79.
Insertion of new section 3A.- After section 3 of
the Central Excise Act, the following section shall be inserted,
namely:-
Power of Central Government to charge excise
duty on the basis of capacity of production in respect of
notified goods. –
'3A. (1) Notwithstanding anything contained
in section 3, where the Central Government, having regard
to the nature of the process of manufacture or production
of excisable goods of any specified description, the extent
of evasion of duty in regard to such goods or such other factors
as may be relevant, is of the opinion that it is necessary
to safeguard the interest of revenue, specify, by notification
in the Official Gazette, such goods as notified goods and
there shall be levied and collected duty of excise on such
goods in accordance with the provisions of this section.
(2) Where a notification is issued under
sub-section (1), the Central Government may, by rules,-
(a) provide the manner 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 and such annual
capacity 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 of Central Excise
and such annual capacity of production shall be deemed to
be the annual production of such goods by such factory:
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 in the Official
Gazette, 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 calculated on a proportionate basis shall be abated in
respect of such period if the manufacturer of such goods fulfils
such conditions as may be prescribed.
(4) The provisions of this section shall
not apply to goods produced or manufactured, by a hundred
per cent. export-oriented undertaking and brought to any other
place in India.
Explanation 1.-For the
removal of doubts, it is hereby clarified that for the purposes
of section 3 of the Customs Tariff Act, 1975, the duty of
excise leviable on the notified goods shall be deemed to be
the duty of excise leviable on such goods under the First
Schedule and the Second Schedule to the Central Excise Tariff
Act, 1985, read with any notification for the time being in
force.
Explanation 2.-For the
purposes of this section, the expression "hundred per cent.
export-oriented undertaking" shall have the meaning assigned
to it in section 3.'. |
