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Central Excise Act - NIL

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Bachelor of law (Llb)

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THE CENTRAL EXCISE ACT, 1944

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ARRANGEMENT OF SECTION

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CHAPTER I

SECTIONS.

  1. Short title, extent and commencement.
  2. Definitions. 2A. References of certain expressions. CHAPTER II LEVY AND COLLECTION OF DUTY
  3. Duty specified in the Fourth Schedule to be levied. 3A. Power of Central Government to charge excise duty on the basis of capacity of production in respect of notified goods. 3B. Emergency power of Central Government to increase duty of excise. 3C. Power of Central Government to amend Fourth Schedule.
  4. Valuation of excisable goods for purposes of charging of duty of excise. Illustration 4A. Valuation of excisable goods with reference to retail sale price.
  5. Remission of duty on goods found deficient in quantity. 5A. Power to grant exemption from duty of excise. 5B. Non-reversal of CENVAT credit.
  6. Registration of certain persons.
  7. [Omitted.].
  8. Restriction on possession of goods specified in the Second Schedule.
  9. Offences and penalties. 9A. Certain offences to be non-cognizable. 9AA. Offences by companies. 9B. Power of Court to publish name, place of business, etc., of persons convicted under the Act. 9C. Presumption of culpable mental state. 9D. Relevancy of statements under certain circumstances. 9E. Application of Section 562 of the Code of Criminal Procedure, 1898, and of the Probation of Offenders Act, 1958.
  10. Power of Courts to order forfeiture.
  11. Recovery of sums due to Government. 11A. Recovery of duties not levied or not paid or short-levied or short-paid or erroneously refunded. 11AA. Interest on delayed payment of duty. 11AC. Penalty for short-levy or non-levy of duty in certain cases. 11B. Claim for refund of duty and interest, if any, paid on such duty.

SECTIONS.

11BB. Interest on delayed refunds. 11C. Power not to recover duty of excise not levied or short-levied as a result of general practice. 11D. Duties of excise collected from the buyer to be deposited with the Central Government. 11DD. Interest on the amounts collected in excess of the duty. 11DDA. Provisional attachment to protect revenue in certain cases. 11E. Liability under Act to be first charge. 12. Application of the provisions of Act 52 of 1962 to Central Excise Duties. CHAPTER II-A INDICATING AMOUNT OF DUTY IN THE PRICE OF GOODS, ETC., FOR PURPOSE OF REFUND AND CREDITING CERTAIN AMOUNTS TO THE FUND 12A. Price of goods to indicate the amount of duty paid thereon. 12B. Presumption that the incidence of duty has been passed on to the buyer. 12C. Consumer Welfare Fund. 12D. Utilisation of the Fund. CHAPTER III POWERS AND DUTIES OF OFFICERS AND LANDHOLDERS 12E. Powers of Central Excise Officers. 12F. Power of search and seizure. 13. Power to arrest. 14. Power to summon persons to give evidence and produce documents in inquiries under this Act. 14A. Special audit in certain cases. 14AA. Special audit in cases where credit of duty availed or utilised is not within the normal limits, etc. 15. Officers required to assist Central Excise Officers. 15A. Obligation to furnish information return. 15B. Penalty for failure to furnish information return. 16. [Omitted.]. 17. [Omitted.]. 18. Searches and arrests how to be made. 19. Disposal of persons arrested. 20. Procedure to be followed by officer-in-charge of police station. 21. Inquiry how to be made by Central Excise Officers against arrested persons forwarded to them under Section 19. 22. Vexatious search, seizure, etc., by Central Excise Officer. 23. Failure of Central Excise Officer in duty. CHAPTER III-A ADVANCE RULINGS 23A. Definitions. 23B. [Omitted.].

SECTIONS.

