarding appeals,


including the provisions of sub-section (4) ofsection 35B shall, so far as maybe, apply to such application.

(5) The provisions of this section shall not apply to any decision or order inwhichthe determination of any question having a relation to the rate of dutyof excise or tothe value of goods for the purposes of assessment of any dutyis in issue or is one of thepoints in issue.

Explanation : For the purposes of this sub-section, the determination of arate of duty inrelation to any goods or valuation of any goods for thepurposes of assessment of dutyincludes the determination of a question -

(a) Relating to the rate of duty of excise for the time being in force,whether under theCentral Excise Tariff Act, 1985 (5 of 1986), or under anyother Central Act providing forthe levy and collection of any duty of excise,in relation to any goods on or after the28th day of February, 1986; or

(b) Relating to the value of goods for the purposes of assessment of any dutyof excise incases where the assessment is made on or after the 28th day ofFebruary,1986; or

(c) Whether any goods are excisable goods or whether the rate of duty ofexcise on anygoods is nil; or

(d) Whether any goods fall under a particular heading or sub-heading of thetheFirst Schedule and the Second Schedule of the Central Excise Tariff Act,1985 (5 of1986), or the Additional Duties of Excise (Goods of SpecialImportance) Act, 1957 (58 of1957), or the Additional Duties of Excise(Textiles and Textile Articles) Act, 1978 (40 of1978), or that any goods areor not covered by a particular notification or order issuedby the CentralGovernment or the Board, as the case may be, granting total orpartialexemption from duty; or

(e) Whether the value of any goods for the purposes of assessment of duty ofexcise shallbe enhanced or reduced by the addition or reduction of the amountsin respect of suchmatters as are specifically provided in this Act.

81. Powers of revision of board or [Commissioner ofCentral Excise] in certain.

§81.Powers of revision of board or [Commissioner of Central Excise] incertain.35EA.POWERS OF REVISION OF BOARD OR COMMISSIONER OF CENTRAL EXCISE INCERTAINCASES.


(1) The Board may, of its own motion or on the application of any aggrievedperson orotherwise, call for and examine the record of any proceeding in whicha Commissionerof Central Excise has passed any decision or order [not being adecision or orderpassed under sub-section (2) of this section] of the naturereferred to in sub-section (5)of section 35E for the purpose of satisfyingitself as to correctness, legality orpropriety of such decision or order andmay pass such order thereon as it thinks fit.

(2) The Commissioner of Central Excise may, of his own motion or ontheapplication of any aggrieved person or otherwise, call for and examine therecord of anyproceeding in which an adjudicating authority subordinate to himhas passed any decisionor order of the nature referred to in sub-section (5)of section 35E for the purpose ofsatisfying himself as to the correctness,legality or propriety of such decision or orderand may pass such order thereonas he thinks fit.

(3) (a) No decision or order under this section shall be made so as toprejudiciallyaffect any person unless such person is given a reasonableopportunity of makingrepresentation and if, he so desires, of being heard inhis defence.

(b) Where the Board or, as the case may be, the Commissioner of CentralExciseis of the opinion that any duty of excise has not been levied or hasbeen short-levied orshort-paid or erroneously refunded, no order requiring theaffected person to pay any dutynot levied or paid, short-levied or short-paidor erroneously refunded shall be passedunder this section unless such personis given notice within the time-limit specified insection 11A to show causeagainst the proposed order.

(4) No proceedings shall be initiated under sub-section (1) or sub-section (2)in respectof any decision or order after the expiry of a period of six monthsfrom the date ofcommunication of such decision or order :

Provided that in respect of any decision or order passed before thecommencement of theCustoms and Central Excise Laws (Amendment) Act, 1988, theprovisions of this sub-sectionshall have effect as if for the words "sixmonths", the words "oneyear" were substituted.

(5) Any person aggrieved by any decision or order passed under sub-section (1)orsub-section (2) may appeal to the Customs and Excise Revenues AppellateTribunalestablished under section 3 of the Customs and Excise RevenuesAppellate Tribunal Act,1986 (62 of 1986), against such decision or order.

82. Revision by Central Government.


§82.Revision by Central Government.35EE.REVISION BY CENTRAL GOVERNMENT. -

(1) The Central Government may, on the application of any person aggrieved byany orderpassed under section 35A, where the order is of the nature referredto in the firstproviso to sub-section (1) of section 35B, annul or modify suchorder.

Explanation : For the purposes of this sub-section, "order passed undersection35A" includes an order passed under that section before thecommencement of section47 of the Finance Act, 1984 against which an appeal hasnot been preferred before suchcommencement and could have been, if the saidsection had not come into force, preferredafter such commencement, to theAppellate Tribunal.

(2) An application under sub-section (1) shall be made within three monthsfrom the dateof the communication to the applicant of the order against whichthe application is beingmade :

Provided that the Central Government may, if it is satisfied that theapplicant wasprevented by sufficient cause from presenting the applicationwithin the aforesaid periodof three months, allow it to be presented within afurther period of three months.

