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]  

 

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