Section 117 - Amendment of section 4
In section 4 of the Customs Act, 1962 (52 of 1962) (hereinafter referred to as the Customs Act) --
(i) in sub-section (1), for the words "Central Government", the word "Board" shall be substituted;
(ii) in sub-section (2), for the words "Central Government may authorise the Board,", the words "Board may authorise a Chief Commissioner of Customs or" shall be substituted.
Section 118 - Amendment of section 14
In section 14 of the Customs Act,--
(i) in sub-section (1), for the portion beginning with the words "international trade" and ending with the words "offer for sale", the following shall be substituted, namely:--
"international trade, where--
(a) the seller and the buyer have no interest in the business of each other; or
(b) one of them has no interest in the business of the other, and the price is the sole consideration for the sale or offer for sale";
(ii) in sub-section (2), for the words "Central Government", the word "Board" shall be substituted;
(iii) in sub-section (3),--
(a) in clause (a), for the words "Central Government", wherever they occur, the word "Board" shall be substituted;
(b) for clause (b), the following clause shall be substituted, namely:-
'(b) "foreign currency" and "Indian currency" have the meanings respectively assigned to them in clause (m) and clause (g) of section 2 of the Foreign Exchange Management Act, 1999;'.
Section 119 - Amendment of section 25
In section 25 of the Customs Act,--
(a) after sub-section (2), the following sub-section shall be inserted, namely:-
"(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 me 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.";
(b) in sub-section (4), after the word, brackets and figure "sub-section (1)", the words, brackets, figure and letter "or sub-section (2A)" shall be inserted.
Section 120 - Amendment of section 28AA
In section 28AA of the Customs Act, in sub-section (1), for the words "eighteen per cent.", the words "ten per cent." shall be substituted.
Section 121 - Amendment of section 28AB
In section 28AB of the Customs Act, in sub-section (1), for the words "eighteen per cent.", the words "ten per cent." shall be substituted.
Section 122 - Amendment of section 28-I
In section 28-I of the Customs Act, in sub-section (2), in the first proviso, the words "except in the case of a resident applicant" shall be omitted.
Section 123 - Amendment of section 47
In section 47 of the Customs Act, in sub-section (2),--
(i) for the words "two days", the words "five days" shall be substituted;
(ii) for the words "eighteen per cent.", the words "ten per cent." shall be substituted.
Section 124 - Amendment of section 61
In section 61 of the Customs Act, in sub-section (1), in the first proviso, for clause (i), the following clause, shall be substituted, namely:--
"(i) in the case of any goods which are not likely to deteriorate, the period specified in clause (a) or clause (b) may, on sufficient cause being shown, be extended--
(A) in the case of such goods intended for use in any hundred per cent, export oriented undertaking, by the Commissioner of Customs, for such period as he may deem fit; and
(B) in any other case, by the Commissioner of Customs, for a period not exceeding six months and by the Chief Commissioner of Customs for such further period as he may deem fit;".
Section 125 - Amendment of section 75
In section 75 of the Customs Act, in sub-section (1), in the second proviso, for the words and figures "Foreign Exchange Regulation Act, 1973 (46 of 1973)", the words and figures "Foreign Exchange Management Act, 1999 (42 of 1999)" shall be substituted.
Section 126 - Insertion of new Chapter XA
After Chapter X of the Customs Act, the following Chapter shall, with effect from such date as may be appointed by the Central Government, by notification in the Official Gazette, be inserted, namely:--
"CHAPTER XA: SPECIAL provisions relating to special economic zone
76A. Notification of special economic zone.--
The Central Government may, by notification in the Official Gazette, specify special economic zones comprising specifically delineated areas where any goods admitted shall be regarded, in so far as duties of customs are concerned, as being outside the customs territory of India as provided in this Chapter.
76B. Application of provisions.--
The provisions of this Chapter and other Chapters shall apply to goods admitted to a special economic zone but in the event of conflict between the provisions of this Chapter and other Chapters, the provisions of this Chapter shall prevail.
76C. Establishment and control.--
(1) The Central Government may make rules specifying the requirements relating to goods or class of goods admissible to a special economic zone, the nature of operations to' which such goods or class of goods may be subjected to, the conditions to be fulfilled and me procedures to be followed in this regard.
(2) The Board may specify, in the regulations made in this behalf, arrangements for customs control in a special economic zone.
(3) The proper officer shall have the right to carry out checks, at any time, on the goods kept or stored in a special economic zone.
