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Ministry of Finance
Department of Revenue

THE CENTRAL EXCISE BILL, 2024

A
Bill

to provide for levy and collection of duty of excise on goods

manufactured or produced and for matters connected therewith or
incidental thereto.

BE it enacted by Parliament in the Seventy-fifth Year of the

Republic of India as follows: —

CHAPTER I
PRELIMINARY

1. (1) This Act may be called the Central Excise Act, 2024.
Short title,
(2) It extends to the whole of India. extent and
commencement.
(3) It shall come into force on such date as the Central Government
may, by notification in the Official Gazette, appoint:
Provided that different dates may be appointed for different
provisions of this Act and any reference in any such provision to
the commencement of this Act shall be construed as a reference to
the coming into force of that provision.

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

(a) “adjudicating authority‖ means any authority competent to

pass any order or make a decision under this Act, but does not
include the Central Board of Indirect Taxes and Customs
constituted under the Central Boards of Revenue Act, 1963, the
54 of 1963. Commissioner of Central Excise (Appeals) or the Customs, Excise
and Service Tax Appellate Tribunal;

(b) ―Appellate Tribunal‖ means the Customs, Excise and

Service Tax Appellate Tribunal constituted under section 129 of
52 of 1962. the Customs Act, 1962;

(c) ―assessee‖ means any person who is liable for payment of

duty assessed, or a producer or manufacturer of excisable goods, or
a registered person of a private warehouse in which excisable
goods are stored and includes an authorised agent of such person;

(d) ―assessment‖ means determination of liability of duty

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under this Act and includes self-assessment and provisional

assessment;
(e) ―Board‖ means the Central Board of Indirect Taxes and
54 of 1963. Customs constituted under the Central Boards of Revenue Act,
1963;

(f) ―Central Excise Officer‖ means the Principal Chief

Commissioner of Central Excise, Chief Commissioner of Central
Excise, Principal Commissioner of Central Excise, Commissioner
of Central Excise, Commissioner of Central Excise (Appeals),
Additional Commissioner of Central Excise, Joint Commissioner
of Central Excise, Deputy Commissioner of Central Excise,
Assistant Commissioner of Central Excise, Superintendent of
Central Excise or Inspector of Central Excise, or any other officer
of the Central Excise Department, or any person (including an
officer of the State Government) invested by the Central Board of
Indirect Taxes and Customs with any of the powers of a Central
Excise Officer under this Act;

(g) ―curing‖ includes wilting, drying, fermenting and any

process for rendering an unmanufactured product fit for marketing
or manufacture;

(h) ―duty of excise‖ means the duty levied or collected under

section 6 or section 7 and the expressions ―central excise duty‖,
“duty‖, “duties‖, ―duties of excise‖ and “excise duty‖ shall be
construed accordingly;

(i) ―excisable goods‖ means goods specified in the First

Schedule as being subject to a duty of excise.

Explanation.— For the purposes of this clause, ―goods‖

includes any article, material or substance which is capable of
being bought and sold for a consideration and such goods shall be
deemed to be marketable;

(j) ―export-oriented unit‖ shall have the meaning assigned to it

in the Foreign Trade Policy as may be notified by the Central
Government from time to time in exercise of the powers conferred
under section 5 of the Foreign Trade (Development and
Regulation) Act, 1992; 22 of 1992

(k) ―factory‖ means any premises, including the precincts

thereof, wherein or in any part of which excisable goods are
manufactured, or wherein or in any part of which any
manufacturing process connected with the production of these
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goods is being carried on or is ordinarily carried on;

(l) "family" means,-

(i) the spouse and children of the person, and

(ii) the parents, grand-parents, brothers and sisters of the person if

they are wholly or mainly dependent on the said person;

(m) ―final products‖ mean excisable goods manufactured or

produced from inputs;

(n) ―Fund‖ means the Consumer Welfare Fund established

under section 28;

(o) "India" means the territory of India as referred to in article

1 of the Constitution, its territorial waters, seabed and sub-soil
underlying such waters, continental shelf, exclusive economic
zone or any other maritime zone as referred to in the Territorial 80 of 1976
Waters, Continental Shelf, Exclusive Economic Zone and other
Maritime Zones Act, 1976, and the air space above its territory and
territorial waters;

(p) ―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 First Schedule as amounting to
manufacture; or

(iii) which, in relation to the goods specified in the Second

Schedule, involves packing or repacking of such goods in a
unit container or labelling or re-labelling of containers
including the declaration or alteration of retail sale price on it
or adoption of any other treatment on the goods to render the
product marketable to the consumer,

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;

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(q) ―notification‖ means a notification published in the Gazette

of India and the expression ―notify‖ with its grammatical variation
and cognate expressions shall be construed accordingly;

(r) "person" includes-

(i) an individual;

(ii) a Hindu Undivided Family;

(iii) a company;

(iv) a firm;

(v) a Limited Liability Partnership;

(vi) an association of persons or a body of individuals,

whether incorporated or not, in India or outside India;

(vii) any corporation established by or under any Central

Act, State Act or Provincial Act or a Government
company as defined in clause (45) of section 2 of the
Companies Act, 2013;

18 of 2013. (viii) any body corporate incorporated by or under the

laws of a country outside India;

(ix) a co-operative society registered under any law relating

to co-operative societies;

(x) a local authority;

(xi) Central Government or a State Government;

(xii) society as defined under the Societies Registration

Act, 1860;

21 of 1860. (xiii) trust; and

(xiv) every artificial juridical person, not falling within

any of the above;

(s) ―prescribed‖ means prescribed by rules made under this

Act;

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(t) ―purchase‖ with its grammatical variations and cognate

expressions, means acquiring or taking possession of goods by one
person from another in the ordinary course of trade or business for
cash or deferred payment or other valuable consideration;

(u) ―sale‖ with its grammatical variations and cognate

expressions, means 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;

(v) ―Special Economic Zone‖ shall have the meaning assigned

28 of 2005. to it in clause (za) of section 2 of the Special Economic Zones Act,
2005;

3. The Central Government may, by notification, declare that any

of the provisions of the Customs Act, 1962, relating to the levy of
Application of
and exemption from customs duties, drawback of duty,
provisions of
warehousing and procedure relating to appeals shall, with such
Act No. 52 of
52 of 1962. modifications and alterations as it may consider necessary or
1962 to duties
desirable to adapt them to the circumstances, be applicable in
of excise.
regard to like matters in respect of the duties imposed by sections 6
and 7.

CHAPTER II
APPOINTMENT AND POWERS OF CENTRAL EXCISE
OFFICERS

4. (1) The Board may, by notification, appoint the following

classes of Central Excise Officers for the purposes of this Act and
the rules made thereunder, namely:-
(a) Principal Chief Commissioners of Central Excise or
Principal Directors General of Central Excise,
(b) Chief Commissioners of Central Excise or Directors
General of Central Excise, Appointment
and jurisdiction
(c) Principal Commissioners of Central Excise or Principal
of Central
Additional Directors General of Central Excise,
Excise
(d) Commissioners of Central Excise or Additional Directors Officers.
General of Central Excise,
(e) Additional Commissioners of Central Excise or Additional
Directors of Central Excise,
(f) Joint Commissioners of Central Excise or Joint Directors of
Central Excise,
(g) Deputy Commissioners of Central Excise or Deputy
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Directors of Central Excise,

(h) Assistant Commissioners of Central Excise or Assistant
Directors of Central Excise, and
(i) any other class of officers as it may deem fit:

12 of 2017. Provided that the officers appointed under the Central Goods and
Services Tax Act, 2017 shall be deemed to be the officers
appointed under the provisions of this Act.

(2) The Board may, by notification, specify the jurisdiction of a––

(a) Principal Chief Commissioner of Central Excise or Chief
Commissioner of Central Excise; or
(b) Principal Commissioner of Central Excise or Commissioner
of Central Excise; or
(c) Commissioner of Central Excise (Appeals),
for the purposes of this Act and the rules made thereunder.

(3) The Principal Chief Commissioner of Central Excise or the

Chief Commissioner of Central Excise, as the case maybe, may, by
order, specify the jurisdiction of the following Central Excise
Officers for the purposes of this Act and the rules made
thereunder, namely:––
(a) Additional Commissioner of Central Excise or Joint
Commissioner of Central Excise;
(b) Deputy Commissioner of Central Excise or Assistant
Commissioner of Central Excise; and
(c) Superintendent of Central Excise.

5. (1) Every Central Excise Officer may exercise the powers and
Powers of
discharge the duties conferred or imposed on him under this Act,
Central Excise
subject to such conditions and limitations as the Board may
Officers.
impose.

(2) Subject to such conditions and limitations as the Board may

impose, any Central Excise Officer may exercise the powers and
discharge the duties conferred or imposed by or under this Act or
the rules made thereunder on any other Central Excise Officer who
is subordinate to him.

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(3) Notwithstanding anything contained in this section, 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 in section 59 or Chapter
IX.

CHAPTER III
LEVY AND COLLECTION OF DUTY

6. (1) There shall be levied and collected, in such manner as may Duty of excise
be prescribed, a duty of excise to be called the central excise duty specified in
on all excisable goods which are produced or manufactured in First Schedule
India as, and at the rates, specified in the First Schedule: to be levied.

(2) The provisions of sub-section (1) shall apply in respect of all

excisable goods which are produced or manufactured in India by
or on behalf of the Government, as they apply in respect of goods
which are not produced or manufactured by the Government.

7. (1) Notwithstanding anything contained in section 6, where the Power of

Central Government, having regard to the nature of the process of Central
manufacture or production of excisable goods of any specified Government to
description, the extent of evasion of the duty of excise in regard to charge excise
such goods or such other factors as may be relevant, is of the duty on the
opinion that it is necessary to safeguard the interest of revenue, basis of
specify, by notification, such goods as notified goods and there capacity of
shall be levied and collected duty of excise on such goods in production in
accordance with the provisions of this section in such manner as respect of
may be prescribed. notified goods.

(2) Where a notification is issued under sub-section (1), the

Central Government may ––
(a) provide for determination of the annual capacity of
production of the factory, in which such goods are
produced, by an officer not below the rank of Assistant
Commissioner of Central Excise, which shall be deemed
to be the annual production of such goods by such
factory; or
(b) (i) specify the factor relevant to the production of
such goods and the quantity that is deemed to be
produced by use of a unit of such factor; and
(ii) provide for the determination of the annual
capacity of production of the factory, in which such
goods are produced on the basis of such factor, by an
officer not below the rank of Assistant Commissioner
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of Central Excise, which shall be deemed to be the

annual production of such goods by such factory,
in such manner, as may be prescribed:

Provided that where a factory producing notified goods is in

operation during a part of the year only, the annual production
thereof shall be calculated on proportionate basis of the annual
capacity of production:

Provided further that in a case where the factor relevant to the

production is altered or modified at any time during the year, the
annual production shall be re-determined on a proportionate basis
having regard to such alteration or modification.

(3) The duty of excise on notified goods shall be levied, at such

rate, on the unit of production or, as the case may be, on such
factor relevant to the production, as the Central Government may,
by notification, specify, and collected in such manner as may be
prescribed:

Provided that where a factory producing notified goods did not

produce the notified goods during any continuous period of fifteen
days or more, the duty of excise calculated on a proportionate basis
shall be abated in respect of such period if the manufacturer of
such goods fulfills such conditions as may be prescribed.

(4) The provisions of this section shall not apply to goods

produced or manufactured, by an export-oriented unit and brought
to any other place in India.

Explanation 1.–– For the purposes of section 3 of the Customs

Tariff Act, 1975, the duty of excise leviable on the notified goods
51 of 1975. shall be deemed to be the duty of excise leviable on such goods
under the First Schedule, read with any notification for the time
being in force.

Explanation 2.–– For the purposes of sub-sections (2) and (3),

the word "factor" shall include "factors".

8. (1) Where, in respect of any goods, the Central Government is Power of

satisfied that the duty leviable thereon under section 6 should be Central
increased and that circumstances exist which render it necessary to Government to
take immediate action, the Central Government may, by take immediate
notification, amend the First Schedule to substitute the rate of duty action
specified therein in respect of such goods in the following manner, to increase

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namely:–– duty of excise.

(a) in a case where the rate of duty as specified in the

First Schedule, as in force immediately before the issue of
such notification is nil, a rate of duty not exceeding fifty
per cent. ad valorem expressed in any form or method;

(b) in any other case, a rate of duty which shall not be

more than twice the rate of duty specified in respect of such
goods in the First Schedule as in force immediately before
the issue of the said notification:

Provided that the Central Government shall not issue any

notification under this sub-section for substituting the rate of duty
in respect of any goods as specified by an earlier notification
issued under this sub-section by that Government before such
earlier notification has been approved with or without
modifications under sub-section (2).

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

expression ―form or method‖, in relation to a rate of duty of
excise, means the basis, including valuation, weight, number,
length, area, volume or any other measure, on which the duty may
be levied.

(2) Every notification under sub-section (1) shall be laid, as soon

as may be after it is issued, before each House of Parliament, while
it is in session, and, if it is not in session, 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 under that notification.

(3) Any notification issued under sub-section (1), including a

notification approved or modified under sub-section (2), may be
rescinded by the Central Government at any time by a like
notification.

Power of
9. Where the Central Government is satisfied that it is necessary so
Central
to do in the public interest, it may, by notification, amend the First
Government to
Schedule:
amend First
Schedule.
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Provided that such amendment shall not alter or affect in any

manner the rates specified in the First Schedule at which the duties
of excise shall be leviable on the goods specified therein.

10. (1) If the Central Government is satisfied that it is necessary in

the public interest so to do, it may, by notification, exempt Power to grant
generally either absolutely or subject to such conditions, to be exemption
fulfilled before or after removal, as may be specified in the from duty of
notification, excisable goods of any specified description from the excise.
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 produced or manufactured—
(i) in a Special Economic Zone and brought to any other
place in India; or
(ii) by an export-oriented unit and brought to any other place
in India.

(2) For the removal of doubts, it is hereby declared that where an

exemption under sub-section (1) in respect of any excisable goods
from the whole of the duty of excise leviable thereon has been
granted absolutely, the manufacturer of such excisable goods shall
not pay the duty of excise on such goods.

(3) 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.

(4) The Central Government may, if it considers it necessary or

expedient so to do for the purpose of clarifying the scope or
applicability of any notification issued under sub-section (1) or
order issued under sub-section (3), insert an Explanation in such
notification or order, as the case may be, by notification, at any
time within one year of issue of the notification under sub-section
(1) or order under sub-section (3), and every such Explanation
shall have effect as if it had always been the part of the first such
notification or order, as the case may be.

(5) An exemption under sub-section (1) or sub-section (3) in

respect of any excisable goods from any part of the duty of excise
leviable thereon (herein 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
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in relation to any excisable goods in the 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.

(6) Every notification issued under sub-section (1) or sub-section

(4) shall, unless otherwise provided, come into force on the date of
its publication in the Official Gazette.

11. (1) The Central Government may provide for remission of Remission of
duty of excise leviable on any excisable goods, which are found to duty on goods
be deficient in quantity due to any natural cause, in such manner as found deficient
may be prescribed. 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.

12. (1) Every person who produces or manufactures any excisable

goods, or who stores such goods in a warehouse, shall pay the duty Duty payable
leviable on such goods in the manner provided, and no excisable on removal and
goods, on which any duty is payable, shall be removed without date for
payment of duty from any place, where they are produced or determination
manufactured, or from a warehouse, other than in such manner as of duty and
may be prescribed. tariff valuation.

(2) Notwithstanding anything contained in sub-section (1), the

Principal Commissioner of Central Excise or Commissioner of
Central Excise, as the case may be, may, in exceptional
circumstances, having regard to the nature of the goods and
shortage of storage space at the premises of the manufacturer
where the goods are made, permit a manufacturer to store his
goods in any other place outside such premises, without payment
of duty subject to such conditions as he may specify.

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(3) The rate of duty or tariff value applicable to any excisable

goods shall be the rate or value in force on the date when such
goods are removed from a factory or a warehouse, as the case may
be.
Explanation.–– If any excisable goods are used within the
factory, the date of removal of such goods shall mean the date on
which the goods are issued for such use.

13. (1) Where under this Act, the duty of excise is chargeable on
any excisable goods with reference to their value, then, on each
removal of the goods, such value shall -
(a) in a case where the goods are sold by the assessee, for
delivery at the time and place of the removal, the assessee and
the buyer of the goods are not related and the price is the sole
consideration for the sale, be the transaction value;
Valuation of
(b) in any other case, including the case where the goods are excisable
not sold, be the value determined in such manner as may be goods for
prescribed. purposes of
charging of
Explanation. - For the removal of doubts, it is hereby declared that
duty of excise.
the price-cum-duty of the excisable goods sold by the assessee
shall be the price actually paid to him for the goods sold and the
money value of the additional consideration, if any, flowing
directly or indirectly from the buyer to the assessee in connection
with the sale of such goods, and such price-cum-duty, excluding
Value Added Tax and other taxes, if any, actually paid, shall be
deemed to include the duty payable on such goods.

(2) The provisions of sub-section (1) shall not apply in respect of

any excisable goods for which a tariff value has been fixed under
sub-section (3).

(3) Notwithstanding anything contained in this section, the Central

Government may, by notification, fix, for the purposes of levying
the central excise duty, tariff values of any excisable goods as
chargeable with duty ad valorem and may alter any tariff values
for the time being in force.

(4) The Central Government may fix different tariff values for —
(a) different classes or descriptions of the same
excisable goods; or
(b) excisable goods of the same class or description—
(i) produced or manufactured by different
classes of producers or manufacturers; or

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(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.

Explanation. – For the purposes of this Act,-

(a) persons shall be deemed to be "related persons" if-
(i) such persons are officers or directors of one another's
businesses;
(ii) such persons are legally recognised partners in business;
(iii) such persons are employer and employee;
(iv) any person directly or indirectly owns controls or holds
twenty-five per cent. or more of the outstanding voting stock
or shares of both of them;
(v) one of them directly or indirectly controls the other;
(vi) both of them are directly or indirectly controlled by a
third person;
(vii) together they directly or indirectly control a third
person; or
(viii) they are members of the same family;
(b) "place of removal" means -
(i) a factory or any other place or premises of production or
manufacture of the excisable goods;
(ii) a warehouse or any other place or premises wherein the
excisable goods have been permitted to be deposited
without payment of duty;
(iii) a depot, premises of a consignment agent or any other
place or premises from where the excisable goods are to be
sold after their clearance from the factory; from where such
goods are removed;
(c) "time of removal", in respect of the excisable goods
removed from the place of removal referred to in sub-clause
(iii) of clause (b) above, shall be deemed to be the time at
which such goods are cleared from the factory;
(d) "transaction value" means the price actually paid or payable
for the goods, when sold, and includes in addition to the
amount charged as price, any amount that the buyer is liable to
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pay to, or on behalf of, the assessee, by reason of, or in

connection with the sale, whether payable at the time of the
sale or at any other time, including, but not limited to, any
amount charged for, or to make provision for, advertising or
publicity, marketing and selling organization expenses,
storage, outward handling, servicing, warranty, commission or
any other matter; but does not include the amount of duty of
excise, Value Added Tax and other taxes, if any, actually paid
or actually payable on such goods.

14. (1) The Central Government may, by notification, specify any Valuation of
goods, in relation to which it is required, under the provisions of excisable
the Legal Metrology Act, 2009 or the rules made thereunder or goods with
1 of 2010. under any other law for the time being in force, to declare on the reference to
package thereof the retail sale price of such goods, to which the retail sale
provisions of sub-section (2) shall apply. price.

(2) Where the goods specified under sub-section (1) are excisable
goods and are chargeable to duty of excise with reference to value,
then, notwithstanding anything contained in section 13, such value
shall be deemed to be the retail sale price declared on such goods
less such amount of abatement, if any, from such retail sale price
as the Central Government may allow by notification.

(3) The Central Government may, for the purpose of allowing any
abatement under sub-section (2), take into account the amount of
duty of excise, Value Added Tax and other taxes, if any, payable
on such goods.

(4) Where any goods specified under sub-section (1) are excisable
goods and the manufacturer—

(a) removes such goods from the place of manufacture, without

declaring the retail sale price of such goods on the packages
or declares a retail sale price which is not the retail sale price
as required to be declared under the provisions of the Act,
rules or other law as referred to in sub-section (1); or

(b) tampers with, obliterates or alters the retail sale price declared
on the package of such goods after their removal from the
place of manufacture,

then, such goods shall be liable to confiscation and the retail sale
price of such goods shall be ascertained in the prescribed manner
and such price shall be deemed to be the retail sale price for the
purposes of this section.

