3. Levy and collection of cess.—(1) With effect from such date as the Central Government may, by
notification in the Official Gazette, specify, there shall be levied and collected, as a cess, a duty of excise
and customs for the purposes of this Act, on every item specified in column (2) of the 6
[Schedule I],
which is produced in or imported into India and—
(a) removed from a refinery or a factory or an outlet; or
1. Subs. by Act 13 of 2018, s. 206, for long title (w.e.f. 1-4-2018).
2. Subs. by s. 206, ibid., for “Central Road” (w.e.f. 1-4-2018).
3. Subs. by s. 206, ibid., for “Road Fund” (w.e.f. 1-4-2018).
4. Clause (e) omitted by s. 206, ibid, (w.e.f. 1-4-2018).
5. Subs. by s. 206, ibid., for Heading (w.e.f. 1-4-2018).
6. Subs. by s. 206, ibid., for “Schedule” (w.e.f. 1-4-2018).
3
(b) transferred by the person, by whom such item is produced or imported, to another person,
at such rates 1
*** as the Central Government may, by notification in the Official Gazette, specify:
2
* * * * *
3
[Provided that the additional duty of customs and the additional duty of excise on motor spirit
commonly known as petrol and on high speed diesel oil levied under sub-section (1) of section 109 and
sub-section (1) of section 110, as the case may be, of the Finance Act, 2018 shall be deemed to be the cess
for the purposes of this Act from the date of its levy and the proceeds thereof shall be credited to the
Fund.]
(2) Every cess leviable under sub-section (1) on any item shall be payable by the person by whom
such item is produced, and in the case of imports, the cess shall be imposed and collected on items so
imported and specified in the Schedule.
(3) The cess leviable under sub-section (1) on the items specified in the Schedule shall be in addition
to any cess or duty leviable on those items under any other law for the time being in force.
(4) The provisions of the Central Excise Act, 1944 (1 of 1944) and the rules made thereunder and the
provisions of the Customs Act, 1962 (52 of 1962) and the rules made thereunder, as the case may be,
including those relating to refunds and exemptions from duties shall, as far as may be, apply in relation to
the levy and collection of cess leviable under this section and for this purpose, the provisions of the
Central Excise Act, 1944 and of the Customs Act, 1962, as the case may be, shall have effect as if the
aforesaid Acts provided for the levy of cess on all items specified in the Schedule.
4. Crediting of cess to Consolidated Fund of India.—The proceeds of the cess levied under section
3 shall first be credited to the Consolidated Fund of India, and the Central Government may, if Parliament
by appropriation made by law in this behalf so provides, credit such proceeds to the Fund from time to
time, after deducting the expenses of collection, for being utilised exclusively for the purposes of this Act.
5. Grants and loans by the Central Government.—The Central Government may, after due
appropriation made by Parliament by law in this behalf, credit by way of grants or loans such sums of
money as the Central Government may consider necessary in the Fund.
6. Establishment of Central 4
[Road and Infrastructure Fund].—(1) With effect from such date as
the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be
established for the purposes of this Act, a Fund to be called as the Central 4
[Road and Infrastructure
Fund].
(2) The Fund shall be under the control of the Central Government and there shall be credited
thereto—
(a) any sums of money paid under section 4 or section 5;
(b) unspent part of the cess, being already levied for the purposes of the development and
maintenance of national highways;
(c) the sums, if any, realised by the Central Government in carrying out its functions or in the
administration of this Act;
(d) any fund provided by the Central Government for the development and maintenance of State
roads.
1. Omitted by Act 13 of 2018, s. 206, for “not exceeding the rate set forth in the corresponding entry in column (3) of the
Schedule” (w.e.f. 1-4-2018).
2. The first proviso omitted by s. 206, ibid (w.e.f. 1-4-2018).
3. Subs. by s. 206, ibid, for the second proviso (w.e.f. 1-4-2018).
4. Subs. by s. 206, ibid, for “Road Fund” (w.e.f. 1-4-2018).
4
(3) The balance to the credit of the Fund shall not lapse at the end of the financial year.
7. Utilisation of the Fund.—1
[(1)] The Fund shall be utilised for the—
(i) development and maintenance of national highways;
(ii) development of the rural roads;
(iii) development and maintenance of other State roads including roads of inter-State and
economic importance;
2
[(iv) construction of roads either under or over the railways by means of bridges and erection of
safety works at unmanned rail-road crossings, new lines, conversion of existing standard lines into
gauge lines and electrification of rail lines; and
(v) undertaking other infrastructure projects.
Explanation.—For the purposes of this Act, the expression “infrastructure projects” means the
category of projects and infrastructure Sub-Sectors specified in Schedule II.]
3
[(2) The Central Government may, depending upon the requirement for development of infrastructure
projects, and if it considers necessary or expedient to do so, by notification in the Official Gazette, amend
Schedule II relating to any Category of projects or Infrastructure Sub-Sectors.
(3) Every notification issued under this Act by the Central Government shall be laid, as soon as may
be after it is issued, 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 notification or both Houses agree that the notification should not be made,
the notification 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 notification.]
3
[7A. Apportionment of share of fund by Committee.— The share of the Fund to be apportioned to
each of infrastructure projects shall be finalised by a Committee, constituted by the Central Government
by notification published in the Official Gazette, headed by the Finance Minister, depending on the
priorities of the project.]
8. Accounts and audit.—(1) The concerned departments of the Central Government shall maintain
proper accounts and other relevant records and prepare an annual statement of accounts, including the
profit and loss account and the balance-sheet in respect of allocations of their shares of fund in such form,
as may be prescribed by the Central Government in consultation with the Comptroller and AuditorGeneral of India.
(2) The accounts of the Fund shall be audited by the Comptroller and Auditor-General of India at
such intervals as may be specified by him.