Central Excise Act 1944 Complete Act - Citation 133225 - Bare Act

Act Info:

CENTRAL EXCISE ACT, 1944

CENTRAL EXCISE ACT, 1944

1 of 1944

24th February, 1944

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 central duties of excise' on goods manufactured or produced in certain parts of India. It is hereby enacted as follows:-

CHAPTER 01: PRELIMINARY

SECTION 01: SHORT TITLE, EXTENT AND COMMENCEMENT

2(1) This Act may be called the Central Excise Act, 1944- ].

(2)It extends 3 to the whole of India 4 [***].

(3) It shall come into force on such date 5 as the Central Government may, by notification in the Official Gazette, appoint in this behalf.

SECTION 02: DEFINITIONS

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

6 [(a) "Adjudicating authority" means any authority competent to pass any order or decision under this Act, but does not include the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963 (54 of 1963), 7 [Commissioner of Central Excise (Appeals)] or Appellate Tribunal;

(aa) "Appellate Tribunal" means the Customs, Excise and 1 [Service Tax] Appellate Tribunal constituted under section 129 of the Customs Act, 1962 (52 of 1962)];

8 (aaa) "broker" or "commission agent" means a person who in the ordinary course of business makes contracts for the sale or purchase of excisable goods for others;

9 [(b) "Central Excise Officer" means the Chief Commissioner of Central Excise, Commissioner of Central Excise, Commissioner of Central Excise (Appeals), Additional Commissioner of Central Excise, 11 [Joint Commissioner of Central Excise] - 12 Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise] or any other officer of the Central Excise Department, or any person (including an officer of the State Government) invested by the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963 (54 of 1963) with any of the powers of a Central Excise Officer under this Act.]

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

(d) "excisable goods" means goods specified in the 13 [ 14 [the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986)] as being subject to a duty of excise 15 and includes salt;

(e) "factory" means any premises, including the precincts thereof, wherein or in any part of which excisable goods other than salt are manufactured, or wherein or in any part of which any manufacturing process connected with the production of these goods is being carried on or is ordinarily carried on;

16 [(ee) "Fund" means the Consumer Welfare Fund established under section 12C- ;]

17 [(f) "manufacture" includes any process, -

(i) incidental 11 or ancillary to the completion of a manufactured product; and

(ii) which is specified in relation to any goods in the Section or Chapter notes of 18 the First Schedule] to the Central Excise Tariff Act, 1985 (5 of 1986) as amounting to 19 ["manufacture; or"] and the word "manufacturer" shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable goods, but also any person who engages in their production or manufacture on his own account;]

10"(iii) which in relation to the goods specified in the Third Schedule, involves packing or repacking of such goods in a unit container or labelling or re-labelling of containers including the declaration or alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer,".

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

(h) "sale" and "purchase", with their grammatical variations and cognate expressions, mean any transfer of the possession of goods by one person to another in the ordinary course of trade or business for cash or deferred payment or other valuable consideration;

21 (i)* * *

22 (J)* * *

23 (JJ)* * *

(k) "wholesale dealer" means a person who buys or sells excisable goods wholesale for the purpose of trade or manufacture, and includes a broker or commission agent who, in addition to making contracts for the sale or purchase of excisable goods for others, stocks such goods belonging to others as an agent for the purpose of sale.

SECTION 02A: REFERENCES OF CERTAIN EXPRESSIONS

- 24 In this Act, save as otherwise expressly provided and unless the context otherwise requires, references to the expressions "duty", "duties", "duty of excise" and "duties of excise" shall be construed to include a reference to "Central Value Added Tax (CENVAT)]

CHAPTER 02: LEVY AND COLLECTION OF DUTY

SECTION 03: DUTIES SPECIFIED IN FIRST SCHEDULE AND THE SECOND SCHEDULE TO THE CENTRAL EXCISE TARIFF ACT, 1985 TO BE LEVIE

26(1) 27 [There shall be levied and collected in such manner as may be prescribed, -

(a) 28 [a duty of excise to be called the Central Value Added Tax (CENVAT)] on all "excisable goods" 35 ["(excluding goods produced or manufactured in special economic zones)"] which are produced or manufactured in India as, and at the rates, set forth in the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986);]

(b) a special duty of excise, in addition to the duty of excise specified in clause (a) above, on excisable goods 35 ["(excluding goods produced or manufactured in special economic zones)"] specified in the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) which are produced or manufactured in India, as, and at the rates, set forth in the said Second Schedule.]

29 [Provided that the duties of excise which shall be levied and collected on any 30 [excisable goods which are produced or manufactured, -

(i) in a 31 [free trade zone 36 [* * * * ]] and brought to any other place in India; or

(ii) by a hundred per cent export -oriented undertaking and 32 [brought to any other place in India], shall be an amount equal to] the aggregate of the duties of customs which would be leviable 33 [under the Customs Act, 1962 (52 of 1962) or any other law for the time being in force], on like goods produced or manufactured outside India if imported into India, and where the said duties of customs are chargeable by reference to their value; the value of such excisable goods shall, notwitnstanding anything contained in any other provision of this Act, be determined in accordance with the provisions of the Customs Act, 1962 (52 of 1962) and the Customs Tariff Act, 1975 (51 of 1975).

34 [Explanation 1. - Where in respect of any such like goods, any duty of customs leviable for the time being in force is leviable at different rates, then, such duty shall, for the purposes of this proviso, be deemed to be leviable at the highest of those rates.]

37 [Explanation 2. - In this proviso,- 44

(i) "free trade zone" means a zone which the Central Government may, by notification in the Official Gazette, specify in this behalf.

(ii) "hundred per cent export -oriented undertaking" means an undertaking which has been approved as a hundred per cent export -oriented undertaking by the Board appointed in this behalf by the Central Government in exercise of the powers conferred by section 14 of the Industries (Development and Regulation) Act, 1951 (65 of 1951), and the rules made under that Act.];

38 [(iii) "special economic zone" means a zone which the Central Government may, by notification in the Official Gazette, specify in this behalf.].

39 [(1A) The provisions of sub-section (1) shall apply in respect of all excisable goods other than salt which are produced or manufactured in India by, or on behalf of. Government, as they apply in respect of goods which are not produced or manufactured by Government.]

(2) The Central Government may, by notification in the Official Gazette, fix, for the purpose of levying the said duties, tariff values of any articles enumerated, either specifically or under general headings, in the 40 41 First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986)] as chargeable with duty ad valorem and may alter any tariff values for the time being in force.

42 (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 or manufacturers; or

(ii) sold to different classes of buyers: Provided that in fixing different tariff values in respect of excisable goods falling under sub -clause (i) or sub -clause (ii), regard shall be had to the sale prices charged by the different classes of producers or manufacturers or, as the case may be, the normal practice of the wholesale trade in such goods.]

SECTION 03A: OMITTED BY FINANCE ACT, 2001

43 * * *

SECTION 04: VALUATION OF EXCISABLE GOODS FOR PURPOSES OF CHARGING OF DUTY OF EXCISE

45(1) Where under this Act, the duty of excise is chargeable on any excisable goods with reference to their value, then, on each removal of the goods, such value shall -

(a) in a case where the goods are sold by the assessee, for delivery at the time and place of the removal, the assessee and the buyer of the goods are not related and the price is the sole consideration for the sale, be the transaction value;

(b) in any other case, including the case where the goods are not sold, be the value determined in such manner as may be prescribed.

