(c) the cost of packing which is of - durable nature and is returnable to the assessee or to the buyer, whosoever supplied it ezpiclnclotion-in this sub-clause, "packing" includes the wrapper, container, bobbin, pim, spool, reel or warp beam or any other thing in which or on which the exeis·  _  -'  lok  babha- ,'- corrigendato the customs, central excises ,aid salt and cen'ffial boards of revenue (amendment) bill, 1977 l-to belas introduced in ipk sabha 7 1 page 3, line 27,-after "is" insert "not" 2 page 17, line 8 from bottom,-for "firts" ~ "first" 3 page 24, in the marginal heading to ~ection 75,-for "materrials" ~ "materials" 4 page 28i against line 5 from bottom, in the margina citation,-for "1863" ~ "1'''3'' 1'ew dellii; december 15 197~ for dift~t ;;rieti~- -of thp samr "xcisllbje ~oodi ot·· for c!t'ffetent areas or 10r different seasons"  bill no 149 of 1977 the customs, central excises and salt and central boards of revenue (amendment) bill, 1977a bill to provide for certain amendments to the customs act, 1002, the central excises and salt _4ct, 1944 and the cenflral boards of revenue act, 1963 be it enacted by parliament in the twenty-eighth year of the republic of india as follows:- chapter i preliminarys 1 (1) this act may be called the customs, cent~al excises and 8alt short and central boards of revenue (amendment) act, 1977 title and commence-(2) it shall come into force on such date as the central government ment may, by notification in the official gazette, appoint: provided that different dates may be appointed for different provisions 10 of this act and any reference in any such provision to the commencement of this act shan be construed as a reference to the com;ng into force of that provision  chapter ii amendments to tile cl1stom~ acr, 1962amendment of section 2, 52 of 1962 is ~ in section 2 of the cus":oms act, 1962 (hereafter in this chapter referred to as the customs act), in clause (28), for the words "waters extending into the sea to a distance of twelve nautical miles m?asureti from the appropriate base line on the coast of inciia''', the words and figures "waters extending into the sea up t() the limit of contiguous zone of india under secti~n 5 of the territorial waters, continental shelf, exclusive economic zone and other maritime zones act, 1976" shall be substituted 3 in section 14 of the customs act,-(<<) in sub-section (1), in clause (<<), for the proviso, the follow-amendment of ection 14 ing proviso shall be substituted, namely:-s "provided that such price shall be calculated with reference to the rate of exchange as in force on the difte on which a bid of entry is presented under section 46, or a shipping bill or bill of export, as the case may be, is presented under section 50;"; (b) after sub-section (2), the following sub-section shall be in- 10 serted, namely:-'(3) for the purposes of this section-(<<) "rate of exchange" means the rate of exchangc-(i) determined by the central government, or (ii) ascertained in such manner as the central gov- is emment may direct, for the conversion of indian currency into foreign currency or foreign currency into indian currency; (b) "foreign currency" and "indian currency" have the meanings respectively assigned to them in the foreign ex- 20 change regulation act, 1973' 46 of 1973 4 in section 15 of the customs aci-amendment of section 15 (<<) in sub-section (1), the words ", rate of exchange" shall be omitted; (b) suib-section (3) shall be omitted - 2s amendment of aection 27 5 in section 27 of the customs act, for sub-section (1), the following sub-section shalll be substituted, namely:-"(1) any person claiming refund of any duty paid by him in pursuance of an order of assessment made by an officer of customs lower in rank 'than an assistant collector of customs may make an 30 application for refund of such duty to the assistant collector of customs-(a) in the case of any import made by any individual for his personal use or by government or by any educational, research or charitable institution or hospital, before the expiry of one year; 3s (b) in any other case, before the exp'hry of six months, from the date of payment of duty: provided that ,the limitation of one year or six months, as the case may be, shall not apply whf'l'e any duty has been paid under protest 40 e:r:pz«nation-where any duty is paid provisionally under section 18, 'the period of one yea'r or six months, as the case may be, ehall be computed from the date of adjustment of duty after the final assessment thereof" 6 in section 28 of the customs act, in sub-section (1)-amendment of section 28 (a) for the opening paragraph the following shall be substituted, namely:-"when any duty has not been levied or has been shorl-ievied or erroneously refunded, the proper officer may-(a) in the case of any import made by any individual for his personal use 01' by government or by any educational, research or charitable institution or hospital, within one year; 10 (b) in any other case within six months from the relevant date, serve netice on the person chargeable with the duty which has not been ilevied or which has bead 80 short-levied or to whom the refund has erroneously been made requiring him to show cause why he shouild not pay the amount 15 specified in the notice: "; (b) in the proviso, for the words' "six months" " the words' "one ye  - and "six months'" shall be substitutecf 7 atfter section 28 of the customs act, the following section shall be insertecl, namely:-insertion of new section 28a "28a notwithstanding anything contained in this act, if the power central government is satisfiednot to (a) that a practice was, or is, generally prevalent regarding levy of duty (including non-levy thereof) on any goods imported into, or exported from, india; and (b) that such goocfs were, or are, liablerecover duties not levied or shortlevied a a result of ,eneral practice (i) to cfuty, in cases where according to the saicl practice the duty was not, or is being, levied, or (ii) to a higher amount of duty than what was, or is being, levied, according to the said practice, 30 then, the central government may, by notification in the oftlcial gazette, djrect that the whole of the duty payable on such joods, or, as the case may be, the duty in excess of that payable on iuch goods, but for the said practice, shall not be required to be paid in respect of the goods on which the duty was not, or is not being, levied or was, 01' i8 being, short-levied, in accordance with the said practice" 3s 8 in section 46 of the customs act, in sub-section (3),-ameadmedtof secuon  (a) in the proviso, for the words "such manifest or report" the words "such i1'eport" shall be substituted; (b) after the proviso as so amended, the following further proviso shall be inserted, namely:-"provided further that a bill of entry may be presented even before the delivery of such manifest if the vessel by which the goods have been shipped for importation into india is expected to arrive within a week from the date of burb pn!sentation" 9 in section 61 of the customs act,-amend  ment of iectioft 61 (a) for the opening paragraph, the following shall be substituted, namely:-"any warehoused goods maybe left in the warehouse in which they art" deposited or in any warehouse to which they 5 may be removed,-(a) in the case of non-consumable stores, till 'the expiry of three years; and 10 (b) in the case of any other goods, till the expiry of one year, after the cbte on which the proper officer made an order under section 60 permitting the deposit of the goods in a warehouse: "; (b) in the first proviso, for the words "three yeais", in both places where they occur the words "three years or one year as the case may be," shall be substituted is 10 in section 75 of the customs act-amendmental section '7~ (a) after sub-section (1), the following sub-section shall be inserted, namely:-"(la) where it appears to 'the centr'al govemment that the quantity of a particular marterial imported into jndlla is mote 20 than ihe total quantity of like material that has been used in the goods manufactured in india and exported outside india, then, the central government may, by notification in the official gazette, declare that so much of the material as is contained in the goods exported shall, for the purpose of sub-section (1), be 2s deemed to be imported material"; (b) in sub-section (2), in clause (a), for the words "gooda of that class or description", the words "export goods of that class or description" shall be substituted 11 in section 113 of the customs act, in clause (i), after the words 30 "dutiable or prohibited goods", the words "or goods entered for exportation muler claim for drawback" shall be insel'lted 12 in section 122 of the customs act, for clauses (b) and (c), the following clauses shall be substitutecl namely:-amendment of section 118 amendment ot section 122  (b) where the value of the goods liable to confileation dots not 3' aceed twenty-five thousand rupees, by an aaaistant cojlectgr of customs; (c) where the value of the goods liaible to conftaeatloft ,4081 not ex~eed two thousand five hundred rupees, by a ~ted 'o~ of cus'toms lower in rank than an assistant collector of customs" 40 amen6-rnnt ·ot section 128 13 in section 128 of the customs act, in sub-section (1) in the 'ot'ej1to irt patagraph, after the woil"ds "any decision ~ order passed ·uader thll act", the brackets, words and figures "(not ibei1lg an order pusad udder section 130)" shall be inserted 14 for section 130 of the customs act, the following section abau be 4' substituted, namely:-substitution of new section for section 130 powers of revision of board s "130 (1) the board may, of its own motion or otherwise call for and examine the record of any proceeding in which a collector of customs has passed any decision or order under this act for the purpose of satisfying itself as to the correctness; legality or propriety of such decision or order and may pass such order thereon as it thinks fit to is 20 30 ,(z) the collector of customs may of his own motion or otherwise call for and examine it he record of any proceeding in which an oftlcer of customs sulbordinate to him has passed any decision or order under this act (not being an order paased in appeal under section 128) for the purpose o£ satisfying himself as to the correctness, legality or propriety of such decision or order and may pass such order thereon as he thinks fit (3) (a) no order enhancing any penalty or fine in lieu of confiscation or confiscating goods of greater value shall be passed under this section unless the person affected by the proposed order has been given a reaijonable opportunity of showing cause against it (b) where the board or, as the case may be, the collectorot customs' is of opinion that any duty of customs has not !been 1ev1ad of has been shott-levted, no order levying or enhancing the duty shall be tn'atfe under this section unless the person affected by the pr0posed order is given notice to show cause against it within the time limit specified in section 28 (4) no proceeding shall be initiated under this section in respect of any decision or order after the expiry of a period of one year from the date of such decision or order: provided that where in respect of any decision or order passedby an officer of cuc;toms before the commencement, of the culjtoms, central excises and salt and central boards of revenue (amendment) act, 1977, the period of one year for initiating revision proceedings had expired at such commencement, then, revision proceedings may be initiated within a period of six months from such commencement"  15 in section 131 of the customs act, after sumection (z), the follow-35 iftg sub-section shall be inserted, namely:-amend ment of section 131 "(2a) an application under sub-section (1) shall 'be accompanied by a he of one bundred and twenty  five rupees" 11 iii section 135 of the customs act, for the words "six months", wherever they occur, the words "one year" shall be subsututect 40 11 after section 143 of the customs act, the following seotion shall be inserted, namely:-18 of 1167 amendment of section 135 insertion of new section 143a duty defer_ ment "l~ (1) when any material is imported under an import licence belongin~ to the category of advance licence granted under 1m, orger made under the imports and exports (control) act, 1947, 'subject to an obligation to export the goods as are specified in the said licence the assistant collector of customs may, notwithstanding anything contained in this act, permit clearance of such material 1vtthout payment of duty leviable thereon (2) the permission for clearance without payment of duty unrler bub4~tiol1 (l)ehtdl be subj~ to the following conditian  1hat is to so, 88y-(a) the duty payable on the material imported shall be adjusted against the dorawback of duty payable under this act or under any other law for the time bemg in force on the export of goods specifled in the said advance licence; and (b) where the duty is not so acijusted either for the reason 5 that the goods are not exported as required by the said advance licence or for any oth~ sufficient ifeason, the importer shall, notwithstanding anything contained in section 28, be liable to pay the amount of duty not so adjusted together with simple interest at the rate of twelve per cent per annum from the date the said 10 permission for clearance is given to the date of payment (3) while permitting clearance under sub-section (1), the assistant collector of customs may il"equire the importer to execute a bond with such surety or security as he thinks fit for complying with the conr\itions specified in sub-section (2)" 15 amendment of section 159 18 in section 159 of the customs act, for the words "in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following", the words "in two or more succeive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid" shall be substituted ao  chapter iii amendments to the central excises and salt act, 1944amendmental section 2 19 in section 2 of the central elreises and salt act, 1944 (hereafter 1 of 1944 in this chapter referred to as the central excises and salt act), for clause (f), the following clause shall be substituted, namely:-:as '(f) "manufacture" shall include-(i) any manufacturing process to make a product marketable to the consumell"s or users; (ii) any process carried out on the excisable gool\&-(a) with the aid of power or machine; or 30 (b) without the aid of power or machine where specifically so provided ill the first schedule, which, in either case, adds to their value but does not include any process camied out in the ccurse of manufacture of any other excisable goods;   3s fa of 191i8 (iii) applying, either on the excisable goods or on their packing or both, trade mark as defined in the trar\e and merchandise marks act, 1958; (iv) packing of the excisable goods for their storage in the retailer's or industrial consumer's premises, but does not in- 40 elude-    1; (a) packing done solely for the purpose of transporting the said goods; or (b) packing clone by the retailer; (v) any other process incidental or ancillary to the comple- 4s tion of a manufactured product, ancl the word "manufacturer" shall be construed' accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable goods, but also any person who engages in their production or manufacture on his own account;' 30 in section 3 of the central excises and salt act, for sub-section (8), the following sub-section shall be substituted, namely:-amend· mentof section 8 s , (8) different tariff values may be fixed-(a) for different classes or descriptions of the same excisable goods; or (b) for excisable goods of the same class or r\escription-(i) produced or manufactured by different classes of producers or manufacturers; or 10 (ii) sold to different classes of buyers: is ptrovided that in fixing different tariff values in respect of excisable goods falling under sub-clause (i) or sub-clause (ii) , regard shall be had to the sale prices charged by the rtifferent classes of producers or manufacturers or, as the case may be, the normal practice of the wholesale 'trade in such goods" 21 after section 3 of the central excises and salt act, the following section shall be inserted, namely:-insertion otnew section 3a u3a where any excisable goods, after payment of duty of excise, are subjected to further manufacture-20 adjuatnlent of duty (4) by any of the processes referred to in sub-clauses (i), (ii) and (v) of clause (f) of section 2; or (b) by applying any trade mark refel'll'ed to in sub-clause (iii) of the said clause (f); or (c) by the packing referred to in sub-clause (iv) of the said clause (f), 30 anlt such goods continue to fall under the same sub-item of a particular item in the first schedule, or if there is no sub-item, under the same item in the said schedule, the duty of excise already paid on such go('ds shall be adjusted against the duty of excise leviable thereon after such further manufacture" 12 in section 4 of the central excises and salt act-amend mentof section'-(a) fot' sub-section (2), the following sub-seeti( n shall be substituted, namely:-35 "(2) where the value of any excisable goods is determined with reference tij the price which includes the cost of tral1'sportation !rom the place of removal to the place of delivery, whether on average basis or otherwise, such cost of transportation shall be excluded from such price"; (b) in sub-section (4) ,-(i) for clause (c) including the explanation thereto, the following shall be substituted, namely:-'(c) urelated person" means a person who is so associated with the assessea that such person and the assessee s have such interest, dilrectly or indirectly in the business of each