LegalCrystal – Blog

CHAPTER III

POWERS AND DUTIES OF OFFICERS AND LANDHOLDERS

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.

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1.   See now the Customs Act, 1962 (52 of 1962).

2.   Ins. by Act 79 of 1985, s. 4.

3.   Renumbered and ins. by Act 29 of 1988, S.10 (w.e.f. 1-7-1988).

4.   Subs. by Act 40 of 1991, S.3 (w.e.f. 20-9-1991).

5.   Subs. by S.4, ibid. (w.e.f.20-9-1991).

6.   Ins. by S.5, ibid. (w.e.f. 20-9-1991).

7.   Ins. by S.6, ibid. (w.e.f. 20-9-1991).

8.   Renumbered by Act 40 of 1991, S.7 (w.e.f. 20-9-1991).

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

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 ChapterVIA.]

Power to arrest

13.        (1)        Any Central Excise Officer duly empowered 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 thereunder, who on demand of any officer duly empowered 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.

14.        Power to summon persons to give evidence and produce documents in inquiries under  this Act.

(1)        Any Central Excise Officer duly empowered by the Central Government

in this behalf shall  have power  to  summon any person whose attendance he  considers

necessary either to give evidence or to produce a document or any other thing in any

inquiry which such officer is making for any of the  purposes  of this  Act.  A summons to produce documents or other things may be for the production of certain specified documents or things or for the production of all documents or things of a certain description in the possession or under the control of the person summoned.

(2)        All persons so summoned shall be bound to attend, either in person or

by an authorised agent, as such officer may, direct; and all persons so summoned shall be

bound to state the truth upon any subject respecting which they are examined or make

statements and to produce such documents and other things as may be required:

Provided  that the exemptions under sections 132 and 133  of  the

Code  of  Civil  Procedure shall be  applicable  to  requisitions  for attendance under this

section. (5 of 1980).

(3)        Every such inquiry as aforesaid shall be deemed to be a “judicial

proceeding” within the meaning of section 193 and section 228 of the Indian Penal Code. (45 of 1860).

15.        Officers required to assist Central Excise Officers.

All officers of Police and Customs and all officers of Government engaged in the

collection of land revenue, and all village officers are hereby empowered and required to

assist the Central Excise Officers in the execution of this Act.

16.        Owners or occupiers of land to report manufacture of contraband excisable goods.

Every owner or occupier of land, and the agent of any such owner or occupier in

charge of the management of that land, if contraband excisable goods are  manufactured

thereon, shall  in the absence of reasonable excuse be bound to give notice of such

manufacture  to a Magistrate, or to an officer  of  the  Central Excise,  Customs, Police,

or Land Revenue Department, immediately  the fact comes to  his knowledge.

17.        Punishment or 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 wilfully connives at any offence  against the

provisions of this Act or of any rules made thereunder 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.

18.        Searches and arrests how to be made.

All searches made under this Act or any rules ‘made thereunder and all arrests

made under this Act shall be carried out in accordance with the provisions of the Code of

Criminal Procedure, 18981, relating respectively to ‘searches  and arrests made under that

Code. (5 of 1898).

19.        Disposal of persons arrested.

Every person arrested under this Act shall be forwarded without delay to the

nearest Central Excise Officer empowered to send persons so arrested to a Magistrate, or,

if  there is no such Central Excise Officer within a reasonable distance,-to the

officer-in-charge of the nearest police-station.

20.        Procedure to be followed by officer-in-charge of police station.

The officer-in-charge of a police-station to whom any person is forwarded under

section 19 shall either admit him to bail to appear before the Magistrate having

jurisdiction, or in default of bail forward him in custody to such Magistrate.

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1.   See row the Code of Criminal Procedure, 1973 (2 of 1974).

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Inquiry how to be made by Central Excise Officers against arrested persons forwarded to them  under section 19

21.        (1)        When any person is forwarded under section 19 to a Central Excise

Officer empowered to send persons so arrested to a Magistrate, the Central Excise Officer

shall proceed to inquire into the charge against him.

(2)        For this purpose the Central Excise Officer may exercise the same

powers and shall be subject to the same provisions as the officer-in-charge of a

police-station may exercise and is subject to under the Code of Criminal Procedure, 18981,when investigating a cognizable case: (5 of 1898).

Provided that €“

(a)        if the Central Excise Officer is of opinion that  there

is  sufficient  evidence or reasonable  ground of suspicion against the accused person, he

shall either admit him to bail lo appear before a Magistrate having  jurisdiction in the

case, or forward him in custody to such Magistrate;

(b)        if it appears to the Central Excise Officer that there is

not sufficient evidence or reasonable ground of  suspicion against  the  accused person, he

shall  release  the  accused person  on his executing a bond, with or without sureties  as

the Central Excise Officer may direct, to appear, if and when so required before the

Magistrate having  jurisdiction,  and shall  make a full report of all the particulars of

the  case to his official superior.