76D. Admission of goods.--
Subject to such conditions as may be specified in the rules made in this behalf, any goods imported directly from outside India or procured from within India shall be authorised for admission to a special economic zone.
76E. Exemption from duties of customs.--
Without prejudice to the provisions of sections 76F, 76G and 76H, any goods admitted to a special economic zone shall be exempt from duties of customs.
76F. Levy of duties of customs.--
Subject to the conditions as may be specified in the rules made in this behalf,--
(a) any goods admitted to a special economic zone from the domestic tariff area shall be chargeable to export duties at such rates as are leviable on such goods when exported;
(b) any goods removed from a special economic zone for home consumption shall be chargeable to duties of customs including anti-dumping, countervailing and safeguard duties under the Customs Tarrif Act, 1975, where applicable, as leviable on such goods when imported; and
(c) the rate of duty and tariff valuation, if any, applicable to goods admitted to, or removed from, a special economic zone shall be the rate and tariff valuation in force as on the date of such admission or removal, as the case may be, and where such date is not ascertainable, on the date of payment of the duty.
76G. Authorised operations.--
All goods admitted lo a special economic zone shall undergo such operations including processing or manufacturing as may be specified in the rules made in this behalf.
76H. Goods utilized within a special economic zone.--
(1) The Central Government may make rules in this behalf to enumerate the cases in which goods to be utilised inside a special economic zone may be admitted free of duties of customs and lay down the requirements which shall be fulfilled.
(2) Goods utilised contrary to the provisions of rules made under sub-section (1) shall be chargeable to duties of customs in the same manner as provided under clause (b) of section 76F as if they have been removed for home consumption.
76I. Drawback on goods admitted to a special economic zone.--
Any goods admitted to a special economic zone from the domestic tariff area for the purposes authorised under this Chapter shall be eligible for drawback under section 75 as if such goods are export goods for the purposes of that section.
76J. Duration of stay.--
Any goods admitted to a special economic zone shall not be allowed to remain within such zone beyond such time as may be specified in the rules made in this behalf.
76K. Security.--
Any goods admitted free of duty to a special economic zone or goods under transhipment to and from such zone without payment of duty shall be subject to execution of such bond and such surety or security as" may be specified in the rules made in this behalf.
76L. Transfer of ownership.--
Any goods admitted to, or produced or manufactured in, a special economic zone shall be allowed for transfer of ownership subject to such conditions as may be specified in the rules made in this behalf.
76M. Removal of goods.--
Any goods admitted to, or produced or manufactured in, a special economic zone may be removed in accordance with such procedure as may be specified in the rules made in this behalf.
76N. Closure of a special economic zone.--
In the event of closure of a special economic zone by the Central Government, by notification in the Official Gazette, the goods admitted to, or produced or manufactured in, such zone shall be removed within such time and in such manner as may be specified in the rules made in this behalf.".
Section 127 - Amendment of section 129B
In section 129B of the Customs Act,--
(i) in sub-section (2), for the words "four years", the words "six months" shall be substituted;
(ii) after sub-section (2), the following sub-section shall be inserted, namely:-
"(2A) The Appellate Tribunal shall, where it is possible to do so, hear and decide every appeal within a period of three years from the date on which such appeal is filed:
Provided that where an order of stay is made in any proceedings relating to an appeal filed under sub-section (1) of section 129A, the Appellate Tribunal shall dispose of the appeal within a period of one hundred and eighty days from the date of such order:
Provided further that if such appeal is not disposed of within the period specified in the first proviso, the stay order shall, on the expiry of that period, stand vacated.".
Section 128 - Amendment of section 129D
In section 129D of the Customs Act, for sub-section (3), the following subsection shall be substituted, namely:--
"(3) The Board or the Commissioner of Customs, as the case may be, shall, where it is possible to do so, make order under sub-section (1) or sub-section (2), within a period of six months, but not beyond a period of one year, from the date of the decision or order of the adjudicating authority.".
Section 129 - Insertion of new section 8C
In the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the Customs Tariff Act), after section 8B, the following section shall be inserted, namely:-
'8C. Power of Central Government to impose transitional product specific safeguard duty on imports from the People's Republic of china.--
(1) Notwithstanding anything contained in section 8B, if the Central Government, after conducting such enquiry as it deems fit, is satisfied that any article is imported into India, from the People's Republic of China, in such increased quantities and under such conditions so as to cause or threatening to cause market disruption to domestic industry, then, it may, by notification in the Official Gazette, impose a safeguard duty on that article:
Provided that the Central Government may, by notification in the Official Gazette, exempt such quantity of any article as it may specify in the notification, when imported from the People's Republic of China into India, from payment of the whole or part of the safeguard duty leviable thereon.