other, as may affect the price charged for the excisable goods, and includes a holding company, a subsidiary company, an employee, a relative, or a distributor of the assessee and 10 any sub-distributor of such distributor explanation i-in this clause "holding company" and "subsidiwry company" have the same meanings as in the companies act, 1956 1 of 1956 e~lanatwn ll-in this clause, "relative" has the same meaning as in the companies act, 1956 and includes-is l of 1956 (i) in relation to a partnership firm • a relative of every partner of that firm; and (ii) in relation to a company, a relative of the chairman or a relative of a director such directgr being a person controlling or managing the business of the 21) company  e~lanation lll-where by agreement or otherwise-(i) any excisable goods are generally sold only to or through a particu'- dealer in the whole of india or in more than one state or in the whole r:f a state 01'· in a region comprising several districts of one or more states los or in a metropolitan city having a population of more than one million as ascertainen at the last preceding census of which the relevant figures have been published; or (ii) the entire production of an assessee of any 30 excisable go;)ds is generally sold in an area or a city smaller than the area covered bv the region or the metropolitan city referred to in clause (i) and such sales are generally to or through one particu181l' dealer only such dealer shall be deemed to be a distributor or, as the case 35 may be, sub-distributorj"; (ii) in clause (d)-(a) for the portion commencing with the words' ''value'' in relation to' and ending with the words "wrapped, collt!lvied 40 or wounn", the following shall be substituted, namely:-'''vrlue'' in relation to any excisable goodl'-ei) where the /loom afe delivered at the time of removal in a packed condition includes the crst of packing requilfed for their ~tora·pf! in the tll!tl!lilp1"s or industria1 4s consumer'a premises hut doi!r not include--(a) the cost of nllckinll done snlely for the purpose of transportin{1 such /loods: (b) the cost of paclring done hy the retailer-: and (e) the cost of packing which is ot a durable nature and is returnable to the assessee or to the buyer, whosoever supplied it , ezplanation-in this sub-clause, "packing" includes the wrapper, container, bobbin, pim, spool, reel or warp beam or any other thing in which or on which the excisable goods are wrapped, contained or wound; > (b) after sub-clause (ii), the following e:q)lanatlon shall be inserted, namely:-10 'e~iamtion  :ror the removal of doubts his baby declared that "value" includes-(i) the expenses incurred by or on bebalf of the assessee for promoting the sale of ejrefsable goods; 15 (ii) the expenses incurred by the assessee for the sale of exdsable goods in the course of the wholesale trade either from the factory or from any place ,outside the factory: provided that where the sale is from any place outside the factory, the cost of transportation of the goods from the factory to s1reb place shall be dedueted; (iii) the expenses incurred by the assessee fof discharging the obligation for il'ectifying, manufacturing defects for the period for which such obugation is normally undertaken by or on behalf of the manufacturers of such goods, or any amount representing the discount or reduction made in the price of such excisable goods on account of transfer of the obligation aforesaid to any other person;  ' (i1') , the profit made,by the assessee on the sale of the excisable goods;' 30 13 after section 4 of the central excises ~nd s!llt act, the followin~ seetlon shall he inserted, namely:-insertion 01 new section 5   -_ -----  ---"5 (1) the central government mav, by rules made under this lie~ion provide for remission of duty of ex('isf! leviable em any excia-able jtnods which due to any natural' c8us~ are friuhd'to he dpftcient in quan'tity' 35 - remislion 01 duty on goods found deficient in quantity (2) anv rules made under sub-section (1) may, havin~ re~a,rd to the nature of the excisable ~oor1!1 or of pr~e~!llh~ or of curfng thereof the nerlod of their stoi'9j!p n'r' transft and' ~t1iet' relpvant considerations ftx the limit or limits of percentage b~yondwhic'h no "uch remission· shall be allowed: provided that' dffferpnt lfmft or hmfts nf perce"ta,e mllv be "xed for different varietfes of the:> samf' "1c'cisable ~oodi or· tn1- dfffetent areas 01' for different seasons" m after section 11 of the central excises and salt act, the fouowina sections shall be inserted, namely:-insertion of new sections lla,lib and lie clla (1) when any duty of excise has not been levied or paid or has been short-levied or short-paid or erroneously refunded, a central excise officer may, within six months from the 5 'r~lcvlult date, serve notice on the penlon chargeable with the duty which has not been levied or paid or which bas been short-:levied or short-paid orto whom the refund has erroneously been made, nsquir-1ng him to show cause why he should not pay the amount specifted in the notice: 10 recovery of duties not levied or not paid or shortlevied or short_ paid or erroneously refunded provided that where any duty of ex'cise has not been levied or paid or has been short-levied or short-paid or erroneously refunded by reason of fraud, collusion or any wilful misstatement or suppression of facts, or contravention of any of the provisions of this act or of the rules made thereunder with intent 15 to evade payment of duty, by such person or his agent, the provisions of this sub-section shall have effect, as if for the words "six months", the words "five years" were substituted e~ian4tion-where the service of the notice is stayed by an ao order of a court, the period of such stay shall be excluded in computing the aforesaid period of six months or five years, as the case may tma ' \ (2) the assistant collector of central excise shall, after considering the representation, if any mane by the person on whom notice is served under sub-section (1) determine the amount of duty of 35 excise due from such person (not hein~ in excess of the amount speeified in the notice) and thereupon such person shall pay the amount so determined (3) for the purposes of this section-(i) clrefund" includes rebate of duty of excise on excisable 30 goods exported out of india or on excisable materials ubefl in the manufacture of goods which are exported out of india; (ii) "relevant date" means,-(a) in the case of excisablr ~oods on which duty of excise har not been levied or naid or has been short-levied or short 35 paid, th,e date on which the duty was required to be paid under this act or the rules made thereunder; (b) in a case where duty of excise is provisionally assessed under this act or the rules made thereunder, the nate of adjustment of duty after th~ final assossment thereof:- 40 (c) in the case of excisable poods on which duty of excise has been el'l1'oneously refunded the date of such retund claim for-mund of duty 1tb, (1) any person e1ajmfn~ refund of any ituty of excir" may make an anplication for refund of such tiutv to the assistant collector of ceqtral excise before :tn~ ~1cpil'v of six months lfom the date of 45 f'yrle~t, of duty; -~ provided that the limitation of six dlonthlhall not appry w~ any duty has been paid under protest ' s ea:plgnation-where any duty of excise is paid provisionally under this act or the rules maue thereunder, the periud of six months shall be computed from the date of adjustment of duty after tbi bnal assessment thereot (2) if on receipt of any such application, the assisqmt collector "01 central excise is satisfied that the whole or any part of tbe duty of excise paid by the applicant should be refunded to him, he may , make an order accordingly 10 (3) where as a result of any order passed in appeal or l1'evision under this act refund of any duty of excise becomes due to any person, the assistant collector of central excise may refund the amount to such person without his having to make any claim in that ~ -is (4) save as otherwise provif\ed by or under this act, no claim for refund of any duty of excise shall be entertained ]0 (5) notwithstanding anything contained in any other law, ,the provision of this section shall alao apply to a clafm for refund of any amount collected as duty of excise made on the ground that the goods in respect of which such amount was collected were not excisable or were entitled to exemption from duty and no court shall have any jurisdiction in respect of such claim 2s ea:planation-for the purposes of this section, "refunel" includes il'ebate of duty of excise on excisable goods exported out of india or on excisable materials used in the manufacture of goods which are exported out of india nc notwithstanding anything contained in this act if tbp central government is satisfted-(4) that a practice was, m