52 '[Explanation."For the removal of doubts, it is hereby declared that the price-cum-duty of the excisable goods sold by the assessee shall be the price actually paid to him for the goods sold and the money value of the additional consideration, if any, flowing directly or indirectly from the buyer to the assessee in connection with the sale of such goods, and such price-cum-duty, excluding sales tax and other taxes, if any, actually paid, shall be deemed to include the duty payable on such goods.';]

(2) The provisions of this section shall not apply in respect of any excisable goods for which a tariff value has been fixed under sub-section (2) of section 3- .

(3) For the purpose of this section, -

(a) "assessee" means the person who is liable to pay the duty of excise under this Act and includes his agent;

(b) persons shall be deemed to be "related" if -

(i) they are inter-connected undertakings;

(ii) they are relatives;

(iii) amongst them the buyer is a relative and a distributor of the assessee, or a sub -distributor of such distributor; or

(iv) they are so associated that they have interest, directly or indirectly, in the business of each other.

Explanation. - In this clause - (i) "inter-connected undertakings" shall have the meaning assigned to it in clause (g) of section 2 of the Monopolies and Restrictive Trade Practices Act, 1969 (64 of 1969); and (ii) "relative" shall have the meaning assigned to it in clause (41) of section 2 of the Companies Act, 1956 (1 of 1956);

(i) a factory or any other place or premises of production or manufacture of the excisable goods;

(ii) a warehouse or any other place or premises wherein the excisable goods have been permitted to be deposited without 51 [payment of duty;]

50'(iii) a depot, premises of a consignment agent or any other place or premises from where the excisable goods are to be sold after their clearance from the factory,';

50[(cc) "time of removal", in respect of the excisable goods removed from the place of removal referred to in sub -clause (iii) of clause (c), shall be deemed to be the time at time at which such goods are cleared from the factory;'.]

(d) "transaction value" means the price actually paid or payable for the goods, when sold, and includes in addition to the amount charged as price, any amount that the buyer is liable to pay to, or on behalf of, the assessee, by reason of, or in connection with the sale, whether payable at the time of the sale or at any other time, including, but not limited to, any amount charged for, or to make provision for, advertising or publicity, marketing and selling organization expenses, storage, outward handling, servicing, warranty, commission or any other matter; but does not include the amount of duty of excise, sales tax and other taxes, if any, actually paid or actually payable on such goods.]

SECTION 04A: VALUATION OF EXCISABLE GOODS WITH REFERENCE TO RETAIL SALE PRICE

55'(4) Where any goods specified under sub-section (1) are excisable goods and the manufacturer"

(a) removes such goods from the place of manufacture, without declaring the retail sale price of such goods on the packages or declares a retail sale price which is not the retail sale price as required to be declared under the provisions of the Act, rules or other law as referred to in subsection (1); or

(b) tampers with, obliterates or alters the retail sale price declared on the package of such goods after their removal from the place of manufacture, then, such goods shall be liable to confiscation and the retail sale price of such goods shall be ascertained in the prescribed manner and such price shall be deemed to be the retail sale price for the purposes of this section.

Explanation 1"For the purposes of this section, "retail sale price" means the maximum price at which the excisable goods in packaged form may be sold to the ultimate consumer and includes all taxes, local or otherwise, freight, transport charges, commission payable to dealers, and all charges towards advertisement, delivery, packing, forwarding and the like and the price is the sole consideration for such sale:

Provided that in case the provisions of the Act, rules or other law as referred to in sub-section (1) require to declare on the package, the retail sale price excluding any taxes, local or otherwise, the retail sale price shall be construed accordingly.

Explanation 2."For the purposes of this section,"

(a) where on the package of any excisable goods more than one retail sale price is declared, the maximum of such retail sale prices shall be deemed to be the retail sale price;

(b) where the retail sale price, declared on the package of any excisable goods at the time of its clearance from the place of manufacture, is altered to increase the retail sale price, such altered retail sale price shall be deemed to be the retail sale price;

(c) where different retail sale prices are declared on different packages for the sale of any excisable goods in packaged form in different areas, each such retail sale price shall be the retail sale price for the purposes of valuation of the excisable goods intended to be sold in the area to which the retail sale price relates.'.

SECTION 05: REMISSION OF DUTY ON GOODS FOUND DEFICIENT IN QUANTITY

58(1) The Central Government may, by rules made under this section, provide for remission of duty of excise leviable on any excisable goods which due to any natural cause are found to be deficient in quantity.

(2) Any rules made under sub-section (1) may, having regard to the nature of the excisable goods or of processing or of curing thereof, the period of their storage or transit and other relevant considerations, fix the limit or limits of percentage beyond which no such remission shall be allowed : Provided that different limit or limits of percentage may be fixed for different varieties of the same excisable goods or for different areas or for different seasons.]

SECTION 05A: POWER TO GRANT EXEMPTION FROM DUTY OF EXCISE

59(1) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification in the Official Gazette exempt generally either absolutely or subject to such conditions (to be fulfilled before or after removal) as may be specified in the notification, excisable goods of any specified description from the whole or any part of the duty of excise leviable-thereon :

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

(i) in a 60 [free trade zone or a 61 [* * * *] and brought to any other place in India; or

(ii) by a hundred per cent export -oriented undertaking and 63 [brought to any place in India].

Explanation. - In this proviso, 64 [free trade zone", M6 [* * * *] and "hundred per cent export-oriented undertaking" shall have the same meanings as in Explanation 2 to sub-section (1) of section 3.

62 '(2) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by special order in each case, exempt from payment of duty of excise, under circumstances of an exceptional nature to be stated in such order, any excisable goods on which duty of excise is leviable.

69(2A) The Central Government may, if it considers it necessary or expedient so to do for the purpose of clarifying the scope or applicability of any notification issued under sub-section (1) or order issued under sub -section (2). insert an explanation in such notification or order, as the case may be, by notification in the Official Gazette at any time within one year of issue of the notification under sub -section (1) or order under sub-section (2), and every such explanation shall have effect as if it had always been the part of the first such notification or order, as the case may be.

(3) An exemption under sub -section (1) or sub-section (2) in respect of any excisable goods from any part of the duty of excise leviable thereon (the duty of excise leviable thereon being hereinafter referred to as the statutory duty) may be granted by providing for the levy of a duty on such goods at a rate expressed in a form or method different from the form or method in which the statutory duty is leviable and any exemption granted in relation to any excisable goods in the manner provided in this sub-section shall have effect subject to the condition that the duty of excise chargeable on such goods shall in no case exceed the statutory duty.

Explanation. - "Form or method", in relation to a rate of duty of excise means the basis, namely, valuation, weight, number, length, area, volume or other measure with reference to which the duty is leviable :

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

66 [(5) Every notification issued under sub-section (1) 70 "[or sub-section (2A)"] shall, - (a) unless otherwise provided, come into force on the date of its issue by the Central Government for publication in the Official Gazette; (b) also be published and offered for sale on the date of its issue by the Directorate of Publicity and Public Relations, Customs and Central Excise, New Delhi, under the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963 (54 of 1963).

(6) Notwithstanding anything contained in sub-section (5), where a notification comes into force on a date later than the date of its issue, the same shall be published and offered for sale by the said Directorate of Publicity and Public Relations on a date on or before the date on which the said notification comes into force.]

