THE CENTRAL EXCISE ACT, 1944

[Act No. 1 of 1944]

[24th February, 1944]
An Act to consolidate and amend the law relating to Central Duties of Excise

1. SHORT TITLE, EXTENT AND COMMENCEMENT.

(1) This Act may be called the Central Excise Act, 1944.

(2) It extends 6 to the whole of India.

(3) It shall come into force on such date 8 as the Central Government may, by
notification in the Official Gazette, appoint in this behalf.

2. DEFINITIONS.

In this Act, unless there is anything repugnant in the subject or context, -

(a) "Adjudicating authority" means any authority competent to pass any order or
decision under this Act, but does not include the Central Board of Excise and Customs
constituted under the Central Boards of Revenue Act, 1963 (54 of 1963), Commissioner
of Central Excise (Appeals) or Appellate Tribunal;

(aa) "Appellate Tribunal" means the Customs, Excise and Gold (Control) Appellate
Tribunal constituted under section 129 of the Customs Act, 1962 (52 of 1962);

(aaa) "broker" or "commission agent" means a person who in the ordinary course of
business makes contracts for the sale or purchase of excisable goods for others;

(b) "Central Excise Officer" means the Chief Commissioner of Central Excise,
Commissioner of Central Excise, Commissioner of Central Excise (Appeals), Additional
Commissioner of Central Excise, Deputy Commissioner of Central Excise, Assistant
Commissioner 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 Excise and Customs constituted under the Central Boards of Revenue Act, 1963 (54 of
1963) with any of the powers of a Central Excise Officer under this Act.

(c) "Curing" includes wilting, drying, fermenting and any process for rendering an
unmanufactured product fit for marketing or manufacture;

(d) "Excisable goods" means goods specified in the First Schedule and Second
Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) as being subject to a duty of
excise and includes salt;

(e) "Factory" means any premises, including the precincts thereof, wherein or in any
part of which excisable goods other than salt are manufactured, or wherein or in any part
of which any manufacturing process connected with the production of these goods is
being carried on or is ordinarily carried on;

(ee) "Fund" means the Consumer Welfare Fund established under section 12C;

(f) Manufacture "includes any process, -

(i) Incidental or ancillary to the completion of a manufactured product; and

(ii) which is specified in relation to any goods in the Section or Chapter notes of the
 Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) as amounting to
manufacture, 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;

(g) "Prescribed" means prescribed by rules made under this Act;

(h) "Sale" and "purchase", with their grammatical variations and cognate expressions,
mean 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;

(k) "wholesale dealer" means a person who buys or sells excisable goods wholesale for
the purpose of trade or manufacture, and includes a broker or commission agent who, in
addition to making contracts for the sale or purchase of excisable goods for others,
stocks such goods belonging to others as an agent for the purpose of sale.
3. DUTIES SPECIFIED IN THE FIRST SCHEDULE AND THE SECOND SCHEDULE TO
THE CENTRAL EXCISE TARIFF ACT, 1985 TO BE LEVIED 17.

(1) There shall be levied and collected in such manner as may be prescribed

(a) A duty of excise on all excisable goods which are produced or manufactured in India as,
and at the rates, set forth in the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986):

(b) A special duty of excise, in addition to the duty of excise specified in clause (a) above,
on excisable goods specified in the Second Schedule to the Central Excise Tariff Act, 1985
(5 of 1986) which are produced or manufacture in India, as, and at the rates set forth in the
said Second Schedule.

Provided that the duties of excise which shall be levied and collected on any excisable goods
which are produced or manufactured, -

(i) In a free trade zone and brought to any other place in India; or

(ii) By a hundred per cent export-oriented undertaking and allowed to be sold in India,

Shall be an amount equal to the aggregate of the duties of customs which would be leviable
under section 12 of the Customs Act, 1962 (52 of 1962), on like goods produced or
manufactured outside India if imported into India, and where the said duties of customs are
chargeable by reference to their value; the value of such excisable goods shall,
notwithstanding anything contained in any other provision of this Act, be determined in
accordance with the provisions of the Customs Act, 1962 (52 of 1962) and the Customs
Tariff Act, 1975 (51 of 1975).