is, generally prevalent regarding levy of duty of excise (including non-levy thereof) on any excisable goods; anel ('b) that such goods were, or, are, liable-(i) to duty ot excise, in cases where according to the said practice the duty was not, or is not bejn:g, levled, or power not to recover duty of excise not levied orlhortlevied  a retlult of general practice 3s 40 (ii) to a higher amount of duty of excise than what wu, or is being, levied according to the said practice then, the central govemment may, by notiftcatlon in the ofilctal gazette, direct that the whole of the duty of excise payable on such goods, or, as the case may be, the duty of excise in excess of that payable on such goods, but for the said practice, shall not be required tn be paid in respect of tha goods on which the duty of excise was not, or is not being, levied, or was, or is being short-levied, in accordance with the said practice' amendmentor eetion h 4s 15 in section 35 of the central excises and salt act, in sub-section (l), after the words "the rules made thereunder", the brackets, words, figures and letter  (not being an order passed under section 35a)" shall be inserted as for section 35a of the central excises a~ salt acl, lh,e fo~widi  '  \_  '  " )' i" i"~ 1 becuon shall be substituted, namely:-subiututionof neon section for section 35a revision by board or collector "35a (1) the central board of excise and c~~~ r9;~m~~cl under the central boards of revenue act, 1963, (hereid8fter referre4, m of 1963 to fts the board), may,' of its own motion or otherwise, call-'for and 5 examine the record of any proceeding in which any decision or one!' ,hils been passed under this act or the rules made thereunder by a collector of central excise (not being a decision oil' order-jjassedojli ap~a~ under section 3s) for the purpose of satisiying itsej:f ~ to the corr~c~ess, legality or propriety of such decision or~rd!r a~<l u\'y 10 ~~s8 s~ order thereon as it thinks fit (2) -the collector of central excise may, of his own motion or otherwise call for and examine the record of any proceeding in which any ciecision oj;" order has been passed under this act or ~ rules made thereunder by a central excise officer subordinate to ~ ~ot is " ' ~ ,"  : 1 being a decision or order passed on appeal under section 35) for the purpoae o~ satisfying himself as to the correctness, legality or propriety of such decision or order and may pass such order·tbereon jls he thinks 6t (3) (a) no decision or order under this section shall be varied so 20 as to prejudicially affect any p~rson unless such per~on is giy~n a reasonab~ opportunity of making a t'epresentation and, 'if 'he so ~~~, 9t l,,~g heard i~ his defence (b) where the board or, af the case may be, tbe collector of central excise is of opinion that any duty of excise has not been 25 levied or has been short-levied or erroneously refunded, no qrder levying or enhancing the duty or no order requiring payment of the duty 80 refunded, shall be made under this section unless the person affected by the proposed order is given notice to show cause against n, ~~j,n lae ~e ~mit sp~i11ed in section lla," 30 (4) no proceedings shall be commen~~~ ':ln4~~ t~ ~iion in respect of any decision or order [whether such decision or order has been passed before or after the commencement of the customs, central exdaes and salt and central boards of revenue (amendment) act, 1977] after the expiration of a period of one year from the date of 35 s~cb deci,,!jion or order ,1:j l~ se~tion 36 of the central excisj!s and salt act,- ,   '  '  - , " ' , '  •••• , < , (a) after sub-section (1), the following sub-section shall be inaerteci, namely:-amendmentof section 18 "(la) every application under sub-section (1) u be 40 accompanied by a fee of ifupees one hundred and twentf~~ve'~; (b) in sub-section (2), after the second proviso, the fouowinl ,,' further proviso "hah b~ inserted, ~amely:-~ " ' ,:   ,  '  !wravided also that where the central government is of ~on,ihat any duty of excise has 'not been levied or hal been ",s short-levied or erroneously refunded, no order levying or en  bancing the duty or no order requiring payment of the duty so refunded, shall be made under this section unless the person affected by the proposed order is given notice to show cause against it within the time limit specified in section lla" s 28 in section 37 of the 'central excises and, salt act, in sub-sectiod amend (~), af~r ~use (ib), the following clause ,hall be in,serted, namely: _ ment of  - i i , ,"    •• - "'   section "(iic) provide for the remission of tluty of excise leviable on any 37 excisable goods, whic!h due to any natural cause are fo'udd to be 10 deftcient in quantity, the limit or limits of percentage beyond which no such remission shall be allowed and the different limit or limits of percentage fur different varieties of the same excisable goods or for di1ferent areas or for different seasons;"  29 mtet: section 37 of the central excises and salt act, the following 's section shah be inserted, nam~ly:-insertion of new section 37 \ delegation of powers "37a the central government may, by notiftcat~~ ijl tjie 0fbclal gazette, direct that subject to such connitions, if any, as may be specifted in the n9tiftcation-(0) any power exercisable by the board under this act may be exercisable also by a coli~ctor of central excise empowered in this behalf by the central government; (b) any power exercisable by a collector of central excise under this act may be exercisable also by a deputy collector of central excise or an assistant collector of central excise em-2s powered in this behalf by the central government; (c) any power exercisable by a deputy collector of tatnkal excise under this act may b1! exercisable also by an assistant collector of central excise empowered in this behalf by the central government; and 30 (d) any power exercisable by an assistant collector of central excise under this act may be exercisable also by a gazetted oftker of central excise empowered in this behalf by the baard!'   chapter iv amendment to the central boards of rilvenue act, 19633s 30 iii seetion 3 of the central boards of revenue aet 1963 in lubseetiod (2) for the words "dot exeeeding flve" the words "not exeeeding seven" shall be subsdtuted amendmentot act 54 of 1983  statement of objects and reasonsthe bill seeks to carry out certain amendments in the customs act, 1962 and the central excises and salt act, 1944 essentially the amendmerits are intended to remove certain practical difficulties experieruled' in the operation of customs and central excise laws, and doubts regardillg tht:l intel'pretation of certain important provisions therein, to provide facilities to exporters and to increase the minimum punishment for smuggling some of the amendments to the customs act and the central excises and salt act are similar in nature the bill also seeks to amend the 'central boards of revenue act, 1963, with a view to raise the maximum strength of the members of each of the two boards (the central bo&rd of direct taxes and othe central board of excise and customs) as it has become necessary in view of the phenomen8ll increase in the responsibilities of the two boards the notes on clauses appended to the bill explain in detail the various provisions thereof new d&;uu; satish agarwal the 3rd decqt7iber 1977  president's recommendation under articles 117 and 274 of the constitution of india[copy of letter no 492/11/77-cus vi, dated the 13th december, 1977 from shri satish agarwal minister of state in the ministry of finance to the secretary, lok babha] the president having been informed of the subject matter of the cus  toms, central excises and salt and central boards of revenue (amend, ment) bill, 1977 has recommended, under clause (1) and clause (3) of article 117 and clause (1) of article 274 of the constitution, the introduc- 1 tion in, add consideration by !ok sabha of the said bill " czwse 2-this clause seeks to amend clause (28) of section 2 of the customs act, 1962 with a view to make the limits of the "indian customs waters" as co--extensive with that of the contiguous zone of india under section 5 of the territorial waters, continental shelf, exclusive economic zone and other maritime zones act, 1976 clause a-this clause seeks to amend section 14 of the customs act 1962 wi'th a view'to specify the rate of exchange ~hich shall be applicabl~ for calculating the pri::e both for imported goods and the export goods it also seeks to avoid the n~essity under the existing law of recalculating the price with reference to the date of inward entry of 'the vessel clause 4-this clause which seeks to amend section 15 of the customs act is consequential to the amendment proposed in clause 3 to section 1~  clause s-this clause seeks to amend section 27 of the customs act to provide a longer time limit, ie, one year