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Explanation 1.— For the purposes of this section, “retail

sale price‖ means the maximum price at which the excisable goods
in packaged form may be sold to the ultimate consumer and
includes all taxes, local or otherwise, freight, transport charges,
commission payable to dealers, and all charges towards
advertisement, delivery, packing, forwarding and the like, as the
case may be, and the price is the sole consideration for such sale:

Provided that in case the provisions of the Act, rules or other

law as referred to in sub-section (1) require to declare on the
package, the retail sale price excluding any taxes, local or
otherwise, the retail sale price shall be construed accordingly.

Explanation 2.— For the purposes of this section,—

(a) where on the package of any excisable goods more than
one retail sale price is declared, the maximum of such retail sale
price shall be deemed to be the retail sale price;
(b) where the retail sale price, declared on packages of any
excisable goods at the time of its clearance from the place of
manufacture, is altered to increase the retail sale price, such altered
retail sale price shall be deemed to be the retail sale price;
(c) where different retail sale prices are declared on different
packages for the sale of any excisable goods in packaged form in
different areas, each such retail sale price shall be the retail sale
price for the purposes of valuation of the excisable goods intended
to be sold in the area to which the retail sale price relates.

15. (1) No excisable goods shall be removed from a factory or a

warehouse except under an invoice signed by the owner of the
factory or his authorised agent in such manner as may be
Goods to be
prescribed.
removed on
Explanation.–– The signing of invoice shall also include digital invoice.
signature as defined in clause (p) of sub-section (1) of section 2 of
21 of 2000. the Information Technology Act, 2000.

(2) The Central Government may, by notification, specify the

category of excisable goods, where each invoice referred to in sub-
section (1) shall also be countersigned by the Inspector of Central
Excise or the Superintendent of Central Excise, before they are
removed from the factory.

(3) The assessee shall issue invoice showing the description,

quantity and value of goods, the duty charged thereon and such

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other particulars, as may be prescribed.

16. (1) Every person, who ––

(a) produces or manufactures excisable goods; or
(b) carries on trade, or stores goods in a warehouse; or
(c) is desirous of availing Central Excise Duty Credit Registration.
including an importer,
1 of 1944.
shall get himself registered with the Central Excise officer in such
manner as may be prescribed:

Provided that a registration obtained under the Central Excise Act,

1944 and the rules made thereunder, shall be deemed to be valid as
a registration made under this Act.

(2) The Central Government may, by notification and subject to

such conditions or limitations as may be specified in such
notification, specify person or class of persons who may not
require such registration.

(3) Subject to such conditions and manner as may be prescribed,

the Central Government may cancel or revoke the registration
granted under sub-section (1).

17. (1) A manufacturer or producer of final products shall, subject

to such conditions and restrictions and in such manner, as may be
prescribed, be entitled to take credit (hereinafter referred to as the
Central Excise Duty Credit) of the central excise duty and such
other duties of excise, as may be prescribed, paid by him on any
input other than motor spirit, commonly called as petrol, and high Central Excise
speed diesel, received by him for the use in or in relation to the Duty Credit.
manufacture of final product.
Explanation.-–– For the purposes of this section, ―input"
means excisable goods used in the factory by the manufacturer or
in relation to the manufacture of the final product.

(2) The Central Excise Duty Credit may be utilised for payment of
any duty of excise on any final product, or such other amount
payable under the rules made thereunder, subject to such
limitations, restrictions and conditions, as may be prescribed.

(3) The Central Excise Duty Credit, including restriction on

utilisation of such credit, lying unutilised with the manufacturer of
specified excisable goods shall lapse on such date as the Central
Government may, by notification, specify and in such manner as

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may be prescribed.

18. (1) Any amount of credit earned by an assessee under the

provisions of the Central Excise Act, 1944 and the relevant rules
made thereunder, as they existed prior to the date of
1 of 1944. commencement of this Act, and remaining unutilised on that day, Transitional
shall be allowed as Central Excise Duty Credit to such assessee credit.
and be allowed to be utilised in accordance with the provisions of
this Act and the rules made thereunder.

(2) An assessee shall be entitled to take credit of central excise

duty and such other duties of excise prescribed under sub-section
(1) of section 17 in respect of any inputs other than motor spirit,
commonly known as petrol, and high speed diesel, received by him
on or after the date of commencement of this Act but the duty in
respect of which has been paid under the repealed Act, subject to
the condition that the inputs were received by such person within a
period of thirty days from the date of commencement of this Act:

Provided that the period of thirty days may, on sufficient cause

being shown, be extended by the Principal Commissioner of
Central Excise or the Commissioner of Central Excise for a further
period not exceeding thirty days.

19. Where an assessee has paid duty of excise on a final product

and has been allowed Central Excise Duty Credit under section 17,
but subsequently the process of making the said product is held by Non-reversal of
the court as not chargeable to duty of excise, the Central Central Excise
Government may, by notification, order for non-reversal of such Duty Credit.
credit allowed to the assessee subject to such conditions as may be
specified in the said notification:

Provided that the order for non-reversal of credit shall not

apply where an assessee has preferred a claim for refund of duty of
excise paid by him:

Provided further that the Central Government may also

specify in such notification for non-reversal of credit, if any, taken
by the buyer of the said product.

CHAPTER IV
ASSESSMENT

20. (1) The assessee shall himself assess the duty payable on any
Assessment of
excisable goods and shall furnish a return or returns, electronically,
duty.
in such form and in such manner and at such frequency and with

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such late fee, as may be prescribed.

(2) The Central Government may, by notification, specify the

category of excisable goods where the Superintendent of Central
Excise or Inspector of Central Excise shall assess the duty payable
before removal by the assessee.

21. (1) Every assessee shall furnish an annual return, which may
include reconciliation of details declared in the periodic returns
furnished for the financial year with the audited annual financial Annual Return
statement, electronically, within such time and in such form and in
such manner as may be prescribed:

Provided that the Central Government may, by notification,

exempt any class of assessee from filing annual return under this
section.
(2) An assessee shall not be allowed to furnish an annual return
under sub-section (1) for a financial year after the expiry of a
period of three years from the due date of furnishing the said
annual return:
Provided that the Central Government may, by notification, and
subject to such conditions and restrictions as may be specified
therein, allow an assessee or a class of assessees to furnish an
annual return for a financial year under sub-section (1), even after
the expiry of the said period of three years from the due date of
furnishing the said annual return.

22. (1) Where the assessee is unable to determine the value of

excisable goods or determine the rate of duty applicable thereto, he
may request the Deputy Commissioner of Central Excise or the
Assistant Commissioner of Central Excise, as the case may be, in
writing, giving reasons for payment of duty on provisional basis Provisional
and the Deputy Commissioner of Central Excise or the Assistant assessment.
Commissioner of Central Excise, as the case may be, may order,
within a period not later than ninety days from the date of receipt
of such request, allowing payment of duty on provisional basis at
such rate or on such value as may be specified by him.

(2) The payment of duty on provisional basis may be allowed, if

the assessee executes a bond in such form, as may be notified, with
such surety or security for such amount as the Deputy
Commissioner of Central Excise or the Assistant Commissioner of
Central Excise, as the case may be, deem fit, binding the assessee
for payment of difference between the amount of duty as may be
finally assessed and the amount of duty provisionally assessed.

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(3) The Deputy Commissioner of Central Excise or the Assistant

Commissioner of Central Excise, as the case may be, shall pass
order for final assessment, as soon as may be, after the relevant
information, as may be required for finalising the assessment, is
available, but within a period not exceeding six months from the
date of the communication of the order issued under sub-section
(1):

Provided that the period specified in this sub-section may,

on sufficient cause being shown and the reasons to be recorded in
writing, be extended by the Principal Commissioner of Central
Excise or Commissioner of Central Excise, as the case may be, for
a further period not exceeding six months and by the Principal
Chief Commissioner of Central Excise or Chief Commissioner of
Central Excise, as the case may be, for such further period as he
may deem fit.

(4) The assessee shall be liable to pay interest on any amount paid
or payable on the goods under provisional assessment, but not paid
on the due date so specified, at the rate as may be specified by the
Central Government, by notification under section 24, for the
period starting with the first day after the due date till the date of
actual payment, whether such amount is paid before or after the
issue of order for final assessment.

(5) Where the assessee is entitled to a refund consequent to an

order of final assessment under sub-section (3), then, subject to
sub-section (6), there shall be paid an interest on such refund as
provided under section 26.

(6) Any amount of refund determined under sub-section (3) shall

be credited to the Fund:

Provided that the amount of refund, instead of being credited

to the Fund, be paid to the applicant, if such amount is relatable to-
(a) the duty of excise paid by the manufacturer; or
(b) the duty of excise borne by the buyer,

if he had not passed on the incidence of such duty to any other

person.
23. The assessee shall pay the duty on the goods removed from the
factory or the warehouse at the rate specified in the First Schedule Payment of
in such manner and within such period as may be prescribed. duty.

24. (1) Every person, who is liable to pay duty in accordance with Interest on
the provisions of this Act or the rules made thereunder, but fails to delayed
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pay the duty or any part thereof to the Central Government within payment of
the period prescribed, shall for the period for which the duty or any duty.
part thereof remains unpaid, pay, on his own, interest at such rate,
not exceeding eighteen per cent. per annum, as may be notified by
the Central Government.

(2) The interest referred to in sub-section (1) shall be paid after

due date by the person liable to pay duty and such interest shall be
calculated from the day succeeding the day on which such duty
becomes due up to the date of actual payment of the amount due.

(3) Where the Central Excise duty has been erroneously refunded,
the assessee shall pay interest on such erroneously refunded duty,
at such rate not exceeding eighteen per cent. per annum, as the
Central Government may, by notification, specify and the interest
thereof shall be calculated for the period starting from the date of
refund of such duty till the date of actual payment of such
erroneously refunded Central Excise duty.

(4) Where the Central Excise Duty Credit has been wrongly
availed and utilised, the assessee shall pay interest on such Central
Excise Duty Credit wrongly availed and utilised, at such rate not
exceeding eighteen per cent. per annum, as the Central
Government may, by notification, specify and the interest thereof
shall be calculated for the period starting from the date of
utilisation of such wrongly availed Central Excise Duty Credit till
the date of reversal of such credit or payment of duty in respect of
such amount as may be prescribed.

(5) Notwithstanding anything contained in sub-section (1), no

interest shall be payable where,—

(a) the duty becomes payable consequent to the issue of an

order, instruction or direction by the Board under section 105; and

(b) such amount of duty is voluntarily paid in full, within

forty-five days from the date of issue of such order, instruction or
direction, without reserving any right to appeal against the said
payment at any subsequent stage of such payment.

CHAPTER V
REFUNDS

25. (1) Any person claiming refund of any duty of excise and Claim for
interest, if any, paid on such duty may make an application for refund of duty
refund of such duty and interest, if any, paid on such duty to the and interest, if

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Deputy Commissioner of Central Excise or Assistant any, paid on

Commissioner of Central Excise before the expiry of one year such duty.
from the relevant date in such form and manner as may be
prescribed and the application shall be accompanied by such
documentary or other evidence, including the documents referred
to in sub-section (1) of section 15, as the applicant may furnish to
establish that the amount of duty of excise and interest, if any, paid
on such duty in relation to which such refund is claimed was
collected from, or paid by, him and the incidence of such duty and
interest, if any, paid on such duty had not been passed on by him to
any other person:

Provided that the limitation of one year shall not apply where any
duty and interest, if any, paid on such duty has been paid under
protest.

(2) When any goods are exported, the Central Government may,
on an application, grant rebate of––

(a) duty paid on excisable goods, as may be specified by it by

notification; or
(b) duty paid on materials used in the manufacture or processing
of such goods,

subject to such procedure, safeguards, conditions and limitations as

may be prescribed.

(3) A manufacturer who clears a final product or an intermediate

product for export without payment of duty under bond or letter of
undertaking, shall, on an application, be allowed refund of Central
52 of 1962. Excise Duty Credit, based on such formula and subject to such
procedure, safeguards, conditions and limitations, as may be
prescribed.

Provided that no refund of credit shall be allowed if the

manufacturer avails of drawback allowed under the rules made
under section 75 of the Customs Act, 1962, or claims refund of
duty under this Act or the rules made thereunder.

(4) If, on receipt of any application under sub-section (1) or sub-

section (2) or sub-section (3), the Deputy Commissioner of Central
Excise or Assistant Commissioner of Central Excise is satisfied
that the whole or any part of the amount claimed by the applicant
is refundable, he may make an order accordingly and the amount
so determined shall be credited to the Consumer Welfare Fund:

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Provided that the amount so determined by the Deputy

Commissioner of Central Excise or Assistant Commissioner 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) refund 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) unspent advance deposits lying in balance in the account

current of the applicant maintained with the Principal
Commissioner of Central Excise or Commissioner of
Central Excise;

(c) refund of credit of duty paid on excisable goods used as

inputs in accordance with the rules made, or any notification
issued, under this Act;

(d) the duty of excise and interest, if any, paid on such duty
paid by the manufacturer, if he had not passed on the
incidence of such duty and interest, if any, paid on such duty
to any other person;

(e) the duty of excise and interest, if any paid on such duty
borne by the buyer, if he had not passed on the incidence of
such duty and interest, if any, paid on such duty to any other
person;

(f) the duty of excise and interest, if any paid on such duty
borne by any other such class of applicants as the Central
Government may, by notification, 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 and interest, if any, paid on
such duty has not been passed on by the persons concerned to any
other person.

(5) Notwithstanding anything to the contrary contained in any

other law for the time being in force, no refund shall be made
except as provided in sub-section (4).

(6) Every notification under clause (f) of the first proviso to sub-
section (4) shall be laid, as soon as may be after it is issued, before
each House of Parliament, while it is in session, and, if it is not in
session, within seven days of its re-assembly, and the Central
Government shall seek the approval of Parliament to the
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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 under that notification.

(7) For the removal of doubts, it is hereby declared that any

notification issued under clause (f) of the first proviso to sub-
section (4), including any such notification approved or modified
under sub-section (6), may be rescinded by the Central
Government at any time by like notification.

Explanation.— For the purposes of this section,—

(a) ―export‖ with its grammatical variations and cognate

expressions, means taking goods out of India to a place outside
India and includes shipment of goods as provision or stores for use
on board a ship proceeding to a foreign port or supplied to a
foreign going aircraft.

)b( "refund‖ includes rebate of duty of excise;

(c) "relevant date‖ means,—

(i) in the case of goods exported out of India, where a refund

of duty of excise paid is available in respect of the goods
themselves or the excisable materials used in the manufacture
of such goods, as the case may be, —

(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

(III) if the goods are exported by post, the date of

dispatch of goods by the Post Office concerned to a
place outside India;

(ii) 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;

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(iii) 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 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;

(iv) in the case of a person, other than the manufacturer, the

date of purchase of the goods by such person;

(v) in the case of goods which are exempt from payment of

duty by a special order issued under sub-section (3) of section
10, the date of issue of such order;

(vi) in case where duty of excise is paid provisionally under

this Act or the rules made thereunder, the date of adjustment of
duty after the final assessment thereof;

(vii) in case where the duty becomes refundable as a

consequence of judgment, decree, order or direction of
Commissioner of Central Excise (Appeals), Appellate Tribunal
or any court, the date of such judgment, decree, order or
direction;

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

26. If any duty ordered to be refunded under sub-section (4) of

section 25 to any applicant is not refunded within sixty days from
the date of receipt of application under sub-section (1) or sub-
section (2) or sub-section (3) of that section, there shall be paid to Interest on
that applicant interest on such duty at such rate, not exceeding six delayed
per cent. per annum, as the Central Government may, by refunds.
notification, specify, from the date immediately after the expiry of
sixty days from the date of receipt of such application till the date
of refund of such duty.

Explanation.— Where any order of refund is made by the

Commissioner of Central Excise (Appeals), or Appellate Tribunal,
or any court against an order of the Deputy Commissioner of
Central Excise or Assistant Commissioner of Central Excise, under
sub-section (4) of section 25, the order passed by the
Commissioner of Central Excise (Appeals), or by the Appellate
Tribunal, or by the court, as the case may be, shall be deemed to be
an order passed under the said sub-section (4) for the purposes of
this section.

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27. Every person who has paid the central excise duty on any Presumption
goods under this Act shall, unless the contrary is proved by him, be that incidence
deemed to have passed on the full incidence of such duty to the of duty has
buyer of such goods. been passed on
to buyer.
28. (1) There shall be established by the Central Government a Consumer
Fund, to be called the Consumer Welfare Fund. 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 (4) of

section 25 or sub-section (2) of section 34 or sub-section (7)
of section 35;

(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-
52 of 1962. section (5) 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
Government for the purposes of this Fund.

29. Any money credited to the Fund shall be utilised by the Central
12 of 2017. Government for the welfare of the consumers in such manner, as Utilisation of
may be prescribed. Fund.

(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
formas may be prescribed, in consultation with the Comptroller
and Auditor-General of India.

CHAPTER VI
AUDIT

30. (1) The Central Excise Officer may undertake audit of any
registered person either in his office or in the premises of the Audit by
assessee for such period, at such frequency and in such manner, as Central Excise
may be prescribed. Officers.

(2) During the course of the audit, the Central Excise Officer may
require the registered person, -
(a) to afford him the necessary facility to verify the books of
account or other documents as he may require;

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(b) to furnish such information as he may require and render

assistance for the completion of the audit.

31. (1) If at any stage of enquiry, investigation or any other

proceedings before him, any Central Excise Officer not below the
rank of Assistant Commissioner of Central Excise, having regard
to the nature and complexity of the case and the interest of
revenue, is of opinion that the value has not been correctly
declared or determined by a manufacturer or any person, or the
credit availed or utilised is not within the normal limits, he may, Special Audit
with the prior approval of the Principal Commissioner of Central in certain
Excise or Commissioner of Central Excise, direct such cases.
manufacturer or such person to get the accounts of his factory,
office, depots, distributors or any other place, as may be specified
by the said Central Excise Officer, audited by a cost accountant or
chartered accountant, nominated by the Principal Commissioner of
Central Excise or Commissioner of Central Excise in this behalf.

(2) The cost accountant or chartered accountant, so nominated

under sub-section (1) 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
referred to in sub-section (1) have been audited under any other
law for the time being in force.

(4) 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,––

(a) “chartered accountant‖ shall have the meaning assigned to
it in clause (b) of sub-section (1) of section 2 of the Chartered

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38 of 1949. Accountants Act, 1949;

(b) ―cost accountant‖ shall have the meaning assigned to it in
clause (b) of sub-section (1) of section 2 of the Cost and Works
23 of 1959.
Accountants Act, 1959.

CHAPTER VII
DEMANDS AND RECOVERY

32.(1) Where any duty of excise has not been levied or paid or has Determination
been short-levied or short-paid or erroneously refunded or where of duties not
Central Excise Duty Credit has been wrongly availed or utilized, levied or not
for any reason— paid or short-
levied or short-
paid or
erroneously
refunded or
Central Excise
Duty Credit
wrongly
availed or
utilized.
(a) the Central Excise Officer shall, within three years from
the relevant date, serve notice on the person chargeable
with the duty which has not been so levied or paid, or
which has been so short-levied or short-paid, or to whom
the refund has erroneously been made, or who has wrongly
availed or utilized Central Excise Duty Credit, requiring
him to show cause why he should not pay the amount
specified in the notice along with interest payable thereon
under section 24 and a penalty leviable under the
provisions of this Act or the rules made thereunder.

(b) the person chargeable with duty may, before service of

notice under clause (a), pay on the basis of,—
(i) his own ascertainment of such duty; or
(ii) the duty ascertained by the Central Excise
Officer,
the amount of duty along with interest payable thereon
under section 24.

(2) The person who has paid the duty under clause (b) of sub-
section (1), shall inform the Central Excise Officer of such
payment in writing, who, on receipt of such information, shall not
serve any notice under clause (a) of that sub-section in respect of
the duty so paid or any penalty leviable under the provisions of this
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Act or the rules made thereunder.

(3) Where the Central Excise Officer is of opinion that the amount
paid under clause (b) of sub-section (1) falls short of the amount
actually payable, then, he shall proceed to issue the notice as
provided for in clause (a) of that sub-section in respect of such
amount which falls short of the amount actually payable in the
manner specified under that sub-section and the period of three
years shall be computed from the date of receipt of information
under sub-section (2).