(2) The Central Government may, pending the determination under sub-section (1), impose a provisional safeguard duty under this sub-section on the basis of a preliminary determination that increased imports have caused or threatened to cause market disruption to a domestic industry:
Provided that where, on final determination, the Central Government is of the opinion that increased imports have not caused or threatened to cause market disruption to a domestic industry, it shall refund the duty so collected:
Provided further that the provisional safeguard duty shall not remain in force for more than two hundred days from the date on which it was imposed.
(3) Notwithstanding anything contained in sub-sections (1) and (2), a notification issued under sub-section (1) or any safeguard duty imposed under sub-section (2), unless specifically made applicable in such notification or such imposition, as the case may be, shall not apply to articles imported by a hundred per cent, export-oriented undertaking or a unit in a free trade zone or in a special economic zone.
Explanation.- For the purposes of this section, the expressions "hundred per cent, export-oriented undertaking", "free trade zone" and "special economic zone" shall have the meanings respectively assigned to them in Explanation 1 to sub-section (1) of section 3 of the Central Excise Act, 1944 (1 of 1944).
(4) The duty chargeable under this section shall be in addition to any other duty imposed under this Act or under any other law for the time being in force.
(5) The duty imposed under this section shall, unless revoked earlier, cease to have effect on the expiry of four years from the date of such imposition:
Provided that if the Central Government is of the opinion that such article continues to be imported into India, from the People's Republic of China, in such increased quantities so as to cause or threatening to cause market disruption to domestic industry and the safeguard duty should continue to be imposed, it may extend the period of such imposition for a period not beyond the period often years from the date on which the safeguard duty was first imposed.
(6) The Central Government may, by notification in the Official Gazette, make rules for the purposes of this section, and without prejudice to the generality of the foregoing, such rules may provide for the manner in which articles liable for safeguard duty may be identified and for the manner in which the causes of market disruption or causes of threat of market disruption in relation to such articles may be determined and for the assessment and collection of such safeguard duty.
(7) For the purposes of this section,
(a) "domestic industry" means the producers-
(i) as a whole of a like article or a directly competitive article in India; or (ii) whose collective output of a like article or a directly competitive article in India constitutes a major share of the total production of the said article in India;
(b) "market disruption" shall be caused whenever imports of a like article or a directly competitive article produced by the domestic industry, increase rapidly, either absolutely or relatively, so as to be a significant cause of material injury, or threat of material injury, to the domestic industry;
(c ) "threat of market disruption" means a clear and imminent danger of market disruption.
(8) Every notification issued under this section shall, as soon as may be after it is issued, be laid before each House of Parliament.'.
Section 130 - Refund of additional duty of customs in certain cases
(1) Notwithstanding anything contained in section 25 of the Customs Act, barge mounted power plants, falling under heading 98.01 of the First Schedule to the Customs Tariff Act, shall be deemed to have been exempted from the whole of the additional duty of customs leviable thereon under sub-section (1) of section 3 of the Customs Tariff Act, within the period commencing from the 8th December, 2000 and ending with the 28th February, 2002 (both dates inclusive) and accordingly, notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, barge mounted power plants shall be deemed to be, and always to have been, exempted from the said additional duty of customs as if the exemption given by this sub-section had been in force at all material times.
(2) For the purposes of sub-section (1), the Central Government shall have and shall be deemed to have the power to exempt the goods referred to in the said sub-section with retrospective effect as if the Central Government had the power to exempt the said goods under sub-section (1) of section 25 of the Customs Act, retrospectively at all material times.
(3) Refund shall be made of all such additional duty of customs which have been collected but which would have not been so collected if the exemption referred to in subsection (1) had been in force at all material times.
(4) Notwithstanding anything contained in section 27 of the Customs Act, an application for the claim of refund of the additional duty of customs under sub-section (3) shall be made within six months from the date on which the Finance Bill, 2002 receives the assent of the President.
Section 131 - Amendment of First Schedule
In the Customs Tariff Act, the First Schedule shall be amended in the manner as specified in the Second Schedule.
