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THE CENTRAL EXCISES AND SALT ACT, 1944

Title : THE CENTRAL EXCISES AND SALT ACT, 1944

Year : 1944



(1) There shall be levied and collected in such manner as may be prescribed duties of excise on all excisable goods other than salt which are produced or manufactured in 1* India] and a duty on salt manufactured in, or imported by land into, any part of 1* India] as, and at the rates, set forth in the 2* Schedule to the Central Excise Tariff Act, 1985 :] (5 of 1986 )

3*Provided that the duties of excise which shall be levied and collected on any 4* excisable goods which are produced or manufactured,-

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

(ii) By a hundred per cent., export- oriented undertaking and allowed to be sold in India, shall be an amount equal to the aggregate of the duties of customs which would be leviable under section 12 of the Customs Act, 1962 (52 of 1962 ) 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,notwithstanding anything contained in any other provision of this Act, be determined in accordance with the provisions of the Customs Act, 1962 and the Customs Tariff Act, 1975 . (51 of 1975 )

Explanation 1.- Where in respect of any such like goods, any duty of customs leviable under the said section 12 is leviable at different rates, then, such duty shall, for the purposes of this proviso, be deemed to be leviable under the said section 12 at the highest of those rates.

5* Explanation 2.- In this proviso,-

(i) "Free trade zone" means the Kandla Free Trade Zone and the Santa Cruz Electronics Export Processing Zone and includes any other free trade 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.]

(1A) 6* 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 3 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.

(3) 7* 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.]

3A. 8*Emergency power of Central Government to increase duties of excise.-

Rep. by the Repealing and Amending Act, 1960 (58 of 1960 ), s. 2 and Sch. I.

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1. Subs. by s. 11 and Sch. IV, ibid., for" the States".

2. Subs. by Act 5 of 1986, s. 4, for" First Schedule" (w. e. f. 28- 2- 1986 ).

3. Ins. by Act 14 of 1982, s. 46.

4. Subs. by Act 21 of 1984, s. 45, for certain words.

5. Subs. by s. 45, ibid., for Explanation 2.

6. Subs. by Act 30 of 1963, s. 3, for sub-section (1A) (w.e.f. 1- 10- 1963 ).

7. Subs. by Act 25 of 1978, s. 19, for sub- section (3) (w.e.f.1-7- 1978 ).

8. Ins. by Act 81 of 1956, s. 2.

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(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;

(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 foe the time being in force or at a price, being the maximum, fixed under any such law,then,notwithstanding anything contained in clause (ill) 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; or

(ii) A warehouse or any other place or premises wherein the excisable goods have been permitted to be deposited without payment of duty, from where such goods are removed;

(c) "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) Does not include the amount of 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.

2* 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, 3* 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 Customs Tariff Act, 1975 , (51 of 1975 ) already paid] on the raw material or component parts used in the production or manufacture of such, goods) from the duty of excise under such Act is for the time being in force, the duty of excise computed with reference to the rate specified in such Act in respect of such goods as reduced so as to give full and complete effect to such exemption; and

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

(e) "Wholesale trade" means sales to dealers, industrial consumers Government, local authorities and other buyers, who or which purchase their requirements otherwise than in retail.]

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1. Subs. by Act 22 of 1973, s. 2, for s. 4 (w. e. f. 1- 10- 1975 ).

2. Ins. by Act 14 of 1982, s. 47 (w. e. f. 1- 10- 1975 ).

3. Subs. by Act 21 of 1984, s. 4 6, for certain words.

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(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.]

5A. 3* Power to grant exemption from duty of excise.

(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 free trade zone and brought to any other place in India; or

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

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

(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.

(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 herein- after 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, 1987 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.]

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1. Ins. by Act 25 of 1978, s. 20 (w. e. f. 1- 7- 1978 ).

2. Subs. by Act 18 of 1956, s. 33, for" any specified excisable goods".

3. Ins. by Act 29 of 1988, s. 9 (w. e. f. 1- 7- 1988 ).

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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 Schedule to the Central Excise Tariff Act, 1985 , 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 Schedule to the Central Excise Tariff Act, 1985 , shall get himself registered with the proper officer in such manner as may be prescribed.] 1***.

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1. Subs. and omitted by Act 18 of 1992, s. 113

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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 1* any goods specified in the Second Schedule] 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.

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1. Subs. by s. 34, ibid., for" any excisable goods specified in this behalf in Part B of the Second Schedule".

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

(a) 2* 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;

(bb) 1* Removes any excisable goods in contravention of any of the provisions of this Act or any rule made there under 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 there under;]

(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; 3*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.]

(2) 4* 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.]

9A. 5* Certain offences to be noncognisable.

Notwithstanding anything contained in the Code of Criminal Procedure, 1898 6*, (5 of 1898 ) offences under section 9 shall be deemed to be noncognisable within the meaning of that Code.

9AA. 7* Offences by companies.

(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 be 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.]

9B. 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.

9C. 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.

9D. Relevancy of statements under certain circumstances.

(1) A statement made arid 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 proceedings under this Act, other than a proceeding before a Court, as they apply in relation to a proceeding before a Court.

9E. 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 1, (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.

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

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

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1. Ins. by s. 20, ibid.