CHAPTER VI

ADJUDICATION OF CONFISCATIONS AND PENALTIES

  1. Power of adjudication. 33A. Adjudication procedure.
  2. Option to pay fine in lieu of confiscation. 34A. Confiscation or penalty not to interfere with other punishments. CHAPTER VIA APPEALS
  3. Appeals to Commissioner (Appeals). 35A. Procedure in appeal. 35B. Appeals to the Appellate Tribunal. 35C. Orders of Appellate Tribunal. 35D. Procedure of Appellate Tribunal. 35E. Powers of Committee of Principal Chief Commissioner of Central Excise or Chief Commissioners of Central Excise or Principal Commissioner of Central Excise or Commissioners of Central Excise to pass certain orders. 35EA. Powers of revision of Board or Principal Commissioner of Central Excise or Commissioner of Central Excise in certain cases. 35EE. Revision by Central Government. 35F. Deposit of certain percentage of duty demanded or penalty imposed before filing appeal. 35FF. Interest on delayed refund of amount deposited under Section 35-F. 35G. [Omitted.]. 35H. [Omitted.]. 35I. [Omitted.]. 35J. [Omitted.]. 35K. Decision of High Court or Supreme Court on the case stated. 35L. Appeal to Supreme Court. 35M. Hearing before Supreme Court. 35N. Sums due to be paid notwithstanding reference, etc. 35O. Exclusion of time taken for copy. 35P. Transfer of certain pending proceedings and transitional provisions. 35Q. Appearance by authorised representative. 35R. Appeal not to be filed in certain cases.
  4. Definitions. CHAPTER VI-B PRESUMPTION AS TO DOCUMENTS 36A. Presumption as to documents in certain cases. 36B. Admissibility of microfilms, facsimile copies of documents and computer printouts as documents and as evidence.

SECTIONS.

CHAPTER VII

SUPPLEMENTAL PROVISIONS

  1. Power of Central Government to make rules. 37A. Delegation of powers. 37B. Instructions to Central Excise Officers. 37C. Service of decisions, orders, summons, etc. 37D. Rounding off of duty, etc. 37E. Publication of information respecting persons in certain cases.
  2. Publication of rules and notifications and laying of rules before Parliament. 38A. Effect of amendments, etc. of rules, notifications or orders. 38B. Savings of references to Chapter, Heading, Sub-heading and tariff item in Central Excise Tariff Act, 1985.
  3. Repeal of enactments.
  4. Protection of action taken under the Act. THE FIRST SCHEDULE THE SECOND SCHEDULE THE THIRD SCHEDULE THE FOURTH SCHEDULE ———

(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);] 2 [(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; 3 [(b) “Central Excise Officer” means the 4 [Principal Chief Commissioner of Central Excise, Chief Commissioner of Central Excise, Principal Commissioner of Central Excise], Commissioner of Central Excise (Appeals), Additional Commissioner of Central Excise, 5 [Joint Commissioner of Central Excise,] 6 [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 7 [the Fourth Schedule] as being subject to a duty of excise 8 and includes salt; 9 [Explanation.— For the purposes of this clause, “goods” includes any article, material or substance which is capable of being bought and sold for a consideration and such goods shall be deemed to be marketable.] (e) “factory” means any premises, including the precincts thereof, wherein or in any part of which excisable goods 10 [* * *] 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; 11 [(ee) “Fund” means the Consumer Welfare Fund established under Section 12C;] 12 [(f) “manufacture” includes any process—

  1. Subs. by Act 32 of 2003, s. 135, for “Gold (control)” (w.e. 14-05-2003).
  2. Clause (a) re-lettered by Act 44 of 1980, s. 50 and Sch. V, Part II (w.e. 11-10-1982).
  3. Subs. by Act 22 of 1995, s. 71, for “clause b” (w.e. 26-5-1995).
  4. Subs. by Act 25 of 2014, s. 96, for “Chief Commissioner of Central Excise” (w.e. 6-8-2014).
  5. Ins. by Act 27 of 1999, s. 120(i) (w.e. 11-5-1999).
  6. Subs. by ibid, s. 119, for Assistant Commissioner of Central Excise.
  7. Subs. by Act 18 of 2017, s. 5(a), for “the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986)”.
  8. References to the expressions “duty”, “duties,” “duty of excise” and “duties of excise” shall, save as otherwise expressly provided in this Act 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.
  9. Ins. by Act 18 of 2008, s. 78, (w.e. 10-5-2008).
  10. The word “other than salt” omitted by Act 18 of 2017, s. 5(b).
  11. Ins. by Act 40 of 1991, s. 2 (w.e. 20-2-1991). Earlier cl. (ee), ins. by Act 25 of 1950, s. 11 and Sch. IV, omitted by Act 41 of 1954, s. 2 and Sch (w.e. 8-10-1954).
  12. Subs. by Act 5 of 1986, s. 4, for Sub-clause (f) (w.e. 28-2-1986).