(3) An application under sub-section (1) shall be in such form and shall beverified insuch manner as may be specified by rules made in this behalf andshall beaccompanied by a fee of two hundred rupees.

(4) The Central Government may, of its own motion, annul or modify any orderreferred toin sub-section (1).

(5) No order enhancing any penalty or fine in lieu of confiscation orconfiscating goodsof greater value shall be passed under this section, -

(a) In any case in which an order passed under section 35A has enhanced anypenalty orfine in lieu of confiscation or has confiscated goods of greatervalue; and

(b) In any other case, unless the person affected by the proposed order hasbeen givennotice to show cause against it within one year from the date of theorder sought to beannulled or modified.

(6) Where the Central Government is of opinion that any duty of excise has notbeen leviedor has been short-levied, no order levying or enhancing the dutyshall be made under thissection unless the person affected by the proposed


order is given notice to show causeagainst it within the time-limit specifiedin section 11A.

83. Deposit, Pending Appeal, of duty demanded orpenalty levied.

§83.Deposit, Pending Appeal, of duty demanded or penalty levied.35F.DEPOSIT, PENDING APPEAL, OF DUTY DEMANDED OR PENALTY LEVIED.

Where in any appeal under this Chapter, the decision or order appealed againstrelates toany duty demanded in respect of goods which are not under thecontrol of Central Exciseauthorities or any penalty levied under this Act, theperson desirous of appealing againstsuch decision or order shall, pending theappeal, deposit with the adjudicating authoritythe duty demanded or thepenalty levied :

Provided that where in any particular case, the Commissioner (Appeals) ortheAppellate Tribunal is of opinion that the deposit of duty demanded orpenalty levied wouldcause undue hardship to such person, the Commissioner(Appeals) or, as thecase may be, the Appellate Tribunal, may dispense withsuch deposit subject to suchconditions as he or it may deem fit to impose soas to safeguard the interests of revenue.

84. Statement of case to High Court.

§84.Statement of case to High Court.35G.STATEMENT OF CASE TO HIGH COURT.

(1) The Commissioner of Central Excise or the other party may, withinsixtydays of the date upon which he is served with notice of an order under section35C(not being an order relating, among other things, to the determination ofany questionhaving a relation to the rate of duty of excise or to the value ofgoods for purposes ofassessment), by application in the prescribed form,accompanied, where theapplication is made by the other party, by a fee of twohundred rupees, require theAppellate Tribunal to refer to the High Court anyquestion of law arising out of suchorder and, subject to the other provisionscontained in this section, the AppellateTribunal shall, within one hundred andtwenty days of the receipt of such application,draw up a statement of the caseand refer it to the High Court :

Provided that the Appellate Tribunal may, if it is satisfied that theapplicant wasprevented by sufficient cause from presenting the applicationwithin the periodhereinbefore specified, allow it to be presented within a


further period not exceedingthirty days.

(2) On receipt of notice that an application has been made under sub-section(1), theperson against whom such application has been made, may,notwithstanding that he may nothave filed such an application, file, withinforty-five days of the receipt of the notice,a memorandum of cross-objectionsverified in the prescribed manner against any part of theorder in relation towhich an application for reference has been made and such memorandumshall bedisposed of by the Appellate Tribunal as if it were an applicationpresentedwithin time specified in sub-section(1).

(3) If, on an application made under sub-section (1), the Appellate Tribunalrefuses tostate the case on the ground that no question of law arises, theCommissioner ofCentral Excise or as the case may be, the other party maywithin six months fromthe date on which he is served with notice of suchrefusal, apply to the High Court andthe High Court may, if it is not satisfiedwith the correctness of the decision ofthe Appellate Tribunal, require theAppellate Tribunal to state the case and to refer it,and on receipt of anysuch requisition, the Appellate Tribunal shall state the case andrefer itaccordingly.

(4) Where in the exercise of its powers under sub-section (3), the AppellateTribunalrefuses to state a case which it has been required by an applicant tostate, the applicantmay, within thirty days from the date on which he receivesnotice of such refusal,withdraw his application and, if he does so, the fee,if any, paid by him shall berefunded.

85. Statement of case to Supreme Court in certaincases.

§85.Statement of case to Supreme Court in certain cases.35H.STATEMENT OF CASE TO SUPREME COURT IN CERTAIN CASES. - 111 .

If, on an application made under section 35G, the Appellate Tribunal is ofopinion that,on account of conflict in the decisions of High Courts in respectof any particularquestion of law, it is expedient that a reference should bemade direct to the SupremeCourt, the Appellate Tribunal may draw up astatement of the case and refer it through thePresident direct to the SupremeCourt.

86. Power of High Court or Supreme Court to requirestatement to be amendment.


§86.Power of High Court or Supreme Court to require statement to beamendment.35-I.POWER OF HIGH COURT OR SUPREME COURT TO REQUIRE STATEMENT TO BE AMENDED.-

If the High Court or the Supreme Court is not satisfied that the statements ina casereferred to it are sufficient to enable it to determine the questionsraised thereby, theCourt may refer the case back to the Appellate Tribunal forthe purpose of making suchadditions thereto or alterations therein as it maydirect in that behalf.