Section 132 to 144 - Excise
Section 132 - Amendment of section 2
In the Central Excise Act, 1944 (1 of 1944) (hereinafter referred to as the Central Excise Act), in section 2, in clause (f),-
(i) in sub-clause (ii), for the word "manufacture,", the words "manufacture; or" shall be substituted;
(ii) after sub-clause (ii), the following sub-clause shall be inserted, namely:-
"(iii) which is specified in relation to any goods by the Central Government, by notification in the Official Gazette, as amounting to manufacture,".
Section 133 - Amendment of section 3
In section 3 of the Central Excise Act, in sub-section (1),--
(i) in clauses (a) and (b), after the words "excisable goods" wherever they occur, the brackets and words "(excluding goods produced or manufactured in special economic zones)" shall, with effect from such date as may be appointed by the Central Government, by notification in the Official Gazette, be inserted;
(ii) in the proviso,--
(a) in clause (i), the words "or a special economic zone" shall, with effect from such date as may be appointed by the Central Government, by notification in the Official Gazette, be omitted;
(b) in Explanation 2, for clause (i), the following clause shall be substituted, namely:--
'(i) "free trade zone" means a zone which the Central Government may, by notification in the Official Gazette, specify in this behalf;'
Section 134 - Amendment of section 5A
In section 5A of the Central Excise Act,--
(i) in sub-section (1), in the proviso,--
(a) in clause (i), the words "or a special economic zone"; and
(b) In the Explanation, the words ", special economie zone",
shall, with effect from such dates as may be appointed by the Central Government, by notification in the Official Gazette, be omitted;
(ii) after sub-section (2) the following sub-section shall be inserted, namely:--
"(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.";
(iii) in sub-section (J), after the word, brackets and figure "sub-section (1)", the words, brackets, figure and letter "or sub-section (2A)" shall be inserted.
Section 135 - Amendment of section 11AA
In section 11AA of the Central Excise Act, in sub-section (1), for the words "eighteen per cent.", the words "ten per cent." shall be substituted.
Section 136 - Amendment of section 11AB
In section 11AB of the Central Excise Act, in sub-section (1), for the words "eighteen per cent.", the words "ten per cent." shall be substituted.
Section 137 - Omission of sections 16 and 17
Sections 16and 17 of the Central Excise Act shall be omitted.
Section 138 - Amendment of section 23D
In section 23D of the Central Excise Act, in sub-section (2), in the first proviso, the words "except in the case of a resident applicant" shall be omitted.
Section 139 - Omission of Chapter IV
Chapter IV of the Central Excise Act shall be omitted.
Section 140 - Amendment of section 35C
In section 35C of the Central Excise Act,-
(i) in sub-section (2), for the words "four years", the words "six months" shall be substituted;
(ii) after sub-section (2), the following sub-section shall be inserted, namely:-
"(2A) The Appellate Tribunal shall, where it is possible to do so, hear and decide every appeal within a period of three years from the date on which such appeal is filed:
Provided that where an order of stay is made in any proceedings relating to an appeal filed under sub-section (1) of section 35B, the Appellate Tribunal shall dispose of the appeal within a period of one hundred and eighty days from the date of such order:
Provided further that if such appeal is not disposed of within the period specified in the first proviso, the stay order shall, on the expiry of that period, stand vacated.".
Section 141 - Amendment of section 35E
In section 35E of the Central Excise Act, for sub-section (3), the following sub-section shall be substituted, namely:-
"(3) The Board or Commissioner of Central Excise, as the case may be, shall, where it is possible to do so, make order under sub-section (7) or sub-section (2), within a period of six months, but not beyond a period of one year, from the date of the decision or order of the adjudicating authority.".
Section 142 - Amendment of notification issued under section 5A of the Central Excise Act
(1) The notification of the Government of India in the Ministry of Finance (Department of Revenue) No. G.S.R. 509(E), dated the 8th July, 1999, issued under sub- section (7) of section 5A of the Central Excise Act by the Central Government shall stand amended and shall be deemed to have been amended in the manner as specified in the Third Schedule, on and from the 8th July, 1999 to the 28th February, 2002 (both dates inclusive) retrospectively, and, accordingly, notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done under the said notification, shall be deemed to be and always to have been, for all purposes, as validly or effectively taken or done as if the notification as amended by this sub-section had been in force at all material times.
(2) For the purposes of sub-section (7), the Central Government shall have and shall be deemed to have the power to amend the notification referred to in the said subsection with retrospective effect as if the Central Government had the power to amend the said notification under sub-section (1) of section 5A of the Central Excise Act, retrospectively at all material times.
