BE it enacted by Parliament in the Thirteenth Year of the Republic of India as follows:-

CHAPTER I PRELIMINARY

1.Short title, extent and commencement. (1) This Act may be called the Customs Act, 1962.

(2) It extends to the whole of India.

(3) It shall come into force on such date as the Central Government *1 may, by notification in the Official Gazette, appoint.

2.
Definitions.

2.Definitions. In this Act, unless the context otherwise requires,-

3[(1) "adjudicating authority" means any authority competent
to pass any order or decision under this Act, but does not
include the Board, Collector 3*[Commissinor (Appeals)](Appea-
ls) or Appellate Tribunal;

(1A) “aircraft” has the same meaning as in the Aircraft Act,
1934; (22 of 1934).

(1B) “Appellate Tribunal” means the Customs, Excise and Gold
(Control) Appellate Tribunal constituted under section 129;]

(2)”assessment” includes provisional assessment,re-assessment
and any order of assessment in which the duty assessed is nil;

(3) “baggage” includes unaccompained baggage but does not
include motor vehicles;

(4)” bill of entry ” means a bill of entry referred to in
section 46 ;

(5) ” bill of export ” means a bill of export referred to
in section 50

(6) ” Board ” means the 4*[Central Board of Excise and
Customs constituted under the Central Boards of Revenue Act,
1963] (54 of 1963).

(7) “coastal goods ” means goods, other than imported
goods, transported in a vessel from one port in India to
another;

5*(7A)”Commissioner (Appeals)” means a person appointed to be a
Commissioner of Customs (Appeals) under sub-section (1) of
section 4;”]

6*[(8) "Commissioner of Customs", except for the purposes of
Chapter XV, includes an Additional Commissioner of Customs;]

(9) “conveyance ” includes a vessel, an aircraft and a
vehicle;

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1 1st February, 1963 ; vide notification No. G.S.R. 155, dated
23-1-1963. Gazette of India, Extraordinary, Pt. II, See. 3(i), p. 73.

4 Subs. by Act 44 of 1980, S. 50 and fifth Sch., for cl. (1) (w.- e.f. 11.10.1982).

3 Subs. by Act 22 of 1975, s. 51, for “Collector (Appeals)”.

2 Subs. by Act 54 of 1963, s, 5 (2), for certain words (w.e.f.
1-1-1964).

5 Ins. by Act 44 of 1980, s. 50 and Sch. (w.e.f. 11.10.1982).

6 Subs. by Act 18 of 1992, s. 109.

The Act shall come into force in the State of Sikkim w.e.f. 1-10-
1979;vide Notifn. NO. G.S. R. 527 (E), dated 1-9-1979, Gaz. of India, Exty., Pt. II, Sec3 (i), p. 1148.

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1176

(10) ” customs airport ” means any airport appointed under
clause (a) of section 7 to be a customs airport ;

(11) “customs area” means the area of a customs station and
includes any area in which imported goods or export goods are
ordinarily kept before clearance by Customs Authorities;

(12) customs port means any port and includes a place
appointed under clause (a) appointed under clause (aa) that
section to be an inland container deport”]

(13) customs station ” means any customs port, customs
airport or land customs station ;

(14) dutiable goods ” means any goods which are chargeable
to duty and on which duty has not been paid ;

(15) “duty” means a duty of customs leviable under this Act;

(16) “entry” in relation to goods means an entry made in a
bill of entry, shipping bill or bill of export and includes
in the case of goods imported or to be exported by post, the
entry referred to in section 82 or the entry made under the
regulations made under section 84 ;

(17) ” examination “, in relation to any goods, includes
measurement and weighment thereof;

(18) ” export “, with its ‘grammatical variations and
cognate expressions, means taking out of India to a place
outside India ;

(19) “export goods” means any goods which are to be taken
out of India to a place outside India ;

(20)” exporter “, in relation to any goods at any time
between their entry for export and the time when they are ex-
ported, includes any owner or any person holding himself out
to be the exporter;

(21) foreign-going vessel or aircraft ” means any vessel or
aircraft for the time being engaged in the carriage of goods
or passengers between any port or airport in India and any
port or airport outside India, whether touching any
intermediate port or airport in India or not, and includes-

(i) any naval vessel of a foreign Government taking part in
any naval exercises ;

(ii) any vessel engaged in fishing or any other operations
outside the territorial waters of India

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1 Ins. by Act 11 of 1983, s. 46

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1177

(iii) any vessel or aircraft proceeding to a place outside
India for any purpose whatsoever;

1*(21A) “Fund” means the Consumer Welfare Fund established
under section 12C of the Central Excises and Salt Act, 1944
1 of 1944 ;]

(22) goods ” includes-

(a) vessels, aircrafts and vehicles;

(b) stores ;

(c) baggage;

(d) currency and negotiable instruments; and

(e) any other kind of moveable property;

(23) ” import “, with its grammatical variations and cognate
expressions, means bringing into India from a place outside
India ;

(24) ” import manifest ” or ” import report ” means the
manifest or report required to be delivered under section 30;

(25) ” imported goods ” means any goods brought into India
from a place outside India but does not include goods which
have been cleared for home consumption;

(26)” importer “, in relation to any goods at any time
between their importation and the time when they are cleared
for home consumption, includes any owner or any person
holding himself out to be the importer;

(27) India ” includes the territorial waters of India;

(28) India customs waters” means the waters extending into
the to a limit of contiguous zone of India under section 5 of
the territorial inentals, shelf, Exclusive and other Maritime
zones Act 1976″] of the Territorial Economic Zone and other
maritime includes Economic any bay, gulf, harbour, creek or
trade river;

(29) ” land customs station ” means any place appointed
under clause (b) of section 7 to be a land customs station ;

(30) ” market price in relation to any goods, means the
wholesale price of the goods in the ordinary course of trade
in India ;

(31) ” person-in-charge ” means,-

(a) in relation to a vessel, the master of the vessel;

(b) in relation to an aircraft, the commander or pilot-in-
charge of the aircraft;

(c) in relation to a railway train, the conductor, guard or
other person having the chief direction of the train;

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1 Subs. by Act 25 of 1978, S. 2 (w.e.f. 1.7. 1978)

2 Ins. by Act 40 of 1991, s. 9 (w.e.f 20.9. 1991)

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1178

(d) in relation to any other conveyance, the driver or
other person-in-charge of the conveyance ;

(32)” prescribed ” means prescribed by regulations made under
this Act

(33)” prohibited goods ” means any goods the import or export
of which is subject to any prohibition under this Act or any
other law for the time being in force but does not include
any such goods in respect of which the conditions subject to
which the goods are permitted to be imported or exported have
been complied with;

(34) proper officer “, in relation to any functions to be
performed under this Act, means the officer of customs who is
assigned those functions by the Board or the Commissioner
Collector of Customs];

(35) ” regulations ” means the regulations made by the Board
under any provision of this Act;

(36)” rules ” means the rules made by the Central Government
under any provision of this Act ;

(37)” shipping bill ” means a shipping bill referred to in
section 50 ;

(38) “stores” means goods for use in a vessel or aircraft
and includes fuel and spare parts and other articles of
equipment, whether or not for immediate fitting;

(39)” smuggling “, in relation to any goods, means any act or
omission which will render such goods liable to confiscation
under section 111 or section 113 ;

(40) ” tariff value “, in relation to any goods, means the
tariff value. fixed in respect thereof under sub-section (2)
of section 14 ;

(41) ” value “, in relation to any goods, means the value
thereof determined in accordance with the provisions of sub-
section (1) of section 14 ;

(42) ” vehicle ” means conveyance of any kind used on land
and includes a railway vehicle;

(43) ” warehouse ” means a public warehouse appointed under
section 57 or a private warehouse licensed under section 58 ;

(44) “warehoused goods” means goods deposited in a ware-
house;

1 Subs by Act 22 of 1995, s. 50, for “collector of customs”.

1179

(45)” warehousing station ” means a place declared as a ware
housing station under section 9.

CHAPTER II OFFICERS OF CUSTOMS

3.Classes of officers of customs. There shall be the following classes of officers of customs, namely:-

1*[(a) Principle Collectors of Customs;]

2*[(aa) Commissioner of Customs

3*(b) Commissinor of Customs ( Appeals); "

(c) Deputy Commissioners of Customs

(d) Assistant Commissioners of Customs ; and

(e)such other class of officers of customs as may be
appointed for the purposes of this Act.

4.
Appointment of officers of customs.

4.Appointment of officers of customs.(1) The Central Government may appoint such persons as it thinks fit to be officers of customs.

(2) Without prejudice to the provisions of sub-section (1), the Central Government may authorise the Board, a Commissioner of Customs or of Deputy or Assistant Commissioner of Customs to appoint officers of customs below the rank of Assistant Commissioner of Customs.

5.
Power of officers of customs.

5.Power of officers of customs. (1) Subject to such conditions and limitations as the Board may impose, an officer of customs may exercise the powers and discharge ,the duties conferred or imposed on him under this Act.

(2) An officer of customs may exercise the powers and discharge duties conferred or imposed under this Act on any other officer of the customs who is subordinate to him.

(3) Notwithstanding anything contained in this section, 3*[a collector appeals)] shall not exercise the powers and discharge the duties conferred or imposed on an officer of customs other than those specified in Chapter XV and section 108

6.
Entrustment of functions of Board and customs officers on certainother officers.

6.Entrustment of functions of Board and customs officers on certain other officers. The Central Government may, by notification in th Official (Gazette, entrust either conditionally or unconditionally to. any officer ,of the Central or the State Government or a local authority any functions of the Board or any officer of customs under this Act.

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1 Subs. by Act 44 of 1980, S. 50 & Sch. v. (w.e.f. 11-10-1982)

3. Subs. by Act 22 of 1995, S. 52.

2 Re-lettered and ins. by Act 29 of 1988, s. 2 (w.e.f.1.7.1988).

CHAPTER III APPOINTMENT OF CUSTOMS PORTS, AIRPORTS, WAREHOUSING STATIONS, ETC.

7.Appointment of customs ports, airports, etc. The Central Government may, by notification in the Official Gazette, appoint-

(a) the ports and airports which alone shall be customs
ports or customs airports for the unloading of imported goods
and the loading of export goods or any class of such goods;

1[(aa) the places which alone shall be inland container depots
for the unloading of imported goods and the loading of export

goods or any class of such goods;"].
(b) the places whcih alone shall be land stations
(b) the places which alone shall be land customs stations
for the clearance of goods imported or to be exported by land
or inland water or any class of such goods ;

(c)the routes by which alone goods or any class of goods
specified in the notification may pass by land or inland
water into or out of India, or to or from any land customs
station from or to any land frontier ;

(d) the ports which alone shall be coastal ports for the
carrying on of trade in coastal goods or any class of such
goods with all or any specified ports in India.

8.
Power to approve landing places and specify limits of customs area.

8.Power to approve landing places and specify limits of customs area. The Commissioner of Customs may-

(a) approve proper places in any customs port or customs
airports or coastal port for the unloading and loading of
goods or for any class of goods ;

(b) specify the limits of any customs area.

9.
Power to declare places to be warehousing stations.

9.Power to declare places to be warehousing stations. The Board may, by notification in the Official Gazette, declare places to be warehousing stations at which alone public warehouses may be appointed and private warehouses may be licensed.

10.
Appointment of boarding stations.

10. Appointment of boarding stations. The Commissiner of Customs may, by notification in the Official Gazette, appoint, in or near any customs port, a boarding station for the purpose of boarding of, or disembarkation from, vessels by officers of customs.

CHAPTER IVA DETECTION OF ILLEGALLY IMPORTED GOODS AND PREVENTION OF THE DISPOSAL THEREOF

11A.Definitions. In this Chapter, unless the context otherwise
requires,-

(a)”illegal import” means the import of any goods in
contravention of the provisions of this Act or any other law
for the time being in force ;

(b)” intimated place ” means a place intimated under sub-
section (1), sub-section (2) or sub-section (3), as the case
may be, of section 11C;

(c)”notified date”, in relation to goods of any description,
means the date on which the notification in relation to such
goods is issued under section 11B;

(d)”notified goods” means goods specified in the notification
issued under section 11B.

11B.
Power of Central Government to notify goods. 11B.Power of Central Government to notify goods. If, havingregard to the magnitude of the illegal import of goods of any class ordescription, the

11C.
Persons possessing notified goods to intimate the place of storage, etc.

11C.Persons possessing notified goods to intimate the place of storage, etc. (1) Every person who owns, possesses or controls, On the notified date, any notified goods, shall, within seven days from that date, deliver to the proper officer a statement (in such form, in such manner and containing such particulars as may be specified by rules made in the notified goods owned, possessed

———————————————————————-
1 Ins. by Act 12 of 1969, s. 2 (w.e.f. 3-1-1969).
———————————————————————-

1182A

or controlled by him and the place where such goods are kept or stored.

(2) Every person who acquires, after the notified date, any notified goods, shall, before making such acquisition, deliver to the proper officer an intimation containing the particulars of the place where such goods are proposed to be kept or stored after such acquisition and shall immediately on such acquisition, deliver to the proper officer a statement (in such form, in such manner and con- taining such particulars as may be specified by rules made in this behalf) in relation to the notified goods acquired by him:

Provided that a person who has delivered a statement, whether under sub-section (1) or sub-section (2), in relation to any notified goods, owned, possessed, controlled or acquired by him, shall. not be required to deliver any further statement in relation to any notified goods acquired by him, after the date of delivery of the said state- ment, so long as the notified goods so acquired are kept or stored at the intimated place.

(3) If any person intends to shift any notified goods to any place other than the intimated place, he shall, before taking out such goods from the intimated place, deliver to the proper officer an intimation containing the particulars of the place to which such goods are proposed to be shifted.’

(4) No person shall, after the expiry of seven day from the notified date, keep or store any notified goods at any place other than the Intimated place.

(5) Where any notified goods have been sold or transferred, such goods shall not be take from one place to another unless they are accompanied by the voucher referred to in section 11F.

(6) No notified goods (other than those which have been sold For transferred) shall be taken from one place to another unless they are accompanied by a transport voucher (in such form and containing,such particulars as may be specified by rules made in this behalf) prepared by the persons owning, possessing or controlling such goods.

11D.
Precautions to be taken by persons acquiring notified goods.
11D.Precautions to be taken by persons acquiring notified goods.No person shall acquire (except by gift or succession, from any other

11E.
Persons possessing notified goods to maintain accounts.

11E.Persons possessing notified goods to maintain accounts. (1) Every person who, on or after the notified date, owns, possesses, controls or acquires any notified goods shall maintain (in such form and in such manner as may be specified by rules made in this behalf) a true and complete account of such goods and shall, as often as he acquires or parts with any notified goods, make an entry in the said account in relation to such acquisition or parting with, and shall also state therein the particulars of the person from whom such goods have been acquired or in whose favour such goods have been parted with, as the case may be, and such account shall be kept, along with the goods, at the place of storage of the notified goods to which such accounts relate:

Provided that it shall not be necessary to maintain separately accounts in the form and manner specified by rules made in this behalf in the case of a person who is already maintaining accounts which contain the particulars specified by the said rules.

(2) Every person Who owns, possesses or controls any notified goods and who uses any such goods for the manufacture of any other goods, shall maintain (in such form, in such manner and containing such particulars as may be specified by rules made in this behalf) a true and complete account of the notified goods so used by him and shall keep such account at the intimated place.

11F.
Sale, etc., of notified goods to be evidenced by vouchers.

11F.Sale, etc., of notified goods to be evidenced by vouchers. On and from the notified date,no person shall sell or other-wise transfer any notified goods, unless every transaction in relation to the sale, or transfer of such goods is evidenced by a voucher in such form and containing such particulars as may be specified by rules made in this behalf.

11G.
Sections 11C, 11E, and 11F not to apply to goods in personal use.

11G.Sections 11C, 11E and 11F not to apply to goods in personal use. (1) Nothing in sections 11C, 11E and 11F shall apply to any notified goods which are–

(a) in personal use of the person by whom they are owned, possessed or controlled, or

1182C

(b) kept in the residential premises of a person for his personal use.

(2) If any person, who is in possession of any notified goods referred to in sub-section (1), sells, or otherwise transfers for a valuable consideration, any such goods he shall issue to the purchaser or transferee, as the case may be, a memorandum containing such particulars as may be specified by rules made in this behalf and no such goods shall be taken from one place to another unless they are accompanied by the said memorandum.

CHAPTER IVB PREEVENTION OR DETENTION OF ILLEGAL EXPORT OF GOODS

11H.Definitions. In this Chapter, unless the context otherwise requires,-

(a) ” illegal export” means the export of any goods in
contravention of the provisions of this Act or any other law
for the time being in force;

(b) ” intimated place ” means a place intimated under sub-
section (1), sub-section (2) or sub-section (2), as the case
may be, of section 11J ;

(c) “specified area” includes the Indian customs waters,and
such inland area, not exceeding one hundred kilometres in
width from any coast or other border of India, as the Central
Government may, having regard to the vulnerability of that
area to smuggling, by notification in the Official Gazette,
specify in this behalf:

Provided that where part of any village, town or city
falls within a specified area, the whole of such village,
town or city shall, notwithstanding that the whole of it is
not within one hundred kilometres from any coast or other
border of India,may be deemed to be included in such speci-
fied area ;

(d) specified date “, in relation to specified goods, means
the date on which any notification is issued under section
11-I in relation to those goods in any specified area ;

(e) specified goods” means goods of any description
specified in the notification issued under section 11-I
:in”relation to a specified area.

1182D

11-I
Power of Central Government of specify goods. 11-I.Power of Central Government of specify goods. If, havingregard to the magnitude of the illegal export of goods of any class ordescription, th

1182

11K.
Transport of specified goods to be covered by vouchers. 11K.Transport of specified goods to be covered by vouchers. (1)No specified goods shall be transported from, into or within anyspeci

11L.
Persons possessing specified goods to maintain accounts. 11L.Persons possessing specified goods to maintain accounts. (1)Every person who, on or after the specified date, owns, possesses orcont

11M.
Steps to be taken by persons selling or transferring and specifiedgoods.
11M.Steps to be taken by persons selling or transferring anyspecified goods. Except where he receives payment by

CHAPTER IVC POWER TO EXEMPT FROM THE PROVISIONS OF CHAPTERS IVA AND IVB

11N.Power to exempt. 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 as may be specified in the notification, goods of any class or description from all or any of the provisions of Chapter IVA or Chapter IVB.]

12.Dutiable goods.(1) Except as otherwise provided in this Act, or any other law for the time being in force, duties of customs shall be levied at such rates as may be specified under the 2[Customs Tariff Act, 1975] (51 of 1975) or any other law for the time being in force, on goods imported into, or exported from, India.

1[(2) The provision of sub-section (1) shall apply in respect of all goods belonging to Government as they apply in respect of goods not belonging to Government.]

13.
Duty on pilferred goods.

13.Duty on pilferred goods. If any imported goods are pilferred after the unloading thereof and before the proper officer has made an order for clearance for home-consumption or deposit in a warehouse, the importer shall not be liable to pay the duty leviable on such goods except where such goods are restored to the importer after pilferage.

14.
Valuation of goods for purposes of assessment.

14.Valuation of goods for purposes of assessment. (1) For the purposes of the 2[Customs Tariff Act, 1975] (51 of 1975) or any other law for the time being in force whereunder a duty of customs is charg- eable on any goods by reference to their value, the value of such goo- ds shall be deemed to be-

3xxx the price at which such or like goods are, ordinarily
sold, or offered for sale, for delivery at the time and place
of importation or exportation, as the case may be, in the
course of international trade, where the seller and the

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1 subs. by Act 30 of 1963, s. 2. for sub-section (2) (w.e.f.
1-10-1063)

2. Subs. by Act 51 of 1975, s.13 (w.e.f. 2-8-1976).

3. Omitted by Act 27 of 1988, s.2 (w.e.f. 16-8-1988).
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1183

buyer have no interest in the business of each other and the
price is the sole consideration for the sale or offer for
sale:

1["provided that such price shall be calculated with
reference to rate of exchange as in force on the date on which
a bill of entry is presented under section 46, or a shipping
bill or bill of expert as the case may be, is Presented under
section 50;]

2*[(1A) Subject to the provisions of sub-section (1), the
price referred to in that subjection in respect of imported
goods shall be determined in accordance with the rules made
in this behalf.

3* * * * *

(2)Notwithstanding anything contained in sub-section (1) 2[or sub-section (1A)] if the Central Government is satisfied that it is necessary or so to do it may, by notification in the Official Gazette, fix tariff values for any class of imported goods or export goods, having regard to the trend of value of such or like goods, and where any such tariff values are fixed, the duty shall be chargeable with reference to such tariff value.

2*["(3) For the Purpose of this section--

(a) "rate of exchange" means the rate of exchange--

(i) determined by the Central Government, or

(ii) ascertained in such manner as the Central Government may
direct,

for the conversion of Indian currency into foreign currency
or foreign currency into Indian currency :

(b) "foreign currency" and "Indian currency" have the
meanings respectively assigned to them in the Foreign
Exchange Regulation Act, 1973 (46 of 1973)."]

15.
Date for determination of rate of duty and tariff valuation ofimported goods.

15.Date for determination of rate of duty and tariff valuation of imported goods. (1) 1*[The rate of duty 5* * * and tariff valuation, if any, applicable to any imported goods, shall be the rate and valua- tion in force,-

(a) in the case of goods entered for home consumption under
section 46, on the date on which a bill of entry in respect
of such goods is presented under that section ;

(b) in the case of goods cleared from a warehouse under
section 68, on the date on which the goods are actually
removed from the warehouse ;

(c) in the case of any other goods, on the date of payment
of duty:

Provided that if a bill of entry has been presented before the date of entry inwards of the vessel by which the goods are imported, the bill of entry shall be deemed to have been presented on the date of such entry inwards.

(2) The provisions of this section shall not apply to baggage and goods imported by post.

----------------------------------------------------------------------

1 Ins. by Act 20 of 1966, s.2.

4 Subs. by s.3 ibid., for The rate of duty".

1 Subs. & ins. by Act 25 of 1978, s.3 (w.e.f. 1-7-78).

5 Omitted by s.4, ibid. (w.e.f. 1-7-1978).

2 Omitted and Ins. by Act 27 of 1988, s.2 (w.e.f. 16-8-1988).

3 Omitted by s. 2, ibid. (w.e.f. 16-8-1988).

----------------------------------------------------------------------

1184

1* * * * *

16.
Date for determination of rate of duty and tariff valuation of exportgoods.

16.Date for determination of rate of duty and tariff valuation of export goods. 2["(1) The rate of duty and tariff valuation, if any, applicable to any export goods, shall be the rate and valuation, in force,-

(a) in the case of goods entered for export under section
50, on the date on which the proper officer makes an order
permitting clearance and loading of the goods for exportation
under section 51;

(b) in the case of any other goods, on the date of payment
of duty".]

(2) The provisions of this section shall not apply to baggage and goods exported by post.

17.
Assessment of duty.

17.Assessment of duty. (1) After an import-entered has entered any imported goods under section 46 or an exporter has entered any export goods under section 50 the imported goods or the export goods, as the case may be, or such part thereof as may be necessary may, without undue delay, be examined and tested by the proper officer.

(2) After such examination and testing, the duty, if any, leviable on such goods shall, save as otherwise provided in section
85, be assessed.

(3) For the purpose of assessing duty under sub-section (2), the proper officer may require the importer, exporter or any other person to produce any contract, broker’s note, policy of insurance, catalogue or other document whereby the duty leviable on the imported goods or export goods, as the case may be, can be ascertained, and to furnish any information required for such ascertainment which it is in his power to produce-or furnish, and thereupon the importer, exporter or such other person shall produce such document and furnish such information.

———————————————————————-

1 Omitted by Act 25 of 1978, s.4 (w.e.f. 1-7-1978).

2 Subs. by Act 23 of 1986, s. 50.

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1184A

(4) Notwithstanding anything contained in this section, imported goods or export goods may, prior to the examination or testing thereof, be permitted by the proper officer to be assessed to duty on the basis of the statements made in the entry relating thereto and the documents produced and the information furnished under sub-section (3)
; but if it is found subsequently on examination or testing of the goods or otherwise that any statement in such entry or document or any information so furnished is not true in respect of any matter relevant to the assessment, the goods may, without prejudice to any other action which may be taken under this Act, be re-assessed to duty.

18.
Provisional assessment of duty.

18.Provisional assessment of duty. (1) Notwithstanding anything contained in this Act but without prejudice to the provisions contained in section 46-

(a) where the proper officer is satisfied that an importer
or exporter is unable to produce any document or furnish any
information necessary for the assessment of duty on the
imported goods or the export goods, as the case may be; or

1185

(b) where the proper officer deems it necessary to subject
any imported goods or export goods to any chemical or other
test for the purpose of assessment of duty thereon; or

(c) where the importer or the exporter has produced all the
necessary documents and furnished full information for the
assessment of duty but the proper officer deems it necessary
to make further enquiry for assessing the duty ;
the proper officer may direct that the duty leviable on such goods may, pending the production of such documents or furnishing of such information or completion of such test or enquiry, be assessed pro- visionally if the importer or the exporter, as the case may be, furnishes such security as the proper officer deems fit for the pay- ment of the deficiency, if any, between the duty finally assessed and the duty provisionally assessed.

(2) When the duty leviable on such goods is assessed finally in accordance with the provisions of this Act, then-

(a) in the case of goods cleared for home consumption or
ex-portation, the amount paid shall be adjusted against the
duty finally assessed and if the amount so paid falls short
of, or is in excess of, 1[in duty finally assessed] the
importer or the exporter of the goods shall pay the
deficiency or be entitled to a refund, as the case may be ;

(b) in the case of warehoused goods, the proper officer
may, where the duty finally assessed is in excess of the duty
provisionally assessed, require the importer to execute a
bond, binding himself in a sum equal to twice the amount of
the excess duty.

19.
Determination of duty where goods consist of articles liable todifferent rates of duty.

19.Determination of duty where goods consist of articles liable to different rates of duty. Except as otherwise provided in any law for the time being in force, where goods consist of a set of articles, duty shall be calculated as follows :-

(a) articles liable to duty with reference to quantity
shall be chargeable to that duty ;

(b) articles liable to duty with reference to value shall,
if they are liable to duty at the same rate, be chargeable to
duty at that rate, and if they are liable to duty at
different rates, be chargeable to duty at the highest of such
rates ;

(c) articles not liable to duty shall be chargeable to duty at
the rate at which articles liable to duty with reference to
value are liable under clause (b) ;
———————————————————————-

1. Subs. by Act 56 of 1974, s.3 & Sch. II.
———————————————————————-

1186

Provided that,-

(a) accessories of, and spare parts or maintenance and
repairing implements for, any article which satisfy the
conditions specified in the rules made in this behalf shall
be chargeable at the same rate of duty as that article ;

(b) if the importer produces evidence to the satisfaction
of the proper officer regarding the value of any of the
articles liable to different rates of duty, such article
shall be chargeable to duty separately at the rate applicable
to it.

20.
Re-importation of goods .

1[20. Re-importation of goods . If goods are imported into India after exportation therefrom, such go- ods shall be liable to and duty be subject to all the conditions and restrictions, if any, to which goods of the like kind and value are liable or subject, on the importation thereof: importation thereof:
section 3 of the Central Excises and Salt Act, 1944."]

———————————————————————-

1. Ins. by Act 14 of 1982, s.45.

2. Ins by Act 80 of 1985, s.2.
3. Omitted by Act 22 of 1995 S. 53
3. Subs. by Act 32 of 1994, s.60.

———————————————————————-

1187

21.
Goods derelict, wreck etc.

21.Goods derelict, wreck etc. All goods, derelict, jetsam, flotsam and wreck brought or coming into India, shall be dealt with as if they were imported into India, unless it be shown to the satisfaction of the proper officer that they are entitled to be admitted duty-free under this Act.

22.
Abatement of duty on damaged or deteriorated goods.

22.Abatement of duty on damaged or deteriorated goods. (1) Where it is shown to the satisfaction of the Assistant Commissiner of Customs-

(a) that any imported goods had been damaged or had
deteriorated at any time before or during the unloading of
the goods in India ; or

(b) that any imported goods, other than warehoused goods,
had been damaged at any time after the unloading thereof in
India but before their examination under section 17, on
account of any accident not due to any wilful act, negligence
or default of the importer, his employee or agent ; or

(c) that any warehoused goods had been damaged at any time
before clearance for home consumption on account of an
accident not due to any wilful act, negligence or default of
the owner, his employee or agent,

such goods shall be chargeable to duty in accordance with the pro visions of sub-section (2).

(2) The duty to be charged on the goods referred to in sub- section (1)shall bear the same proportion to the duty chargeable on the goods before the damage or deterioration which the value of the damaged or deteriorated goods bears to the value of the goods before the damage or deterioration.

(3) For the purposes of this section, the value of damaged or deteriorated goods may be ascertained by either of the following methods at the option of the owner :-

(a) the value of such goods may be ascertained by the
proper officer, or

(b) such goods may be sold by the proper officer by public
auction or by tender, or with the consent of the owner in any
other manner, and the gross sale proceeds shall be deemed to
be the value of such goods.

1188

23.
Remission of duty on lost, destroyed or abandoned goods.

23.Remission of duty on lost, destroyed or abandoned goods. (1)
1["Without prejudice to the provisions of section 13, where it is shown] to the satisfaction of the Assistant Commissiner of Customs. that any imported goods have been lost 2[(otherwise than as a result of pilferage)] or destroyed, at any time before clearance for home consumption, the Assistant Commissioner of Customs shall remit the duty on such goods.

3″[(2) The owner of any imported goods may, at any time before an order clearance of goods for whole constitution under section 47 or an order for permitting the deposits of goods in a werehouse under section
60 has been made, relinquish his title to the goods and thereupon he s- hall not be liable to the goods and pay the duty thereon.:]

24.
Power to make rule for denaturing or mutilation of goods.

24.Power to make rule for denaturing or mutilation of goods. The Central Government may make rules for permitting at the request of the owner the denaturing or mutilation of imported goods which are ordinarily used for more than one purpose so as to render them unfit for one or more of such purposes; and where any goods are so denatured or mutilated they shall be chargeable to duty at such rate as would be applicable if the goods had been imported in the denatured or mutilated form.

25.
Power to grant exemption from duty.

25.Power to grant exemption from duty. (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 clearance) as may be specified in the notification goods of any specified description from the whole or any part of duty of customs leviable thereon.

(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, under circumstances of an exceptional nature to be stated in such order, any goods on which duty is leviable.

4[(3) An exemption under sub-section (i) or sub-section (1) in respect of any goods from any part of the duty of customs leviable thereon (the duty of customs 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 goods in the manner Provided in this sub-section shall have effect subject to the condition that the duty of customs chargeable on such goods shall in no case exceed the statutory duty.

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

26.
Refund of export duty in certain cases.

26.Refund of export duty in certain cases. Where on the exportation of any goods any duty has been paid, such duty shall be refunded to the person by whom or on whose behalf it was paid, if-

(a) the goods are returned to such person otherwise than by
way of re-sale;

(b) the goods are re-imported within one year from the date
of exportation ; and

(c) an application for refund of such duty is made before
the expiry of six months from the date on which the proper
officer makes an order for the clearance of the goods.

———————————————————————-

1. Subs. by Act 11 of 1983, s.48.

2. Ins. by s. 48, ibid.

4. Ins. by s.49, ibid.

3. Subs. by Act 32 of 1994, s.60.

———————————————————————-

1189.

