MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi

Dated: May 10, 2013

The following Act of Parliament received the assent of the President on the 10th may, 2013, and is hereby published for general information:-

THE FINANCE ACT, 2013

No.17 of 2013

An Act to give effect to the financial proposals of the Central Government for the financial year 2013-2014.

Be it enacted by Parliament in the Sixty-fourth Year of the Republic of india as follows:-

CHAPTER I

Preliminary

Short title and commencement.

1. (1) This Act may be called the Finance Act, 2013.

(2) Save as otherwise provided in this Act, section 2 to 63 shall be deemed to have come into force on the 1st day of April, 2013.

CHAPTER IV

Indirect taxes

Customs

Amendment of section 11.

64. In the Customs Act, 1962 (hereinafter referred to as the Customs Act), in section 11, in sub-section (2), in clause (n), for the words "and copyrights", the words ", copyrights, designs and geographical indications" shall be substituted. (52 of 1962)

Amendment of section 27.

65. In section 27 of the Customs Act, in sub-section (l), after the second proviso, the following proviso shall be inserted, namely:-

"Provided also that where the amount of refund claimed is less than rupees one hundred, the same shall not be refunded.".

Amendment of section 28.

66. in section 28 of the Customs Act, in sub-section (l), the following proviso shall be inserted, namely:-

"Provided that the proper officer shall not serve such show cause notice, where the amount involved is less than rupees one hundred.".

Amendment of section 28BA.

67. In section 28BA of the Customs Act, in sub-section (l), for the words, brackets and figures "sub-section (l) of section 28", the words, brackets and figures "sub-section (l) or sub-section (4) of section 28" shall be substituted.

Amendment of section 28E.

68. In section 28E of the Customs Act, for clause (a), the following clause shall be substituted, namely:-

'(a) "activity" means import or export and includes any new business of import or export proposed to be undertaken by the existing importer or exporter, as the case may be;'.

Amendment of section 29.

69. In section 29 of the Customs Act, in sub-section (l), after the words "as the case may be", the words ", unless permitted by the Board" shall be inserted.

Amendment of section 30.

70. In section 30 of the Customs Act, in sub-section (l),-

(a) for the words "an import manifest prior to the arrival", the words "an import manifest by presenting electronically prior to the arrival" shall be substituted;

(b) the following proviso shall be inserted, namely:-

"Provided that the Commissioner of Customs may, in cases where it is not feasible to deliver import manifest by presenting electronically, allow the same to be delivered in any other manner.".

Amendment of section 41.

71. In section 41 of the Customs Act, in sub-section (l),-

(a) for the words "export manifest", the words "export manifest by presenting electronically" shall be substituted;

(b) the following proviso shall be inserted, namely:-

"Provided that the Commissioner of Customs may, in cases where it is not feasible to deliver the export manifest by presenting electronically, allow the same to be delivered in any other manner.".

Amendment of section 47.

72. In section 47 of the Customs Act, in sub-section (2), for the words "five days", the words "two days" shall be substituted.

Amendment of section 49.

73. In section 49 of the Customs Act,-

(a) for the words "be permitted to be stored in a public warehouse", the words "be permitted to be stored for a period not exceeding thirty days in a public warehouse" shall be substituted;

(b) the following proviso shall be inserted, namely:-

"Provided that the Commissioner of Customs may extend the period of storage for a further period not exceeding thirty days at a time.".

Amendment of section 69.

74. In section 69 of the Customs Act, in sub-section (l), for clause (a), the following clause shall be substituted, namely:-

"(a) a shipping bill or a bill of export in the prescribed form or a label or declaration accompanying the goods as referred to in section 82 has been presented in respect of such goods.".

Amendment of section 104.

75. In section 104 of the Customs Act, for sub-section (6), the following sub-sections shall be substituted, namely:-

"(6) Notwithstanding anything contained in the Code of Criminal Procedure. 1973, an offence punishable under section 135 relating to- (2 of 1974)

(a) evasion or attempted evasion of duty exceeding fifty lakh rupees; or

(b) prohibited goods notified under section 11 which are also notified under sub-clause (C) of clause (i) of sub-section (l) of section 135; or

(c) import or export of any goods which have not been declared in accordance with the provisions of this Act and the market price of which exceeds one crore rupees; or

(d) fraudulently availing of or attempt to avail of drawback or any exemption from duty provided under this Act, if the amount of drawback or exemption from duty exceeds fifty lakh rupees,

shall be non-bailable.