87. Case before High Court to be heard by not lessthan two Judges.

§87.Case before High Court to be heard by not less than two Judges.35J.CASE BEFORE HIGH COURT TO BE HEARD BY NOT LESS THAN TWO JUDGES. -

(1) When any case has been referred to the High Court under section 35G, itshall be heardby a Bench of not less than two judges of the High Court andshall be decided inaccordance with the opinion of such judges or of themajority, if any, of such judges.

(2) Where there is no such majority, the judges shall state the point of lawupon whichthey differ and the case shall then be heard upon that point only byone or more of theother judges of the High Court, and such point shall bedecided according to the opinionof the majority of the judges who have heardthe case including those who first heard it.

88. Decision of High Court or Supreme Court on thecase stated.

§88.Decision of High Court or Supreme Court on the case stated.35K.DECISION OF HIGH COURT OR SUPREME COURT ON THE CASE STATED. -

(1) The High Court or the Supreme Court hearing any such case shall decide thequestion oflaw raised therein and shall deliver its judgment thereoncontaining the grounds on whichsuch decision is founded and a copy of thejudgment shall be sent under the seal of theCourt and the signature of theRegistrar to the Appellate Tribunal which shall pass suchorders as arenecessary to dispose of the case in conformity with such judgment.


(2) The costs of any reference to the High Court or the Supreme Court, whichshall notinclude the fee for making the reference, shall be in the discretionof the Court.

89. Appeals to the Supreme Court.

§89.Appeals to the Supreme Court.35L.APPEAL TO THE SUPREME COURT 113

An appeal shall lie to

(a) Any judgment of the High Court delivered on a reference made under section35G in anycase which, on its own motion or on an oral application made by oron behalf of the partyaggrieved, immediately after the passing of thejudgment, the High Court certifies to be afit one for appeal to the SupremeCourt; or

(b) Any order passed by the Appellate Tribunal relating, among other things,to thedetermination of any question having a relation to the rate of duty ofexcise or to thevalue of goods for purposes of assessment.

90. Hearing before Supreme Court.

§90.Hearing before Supreme Court.35M.HEARING BEFORE SUPREME COURT.

(1) The provisions of the Code of Civil Procedure, 1908 (5 of 1908), relatingto appealsto the Supreme Court shall, so far as may be, apply in the case ofappeals under section35L as they apply in the case of appeals from decrees ofa High Court :

Provided that nothing in this sub-section shall be deemed to affect theprovisions ofsub-section (1) of section 35K or section 35N.

(2) The costs of the appeal shall be in the discretion of the Supreme Court.

(3) Where the judgment of the High Court is varied or reversed in the appeal,effect shallbe given to the order of the Supreme Court in the manner providedin section 35K in thecase of a judgment of the High Court.

91. Sums due to be paid notwithstanding reference,etc.


§91.Sums due to be paid notwithstanding reference, etc.35N.SUMS DUE TO BE PAID NOTWITHSTANDING REFERENCE, ETC.

Notwithstanding that a reference has been made to the High Court or theSupreme Court oran appeal has been preferred to the Supreme Court, sums due tothe Government as a resultof an order passed under sub-section (1) of section35C shall be payable in accordancewith the order so passed.

92. Exclusion of time taken for copy.

§92.Exclusion of time taken for copy.35-O.EXCLUSION OF TIME TAKEN FOR COPY.

In computing the period of limitation prescribed for an appeal or applicationunder thisChapter, the day on which the order complained of was served, and ifthe party preferringthe appeal or making the application was not furnishedwith a copy of the order when thenotice of the order was served upon him, thetime requisite for obtaining a copy of suchorder shall be excluded.

93. Transfer of certain pending proceedings andtransitional provisions.

§93.Transfer of certain pending proceedings and transitional provisions.35P.TRANSFER OF CERTAIN PENDING PROCEEDINGS AND TRANSITIONAL PROVISIONS.

(1) Every appeal which is pending immediately before the appointed day beforethe Boardunder section 35, as it stood immediately before that day, and anymatter arising out ofor connected with such appeal and which is so pendingshall stand transferred on that dayto the Appellate Tribunal and the AppellateTribunal may proceed with such appeal ormatter from the stage at which it wason that day :

Provided that the appellant may demand that before proceeding further withthat appeal ormatter, he may be re-heard.

(2) Every proceeding which is pending immediately before the appointed daybefore theCentral Government under section 36, as it stood immediately beforethat day, and anymatter arising out of or connected with such proceeding andwhich is so pending shallstand transferred on that day to the AppellateTribunal and the Appellate Tribunal mayproceed with such proceeding or matterfrom the stage at which it was on that day as ifsuch proceeding or matter werean appeal filed before it :


Provided that if any such proceeding or matter relates to an order where -

(a) In any disputed case, other than a case where the determination of anyquestion havinga relation to the rate of duty of excise or to the value ofgoods for purposes ofassessment is in issue or is one of the points in issue,the difference in duty involvedor the duty involved; or

(b) The amount of fine or penalty determined by such order, does not exceedten thousandrupees, such proceeding or matter shall continue to be dealt withby the CentralGovernment as if the said section 36 had not been substituted :

Provided further that the applicant or the other party may make a demand tothe AppellateTribunal that before proceeding further with that proceeding ormatter, he may bere-heard.

