 bui no 42 of 1963 the central' boards of revenue bill, 1963a bill to provide for the constitution of separate boards of revenue fot  direct taxes and for excise and customs and to amend certain enactments tot the purpose of conferring powers and imposing duties on the said boards be it enacted by parliament in the fourteenth year of the republic of india as follows:-1 (1) this act may be called the central b:jards of revenue act, short title 1983 and com· mence-s (2) it shall come into force on such date as the central govern ment ment may, by notification in the official gazette, appoint ·2 in this act, unless the context otherwise requires,-deftnltiodi 10 4 of leu (a) "board" me~ns the central board of direct taxes or the central board of exc1se and customs constituted under section 3; (b) "central board of revenue" means the central board of revenue constituted under the central board of revenue act, 1924; (c) "direct tax" means-(1) any duty ,leviable or tax chargeable under-34 of idu is 27 of 11157 29 of 1957 1801 1858 (i) the estate duty act, 1963; (ii) the wealth-tax act, 1957; (iii) the expenditure-tax act, 1957; (iv) the gift-tax act, 1958; 43 of 1961 140! 1983 &0 (v) the income-tax act, 1961; (vi) the super profits tax act, 1963; and (2) any other duty or tax which, having regard to iti nature or incidence, may be declared by the central government, by notification in the official gazette, to be a direct tax 3 (1) the central governmellt shallt in place of the central , board of revenue, constitute two separate boards of revenue to be called the central board of direct taxes and the celltra! board of excise and customs, and each such board shall, subject to the control of the central government, exercise such powers and perform such dutiest as may be entrusted to that board by the central government 10 or by or under any law/ constitution of separate central boards for dirld taxes and for excise and customs 1 (2) each board shall consist of such number of persona not exceeding five as the central government may think fit to appoint procedure of the board 4 (1) the central government may make rules for the purpose of regulating the transaction of business by each board and every order is made or act done in accordance with such rules shall be deemed to be the order or act, as the case may be, of the board (2) every rule made under this section shall be laid as soon as may be after it is made before each house of parliament while it is in session for a total period of thirty days which may be comprised ao in one s'ession or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session inunediately following, both houses agree in making any modification in the rule or both houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, 2s as the case may be, so however, that any modification or annulment shall be without prejudice to the validity of anything previously done under that rule amendment of certain enactmeats 5 (1) in the estate duty act, 1953, the wealth-tax act, 1957, the 34 of 1963 expenditure-tax act, 1957, the gift-tax act, 1958, the income-tax 30 27 of 1957 act, 1961 and the super profits tax act, 1963, for the words and 29 of 1957 figures "central board of revenue constituted under the central 18 of 1958 boal'd of revenue act, 1924" or "central board of revenue" 43 of 1961 wherever they occur, the words and figures ucentral board of direct 14 ~f i:::' taxes constituted under the central boards of revenue act, 1963" 3s 0  shall be substituted 1 of 1944 520f'1962 , of 1924 (2) in the central excises and salt act, 1944, and the customj act, 1962, for the words and figures ucentral board of revenue constituted under the central board of revenue act, 1924" or ucen_ tral board of reo/enue" wherever they occur, the words and figures 40 "central board of excise and customs constituted under the central boards of revenue act, 1963" shall be substituted (3) the functions entrusted to·the central board of revenue by or under any other enactment shau,-(4) if such functions rela:t~ to metters connected with direct taxes, be discharged by the central board of direct taxes; and , (b) if such functions'relate~toany other matter, unless they are entrusted by the central government to the central board of direct taxes, be discharged' by the central board of exclle and customs  :'  " ',' 6 (1) every proceeding pendiilg at the commencement of thie transfer 10 act before the central board of' revenue shallof certain , proceed-(a) if it is a proceeding relating to direct taxes, stand lnp transferred to the central board of direct taxes; and (b) in any other case, stand transferred to the central board of excise and customs i' (2) if any question arises as to whether any proceeding stands transferred to the central board of direct taxes or to the central board of excise and customs, it shall be referred to the central government whose decision thereon ,shall be final (3) in any legal proceeding pending at the commencement of 20 this act to which the central board of revenue is a party,-(4) it it is a proceeding" relating to direct taxes, the central board of direct taxes shan be deemed to be substituted for the central board of revenue in such proceeding; and (b) if it is a proceeding relating to any other matter, the 2, central board of excise and customs shall be deemed to be substituted for the central board of revenue in such proceeding '1 (1) if any difficulty arises in giving effect to the provisions of power to this act, the central government may, by order published in the remove oftlcial gazette, make such provisions not inconsistent with the pur- di1ftcwties 30 poses of this act, as appear to it to be necessary or expedient for removing the difficulty (z) an order under sub-eetlon (1) may be made so as to have retrospective effect from adaie ;not earlier than the date of the commencement of thia act ' 'of lnf 35 8 (1) the untrai board of revenue act, 1924, is hereby repealed ~a1and lavid, (2) nothing