(7) Save as otherwise provided in sub-section (6), all other offences under this Act shall be bailable.".

Amendment of section 129B.

76. In section 129B of the Customs Act, in sub-section (2A), after the second proviso, the following proviso shall be inserted, namely:-

"Provided also that where such appeal is not disposed of within the period specified in the first proviso, the Appellate Tribunal may, on an application made in this behalf by a party and on being satisfied that the delay in disposing of the appeal is not attributable to such party, extend the period of stay to such further period, as it thinks fit, not exceeding one hundred and eighty-five days, and in case the appeal is not so disposed of within the total period of three hundred and sixty-five days from the date of order referred to in the first proviso, the stay order shall, on the expiry of the said period, stand vacated.".

Amendment of section 129C.

77. In section 129C of the Customs Act, in sub-section (4), for the words "ten lakh rupees", the words "fifty lakh rupees" shall be substituted.

Amendment of section 135.

78. In section 135 of the Customs Act, in sub-section (l), in clause (i), in sub-clauses (B) and (D), for the words "thirty lakh", the words "fifty lakh" shall respectively be substituted.

Amendment of section 142.

79. In section 142 of the Customs Act, in sub-section (l), after the proviso, the following clause shall be inserted, namely:-

"(d) (i) the proper officer may, by a notice in writing, require any other person from whom money is due to such person 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 credit of the Central Government either forthwith upon the money becoming due or being held, or at 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 this section 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 or any other document for the purpose of any entry, endorsement or the like being made before the payment is made, notwithstanding any rule, practice or requirement to the contrary;

(iii) in case the person to whom a notice under this section 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 Chapter shall follow.".

Omission of section 143A.

80. Section 143A of the Customs Act shall be omitted.

Amendment of section 144.

81. In section 144 of the Customs Act, in sub-section (3), the words", if such duty amounts to five rupees or more" shall be omitted.

Substitution of new section for section 146.

82. For section 146 of the Customs Act, the following section shall be substituted, namely:-

Licence for customs brokers.

"146. (1) No person shall carry on business as a customs broker relating to the entry or departure of a conveyance or the import or export of goods at any customs station unless such person holds a licence granted in this behalf in accordance with the regulations.

(2) The Board may make regulations for the purpose of carrying out the provisions of this section and, in particular, such regulations may provide for-

(a) the authority by which a licence may be granted under this section and the period of validity of such licence;

(b) the form of the licence and the fees payable therefor;

(c) the qualifications of persons who may apply for a licence and the qualifications of persons to be employed by a licensee to assist him in his work as a customs broker;

(d) the manner of conducting the examination;

(e) the restrictions and conditions (including the furnishing of security by the licensee) subject to which a licence may be granted;

(f) the circumstances in which a licence may be suspended or revoked, and

(g) the appeals, if any, against an order of suspension or revocation of a licence, and the period within which such appeal may be filed.".

Amendment of section 146A.

83. In section 146A of the Customs Act,-

(a) in sub-section (2), in clause (b), for the words "customs house agent" the words "customs broker" shall be substituted;

(b) in sub-section (4),-

(i) for clause (b), the following clause shall be substituted, namely:-

"(b) who is convicted of an offence connected with any proceeding under this Act, the Central Excise Act, 1944, the Gold (Control) Act 1968 or the Finance Act, 1994; or"; (1 of 1944) (45 of 1968) (32 of 1994)

(ii) for the words, figures and brackets "Central Excises and Salt Act 1944 or the Gold (Control) Act, 1968", the words, figures and brackets "Central Excise Act, 1944 or the Gold (Control) Act, 1968 or the Finance Act 1994" shall be substituted. (1 of 1944) (45 of 1968) (32 of 1994)

Amendment of section 147.

84 In section 147 of the Customs Act, in sub-section (3), after the words "for such purposes , the words "including liability therefor under this Act" shall be inserted.

Amendment of notification issued under sub-section (l) of section 25 of Customs Act retrospectively.

