Central Excise Act 1944
LEVY AND COLLECTION OF DUTY1
3. 2Duties 3specified in4[5[First Schedule and the Second Schedule] to the Central Excise Tariff Act, 1985] to be levied6.-
7(1)8[ There shall be levied and collected in such manner as may be prescribed,—
(a) 9[a duty of excise ,to be called the Central Value Added Tax (CENVAT)] on all excisable goods 10[(excluding goods produced or manufactured in special economic zone)] which are produced or manufactured in India as, and at the rates, set forth in the First 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 11[(excluding goods produced or manufactured in special economic zone)] specified in the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) which are produced or manufactured in India, as, and at the rates, set forth in the said Second Schedule.]
12[Provided that the duties of
excise which shall be levied and collected on any 13[excisable goods which are
produced or manufactured,—
[27omitted[(i) in a 14[free trade zone 15[or a special economic zone]] and brought to any other place in India;]
or
(ii) by a hundred per cent export-oriented undertaking and 16[brought to any other place in India],
shall be an amount equal to the aggregate of the duties of customs which would be leviable 17[under the Customs Act, 1962 (52 of 1962), or any other law for the time being in force], 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).
18[Explanation 1.—
Where in respect of any such like goods, any duty of customs leviable for the time being in force is leviable at different rates, then, such duty shall, for the purposes of this proviso, be deemed to be leviable at the highest of those rates.]
19[Explanation 2.—
In this
proviso,—
[27omitted [20(i) "free trade zone" means a zone which the Central Government may, by notification in the Official Gazette21, 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.
27[ ‘(iii) “Special Economic Zone” has the meaning assigned to it in clause (za) of section 2 of the Special Economic Zones Act, 2005.’. ]
[22[(iii) "special economic zone" means a zone which the Central Government may, by notification in the Official Gazette, specify in this behalf.]
23[(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 24[25[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.
26[(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.]
109. Validation of action taken under section 3 of Act 1 of 1944.-
Any action taken or anything done or purporting to have been taken or done under sub-section (1) of section 3 of the Central Excise Act, as amended by clause (ii) of section 88 at any time during the period commencing on and from the 11th day of May, 1982 and ending with the day, the Finance Act, 2000 receives the assent of the President shall be deemed to be and to always have been, for all purposes, as validly and effectively taken or done as if the amendment made by clause (ii) of section 88 had been in force at all material times and, accordingly, notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority,
(a) all duties of excise levied, assessed or collected during the said period on any excisable goods under the Central Excise Act, shall be deemed to be and shall be deemed to always have been, as validly levied, assessed or collected as if the amendment made by clause (ii) of section 88 had been in force at all material times;
(b) no suit or other proceedings shall be maintained or continued in any court, tribunal or other authority for the refund of duties of excise, and no enforcement shall be made by any court of any decree or order directing the refund of, any such duties of excise which have been collected and which would have been validly collected if the amendment made by clause (ii) of section 88 had been in force at all material times;
(c) recovery shall be made of all such duties of excise which have not been collected or, as the case may be, which have been refunded but which would have been collected or, as the case may be, would not have been refunded, if the amendment made by clause (ii) of section 88 had been in force at all material times.
Explanation:-
for the removal of doubts, it is hereby declared that no act or omission on the part of any person shall be punishable as an offence which would not have been so punishable if this section had not come into force.
2. Vide s. 119(c) of the Finance Act, 1999 (27 of 1999) the references to the expression “duty”, “duties”, “duty of excise” and “duties of excise” shall, save as otherwise expressly provided in this Act and unless the context otherwise requires, be construed to include a reference to the special duty of excise specified in the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986).
3. The expressions “duty”, “duties”, ‘duty of excise” and “duties of excise” shall, save as otherwise expressly provided in Central Excise Act, 1944 and unless the context otherwise requires, be construed to include a reference to the special duty of excise specified in the Second Schedule to the Central Excise Tariff Act, 1985(5 of 1986).
4. Substituted [with effect from 28-2-1986 vide M.F. (D.R.) Notification No. 10/86-C.E. dated 5-2-1986] by s. 4 of the Central Excise Tariff Act, 1985 (5 of 1986).
5. Substituted by s. 119 of the Finance Act, 1999 (27 of 1999).
6. Text of Central Excise Laws (Amendment and Validation) Act, 1982 (Act 58 of 1982)
7. The action taken under Section 3 of the Central Excise Act, 1944, have been declared to be valid by the following s. 109 of the Finance Act, 2000 (10 of 2000).