for claiming refund of duty of customs in respect of non-commercial importations, ie, importations made by any individual for his personal use or by government or by any educational, research or charitable institution or hospital clause 6-this clause seeks to amend section 28 of the customs act to provide a longer time limit;ie, one year for issuing notice in respect of non-commerclal imporiations for payment of duties not-levied, shorilevied or erroneously refunded this change is complementary to the rmendment proposed in clause 5 clause 7-this clause seeks to in'!el't a new section 28a in the customs act with a view to empower the central government not to recover duties not levied or the difference in duty short-levied as a result of the practice that generally prevailed during the period the non-levy or short-levy occurred the rationale for this amendment is that if all concerned--the assessee, the customs authorities and the consumers-had acted upon a ('ertain basis, that basis should not be disturbed retrospectively and no demand should be made in respect of assessments made on that bas1a filerely because subsequently a different assessment is regardpd as appropriate clause 8-this clause seeb ¥> amend section 46 of the customs act at present only in special circumstances the co~lector may permi,t a bill of entry to be presented before the delivery of import manifest or report a provision is now being made in this clause that the bill of entry may be presejyted even before the ftling of import manifest if the vessel by which the goods have h~en shipped for importation into india is expected to arrive within a week cl4ub8 9-this clause seeks to amend section 61 of the customs act with· a view to provide that except for non-consumable stores the period for which thl' goods can be retained in the werehouse would be one year insitead of three years as at present  clause io-·titis clause seeks to insert a new sub-section (ia) in secbon 75 of the customs act with a view to introduce a provision for deeming materials as imported for grant of drawback of duty if on an overall basis, it appears to the central government that the quantity of imports of a material is more than, the quantity of comparable material used in all the exported products, then the central govenunent may, by notfftcation in the official gazette" provide that such material when contained in any ~ort goods shall, for the purpose of granting drawback, be deemed to be imported material a consequential change is also being made in section 75 (2) (a) by adding the word 'export' before the words 'goods of that c19ss or description' clause h-this clause seeks to amend clause (i) of section 113 of -the customs act which provides for confiscation of goods in case of misdeclilration it is now being provided that this clause will apply not only 'to dutiable and prohibited goods but also ,to goods entered for exportation under claim for drawback clause 12-this clause seeks to amend section 122 of the customs act with a view to enh:mce the power of adjudication of the assistant collectors and of gazettci officers lower in rank than 'the assistant co1s1eclors clause 13-this clause seeks to amend section 128 of the customs aet with a view to male it clear that no appeal lies to the board under section 128 of the customs act against any order pallsed by a colleetor of customs under section 130 of the customs act clause 14-this clause seeks to substitute section 130 of the customs act with a view to make two changes, narruely, (i) to give 'the power to the collectors to revise the decisions or orders passed by officers subordinate to them, and (ii) as in the case "f the central excises and salt act, t!l provide a time limit for commencement of the proceedings and not for their finalisation clause 15-this clause seeks to insert a new liiub-section (2a) in section 131 of t:le customs act to p'rovide that an application for revision shall be accompanied by a fee of one hundred and twenty£ive rupees clause l6-this clause seeks to amend section 135 of the customs act with a view to enhance the minimum punishment for certain kintb of offences from six months to one year clause 17-this clause seeks to insert a new section 143a in the cu8~ toms act with a view to provide for deferment of payment of duty on goods imported against advance licence granted under the imports and edcports (control) act, 1947 and its adjustment against the drawback payable on the export of produetg specified in such licence the, new provision also requires the importer to pay the unadjusted amount together with interest on that amount at the rate of 12 per cent per annum czeluse 18-this clause seeks to amend section 159 of tlie customs act relating to layin~ of rules before ellch hr,use of parliament to bring it in oonfirmlty with the recommendations of the committee on subordinate legislation clause 19-this clausp s~ek!; to ~ub<:mlltn dause (f) of sectinn 2 of the central excises and salt act with a view to -"ake it clear that the word 'manufacture' shall include certain processes, applying of a registered trade mark as defined in the trade and merchandise marks act 1958 on the excisable goods and the packing of excisable goods for thed storage in the retailer's or industrial consumer's premises but shall not include the packing done solely for the purpose of transport of the said goods gil' packing done by the retailer the processes comprise (i) any manufacturing process to make a product marketable to the consumers or users, (ii) any process carried out on the excisable goods which adds to their value and which is carried out with the aid of power or machine or if carried on without the aid of power or machine where specifical1y so provided in the first schedule provided that such process is not carried out in the course of manufacture of any other goods, and (iii) any other process incidental or ancillary t:> the completion of a manufactured ll'l"oduct clause 20-this clause seeks to substitute sub-section (3) of section 3 of the central excises and salt act with a view to set the legal position beyond doubt that different tariff values may be fixed not only for different classes or descriptions of the excisable gooos but also for (i) excisable goods of the same class or description produced or manufactured by different classes of pr:>ducers or manufacturers, or (ii) excisable goods of the same class or description sold to different classes of buyers while fixing different tariff values, regard should be had to the sale prices charged by the r\ifterent classes of producers or manufacturers or to the normal practice of the wholesale trade in such goods clause 21- this clause seeks to insert a new section 3a in the central exeises and salt act which prov:des for adjustment of the duty already paid against the duty leviable after further manufacture as indicated in this clause clause 22-this clause seeks to amend section 4 of the central excises and salt act with a view to bring out more clearly the intention behind the valuation provision introduceci in the central excise law in the year 1973 and to effect certain other changes sub-section (2) af section 4 is being substituted to provide that even in the cases of equalised freight the cost of transportation shall be excluded from the price the definition of 'related person' is also being recast to provide that only a person who is so associated with the assessee' that such person and the assessee have such business interest between each other as may aftect the price charged will be a related person employee of the assessee is also being included in the category of 'related persons' the definition of 'relative' is being extended to cover in the case of a partnership firm, a relative of a partner and in the case of a company, a relative of the chairman or of a director who is controlling or managing the business of the company the expressions 'distributor' and 'sub-custributor' are also being defined clause (d) of sub-section (4) is also amended with a view to effect two changes in the lirts place 'sub-clause (i) is being amende(! to make it conform to the new definition of 'manufacture' further, it is now being c1arl1led that the cost of packing which is of a durable nature is not to be included not only when the packing supplien by the assessee is returnable to him butaiso where the p'lck;n~ supplied by the buyer is returnable to him lastly, the explanation is being reworded to make it clear that it is an inclusive and not an exhaustive definition of 'packing' an explanatfon is being added to aub-clause (11) of clause (d) to clarify that the value includes the expenses incurred by or on behalf of the ass&osee for promoting the sale of excisable goods, the expenses incurred by the ~essee for the sale of ex"'cisable goods in the course of wholesale trene, the expenses incurred by the assessee