3. Levy and collection of cess.—(1) With effect from such date as the
Central Government may, by notification in 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 Schedule, which is
produced in or imported into India and—
(a) removed from a refinery or a factory or an outlet; or
(b) transferred by the person, by whom such item is produced or imported,
to another person,
at such rates not exceeding the rate set forth in the corresponding entry in
column (3) of the Schedule, as the Central Government may, by notification in
the Official Gazette, specify:
Provided that until the Central Government specifies by such notification the
rate of the cess in respect of petrol and high speed diesel oil (being items
specified in the Schedule), the cess on petrol and high speed diesel oil under this
sub-section shall be levied and collected at the rate of rupee one per litre:
Provided further that the additional duty of customs and the additional duty of
excise on petrol levied under sub-section (1) of section 103 and sub-section (1)
of section 111, as the case may be, of the Finance (No. 2) Act, 1998 (21 of 1998)
and the additional duty of customs and the additional duty of excise on high
speed diesel oil levied under sub-section (1) of section 116 and sub-section (1) of
section 133, as the case may be, of the Finance Act, 1999 (27 of 1999) shall be
deemed to be a 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.
COMMENTS
On motor spirit commonly known as petrol and high speed diesel oil which is produced in
or imported into India and (a) removed from a refinery or a factory or an outlet; or (b)
transferred by a person, by whom such item is produced or imported, to another person, a
duty of excise and customs at the rate of rupee one per litre is to be levied and collected.
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 Road 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 Road 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;
(3) The balance to the credit of the Fund shall not lapse at the end of the
financial year.
7. Utilisation of the Fund.—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 interState and economic importance;
(iv) construction of roads either under or over the railways by means of a bridge
and erection of safety works at unmanned rail-road crossings; and
(v) disbursement in respect of such projects as may be prescribed.
COMMENTS
The Central Road Fund is to be utilised for the (a) development and maintenance of national
highways; (b) development of rural roads; (c) development and maintenance of other State
roads including roads of inter-State and economic importance; (d) construction of roads either
under or over the railways by means of a bridge and erection of safety works at unmanned
rail-road crossings, and (e) disbursement in respect of such projects.
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
Auditor-General 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.