22.        Vexatious search, seizure, etc., by Central Excise Officer.

Any Central Excise or other officer exercising powers under this Act or under

the rules made thereunder who €“

(a)        without reasonable ground of suspicion searches or causes to be

searched any house, boat or place;

(b)        vexatiously and unnecessarily  detains,  searches  or arrests any

person;

(c)        vexatiously and unnecessarily seizes the moveable property of any

person, on pretence of seizing or  searching for any article liable to confiscation under

this Act;

(d) commits, as such officer, any other act to the injury of any person,

without having reason to believe that such act is required for the execution of his duty;

shall,  for  every  such offence, be punishable with  fine  which  may extend to two

thousand rupees.

Any person wilfully and maliciously giving false information and so

causing an arrest or a search to be made under this Act shall be punishable with fine

which may extend to two thousand rupees or  with imprisonment for a term which may extend to two years or with both.

23.        Failure of Central Excise Officer in duty.

Any Central Excise Officer who ceases or refuses to perform or withdraws himself  from the duties of his office, unless he has obtained the express written  permission  of the  Collector of Central Excise, or  has  given  to  his superior officer two months’ notice in writing of his intention or has other  lawful  excuse,  shall on conviction

before a Magistrate  be punishable  with  imprisonment for a term which may  extend  to

three months  or  with fine which may extend to three months’ pay,  or  with both.

CHAPTER IV

TRANSPORT BY SEA

24.        Penalties for carrying excisable goods in certain vessels.

When any excisable goods are carried by sea in any vessel other than a vessel of the burden of three hundred tons and upwards, the owner  and master of such vessel shall each be punishable with imprisonment for a term which may extend to six months, or with fine which may extend  to one thousand rupees, or with both.

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1.   See now the Code of Criminal Procedure, 1973.  (Act 2 of 1974).

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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

1[Central Board of Excise and Customs constituted under the Central Boards of Revenue  Act, 1963] appoint in this behalf; (54 of 1963).

(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 1[Central Board  of  Excise and  Customs constituted under the Central Boards of  Revenue Act, 1963] may from time to time exempt from the operation of section 24. (54 of 1963).

Power of stoppage, search and arrest

26.        When any officer €“

empowered  by  the 1[Central Board of Excise and  Customs  constituted under

the Central Boards of Revenue Act, 1963], (54 of 1963)  to  act Under  this section has reason to believe, from personal knowledge  or from  information taken down in writing, that any excisable goods  are being  carried, or have within the previous  twenty-four  hours been carried,  in  any vessel so as to render the owner or master  of  such vessel liablto the penalties imposed by section 24, he may  require such vessel to be brought-to and thereupon may €“

(a)        enter and search the vessel;

(b)        require  the  master  of  the  vessel  to  produce  any documents  in his possession relating to the vessel  or  the cargo thereof;

(c)        seize the vessel if the officer has reason to believe it liable to

confiscation under this Act, and cause it to be brought  with its crew and cargo into any port  in  2[India]; and

(d)        where  any  excisable  goods are  found  on  board  the vessel,

search  and arrest without a warrant any  person  on board  the  vessel  whom  he has reason  to  believe  to  be punishable under section 24.

27.        Penalties for resisting officer.

Any master of a vessel refusing or neglecting to bring-to the vessel or to produce his papers when required to do so by an officer acting under section 26, and any person obstructing any such officer in the performance of his duty, may be arrested by such officer without a warrant, and shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to one thousand rupees, or with both.

Confiscation of vessel and cargo

28.        (1)        Every vessel (including all appurtenances) in which any excisable

goods are carried so as to render the owner or master of such vessel liable to penalties imposed by section 24, the cargo on board such vessel and the excisable goods in respect of  which an offence under this Act has been committed shall be liable to confiscation on the orders of the officer empowered in this behalf by the Central Government.

(2)        Whenever any Customs Officer is satisfied that any article is liableto  confiscation  under this section  he may seize such article, and shall at once report the seizure to his superior  officer for the  information of the officer empowered to order confiscation under sub-section (1) and such officer may, if  satisfied  on  such report or after making such inquiry as he thinks fit, that the article so seized is liable, to confiscation, either declare it to be confiscated, or impose a fine in lieu thereof not exceeding the  value of the article.

