Notes - Notes on clauses - Excise - Finance Bill, 2012

Excise Clause 129 of the Bill seeks to amend clause (i) of the Explanation to clause (b) of sub-section (3) of section 4 of the Central Excise Act, so as to incorporate the definition of the expression inter-connected undertakings on the lines of the Monopolies and Restrictive Trade Practices Act, 1969, in view of its repeal by section 66 of Act 12 of 2003. This amendment will take effect from the date on which this Bill receives the assent of the President. Clause 130 of the Bill seeks to amend section 9 of the Central Excise Act so as to substitute the words one lakh with the words thirty lakh . This amendment will take effect from the date on which this Bill receives the assent of the President. Clause 131 of the Bill seeks to amend section 9A of the Central Excise Act so as to substitute sub-section (1) thereof to provide that notwithstanding anything contained in the Code of Criminal Procedure, 1973, all offences under that Act except an offence punishable for a term of imprisonment of three years or more under section 9 shall be non-cognizable. This amendment will take effect from the date on which this Bill receives the assent of the President. Clause 132 of the Bill seeks to amend sub-section (5) of section 11A of the Central Excise Act, so as to substitute certain words therein. It further seeks to substitute sub-section (8) of said section 11A so as to provide for exclusion of the period of stay granted by court or tribunal in respect of service of notice in computing the period referred to in clause (a) of sub-section (1) or sub-section (4) or sub-section (5). These amendments will take effect from the date on which this Bill receives the assent of the President. Clause 133 of the Bill seeks to amend clauses (a) and (b) of sub-section (1) of section 11AC of the Central Excise Act so as to insert certain words therein. It further seeks to amend clause (c) of said sub-section (1) so as to provide that the benefit of reduced penalty shall be available only if such amount of penalty is paid within the said period of thirty days. This amendment will take effect from the date on which this Bill receives the assent of the President. Clause 134 of the Bill seeks to amend section 12F of the Central Excise Act so as to substitute sub-section (2) thereof to provide that the provisions of the Code of Criminal Procedure, 1973 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 Commissioner of Central Excise were substituted. This amendment will take effect from the date on which this Bill receives the assent of the President. Clause 135 of the Bill seeks to substitute new sections 13 and 13A for section 13 of the Central Excise Act. The proposed section 13 seeks to provide for power to arrest. Sub-section (1) of aforesaid section seeks to provide that if an officer of Central Excise empowered in this behalf by general or special order of the Commissioner of Central Excise has reason to believe that any person has committed an offence punishable under this Act, he may arrest such person and shall, as soon as may be, inform him of the grounds for such arrest. Sub-section (2) of aforesaid section seeks to provide that every person arrested under sub-section (1) for an offence shall, without unnecessary delay, be taken to a Magistrate. Sub-section (3) of aforesaid section sseeks to provide that where an officer of Central Excise has arrested any person under sub-section (1), for any offence (other than an offence punishable for a term of imprisonment of three years or more under section 9), he shall, for the purpose of releasing such person on bail or otherwise, have the same powers and be subject to the same provisions as the officer-in-charge of a police-station has, and is, subject to, under the Code of Criminal Procedure, 1973. Sub-section (4) of aforesaid section seeks to provide that notwithstanding anything contained in the Code of Criminal Procedure, 1973, all offences under this Act, (except an offence punishable for a term of imprisonment of three years or more under section 9) shall be bailable. Sub-section (5) of aforesaid section seeks to provide that offences punishable for a term of imprisonment of three years or more under section 9 shall be cognizable. The proposed new section 13A seeks to provide that bail for offence punishable for a term of imprisonment of three years or more under section 9 shall not be granted without hearing Public Prosecutor. Sub-section (1) of the proposed section seeks to provide that notwithstanding anything contained in the Code of Criminal Procedure, 1973, no person accused of an offence punishable for a term of imprisonment of three years or more under section 9 shall be released on bail or on his own bond unless (i) the public prosecutor has been given an opportunity to oppose the application for such release; and (ii) where the public prosecutor opposes the application, the Magistrate is satisfied that there are reasonable grounds for believing that he is not guilty of such offence and that he is not likely to commit any offence while on bail. It further seeks to insert a proviso to provide that a person who is under the age of eighteen years or is a woman or is sick or infirm may be released on bail if the Magistrate so directs. Sub-section (2) thereof seeks to provide that notwithstanding anything contained in the Code of Criminal Procedure, 1973, no police officer shall, save as otherwise provided under this Act, investigate into an offence under this Act unless specifically authorised by the Central Government by a general or special order, and subject to such conditions as may be specified in the order. These amendments will take effect from the date on which this Bill receives the assent of the President. Clause 136 of the Bill seeks to substitute a new section for section 18 of the Central Excise Act so as to provide that all searches under this Act or the rules made thereunder and all arrests under this Act shall, save as otherwise provided under this Act, be carried out in accordance with the provisions of the Code of Criminal Procedure, 1973, relating respectively to searches and arrests under that Code. This amendment will take effect from the date on which this Bill receives the assent of the President. Clause 137 of the Bill seeks to omit section 19 of the Central Excise Act relating to disposal of persons arrested. This amendment will take effect from the date on which this Bill receives the assent of the President. Clause 138 of the Bill seeks to amend section 20 of the Central Excise Act so as to omit the words and figures under section 19 . It further seeks to insert the words in accordance with the provisions of this Act after the words such Magistrate . This amendment will take effect from the date on which this Bill receives the assent of the President. Clause 139 of the Bill seeks to amend the notification issued under sub-section (1) of section 5A of the Central Excise Act bearing number G.S.R.62 (E), dated the 6th February, 2010 in the manner specified in the Fifth Schedule so as to provide that the period of exemption of ten years for units undertaking substantial expansion under the said notification shall be computed from the date of commencement of commercial production from the expanded capacity. This amendment will take effect from the date on which this Bill receives the assent of the President. Clause 140 of the Bill seeks to amend the Third Schedule to the Central Excise Act in the manner specified in the Sixth Schedule so as to insert S.No. 26A relating to tariff items 2402 20 10 to 2402 20 90 with a view to provide that these items shall be covered under sub-clause (iii) of clause (f) of section 2 relating to deemed manufacture.