SECTION 06: REGISTRATION OF CERTAIN PERSONS

67 Any prescribed person who is engaged in -

(a) the production or manufacture or any process of production or manufacture of any specified goods included in the 68 [the First Schedule and the Second Schedule to the Central Excise Tariff Act , 1985 (5 of 1986), or

(b) the wholesale purchase or sale (whether on his own account or as a broker or commission agent) or the storage of any specified goods included in 71 [the First Schedule 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 be prescribed.]

SECTION 07: OMITTED BY S. 113 OF THE FINANCE ACT, 1992

72 * * * *

SECTION 08: RESTRICTION ON POSSESSION OF EXCISABLE GOODS

- From such date as may be specified in this behalf by the Central Government by notification in the Official Gazette, no person shall, except as provided by rules made under this Act, have in his possession 73 [any goods specified in the Second Schedule - ] 74 in excess of such quantity as may be prescribed for the purposes of this section as the maximum amount of such goods or of any variety of such goods which may be possessed at any one time by such a person.

SECTION 09: OFFENCES AND PENALTIES

- 75 [1] Whoever commits any of the following offences, namely : -

76 '[(a) contravenes any of the provisions of section 8 or of a rule made under clause (iii) or clause (xxvii) of sub -section (2) of section 37 - ;]

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

77 [(bb) removes any excisable goods in contravention of any of the provisions of this Act or any rules made thereunder or in any way concerns himself with such removal;

(bbb) acquires possession of, or in any way concerns himself in transporting, depositing, keeping, concealing, selling or purchasing, or in any other manner deals with any excisable goods which he knows or has reason to believe are liable to confiscation under this Act or any rule made thereunder;]

78 (bbbb) contravenes any of the provisions of this Act or the rules made thereunder in relation to credit of any duty allowed to be utilised towards payment of excise duty on final products;]

(c) fails to supply any information which he is required by rules made under this Act to supply, or (unless with a reasonable belief, the burden of proving which shall be upon him, that the information supplied by him is true) supplies false information;

(d) attempts to commit, or abets the commission of, any of the offences mentioned in clauses (a) and (b) of this section; 79 [shall be punishable, -

(i) in the case of an offence relating to any excisable goods, the duty leviable thereon under this Act exceeds one lakh of rupees, with imprisonment for a term which may extend to seven years and with fine: Provided that in the absence of special and adequate reasons to the contrary to be recorded in the judgment of the Court such imprisonment shall not be for a term of less than six months;

(ii) in any other case, with imprisonment for a term which may extend to three years or with fine or with both.]

80 [(2) If any person convicted of an offence under this section is again convicted of an offence under this section, then, he shall be punishable for the second and for every subsequent offence with imprisonment for a term which may extend to seven years and with fine : Provided that in the absence of special and adequate reasons to the contrary to be recorded in the judgment of the Court such imprisonment shall not be for a term of less than six months.

(3) For the purposes of sub-sections (1) and (2), the following shall not be considered as special and adequate reasons for awarding a sentence of imprisonment for a term of less than six months, namely :- (i) the fact that the accused has been convicted for the first time for an offence under this Act; (ii) the fact that in any proceeding under this Act, other than a prosecution, the accused has been ordered to pay a penalty or the goods in relation to such proceedings have been ordered to be confiscated or any other action has been taken against him for the same act which constitutes the offence; (iii) the fact that the accused was not the principal offender and was acting merely as a carrier of goods or otherwise was a secondary party in the commission of the offence; (iv) the age of the accused.]

SECTION 09A: CERTAIN OFFENCES TO BE NON NON--COGNIZABLE

81 Notwithstanding anything contained in the Code of Criminal Procedure, 1898 (5 of 1898), offences under section 9 - shall be deemed to be non-cognizable within the meaning of that Code.

SECTION 09AA: OFFENCES BY COMPANIES

- 82 (1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly : Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation. - For the purposes of this section, - (a) "company" means any body corporate and includes a firm or other association of individuals; and (b) "director" in relation to a firm means a partner in the firm.]

SECTION 09B: POWER OF COURT TO PUBLISH NAME, PLACE OF BUSINESS, ETC OF PERSONS CONVICTED UNDER THE ACT.

(1) Where any person is convicted under this Act for contravention of any of the provisions thereof, it shall be competent for the Court convicting the person to cause the name and place of business or residence of such person, nature of the contravention, the fact that the person has been so convicted and such other particulars as the Court may consider to be appropriate in the circumstances of the case, to be published at the expense of such person, in such newspapers or in such manner as the Court may direct.

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

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

SECTION 09C: PRESUMPTION OF CULPABLE MENTAL STATE

- (1) In any prosecution for an offence under this Act which requires a culpable mental state on the part of the accused, the Court shall presume the existence of such mental state but it shall be a defence for the accused to prove the fact that he had no such mental state with respect to the act charged as an offence in that prosecution. Explanation. - In this section, "culpable mental state" includes intention, motive, knowledge of a fact, and belief in, or reason to believe, a fact.

(2) For the purposes of this section, a fact is said to be proved only when the Court believes it to exist beyond reasonable doubt and not merely when its existence is established by a preponderance of probability.

SECTION 09D: RELEVANCY OF STATEMENTS UNDER CERTAIN CIRCUMSTANCES

(1) A statement made and signed by a person before any Central Excise Officer of a gazetted rank during the course of any inquiry or proceeding under this Act shall be relevant, for the purpose of proving, in any prosecution for an offence 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 is incapable of giving evidence, or is kept out of the way by the adverse party, or whose presence cannot be obtained without an amount of delay or expense which, under the circumstances of the case, the Court considers unreasonable; or

(b) when the person who made the statement is examined as a witness in the case before the Court and the Court is of opinion that, having regard to the circumstances of the case, the statement should be admitted in evidence in the interests of justice

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

SECTION 09E: APPLICATION OF SECTION 562 OF THE CODE OF CRIMINAL PROCEDURE, 1898, AND OF THE PROBATION OF OFFENDERS ACT, 1958

-(1) Nothing contained in section 562 of the Code of Criminal Procedure, 1898 83 (5 of 1898), or in the Probation of Offenders Act, 1958 (20 of 1958), shall apply to a person convicted of an offence under this Act unless that person is under eighteen years of age.

(2) The provisions of sub-section (1) shall have effect notwithstanding anything contained in subsection (3) of section 9- .]

SECTION 10: POWER OF COURTS TO ORDER FORFEITURE

- Any Court trying an offence under this Chapter may order the forfeiture to 84 [Government] of any goods in respect of which the Court is satisfied that an offence under this Chapter has been committed, and may also order the forfeiture of any receptacles, packages or coverings in which such goods are contained and the animals, vehicles, vessels or other conveyances used in carrying the goods, and any implements or machinery used in the manufacture of the goods.

SECTION 11: RECOVERY OF SUMS DUE TO GOVERNMENT

- In respect of duty and any other sums of any kind payable to the Central Government under any of the provisions of this Act or of the rules made thereunder 85 [including the amount required to be paid to the credit of the Central Government under Section 11D], the officer empowered by the 86 [Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963 (54 of 1963)] to levy such duty or require the payment of such sums may deduct the amount so payable from any money owing to the person from whom such sums may be recoverable or due which may be in his hands or under his disposal or control, or may recover the amount by attachment and sale of excisable goods belonging to such person; and if the amount payable is not so recovered, he may prepare a certificate signed by him specifying the amount due from the person liable to pay the same and send it to the Collector of the district in which such person resides or conducts his business and the said Collector, on receipt of such certificate, shall proceed to recover from the said person the amount specified therein as if it were an arrear of land revenue.