(4) Notwithstanding anything contained in sub-section (1) or sub-

section (3), the Central Excise Officer may, serve, subsequent to
any notice or notices served under any of those sub-sections, as the
case may be, a statement, containing the details of central excise
duty not levied or paid, or short-levied or short-paid, or
erroneously refunded or Central Excise Duty Credit wrongly
availed or utilized, for the subsequent period, on the person
chargeable to central excise duty, then, service of such statement
shall be deemed to be service of notice on such person under the
aforesaid sub-section (1) or sub-section (3), subject to the
condition that the grounds relied upon for the subsequent period
are the same as are mentioned in the earlier notice or notices.

(5) Where the service of notice is stayed by an order of a court or

the Appellate Tribunal, the period of such stay shall be excluded in
computing the period of three years referred to in clause (a) of sub-
section (1) as the case may be.

(6) The Central Excise Officer shall, after allowing the concerned
person an opportunity of being heard, and after considering the
representation, if any, made by such person, determine the amount
of central excise duty due from such person not being in excess of
the amount specified in the notice.

(7) The Central Excise Officer shall determine the amount of

central excise duty under sub-section (6) within one year from the
date of notice issued under sub-section (1):

Provided that where the Central Excise Officer fails to so

determine within the specified period, any officer senior in rank to
the Central Excise Officer may, having regard to the circumstances
under which the Central Excise Officer was prevented from
determining the amount of duty under sub-section (6), extend the
period upto a maximum period of six months for reasons to be
recorded in writing:

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Provided further that where the Central Excise Officer fails to

determine the amount of central excise duty under sub-section (6)
within such extended period, such proceeding shall be deemed to
have concluded as if no notice had been issued.

(8) Notwithstanding anything contained in sub-section (7), where

the Central Excise Officer is unable to determine the amount of
duty under sub-section (6) for the reason that—
(a) an appeal in a similar matter of the same person or
any other person is pending before the Appellate Tribunal
or the High Court or the Supreme Court; or
(b) an interim order of stay has been issued by the
Appellate Tribunal or the High Court or the Supreme
Court; or
(c) the Board has, in a similar matter, issued specific
direction or order to keep such matter pending; or
(d) the Settlement Commission has admitted an
application made by the person concerned,
the Central Excise Officer shall inform the person concerned the
reason for non-determination of the amount of duty under sub-
section (6) and in such case, the time specified in sub-section (7)
shall apply not from the date of notice, but from the date when
such reason ceases to exist.

(9) Where the Commissioner of Central Excise (Appeals) or the

Appellate Tribunal or court modifies the amount of duty of excise
determined by the Central Excise Officer under sub-section (6),
then the amount of penalties and interest shall stand modified
accordingly, taking into account the amount of duty of excise so
modified.

(10) Where the amount as modified by the Commissioner of

Central Excise (Appeals) or the Appellate Tribunal or court is
more than the amount determined under sub-section (6) by the
Central Excise Officer, the time within which the interest or
penalty is payable under this Act shall be counted from the date of
the order of the Commissioner of Central Excise (Appeals) or the
Appellate Tribunal or court in respect of such increased amount.

(11) Where an order determining the central excise duty is passed

by the Central Excise Officer under this section, the person liable
to pay the said central excise duty shall pay the amount so
determined along with the interest due on such amount whether or
not the amount of interest is specified separately.

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(12) The provisions of sub-sections (1) to (11) shall apply, mutatis

mutandis, to the determination of interest where interest payable
has not been paid, or part paid, or erroneously refunded.

(13) The provisions of this section shall not apply to a case where
the liability of duty not paid or short-paid is self-assessed and
declared as duty payable by the assessee in the periodic returns
filed by him, and in such case, recovery of non-payment or short-
payment of duty shall be made as per section 37 and the rules
made thereunder.

(14) Where any order is required to be issued by a Central Excise

Officer in pursuance of a direction or order of the Commissioner
of Central Excise (Appeals) or Appellate Tribunal or a court, such
order shall be issued by the Central Excise Officer within one year
from the date of communication of the said direction or order:

Provided that where the Central Excise Officer fails to so

determine within the specified period, any officer senior in rank to
the Central Excise Officer may, having regard to the circumstances
under which the Central Excise Officer was prevented from
determining the amount of duty, extend the period upto a
maximum period of six months for reasons to be recorded in
writing.

Explanation 1.–– For the purposes of this section and section

33,––
(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,––
(i) the due date for furnishing of annual return for
the financial year to which the central excise duty
not levied or paid, or short-levied or short-paid
relates to;
(ii) in any other case, the date on which duty of
excise is required to be paid under this Act or the
rules made thereunder;
(iii) 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;
(iv) in the case of excisable goods on which duty of
excise has been erroneously refunded, the date of
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such refund;
(v) in the case where only interest is to be
recovered, the date of payment of duty to which
such interest relates;
(vi) in the case where Central Excise Duty Credit
has been wrongly availed or utilised as per clause
(i) above, as applicable.

Explanation 2.–– For the removal of doubts, it is hereby declared

that notwithstanding anything to the contrary contained in any
other law for the time being in force, in cases where notice has
been issued for duty of excise not levied or paid or short-levied or
1 of 1944 short-paid or erroneously refunded or CENVAT credit wrongly
availed or utilised, prior to the date on which this Act is notified by
the Central Government, such notice shall continue to be governed
by the provisions of section 11A of the Central Excise Act, 1944
as it stood immediately before such date.

33. (1) The amount of penalty for non-levy, or short-levy, or non- Penalty for
payment, or short-payment, or erroneous refund or Central Excise short-levy or
Duty Credit wrongly availed or utilized, shall be as follows— non-levy of
duty or
erroneous
refund or
Central Excise
Duty Credit
wrongly
availed or
utilized, in
certain cases.
(a) where any duty of excise has not been levied or paid, or
has been short-levied or short-paid, or erroneously
refunded, or where Central Excise Duty Credit has been
wrongly availed or utilized, for any reason other than the
reason of fraud, or any willful mis-statement, or
suppression of facts to evade payment of duty, the person
who is liable to pay duty as determined under sub-section
(6) of section 32 shall also be liable to pay a penalty not
exceeding ten per cent. of the duty so determined:

Provided that where such duty and interest payable under

section 24 is paid either before the issue of show cause
notice or within thirty days of issue of show cause notice, no
penalty shall be payable by the person liable to pay duty or
the person who has paid the duty and all proceedings in
respect of said duty and interest shall be deemed to be

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concluded;

(b) where any duty as determined under sub-section (6) of

section 32 and the interest payable thereon under section 24
in respect of transactions referred to in clause (a) is paid
within thirty days of the date of communication of the
order of the Central Excise Officer who has determined
such duty, the amount of penalty liable to be paid by such
person shall be twenty-five per cent. of the penalty
imposed, subject to the condition that such reduced penalty
is also paid within the period so specified and all
proceedings in respect of the said duty, interest and penalty
shall be deemed to be concluded;

(c) 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 or any willful mis-statement
or suppression of facts to evade payment of duty, the
person who is liable to pay duty as determined under sub-
section (6) of section 32 shall also be liable to pay a penalty
equal to the duty so determined:
Provided that where such duty and interest payable under
section 24 is paid before the issuance of show cause notice,
the amount of penalty liable to be paid by such person shall
be fifteen per cent. of the duty demanded, subject to the
condition that such reduced penalty is also paid within the
period so specified and all proceedings in respect of the
said duty, interest and penalty shall be deemed to be
concluded;
(d) where any duty demanded in a show cause notice and
the interest payable thereon under section 24 issued in
respect of transactions referred to in clause (c), is paid
within thirty days of the communication of show cause
notice, the amount of penalty liable to be paid by such
person shall be twenty-five per cent. of the duty
demanded, subject to the condition that such reduced
penalty is also paid within the period so specified and all
proceedings in respect of the said duty, interest and
penalty shall be deemed to be concluded;
(e) where any duty as determined under sub-section (6) of
section 32 and the interest payable thereon under section
24 in respect of transactions referred to in clause (c) is paid
within thirty days of the date of communication of the
order of the Central Excise Officer who has determined
such duty, the amount of penalty liable to be paid by such
person shall be fifty per cent. of the duty so determined,

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subject to the condition that such reduced penalty is also

paid within the period so specified and all proceedings in
respect of the said duty, interest and penalty shall be
deemed to be concluded.
Explanation : For the purposes of this Act, -
(i) the expression ―all proceedings in respect of the
said notice shall not include the proceedings under
section 90.‖
(ii) the expression "suppression" shall mean non-
declaration of facts or information which an
assessee is required to declare in the returns,
statement, report or any other document furnished
under this Act or the rules made thereunder, or
failure to furnish any information on being asked
for, in writing, by the Central Excise officer.

(2) Where the appellate authority or tribunal or court modifies the

amount of duty of excise determined by the Central Excise Officer
under sub-section (6) of section 32, then, the amount of penalty
payable under clause (a) or clause (c) of sub-section (1) and the
interest payable under section 24 shall stand modified accordingly
and after taking into account the amount of duty of excise so
modified, the person who is liable to pay duty as determined under
sub-section (6) of section 32 shall also be liable to pay such
amount of penalty and interest so modified.
(3) Where the amount of duty or penalty is increased by the
appellate authority or tribunal or court over the amount determined
under sub-section (6) of section 32 by the Central Excise Officer,
the time within which the interest and the reduced penalty is
payable under clause (b) or clause (e) of sub-section (1) in relation
to such increased amount of duty shall be counted from the date of
the order of the appellate authority or tribunal or court.
34. (1) Notwithstanding anything contained in this Act, if the
Central Government is satisfied—

(a) that a practice was, or is, generally prevalent regarding levy Power not to
of duty of excise (including non- levy thereof) on any excisable recover duty of
goods; and excise not
levied or short-
(b) that such goods were, or are, liable— levied as a
result of
(i) to duty of excise, in cases where according to the said general
practice the duty was not, or is not being, levied; or practice.
(ii) to a higher amount of duty of excise than what was, or
is being, levied, according to the said practice,

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then, the Central Government may, by notification, 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.

(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 with the provisions of sub-section (4) of section 25:

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 Deputy Commissioner of Central Excise or Assistant
Commissioner of Central Excise, in the form referred to in sub-
section (1) of section 25, before the expiry of six months from the
date of issue of the said notification.

35. (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 Duties of
person who has collected from any other person any amount as excise
representing the duty under this Act, and has not paid the said collected but
amount to the Central Government, shall forthwith pay the said not paid to the
amount to the Central Government, irrespective of whether the Central
goods in respect of which such amount was collected are dutiable Government
or not.

(2) Where any amount is required to be paid to the credit of the

Central Government under sub-section (1) and which has not been
so paid, the Central Excise Officer may serve, on the person liable
to pay such amount, a notice requiring him to show cause why the
said amount, as specified in the notice, should not be paid by him
to the credit of the Central Government and why a penalty
equivalent to the amount specified in the notice should not be
imposed on him under the provisions of this Act.

(3) The Central Excise Officer shall, after considering the

representation, if any, made by the person on whom the notice is
served under sub-section (2), determine the amount 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.

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(4) The Central Excise Officer shall issue an order within one year
from the date of issue of the notice under sub-section (2).

(5) Where the issuance of order is stayed by an order of the court

or Appellate Tribunal, the period of such stay shall be excluded in
computing the period of one year.

(6) The amount paid to the credit of the Central Government under
sub-section (1) or sub-section (3), as the case may be, shall be
adjusted against the duty of excise payable by the person on
finalisation of assessment or any other proceeding for
determination of the duty of excise relating to the excisable goods
referred to in sub-section (1).

(7) Where any surplus is left after the adjustment under sub-section
(6), the amount of such surplus shall either be credited to the Fund
or refunded to the person who has borne the incidence of such
amount.

(8) The person who has borne the incidence of the amount, may
apply for the refund of the same in accordance with the provisions
of section 25 for the refund of such surplus amount.

36. (1) Where an amount has been collected in excess of the duty
assessed or determined and paid or payable on any excisable goods
under this Act or the rules made thereunder from the buyer of such
goods, or from any person, or where a person has collected any
amount as representing duty of excise on any excisable goods
which are wholly exempt or are chargeable to nil rate of duty, the Interest on
person who is liable to pay such amount as determined under sub- amounts
section (3) of section 35, shall, in addition to the amount, be liable collected in
to pay interest at such rate not exceeding eighteen per cent. per excess of duty.
annum, as the Central Government may, by notification, specify,
from the first day of the month succeeding the month in which the
amount ought to have been paid under this Act, but for the
provisions contained in sub-section (3) of section 35, till the date
of payment of such amount:

Provided that in such cases where the amount becomes payable

consequent to issue of an order, instruction or direction by the
Board under section 105, and such amount payable is voluntarily
paid in full, without reserving any right to appeal against such
payment at any subsequent stage, within forty-five days from the
date of issue of such order, instruction or direction, as the case may
be, no interest shall be payable and in other cases the interest shall
be payable on the whole amount, including the amount already
paid.

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Explanation.— Where the amount determined under sub-

section (3) of section 35 is ––
(a) reduced by the Commissioner of Central Excise (Appeals),
or the Appellate Tribunal, or the court, the interest payable
thereon under sub-section (1) shall be on such reduced
amount;
(b) increased by the Commissioner of Central Excise
(Appeals), or the Appellate Tribunal, or the court, the
interest payable thereon under sub-section (1) shall be on
such increased amount.

37. (1) Where any amount payable by a person to the Central

Government under any of the provisions of this Act or the rules
made thereunder is not paid, the Central Excise Officer shall
proceed to recover the amount by one or more of the following
modes, namely:-

(a) the Central Excise Officer may deduct or may require any
other specified officer to deduct the amount so payable from
any money owing to such person which may be under the
control of the Central Excise Officer or such other specified
officer;

(b) the Central Excise Officer may recover or may require any
other specified officer to recover the amount so payable by
attaching and selling any goods belonging to such person which
are under the control of the Central Excise Officer or such other
specified officer; Recovery of
sums due to
(c) Government
(i) the Central Excise Officer may, by a notice in writing,
require any other person from whom money is due or may
become due to such person or who holds or may
subsequently hold money for or on account of such person,
to pay to the Central Government either forthwith upon the
money becoming due or being held, or within the time
specified in the notice not being before the money becomes
due or is held, so much of the money as is sufficient to pay
the amount due from such person or the whole of the
money when it is equal to or less than that amount;

(ii) every person to whom the notice is issued under sub-

clause (i) shall be bound to comply with such notice, and
in particular, where any such notice is issued to a post
office, banking company or an insurer, it shall not be
necessary to produce any pass book, deposit receipt, policy

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or any other document for the purpose of any entry,

endorsement or the like being made before payment is
made, notwithstanding any rule, practice or requirement to
the contrary;
(iii) in case the person to whom a notice under sub-clause
(i) has been issued, fails to make the payment in pursuance
thereof to the Central Government, he shall be deemed to
be a defaulter in respect of the amount specified in the
notice and all the consequences of this Act or the rules
made thereunder shall follow;

(iv) the officer issuing a notice under sub-clause (i) may, at

any time, amend or revoke such notice or extend the time
for making any payment in pursuance of the notice;
(v) any person making any payment in compliance with a
notice issued under sub-clause (i) shall be deemed to have
made the payment under the authority of the person in
default and such payment being credited to the Central
Government shall be deemed to constitute a good and
sufficient discharge of the liability of such person to the
person in default to the extent of the amount specified in
the receipt;
(vi) any person discharging any liability to the person in
default after service on him of the notice issued under sub-
clause (i) shall be personally liable to the Central
Government to the extent of the liability discharged or to
the extent of the liability of the person in default for duty,
interest and penalty, whichever is less;

(vii) where a person on whom a notice is served under sub-

clause (i) proves to the satisfaction of the officer issuing
the notice that the money demanded or any part thereof
was not due to the person in default or that he did not hold
any money for or on account of the person in default, at the
time the notice was served on him, nor is the money
demanded or any part thereof, likely to become due to the
said person or be held for or on account of such person,
nothing contained in this section shall be deemed to require
the person on whom the notice has been served to pay to
the Central Government any such money or part thereof;
(d) the Central Excise Officer may, in accordance with the rules
to be made in this behalf, distrain any movable or immovable
property belonging to or under the control of such person, and
detain the same until the amount payable is paid; and in case,
any part of the said amount payable or of the cost of the distress
or keeping of the property, remains unpaid for a period of thirty
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days next after any such distress, may cause the said property
to be sold and with the proceeds of such sale, may satisfy the
amount payable and the costs including cost of sale remaining
unpaid and shall render the surplus amount, if any, to such
person;
(e) the Central Excise Officer may prepare a certificate signed
by him specifying the amount due from such person and send it
46 of 2023. to the Collector of the district in which such person owns any
property or resides or carries on his business or to any officer
authorised by the Central Government and the said Collector or
the said officer, on receipt of such certificate, shall proceed to
recover from such person the amount specified thereunder as if
it were an arrear of land revenue;

(f) Notwithstanding anything contained in the Bharatiya

Nagarik Suraksha Sanhita, 2023, the Central Excise Officer
may file an application to the appropriate Magistrate and such
Magistrate shall proceed to recover from such person the
amount specified thereunder as if it were a fine imposed by
him.

(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
prejudice to any other mode of recovery, be recovered in
accordance with the provisions of that sub-section.

(3) Where any amount of duty, interest or penalty is payable by a

person to the Central Government under any of the provisions of
this Act or the rules made thereunder and which remains unpaid,
the Central Excise Officer, during the course of recovery of said
duty arrears, may recover the amount from the said person as if it
were an arrear of central excise duty and credit the amount so
recovered to the account of the Central Government.

38. Notwithstanding anything to the contrary contained in any

Central Act or State Act, any amount of duty, penalty, interest, or
any other sum payable by an assessee or any other person under
this Act or the rules made thereunder shall, save as otherwise Liability under
18 of 2013. provided in section 326 of the Companies Act, 2013, the Recovery Act to be first
51 of 1993. of Debts Due to Banks and the Financial Institutions Act, 1993, the charge.
Securitisation and Reconstruction of Financial Assets and the
54 of 2002. Enforcement of Security Interest Act, 2002 and the Insolvency and
31 of 2016. Bankruptcy Code, 2016, be the first charge on the property of the
assessee or the person, as the case may be.

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39. (1) Where, during the pendency of any proceedings under

Chapter IV, Chapter VII and Chapter X, the Central Excise Officer
is of opinion that for the purpose of protecting the interests of Provisional
revenue, it is necessary so to do, he may, with the prior approval of attachment to
the Principal Commissioner of Central Excise or Commissioner of protect revenue
Central Excise, by order in writing, attach provisionally any in certain
property belonging to the person on whom notice is served under cases.
52 of 1962. section 32 or sub-section (2) of section 35, as the case may be.

(2) Every such provisional attachment shall cease to have effect

after the expiry of a period of six months from the date of the order
made under sub-section (1):

Provided that the Principal Chief Commissioner of Central

Excise or Chief Commissioner of Central Excise may, for reasons
to be recorded in writing, extend the said period by such further
period or periods as he thinks fit, so, however, that the total period
of extension shall not in any case exceed two years:

Provided further that where an application for settlement of

case under section 48 is made to the Settlement Commission, the
period commencing from the date on which such application is
made and ending with the date on which an order under sub-
section (1) of section 49 is made shall be excluded from the period
specified in the preceding proviso.

40. (1) Notwithstanding anything contained in the Companies Act,

2013, where any duty, interest or penalty due from a private
company in respect of removal of any excisable goods for any
period cannot be recovered, then, every person who was a director Liability of
30 of 2013. of the private company during such period shall, jointly and directors of
severally, be liable for the payment of such duty, interest or private
penalty unless he proves that the non-recovery cannot be attributed company
to any gross neglect, misfeasance or breach of duty on his part in
relation to the affairs of the company.

(2) Where a private company is converted into a public company

and the duty, interest or penalty in respect of removal of any
excisable goods for any period during which such company was a
private company cannot be recovered before such conversion,
then, nothing contained in sub-section (1) shall apply to any person
who was a director of such private company in relation to any
duty, interest or penalty in respect of such removal of any
excisable goods of such private company:

Provided that nothing contained in this sub-section shall apply to

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any personal penalty imposed on such director.