85. (1) The notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 153(E), dated the 1st March, 2011, issued under sub-section (l) of section 25 of the Customs Act, 1962 shall stand amended and shall be deemed to have been amended retrospectively, in the manner specified in column (2) of the Second Schedule, on and from the date specified in column (3) of that Schedule. (52 of 1962)

(2) For the purposes of sub-section (l), the Central Government shall have and shall be deemed to have the power to amend the notification referred to in sub-section (l) with retrospective effect as if the Central Government had the power to amend the said notification under sub-section (l) of section 25 of the Customs Act, 1962 retrospectively, at all material times. (52 of 1962)

(3) The refund shall be made of all such duty of customs which has been collected but which would not have been so collected, had the notification referred to in sub-section (l), been in force at all material times.

(4) Notwithstanding anything contained in the Customs Act, 1962, an application for the claim of refund of duty of customs shall be made within six months from the date on which the Finance Bill, 2013 receives the assent of the President. (52 of 1962)

Explanation.- For the removal of doubts, it is hereby declared that the provisions of section 27 of the Customs Act, 1962, shall be applicable in case of refunds under this section. (52 of 1962)

Customs Tariff

Amendment of First Schedule.

86. In the Customs Tariff Act, 1975 (hereinafter referred to as the Customs Tariff Act), the First Schedule shall be amended in the manner specified in the Third Schedule.(51 of 1975)

Amendment of Second Schedule.

87. In the Customs Tariff Act -

(a) in the Second Schedule, against Sl. No. 43, for the entry in column (2), the entry "7210, 7212" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of March, 2011;

(b) the Second Schedule shall be amended in the manner specified in the Fourth Schedule.

Excise

Amendment of section 9.

88. In the Central Excise Act, 1944 (hereinafter referred to as the Central Excise Act), in section 9, in sub-section (l), in clause (i), for the words "thirty lakh", the words"fifty lakh" shall be substituted. (1 of 1944)

Amendment of section 9A.

89. In section 9A of the Central Excise Act, for sub-section (l), the following sub-sections shall be substituted, namely:-

"(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, offences under section 9, except the offences referred to in sub-section (lA), shall be non-cognizable within the meaning of that Code. (2 of 1974)

(1A) The offences relating to excisable goods where the duty leviable thereon under this Act exceeds fifty lakh rupees and punishable under clause (b) or clause (bbbb) of sub-section (l) of section 9, shall be cognizable and non-bailable.".

Amendment of section 11.

90. Section 11 of the Central Excise Act shall be renumbered as sub-section (l) thereof, and in sub-section (l) as so renumbered,-

(a) for the portion beginning with the words "may deduct" and ending with the words "or may recover the amount", the following shall be substituted, namely:-

"may deduct or require any other Central Excise Officer or a proper officer referred to in section 142 of the Customs Act, 1962 to deduct the amount so payable from any money owing to the person from whom such sums may be recoverable or due which may be in his hands or under his disposal or control or may be in the hands or under disposal or control of such other officer, or may recover the amount"; (52 of 1962)

(b) after sub-section (l) as so renumbered, the following sub-section shall be inserted, namely:-

"(2) (i) The Central Excise Officer may, by a notice in writing, require any other person from whom money is due to such person, 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 credit of the Central Government either forthwith upon the money becoming due or being held, or at 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 a notice is issued under this sub-section 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 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 a case where the person to whom a notice under this sub-section has been issued, fails to make the payment in pursuance thereof to the Central Government, he shall be deemed to be a person from whom duty and any other sums of any kind payable to the Central Government under any of the provisions of this Act or the rules made thereunder have become due, in respect of the amount specified in the notice and all the consequences under this Act shall follow.".

Amendment of section 11A.

91. In section 11A of the Central Excise Act, after sub-section (7), the following sub-section shall be inserted, namely:-

"(7A) Notwithstanding anything contained in sub-section (l) or sub-section (i) or sub-section (4) or sub-section (5), 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 duty of central excise not levied or paid or short-levied or short-paid or erroneously refunded for the subsequent period, on the person chargeable to duty of central excise, then, service of such statement shall be deemed to be service of notice on such person under the aforesaid sub-section (l) or sub-section (3) or sub-section (4) or sub-section (5), 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.".

Amendment of section 11DDA.

92. In section 11DDA of the Central Excise Act, in sub-section (l), the words, brackets and figure "sub-section (l) of shall be omitted.

Amendment of section 20.