(3) Every proceeding which is pending immediately before the appointed daybefore theBoard or the [ 100 Commissioner of Central Excise 100 ] undersection 35A, as it stoodimmediately before that day, and any matter arisingout of or connected with suchproceeding and which is so pending shall continueto be dealt with by the Board or the Commissioner of Central Excise as thecase may be, as if the saidsection had not been substituted.

(4) Any person who immediately before the appointed day was authorised toappear in anyappeal or proceeding transferred under sub-section (1) or sub-section (2) shall,notwithstanding anything contained in section 35Q, have theright to appear before theAppellate Tribunal in relation to such appeal orproceeding.

94. Appearance by authorised representative.

§94.Appearance by authorised representative.35Q.APPEARANCE BY AUTHORISED REPRESENTATIVE.

(1) Any person who is entitled or required to appear before a Central ExciseOfficer orthe Appellate Tribunal in connection with any proceedings under thisAct, otherwise thanwhen required under this Act to appear personally forexamination on oath or affirmation,may, subject to the other provisions ofthis section, appear by an authorisedrepresentative.

(2) For the purposes of this section, "authorised representative" means apersonauthorised by the person referred to in sub-section (1) to appear on hisbehalf, being -

(a) His relative or regular employee; or


(b) Any legal practitioner who is entitled to practice in any civil court inIndia; or

(c) Any person who has acquired such qualifications as the Central Governmentmayprescribe for this purpose.

(3) Notwithstanding anything contained in this section, no person who was amember of theIndian Customs and Central Excise Service - Group A and hasretired or resigned from suchService after having served for not less thanthree years in any capacity in that Service,shall be entitled to appear as anauthorised representative in any proceedings before aCentral Excise Officerfor a period of two years from the date of his retirement orresignation, asthe case may be.

(4) No person, -

(a) Who has been dismissed or removed from Government service; or

(b) Who is convicted of an offence connected with any proceeding under thisAct, theCustoms Act, 1962 (52 of 1962) or the 114 Gold (Control) Act, 1968 (45of 1968); or

(c) Who has become an insolvent, shall be qualified to represent any personundersub-section (1), for all times in the case of a person referred to inclause (a), and forsuch time as the Commissioner of Central Excise or thecompetent authorityunder the Customs Act, 1962 or the Gold (Control) Act,1968, 114 asthe case may be, may, by order, determine in the case of a personreferred to in clause(b), and for the period during which the insolvencycontinues in the case of a personreferred to in clause (c).

(5) If any person, -

(a) Who is a legal practitioner, is found guilty of mis-conduct in hisprofessionalcapacity by any authority entitled to institute proceedingsagainst him, an order passedby that authority shall have effect in relation tohis right to appear before a CentralExcise Officer or the Appellate Tribunalas it has in relation to his right topractice as a legal practitioner;

(b) Who is not a legal practitioner, is found guilty of mis-conduct inconnection with anyproceedings under this Act by the prescribed authority, theprescribed authority maydirect that he shall thenceforth be disqualified torepresent any person under sub-section(1).

(6) Any order or direction under clause (b) of sub-section (4) or clause (b)ofsub-section (5) shall be subject to the following conditions, namely :-


(a) No such order or direction shall be made in respect of any person unlesshe has beengiven a reasonable opportunity of being heard;

(b) Any person against whom any such order or direction is made may, withinone month ofthe making of the order or direction, appeal to the Board to havethe order or directioncancelled; and

(c) No such order or direction shall take effect until the expiration of onemonth fromthe making thereof, or, where an appeal has been preferred, untilthe disposal of theappeal.

95. Definitions.

§95.Definitions.36.DEFINITIONS.

In this Chapter -

(a) "Appointed day" means the date of coming into force of the amendmentstothis Act specified in Part II of the Fifth Schedule to the Finance (No. 2)Act, 1980;

(b) "High Court" means, -

(i) In relation to any State, the High Court for that State;

(ii) In relation to a Union Territory to which the jurisdiction of the HighCourt of aState has been extended by law, that High Court;

(iii) In relation to the Union Territories of Dadra and Nagar Haveli and Damanand Diu, the High Court at Bombay;

(iv) In relation to any other Union Territory, the highest court of civilappeal for thatterritory other than the Supreme Court of India;

(c) "President" means the President of the Appellate Tribunal.

96. Presumption as to documents in certain cases.

§96.Presumption as to documents in certain cases.36A.PRESUMPTION AS TO DOCUMENTS IN CERTAIN CASES.

