2
[
3
[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 4
[Principal Commissioner of Central
Excise or 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.]
5
[12F. Power of search and seizure.— (1) Where the Joint 4
[Principal Commissioner of Central
Excise or Commissioner of Central Excise] or Additional 4
[Principal Commissioner of Central Excise or
Commissioner of Central Excise] or such other Central Excise Officer as may be notified by the Board has
reasons to believe that any goods liable to confiscation or any documents or books or things, which in his
opinion shall be useful for or relevant to any proceedings under this Act, are secreted in any place, he may
1. Ins. by Act 21 of 2006, s. 64.
2. Ins. by Act 79 of 1985, s. 4 (w.e.f. 27-12-1985).
3. Section “12A” renumbered as “12E” by Act 40 of 1991, s. 7 (w.e.f. 20-9-1991).
4. Subs. by Act 25 of 2014, s. 95, for “Commissioner of Central Excise”.
5. Ins. by Act 8 of 2011, s. 68.
42
authorise in writing any Central Excise Officer to search and seize or may himself search and seize such
documents or books or things.
1
[(2) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to search and seizure
shall, so far as may be, apply to search and seizure under this section subject to the modification that
sub-section (5) of Section 165 of the said Code shall have effect as if for the word “Magistrate”, wherever
it occurs, the words “2
[Principal Commissioner of Central Excise or Commissioner of Central Excise]”
were substituted.]]
3
[13. Power to arrest.— Any Central Excise Officer not below the rank of Inspector of Central Excise
may, with the prior approval of the 2
[Principal Commissioner of Central Excise or Commissioner of Central
Excise], arrest any person whom he has reason to believe to be liable to punishment under this Act or the
rules made thereunder.]
(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, 1908 (5
of 1908) shall be applicable to requisitions of attendance under this section.
(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, 1860 (45 of 1860).
1. Subs. by Act 23 of 2012, s. 137, for sub-section (2).
2. Subs. by Act 25 of 2014, s. 95, for “Commissioner of Central Excise”.
3. Subs. by Act 32 of 2003, s. 141, for section 13 (w.e.f. 14-5-2003).
43
1
[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 2
[Principal
Commissioner of Central Excise or 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 3
[Principal Chief Commissioner of Central Excise or 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 4
[cost accountant or chartered
accountant], nominated by the 3
[Principal Chief Commissioner of Central Excise or Chief Commissioner
of Central Excise] in this behalf.
(2) The 4
[cost accountant or chartered 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)
5
[* * *]
(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 thereunder.
6
[Explanation 1].— 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).]
1. Ins. by Act 22 of 1995, s. 76 (w.e.f. 26-5-1995).
2. Subs. by Act 25 of 2014, s. 95, for “Commissioner of Central Excise”.
3. Subs. by ibid, s. 95, for “Chief Commissioner of Central Excise”.
4. Subs. by Act 33 of 2009, s. 105(i), for “cost accountant”.
5. Omitted by Act 10 of 2000, s. 104.
6. Renumbered by Act 33 of 2009, s. 105(ii).
44
1
[Explanation 2.— For the purposes of this section, “chartered accountant” shall have the meaning
assigned to it in clause (b) of sub-section (1) of Section 2 of the Chartered Accountants Act, 1949 (38 of
1949).]
2
[14AA. Special audit in cases where credit of duty availed or utilised is not within the normal
limits, etc.— (1) If the 3
[Principal Commissioner of Central Excise or Commissioner of Central Excise]
has reason to believe that the credit of duty availed of or utilised under the rules made under this Act by a
manufacturer of any excisable goods—
(a) is not within the normal limits having regard to the nature of the excisable goods produced or
manufactured, the type of inputs used and other relevant factors, as he may deem appropriate;
(b) has been availed of or utilised by reason of fraud, collusion or any wilful misstatement or
suppression of facts,
he may direct such manufacturer to get the accounts of his factory, office, depot, distributor or any other
place, as may be specified by him, audited by a 4
[cost accountant or chartered accountant] nominated by
him.
(2) The 4
[cost accountant or chartered accountant] so nominated shall, within the period specified by
the 3
[Principal Commissioner of Central Excise or Commissioner of Central Excise], submit a report of
such audit duly signed and certified by him to the said Commissioner mentioning therein such other
particulars as may be specified.
(3) The provisions of sub-section (1) shall have effect notwithstanding that the accounts of the said
manufacturer aforesaid have been audited under any other law for the time being in force or otherwise.
(4)
5
[* * *]
(5) The manufacturer shall be given an opportunity of being heard in respect of any material gathered
on the basis of the audit under sub-section (1) and proposed to be utilised in any proceeding under this Act
or rules made thereunder.
6
[Explanation 1.]— 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).
