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.

 

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