VII SUPPLEMENTAL PROVISIONS
37.
Power of Central Government to make rules
37. (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-
(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;
(ib)
provided 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;
(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 the transit of excisable goods from any part
of 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 person 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 or of any other excisable goods or of any component parts
or ingredients or containers thereof;
(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 manufactured after
registration of materials which have been imported under licence and of goods
on which duty had 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
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 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 :-
Licence
to manufacture and refine saltpetre and to separate and purify salt in the
process of such manufacture and refining
Rs. 50
Licence
to manufacture saltpetre 2
Licence
to manufacture sulphate of soda (Kharinum) by solar heat in evaporating pans 10
Licence
to manufacture sulphate of soda (Kharinun) by artifical heat 2
Licence
to manufacture other saline substances 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 or 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 including interest thereon or shipped for consumption on a voyage
to any port outside India;
(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;
(xvib)
provide for the giving of credit of sums of money with respect to raw materials
used in the manufacture of excisable goods;
(xvic)
provide for charging and payment of interest as the case may be on credit of
duty paid or deemed to have been paid on the good used in or in relation to the
manufacture of excisable goods where such credit is varied subsequently;
(xvii)
exempt any goods from the whole or any part of the duty imposed by this Act;
(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 salt of salt within such area;
(xx)
authorise the Central Board of Excise and Customs constituted under the Central
Boards of Revenue Act 1963 (54 of 1963) or Commissioners 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;
(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;
(xxii)
provide for the charging of fees 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;
(xxiii)
specify the form and manner 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;
(xxvii)
specify the persons who shall get themselves registered under section 6 and the
manner of their registration.
(2A)
The power to make rules conferred by clause (xvi) of sub-section (2) shall
include the power to give retrospective effect to rebate of duties on inputs
used in the export goods from a date not earlier than the changes in the rates
of duty on such inputs.
(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.
(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
warehouse -
(a)
removes any excisable goods in contravention of the provisions of any such
rules 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 required under section 6 or
(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 the such plant machinery materials or thing belonging to such manufacturer
producer or licence 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.
(5)
Notwithstanding anything contained in sub-section (3) the Central Government
may 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.
37A.
Delegation of powers
37A.
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 a
Chief Commissioner of Central Excise or a Commissioner of Central Excise
empowered in this behalf by the Central Government.
(b) any
power exercisable by a Commissioner of Central Excise under this Act may be
exercisable also by a Deputy Commissioner of Central Excise or an Assistant
Commissioner of Central Excise empowered in this behalf by the Central
Government;
(c) any
power exercisable by a Deputy Commissioner of Central Excise under this Act may
be exercisable also by an Assistant Commissioner of Central Excise empowered in
this behalf by the Central Government; and
(d) any
power exercisable by an Assistant Commissioner of Central Excise this Act may
be exercisable also by a Gazetted Officer of Central Excise empowered in this
behalf by the Board.
37B.
Instructions to Central Excise Officers
37B.
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 issued 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 particular assessment or to
dispose of a particular case in a particular manner; or
(b) so
as to interfere with the discretion of the Commissioner of Central Excise
(Appeals) in the exercise of his appellate functions.
37C.
Service of decisions orders summons etc.
37C.
(1) Any decision or order passed or any summons or notices 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;
(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).
37D.
Rounding off of duty etc.
37D.
The amount of duty interest penalty fine or any other sum payable and the
amount of refund or any other sum due under 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
38. (1)
All rules made and notifications issued under this Act shall be published in
the Official Gazette.
(2)
Every rule made under this Act every notification issued under sub-section (1)
of section 5A and section 11C and every order made under sub-section (2) of
section 5A other than an order relating to goods of strategic secret individual
or personal nature 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 order or both Houses agree that the
rule should not be made or notification or order should not be issued or made
the rule or notification or order 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 or order.
39.
Repeal of enactments [Omitted]
40.Protection
of action taken under the Act
40. (1)
No suit prosecution or other legal proceeding shall lie against the Central
Government or any officer of the Central Government or a State Government 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 month's
previous notice in writing of the intended proceeding and of the cause thereof
or after the expiration of there months from the accrual of such cause.
SCHEDULE
I
[Repealed
by Repealing and Amending Act 1947]
SCHEDULE
II
[See
Section 8]
TOBACCO
SCHEDULE
III
[Omitted
by Central Excise Tariff Act 1985 w.e.f. 28-2-1986]