93. In section 20 of the Central Excise Act, for the words "shall either admit him", the words "shall, where the offence is non-cognizable, either admit him" shall be substituted.

Amendment of section 21.

94. In section 21 of the Central Excise Act, in sub-section (2), in the proviso,-

(i) in clause (a), for the words "shall either admit him", the words "shall, where the offence is non-cognizable, either admit him" shall be substituted;

(ii) in clause (b), alter the words "against the accused person", the words "in respect of offence which is non-cognizable" shall be inserted.

Amendment of section 23A.

95. In section 23A of the Central Excise Act, for clause (a), the following clause shall be substituted, namely:-

'(a) "activity" means production or manufacture of goods and includes any new business of production or manufacture proposed to be undertaken by the existing producer or manufacturer, as the case may be;'.

Amendment of section 23C.

96. In section 23C of the Central Excise Act, in sub-section (2), in clause (e), for the words "admissibility of credit of excise duty", the words "admissibility of credit of service tax paid or deemed to have been paid on input service or excise duty" shall be substituted.

Amendment of section 23F.

97. In section 23F of the Central Excise Act, in sub-section (l), for the word, figures and letter "section 28-I", the word, figures and letter "section 23D" shall be substituted.

Amendment of section 35C.

98. In section 35C of the Central Excise Act, in sub-section (2A), after the second proviso, the following proviso shall be inserted, namely:-

"Provided also that where such appeal is not disposed of within the period specified in the first proviso, the Appellate Tribunal may, on an application made in this behalf by a party and on being satisfied that the delay in disposing of the appeal is not attributable to such party, extend the period of stay to such further period, as it thinks fit, not exceeding one hundred and eighty-five days, and in case the appeal is not so disposed of within the total period of three hundred and sixty-five days from the date of order referred to in the first proviso, the stay order shall, on the expiry of the said period, stand vacated.".

Amendment of section 35D.

99. In section 35D of the Central Excise Act, in sub-section (3), for the words "ten lakh rupees", the words "fifty lakh rupees" shall be substituted.

Amendment of section 37C.

100. In section 37C of the Central Excise Act,-

(i) in sub-section (l), in clause (a), after the words "registered post with acknowledgement due", the words and figures "or by speed post with proof of delivery or by courier approved by the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963" shall be inserted; (54 of 1963)

(ii) in sub-section (2), after the words "delivered by post", the words, brackets and figure "or courier referred to in sub-section (l)" shall be inserted.

Amendment of Third Schedule.

101. The Third Schedule to the Central Excise Act shall be amended in the manner specified in the Fifth Schedule.

Central Excise Tariff

Amendment of First Schedule.

102. In the Central Excise Tariff Act, 1985 (hereinafter referred to as the Central Excise Tariff Act), the First Schedule shall be amended in the manner specified in the Sixth Schedule. (5 of 1986)

CHAPTER-V

Service tax

Amendment of Act 32 of 1994.

103. In the Finance Act, 1994,-

(A) in section 65B,-

(i) in clause (II),-

(a) in sub-clause (i), after the words "National Council for Vocational Training", the words "or State Council for Vocational Training" shall be inserted;

(b) in sub-clause (ii), the word "or" occurring at the end shall be omitted;

(c) sub-clause (iii) shall be omitted;

(ii) in clause (40), after the words and figures "the Central Excise Act, 1944", the words, brackets and figures "or the Medicinal and Toilet Preparations (Excise Duties) Act, 1955" shall be inserted; (1 of 1944) (16 of 1955)

(B) in section 66B, the Explanation shall be omitted;

(C) after section 66B, the following section shall be inserted, namely:-

Reference to section 66 to be construed as reference to section 66B.