(3) Notwithstanding the cessation of the amendment under sub-section (7) on the 1 st March, 2002, no suit or other proceedings shall be maintained or continued in any court, tribunal or other authority for any action taken or anything done or omitted to be done, in respect of any goods under the said notification, and no enforcement shall be made by any court, tribunal or other authority of any decree or order relating to such action taken or anything done or omitted to be done as if the amendment made by sub-section (7) had been in force at all material times.
(4) Notwithstanding the cessation of the amendment under sub-section (1) on the 1 st March, 2002, recovery shall be made of all amounts of duty or interest or other charges 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, which would have not been refunded if the provisions of this section had been in force at all material times, within a period of thirty days from the date on which the Finance Bill, 2002 receives the assent of the President, and in the event of non-payment of duty or interest or other charges so recoverable, interest at the rate of fifteen per cent, per annum shall be payable, from the date immediately after the expiry of the said period of thirty days, till the date of payment.
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 the notification referred to in sub-section (7) had not been amended retrospectively by that sub-section.
Section 143 - Amendment of Central Excise Rules, 2002 and validation of action taken thereunder
The Central Excise Rules, 2002 made by the Central Government in exercise of the powers conferred by section 37 of the Central Excise Act and published vide notification of the Government of India in the Ministry of Finance (Department of Revenue) No. G.S.R. 143(E), dated the 1st March, 2002, shall stand amended and shall be deemed to have been amended in the manner as specified in column (2) of the Ninth Schedule, on and from the date specified in column (3) of that Schedule, retrospectively and, accordingly, notwithstanding anything contrained in any judgment, decree or order of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done under the said rules, shall be deemed to be, and always to have been, for all purposes, as validly or effectively, taken or done as if the rules as amended by this section had been in force at all material times.
Section 144 - Amendment of notification issued under rule 57 AK of the Central Excise Rules, 1944
(1) The notification of the Government of India in the Ministry of Finance (Department of Revenue) No. G.S.R. 299(E), dated the 31st March, 2000, issued under rule 57AK of the Central Excise Rules, 1944, by the Central Government shall stand amended and shall be deemed to have been amended in the manner as specified in the Fourth Schedule, on and from the date mentioned in column (3) of that Schedule against that notification retrospectively, and, accordingly, notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done under the said notification, shall be deemed to be, and always to have been, for all purposes, as validly or effectively taken or done as if the notification as amended by this sub-section had been in force at all material times.
(2) Credit shall be allowed of all such declared duty, which have been disallowed but which would not have been so disallowed if the amendment made in the notification referred to in sub-section (1) had been in force at all material times.
(3) Refund shall be made of all such credit of the declared duty, which have been collected but which would have not been so collected if the amendment made in the notification referred to in sub-section (1) had been in force at all material times.
(4) Notwithstanding anything contained in section 11B of the Central Excise Act, an application for the claim of refund of the credit of the declared duty under sub-section (3) shall be made within six months from the date on which the Finance Bill, 2002 receives the assent of the President.
Section 145 to 147 - Central Excise Tariff
Section 145 - Amendment of Act
In the Central Excise Tariff Act, 1985 ( 5 of 1986) (hereinafter referred to as the Central Excise Tariff Act) --
(i) the First Schedule shall be amended in the manner as specified in the Fifth Schedule;
(ii) the Second Schedule shall be amended in the manner as specified in the Sixth Schedule.
Section 146 - Amendment of Act 58 of 1957
In the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) (hereinafter referred to as the Additional Duties of Excise Act), the First Schedule shall be amended in the manner as specified in the Seventh Schedule.
Section 147 - Special additional excise duty
(1) In the case of goods specified in the Eighth Schedule, being goods manufactured, there shall be levied and collected, for purposes of the Union, by surcharge, a duty of excise, to be called the Special Additional Excise Duty, at the rates specified in the said Schedule.
(2) The Special Additional Excise Duty chargeable on goods specified in the Eighth Schedule shall be in addition to any other duties of excise chargeable on such goods under the Central Excise Act, or any other law for the time being in force.
(3) The provisions of the Central Excise Act, and the rules made thereunder, including those relating to refunds and exemptions from duties and imposition of penalty, shall, as far as may be, apply in relation to the levy and collection of the Special Additional Excise Duty leviable under this section in respect of the goods specified in the Eighth Schedule, as they apply in relation to the levy and collection of the duties of excise on such goods under that Act, or those rules, as the case may be.