Explanation 1 : Where in respect of any such like goods, any duty of customs leviable
under the said section 12 is leviable at different rates, then, such duty shall, for the
purposes of this proviso, be deemed to be leviable under the said section 12 at the highest
of those rates.

Explanation 2 : In this proviso, -

(i) "Free trade zone" means the Kandla Free Trade Zone and the Santa Cruz Electronics
Export Processing Zone and includes any other free trade zone which the Central
Government may, by notification in the Official Gazette, 21 specify in this behalf;
(ii) "Hundred per cent export-oriented undertaking" means an undertaking which has been
approved as a hundred per cent export-oriented undertaking by the Board appointed in this
behalf by the Central Government in exercise of the powers conferred by section 14 of the
Industries (Development and Regulation) Act, 1951 (65 of 1951), and the rules made under
that Act.

(1A) The provisions of sub-section (1) shall apply in respect of all excisable goods other
than salt which are produced or manufactured in India by, or on behalf of, Government, as
they apply in respect of goods which are not produced or manufactured by Government.

(2) The Central Government may, by notification in the Official Gazette, fix, for the purpose
of levying the said duties, tariff values of any articles enumerated, either specifically or
under general headings, in the First Schedule and the Second Schedule to the Central
Excise Tariff Act, 1985 (5 of 1986) as chargeable with duty ad valorem and may alter any
tariff values for the time being in force.

(3) Different tariff values may be fixed -

(a) For different classes or descriptions of the same excisable goods; or

(b) For excisable goods of the same class or description -

(i) Produced or manufactured by different classes of producers or manufacturers; or

(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.
4. VALUATION OF EXCISABLE GOODS FOR PURPOSES OF CHARGING OF DUTY OF
EXCISE.
(1) Where under this Act, the duty of excise is chargeable on any excisable goods with
reference to value, such value, shall, subject to the other provisions of this section, be
deemed to be -

(a) The normal price thereof, that is to say, the price at which such goods are
ordinarily sold by the assessee to a buyer in the course of wholesale trade for delivery at
the time and place of removal, where the buyer is not a related person and the price
is the sole consideration for the sale:

Provided that -

(i) Where, in accordance with the normal practice of the wholesale trade in such goods,
such goods are sold by the assessee at different prices to different classes of buyers (not
being related persons) each such price shall, subject to the existence of the other
circumstances specified in clause (a) be deemed to be the normal price of such goods in
relation to each such class of buyers;

(I) where the price at which such goods are ordinarily sold by the assessee is different for
different places of removal, each such price shall, subject to the existence of other
circumstances specified in clause (a), be deemed to be the normal price of such goods in
relation to each such place of removal;

(ii) Where such goods are sold by the assessee in the course of wholesale trade for delivery
at the time and place of removal at a price fixed under any law for the time being in force or
at a price, being the maximum, fixed under any such law, then, notwithstanding anything
contained in clause (iii) of this proviso, the price or the maximum price, as the case may be,
so fixed, shall, in relation to the goods so sold, be deemed to be the normal price thereof;

(iii) Where the assessee so arranges that the goods are generally not sold by him in the
course of wholesale trade except to or through a related person, the normal price of the
goods sold by the assessee to or through such related person shall be deemed to be the
price at which they are ordinarily sold by the related person in the course of wholesale
trade at the time of removal, to dealers (not being related persons) or where such goods
are not sold to such dealers, to dealers (being related persons), who sell such goods in
retail;

(b) Where the normal price of such goods is not ascertainable for the reason, that such
goods are not sold or for any other reason, the nearest ascertainable equivalent thereof
determined in such manner as may be prescribed.