contained in sub-section (1) shall affect any appointment, assessment, order (including quasi-judicial order) or rule made, or exemption, approval or recognition granted, or any notice, notification, direction or instruction issued, or any duty levied, or 40 penalty or fine imposed, or confiscation adjudged, or any form prescribed, or any other thing done or action taken by the central board of revenue under any law and any such appointment auesament, order, rule, exemption, approval, recognition, notice notifteation, direction, instruction, duty, penalty, fine, confiscation, form, thing or action shall be deemed to have been made, granted, issued, levied, imposed, adjudged, prescribed, done or taken by the central board of direct taxes, or as the case may be, by the central board o£·]'xcise ajld customs·and shall continue to be in force·unless and until it is revised, withdrawn or superseded by the couceme4 board  statement of objects and reasonsthe object of this bill is to replace the central board ot revenue act, 1924, by this law which provides for the constitution ot two boards named, respectively, as the central board of direct taxes and the central board of excise and customs owing to the very considerable expansion of the union revenue administration since 1924, substantial strengthening of the board of revenue at the centre as well as ita functional bifurcation has become a matter of urgent necessity such separation has also been recommended by the direct taxes administration enquiry committee and more recently, by the central ~cise re-organisation cbmmittee this bill seeks to give effect to those recommendations which have since been accepted by government / nbwdam; the 20th nove1ftber, 19m; t t krishnamachari   - president's recommendation under article 11' of the constitution op" india[copy of letter dated the 22nd november, 1963 from shti t t krilhmm4chari mflnister of fim~e to the secretary, lok sabha] the president havinl been informed of the subject matter of the proposed central boards of revenue bill, 1963 to provide tor the constitution of separate boards of revenue for direct taxes and for central excise and customs and to amej1cl certain enaetmenta for the purpose of conferring powers and imposing duties on tlae central boards, recommends under clauses (a) and (3) of article 117 of the cojlltitution of india the introduction in add considertim by the lot sabha of the bill - - - -  financial memorandumthe central board of revenue as at present constituted under the central board of revenue aet, 1924, consists of the following:-(1) chairman (2) vice-chairman (2) ~embers--4 the two new boards to be constituted will each consist of not more than five ~embers including the chairman/vice-chairman even if all the posts are filled, the extra expenditure involved on that account will not exceed rs 2,00,000 per annwn as detailed below:-1 ofjicers average cost of emoluments of chairmanl vice-chairman average cost of emoluments of 3 membors ii other staff and incidentals ri 33,000 rs 81,000 rs85,000 total or say ri 1,99000 ri 2,00,000 it is not intended that all these extna posts should be created immediately   memorandum regarding delegated legislationclause 4 of the bill empowers the central government to make rules for the purpose of regulating the transaction of ;business of the two boards proposed to be constituted under the bill the matten with respect to which rules are to be made are matters of a routine nature or of detail and the deleaation of legislative power is of a normal character ~ non the estate dtrry aer, 1953 (34 of 1953) - - - - z in thm act, unlees the context otherwise requires,-- - - - (2) "board" means the central board of revenue eonstituted under the central board of revenue act, 1924; , of 1m - - - -  extaact from thj: wealth-tax act, 1957 (27 of 1957) - • - •dt8ditlod • z in this act, unless the context etherwise requires,-- - - - (/) "board" means the central board of revenue constituted undet" the central board of revenue act, 1924; - of 18m - - - - ex'i'aact from thb expendltu1l&-tax aer, 1957 (29 of 185'1) - - - - dtftditlon • z in this act, unless the context otherwise requlres,-- - - - (e) "board" means the central board of revenue constituted under the central board of revenue act, 1924; - of 1124 - - - - erraact nom tbjd gii't-tax act, 1958 (18 of 1958) - - - - 2 in thy act, unless the context otherwise requires,";;'" - - - - (,,) "board" means the central board of revenue constituted under the central board of revenue act, 1924; , 01 1_ - - - - definitions 4011924 extracts from the income-tax act, 1961 (43 of 1961)     2 in this act, unless the context otherwise requires,-    (12) "board" means the central board of revenue constituted under the central board of revenue act, 1924;     definitions 4 of 1924 118 there shall be the following classes of income-tax authorities income-tax for the purposes of this act, namely:-authorities (4) the central board of revenue,    - extract from the super profits tax act, 1963 (14 of 1963) ·    2 in this act, unless the context otherwise requires,-    (4) "board" means the central board of revenue constituted under the central board of revenue act, 1924; - - • - - extracts from the central excises and salt act, 1944 (1 of 1944) ·    2 in this act, unless there is anything repugnant in the subject or definitions context,-  -  (b) "central excise officer" means any officer of the central excise department, or any person (including an officer of the state government) invested by the central board of revenue with any of the powers of a central excise officer under this act;     11 in respect of duty and any other sums of any kind payable to recovery the central government under any of the provisions of this act or of of sums the rules made thereunder, the officer empowered by the central due to board of revenue to levy such duty or require the payment of such govemsums may deduct the amount so payable from any money owing to mento