41. Notwithstanding any contract to the contrary and any other law
for the time being in force, where any firm is liable to pay any Liability of
duty, interest or penalty under this Act, the firm and each of the partners of firm
partners of the firm shall, jointly and severally, be liable for such to pay duty
payment:

Provided that where any partner retires from the firm, he or the
firm, shall intimate the date of retirement of the said partner to the
Principal Commissioner of Central Excise or Commissioner of
Central Excise by a notice in that behalf in writing and such
partner shall be liable to pay duty, interest or penalty due up to the
date of his retirement whether determined or not, on that date:

Provided further that if no such intimation is given within one

month from the date of retirement, the liability of such partner
under the first proviso shall continue until the date on which such
intimation is received by the Principal Commissioner of Central
Excise or Commissioner of Central Excise.

CHAPTER VIII
SETTLEMENT COMMISSION

42. In this Chapter, unless the context otherwise requires,— Definitions

(a) ―Bench‖ means a Bench of the Settlement Commission;

(b) ―case‖ means any proceeding under this Act or any other Act
for the–
(i) levy or assessment or collection of duty of excise; or
(ii) determination of Central Excise Duty Credit wrongly
availed or utilised,
and pending before an adjudicating authority on the date on
which an application under sub-section (1) of section 48 is made:

Provided that when any proceeding is referred by any court,

Appellate Tribunal or any other authority, to the adjudicating
authority for fresh adjudication or decision, then such proceeding
shall not be deemed to be a proceeding pending within the
meaning of this clause;

(c) ―Chairperson‖ means the Chairperson of the Settlement

Commission;

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(d) ―Commissioner (Investigation)‖ means an officer of the

Customs or a Central Excise Officer appointed as such
Commissioner to conduct inquiry or investigation for the purposes
of this Chapter;

(e) ―Member‖ means a Member of the Settlement Commission and

includes the Chairperson and the Vice-Chairperson;

(f) ―Settlement Commission‖ means the Customs, Central Excise

and Service Tax Settlement Commission constituted under section
43; and

(g) ―Vice-Chairperson‖ means a Vice-Chairperson of the

Settlement Commission.

43. (1) The Central Government shall, by notification, constitute a Customs,

Commission to be called the Customs, Central Excise and Service Central Excise
Tax Settlement Commission for the settlement of cases under this and Service
52 of 1962. Chapter and Chapter XIV-A of the Customs Act, 1962. Tax Settlement
Commission.
(2) The Settlement Commission shall consist of a Chairperson and
as many Vice-Chairpersons and other Members as the Central
Government thinks fit and shall function within the Department of
the Central Government dealing with Customs and Central Excise
matters.

(3) The Central Government shall appoint the Chairperson, Vice-

Chairpersons and other Members of the Settlement Commission
from amongst persons of integrity and outstanding ability, having
special knowledge of, and experience in, administration of customs
and central excise laws.

44. (1) Subject to the other provisions of this Chapter, the Jurisdiction
jurisdiction, powers and authority of the Settlement Commission and powers of
may be exercised by the Benches thereof. Settlement
Commission.
(2) Subject to the other provisions of this section, a Bench shall be
presided over by the Chairperson or a Vice-Chairperson and shall
consist of two other Members.

(3) The Bench for which the Chairperson is the presiding officer
shall be the principal Bench and other Benches shall be known as
additional Benches.

(4) Notwithstanding anything contained in sub-section (1) and sub-

section (2), the Chairperson may, in addition, authorise the Vice-
Chairperson or other Member appointed to one Bench to discharge
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the functions of the Vice-Chairperson or, as the case may be, other
Member of another Bench.

(5) The principal Bench shall sit at New Delhi and the Central
Government shall, by notification, establish additional Benches at
such places as it considers necessary.

(6) Notwithstanding anything contained in sub-sections (1) to (5),

and subject to any rules that may be made in this behalf, when one
of the persons constituting a Bench (whether such person be the
presiding officer or other Member of the Bench) is unable to
discharge his functions owing to absence, illness or any other
cause or in the event of the occurrence of any vacancy either in the
office of the presiding officer or in the office of one or the other
Members of the Bench, the remaining Members may function as
the Bench and if the presiding officer of the Bench is not one of
the remaining Members, the senior among the remaining Members
shall act as the presiding officer of the Bench:

Provided that if at any stage of the hearing of any such case

or matter, it appears to the presiding officer that the case or matter
is of such a nature that it ought to be heard by a Bench consisting
of three Members, the case or matter may be referred by the
presiding officer of such Bench to the Chairperson for transfer to
such Bench as the Chairperson may deem fit:

Provided further that at any stage of the hearing of any such

case or matter, referred to in the first proviso, the Chairperson
may, if he thinks that the case or matter is of such a nature that it
ought to be heard by a Bench consisting of three Members,
constitute such Bench and if the Vice-Chairperson is not one of the
Members, the senior among the Members shall act as the presiding
officer of such Bench.

(7) Notwithstanding anything contained in sub-sections (1) to (6),

the Chairperson may, for the disposal of any particular case,
constitute a special Bench consisting of more than three Members.

(8) Subject to the other provisions of this Chapter, the special

Bench shall sit at a place to be fixed by the Chairperson.

Vice-
45. (1) In the event of the occurrence of any vacancy in the office
Chairperson to
of the Chairperson by reason of his death, resignation or otherwise,
act as
the Vice-Chairperson or the Member as the Central Government
Chairperson or
may, by notification, authorise in this behalf, shall act as the
to discharge his
Chairperson until the date on which a new Chairperson, appointed
functions in
in accordance with the provisions of this Chapter to fill such
certain
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vacancy, enters upon his office. circumstances.

(2) When the Chairperson is unable to discharge his functions

owing to absence, illness or any other cause, the Vice-Chairperson
or the Member as the Central Government may, by notification,
authorise in this behalf, shall discharge the functions of the
Chairperson until the date on which the Chairperson resumes his
duties.

46. The Chairperson may, on an application of the assessee or

the Principal Chief Commissioner of Central Excise or Chief Power of
Commissioner of Central Excise or Principal Commissioner of Chairperson to
Central Excise or Commissioner of Central Excise, after giving transfer cases
notice, and hearing such of them as he may desire to be heard, or from one
on his own motion without such notice, transfer any case pending Bench to
before one Bench, for disposal, to another Bench. another.

47. If the Members of a Bench differ in opinion on any point, the

point shall be decided according to the opinion of the majority, if
there is a majority, but if the Members are equally divided, they
shall state the point or points on which they differ, and make a
reference to the Chairperson, who shall either hear the point or
points himself, or refer the case for hearing on such point or points Decision to be
by one or more of the other Members of the Settlement by majority.
Commission, and such point or points shall be decided according
to the opinion of the majority of the Members of the Settlement
Commission who have heard the case, including those who first
heard it.

48. (1) An assessee may, in respect of a case relating to him, make

an application, before adjudication, to the Settlement Commission
to have the case settled, in such form and manner, as may be
prescribed, and shall contain––
(a) a full and true disclosure of his duty liability, which has not
been disclosed before the Central Excise Officer having
jurisdiction;
(b) the manner in which such liability has been derived; Application for
settlement of
(c) the additional amount of duty of excise accepted to be cases.
payable by him; and
(d) such other particulars, as may be prescribed, including the
particulars of such excisable goods in respect of which he
admits short levy on account of misclassification, under-
valuation, inapplicability of exemption notification or Central
Excise Duty Credit,
and any such application shall be disposed of in the manner

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hereinafter provided:

Provided that no such application shall be made unless,—

(a) the applicant has filed returns showing production,
clearance and the duty of excise paid in the manner as
may be prescribed;

(b) a show cause notice for recovery of duty issued by the

Central Excise Officer has been received by the
applicant;
(c) the additional amount of duty accepted by the applicant in
his application exceeds three lakh rupees; and
(d) the applicant has paid the additional amount of duty of
excise accepted by him along with interest due under
section 24:

Provided further that if the Settlement Commission is

satisfied that the circumstances exist for not filing the returns
referred to in clause (a) of the first proviso, it may, after recording
the reasons therefor, allow the applicant to make such application:

Provided also that no application shall be entertained by the

Settlement Commission under this sub-section in cases which are
pending with the Appellate Tribunal or any court:

Provided also that no application under this sub-section shall

be made for the interpretation of the classification of excisable
goods specified in the First Schedule.

(2) Every application made under sub-section (1) shall be

accompanied by such fees as may be prescribed.

(3) An application made under sub-section (1) shall not be allowed

to be withdrawn by the applicant.

(4) Any person other than an assessee, may also make an

application to the Settlement Commission in respect of a show
cause notice issued to him in a case relating to the assessee, which
has been settled or is pending before the Settlement Commission
and such notice is pending before an adjudicating authority, in
such manner and subject to such conditions, as may be prescribed.

49. (1) The Settlement Commission shall, within seven days from Procedure on
the date of receipt of the application under section 48, issue a receipt of
notice to the applicant to explain in writing as to why the application

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application made by him should be allowed to be proceeded with,

and after taking into consideration the explanation provided by the
applicant, the Settlement Commission shall, within a period of
fourteen days from the date of the notice, by an order, allow the
application to be proceeded with, or reject the application, as the
case may be, and the proceedings before the Settlement
Commission shall abate on the date of rejection:

Provided that where no notice has been issued or no order has

been passed within the said period by the Settlement Commission,
the application shall be deemed to have been allowed to be
proceeded with.

(2) A copy of every order under sub-section (1), shall be sent to the
applicant and to the Principal Commissioner of Central Excise or
Commissioner of Central Excise having jurisdiction (hereinafter in
this Chapter referred to as the Commissioner of Central Excise).

(3) Where an application is allowed or deemed to have been

allowed to be proceeded with under sub-section (1), the Settlement
Commission shall, within seven days from the date of order under
sub-section (1), call for a report along with the relevant records
from the Commissioner of Central Excise, who shall furnish the
report within a period of thirty days of the receipt of
communication from the Settlement Commission:

Provided that where the Commissioner of Central Excise

fails to furnish the report within the said period of thirty days, the
Settlement Commission shall proceed further in the matter without
the report of the Commissioner.

(4) Where a report of the Commissioner of Central Excise called

for under sub-section (3) has been furnished within the period
specified in that sub-section, the Settlement Commission may,
after examination of such report, if it is of opinion that any further
enquiry or investigation in the matter is necessary, direct, for
reasons to be recorded in writing, the Commissioner
(Investigation) within fifteen days of the receipt of the report, to
make or cause to be made such further enquiry or investigation and
furnish a report within a period of ninety days of the receipt of the
communication from the Settlement Commission, on the matters
covered by the application and any other matter relating to the
case:

Provided that where the Commissioner (Investigation) fails to

furnish the report within the said period, the Settlement
Commission shall proceed to pass an order under sub-section (5)

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without such report.

(5) After examination of the records and the report, if any, of the
Commissioner of Central Excise received under sub-section (3),
and the report, if any, of the Commissioner (Investigation) under
sub-section (4), and after giving an opportunity to the applicant
and to the Commissioner of Central Excise to be heard, either in
person or through a representative duly authorised in this behalf,
and after examining such further evidence as may be placed before
it or obtained by it, the Settlement Commission may, in accordance
with the provisions of this Act, pass such order as it thinks fit on
the matters covered by the application and any other matter
relating to the case not covered by the application, but referred to
in the report of the Commissioner of Central Excise under sub-
section (3) and in the report of the Commissioner (Investigation)
under sub-section (4).

(6) The Settlement Commission may, at any time within three

months from the date of passing of the order under sub-section (5),
amend such order to rectify any error apparent on the face of
record, either suo motu, or when such error is brought to its notice
by the Commissioner of Central Excise or the applicant:

Provided that no amendment which has the effect of enhancing

the liability of the applicant shall be made under this sub-section,
unless the Settlement Commission has given notice of such
intention to the applicant and the Commissioner of Central Excise,
and has given them a reasonable opportunity of being heard.

(7) An order under sub-section (5) shall not be passed in respect of

an application filed after nine months from the last day of the
month in which the application was made:

Provided that the Settlement Commission may extend such period

for reasons to be recorded in writing, for a further period not
exceeding three months.

(8) If the Settlement Commission fails to pass an order within the

period referred to in sub-section (7), the settlement proceedings
shall abate, and the adjudicating authority before whom the
proceeding at the time of making the application was pending,
shall dispose of the case in accordance with the provisions of this
Act as if no application under section 48 had been made.

(9) Subject to the provisions of section 44, the Members of the

concerned Bench shall consider the materials brought on record
before the Settlement Commission before passing any order under

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sub-section (5) and, in relation to the passing of such order, the

provisions of section 47 shall apply.

(10) The order passed under sub-section (5) shall provide for the
terms of settlement including any demand by way of duty, penalty
or interest, the manner in which any sums due under the settlement
shall be paid and all other matters to make the settlement effective
and in case of rejection contain the reasons thereof and it shall also
provide that the settlement shall be void if it is subsequently found
by the Settlement Commission that it has been obtained by fraud
or misrepresentation of facts:

Provided that the amount of settlement ordered by the

Settlement Commission shall not be less than the duty liability
admitted by the applicant under section 48.

(11) Where any duty, interest, fine or penalty payable in pursuance

of an order under sub-section (5), is not paid by the assessee within
a period of thirty days of receipt of a copy of the order by him, the
amount which remains unpaid, shall be recovered along with
interest due thereon, as the sums due to the Central Government by
the Central Excise Officer having jurisdiction over the assessee in
accordance with the provisions of section 37.

(12) Where a settlement becomes void as provided under sub-

section (10), the proceedings with respect to the matters covered
by the settlement shall be deemed to have been revived from the
stage at which the application was allowed to be proceeded with
by the Settlement Commission and the Central Excise Officer
having jurisdiction may, notwithstanding anything contained in
any other provision of this Act, complete such proceedings at any
time before the expiry of two years from the date of the receipt of
communication that the settlement became void.

Power of
50. (1) Where, during the pendency of any proceeding before it, Settlement
the Settlement Commission is of the opinion that for the purpose Commission to
of protecting the interests of revenue it is necessary so to do, it order
may, by order, attach provisionally any property belonging to the provisional
applicant in such manner, as may be prescribed. attachment to
protect
revenue.
(2) Every provisional attachment made by the Settlement
Commission under sub-section (1) shall cease to have effect from
the date, the sums due to the Central Government for which such
attachment is made are discharged by the applicant and evidence to
that effect is submitted to the Settlement Commission.

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51. (1) In addition to the powers conferred on the Settlement Powers and
Commission under this Chapter, it shall have all the powers which procedure of
are vested in a Central Excise Officer under this Act or the rules Settlement
made thereunder. Commission.

(2) Where an application made under section 48 has been allowed

to be proceeded with under section 49, the Settlement Commission
shall, until an order is passed under sub-section (5) of section 49,
have, subject to the provisions of sub-section (4) of that section,
exclusive jurisdiction to exercise the powers and perform the
functions of any Central Excise Officer, under this Act in relation
to the case.

(3) In the absence of any express direction by the Settlement

Commission to the contrary, nothing in this Chapter shall affect
the operation of the provisions of this Act in so far as they relate to
any matters other than those before the Settlement Commission.

(4) The Settlement Commission shall, subject to the provisions of

this Chapter, have power to regulate its own procedure and the
procedure of Benches thereof in all matters arising out of the
exercise of its powers, or of the discharge of its functions,
including the places at which the Benches shall hold their sittings.

52. No person shall be entitled to inspect, or obtain copies of, any

report made by any Central Excise Officer to the Settlement
Commission but the Settlement Commission may, in its discretion Inspection,
furnish copies thereof to any such person on an application made etc., of reports.
to it in this behalf and on payment of the prescribed fee:

Provided that for the purpose of enabling any person whose

case is under consideration to rebut any evidence brought on
record against him in any such report, the Settlement Commission
shall, on an application made in this behalf, and on payment of
such fee, as may be prescribed, by such person, furnish him with a
certified copy of any such report or part thereof relevant for the
purpose.

53. (1) The Settlement Commission may, if it is satisfied that any

person who made the application for settlement under section 48 Power of
has cooperated with the Settlement Commission in the proceedings Settlement
before it and has made a full and true disclosure of his duty Commission to
liability, grant to such person, subject to such conditions as it may grant immunity
think fit to impose, immunity from prosecution for any offence from
under this Act and also either wholly or in part from the imposition prosecution
of any penalty and fine under this Act, with respect to the case and penalty.
covered by the settlement:

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Provided that no such immunity shall be granted by the

Settlement Commission in cases where the proceedings for the
prosecution for any such offence have been instituted before the
date of receipt of the application under section 48.

(2) An immunity granted to a person under sub-section (1) shall

stand withdrawn if such person fails to pay any sum specified in
the order of the settlement passed under sub-section (5) of section
49 within the time specified in such order, or fails to comply with
any other condition subject to which the immunity was granted and
thereupon the provisions of this Act shall apply as if such
immunity had not been granted.

(3) An immunity granted to a person under sub-section (1) may, at

any time, be withdrawn by the Settlement Commission, if it is
satisfied that such person had, in the course of the settlement
proceedings, concealed any particular material to the settlement or
had given false evidence, and thereupon such person may be tried
for the offence with respect to which the immunity was granted or
for any other offence of which he appears to have been guilty in
connection with the settlement, and shall also become liable to the
imposition of any penalty under this Act to which such person
would have been liable, had no such immunity been granted.

54. (1) The Settlement Commission may, if it is of opinion that any

person who made an application for settlement under section 48 Power of
has not cooperated with the Settlement Commission in the Settlement
proceedings before it, return the case to the Central Excise Officer Commission to
having jurisdiction who shall thereupon dispose of the case in return a case
accordance with the provisions of this Act as if no application back to Central
under section 48 had been made. Excise Officer.

(2) For the purposes of sub-section (1), the Central Excise Officer
shall be entitled to use all the materials and other information
produced by the assessee before the Settlement Commission, or the
results of the inquiry held or evidence recorded by the Settlement
Commission, in the course of the proceedings before it as if such
materials, information, inquiry and evidence had been produced
before such Central Excise Officer or held or recorded by him in
the course of the proceedings before him.

(3) For the purposes of the time limit under section 32 and for the
purposes of interest under section 26, in a case referred to in sub-
section (1), the period commencing on and from the date of the
application to the Settlement Commission under section 48 and
ending with the date of receipt by the Central Excise Officer of the
order of the Settlement Commission returning the case to the

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Central Excise Officer shall be excluded.

55. Every order of settlement passed under sub-section (5) of

section 49 shall be conclusive as to the matters stated therein and Order of
no matter covered by such order shall, save as otherwise provided settlement to
in this Chapter, be reopened in any proceeding under this Act or be conclusive.
under any other law for the time being in force.

56. Any sum specified in an order of settlement passed under sub-

section (5) of section 49 may, subject to such conditions if any, as
may be specified therein, be recovered, and any penalty for default Recovery of
in making payment of such sum may be imposed and recovered as sums due under
sums due to the Central Government in accordance with the order of
provisions under section 37 by the Central Excise Officer having settlement.
jurisdiction over the person who made the application for
settlement under section 48.

57. (1) Where, —

Bar on
(i) an order of settlement provides for the imposition of a penalty subsequent
on the person who made the application under section 48 for application for
settlement, on the ground of concealment of particulars of his settlement in
duty liability; or certain cases.

(ii) after the passing of an order of settlement in relation to a case,

such person is convicted of any offence under this Act in
relation to that case; or

(iii) the case of such person is returned to the Central Excise

Officer having jurisdiction by the Settlement Commission
under section 54,

then, he shall not be entitled to apply for settlement under section

48 in relation to any other matter.

Explanation.—For the purposes of clause (i), the

concealment of particulars of liability of duty relates to any such
concealment made from the Central Excise Officer.

Proceedings
58. Any proceedings under this Chapter before the Settlement before
Commission shall be deemed to be a judicial proceeding within the Settlement
meaning of sections 227 and 265, and for the purposes of section Commission to
45 of 2023. 231 of the Bharatiya Nagarik Nyaya Sanhita, 2023. be judicial
proceedings.
CHAPTER IX

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APPEALS

59. (1) Any person aggrieved by any decision or order passed

under this Act by a Central Excise Officer, lower in rank than a
Commissioner of Central Excise, may appeal to the Commissioner Appeals to
of Central Excise (Appeals) [hereafter in this Chapter referred to as Commissioner
the Commissioner (Appeals)] within a period of sixty days from (Appeals).
the date of the communication to him of such decision or order:

Provided that the Commissioner (Appeals) may, if he is

satisfied that the appellant was prevented by sufficient cause from
presenting the appeal within the said period of sixty days, allow it
to be presented within a further period of thirty days.