(2) Where, in relation to any excisable goods the price thereof for delivery at the place of
removal is not known and the value thereof is determined with reference to the price for
delivery at a place other than the place of removal, the cost of transportation from the place
of removal to the place of delivery shall be excluded from such price.

(3) The provisions of this section shall not apply in respect of any excisable goods for which
a tariff value has been fixed under sub-section (2) of section 3.

(4) For the purposes of this section, -

(a) "Assessee" means the person who is liable to pay the duty of excise under this Act and
includes his agent;

(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 and, from where
such goods are removed;

(ba) "Time of removal", in respect of goods removed from the place of removal referred to
in sub-clause (iii) of clause (b), shall be deemed to be the time at which such goods are
cleared from the factory;

(c) "Related person" means a person who is so associated with the assessee that they have
interest, directly or indirectly, in the business of each other and includes a holding company,
a subsidiary company, a relative and a distributor of the assessee, and any sub-distributor
of such distributor.

Explanation : In this clause "holding company", "subsidiary company" and

"relative" have the same meanings as in the Companies Act, 1956 (1 of 1956);

(d) "Value", in relation to any excisable goods, -

(i) Where the goods are delivered at the time of removal in a packed condition, includes the
cost of such packing except the cost of the packing which is of a durable nature and is
returnable by the buyer to the assessee.
Explanation : In this sub-clause, "packing" means the wrapper, container, bobbin, pirn,
spool, reel or warp beam or any other thing in which or on which the excisable goods are
wrapped, contained or wound;

(ii) Does not include the amount of the duty of excise, sales tax and other taxes, if any,
payable on such goods and, subject to such rules as may be made, the trade discount (such
discount not being refundable on any account whatsoever) allowed in accordance with the
normal practice of the wholesale trade at the time of removal in respect of such goods sold
or contracted for sale.

Explanation : For the purposes of this sub-clause, the amount of the duty of excise payable
on any excisable goods shall be the sum total of -

(a) The effective duty of excise payable on such goods under this Act; and

(b) The aggregate of the effective duties of excise payable under other Central Acts, if any,
providing for the levy of duties of excise on such goods, and the effective duty of excise on
such goods under each Act referred to in clause (a) or clause (b) shall be, -

(i) In a case where a notification or order providing for any exemption (not being an
exemption for giving credit with respect to, or reduction of duty of excise under such Act on
such goods equal to, any duty of excise under such Act, or the additional duty under section
3 of the Customs Tariff Act, 1975 (51 of 1975), already paid on the raw material or
component parts used in the production or manufacture of such goods) from the duty of
excise under such Act is for the time being in force, the duty of excise computed with
reference to the rate specified in such Act, in respect of such goods as reduced so as to give
full and complete effect to such exemption; and

(ii) In any other case, the duty of excise computed with reference to the rate specified in
such Act in respect of such goods.

(e) "Wholesale trade" means sales to dealers, industrial consumers, Government, local
authorities and other buyers, who or which purchase their requirements otherwise than in
retail.

4A. VALUATION OF EXCISABLE GOODS WITH REFERENCE TO RETAIL SALE

PRICES.

(1) The Central Government may, by notification in the Official Gazette, specify any
goods, in relation to which it is required, under the provisions of the Standards of
Weights and Measures Act, 1976 (60 of 1976) or the rules made there under or under
any other law for the time being in force, to declare on the package thereof the retail
sale price of such goods, to which the provisions of sub-section (2) shall apply.

(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 4, 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 in the Official Gazette.

(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, sales tax and other
taxes, if any, payable on such goods.

Explanation 1 : For the purpose 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.

Explanation 2 : Where on 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 for the purposes of this section.
5A. POWER TO GRANT EXEMPTION FROM DUTY OF EXCISE.