(i) incidental or ancillary to the completion of a manufactured product; (ii) which is specified in relation to any goods in the Section or Chapter Notes of 1 [the Fourth Schedule] as amounting to 2 [manufacture ;or], 3 [(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;] and the word “manufacture” 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;] 4 [(ff) “National Tax Tribunal” means the National Tax Tribunal established under Section 3 of the National Tax Tribunal Act, 2005 (49 of 2005);] (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; (i) 5 [* * ] (j) 6 [ * ] (jj) 7 [ * *] (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. 8 [2A. References of certain expressions.— 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)”.]

  1. Subs. by Act 18 of 2017, s. 5(c), for “the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986)”.
  2. Subs. by Act 20 of 2002, s. 132(i), for “manufacture” (w.e. 11-5-2002).
  3. Subs. by Act 32 of 2003, s. 135, for sub-clause (iii). (w.e. 14-5-2003).
  4. Ins. by Act 49 of 2005, s. 30 and Sch. (Pt. VII-1) (w.e. 28-12-2005).
  5. Clause (i) omitted by Act 33 of 1996, s. 72, (w.e. 28-9-1996).
  6. Clause (j) omitted by ibid, s. 72, (w.e. 28-9-1996).
  7. Clause (jj), omitted by Act 25 of 1950, s. 11 and Sch. IV. Earlier clause (jj) was inserted by the A. 1950.
  8. Ins. by Act 10 of 2000, s. 91 (w.e. 12-5-2000).

( 4 ) The Central Government may fix different tariff values— (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.] 1 [3A. Power of Central Government to charge excise duty on the basis of capacity of production in respect of notified goods.— ( 1 ) Notwithstanding anything contained in Section 3, where the Central Government, having regard to the nature of the process of manufacture or production of excisable goods of any specified description, the extent of evasion of duty in regard to such goods or such other factors as may be relevant, is of the opinion that it is necessary to safeguard the interest of revenue, specify, by notification in the Official Gazette, such goods as notified goods and there shall be levied and collected duty of excise on such goods in accordance with the provisions of this section. ( 2 ) Where a notification is issued under sub-section ( 1 ), the Central Government may, by rules,— (a) provide the manner for determination of the annual capacity of production of the factory, in which such goods are produced, by an officer not below the rank of Assistant 2 [Principal Commissioner of Central Excise or Commissioner of Central Excise] and such annual capacity shall be deemed to be the annual production of such goods by such factory; or (b)(i) specify the factor relevant to the production of such goods and the quantity that is deemed to be produced by use of a unit of such factor; and (ii) provide for the determination of the annual capacity of production of the factory in which such goods are produced on the basis of such factor by an officer not below the rank of Assistant 2 [Principal Commissioner of Central Excise or Commissioner of Central Excise] and such annual capacity of production shall be deemed to be the annual production of such goods by such factory: Provided that where a factory producing notified goods is in operation during a part of the year only, the annual production thereof shall be calculated on proportionate basis of the annual capacity of production:

  1. Ins. by Act 18 of 2008, s. 79. (w.e. 10-5-2008) Prior s. 3A was omitted by Act 14 of 2001, s. 121.
  2. Subs. by Act 25 of 2014, s. 95, for “Commissioner of Central Excise”.