"66BA. (1) For the purpose of levy and collection of service tax, any reference to section 66 in the Finance Act, 1994 or any other Act for the time being in force, shall be construed as reference to section 66B thereof. (32 of 1994)

(2) The provisions of this section shall be deemed to have come into force on the 1st day of July, 2012.";

(D) in section 66D, in clause (d), in sub-clause (i), the word "seed" shall be omitted;

(E) in section 73, after sub-section (2). the following sub-section shall be inserted, namely:-

"(2A) Where any appellate authority or tribunal or court concludes that the notice issued under the proviso to sub-section (l) is not sustainable for the reason that the charge of,-

(a) fraud; or

(b) collusion; or

(c) wilful mis-statement; or

(d) suppression of facts; or

(e) contravention of any of the provisions of this Chapter or the rules made thereunder with intent to evade payment of service tax,

has not been established against the person chargeable with the service tax, to whom the notice was issued, the Central Excise Officer shall determine the service tax payable by such person for the period of eighteen months, as if the notice was issued for the offences for which limitation of eighteen months applies under sub-section (l).";

(F) in section 77, in sub-section (l), for clause (a), the following clause shall be substituted, namely:-

"(a) who is liable to pay service tax or required to take registration, fails to take registration in accordance with the provisions of section 69 or rules made under this Chapter shall be liable to a penalty which may extend to ten thousand rupees;";

(G) after section 78, the following section shall be inserted, namely:-

Penalty for offences by director, etc., of company.

"78A. Where a company has committed any of the following contraventions, namely:-

(a) evasion of service tax; or

(b) issuance of invoice, bill or, as the case may be, a challan without provision of taxable service in violation of the rules made under the provisions of this Chapter; or

(c) availment and utilisation of credit of taxes or duty without actual receipt of taxable service or excisable goods either fully or partially in violation of the rules made under the provisions of this Chapter; or

(d) failure to pay any amount collected as service tax to the credit of the Central Government beyond a period of six months from the date on which such payment becomes due,

then any director, manager, secretary or other officer of such company, who at the time of such contravention was in charge of, and was responsible to, the company for the conduct of business of such company and was knowingly concerned with such contravention, shall be liable to a penalty which may extend to one lakh rupees.";

(H) in section 83, for the figure and letter "9A", the words, brackets, figures and letter "sub-section (2) of section 9A" shall be substituted;

(I) in section 86, in sub-section (5), for the word, brackets and figure "subsection (3)", the words, brackets and figures "sub-section (l) or sub-section (3)" shall be substituted;

(J) in section 89,-

(a) in sub-section (l), for clauses (i) and (ii), the following clauses shall be substituted, namely:-

"(i) in the case of an offence specified in clause (a), (b) or (c) where the amount exceeds fifty lakh rupees, with imprisonment for a term which may extend to three years;

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 the case of the offence specified in clause (d), where the amount exceeds fifty lakh rupees, with imprisonment for a term which may extend to seven years:

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;

(iii) in the case of any other offences, with imprisonment for a term, which may extend to one year.";

(b) for sub-section (2), the following sub-section shall be substituted, namely:-

"(2) If any person is convicted of an offence punishable under-

(a) clause (i) or clause (iii), then, he shall be punished for the second and for every subsequent offence with imprisonment for a term which may extend to three years;

(b) clause (ii), then, he shall be punished for the second and for every subsequent offence with imprisonment for a term which may extend to seven years.";

(K) after section 89, the following sections shall be inserted, namely:-

Cognizance of offences

"90. (1) An offence under clause (ii) of sub-section (l) of section 89 shall be cognizable.

(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, all offences, except the offences specified in sub-section (l), shall be non-cognizable and bailable. (2 of 1974)

Power to arrest.

91. (1) If the Commissioner of Central Excise has reason to believe that any person has committed an offence specified in clause (i) of clause (ii) of sub-section (l) of section 89, he may, by general or special order, authorise any officer of Central Excise, not below the rank of Superintendent of Central Excise, to arrest such person.

(2) Where a person is arrested for any cognizable offence, every officer authorised to arrest a person shall, inform such person of the grounds of arrest and produce him before a magistrate within twenty-four hours.

(3) In the case of a non-cognizable and bailable offence, the Assistant Commissioner, or the Deputy Commissioner, as the case may be, shall, for the purpose of releasing an arrested person on bail or otherwise, have the same powers and be subject to the same provisions as an officer in charge of a police station has, and is subject to, under section 436 of the Code of Criminal Procedure, 1973. (2 of 1974)

(4) All arrests under this section shall be carried out in accordance with the provisions of the Code of Criminal Procedure, 1973 relating to arrests.";(2 of 1974)

(L) in section 95, after sub-section (l-l), the following sub-section shall be inserted, namely:-

"(1J) If any difficulty arises in giving effect to section 103 of the Finance Act, 2013, in so far as it relates to amendments made by the Finance Act, 2013 in Chapter V of the Finance Act, 1994, the Central Government may, by an order published in the Official Gazette, not inconsistent with the provisions of this Chapter, remove the difficulty: (32 of 1994)

Provided that no such order shall be made after the expiry of a period of one year from the date on which the Finance Bill, 2013 receives the assent of the President.";

(M) after section 98, the following section shall be inserted, namely:-

Special provision for taxable services provided by Indian Railways.