the person from whom such sums may be recoverable or due which may be in his hands or under his disposal ar control, or may recover the amount by attachment and sale of excisable goods belonging to such person; and if the amount payable is not so recovered, he may prepare a certificate signed by him specifying the amount due from the person liable to pay the same and send it to the collector of the district in which such person resides or conducts his business and the said collector, on receipt of such certificate, shall proceed to recover from the !'laid person the amount specified therein as if it were en arrear of land revenue - exceptions 25 nothing in section 24 applies to-(a) any excisable goods covered by a permit granted under rules made under this act; (b) any excisable goods covered by a pass granted by any officer whom the central board of revenue may appoint in this behalf; (c) such amount of excisable goods carried on board any vessel for consumption by her crew or by the passengers or animals (if any) on board as the central board of revenue may from time to time exempt from the operation of section 24 power of 26 when any officer empowered by the central board of revenue stoppage, to act under this section has reason to believe, from personal knowsearch and ledge or from information taken down in writing, that any excisable arrest goods are being carried, or have within the previous twenty-four hours been carried, in any vessel so as to render the owner or master of such vessel liable to the penalties imposed by section 24, he iiwly require such vessel to be brought-to and thereupon may-(a) enter and search the vessel; (b) require the master of the vessel to produce any documents in his possession relating to the vessel or the cargo thereof; (c) seize the vessel if the officer has reason to believe it liable to confiscation under this act, and cause it to be brought with its crew and cargo into any port in india; and (d) where any excis81ble goods are found on board the vesael search and arrest without a warrant any person on board the vessel whom he has reason to believe to be punishable under section 24 - - - - rights of 32 every proprietor of a private salt-work, other than a private ordinary salt factory, to which section 31 applies, of which, under the provisions proprietors of section 17 of the bombay salt act, 1890, the proprietor was entitled bom n oi of existing on application to a licence to manufacture or to excavate or collect 1890 salt-works natural salt at such factory, shall continue to be entitled, on application mede in accordance with the rules made under this act, to a licence for such purpose and to the annual renewal thereof, unless on a breach of the provisions of this act his licence has been cancelled by an officer duly empowered by the central government in this behalf: provided that the collector of central excise may at any time withdraw or withhold a licence from the proprietor of any such salt factory, if no salt has been manufactured, excavated or collected in such salt factory for the three years ending on the thirtieth day of june last preceding the date of his order, or, with the previous sanction of the central board of revenue, if such salt factory has not produced, on an average, during the said three years, at least five thousand maunds of salt per annum  chapter vi adjudication of confiscations and penalties33 where by the rules made under this act anything is liable to power of confiscation or any person is liable to a penalty, such confiscation or adjudicapenalty may be adjudgedtion (a) without limit, by a collector of central excise; (b) up to confiscation of goods not exceeding five hundred rupees in value and imposition of penalty not exceeding two hlmdred  and fifty rupees, by an assistant collector of central excise: provided that the central board of revenue may, in the case of any officer performing the duties of an assistant collector of central excise, reduce the limits indicated in clause (b) of this section, and may confer on any officer the powers indicated in clause (a) or (b) of this section - - - - 35 (1) any person deeming himself aggrieved by any decision or appeals order passed by a central excise officer under this act or the rules made thereunder may, within three months from the date of such decision or order, appeal therefrom to the central board of revenue, or, in such cases as the central government directs, to any central excise officer ~ot 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 further inquiry and pass such order as 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 adjudged against him in the original decision or order  - - - - 36 the central government may, on the application of any persol revision aggrieved by any decision or order passed under this act or the rules by cenmade thereunder-by any central excise officer or by the central tral gov-board of revenue, and from which no appeal lies, reserve or modify ~rnment such decision or order  chapter vii suppiemental pl\ovisionspower of central governmentto make rules 37 (1) - - - - - (2) in particular, and without prejudice to the generality ~f the foregoing power, such rules may-- - - - (zz) authorise the central board of revenue or collectors of central excise appointed for the purposes of this act to provide, by written instructions, for supplemental matters arising out of any rule made by the 'central government under this section - - - - definiticma extract from the customs act, 1962 (52 of 1962) - - - - 2 in this act, unless the context otherwise requires,-- - - - (6) "board" means the central board of revenue constituted under the central board of revenue act, 1924; , ot 1924 - - - -  - a bill·to provide for the constitution of separate boards of revenue for direct taxes and for excise and customs and to amend certain enacudents for the purpose of conferring powers and imposing duties on the said boards --(shf'i t t kf'ishnamachaf'i, mi"ister oj finance) 