SECTION 11A: RECOVERY OF DUTIES NOT LEVIED OR NOT PAID OR SHORT LEVIED OR SHORT SHORT--PAID OR ERRONEOUSLY REFUNDED.

87(1) When any duty of excise has not been levied or paid or has been short-levied or short-paid or 88 [erroneously refunded, whether or not such non-levy or non-payment, short- levy or short payment or erroneous refund, as the case may be, was on the basis of any approval, acceptance or assessment relating to the rate of duty on or valuation of excisable goods under any other provisions of this Act or the rules made thereunder], a Central Excise Officer may, within 89 [one year] from the relevant date, serve notice on the person chargeable with the duty which has not been levied or paid or which has been short-levied or short-paid or to whom the refund has erroneously been made, requiring him to show cause why he should not pay the amount specified in the notice : Provided that where any duty of excise has not been levied or paid or has been short-levied or short-paid or erroneously refunded by reason of fraud, collusion or any wilful misstatement or suppression of facts, or contravention of any of the provisions of this Act or of the rules made thereunder with intent to evade payment of duty, by such person or his agent, the provisions of this sub- section shall have effect, 90 [as if, 91 [***]] for the words 92 '[one year], the words "five years" were substituted 93

95 [****]

Explanation. - Where the service of the notice is stayed by an order of a court, the period of such stay shall be excluded in computing the aforesaid period of 97 [one year] or five years, as the case may be.

(2) The 98 [Central Excise Officer] shall, after considering the representation, if any, made by the person on whom notice is served under sub- section (1), determine the amount of duty of excise due from such person (not being in excess of the amount specified in the notice) and thereupon such person shall pay the amount so determined.

99 [(2A) Where any notice has been served on a person under sub-section (1), the Central Excise Officer, -

(a) in case any duty of excise has not been levied or paid or has been short-levied or short-paid or erroneously refunded, by reason of fraud, collusion or any wilful mis -statement or suppression of facts, or contravention of any of the provisions of this Act or of the rules made thereunder with intent to evade payment of duty, where it is possible to do so, shall determine the amount of such duty, within a period of one year; and

(b) in any other case, where it is possible to do so, shall determine the amount of duty of excise which has not been levied or paid or has been short-levied or short-paid or erroneously refunded, within a period of six months, from the date of service of the notice on the person under sub-section (1).

(2B) Where any duty of excise has not been levied or paid or has been short-levied or short-paid or erroneously refunded, the person, chargeable with the duty, may pay the amount of duty 94 [on the basis of his own ascertainment of such duty or on the basis of duty ascertained by a Central Excise Officer ] before service of notice on him under sub- section (1) in respect of the duty, and inform the Central Excise Officer of such payment in writing, who, on receipt of such information shall not serve any notice under sub-section (1) in respect of the duty so paid : Provided that the Central Excise Officer may determine the amount of short payment of duty, if any, which in his opinion has not been paid by such person and, then, the Central Excise Officer shall proceed to recover such amount in the manner specified in this section, and the period of "one year" referred

to in sub-section (1) shall be counted from the date of receipt of such information of payment.

Explanation 1. - Nothing contained in this sub -section shall apply in a case where the duty was not levied or was not paid or was short-levied or was short-paid or was erroneously refunded by reason of fraud, collusion or any wilful mis-statement or suppression of facts, or contravention of any of the provisions of this Act or of the rules made thereunder with intent to evade payment of duty.

Explanation 2. - For the removal of doubts, it is hereby declared that the interest under section 11AB- shall be payable on the amount paid by the person under this sub-section and also on the amount of short -payment of duty, if any, as may be determined by the Central Excise Officer, but for this sub-section.

(2C) The provisions of sub-section (2B) shall not apply to any case where the duty had become payable or ought to have been paid before the date on which the Finance Bill, 2001 receives the assent of the President.].

(3) For the purposes of this section, -

(i) "refund" includes rebate of duty of excise on excisable goods exported out of India or on excisable materials used in the manufacture of goods which are exported out of India;

(ii) "relevant date" means,- 100 [(a) in the case of excisable goods on which duty of excise has not been levied or paid or has been short-levied or short-paid -

(A) where under the rules made under this Act a periodical return, showing particulars of the duty paid on the excisable goods removed during the period to which the said return relates, is to be filed by a manufacturer or a producer or a licensee of a warehouse, as the case may be, the date on which such return is so filed;

(B) where no periodical return as aforesaid is filed, the last date on which such return is to be filed under the said rules;

(b) in a case where duty of excise is provisionally assessed under this Act or the rules made thereunder, the date of adjustment of duty after the final assessment thereof;

SECTION 11AA: INTEREST ON DELAYED PAYMENT OF DUTY

101 102 (1) 103 [Subject to the provisions contained in section 11AB- , where a person] chargeable with duty determined under sub-section (2) of section 11A- , fails to pay such duty within three months from the date of such determination, he shall pay, in addition to the duty, interest 104 [at such rate not below eighteen per cent and not exceeding 105 ["ten per cent"] per annum, as is for the time being fixed by the Central Government, by notification in the Official Gazette], on such duty from the date immediately after the expiry of the said period of three months till the date of payment of such duty :

Provided that where a person chargeable with duty determined under sub-section (2) of section 11A- before the date on which the Finance Bill, 1995 receives the assent of the President, fails to pay such duty within three months from such date, then, such person shall be liable to pay interest under this section from the date immediately after three months from such date, till the date of payment of such duty.

Explanation 1. - Where the duty determined to be payable is reduced by the Commissioner (Appeals), Appellate Tribunal or, as the case may be, the court, the date of such determination shall be the date on which an amount of duty is first determined to be payable.

Explanation 2. - Where the duty determined to be payable is increased or further increased by the Commissioner (Appeals), Appellate Tribunal or, as the case may be, the court, the date of such determination shall be, -

(a) for the amount of duty first determined to be payable, the date on which the duty is so determined;

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

106 [(2) The provisions of sub-section (1) shall not apply to cases where the duty becomes payable on and after the date on which the Finance Bill, 2001 receives the assent of the President.].

SECTION 11AB: INTEREST ON DELAYED PAYMENT OF DUTY

- 107 108[(1) Where any duty of excise has not been levied or paid or has been short-levied or short- paid or erroneously refunded, the person who is liable to pay the duty as determined under sub-section

(2), or has paid the duty under sub-section (2B), of section 11A- , shall, in addition to the duty, be liable to pay interest at such rate not below M9 ["ten per cent"]. and not exceeding thirty-six per cent. per annum, as is for the time being fixed by the Central Government, by notification in the Official Gazette, from the first date of the month succeeding the month in which the duty ought to have been paid under this Act, or from the date of such erroneous refund, as the case may be, but for the provisions contained in sub-section (2), or sub-section (2B), of section 11A- till the date of payment of such duty:

Provided that in such cases where the duty becomes payable consequent to issue of an order, instruction or direction by the Board under section 37B - , and such amount of duty payable is voluntarily paid in full, without reserving any right to appeal against such payment at any subsequent stage, within forty-five days from the date of issue of such order, instruction or direction, as the case may be, no interest shall be payable and in other cases the interest shall be payable on the whole of the amount, including the amount already paid.].

109 [(2) The provisions of sub-section (1) shall not apply to cases where the duty had become payable or ought to have been paid before the date on which the Finance Bill, 2001 receives the assent of the President.].

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

Explanation 2. - Where the duty determined to be payable is increased or further increased by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the court, the interest shall be payable on such increased or further increased amount of duty.]