27.
Claim for refund of duty.

1[27.Claim for refund of duty. (1) Any person claiming refund of any 2[ duty and interest, if any, paid on such duty]

(i) paid by him in pursuance of an order of assessment; or

(ii) borne by him,
may make an application for refund of such 2[duty and interest, if any, paid on such duty] to the Assistant Commissioner of Customs-

(a) in the case of any import made by any,individual
his personal use or by Government or by any educational,
research or charitable institution or hospital, before the
expiry of one year:

(b) in any other case, before the expiry of six months,
from the date of payment of 2[duty and interest, if any, paid on such duty] in such form and manner as may be specified in the regulations made in this behalf and the application shall accompanied by such documentary or other evidence (including the documents referred to in section 28C) as the applicant may furnish to establish that the amount of 2[duty and interest, if any, paid on such duty] in relation to which such refund is claimed was collected from, or paid by , and him the incidence of such 2[duty and interest, if any paid on 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 (4 of 1991), such application shall be deemed to have been made under this sub-section and the same shall be dealt with in accordance with the provisions of sub-section (2):

Provided further that the limitation of one year or six month as the case may be, shall not apply where any 2[duty and interest, if any paid on such duty] has been paid under protest.

Explanation.–For the purposes of this sub-section, “the date of payment of 2[duty and interest, if any paid on such duty] in relation to person, other than the importer shall be construed as “the date of purchase of goods” by such person.

(2) If, on receipt of any such application, the Assistant Commissioner of Customs is satisfied that the whole or any part of the
2[duty and interest, if any, paid on such duty] 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 2[duty and interest , if any, paid on such duty] as determined by the Assistant Commissiner of Customs 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) the 2[ duty and interest, if any, paid on such duty]
importer) if he had not passed on the incidence of such 2[
duty and interest, if any, paid on such duty] to any other
person;

(b) the 2[duty and interest , if any , paid on such duty]
on imports made by an individual for his personal use:

(c)the 3[duty and interest, if any, paid on such duty] borne
by the buyer, if he had not passed on the incidence of such
2[ duty and interest, if any, paid on such duty] to any other
person;

(d) the export duty as specified in section 26;

(e) drawback of duty payable under sections 74 and 75;

(f) the 2[duty and interest, if any, paid on such duty]
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 2[duty and interest, if any, paid on such 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 regulations made thereunder or any other law for the time being in force, no refund shall be made except as provided in sub-section (2).

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

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

28.
Notice for payment of duties not levied, short-levied or erroneouslyrefunded.

28.Notice for payment of duties not levied, short-levied or erroneously refunded. (1) 3[When any duty has not been levied or has been short-levied or erroneously refunded,he proper officer may,-

(a) in the case of any import made by any individual for
his personal use or by Government or by any educational,
research or charitable institution or hospital, within one
year;

(b) in any other case, within six months,

from the relevant date, serve notice on the person chargeable with the duty which has not been levied or which has been so short-levied or to whom the refund has erroneously been made, requiring to him to show cause why he should not pay the amount specified in the notice:"]

Provided that where any duty has not been levied or has been short-levied or has been erroneously refunded by reason of collusion or any wilful miss-tatement or suppression of facts by the importer or the exporter, or the agent or employee of the importer or exporter, the provisions of this sub-section shall have effect 4[ as if] for the words 3["one year" and "six months"] the words “five years” were substituted.

5["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 one year or six months or five years, as the case may be."]

(2) The 6[proper officer] after considering the re-presentation, if any, made by the person on whom notice is served under sub-section
(1) shall determine the amount of duty due from

7* * * * *

———————————————————————-

3. Subs. by Act 25 of 1978, s.6. (w.e.f. 1-7-1978).

5. Ins. by Act 21 of 1984 S.37.

4. Subs. by Act 80 of 1985, s.3.

1. Subs. by Act 40 of 1991, s.10 (w.e.f. 20-9-1991).

2. Subs. by Act 55 of 1991, s.2 (w.e.f. 23-12-1991).

6. Subs. by Act 18 of 1992, s.109.

7. Omitted by s. 109, ibid.

———————————————————————-

1190

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 sub-section (1), the expression
“relevant date” means-

(a) in a case where duty is not levied, the date on which
the proper officer makes an order for the clearance of the
goods ;

(b) in a case where duty is provisionally assessed under
section 18, the date of adjustment of duty after the final
assessment thereof ;

(c) in a case where duty has been erroneously refunded, the
date of refund ;

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

28A.
Power not to recover duties not levied or short-levied as a result ofgeneral practice. 1[28A.Power not to recover duties not levied or short-levied as aresult of general practice. 2[(1)] Notwiths

28B.
Duties collected from the buyer to be deposited with the Central Gove-nment.
4["28B.Duties collected from the buyer to be deposited with theCentral Government. (1) Notwithstanding anything t

CHAPTER VA INDICATING AMOUNT OF DUTY IN THE PRICE OF GOODS, ETC. FOR PURPOSE OF REFUND

28C.
Price of goods to indicate the amount of duty paid thereon. 28C.Price of goods to indicate the amount of duty paid thereon.Notwithstanding anything contained in this Act or any other law fort

28D.
Presumption that incidence of duty has been passed on to the buyer.
28D.Presumption that incidence of duty has been passed on to thebuyer. Every person who has paid the duty on any goods under t

CHAPTER VI

 PROVISIONS RELATING TO CONVEYANCES CARRYING IMPORTED OR EXPORTED GOODS

29.Arrival of vessels and aircrafts in India. (1) The person-in- charge of a vessel or an aircraft entering India from any place outside India shall not cause or permit the vessel or aircraft to call or land-

(a) for the first time after arrival in India ; or

(b) at any time while it is carrying passengers or cargo
brought in that vessel or aircraft ;
at any place other than a customs port or a customs airport, as the case may be.

(2) The provisions of sub-section (1) shall not apply in relation to any vessel or aircraft which is compelled by accident, stress of weather or other unavoidable cause to call or land at a place other than a customs port or customs airport but the person-in- charge of any such vessel or aircraft--

(a) shall immediately report the I arrival of the vessel or
the landing of the aircraft to the nearest customs officer or
the officer-in-charge of a police station and shall on demand
produce to him the log book belonging to the vessel or the
aircraft ;

-----------------------------------------------------------------------

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

2. Renumbered & ins. by Act 29 of 1988, s.3 (w.e.f. 1-7-1988).

3. Subs. by Act 40 of 1991, s.11 (w.e.f. 20-9-1991).

4. Ins. by s.12, ibid. (w.e.f. 20-9-1991).

5. Ins. by s.13, ibid. (w.e.f. 20-9-1991).

6. Ins. by Act 22 of 1995, S. 57

----------------------------------------------------------------------

1191

(b) shall not without the consent of any such officer
permit any goods carried in the vessel or the aircraft to be
unloaded from, or any of the crew or passengers to depart
from the vicinity of, the vessel or the aircraft ; and

(c) shall comply with any directions given by any such
officer with respect to any such goods,
and no passenger or member of the crew shall, without the consent of any such officer, leave the immediate vicinity of the vessel or the aircraft:

Provided that nothing in this section shall prohibit the departure of any crew or passengers from the vicinity of, or the removal of goods from, the vessel or aircraft where the departure or removal is necessary for reasons of health, safety or the preservation of life or property.

30.
Delivery of import manifest or import report.

30.Delivery of import manifest or import report. (1) The person- in-charge of a conveyance carrying imported goods shall, within twenty-four hours after arrival thereof at a customs station, deliver to the proper officer, in the case of a vessel or aircraft, an import manifest, and in the case of a vehicle, an import report, in the prescribed form:
Provided that,-

(a) in the case of a vessel any such manifest may be
delivered to the proper officer before the arrival of the
vessel ;

(b) if the proper officer is satisfied that there was
sufficient cause for not delivering the import manifest or
import report or any part thereof within twenty-four hours
after the arrival of the conveyance, he may accept it at any
time thereafter.

(2) The person delivering the import manifest or import report shall at the foot thereof make and subscribe to a declaration as to the truth of its contents.

(3) If the proper officer is satisfied that the import manifest or import report is in any way incorrect or incomplete, and that there was no fraudulent intention, he may permit it to be amended or supplemented.

31.
Imported goods not to be unloaded from vessel until entry inwardsgranted.

31.Imported goods not to be unloaded from vessel until entry inwards granted. (1) The master of a vessel shall not permit the unloading of any imported goods until an order has been given by the proper officer granting entry inwards to such vessel.

1192

(2)No order under sub-section (1) shall be given until an import manifest has been delivered or the proper officer is satisfied that there was sufficient cause for not delivering it.

(3) Nothing in this section shall apply to the unloading of baggage accompanying a passenger or a member of the crew, mail bags. animals, perishable goods and hazardous goods.

32.
Imported goods not to be unloaded unless mentioned in import manifestor import report.

32.Imported goods not to be unloaded unless mentioned in import manifest or import report. No imported goods required to be mentioned under the regulations in an import manifest or import report shall, except with the permission of the proper officer, be unloaded at any customs station unless they are specified in such manifest or report for being unloaded at that customs station.

33.
Unloading and loading of goods at approved places only.

33.Unloading and loading of goods at approved places only. Except with the permission of the proper officer, no imported goods shall be unloaded, and no export goods shall be loaded, at any place other than a place approved under clause (a) of section 8 for the unloading or loading of such goods.

34.
Goods not to be unloaded or loaded except under supervision of customsofficer.

34.Goods not to be unloaded or loaded except under supervision of customs officer. Imported goods shall not be unloaded from, and export goods shall not be loaded on, any conveyance except under the supervision of the proper officer:

Provided that the Board may, by notification in the Official Gazette, give general permission and the proper officer may in any particular, case give special permission, for any goods or class of goods to be unloaded or loaded without the supervision of the proper officer.

35.
Restrictions on goods being water-borne.

35.Restrictions on goods being water-borne. No imported goods shall be water-borne for being landed from any vessel, and no export goods which are not accompanied by a shipping bill, shall be water- home for being shipped, unless the goods are accompanied by a boat- note in the prescribed form:

Provided that the Board may, by notification in the Official Gazette, give general permission, and the proper officer may in any particular case give special permission, for any goods or any class of goods to be water-borne without being accompanied by a boat-note.

36.
Restrictions on unloading and loading of goods on holiday,s etc.

36.Restrictions on unloading and loading of goods on holiday,s etc. No imported goods shall be unloaded from, and no export goods shall be loaded on, any conveyance on any Sunday or on any holiday

1193

observed by the Customs Department or on any other day after the working hours, except after giving the prescribed notice and on pay- ment of the prescribed fees, if any:

Provided that no fees shall be levied for the unloading and loading of baggage accompanying a passenger or a member of the crew, and mail bags.

37.
Power to board conveyances.

37.Power to board conveyances. The proper officer may, at any time, board any conveyance carrying imported goods or export goods and may remain on such conveyance for such period as he considers necessary.

38.
Power to require production of documents and ask questions.

38.Power to require production of documents and ask questions. For the purposes of carrying out the provisions of this Act, the proper officer may require the person-in-charge of any conveyance or animal carrying imported goods or export goods to produce any document and to answer any questions and thereupon such person shall produce such documents and answer such questions.

39.
Export goods not to be loaded on vessel until entry outwards granted.

39.Export goods not to be loaded on vessel until entry outwards granted. The master of a vessel shall not permit the loading of any export goods, other than baggage and mail bags, until an order has been given by the proper officer granting entry-outwards to such vessel.

40.
Export goods not to be loaded unless duly passed by proper officer.

40.Export goods not to be loaded unless duly passed by proper officer. The person-in-charge of a conveyance shall not permit the loading at a customs station-

(a) of export goods, other than baggage and mail bags,
unless a shipping bill or bill of export or a bill of
transhipment, as the case may be, duly passed by the proper
officer, has been handed over to him by the exporter;

(b) of baggage and mail bags, unless their export has been
duly permitted by the proper officer.

41.
Delivery of export manifest or export report.

41.Delivery of export manifest or export report. (1) The person- incharge, of a conveyance carrying export goods shall, before departure of the conveyance from a customs station, deliver to the proper officer in the case of a vessel or aircraft, an export manifest, and in the case of a vehicle, an export report, in the prescribed form:

Provided that if the agent of the person in charge of the conveyance furnishes such security as the proper officer deems sufficient for duly delivering within seven days from the date of departure of

1194

the conveyance the export manifest or the export report, as the case may be, the proper officer may (subject to such rules as the Central Government may make in this behalf) accept such manifest or report within the aforesaid period,

(2) The person delivering the export manifest or export report shall at the foot thereof make and subscribe to a declaration as to the truth of its contents.

(3) If the proper officer is satisfied that the export manifest or export report is in any way incorrect or incomplete and that there was no fraudulent intention, he may permit such manifest or report to be amended or supplemented.

42.
No conveyance to leave without written order.

42.No conveyance to leave without written order. (1) The person- in-charge of a conveyance which has brought any imported goods or has loaded any export goods at a customs station shall not cause or permit the conveyance to depart from that customs station until a written order to that effect has been given by the proper officer.

(2) No such order shall be given until-

(a) the person-in-charge of the conveyance has answered the
questions put to him under section 38 ;
(b) the provisions of section 41 have been complied with;

(c) the shipping bills or bills of export, the bills of
transhipment, if any, and such other documents as the proper
officer may require have been delivered to him;

(d) all duties leviable on any stores consumed if, such
conveyance, and all charges and penalties due in respect of
such conveyance or from the person-in-charge thereof have
been paid or the payment secured by such guarantee or deposit
of such amount as the proper officer may direct ;

(e) the person-in-charge of the conveyance has satisfied
the proper officer that no penalty is leviable on him under
section 116 or the payment of any penalty that may be levied
upon him under that section has been secured by such
guarantee or deposit of such amount as the proper officer may
direct;

(f) in any case where any export goods have been loaded
without payment of export duty or in contravention of any

1195

provision of this Act or any other law for the time being in
force relating to export of goods,--

(i) such goods have been unloaded, or

(ii) where the Assistant Commissiner of Customs is satisfied
that it is not practicable to unload such goods, the person-
in-charge of the conveyance has given an undertaking, secured
by such guarantee or deposit of such amount as the proper
officer may direct, for bringing back the goods to India.

43.
Exemption of certain classes of conveyances from certain provisions ofthis Chapter.

43.Exemption of certain classes of conveyances from certain provisions of this Chapter. (1) The provisions of sections 30, 41 and
42 shall not apply to a vehicle which carries no goods other than the luggage of its occupants.

(2) The Central Government may, by notification in the Official Gazette, exempt the following classes of conveyances from all or any of the provisions of this Chapter--

(a) conveyances belonging to the Government or any foreign
Government;

(b) vessels and aircrafts which temporarily enter India by
reason of any emergency.

CHAPTER VII

 CLEARANCE OF IMPORTED GOODS AND EXPORT GOODS

44.Chapter not to apply to baggage and postal articles. The provisions of this Chapter shall not apply to (a) baggage, and (b) goods imported or to be exported by post.

Clearance of imported goods

45.
Restrictions on custody and removal of imported goods.

45.Restrictions on custody and removal of imported goods. (1) Save as otherwise provided in any law for the time being in force, all imported goods unloaded in a customs area shall remain in the custody of such person as may be approved by the Commissiner of Customs until they are cleared for home consumption are or ware housed or are transhipped in accordance with the provisions of Chapter VIII.

1196

(2) The person having custody of any imported goods in a customs area, whether under the provisions of sub-section (1) or under any law for the time being in force,-

(a) shall keep a record of such goods and send a copy
thereof to the proper officer ;

(b) shall not permit such goods to be removed from the
customs area or otherwise dealt with, except under and in
accordance with the permission in writing of the proper
officer.

2["(3) Notwithstanding anything contained in any law for the time being in force, if any imported goods are pilferred after unloading thereof in a customs area while in the custody of a person referred to in sub-section (1), that person shall be liable to pay duty on such goods at the rate prevailing on the date of delivery of an import menifest or, as the case may be, an import report to the proper officer under section 30 for the arrival of the convence in which the said goods were carried .".]

46.
Entry of goods on importation.

46.(1)Entry of goods on importation. The importer of any goods, other than goods intended for transit or transhipment, shall make entry thereof by presenting to the proper officer a bill of entry for home consumption or warehousing in the prescribed form:

Provided that if the importer makes and subscribes to a declara- tion before the proper officer, to the effect that he is unable for want of full information to furnish all the particulars of the goods required under this sub-section, the proper officer may, pending the production of such information, permit him, previous to the entry thereof (a) to examine the goods in the presence of an officer of customs, or (b)to deposit the goods in a public warehouse appointed under section 57 without warehousing the same.

(2) Save as otherwise permitted by the proper officer, a bill of entry shall include all the goods mentioned in the bill of lading or other receipt given by the carrier to the consignor.

(3) A bill of entry under sub-section (1) may be presented at any time after the delivery of the import manifest or import report as the case may be:

Provided that the 2[Commissiner of Customs] may in any special circumstances permit a bill of, entry to be presented before the delivery of 3[such report]:

4["Provided further that a bill of entry may be presented even before the delivery of such manifest if the vessel by which the goods have been shipped for importation into India is expected to arrive within a week from the date of such presentation."]

(4) The importer while presenting a bill of entry shall at the foot thereof make and subscribe to a declaration as to the truth of the contents of such bill of entry and shall, in support of such declaration, produce to the proper officer the invoice, if any, relating to the imported goods.

(5) If the proper officer is satisfied that the interests of revenue are not prejudicially affected and that there was no fraudulent intention, he may permit substitution of a bill of entry for home consumption for a bill of entry for warehousing of vice versa.

———————————————————————–

1. Ins. by Act 22 of 1995, s. 50.

2. Subs. ibid., for Collector of Customs.

3. Subs. by Act 25 of 1978, s.8 (w.e.f. 1-7-1978).

4. Ins. s. 8, ibid.

———————————————————————-

1197

47.
Clearance of goods for home consumption.

47.Clearance of goods for home consumption. 1[(1)] Where the proper officer is satisfied that any goods entered for home consumption are not prohibited goods and the importer has paid the import duty, if any, assessed thereon and any charges payable under this Act in respect of the same, the proper officer may make an order permitting clearance of the goods for home consumption.

1["(2) Where the importer fails to pay the import duty under sub- section (1) within seven days from the date on which the bill of entry is returned to him for payment of duty, he shall pay interest at such rate, not below 2[ten per cent.] and not exceeding thirty per cent. per annum, as is for the time being fixed by the Board, on such duty till the date of payment of the said duty:

Provided that where the bill of entry is returned for payment of duty before the commencement of the Customs (Amendment) Act, 1991 (55 of 1991) and the importer has not paid such duty before such commence- ment. the date of return of such bill of entry to him shall be deemed to be the date of such commencement for the purpose of this section.”]
3["Provided further that if the Board is satisfied that it is necessary in the public interest so to do, it may, by order for reasons, to be recorded, waive the whole of part of any interest payable under this section.".]

48.
Procedure in case of goods not cleared, warehoused, or transhippedwithin
3[thirty days] after unloading.

48.Procedure in case of goods not cleared, warehoused, or transhipped within 4[thirty days] after unloading. If any goods brought into India form a place outside India are not cleared for home consumption or warehoused or transhipped [thirty days]4 form the date of the unloading thereof at a customs station or within such further time as the proper officer may allow or if the title to any imported goods is relinquished, such goods may, after notice to the importer and with the permission of the proper officer be sold by the person having the custody thereof :
Provided that-

(a) animals, perishable goods and hazardous goods, may,
with the permission of the proper officer, be sold at any
time ;

(b) arms and ammunition may be sold at such time and place
and in such manner as the Central Government may direct.

Explanation.-In this section, “arms” and “ammunition” have the meanings respectively assigned to them in the Arms Act, 1959. (54 of
1959).

49.
Storage of imported goods in warehouse pending clearance.

49.Storage of imported goods in warehouse pending clearance. Where in the case of any imported goods, whether dutiable or not, entered for home consumption, the [Assistant Commissiner of Customs] is satisfied on the application of the importer that the goods cannot be cleared within’ a reasonable time, the goods may, pending clearance, be permitted to be stored in a public warehouse, or in a private warehouse if facilities for deposit in a public warehouse are not available; but such goods shall not be deemed to be warehoused goods for the purposes of this Act, and accordingly the provisions of Chapter IX shall not apply to such goods.

Clearance of export goods

50.
Entry of goods for exportation.

50.Entry of goods for exportation. (1) The exporter of any goods shall make entry thereof by presenting to the proper officer in the case of goods to be exported in a vessel or aircraft, a shipping bill, and in the case of goods to be exported by land, a bill of export in the prescribed form.

(2) The exporter of any goods, while presenting a shipping bill or, bill of export, shall at the foot thereof make and subscribe to a declaration as to the truth of its contents.

———————————————————————-

1. Re-numbered and ins. by Act 55 of 1991, s.3 (w.e.f. 23-12-
1991).

2. Subs. by Act 22 of 1995, s. 59, for “twenty percent”.

3. Subs. by , s.4, ibid. (w.e.f. 23-12-1991).

4. Subs. by Act 55 of 1991, s. 4, for “two months” (w.e.f. 23-12-
1991).

———————————————————————–

1198

51.
Clearence of goods for exportation.

51.Clearence of goods for exportation. Where the proper officer is satisfied that any goods entered for export are not prohibited goods and the exporter has paid the duty, if any, assessed thereon and any charges payable under this Act in respect of the same, the proper officer may make an order permitting clearance and loading of the goods for exportation.

CHAPTER VIII GOODS IN TRANSIT

52.Chapter not to apply to baggage, postal articles and stores. The provisions of this Chapter shall not apply to (a) baggage, (b) goods imported by post, and (c) stores.

53.
Transit of goods in same vessel or aircraft.

53.Transit of goods in same vessel or aircraft. Subject to the provisions of section 11, any goods imported in a vessel or aircraft and mentioned in the import manifest as for transit in the same vessel or aircraft to any port or airport outside India or any customs port or customs airport may be allowed to be so transitted without payment of duty.

54.
Transhipment of goods without payment of duty.

54.Transhipment of goods without payment of duty. (1) Where any goods imported into a customs port or customs airport are intended for transhipment, a bill of transhipment shall be presented to the proper officer in the prescribed form.

(2) Subject to the provisions of section 11–

(a) where any goods imported into a customs port are
mentioned in the import manifest as for transhipment to any
port outside India, or

(b) where any goods imported into a customs airport are
mentioned in the import manifest as for transhipment to any
airport outside India,
such goods may be allowed to be so transhipped without payment of duty.

(3) Where any goods imported into a customs port or a customs airport are mentioned in the import manifest as for transhipment-

(a) to any major port as defined in the Indian Ports Act,
1908 (15 of 1908), or the customs airport at Bombay, Calcutta,
Delhi or Madras, or any other customs port or customs airport
which the Board may, by notification in the Official Gazette,
specify in this behalf, or

1199

(b) to any other customs port or customs airport, and the
proper officer is satisfied that the goods are bona fide
intended for transhipment to such customs port or airport,

the proper officer may allow the goods to be transhipped, without payment of duty, subject to such conditions as may be prescribed for the due arrival of such goods at the customs port or customs airport to which transhipment is allowed.

55.
Entry, etc., of transitted or transhipped goods on arrival at customsport or customs airport.

55.Entry, etc., of transitted or transhipped goods on arrival at customs port or customs airport. Where any goods are allowed to be transitted under section 53 or transhipped under sub-section (3) of section 54 to any customs port or customs airport, they shall, on their arrival at such port or airport, be liable to duty and shall be entered in like manner as goods are entered on the first importation thereof and the provisions of this Act and any rules and regulations shall, so far as may be, apply in relation to such goods.

56.
Transport of certain classes of goods subject to prescribedconditions.

56. Imported goods may be transported without payment of duty from one land customs station to another, and any goods may be transported from one part of India to another part through any foreign territory, subject to such conditions as may be prescribed for the due arrival of such goods at the place of destination.

CHAPTER IX WAREHOUSING

57.Appointing of public warehouses. At any warehousing station, the Assistant Commissiner of Customs may appoint public warehouses wherein dutiable goods may be deposited. 1(xxx.

58.
Licensing of private warehouses.

58.Licensing of private warehouses. (1) At any warehousing station, the [Assistant Commissiner of Customs] may license private warehouses wherein dutiable good imported by or on behalf of the, licensee-, or any other imported goods in respect of which facilities for deposit in a public warehouse are not available, may be, deposited. (1xxx.

(2) The Assistant Commissiner of Customs may cancel a licence granted under sub-section (1)-

(a) by giving one month’s notice in writing to the licensee; or

———————————————————————–

1. Omitted by Act 55 of 1991, s.5 (w.e.f. 23-12-1991).
———————————————————————–

1200

(b) if the licensee has contravened any provision of this
Act or the rules or regulations or committed breach of any of
the conditions of the licence:

Provided that before any licence is cancelled under clause (b), the licensee shall be given a reasonable opportunity of being heard.

(3) Pending an enquiry whether a licence granted under sub-section
(1) should be cancelled under clause (b) of sub-section (2), the
[Assistant Commissiner of Customs] may suspend the licence.

59.
Warehousing bond.

59.Warehousing bond. 1["(1) The importer of any goods specified in section (1) of section 61, which have been entered for warehousing and assessed to duty under section 17 or ,section 18 shall execute a bond binding himself in a sum equal to twice the amount of the duty assessed on such goods-

(a) to observe all the provisions of this Act and the rules
and regulations in respect of such goods;

(b) to pay on or before a date specified in a notice of
demand,-

(i) all duties and interest, if any, payable under sub-
section (2) of section 61;

(ii) rent and charges claimable on account of such goods
under this Act, together with interest on the same from the
date so specified at the rate of six per cent. per annum or
such other rate as is for the time being fixed by the Board;
and

(c) to discharge all penalties incurred for violation of the
provisions of this Act and the rules and regulations in
respect of such goods."]

(2) For the purposes of sub-section (1), the Assistant Commissiner of Customs may permit an importer to enter into a general bond in such amount as the Assistant Commissiner of Customs may approve in respect of the warehousing of goods to be imported by him within a specified period.

(3) A bond executed under this section by an importer in respect of any goods shall continue in force notwithstanding the transfer of the goods to any other person or the removal of the goods to another warehouse:

Provided that where the whole of the goods or any part thereof are transferred to another person, the proper officer may accept a fresh bond from the transferee in a sum equal to twice the amount of duty assessed on the goods transferred and thereupon the bond executed by the transferor shall be enforceable only for a sum mentioned therein less the amount for which a fresh bond is accepted from the transferee.

———————————————————————-

1. Subs. by Act 55 of 1991, s.6 (w.e.f. 23-12-1991).

2. Ins. by s.7, ibid. (w.e.f. 23-12-1991).

3. Omitted by Act 32 of 1994, s.60.

———————————————————————-

1201.

60.
Permission for deposit of goods in a warehouse.

60.Permission for deposit of goods in a warehouse. When the provisions of 7[section 59 8 xxx] have been complied with in respect of any goods, the proper officer may make an order permitting the deposit of the goods in a warehouse( 5 xxx.

61.
Period for which goods may remain warehoused.

6[61.Period for which goods may remain warehoused. (1) Any warehoused goods may be left in the warehouse in which they are deposited or in any warehouse to which they may be removed,--

(a) in the case of capital goods intended for use in any
hundred per cent. export oriented undertaking, till the
expiry of five years; and

(b) in the case of any other goods, till the expiry of one
year,
after the date on which the proper officer has made an order under section 60 permitting the deposit of the goods in a warehouse:
Provided that-

(i) in the case of any goods which are not likely to
deteriorate, the period specified in sub-section (1) may, on
sufficient cause being shown, be extended by the Collector of
Customs for a period not exceeding six months anti by the
Principal Collector of Customs for such further period as he
may deem fit;

(ii) in the case of any goods referred to in clause (b), if
they are likely to deteriorate, the aforesaid period of one
year may be reduced by the Collector of Customs to such
shorter period as he may deem fit:

Provided further that when the licence for any private warehouse is cancelled, the owner of any goods warehoused therein shall, within seven days from the date on which notice of such cancellation is given or within such extended period as the proper officer may allow, remove the goods from such warehouse to another warehouse or clear them for home consumption or exportation.

(2) Where any warehoused goods remain in a warehouse beyond the period specified in sub-section (1) by reason of extension of the aforesaid period or otherwise, interest at such rate as is. specified in section 47 shall be payable, on the amount of duty payable at the time of clearance of the goods in accordance with the provisions of section 15 on the warehoused goods, for the period from the expiry of the said warehousing period till the date of payment of duty on the warehoused goods:

Provided that the Board may, if it considers it necessary so to do in the public interest, by order and under circumstances of an exceptional nature, to be specified in such order, waive the whole or part of any interest payable under this section in respect of any warehoused goods:

Provided further that the Board may, if it is satisfied that it is necessary so to do in the public interest, by notification in the Official Gazette, specify the class of goods in respect of which no interest shall be charged under this section.

Explanation.-For the purposes of this section, "hundred per cent. export oriented undertaking" has the same meaning as in Explanation 2 to sub-section (1) of section 3 of the Central Excises and Salt Act,
1944.]

62.
Control over warehoused goods.

62. Control over warehoused goods. (1)All warehoused goods shall be subject to the control of the proper officer.

(2) No person shall enter a warehouse or remove any goods therefrom without the permission of the proper officer.

(3) The proper officer may cause any warehouse to be locked with the lock of the Customs Department and no person shall remove or break such lock.

(4) The proper officer shall have access to every part of a warehouse and power to, examine the goods therein.

63.
Payment of rent and warehouse charges.

63. (1) The owner of any warehoused goods shall pay to the ware house-keeper rent and warehouse charges at the rates fixed under any law for the time being in force or where no rates are so fixed, at such rates as may be fixed by the Collector of Customs.

———————————————————————–

1. Subs. by Act 25 of 1978, s.9 (w.e.f. 1-7-78).

2. Numbered, subs. and ins. by Act 11 of 1983, s.50.

3. added by Act 21 of 1984, s.38.

4. Subs. by Act 80 of 1985, s.5.

5. Omitted by Act 55 of 1991, s.5 (w.e.f. 23-12-1991).

6. Subs. and omitted by s.8, ibid. (w.e.f. 23-12-1991).

7. Subs. by s.9, ibid. (w.e.f. 23-12-1991).

———————————————————————–

1202

(2) If any rent or warehouse charges are not paid within ten days from the date when they became due, the warehouse-keeper may, after notice to the owner of the warehoused goods and with the permission of the proper officer cause to be sold (any transfer of the warehoused goods notwithstanding) such sufficient portion of the goods as the warehouse-keeper may select.

64.
Owner’s right to deal with warehoused goods.

64. Owner’s right to deal with warehoused goods. With, the sanction of the proper officer and on payment of the prescribed fees, the owner of any goods may either before or after warehousing the same-

(a) inspect the goods

(b) separate damaged or deteriorated goods from the rest

(c) sort the goods or change their containers for the
purpose of preservation, sale, export or disposal of the
goods ;

(d) deal with the goods and their containers in such manner
as may be necessary to prevent loss or deterioration or
damage to the goods ;

(e) show the goods for sale ; or

(f)take samples of goods without entry for home consumption,
and if the proper officer so permits, without payment of duty
on such samples.

65.
Manufacture and other operations in relation to goods in a warehouse.

65. Manufacture and other operations in relation to goods in a warehouse. (1) With the sanction of the [Assistant Commissiner of Cus- toms]and subject to such conditions and on payment of such fees as may be prescribed, the owner of any warehoused goods may carry on any manufacturing process or other operations in the warehouse in relation to such goods.

(2) Where in the course of any operations permissible in relation to any warehoused goods under sub-section (1), there is any waste or refuse, the following provisions shall apply:-

(a) if the whole or any part of the goods resulting
from such operations are exported, import duty shall be
remitted on the quantity of the warehoused goods contained in
so much of the waste or refuse as has arisen from the opera-
tions carried on in relation to the goods exported:

Provided that such waste or refuse is either destroyed or
duty is paid on such waste or refuse as if it had been
imported into India in that form ;

1203

(b) if the whole or any part of the goods resulting from
such operations are cleared from the warehouse for home con-
sumption, import duty shall be charged on the quantity of the
warehoused goods contained in so much of the waste or refuse
as has arisen from the operations carried on in relation to
the goods cleared for home consumption.