Provided further that in a case where the factor relevant to the production is altered or modified at any time during the year, the annual production shall be re-determined on a proportionate basis having regard to such alteration or modification. ( 3 ) The duty of excise on notified goods shall be levied, at such rate, on the unit of production or, as the case may be, on such factor relevant to the production, as the Central Government may, by notification in the Official Gazette, specify, and collected in such manner as may be prescribed: Provided that where a factory producing notified goods did not produce the notified goods during any continuous period of fifteen days or more, the duty calculated on a proportionate basis shall be abated in respect of such period if the manufacturer of such goods fulfils such conditions as may be prescribed. ( 4 ) The provisions of this section shall not apply to goods produced or manufactured, by a hundred per cent export-oriented undertaking and brought to any other place in India. Explanation 1.— For the removal of doubts, it is hereby clarified that for the purposes of Section 3 of the Customs Tariff Act, 1975 (51 of 1975), the duty of excise leviable on the notified goods shall be deemed to be the duty of excise leviable on such goods under the 1 [Fourth Schedule], read with any notification for the time being in force. Explanation 2.— For the purposes of this section, the expression “hundred per cent export-oriented undertaking” shall have the meaning assigned to it in Section 3. 2 [Explanation 3.— For the purposes of sub-sections ( 2 ) and ( 3 ), the word “factor” includes “factors”.]] 3 [3B. Emergency power of Central Government to increase duty of excise.— ( 1 ) Where, in respect of any goods, the Central Government is satisfied that the duty leviable thereon under Section 3 should be increased and that circumstances exist which render it necessary to take immediate action, the Central Government may, by notification in the Official Gazette, amend the Fourth Schedule to substitute the rate of duty specified therein in respect of such goods in the following manner, namely— (a) in a case where the rate of duty as specified in the Fourth Schedule as in force immediately before the issue of such notification is nil, a rate of duty not exceeding fifty per cent ad valorem expressed in any form or method; (b) in any other case, a rate of duty which shall not be more than twice the rate of duty specified in respect of such goods in the Fourth Schedule as in force immediately before the issue of the said notification: Provided that the Central Government shall not issue any notification under this sub-section for substituting the rate of duty in respect of any goods as specified by an earlier notification issued

  1. Subs. by Act 18 of 2017, s. 7, for “First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986)”.
  2. Ins. by Act 20 of 2015, s. 92.
  3. Ins. by Act 18 of 2017, s. 8.

1 [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 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) 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— 2 [(i) “inter-connected undertakings” means two or more undertakings which are inter-connected with each other in any of the following manners, namely— (A) if one owns or controls the other; (B) where the undertakings are owned by firms, if such firms have one or more common partners; (C) where the undertakings are owned by bodies corporate,— (I) if one body corporate manages the other body corporate; or (II) if one body corporate is a subsidiary of the other body corporate; or (III) if the bodies corporate are under the same management; or (IV) if one body corporate exercises control over the other body corporate in any other manner;

  1. Ins. by Act 32 of 2003, s. 136, (w.e. 14-5-2003).
  2. Subs. by Act 23 of 2012, s. 133, for “(i)”.

(D) where one undertaking is owned by a body corporate and the other is owned by a firm, if one or more partners of the firm,— (I) hold, directly or indirectly, not less than fifty per cent of the shares, whether preference or equity, of the body corporate; or (II) exercise control, directly or indirectly, whether as director or otherwise, over the body corporate; (E) if one is owned by a body corporate and the other is owned by a firm having bodies corporate as its partners, if such bodies corporate are under the same management; (F) if the undertakings are owned or controlled by the same person or by the same group; (G) if one is connected with the other either directly or through any number of undertakings which are inter-connected undertakings within the meaning of one or more of the foregoing sub-clauses. Explanation I.— For the purposes of this clause, two bodies corporate shall be deemed to be under the same management— (i) if one such body corporate exercises control over the other or both are under the control of the same group or any of the constituents of the same group; or (ii) if the Managing Director or manager of one such body corporate is the Managing Director or manager of the other; or (iii) if one such body corporate holds not less than one-fourth of the equity shares in the other or controls the composition of not less than one-fourth of the total membership of the Board of Directors of the other; or (iv) if one or more directors of one such body corporate constitute, or at any time within a period of six months immediately preceding the day when the question arises as to whether such bodies corporate are under the same management, constituted (whether independently or together with relatives of such directors or employees of the first mentioned body corporate) one-fourth of the directors of the other; or (v) if the same individual or individuals belonging to a group, while holding (whether by themselves or together with their relatives) not less than one-fourth of the equity shares in one such body corporate also hold (whether by themselves or together with their relatives) not less than one-fourth of the equity shares in the other; or (vi) if the same body corporate or bodies corporate belonging to a group, holding, whether independently or along with its or their subsidiary or subsidiaries, not less than one-fourth of the equity shares in one body corporate, also hold not less than one-fourth of the equity shares in the other; or

