II-A
INDICATING AMOUNT OF DUTY IN THE PRICE OF GOODS ETC. FOR PURPOSE OF REFUND AND
CREDITING CERTAIN AMOUNTS TO THE FUND
12A.
Price of goods to indicate the amount of duty paid thereon
12A.
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 sale 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
12B.
Every 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
12C.
(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 of
sub-section (2) of section 28A or sub-section (2) of section 28B of the Customs
Act 1962 (52 of 1962);
(c) any
income from investment of the amount credited to the Fund and any other monies
received by the Central Government for the purposes of this Fund.
12D.
Utilisation of the fund
12D.
(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 account and other relevant records in
relation to the Fund in such form as may be prescribed in consultation with
Comptroller and Auditor-General of India.
III POWERS AND DUTIES OF OFFICERS AND LANDHOLDERS
12E.
Powers of Central Excise Officers
12E.
(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.
(2)
Notwithstanding anything contained in sub-section (1) the Commissioner 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 is
section 14 or Chapter VIA.
13.
Power to arrest
13. (1)
Any Central Excise Officer duly empowered by the Central Government in this
behalf may arrest any person whom he had 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. (1)
Any Central Excise Officer duly empowered by the Central Government in this
behalf shall have power of 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 persons 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.
(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 1860
(45 of 1860).
14A.
Special audit in certain cases
14A.
(1) If at any stage of enquiry investigation or any other proceedings before
him any Central Excise Officer not below the rank of an Assistant Commissioner
of Central Excise having regard to the nature and complexity of the case and
the interest of revenue is of the opinion that the value has not been correctly
declared or determined by a manufacturer or any person he may with the previous
approval of the Chief Commissioner of Central Excise direct such manufacturer
or such person to get the accounts of his factory office depots distributors of
any other place as may be specified by the said Central Excise Officer audited
by a cost accountant nominated by the Chief Commissioner of Central Excise in
this behalf.
(2) The
cost accountant so nominated shall within the period specified by the Central
Excise Officer submit a report of such audit duly signed and certified by him
to the said Central Excise Officer mentioning therein such other particulars as
may be specified :
Provided
that the Central Excise Officer may on an application made to him in this
behalf by the manufacturer or the person and for any material and sufficient
reason extend the said period by such further period or periods as he thinks
fit; so however that the aggregate of the period originally fixed and the
period or periods so extended shall not in any case exceed one hundred and
eighty days from the date on which the direction under sub-section (1) is received
by the manufacturer or the person.
(3) The
provisions of sub-section (1) shall have effect notwithstanding that the
accounts of the manufacturer or person aforesaid have been audited under any
other law for the time being in force or otherwise.
(4) The
expenses of and incidental to such audit (including the remuneration of the
cost accountant) shall be determined by the Chief Commissioner of Central
Excise (which determination shall be final) and paid by the manufacturer or
person and in default of such payment shall be recoverable from the
manufacturer or the person in manner provided in section 11 for the recovery of
sums due to the government.
(5) The
manufacturer or the person shall be given an opportunity of being heard in
respect of any material gathered on the basis of audit under sub-section (1)
and proposed to be utilised in any proceedings under this Act or rules made
thereunder.
Explanation
: For the purposes of this section cost accountant shall have the meaning
assigned to it in clause (b) of sub-section (1) of section 2 of the Cost and
Works Accountants Act 1959 (23 of 1959).
14AA.
Special audit in cases where credit of duty availed or utilised is not within
normal limits etc.
14AA.
(1) If the Commissioner of Central Excise has reason to believe that the credit
of duty availed of or utilised under the rules made under this Act by a
manufacturer of any excisable goods -
(a) is
not within the normal limits having regard to the nature of the excisable goods
produced or manufactured the type of inputs used and other relevant factors as
he may deem appropriate;
(b) has
been availed of or utilised by reason or fraud collusion or any wilful
mis-statement or suppression of facts he may direct such manufacturer to get
the accounts of his factory office depot distributor or any other place as may
be specified by him audited by a cost accountant nominated by him.