(2) The Commissioner (Appeals) may, if sufficient cause is shown,

at any stage of hearing of an appeal, grant time to the parties or
any of them and adjourn the hearing of the appeal for reasons to be
recorded in writing:

Provided that no such adjournment shall be granted more

than three times to a party during hearing of the appeal.

(3) Every appeal under this section shall be in such form and shall
be verified in such manner, as may be prescribed.

60. (1) The Commissioner (Appeals) shall give an opportunity to Procedure in

the appellant to be heard, if he so desires. appeal.

(2) The Commissioner (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 Commissioner (Appeals) is satisfied
that the omission of that ground from the grounds of appeal was
not willful or unreasonable.

(3) The Commissioner (Appeals) shall, after making such further

inquiry as may be necessary, pass such order, as he thinks just and
proper, confirming, modifying or annulling the decision or order
appealed against:

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 Commissioner (Appeals) is

of the opinion that any duty of excise has not been levied or paid,
or has been short-levied or short-paid, or erroneously refunded, or
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Central Excise Duty Credit has been wrongly availed or utilized,

no order requiring the appellant to pay any duty not levied or paid,
short-levied or short-paid, or erroneously refunded, or Central
Excise Duty Credit wrongly availed or utilized, shall be passed
unless the appellant is given notice within the time limit specified
in section 32 to show cause against the proposed order.

(4) The order of the Commissioner (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) The Commissioner (Appeals) shall, where it is possible to do

so, hear and decide every appeal within a period of six months
from the date on which it is filed.

(6) On the disposal of the appeal, the Commissioner (Appeals)

shall communicate the order passed by him to the appellant, the
adjudicating authority, the Principal Chief Commissioner of
Central Excise or Chief Commissioner of Central Excise and the
Principal Commissioner of Central Excise or Commissioner of
Central Excise.

61. (1) Any person aggrieved by any of the following orders may
appeal to the Customs, Excise and Service Tax Appellate Tribunal
against such order—
(a) a decision or order passed by the Principal Commissioner of Appeals to
Central Excise or Commissioner of Central Excise as an Appellate
adjudicating authority; Tribunal.

(b) an order passed by the Commissioner (Appeals) under section

60:

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,—
(i) 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;
(ii) 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;

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(iii) 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), 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 two lakh rupees.

(2) The Board may, by order, constitute such Committees, as may

be necessary, for the purposes of this Act.

(3) Every Committee constituted under sub-section (2) shall

consist of––
(a) two Principal Chief Commissioners of Central Excise or two
Chief Commissioners of Central Excise or a Principal Chief
Commissioner of Central Excise and a Chief Commissioner of
Central Excise;
(b) two Principal Commissioners of Central Excise or two
Commissioners of Central Excise or a Principal Commissioner of
Central Excise and a Commissioner of Central Excise,
as the case may be.

(4) The Committee of Principal Commissioners of Central Excise

or Commissioners of Central Excise may, if it is of opinion that an
order passed by the Commissioner (Appeals) under section 60, is
not legal or proper, direct any Central Excise Officer authorised by
it in this behalf (hereafter in this Chapter referred to as the
authorised officer) to appeal on its behalf to the Appellate Tribunal
against such order:

Provided that where the Committee of Principal

Commissioners of Central Excise or Commissioners of Central
Excise differs in its opinion regarding the appeal against the order
of the Commissioner (Appeals), it shall state the point or points on
which it differs and make a reference to the jurisdictional Principal
Chief Commissioner of Central Excise or Chief Commissioner of
Central Excise who shall, after considering the facts of the order, if
is of opinion that the order passed by the Commissioner (Appeals)
is not legal or proper, direct any Central Excise Officer to appeal
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to the Appellate Tribunal against such order.

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

―jurisdictional Principal Chief Commissioner of Central Excise or
Chief Commissioner of Central Excise‖ means the Principal Chief
Commissioner of Central Excise or Chief Commissioner of Central
Excise having jurisdiction over the adjudicating authority in the
matter.

(5) Every appeal under this section shall be filed within a period of
three months from the date on which the order sought to be
appealed against is communicated to the Principal Commissioner
of Central Excise or Commissioner of Central Excise or to the
other party preferring the appeal.

(6) 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, within a period of forty-five days of the
receipt of the notice, file a memorandum of cross-objections
verified in such manner, as may be prescribed, 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 (5).

(7) 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 (5) or sub-section (6), if it
is satisfied that there was sufficient cause for not presenting it
within that period.

(8) An appeal to the Appellate Tribunal shall be in such form and

shall be verified in such manner, as may be prescribed, and shall,
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 Central Excise Officer in the case to which the
appeal relates is five lakh rupees or less, one thousand rupees;

(b) where the amount of duty and interest demanded and penalty
levied by any Central Excise Officer in the case to which the
appeal relates is more than five lakh rupees but not exceeding
fifty lakh rupees, five thousand rupees;

(c) where the amount of duty and interest demanded and penalty
levied by any Central Excise Officer in the case to which the
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appeal relates is more than fifty lakh rupees, ten thousand

rupees:

Provided that no such fee shall be payable in the case of an

appeal referred to in sub-section (4) or a memorandum of cross-
objections referred to in sub-section (6).

(9) Every application made before the Appellate Tribunal,—

(a) in an appeal for rectification of mistake or for any
other purpose; or
(b) for restoration of an appeal or an application,
shall be accompanied by a fee of five hundred rupees:

Provided that no such fee shall be payable in the case of an

application filed by or on behalf of the Principal Commissioner of
Central Excise or Commissioner of Central Excise under this sub-
section.

62. (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 Orders of
passed such decision or order with such directions, as the Appellate
Appellate Tribunal may think fit, for a fresh adjudication or Tribunal.
decision, as the case may be, after taking additional evidence, if
necessary.

(2) The Appellate Tribunal may, if sufficient cause is shown, at

any stage of hearing of an appeal, grant time to the parties or any
of them and adjourn the hearing of the appeal for reasons to be
recorded in writing:

Provided that no such adjournment shall be granted more

than three times to a party during hearing of the appeal.

(3) The Appellate Tribunal may, at any time within six months
from the date of the order, with a view to rectify any mistake
apparent on the face of 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 Principal Commissioner of Central
Excise or the Commissioner 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

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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.

(4) The Appellate Tribunal shall, where it is possible to do so, hear

and decide every appeal within a period of three years from the
date on which such appeal is filed.

(5) The Appellate Tribunal shall send a copy of every order passed
under this section to the Principal Commissioner of Central Excise
or Commissioner of Central Excise and to the other party to the
appeal.

(6) Save as provided in the section 68 or section 70, orders passed

by the Appellate Tribunal on appeal shall be final.

63. (1) The provisions of sub-sections (1), (2), (5) and (6) of
section 129C of the Customs Act, 1962, shall apply to the Procedure of
Appellate Tribunal in the discharge of its functions under this Act Appellate
52 of 1962. as they apply to it in the discharge of its functions under the said Tribunal.
Act.

(2) The President of the Appellate Tribunal, or any other Member

of the Appellate Tribunal authorised in this behalf by the President
of the Appellate Tribunal 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 fifty lakh rupees.

64. (1) The Committee of Principal Chief Commissioners of Powers of

Central Excise or Chief Commissioners of Central Excise may, of Committee of
its own motion, call for and examine the record of any proceeding Principal Chief
in which a Principal Commissioner of Central Excise or Commissioners
Commissioner of Central Excise, as an adjudicating authority, has of Central
passed any decision or order under this Act for the purpose of Excise or Chief
satisfying itself as to the legality or propriety of any such decision Commissioners
or order and may, by order, direct such Principal Commissioner of of Central
Central Excise or Commissioner of Central Excise, or any other Excise or
Commissioner, to apply to the Appellate Tribunal for the Principal
determination of such points arising out of the decision or order as Commissioners

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may be specified in its order: of Central

Excise or
Provided that where the Committee of Principal Chief Commissioners
Commissioners of Central Excise or Chief Commissioners of of Central
Central Excise differs in its opinion as to the legality or propriety Excise to pass
of the decision or order of the Principal Commissioner of Central certain orders.
Excise or Commissioner of Central Excise, it shall state the point
or points on which it differs and make a reference to the Board,
which, after considering the facts of the decision or order, if is of
the opinion that the decision or order passed by the Principal
Commissioner of Central Excise or Commissioner of Central
Excise is not legal or proper, may, by order, direct such Principal
Commissioner of Central Excise or Commissioner of Central
Excise or any other Commissioner to apply to the Appellate
Tribunal for the determination of such points arising out of the
decision or order, as may be specified in its order.

(2) The Principal Commissioner of Central Excise or

Commissioner 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 or any Central Excise Officer
subordinate to him, to apply to the Commissioner (Appeals) for the
determination of such points arising out of the decision or order as
may be specified by the Principal Commissioner of Central Excise
or Commissioner of Central Excise in his order.

(3) Every order under sub-section (1) or sub-section (2), as the

case may be, shall be made within a period of three months from
the date of communication of the decision or order of the
adjudicating authority:

Provided that the Board may, on sufficient cause being

shown, extend the said period by another thirty days.

(4) Where in pursuance of an order under sub-section (1) or sub-

section (2), the adjudicating authority or the authorised officer
makes an application to the Appellate Tribunal or the
Commissioner (Appeals) within a period of one month 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 or the Commissioner (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

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of sub-section (6) of section 61, shall, so far as may be, apply to

such application.

65. (1) The Central Government may, on an application made to it

by any person aggrieved by any order passed under section 60, Revision by
where the order is of the nature referred to in the first proviso to Central
sub-section (1) of section 61, annul or modify such order: Government.

Provided that the Central Government may in its discretion,

refuse to admit an application in respect of an order, where the
amount of duty or fine or penalty, determined by such order does
not exceed five thousand rupees.

(2) The Principal Commissioner of Central Excise or

Commissioner of Central Excise may, if he is of opinion that an
order passed by the Commissioner (Appeals) under section 60 is
not legal or proper, direct the jurisdictional Central Excise Officer
to make an application on his behalf to the Central Government for
revision of such order.

(3) An application under sub-section (1) shall be made within a

period of 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 said period of three months,
allow it to be presented within a further period of three months.

(4) An application under sub-section (1) shall be in such form and

shall be verified in such manner, as may be prescribed, and shall
be accompanied by a fee of—
(a) two hundred rupees, where the amount of duty and interest
demanded, fine or penalty levied by any Central Excise Officer
in the case to which the application relates is one lakh rupees or
less;
(b) one thousand rupees, where the amount of duty and interest
demanded, fine or penalty levied by any Central Excise Officer
in the case to which the application relates is more than one lakh
rupees:

Provided that no such fee shall be payable in the case of an

application referred to in sub-section (2).

(5) The Central Government may, of its own motion, annul or

modify any order referred to in sub-section (1).

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(6) 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 60 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.

(7) Where the Central Government is of opinion that any central

excise duty 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 32.

66. The Appellate Tribunal or the Commissioner (Appeals), as the

case may be, shall not entertain any appeal—
(i) under sub-section (1) of section 59 unless the appellant has
deposited seven and a half per cent. of the duty, in case where
duty or duty and penalty are in dispute, or penalty, where
such penalty is in dispute, in pursuance of a decision or an
order passed by an officer of Central Excise lower in rank
than the Commissioner of Central Excise; Deposit of
certain
(ii) against the decision or order referred to in clause (a) of sub-
percentage of
section (1) of section 61, unless the appellant has deposited
duty demanded
seven and a half per cent. of the duty, in case where duty or
or penalty
duty and penalty are in dispute, or penalty, where such
imposed before
penalty is in dispute, in pursuance of the decision or order
filing appeal.
appealed against;
(iii) against the decision or order referred to in clause (b) of sub-
section (1) of section 61, unless the appellant has deposited
ten per cent. of the duty, in case where duty or duty and
penalty are in dispute, or penalty, where such penalty is in
dispute, in pursuance of the decision or order appealed
against:

Provided that the amount required to be deposited under this

section shall not exceed ten crore rupees.

Explanation 1.—For the purposes of this section ―duty

demanded‖ shall include—
(i) amount determined under section 35;

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(ii) amount of Central Excise Duty Credit wrongly availed or

utilised;
(iii) any other amount payable under the Act or the rules made
therein.

Explanation 2.–– For the purposes of this section, amount to

be deposited, in a case where duty or duty and penalty are in
dispute, may be deposited in cash or by utilisation of Central
Excise Duty Credit, and in case where such penalty is in dispute
shall be deposited only in cash.

67. Where an amount deposited by the appellant under section 66

is required to be refunded consequent upon the order of the Interest on
appellate authority, there shall be paid to the appellant interest at delayed refund
such rate, not exceeding six per cent. per annum as the Central of amount
Government may, by notification, specify, on such amount from deposited
the date of payment of the amount till, the date of refund of such under section
amount: 66.

Provided that no interest shall be payable on the amount

deposited under section 66 if the same is deposited by utilisation of
Central Excise Duty Credit.

68. (1) An appeal shall lie to the High Court from every order
passed in appeal by the Appellate Tribunal (not being an order
relating, among other things, to the determination of any question Appeal to High
having a relation to the rate of duty of excise or to the value of Court.
goods for purposes of assessment), if the High Court is satisfied
that the case involves a substantial question of law.

(2) The Principal Commissioner of Central Excise or

Commissioner of Central Excise, or the other party aggrieved by
any order passed by the Appellate Tribunal, may file an appeal to
the High Court and such appeal under this sub-section shall be––
(a) filed within a period of one hundred and eighty days from
the date on which the order appealed against is received by
the Principal Commissioner of Central Excise or
Commissioner of Central Excise or the other party;
(b) accompanied by a fee of two hundred rupees where such
appeal is filed by the other party;
(c) in the form of a memorandum of appeal precisely stating
therein the substantial question of law involved.

(3) The High Court may admit an appeal after the expiry of the
period of one hundred and eighty days referred to in clause (a) of
sub-section (2), if it is satisfied that there was sufficient cause for
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not filing the same within that period.

(4) Where the High Court is satisfied that a substantial question of

law is involved in any case, it shall formulate that question.

(5) The appeal shall be heard only on the question formulated,

under sub-section (4) and the respondents shall, at the hearing of
the appeal, be allowed to argue that the case does not involve
such question:

Provided that nothing in this sub-section shall be deemed to

take away or abridge the power of the Court to hear, for reasons to
be recorded, the appeal on any other substantial question of law
not formulated by it, if it is satisfied that the case involves such
question.

(6) The High Court shall decide the question of law so formulated
and deliver such judgment thereon containing the grounds on
which such decision is founded and may award such cost as it
deems fit.

(7) The High Court may determine any issue which ––

(a) has not been determined by the Appellate Tribunal;
or
(b) has been wrongly determined by the Appellate
Tribunal, by reason of a decision on such question of
law as is referred to in sub-section (1).

(8) When an appeal has been filed before the High Court, 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.

(9) Where there is no majority as referred to in sub-section (8), 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.

(10) Save as otherwise provided in this Act, the provisions of the

Code of Civil Procedure, 1908, relating to appeals to the High
5 of 1908. Court shall, as far as may be, apply in the case of appeals under
this section.

69. (1) Where the High Court delivers a judgment in an appeal Giving effect

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filed before it under section 68, effect shall be given to the order to order of
passed on the appeal by the concerned Central Excise Officer on High Court and
the basis of a certified copy of the judgment. costs of appeal
to High Court
or Supreme
Court.
(2) The costs of an appeal to the High Court or an appeal to the
Supreme Court, as the case may be, which shall not include the fee
for making the reference, shall be in the discretion of the Court.

70. (1) An appeal shall lie to the Supreme Court from—

(a) any judgment of the High Court delivered in an appeal
made under section 68 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 Appeal to
judgment, the High Court certifies to be a fit one for Supreme
appeal to the Supreme Court; or Court.
(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.

(2) For the purposes of this Chapter, the determination of any

question having a relation to the rate of duty shall include the
determination of taxability or excisability of goods for the purpose
of assessment.

71. (1) The provisions of the Code of Civil Procedure, 1908 Procedure in
relating to appeals to the Supreme Court shall, so far as may be, appeals before
5 of 1908.
apply in the case of appeals under section 70 as they apply in the Supreme
case of appeals from decrees of a High Court: Court.

Provided that nothing in this sub-section shall be deemed to

affect the provisions of section 72.

(2) The Supreme Court may impose costs of the appeal.

(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 69 in the case of a judgment of
the High Court.

72. Notwithstanding that an appeal has been preferred to the Sums due to be
Supreme Court, sums due to the Government as a result of an paid
order passed under sub-section (1) of section 62 shall be payable in notwithstandin
accordance with the order so passed. g reference,
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etc.
73. In computing the period of limitation provided 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 Exclusion of
making the application was not furnished with a copy of the order time taken for
when the notice of the order was served upon him, the time copy.
requisite for obtaining a copy of such order shall be excluded.

74. (1) Any person who is entitled or required to appear before the
Appellate Tribunal or a Central Excise Officer in connection with
any proceedings under this Act, otherwise than when required Appearance by
under this Act to appear personally for examination on oath or authorised
affirmation, may, subject to the other provisions of this section, representative.
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
may be prescribed.

(3) Notwithstanding anything contained in this section, no person

who was a member of the Indian Revenue Service (Customs and
Indirect Taxes) 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
52 of 1962.
(b) who is convicted of an offence connected with any
45 of 1968. proceeding under this Act or the Customs Act, 1962 or the
Gold (Control) Act, 1968 or the Central Excise Act, 1944
1 of 1944.
or the Central Goods and Services Tax Act, 2017;
12 of 2017.
(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 Principal Commissioner of Central Excise or
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52 of 1962. Commissioner of Central Excise or the competent authority under

the Customs Act, 1962 or the Gold (Control) Act, 1968 or the
45 of 1968.
Central Excise Act, 1944 or the Central Goods and Services Tax
1 of 1944. Act, 2017, 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
12 of 2017. 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 under any law for the time being in
force, an order passed against such legal practitioner 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 an
authority under any law for the time being in force, such
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 a period of 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.

75. (1) The Board may, from time to time, issue orders or
instructions or directions fixing such monetary limits, as it may Appeal not to
deem fit, for the purposes of regulating the filing of appeal, be filed in
application, revision or reference by the Central Excise Officer certain cases.
against any decision or order passed under the provisions of this
Act:

Provided that the Board may, in its orders or instructions or

directions, specify such category or class of decisions or orders
against which the Central Excise Officer shall prefer appeal,
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application, revision or reference, notwithstanding the monetary

limit fixed under this sub-section.

(2) Where a Central Excise Officer has not filed any appeal,
application, revision or reference against any decision or order
passed in respect of an assessee in any case for a particular period
considering the monetary limit referred to in sub-section (1), it
shall not preclude any Central Excise Officer from filing appeal,
application, revision or reference on the same or similar issue
against the same assessee for a different period, or against any
other assessee for the same or different period, where the monetary
limit for such period exceeds the monetary limit referred to in the
said sub-section.

(3) Notwithstanding the fact that no appeal, application, revision or

reference has been filed by the Central Excise Officer pursuant to
the orders or instructions or directions issued under sub-section
(1), no person, being a party in appeal, application, revision or
reference shall contend that the Central Excise Officer has
acquiesced in the decision on the disputed issue by not filing
appeal, application, revision or reference.

(4) The Commissioner (Appeals) or the Appellate Tribunal or the

court hearing such appeal, application, revision or reference shall
have regard to the circumstances under which appeal, application,
revision or reference was not filed by the Central Excise Officer in
pursuance of the orders or instructions or directions issued under
sub-section (1).

CHAPTER X
SEARCH, SEIZURE, ARREST AND CONFISCATION

76. (1) Where the Joint Commissioner of Central Excise or

Additional Commissioner of Central Excise has reasons to believe
that an assessee has suppressed any transaction related to the
production or manufacture of excisable goods or has availed Power of
Central Excise Duty Credit in excess of his entitlement under this inspection,
Act, or has indulged in contravention of any provisions of this Act search and
or the rules made thereunder to evade payment of duty under this seizure.
Act, he may authorise, in writing, any other Central Excise Officer
to inspect any factory, warehouse or any other place.