Where any document is produced by any person or has been seized from thecustody orcontrol of any person, in either case, under this Act or under any


other law and suchdocument is tendered by the prosecution in evidence againsthim or against him and anyother person who is tried jointly with him, theCourt shall, -

(a) Unless the contrary is proved by such person, presume -

(i) The truth of the contents of such document;

(ii) That the signature and every other part of such document which purportsto be in thehandwriting of any particular person or which the Court mayreasonably assume to have beensigned by, or to be in the handwriting of, anyparticular person, is in that person"shandwriting, and in the case of adocument executed or attested, that it was executed orattested by the personby whom it purports to have been so executed or attested;

(b) Admit the document in evidence, notwithstanding that it is not dulystamped, if suchdocument is otherwise admissible in evidence.

97. Admissibility of micro films, facsimile copiesof documents and compute.

§97.Admissibility of micro films, facsimile copies of documents and compute.36B.ADMISSIBILITY OF MICRO FILMS, FACSIMILE COPIES OF DOCUMENTS AND COMPUTERPRINT OUTS ASDOCUMENTS AND ASEVIDENCE.

(1) Notwithstanding anything contained in any other law for the time being inforce, -

(a) A micro film of a document or the reproduction of the image or imagesembodied in suchmicro film (whether enlarged or not); or

(b) A facsimile copy of a document; or

(c) A statement contained in a document and included in a printed materialproduced by acomputer (hereinafter referred to as a "computer print out"), ifthe conditionsmentioned in sub-section (2) and the other provisions containedin this section aresatisfied in relation to the statement and the computer inquestion,

Shall be deemed to be also a document for the purposes of this Act and therules made there under and shall be admissible in any proceedings there under,without further proof orproduction of the original, as evidence of anycontents of the original or of any factstated therein of which direct evidencewould be admissible.


(2) The conditions referred to in sub-section (1) in respect of a computerprint out shallbe the following, namely :-

(a) The computer print out containing the statement was produced by thecomputer duringthe period over which the computer was used regularly to storeor process information forthe purposes of any activities regularly carried onover that period by the person havinglawful control over the use of thecomputer;

(b) During the said period, there was regularly supplied to the computer inthe ordinarycourse of the said activities, information of the kind containedin the statement or ofthe kind from which the information so contained isderived;

(c) Throughout the material part of the said period, the computer vasoperating properlyor, if not, then any respect in which it was not operatingproperly or was out ofoperation during that part of that period was not suchas to affect the production of thedocument or the accuracy of the contents;and

(d) The information contained in the statement reproduced or is derived frominformationsupplied to the computer in the ordinary course of the saidactivities.

(3) Where over any period, the function of storing or processing informationfor thepurposes of any activities regularly carried on over that period asmentioned in clause(a) of sub-section (2) was regularly performed bycomputers, whether -

(a) By a combination of computers operating over that period; or

(b) By different computers operating in succession over that period; or

(c) By different combinations of computers operating in succession over thatperiod; or

(d) In any other manner involving the successive operation over that period,in whateverorder, of one or more computers and one or more combinations ofcomputers, the computersused for that purpose during that period shall betreated for the of this section asconstituting a single computer; andreferences in this to a computer shall be construedaccordingly.

(4) In any proceedings under this Act and the rules made there under where itis desired togive a statement in evidence by virtue of this section, acertificate doing anyof the following things, that is to say, -


(a) Identifying the document containing the statement and describing themanner in whichit was produced;

(b) Giving such particulars of any device involved in the production of thatdocument asmay be appropriate for the purpose of showing that the document wasproduced by acomputer;

(c) Dealing with any of the matters to which the conditions mentioned in sub-section (2)relate, and purporting to be signed by a person occupying aresponsible officialposition in relation to the operation of the relevantdevice or the management of therelevant activities (whichever is appropriate)shall be evidence ofany matter stated in the certificate; and for the purposesof this sub-section it shall besufficient for a matter to be stated to thebest of the knowledge and belief of theperson stating it.


(a) Information shall be taken to be supplied to a computer if it is suppliedthereto inany appropriate form and whether it is so supplied directly or (withor without humanintervention) by means of any appropriate equipment;

(b) Whether in the course of activities carried on by any official,information issupplied with a view to its being stored or processed for thepurposes of those activitiesby a computer operated otherwise than in thecourse of those activities, that information,if duly supplied to thatcomputer, shall be taken to be supplied to it in the course ofthoseactivities;

(c) A document shall be taken to have been produced by a computer whether itwas producedby it directly or (with or without human intervention) by means ofany appropriateequipment.


(a) "Computer" means any device that receives, stores and processesdata,applying stipulated processes to the information and supplying results ofthese processes;and

(b) Any reference to information being derived from other information shall bea referenceto its being derived there from by calculation, comparison or anyotherprocess.

98. Power of Central Government to make rules.

§98.Power of Central Government to make rules.


37.POWER OF CENTRAL GOVERNMENT TO MAKE RULES.

(1) The Central Government may make rules to carry into effect the purposes ofthis Act.