(1) If the Central Government is satisfied that it is necessary in the public interest so
to do, it may, by notification in the Official Gazette 35 exempt generally either
absolutely or subject to such conditions (to be fulfilled before or after removal) as may
be specified in the notification, excisable goods of any specified description from the
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 free trade zone and brought to any other place in India; or

(ii) By a hundred per cent export-oriented undertaking and allowed to be sold in India.

Explanation : In this proviso, "free trade zone" and "hundred per cent export-oriented
undertaking" shall have the same meanings as in Explanation 2 to sub-section (1) of
section 3.

(2) 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.

(3) An exemption under sub-section (1) or sub-section (2) in respect of any excisable
goods from any part of the duty of excise leviable thereon (the duty of excise leviable
thereon being hereinafter 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 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 :

(1), and every order made under sub-rule (2), of rule 8 of the Central Excise Rules,
1944, and in force immediately before the commencement of the Customs and Central
Excises Laws (Amendment) Act, 1988 (29 of 1988) shall be deemed to have been
issued or made under the provisions of this section and shall continue to have the
same force and effect after such commencement until it is amended, varied, rescinded
or superseded under the provisions of this section.
(4) Every notification issued under sub-rule
(5) Every notification issued under sub-section (1) shall, -

(a) unless otherwise provided, come into force on the date of its issue by the Central
Government for publication in the Official Gazette;
(b) also be published and offered for sale on the date of its issue by the directorate of
Publicity and Public Relation, Customs and Central Excise, New Delhi, under the Central
Board of Excise and Customs Constituted under the Central Boards of Revenue Act,
1963 (54 of 1963).

(6) Notwithstanding anything contained in sub-section (5), where a notification comes

into force on a date later than the date of its issue, the same shall be published and
offered for sale by the said Directorate of Publicity and Public Relation on a date on or
before the date on which the said notification comes into force.

5. REMISSION OF DUTY ON GOODS FOUND DEFICIENT IN QUANTITY.

(1) The Central Government may, by rules made under this section, provide for remission
of duty of excise leviable on any excisable goods which due to any natural cause are found
to be deficient 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.
6. REGISTRATION OF CERTAIN PERSONS.
Any prescribed person who is engaged in -
(a) The production or manufacture or any process of production or manufacture of any
specified goods included in the First Schedule and the Second Schedule to the Central
Excise Tariff Act, 1985 (5 of 1986), or
(b) The wholesale purchase or sale (whether on his own account or as a broker or
commission agent) or the storage of any specified goods included in the the First Schedule
and the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986).
Shall get himself registered with the proper officer in such manner as may be prescribed

9. OFFENCES AND PENALTIES

(1) Whoever commits any of the following offences, namely : -
(a) Contravenes any of the provisions of section 8 or of a rule made under clause (iii) or
clause (xxvii) of sub-section (2) of section 37;
(b) Evades the payment of any duty payable under this Act;

(bb) Removes any excisable goods in contravention of any of the provisions of this Act or
any rules made there under or in any way concerns himself with such removal;

(bbb) Acquires possession of, or in any way concerns himself in transporting, 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
any rule made thereunder;

(bbbb) Contravenes any of the provisions of this Act or the rules made there under in
relation to credit of any duty allowed to be utilised towards payment of excise duty on final
products;

(c) Fails to supply any information which he is required by rules made under this Act to
supply, or (unless with a reasonable belief, the burden of proving which shall be upon him,
that the information supplied by him is true) supplies false information;

(d) Attempts to commit, or abets the commission of, any of the offences mentioned in
clauses (a) and (b) of this section;

Shall be punishable, -

(i) In the case of an offence relating to any excisable goods, the duty leviable thereon under
this Act exceeds one lakh of rupees, with imprisonment for a term which may extend to
seven years and with fine :

Provided that in the absence of special and adequate reasons to the contrary to be recorded
in the judgment of the Court such imprisonment shall not be for a term of less than six
months;

(ii) In any other case, with imprisonment for a term which may extend to three years 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 seven years and with fine :

Provided that in the absence of special and adequate reasons to the contrary to be recorded
in the judgment of the Court such imprisonment shall not be for a term of less than six
months.