for discharging the warranty obligation for rectifying manufacturing defects for the period during which qonnally warranty is given ann also any amount representing the discount or il'eduction given for the transfer of the warranty obligat;on to aoy other person the value shall also include the profit made by the &s8e5iee on the sale of the excis:  ble goods clause 23-this clause seeks b insert a new section 5 in the central excises and salt act with a view to empower the central government to make rules for remission of duty on any excisable goods liable to duty but which due to any natural cause are found to be deficient in quantity such rules may also fix the limit or limits 01 percentage beyond which no such remission shall be allowed and the different limit or limits of percentuge for different varieties of the same excisable goods or for different areas or for different seasons clause 24-this clause seeks to insert new sections llat lib and lie in the central ex~ises and salt act section lla seeks to incorporate in the act the existing provision contained in the central excise rules relating to recovery of duties not levied or not paid or shoft-levled or short-paid or eri"jneously refunded similarlyt dew section llb seeks to incorporate in the act the time limit of· six months provided in the central excise rules for claiming refund of duty paid in ~s it also imposes a prohibition that no claim for refund, except as otherwise provided by or under the central excises and salt act, shall be entertained it is being further provided that the pl":>visions of this section shall also apply to a claim for refund of any amount cauded as duty of excise though the goods in respect of which such amount was collected were in fact mt liable to duty of excise or were exempt from such duty and no court shall have any jurisdiction in respect of such claim new section uc seeks to provide that if the central government is satisfied that there has been a uniform practice or near uniform practice prevaiung all over india for assessment of any goods, the government may direct that the duty in excess of that payeble in accordance with such practice shall not be required to be paid for the period during which the government considers that such practice was prevalent clause 25-this clause seeks to amend section 35 of the central excises and salt act with a view to provide that no appeal ullder this section shall lie to the central board ofexciae and customs against a decision or order passed in revision under section 35a by a collector of central excise clause 26-this clause'seeles to substitute section 35a of the ·ceral excises and salt act with a view to make two chanits in thisprovisian in the ftrst place, the couector of central excise· is b,mg, ,given the power to reviae any decision or order ~1ihd under, ,tbe,central bxcises and salt act or the, rules made thereunder by a central exmse dlfteer subordinate to him secondly, it is beidg provided that where the proposed order in revision relates to levy or  enhancement of duty or requires pa~ent·of duty erroneously refunded, the notice to shlw cause should be given to the person affected witbid the time limit specified in section lla ie the time limit for issuing notice for recovery of duties not levied or not paid, or short-levied or short-paid or erroneously refunded clause 27-this clause seeks to amend sectkm 36 of the central e1cc1ses and salt act, firstly to provide that every application for revision under sub-section (1) shall be accompanied by a fee of rupees one hundred and 'tweny-five and secondly that no order levying or enhancing the duty or no order requiring the payment of duty so refunded shall be made by the central government unless the person affected by the proposed order is given notice to show cause against it within the time limit specified in section lla ctause 28-this clause seeks tj nmend sed;on 37 of the central excises an1 salt act for m1king rules in respect of matters dealt with by new se :tion 5, inserted by clausz 23 clause 29-this clause seeks to insert a new section 37a in the central excises and salt act to p:ovide for a general prjvision lor delegation of powers as in section 152 of the customs act clause 30-this clause seeks to amend sub-section (2) of section 3 of the central boards of revenue act, 1963 with a view to provid;! that each of the two boards, namely, t:le central board of direct taxes and the central board of excise and customs shall consist of such number of persons not exceeding seven as the central gjvernment may deem fit to appoint the maximum strength, at present, is five clause 30 of the bill seeks t::> amend the central boards of revenue act, 1963 the effect of this amendment will be that the maximum number of members of each of the two boards, namely, the central bjard of excise and customs and the central board of direct taxes could be up to seven instead of the present strength of five the amendment proposed as such does not involve any expenditure, but as and when the number of members is increased, there will be additional expenditure it is not posslble to anticipate accurately the expenditure which would be inv'::>lved in this regard because that would depend on the increase in the number of members however, on the basis that the maximum number of members would be seven in each of the two boards, the recurring annual expenditure is likely to be ot the order of rs 2,64,000 the non-recurring  expenditure will be of the order of rs 60,000 clause 28 seeks to insert a new clause in sub-se~tion (2) of section 37 of the central excises and salt act, 1944 which provides for the making of rules under the new clause, the central government is being empowered to make rules to provide for the remission of duty of excise leviable on any excisable goods which due to any natural cause arc found to be deficient in quantity, for the limit or limits of percentage beyond which no such remission shall be allowed and for the different limit or limits of percentage for di~erent varieties of the same excisable g::lods or for different areas or for different seasons the matters with respect to which rules may be made ate matters of procedure and detail and it is not practicable to provide them in the bill itself the delegation of legislative power is, therefore, of a normal character  - (52 of 1962) -  definitions - 2 in this act, unless the context otherwise requires,-- - -  (28) "indian customs waters" means the waters extending into the sea to a distance of twelve nautical milei!i l!rjbaiure& 'fnm, the appropriate base line on the coast of india del includes my be" gulf, harbour, creek or udal river;     - iu of 1975 14 (1) for the purposes of the customs tariff act, 1975, or any other law for the time being in ~)rce whereunder a duty of customs is chargeable on any goods by reference to their value, the value of such goods shall be d·eemed to be-valuation of goods for purposes of assessment (a) the price at which such or like goods are ordinarily sold, or loffered for sale, for delivery at the time and place of importation or exportation, as the case may be, in the course of international trade, where the seller and the buyer have no interest in the business of each other and the price is the sole consideration for the sale or offer for sale: provided that in the case of imported goods, such price shall be calculated with reference to the rate of exchange as in force on the relevant date referred to in sub-section (1) of section 15; -  - - - 15 (1) the rate of duty, rate of exehange and tariff valuation, if any, applicable to any imported goods, shall be the rate and valuation in force-(a) in the case of goods entered for home consumption under section 46, r:>n the date on which a bill or entry in respect of such goods is presented under that section; date for determination of rate of duty and tariff valuation of imported goods (b) fn the case of goods clearer! from a warehouse under section 68, on the date on which the goods are actually removed from the warehouse; (c) in the case of any other goods, on the date at payment of duty:  i ' provided that if a bill of entry has been presented before the date ~f entry inwards of the vessel by which the goods are imported, the bill of entry shall be deemed to have been presented on the date of such entry inwards - - - -  (3), for the purposes of section 14 and this seetion-(a) "rate "f exchange" means the rate of exchange determined by 'the central government for the comrcrsion of indian currency into foreign  currency or foreign currency into indian currency; 7 of lm7 (b) "foreign currency\' and "indian currency" have the meanings respectively assigned to them in the foreign exchange regula-·tionad, 1947 - - - - - claim for refund of duty 17 (1) aay person chumjng refund of any duty paid by him in puraumae·of anm-dar of·assessirent made by