66.
Power to exempt imported materials used in the manufacture of goods inwarehouse.

66.Power to exempt imported materials used in the manufacture of goods in warehouse. If any imported materials are used in accordance with the provisions of section 65 for the manufacture of any goods and the rate of duty leviable on the imported materials exceeds the rate of duty leviable on such goods, the Central Government, if satisfied that in the interests of the establishment or development of any domestic industry it is necessary so to do, may, by notification in the Official Gazette, exempt the imported materials from the whole or part of the excess rate of duty.

67.
Removal of goods from one warehouse to another.

67.Removal of goods from one warehouse to another. The owner of any warehoused goods may, with the permission of the proper officer, remove them from one warehouse to another, 1 xxx,) subject to such conditions as may be prescribed for the due arrival of the warehoused goods at the warehouse to which removal is permitted.

68.
Clearance of warehoused goods for home consumption.

68.Clearance of warehoused goods for home consumption. The importer of any warehoused goods may clear them for home consumption if-

(a) a bill of entry for home consumption in respect of such
goods has been presented in the prescribed form ;

(b) the import duty leviable on such goods and all
penalties, rent, interest and other charges payable in
respect of such goods have been paid; and

(c) an order for clearance of such goods for home
consumption has been made by the proper officer.

69.
Clearance of warehoused goods for exportation.

69.Clearance of warehoused goods for exportation. (1) Any warehoused goods may be exported to a place outside India without payment of import duty if-

(a) a shipping bill or a bill of export has been presented
in respect of such goods in the prescribed form ;

(b) the export duty, penalties, rent, interest and other
charges payable in respect of such goods have been paid; and

(c) an order for clearance of such goods for exportation
has been made by the proper officer.

———————————————————————-

1. Omitted by Act 55 of 1991, s.5 (w.e.f. 23-12-1991).

———————————————————————-

1204

(2) Notwithstanding anything contained in sub-section (1), if the Central Government is of opinion that warehoused goods of any specified description are likely to be smuggled back into India, it may, by notification in the Official Gazette, direct that such goods shall not be exported to any place outside India without payment, of duty or may be allowed to be so exported subject to such restrictions and conditions as may be specified in the notification.

70.
Allowance in case of volatile goods.

70.Allowance in case of volatile goods. (1) When any warehoused goods to which this section applies are at the time of delivery from a warehouse found to be deficient in quantity on account of natural loss, the Assistant Commissiner of Customs may remit the duty on such deficiency.

(2) This section applies to such warehoused goods as the Central Government, having regard to the volatility of the goods and the manner of their storage, may, by notification in the Official Gazette, specify.

71.
Goods not to be taken out of warehouse except as provided by thisAct.

71. Goods not to be taken out of warehouse except as provided by this Act. No warehoused goods shall be taken out of a warehouse except on clearance for home consumption or re-exportation, or for removal to another warehouse, or as otherwise provided by this Act.

72.
Goods improperly removed from warehouse, etc.

72.Goods improperly removed from warehouse, etc. (1) In any of the following cases, that is to say,-

(a) where any warehoused goods are removed from a warehouse
in contravention of section 71 ;

(b) where any warehoused goods have not been removed from a
warehouse at the expiration of the period during which such
goods are permitted under section 61 to remain in a
warehouse;

(c) where any warehoused goods have been taken under sec-
tion 64 as samples without payment of duty;

(d) where any goods in respect of which a bond has been
executed under 1[section 59 (2xxx] and which have not been
cleared for home consumption or exportation are not duly
accounted for to the satisfaction of the proper officer ;

the proper officer may demand, and the owner of such goods shall forthwith pay, the full amount of duty chargeable on account of such goods together with all penalties, rent, interest and other charges payable in respect of such goods.

———————————————————————–

1. subs. by Act 55 of 1991, s.9 (w.e.f. 23-12-1991).

———————————————————————-

1205

(2) If any owner fails to pay any amount demanded under sub- section (1), the proper officer may, without prejudice to any other remedy, cause to be detained and sold, after notice to the owner (any transfer of the goods notwithstanding) such sufficient portion of his goods, if any, in the warehouse, as the said officer may select.

73.
Cancellation and return of warehousing bond.

73.Cancellation and return of warehousing bond. When the whole of the goods covered by any bond executed under 3[ section 59 (4 xxx,] have been cleared for home consumption or exported or are otherwise duly accounted for, and when all amounts due on account of such goods have been paid, the proper officer shall cancel the bond as discharged in full, and shall on demand deliver it, so cancelled, to the person who has executed or is entitled to receive it.

CHAPTER X DRAWBACK

74.Drawback allowable on re-export of duty-paid goods. (1) When any goods capable of being easily identified which have been imported into India and upon which 2[any duty has been paid on importation,--

(i) are entered for export and the proper officer makes an
order permitting clearance and loading of the goods for
exportation under section 51; or

(ii) are to be exported as baggage and the owner of such
baggage, for the purpose of clearing it, makes a declaration
of its contents to the proper officer under section 77 (which
declaration shall be deemed to be an entry for export for the
purposes of this section) and such officer makes an order
permitting clearance of the goods for exportation, or

(iii)are entered for export by post under section 82 and the
proper officer makes an order permitting clearance of the
goods for exportation, ninety-eight per cent. of such duty
shall, except as otherwise hereinafter provided, the re-paid
as drawback, if-".]

(a) the goods are identified to the satisfaction of the
[Assistant Commissiner of Customs] as the goods which were
imported; and

(b) the goods are entered for export within two years from
the date of payment of duty on the importation thereof:

Provided that in any particular case the aforesaid period of two years may, on sufficient cause being shown, be extended by the Board by such further period as it may deem fit.

(2) Notwithstanding anything contained in sub-section (1), the rate of drawback in the case of goods which have been used after the importation thereof shall be such as the Central Government, having regard to the duration of use, depreciation in value and other relevant circumstances, may, by notification in the Official Gazette, fix.

4["(3) The Central Government may make rules for the purpose of carr- ying out the provisions of this section and, in particular, may such regulations may-

-----------------------------------------------------------------------

1. Subs. by Act 11 of 1983, s.51.

2. Subs. by Act 80 of 1985, s.6.

3. Subs. by Act 55 of 1991, s.9 (w.e.f. 23-12-1991).

4. Subs. by Act 22 of 1995, S. 60.

-----------------------------------------------------------------------

1206

(a) provide for the manner in which the identity of goods impo-
rted in different consignments which are ordinarily stored tog-
ether in bulk, may be established;

(b) specify the goods which shall be deemed to be not
capable of being easily identified and

(c) Provide for the manner and the time within in which a claim
for payment of drawback is to be filed."]

(4) For the purposes of this section-

(a) goods shall be deemed to have been entered for export
on the date with reference to which the rate of duty is
calculated under section 16 ;

(b) in the case of goods assessed to duty provisionally
under section 18, the date of payment of the provisional duty
shall be deemed to be the date of payment of duty.

75.
Drawback on imported materials used in the manufacture of goods whichare exported.

75.Drawback on imported materials used in the manufacture of goods which are exported. (1) Where it appears to the Central Government that in respect of goods of any class or description
5[manufactured, processed or on which any operation as been carried out in India] 2["being goods which have been entered for export and in respect of which an order permitting the clearance and loading thereof for exportation has been made under section 51 by the proper officer] 3["or being goods entered for export by post under section 82 and in respect of which an order permitting clearance for exportation has been made by the proper officer"] a drawback should be allowed of duties of customs chargeable under this Act on any imported materials of a class or description used in the 5[manufacture processing of such goods or carrying out any operation on such goods] the Central Government may, by notification in the Official Gazette, direct that drawback shall be allowed in respect of such goods in accordance with, and subject to, the rules made under sub-section (2);

4["provided that no drawback shall be allowed under this sub- section in respect of any of the aforesaid goods which the Central Government may, by rules made under subsection (2), specify, if the export value of such goods or class of goods is less than the value of the imported materials used in the manufacture of such goods or class of goods, or is not more than such percentage of the value of the imported materials used in the manufacture of such goods or class of goods as the Central Government may, by notification in the Official Gazette, specify in this behalf:

Provided further that where any drawback has been allowed on any goods under this sub-section and the sale proceeds in respect of such goods are not received by or on behalf of the exporter in India within the time allowed under the Foreign Exchange Regulation Act, 1973, such drawback shall be deemed never to have been allowed and the Central Government may, by rules made under sub-section (2), specify the procedure for the recovery or adjustment of the amount of such drawback."]

1["(1A) Where it appears to the Central Government that the quint of a particular material imported into India is more than the total. quantity of like material that has been used in the goods 5[manufactu- red, processed or on which any operation has been carried out in India] and exported outside India,. then, the Central Government may, by notification in the Official Gazette, declare that so, much of the material as is contained in the goods exported shall, for the, purpose of sub-section (1), be deemed to be imported material”.]

(2) The Central Government may make rules for the purpose of carrying out the provisions of sub-section (1) and, in particular, such rules may provide-

5[(a) for the payment of drawback equal to the amount of duty
actually paid on the imported materials used in the
manufacture of or processing of the goods or carriying out
any operation on the goods or as is specified in the rules, as
the average amount of duty paid on the materials of that
class or description used in the manufacture or processing
of export goods or carrying out any operation on export goods
goods of that class or description either by manufacturers
generally or by persons processing or carrying on any operation
generally or by any particular manufacturer or particular pe-
rson carrying on any process or other operation,and interest,
if any, payable thereon;"]

4["(aa) for specifying the goods in respect of which no
drawback shall be allowed;

(ab) for specifying the procedure for recovery or adjustment
of the amount of any drawback which had been allowed under
sub-section (1)",the words "or interest chargeable thereon ]

(b) for the production of such certificates, documents and
other evidence in support of each claim of drawback as may be
necessary ;

(c) for requiring the 5[manufacturer or the person carry on
any process or other operation] to give access to every
part of his 5[manufactory to any officer of customs specially
authorised in this behalf by the Assistant Commissiner of
Customs to enable such authorised officer to inspect the
processes of 5[manufacture, process or any other operations
carried out] and to verify by actual check or
otherwise the statements made in support of the claim for
drawback.

5[(d) for the manner and the time within which the claim for
payment of drawback may be filed;]

5[(3) The power to make rules confered by sub-section (2)
shall include the power to give drawback with retrospective
effect from a date not earlier than the date of changes in
the rates of duty on inputs and export goods]

———————————————————————-

1. Ins. & Subs. by Act 25 of 1978, s.10 (w.e.f. 1-7-1978).

2. Subs. by Act 11 of 1983, s.52.

3. Ins. by Act 80 of 1985, s.7 (w.e.f. 13-5-1983).

4. Ins. by Act 49 of 1991, s.120.

———————————————————————–

1207

76.
Prohibition and regulation of drawback in certain cases.

76. Prohibition and regulation of drawback in certain cases. (1) Notwithstanding anything hereinbefore contained, no drawback shall be allowed-

(a) 1* * * * *

(b) in respect of any goods the market-price of which is less than the amount of drawback due thereon;

(c) where the drawback due in respect of any goods is less than
1[fifty rupees]

(2) Without prejudice to the provisions of sub-section (1), if the Central Government is of opinion that goods of any specified description in respect of which drawback may be claimed under this Chapter are likely to be smuggled back into India, it may, by notification in the Official Gazette, direct that drawback shall not be allowed in respect of such goods or may be allowed subject to such restrictions and conditions as may be specified in the notification.

 SPECIAL PROVISIONS REGARDING BAGGAGE, GOODS IMPORTED OR EXPORTED BY POST, AND STORES77.Declaration by owner of baggage. The owner of any baggage shall, for the purpose of clearing it, make a declaration of its contents to the proper officer.

78.Determination of rate of duty and tariff valuation in respect of baggage. The rate of duty and tariff valuation, if any, applicable to baggage shall be the rate and valuation in force on the date on which a declaration is made in respect of such baggage under section
77.

79. Bona fide baggage exempted from duty. (1) The proper officer may, subject to any rules made under sub-section (2), pass free (if duty-

(a) any article in the baggage of a passenger or a member
of the crew in respect of which the said officer is satisfied
that it has been in his use for such minimum period as may be
specified in the rules;

(b) any article in the baggage of a passenger in respect of
which the said officer is satisfied that it is for the use of

———————————————————————–

1. Omitted & Subs. by Act 11 of 1983, s.53.

2. Ins. by Act 22 of 1995, S. 62

———————————————————————–

1208

the passenger or his family or is a bona fide gift or sou-
venir ; provided that the value of each such article and the
total value of all such articles does not exceed such limits
as may be specified in the rules.

(2) The Central Government may make rules for the purpose of carrying out the provisions of this section and, in particular, such rules may specify-

(a) the minimum period for which any article has been used
by a passenger or a member of the crew for the purpose of
clause (a) of sub-section (1) ;

(b) the maximum value of any individual article and the
maximum total value of all the articles which may be passed
free of duty under clause (b) of sub-section (1) ;

(c) the conditions (to be fulfilled before or after
clearance) subject to which any baggage may be passed free of
duty.

(3) Different rules may be made under sub-section (2) for different classes of persons.

80. Temporary detention of baggage. Where the baggage of a passenger contains any article which is dutiable or the import of which is prohibited and in respect of which a true declaration has been made under section 77, the proper officer may, at the request of the passenger, detain such article for the purpose of being returned to him on his leaving India. 1[and if for any reason, the passenger is not able to collect the article at the time of his leaving India, the the article may be returned to him through any other passenger author- ised by him and leaving India or as cargo consigned in his name"]

81.Regulations in respect of baggage. The Board may make regulations,-

(a) providing for the manner of declaring the contents of
any baggage;

(b) providing for the custody, examination, assessment to
duty and clearance of baggage ;

(c) providing for the transit or transhipment of baggage
from one customs station to another or to a place outside
India.

Goods imported or exported by post

82.Label or declaration accompanying goods to be treated as entry. In the case of goods imported or exported by post, any label or declaration accompanying the goods, which contains the description, quantity and value thereof, shall be deemed to be an entry for import or export as the case may be for the purposes of this Act.

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83.Rate of duty and tariff valuation in respect of goods imported or exported by post. (1) The rate of duty and tariff-value, if any, applicable to any goods imported by post shall be the rate and valuation in force on the date on which the postal authorities present to the proper officer a list containing the particulars of such goods for the purpose of assessing the duty thereon :

Provided that if such goods are imported by a vessel and the list of the goods containing the particulars was presented before the date of the arrival of the vessel, it shall be deemed to have been presented on the date of such arrival.

(2) The rate of duty and tariff-value, if any, applicable to any, goods exported by post shall be the rate and valuation in force on the date on which the exporter delivers such goods to the postal authorities for exportation.

84. Regulations regarding goods imported or to be exported by post. The Board may make regulations providing for-

(a) the form and manner in which an entry may be made in
respect of any specified class of goods imported or to be
exported by post, other than goods which are accompanied by a
label or declaration containing the description, quantity and
value thereof ;

(b) the examination, assessment to duty, and clearance of
goods imported or to be exported by post ;

(c) the transit or transhipment of goods imported by post,
from one customs station to another or to a place outside
India.

Stores

85. Stores may be allowed to be warehoused without assessment to duty. Where any imported goods are entered for warehousing an the importer makes and subscribes to a declaration that the good are to be supplied as stores to vessels or aircrafts without payment of import duty under this Chapter, the proper officer may permit the goods to be warehoused without the goods being assessed to duty.

86.Transit and transhipment of stores. (1) Any stores imported in a vessel or aircraft may, without payment of duty, remain on board such vessel or aircraft while it in India.

(2) Any stores imported in a vessel or aircraft may, with the per mission of the proper officer, be transferred to any vessel or aircraft as stores for consumption therein as provided in section 87 or section 90.

87.Imported stores may be consumed on board a foreign-going vessel or aircraft. Any imported stores on board a vessel or aircraft
(other than stores to which section 90 applies) may, without payment of duty, be consumed thereon as stores during the period such vessel or aircraft is a foreign-going vessel or aircraft.

88.Application of section 69 and Chapter X to stores. The provisions of section 69 and Chapter X shall apply to stores (other than those to which section 90 applies) as they apply to other goods, subject to the modifications that–

(a) for the words “exported to any place outside India ” or
the word ” exported “, wherever they occur, the words ” taken
on board any foreign-going vessel or aircraft as stores ”
shall be substituted ;

(b) in the case of drawback on fuel and lubricating oil.
taken on board any foreign-going aircraft as stores, sub-
section (1) of section 74 shall have effect as if for the
words ” ninety-eight per cent.”, the words “the whole” were
substituted.

89.Stores to be free of export duty. Goods produced or manufactured in India and required as stores on any foreign-going vessel or aircraft may be exported free of duty in such quantities as the proper officer may determine. having regard to the size of the vessel or aircraft, the number of passengers and crew and the length of the voyage or journey on which the vessel or aircraft is about to depart.

90.Concessions in respect of imported stores for the Navy. (1) Imported stores specified in subsection (3) may without payment of duty be consumed on board a ship of the Indian Navy.

(2) The provisions of section 69 and Chapter X shall apply to stores specified in sub-section (3) as they apply to other goods, subject to the modifications that–

(a) for the words ” exported to any place outside India ”
or the word exported ” wherever they occur, the words “taken
on board a ship of the Indian Navy” shall be substituted ;

(b) for the words ” ninety-eight per cent.” in subjection
(1) of section 74, the words ” the whole ” shall be
substituted.
(3) The stores referred to in sub-sections (1) and (2) are the following :–

(a) stores for the use of a ship of the Indian Navy ;

(b) stores supplied free by the Government for the use of
the crew of a ship of the Indian Navy in accordance with
their conditions of service.

CHAPTER XII

PROVISIONS RELATING TO COASTAL GOODS AND VESSELS CARRYING COASTAL GOODS
91.Chapter not to apply to baggage and stores. The provisions of this Chapter shall not apply to baggage and stores.

92.
Entry of coastal goods.

92.Entry of coastal goods. (1) The consignor of any coastal goods shall make an entry thereof by presenting to the proper officer a bill of coastal goods in the prescribed form.

(2) Every such consignor while presenting a bill of coastal goods shall, at the foot thereof , make and subscribe to a declaration as to the truth of the contents of such bill.

93.
Coastal goods not to be loaded until bill relating thereto is passed,etc.

93. Coastal goods not to be loaded until bill relating thereto is passed, etc. The master of a vessel shall not permit the loading of any coastal goods on the vessel until a bill relating to such goods presented under section 92 has been passed by the proper officer and has been delivered to the master by the consignor.

94.
Clearance of coastal goods at destination.

94.Clearance of coastal goods at destination. (1) The master of a vessel carrying any coastal goods shall carry on board the vessel all bills relating to such goods delivered to him under section 93 and shall, immediately on arrival of the vessel at any customs or coastal port, deliver to the proper officer of that port all bills relating to the goods which are to be unloaded at that port.

(2) Where any coastal goods are unloaded at any port, the proper officer shall permit clearance thereof if he is satisfied that they are entered in a bill of coastal goods delivered to him under sub- section (1).

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95.
Master of a coasting vessel to carry an advice book.

95.Master of a coasting vessel to carry an advice book. (1) The master of every vessel carrying coastal goods shall be supplied by the Customs authorities with a book to be called the “advice book”.

(2) The proper officer at each port of call by such vessel shall make such entries in the advice book as he deems fit, relating to the goods loaded on the vessel at that port.

(3) The master of every such vessel shall carry the advice book on board the vessel and shall on arrival at each port of call deliver it to the proper officer at that port for his inspection.

96.
Loading and unloading of coastal goods at customs port or coastal portonly.

96.Loading and unloading of coastal goods at customs port or coastal port only. No coastal goods shall be loaded on, or unloaded from, any vessel at any port other than a customs port or a coastal port appointed under section 7 for the loading or unloading of such goods.

97.
No coasting vessel to leave without written order.

97.No coasting vessel to leave without written order. (1) The master of a vessel which has brought or loaded any coastal goods at a customs or coastal port shall not cause or permit the vessel to depart from such port until a written order to that effect has been given by the proper officer.

(2) No such order shall be given until–

(a) the master of the vessel has answered the questions put
to him under section 38 ;

(b) all charges and penalties due in respect of that vessel
or from the master thereof have been paid or the payment
secured by such guarantee or deposit of such amount as the
proper officer may direct ;

(c) the master of the vessel has satisfied the proper
officer that no penalty is leviable on him under section 116
or the payment of any penalty that may be levied upon him
under that section has been secured by such guarantee or
deposit of such amount as the proper officer may direct ;

(d) the provisions of this Chapter and any rules and
regulations relating to coastal goods and vessels carrying
coastal goods have been complied with.

98.
Application of certain provisions of this goods, etc.

98.Application of certain provisions of this goods, etc. (1) Sections 33, 34 and 36 shall, so far as may be, apply to coastal goods as they apply to imported goods or export goods.

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(2) Sections 37 and 38 shall, so far as may be, apply to vessels carrying coastal goods as they apply to vessels carrying imported goods or export goods.

(3) The Central Government may, by notification in the Official Gazette, direct that all or any of the other provisions of Chapter VI and the provisions of section 45 shall apply to coastal goods or vessels carrying coastal goods subject to such exceptions and modi- fications as may be specified in the notification.

1[98A. Power to relax- 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 on subject to such conditions as may be specified in the notification, costal goods or vessel carrying costal goods from all or any of the provisions of this chapter.]

99.
Power to make rules in respect of coastal goods and coasting vessels.

99. Power to make rules in respect of coastal goods and coasting vessels. The Central Government may make rules for-

(a) preventing the taking out of India of any coastal goods
the export of which is dutiable or prohibited under this Act
or any other law for the time being in force ;

(b) preventing, in the case of a vessel carrying coastal
goods as well as imported or export goods, the substitution
of imported or export goods by coastal goods.

CHAPTER XIII

 SEARCHES, SEIZURE AND ARREST
100. Power to search suspected persons entering or leaving India, etc. (1) If the proper officer has reason to believe that any person to whom this section applies has secreted about his person, any goods liable to confiscation or any documents relating thereto, he may search that person.

(2) This section applies to the following persons, namely:-

(a) any person who has landed from or is about to board or
is on board any vessel within the Indian customs waters’;

(b) any person who has landed from or is about to ,board,
or is on board a foreign-going aircraft ;

(c) any person who has got out of, or is about to get
into, or is in, a vehicle, which has arrived from, or is to
proceed to any place outside India ;

(d) any person not included in clause (a), (b) or (c) who
has entered or is about to leave India ;

(e) any person in a customs area.

101.
Power to search suspected persons in certain other cases.

101.Power to search suspected persons in certain other cases. (1) Without prejudice to the provisions of section 100, if an officer of customs empowered in this behalf by general or special

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order of the 2[Commissiner of Customs,] has reason to believe that any person has secreted about his person any goods of the description specified in sub-section (2) which are liable to confiscation, or documents relating thereto, he may search that person.

(2) The goods referred to in sub-section (1) are the following
:-

(a) gold ;

(b) diamonds;

(c) manufactures of gold or diamonds ;

(d) watches ;

(e) any other class of goods which the Central Government
may, by notification in the Official Gazette, specify.

102.
Persons to be searched may require to be taken before gazetted officerof customs or magistrate.

102.Persons to be searched may require to be taken before gazetted officer of customs or magistrate. (1) When any officer of customs is about to search any person under the provisions of section
100 or section 101, the officer of customs shall, if such person so requires, take him without unnecessary delay to the nearest gazetted officer of customs or magistrate.

(2) If such requisition is made, the officer of customs may detain the person making it until he can bring him before the gazetted officer of customs or the magistrate.

(3) The gazetted officer of customs or the magistrate before whom any such person is brought shall, if he sees no reasonable ground for search, forthwith discharge the person but otherwise shall direct that search be made.

(4) Before making a search under the provisions of section 100 or section 101, the officer of customs shall call upon two or more persons to attend and witness the search and may issue an order in writing to them or any of them so to do ; and the search shall be made in the presence of such persons and a list of all things seized in the course of such search shall be prepared by such officer or other person and signed by such witnesses.

(5) No female shall be searched by any one excepting a female.

103.
Power to screen or X-ray bodies of suspected persons for detectingsecreted good.

103. Power to screen or X-ray bodies of suspected persons for detecting secreted good. (1) Where the proper officer has reason to believe that any person referred to in sub-section (2) of section 100 has any goods liable to confiscation secreted inside his body. he may detain such person and produce him without unnecessary delay before the nearest magistrate.

(2) A magistrate before whom any person is brought under sub- section (1) shall, if he sees no reasonable ground for believing that

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such person has any such goods secreted inside his body, forthwith discharge such person.

(3) Where any such magistrate has reasonable ground for believ- ing that such person has any such goods secreted inside his body and the magistrate is satisfied that for the purpose of discovering such goods it is necessary to have the body of such person screened or X- rayed, he may make an order to that effect.

(4) Where a magistrate has made any order under sub-section (3), in relation to any person, the proper officer shall, as soon as practicable, take such person before a radiologist possessing quali- fications recognized by the Central Government for the purpose of this section, and such person shall allow the radiologist to screen or X- ray his body.

(5) A radiologist before whom any person is brought under sub- section (4) shall, after screening or X,-raying the body of such person, forward his report, together with any X-ray pictures taken by him, to the magistrate without unnecessary delay.

(6) Where on receipt of a report from a radiologist under sub-section
(5) or otherwise, the magistrate is satisfied that any person has any goods liable to confiscation secreted ins-de his body, he may direct that suitable action for bringing out such goods be taken on the advice and under the supervision of a registered medical practitioner and such person shall be bound to comply with such direction:

Provided that in the case of a female no such action shall be taken except on the advice and under the supervision of a female registered medical practitioner.

(7) Where any person is brought before a magistrate under this section, such magistrate may for the purpose of enforcing the pro- visions of this section order such person to be kept in such custody and for such period as he may direct.

(8) Nothing in this section shall apply to any person referred to in sub section (1), who admits that goods liable to confiscation are secreted inside his body, and who voluntarily submits himself for suitable action being taken for bringing out such goods.

Explanation.-For the purposes of this section, the expression it registered medical practitioner ” means any person who holds a qualification granted by an authority specified in the Schedule to the Indian Medical Degrees Act, 1916, (7 of 1916.) or notified under section 3 of that Act. or by an authority specified in any of the Schedules to the Indian Medical Council Act, 1956. (102 of 1956.)

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104.
Power to arrest.

104. Power to arrest. (1) If an officer of customs empowered in this behalf by general or special order of the 1[Commissiner of Custo- ms] has reason to believe that any person in India or within the Indian customs waters has been guilty of an offence punishable under section
135, he I may arrest such person and shall, as soon as may be, inform him of the grounds for such arrest.

(2)Every person arrested under sub-section (1) shall, without unnecessary delay, he taken to a magistrate.

(3)Where an officer of customs has arrested any person under sub- section (1), he shall, for the purpose of releasing such person on bail or otherwise, have the same powers and be subject to the same provisions as the officer-in-charge of a police-station has and is subject to under the Code of Criminal Procedure, 1898 (5 of 1898).

(4)Notwithstanding anything contained in the Code of Criminal Procedure, 1898, (5 of 1898) an offence under this Act shall not be c- ognizable.

105.
Power to search premises.

105.Power to search premises. (1) If the 2[Assistant Commissiner of Customs,] or in any area adjoining the land frontier or the coast of India an officer of customs specially empowered by name in this behalf by the Board, has reason to believe that any goods liable to confiscation, or any documents or things which in his opinion will be useful for or relevant to any proceeding under this Act, are secreted in any place, he may authorise any officer of customs to search or may himself search for sue goods, documents or things.

(2)The provisions of the Code of Criminal Procedure, 1898, (5 of
1898) relating to searches shall, so far as maybe, apply to searches under this section subject to the modification that sub-section (5) of section 165 of the said Code shall have effect as if for the word
“Magistrate”, wherever it occurs, the words 3[Commissiner of Customs] were substituted.

106.
Power to stop and search conveyances.

106.Power to stop and search conveyances. (1) Where the proper officer has reason to believe that any aircraft, vehicle or animal in India or any vessel in India or within the Indian customs waters has been, is being, or is about to be, used in the smuggling of any goods or in the carriage of any goods which have been smuggled, he may at any time stop any such vehicle, animal or vessel or, in the case of an aircraft, compel it to land, and-

(a) rummage and search any part of the aircraft, vehicle or
vessel ;

(b) examine and search any goods in the aircraft, vehicle
or vessel or on the animal;

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(c) break open the lock of any door or package for
exercising the powers conferred by clauses (a) and (b), if
the keys are withheld.

(2) Where for the purposes of sub-section (1)-

(a) it becomes necessary to stop any vessel or compel any
aircraft to land, it shall be lawful for any vessel or
aircraft in the service of the Government while flying her
proper flag and any authority authorised in this behalf by
the Central Government to summon such vessel to stop or the
aircraft to land, by means of an international signal code or
other recognized means, and thereupon such vessel shall
forthwith stop or such aircraft shall forthwith land and if
it falls to do so, chase may be given thereto by any vessel
or aircraft as aforesaid and if after a gun is fired as a
signal the vessel fails to stop or the aircraft fails to
land, it may be fired upon ;

(b) it becomes necessary to stop any vehicle or animal, the
proper officer may use all lawful means for stopping it, and
where such means fail, the vehicle or animal may be fired
upon.

106A
Power to inspect. 1[106A. Power to inspect. Any proper officer authorised in thisbehalf by the 2[Commissiner of Customs] may, for the purpose ofascertaining whether or not the requiremen

107.
Power to examine persons.

107.Power to examine persons. Any officer of customs empowered in this behalf by general or special order of the [Commissiner of Customs] may, during the course of any enquiry in connection with the smuggling of any goods,-

(a) require any person to produce or deliver any document
or thing relevant to the enquiry ;

(b) examine any person acquainted with the facts and
circumstances of the case.

———————————————————————-

1 Ins. by Act 12 of 1969, s.3 (w.e.f. 3-1-1969).
———————————————————————-

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108.
Power to summon persons to give evidence and produce documents.

108.Power to summon persons to give evidence and produce documents. (1) Any gazetted officer of customs shall have power to summon any person whose attendance he considers necessary either to give evidence or to produce a document or any other thing in any inquiry which such officer is making in connection with the smuggling of any goods.

(2) A summons to produce documents or other things may be for the production of certain specified documents or things or for the production of all documents or things of a certain description in the possession or under the control of the person summoned.

(3) All persons so summoned shall be bound to attend either in person or by an authorised agent, as such officer may direct ; and all persons so summoned shall be bound to state the truth upon any subject respecting which they are examined or make statements and produce such documents and other things as may be required:

Provided that the exemption under section 132 of the Code of Civil Procedure, 1908 (5 of 1908), shall be applicable to any requisi- tion for attendance under this section.

(4) Every such inquiry as aforesaid shall be deemed to be a judicial proceeding within the meaning of section 193 and section 228 of the Indian Penal Code (45 of 1860).

109.
Power to require production of order permitting clearance of goodsimported by land.

109. Power to require production of order permitting clearance of goods imported by land. Any officer of customs appointed for any area adjoining the land frontier of India and empowered in this behalf by general or special order of the Board,may require any person in possession of any goods which such officer has reason to believe to have been, imported into India by land, to produce the order made under section 47 permitting clearance of the goods;

provided that nothing in this section shall apply to any imported goods passing from a land ‘frontier to a land customs station by a route appointed under clause (c) of section 7.

110.
Seizure of goods documents and things.

110.Seizure of goods documents and things. (1) If the proper has reason to believe that any goods are liable to confiscation under this Act, he may seize such goods :

Provided that where it is not practicable to seize any such goods, the proper officer may serve on the owner of the goods an order that he shall not remove, part with, or otherwise deal with the goods except with the previous permission of such officer.

(1A) The Central Government may, Having regard to the perishable or hazardous nature of any goods, depreciation in the value of the goods with the passage of time, constraints of storage space for the goods or any other relevant considerations, by notification in the Official Gazette, specify the goods or class of goods which shall, as soon as may be after its seizure under sub-section (1), be disposed of by the proper officer in such manner as the Central Government may, from time to time, determine after following the procedure hereinafter specified.