8. Substituted by s. 121 of the Finance Act, 1999 (27 of 1999).
9. Substituted (w.e.f. 12-5-2000) by s. 92 of the Finance act, 2000 (10 of 2000).
10. Inserted [w.e.f. 11-5-2004 vide Notification No. 58/2003-C.E. (N.T.), dated 22-7-2003 as amended by Notification No. 61/2003-C.E. (N.T.), dated 14-8-2003; No. 78/2003-C.E. (N.T.), dated 14-10-2003; No. 82/2003-C.E. (N.T.), dated 29-11-2003; No. 85/2003-C.E.(N.T.), dated 31-12-2003; No. 6/2004-C.E. (N.T.),dated 28-2-2004;No. 8/2004-C.E. (N.T.) dated 31-3-2004 and No. 9/2004-C.E. (N.T.), dated 30-4-2004] by s. 133 of the Finance Act, 2002 (20 of 2002).
11. Inserted [w.e.f. 11-5-2004 vide Notification No. 58/2003-C.E. (N.T.), dated 22-7-2003 as amended by Notification No. 61/2003-C.E. (N.T. , dated 14-8-2003; No. 78/2003-C.E. (N.T.), dated 14-10-2003; No. 82/2003-C.E. (N.T.), dated 29-11-2003; No. 85/2003-C.E. (N.T.), dated 31-12-2003; No. 6/2004-C.E. (N.T.), dated 28-2-2004; No. 8/2004-C.E. (N.T.), dated 31-3-2004 and 9/2004-C.E. (N.T.), dated 30-4-2004] by s. 133 of the Finance Act, 2002(20 of 2002).
12. This proviso and explanations were inserted (w.e.f. 1-3-1982) by s. 46 of the Finance Act, 1982 (14 of 1982).
13. Substituted by s. 45 of the Finance Act, 1984 (21 of 1984).
14. Substituted (w.e.f. 11-5-2001) by s. 120 of the Finance Act, 2001 (14 of 2001).
15. The words “or a Special Economic Zone” omitted [w.e.f. 11-5-2004 vide Notification no. 58/2003-C.E. (N.T.), dated 22-7-2003 as amended by Notifications No. 61/2003-C.E. (N.T.), dated 14-8-2003; No. 78/2003-C.E. (N.T.) dated 14-10-2003; No. 82/2003-C.E.(N.T.), dated 29-11-2003; No. 85/2003-C.E. (N.T.), dated 31-12-2003; No. 6/2004-C.E. (N.T.) dated 28-2-2004; No. 8/2004-C.E. (N.T.), dated 31-3-2004 and No. 9/2004-C.E. (N.T.), dated 30-4-2004] by s. 133 of the Finance Act, 2002(20 of 2002).
16. Substituted (w.e.f. 11-5-2001) by s. 120 of the Finance Act, 2001 (14 of 2001).
17. Substituted (w.e.f. 11-5-1982 by s. 92 of the Finance Act, 2000 (10 of 2000).
18. Substituted ( w.e.f. 11-5-1982 by s. 92 of the Finance Act, 2000 (10 of 2000).
19. Substituted by s. 45 of the Finance Act, 1984 (21 of 1984).
20. Substituted (w.e.f. 11-5-2002) by s. 133 of the Finance Act, 2002 (20 of 2002).
21. For Notification issued under this section, see Notifications.
22. Inserted (w.e.f. 11-5-2001) by s. 120 of the Finance Act, 2001(14 of 2001).
23. This Sub-section was substituted (with effect from 1st October, 1963) by s.3 of the Sea Customs and the Central Excise and Salt (Amendment) Act, 1963 (30 of 1963).
24. Substituted [with effect from 28-2-1986 vide M.F. (D.R.) Notification No. 10/86-C.E., dated 5-2-1986] by s. of the Central Excise Tariff Act, 1985 (5 of 1986).
25. Substituted by s. 119 of the Finance Act, 1999 (27 of 1999).
26. This Sub-Section was inserted [w.e.f. 1-7-1978 vide Notification No. 227A/78-SRP-(CCX), dated 19-6-1978] by s. 19 of the Customs, Central Excise and Salt and Central Boards of Revenue (Amendment) Act, 1978 (25 of 1978).
27. Changes vide Chapter IV of the Finance Act 2007-08 w.e.f. enactment of Finance Bill
Relevant Notifications