SECTION 11AC: PENALTY FOR SHORT LEVY OR NON LEVY OF DUTY IN CERTAIN CASES

- 110 Where any duty of excise has not been levied or paid or has been short- levied or short-paid or erroneously refunded by reasons of fraud, collusion or any wilful mis-statement or suppression of facts, or contravention of any of the provisions of this Act or of the rules made thereunder with intent to evade payment of duty, the person who is liable to pay duty as determined under sub- section (2) of section

11A - , shall also be liable to pay a penalty equal to the duty so determined :

- 111 Provided that where such duty as determined under sub-section (2) of section 11A- , and the interest payable thereon under section 11AB- , is paid within thirty days from the date of communication of the order of the Central Excise Officer determining such duty, the amount of penalty liable to be paid by such person under this section shall be twenty-five per cent. of the duty so determined:

Provided further that the benefit of reduced penalty under the first proviso shall be available if the amount of penalty so determined has also been paid within the period of thirty days referred to in that proviso :

Provided also that where the duty determined to be payable is reduced or increased by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the court, then, for the purposes of this section, the duty as reduced or increased, as the case may be, shall be taken into account:

Provided also that in case where the duty determined to be payable is increased by the Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the court, then, the benefit of reduced penalty under the first proviso shall be available, if the amount of duty so increased, the interest payable thereon and twenty-five per cent. of the consequential increase of penalty have also been paid within thirty days of the communication of the order by which such increase in the duty takes effect.

Explanation. - For the removal of doubts, it is hereby declared that -

(1) the provisions of this section shall also apply to cases in which the order determining the duty under sub -section (2) of section 11A relates to notices issued prior to the date on which the Finance Act, 2000 receives the assent of the President;

(2) any amount paid to the credit of the Central Government prior to the date of communication of the order referred to in the first proviso or the fourth proviso shall be adjusted against the total amount due from such person.]

SECTION 11B: CLAIM FOR REFUND OF DUTY

112 (1) Any person claiming refund of any duty of excise may make an application for refund of such duty to the 113 Assistant Commissioner of Central Excise or Deputy Commissioner of Central

Excise] before the expiry of 114 [(one year] 115 [from the relevant date] 116 [ 117 [in such form and manner] as may be prescribed and the application shall be accompanied by such documentary or other evidence (including the documents referred to in section 12A- ) as the applicant may furnish to establish that the amount of duty of excise in relation to which such refund is claimed was collected from, or paid by, him and the incidence of such duty had not been passed on by him to any other person :

Provided that where an application for refund has been made before the commencement of the Central Excises and Customs Laws (Amendment) Act, 1991, such application shall be deemed to have been made under this sub -section as amended by the said Act and the same shall be dealt with in accordance with the provisions of sub -section (2) substituted by that Act:]

118 [Provided further that] the limitation of 119 [one year] shall not apply where any duty has been paid under protest.

120 [****]

121 [(2) If, on receipt of any such application, the 122 [Assistant Commissioner of Central Excise or Deputy Commissioner of Central 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 the amount so determined shall be credited to the Fund :

Provided that the amount of duty of excise as determined by the 123 Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise] under the foregoing provisions of this sub-section shall, instead of being credited to the Fund, be paid to the applicant, if such amount is relatable to -

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

(b) unspent advance deposits lying in balance in tile applicant's account current maintained with the 124 [Commissioner of Central Excise];

(c) refund of credit of duty paid on excisable goods used as inputs in accordance with the rules made, or any notification issued, under this Act;

(d) the duly of excise paid by the manufacturer, if he had not passed on the incidence of such duty to any other person;

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

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

Provided further that no notification under clause (f) of the first proviso shall be issued unless in the opinion of the Central Government the incidence of duty has not been passed on by the persons concerned to any other person.

(3) Notwithstanding anything to the contrary contained in any judgment, decree, order or direction of the Appellate Tribunal or any Court or in any other provision of this Act or the rules made thereunder or any other law for the time being in force, no refund shall be made except as provided in sub- section (2).

(4) Every notification under clause (f) of the first proviso to sub-section (2) shall be laid before each House of Parliament, if it is sitting, as soon as may be after the issue of the notification, and, if it is not sitting, within seven days of its re-assembly, and the Central Government shall seek the approval of Parliament to the notification by a resolution moved within a period of fifteen days beginning with the day on which the notification is so laid before the House of the People and if Parliament makes any modification in the notification or directs that the notification should cease to have effect, the notification shall thereafter have effect only in such modified form or be of no effect, as the case may be, but without prejudice to the validity of anything previously done thereunder.

(5) For the removal of doubts, it is hereby declared that any notification issued under clause (f) of the first proviso to sub-section (2), including any such notification approved or modified under sub-section (4), may be rescinded by the Central Government at any time by notification in the Official Gazette.]

125 [Explanation. - for the purposes of this section, -

(A) "refund" includes rebate of duty of excise on excisable goods exported out of India or on excisable materials used in the manufacture of goods which are exported out of India;

(B) "relevant date" means,-

(a) in the case of goods exported out of India where a refund of excise duty paid is available in respect of the goods themselves or, as the case may be, the excisable materials used in the manufacture of such goods, -

(i) if the goods are exported by sea or air, the date on which the ship or the aircraft in which such goods are loaded, leaves India, or

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

(iii) if the goods are exported by post, the date of despatch of goods by the Post Office concerned to a place outside India;

(b) in the case of goods returned for being remade, refined, reconditioned, or subjected to any other similar process, in any factory, the date of entry into the factory for the purposes aforesaid;

(c) in the case of goods to which banderols are required to be affixed if removed for home consumption but not so required when exported outside India, if returned to a factory after having been removed from such factory for export out of India, the date of entry into the factory;

(d) in a case where a manufacturer is required to pay a sum, for a certain period, on the basis of the rate fixed by the Central Government by notification in the Official Gazette in full discharge of his liability for the duty leviable on his production of certain goods, if after the manufacturer has made the payment on the basis of such rate for any period but before the expiry of that period such rate is reduced, the date of such reduction;

126 [(e) in the case of a person, other than the manufacturer, the date of purchase of the goods by such person;]

127 (ea) in the case of goods which are exempt from payment of duty by a special order issued under sub-section (2) of section 5A- , the date of issue of such order;]

128 (eb) in case where duty of excise is paid provisionally under this Act or the rules made thereunder, the date of adjustment of duty after the final assessment thereof;]

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

Substituted (w.e.f. 28-9-1996) by s. 71 of the Finance (No. 2) Act, 1996 (33 of 1996).

Vide Notification No. 166/87-C.E., dated 11-6-1987, the Central Excises and Salt Act, 1944 extends to the designated area in the Continental Shelf and Exclusive Economic Zone of India as declared by the Notification of the C.O.I., Ministry of External Affairs, No. S.O. 429 (E), dated 18-7-1986.

The words "except the State of Jammu and Kashmir" were omitted by s. 2 and Sch. of the Taxation Laws (Extension to Jammu and Kashmir) Act, "1954 (41 of 1954).

This Act came into force on 28th February, 1944 vide F.D. (C.R.) Notification No. III-D.C. Exc,, dated 26th February, 1944. This Act was extended to Goa, Daman and Diu by Regulation 12 of 1962, to Dadra and Nagar Haveli by Regulation 6 of 1963; to Laccadive, Minicoy and Amindivi Islands by Regulation 8 of 1965 and with effect from 1-2-1983 to the State of Sikkim vide Notification No. 9/83- C.E., dated 1-2-1983.