(3) 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.

9AA. OFFENCES BY COMPANIES.

(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 for the conduct of the business of the company, as well as the 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.
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.

11B. CLAIM FOR REFUND OF DUTY.

(1) Any person claiming refund of any duty of excise may make an application for refund of
such duty to the Assistant Commissioner of Central Excise before the expiry of six months
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 section 12A) as the applicant may furnish to establish that the amount of duty
of excise in relation to which such refund is claimed was collected from, or paid by, him and
the incidence of such duty had not been passed on by him to any other person :

Provided that where an application for refund has been made before the commencement of
the Central Excises and Customs Laws (Amendment) Act, 1991, such application shall be
deemed to have been made under this sub-section as amended by the said Act and the
same shall be dealt with in accordance with the provisions of sub-section (2) substituted by
that Act :

Provided further that the limitation of six months shall not apply where any duty has been
paid under protest.

(2) If, on receipt of any such application, the Assistant Commissioner of Central Excise is
satisfied that the whole or any part of the duty of excise
paid by the applicant is refundable, he may make an order accordingly and the amount so
determined shall be credited to the Fund :

Provided that the amount of duty of excise as determined by the 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) 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) Unspent advance deposits lying in balance in the applicant's account current maintained
with the [ 67 Commissioner of Central Excise 67 ];

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

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

(f) The duty of excise borne by any other such class of applicants as the Central
Government may, by notification in the Official Gazette, 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 has not been passed
on by the persons concerned to any other person.

(3) Notwithstanding anything to the contrary contained in any judgment, decree, order or
direction of the Appellate Tribunal or any Court or in any other provision of this Act or the
rules made there under or any other law for the time being in force, no refund shall be
made except as provided in sub-section (2).

(4) Every notification under clause (f) of the first proviso to sub-section (2) shall be laid
before each House of Parliament, if it is sitting, as soon as may be after the issue of the
notification, and, if it is not sitting, 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 there under.

(5) For the removal of doubts, it is hereby declared that any notification issued under clause
(f) of the first proviso to sub-section (2), including any such notification approved or
modified under sub-section (4), may be rescinded by the Central Government at any time
by notification in the Official Gazette.

Explanation : For the purposes of this section, -

(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, -

(a) In the case of goods exported out of India where a refund of excise duty paid is
available in respect of the goods themselves or, as the case may be, the excisable materials
used in the manufacture of such goods, -

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

(b) 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;

(c) In the case of goods to which banderols are required to be affixed if removed for home
consumption but not so required when exported outside India, if returned to a factory after
having been removed from such factory for export out of India, the date of entry into the
factory;

(d) 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 the Official Gazette 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;

(e) In the case of a person, other than the manufacturer, the date of purchase of the goods
by such person;

(ea) In the case of goods which are exempt from payment of duty by a special order issued
under sub-section (2) of section 5A, the date of issue of such order;

(eb) In case where duty of excise is paid provisionally under this Act or the rules made
there under, the sub-section (2) of section 5A, the date of issue of such order;

(f) In any other case, the date of payment of duty.

14A. SPECIAL AUDIT IN CERTAIN CASES.

(1) If at any stage of enquiry, investigation or any other proceedings before him, any
Central Excise Officer not below the rank of an Assistant Commissioner of Central Excise,
having regard to the nature and complexity of the case and the interest of revenue, is of the
opinion that the value has not been correctly declared or determined by a manufacturer or
any person, he may, with the previous approval of the Chief Commissioner of Central
Excise, direct such manufacturer or such person to get the accounts of his factory, office,
depots, distributors or any other place, as may be specified by the said Central Excise
Officer, audited by a cost accountant, nominated by the Chief Commissioner of Central
Excise in this behalf.