(2) Where the Joint Commissioner of Central Excise or Additional

Commissioner of Central Excise, either pursuant to an inspection
carried out under sub-section (1) or otherwise, has reasons to
believe that any goods liable to confiscation or any documents or
books or things, which in his opinion shall be useful for or relevant
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to any proceedings under this Act, are secreted in any place, he

may authorise in writing any other Central Excise Officer to search
and seize, or may himself search and seize such goods, documents
or books or things:

Provided that where it is not practicable to seize any such goods,

the Central Excise Officer, or any officer authorised by him, may
serve on the owner or the custodian 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:

Provided further that the documents or books or things so seized

shall be retained by such officer only for so long as may be
necessary for their examination and for any inquiry or proceedings
under this Act.

(3) The documents, books or things referred to in sub-section (2)

or any other documents, books or things produced by the assessee
or any other person, which have not been relied upon for the issue
of notice under this Act or the rules made thereunder, shall be
returned to such person within a period not exceeding thirty days
of the issue of the said notice.

(4) The officer authorised under sub-section (2) shall have the
power to seal or break open the door of any premises or to break
open any almirah, electronic devices, box, receptacle in which any
goods, accounts, registers or documents of the person are
suspected to be concealed, where access to such premises, almirah,
electronic devices, box or receptacle is denied.

(5) The person from whose custody any documents are seized
under sub-section (2) shall be entitled to make copies thereof or
take extracts therefrom in the presence of an authorised officer at
such place and time as such officer may indicate in this behalf
except where making such copies or taking such extracts may, in
the opinion of the officer, prejudicially affect the investigation.

(6) The goods so seized under sub-section (2) shall be released, on

a provisional basis, upon execution of a bond and furnishing of a
security, in such manner and of such quantum, respectively, as
may be prescribed or on payment of applicable duty, interest and
penalty payable, as the case may be.

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

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Provided that the period of six months may, on sufficient cause

being shown, be extended by the Principal Commissioner of
Central Excise or Commissioner of Central Excise for a further
period not exceeding six months.

(8) 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, specify
the goods or class of goods which shall, as soon as may be after its
seizure under sub-section (2), be disposed of by the Central Excise
Officer in such manner as may prescribed.

(9) Where any goods, being goods specified under sub-section (8),
have been seized by a Central Excise Officer, or any officer
authorised by him under sub-section (2), he shall prepare an
inventory of such goods in such manner as may be prescribed.

(10) Any Central Excise Officer, may inspect or search any

conveyance carrying excisable goods in respect of which he has
reason to believe that the goods are being carried with the intention
of evading duty.

(11) The provisions of the Bharatiya Nagarik Suraksha Sanhita,

2023, relating to search and seizure, shall, so far as may be, apply
to search and seizure under this section subject to the modification
46 of 2023 that sub-section (5) of section 185 of the Sanhita shall have effect
as if for the word "Magistrate", wherever it occurs, the words
"Principal Commissioner of Central Excise or Commissioner of
Central Excise" were substituted.

(12) Where the Central Excise officer has reasons to believe that
any person has evaded or is attempting to evade the payment of
any duty, he may, for reasons to be recorded in writing, seize the
accounts, registers or documents of such person produced before
him and shall grant a receipt for the same, and shall retain the same
for so long as may be necessary in connection with any
proceedings under this Act or the rules made thereunder for
prosecution.

77. Any Central Excise Officer not below the rank of Inspector of
Central Excise may, with the prior approval of the Principal
Commissioner of Central Excise or Commissioner of Central Power to
Excise, arrest any person whom he has reason to believe to be arrest.
liable to punishment under this Act or the rules made thereunder.

78. (1) Any Central Excise Officer duly empowered by the Central Power to
Government in this behalf, shall have power to summon any summon
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person whose attendance he considers necessary, either to give persons to give

evidence or to produce a document or any other thing, in any evidence and
inquiry which such officer is making for any of the purposes of produce
this Act. documents in
inquiries.
Explanation.–– For the purposes of this sub-section, 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) Every person so summoned shall be bound to attend, either in

person or by an authorised agent, as such officer may direct; and
every person 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, 1908 shall be applicable to
5 of 1908. requisitions for attendance under this section.

(3) Every inquiry under this section shall be deemed to be a

"judicial proceeding" within the meaning of sections 227 and 265
45 of 2023. of the Bharatiya Nagarik Nyaya Sanhita, 2023.

79. All officers of police and customs and all officers of the Officers
Government engaged in the collection of land revenue including required to
village officers are hereby empowered and required to assist the assist Central
Central Excise Officers in the execution of this Act. Excise
Officers.
80. All searches made under this Act or any rules made thereunder
and all arrests made under this Act shall be carried out in Searches and
accordance with the provisions of the Bharatiya Nagarik Suraksha arrests how to
Sanhita, 2023, relating respectively to searches and arrests made be made.
46 of 2023
under that Sanhita.

81. Every person arrested under this Act shall be forwarded

without delay to the nearest Central Excise Officer empowered to Disposal of
send persons so arrested to a Magistrate, or, if there is no such persons
Central Excise Officer within a reasonable distance, to the officer- arrested.
in-charge of the nearest police station.

82. The officer-in-charge of a police station to whom any person is Procedure to be

forwarded under section 81 shall, where the offence is non- followed by
cognizable, either admit him to bail to appear before the officer-in-
Magistrate having jurisdiction, or in default of bail forward him in charge of
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custody to such Magistrate. police station.

83. (1) When any person is forwarded under section 81 to a

Central Excise Officer empowered to send persons so arrested to a Inquiry how to
Magistrate, the Central Excise Officer shall proceed to inquire into be made by
the charge against him. Central Excise
Officers
(2) The Central Excise Officer may, for the purposes of sub- against arrested
section (1), exercise the same powers and shall be subject to the persons
same provisions as the officer-in-charge of a police station may forwarded to
46 of 2023 exercise and is subject to under the Bharatiya Nagarik Suraksha them under
Sanhita, 2023, when investigating a cognizable case: section 81.

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, where the offence is non-
cognizable, 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 in respect of offence which is non-
cognizable, 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.

84. (1) Any person, being––

(a) an assessee; or
(b) a local authority or other public body or association; or
(c) any authority of the State Government responsible for the
collection of value added tax or sales tax or State tax or
Obligation to
integrated tax, or any authority of Union territory
furnish
responsible for the collection of Union territory tax or
information
integrated tax; or
return.
(d) an income tax authority appointed under the provisions of
the Income Tax Act, 1961; or
43 of 1961. (e) a banking company within the meaning of clause (a) of
section 45A of the Reserve Bank of India Act, 1934; or
(f) a State Electricity Board or an electricity distribution or

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2 of 1934. transmission licensee under the Electricity Act, 2003, or

any other entity entrusted with such functions by the
Central Government or the State Government, as the
36 of 2003. case may be; or
(g) the Registrar or Sub-Registrar appointed under section 6
of the Registration Act, 1908; or
(h) a Registrar within the meaning of the Companies Act,
16 of 1908. 2013; or
18 of 2013. (i) the registering authority empowered to register motor
vehicles under Chapter IV of the Motor Vehicles Act,
1988; or
(j) the Collector referred to in clause (c) of section 3 of the
59 of 1988. Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013;
or
30 of 2013.
(k) the recognised stock exchange referred to in clause (f) of
section 2 of the Securities Contracts (Regulation) Act,
1956; or

42 of 1956. (l) a depository referred to in clause (e) of sub-section (1) of

section 2 of the Depositories Act, 1996; or
(m) an officer of the Reserve Bank of India, constituted
22 of 1996. under section 3 of the Reserve Bank of India Act, 1934;
or

2 of 1934. (n) the Goods and Services Tax Network, a company

registered under the Companies Act, 2013,
and is responsible for maintaining record of registration, or
18 of 2013. statement of accounts, or any periodic return, or document
containing details of payment of tax and other details, or
transaction of goods or services, or transactions related to a bank
account, or consumption of electricity, or transaction of purchase,
sale or exchange of goods or property or right or interest in a
property, under any law for the time being in force, shall furnish an
information return of the same in respect of such periods, within
such time, form (including electronic form) and manner, to such
authority or agency, as may be prescribed.

(2) Where the authority prescribed under sub-section (1) considers

that the information submitted in the information return is
defective, he may intimate the defect to the person who has
furnished such information return and give him an opportunity of
rectifying the defect within a period of thirty days from the date of
such intimation or within such further period which, on an
application made in this behalf, such authority may allow and if

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the defect is not rectified within the said period of thirty days or, as
the case may be, the further period so allowed, then,
notwithstanding anything contained in any other provision of this
Act, such information return shall be treated as not submitted and
the provisions of this Act shall apply.

(3) Where a person who is required to furnish information return

has not furnished the same within the time specified in sub-section
(1) or sub-section (2), the authority prescribed under sub-section
(1) may serve upon him a notice requiring furnishing of such
information return within a period not exceeding ninety days from
the date of service of the notice and such person shall furnish the
information return.

85. If a person who is required to furnish an information return

under section 84 fails to do so within the period specified in the Penalty for
notice issued under sub-section (3) thereof, the authority failure to
prescribed under sub-section (1) of the said section may direct that furnish
such person shall pay, by way of penalty, a sum of one hundred information
rupees for each day of the period during which the failure to return.
furnish such return continues.

86. (1) Where under this Act or by the rules made thereunder, any
duty of excise not levied or paid, or short-levied or short-paid, or
erroneously refunded is to be determined or anything is liable to Power and
confiscation or any person is liable to a penalty, such procedures of
determination of duty or confiscation or penalty, as the case may adjudication
be, may be adjudged up to such limit and by such officers, as the
Board may specify in this behalf.

(2) The adjudicating authority shall, in any proceeding under this

Chapter or any other provision of this Act, give an opportunity of
being heard to a party in a proceeding.

(3) The adjudicating authority may, if sufficient cause is shown, at

any stage of the proceeding referred to in sub-section (2), grant
time to the parties or any of them and adjourn the hearing for
reasons to be recorded in writing:

Provided that no such adjournment shall be granted more than

three times to a party during the proceeding.

87. Without prejudice to the provisions contained in the Bharatiya Confiscation or

Nagarik Suraksha Sanhita, 2023, no confiscation made or penalty penalty not to
46 of 2023. imposed under the provisions of this Act or of any rule made interfere with
thereunder shall prevent the infliction of any other punishment to other
which the person affected thereby is liable under the provisions of punishments.

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this Act or under any other law.

CHAPTER XI
OFFENCES AND PENALTIES

88. Confiscation and penalty for certain offences:-

(1) Where an assessee, registered dealer or importer who issues an
invoice on which Central Excise Duty Credit can be taken ––
(a) removes any excisable goods in contravention of any of the
provisions of this Act or the rules made thereunder; or
(b) does not account for any excisable goods produced or
manufactured or stored by him; or
(c) engages in the manufacture, production or storage of any
excisable goods without having applied for the registration
required under section 16; or
(d) removes excisable goods without issue of any invoice or
issues incorrect or false invoice with regard to such
removal; or
(e) issues an invoice without removal of goods specified therein
in contravention of the provisions of this Act or the rules
made thereunder; or
Penalty for
(f) issues any other documenton the basis of which the user of
certain
said invoice or document is likely to take or has taken any
offences.
ineligible benefit under the Act or the rules made
thereunder,
(g) avails or utilises Central Excise Duty Credit without actual
receipt of goods either partially or fully, in contravention
of the provisions of this Act or the rules made thereunder;
or
(h) contravenes any of the provisions of this Act, or the rules
made thereunder, or a notification issued under this Act or
the rules made thereunder, with intent to evade payment of
duty,
then, all such goods or conveyances shall be liable to
confiscation and such producer or manufacturer or
registered person of the warehouse shall be liable to a
penalty not exceeding the duty on the excisable goods, or
Central Excise Duty Credit availed of or passed on.

(2) Where any person uses any conveyance as a means of

transport for carriage of goods in contravention of the provisions
of this Act or the rules made thereunder unless the owner of the
conveyance 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, the penalty under sub-section (1)
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shall apply.

(3) Any person who retains the benefit of a transaction covered

under clause (d) or clause (e) or clause (f) or clause (g) of sub-
section (1) or under sub-section (2) and at whose instance such
transaction is conducted, shall be liable to a penalty of an amount
not exceeding the duty evaded or Central Excise Duty Credit
availed of or passed on.

(4) Any person who-

(a) aids or abets any of the offences specified in clauses (a)
to (h) of sub-section (1):
(b) acquires possession of, or in any way concerns himself
in transporting, removing, depositing, keeping,
concealing, supplying, or purchasing or in any other
manner deals with any goods which he knows or has
reasons to believe are liable to confiscation under this
Act or the rules made thereunder;
(c) fails to appear before the officer of Central Excise,
when issued with a summon for appearance to give
evidence or produce a document in an inquiry;
shall be liable to a penalty which may extend to fifty thousand
rupees.

(5) Whenever confiscation of any goods or conveyance is

authorised by this Act, the officer adjudging it shall give to the
owner of the goods an option to pay in lieu of confiscation, such
fine as the said officer thinks fit:

Provided that such fine leviable shall not exceed the market value
of the goods confiscated, less the duty chargeable thereon:

Provided further that the aggregate of such fine and penalty

leviable shall not be less than the penalty equal to hundred per
cent. of the duty payable on such goods.

Provided also that where any such conveyance is used for the
carriage of the goods or passengers for hire, the owner of the
conveyance shall be given an option to pay in lieu of the
confiscation of the conveyance a fine equal to the duty payable on
the goods being transported thereon.

(6) No order for confiscation of goods or conveyance or for

imposition of penalty shall be issued without giving the person an
opportunity of being heard.

(7) Where any goods or conveyance are confiscated under this Act,
the title of such goods or conveyance shall thereupon vest in the

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Central Government.

(8) Where any excisable goods liable to confiscation are sold by a

person having knowledge or reason to believe that the goods are,
liable to confiscation, the sale-proceeds thereof shall be liable to
confiscation.

(9) The Central Excise officer adjudging confiscation shall take

and hold possession of the things confiscated and every officer of
Police, on the requisition of such Central Excise officer, shall
assist him in taking and holding such possession.

(10) The Central Excise officer may, after satisfying himself that
the confiscated goods or conveyance are not required in any other
proceedings under this Act and after giving reasonable time not
exceeding three months to pay fine in lieu of confiscation, dispose
of such goods or conveyance and deposit the sale proceeds thereof
with the Central Government as prescribed.

Explanation - Where the notice under the same proceedings is

issued to the main person liable to pay duty and some other
persons, and such proceedings against the main person have been
concluded under section 33, the proceedings against all the persons
liable to pay penalty under this section and section 89 are deemed
to be concluded.

89. Any person, who contravenes any of the provisions of this Act
or any rules made thereunder, for which no other penalty is
provided for in this Act, shall be punishable with a penalty which General
may extend to five thousand rupees and with confiscation of the penalty.
goods in respect of which the offence is committed.

90. (1) Whoever commits, or causes to commit and retain the

benefits arising out of, any of the following offences, namely:
(a) removes any excisable goods or in any way concerns
himself with such removal, in contravention of any of the
provisions of this Act or the rules made thereunder with the
intention to evade duty;
Punishment for
(b) issues any invoice without removal of goods in certain
violation of the provisions of this Act, or the rules made offences.
thereunder leading to wrongful availment or utilisation of
Central Excise Duty Credit or refund of duty;

(c) avails Central Excise Duty Credit using the invoice

referred to in clause (b) or fraudulently avails Central
Excise Duty Credit without any invoice;

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(d) collects any amount as duty but fails to pay the same to
the Central Government beyond a period of three months
from the date on which such payment becomes due;
(e) evades the payment of any duty payable under this Act
or fraudulently obtains refund and where such offence is
not covered under clauses (a) to (d);

(f) falsifies or substitutes financial records or produces fake

accounts or documents or furnishes any false information
with an intention to evade payment of duty due under this
Act;

(g) acquires possession of, or in any way concerns himself

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;

(h) attempts to commit, or abets the commission of, any of

the offences mentioned in this section
shall be punishable,—
(i) in cases where the amount of duty evaded or the
amount of Central Excise Duty Credit wrongly
availed or utilised or the amount of refund wrongly
taken exceeds five hundred lakh rupees, with
imprisonment for a term which may extend to five
years and with fine;

(ii) in cases where the amount of duty evaded or the

amount of Central Excise Duty Credit wrongly
availed or utilised or the amount of refund wrongly
taken exceeds two hundred lakh rupees but does not
exceed five hundred lakh rupees, with
imprisonment for a term which may extend to three
years and with fine;

(iii) in the case of any other offence where the

amount of duty evaded or the amount of Central
Excise Duty Credit wrongly availed or utilised or
the amount of refund wrongly taken exceeds one
hundred lakh rupees but does not exceed two
hundred lakh rupees, with imprisonment for a term
which may extend to one year and with fine;

(iv) in cases where he commits or abets the

commission of an offence specified in clause (f),
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with imprisonment for a term which may extend to

six months or with fine or with both.
(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 five years and with
fine:

(3) The imprisonment referred to in clauses (i), (ii) and (iii) of

sub-section (1) and sub-section (2) shall, in the absence of special
and adequate reasons to the contrary to be recorded in the
judgment of the Court, be for a term not less than six months.

(4) 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.

91. (1) Notwithstanding anything contained in the Bharatiya Certain

Nagarik Suraksha Sanhita, 2023, offences under section 90, except offences to be
46 of 2023
the offences referred to in sub-section (2), shall be non-cognizable non-
within the meaning of that Sanhita. cognizable.

(2) The offences specified in clause (a) or clause (b) or clause (c)
or clause (d) of sub-section (1) of section 90 and punishable under
clause (i) of that sub-section shall be cognizable and non-bailable.

(3) Any offence under this Act may, either before or after the
institution of prosecution, be compounded by the Principal Chief
Commissioner of Central Excise or Chief Commissioner of Central
Excise, on payment by the person accused of the offence to the
Central Government of such compounding amount and in such
manner of compounding, as may be prescribed:

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Provided that nothing contained in this sub-section shall apply

to––
(a) a person who has been allowed to compound once in respect of
any of the offences under the provisions of clause (a) to (h) of
sub-section (1) of section 90;
(b) a person who has been accused of committing an offence
under clause (b) of sub-section (1) of section 90;
61 of 1985. (c) a person who has been accused of committing an offence
under this Act which is also an offence under the Narcotic
Drugs and Psychotropic Substances Act, 1985;
(d) a person who has been convicted by a court under the Central
Excise Act, 1944 on or after the 30th day of December, 2005
or a person who has been convicted by a court under this Act;
or
1 of 1944.
(e) any other class of persons or offences as may be prescribed:

Provided further that any compounding allowed under the

provisions of this section shall not affect the proceedings, if any,
instituted under any other law:
Provided also that compounding shall be allowed only after
making payment of duty, interest and penalty involved in such
offences.
92. (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 Offences by
for the conduct of the business of the company, as well as the companies.
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 he proves that the offence was committed without his
knowledge or that he had exercised all due diligence to prevent the
commission of such offence.

(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.

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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.

93. (1) Where any person is convicted under this Act for
contravention of any of the provisions thereof, it shall be Power of court
competent for the court convicting the person to cause the name to publish
and place of business or residence of such person, nature of the name, place of
contravention, the fact that the person has been so convicted and business, etc.,
such other particulars as the court may consider to be appropriate of persons
in the circumstances of the case, to be published at the expense of convicted
such person, in such newspapers or in such manner as the court under this Act.
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.

94. (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 Presumption of
be a defence for the accused to prove the fact that he had no such culpable
mental state with respect to the act charged as an offence in that mental state.
prosecution.

Explanation.–– For the purposes of 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.

95. (1) A statement made and signed by a person before any

Central Excise Officer of a Gazetted rank during the course of any Relevancy of
inquiry or proceeding under this Act shall be relevant, for the statements
purpose of proving, in any prosecution for an offence under this under certain
Act, the truth of the facts which it contains,–– circumstances.
(a) when the person who made the statement is dead or

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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
before a court.

96. (1) Nothing contained in section 401 of the Bharatiya NagarikApplication of

Suraksha Sanhita, 2023, or in the Probation of Offenders Act, section 401 of
46 of 2023.
1958, shall apply to a person convicted of an offence under this Bharatiya
20 of 1958. Act, unless that person is under eighteen years of age. Nagarik
Suraksha
Sanhita, 2023,
(2) The provisions of sub-section (1) shall have effect and of the
notwithstanding anything contained in sub-section (4) of section Probation of
90. Offenders Act,
1958.
97. Any court trying an offence under this Act may order the
forfeiture to Government of any goods in respect of which the
court is satisfied that an offence under this Act has been
committed, and may also order the forfeiture of any receptacles, Power of
packages or coverings in which such goods are contained and the courts to order
animals, vehicles, vessels or other conveyances used in carrying forfeiture.
the goods, and any implements or machinery used in the
manufacture of the goods.