Inserted by 5th schedule to Finance (No. 2) Act, 1980 (44 of 1980) with effect from 11-10-1982 vide Notification G.S.R. No. 597 (E), dated 11-10-1982.

Substituted (w.e.f. 26-5-1995) by s. 70 of the Finance Act, 199.5 (22 of 1995).

Substituted by the Finance Act, 2003, for the words "Gold (Control)"

Re-lettered by 5th Schedule to Finance (No. 2) Act, 1980 (44 of 1980) with effect from 11-10-1982 vide Notification G.S.R. No. 597 (E), dated 11-10-1982.

Substituted (w.e.f. 26-5-1995) by s. 71 of the Finance Act, 1995 (22 of 1995).

11.

Inserted by s. 120 of the Finance Act, 1999 (27 of 1999).

12.

Substituted by s. 119 of the Finance Act, 1999 (27 of 1999).

13.

Substituted [with effect from 28-2-1986 vide M.F. (D.R.) Notification No. 10/86-C.E., dated 5-2- 1986] by s. 4 of the Central Excise Tariff Act, 1985 (5 of 1986).

14.

Substituted by s. 119 of the Finance Act, 1999 (27 of 1999).

15.

the expressions "duty", "duties", "duty of excise" and "duties of excise" shall, save as otherwise expressly provided in Central Excise Act, 1944 and unless the context otherwise requires, be construed to include a reference to the special duty of excise specified in the Second Schedule to the Central Excise Tariff Act, 1985.

16.

Inserted [w.e.f. 20-9-1991 vide Notification No. 30/91-C.E. (N.T.), dated 19-9-1991] by s. 2 of the Central Excise and Customs Laws (Amendment) Act, 1991 (40 of 1991).

17.

Substituted [with effect from 28-2-1986 vide M.F. (D.R.) Notification No. 10/86-C.E., dated 5-2- 1986] by s. 4 of the Central Excise Tariff Act, 1985 (5 of 1986).

18.

Substituted by s. 120 of the Finance Act, 1999 (27 of 1999).

19.

In Section 2, clause (f) in sub-clause (ii) the word "manufacture" shall be substituted by Finance Act, 2002, (20 of 2002) Published in Gazette of India, Extra, Part II, Section 1, dated May 13, 2002, No.23.

10.

Substituted by "The Finance Act, 2003"

21.

Omitted (w.e.f. 28-9-1996) by s. 72 of the Finance (No. 2) Act, 1996 (33 of 1996).

22.

Omitted (w.e.f. 28-9-1996) by s. 72 of the Finance (No. 2) Act, 1996 (33 of 1996).

23.

Clause (jj) was omitted by s. 11 and Sch. IV of the Finance Act, 1950 (25 of 1950).

24.

Inserted (w.e.f. 12-5-2000) by s. 91 of the Finance Act, 2000 (10 of 2000).

26.

The action taken under Section 3 of the Central Excise Act, 1944, have been declared to be valid by the following s. 109 of the Finance Act, 2000 (10 of 2000) : 109. Validation of action taken under section 3 of Act 1 of 1944. - Any action taken or anything done or purporting to have been taken or done under sub-section (1) of section 3 of the Central Excise Act, as amended by clause (ii) of section 88 at any time during the period commencing on and from the 11th day of May, 1982 and ending with the day, the Finance Act, 2000 receives the assent of the President shall be deemed to be and to always have been, lor all purposes, as validly and effectively taken or done as if the amendment made by clause (ii) of section 88 had been in force at all material times and, accordingly, notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, (a) all duties of excise levied, assessed or collected during the said period on any excisable goods under the Central Excise Act, shall be deemed to be and shall be deemed to always have been, as validly levied, assessed or collected as if the amendment made by clause (ii) of section 88 had been in force at all material times; (b) no suit or other proceedings shall be maintained or continued in any court, tribunal or other authority for the refund of duties of excise, and no enforcement shall be made by any court of any decree or order directing the refund of, any such duties of excise which have been collected and which would have been validly collected if the amendment made by clause (ii) of section 88 had been in force at all material times; (c) recovery shall be made of all such duties of excise which have not been collected or, as the case may be, which have been refunded but which would have been collected or, as the case may be, would not have been refunded, if the amendment made by cl--ise (ii) of section 88 had been in force at all material times. Explanation.- For the removal of doubts, it is hereby declared that no act or omission on the part of any person shall be punishable as an offence which would not have been so punishable if this section had not come into force.

27.

Substituted by s. 121 of the Finance Act, 1999 (27 of 1999).

28.

Substituted (w.e.f. 12-5-2000) by s. 92 of the Finance Act, 2000 (10 of 2000).

29.

This proviso and Explanations were inserted (w.e.f. 1.3.1982) by s. 46 of the Finance Act, 1982 (14 of 1982).

30.

Substituted by s. 45 of the Finance Act, 1984 (21 of 1984).

31.

Substituted (w.e.f. 11-5-2001)bys. 120 of the Finance Act, 2001 (14 of 2001).

32.

Substituted (w.e.f. 11-5-2001) by s. 120 of the Finance Act, 2001 (14 of 2001).

33.

Substituted (w.e.f. 11-5-1982) by s. 92 of the Finance Act, 2000 (10 of 2000).

34.

Substituted (w.e.f. 11-5-1982) by s. 92 of the Finance Act, 2000 (10 of 2000).

35.

In Section 3, sub-section (1), in clause (a)& (b) after the word ["excisable goods"] the brakets and words shall be inserted by Finance Act, 2002, (20 of 2002) Published in Gazette of India, Extra, Part II, Section 1, dated May 13, 2002, No.23.

36.

In Section 3, sub-section (1), in the proviso, clause (i) the word ["or special economic zone"] shall be omitted by Finance Act, 2002, (20 of 2002) Published in Gazette of India, Extra, Part II, Section 1, dated May 13, 2002, No.23.

37.

Substituted by s. 45 of the Finance Act, 19S4 (21 of 1984).

38.

Inserted (w.e.f. 11-5-2001) by s. 120 of the Finance Act, 2001 (14 of 2001).

39.

This sub-section was substituted (with effect from 1st October, 1963) by s. 3 of the Sea Customs and the Central Excises and Salt (Amendment) Act, 1963 (30 of 1963).

40.

Substituted [with effect from 28-2-1986 vide M.F. (D.R.) Notification No. 10/86-C.E., dated 5-2- 1986; by s. 4 of the Central Excise Tariff Act, 1985 (5 of 1986).

41.

Substituted by s. 119 of the Finance Act, 1999 (27 of 1999).

42.

This sub-section was inserted [w.e.f. 1-7-1978 vide Notification No. 227A/78-SRP-(CCX), dated 19-6-1978] by s. 19 of the Customs, Central Excises and Salt and Central Boards of Revenue

(Amendment) Act, 1978 (25 of 1978).

44.

In Section 3, sub-section (1), in the proviso, Explanation 2 for clause (i) shall be substituted by Finance Act, 2002, (20 of 2002) Published in Gazette of India, Extra, Part II, Section 1, dated May 13, 2002, No.23.

43.

Omitted (w.e.f. 11-5-2001) by s. 121 of the Finance Act, 2001.

45.