29.        Jurisdiction.

Any offence punishable under section 24 or section 27 may be deemed to have been committed within the limits of the jurisdiction of the Magistrate of any place where the offender is found, or to which, if arrested under section 26 or section 27, he may be brought.

30.        Power to exempt from operation of his Chapter.

The Central Government may, by notification in the Official Gazette, exempt the carriage of excisable goods within any local limits or in any class of vessels from the operation of this Chapter, and, by like notification, again subject such carriage to the operation of this Chapter.

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1.   Subs.  by Act 54 of 1963, s. 5, for “Central Board of  Revenue” (w.e.f. 1-1-1964).

2.   Subs. by Act 25 of 1950, s. 11 and Sch.  IV, for the States”.

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CHAPTER V

SPECIAL PROVISIONS RELATING TO SALT

31.        Special and permanent rights of manufacturing salt to be recognised.

The proprietor of a private salt factory who has by virtue of a sanad granted by 1[the Government] or any former Government, a special and permanent right to manufacture salt, or to  excavate or collect natural salt, shall on application made in accordance with the rules  made under this Act be entitled to a licence for  such  purpose and to the annual renewal thereof, unless on a breach of  the provisions of this Act, his licence has been cancelled by an officer duly empowered by the Central Government in this behalf.

32.        Rights of ordinary proprietors of existing salt-works.

Every proprietor of a private salt-work, other than a private salt factory, to which section 31 applies, of which, under the provisions of section 17 of the Bombay  Salt Act, 1890, (Bom. Act 11 of 1890) the proprietor was entitled on application to a licence to manufacture or to excavate or  collect  natural  salt  at such  factory,  shall  continue to  be entitled, on, application made in accordance with the rules made under this  Act,  to a licence for such purpose and to  the  annual  renewal thereof, unless on a breach of the provisions of this Act his  licence has been cancelled by an officer duly empowered by  the Central Government in this behalf:

Provided  that  the Collector of Central Excise may at  any  time withdraw  or withhold a licence from the proprietor of any  such  salt factory, if no salt ‘has been manufactured, excavated or collected  in such  salt factory for the three years ending on the thirtieth day  of June  last  preceding  the date of his order, or,  with  the  previous sanction  of  the 2[Central Board of Excise  and  Customs  constituted under  the Central Boards of Revenue Act, 1963],(54 of 1963)  if  such salt  factory has not produced, on an average, during the  said  three years, at least five thousand maunds. of salt per annum.

CHAPTER VI

ADJUDICATION OF CONFISCATIONS AND PENALTIES

33.        Power of adjudication.

Where by the rules made under this Act anything is liable to confiscation or any

person is liable to a penalty, such confiscation or penalty may be adjudged –

(a)        without limit, by a Collector of Central Excise;

(b)        up to confiscation of goods not exceeding five  hundred rupees  in

value and imposition of penalty not exceeding  two hundred  and  fifty  rupees, by  an

Assistant  Collector  of Central Excise :

Provided  that the 2[Central Board of Excise and Customs constituted

under  the Central Boards of Revenue Act,  1963]  (54  of 1963)  may,  in the case of any

officer performing the duties of  an Assistant Collector of Central Excise, reduce the

limits indicated  in clause  (b) of this section and may confer on any officer the powers

indicated in clause (a) or (b) of this section.

34.        Option to pay fine in lieu of confiscation.

Wherever confiscation is adjudged under this Act or the rules made thereunder,

the officer adjudging it shall give the owner of the goods an option to pay in lieu of

confiscation such fine as the officer thinks fit.

34A.     Confiscation or penalty not to interfere with other punishments.

No confiscation made or penalty imposed under the provisions, of this Act or of

any rule made thereunder shall prevent the infliction of any other punishment to which the person affected thereby is liable under the provisions of this Act or under any other law.

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1.   Subs. by the A.0. 1950, for “The British”.

2.   Subs. by Act 54 of 1963, s. 5, for “Central Board of Revenue” (w.e.f. 1-1-1964).

3.   Ins. by Act 36 of 1973, s.22.

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CHAPTER VIA

APPEALS

35.        Appeals to Collector (Appeals).

(1)        Any person aggrieved by any decision or order passed under this Act

by a Central Excise Officer lower in rank than a Collector, of Central Excise may appeal to the Collector of Central, Excise (Appeals) [hereafter in this Chapter referred to as the

Collector (Appeals)] within three months from the date of the communication to him of such decision or order:

Provided that the Collector (Appeals) may, if he is satisfied that

the appellant was prevented by sufficient cause from presenting the appeal within the

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

months.

(2)        Every appeal under this section shall be in the prescribed form and

shall be verified in the prescribed manner.