"99. (1) Notwithstanding anything contained in section 66, as it stood prior to the 1st day of July, 2012, or in section 66B, no service tax shall be levied or collected in respect of taxable services provided by the Indian Railways during the period prior to the 1st day of October, 2012.

(2) No refund shall be made of service tax paid in respect of taxable services provided by the Indian Railways during the said period prior to the 1st day of October, 2012.".

CHAPTER VI

Service Tax Voluntary Compliance Encouragement Scheme, 2013

Short title.

104. This Scheme may be called the Service Tax Voluntary Compliance Encouragement Scheme, 2013.

Definitions.

105. (1) In this Scheme, unless the context otherwise requires,-

(a) "Chapter" means Chapter V of the Finance Act, 1994; (32 of 1994)

(b) "declarant" means any person who makes a declaration under sub-section (l) of section 107;

(c) "designated authority" means an officer not below the rank of Assistant Commissioner of Central Excise as notified by the Commissioner of Central Excise for the purposes of this Scheme;

(d) "prescribed" means prescribed by rules made under this Scheme;

(e) "tax dues" means the service tax due or payable under the Chapter or any other amount due or payable under section 73A thereof, for the period beginning from the 1st day of October, 2007 and ending on the 31st day of December, 2012 including a cess leviable thereon under any other Act for the time being in force, but not paid as on the 1st day of March, 2013.

(2) Words and expressions used herein and not defined but defined in the Chapter or the rules made thereunder shall have the meanings respectively assigned to them in the Chapter or the rules made thereunder.

Person who may make declaration of tax dues.

106. (1) Any person may declare his tax dues in respect of which no notice or an order of determination under section 72 or section 73 or section 73A of the Chapter has been issued or made before the 1st day of March, 2013:

Provided that any person who has furnished return under section 70 of the Chapter and disclosed his true liability, but has not paid the disclosed amount of service tax or any part thereof, shall not be eligible to make declaration for the period covered by the said return:

Provided further that where a notice or an order of determination has been issued to a person in respect of any period on any issue, no declaration shall be made of his tax dues on the same issue for any subsequent period.

(2) Where a declaration has been made by a person against whom,-

(a) an inquiry or investigation in respect of a service tax not levied or not paid or short-levied or short-paid has been initiated by way of-

(i) search of premises under section 82 of the Chapter; or

(ii) issuance of summons under section 14 of the Central Excise Act, 1944, as made applicable to the Chapter under section 83 thereof: or(1 of 1944)

(iii) requiring production of accounts, documents or other evidence under the Chapter or the rules made thereunder; or

(b) an audit has been initiated,

and such inquiry, investigation or audit is pending as on the 1st day of March, 2013, then, the designated authority shall, by an order, and for reasons to be recorded in writing, reject such declaration.

Procedure for making declaration and payment of tax dues.

107. (1) Subject to the provisions of this Scheme, a person may make a declaration to the designated authority on or before the 31st day of December, 2013 in such form and in such manner as may be prescribed.

(2) The designated authority shall acknowledge the declaration in such form and in such manner as may be prescribed. 

(3) The declarant shall, on or before the 31st day of December, 2013, pay not less than fifty per cent, of the tax dues so declared under sub-section (l) and submit proof of such payment to the designated authority.

(4) The tax dues or part thereof remaining to be paid after the payment made under sub-section (3) shall be paid by the declarant on or before the 30th day of June, 2014:

Provided that where the declarant fails to pay said tax dues or part thereof on or before the said date, he shall pay the same on or before the 31st day of December, 2014 along with interest thereon, at such rate as is fixed under section 75 or, as the case may be, section 73B of the Chapter for the period of delay starting from the 1st day of July, 2014.