The section 4 was Substituted (w.e.f. 1-7-2000) by s. 94 of the Finance Act, 2000 (10 of 2000). The section 4 prior to its substitution read as under: [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 excisable goods with reference to value, such value, shall, subject to the other provisions of this section, be deemed to be - (a) the normal price thereof, that is to say, the price at which such goods are ordinarily sold by the assessee to a buyer in the course of wholesale trade for delivery at the time and place of removal, where the buyer is not a related person and the price is the sole consideration for the sale: Provided that - (i) where, in accordance with the normal practice of the wholesale trade in such goods, such goods are sold by the assessee at different prices to different classes of buyers (not being related persons) each such price shall, subject to the existence of the other circumstances specified in clause (a), be deemed to be the normal price of such goods in relation to each such class of buyers; [(ia) where the price at which such goods are ordinarily sold by the assessee is different for different places of removal, each such price shall, subject to the existence of other circumstances specified in clause (a), be deemed to be the normal price of such goods in relation to each such place of removal;] (ii) where such goods are sold by the assessee in the course of wholesale trade for delivery at the time and place of removal at a price fixed under any law for the time being in force or at a price, being the maximum, fixed under any such law, then, notwithstanding anything contained in clause (iii) of this proviso, the price or the maximum price, as the case may be, so fixed, shall, in relation to the goods so sold, be deemed to be the normal price thereof; (iii) where the assessee so arranges that the goods are generally not sold by him in the course of wholesale trade except to or through a related person, the normal price of the goods sold by the assessee to or through such related person shall be deemed to be the price at which they are ordinarily sold by the related person in the course of wholesale trade at the time of removal, to dealers (not being related persons) or where such goods are not sold to such dealers, to dealers (being related persons), who sell such goods in retail; (b) where the normal price of such goods is not ascertainable for the reason, that such goods are not sold or for any other reason, the nearest ascertainable equivalent thereof determined in such manner as may be prescribed. (2) Where, in relation to any excisable goods the price thereof for delivery at the place of removal is not known and the value thereof is determined with reference to the price for delivery at a place other than the place of removal, the cost of transportation from the place of removal to the place of delivery shall be excluded from such price. (3) The provisions of this section shall not apply in respect of any excisable goods for which a tariff value has been fixed under sub-section (2) of section 3. (4) For the purposes of this section, - (a) "assessee" means the person who is liable to pay the duty of excise under this Act and includes his agent; (b) "place of removal" means - (i) a factory or any other place or premises of production or manufacture of the excisable goods; [*****] (ii) a warehouse or any other place or premises wherein the excisable goods have been permitted to be deposited without payment of duty; [(iii) a depot, premises of a consignment agent or any other place or premises from where the excisable goods are to be sold after their clearance from the factory and,] from where such goods are removed; [(ba) "time of removal", in respect of goods removed from the place of remove. referred to in sub-clause (iii) of clause (b), shall be deemed to be the time at which such goods are cleared from the factory;] (i; "related person" means a person who is so associated with the assessee that they have interest, directly or indirectly, in the business of each other and includes a holding company, a subsidiary company, a relative and a distributor of the assessee, and any 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 packed condition, includes the cost of such packing except the cost of the packing which is of a durable nature and is 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 which or on which the excisable goods are wrapped, contained or wound; (ii) docs not include the amount o f the duty of excise, sales tax and other taxes, if any, payable on such goods and, subject to such rules as may be made, the trade discount (such discount not being refundable on any account whatsoever) allowed in accordance with the normal practice of the wholesale trade at the time of removal in respect of such goods sold or contracted for sale. [Explanation. - For the purposes of this sub-clause, the amount of the duty of excise 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 other Central Acts, if any, providing for the levy of duties of excise on such goods, and the effective duty of excise on such goods under each Act referred to in clause (a) or clause (b) shall be, - (i) in a case where a notification or order providing for any exemption (not being an exemption for giving credit with respect to, [or reduction of duty of excise under such Act on such goods equal to, any duty of excise under such Act, or the additional duty under section 3 of the

50.

Inserted by The Finance Act, 2003

51.

Substituted by the Finance Act, 2003, for "payment of duty,".

52.

Inserted by The Finance Act, 2003

55.

Substituted by the Finance Act, 2003

58.

This section was inserted [w.e.f. 1-7-1978 vide Notification No. 227A/6/78-SRP (CCX), dated 19- 6-1978] by s. 20 of the Customs, Central Excises and Salt and Central Boards of Revenue (Amendment) Act, 1978 (25 of 1978).

59.

Inserted (w.e.f. 1-7-1988 vide Notification No. 18/88-C.E. (N.T.), dated 29-6-1988) by s. 9 of the Customs and Central Excises Laws (Amendment) Act, 1988 (29 of 1988).

60.

Substituted (w.e.f. 11-5-2001) by s. 122 of the Finance Act, 2001 (14 of 2001).

61.

In Section 5A, sub-section (1), in the proviso, clause (i) and Explanation 2 for the words ["or a special econpmic zone"] shall be omitted by Finance Act, 2002, (20 of 2002) Published in Gazette of India, Extra, Part II, Section 1, dated May 13, 2002, No.23.

62.

Substituted by the Finance Act, 2003

63.

Substituted (w.e.f. 11-5-2001) by s. 122 of the Finance Act, 2001 (14 of 2001).

64.

Substituted (w.e.f. 11-5-2001) by s. 122 of the Finance Act 2001 (14 of 2001).

66.

Inserted (w.e.f, 1-8-1998) by s. 106 of the Finance (No. 2) Act, 1998 (21 of 1998).

67.

Substituted (w.e.f. 14-5-1992) by s. 113 of the Finance Act, 1992 (18 of 1992).

68.

Substituted by S.119 of the Finance Act, 1999 (27 of 1999).

69.

In Section 5A, after sub-section (2), sub-section (2A) shall be inserted by Finance Act, 2002, (20 of 2002) Published in Gazette of India, Extra, Part II, Section 1, dated May 13, 2002, No.23.

70.

In Section 5A, sub-section (5), after the words "sub-section (1) the words ["or sub-section (2A)"] shall be inserted by Finance Act, 2002, (20 of 2002) Published in Gazette of India, Extra, Part II, Section 1, dated May 13, 2002, No.23.

71.

Substituted by s. 119 of the Finance Act, 1999 (27 of 1999).

72.

Omitted (w.e.f. 14-5-1992) by s. 113 of the Finance Act 1992 (18 of 1992).

73.

These words were substituted by s. 33 of the Finance Act, 1956 (18 of 1956).

74.

Not modified by the Finance Bill, 1999 (22 of 1999).

75.

Section 9 was renumbered as sub-section (1) of that section by s. 18 of the Customs, Gold (Control) and Central Excises and Salt (Amendment) Act, 1973 (36 of 1973).

76.

Substituted (w.e.f. 14-5-1992) by s. 113 of the Finance Act, 1992 (18 of 1992).

77.

This clause was inserted by s. 18 of the Customs, Gold (Control) and Central Excises and Salt (Amendment) Act, 1973 (36 of 1973).

78.

Inserted (w.e.f. 1-8-1998) by s. 107 of the Finance (No. 2) Act, 1998 (21 of 1998).

79.

These words were substituted for certain words by s. 18 of the Customs, Gold (Control) and Central Excises and Salt (Amendment) Act, 1973 (36 of 1973).

80.

This sub-section was inserted by s. 18 of the Customs, Gold (Control) and Central Excises and Salt (Amendment) Act, 1973 (36 of 1973).

81.

Sections 9A to 9E, were inserted by s. 19 of the Customs, Gold (Control) and Central Excises and Salt (Amendment) Act, 1973 (36 of 1973).

82.

Inserted by s. 2 of the Central Excises and Salt (Amendment) Act, 1985 (79 of 1985).