(2) In particular, and without prejudice to the generality of the foregoingpower, suchrules may -

(i) Provide for determining under section 4 the nearestascertainableequivalent of the normal price;

(ia) Having regard to the normal practice of the wholesale trade, define orspecify thekinds of trade discount to be excluded from the value under section4 including thecircumstances in which and the conditions subject to which suchdiscount is to be soexcluded;

(ib) Provide for the assessment and collection of duties of excise,theauthorities by whom functions under this Act are to be discharged, theissue of noticesrequiring payment, the manner in which the duties shall bepayable, and the recovery ofduty not paid;

(ic) Provide for the remission of duty of excise leviable on any excisablegoods,which due to any natural cause are found to be deficient in quantity,the limit orlimits of percentage beyond which no such remission shall beallowed and the differentlimit or limits of percentage for different varietiesof the same excisable goods or fordifferent areas or for different seasons;

(ii) Prohibit absolutely, or with such exceptions, or subject to suchconditions as theCentral Government thinks fit, the production or manufacture,or any process of theproduction or manufacture, of excisable goods, or of anycomponent parts or ingredients orcontainers thereof, except on land orpremises approved for the purpose;

(iii) Prohibit absolutely, or with such exceptions, or subject to suchconditions, as theCentral Government thinks fit, the transit of excisablegoods from anypart of India to any other part thereof;

(iv) Regulate the removal of excisable goods from the place where produced,stored ormanufactured or subjected to any process of production or manufactureand their transportto or from the premises of a registered person, or a bondedwarehouse, or to amarket;

(v) Regulate the production or manufacture, or any process of the productionormanufacture, the possession, storage and sale of salt, and so far as suchregulation isessential for the proper levy and collection of the dutiesimposed by this Act, or of anyother excisable goods, or of any component parts


or ingredients or containers thereof;

(vi) Provide for the employment of officers of the Government to supervisethecarrying out of any rules made under this Act;

(vii) Require a manufacturer or the licensee of a warehouse to provideaccommodationwithin the precincts of his factory or warehouse for officersemployed to supervise thecarrying out of regulations made under this Act andprescribe the scale of suchaccommodation;

(viii) Provide for the appointment, licensing, management and supervision ofbondedwarehouses and the procedure to be followed in entering goods into andclearing goods fromsuch warehouses;

(ix) Provide for the distinguishing of goods which have been manufacturedafterregistration, of materials which have been imported under licence, andofgoods on which duty has been paid, or which are exempt from duty under thisAct;

(x) Impose on persons engaged in the production or manufacture, storage orsale (whetheron their own account or as brokers or commission agents) of salt,and, so far as suchimposition is essential for the proper levy and collectionof the duties imposed by thisAct, of any other excisable goods, the duty offurnishing information, keeping records andmaking returns, and prescribe thenature of such information and the form of such recordsand returns, theparticulars to be contained therein, and the manner in which they shallbeverified;

(xi) Require that excisable goods shall not be sold or offered or kept forsale inIndia except in prescribed containers, bearing a banderol, stamp orlabelof such nature and affixed in such manner as may be prescribed;

(xii) provide for the issue of registration certificate and transportpermitsand the fees, if any, to be charged therefore :

Provided that the fees for the licensing of the manufacture and refining ofsalt and saltpeter shall not exceed, in the case of each such licence, thefollowing amounts,namely :-

Licence to manufacture and refine saltpetre and to separate and purify salt inthe processofsuch manufacture and refining ... ... ... 50

Licence to manufacture saltpetre ... ... 2

Licence to manufacture sulphate of soda (Kharinun) by solar heat inevaporating pans ...... 10


Licence to manufacture sulphate of soda (Kharinun) by artificial heat ... 2

Licence to manufacture other saline substances ... 2

(xiii) Provide for the detention of goods, plant, machinery or material, forthe purposeof exacting the duty, the procedure in connection with theconfiscation, otherwise thanunder section 10 or section 28, of goods inrespect of which breaches of the Act or ruleshave been committed and thedisposal of goods so detained or confiscated;

(xiv) Authorise and regulate the inspection of factories and provide for thetaking ofsamples, and for the making of tests, of any substance producedtherein, and for theinspection or search of any place or conveyance used forthe production, storage, sale ortransport of salt, and so far as suchinspection or search is essential for the properlevy and collection of theduties imposed by this Act, of any other excisable goods;

(xv) Authorise and regulate the composition of offences against, orliabilities incurredunder this Act or the rules made there under;

(xvi) Provide for the grant of a rebate of the duty paid on goods which areexported outof India or shipped for consumption on a voyage to any portoutside India including interest thereon;

(xvia) Provide for the credit of duty paid or deemed to have been paid on thegoodsused in, or in relation to the manufacture of excisable goods;

(xvib) Provide for the giving of credit of sums of money with respect torawmaterials used in the manufacture of excisable goods;

(xvic) Provide for charging and payment of interest as the case may be, oncredit ofduty paid or deemed to have been paid on the goods used in, or inrelation to, themanufacture of excisable goods where such credit is variedsubsequently;