1. Ins. by Act 33 of 2009, s. 105(ii).
2. Ins. by Act 26 of 1997, s. 83.
3. Subs. by Act 25 of 2014, s. 95, for “Commissioner of Central Excise”.
4. Subs. by Act 33 of 2009, s. 106(i), for “cost accountant”.
5. Omitted by Act 10 of 2000, S. 105.
6. Explanation renumbered by Act 33 of 2009, s. 106(i) & (ii).
45
1
[Explanation 2.— For the purposes of this section, “chartered accountant” shall have the meaning
assigned to it in clause (b) of sub-section (1) of Section 2 of the Chartered Accountants Act, 1949 (38 of
1949).]
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.
2
[15A. Obligation to furnish information return.— (1) Any person, being—
(a) an assessee; or
(b) a local authority or other public body or association; or
(c) any authority of the State Government responsible for the collection of value added tax or
sales tax; or
(d) an income tax authority appointed under the provisions of the Income Tax Act, 1961 (43 of
1961); or
(e) a banking company within the meaning of clause (a) of Section 45-A of the Reserve Bank
of India Act, 1934 (2 of 1934); or
(f) a State Electricity Board or an electricity distribution or transmission licensee under the
Electricity Act, 2003 (36 of 2003), or any other entity entrusted, as the case may be, with such
functions by the Central Government or the State Government; or
(g) the Registrar or Sub-Registrar appointed under Section 6 of the Registration Act, 1908 (16
of 1908); or
(h) a Registrar within the meaning of the Companies Act, 2013 (18 of 2013); or
(i) the registering authority empowered to register motor vehicles under Chapter IV of the
Motor Vehicles Act, 1988 (59 of 1988); or
(j) the Collector referred to in clause (c) of Section 3 of the Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (30 of 2013); or
(k) the recognised stock exchange referred to in clause (f) of Section 2 of the Securities
Contracts (Regulation) Act, 1956 (42 of 1956); or
(l) a depository referred to in clause (e) of sub-section (1) of Section 2 of the Depositories Act,
1996 (22 of 1996); or
1. Ins. by Act 33 of 2009, s. 106(i) & (ii).
2. Ins. by Act 25 of 2014, s. 97.
46
(m) an officer of the Reserve Bank of India, constituted under Section 3 of the Reserve Bank
of India Act, 1934 (2 of 1934),
who is responsible for maintaining record of registration or statement of accounts or any periodic return
or document containing details of payment of tax and other details or transaction of goods or services or
transactions related to a bank account or consumption of electricity or transaction of purchase, sale or
exchange of goods or property or right or interest in a property, under any law for the time being in force,
shall furnish an information return of the same in respect of such periods, within such time, form (including
electronic form) and manner, to such authority or agency as may be prescribed.
(2) Where the prescribed authority considers that the information submitted in the information return
is defective, he may intimate the defect to the person who has furnished such information return and give
him an opportunity of rectifying the defect within a period of thirty days from the date of such intimation
or within such further period which, on an application made in this behalf, the prescribed authority may
allow and if the defect is not rectified within the said period of thirty days or, as the case may be, the further
period so allowed, then, notwithstanding anything contained in any other provision of this Act, such
information return shall be treated as not submitted and the provisions of this Act shall apply.
(3) Where a person who is required to furnish information return has not furnished the same within the
time specified in sub-section (1) or sub-section (2), the prescribed authority may serve upon him a notice
requiring furnishing of such information return within a period not exceeding ninety days from the date of
service of the notice and such person shall furnish the information return.]
1
[15B. Penalty for failure to furnish information return.— If a person who is required to furnish an
information return under Section 15-A fails to do so within the period specified in the notice issued under
sub-section (3) thereof, the prescribed authority may direct that such person shall pay, by way of penalty, a
sum of one hundred rupees for each day of the period during which the failure to furnish such return
continues.]
16. [Owners or occupiers of land to report manufacture of contraband excisable
goods].— Omitted by Finance Act 2002 (20 of 2002), s. 137.
17. [Punishment for connivance at offences].— Omitted by s. 137, ibid
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, 1898 (5 of 1898)2
, relating respectively to searches and arrests made under
that Code.
1. Ins. by Act 25 of 2014, S. 97.
2. See now the CrPC, 1973 (2 of 1974).
47
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 1
[shall, where the offence is noncognizable, either admit him] to bail to appear before the Magistrate having jurisdiction, or in default of
bail forward him in custody to such Magistrate.
21. Inquiry how to be made by Central Excise Officers against arrested persons forwarded to
them under Section 19.— (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, 1898 (5 of 1898) 2
, when investigating a cognizable case:
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 1
[shall, where the offence is non-cognizable, either admit
him] to bail to 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 3
[in respect of offence which is non-cognizable], 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;
1. Subs. by Act 17 of 2013, s. 93, for “shall either admit him”.
2. See now the CrPC, 1973 (2 of 1974).
3. Ins. by Act 17 of 2013, s. 94(ii).
48
(c) vexatiously and unnecessarily seizes the movable 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 1
[Principal Commissioner of Central Excise or Commissioner 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.