(2) The cost accountant, so nominated shall, within the period specified by the Central
Excise Officer, submit a report of such audit duly signed and certified by him to the said
Central Excise Officer mentioning therein such other particulars as may be specified :

Provided that the Central Excise Officer may, on an application made to him in this behalf
by the manufacturer or the person and for any material and sufficient reason, extend the
said period by such further period or periods as he thinks fit; so, however, that the
aggregate of the period originally fixed and the period or periods so extended shall not, in
any case, exceed one hundred and eighty days from the date on which the direction under
sub-section (1) is received by the manufacturer or the person.

(3) The provisions of sub-section (1) shall have effect notwithstanding that the accounts of
the manufacturer or person aforesaid have been audited under any other law for the time
being in force or otherwise.

(4) The expenses of, and incidental to, such audit (including the remuneration of the cost
accountant) shall be determined by the Chief Commissioner of Central Excise (which
determination shall be final) and paid by the manufacturer or person and in default of such
payment, shall be recoverable from the manufacturer or the person in the manner provided
in section 11 for the recovery of sums due to the Government.

(5) The manufacturer or the person shall be given an opportunity of being heard in respect
of any material gathered on the basis of audit under sub-section (1) and proposed to be
utilised in any proceedings under this Act or rules made there under.

Explanation : For the purpose of this section, "cost accountant" shall have the meaning
assigned to it in clause (b) of sub-section (1) of section 2 of the Cost and Works
Accountants Act, 1959 (23 of 1959).

37A. DELEGATION OF POWERS.

The Central Government may, by notification in the Official Gazette 145 direct that
subject to such conditions, if any, as may be specified in the notification -

(a) Any power exercisable by the Board tinder this Act may be exercisable also by
Chief Commissioner of Central Excise or a Commissioner of Central Excise empowered
in this behalf by the Central Government;

(b) Any power exercisable by a Commissioner of Central Excise under this Act may be
exercisable also by a Deputy Commissioner of Central Excise or an Assistant
Commissioner of Central Excise empowered in this behalf by the Central Government;

(c) Any power exercisable by a Deputy Commissioner of Central Excise under this Act
may be exercisable also by an Assistant Commissioner of Central Excise empowered in
this behalf by the Central Government; and

(d) Any power exercisable by an Assistant Commissioner of Central Excise under this
Act may be exercisable also by a gazetted officer of Central Excise empowered in this
behalf by the Board.
12C. CONSUMER WELFARE FUND.

(1) There shall be established by the Central Government a fund, to be called the
Consumer Welfare Fund.
(2) There shall be credited to the Fund, in such manner as may be prescribed, -
(a) The amount of duty of excise referred to in sub-sec.(2) of section 11B or sub-sec.(2) of
section 11C or sub-section (2) of section 11D;

(b) The amount of duty of customs referred to in sub-sec. (2) of section 27 or sub-sec. (2)
of section 28A, or sub-section (2) of section 28B of the Customs Act, 1962 (52 of 1962);

(c) Any income from investment of the amount credited to the Fund and any other monies
received by the Central Government for the purposes of this Fund.
 11AC. PENALTY FOR SHORT-LEVY OR NON-LEVY OF DUTY IN CERTAIN CASES.

Where any duty of excise has not been levied or paid or has been short-levied or short-
paid or erroneously refunded by reasons of fraud, collusion or any willful mis-statement
or suppression of facts, or contravention of any of the provisions of this Act or of the
rules made there under with intent to evade payment of duty, the person who is liable
to pay duty as determined under sub-section (2) of section 11A, shall also be liable to
pay a penalty equal to the duty so determined :

Provided that where the duty determined to be payable is reduced or increased by the
Commissioner (Appeals), the Appellate Tribunal or, as the case may be, the court,
then, for the purposes of this section, the duty as reduced or increased, as the case
may be, shall be taken into account.
12D. UTILISATION OF THE FUND.