(II) associated persons— (a) in relation to a director of a body corporate, means— (i) a relative of such director, and includes a firm in which such director or his relative is a partner; (ii) any trust of which any such director or his relative is a trustee; (iii) any company of which such director, whether independently or together with his relatives, constitutes one-fourth of its Board of Directors; (iv) any other body corporate, at any general meeting of which not less than one-fourth of the total number of directors of such other body corporate are appointed or controlled by the director of the first mentioned body corporate or his relative, whether acting singly or jointly; (b) in relation to the partner of a firm, means a relative of such partner and includes any other partner of such firm; and (c) in relation to the trustee of a trust, means any other trustee of such trust; (III) where any person is an associated person in relation to another, the letter shall also be deemed to be an associated person in relation to the former;] (b) “relative” shall have the meaning assigned to it in clause ( 41 ) of Section 2 of the Companies Act, 1956 (1 of 1956); (c) “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 1 [payment of duty;] 2 [(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,] from where such goods are removed; 2 [(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 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

  1. Subs. by Act 32 of 2003, s. 136, for “payment of duty,”.
  2. Ins. by, ibid, s. 136.

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.] 1 [4A. Valuation of excisable goods with reference to retail sale price.— ( 1 ) The Central Government may, by notification in the Official Gazette, specify any goods, in relation to which it is required, under the provisions of the 2 [Legal Metrology Act, 2009 (1 of 2010)] or the rules made thereunder or under any other law for the time being in force, to declare on the package thereof the retail sale price of such goods, to which the provisions of sub-section ( 2 ) shall apply. ( 2 ) Where the goods specified under sub-section ( 1 ) are excisable goods and are chargeable to duty of excise with reference to value, then, notwithstanding anything contained in Section 4, such value shall be deemed to be the retail sale price declared on such goods less such amount of abatement, if any, from such retail sale price as the Central Government may allow by notification in the Official Gazette. ( 3 ) The Central Government may, for the purpose of allowing any abatement under sub-section ( 2 ), take into account the amount of duty of excise, sales tax and other taxes, if any, payable on such goods. 3 [( 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 sub-section ( 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. 4 [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

  1. Ins. by Act 26 of 1997, s. 82.
  2. Subs. by Act 8 of 2011, s. 62 (w.e. 1-8-2011).
  3. Subs. by Act 32 of 2003, s. 137, for sub-section ( 4 ).
  4. Subs. by Act 21 of 1998, s. 105.

(i) in a 1 [free trade zone 2 [* * ]] and brought to any other place in India; or (ii) by a hundred per cent export-oriented undertaking and 3 [brought to any other place in India]. Explanation.—In this proviso, 1 [“free trade zone” 4 [ * *] and “hundred per cent export-oriented undertaking” shall have the same meanings as in Explanation 2 to sub-section ( 1 ) of Section 3. 5 [(1A) For the removal of doubts, it is hereby declared that where an exemption under sub-section ( 1 ) in respect of any excisable goods from the whole of the duty of excise leviable thereon has been granted absolutely, the manufacturer of such excisable goods shall not pay the duty of excise on such goods.] 6 [( 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 the 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.] 7 [(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 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

  1. Subs. by Act 14 of 2001, s. 122, for “free trade zone”.
  2. The words “or a special economic zone” omitted by Act 20 of 2002, s. 134 (w.e. a date to be notified).
  3. Subs. by Act 14 of 2001, s. 122, for “allowed to be sold in India”.
  4. The words “, special economic zone” omitted by Act 20 of 2002, s. 134 (w.e. a date to be notified).
  5. Ins. by Act 18 of 2005, s. 75.
  6. Subs. by Act 32 of 2003, s. 138, for “sub-section (2)”.
  7. Ins. by Act 20 of 2002, s. 134.