an ,deer of eustems lower in: rbdk than an auistant collector of customs may make an application for refund of such duty t) the assistant collector of customs before the expiry of six months from the date of payment of duty: previded that the itmituion of"ix mcmths ·shall not apply where·· any duty bas'been paid under protest &rplanation-:wbere any duty is paid provisionally under section 18, the period, of six months shall be computed from the date at adjustment of duty after the final assessment 'thereof - - - - - 28 (1) when aay duty has not been levied or has been short-levied or erroneously refunded, the proper officer may, within six months from the relevant date, serve notice on the person chargeable with the duty wbidh has not beerdevied orwhieh has'beensoshort-levied or to wh~m the ,refund ·bas·errolleeusjy been made, requiring him to show cause why 'he sh,yld not pay the amount specified in the notice: notlcelor payment of· duties bot levied, shol'tlevied or erroneously refunded provided that where any duty has not been levied or has been shortlevied or has been errel\eously l'<6funded by reason of collusion or any wilful mil-statement or suppression of facts by the importer or the exporter or the agent or employee of the importer 'or exporter, the profilll(jiis of this subaecttonshal1 have effect as if ilgr the words usix months" tbe words "five years" were substituted - - - - - m (1) - - - - - ktry ot loods on impor~ tauon (") a bt11 of entry under sulhection (1) may be presented at any time 1lfter '~he delivery of the import manifest or import report as the case may be: provided that the collector of customs may in any special circumstances permit a bnt of entry to be presented before the delivery of such manifest or repert - - - - - 61 any warehoused goods may be left in the warehouse in which they are deposited or in any warehouse to which they may be removed, till the expiry of three years after the date on which the proper officer made an order under section 60 permitting the deposit of the gojds in a warehouse: period for 'l'ihieh goods may remain warehoused pl'i:>vided that-(i) in the case of any goods which are likely to deteriorate, the aforesaid period of three years may be reduced by the collector of customs to such shorter period as he may deem fit; (ii) in the case of any goods which are not likely to deteriorate, the aforesaid period i()f three years may, od sufticient cause being shown, be extended by the collector of customs for a period not exceeding one year and by the board for such further period as it may deem fit: provided further that when the licence for any private warehowie is cancelled, the owner (jf any goods warehoused thej:ei'n shall, within seven days from the date on which notice of such cancellation is given or witni •• such extended period as the proper office may allow, remove the goocts from such warehouse to another warehouse or clear them for home consumption or exportation - - - - - 75 (1) - - - - - (2) the central government may make rules for the purpose of carrying out the provisions of sub-section (1) and, in particular, such rules may provide-drawback onimported materrials used in the manufacture of ,oods which are exported (a) for the payment of drawback equal to the amowlt of duty actually paid on the imported matedals used ill the manufacture of the goods or as is specified in the rules as the average amount of duty paid ijn the materials of that class or description used in the manufacture of goods of that class or desci'iption either by manufacturers generally or by any particular manufacturer; - - - - - confiscation of gockla attempted to belmproperly exported, etc 113 the following export goods shall be liable to confiscation:-- - - - - (i) any dutiable or prohibitet\ goods which do not correspond in any material particular with the entry made under this act or in the case of baggage with the declaration made under section 77 in respect thereof; - - - - - 122 in every case under this chapter in which anything is liable to confiscation or any person is liable to a, penalty, such confiscation or penalty may be adjuged,-- - - - - adjudication of eonftacations and penalties (b) where the valve of the goods liable to confiscation does not exceed ten thousand rupees and where the penalty proposed to be imposed does not exceed two thousand rupees, by an assistant collector of customs; (c) where the value of the goods liable to confiscation does not exceed ode thousand rupees and where the penalty proposed to be imposed does not exceed two hundred rupees, by a gazetted officer of customs lower in rank than an assistant collector of customs - - - - - 128 (1) any person aggrieved by any decision or order passed under appeals 6ia act may, within three months from the date of the communication ~ him of such decision or order-(4) where the decision pr order has been passed by a conector at customs, appeal to the board (b) where the decision or order has been passed by an ofticer of customs lower in rank than a collector 1:>( customs, appeal to the appellate collector of customs: provided that the appellate authority may, if it is satisfted that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three m:>nths, allow it to be !presented within a further period of three months - - - - - powers of revision of board 130 (1) the board may of its own motion or on the application of any aggrieved person call for and examine the recorr\ of any proceeding in which an officer of customs has passed any decision or order under -t1iis act (not being an order passed in appeal under section 128) for the purpose of satisfying itself as to the legality or p'ropriety of any such ·decision or order and may pass such order thereon as it thinks fit: provided that no order enhancing any penalty or fine in lieu of con- fiscation or confiscating goods of greater value shall be passed under  this section unless the person affected by the proposed lorder has been given a reasonable opportunity of showing cause against it: provided further that where the board is of opinion that any duty ,of customs has not been levied or has been short-levied, no order levyiag or enhancing the duty shall be made unless the person affected by "the proposed order is given notice to show cause against it within the "time limit specified in section 28 (2) no decision or order passed by an officer of customs shall be 'revised under this section by the board of its own motion and no application for the revis):>n of any such decision or order shall be entertained, after the expiry of two years from the date of such decision or order  - - - - - 135 (1) without prejudice to any action that may be taken under ; this act, if any person-evuiodof duty or prohibitions (4) is in relation to any goods in any way knowingly concerned · in any fraudulent evasion or attempt at evasion of any duty charge-· able thereon or of any prohibition for the time befng imposed under this act or any other law for the time being in force with respect to · such goods, or (b) acquires possession of or is in any way concerned in carryjd,,-removing, depositing, harbouring, keeping, concealing, selling or purchasing or in any other manner dealing with any goods which he knows or has reason to believe are liable to confiscation under aec-  tion 111, he shall be punishable,-(i) in the case of an offence relating to any of the goods to w1ilc1i  section 123 applies and the market price whereof exceeds one laldl of rupees, with imprisonment for a term which may extend to seva years and with fine: provided that in the absence of special and adequate reasons to - the contrary to be recorded in the judgment of the court, such imprisonment shall not be for less than six months; (ii) in any other case, with imprisonment for a term which may extend to three years, or with fine, or with both (2) if any person convicted of an offence wider this section or under sub-section (1) of section 136 is again convicted of an offence under tbui c section, then, he shall be punishable for the second and for every subsequent offence with imprisonment for a term which may extend to seven  years and with fine: provided that in the absence of special and adequate reasons to tlie contrary to be recorded in the judgrrumt of the court su~ imprisouinent shall not be for less than six months (3) for the purposes of sub-sections (1) and (2), the following sbad" not be considered as special and adequate reasons for awarding a sentence , of imprisonment for a term of less than six months, namely:-' (i) the fact that the accused has been convicted for the first time ' for an offence under this act; (ii) the fact that in any proceeding under this act, othertli8l'l a prosecution, the accused has been ordered to pay a penalty or the goods which a~e the subject matter of such proceectings have bed·· ordered to be confiscated or