(xvii) Exempt any goods from the whole or any part of the duty imposed by thisAct;

(xviia) Provide incentives for increased production or manufacture of anygoodsby way of remission of, or any concession with respect to, duty payable underthisAct;

(xviii) Define an area no point in which shall be more than one hundred yardsfrom thenearest point of any place in which salt is stored or sold by or onbehalf of the CentralGovernment, or of any factory in which saltpeter ismanufactured or refined, and regulatethe possession, storage and sale of salt


within such area;

(xix) Define an area round any other place in which salt is manufactured, andregulate thepossession, storage and sale of salt within such area;

(xx) Authorise the Central Board of Excise and Customs constituted undertheCentral Boards of Revenue Act, 1963 (54 of 1963) or Commissioners ofCentralExcise appointed for the purposes of this Act to provide, by writteninstructions,for supplemental matters arising outof any rule made by theCentral Government under this section;

(xxi) Provide for the publication, subject to such conditions as may bespecifiedtherein, of names and other particulars of persons who have beenfound guilty ofcontravention of any of the provisions of this Act or of anyrule made there under;

(xxii) Provide for the charging of fees for the examination of excisablegoodsintended for export out of India and for rendering any other service by aCentralExcise Officer under this Act or the rules made there under;

(xxiii) Specify the form and manner in which application forrefund shall bemade under section 11B;

(xxiv) Provide for the manner in which money is to be credited to the Fund;

(xxv) Provide for the manner in which the Fund shall be utilised for thewelfare of theconsumers;

(xxvi) Specify the form in which the account and records relating to the Fundshall bemaintained;

(xxvii) Specify the persons who shall get themselves registered under section6 andthe manner of their registration.

(2A) The power to make rules conferred by clause (xvi) of sub-section (2)shallinclude the power to the retrospective effect to rebate of duties oninputs used in theexport goods from a date not earlier than the changes in therates of duty on such inputs.

(3) In making rules under this section, the Central Government may providethat any personcommitting a breach of any rule shall, where no other penaltyis provided by this Act, beliable penalty not exceeding two thousand rupeesand that any article in rupees respect ofwhich any such breach is committedshall be confiscated.

(4) Notwithstanding anything contained in sub-section (3), and without


prejudice tothe provisions of section 9, in making rules under this section,the Central Governmentmay provide that if any manufacturer, producer orlicensee of a warehouse -

(a) Removes any excisable goods in contravention of the provisions of any suchrule, or

(b) Does not account for all such goods manufactured, produced or stored by,him, or

(c) Engages in the manufacture, production or storage of such goods withouthaving appliedfor the registration required under section 6, or

(d) Contravenes the provisions of any such rule with intent to evade paymentof duty, then -

(i) Any land, building, plant, machinery, materials, conveyance, animal or anyother thingused in connection with the manufacture, production, storage,removal ordisposal of such goods, and

(ii) All excisable goods on such land or in such building or produced ormanufactured withsuch plant, machinery, materials or thing, belonging to suchmanufacturer, producer orlicensee shall be liable to confiscation and themanufacturer, producer or licensee shallbe liable to a penalty not exceedingthree times the value of the excisable goods inrespect of which anycontravention of the nature referred to in clause (a), (b), (c) or(d) has beencommitted or five thousand rupees, whichever is greater.

(5) Notwithstanding anything contained in sub-section (3), the CentralGovernmentmay make rules to provide for the imposition upon any person whoacquires possession of,or is in any way concerned in transporting, removing,depositing, keeping, concealing,selling or purchasing, or in any other mannerdeals with, any excisable goods which heknows or has reason to believe areliable to confiscation under this Act or the rules made there under, a penaltynot exceeding three times the value of such goods or five thousandrupees,whichever is greater.

99. Delegation of powers.

§99.Delegation of powers.37A.DELEGATION OF POWERS.

The Central Government may, by notification in the Official Gazette 145 directthatsubject to such conditions, if any, as may be specified in thenotification -


(a) Any power exercisable by the Board tinder this Act may be exercisable alsoby Chief Commissioner of Central Excise or a Commissioner of Central Exciseempowered in this behalf by the Central Government;

(b) Any power exercisable by a Commissioner of Central Excise under thisActmay be exercisable also by a Deputy Commissioner of Central Excise or anAssistant Commissioner of Central Excise empowered in this behalf by theCentralGovernment;

(c) Any power exercisable by a Deputy Commissioner of Central Excise underthisAct may be exercisable also by an Assistant Commissioner of Central Exciseempowered in this behalf by the Central Government; and

(d) Any power exercisable by an Assistant Commissioner of Central Exciseunderthis Act may be exercisable also by a gazetted officer of Central Exciseempowered in thisbehalf by the Board.

100. Instructions to Central Excise officers.

§100.Instructions to Central Excise officers.37B.INSTRUCTIONS TO CENTRAL EXCISE OFFICERS.