Central Excises Laws (Amendment) Act, 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.] 1 [( 5 ) Every notification issued under sub-section ( 1 ) or sub-section (2-A) shall, unless otherwise provided, come into force on the date of its issue by the Central Government for publication in the Official Gazette.] ( 6 ) 2 [* * *]] 3 [5B. Non-reversal of CENVAT credit.— Where an assessee has paid duty of excise on a final product and has been allowed credit of the duty or tax or cess paid on inputs, capital goods and input services used in making of the said product, but subsequently the process of making the said product is held by the court as not chargeable to excise duty, the Central Government may, by notification, order for non-reversal of such credit allowed to the assessee subject to such conditions as may be specified in the said notification: Provided that the order for non-reversal of credit shall not apply where an assessee has preferred a claim for refund of excise duty paid by him: Provided further that the Central Government may also specify in the notification referred to above for non-reversal of credit, if any, taken by the buyer of the said product.] 4 [6. Registration of certain persons.— 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 5 [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 the 5 [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.] 7. [Form and Conditions of licence.]— Omitted by the Finance Act, 1992 (Act 18 of 1992), s. 113. 8. Restriction on possession of goods specified in the Second Schedule.— From such date as may be specified in this behalf by the Central Government by notification in the Official Gazette, no person

  1. Subs. by Act 28 of 2016, S. 142(i), for clause ( 5 ).
  2. Clause ( 6 ) Omitted by Act 28 of 2016, s. 142(ii).
  3. Ins. by Act 22 of 2007, s. 116.
  4. Subs. by Act 18 of 1992, s. 113(i), for section 6, (w.e. 14-5-1992).
  5. Subs. by Act 27 of 1999, s. 119, for “the schedule” (w.e. 11-5-1999).
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Central Excise Act - NIL

Course: Bachelor of law (Llb)

65 Documents
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University: Bundelkhand University

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1
THE CENTRAL EXCISE ACT, 1944
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ARRANGEMENT OF SECTION
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CHAPTER I
SECTIONS.
1. Short title, extent and commencement.
2. Definitions.
2A. References of certain expressions.
CHAPTER II
LEVY AND COLLECTION OF DUTY
3. Duty specified in the Fourth Schedule to be levied.
3A. Power of Central Government to charge excise duty on the basis of capacity of production in respect
of notified goods.
3B. Emergency power of Central Government to increase duty of excise.
3C. Power of Central Government to amend Fourth Schedule.
4. Valuation of excisable goods for purposes of charging of duty of excise.
Illustration
4A. Valuation of excisable goods with reference to retail sale price.
5. Remission of duty on goods found deficient in quantity.
5A. Power to grant exemption from duty of excise.
5B. Non-reversal of CENVAT credit.
6. Registration of certain persons.
7. [Omitted.].
8. Restriction on possession of goods specified in the Second Schedule.
9. Offences and penalties.
9A. Certain offences to be non-cognizable.
9AA. Offences by companies.
9B. Power of Court to publish name, place of business, etc., of persons convicted under the Act.
9C. Presumption of culpable mental state.
9D. Relevancy of statements under certain circumstances.
9E. Application of Section 562 of the Code of Criminal Procedure, 1898, and of the Probation of
Offenders Act, 1958.
10. Power of Courts to order forfeiture.
11. Recovery of sums due to Government.
11A. Recovery of duties not levied or not paid or short-levied or short-paid or erroneously refunded.
11AA. Interest on delayed payment of duty.
11AC. Penalty for short-levy or non-levy of duty in certain cases.
11B. Claim for refund of duty and interest, if any, paid on such duty.

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