(1B) Where any goods, being goods specified under sub-section
(1A), have been seized by a proper officer under sub-section (1), he shall prepare an inventory of such goods containing such details relating to their description, quality, quantity, mark, numbers, country of origin and other particulars as the proper officer may consider relevant to the identity of the goods in any proceeding under, this Act and shall make an application to a Magistrate for the purpose of-

(a) certifying the correctness of the inventory so
prepared; or

(b) taking, in the presence of the Magistrate, photographs
of such goods, and certifying such photographs as true; or

(c)allowing to draw representative samples of such goods, in
the presence of the Magistrate, and certifying the
correctness of any list of samples so drawn.

(1C) Where an application is made under sub-section (lB), the Magistrate shall, as soon as may be, allow the application.]

(2) Where any goods are seized under sub-section (1) and no notice in respect thereof is given under clause (a) of section 124 within six months of the seizure of the goods, the goods shall be returned to the person from whose possession they were seized:

———————————————————————-

1. Ins. by Act 80 of 1985, s.8.

———————————————————————-

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Provided that the aforesaid period of six months may, on sufficient cause being shown, be extended by the [Commissiner of Cust- oms] for a period not exceeding six months.

(3) The proper officer may seize any documents or things which, in his opinion, will be useful for, or relevant to, any proceeding under this Act.

(4) The person from whose custody any documents are seized under sub-section (3) shall be entitled to make copies thereof or take extracts therefrom in the presence of an officer of customs.

CHAPTER XIV

CONFISCATION OF GOODS AND CONVEYANCES AND IMPOSITION OF PENALTIES

111.Confiscation of improperly imported goods, etc. The following goods brought from a place outside India shall be liable to confiscation;-

(a) any goods imported by sea or air which are unloaded or
attempted be unloaded at any place other than a customs
port or customs airport appointed under clause (a) of section
7 for the unloading of such goods ;

(b) any goods imported by land or inland water through any
route other , than a route specified in a notification issued
under clause ( c) of section 7for the import of such goods;

(c) any dutiable or prohibited goods brought into any bay,
gulf, creek or tidal river for the purpose of being landed at
a place other than a customs port;

(d) any goods which are imported or attempted to be
imported or are brought within the Indian customs waters for
the purpose of being imported, contrary to any prohibition
imposed by or under this Act or any other law for the time
being in force;

(e) any dutiable or prohibited goods found concealed in any
manner in any conveyance;

(f)any dutiable or prohibited goods required to be mentioned,
under the regulations in an import manifest or import report
which are not so mentioned;

(g) any dutiable or prohibited goods which are unloaded
from a conveyance in contravention of the provisions of
section

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32, other than goods inadvertently unloaded but included in
the record kept under’ sub-section (2) of section 45 ;

(h)any dutiable or prohibited goods unloaded or attempted to
be unloaded in contravention of the provisions of section 33
or section 34 ;

(i)any dutiable or prohibited goods found concealed in any
manner in any package either before or after the unloading
thereof;

(j)any dutiable or prohibited goods removed or attempted to
be removed from a customs area or a warehouse without the
permission of the proper officer or contrary to the terms of
such permission;

(k)any dutiable or prohibited goods imported by land
inrespect of which the order permitting clearance of the
goods required to be produced under section 109 is not
produced or which do not correspond in any material
particular with the specification contained therein;

(l)any dutiable or prohibited goods which are not included or
are in excess of those included in the entry made under this
Act, or in the case of baggage in the declaration made under
section 77 ;

(m) 2[ any goods which do not correspond in respect of value
or in any other particular] with the entry made under this
Act or in the case of baggage with the declaration made under
section 77 in respect thereof;

(n) any dutiable or prohibited goods transitted with or
without transhipment or attempted to be so transitted in
contravention of the provisions of Chapter VIII;

(o)any goods exempted, subject to any condition, from duty or
any prohibition in respect of the import thereof under this
Act or any other law for the time being in force, in respect
of which the condition is not observed unless the non-
observance of the condition was sanctioned by the proper
officer.

1[(p) any notified goods in relation to which any provisions
of Chapter IVA or of any rule made under this Act for
carrying out the purposes of that Chapter have been
contravened.]

———————————————————————-
1 Ins.,by Act 12 of 1969, s. 4 (w.e.f. 3-1-1969).

2 Subs. by Act 36 of 1973, s. 2
———————————————————————-

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112.
Penalty for improper importation of goods, etc.

112. Penalty for improper importation of goods, etc. Any person,-

(a)who, in relation to any goods, does or omits to do any act
which act or omission would render such goods liable to
confiscation under section 111, or abets the doing or
omission of such an act, or

(b)who acquires possession of or is in any way concerned in
carrying, removing, depositing, harbouring, keeping, con-
cealing, selling or purchasing, or in any other manner
dealing with any goods which he knows or has reason to
believe are liable to confiscation under section 111.
shall be liable-

(i)in the case of goods in respect of which any prohibition
is in force under this Act or any other law for the time
being in force, to a penalty not exceeding five times the
value of the goods or one thousand rupees, whichever is the
greater;

(ii) in the case of dutiable goods, other than prohibited
goods, to a penalty not exceeding five times the duty sought
to be evaded on such goods or one thousand rupees, whichever
is the greater;

1(iii) in the case of goods in respect of which the value
stated in entry, made,under this Act or in the case of baggage,
in the declaration made under section 77 (in either case
hereafter in this section referred to as the declared value)
is higher than the value thereof, to a penalty not exceeding
five times the difference between the declared value and the
value thereof or one thousand rupees, whichever is the
greater;

(iv) in the case of goods falling both under clauses (i) and
(iii), to a penalty not exceeding five times the value of the
goods& or five times the difference between the declared
value and the value thereof or one thousand rupees, whichever
is the highest;

(v)in the case of goods falling both under clauses (ii) and
(iii)to a penalty not exceeding five times the duty sought to
be evaded on such goods or five times the difference between
the declared value and the value thereof or one thousand
rupees, whichever is the highest.]

113.
Confiscation of goods attempted to be improperly exported, etc.

113.Confiscation of goods attempted to be improperly exported, etc. The following export goods shall be liable to confiscation

(a) any goods attempted to be exported by sea or air from
any place other than a customs port or a customs airport
appointed for the loading of such goods;

(b)any goods attempted to be exported by land or inland water
through any route other than a route specified in a
notification issued under clause (c) of section 7 for, the
export of such goods;

(c) any dutiable Or prohibited goods brought near the land
frontier or the coast of India or near any bay, gulf, creek
or tidal river for the purpose of being exported from a place
other than a land-customs station or a customs port appointed
for the loading of such goods;

(d)any goods attempted to be exported or brought within the
limits of an customs area for the purpose of being exported,
contrary to any prohibition imposed by or under this Act or
any other-law for the time being in force;
———————————————————————-
1 Ins. by Act 36 of 1973, S. 3
———————————————————————-

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(e)any dutiable or prohibited goods found concealed in a
package which is brought within the limits of a customs area
for the purpose of exportation ;

(f)any dutiable or prohibited goods which are loaded or
attempted to be loaded in contravention of the provisions of
section 33 or section 34 ;

(g)any dutiable or prohibited goods loaded or attempted to be
loaded on any conveyance, or water-borne, or attempted to be
water-borne for being loaded on any vessel, the eventual
destination of which is a place outside India, without the
permission of the proper officer;

(h) any dutiable or prohibited goods which are not included
or are in excess of those included in the entry made under
this Act, or in the, case of *baggage in the declaration made
under section 77

(i)any dutiable or prohibited goods 2[or goods entered for
exportation under claim for drawback] which do not correspond
in any material particular with the entry made under this
Act or in the case of baggage with the declaration made under
section 77 in respect thereof ;

3["(ii) any goods entered for exportation under claim for
drawback which do not correspond in any material particular
with any information furnished by the exporter or
manufacturer under this Act in relation to the fixation of
rate of drawback under section 75".]

(j)any goods on which import duty has not been paid and which
are entered for exportation under a claim for drawback under
section 74;

(k)any goods cleared for exportation under a claim for draw
back which are not loaded for exportation on account of any
wilful act, negligence or default of the exporter, his agent
or employee, or which after having been loaded for
exportation are unloaded without the permission of the proper
Officer.

1((l) any specified goods in relation to which any provisions
of Chapter IVB or of any rule made under this Act for
carrying out the purposes of that Chapter have been
contravened.]

114.
Penalty for attempt to export goods improperly, etc.

114.Penalty for attempt to export goods improperly, etc. Any person who in relation to any goods, does or omits to do any act which act or omission would render such goods liable to confiscation under section 113, or abets the doing or omission of such an act, shall be liable,-

(i) in the case of goods in respect of which any
prohibition is

———————————————————————-
1 Ins. by Act 12 of 1969 s. 5 (w.e.f 3-1-1969).

2 Ins. by Act 25 of 1978, s. 11 (w.e.f. 1.7. 1978)

3 Ins. by Act 49 of 1991, S. 120.
———————————————————————-

1222A

in force, to a penalty not exceeding five times the
value of the goods or one thousand rupees, whichever is the
greater;

(ii) in the case of dutiable goods, other than prohibited
goods. to a penalty not exceeding five times the duty sought
to be evaded on such goods or one thousand rupees, whichever
is the greater ;

(iii) in the case of goods under claim for drawback, to a
penalty not exceeding five times the amount of drawback
claimed or one thousand rupees, whichever is the greater.

115.
Confiscation of conveyances.

115. Confiscation of conveyances. (1) The following conveyances shall be liable to confiscation:-

(a)any vessel which is or has been within the Indian customs
waters, any aircraft which is or has been in India, or any
vehicle which is or has been in a customs area, while
constructed, adapted, altered or fitted in any manner for the
purpose of concealing goods

1223

(b)any conveyance from which the whole or any part of the
goods is thrown overboard, staved or destroyed so as to
prevent seizure by an officer of customs ;

(c)any conveyance which having been required to stop or land
under section 106 fails to do so, except for good and
sufficient cause ;

(d) any conveyance from which any warehoused goods cleared
for exportation, or any other goods cleared for exportation
under a claim for drawback, are unloaded, without the
permission of the proper officer ;

(e)any conveyance carrying imported goods which has entered
India and is afterwards found with the whole or substantial
portion of such goods missing, unless the master of the
vessel or aircraft is able to account for the loss of, or
deficiency in, the goods.

(2) Any conveyance or animal used as a means of transport in the smuggling of any goods or in the carriage of any smuggled goods shall be liable to confiscation, unless the owner of the conveyance or animal proves that it was so used without the knowledge or connivance of the owner himself, his agent, if any, and the person-in-charge of the conveyance or animal (1 * * *

Provided that where any such conveyance is used for the carriage of goods or passengers for hire, the owner of any conveyance shall be given an option to pay In lieu of the confiscation of the conveyance a fine not exceeding the market price of the goods which are sought to be smuggled or the smuggled goods, as the case may be.

Explanation.-In this section. ” market price ” means market price at the date when the goods are seized.

116.
Penalty for not accounting for goods.

116.Penalty for not accounting for goods. If any goods loaded in a conveyance for importation into India, or any goods transhipped under the provisions of this Act or coastal goods carried in a conveyance, are not unloaded at their place of destination in India, or if the quantity unloaded is short of the quantity to be unloaded at that destination, and if the failure to unload or the deficiency is not accounted for to the satisfaction

———————————————————————-
1 Omitted by Act 26 of 1988, S. 79.
———————————————————————-

1224.

of the [Assistant Commissiner of Customs,] the person-in-charge of the conveyance shall be liable,-

(a)in the case of goods loaded in., a conveyance for
importation into India or goods transhipped under the
provisions of this Act, to a penalty not exceeding twice the
amount of duty that would have been chargeable on the goods
not unloaded or the deficient goods, as the case may be, had
such goods been imported ;

(b)in the case of coastal goods, to a penalty not exceeding
twice the amount of export duty that would have been
chargeable on the goods not unloaded or the deficient goods,
as the case may be, had such goods been exported.

117.
Penalties for contravention, etc., not expressly mentioned.

117.Penalties for contravention, etc., not expressly mentioned. Any person who contravenes any provision of this Act or abets any such contravention or who fails to comply with any provision of this Act with which it was his duty to comply, where no express penalty is elsewhere provided for such contravention or failure, shall be liable to a penalty not exceeding one thousand rupees.

118.
confiscation of packages and their contents.

118. confiscation of packages and their contents. (a) Where any goods imported in a package are liable to confiscation, the package and any other goods imported in that package shall also be liable to confiscation.

(b) Where any goods are brought in a package within the limits of a customs area for the purpose of exportation and are liable to confiscation, the package and any other goods contained therein shall also be liable to confiscation.

119.
Confiscation of goods used for concealing smuggled goods.

119. Confiscation of goods used for concealing smuggled goods. Any goods used for concealing smuggled goods shall also be liable to confiscation.

Explanation.-In this section, “goods” does not include a con- veyance used as a means of transport.

120.
Confiscation of smuggled goods notwithstanding any change in from,etc.

120. Confiscation of smuggled goods notwithstanding any change in form, etc. (1) Smuggled goods may be confiscated notwithstanding any change in their form.

(2) Where smuggled goods are mixed with other goods in such manner that the smuggled goods cannot be separated from such other goods, the whole of the goods shall be liable to confiscation:

Provided that where the owner of such goods proves that he had no knowledge or reason to believe that they included any smuggled

1225

goods, only such part of the goods the value of which is equal to the value of the, smuggled goods shall be liable to confiscation.

121.
Confiscation of sale-proceeds of smuggled goods.

121. Confiscation of sale-proceeds of smuggled goods. Where any smuggled goods are sold by a person having knowledge or reason to believe that the goods are smuggled goods, the sale-proceeds thereof shall be liable to confiscation.

122.
Adjudication of confiscations and penalties.

122. Adjudication of confiscations and penalties. In every case under this Chapter in which anything is liable to confiscation or any person is liable to a penalty, such confiscation of or penalty may be adjudged,-

(a) without limit, by a [Collector of Customs] or a [Deputy
Collector of Customs;]

2["(b) where the value of the goods liable to confiscation
does not exceed [ fifty thousand]4, rupees by an [Assistant
collector of Customs."]

(c) where the value of the goods liable to confiscation does
not exceed two thousand five hundred rupees, by a gazetted
officer of customs lower in rank than an [Assistant Collector
of Customs.]

123.
Burden of proof in certain cases.

123. Burden of proof in certain cases. (1) Where any goods to which this section applies are seized under this Act in the reasonable belief that they Are smuggled goods, the burden of proving that they are not smuggled goods shall be-

(a) in a case where such seizure is made from the possession
of any person–

(i)on the person from whose possession the goods were seized;
and

(ii) if any person, other ‘than the person from whose
possession the goods were seized, claims to be the owner
thereof, also on such other person;

(b) in any other case, on the person, if any, who claims to
be the owner of, the goods so seized.”]

(2)This section shall apply to gold [and manufactures thereof]3 watches, and any, other class of goods which the Central Government may by notification in the Official Gazette specify.

124.
Issue of show-cause notice before confiscation of goods, etc.

124.Issue of show-cause notice before confiscation of goods, etc. No order confiscating any goods or imposing any penalty on any person shall be made under this Chapter unless the owner of the goods or such person-

(a) is given a notice in writing informing him of the
grounds on which it is proposed to confiscate the goods or to
impose a penalty;

(b)is given an opportunity of making a representation in
writing within such reasonable time as may be specified in
the notice against the grounds of confiscation or imposition
of penalty mentioned therein ; and

———————————————————————-
1 Subs.by Act 36 of 1973, S. 4.

2 Subs. by Act 25 of 1978 , S. 12

3 Subs. by Act 40 of 1989, S. 2.

4 Subs. by Act 18 of 1992, s. 109
———————————————————————-

1226

(c)is given a reasonable opportunity of being heard in the
matter:

Provided that the notice referred to in clause (a) and the representation referred to in clause (b) may, at the request of the person concerned be oral.

125.
Option to pay fine in lieu of confiscation.

125. Option to pay fine in lieu of confiscation. (1) Whenever confiscation of any goods is authorised by this Act, the officer adjudging it may, in the case of any goods, the importation or exportation whereof is prohibited under this Act or under any other law for the time being in force and shall in the case of any other goods, give to the owner of the goods 8[ or, where such owner is not known the person from whose possession or custody such goods have been seized,"]an option to pay in lieu of confiscation such fine as the said officer thinks fit:

Provided that, without prejudice to the provisions of the provision to sub-section (2) of section 115, such fine shall not exceed the price of the goods confiscated, less in the case of imported goods duty chargeable thereon.

8[(2) Where any fine in lieu of confiscation of goods is imposed under sub-section (1),the owner of such goods or the person referred to in sub-section (1) shall, in addition, be liable to any duty and charges payable in respect of such goods."]

126.
On confiscation, property to vest in Central Government.

126.On confiscation, property to vest in Central Government. (1) When any goods are confiscated under this Act such goods shall thereupon vest in the Central Government.

(2) The officer adjudging confiscation shall take and hold possession of the confiscated goods.

127.
Award of confiscation or penalty by customs officers not to interfarewith other punishments.

127. Award of confiscation or penalty by customs officers not to interfare with other punishments. The award of any confiscation or penalty under this Act by an officer of customs shall not prevent the infliction of any punishment to which the person affected thereby is liable under the provisions of Chapter XVI of this Act or under any other law.

CHAPTER XV APPEALS

128. Appeals to Commissiner (Appeals). (1) Any person aggrieved by any decision or order passed under this Act by an officer of customs lower in rank than a [Commissiner of Customs] may appeal to the Commissiner (Appeals) within three months from the date of the communication to him of such decision or order:

Provided that the Commissiner (Appeals) may, if he, is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months, allow it to be presented within a further period of three months.

(2) Every appeal under this section shall be in such form and shall be verified in such manner as may be specified by rules made in behalf.

128A
Procedure in appeal. 128A. Procedure in appeal. (1) The [Commissiner
(Appeals)] shallgive an opportunity to the appellant to be heard if he so desires. (2) The [Commissiner (Appeals)] may, at

129.
Appellate Tribunal.

129.Appellate Tribunal. (1) The Central Government shall constitute an Appellate Tribunal to be called the Customs, Excise and Gold (Control) Appellate Tribunal consisting of as many judicial and technical members as it thinks fit to exercise the powers and discharge the functions conferred on the Appellate Tribunal by this Act.

(2) a judicial member shall be a person who has for at least ten years held a judicial office in the territory of India or who has been a member of the Central Legal service and has held a post Grade I of that service or any equilent or higer post for at least three years, or has been an advocate for at least ten years.

Explanation.-For the purposes of this sub-section,-

(i) in computing the period during which a person has held judicial office in the territory of India, there shall be included any period, after he has held any judicial office, during which the person has been advocate or has held the office of a member of a trubinal or any post, under the union or a State, requiring special knowledge of law;

(ii) in computing the period during which a person has been an advocate, there shall be included any period during which person has held a judicial office or the office of a member of a trubinal or any post, under the Union or a State, requiring special knowledge of law after he became an advocate.

(2A) A technical member shall be a person who has been a member of the Indian Customs and Central Excise Service, Group A and has held the post of 1(Commissiner of Customs) or Central Excise or any equivalent or higher post for at least three years.)

(3) The Central Government shall appoint one of the members of the Appellate Tribunal to be the President thereof.

(4) The Central Government may appoint one or more of the Appellate Tribunal to be the Vice-President, or as the case be,Vice- Presidents, thereof.

3["(4A) The Central Government may appoint one of the Vice- Presidents of the Appellate Tribunal to be the Senior Vice-President thereof."].

(5) 3[ The Senior Vice-President or a Vice-President ] Shall exercise such of the powers and perform such of the functions of the President as may be delegated to him by the President by a general or special order in writing.

129A. Appeals to the Appellate Tribunal. (1) Any person aggrieved by any of the following orders may appeal to the Appellate Tribunal against such order–

(a) a decision or order passed by the [Commissiner of
Customs] as an adjudicating authority;

(b) an order passed by the [Commissiner (Appeals)] under
section 128A;

(c) an order passed by the Board or the Appellate Collector
of Customs under section 128, as it stood immediately before
the appointed day;

(d) an order passed by the Board or the [Commissiner of
Customs] either before or after the appointed day, under
section 130, as it stood immediately before that day:

4[Provided that no appeal shall lie to the Appellate
Tribunal and the Appellate Tribunal shall not have
jurisdiction, to decide any appeal in respect of any order
referred to in clause (b) if such order relates to,-

(a) any goods imported or exported as baggage;

(b)any goods loaded in a conveyance for importation into
India, but which are not unloaded at their place of
destination in India,, or so much of the quantity of such
goods as has not been unloaded at any such destination if
goods unloaded at such destination are short of the quantity
required to be unloaded at that destination;

(c) payment of, drawback as provided in Chapter X, and the
rules made thereunder:
Provided further that"] the Appellate Tribunal may, in its descretion, refused to admit an appeal in respect of an order referred to in clause
(b) or clause (c) or clause (d) were-

(i) the value of the goods confiscated without option
having been given to the owner of the goods to pay a fine in
lieu of confiscation under section 125; or

(ii) in any disputed case, other than a case where the
determination of any question having a relation to the rate
of duty of customs or to the value of goods for purposes of
assessment is in issue or is one of the points in issue, the
difference in duty involved or the duty involved; or

(iii) the amount of fine or penalty determined by such order,
does not exceed 15[fifty thousand rupees]

4(1A) Every appeal against any order of the nature referred to in the first proviso to sub-section (1), which is pending immediately before the commencement of section 40 of the Finance Act,1984 ( 21 of-
1984), before the Appellate Tribunal and any matter arising out of or connected with such appeal and which is so pending shall stand tran- sferred on such commencement to the Central Government and the Central Government shall deal with such appeal or matter under section 129DD as if such appeal or matter were an application or a matter arising out of an application made to it under that section.”]

10["(2) The [Commissiner of Customs] may, if he is of opinion that an order passed by-

(a) the Appellate [Commissiner of Customs] under section 128,
as it stood immediately before the appointed day, or

(b) the [Commissiner of Customs] (Appeals) under section 128A,
is not legal or proper, direct the proper officer to appeal on
his behalf to the Appellate Tribunal or, as the case may be,
the Customs and Excise Revenues Appellate Tribunal established
under section 3 of the Customs and Excise Revenues Appellate
Tribunal Act, 1986, against such order.”]

(3) Every appeal under this section shall be filed within three months from the date on which the order sought to be appealed against is communicated to the Collector of Customs, or as the case may be the other party preferring the appeal.

(4) On receipt of notice that an appeal has been preferred under this section, the party against whom the appeal has been preferred may notwithstanding that he may not have appealed against such order or any part thereof, file, within forty-five days of the receipt of the notice a memorandum of cross-objections verified in such manner as may be

specified by rules made in this behalf against any part of appealed against and such memorandum shall be disposed of by the Appellate Tribunal as if it were an appeal presented within the time specified in sub-section (3).

(5) The Appellate Tribunal may admit an appeal or permit the filing of a memorandum of cross-objections after the expiry of the relevant period referred to in sub-section (3) or sub-section (4), if it is satisfied that there was sufficient cause for not presenting it within that period.

15["(6) An appeal to the Appellate, Tribunal shall be in such form and shall be verified in such manner as may be specified by rules made in this behalf and shall, in the case of an appeal made on or after the 1st day of June, 1993, irrespective of the date of demand of duty and interest or of levy of penalty in relation to which the appeal is made, be accompanied by a fee of,-

(a) where the amount of duty and interest demanded and
penalty levied by any officer of customs in the case to which
the appeal relates is one lakh rupees or less, two hundred
rupees;

(b) where the amount of duty and interest demanded. and
penalty levied by any officer of customs in the ease to which
the appeal relates is more than one lakh rupees, one thousand
rupees:

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

129B
Orders of Appellate Tribunal. 129B. Orders of Appellate Tribunal. (1) The Appellate Tribunalmay, after giving the parties to the appeal, an opportunity of beingheard, pass such orders thereon a

129E
Deposit, pending appeal, of 14[duty and interest] demanded or penaltylevied.
129E. Deposit, pending appeal, of 14[duty and interest] demandedor penalty levied. Where in any appeal under th

130.
Statement of case to High Court.

130.Statement of case to High Court. (1) The Collector of Customs or the other party may, within sixty days of the date upon which he is served with notice of an order under section 129B (not being an order relating, among other things to the determination of any question having a relation to the rate of duty of customs or to the value of goods for purposes of assessment).

by application in such form as may be specified by rule made in behalf, accompanied, where the application is made by the other part by a fee of two hundred rupees, require the Appellate Tribunal refer to the High Court any question of law arising out of such order and, subject to the other provisions contained in this section the Appellate Tribunal shall, within one hundred and twenty days of the receipt of such, application, draw up a statement of the case and refer it to the High Court:

Provided that the Appellate Tribunal may, if it is satisfied that the applicant was prevented by sufficient cause from presenting the application within the period hereinbefore specified, allow it to be presented within a further period not exceeding thirty days.

(2)On receipt of notice that an application has been made under sub-section (1), the person against whom such application has be made, may, notwithstanding that he may not have filed such an application, file, within forty-five days of the receipt of the notice, a memo- randum of cross-objections verified in such manner as may be specified by rules made in this behalf against any part of the order in relation to which an application for reference has been made and such memo- randum shall be disposed of by the Appellate Tribunal as if it were an application presented within the time specified in sub-section (1).

(3)If, on an application made under sub-section (1), the Appellate Tribunal refuses to state the case on the ground that no question of law arises, the Collector of Customs, or, as the case may be, the other party may, within six months from the date on which he is served with notice of such refusal, apply to the High Court and the High Court may, if it is not satisfied with the correctness of the decision of the Appellate Tribunal, require the Appellate Tribunal. to state the case and to refer it, and on receipt of any such requisition, the Appellate Tribunal shall state the case and refer it accordingly.

(4)Where in ‘the exercise of its powers under sub-section (3), the Appellate Tribunal refuses to state a case which it has, been required by an applicant to state, the applicant may, within thirty days from the date on which he receives notice of such refusal, withdraw his application and, if he does so, the fee, if any, paid by him shall be refunded.

130A
Statement of case to Supreme Court in certain cases. 130A. Statement of case to Supreme Court in certain cases. If,on an application made under section 130, the Appellate Tribunal is ofopinion

130B
Power of High Court or Supreme Court to require statement to be amend-ed.
130B. Power of High Court or Supreme Court to require statementto be amended. If the High Court or the Supreme C

130C
Case before High Court to be heard by not less than two judges. 130C. Case before High Court to be heard by not less than twojudges. (1) When any case has been referred to the High Court undersect

130D
Decision of High Court or Supreme Court on the case stated. 130D. Decision of High Court or Supreme Court on the case stated.(1) The High Court or the Supreme Court hearing any such case shalld

130F
Hearing before Supreme Court. 130F. Hearing before Supreme Court. (1) The provisions of theCode of Civil Procedure, 1908, relating to appeals to the SupremeCourt shall, so far as may be

131.
Sums due to be paid notwithstanding reference, etc.

131.Sums due to be paid notwithstanding reference, etc. Notwithstanding that a reference has been made to the High Court or the Supreme Court or an appeal has been preferred to the Supreme Court, sums due to the Government as a result of an order passed under sub-section (1) of section 129B shall be payable in accordance with the order so passed.

131A
Exclusion of time taken for copy. 131A. Exclusion of time taken for copy. In computing the periodof limitation specified for an or application under this Chapter, theday on which the order c

131B
Transfer of certain pending proceedings and transitional provisions. 131B. Transfer of certain pending proceedings and transitionalprovisions. (1) Every appeal which is pending immediately bef

CHAPTER XVI OFFENCES AND PROSECUTIONS

132. False declaration, false documents, etc. Whoever makes, signs or uses, or causes to be made, signed or used, any declaration, statement or document in the transaction of any business relating to the customs, knowing or having reason to believe that such declaration statement or document is false in any material particular, shall be punishable with imprisonment for a term which may extend to six months, or with fine, or with both.

133.
Obstruction of officer of customs.

133.Obstruction of officer of customs. If any person intentionally obstructs any officer of customs in the exercise of any powers conferred under this Act, such person shall be punishable with imprisonment for a term which may extends to six months or with fine, or with both.

134.
Refusal to be X-rayed.

134. Refusal to be X-rayed. If any person-

(a) resists or refuses to allow a radiologist to screen or
to take X-ray picture of his body in accordance with an order
made by a magistrate under section 103, or

(b)resists or refuses to allow suitable action being taken on
the advice and under the supervision. of a registered

1230

medical practitioner for bringing out goods liable to con-
fiscation secreted inside his body, as provided in section
103 ;
he shall be punishable with imprisonment for a term which may extend to six months, or with fine, or with both.

135.
Evasion of duty or prohibitions.

135.Evasion of duty or prohibitions. 1[(1)] Without prejudice to any action that may be taken under this Act, if any person–

(a)is in relation to any goods in any way knowingly concerned
in any fraudulent evasion or attempt at evasion of any duty
chargeable thereon or of any prohibition for the time being
imposed under this Act or any other law for the time being in
force with respect to such goods, or

(b) acquires possession of or is in any way concerned in
carrying, removing, depositing, harbouring, keeping, conceal-
ing, selling or purchasing or in any other manner dealing
with any goods which he knows or has reason to believe are
liable to confiscation under section 111,
he shall be punishable,-

(i) in the case of an offence relating to any of the
goods which section 123 applies and the market price where of
exceeds one lakh of rupees, with imprisonment for a term
which may extend to 2[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 less than 3[ three year]

(ii) in any other case, with imprisonment for a term which
may extend to 4[Three year], or with fine, or with both.

5["(2) If any Person convicted of an offence under this section or under sub-section (1) of section 136 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 less than 6[ one year].

(3) For the Purposes of sub-section (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 6[ one year] 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 which are the subject matter of 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 to the commission of the
offence; (iv) the age of the accused.”]

1. S. 135 renumbered as sub-section (1) thereof by Act 36 of 1973, s.
5.

2. Subs. by s. 5, ibid., for “five years”.

3. Subs. by Act 40 of 1989, s. 3, for “one year”.

4. Subs. by Act 36 of 1973, s. 5, for “two years”.

5. Ins. by s. 5, ibid.

6. Subs. by Act 25 of 1978, s. 16, for “six months” (w.e.f. 1-7-1978).

2[135A. Preparation. If a person makes preparation to export any goods in contravention of the provisions of this Act, and from the circumstances of the case it may be reasonably inferred that if not prevented by circumstances independent of his will, he is determined to carry out his intention to commit the offence, he shall be punishable with imprisonment for a term which may extend to three years, or with fine, or with both.

135B. 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 appeals against the orders of the court has expired without any appeal having been preferred, or such an appe- al, having been preferred, has been disposed of.

(3) The exprenses of any publication under sub-section (1) shall be recoverable from the convicted person as if it were were a fine im- posed by the court.]

136.
Offences by officers of customs.

136.Offences by officers of customs. (1) If any officer of customs enters into or acquiesces in any agreement to do, abstains from doing, permits, conceals or connives at any act or thing whereby any duty of custom leviable on any goods, or any prohibition for the time being in force under this Act or any other law for the time being in force with respect to any goods is or may be evaded, he shall be punishable with imprisonment for a term which may extend to 3[three year], or with fine, or with both.

(2) If any officer of customs,-

(a) requires any person to be searched for goods liable to
confiscation or any document relating thereto,without having
reason to believe that he has such goods or document secreted
about his person ; or

———————————————————————-
1 Renumbered, Subs. & ins. by Act 36 of 1973, S. S.

2 Ins. by S. 6, ibid.

3 Subs. by S. 7, ibid.

4 Subs. by Act 25 of 1978, S. 16 (w.e.f. 1.7. 1978).

5 Subs. by Act 40 of 1989, S. 3.
———————————————————————-

1231

(b)arrests any person without having reason to believe that
he has been guilty of an offence punishable under section 135
; or

(c)searches or authorises any other officer of customs to
search any place without having reason to believe that any
goods, documents or things of the nature referred to in
section 105 are secreted in that place,
he shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

(3) If any officer of customs, except in the discharge in good faith of his duty as such officer or in compliance with any requisition made under any law for the time being in force, discloses any particulars learnt by him in his official capacity in respect of any goods, he shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

137.
Cognizance of offences.

137. Cognizance of offences. (1) No court shall take cognizance of any offence under section 132, section 133. section 134 or section
135, except with the previous sanction of the 1[Commissiner of Custo- ms.]