(2) The
cost accountant so nominated shall within the period specified by the
Commissioner of Central Excise submit a report of such audit duly signed and
certified by him to the said Commissioner mentioning therein such other
particulars as may be specified.
(3) The
provisions of sub-section (1) shall have effect notwithstanding that the
accounts of the said manufacturer aforesaid have been audited under any other
law for the time being in fore or otherwise.
(4) The
expenses of and incidental to such audit (including the remuneration of the
cost accountant) shall be determined by the Commissioner of Central Excise
(which determination shall be final) and paid by the manufacturer and in
default of such payment shall be recoverable from the manufacturer in the
manner provided in section 11 for the recovery of sums due to the government.
(5) The
manufacturer shall be given an opportunity of being heard in respect of any
material gathered on the basis of the audit under sub-section (1) and proposed
to be utilised in any proceeding under this Act or rules made thereunder.
Explanation
: For the purposes of this section "cost accountant" shall have the
meaning assigned to it in clause (b) of sub-section (1) of section 2 of the
Cost and Works Accountant Act 1959.
15.
Officers required to assist Central Excise Officers
15. 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 extension of this Act.
16.
Owners or occupiers of land to report manufacture of contraband excisable
goods
16.
Every owner or occupier of land and the agent of any such owner of 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 for connivance at offences
17. Any
owner occupier of land or any agent of such owner or occupier in charge or 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
18. 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 1898 (5 of 1898) relating respectively to searches
and arrests made under this Code.
19.
Disposal of persons arrested
19.
Every persons arrested under this Act shall be forwarded without delay to the
nearest Central Excise Officer empowered to send persons to 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-on-charge of police station
20. 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.
21.
Inquiry how to be made by Central Excise Officers against arrested persons
forwarded to them under section 19
21. (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 enquire 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 1898 (5 of
1898) when investigating a cognizable case :
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 to 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 no sufficient evidence or
reasonable ground of suspicion against the accused person he shall release the
accused person on his executing a bound 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. 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 movable 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. Any
Central Excise Officer who ceases or refuses to performs or withdraws himself
from the duties of his office unless he has obtained the express written
permission of the Commissioner 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.
IV TRANSPORT BY SEA
24.
Penalties for carrying excisable goods in certain vessels
24.
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 or 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.
25.
Exceptions
25.
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 Central Board
of Excise and Customs constituted under the Central Boards of Revenue Act 1963
(54 of 1963) may appoint in this behalf;
(c)
such amount of excisable goods carried on board nay vessel for consumption by
her crew or by the passengers or animals (if any) on board as the Central Board
of Excise and Customs constituted under the Central Board of Revenue Act 1963
(54 of 1963) may from time to time exempt from the operation of section 24.
26. Power
of stoppage search and arrest
26. When any officer empowered by the Central
Board of Excise and Customs constituted under the Central Boards of Revenue Act
1963 (54 of 1963) to act under this section had 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 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. Any
master of a vessel refusing or neglecting to bring to the vessel or the 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. (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
of 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 confiscations either declare it to be
confiscated or impose a fine in lieu thereof not exceeding the value of the
article.
29.
Jurisdiction
29. Any
offence punishable under 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 this Chapter
30. 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.
[Chapter
V comprising ss. 31 and 32 omitted by Finance (No. 2) Act. 1996]
VI ADJUDICATION OF CONFISCATION AND
PENALTIES
33.
Power of adjudication
33.
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 Commissioner 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 Commissioner of Central Excise :
Provided
that the Central Board of Excise and Customs constituted under the Central
Board of Revenue Act 1963 (54 of 1963) may in the case of any officer
performing the duties of an Assistant Commissioner of Central Excise reduce the
limits indicted 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.
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.
34A.
Confiscation or penalty not to interfere with other punishments
34A. No
confiscation made or penalty imposed under the provisions of the 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.