CHAPTER XII
SUPPLEMENTAL PROVISIONS

98. Where any document is produced by any person, or has been

seized from the custody or control of any person, in either case, Presumption as
under this Act or under any other law, and such document is to documents
tendered by the prosecution in evidence against him or against him in certain
and any other person who is tried jointly with him, the court cases.
shall,—

(a) unless the contrary is proved by such person, presume—

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(i) the truth of the contents of such document;

(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 handwriting of, any particular
person, is in handwriting of that person, 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.

99. (1) Notwithstanding anything contained in any other law for

the time being in force,––
(a) a microfilm of a document or the reproduction of the
image or images embodied in such microfilm (whether
enlarged or not); or
Admissibility
(b) a facsimile copy of a document; or of microfilms,
(c) a statement contained in a document and included in a facsimile
printed material produced by a computer, subject to such copies of
conditions, as may be prescribed; or documents and
computer
(d) any information stored electronically in any device or printouts as
media, including any hard copies made of such information, documents and
as evidence.
shall be deemed to be 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) In any proceedings under this Act or the rules made thereunder,
where it is desired to give a statement in evidence by virtue of this
section, a certificate,––
(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,
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

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it.

100. Notwithstanding anything contained in any other provisions

of this Act, any authority, who has passed or issued any decision or
order or notice or certificate or any other document, may rectify
any error which is apparent on the face of record in such decision Rectification of
or order or notice or certificate or any other document, either on its errors apparent
own motion or where such error is brought to its notice by any on the face of
officer appointed under this Act or by the affected person within a record.
period of three months from the date of issue of such decision or
order or notice or certificate or any other document, as the case
may be:

Provided that no such rectification shall be done after a period

of six months from the date of issue of such decision or order or
notice or certificate or any other document:

Provided further that the said period of six months shall not
apply in such cases where the rectification is purely in the nature
of correction of a clerical or arithmetical error, arising from any
accidental slip or omission:

Provided also that where such rectification adversely affects

any person, the principles of natural justice shall be followed by
the authority carrying out such rectification.

Power of
101. (1) The Central Government may, by notification, make rules Central
for carrying out the purposes of this Act. Government to
make rules.
(2) In particular, and without prejudice to the generality of the
foregoing power, such rules may provide for the following,
namely:––

(a) the manner of levy and collection of duty of excise under

sections 6 and 7;
(b) determination of the annual capacity of production, the
factor relevant to the production of such goods and the quantity
that is deemed to be produced by use of a unit of such factor and
determination of the annual capacity of production of the factory,
in which such goods are produced on the basis of such factor under
sub-section (2) of section 7;
(c) the manner of levy of duty of excise on notified goods at
such rate, on the unit of production or, as the case may be, on such
factor relevant to the production under sub-section (3) of section 7;
(d) the conditions subject to which the duty of excise
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calculated on a proportionate basis shall be abated in respect of a

period under the proviso to sub-section (3) of section 7;
(e) the manner of providing for remission of duty of excise
leviable on any excisable goods, which due to any natural cause
are found to be deficient in quantity and 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 under sub-section (1) of section 11;
(f) the manner of removal of excisable goods from the place
where they are 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 warehouse under
sub-section (1) of section 12;

(g) the manner of determining the value under clause (b) of sub-
section (1) of section 13;
(h) the manner of determination of retail sale price of the goods
liable to confiscation under sub-section (4) of section 14;
(i) the manner of issuance of invoice under sub-section (1) and
the particulars to be mentioned on such invoice under sub-section
(3) of section 15;
(j) the manner of registration under sub-section (1) of section 16;
(k) the conditions and manner for cancellation or revocation of
the registration under sub-section (3) of section 16;
(l) the conditions, restrictions and manner of availment and
utilisation of Central Excise Duty Credit and such other duties of
excise under sub-sections (1) and (2) of section 17;
(m) such other amount for the payment of which the Central
Excise Duty Credit may be utilised and the limitations, restrictions
and conditions subject to which Central Excise Duty Credit may be
utilised under sub-section (2) of section 17;
(n) the lapsing of credit of duty lying unutilised with the
manufacturer of specified excisable goods on an appointed date
and also for not allowing such credit to be utilised for payment of
any kind of duty on any excisable goods on and from such date
under sub-section (3) of section 17;
(o) the form, manner and frequency of filing of returns and late
fees, if any, to be charged thereof, under sub-section (1) of section
20 and sub-section (1) of section 21;
(p) the period within which and the manner of paying the duty
on the goods removed from the factory or the warehouse at the rate

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specified in the First Schedule under section 23;

(q) the form of application and manner in which refund shall
be made under sub-section (1) of section 25;
(r) the procedure, safeguards, conditions and limitations for
grant of 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 including interest thereon and duty paid on excisable goods
used as inputs under sub-section (2) of section 25;
(s) the formula, procedure, safeguards, conditions and
limitations for refund of Central Excise Duty Credit under sub-
section (3) of section 25;
(t) the manner in which money is to be credited to the Fund
under sub-section (2) of section 28;
(u) the manner in which the money credited to the Fund shall
be utilised for the welfare of the consumers under sub-section (1)
of section 29;
(v) the form in which the account and records relating to the
Fund shall be maintained under sub-section (2) of section 29;
(w) the manner of, the period for which and the frequency at
which audit shall be undertaken by the Central Excise Officer
under sub-section (1) of section 30;
(x) the form of application, such other particulars for
application and the manner of settlement of a case before the
Settlement Commission under sub-section (1) and the fees for an
application for settlement under sub-section (2) of section 48;
(y) the manner and the conditions subject to which any person
other than an assessee, may also make an application to the
Settlement Commission in respect of a show cause notice issued to
him in a case relating to the assessee under sub-section (4) of
section 48;
(z) the manner of provisional attachment of property belonging to
the applicant by the Settlement Commission under sub-section (1)
of section 50;
(za) the manner and fee for obtaining the certified copy of
inspection report made by any Central Excise Officer to the
Settlement Commission or part thereof under section 52;
(zb) the form and manner of verification of appeal before the
Commissioner of Central Excise (Appeals) under sub-section (3)
of section 59;
(zc) the form and manner of verification of memorandum of cross-
objections before the Appellate Tribunal under sub-section (6) of

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section 61;
(zd) the form and manner of verification of appeal before the
Appellate Tribunal under sub-section (8) of section 61;
(ze) the form and manner of verification of application for revision
made by any person under sub-section (4) of section 65;
(zf) the qualifications to be acquired by any person to appear on
behalf of other person as an authorised representative under clause
(c) of sub-section (2) of section 74;
(zg) the manner of authorising and regulating inspection of
factories for taking of samples, and making of tests, of any
substance produced or stored therein or any other place, for proper
levy and collection of the duties imposed on any excisable goods
under sub-section (1) of section 76;
(zh) the period and time within which, form (including electronic
form), manner and the authority or agency, for furnishing
information return under sub-section (1) of section 84;
(zi) the manner of dealing with the goods confiscated under this
Act or the rules made thereunder under sub-section (10) of section
88;
(zj) the amount to be paid for compounding and the manner of
compounding under sub-section (3) of section 91;
(zk) the conditions subject to which statement contained in a
document and included in a printed material produced by a
computer shall be deemed to be also a document under sub-section
(1) of section 99;
(zl) the manner of publication of names and particulars of any
person relating to any proceedings or prosecutions under this Act
in respect of such person under sub-section (1) of section 111;
(zm) any other matter to carry out the provisions of this Act.

102. Every rule made under this Act, every notification issued
under sections 7, 9 and 14, sub-section (1) of section 10, sections
19 and 34, and every order made under sub-section (3) of section
10, 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 Laying of rules
session, for a total period of thirty days which may be comprised and
in one session or in two or more successive sessions, and if, before notifications.
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, the rule or notification or order shall
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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.

103. Where any rule, notification or order made or issued under

this Act or any notification or order issued under such rule, is
amended, repealed, superseded or rescinded, then, unless a
different intention appears, such amendment, repeal, supersession
or rescinding shall not—
(a) revive anything not in force or existing at the time at which
the amendment, repeal, supersession or rescinding takes effect;
or
(b) affect the previous operation of any rule, notification or
order so amended, repealed, superseded or rescinded or
anything duly done or suffered thereunder; or
(c) affect any right, privilege, obligation or liability acquired, Effect of
accrued or incurred under any rule, notification or order so amendments,
amended, repealed, superseded or rescinded; or etc. of rules,
notifications or
(d) affect any penalty, forfeiture or punishment incurred in orders.
respect of any offence committed under or in violation of any
rule, notification or order so amended, repealed, superseded or
rescinded; or
(e) affect any investigation, legal proceeding or remedy in
respect of any such right, privilege, obligation, liability,
penalty, forfeiture or punishment as aforesaid,
and any such investigation, legal proceeding or remedy may be
instituted, continued or enforced and any such penalty, forfeiture
or punishment may be imposed, as if the rule, notification or order,
as the case may be, had not been amended, repealed, superseded or
rescinded.

104. The Central Government may, by notification, direct, subject

to such conditions, if any, as may be specified in such notification,
that—
(a) any power exercisable by the Board under this Act
may be exercisable also by a Principal Chief
Commissioner of Central Excise or Chief Commissioner of Delegation of
Central Excise or a Principal Commissioner of Central powers.
Excise or Commissioner of Central Excise empowered in
this behalf by the Central Government;
(b) any power exercisable by a Principal Commissioner of
Central Excise or Commissioner of Central Excise under
this Act may be exercisable also by an Additional
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Commissioner of Central Excise or Joint Commissioner of

Central Excise or 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 an Additional Commissioner
of Central Excise or Joint 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; and
(d) any power exercisable by a Deputy Commissioner of
Central Excise or an Assistant Commissioner of Central
Excise under this Act may be exercisable also by a
Gazetted officer of Central Excise empowered in this
behalf by the Board.

105. The Board, 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 or
for the implementation of any other provision of this Act, issue Instructions to
such orders, instructions and directions to the Central Excise Central Excise
Officers as it may deem fit, and such officers and all other persons Officers.
employed in the execution of this Act shall observe and follow
such orders, instructions and directions of the Board:

Provided that no such orders, instructions or directions shall be

issued so as to —
(a) require any Central Excise Officer to make a particular
assessment or to dispose of a particular case in a particular
manner; or
(b) interfere with the discretion of the Commissioner of
Central Excise (Appeals) in the exercise of his appellate
functions.

106. (1) Any decision taken or order passed or any summons or

notices issued under this Act or the rules made thereunder, shall be
served by any one of the following methods, namely:—
(a) by giving, or tendering, or by a messenger including a Service of
courier, to the person for whom it is intended or his decisions,
authorised agent, if any, or a person regularly employed by
orders,
him in connection with the business, or to any adult
member of family residing with the registered person; or summons, etc.

(b) by registered post or speed post or courier with

acknowledgment due, to the person for whom it is
intended or his authorised representative, if any, at his last

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known place of business or residence; or

(c) by sending a communication to his e-mail address provided
at the time of registration or as amended from time to
time; or
(d) by publication in a newspaper circulating in the locality in
which the registered person or the person to whom it is
issued is last known to have resided, carried on business or
personally worked for gain; or
(e) if none of the modes specified in clauses (a) to (d) is
practicable, by affixing a copy thereof to some
conspicuous part of his factory or warehouse or other
place of business or usual place of residence and if such
mode is not practicable for any reason, then by affixing a
copy thereof on the notice board of the office of the
concerned officer or authority who or which passed such
decision or order, or issued such summons or notice.

(2) Every decision, order, summons, notice or any communication

shall be deemed to have been served on the date on which it is
tendered or published or a copy thereof is affixed in the manner
provided in sub-section (1).

(3) When such decision, order, summons, notice or any

communication is sent by registered post or speed post, it shall be
deemed to have been received by the addressee at the expiry of the
period normally taken by such post in transit unless the contrary is
proved.

107. 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 Rounding off
consisting of paise, then, if such part is fifty paise or more, it shall of duty, etc.
be increased to one rupee and if such part is less than fifty paise it
shall be ignored.

108. Where any person claims that he is eligible for Central Excise
Duty Credit under this Act, the burden of proving such claim shall Burden of
lie on such person. proof.

109. Save as provided in sections 68 and 70, no civil court shall Bar on
have jurisdiction to deal with or decide any question arising from jurisdiction of
or relating to anything done or purported to be done under this Act. civil courts.

110. (1) Notwithstanding anything contained in this Act, the Power of

Central Government may, by notification, extend the time limit Government to
specified in, or prescribed or notified under this Act in respect of extend time
actions which cannot be completed or complied with due to force limit in special
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majeure. circumstances.

(2) The power to issue notification under sub-section (1) shall

include the power to give retrospective effect to such notification
from a date not earlier than the date of commencement of this Act.

Explanation.— For the purposes of this section, the expression

“force majeure‖ means a case of war, epidemic, flood, drought,
fire, cyclone, earthquake or any other calamity caused by nature or
otherwise affecting the implementation of any of the provisions of
this Act.

111. (1) If the Central Government is of the opinion that it is

necessary or expedient in the public interest to publish the names Publication of
of any person and any other particulars relating to any proceedings information
or prosecutions under this Act in respect of such person, it may respecting
cause to be published such names and particulars in such manner persons in
as may be prescribed. certain cases.

(2) No publication under this section shall be made in relation to

any penalty imposed under this Act until the time for presenting an
appeal to the Commissioner (Appeals) under section 59 or to the
Appellate Tribunal under section 61, as the case may be, has
expired without an appeal having been presented or the appeal, if
presented, has been disposed of.

Explanation.—In the case of a firm, company or other

association of persons, the names of the partners of the firm,
directors, managing agents, secretaries and treasurers or managers
of the company, or the members of the association, as the case may
be, may also be published if, in the opinion of the Central
Government, circumstances of the case justify it.

112. (1) No suit, prosecution or other legal proceeding shall lie

against any person or any officer of the Central Government or a Protection of
State Government or authorised under this Act, for anything which action taken in
is done, or intended to be done, in good faith, in pursuance of this good faith.
Act or any rule made thereunder.

(2) For the purpose of claiming immunity under sub-section (1),

the officers appointed or authorised under this Act, shall perform
and carry out the respective functions and responsibilities, with
utmost care and due diligence.

(3) No proceeding, other than a suit, shall be commenced against

any person or any officer of the Central Government or a State
Government or authorised under this Act for anything done or
purported to have been done in pursuance of this Act or any rule
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made thereunder, without giving such person or such officer one

month 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.

113. (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 Removal of
provisions of this Act or the rules made thereunder as may appear difficulties.
to it to be necessary for removing the difficulty:

Provided that no such order shall be made under this section

after the expiry of a period of five years, from the commencement
of this Act.

(2) Every order made under this section shall be laid, as soon as
may be, after it is made, before each House of Parliament.

114. (1) Save as otherwise provided in this Act, on and from the
1 of 1944. date of commencement of this Act, the Central Excise Act, 1944,
as respects goods included in entry 84 of the Union List of the Repeal and
Seventh Schedule to the Constitution, saved by section 174 of the savings.
12 of 2017. Central Goods and Services Tax Act, 2017 is hereby repealed.

(2) The repeal of the said Act shall not—

(a) affect the previous operation of the repealed Act and orders
or anything duly done or suffered thereunder; or
(b) affect any right, privilege, obligation, or liability acquired,
accrued or incurred under the repealed Act or orders under
such repealed Act:

Provided that any tax exemption granted as an incentive against

investment through a notification shall not continue as privilege if
the said notification is rescinded on or after the date of
commencement of this Act; or

(c) affect any duty, tax, surcharge, fine, penalty, interest as are
due or may become due or any forfeiture or punishment incurred
or inflicted in respect of any offence or violation committed
against the provisions of the repealed Act; or
(d) affect any investigation, inquiry, verification (including
scrutiny and audit), assessment proceedings, adjudication
and any other legal proceedings or recovery of arrears or
remedy in respect of any such duty, tax, surcharge, penalty,
fine, interest, right, privilege, obligation, liability,

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forfeiture or punishment, as aforesaid, and any such

investigation, inquiry, verification (including scrutiny and
audit), assessment proceedings, adjudication and other
legal proceedings or recovery of arrears or remedy may be
instituted, continued or enforced, and any such tax,
surcharge, penalty, fine, interest, forfeiture or punishment
may be levied or imposed as if the Act had not been so
repealed; or
(e) affect any proceedings including that relating to an appeal,
review or reference, instituted before on, or after the date
of commencement of this Act under the repealed Act and
such proceedings shall be continued under the said
repealed Act as if this Act had not come into force and the
said Act had not been repealed; or
(f) affect the reference made to the repealed Act under any other
legislation, rule, order, or any other legal instrument and
any such reference shall, in so far as it is not inconsistent
with the provisions of this Act, be construed to as a
reference to this Act or its corresponding provisions; or
(g) revive anything not in force or existing at the time of such
repeal.

(3) Where, in pursuance of an assessment or adjudication or appeal

or review or reference proceedings initiated under the repealed Act
in respect of a period before the date of commencement of this
Act, any amount of duty, CENVAT credit, interest, fine or penalty
becomes recoverable from any person, it shall, unless recovered
under the repealed Act, be recoverable as an arrear of duty under
this Act.

(4) Every notification, circular, instruction, standing order, trade

notice or other order, which is issued under the repealed Act or the
rules made thereunder by the Central Government, or Board, or
Principal Chief Commissioner of Central Excise or Chief
Commissioner of Central Excise, as the case may be, or the
Principal Commissioner of Central Excise or Commissioner of
Central Excise, as the case may be, and is in force on the date of
commencement of this Act, shall, to the extent it is consistent with
the provisions of this Act, be deemed to be valid as if the same was
issued under the corresponding provisions of this Act.

(5) Without prejudice to the provisions of sub-section (2), the

provisions of section 6 of the General Clauses Act, 1897 shall
10 of 1897. apply with regard to the effect of repeal.

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FIRST SCHEDULE
[See sections 2(i), 2 (o)(ii), 6(1), 7, 8(1), 9, 23 and 48(1)]

GENERAL RULES OF INTERPRETATION OF THIS SCHEDULE

I. Classification of goods in this Schedule shall be governed by the following principles :

1. The titles of Sections, Chapters and Sub-Chapters are provided for ease of reference only;
for legal purposes, classification shall be determined according to the terms of the headings and
any relative Sections or Chapter Notes and, provided such headings or Notes do not otherwise
require, according to the following provisions.
2. Any reference in a heading —
(a) to an article shall be taken to include a reference to that article incomplete or unfinished,
provided that, as presented, the incomplete or unfinished article has the essential character of the
complete or finished article. It shall also be taken to include a reference to that article complete
or finished (or falling to be classified as complete or finished by virtue of this rule), presented
unassembled or disassembled;
(b) to a material or substance shall be taken to include a reference to mixtures or
combinations of that material or substance with other materials or substances. Any reference to
goods of a given material or substance shall be taken to include a reference to goods consisting
wholly or partly of such material or substance. The classification of goods consisting of more
than one material or substance shall be according to the principles of rule 3.
3. When by application of clause (b) of rule 2 or for any other reason, goods are, prima facie,
classifiable under two or more headings, classification shall be effected as follows :—
(a) the heading which provides the most specific description shall be preferred to headings
providing a more general description. However, when two or more headings each refer to part
only of the materials or substances contained in mixed or composite goods or to part only of the
items in a set put up for retail sale, those headings are to be regarded as equally specific in
relation to those goods, even if one of them gives a more complete or precise description of the
goods;
(b) mixtures, composite goods consisting of different materials or made up of different
components, and goods put up in sets for retail sale, which cannot be classified by reference to
clause (a), shall be classified as if they consisted of the material or component which gives them
their essential character, insofar as this criterion is applicable;
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(c) when goods cannot be classified by reference to clause (a) or clause (b), they shall be
classified under the heading which occurs last in numerical order among those which equally
merit consideration.
4. Goods which cannot be classified in accordance with the above rules shall be classified
under the heading appropriate to the goods to which they are most akin.
5. For legal purposes, the classification of goods in the sub-headings of a heading shall be
determined according to the terms of those sub-headings and any related sub-heading Notes
and, mutatis mutandis, to the above rules, on the understanding that only sub-headings at the
same level are comparable. For the purposes of this rule, the relative Chapter Notes also apply,
unless the context otherwise requires.
II. General Explanatory Notes
1. Where in column (2) of this Schedule, the description of an article or group of articles
under a heading is preceded by ―-‖, the said article or group of articles shall be taken to be a sub-
classification of the article or group of articles covered by the said heading. Where, however, the
description of an article or group of articles is preceded by ―--‖, the said article or group of
articles shall be taken to be a sub-classification of the immediately preceding description of the
article or group of articles which has ―-‖. Where the description of an article or group of articles
is preceded by ―---‖ or ―----‖, the said article or group of articles shall be taken to be a sub-
classification of the immediately preceding description of the article or group of articles which
has ―-‖ or ―--‖.
2. The abbreviation ―%‖ in column (4) of this Schedule, in relation to the rate of duty,
indicates that the duty on the goods to which the entry relates shall be charged on the basis of the
value of the goods fixed, defined or deemed to be, as the case may be, under or in sub-section (2)
of section 6 or section 13 or section 14 of the Central Excise Act, 2024, the duty being equal to
such percentage of the value as is indicated in that column.
III. Additional Notes
In this Schedule,––
(a) the expressions ―Chapter‖ and ―Section‖ shall mean, respectively, a Chapter and Section
as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and the
expressions––
(i) ―heading‖, in respect of goods, means a description in the list of tariff provisions
accompanied by a four- digit number and includes all sub-headings of tariff items, the first four -
digits of which correspond to that number;
(ii) ―sub-heading‖, in respect of goods, means a description in the list of tariff provisions
accompanied by a six- digit number and includes all tariff items, the first six- digits of which
correspond to that number;
(iii) ―tariff item‖ means a description of goods in the list of tariff provisions accompanying
either eight- digit number and the rate of the duty of excise, or eight- digit number with blank in
the column of the rate of duty;
(b) the list of tariff provisions is divided into Sections, Chapters and Sub-Chapters;
(c) in column (3), the standard unit of quantity is specified for each tariff item to facilitate the
collection, comparison and analysis of trade statistics; and
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(d) ―…..‖ against any goods denotes that Central Excise duty under this Schedule is not
leviable on such goods.