(2) No court shall take cognizance of any offence under section
136,-

(a) where the offence is alleged to have been committed by an
officer of customs not lower in rank than 2[Assistant Commiss-
iner of Customs,] except with the previous sanction of the
Central Government;

(b)Where the offence is alleged to have been committed by, an
of customs lower in rank than 2[Assistant Commissiner Customs],
except with the previous sanction of the 1[Commissiner of
Customs.]

138.
Offences to be tried summarily.

138.Offences to be tried summarily. Notwithstanding anything contained in the 3Code of Criminal procedure, 1898 (5 of 1898), an offence under this Chapter other than an offence punishable 4[un- der clause (i) of sub-section (1) of section 135 or under sub-section
(2) of that section ] may be tried summarily by a magistrate.

5[138A. (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 Preponderance of probability

138B.Relevancy of statements under certain circumstances. (1) A statement made and signed by a person before any gazetted officer of customs during the course of any inquiry or proceeding under this Act shall be relevant, for the purpose of proving, in any prosecution for an offence under this Act, the truth of the facts which it contains,-

(a)when the person who made the statement is dead or cannot be found, or is incapable of giving evidence, or is kept out of the way by the adverse party, or whose presence cannot be obtained without an amount of delay or expense which, under the circumstances of the case, the court considers unreasonable; or

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

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

6[138C.Admissibility of micro films,fascimile copies of documents and computer printouts as documents and as evidence. (1) Notwithstanding anything contained in any other time being in force,-

(a) a micro film of a document or the reproduction of the image or images embodied in such micro film (whether enlarged or not) ; or

1. Subs. by Act 22 of 1995, s. 50, for "Collector of Customs".

2. Subs. by s. 50, ibid for "Assistant Collector of Customs".

3. See now the Code of Crimianl Procedure, 1973 (Act 2 of 1974).

4. Subs. by Act 36 of 1973, s. 8, for "under clause (i) of section 135".

5. Ss. 138A and 138B ins. by s. 9, ibid.

6. Ins. by Act 29 of 1988, s. 6(w.e.f. 1-7-1988).

(b) a facsimile copy of a document; or

(c) a statement contained in a document and included in a printed material produced by a computer (hereinafter referred to as a
"computer print out"), if the conditions mentioned in sub-section (2) and the other provisions contained in this section are satisfied in relation to the statement and the computer in question,

shall be deemed to be also a document for the purposes of this Act and the rules made thereunder and shall be admissible in any proceedings thereunder, without further proof or production of the original, '-as evidence of any contents of the original or of any fact stated therein of which direct evidence would be admissible.

(2) The conditions referred to in sub-section (1) in respect of a computer print out shall be the following, namely: -

(a) the computer print out containing the statement was Produced by the computer during the period over which. the computer was used regularly to store or process information for the Purposes of any activities regularly carried on over that period by the person having lawful control over the use of the computer;

(b) during the said period, there was regularly supplied to the computer in the ordinary course of the said activities, information of the kind contained in the statement or of the kind from which the information so contained is derived;

(c) throughout the material part of the said period, the computer was operating properly or, if not, then any respect in which it was not operating properly or was out of operation during that part of that period was not such as to affect the production of the document or the accuracy of the contents; and

(d) the information contained in the statement reproduces or is derived from information supplied to the computer in the ordinary course of the said activities.

(3) Where over any period, the function of storing or processing information for the purposes of any activities regularly carried on over that period as mentioned in clause (a) of sub-section (2) was regularly Performed by computers, whether-

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

(b) by different Computers operating in succession over that period; or

(c) by different combinations of computers operating in succession over that period; or

(d) in any other manner involving the successive operation over that period, in whatever order, of one or more computers and one or more combinations of computers,
all the computers used for that purpose during that period shall be treated for the purposes of this section as constituting a single com- puter; and references in this section to a computer shall be construed accordingly.

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

(a) identifying the document containing the statement and describing the manner in which it was produced;

(b) giving such particulars of any device involved in the production of that document as may be appropriate for the purpose of showing that the document was produced by a computer;

(c) dealing with any of the matters to which the conditions mentioned in sub-section (2) relate,

and purporting to be signed by a person occupying a responsible official position in relation to the operation of the relevant device or the management of the relevant activities (whichever is appropriate) shall be evidence of any matter stated in the certificate; and for the purposes of this sub-section it shall be sufficient for a matter to be stated to the best of the knowledge and belief of the person stating it.

(5) For the purposes of this section,-

(a) information shall be taken to be supplied to a computer if it is supplied thereto in any appropriate form and whether it is so supplied directly or (with or without human intervention) by means of any appropriate equipment;

(b) whether in the, course of activities carried on by any official, information is supplied with a view to its being, stored or processed for the purposes of those activities by a computer operated otherwise than in the course of those activities, that information, if duly supplied to that computer, shall be taken to be supplied to it in the course of those activities;

(c) a document shall be taken to have been produced by a computer whether it was produced by it directly or (with or without human intervention) by means of any appropriate equipment.

Explanation.-For the purposes of this section,-

(a) "computer" -means any device that receives, stores and processes data, applying stipulated processes to the information and supplying results of these processes; and

(b) any reference to information being derived from other information shall be a reference to its being derived therefrom by calculation, comparison or any other process.]

139.
Presumption as to documents in certain cases.

1[139. Presumption as to documents in certain cases. Where any do- cument-

(i) is produced by any person or has been seized from the custody or control of any person, in either case, under this Act or under any other law, or

(ii) has been received from any place outside India in the course of investigation of any offence alleged to have been committed by any person under this Act,
and such document is tendered by the prosecution in evidence against him or against him and any other person who is tried jointly with him, the court shall--

(a) presume, unless the contrary is proved, that the signature and every other part of such document which purports to be in the handwriting of any particular person or which the court may reasonably assume to have been signed by, or to be in the handwriting of, any particular person, is in that person's handwriting, and in the case of a document executed or attested, that it was executed or attested by the person by whom it purports to have been so executed or attested;

(b) admit the document in evidence, notwithstanding that it is not duly stamped, if such document is otherwise admissible in evidence;

(c) in a case falling under clause (i) also presume, unless the contrary is proved, the truth of the contents of such document.]

2[Explanation.--For the purposes of this section, "document" includes inventories, photographs and lists certified by a Magistrate sub-section (1C) of section 110.]

1. Subs. by Act 36 of 1973, s. 10, s. 139.

2. Ins. by Act 80 of 1985, S 11

1232

140.
Offences by companies.

140.Offences by companies. (1) If the person committing an offence under this Chapter is 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 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 such punishment provided in this Chapter if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Chapter 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 negligence 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 a body corporate and includes a firm or
other association of individuals ; and

1233.

(b) ” director”,in relation to a firm, means a partner in the
firm.

140A
Application of section 562 of the Code of Criminal Procedure, 1898, andof the the Probation of Offenders Act, 1958. 1[140A. Application of section 562 of the Code of CriminalProcedure, 1898

CHAPTER XVII MISCELLANEOUS

141. Conveyances and goods in a customs area subject to control of officers of customs. All conveyances and goods in a customs area shall, for the purpose of enforcing the provisions of this Act, be subject to the control of officers of customs.

142.
Recovery of sums due to Government.

142.Recovery of sums due to Government. (1) 3[ Where any sum pay- able by any person] under this Act is not paid,-

(a) the proper officer may deduct or may require any other
officer of customs to deduct the amount so payable from any
money owing to such person which may be under the control of
the proper officer or such other officer of customs; or

(b)the 4[Assistant Commissiner of Customs] may recover or may
require any other officer of customs to recover the amount so
payable by detaining and selling any goods belonging to such
person which are under the control of the 4[Assistant Commis-
siner of Customs or such other officer of customs ; or

5[(c) if the amount cannot be recovered from such person in
the manner provided in clause (a) or clause (b)-

(i) the [Assistant Commissiner of Customs] may prepare a
certificate signed by him specifying the amount due from such
person and send it to the Collector of the district in which
such person owns any property or resides or carries on his b-
usiness and the said Collector on receipt of such certificate
shall proceed to recover from the said person the amount
specified thereunder as if it were an arrear of land revenue.

(2) Where the terms of any bond or other instrument executed under this Act or any rules or regulations made thereunder provide that any amount due under such instrument may be recovered in the manner laid down in sub-section (1), the amount may, without

———————————————————————-
1 Ins. by Act 36 of 1973 S. 11.

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

3 Subs. by Act 22 of 1995, s. 66 for certain words.

4 Subs. by s. 50, ibid., for “Assistant Collector of Customs”.

5. Subs. by s. 66 ibid., for cl. (c).

———————————————————————-

1234

prejudice to any other mode of recovery, be recovered in accordance with the provisions of that sub-section.

143.
Power to allow import or export on execution of bonds in certaincases.

143.Power to allow import or export on execution of bonds in certain cases. (1) Where this Act or any other law requires anything to be done before a person can import or export any goods or clear any goods from the control of officers of customs and the 1[Assistant Co- mmissioner of Customs] is satisfied that having regard to the circumsta-
nces of the case, such thing cannot be done before such import, export or clearance without detriment to that person,the 1[Assistant Collector of Customs] may, notwithstanding anything contained in this Act or such other law, grant leave for such import, export or clearance on the person executing a bond in such amount, with such surety or security and subject to such conditions as the 1[Assistant Collector of Customs] approves, for the doing of that thing within such time after the import, export or clearance as may be specified in the bond.

(2)If the thing is done within the time specified in the bond the
1[Assistant Commissioner of Customs] shall cancel the bond as discharge in full and shall, on demand, deliver it, so cancelled, to the person who has executed or who is entitled to receive it; and in such case that person shall not be liable to any penalty provided in this Act or, as the case may be, in such other law for the contravention of the provisions thereof relating to the doing of that thing.

(3)If the thing is not done within the time specified in the bond the Assistant Collector of Customs shall, without prejudice to any other action that may be taken under this Act or any other law for the time being in force, be entitled to proceed upon the bond in accordance with law.

2["143A. Duty deferment. (1) When any material is imported under an import licence belonging to the category of Advance Licence granted under the imports and Exports (Control) Act, 1947,(18 of
1947). subject to an obligation to export the goods as are specified in the said Licence within the period specified therein the 1[Assistant Commissioner of Customs] may, not withstanding anything contained in this Act, permit clearance of such material without payment of duty leviable thereon.

(2)The Permission for clearance without payment of duty under sub-section (1) shall be subject to the following conditions, that is to say–

(a) the duty payable on the material imported shall be
adjusted against the drawback of duty payable under this Act
or under any other law for the time being in force on the
export of goods specified in the said Advance Licence; and

(b) where the duty is not so adjusted either for the reason
that the goods are not exported within the period specified
in the said Advance Licence, or within such extended period
not exceeding six months as the 1[Assistant Commissionr of
Customs] may on sufficient cause being shown, allow, or for,
any other sufficient reason, the importer shall, notwithsatn-
ding anything contained in section 28, be liable to pay the
amount of duty not so adjusted together with simple interest
thereon at the rate of twelve per cent. per annum from the
date the said permission for clearance is given to the date
of payment.

(3) While permitting clearance under sub-section (1), the
1[Assistant Commissioner of Customs] may require the importer
to execute a bond with such surety or security as he thinks
fit for complying with the conditions specified in sub-
section (2).

144.
Power to take samples.

144.Power to take samples. (1) The proper officer may, on the entry or clearance of goods or at any time while. such goods are being passed through customs area, take samples of such goods in the presence of the owner thereof, for examination or testing, or for ascertaining the value thereof, or for any other purposes of this Act.

(2)After the purpose for which a sample was taken is Carried out, such sample shall, if practicable, be restored to the owner but if the owner fails to take delivery of the sample within three months of the date on which the sample was taken, it may be deposed of in such manner as the 3[Commissioner of Customs] may direct.

(3)No duty shall be chargeable on any sample of goods taken under this section which is consumed or destroyed during the course

—————————————————————
1.Subs. by Act 22 of 1995,s.50 for “Assistant Collector of Customs”.

2. Ins. by Act 25 of 1978, S. 17 (w.e.f.1-7-1978).

3. Subs. by Act 22 of 1995, s. 50 of “Collector of Customs”.

———————————————————————-

1235

of any test or examination thereof, if such duty amounts to five rupees or more.

145.
Owner, etc., to perform operations incidental to compliance withcustoms law.

145.Owner, etc., to perform operations incidental to compliance with customs law. All operations necessary for making any goods available for examination by the proper officer or for facilitating such examination shall be performed by, or at the expense of, the owner, importer or exporter of the goods as the case may be.

146.
Custom house agents to be licensed.

146.Custom house agents to be licensed. (1) No person shall carry on business as an agent relating to the entry or departure of a conveyance or the import or export of goods at any customs-station unless such person holds a licence granted in this behalf in accordance with the regulations.

(2) The Board may make regulations for the purpose of carrying out the provisions of this section and, in particular, such regulations may provide for-

(a)the authority by which a licence may be granted under this
section and the period of validity of any such licence;

(b) the form of the licence and the fees payable therefor ;

(c) the qualifications of persons who may apply for a
licence and the qualifications of persons to be employed by a
licensee to assist him in his work as an agent;

(d) the restrictions and conditions (including the
furnishing of security by the licensee) subject to which a
licence may be granted;

(e)the circumstances in which a licence may be suspended or
revoked; and

(f)the appeals, if any, against an order of suspension or
revocation of a licence, and the period within which such
appeals shall be filed.

1[146A. Appearance by authorised representative. (1) Any person who is entitled or required to' appear before officer of customs or the Appellate Tribunal in connection with any proceedings under this Act, otherwise than when required under section 108 to attend personally for examination on oath or affirmation, may, subject to the other provisions of this section, appear by an authorised representative.

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

(a) his relative or regular employee; or

(b) a custom house agent licensed under section 146; or

(c) any legal practitioner who is entitled to practise in
any civil court in India; or

(d) any person who has acquired such qualifications as the
Central Government may specify by rules made in this
behalf.

(3) Notwithstanding anything contained in this section, no person who was a member of the Indian Customs and Central Excise Service Group A and has retired or resigned from such Service after having served. for not less than three years in any capacity in that service shall be, entitled to appear as an authorised representative in any proceedings before an officer of customs for a period of two years from the date of his retirement or resignation, as the case may be.

(4) No person,-

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

(b) who is convicted of an offence connected with any pro-
ceeding under this Act, the Central Excises and Salt Act,
1944 (1 of 1944) or the Gold (Control) Act, 1968;(45 of
1968). or

(c) who has become an insolvent,
shall be qualified to represent any person under sub-section (1), for all times in the case of a person referred to, in clause (a), and for such time as the 1[Commissioner of Customs] or the competent authority under the Central Excises and Salt Act, 1944 (1 of 1944),or the Gold
(control) Act, 1968 (45 of 1968), as the case may be, may, by order, determine in the case of a person referred to in clause (b),and for the period during which the insolvency continues in the case of a person referred to in clause (c).

(5) If any person,-

(a) who is a legal Practitioner, is found guilty of misconduct in his professional capacity by any authority entitled to institute proceedings against him, an order passed by that authority shall have effect in relation to his right to appear before an officer of customs or the Appellate Tribunal as it has in relation to his right to practise as a legal practitioner;

(b) who is not a legal Practitioner, is found guilty of miscon- duct in connection with any proceedings under this Act by such authority as may be specified by rules made in this, behalf, that authority may direct that he shall thenceforth be disqualified to represent any person under sub-section, (1).

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

(a) no such order or direction shall be made in respect of any person unless he has been given a reasonable opportunity of being heard;

(b) any person against whom any such order or direction is made may, within one month of the making of the order or direction, appeal to the Board to have the order or direction cancelled; and

(c) no such order or direction shall take effect until the expiration of one month from the making thereof, or, where an appeal has been preferred, until the disposal of the appeal.

147.
Liability of principal and agent.

147. Liability of principal and agent. (1) Where this Act requires anything to be done by the owner, importer or exporter of any goods, it may be done on his behalf by his agent.

(2) Any such thing done by an agent of the owner, importer or exporter of any goods shall, unless the contrary is proved, be deemed to have been done with the knowledge and consent of such owner, importer or exporter, so that in any proceedings under this Act, the owner, importer or exporter of the goods shall also be liable as if the thing had been done by himself.

———————————————————————-

1. Subs. by Act 22 of 1995, s.50 for “Collector of Customs”.
———————————————————————-

1236

(3) When any person is expressly or impliedly authorised by the owner, importer or exporter of any goods to be his agent in respect of such goods for all or any of the purposes of this Act, such person shall, without prejudice to the liability of the owner, importer or exporter, be deemed to be the owner, importer or exporter of such goods for such purposes:

Provided that where any duty is not levied or is short-levied or erroneously refunded on account of any reason other than any wilful act, negligence or default of the agent, such duty shall not be recovered from the agent unless in the opinion of 1[Assistant Commiss- ioner of Customs] the same cannot be recovered from the owner, impor- ter or exporter.

148.
Liability of agent appointed by the person in charge of a conveyance.

148. Liability of agent appointed by the person in charge of a conveyance. (1) Where this Act requires anything to be done by the person in charge of a conveyance, it may be done on his behalf by his agent.

(2) An agent appointed by the person in charge of a conveyance and any person who represents himself to any officer of customs as an agent of any such person in charge, and is accepted as such by that officer, shall be liable for the fulfilment in respect of the matter in question of all obligations imposed on such person in charge by or under this Act or any law for the time being in force, and to penalties and confiscations which may be incurred in respect of that matter.

149.
Amendment of documents.

149. Amendment of documents. Save as otherwise provided in sections 30 and 41, the proper officer may, in his discretion, authorise any document, after it has been presented in the customs house to be amended:

Provided that no amendment of a bill of entry or a shipping bill or bill of export shall be so authorised to be amended after the im- ported goods have been cleared for home consumption or deposited in a warehouse, or the export goods have been exported, except on the basis of documentary evidence which was in existence at the time the goods were cleared, deposited or exported, as the case may be.

150.
Procedure for sale of goods and application of saleproceeds.

150. Procedure for sale of goods and application of saleproceeds.
(1) Where any goods not being confiscated goods are to be sold under any provisions of this Act, they shall, after notice to the owner thereof, be sold by public auction or by tender or with the consent of the owner in any other manner.

(2) The proceeds of any such sale shall be applied-

(a) firstly to the payment of the expenses of the sale,

———————————————————————-
1. Subs. by Act 22 of 1995, s.50 for “Assistant Collector of Customs”.
———————————————————————-

1237

(b) next to the payment of the freight and other charges,
if any, payable in respect of the goods sold, to the carrier,
if notice of such charges has been given to the person having
custody of the goods,

(c) next to the payment of the duty, if any, on the goods
sold,

(d) next to the payment of the charges in respect of the
goods sold due to the person having the custody of the
goods,

(e) next to the payment of any amount due from the owner of
the goods to the Central Government under the provisions of
this Act or any other law relating to customs,

and the balance, if any, shall be paid to the owner of the
goods.

151.
Certain officers required to assist officers of customs.

151. Certain officers required to assist officers of customs. The following officers are hereby empowered and required to assist officers of customs in the execution of this Act, namely:-

(a) officers of the Central Excise Department;

(b) officers of the Navy;

(c) officers of Police;

(d) officers of the Central or State Governments employed
at any port or airport ;

(e) such other officers of the Central or State Government
or a local authority as are specified by the Central Govern-
ment in this behalf by notification in the Official Gazette.

151A
Instructions to officers of customs. 1["151A. Instructions to officers of customs. The Board may, ifit considers it necessary or expedient so to do for the purpose ofuniformity in the classi

152.
Delegation of powers.

152.Delegation of powers. The Central Government may, by notification in the Official Gazette, direct that subject to such conditions, if any, as may be specified in the notification-

(a) any power exercisable by the Board under this Act shall
be exercisable also by a 2[a 3[Chief Commissioner of Customs]
or a 4[Commissioner of Customs] empowered in this behalf by
the Central Government;

(b) any power exercisable by a 4[Cmmissioner of Customs]
under this Act may be exercisable also by a 5[Deputy Commis-
sioner of Customs] or an 6[Assistant Commissioner of Customs]
empowered in this behalf by the Central Government;

(c) any power exercisable by a Deputy Collector of Customs
under this Act may be exercisable also by an Assistant
Collector of Customs empowered in this behalf by the Central
Government;
———————————————————————-

1. Subs. by Act 22 of 1995, s. 52, “Collector of Customs (Appeals)”.

2. Subs. by Act 29 of 1988, s. 7 for “a Collector of Customs” (w. e.f. 1-7-1988).

3. Subs. by Act 22 of 1995, s. 50, for “Principal Collector of Cus- toms”.

4. Subs. by s. 50, ibid for “Collector of Customs”.

5. Subs. by s. 50, ibid for “Deputy Collector of Customs”.

6. Subs. by s. 50, ibid for “Assistant Collector of Customs”.

———————————————————————-

1238

(d) any power exercisable by an 1[Assistant Commissiner of
Customs] under this Act may be exercisable also by a gazetted
officer of customs empowered in this behalf by the Board.

153.
Service of order, decision, etc.

153.Service of order, decision, etc. Any order or decision passed or any summons or notice issued under this Act, shall be served-

(a) by tendering the order, decision, summons or notice or
sending it by registered post to the person for whom it is
intended or to his agent ; or

(b) if the order, decision, summons or notice cannot be
served in the manner provided in clause (a), by affixing it
on the notice board of the customs house.

154.
Correction of clerical errors, etc.

154. Correction of clerical errors, etc. Clerical or arithmetical mistakes in any decision or order passed by the Central Government, the Board or any officer of customs under this Act. or errors arising therein from any accidental slip or omission may, at any time, be corrected by the Central Government, the Board or such officer of customs or the successor in office of such officer., as the case may be.

154A
Rounding off of duty, etc. 2[154A. Rounding off of duty, etc.The amount of duty,interest,penalty, fine or any other sum payable and the amount of refund,drawback or any other sum due, under the

155.
Protection of action taken under the Act.

155.Protection of action taken under the Act. (1) No suit, prosecution or other legal proceeding shall lie against the Central Government or any officer of the Government or a local authority for anything which is done, or intended to be done in good faith, in pursuance of this Act or the rules or regulations.

(2) No proceeding other than a suit shall be commenced against the Central Government or any officer of the Government or a local authority for anything purporting to be done in pursuance of this Act without giving the Central Government or such officer a month's previous notice in writing of the intended Proceeding and of the cause thereof, or after the expiration of three months from the accrual of such cause.

156.
General power to make rules.

156. General power to make rules. (1) Without prejudice to any power to make rules contained elsewhere in this Act, the Central Government may make rules consistent with this Act generally to carry out the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the follow- ing matters, namely:-

1["(a) the manner of determining the price of imported goods under sub-section (1A) of section 14;"]

———————————————————————-
1. Subs. by Act 22 of 1995, s. 50 for “Assistant Collector of Cu- stoms”.

2. Ins. by Act 12 of 1990, S.62.
———————————————————————-

1239

(b) the conditions subject to which accessories of, and
spare parts and maintenance and repairing implements for, any
article shall be chargeable at the same rate of duty as that
article;

1 * * * * *

(d)the detention and confiscation of goods the importation of
which is prohibited and the conditions, if any, to be
fulfilled before such detention and confiscation and the
information, notices and security to be given and the
evidence requisite for the purposes of such detention or
confiscation, and the mode of verification of such evidence;

(e) the reimbursement by an informant to any public officer
of all expenses and damages incurred in respect of any
detention of any goods made on his information and of any
proceedings consequent on such detention;

(f) the information required in respect of any goods
mentioned in a shipping bill or bill of export which are not
exported or which are exported and are afterwards re-landed;

2["(g) the publication, subject to such conditions as may be
specified therein, of names and other particulars of persons
who have been found guilty of contravention of any provisions
of this Act or the rules."]

157.
General power to make regulations.

157. General power to make regulations. (1) Without prejudice to any power to make regulations contained elsewhere in this Act, the Board may make regulations consistent with this Act and the rules, generally to carry out the purposes of this Act.

(2) In particular and without prejudice to the, generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:-

(a) the form of a bill of entry, shipping bill, bill of
export, import manifest, import report, export manifest,
export report, bill of transhipment, boat note and bill of
coastal goods;

3["(aa) the 4[form and manner] in which an application for
refund shall be made under section 27;”]

(b) the conditions subject to which the transhipment of all
or any goods under sub-section (3) of section 54, the
transportation of all or any goods under section 56 and the
removal of warehoused goods from one warehouse to another
under section 67 may be allowed without payment of duty;

———————————————————————

1. cl. (c) omitted by Act 26 of 1988, S.80.

2. Ins. by Act 40 of 1991, S.14 (w.e.f.20-9-1991).

3. Ins. by Act 36 of 1973, s. 12

4. cl. (aa) ins. by Act 40 of 1991, s. 14, (w.e.f. 20-9-1991)

5. Subs. by Act 22 of 1995, s. 67 for “Form”.
———————————————————————

1240

(c) the conditions subject to which any manufacturing
process or other operations may be carried on in a warehouse
under section 65.

158.
Provisions with respect to rules and regulations.

158. Provisions with respect to rules and regulations. (1) All rules and regulations made under this Act shall be published in the Official Gazette.

(2) Any rule or regulation which the Central Government or the Board is empowered to make under this Act may provide-

(i) for the levy of fees in respect of applications,
amendment of documents, furnishing of duplicates of
documents, issue of certificates, and supply of statistics,
and for rendering of any services by officers of customs
under this Act;

(ii) that any person who contravenes any provision of a rule
or regulation or abets such contravention or any person who
fails to comply with any provision of a rule, or regulation
with which it was his duty to comply, shall be liable,-

(a) in the case of Contravention or failure to comply
with a rule, to a penalty which may extend to five
hundred rupees;

(b) in the case of contravention or failure to comply
with a regulation, to a penalty which may extend to two
hundred rupees.

159.
Rules and certain notifications to be laid before Parliament.

1[159.Rules and certain notifications to be laid before Parliament. Every rule or regulation made under this Act and every notification issued under sections 11, 11B, 11H, 11-I, 11K, 11N, 14, 25 28A,
43, 66,69, 70, 74, 75, 76, 98, 98A, 101 and 123 and every order made under sub-section (2) of sub-section, other than an order relating to goods of strategic, secret, individual or personal nature, or shall be laid as soon as may be after it is made or issued before each House of Parliament while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid both Houses agree in making any modification in the rule or regulation or notification or order or both Houses agree that the rule or regulation should not be made or the notification or order should not be issued or made, the rule or regulation or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, how- ever, that any such modification or annulment shall be without prejud- ice to the validity of anything previously done, under that rule or regulation or notification or order].

160.
Repeal and savings.

160.Repeal and savings. (1) The enactments specified in the Schedule are hereby repealed to the extent mentioned in the fourth column thereof.

———————————————————————

1. Subs. by Act 22 of 1995, S. 68 for section 159.

———————————————————————

1241

(2) In the Indian Tariff Act, 1934 (32 of 1934).

(a) for section 2, the following section shall be
substituted, namely: -

“2. Duties specified in the Schedules to be levied. The
rates at which duties of customs shall be levied under the
Customs Act, 1962, are specified in the First and Second
Schedules.” ;

(b) sections 5 and 6 shall stand repealed.

(3) Notwithstanding the repeal of any enactment by this section,-

(a) any notification, rule, regulation, order or notice
issued or any appointment or declaration made or any licence,
permission or exemption granted or any assessment made,
confiscation adjudged or any duty levied or any penalty or
fine imposed or any forfeiture, cancellation or discharge of
any bond ordered or any other thing done or any other action
taken under any repealed enactment shall, so far as it is not
inconsistent with the provisions of this Act, be deemed to
have been done or taken under the corresponding provision of
this Act ;

(b) any document referring to any enactment hereby repealed
shall be construed as referring to this Act or to the
corresponding provision of this Act.

(4) This Act shall apply to all goods which are subject to the control of customs at the commencement of this Act notwithstanding that the goods were imported before such commencement.

(5) Where the period prescribed for any application, appeal, revision or other proceeding under any repealed enactment had expired on or before the commencement of this Act, nothing in this Act shall be construed as enabling any such application, appeal. or revision to be made or a proceeding to be instituted under this Act by reason only of the fact that a longer period therefor is prescribed or provision is made for extension of time in suitable cases by the appropriate authority.

(6) The provisions of section 65 shall apply to goods warehoused before the commencement of this Act if the operations permissible under that section were carried on after such commencement.

(7) Any duty or penalty payable under any repealed enactment may be recovered in a manner provided under this Act but without prejudice to any action already taken for the recovery of such duty or penalty under the repealed enactment.

1242

(8) The mention of particular matters in sub-sections (4), (5),
(6) and (7)shall not be held to prejudice or affect the general application of section 6 of the General Claus-Is Act, 1897,(10 of
1897.) with regard to the effect of repeals.

(9) Nothing in this Act shall affect any law for the time being in force relating to the constitution and powers of any Port authority in a major port as defined in the Indian Ports Act, 1908.(15 of 1908).

161.
Removal of difficulties.

161.Removal of difficulties. If any difficulty arises in giving effect to the provisions of this Act, particularly in relation to the transition from the enactments repealed by this Act to the provisions of this Act, the Central Government may by general or special order, do anything not inconsistent with such provisions which appears to be necessary or expedient for the purpose of removing the difficulty.

SCHE

(See section 160)

THE SCHEDULE

(See section 160)

REPEALS

——————————————————————— Year No. Short title Extent of repeal

———————————————————————
1 2 3 4
———————————————————————

1878 8 The Sea Customs Act .. The whole

1896 8 The Inland Bonded Warehouses Act
The whole

1924 19 The Land Customs Act The whole

1934 22 The Aircraft Act Section 16.

WHEREAS it is expedient, for the purpose of ascertaining whether the actual incidence of taxation on income is and has been in recent years in accordance with the provisions of law, and the extent to which the existing law and procedure for the assessment and recovery of such taxation is adequate to prevent the evasion thereof, to make provision for an investigation to be made into such matters;

It is hereby enacted as follows:-

1.Short title, extent and commencement.

1. Short title, extent and commencement.- (1) This Act may be called the Taxation on Income (Investigation Commission) Act, 1947.(2) It extends to the whole of British India.

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

2.Interpretation.- In this Act, “taxation on income” means any tax chargeable under the Indian Income-tax Act, 1922 (XI of 1922) or the
Excess Profits Tax Act, 1940 (XV of 1940).

3.Constitution and functions of commission.- The Central Government may constitute a Commission to be called the Income-tax Investigation
Commission (hereinafter referred to as the Commission) whose duties it shall be -

(a) to investigate and report to the Central Government on all matters relating to taxation on income, with particular reference to the extent to which the existing law relating to, and procedure for, the assessment and collection of such taxation is adequate to prevent the evasion thereof;

(b) to investigate in accordance with the provisions of this Act any case referred to it under section 5 and report thereon to the Central
Government.

4. Composition of Commission.- (1) The Commission shall consist of a
Chairman (being a person who is or has been a Judge of a High court)
and two other Commissioners, appointed by the Central Government.

(2) On the occurrence from any cause of a vacancy among the
Commissioners, the Central Government may, if it thinks fit, appoint a person to fill the vacancy.

5. Power of Central Government to refer cases for investigation.-(1)
The Central Government may, at any time before the 31st day of
December, 1947, refer to the Commission for investigation and report any case in which the Central Government has prima facie reasons for believing that a person has to a substantial extent evaded payment of taxation on income, together with such material as may be available in support of such belief.

(2) If in the course of investigation into a case referred to it under sub-section (1), the Commission has reason to believe that some person other than the person whose case is being investigated has himself evaded payment of taxation on income, it may make a report to the
Central Government stating its reasons for such belief, and on receipt of such report the Central Government may at any time refer the case of such other person to the Commission for investigation and report.