The Central Board of Excise and Customs constituted under the Central Boardsof RevenueAct, 1963 (54 of 1963), may, if it considers it necessary orexpedient so to do for thepurpose of uniformity in the classification ofexcisable goods or with respect to levy ofduties of excise on such goods,issue such orders, instructions and directions to the Central Excise Officersas it may deem fit, and such officers and all otherpersons employed in theexecution of this Act shall observe and follow such orders,instructions anddirections of the said Board :

Provided that no such orders, instructions or directions shall be issued -

(a) So as to require any Central Excise Officer to make a particularassessment or todispose of a particular case in a particular manner; or

(b) So as to interfere with the discretion of the Commissioner of CentralExcise(Appeals) in the exercise of his appellate functions.

101. Service of decisions, orders, summons, etc.

§101.Service of decisions, orders, summons, etc.37C.SERVICE OF DECISIONS, ORDERS, SUMMONS, ETC.


(1) Any decision or order passed or any summons or notices issued under thisAct or therules made there under, shall be served, -

(a) By tendering the decision, order, summons or notice, or sending it byregistered postwith acknowledgement due, to the person for whom it is intendedor his authorised agent,if any;

(b) If the decision, order, summons or notice cannot be served in the mannerprovided inclause (a), by affixing a copy thereof to some conspicuous part ofthe factory orwarehouse or other place of business or usual place of residenceof the person for whomsuch decision, order, summons or notice, as the case maybe, is intended;

(c) If the decision, order, summons or notice cannot be served in the mannerprovided inclauses (a) and (b), by affixing a copy thereof on the notice boardof the officer orauthority who or which passed such decision or order orissued such summons or notice.

(2) Every decision or order passed or any summons or notice issued under thisAct or therules made there under, shall be deemed to have been served on thedate on which thedecision, order, summons or notice is tendered or deliveredby post or a copy thereof isaffixed in the manner provided in sub-section (1).

102. Rounding off of duty, etc.

§102.Rounding off of duty, etc.37D.ROUNDING OFF OF DUTY, ETC.

The amount of duty, interest, penalty, fine or any other sum payable, and theamount ofrefund or any other sum due, under the provisions of this Act shallbe rounded off to thenearest rupee and, for this purpose, where such amountcontains a part of a rupeeconsisting of paise then, if such part is fiftypaise or more, it shall be increased toone rupee and if such part is less thanfifty paise it shall be ignored.

103. Publication of rules and notifications andlaying of rules.

§103.Publication of rules and notifications and laying of rules.38.PUBLICATION OF RULES AND NOTIFICATIONS AND LAYING OF RULES BEFOREPARLIAMENT.


(1) All rules made and notifications issued under this Act shall be publishedin theOfficial Gazette.

(2) Every rule made under this Act, every notification issued under section3A,section 4A, sub-section (1) of section 5A and section 11C and every ordermadeunder sub-section (2) of section 5A, other than an order relating to goodsof strategic,secret, individual or personal nature, shall be laid, as soon asmay be after it is madeor issued, before each House of Parliament, while it isin session, for a total period ofthirty days which may be comprised in onesession, or in two or more successivesessions, and if, before the expiry ofthe session immediately following the session orthe successive sessionsaforesaid, both Houses agree in making any modification in therule ornotification or order, or both Houses agree that the rule should not be madeornotification or order should not be issued or made, the rule or notificationor ordershall thereafter have effect only in such modified form or be of noeffect, as the casemay be; so, however, that any such modification orannulment shall be without prejudice tothe validity of anything previouslydone under that rule or notification or order.

104. Repeal of enactments.

§104.Repeal of enactments.

105. Protection of Action taken under the Act.

§105.Protection of Action taken under the Act.40.PROTECTION OF ACTION TAKEN UNDER THE ACT.

(1) No suit, prosecution or other legal proceeding shall lie against theCentralGovernment or any officer of the Central Government or a StateGovernment for anythingwhich is done, or intended to be done, in good faith,in pursuance of this Act or any rulemade there under.

(2) No proceeding, other than a suit, shall be commenced against the CentralGovernment orany officer of the Central Government or a State Government foranything done or purportedto have been done in pursuance of this Act or anyrule made there under, without giving theCentral Government or such officer amonth"s previous notice in writing of the intendedproceeding and of the causethereof or after the expiration of three months from theaccrual of such cause.

106. SCHEDULE I


§106.SCHEDULE ITHE FIRST SCHEDULE - [Omitted]

107. SCHEDULE II

§107.SCHEDULE IITHE SECOND SCHEDULE

[See section 8]

TOBACCO

108. SCHEDULE III

§108.SCHEDULE IIITHE THIRD SCHEDULE - [Repealed]

§99.Delegation of powers.

§100.Instructions to Central Excise officers.

§101.Service of decisions, orders, summons, etc.

§103.Publication of rules and notifications and laying of rules.

§104.Repeal of enactments.

§105.Protection of Action taken under the Act.

§106.SCHEDULE I

The Central Excise Act,1944

Documents

Transcript of The Central Excise Act,1944