11. Recovery of sums due to Government.—
3[
(1)] In respect of duty and any other sums of any kind
payable to the Central Government under any of the provisions of this Act or of the rules made
thereunder 4[including the amount required to be paid to the credit of the Central Government under Section
11-D], the officer empowered by the 5[Central Board of Excise and Customs constituted under the Central
Boards of Revenue Act, 1963 (54 of 1963)] to levy such duty or require the payment of such sums 6[may
deduct or require any other Central Excise Officer or a proper officer referred to in Section 142 of the
Customs Act, 1962 (52 of 1962) to 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 be in the hands or under disposal or control of such other officer, 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 said person the
amount specified therein as if it were an arrear of land revenue:
7
[
(2)
(i) The Central Excise Officer may, by a notice in writing, require any other person from whom
money is due to such person, or may become due to such person, or who holds or may subsequently
hold money for or on account of such person, to pay to the credit of the Central Government either
forthwith upon the money becoming due or being held, or at or within the time specified in the notice,
1. Now the relevant provisions of the CRPC, 1973 (2 of 1974).
2. Subs. by the A.O. 1950.
3. Renumbered sub-section
(1) by Act 17 of 2013, s. 90.
4. Ins. by Act 10 of 2000, s. 96.
5. Subs. by Act 54 of 1963, s. 5 for “Central Board of Revenue” (w.e.f. 1-1-1964), here and throughout the Act.
6. Subs. by Act 17 of 2013, s. 90
(a) for “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 Act 17 of 2013, s. 90
(a).
7. Ins. by Act 17 of 2013, s. 90
(b).
25
not being before the money becomes due or is held, so much of the money as is sufficient to pay the
amount due from such person or the whole of the money when it is equal to or less than that amount;
(ii) every person to whom a notice is issued under this sub-section shall be bound to comply with
such notice, and in particular, where any such notice is issued to a post office, banking company or an
insurer, it shall not be necessary to produce any pass book, deposit receipt, policy or any other document
for the purpose of any entry, endorsement or the like being made before payment is made,
notwithstanding any rule, practice or requirement to the contrary;
(iii) in a case where the person to whom a notice under this sub-section has been issued, fails to
make the payment in pursuance thereof to the Central Government, he shall be deemed to be a person
from whom duty and any other sums of any kind payable to the Central Government under any of the
provisions of this Act or the rules made thereunder have become due, in respect of the amount specified
in the notice and all the consequences under this Act shall follow.]
1
[Provided that where the person (hereinafter referred to as predecessor) from whom the duty or
any other sums of any kind, as specified in this section, is recoverable or due, transfers or otherwise
disposes of his business or trade in whole or in part, or effects any change in the ownership thereof, in
consequence of which he is succeeded in such business or trade by any other person, all excisable
goods, materials, preparations, plants, machineries, vessels, utensils, implements and articles in the
custody or possession of the person so succeeding may also be attached and sold by such officer
empowered by the Central Board of Excise and Customs, after obtaining written approval from
the 2[Principal Commissioner of Central Excise or Commissioner of Central Excise], for the purposes
of recovering such duty or other sums recoverable or due from such predecessor at the time of such
transfer or otherwise disposal or change.]
3
[11A. Recovery of duties not levied or not paid or short-levied or short-paid or erroneously
refunded.—
(1) Where any duty of excise has not been levied or paid or has been short-levied or short-
paid or erroneously refunded, for any reason, other than the reason of fraud or 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 to evade payment of duty,—
(a) the Central Excise Officer shall, within 4[two years] from the relevant date, serve notice on the
person chargeable with the duty which has not been so levied or paid or which has been so short-levied
or short-paid or to whom the refund has erroneously been made, requiring him to show cause why he
should not pay the amount specified in the notice;
1. Ins. by Act 23 of 2004, s. 80.
2. Subs. by Act 25 of 2014, s. 95, for “Commissioner of Central Excise”.
3. Subs. by Act 8 of 2011, s. 63.
4. Subs. by Act 28 of 2016, s. 143, for “one year”.
26
(b) the person chargeable with duty may, before service of notice under clause
(a), pay on the basis
of,—
(i) his own ascertainment of such duty; or
(ii) the duty ascertained by the Central Excise Officer,
the amount of duty along with interest payable thereon under Section 11-AA.