6.Powers of Commission.- (1) The Commission shall have power to administer oaths, and shall have all the powers of a Civil Court under the Code of Civil Procedure, 1908 (V of 1908), for the purposes of taking evidence on oath, enforcing the attendance of witnesses and of persons whose cases are being investigated, compelling the production of documents and issuing commissions for the examination of witnesses, and shall be deemed to be a Civil Court for all the purposes of section 195 and Chapter XXXV of the Code of Criminal Procedure, 1898.(V of 1898); and any reference in the said Chapter to the presiding officer of a Court shall be deemed to include a reference to the
Chairman of the Commission.

(2) If in the course of any investigation under this Act it appears to the Commission to be necessary to examine any accounts or documents which it cannot itself conveniently examine, the Commission may authorise any person qualified in its opinion to make such examination to examine the accounts or documents and interrogate for that purpose any person having charge or custody thereof and make a report thereon to the Commission; and any person having charge or custody of such accounts or documents shall be bound to produce them to the person so authorised and to give to such person any information in respect thereof which the person so authorised may require.

(3) The Commissioners and all persons authorised by the commission under this section shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (XLV of 1860).

7. Procedure of Commission.-(1) The Commission shall, subject to the provisions of this Act, have power to regulate its own procedure
(including the fixing of places and times of its sittings and deciding whether to sit in public or in private) and may act notwithstanding a vacancy in the number of the Commissioners.

(2) In making an investigation under clause (b) of section 3, the
Commission shall act in accordance with the principles of natural justice, shall follow as far as practicable the principles of the
Indian Evidence Act, 1872 (1 of 1872), and shall give the person whose case is being investigated a reasonable opportunity of rebutting any evidence adduced against him.

(3) Any person whose case is being investigated the Commission may be represented by a pleader duly authorised to act on his behalf.

(4) Except with the previous sanction of the Central Government, -

(a) no suit, prosecution or other legal proceeding shall be instituted against any person in any civil or criminal court for any evidence given by him in any proceedings before the Commission, and

(b) no evidence so given shall be admissible in evidence against such person in any suit, prosecution or other proceeding before such Court.

(5) No document shall be inadmissible in evidence in any proceedings before the Commission on the ground that it is not duly stamped or registered.

(6) Nothing in section 54 of the Indian Income-tax Act, 1922 (XI of
1922) or in that section as applied to excess profits tax by section
21 of the Excess Profits Tax Act, 1940 (XV of 1940) shall apply to the disclosure of any of the particulars referred to therein in any proceeding before the Commission or in any report made by the
Commission to the Central Government or in any report made to the
Commission by a person authorised under sub-section (2) of section 6.8.Power to direct reopening of assessment proceedings.

8. Power to direct reopening of assessment proceedings.-(1) After considering any report made to it under clause (b) of section 3, the
Central Government may, by order in writing, direct that proceedings to assess in respect of the income of any period commencing after the
31st day of December, 1938 the person to whose case the report relates to income-tax, super-tax or excess profits tax shall be taken or reopened ; and upon such a direction being made, such assessment proceedings may be taken and completed under the appropriate law, notwithstanding anything contained in section 34 of the Indian
Income-tax Act, 1922 (XI of 1922), or section 15 of the Excess Profits
Tax Act, 1940 (XV of 1940), or any other law, and notwithstanding any lapse of time.

(2) On a direction being made under sub-section (1), a copy of the report of the Commission so far as it relates to the case of the person concerned, shall be furnished to him.

(3) Notwithstanding anything to the contrary contained in any other law, in any proceedings directed to be taken under sub-section (1), any evidence in the case adduced before the Commission or a person authorised by it under sub-section (2) of section 6 shall be admissible in evidence.

9. Bar of jurisdiction.- No act or proceeding of the Commission or any person authorised by it under sub-section (2) of section 6 shall be called in question in any manner by any Court, and no suit, prosecution or other legal proceeding shall lie against the Crown or any Commissioner or any other person for anything in good faith done or intended to be done under this Act.

10. Power to make rules.-The Central Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act.

BE it enacted by Parliament in the Twenty-ninth Year of the
Republic of India as follows:-

1.Short title and commencement.- (1) This Act may be called the
Additional Duties of Excise (Textiles and Textile Articles) Act, 1978.(2) It shall be deemed to have come into force on the 4th day of
October,_1978.2.2. [Repealed.] 2. [Definitions.] Rep. by Act 6 of 1986, s. 2 (w.e.f.
28.2.1986)

3.3. Levy and collection of additonal duties of excise on certain textiles and textile articles. 3.1*[(1)Levy and collection of additional duties of excise oncertain textiles and texti

.
4.Repeal and saving.- (1) The Additional Duties of Excise
(Textiles and Textile Articles) Ordinance, 1978 ( 4 of 1978) is hereby repealed.

(2) Notwithstanding such repeal, anything clone or any action taken under the Ordinance so repealed shall be deemed to have been done or taken under the corresponding provisions of this Act.

1*[THE SCHEDULE

(See section 3)

Notes

1. In this Schedule, "Chapter" and "heading" mean a Chapter or heading in the Schedule to the Central Excise Tariff Act, 1985.2. The rules for the interpretation of the Schedule to the Central
Excise Tariff Act, 1985, and the section and Chapter Notes of the said
Schedule shall apply for the purposes of classification of goods specified in this Schedule.

---------------------------------------------------------------------
S. No. Description of goods
---------------------------------------------------------------------
(1) (2)
---------------------------------------------------------------------
1. Silk, that is to say, all goods falling within Chapter 50.

2. Wool, that is to say, all goods falling within Chapter 51.3. Cotton, that is to say, all goods falling within Chapter 52.4. Man-made filaments, that is to say, all goods falling within
Chapter 54.5. Man-made staple fibres, that is to say, all goods falling within Chapter 55.6. Terry towelling and similar woven terry fabrics, falling within heading No. 58.02.7. Tulle and other net fabrics, not including woven, knitted or crocheted fabrics; lace in the piece, in strips or in motifs, falling within heading No. 58.04.8. Knitted or crocheted fabrics, that is to say, all goods falling within Chapter 60.]

2[9. Metallised yarn, falling within heading No. 56.05.10. Embroidery in the piece, in strips or in motifs, falling within heading No. 58.05]

1. Subs. by Act of 6 1986, s. 2, for the Schedule (w.e.f. 28.2.1986)

2. Ins. by Act 23 of 1986, s. 56 and Sch. V.

1. Short title and extent. (1) This Act may be called the
Agricultural Produce Cess Act, 1940.

(2) It extends to the whole of India 3***

2. Definitions. In this Act, unless there is anything repugnant in the subject or context,–

4*[(a) "Collector" means a Collector of Customs as defined in clause (8) of section 2 of the Customs Act, 1962;
(52 of 1962.) and]

(b) “Council” means 2*[the Indian Council of Agricultural
Research].

3. Imposition of cess. (1) A customs duty at the rate of one-half of one per cent. ad valorem shall be levied on all articles included in the Schedule which are exported from 5*[India]:

Provided that the said duty shall not be levied on articles proved to the satisfaction of the Collector not to have been produced in India.

———————————————————————
1 Extended to Pondicherry by Reg. 7 of 1963.Extended to the Union territory of Goa, Daman and Diu, vide
Notfn. No. G.S.R. 504(E), dated 21.6.1985, Gaz. of India, Exty.
pt. II sec. 3(i).
2 Subs. by the A. O. 1950, for “the Imperial Council of
Agricultural Research”.
3 The words “except the State of Jammu and Kashmir” omitted by Act
62 of 1956, s. 2 and Sch. (w.e.f. 1-11-1956).
4 Subs. by Act 40 of 1970, s. 2, for cl. (a).
5 Subs. by Act 62 of 1956, s. 2 and Sch., for “the territories to which this Act extends”.

40

(2) The Central Government may, by 1* notification in the
Official Gazette, fix for the purposes of levying the said duty tariff values of any articles included in the Schedule, and may alter any tariff values for the time being in force.

4. Power to exclude articles from Schedule. The Central
Government may after previous consultation with the Council, by 2*
notification in the Official Gazette, direct that any article specified in the Schedule shall cease to be subject to the duty imposed by section 3, and thereupon, so long as the notification remains in force, that article shall be deemed not to be included in the Schedule.

5. Refund of, and exemption from cess. 3*[The Central Board of
Excise and Customs constituted under the Central Boards of Revenue
Act, 1963 (54 of 1963.)] may make 4* rules providing, on such conditions as may be specified, in the rules, for–

(a) the refund of duty levied where articles are exported by land and subsequently imported into India, and

(b) the export by land, without payment of the duty of articles, which are subsequently to be imported into
India.

5A.

Certain provisions of the Customes Act, 1962 to apply.

5*[5A. Certain provisions of the Customes Act, 1962 to apply. The provisions of the Customs Act, 1962 (52 of 1962.) and the rules and regulations made thereunder, including those relating to refunds and exemptions from duty, shall so far as may be, apply in relation to the levy and collection of customs duty on all articles included in the
Schedule as they apply in relation to the levy and collection of duty payable to the Central Government under that Act.

5B.

Penalties.

5B. Penalties. (1) Whoever--

(a) evades the payment of any customs duty under this Act, or

(b) fails to furnish any information which it is his duty to furnish or furnishes information which is false in material particulars or which he does not believe to be true, or

(c) obstructs the Collector or any other officer in the performance of his duties under this Act or any rules made thereunder,

shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to two thousand rupees, or with both.
---------------------------------------------------------------------
1 For such notification, see Gazette of India, 1947, Extraordinary, p. 611.2 For such notification, see Gazette of India, 1940, Pt. I, p.
1323.3 Subs. by Act 40 of 1970, s. 3, for "The Central Board of
Revenue".
4 For such rules, see Gazette of India, 1940, Pt. I, p. 565.5 Ins. by Act 40 of 1970, s. 4.41.(2) Any court trying an offence under this Act may direct that any article specified in the Schedule in respect of which it is satisfied that an offence punishable under this Act has been committed shall be forfeited to the Central Government and may also direct that all packages, coverings or receptacles in which such article is contained and every vessel or other conveyance used in carrying such article shall be forfeited to the Central Government.]

6. Payment of cess to Council and expenditure of cess by Council.
(1) The proceeds of the duty levied under this Act reduced by the cost of collection as determined by the Central Government shall be paid to the Council.

(2) The amount so due shall be paid by the Central Government to the Council at intervals of not more than six months.

(3) The expenditure of the money so paid to the Council shall be subject to such limitation as may be imposed by rules made in this behalf by the Central Government.

7.Standing Finance Committee.

7. Standing Finance Committee. (1) The Council shall constitute a
Standing Finance Committee, of which one member shall be chosen among
1*[the Members of Parliament] on the governing body of the Council, and one member shall be an officer appointed by the Central
Government.

(2) Subject to the provisions of sub-section (1) the constitution, functions and procedure of the Standing Finance
Committee shall be regulated in such manner as the Council may with the previous approval of the Central Government determine.

8.Reserve fund.

8. Reserve fund. The Council shall in accordance with the rules made in this behalf by the Central Government create and maintain a reserve fund.

9.Power of Central Government to make rules.

9. Power of Central Government to make rules. (1) The Central
Government may, after consultation with the Council, by notification in the Official Gazette, make 2* rules to carry out the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, the Central Government may make rules regulating the expenditure of the money paid to the Council under section 6 and providing for the creation, maintenance and management of the reserve fund referred to in section 8.———————————————————————
1 Subs. by Act 40 of 1970, s. 5, for “the representatives of the
Central Legislature”.
2 For such rules see Gazette of India, 1940, Pt. I, p. 1353.42.1*[(3) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.]

SCHE

(See section 3)

THE SCHEDULE

(See section 3)

1. Bones.

2. Bristles.

3. Butter.

4. Cereals, other than Rice and Wheat.

5. Drugs.

6. Fibre for brushes.

7. Fish.

8. Fruits.

9. Ghee.

10. Hides, raw.

11. Manures.

12. Oilcakes.

13. Pulses.

14. Seeds.

15. Skins, raw.

16. Spices.

17. Tobacco, unmanufactured.

18. Vegetables.

19. Wheat.

20. Wheat Flour.

2*[21. Sheeps or lambs wool and animal hair, whether or not scoured or carded.]
———————————————————————
1 Subs. by Act 40 of 1970, s. 6, for sub-section (3).
2 Subs. by s. 7, ibid, for item 21.

BE it enacted by Parliament in the Twenty-second Year of the
Republic of India as follows:-

1.Short title. This Act may be called the Central Board of Direct
Taxes (Validation of Proceedings) Act, 1971.2.Validation of certain proceedings.

2.Validation of certain proceedings. Notwithstanding any judgment, decree or order of any court, tribunal or any other authority, no approval, declaration, determination, recognition, direction, instruction, notification, order or rule, or other thing or action given, made, granted, issued, done or taken by the Central
Board of Direct Taxes, constituted under the Central 1963.Boards of
Revenue Act, 1963, (54 of 1963) in the exercise of the powers or the performance of the duties entrusted to it by the Central Government or by or under any law (not being the Estate Duty Act,. 1953)(34 of
1953). shall be deemed to be invalid or ever to have been invalid by reason only of the fact that such approval, declaration, determination, recognition, direction, instruction, notification, order, rule, thing or action was given, made, granted, issued, done or taken by the Chairman and other. members of the said Board, either singly or jointly, without having been validly entrusted with the powers or duties in that behalf in accordance with the provisions of the aforesaid 1963 Act or the rules made thereunder, and accordingly:-

(a) all act, proceedings or things done or taken in pursuance of such approval, declaration, determination, recognition, direction, instruction, notification, order, rule, thing or action shall, for all purposes, be deemed to be, and to have always been, done or taken in accordance with law; and

(b) no suit or other proceeding shall be instituted or continued against the Government or any person or authority whatsoever on the ground that any such act, proceeding or thing was not done or taken in accordance with law.

BE it enacted by Parliament in the Fourteenth Year of the
Republic of India as follows:-

1. Short title and commencement. (1) This Act may be called the
Central Boards of Revenue Act, 1963.(2) it shall come into force on such date1* as the Central
Government may, by notification in the Official Gazette, appoint.

2. Definitions. In this Act, unless the context otherwise requires,-

(a) Board ” means the Central Board of Direct Taxes or the
Central Board of Excise and Customs constituted under section
3 ;

(b) Central Board of Revenue ” means the Central Board of
Revenue constituted under the Central Board of Revenue Act,
1924 (4 of 1924)

(c) “direct tax” means-

(1) any duty leviable or tax chargeable under-

(i) the Estate Duty Act, 1953 (34 of 1953)

(ii) the Wealth-tax Act, 1957 (27 of 1957)

(iii)the Expenditure-tax Act, 1957 (29 of 1957)

(iv) the Gift-tax Act, 1958 (18 of 1958)

(v) the Income-tax Act, 1961 (43 of 1961)

(vi) the Super Profits Tax Act, 1963 (14 of 1963) 2* * *;]

3[(vii) the Interest-tax Act, 1974 (45 of 1974) 4* * *;]

5[(viii) the Hotel-Receipts Tax Act, 1980 (54 of 1980) 6* * *;]

3["(viii) the Hotel-Receipts Tax Act, 1980; and"]

(2) any other duty of tax which, having regard to its nature or incidence, may be declared by the Central

7["(ix) the Expenditure-tax Act, 1987; and"]
———————————————————————-

1 1st January, 1964 ; vide Notification No. S. O. 3606, dated
30-12-1963 Gazette of India, Extraordinary, Pt. 11, See. 3 (ii), p.
897.2 Omitted & ins. by Act 45 of 1974, S. 30.

3 Ins. by s. 30. ibid.

4 Omitted and ins. by Act 54 of 1980, S. 37.5 Ins. by s. 37. ibid.

6 Omitted and ins. by Act 35 1987, S. 33 (w.e.f. 1.11.1987).

7 Ins. by s. 33. ibid.

———————————————————————-

1266.Government, by notification in the Official Gazette, to be a direct tax.

3.Constitution of separate Central Boards for Direct Taxes and for Excise and Customs. (1) The Central Government shall, in place of the Central Board of Revenue, constitute two separate Boards of Revenue to be called the Central Board of Direct Taxes and the Central Board of
Excise and Customs, and each such Board shall, subject to the control of the Central Government, exercise such powers and perform such duties, as may be entrusted to that Board by the Central Government or by or under any law.

(2) Each Board shall consist of such number of persons 1[not exceeding seven] as the Central Government may think fit to appoint.

44. Procedure of the Board. (1) The Central Government may make rules for the purpose of regulating the transaction of business by each Board and every order made or act done in accordance with such rules shall be deemed to be the order or act, as the case may be, of the Board.

(2) Every rule made under this section shall be laid as soon as may be after it is made before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, so however, that any modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

5.Amendment of certain enactments.

5. Amendment of certain enactments. (1) In the Estate Duty Act,
1953, (34 of 1953) the Wealth-tax Act, 1957, (27 of 1957) the
Expenditure-tax Act, 1957,(29 of 1957) the Gift-tax Act, 1958, (18 of
1958)the Income-tax Act, 1961 (43 of 1961) and the Super Profits Tax
Act, 1963,(14 of 1963) for the words and figures ” Central Board of
Revenue constituted under the Central Board of Revenue Act, 1924″ (4.of 1924) or “Central Board of Revenue”, wherever they occur, the words and figures “Central Board of Direct Taxes constituted under the
Central Boards of Revenue Act, 1963″ shall be substituted.

(2) In the Central Excises and Salt Act, 1944, (1 of 1944) and the Customs Act, 1962, (52 of 1962) for the words and figures “Central
Board of Revenue constituted under the Central Board of Revenue Act,
1924 (4 of 1924) ” or ” Central Board of Revenue ” wherever they occur, the words and figures ” Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963 shall be substituted.

———————————————————————-
1 Subs. by Act 25 of 1978, S. 27 (w.e.f 21. 6. 1978).
———————————————————————-

1267.(3) The functions entrusted to the Central Board of Revenue by or under any other enactment shall–

(a)if such functions relate to matters connected with direct taxes, be discharged by the Central Board of Direct Taxes ;
and

(b)if such functions relate to any other matter, unless they are entrusted by the Central Government to the Central Board of Direct Taxes, be discharged by the Central Board of Excise and Customs.

6.Transfer of certain proceedings.

6.Transfer of certain proceedings. (1) Every proceeding pending at the commencement of this Act, before the Central Board of Revenue shall–

(a)if it is a proceeding relating to direct taxes, stand transferred to the Central Board of Direct Taxes; and

(b)in any other case, stand transferred to the Central Board of Excise and Customs.

(2) If any question arises as to whether any proceeding stands transferred to the Central Board of Direct Taxes or to the Central
Board of Excise and Customs, it shall be referred to the Central
Government whose decision thereon shall be final.

(3) In any legal proceeding pending at the commencement of this
Act to which the Central Board of Revenue is a party,–

(a) if it is a proceeding relating to direct taxes, the
Central Board of Direct Taxes shall be deemed to be substituted for the Central Board of Revenue in such proceeding; and

(b) if it is a proceeding relating to any other matter, the
Central Board of Excise and Customs shall be deemed to be substituted for the Central Board of Revenue in such proceeding.

7.Power to remove difficulties.

7. Power to remove difficulties. (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the purposes of this Act, as appear to it to be necessary or expedient for removing the difficulty.

(2) An order under sub-section (1) may be made so as to have retrospective effect from a date not earlier than the date of the commencement of this Act.

1268.8.Repeal and saving.

8.Repeal and saving. (1) The Central Board of Revenue Act, 1924,
(4 of 1924) is hereby repealed.

(2)Nothing contained in sub-section (1) shall affect any appoint-
ment, assessment, order (including quasi-judicial order) or rule made, or exemption, approval or recognition granted, or any notice, notification, direction or instruction issued, or any duty levied, or penalty or fine imposed, or confiscation adjudged, or any form prescribed, or any other thing done or action taken by the Central
Board of Revenue under any law and any such appointment, assessment, order, rule, exemption, approval, recognition, notice, notification, direction, instruction, duty, penalty, fine, confiscation, form, thing or action shall be deemed to have been made, granted, issued, levied, imposed, adjudged, prescribed, done or taken by the Central Board of
Direct Taxes, or as the case may be, by the Central Board of Excise and Customs and shall continue to be in force unless and until it is revised, withdrawn or superseded by the concerned Board.

WHEREAS it is expedient to consolidate and amend the law relating to Central duties of excise on goods manufactured or produced in
2[3[certain parts] of India] and to salt;

It is hereby enacted as follows:-

CHAPTER I
MISCELLANEOUS

1.Short title extent and commencement. (1) This Act may be called the Central Excises and Salt Act, 1944;

(2) It extends to the whole of India 4* * *;

(3) It shall come into force on such date5 as the Central
Government may, by notification in the Official Gazette, appoint in this behalf.

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

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

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

1For Statement of Objects and Reasons, see Gazette of India,
1943, Pt. V, p. 243 and for Report of the Select Committee,see
Gazette of India, 1944, Pt. V, p. 12.This Act has been applied to–

(1) all the partially excluded areas in the State of Orissa by Orissa Government notification No. 1226-II-C-13/44-Com., dated the 21st March, 1944;

(2) Darjeeling District with effect from 28th [February,
1944, see Bengal Government notification No. 342-R, dated the
22nd March, 1944;

(3) excluded areas in the State of Madras (with modifications), see Madras Government notification No. 37, Fort St.George Gazette, Pt. I, p. 281,dated 11th April,
1944;

(4) partially excluded areas in the State of Madras with effect from 28th February, 1944, see Madras Government notification No. 745-Public-Political, dated 4th March, 1944.This Act has been extended to Goa, Daman and Diu by Reg. 12 of
1962, s. 3 and Sch; to Dadra and Nagar Haveli by Reg. 6 of 1963, s. 2.and Sch. I and to the whole of the Union territory of Lakshadweep by
Reg. 8 of 1965, s. 3 and Sch.

2 Subs. by the A.0. 1948, for "British India".

3 Subs. by the A.0. 1950, for "the Provinces".

4 The words "except the State of Jammu and Kashmir, omitted by
Act 41 of 1954, s. 2 and Sch.

5 28th February, 1944, see notification No. III-D, dated the 26th
February, 1944, Gazette of India, Extraordinary, 1944, p. 293.6 Ins. by Act 44 of 1980, s. 50 and Sch. V (w.e.f. 11-10-1982).

----------------------------------------------------------------------

2.1[(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;

(b) “Central Excise Officer” means any officer of the
Central Excise Department, or any person (including an officer of the State Government) invested by the 2[Central
Board of Excise and Customs constituted under the Central
Boards of Revenue Act, 1963) (54 of 1963) with any of the powers of a Central Excise Officer under this Act;

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

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

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

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

4* * * * *

5[(f) "manufacture" includes any process,-
(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 the Schedule to the Central
Excise Tariff Act, 1985 as amounting to manufacture, (5.of 1986).

and the word "manufacturer" shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable, goods, but also any person who engages in their production or manufacture on his own account;]

(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) “saltpeter” includes rasi, sajji, and all other substances manufactured from saline earth, and kharinun and every form of sulphate or carbonate of soda;

(j) “salt factory” includes-

(i) a place used or intended to be used in the manufacture of salt and all embankments, reservoirs, condensing and evaporating pans, buildings and waste places situated within the limits of such place as defined from time to time by the Collector of Central
Excise;

(ii) all drying grounds and storage platforms and storehouses appertaining to any such place;

(iii) land on which salt is spontaneously produced.;

and a “private salt factory” is one not solely owned or not solely worked by the Central Government;
———————————————————————-

1. Cl. (a) relettered as cl. (aaa) by Act 44 of 1980, s.50 and
Sch. V (w.e.f. 11-10-1982).

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

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

4. Cl. (ee) ins. by Act 25 of 1950, s.11 and Sch. IV, omitted by
Act 41 of 1954, s.2 and Sch.

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

6. Subs. by Act 40 of 1991, S.2 (w.e.f. 20-9-1991).

———————————————————————-
3.1* * * *

(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

CHAPTER II

LEVY AND COLLECTION OF DUTY
3.Duties specified in the Schedule to the Central Excise Tariff
Act, 1985 to be levied. (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 2[India]
and a duty on salt manufactured in, or imported by land into, any part of 2[India] as, and at the rates, set forth in the 3[Schedule to the
Central Excise Tariff Act, 1985:] (5 of 1986)

4[Provided that the duties of excise which shall be levied and collected on any 5[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.

6[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.]

7[(1A) The provisions of sub-section (1) shall apply in respect of all excisable goods other than salt which are produced or manufactured in India by, or on behalf of, Government, as they apply in respect of goods which are not produced or manufactured by
Government.]

(2) The Central Government may, by notification in the Official
Gazette, fix, for the purpose of levying the said duties, tariff values of any articles enumerated, either specifically or under general headings, in the 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.

———————————————————————-

1. Cl. (jj) ins. by the A.O. 1950, omitted by Act 25 of 1950, s.11 and Sch. IV.

2. Subs. by s. 11 and Sch. IV, ibid., for “the States”.

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

4. Ins. by Act 14 of 1982, s. 46.5. Subs. by Act 21 of 1984, s. 45, for certain words.

6. Subs. by s. 45, ibid., for Explanation 2.7. Subs. by Act 30 of 1963, s. 3, for sub-section (1A) (w.e.f.
1-10-1963).

———————————————————————-

4.1[(3) Different tariff values may be fixed-

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

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

(i) produced or manufactured by different classes of producers or manufacturers; or

(ii) sold to different classes of buyers:

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

2 3A. [Emergency. power of Central Government to increase duties of excise.] [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.

4.Valuation of excisable goods for purposes of charging of duty of excise.

3[4. Valuation of excisable goods for purposes of charging of duty of excise. (1) Where under this Act, the duty of excise is chargeable on any excisable goods with reference to value, such value shall, subject to the other provisions of this section, be deemed to be-

(a) the normal price thereof, that is to say, the price at which such goods are ordinarily sold by the assessee to a buyer in the course of wholesale trade for delivery at the time and place of removal, where the buyer is not a related person and the price is the sole consideration for the sale :

Provided that-

(i) where, in accordance with the normal practice of the wholesale trade in such goods, such goods are sold by the assessee at different prices to different classes of buyers (not being related persons) each such price shall, subject to the existence of the other circumstances specified in clause (a), be deemed to be the normal price of such goods in relation to each such class of buyers;

(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.----------------------------------------------------------------------

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

2. Ins. by Act 81 of 1956, s. 2.3. Subs. by Act 22 of 1973, s. 2, for s. 4 (w.e.f. 1-10-1975).

----------------------------------------------------------------------

5.(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.

1[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, 2[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

———————————————————————-

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

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

———————————————————————

6.
(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.]

5.Remission of duty on goods found deficient in quantity.

1[5.Remission of duty on goods found deficient in quantity. (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.]

8[5A. 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 pro-
duced 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 th 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.]

6.Registration of certain persons.

9[6. Registration of certain persons. Any prescribed person who is engaged in-

(a) the production or manufacture or any process of pro-
duction 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.]

9 xxx.

8.Restriction on possession of goods specified in the Second Schedule.

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 shall, except as provided by rules made under this Act, have in his possession 5[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.

9.Offences and penalties.

9.Offences and penalties. 6[(1)] Whoever commits any of the following offences, namely.-

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

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

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

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

———————————————————————–

1. Ins. by Act 25 of 1978, s.20 (w.e.f. 1-7-1978). The original s.5 was omitted by Act 41 of 1954, s. 2 and Sch.

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

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

4. Subs. by Act 18 of 1956, s. 33, for “any excisable goods specified in this behalf in Part A of the second Schedule”.

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

6 S. 9 renumbered as sub-section (1) of that section by Act 36 of
1973, s. 20.7. Ins. by s.20, ibid.

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

9. Subs. & omitted by Act 18 of 1992, s.113.———————————————————————–

7.(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;

1[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[(2) If any person convicted of an offence under this section is again convicted of an offence under this section, then, he shall be punishable for the second and for every subsequent offence with imprisonment for a term which may extend to seven years and with fine:

Provided that in the absence of special and adequate reasons to the contrary to be recorded in the judgment of the Court such imprisonment shall not be for a term of less than six months.

(3) For the purposes of sub-sections (1) and (2), the following shall not be considered as special and adequate reasons for awarding a sentence of imprisonment for a term of less than six months, namely:-

(i) the fact that the accused has been convicted for the first time for an offence under this Act;

(ii) the fact that in any proceeding under this Act, other than a prosecution, the accused has been ordered to pay a penalty or the goods in relation to such proceedings have been ordered to be confiscated or any other action has been taken against him for the same act which constitutes the offence;

(iii) the fact that the accused was not the principal offender and was acting merely as a carrier of goods or otherwise was a secondary party in the commission of the offence;

(iv) the age of the accused.]

3[9A. Certain offences to be non-cognisable. Notwithstanding anything contained in the Code of Criminal Procedure, 1898 4,(5 of
1898) offences under section 9 shall be deemed to be non-cognisable within the meaning of that Code.

5[9AA. 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.

----------------------------------------------------------------------

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

2.Ins. by s. 20, ibid.

3. Ins. by s. 21, ibid.

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

5. Ins. by Act 79 of 1985, s. 2.----------------------------------------------------------------------

8.(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).
———————————————————————-

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

10.Power of Courts to order forfeiture.

10.Power of Courts to order forfeiture. 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.

11.Recovery of sums due to Government.

11.Recovery of sums due to Government. In respect of duty and any other sums of any kind payable to the Central Government under any of the provisions of this Act or of the rules made thereunder, 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.

2[11A. 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 wilful misstatement or suppression of facts, or contravention of any of the provisions of this Act or of the rules made thereunder with intent to evade payment of duty, by such person or his agent, the provisions of this sub-section shall have effect, 3[as if (5 xxx),] 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;

———————————————————————-

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 & subs. by Act 18 of 1992, s.113.———————————————————————-

10.(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 thereunder;

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

(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 1[from the relevant date 4["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]:

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

2* * * * * *

4["(2) if, on receipt of any such application, the Assistant Col-
lector 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 manufac-
ture of goods which are exported out of India;

(b) unspent advance deposits lying in balance in the applicants 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 notifica-
tion 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 thereunder or any other law for the time being in force, no refund shall be made except as provided in sub-section (2).

(4) Every notification under clause (f) of the first proviso to 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 thereunder.

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

3[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

----------------------------------------------------------------------

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

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

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

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

----------------------------------------------------------------------

11.(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;

4["(e) 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)]3 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.]

5["(2) 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."]

6[11D. 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 thereunder, 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 accord-
ance 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.

12.Application of the provisions of Act 8 of 1878 to Central excise duties.

12. Application of the provisions of Act 8 of 1878 to Central excise duties. The Central Government may, by notification in the
Official Gazette, declare that any of the provisions of the Sea
Customs Act, 1878 1, relating to the levy of and exemption from customs duties, drawback of duty, warehousing, offences and penalties, confiscation, and procedure relating to offences and appeals shall, with such modifications and alterations as it may consider necessary or desirable to adapt them to the circumstances, be applicable in regard to like matters in respect of the duties imposed by section 3.
CHAP

INDICATING AMOUNT OF DUTY IN THE PRICE OF GOODS, ETC., FOR PURPOSEOF REFUND AND
CREDITING CERTAIN AMOUNTS TO THE FUND

7["CHAPTER IIA

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.
Notwithstanding anything contained in this Act or any other law for the time being in force, every person who is liable to pay duty of excise on any goods shall, at the time of clearance of the goods, prominently indicate in all the documents relating to assessment, sales invoice, and other like documents, the amount of such duty which will form part of the price at which such goods are to be sold.

12B. Presumption that incidence of duty has been passed on to the buyer. Ever person who has paid the duty of excise on any goods under this Act shall, unless the ,contrary is proved by him, be deemed to have passed on the full incidence of such duty to the buyer of such goods.