83.

See now the relevant provisions of the Code of Criminal Procedure, 1973 (2 of 1974).

84.

This word was substituted by the A.O., 1950.

85.

Substituted (w.e.f. 12-5-2000) by s. 95 of the Finance Act, 2000 (10 of 2000).

86.

These words were substituted (with effect from 1st January, 1964) by s. 5 of the Central Boards of Revenue Act, 1963 (54 of 1963).

87.

This section was inserted [w.c.f. 17-11-1980 vide Notification No. 182/80-C.E., dated 15-11-1980] by section 21 of the Customs, Central Excises and Salt and Central Boards of Revenue (Amendment) Act, 1978 (25 of 1978) and the action taken under this section have been declared valid by the following section 110 of the Finance Act, 2000 (10 of 2000). 110. Validation of action taken under section 11A of Act 1 of 1944. - (1) Any notice issued or served on any person under the provisions of section 11A of the Central Excise Act during the period commencing on and from the 17th day of November, 1980 and ending on the date on which the Finance Act, 2000 receives the assent of the President (hereinafter referred to as the said period) demanding duty on account of non-payment, short payment, non-levy, short-levy or erroneous refund within a period of six months or five years, as the case may be, from the relevant date as defined in clause (ii) of sub-section (3) of that section shall be deemed to be and to always have been, for all purposes, validly and effectively issued or served under that section, notwithstanding any approval, acceptance or assessment relating to the rate of duty on or value of, the excisable goods by any Central Excise Officer under any other provision of the Central Excise Act or the rules made thereunder, (2) Any action taken or anything done or purporting to have been taken or done under section 11A of the Central Excise Act at any time during the said period shall be deemed to be and to have always been, for all purposes, as validly and effectively taken or done as if sub- section (1) had been in force at all material times and, accordingly, notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, - (a) all duties of excise levied, assessed or collected during the period specified in sub-section (1) on any excisable goods under the Central Excise Act, shall be deemed to be and shall be deemed to always have been, as validly levied, assessed or collected as if sub-section (1) had been in force at all material times; (b) no suit or other proceedings shall be maintained or continued in any court, tribunal or other authority for the refund of, and no enforcement shall be made by any court of any decree or order directing the refund of any such duties of excise which have been collected and which would have been validiy collected if sub-section (1) had been in force at all material times; (c) recovery shall be made of all such duties of excise which have not been collected or, as the case may be, which have been refunded but which would have been collected or, as the case may be, would not have been refunded, if subjection (1) had been in force at all material times. Explanation. - For the removal of doubts, it is hereby declared that no net or omission on the part of any person shall be punishable as an offence which would not have been so punishable it this section had not come into force.

88.

Substituted (w.e.f. 17-11-14811) by s. 47 of the Finance Act, 2000 (10 of 2000).

89.

Substituted (w.e f. 12-5-2000) lor the words "six months" by s. 97 of the Finance Act, 2000 (10 of 2000).

90.

Suubstituted (w.e.f. 27-12-1985) by s. 3 of the Central Excises and Salt (Amendment) Act, '1985 (79 of 1985]

91.

the words 'for the words "the Central Excise Officer", the words "Collector of Central Excise", and' omitted (w.e.f. 14-5-1992) by s. 113 of the Finance Act, 1992 (18 of 1992).

92.

Substituted (w.e.f. 12-5-2000) for the words "six months" by s. 97 of the Finance Act, 2000 (10 of 2000).

93.

Consequent upon the amendment to the section 11A (w.e.f. 27-12-1985) by Central Excises and Salt (Amendment) Act, 1985, all proceedings pending as on 27-12-1985, with the Assistant Collector of Central Excise under proviso to section 11A(1) of the Central Excises and Salt Act, 1944, stand transferred to the Collector of Central Excise by virtue of the following section 8 of the Central Excises and Salt (Amendment) Act, 1985 (79 of 1985). "8. Transfer of certain pending proceedings. " Every proceeding under the proviso to sub- section (1) of Section 11A of the principal Act, which is pending immediately before the commencement of this Act before an Assistant Collector of Central Excise and any matter arising out ot, or connected with, such proceeding and which is so pending shall stand transferred on such commencement to the Collector of Central Excise who may proceed with such proceedings or matter from the stage at which it was on such commencement or from any earlier stage as he may deem fit: Provided that any party to the proceeding or matter may demand that before proceeding further with the proceeding or matter, he may be re-heard."

94.

Inserted by the Finance Act, 2003

95.

Second and Third Proviso Omitted by "The Finance Act, 2003"

97.

Substituted (w.e.f. 12-5-2000) for the words "six months" by s. 97 of the Finance Act, 2(100 (10 of 2000).

98.

Substituted (w.e.f. 14-5-1992) by s. 113 of the Finance Act, 1992 (18 of 1992).

99.

Inserted (w.e.f. 11-5-2001) by s. 123 of the Finance Act, 2001 (14 of 2001).

100.

Substituted (w.e.f. 26-5-1995) by s. 72 of the Finance Act, 1995 (22 of 1995).

101.

Inserted (w.e.f. 26-5-1995) by s. 73 (it the Finance Act, 1995 (22 of 1995).

102.

Section 11AA re-numbered as sub-section (1), by s. 124 of the Finance Act, 2001 (14 of 2001).

103.

Substituted (w.e.f. 28-9-1996) by s. 75 (if the Finance (No. 2) Act, 1996 (33 of 1996).

104.

Substituted (w.e.f. 12-5-2000) by s. 98 of the Finance Act, 2000 (10 of 2000).

105.

In Section 11AA & 11AB, sub-section (1), for the words "eighteen per cent" shall be substituted by Finance Act, 2002, (20 of 2002) Published in Gazette of India, Extra, Part II, Section 1, dated May 13, 2002, No.23.

106.

Inserted (w.e.f. 11-5-2001) by s. 124 of the Finance Act, 2001 (14 of 2001)

107.

Inserted (w.e.f. 28-9- 1996) by s. 76 of the Finance (No. 2) Act, 1946 (33 of 1996).

108.

Substituted (w.e.f. 11-5-2001) by s. 125 of the Finance Act, 2001 (14 of 2001).

109.

Substituted (w.e.f. 11-5-2001) by s. 125 of the Finance Act, 2001 (14 of 2001).

110.

Inserted (w.e.f. 28-9-1996) by s. 76 of the Finance (No. 2) Act, 1996 (33 of 1996).

111.

Substituted (w.e.f. 12-5-2000) by s. 100 of the Finance Act, 2000 (10 of 2000).

112.

This section was inserted [w.e.f. 17-1 1-1980 vide Notification No. 182/80-C.E., dated 15-11-1980 by s. 21 of the Customs, Central Excises and Salt and Central Boards of Revenue (Amendment) Act, 1978 (25 of 1978).

113.

Substituted by s. 119 of the Finance Act, 1999 (27 of 1999).

114.

Substituted (w.e.f. 12-5-2000) for the words "six months" by s. 101 of the Finance Act, 2000 (10 of 2000).

115.

Substituted by s. 49 of the Finance (No. 2) Act, 1980 (44 of 1980).

116.

Inserted [w.e.f. 20-9-1991 vide Notification No. 30/91-C.E. (N.T.), dated 19-9..1991 by. 3 of the Central Excises and Customs Laws (Amendment) Act, 199] (40 of 1991).

Central Bare Acts

Central Excise Act, 1944 Complete Act - Bare Act