(5) Notwithstanding anything contained in sub-section (3) and sub-section (4), any service tax which becomes due or payable by the declarant for the month of January, 2013 and subsequent months shall be paid by him in accordance with the provisions of the Chapter and accordingly, interest for delay in payment thereof, shall also be payable under the Chapter.

(6) The declarant shall furnish to the designated authority details of payment made from time to time under this Scheme along with a copy of acknowledgement issued to him under sub-section (2).

(7) On furnishing the details of full payment of declared tax dues and the interest, if any, payable under the proviso to sub-section (4), the designated authority shall issue an acknowledgement of discharge of such dues to the declarant in such form and in such manner as may be prescribed.

Immunity from penalty, interest and other proceeding.

108. (1) Notwithstanding anything contained in any provision of the Chapter, the declarant, upon payment of the tax dues declared by him under sub-section (l) of section 107 and the interest payable under the proviso to sub-section (4) thereof, shall get immunity from penalty, interest or any other proceeding under the Chapter.

(2) Subject to the provisions of section 111, a declaration made under sub-section (l) of section 107 shall become conclusive upon issuance of acknowledgement of discharge under sub-section (7) of section 107 and no matter shall be reopened thereafter in any proceedings under the Chapter before any authority or court relating to the period covered by such declaration.

No refund of amount paid under the Scheme.

109. Any amount paid in pursuance of a declaration made under sub-section (l) of section 107 shall not be refundable under any circumstances.

Tax dues declared but not paid.

110. Where the declarant fails to pay the tax dues, either fully or in part, as declared by him, such dues along with interest thereon shall be recovered under the provisions of section 87 of the Chapter.

Failure to make true declaration.

111. (1) Where the Commissioner of Central Excise has reasons to believe that the declaration made by a declarant under this Scheme was substantially false, he may, for reasons to be recorded in writing, serve notice on the declarant in respect of such declaration requiring him to show cause why he should not pay the tax dues not paid or short-paid.

(2) No action shall be taken under sub-section (l) after the expiry of one year from the date of declaration.

(3) The show cause notice issued under sub-section (l) shall be deemed to have been issued under section 73, or as the case may be, under section 73A of the Chapter and the provisions of the Chapter shall accordingly apply.

Removal of doubts.

112. For the removal of doubts, it is hereby declared that nothing contained in this Scheme shall be construed as conferring any benefit, concession or immunity on the declarant other than the benefit, concession or immunity granted under section 108.

Power to remove difficulties.

113. (1) If any difficulty arises in giving effect to the provisions of this Scheme, the Central Government may, by order, not inconsistent with the provisions of this Scheme, remove the difficulty:

Provided that no such order shall be made after the expiry of a period of two years from the date on which the provisions of this Scheme come into force.

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

Power to make rules.

114. (1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Scheme.

(2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-

(a) the form and the manner in which a declaration may be made under subsection (l) of section 107;

(b) the form and the manner of acknowledging the declaration under sub-section (2) of section 107;

(c) the form and the manner of issuing the acknowledgement of discharge of tax dues under sub-section (7) of section 107;

(d) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, by rules.

(3) The Central Government shall cause every rule made under this Scheme to be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

CHAPTER VIII

MISCELLANEOUS

Amendment of Act 23 of 2004.

135. In the Finance (No. 2) Act, 2004, in section 98, in the Table, with effect from the 1st day of June, 2013 -

(i) against Sl. No. 1, under column (2) relating to taxable securities transaction,-

(A) the words "or a unit of an equity oriented fund," shall be omitted;

(B) in item (b), the words "or unit", at both the places where they occur, shall be omitted;

(ii) against Sl. No. 2, under column (2) relating to taxable securities transaction,-

(A) the words "or a unit of an equity oriented fund," shall be omitted;

(B) in item (b), the words "or unit", at both the places where they occur, shall be omitted;

(iii) after serial number 2 and the entries relating thereto, the following serial number and entries shall be inserted, namely:-

(iv) against Sl. No. 4, in item (c), under column (3) relating to rate, for the figures "0.017", the figures "0.01" shall be substituted;

(v) against Sl. No. 5, under column (3) relating to rate, for the figures "0.25", the figures "0.001" shall be substituted.