12C. Consumer Welfare Fund. (1) There shall be established by the
Central Government a fund, to be called the Consumer Welfare Fund.

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

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

(b) the amount of duty of customs referred to in sub-
section (2)of section 27 or sub-section (2) of section 28A, or sub-section (2) of section 28B of the Customs Act, 1962;

(c) any income from investment of the amount credited to the Fund and any other monies received by the Central Govern-
ment for the purposes of this Fund.

12D. Utilisation of the Fund. (1) Any money credited to the Fund shall be utilised by the Central Government for the welfare of the consumers in accordance with such rules as that Government may make in this behalf.

(2) The Central Government shall maintain or, if it thinks fit, specify the authority which shall maintain, proper and separate ac-
count and other relevant records in relation to the Fund in such form as may be prescribed in consultation with the Comptroller and Auditor-
General of India."]

CHAPTER III

POWERS AND DUTIES OF OFFICERS AND LANDHOLDERS

8[12E] Powers of Central Excise Officers. (1)A Central Excise
Officer may exercise the powers and discharge the duties conferred or imposed under this Act on any other Central Excise Officer who is subordinate to him.

———————————————————————–

1. See now the Customs Act, 1962 (52 of 1962).

2. Ins. by Act 79 of 1985, s. 4.3 Renumbered and ins. by Act 29 of 1988, S.10 (w.e.f. 1-7-1988).

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

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

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

7 Ins. by S.6, ibid. (w.e.f. 20-9-1991).

8 Renumbered by Act 40 of 1991, S.7 (w.e.f. 20-9-1991).

———————————————————————–

12.(2) Notwithstanding anything contained in sub-section (1), the
Collector of Central Excise (Appeals) shall not exercise the powers and discharge the duties conferred or imposed on a Central Excise
Officer other than those specified in section 14 or Chapter VIA.]

13.Power to arrest.

13. Power to arrest. (1) Any Central Excise Officer duly empowered by the Central Government in this behalf may arrest any person whom he has reason to believe to be liable to punishment under this Act.

(2) Any person accused or reasonably suspected of committing an offence under this Act or any rules made thereunder, who on demand of any officer duly empowered by the, Central Government in this behalf refuses to give his name and residence, or who gives a name or residence which such officer has reason to believe to be false, may be arrested by such officer in order that his name and residence may be ascertained.

14.Power to summon persons to give evidence and produce documents in inquiries under this Act.

14. Power to summon persons to give evidence and produce documents in inquiries under this Act. (1) Any Central Excise Officer duly empowered by the Central Government in this behalf shall have power to summon any person whose attendance he considers necessary either to give evidence or to produce a document or any other thing in any inquiry which such officer is making for any of the purposes of this Act. A summons to produce documents or other things may be for the production of certain specified documents or things or for the production of all documents or things of a certain description in the possession or under the control of the person summoned.

(2) All persons so summoned shall be bound to attend, either in person or by an authorised agent, as such officer may, direct; and all persons so summoned shall be bound to state the truth upon any subject respecting which they are examined or make statements and to produce such documents and other things as may be required:

Provided that the exemptions under sections 132 and 133 of the
Code of Civil Procedure shall be applicable to requisitions for attendance under this section. (5 of 1980).

(3) Every such inquiry as aforesaid shall be deemed to be a
“judicial proceeding” within the meaning of section 193 and section
228 of the Indian Penal Code. (45 of 1860).

15. Officers required to assist Central Excise Officers. All officers of Police and Customs and all officers of Government engaged in the collection of land revenue, and all village officers are hereby empowered and required to assist the Central Excise Officers in the execution of this Act.

16. Owners or occupiers of land to report manufacture of contraband excisable goods. Every owner or occupier of land, and the agent of any such owner or occupier,in charge of the management of-
that land, if contraband excisable goods are manufactured thereon, shall in the absence of reasonable excuse be bound to give notice of such manufacture to a Magistrate, or to an officer of the Central
Excise, Customs, Police, or Land Revenue Department, immediately the fact comes to his knowledge.

17. Punishment or connivance at offences. Any owner or occupier of land, or any agent of such owner or occupier in charge of the management of that land, who wilfully connives at any offence against the provisions of this Act or of any rules made thereunder shall for every Such offence be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to five hundred rupees, or with both.

18.Searches and arrests how to be made. All searches made under this Act or any rules made thereunder and all arrests made under this
Act shall be carried out in accordance with the provisions of the Code of Criminal Procedure, 18981, relating respectively to searches and arrests made under that Code. (5 of 1898).

19. Disposal of persons arrested. Every person arrested under this Act shall be forwarded without delay to the nearest Central
Excise Officer empowered to send persons so arrested to a Magistrate, or, if there is no such Central Excise Officer within a reasonable distance,-to the officer-in-charge of the nearest police-station.

20. Procedure to be followed by officer-in-charge of police station. The officer-in-charge of a police-station to whom any person is forwarded under section 19 shall either admit him to bail to appear before the Magistrate having jurisdiction, or in default of bail forward him in custody to such Magistrate.

———————————————————————-

1. See row the Code of Criminal Procedure, 1973 (2 of 1974).
———————————————————————-

13.21.Inquiry how to be made by Central Excise Officers against arrested persons forwarded to them under section 19.21.Inquiry how to be made by Central Excise Officers against arrested persons forwarded to them under section 19. (1) When any person is forwarded under section 19 to a Central Excise Officer empowered to send persons so arrested to a Magistrate, the Central
Excise Officer shall proceed to inquire into the charge against him.

(2) For this purpose the Central Excise Officer may exercise the same powers and shall be subject to the same provisions as the officer-in-charge of a police-station may exercise and is subject to under the Code of Criminal Procedure, 18981, when investigating a cognizable case : (5 of 1898).

Provided that-

(a) if the Central Excise Officer is of opinion that there is sufficient evidence or reasonable ground of suspicion against the accused person, he shall either admit him to bail lo appear before a Magistrate having jurisdiction in the case, or forward him in custody to such Magistrate;

(b) if it appears to the Central Excise Officer that there is not sufficient evidence or reasonable ground of suspicion against the accused person, he shall release the accused person on his executing a bond, with or without sureties as the Central Excise Officer may direct, to appear, if and when so required before the Magistrate having jurisdiction, and shall make a full report of all the particulars of the case to his official superior.

22.Vexatious search, seizure, etc., by Central Excise Officer.

22. Vexatious search, seizure, etc., by Central Excise Officer.
Any Central Excise or other officer exercising powers under this Act or under the rules made thereunder who-

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

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

(c) vexatiously and unnecessarily seizes the moveable property of any person, on pretence of seizing or searching for any article liable to confiscation under this Act;

(d) commits, as such officer, any other act to the injury of any person, without having reason to believe that such act is required for the execution of his duty;

shall, for every such offence, be punishable with fine which may extend to two thousand rupees.

Any person wilfully and maliciously giving false information and so causing an arrest or a search to be made under this Act shall be punishable with fine which may extend to two thousand rupees or with imprisonment for a term which may extend to two years or with both.

23.Failure of Central Excise Officer in duty.

23.Failure of Central Excise Officer in duty. Any Central Excise
Officer who ceases or refuses to perform or withdraws himself from the duties of his office, unless he has obtained the express written per-
mission of the Collector of Central Excise, or has given to his superior officer two months notice in writing of his intention or has other lawful excuse, shall on conviction before a Magistrate be punishable with imprisonment for a term which may extend to three months or with fine which may extend to three months pay, or with both.

CHAPTER IV

TRANSPORT BY SEA

24. Penalties for carrying excisable goods in certain vessels.
When any excisable goods are carried by sea in any vessel other than a vessel of the burden of three hundred tons and upwards, the owner and master of such vessel shall each be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

———————————————————————-
1. See now the Code of Criminal Procedure, 1973. (Act 2 of
1974).
———————————————————————-

14.25.Exceptions.

25. Exceptions. Nothing in section 24 applies to-

(a) any excisable goods covered by a permit granted under rules made under this Act;

(b) any excisable goods covered by a pass granted by any officer whom the 1[Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963]
may appoint in this behalf; (54 of 1963).

(c) such amount of excisable goods carried on board any vessel for consumption by her crew or by the passengers or animals (if any) on board as the 1[Central Board of Excise and Customs constituted under the Central Boards of Revenue
Act, 1963] may from time to time exempt from the operation of section 24. (54 of 1963).

26.Power of stoppage, search and arrest.

26.Power of stoppage, search and arrest. When any officer-
empowered by the 1[Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963], (54 of 1963) to act
Under this section has reason to believe, from personal knowledge or from information taken down in writing, that any excisable goods are being carried, or have within the previous twenty-four hours been carried, in any vessel so as to render the owner or master of such vessel liable to the penalties imposed by section 24, he may require such vessel to be brought-to and thereupon may-

(a) enter and search the vessel;

(b) require the master of the vessel to produce any documents in his possession relating to the vessel or the cargo thereof;

(c) seize the vessel if the officer has reason to believe it liable to confiscation under this Act, and cause it to be brought with its crew and cargo into any port in 2[India];
and

(d) where any excisable goods are found on board the vessel, search and arrest without a warrant any person on board the vessel whom he has reason to believe to be punishable under section 24.27.Penalties for resisting officer.

27.Penalties for resisting officer. Any master of a vessel refusing or neglecting to bring-to the vessel or to produce his papers when required to do so by an officer acting under section 26, and any person obstructing any such officer in the performance of his duty, may be arrested by such officer without a warrant, and shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to one thousand rupees, or with both.

28.Confiscation of vessel and cargo.

28.Confiscation of vessel and cargo. (1) Every vessel (including all appurtenances) in which any excisable goods are carried so as to render the owner or master of such vessel liable to penalties imposed by section 24, the cargo on board such vessel and the excisable goods in respect of which an offence under this Act has been committed shall be liable to confiscation on the orders of the officer empowered in this behalf by the Central Government.

(2) Whenever any Customs Officer is satisfied that any article is liable to confiscation under this section he may seize such article, and shall at once report the seizure to his superior officer for the information of the officer empowered to order confiscation under sub-section (1) and such officer may, if satisfied on such report or after making such inquiry as he thinks fit, that the article so seized is liable, to confiscation, either declare it to be confiscated, or impose a fine in lieu thereof not exceeding the value of the article.

29.Jurisdiction.

29. Jurisdiction. Any offence punishable under section 24 or section 27 may be deemed to have been committed within the limits of the jurisdiction of the Magistrate of any place where the offender is found, or to which, if arrested under section 26 or section 27, he may be brought.

30.

Power to exempt from operation of his Chapter.

30.Power to exempt from operation of his Chapter. The Central
Government may, by notification in the Official Gazette, exempt the carriage of excisable goods within any local limits or in any class of vessels from the operation of this Chapter, and, by like notification, again subject such carriage to the operation of this Chapter.

———————————————————————-

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

2.Subs. by Act 25 of 1950, s. 11 and Sch. IV, for the States”.

CHAPTER V

SPECIAL PROVISIONS RELATING TO SALT

31.Special and permanent rights of manufacturing salt to be recognised. The proprietor of a private salt factory who has by virtue of a sanad granted by 1[the Government] or any former Government, a special and permanent right to manufacture salt, or to excavate or collect natural salt, shall on application made in accordance with the rules made under this Act be entitled to a licence for such purpose and to the annual renewal thereof, unless on a breach of the provisions of this Act, his licence has been cancelled by an officer duly empowered by the Central Government in this behalf.

32.Rights of ordinary proprietors of existing salt-works. Every proprietor of a private salt-work, other than a private salt factory, to which section 31 applies, of which, under the provisions of section
17 of the Bombay Salt Act, 1890, (Bom. Act 11 of 1890) the proprietor was entitled on application to a licence to manufacture or to excavate or collect natural salt at such factory, shall continue to be entitled, on, application made in accordance with the rules made under this Act, to a licence for such purpose and to the annual renewal thereof, unless on a breach of the provisions of this Act his licence has been cancelled by an officer duly empowered by the Central
Government in this behalf:

Provided that the Collector of Central Excise may at any time withdraw or withhold a licence from the proprietor of any such salt factory, if no salt has been manufactured, excavated or collected in such salt factory for the three years ending on the thirtieth day of
June last preceding the date of his order, or, with the previous sanction of the 2[Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963],(54 of 1963) if such salt factory has not produced, on an average, during the said three years, at least five thousand maunds. of salt per annum.

CHAPTER VI

ADJUDICATION OF CONFISCATIONS AND PENALTIES

33.Power of adjudication. Where by the rules made under this Act anything is liable to confiscation or any person is liable to a penalty, such confiscation or penalty may be adjudged-

(a) without limit, by a Collector of Central Excise;

(b) up to confiscation of goods not exceeding five hundred rupees in value and imposition of penalty not exceeding two hundred and fifty rupees, by an Assistant Collector of
Central Excise :

Provided that the 2[Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963] (54 of
1963) may, in the case of any officer performing the duties of an
Assistant Collector of Central Excise, reduce the limits indicated in clause (b) of this section and may confer on any officer the powers indicated in clause (a) or (b) of this section.

34.Option to pay fine in lieu of confiscation.

34.Option to pay fine in lieu of confiscation. Wherever confiscation is adjudged under this Act or the rules made thereunder, the officer adjudging it shall give the owner of the goods an option to pay in lieu of confiscation such fine as the officer thinks fit.

3[34A. Confiscation or penalty not to interfere with other punishments. No confiscation made or penalty imposed under the provisions, of this Act or of any rule made thereunder shall prevent the infliction of any other punishment to which the person affected thereby is liable under the provisions of this Act or under any other law.]

———————————————————————-

1. Subs. by the A.0. 1950, for “The British”.

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

3. Ins. by Act 36 of 1973, s.22.———————————————————————-

1[CHAPTER VIA

APPEALS

35.Appeals to Collector (Appeals).

35.Appeals to Collector (Appeals). (1) Any person aggrieved by any decision or order passed under this Act by a Central Excise
Officer lower in rank than a Collector, of Central Excise may appeal to the Collector of Central, Excise (Appeals) [hereafter in this
Chapter referred to as the Collector (Appeals)] within three months from the date of the communication to him of such decision or order:

Provided that the Collector (Appeals) may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months, allow it to be presented within a further period of three months.

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

35A.Procedure in appeal. (1) The Collector (Appeals). shall give an opportunity to the appellant to be heard, if he so desires.

(2) The Collector (Appeals) may, at the hearing of an appeal, allow an appellant to go into any ground of appeal not specified in the grounds of appeal, if the Collector (Appeals) is satisfied that the omission of that ground from the grounds of appeal was not wilful or unreasonable.

(3) The Collector (Appeals), may, after making such further inquiry as may be necessary, pass such order as he thinks fit confirming, modifying or annulling the decision or order appealed against, or may refer the case back to the adjudicating authority with such directions as he may think fit for a fresh adjudication or decision, as the case may be, after taking additional evidence, if necessary :

Provided that an order enhancing any penalty or fine in lieu of confiscation or confiscating goods of greater value or reducing the amount of refund shall not be passed unless the appellant has been given a reasonable opportunity of showing cause against the proposed order:

Provided further that where the Collector (Appeals) is of opinion that any duty of excise has not been levied or paid or has been short-
levied or short-paid or erroneously refunded, no order requiring the appellant to pay any duty not levied or paid, short-levied or short-
paid or erroneously refunded shall be passed unless the appellant is given notice within the time limit specified in section 11 A to show cause against the proposed order.

(4) The order of the Collector (Appeals) disposing of the appeal shall be in writing and shall state the points for determination the decision thereon and the reasons for the decision.

(5) On the disposal of the appeal, the Collector (Appeals) shall communicate the order passed by him to the appellant, the adjudicating authority and the Collector of Central Excise.

35B. Appeals to the Appellate Tribunal. (1) Any person aggrieved by any of the following orders may appeal to the Appellate Tribunal against such order-

(a) a decision or order passed by the Collector of Central
Excise as an adjudicating authority;

(b) an order passed by the Collector (Appeals) under section 35A;

(c) an order passed by the Central Board of Excise and
Customs constituted under the Central Boards of Revenue Act,
1963 (54 of 1963) (hereafter in this Chapter referred to as the Board) or the Appellate Collector of Central Excise under section 35, as it stood immediately before the appointed day;

———————————————————————-

1. Subs. by Act 44 of 1980, s. 50 and Sch. V. for ss. 35, 35A
and 36 (w.e.f. 11-10-1982).

———————————————————————-

17.(d) an order passed by the Board or the Collector of Central
Excise, either before or after the appointed day, under section 35A, as it stood immediately before that day:

1[Provided that no appeal shall lie to the Appellate Tribunal and the Appellate Tribunal shall not have jurisdiction to decide any appeal in respect of any order referred to in clause (b) if such order relates to,-

(a) a case of loss of goods, where the loss occurs in transit from a factory to a warehouse or to another factory, or from one warehouse to another, or during the course of processing of the goods in a warehouse or in storage, whether in a factory or in a warehouse;

(b) a rebate of duty of excise on goods exported to any country or territory outside India or on excisable materials used in the manufacture of goods which are exported to any country or territory outside India;

(c) goods exported outside India (except to Nepal or
Bhutan) without payment of duty :

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

(i) in any disputed case, other than a case where the determination of any question having a relation to the rate of duty of excise or to the value,of goods for purposes of assessment is in issue or is one of the points in issue, the difference in duty involved or the duty involved ; or

(ii) the amount of fine or penalty determined by such order,

does not exceed [fifty thousand rupees]4.2[(1A) Every appeal against any order of the nature referred to in the first proviso to sub-section (1), which is pending immediately before the commencement of section 47 of the Finance Act, 1984, (21 of
1984) before the Appellate Tribunal and any matter arising out of, or connected with, such appeal and which is so pending shall stand transferred on such commencement to the Central Government, and the
Central Government shall deal with such appeal or matter under section
35EE as if such appeal or matter were an application or a matter arising out of an application made to it under that section.)

3(2) The Collector of Central Excise may, if he is of opinion that an order passed by the Appellate Collector of Central Excise tinder section 35, as it stood immediately before the appointed day, or the Collector (Appeals) under section 35A, is not legal or proper, direct any Central Excise Officer authorised by him in this behalf
(hereafter in this Chapter referred to as the authorised officer) to appeal on his behalf to the Appellate Tribunal against such order.

(3) Every appeal under this section shall be filed within three months from the date on which the order sought to be appealed against is communicate to the Collector of Central Excise, or, as the case may be, the other party preferring the appeal.

(4) On receipt of notice that an appeal has been preferred under this section, the party against whom the appeal has been preferred may, notwithstanding that. he may not have appealed against such order or any part thereof, file, within forty-five days of the receipt of the notice, a memorandum of cross objections verified in the prescribed manner against any part of the order appealed against and such memorandum shall be disposed of by the Appellate Tribunal as if it were an appeal, presented within the time specified in sub-section
(3).

---------------------------------------------------------------------

1. Subs. by Act 21 of 1984, s. 47, for "Provided that".

2. Ins. by s. 47, ibid.

3. Sub-section (2) shall stand subs. by Act 62 of 1986, s. 34.(date to be notified) as follows :-

(2) The Collector of Central Excise may, if he is of opinion that an order passed by--

(a) the Appellate Collector of Central Excise under section
35, as it stood immediately before the appointed day, or

(b) the Collector (Appeals) under section 35A, is not legal or proper, direct any Central Excise Officer authorised by him in this behalf (hereafter in this Chapter referred to as the authorised officer) to appeal on his behalf to the
Appellate Tribunal or, as he case may be, the Customs, and
Excise Revenues Appellate Tribunal established under section
3 of 62 of 1986 the Customs And Excise Revenues Appellate
Tribunal Act, 1986, against such order".

4 Subs. by Act 38 of 1993, S.45.-----------------------------------------------------------------------

18.(5) The Appellate Tribunal may admit an appeal or permit the filing of a memorandum of cross-objections after the expiry of the relevant period referred to in sub-section (3) or sub-section (4), if it is satisfied that there was sufficient cause for not presenting it within that period.

3["(6) An appeal to the Appellate Tribunal shall be in the prescribed form and shall be verified in the prescribed manner and shall, in the case of an appeal made on or after the 1st day of June,
1993, irrespective of the date of demand of duty Pr of levy of penalty in relation to which the appeal is made, be accompanied by a fee of,-

(a) where the amount of duty demanded and penalty levied by any Central Excise Officer in the case to which the appeal relates is one lakh rupees or less, two hundred rupees :

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

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

35C. Orders of Appellate Tribunal. (1) The Appellate Tribunal may, after giving the parties to the appeal an opportunity of being, heard, pass such orders thereon as it thinks fit, confirming, modifying or annulling the decision or order appealed against or may refer the case back to the-authority which passed such decision or order with such directions as the Appellate Tribunal may think fit, for a fresh adjudication or decision, as the case may be, after taking additional evidence, if necessary.

(2) The Appellate Tribunal may, At any time within four years from the date of the order, with a view to rectifying any mistake apparent from the record, amend any order passed by it under sub-
section (1) and shall make such amendments if the mistake is brought to its notice by the Collector of Central Excise or the other party to the appeal:

Provided that an amendment which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the other party, shall not be made under this sub-section, unless the Appellate Tribunal has given notice to him of its intention to do so and has allowed him a reasonable opportunity of being heard.

(3) The Appellate Tribunal shall send a copy of every order passed under this section to the Collector of Central Excise and the other party to the appeal.

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

35D. Procedure of Appellate Tribunal. (1) The provisions of sub-sections (1), (2), (5) and (6) of section 129C of the Customs Act,
1962, shall apply to the Appellate Tribunal in the discharge of its functions under this Act as they apply to it in the discharge of its functions under the Customs Act, 1962. (52 of 1962)

(2) Every appeal against a decision or order relating, among other things, to the determination of any question having a relation to the rate of duty of excise or to the value of goods for purposes of assessment, shall be heard by a Special Bench constituted by the
President for hearings such appeals and such Bench-shall consist of not less than “[two members] and shall include at least one judicial member and one technical member.

(3) The President or any other member of the Appellate Tribunal authorised in this behalf by the President may, sitting singly, dispose of any case which has been allotted to the Bench of which he is a member where-

(a) in any disputed case, other than a case where the determination of any question having a relation to the rate of duty of excise or to the value of goods for purposes of assessment is in issue or is one of the points in issue, the difference in duty involved or the duty involved; or

(b) the amount of fine or penalty involved,

does not exceed 3[one lakh rupees]

———————————————————————-

1. Subs. by Act 79 of 1985, s. 5, for “three members”.

2. Subs. Act 21 of 1984, s. 48 for “ten thousand rupees”

3 Subs. by Act 38 of 1993, S.45.———————————————————————-

19.35E. Powers of Board or Collector of Central Excise to pass certain orders. (1) The Board may, of its own motion, call for and examine the record of any proceeding in which a Collector of Central
Excise as an adjudicating authority has passed any decision or order under this Act for the purpose of satisfying itself as to the legality or propriety of any such decision or order and may, by order, direct such Collector to apply to the, Appellate Tribunal 1[or, as the case may be, the Customs and Excise Revenues Appellate Tribunal established under section 3 of the Customs and Excise Revenues Appellate Tribunal
Act, 1986] (62 of 1986) for the determination of such points arising out of the decision or order as may be specified by the Board in its order.

(2) The Collector of Central Excise may, of his own motion, call for and examine the record of any proceeding in which an adjudicating authority subordinate to him has passed any decision or order under this Act for the purpose of satisfying himself as to the legality or propriety of any such decision or order and may, by order, direct such authority to apply to the Collector (Appeals) for the determination of such points arising out of the decision or order as may be specified by the Collector of Central Excise in his order.

(3) No order shall be made under sub-section (1) or sub-section
(2) after the expiry of 2[one year ] from the date of the decision or order of the adjudicating authority.

(4) Where in pursuance of an order under subsection (1) or sub-
section the adjudicating authority or the authorised officer makes an application to the Appellate Tribunal 1[or, as the case may be, the
Customs and Excise Revenues Appellate Tribunal established under section 3 of the Customs and Excise Revenues Appellate Tribunal Act,
1986] (62 of 1986) or the Collector (Appeals) within a period of three months from the date of communication of the order under sub-section
(1) or sub-section (2) to the adjudicating authority, such application shall be heard by the Appellate Tribunal 1[or, as the case may be, the
Customs and Excise Revenues Appellate Tribunal established under section 3 of the Customs and Excise Revenues Appellate Tribunal Act,
1986] or the Collector (Appeals), as the case may be, as if such application were an appeal made against the decision or order of the adjudicating authority and the provisions of this Act regarding appeals, including the provisions of sub-section (4) of section 35B
1[or, as the case may be the provisions of the Customs and Excise
Revenues Appellate Tribunal Act, 1986] shall, so far as may be, apply to such application.

4[(5) The provisions of this section shall not apply to any decision or order in which the determination of any question having a relation to the rate of duty of excise or to the value of goods for the purposes of assessment of any duty is in issue or is one of the points in issue.

Explanation.-For the purposes of this sub-section, the determi-
nation of a rate of duty in relation to any goods or valuation of any goods for the purposes of assessment of duty includes the determination of a question-

(a) relating to the rate of duty of excise for the time being in force, whether under the Central Excise Tariff Act,
1985 or under any other Central Act providing for the levy and collection of any duty of excise, in relation to any goods on or after the 28th day of February, 1986; or

(b) relating to the value of goods for the purposes of assessment of any duty of excise in cases where the assessment is made on or after the 28th day of February,
1986; or

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

(d) whether any goods fall under a particular heading or sub-heading of the Schedule to the Central Excise Tariff Act,
1985, (5 of 1986) or the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957) or the
Additional Duties of Excise (Textiles and Textile Articles)
Act, 1978, (40 of 1978) or that any goods are or not covered by a particular notification or order issued by the Central
Government or the Board, as the case may be, granting total or partial exemption from duty; or

(e) whether the value of any goods for the purposes of assessment of duty of excise shall be enhanced or reduced by the addition or reduction of the amounts in respect of such matters as are specifically provided in this Act.]

5[35EA. Powers of revision of Board or Collector of Central
Excise in certain cases. (1) The Board may, of its own motion or on the application of any aggrieved person or otherwise, call for and examine the record of any proceeding in which a Collector of Central
Excise has passed any decision or order [not being a decision or order passed under sub-section (2) of this section] of the nature referred to in sub-section (5) of section 35E for the purpose of satisfying itself as to correctness, legality or propriety of such decision or order and may pass such order thereon as it thinks fit.

(2) The Collector of Central Excise may, of his own motion or on the application of any aggrieved person or otherwise, call for and examine the record of any proceeding in which an adjudicating authority subordinate to him has passed any decision or order of the nature referred to in sub-section (5) of section 35E for the purpose of satisfying himself as to the correctness, legality or propriety of such decision or order and may pass such order thereon as he thinks fit.

(3) (a) No decision or order under this section shall be made so as to prejudicially affect any person unless such person is given a reasonable opportunity of making representation and if, he so desires, of being heard in his defence.

(b) Where the Board or, as the case may be, the Collector of
Central Excise is of the opinion that any duty of excise has not been levied or has been short-levied or short-paid or erroneously refunded, no order requiring the affected person to pay any duty not levied or paid, short-levied or short-paid or erroneously refunded shall be passed under this section unless such person is given notice within the time limit specified in section 11A to show cause against the proposed order.

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

Provided that in respect of any decision or order passed before the commencement of the Customs and Central Excises Laws (Amendment)
Act, 1987, the provisions of this sub-section shall have effect as if for the words “six months”, the words “one year” were substituted.

(5) Any person aggrieved by any decision or order passed under sub-section (1) or sub-section (2) may appeal to the Customs and
Excise Revenues Appellate Tribunal established under section 3 the
Customs and Excise Revenues Appellate Tribunal Act, 1986, against such decision or order.”]

3[35EE. Revision by Central Government. (1) The Central
Government may, on the application of any person aggrieved by any order passed under section 35A, where the order is of the nature referred to in the first proviso to, sub-section (1) of section 35B, annul or modify such order.

Explanation.-For the purposes of this sub-section, "order passed under section 35A" includes an order passed under that section before the commencement of section 47 of the Finance Act, 1984 (21 of 1984)
against which an appeal has not been preferred before such commencement and could have been. if the said section had not come into force, preferred after such commencement, to the Appellate
Tribunal.

(2) An application under sub-section (1) shall be made within three months from the date of the communication to the applicant of the order against which the application is being made:

Provided that the Central Government may, if it is satisfied that the applicant was prevented by sufficient cause from presenting the application within the. aforesaid period of three months, allow it to be presented within a further period of three months.

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

(4) The Central Government may, of its own motion, annul or modify any order referred to in sub-section (1).

----------------------------------------------------------------------

1. Ins. by Act 62 o. 1986, s. 34 (date to be notified).

2. Subs. by Act 21 of 1984, s. 49, for "two years".

3. Ins. by Act 21 of 1984, s.50.

4 Ins. by Act 29 of 1988, S.11 (w.e.f. ............)

5 Ins. by S.12, ibid. (w.e.f..........)

----------------------------------------------------------------------

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

(a) in any case in. which an order passed under section 35A
has enhanced any penalty or fine in lieu of confiscation or has confiscated goods of greater value, and

(b) in any other case, unless the person affected by the proposed order has been given notice to show cause against it within one year from the date of the order sought to be annulled or modified.

(6) Where the Central Government is of opinion that any duty of excise has not been levied or has been short-levied, no order levying or enhancing the duty shall be made under this section unless the person affected by the proposed order is given notice to show cause against it within the time limit specified in section 11A.]

35F. Deposit, pending appeal of duty demanded or penalty levied.
Where in any appeal under this Chapter, the decision or order appealed against relates to any duty demanded in respect of goods which are not under the control of central excise authorities or any penalty levied under this Act, the person desirous of appealing against such decision or order shall, pending the appeal, deposit with the adjudicating authority the duty demanded or the penalty levied :

Provided that where in any particular case, the Collector
(Appeals) or the Appellate Tribunal is of opinion that the deposit of duty demanded or penalty levied would cause undue hardship to such person, the Collector (Appeals) or, as the case may be, the Appellate
Tribunal, may dispense with such deposit subject to such conditions as he or it may deem fit to impose so as to safeguard the interests of revenue.

35G. Statement of case to High Court. (1) The Collector of
Central Excise or the other party may, within sixty days of the date upon which he is served with notice of an order under section 35C (not being an order relating, among other things, to the determination of any question having a relation to the rate of duty of excise or to the value of goods for purposes of assessment), by application in the prescribed form, accompanied, where the application is made by the other party, by a fee of two hundred rupees, require the Appellate
Tribunal to refer to the High Court any question of law arising out of such order and, subject to the other provisions contained in this section, the Appellate Tribunal shall, within one hundred and twenty days of the receipt of such application, draw up a statement of the case and refer it to the High Court:

Provided that the Appellate Tribunal may, if it is satisfied that the applicant was prevented by sufficient cause from presenting the application within the period hereinbefore specified, allow it to be presented within a further period not exceeding thirty days.

(2) On receipt of notice that an application has been made under sub-section (1), the person against whom such application has been made, may, notwithstanding that he may not have filed such an application, file, within forty-five days of the receipt of the notice, a memorandum of cross-objections verified in the prescribed manner against any part of the order in relation to which an application for reference has been made and such memorandum shall be disposed of by the Appellate Tribunal as if it were an application presented within the time specified in sub-section (1).

(3) If, on an application made under sub-section (1), the
Appellate Tribunal refuses to state the case on the ground that no question of law arises, the Collector of Central Excise, or, as the case may be, the other party may, within six months from the date on which he is served with notice of such refusal, apply to the High
Court and the High Court may, if it is not satisfied with the correctness of the decision of the Appellate Tribunal, require the
Appellate Tribunal to state the case and to refer it, and on receipt of any such requisition, the Appellate Tribunal shall state the case and refer it accordingly.

(4) Where in the exercise of its powers under sub-section (3), the Appellate Tribunal refuses to state a case which it has been required by an applicant to state, the applicant may, within thirty days from the date on which he receives notice of such refusal, withdraw his application and, if he does so, the fee, if any, paid by him shall be refunded.