(1) Any money credited to the Fund shall be utilised by the Central Government for the
welfare of the consumers in accordance with such rules as that Government may make
in this behalf.

(2) The Central Government shall maintain or, if it thinks fit, specify the authority
which shall maintain, proper and separate account and other relevant records in
relation to the Fund in such form as may be prescribed in consultation with the
Comptroller and Auditor-General of India.
11BB. INTEREST ON DELAYED REFUNDS. -

If any duty ordered to be refunded under sub-section (2) of section 11B to any applicant is
not refunded within three months from the date of receipt of application under sub-section
(1) of that section, there shall be paid to that applicant interest at such rate, not below ten
per cent and not exceeding thirty per cent per annum as is for the time being fixed by the
Board, on such duty from the date immediately after the expiry of three months from the
date of receipt of such application till the date of refund of such duty :

Provided that where any duty ordered to be refunded under sub-section (2) of section 11B
in respect of an application under sub-section (1) of that section made before the date on
which the Finance Bill, 1995 receives the assent of the President, is not refunded within
three months from such date, there shall be paid to the applicant interest under this section
from the date immediately after three months from such date, till the date of refund of such
duty.

Explanation : Where any order of refund is made by the Commissioner (Appeals),

Appellate Tribunal or any court against an order of the Assistant Commissioner of Central
Excise, under sub-section (2) of section 11B, the order passed by the Commissioner
(Appeals), Appellate Tribunal or, as the case may be, by the court shall be deemed to be an
order passed under the said sub-section (2) for the purposes of this section.

12A. PRICE OF GOODS TO INDICATE THE AMOUNT OF DUTY PAID THEREON.

12E. POWERS OF CENTRAL EXCISE OFFICERS.

(1) A Central Excise Officer may exercise the powers and discharge the duties
conferred or imposed under this Act on any other Central Excise Officer who is
subordinate to him.
(2) Notwithstanding anything contained in sub-section (1), the Commissioner of
Central Excise (Appeals) shall not exercise the powers and discharge the duties
conferred or imposed on a Central Excise Officer other than those specified in section
14 or Chapter VIA.
Notwithstanding anything contained in this Act or any other law for the time being in force,
every person who is liable to pay duty of excise on any goods shall, at the time of clearance
of the goods, prominently indicate in all the documents relating to assessment, sales
invoice, and other like documents, the amount of such duty which will form part of the price
at which such goods are to be sold

13. POWER TO ARREST.

(1) Any Central Excise Officer duly empowered 82a by the Central Government in this
behalf may arrest any person whom he has reason to believe to be liable to
punishment under this Act.

(2) Any person accused or reasonably suspected of committing an offence under this
Act or any rules made there under, who on demand of any officer duly empowered 82a
by the Central Government in this behalf, refuses to give his name and residence, or
who gives a name or residence which such officer has reason to believe to be false,
may be arrested by such officer in order that his name and residence may be
ascertained.
17. PUNISHMENT FOR CONNIVANCE AT OFFENCES.

Any owner or occupier of land, or any agent of such owner or occupier in charge of the
management of that land, who willfully connives at any offence against the provisions
of this Act or of any rules made there under shall, for every such offence, be
punishable with imprisonment for a term which may extend to six months, or with fine
which may extend to five hundred rupees, or with both.
25. EXCEPTIONS.

Nothing in section 24 applies to -

(a) Any excisable goods covered by a permit granted under rules made under this Act;

(b) Any excisable goods covered by a pass granted by any officer whom the Central
Board of Excise and Customs constituted under the Central Boards of Revenue Act,
1963 (54 of 1963) may appoint in this behalf;

(c) Such amount of excisable goods carried on board any vessel for consumption by
her crew or by the passengers or animals (if any) on board as the Central Board of
Excise and Customs constituted under the Central Boards of Revenue Act, 1963 (54 of
1963) may from time to time exempt from the operation of section 24.