2. Subs. and omitted by Act 18 of 1992, s. 113

3. Subs. by Act 36 of 1973, s. 20, for Certain words.

4. Ins. by s. 20, ibid.

5. Ins. by s. 21, ibid.

6. See now s. 9 of the Code of Criminal Procedure, 1973 (2 of 1974).

7. Ins. by Act 79 of 1985, s. 2.

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Any Court trying an offence under this Chapter may order the forfeiture to 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.



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 there under, the officer empowered by the 1* 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.

11A. 2* Recovery of duties not levied or not paid or short levied or short paid or erroneously refunded.

(1) When any duty of excise has not been levied or paid or has been short- levied or short- paid or erroneously refunded, a Central Excise Officer may, within six months 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: (54 of 1963 )

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 willful misstatement or suppression of facts, or contravention of any of the provisions of this Act or of the rules made there under with intent to evade payment of duty, by such person or his agent, the provisions of this sub- section shall have effect, 3* as if (5 ***),] for the words" six months", the words" five years" were substituted.

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 six months or five years, as the case may be.

(2) 4* The[ Central Excise Officer] 5* 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.

(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,.-

(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 monthly return, showing particulars of the duty paid on the excisable goods removed during the month to which the said return relates, is to be filed by a manufacturer or producer or a licensee of a warehouse, as the case may be, the date on which such return is so filed;

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

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

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

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

11B. Claim for refund of duty.

(1) Any person claiming refund of any duty of excise may make an application for refund of such duty to the Assistant Collector of Central Excise before the expiry of six months 6* from the relevant date 9* in such form 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 subsection (2) as substituted by that Act]:

9* Provided further that] the limitation of six months shall not apply where any duty has been paid under protest. 7*

(2) 9* if, on receipt of any such application, the Assistant Collector 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 Assistant Collector 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 the applicant' s account current maintained with the Collector 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 duty 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 there under 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 subsection (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 reassembly, 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 there under.

(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."]8*

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 goals arc 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;

(e) 9* In the case of a person, other than the manufacturer, the date of purchase of the goods by such person;"]

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

11C. Power not to recover duty of excise not levied or short- levied as a result of general practice.

(1) Notwithstanding anything contained in this Act, if the Central Government is satisfied-

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

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

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

(ii) To a higher amount of duty of excise than what was, or is being, levied, according to the said practice, then, the Central Government may, by notification in the Official Gazette, direct that the whole of the duty of excise payable on such goods, or, as the case may be, the duty of excise in excess of that payable on such goods, but for the said practice, shall not be required to be paid in respect of the goods on which the duty of excise was not, or is not being, levied, or was, or is being, short- levied, in accordance with the said practice.]

(2) 10* Where any notification under sub- section (1) in respect of any goods has been issued, the whole of the duty of excise paid on such goods or, as the case may be, the duty of excise paid in excess of that payable on such goods, which would not have been paid if the said notification had been in force, shall be dealt with in accordance in force, shall be dealt with in accordance with the provisions of sub-section (2) of section 11B:

Provided
that the person claiming the refund of such duty or, as the case may be, excess duty, makes an application in this behalf to the Assistant Collector of Central Excise, in expiry of six months in sub-section (1) Of section 11B, before the expiry of six months from the date of issue of the said notification."]

11D. 11* Duties of excise collected from the buyer to be deposited with the Central Government.

(1) Notwithstanding anything to the contrary contained in any order or direction of the Appellate Tribunal or any Court or in any other provision of this Act or the rules made there under, every person who has collected any amount from the buyer of any goods in any manner as representing duty of excise, shall forthwith pay the amount so collected to the credit of the Central Government.

(2) The amount paid to the credit of the Central Government under sub-section (1) shall be adjusted against the duty of excise payable by the person on finalisation of assessment and where any surplus is left after such adjustment, the amount of such surplus shall either be credited to the Fund or, as the case may be, refunded to the person who has borne the incidence of such amount, in accordance with the provisions of section 11B and the relevant date for making an application under that section in such cases shall be the date of the public notice to be issued by the Assistant Collector of Central Excise.

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1. Subs. by Act 54 of 1963, s. 5 for" Central Board of Revenue" (w. e.f. 1-1-1964 ).

2. S. 11A and 11B ins. by Act 25 of 1978, s. 21 (w. e. f. 17- 11- 1980 ); vide notification No. G. S. R. 654 (E), dated 15- 11- 1980 and s. 11C (w. e. f. 1- 7- 1978 ); vide notification No. G. S. R. 327 (E), dated 19- 6- 1978.

3. Subs. by Act 79 of 1985, s. 3, for" as if".

4. Subs. by 9. 3, ibid., for" The Assistant Collector of Central Excise".

5. Omitted and subs. by Act 18 of 1992, s. 113.

6. Subs. by Act 44 of 1980, s. 49, for" from the date of payment of duty".

7. Explanation to sub- section (1) omitted by s. 49, ibid.

8. Subs. s. 49, ibid., for Explanation

9. Ins. and Subs. by Act 40 of 1991, S. 3 (w. e. f. 20- 09- 1991).

10. Subs. by S. 4, ibid. (w. e. f. 20- 9- 1991).

11. Ins. by S. 5, ibid. (w. e. f. 20- 9- 1991).

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Last updated on September, 2016

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