35H. Statement of case to Supreme court in certain cases. If, on an application made under section 35G, the Appellate Tribunal is of opinion that, on account of conflict in the decisions of High Courts in respect of any particular question of law, it is expedient that a reference should be made direct to the Supreme Court, the Appellate
Tribunal may draw up a statement of the case and refer it through the
President direct to the Supreme Court.

21.35I. Power of High Court or Supreme Court to require statement to be amended. If the High Court or the Supreme Court is not satisfied that the statements in a case referred to it are sufficient to enable it to determine the questions raised thereby, the Court may refer the case back to the Appellate Tribunal, for the purpose of making such additions thereto or alterations therein as it may direct in that behalf.

35J. Case before High Court to be heard by not less than two
Judges. (1) When any case has been referred to the High Court under section 35G, it shall be heard by a Bench of not less than two Judges of the High Court and shall be decided in accordance with the opinion of such Judges or of the majority, if any, of such Judges.

(2) Where there is no such majority, the Judges shall state the point of law upon which they differ and the case shall then be heard upon that point only by one or more of the other Judges of the High
Court, and such point shall be decided according to the opinion of the majority of the Judges who have heard the case including those who first heard it.

35K. Decision of High Court or Supreme Court on the case stated.
(1) The High Court or the Supreme Court hearing any such case shall decide the questions of law raised therein and shall deliver its judgment thereon containing the grounds on which such decision is founded and a copy of the judgment shall be sent under the seal of the
Court and the signature of the Registrar to the Appellate Tribunal which shall pass such orders as are necessary to dispose of the case in conformity with such judgment.

(2) The costs of any reference to the High Court or the Supreme
Court which shall not include the fee for making the reference shall be in the discretion of the Court.

35L. Appeal to Supreme Court. An appeal shall lie to the Supreme
Court from-

(a) any judgment of the High Court delivered on a reference made under section 35G in any case which, on its own motion or on an oral application made by or on behalf of the party aggrieved, immediately after the passing of the judgment, the
High Court certifies to be a fit one for appeal to the
Supreme Court; or

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

35M. Hearing before Supreme Court. (1) The provisions of the Code of Civil Procedure, 1908 1, (5 of 1908) relating to appeals to the
Supreme Court shall, so far as may be, apply in the case of appeals under section 35L a, they apply in the case of appeals from decrees of a High Court:

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

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

(3) Where the judgment of the High Court is varied or reversed in the appeal, effect shall be given to the order of the Supreme Court in the manner provided in section 35K in the case of a judgment of the
High Court.

35N. Sums due to be paid notwithstanding reference, etc.
Notwithstanding that a reference has been made to the High Court or the Supreme Court or an appeal has been preferred to the Supreme
Court, sums due to the Government as a result of ail order passed under sub-section (1) of section 35C shall be payable in accordance with the order so passed.

35O. Exclusion of time taken for copy. In computing the period of limitation prescribed for an appeal or application under this
Chapter, the day on which the order complained of was served, and if the party preferring the appeal or making the application was not furnished with a copy of the order when the notice of the order was served upon him, the time requisite for obtaining a copy of such order shall be excluded.

35P. Transfer of certain pending proceedings and transitional provisions. (1) Every appeal which is pending immediately before the appointed day before the Board under section 35, as it stood immediately before that day, and any matter arising out of or connected with such appeal and which is so pending shall stand transferred on that day to the Appellate Tribunal and the Appellate
Tribunal may proceed with such appeal or matter from the stage at which it was on that day:

Provided that the appellant may demand that before proceeding further wit] that appeal or matter, he may be re-heard.

———————————————————————-

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

22.(2) Every proceeding which is pending immediately before the appointed day before the Central Government under section 36, as it stood immediately before that day, and any matter arising out of or connected with such proceeding and which is so pending shall stand transferred on that day to the Appellate Tribunal and the Appellate
Tribunal may proceed with such proceeding or matter from the stage at which it was on that day as if such proceeding or matter were an appeal filed before it:

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

(a) in any disputed case, other than a case where the determination of any question having a relation to the rate of duty of excise or to the value of goods for purposes of assessment is in issue or is one of the points in issue, the difference in duty involved or the duty involved; or

(b) the amount of fine or penalty determined by such order,

does not exceed ten thousand rupees, such proceeding or matter shall continue to be dealt with by the Central Government as if the said section 36 had not been substituted:

Provided further that the applicant or the other party may make a demand to the Appellate Tribunal that before proceeding further with that proceeding or matter, he may be re-heard.

(3) Every proceeding which is pending immediately before the appointed day before the Board or the Collector of Central Excise under section 35A, as it stood immediately before that day, and any matter arising out of or connected with such proceeding and which is so pending shall continue to be dealt with by the Board or the
Collector of Central Excise, as the case may be, as if the said section had not been substituted.

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

35Q. Appearance by authorised representative. (1) Any person who is entitled or required to appear before a Central Excise Officer or the Appellate Tribunal in connection with any proceedings under this
Act, otherwise than when required under this Act to appear personally for examination on oath or affirmation, may, subject to the other provisions of this section, appear by an authorised representative.

(2) For the purposes of this section, “authorised representative” means a person authorised by the person referred to in sub-section (1) to appear on his behalf, being-

(a) his relative or regular employee; or

(b) any legal practitioner who is entitled to practise in any civil court in India; or

(c) any person who has acquired such qualifications as the
Central Government may prescribe for this purpose.

(3) Notwithstanding anything contained in this section, no person who was a member of the Indian Customs and Central Excise
Service-Group A and has retired or resigned from such Service after having served for not less than three years in any capacity in that
Service, shall be entitled to appear as an authorised representative in any proceedings before a Central Excise Officer for a period of two years from the date of his retirement or resignation, as the case may be.

(4) No person,-

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

(b) who is convicted of an offence connected with any proceeding under this Act, the Customs Act, 1962 (52 of 1962)
or the Gold (Control) Act, 1968; or (45 of 1968)

(c) who has become an insolvent,

23.shall be qualified to represent any person under sub-section (1), for all times in the case of a person referred to in clause (a), and for such time as the Collector of Central Excise or the competent authority under the Customs Act, 1962 (52 of 1962) or the Gold
(Control) Act, 1968, (45 of 1968) as the case may be, may, by order, determine in the case of a person referred to in clause (b), and for the period during which the insolvency continues in the case of a person referred to in clause (c).

(5) If any person,-

(a) who is a legal practitioner, is found guilty of misconduct in his professional capacity by any authority entitled to institute proceedings against him, an order passed by that authority shall have effect in relation to his right to appear before a Central Excise Officer or the
Appellate Tribunal as it has in relation to his right to, practise as a legal practitioner;

(b) who is not a legal practitioner, is found guilty of misconduct in connection with any proceedings under this Act by the prescribed authority, the prescribed authority may direct that he shall thenceforth be disqualified to represent any person under sub-section (1).

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

(a) no such order or direction shall be made in respect of any person unless he has been given a reasonable opportunity of being heard;

(b) any person against whom any such order or direction is made may, within one month of the making of the order or direction, appeal to the Board to have the order or direction cancelled; and

(c) no such order or direction shall take effect until the expiration of one month from the making thereof, or, where an appeal has been preferred, until the disposal of the appeal.

36.Definitions.

36.Definitions. In this Chapter-

(a) “appointed day” means the date1 of coming into force of the amendments to this Act specified in Part II of the Fifth
Schedule to the Finance (No. 2) Act, 1980; (44 of 1980).

(b) “High Court” means,–

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

(ii) in relation to a Union territory to which the jurisdiction of the High Court of a State has been extended by law, that High Court;

(iii) in relation to the Union territories of Dadra and
Nagar Haveli and Goa, Daman and Diu, the High Court at
Bombay,;

(iv) in relation to an), other Union territory, the highest court of civil appeal for that territory other than the Supreme Court of India ;

(c) “President” means the President of the AppellateTribunal.]

2[CHAPTER VIB

PRESUMPTION AS TO DOCUMENTS]

3[36A. Presumption as to documents in certain cases. Where any document is produced by any person or has been seized from the custody or control of any person, in either case, under this Act or under any other law and such document is tendered by the prosecution in evidence against him or against him and any other person who is tried jointly with him, the Court shall,-

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

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

----------------------------------------------------------------------

1. 11-10-1982: vide Notification No. G.S.R. 592(E), dated 11-10-
1982.2. Ins, by Act 44 of 1980, s. 50 and Sch. V (w.e.f. 11-10-1982).

3. Ins.by Act 36 of 1973, s. 23.----------------------------------------------------------------------

24.(ii) that the signature and every other part of such document which purports to be in the handwriting of any particular person or which the Court may reasonably assume to have been signed by, or to be in the hand-
writing of, any particular person, is in that persons handwriting, and in the case of a document executed or attested, that it was executed or attested by the person by whom it purports to have been so executed or attest-
ed;

(b) admit, the document in evidence, notwithstanding that it is not duly. stamped, if such document is otherwise admissible in evidence.]

6 [36B. Admissibility of micro films, facsimile copies of documents and computer print outs as documents and as evidence. (1)
Notwithstanding anything contained in any other law for the time being in force,-

(a) a micro film of a document or the reproduction of the image or images embodied in such micro film (whether enlarged or not) ; or

(b) a facsimile copy of a document; or

(c) a statement contained in a document and included in a printed material produced by a computer (hereinafter referred to as a computer print out"), if the conditions mentioned in subsection (2) and the other provisions contained in this section are satisfied in relation to the statement and the computer in question,

shall be deemed to be also a document for the purposes of this Act and the rules made thereunder and shall be admissible in any proceedings thereunder, without further proof or production of the original, as evidence of any contents of the original or of any fact stated therein of which direct evidence would be admissible.

(2) The conditions referred to in sub-section (1) in respect of a computer print out shall be the following, namely:-

(a) the computer print out containing the statement was produced by the computer during the period over which the computer was used regularly to store or process information for the purposes of any activities regularly carried on over that period by the person having lawful control over the use of the computer;

(b) during the said period, there was regularly supplied to the computer in the ordinary course of the said activities, information of the kind contained In the statement or of the kind from which the information so contained is derived;

(c) throughout the material part of the said period, the computer was operating properly or, if not, then any respect in which it was not operating properly or was out of operation during that part of that period was not such as to affect the production of the document or the accuracy of the contents; and

(d) the information contained in the statement reproduces or is derived from information supplied to the computer in the ordinary course of the said activities.

(3) Where over any period, the function of storing or processing information for the purposes of any activities regularly carried on over that period as mentioned in clause (a) of sub-section (2) was regularly performed by computers, whether-

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

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

(c) by different combinations of computers operating in succession over that period; or

(d) in any other manner involving the successive operation over that period, in whatever order, of one or more computers and one or more combinations of computers,

all the computers used for that purpose during that period shall be treated for the purposes of this section as constituting a single com-
puter; and references in this section to a computer shall be construed accordingly.

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

(a) identifying the document containing the statement and describing the manner in which It was produced;

(b) giving such particulars of any device involved in the production of that document as may be appropriate for the purpose of showing that the document was produced by a computer;

(c) dealing with any of the matters to which the conditions mentioned in sub-section (2) relate,

and purporting to be signed by a person occupying a responsible official position in relation to the operation of the relevant device or the management of the relevant activities (whichever is appro-
priate) shall be evidence of any matter stated in the certificate; and for the purposes of this sub-section it shall be sufficient for a matter to; be stated to the best of the knowledge and belief of the person stating it.

(5) For the purposes of this section,-

(a) information shall be taken to be supplied,to a computer if it is supplied thereto in any appropriate form and whether It is so supplied directly or (with or without human intervention) by means of any appropriate equipment;

(b) whether in the course of activities carried on by any official, information is supplied with a view to Its, being stored or processed for the purposes of those activities by a computer operated otherwise than in. the course of those activities, that information, if duly supplied to that computer, shall be taken to be supplied to it in the course of those activities;

(c) a document shall be taken to have been produced by a computer whether it was produced by it directly or (with or without human intervention) by means of any appropriate equipment.

Explanation.-For the purposes of this section,-

(a) "computer" means any device that receives, stores and processes data, applying stipulated processes to the information and supplying results of these processes; and

(b) any reference to information being derived from other information shall be a reference to its being derived therefrom by calculation comparison or an other process.

CHAPTER VII

SUPPLEMENTAL PROVISIONS

37.Power of Central Government to make rules. (1) The Central
Government may make rules to carry into effect the purposes of this
Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may--

1[(i) provide for determining under section 4 the nearest ascertainable equivalent of the normal price;

(ia) having regard to the normal practice of the wholesale trade, define or specify the kinds of trade discount to be excluded from the value under section 4 including the circumstances in which and the conditions subject to which such discount is to be so excluded;]

2[(ib)] provide for the assessment and collection of duties of excise, the authorities by whom functions under this Act are to be discharged, the issue of notices requiring payment, the manner in which the duties shall be payable, and the recovery of duty not paid;

3[(ic) provide for the remission of duty of excise leviable on any excisable goods, which due to any natural cause are found to be deficient in quantity, the limit or limits of percentage beyond which no such remission shall be allowed and the different limit or limits of percentage for different varieties of the same excisable goods or for different areas or for different seasons;]

(ii) prohibit absolutely, or with such exceptions, or subject to such conditions as the Central Government thinks fit, the production or manufacture, or any process of the production or manufacture, of excisable goods, or of any component parts or ingredients or containers thereof, except on land or premises approved for the purpose ;

(iii) prohibit absolutely, or with such exceptions, or subject to such conditions as the Central Government thinks fit, 4* * * the transit of excisable goods from any part of a
5[India] to any other part thereof;

(iv) regulate the removal of excisable goods from the place where produced, stored or manufactured or subjected to any process of production or manufacture and their transport to or from the premises of a [registered]7 or a bonded warehouse, or to a market ;

(v) regulate the production or manufacture, or any process of the production or manufacture, the possession, storage and sale of salt, and so far as such regulation is essential for the proper levy and collection of the duties imposed by this
Act, of any other excisable goods, or of any component parts or ingredients or containers thereof;

———————————————————————-

1. Ins. by Act 22 of 1973, s. 3.2. Cl (i) renumbered as cl. (ib) by s. 3, ibid.

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

4. The words “the bringing of excisable goods into India from the State of Jammu and Kashmir, or” omitted by Act 41 of 1954, s. 2.and Sch.

5. Subs. by Act 25 of 1950, s. 11 and Sch. IV, for “the States”.

6. Ins. by Act 29 of 1988, s.13 (w.e.f. 1-7-1988).

7 Subs. by Act 18 of 1992, S.113.———————————————————————

25.(vi) provide for the employment of officers of the Government to supervise the carrying out of any rules made under this Act ;

(vii) require a manufacturer or the licensee of a warehouse to provide accommodation within the precincts of his factory or warehouse for officers employed to supervise the carrying out of regulations made under this Act and prescribe the scale of such accommodation;

(viii) provide for the appointment, licensing, management, and supervision of bonded warehouses and the procedure to be followed in entering goods into and clearing goods from such warehouses;

(ix) provide for the distinguishing of goods which have been
2[manufactured after registration] of materials which have been imported under licence, and of goods on which duty has been paid, or which are exempt from duty under this Act;

(x) impose on persons engaged in the production or manufacture, storage or sale (whether on their own account or as brokers or commission agents) of salt, and, so far as such imposition is essential for the proper levy and collection of the duties imposed by this Act, of any other excisable goods, the duty of furnishing information, keeping records and making returns, and prescribe the nature of such information and the form of such records and returns, the particulars to be contained therein, and the manner in which they shall be verified;

(xi) require that excisable goods shall not be sold or, offered or kept for sale in 1[India] except in prescribed containers, bearing a banderol, stamp or label of such nature and affixed in such manner as may be prescribed;

(xii) provide for the issue of [registration certificates]2 and transport permits and the fees, if any, to be charged therefor :

Provided that the fees for the licensing of the manufacture and refining of salt and saltpetre shall not exceed. in the case of each such licence, the following amounts, namely:-

RS.

Licence to manufacture and refine saltpetre and to separate and purify salt in the process of such manufacture and refining 50

Licence to manufacture saltpetre
2.Licence to manufacture sulphate of soda
(kharinun) by solar heat in evaporating pans 10.Licence to manufacture sulphate of soda
(knarinun) by artificial heat 2.Licence to manufacture other saline sub-
stances 2;

(xiii) provide for the detention of goods, plant, machinery or material, for the purpose of exacting the duty, the procedure in connection with the confiscation, otherwise than under section 10 or section 28, of goods in respect of which breaches of the Act or rules have been committed, and the disposal of goods so detained or confiscated;

(xiv) authorise and regulate the inspection of factories and provide for the taking of samples, and for the making of tests, of any substance produced therein, and for the, inspection or search of any place or conveyance used for the production, storage, sale or transport of salt, and so far as such inspection or search is essential for the proper levy and collection of the duties imposed by this Act, of any other excisable goods;

(xv) authorise and regulate the composition of offences against, or liabilities incurred under, this Act or the rules made thereunder;

(xvi) provide for the grant of a rebate of the duty paid on goods which are exported out of India or shipped for consumption on a voyage to any port outside India;

———————————————————————-

1. Subs. by Act 25 of 1950, s. 11 and Sch, IV, for “the States”.

2 Subs. by Act 18 of 1992, S.113.———————————————————————-

26.1* * * * *

2[(xvia) provide for the credit of duty paid or deemed to have been paid on the goods used in, or in relation to, the manufacture of excisable goods;]

3[(xvib) provide for the giving of credit of sums of money with respect to raw materials used in the manufacture of excisable goods;]

(xvii) exempt any goods from the whole or any part of the duty imposed by this Act;

4[(xviia) provide incentives for increased production or manufacture of any goods by way of remission of, or any concession with respect to, duty payable under this Act;]

(xviii) define an area no point in which shall be more than one hundred yards from the nearest point of any place in which salt is stored or sold by or on behalf of the Central Government, or of any factory in which saltpetre is manufactured or refined, and regulate the possession, storage and sale of salt within such area;

(xix) define an area round any other place in which salt is manufactured, and regulate the possession, storage and sale of salt within such area;

(xx) authorise the 5[Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963] (54 of
1963) or Collectors of Central Excise appointed for the purposes of this Act to provide, by written instructions, for supplemental matters arising out of any rule made by the Central Government under this section;

6[(xxi) provide for the publication, subject to such conditions as may be specified therein, of names and other particulars of persons who have been found guilty of contravention of any of the provisions of this Act or of any rule made thereunder;]

7[(xxii) provide for the charging of fees for the examination of excisable goods intended for export out of India and for rendering any other service by a Central Excise Officer under this Act or the rules made thereunder.]

9[(xxiii) specify the form in which application for refund shall be made under section 11B;

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

(xxv) provide for the manner in which the Fund shall be utilised for the welfare of the consumers;

(xxvi) specify the form in which the account and records relating to the Fund shall be maintained."]

10[(xxvii) specify the persons who shall get themselves registered under section 6 and the manner of their registration.]

(3) In making rules under this section, the Central Government may provide that any person committing a breach of any rule shall, where no other penalty is provided by this Act, be liable to a penalty not exceeding two thousand rupees and that any article in respect of which any such breach is committed shall be confiscated

8[(4) Notwithstanding anything contained in sub-section (3), and without, prejudice to the provisions of section 9, in making rules under this section, the Central Government may provide that if any manufacturer, producer or licensee of a warehouse-

(a) removes any excisable goods in contravention of the provisions of any such rule, or

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

(c) engages in the manufacture, production or storage of such goods without having applied for the [registration as]10.required section 6, or

———————————————————————–

1. Proviso to cl. (xvi) omitted by Act 49 of 1957, s. 2.2. Ins. by Act 23 of 1986, s. 51.3. Ins. by Act 11 of 1987 s. 94.4. Ins. by Act 14 of 1982, s. 48.5. Subs. by Act 54 of 1963, s. 5, for “Central Board of
Revenue” (w.e.f. 1-1-1964).

6. Ins. by Act 36 of 1973, s. 24.7. Ins. by Act 79 of 1985, s. 6.8. Ins. Act 19 of 1968 s. 38.9. Ins. by Act 40 of 1991, S.8 (w.e.f. 20-9-1991).

10. Ins. & Subs. by Act 18 of 1992, S.113.———————————————————————

27.(d) contravenes the provisions of any such rule with intent to evade payment of duty,

then-

(i) any land, building, plant, machinery, materials, conveyance, animal or any other thing used in connection with the manufacture, production, storage, removal or disposal of such goods, and

(ii) all excisable goods on such land or in such building or produced or manufactured with such plant, machinery, materials or thing,

belonging to such manufacturer, producer or licensee shall be liable to confiscation and the manufacturer, producer or licensee shall be liable to a penalty not exceeding three times the value of the excisable goods in respect of which any contravention of the nature referred to in clause (a), (b), (c) or (d) has been committed, or five thousand rupees, whichever is greater.]

1[(5) Notwithstanding anything contained in sub-section (3), the
Central Government any make rules to provide for the imposition upon any person- who acquires possession of, or is in any way concerned in transporting, removing, 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 the rules made thereunder, a penalty not exceeding three times the value of such goods or five thousand rupees, whichever is greater.]

2[37A. Delegation of powers. The Central Government may, by notification in the Official Gazette, direct that subject to such conditions, if any, as may be specified in the notification-

(a) any power exercisable by the Board under this Act may be exercisable also by 4[ a Principal Collector of Central
Excise or a Collector of Central Excise] empowered in this behalf by the Central Government;

(b) any power exercisable by a Collector of Central Excise under this Act may be exercisable also by a Deputy Collector of Central Excise or an Assistant Collector of Central Excise empowered in this behalf by the Central Government;

(c) any power exercisable by a Deputy Collector of Central
Excise under this Act may be exercisable also by an Assistant
Collector of Central Excise empowered in this behalf by the
Central Government; and

(d) any power exercisable by an Assistant Collector of
Central Excise under this Act may be exercisable also by a gazetted officer of Central Excise empowered in this behalf by the Board.]

3[37B. Instructions to Central Excise Officers. The Central Board of Excise and Customs constituted under the Central Boards of Revenue
Act, 1963 (54 of 1963) may, if it considers it necessary or expedient so to do for the purpose of uniformity in the classification of excisable goods or with respect to levy of duties of excise on such goods, issue such orders, instructions and directions to the Central
Excise Officers as it may deem fit, and such officers and all other persons employed in the execution of this Act shall observe and follow such orders, instructions and directions of the said Board:

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

(a) so as to require any Central Excise Officer to make a particular assessment or to dispose of a particular case in a particular manner; or

(b) so as to interfere with the discretion of the Collector of Central Excise (Appeals) in the exercise of his appellate functions.

37C. Service of decisions, orders, summons, etc. (1) Any decision or order passed or any summons or notice issued under this Act or the rules made thereunder, shall be served,-

(a) by tendering the decision, order, summons or notice, or sending it by registered post with acknowledgment due, to the person for whom it is intended or his authorised agent, if any;

----------------------------------------------------------------------

1. Ins. by Act 36 of 1973, s. 24.2. Ins. by Act 25 of 1978, s.26 (w.e.f. 1-7-1978).

3. Ins. by Act 79 of 1985, s.7.4. Subs. by Act 29 of 1988, S.14 (w.e.f. 1-7-1988).

---------------------------------------------------------------------

28.(b) if the decision, order, summons or notice cannot be served in the manner provided in clause (a), by affixing a copy thereof to some conspicuous part of the factory or warehouse or other place of business or usual place of residence of the person for whom such decision, order, summons or notice, as the case may be, is intended;

(c) if the decision, order, summons or notice cannot be served in the manner provided in clauses (a) and (b), by affixing a copy thereof on the notice board of the officer or authority who or which passed such decision or order or issued such summons or notice.

(2) Every decision or order passed or any summons or notice issued under this Act or the rules made thereunder, shall be deemed to have been served on the date on which the decision, order, summons or notice is tendered or, delivered by post or a copy thereof is affixed in the manner provided in sub-section (1),]

5[37D. Rounding off of duty, etc. The amount of duty, interest, penalty, fine or any other sum payable, and the amount of refund or any other sum due, tinder the provisions of this Act shall be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise then, if such part is fifty paise or more, it shall be increased to one rupee and if such part is less than fifty paise it shall be ignored.]

38.Publication of rules and notifications and laying of rules before
PArliament.

1[38. Publication of rules and notifications and laying of rules before PArliament. (1) All rules made and notifications issued under this Act shall be published in the Official Gazette.

4["(2) Every rule made under this Act and every notification issued under sub-section (1) of section 5A and section 11C shall be laid, as soon as may be after it is made or issued, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification or both Houses agree that the rule should not be made or the notification should not be issued, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification."]

39.[Repeal of enactments.]

39. [Repeal of enactments.] Rep. by the Repealing and Amending
Act, 1947 (2 of 1948), s. 2 and Sch.

40.

Protection of action taken under the Act.

2[40.Protection of action taken under the Act. (1) No suit, prosecution or other legal proceeding shall lie against the Central
Government or any officer of the Central Government or a State Gov-
ernment for anything which is done, or intended to be done, in good faith, in pursuance of this Act or any rule made thereunder.

(2) No proceeding, other than a suit, shall be commenced against the Central Government or any officer of the Central Government or a
State Government for anything done or purported to have been done in pursuance of this Act or any rule made thereunder, without giving the
Central Government or such officer a months previous notice in writing of the intended proceeding and of the cause thereof or after the expiration of three months from the accrual of such cause.]

[The First Schedule.] Rep. by the Central Excise Tariff Act, 1985.(5 of 1986), s. 4 (w.e.f 28-2-1986).

PART A

Excisable goods specified for the purposes of section 6-

1. Tobacco

2. Betel-nuts When supplied by a curor to a wholesale dealer,

3. Coffee whether directly or through a broker or commission agent.

PART B

Excisable goods specified for the purposes of section 8–

1. Tobacco.

[The Third Schedule.] Rep. by the Repealing and Amending Act,
1947 (2 of 1948), s. 2 and Sch.

———————————————————————-

1. Subs. by Act 22 of 1973, s. 4, for s. 38.2. Subs. by s. 5, ibid., for s. 40.

3. Added by the Indian Finance Act, 1944. s. 5 and Sch. I.

4 Subs. by Act 29 of 1988, S.15 (w.e.f. 1-7-1988).

5 Ins. by Act 12 of 1990, S.65.———————————————————————-

1. Short title and commencement.-(1) This Act may be called the
Central Sales Tax (Amendment) Act, 2001.(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

2.Amendment of section 13.2. Amendment of section 13.-In the Central Sales Tax Act, 1956 (74 of
1956) (hereinafter referred to as the principal Act), in section 13, in sub-section (1), after clause (g), the following clauses shall be inserted, namely:-

“(h) the proper functioning of the Authority constituted under section
19;

(i) the salaries and allowances payable to, and the terms and conditions of service of, the Chairman and Members under sub-section
(3) of section 19;

(j) any other matter as may be prescribed.”.

3.Insertion of new Chapter after Chapter V.

3. Insertion of new Chapter after Chapter V.-After Chapter V of the principal Act, the following Chapter shall be inserted, namely:-

CHAPTER VI

AUTHORITY TO SETTLE DISPUTES IN COURSE OF INTER-STATE TRADE OR
COMMERCE

19. Central Sales Tax Appellate Authority.-(1) The Central Government shall constitute, by notification in the Official Gazette, an
Authority to settle inter-State disputes falling under section 6A or section 9 of this Act, to be known as “the Central S les Tax Appellate
Authority (hereinafter referred to as the Authority)”.

(2) The Authority shall consist of the following Members appointed by the Central Government, namely:-

(a) a Chairman, who is a retired Judge of the Supreme Court, or a retired Chief Justice of a High Court;

(b) an officer of the Indian Legal Service who is, or is qualified to be, an Additional Secretary to the Government of India; and

(c) an officer of a State Government not below the rank of Secretary or an officer of the Central Government not below the rank of
Additional Secretary, who is an expert in sales tax matters.

(3) The salaries and allowances payable to, and the terms and conditions of service of, the Chairman and Members shall be such as may be prescribed.

(4) The Central Government shall provide the Authority with such officers and staff as may be necessary for the efficient exercise of the powers of the Authority under this Act.

20. Appeals.-(1) The provisions of this Chapter shall apply to appeals filed by the aggrieved dealer against any order of the assessing authority made under section 6A or section 9 of this Act.

(2) Notwithstanding anything contained in the general sales tax laws, the Authority shall adjudicate an appeal filed by a dealer aggrieved against any order of the assessing authority rejecting his claim under section 6A or section 9 of this Act.

(3) An appeal against the order of the assessing authority rejecting the claim of the dealer under section 6A or section 9 of this Act may be filed by the aggrieved dealer within forty-five days from the date on which the order is served on him:

Provided that the Authority may entertain any appeal after the expiry of the said period of forty-five days, but not later than sixty days, from the date aforesaid if it is satisfied that the appellant was prevented by sufficient cause from filing the ap eal in time.

(4) The application shall be made in quadruplicate and be accompanied by a fee of five thousand rupees.

21. Procedure on receipt of application.-(1) On receipt of an appeal, the Authority shall cause a copy thereof to be forwarded to the assessing authority concerned and to call upon it to furnish the relevant records:

Provided that such records shall, as soon as possible, be returned to the assessing authority.

(2) The Authority shall adjudicate and decide upon the appeal filed against an order of the assessing authority.

(3) The Authority, after examining the appeal and the records called for, by order, either allow or reject the appeal:

Provided that no appeal shall be rejected unless an opportunity has been given to the appellant of being heard in person or through a duly authorised representative:

Provided further that whether an appeal is rejected or accepted, reasons for such rejection or acceptance shall be given in the order.
(4) The Authority shall make an endeavour to pronounce its order in writing within six months of the receipt of the appeal.

(5) A copy of every order made under sub-section (3) shall be sent to the appellant and to the assessing authority.

22. Powers of the Authority.-(1) The Authority shall have the same powers as are vested in a court under the Code of Civil Procedure,
1908 (5 of 1908), while trying a suit in respect of the following matters, namely:-

(a) enforcing the attendance of any person, examining him on oath or affirmation;

(b) compelling the production of accounts and documents;

(c) issuing commission for the examination of witnesses;

(d) the reception of evidence on affidavits;

(e) any other matter which may be prescribed.

(2) Every proceeding before the Authority shall be deemed to be a judicial proceeding within the meaning of sections 193 and 228 of the
Indian Penal Code (45 of 1860) and the Authority shall be deemed to be
Code of Criminal Procedure, 1973 (2 of 1974). a civil court for the purposes of section 195 a d Chapter XXVI of the

23. Procedure of Authority.-The Authority shall, subject to the provisions of this Chapter, have power to regulate its own procedure in all matters arising out of the exercise of powers under this Act.

24. Authority for Advance Rulings to function as Authority under this
Act.-(1) Notwithstanding anything contained in any other law for the time being in force and in section 19 of this Act, the Authority for
Advance Rulings constituted under section 245 O of the Income-tax Act,
1961 (43 of 1961) shall be notified by the Central Government in the
Official Gazette, with such modifications as may be necessary, to make its composition in conformity with section 19 of this Act, as the
Authority under this ct till such time an Authority is constituted under that section.

(2) On and from the date of the constitution of the Authority in accordance with the provisions of section 19 of this Act, the proceedings pending with the Authority for Advance Rulings shall stand transferred to the Authority constituted under that sect on from the stage at which such proceedings stood before the date of constitution of the said Authority.

25. Transfer of pending proceedings.-On and from the date when the
Authority is constituted under section 19, every appeal arising out of the provisions contained in this Chapter-

(i) which is pending immediately before the constitution of such
Authority before the appellate authority constituted under the general sales tax law of a State or of the Union territory, as the case may be; or

(ii) which would have been required to be taken before such appellate
Authority, shall stand transferred to such Authority on the date on which it is established.

26. Applicability of order passed.-An order passed by the Authority under this Chapter shall be binding on the assessing authorities and other authorities created by or under any law relating to general sales tax, in force for the time being in any State or Union territory..