THE MEDICINAL AND TOILET PREPARATIONS (EXCISE DUTIES) ACT, 1955
[Act, No 16 of 1955]1
[27th April, 1955]
An Act to provide for the levy and collection of duties of excise on medicinal and toilet preparations containing alcohol,1[narcotic drug or narcotic].
BE it enacted by Parliament in the Sixth Year of the Republic of India as follows :--
|1. Substituted for the words "opium, Indian hemps or other narcotic drug or narcotic" by Finance Act 66 of 1976, Section 39 (w.e.f. 27-5-1976).|
Section 1. Short title, extent and commencement
(1) This Act may be called the Medicinal and Toilet Preparations (Excise Duties) Act, 1955.
(2) It extends1to the whole of India.
(3) It shall come into force on such date2as the Central Government may, by notification in the Official Gazette, appoint.
|1. The Act has been extended to the Union territories of Goa, Baman and Diu by Regn. 12 of 1962|
2. Act came into force on 1-4-1957
Section 2. Definitions
In this Act, unless the context otherwise requires--
(a) "alcohol" means ethyl alcohol of any strength and purity having the chemical composition C2pOH;
1[(aa) "coca derivative" means--
(i) crude cocaine, that is, any extract of coca leaf which can be used, directly or indirectly, for the manufacture of cocaine;
(ii) ecgonine that is, laevo-ecgonine having the chemical formula C9p5NO3p0, and all the derivatives of laevo-ecgonine from which it can be recovered; and
(iii) cocaine, that is, methyl-benzoyl-laevo-ecgonine having the chemical formula C17p1NO4, and its salts:
(ab) "coca leaf" means--
(i) the leaf and young twigs of any coca plant, that is of Erythroxylon coca(Lamk) and the Erythroxylon novo-granatense (Hiern) and their varieties, and of any other species of this genus which the Central Government may, by notification in the Official Gazette, declare to be coca plants for the purposes of this Act; and
(ii) any mixture thereof, with or without neutral materials;]
(b) "collecting Government" means the Central Government or, as the case may be, the State Government which is entitled to collect the duties levied under this Act;
1[bb) derivative of opium" means--
(i) medicinal opium, that is, opium which has undergone the processes necessary to adapt it for medicinal use;
(ii) prepared opium, that is, any product of opium obtained by any series of operations designed to transform opium into an extract suitable for smoking, and the dross or other residue remaining after opium is smoked;
(iii) morphine, that is, the principal alkaloid of opium having the chemical formula C17p9NO3, and its salts and its derivatives;]
(c) "dutiable goods" means the medicinal and toilet preparations specified in the Schedule as being subject to the duties of excise levied under this Act;
(d) "excise officer" means an officer of the Excise Department of any State and includes any person empowered by the collecting Government to exercise all or any of the powers of an excise officer under this Act;
2[(e) "Indian hemp" means--
(i) the leaves, small sulks and flowering or fruiting tops of the Indian hemp plant (Cannabis saliva L), including all forms known as bhang, siddhi or ganja;
(ii) charas, that is, the resin obtained from the Indian hemp plant, which has not been submitted to any manipulations other than those necessary for packing and transport;
(iii) any mixture, with or without neutral materials, of any of the above forms of Indian hemp or any drink prepared therefrom; and
(iv) any extract or tincture of any of the above forms of Indian hemp;]
(f) "manufacture" includes any process incidental or ancillary to the completion of the manufacture of any dutiable goods;
(g) "medicinal preparation" includes all drugs which are a remedy or prescription prepared for internal or external use of human beings or animals and all substances, intended to be used for or in the treatment, mitigation or prevention of disease in human beings or animals;
2[(h) "narcotic drug" or "narcotic" means a substance which is cocaleaf, or coca derivative, or opium, or deprivative of opium, or Indian hemp and shall include any other substance, capable of causing or producing in human beings dependence, tolerance and withdrawal syndromes and which the Central Government may, by notification by the Official Gazette, declare to be narcotic drug or narcotic;]
3[(i) 'opium' means--
(1) the capsules of the poppy (Papaver somniferum L), whether in their original form or cut, crushed or powdered and whether or not juice has been extracted therefrom;
(2) the spontaneously coagulated juice of such capsules which has not been submitted to any manipulations other than those necessary for packing and transport; and
(3) any mixture, with or without neutral materials, of any of the above forms of opium, and includes any derivative of opium;]
(j) "prescribed" means prescribed by rules made under this Act;
(k) "toilet preparation" means any preparation which is intended for use in the toilet of the human body or in perfuming apparel of any description, or any substance intended to cleanse, improve or alter the complexion, skin, hair or teeth, and includes deodorants and perfumes.
|1. Inserted by the Finance Act, 1976 (66 of 1976), Section. 39(b) (i) w.e.f. 27-5-1976|
2. Substituted by the Finance Act, 1976 (66 of 1976), Section 39(b) (iii) w.e.f. 27-5-1976.
3. Substituted for former Clause (i) by the Finance Act. 1964 (5 of 1964). Section 64 (a)(ii) w.e.f. 28-4-1964.
Section 3. Duties of excise to be levied and collected on certain goods
(1) There shall be levied duties of excise, at the rates specified in the Schedule, on all dutiable goods 2[(excluding goods produced or manufactured in a Special Economic Zone)] manufactured in India.