THE SECOND SCHEDULE

(See section 85)

THE THIRD SCHEDULE

(See section 86)

In the First Schedule to the Customs Tariff Act,-

(1), in Chapter 3,-

(a) in tariff item 0302 24 00, for the entry in column (2), the entry "Turbots (Psetta maxima)" shall be substituted;

(b) in tariff item 0303 34 00, for the entry in column (2), the entry "Turbots (Psetta maxima)" shall be substituted;

(2) in Chapter 8,—

(a) in tariff item 0801 32 10, for the entry in column (4), the entry "70%" shall be substituted;

(b) in tariff item 0801 32 20, for the entry in column (4), the entry "70%" shall be substituted;

(c) in tariff item 0801 32 90, forthe entry in column (4), the entry "70%" shall be substituted;

(3) in Chapter 15,tariffitem 1517 90 20 and the entries relating thereto shall be omitted;

(4) in Chapter 48,-

(a) the Note 13 shall be omitted;

(b) after the Sub-heading Note 7, the following shall be inserted, namely:-

"Supplementary Notes:

Notwithstanding anything contained in Note 12, if paper and paper products of heading 4811, 4816 or 4820 are printed with any character, name, logo, motif or format, they shall remain classified under the respective headings as long as such products are intended to be used for further printing or writing.";

(5) in Chapter 87, for the entry in column (4) occurring against all the tariff items of heading 8703, the entry "125%" shall be substituted;

(6) in Chapter 89, for the entry in column (4) occurring against all the tariff items of heading 8903, the entry "25% " shall be substituted.

THE FOURTH SCHEDULE

(See section 87(b)]

In the Second Schedule to the Customs Tariff Act,-

(1) after Sl. No.9 and the entries relating thereto, the following Sl. No. and entries shall be inserted, namely:-

(2) after Sl. No.23 and the entries relating thereto, the following Sl. No. and entries shall be inserted namely:-

(3) after Sl. No. 24 and the entries relating thereto, the following Sl. No. and entries shall be inserted. namely:-

THE FIFTH SCHEDULE

(See section 101)

In the Third Schedule to the Central Excise Act,-

(a) after S.No. 31 and the entries relating thereto, the following S. No. and entries shall be inserted, namely:-

(b) against Sl. No. 64, for the entry in column (2), the entry "7615 10 11" shall be substituted

THE SIXTH SCHEDULE

(See section 102)

In the First Schedule to the Central Excise Tariff Act,-

(1) in Chapter 3,-

(a) in tariff item 0302 24 00, for the entry in column (2), the entry "Turbots (Psetta maxima)" shall be substituted;

(b) in tariff item 0303 34 00, forthe entry in column (2), the entry "Turbots (Psetta maxima)" shall be substituted;

(2) in Chapter 15, tariff item 1517 90 20 and the entries relating thereto shall be omitted;

(3) in Chapter 24,-

(a) in tariff items 2402 10 10 and 2402 10 20, for the entry in column (4) occurring against each of them, the entry "12% or Rs. 1781 per thousand, whichever is higher" shall be substituted;-

(b) in tariff item 2402 20 20, for the entry in column (4), the entry "Rs. 1772 per thousand" shall be substituted;

(c) in tariff item 2402 20 40, for the entry in column (4), the entry "Rs. 1249 per thousand" shall be substituted;

(d) in tariff item 2402 20 50, for the entry in column (4), the entry "Rs. 1772 per thousand" shall be substituted;

(e) in tariff item 2402 20 60, for the entry in column (4), the entry "Rs. 2390 per thousand" shall be substituted;

(f) in tariff item 2402 20 90, for the entry in column (4), the entry "Rs. 2875 per thousand" shall be substituted;

(g) in tariff item 2402 90 10, for the entry in column (4), the entry "Rs. 1511 per thousand" shall be substituted;

(h) in tariff items 2402 90 20 and 2402 90 90, for the entry in column (4) occurring against each of them, the entry "12% or Rs. 1738 per thousand, whichever is higher" shall be substituted;

(4) in Chapter 87, in tariff items 8703 23 10,8703 23 91,8703 23 92,8703 23 99,8703 24 10,8703 24 91,8703 24 92,8703 24 99,8703 32 10,8703 32 91,8703 32 92,8703 32 99,8703 33 10,8703 3391,8703 33 92,8703 33 99, 8703 90 90, for the entry in column (4) occurring against each of them, the entry "30%" shall be substituted.

(P K Malhotra)
Secretary of the Govt. of India