IV. List of Abbreviations used

Abbreviations For
1. kg. Kilogram
2. Tu Thousand in Number

SECTION IV
TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES; PRODUCTS,
WHETHER OR NOT CONTAINING NICOTINE, INTENDED FOR INHALATION
WITHOUT COMBUSTION; OTHER NICOTINE CONTAINING PRODUCTS
INTENDED FOR THE INTAKE OF NICOTINE INTO THE HUMAN BODY
NOTE:–– In this Section, the expression ―unit container‖ means a container, whether large or
small (for example, tin, can, box, jar, bottle, bag or carton, drum, barrel or canister) designed to
hold a predetermined quantity or number.
Chapter 24
TOBACCO AND MANUFACTURED TOBACCO SUBSTITUTES; PRODUCTS,
WHETHER OR NOT CONTAINING NICOTINE, INTENDED FOR INHALATION
WITHOUT COMBUSTION; OTHER NICOTINE CONTAINING PRODUCTS
INTENDED FOR THE INTAKE OF NICOTINE INTO THE HUMAN BODY
NOTES
1. In this Chapter, ―brand name‖ means a brand name, whether registered or not, that is to
say, a name or a mark, such as a symbol, monogram, label, signature invented words or any
writing which is used in relation to a product, for the purpose of indicating, or so as to indicate, a
connection in the course of trade between the product and some person using such name or mark
with or without any indication of the identity of that person.
2. In relation to products of heading 2401or 2402 or 2403, labelling or relabelling of
containers or repacking from bulk packs to retail packs or the adoption of any other treatment to
render the product marketable to the consumer, shall amount to ―manufacture‖.
3. In this Chapter, ―Pan masala containing tobacco‖, commonly known as ―gutkha‖ or by
any other name, included in tariff item 2403 99 90, means any preparation containing betel-nuts
and tobacco and any one or more of the following ingredients, namely :—
(i) lime; and
(ii) kattha (catechu),
whether or not containing any other ingredients, such as cardamom, copra and menthol.
4. Any products classifiable in heading 2404 and any other heading of the Chapter are to be
classified in heading 2404.

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5. For the purposes of heading 2404, the expression ―inhalation without combustion‖ means
inhalation through heated delivery or other means, without combustion.

SUB-HEADING NOTE
For the purposes of sub-heading 2403 11, the expression ―water pipe tobacco‖ means
tobacco intended for smoking in a water pipe and which consists of a mixture of tobacco and
glycerol, whether or not containing aromatic oils and extracts, molasses or sugar, and whether or
not flavoured with fruit. However, tobacco-free products intended for smoking in a water pipe
are excluded from this sub-heading.

SUPPLEMENTARY NOTES
For the purposes of this Chapter,––
(1) ‖tobacco‖ means any form of tobacco, whether cured or uncured and whether
manufactured or not, and includes the leaf, stalks and stems of the tobacco plant, but does not
include any part of a tobacco plant while still attached to the earth;
(2) ―cut-tobacco‖ means the prepared or processed cut-to-size tobacco which is generally
blended or moisturised to a desired extent for use in the manufacture of machine-rolled
cigarettes;
(3) ―smoking mixtures for pipes and cigarettes‖ of sub-heading 2403 10 does not cover
―Gudaku‖.

Tariff Item Description of goods Unit Rate of Duty

(1) (2) (3) (4)
2401 Unmanufactured Tobacco; Tobacco Refuse
2401 10 - Tobacco, not stemmed or stripped:
2401 10 10 --- Flue cured virginia tobacco kg. 64%
2401 10 20 --- Sun cured country (natu) tobacco kg. 64%
2401 10 30 --- Sun cured virginia tobacco kg. 64%
2401 10 40 --- Burley tobacco kg. 64%
2401 10 50 --- Tobacco for manufacture of biris, not stemmed kg. 64%
2401 10 60 --- Tobacco for manufacture of chewing tobacco kg. 64%
2401 10 70 --- Tobacco for manufacture of cigar and cheroot kg. 64%
2401 10 80 --- Tobacco for manufacture of hookah tobacco kg. 64%
2401 10 90 --- Other kg. 64%
2401 20 - Tobacco, partly or wholly stemmed or stripped :

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2401 20 10 --- Flue cured virginia tobacco kg. 64%

2401 20 20 --- Sun cured country (natu) tobacco kg. 64%
2401 20 30 --- Sun cured virginia tobacco kg. 64%
2401 20 40 --- Burley tobacco kg. 64%
2401 20 50 --- Tobacco for manufacture of biris kg. 64%
2401 20 60 --- Tobacco for manufacture of chewing tobacco kg. 64%
2401 20 70 --- Tobacco for manufacture of cigar and cheroot kg. 64%
2401 20 80 --- Tobacco for manufacture of hookah tobacco kg. 64%
2401 20 90 --- Other kg. 64%
2401 30 00 - Tobacco refuse kg. 50%
2402 Cigars, cheroots, cigarillos and cigarettes, of
tobacco or of tobacco substitutes
2402 10 - Cigars, cheroots and cigarillos, containing tobacco :
2402 10 10 --- Cigar and cheroots Tu 12.5% or Rs.
4006 per
thousand
whichever is
higher
2402 10 20 --- Cigarillos Tu 12.5% or Rs.
4006 per
thousand
whichever is
higher
2402 20 - Cigarettes, containing tobacco :
2402 20 10 --- Other than filter cigarettes, of length not exceeding Tu Rs. 200 per
65 millimetres thousand
2402 20 20 --- Other than filter cigarettes, of length exceeding 65 Tu Rs. 250 per
millimetres but not exceeding 70 millimetres thousand
2402 20 30 --- Filter cigarettes of length (including the length of the Tu Rs. 440 per
filter, the length of filter being 11 millimetres or its actual thousand
length, whichever is more) not exceeding 65 millimetres
2402 20 40 --- Filter cigarettes of length (including the length of the Tu Rs. 440 per
filter, the length of filter being 11 millimetres or its actual thousand
length, whichever is more) exceeding 65 millimetres but
not exceeding 70 millimetres
2402 20 50 --- Filter cigarettes of length (including the length of the Tu Rs. 545 per
filter, the length of filter being 11 millimetres or its actual thousand

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length, whichever is more) exceeding 70 millimetres but

not exceeding 75 millimetres
2402 20 90 --- Other Tu Rs. 735 per
thousand
2402 90 - Other :
2402 90 10 --- Cigarettes of tobacco substitutes Tu Rs. 600 per
thousand
2402 90 20 --- Cigarillos of tobacco substitutes Tu 12.5% or Rs.
4006 per
thousand
whichever is
higher
2402 90 90 --- Other Tu 12.5% or Rs.
4006 per
thousand
whichever is
higher
2403 Other manufactured tobacco and manufactured
tobacco substitutes; ―Homogenised‖ or ―Reconstituted‖
tobacco; Tobacco extracts and essences
- Smoking tobacco, whether or not containing tobacco substitute in any
proportion;
2403 11 -- Water pipe tobacco specified in Sub-heading Note to this Chapter:
2403 11 10 --- Hukkah or gudaku tobacco kg. 25%
2403 11 90 --- Other kg. 60%
2403 19 -- Other:
2403 19 10 --- Smoking mixtures for pipes and cigarettes kg. 60%
--- Biris :
2403 19 21 ---- Other than paper rolled biris, manufactured without Tu Rs. 1.00 per
the aid of machine thousand
2403 19 29 ---- Other Tu Rs. 2.00 per
thousand
2403 19 90 --- Other kg. 25%
- Other :
2403 91 00 --- ―Homogenised‖ or ―reconstituted‖ tobacco kg. 25%
2403 99 -- Other :

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2403 99 10 --- Chewing tobacco kg. 25%

2403 99 20 --- Preparations containing chewing tobacco kg. 25%
2403 99 30 --- Jarda scented tobacco kg. 25%
2403 99 40 --- Snuff kg. 25%
2403 99 50 --- Preparations containing snuff kg. 25%
2403 99 60 --- Tobacco extracts and essence kg. 25%
2403 99 70 --- Cut-tobacco kg. Rs. 70 per
kg.
2403 99 90 --- Other kg. 25%
2404 Products containing tobacco, reconstituted tobacco,
nicotine, or tobacco or nicotine substitutes, intended for
inhalation without combustion; other nicotine containing
products intended for the intake of nicotine into the human
body
- Products intended for inhalation without combustion
2404 11 00 - Containing tobacco or reconstituted tobacco kg. 81%
2404 12 00 -- Other, containing nicotine kg. ..…
2404 19 00 -- Other kg. 81%
- Other:
2404 91 00 -- For oral application kg. ..…
2404 92 00 -- For transdermal application kg. ..…
2404 99 00 -- Other kg. ..…

SECTION V

MINERAL PRODUCTS
Chapter 27
MINERAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR DISTILLATION;
BITUMINOUS SUBSTANCES; MINERAL WAXES

NOTES
1. References in heading 2710 to ―petroleum oils and oils obtained from bituminous
minerals‖ include not only petroleum oils and oils obtained from bituminous minerals, but also
similar oils, as well as those consisting mainly of mixed unsaturated hydrocarbons, obtained by

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any process, provided that the weight of the non-aromatic constituents exceeds that of the
aromatic constituents:
Provided that the references do not include liquid synthetic polyolefins of which less than
60% by volume distils at 300°C, after conversion to 1,013 millibars when a reduced-pressure
distillation method is used.
2. In relation to lubricating oils and lubricating preparations of heading 2710, labelling or
relabelling of containers or repacking from bulk packs to retail packs or the adoption of any
other treatment to render the product marketable to the consumer, shall amount to
―manufacture‖.
3. In relation to natural gas falling under heading 2711, the process of compression of
natural gas (even if it does not involve liquefaction), for the purpose of marketing it as
Compressed Natural Gas (CNG), for use as a fuel or for any other purpose, shall amount to
―manufacture‖.

SUB-HEADING NOTE
For the purposes of sub-heading 2710 12, ―light oils and preparations‖ are those of which
90% or more by volume (including losses) distil at 210°C (ASTM D 86 method).
SUPPLEMENTARY NOTES
In this Chapter, reference to any standard of the Bureau of Indian Standards refers to the last
published version of that standard.
Illustration.–– IS 1459 refers to IS 1459:2018 and not to IS 1459:1974.

Tariff Description of goods Unit Rate of Duty

Item
(1) (2) (3) (4)
2709 Petroleum Oils and Oils obtained from Bituminous Minerals,
Crude.
2709 00 -- Petroleum oils and oils obtained from bituminous
minerals, crude
2709 00 10 --- Petroleum crude kg. Re. 1 per
tonne
2709 00 90 --- Other kg. ..…

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2710 Petroleum oils and oils obtained from bituminous

minerals, other than crude; preparations not elsewhere
specified or included, containing by weight 70% or
more of petroleum oils or of oils obtained from
bituminous minerals, these oils being the basic
constituents of the preparations; waste oils

- Petroleum oils and oils obtained from bituminous

minerals (other than crude) and preparations not
elsewhere specified or included, containing by weight
70% or more of petroleum oils or of oils obtained
from bituminous minerals, these oils being the basic
constituents of the preparations, other than those
containing biodiesel and other than waste oil
2710 12 -- Light oils and preparations:
--- Naphtha:
2710 12 21 ---- Light Naphtha kg. ..…
2710 12 22 ---- Heavy Naphtha kg. ..…
2710 12 29 ---- Full range Naphtha kg. ..…
--- Solvent 60/80, Solvent 50/120 and Solvent ..…
145/205 (Petroleum Hydrocarbon solvents) as
specified under standard IS 1745:
2710 12 31 ---- Solvent 60/80 kg. ..…
2710 12 32 ---- Solvent 50/120 kg. ..…
2710 12 39 ---- Solvent 145/205 kg. ..…
--- Motor Gasoline conforming to standard IS 2796,
IS 17021, IS 17586 or IS 17076:
2710 12 41 ---- Motor Gasoline conforming to standard IS 2796 kg. 14% + Rs.
15.00 per
litre
2710 12 42 ---- E 20 Fuel conforming to standard IS 17021 kg. 14% + Rs.
15.00 per
litre
2710 12 43 ---- E 12 Fuel conforming to standard IS 17586 kg. 14% + Rs.
15.00 per
litre
2710 12 44 ---- E 15 Fuel conforming to standard IS 17586 kg. 14% + Rs.
15.00 per
litre

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2710 12 49 ---- M15 Fuel conforming to standard IS 17076 kg. 14% + Rs.
15.00 per
litre
2710 12 50 --- Aviation Gasoline conforming to standard IS kg. .....
1604
2710 12 90 --- Other kg. 14% + Rs.
15.00 per
litre
2710 19 -- Other:
2710 19 20 --- Solvent 125/240 (Petroleum Hydrocarbon kg. ..…
solvent) as specified under standard IS 1745
--- Kerosene intermediate and oils obtained from
Kerosene intermediate:
2710 19 31 ---- Kerosene intermediate kg. ..…
2710 19 32 ---- Kerosene conforming to standard IS 1459 kg. ..…
2710 19 39 ---- Aviation Turbine Fuels, Kerosene Type kg. 14%
conforming to standard IS 1571
--- Gas Oil and oils obtained from Gas oil:
2710 19 41 ---- Gas oil kg. ..…
2710 19 42 ---- Vacuum gas oil kg. ..…
2710 19 43 ---- Light diesel oil conforming to standard IS 15770 kg. ..…
2710 19 44 ---- Automotive diesel fuel, not containing Bio- kg. 14% + Rs.
diesel, conforming to standard IS 1460 15.00 per
litre
2710 19 49 ---- High flash high speed diesel fuel conforming to kg. 14% + Rs.
standard IS 16861 15.00 per
litre
--- Fuel oils conforming to standard IS 1593:
2710 19 51 ---- Grade LV kg. ..…
2710 19 52 ---- Grade MV1 kg. ..…
2710 19 53 ---- Grade MV2 kg. ..…
2710 19 59 ---- Grade HV kg. ..…
--- Fuels (Class F) or Marine Fuels conforming to
standard IS 16731:
2710 19 61 ---- Distillate oil kg. ..…

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2710 19 69 ---- Residual oil kg. ..…

--- Base oil and Lubricating oil:
2710 19 71 ---- Base oil kg. ..…
2710 19 72 ---- Engine oil (Internal combustion engine crankcase kg. ..…
oils) conforming to IS 13656
2710 19 73 ---- Engine oil conforming to IS 14234 kg. ..…
2710 19 74 ---- Automotive gear oil conforming to IS 1118 kg. ..…
2710 19 75 ---- Industrial gear oil conforming to IS 8406 kg. ..…
2710 19 76 ---- General purpose machinery and spindle oils kg. ..…
conforming to standard IS 493
2710 19 77 ---- Turbine lubricating oil conforming to standard IS kg. ..…
1012
2710 19 78 ---- Other lubricating oil, conforming to any other kg. ..…
BIS standard
2710 19 79 ---- Other lubricating oil, not conforming to any BIS kg. ..…
standard
--- Cutting oil, hydraulic oil, industrial white oil, jute
batching oil, mineral oil for cosmetic industry,
transformer oil:
2710 19 81 ---- Cutting oil conforming to standard IS 1115 kg. ..…
2710 19 82 ---- Cutting oil (neat) conforming to standard IS 3065 kg. ..…
2710 19 83 ---- Hydraulic oil conforming to standard IS 3098 or kg. ..…
IS 11656
2710 19 84 ---- Industrial white oil conforming to standard IS kg. ..…
1083
2710 19 85 ---- Insulating oil for transformer and circuit-breaker kg. ..…
(Transformer and circuit-breaker oils) conforming to
standard IS 335 or IS 12463
2710 19 86 ---- Mineral oil for cosmetic industry conforming to kg. ..…
standard IS 7299
2710 19 87 ---- Jute batching oil conforming to standard IS 1758 kg. ..…
2710 19 88 ---- Other cutting oil, hydraulic oil, industrial white kg. ..…
oil, jute batching oil, mineral oil for cosmetic
industry, transformer oil conforming to any other BIS
standard
2710 19 89 ---- Other cutting oil, hydraulic oil, industrial white kg. ..…
oil, jute batching oil, mineral oil for cosmetic

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industry, transformer oil, not conforming to any other

BIS standard
2710 19 90 --- Other kg. ..…
2710 20 - Petroleum oils and oils obtained from bituminous
minerals (other than crude) and preparations not
elsewhere specified or included, containing by weight
70% or more petroleum oils or of oils obtained from
bituminous minerals, these oils being the basic
constituents of the preparations, containing biodiesel,
other than waste oil:
2710 20 10 --- Automotive diesel fuel, containing Bio-diesel, kg. 14% + Rs.
conforming to standard IS 1460 15.00 per
litre
2710 20 20 --- Diesel fuel blend (B6 to B20) conforming to kg. 14% + Rs.
standard IS 16531 15.00 per
litre
2710 20 90 --- Other kg. ..…
2710 91 00 -- Containing Polychlorinated biphenyls (PCBs), kg. ..…
polychlorinated terphenyls (PCTs) or polybrominated
biphenyls (PBBs)
2710 99 00 -- Other kg. ..…
2711 Petroleum gases and other gaseous hydrocarbons
- Liquefied:
2711 11 00 -- Natural gas kg. 14%
2711 12 00 -- Propane kg.
2711 13 00 -- Butane kg.
2711 14 00 -- Ethylene, propylene, butylene and butadiene kg.
2711 19 00 -- Other kg.
- In gaseous state:
2711 21 00 -- Natural gas kg. 14%
2711 29 00 -- Other kg. ..…

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SECOND SCHEDULE
[See section 2(o)(iii)]

NOTES

1. In this Schedule, ―heading‖, ―sub-heading‖ and ―tariff item‖ mean respectively,

a heading, sub-heading and tariff item in the First Schedule.
2. The rules for the interpretation, the Section, Chapter Notes, the General
Explanatory Notes and the Additional Notes of the First Schedule shall apply to the
interpretation of this Schedule.

Sl. No. Heading, Sub- Description of goods

heading or Tariff
item
(1) (2) (3)
1. 2402 20 10 to All Goods
2402 20 90
2. 2403 99 10, Chewing tobacco and preparations containing chewing
tobacco
2403 99 20,
2403 99 30
3. 2403 99 90 Pan masala containing tobacco

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