(2) The duties aforesaid shall be leviable--
(a) where the dutiable goods are manufactured in bond, in the State in which such goods are released from a bonded warehouse for home consumption, whether such State is the State of manufacture or not;
(b) where the dutiable goods are not manufactured in bond, in the State in which such goods are manufactured.
(3) Subject to the other provisions contained in this Act, the duties aforesaid shall be collected in such manner as may be prescribed.
Explanation.-- Dutiable goods are said to be manufactured in bond within the meaning of this section if they are allowed to be manufactured without payment of any duty of excise leviable under any law for the time being in force in respect of alcohol,1[narcotic drug or narcotic] which is to be used as an ingredient in the manufacture of such goods,
|1. Substituted for the words "opium, Indian hemp or other narcotic drug or narcotic" by the Finance Act, 1976 (66 of 1976), Section 39(a) w.e.f. 27-5-1976.|
2. Inserted by the Finance Act, 2010.
Section 4. Rebate or duty on alcohol, etc., supplied for manufacture of dutiable goods
Where alcohol, narcotic drug or narcotic had beensupplied to a manufacturer of any dutiable goods for use as an ingredient ofsuch goods by, or under the authority of, the collecting Government and a dutyof excise on the goods so supplied had already been recovered by suchGovernment under any law for the lime being in force, the collecting Government shall, on an application beingmade to it in this behalf, grant in respect of the duty of excise leviableunder this Act, a rebate to such manufacturer of the excess, if any of the dutyso recovered over the duty leviable under this Act.
Section 5. Recovery of sums due to Government
In respect of the duty of excise and any other sums of any kind payable to the collecting Government under any of the provisions of this Act or of the rules made thereunder, the excise officer empowered by the said rules to levy such duty or require the payment of such sums, may deduct the amount so payable from any money owing to the person from whom such sums may be recoverable or due, which may be in his hands or under his disposal or control or may recover the amount by attachment and sale of dutiable 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 sum 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 said person the amount specified therein in the same manner as an arrear of land revenue.
Section 6. Certain operations to be subject to licences
(1) The Central Government may, by notification in the Official Gazette, provide that from such date as may be specified in the notification, no person shall engage in the production or manufacture of any dutiable goods or of any specified component parts or ingredients of such goods or of specified containers of such goods or of labels of such containers except under the authority and in accordance with the terns and conditions of a licence granted under this Act.
(2) Every licence under Sub-section (1) shall be granted for such area, if any, for such period, subject to such restrictions and conditions, and in such form and containing such particulars as may be prescribed.
Section 7. Offences and penalties
If any person--
(a) contravenes any of the provisions of anotification issued under Section 6; or
(b) evades the payment of any duty of excisepayable under this Act; or
(c) fails tosupply any information which he is required by rules made under this Act tosupply or (unless with a reasonable belief, the burden of proving which shall be upon him, that the informationsupplied by him is true) supplies falseinformation; or
(d) attempts to commit orabets the commission of any offence mentioned in Clause (a) or Clause (b),
he shallfor every such offence be punishable with imprisonment for a term which mayextend to six months, or with fine which may extend to two thousand rupees, orwith both.
Section 8. Power of courts to order forfeiture
Any court trying any offence under Section 7 may order the forfeiture to the collecting Government of any dutiable goods in respect of which the court is satisfied that an offence under this Act has been committed, and may also order the forfeiture of any alcohol, drugs or materials by means of which the offence has been committed and of any receptacles, packages or coverings in which any such goods or articles are contained and the animals, vehicles, vessels or other conveyances used in carrying such goods or articles and any implements or machinery used in the manufacture of such goods.
Section 9. Power to arrest
(1) Any excise officer duly empowered by rules made in this behalf may arrest any person whom he has reason to believe to be liable to punishment under this Act.
(2) Any person accused or reasonably suspected of committing an offence under this Act or any rules made thereunder, who, on demand of any excise officer duly empowered by rules made under this Act, refuses to give his name and residence, or who gives a name or residence which such officer has reason to believe to be false may be arrested by such officer in order that his name and residence may be ascertained.
Section 10. Power to summon persons to give evidence and produce documents in inquiries under this Act
(1) Any excise officer duly empowered by rules made in this behalf shall have power to summon any person whose attendance he considers necessary either to give evidence or to produce a document or any other thing in any inquiry which such officer is making for any of the purposes of this Act.
(2) A summons to produce documents or other things under Sub-section (1) may be for the production of certain specified documents or things or for the production of all documents or things of a certain description in the possession or under the control of the person concerned.
(3) All persons so summoned shall be bound to attend either in person or by an authorised agent as such officer may direct and all persons so summoned shall be bound to state the truth on any subject respecting which he is examined or make statements and produce such documents and other things as may be required :
Provided that the exemptions under Section 132 and Section 133 of the Code of Civil Procedure, 1908 shall apply to requisition for attendance under this section.
(4) Every such inquiry as aforesaid shall be deemed to be a judicial proceeding within the meaning of Section 193 and Section 228 of the Indian Penal Code.
Section 11. Officers required to assist excise officers
All officers of Customs and Central Excise, and such other officers of the Central Government as may be specified in this behalf, and all police officers and all officers engaged in the collection of land revenue are hereby empowered and required to assist excise officers in the execution of this Act.