any other action has been taken apiiiit him for the same act which constitutes the offen-ce; (iii) the fact that the accused was not the principal offender and  was acting merely as a carrier of goods or otherwise was a seeolidary  party to the commission of the offence; (iv) the age of the accused  - - - - - ruleland certajn notifteationa to be laid before paruament lb every rule made under this act ilnd every notit\cation ismed' under sections 11, llb, 11h, 11-1, 11k, 11n, 14, 25, 43, 86, 89; 70; 14; 'l5j 76, 98, 101 and 123 shall be laid as soon as may be after it is made or issued ' before each house of parliament while it is in session for a total period of thirty days which may be comprised in ode session or bl two succeiidve sessions, and if~ before the expiry ot the session in which it is so ldl or' the session immediately following, both houses agree in matdng 'any' modification in the rule or notification or both houses agree that the'rule  should not be made or the notification should not be issued the rule or notification shall thereafter have e1fect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shan be without prejudice to the validity of anything previously done under that rule or notification - - - - -  ex'l1lacts prom the central excises and salt ak:r, 1944(1 01' 1944) - - - - - 2 in this act, unless there is anything repugnant in the subject or deflnicontext,-ticma - - - - - (f) "manufbcture" includes any process incid~ntal or ancillary to the completion of a manufactured product; and (i) in relation to tobacco includes the preparation of cigarettes, cigars, cheroots, biris cigarette or pipe or hookah tobacco, chewing tobacco or snuff;  (i4) in relation to m8nufactul'ed tobacco, includes the labelling or re-labelling of containers and re-packing from bulk packs to retail packs or the adoption of any other trea~ent to render the produt:t marketable to the consumer; (ii) in relation to salt, includes collection, removal, preparation, steeping evaporation, boiling, or anyone or more of these processes, the separation or purification of salt obtained in the manufacture of saltpetre, the separation of salt from earth or other substance so as to produce alimentary salt, and the excavation or removal of natural saline deposits or efflorescence; (iii) in relation to patent or proprietary meaicines as defined in item no 14e of the first schedule and in relation to cosmetics and toilet preparations as defined in item nof4f of that schedule, includes the conversion of powder into tablets or capsules, the labellilli dr re-iabelling of containers intended for consumers and re-packing from bulk packs to retail packs or the adoption of any other treatment to render the product mark~~ abje to the consumers; (iv) in relation to goods comprised in item no loa of the first schedule, idcludes sizing, beaming warping, wrapping, winding or reeling, or anyone or more of these processes, or tne conversion of any form of the said goods into another form at such goods; and the word "manufacturer" shall be construed accordingly and shall fnc1ude not only a person· who employs hired labour in the production or manufacture o~ 'excii;at)le goods, but also any person who engages m their production or manufacture on his own account; - - - - - 3 (1) - - - - - (3) different tariff values may be ftxed for different classes or des criptions of the same article - - - - - duties 'pecified in the first schedule to be levied 4 (1) - - - - - valuation of excisable goods for purposes of charging of duty of excise (2) where, in relation to any excisable goods the price thereof for delivery at the place of removal is not known and the value thereof ii determined with reference to the price for delivery at a place other than the place of removal, the cost of transportation from the place of ~emoval to the place of delivery shall be excluded from such price - - - - - (4) for the purposes of this section,-- - - - - (c) "related person" means a person who is so associated with the assessee that they have interest, directly or indirectly, in the business of each other and includes a holding company, a subsidiary company, a relative and a distributor of the assessee, and -any subdistributor of such distributor expzanation-in this clause "holding company", subsidiary company'" and "relative" have4!tthe same meanings as ih the companies act, 1956j :  ;  ~ : ':: (d) "value" in relation to any excisable goods,-(i) where the goods are delivered at the time of removal in a packed condition, includes the cost of such packing except the cost of the packing which is of a durable nature and is returnable by the buyer to the assessee , j' explanation-in this sub-clause "packing" means the wrapper, container, bobbin, pirn, spool, reel or warp beam or any other thing in which or on which the excisable goods are wrapped, contained or wound; (ii) does not include the amount of the duty of excise, sales tax and other taxes, if any, payable on such goods and, subject to such rules as may be made, the lrade discount (such discount not being refundable on any account whatsoever) allowed in accardance with the normal practice of the wholesale trade at the time of removal in respect of such goods sold or contracted for sale;  - - - - - appeals 35 (1) any person deeming himself aggrieved by any decision or order passed by a central excise otftcer under this act or the rules made thereunder may, within three months from the date of such decision or order, appeal therefrom~o the central board of excise and customs constituted under the central boards -of revenue act, 1963, or, in suoh cases as the central government directs, to any central excise oftlcer not inferior in rank to an assistant collector of central excise and empowered in that behalf by the central government such authority or officer may thereupon make such fllll'ther inquiry and pass such order 88 he thinks fit, confirming, altering or annulling the decision or order appealed against: provided that no such order in appeal shall have the effect of subjecting any person to any greater confiscation or penalty than has been revision by board 54 of 1963 adjudg~d against him in the original decision or order    '"  35a the central board of excise and customs, constituted under the central boards of revenue act, 1963, may of its own motion or otherwise, call for and examine the record of any proceeding in which any decision or order has been passed under this act or the rules made thereunder (not b~ing a decision or order passed on appeal under section 35) for the purpose of satisfying itself as to the correctness legality or propriety 01 such decision or order and may pais such order thereon as it thinks fit: provided that no decision or order shall be varied so as to prejudicially affect any person unless such person is given a reasonable opportunity of making a representation and, if he so desires, of being heard in hii defence: provided further that no proceedings shall be commenced under this section in respect of any decision or order (whether such decision or order has been passed before or after the coming into force of this section) after the expiration of a period of, one year from the date of such decision or order revision by central government 38 (1) - - - - - (2) the central government may, of its own motion or otherwise call fol' and examine the record of any proceeding in which any decision or order has been passed under section 35 or section 35a of this act fqr the purpose of satisfying itself as to the correctness legality or propriety of such decision or order and may pass such order thereon as it thinks tit: provided that no decision or order shall be varied so 35 to prejudicially affect any person unless such person is given a reasonable opportunity of making a representation and, jf, he so desires, of being haard in his defence: provided further that no proceedings shall be commenced under this sub-section in respect of any decision or order (whether such decision or order has been passed before or after the coming into force of this subsection) after the expiration of a period of one year from the date of, such decision or order - - - - - 37 (1) - - - - - (~) in particular, and without prejudice to the generality of the furegoing }jower, such rules may-- - - • - - power of ccftltral govem- ment to make rules  extract from the centjlal boards of revenue act, 1983 (54 or 1963, - • - • •3 (1) - - - - - (1) each board shall consist of luch number of persons not exceeding five as the central government may think fit to appoint - - - - - constitution of separate central boards for direct taxes and for excise ndega· tolds  a billto pl'ovide for certain amendments to the customs act, 1962, the central kcisea and salt act, 1944 and the central boatds of revenue act, 1963 (shri sc1tiah aggnoc11, minuter oj stgte in the minibtry of finance) 