(2) The person who has paid the duty under clause
(b) of sub-section
(1), shall inform the Central Excise
Officer of such payment in writing, who, on receipt of such information, shall not serve any notice under
clause
(a) of that sub-section in respect of the duty so paid or any penalty leviable under the provisions of
this Act or the rules made thereunder.
(3) Where the Central Excise Officer is of the opinion that the amount paid under clause
(b) of
sub-section
(1) falls short of the amount actually payable, then, he shall proceed to issue the notice as
provided for in clause
(a) of that sub-section in respect of such amount which falls short of the amount
actually payable in the manner specified under that sub-section and the period of 1[two years] shall be
computed from the date of receipt of information under sub-section
(2).
(4) Where any duty of excise has not been levied or paid or has been short-levied or short-paid or
erroneously refunded, by the reason of—
(a) fraud; or
(b) collusion; or
(c) any wilful misstatement; or
(d) suppression of facts; or
(e) contravention of any of the provisions of this Act or of the rules made thereunder with intent to
evade payment of duty,
by any person chargeable with the duty, the Central Excise Officer shall, within five years from the
relevant date, serve notice on such person requiring him to show cause why he should not pay the amount
specified in the notice along with interest payable thereon under Section 11-AA and a penalty equivalent
to the duty specified in the notice.
(5) 2[* * *]
(6) 3[* * *]
1. Subs. by Act 28 of 2016, s. 143, for “one year”.
2. Sub-section
(5) omitted by Act 20 of 2015, s. 93
(i).
3. Sub-section
(6) omitted by ibid, s. 93
(i).
27
(7) 1[* * *]
2
[(7A) Notwithstanding anything contained in sub-section
(1) or sub-section
(3) or sub-section
(4) 3[*
* *], the Central Excise Officer may, serve, subsequent to any notice or notices served under any of those
sub-sections, as the case may be, a statement, containing the details of duty of central excise not levied or
paid or short-levied or short-paid or erroneously refunded for the subsequent period, on the person
chargeable to duty of central excise, then, service of such statement shall be deemed to be service of notice
on such person under the aforesaid sub-section
(1) or sub-section
(3) or sub-section
(4) 3[* * *], subject to
the condition that the grounds relied upon for the subsequent period are the same as are mentioned in the
earlier notice or notices.]
4
[
(8) Where the service of notice is stayed by an order of a court or tribunal, the period of such stay
shall be excluded in computing the period of 5[two years] referred to in clause
(a) of sub-section
(1) or five
years referred to in sub-section
(4) 3[* * *], as the case may be.]
(9) Where any appellate authority or tribunal or court concludes that the notice issued under
sub-section
(4) is not sustainable for the reason that the charges of fraud or 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 to evade payment of duty has not been established against the person to whom
the notice was issued, the Central Excise Officer shall determine the duty of excise payable by such person
for the period of 5[two years], deeming as if the notice were issued under clause
(a) of sub-section
(1).
(10) The Central Excise Officer shall, after allowing the concerned person an opportunity of being
heard, and after considering the representation, if any, made by such person, determine the amount of duty
of excise due from such person not being in excess of the amount specified in the notice.
(11) The Central Excise Officer shall determine the amount of duty of excise under sub-section
(10)—
(a) within six months from the date of notice where it is possible to do so, in respect of cases falling
under sub-section
(1);
(b) within 5[two years] from the date of notice, where it is possible to do so, in respect of cases
falling under sub-section
(4) 3[* * *].
(12) Where the appellate authority or tribunal or court modifies the amount of duty of excise determined
by the Central Excise Officer under sub-section
(10), then the amount of penalties and interest under this
section shall stand modified accordingly, taking into account the amount of duty of excise so modified.
1. Sub-section
(7) omitted by Act 20 of 2015, s. 93
(i).
2. Ins. by Act 17 of 2013, s. 91.
3. The words “or sub-section
(5)” omitted by Act 20 of 2015, s. 93(ii).
4. Subs. by Act 23 of 2012, s. 135
(b), for sub-section 8.
5. Subs. by Act 28 of 2016, s. 143, for “one year”.
28
(13) Where the amount as modified by the appellate authority or tribunal or court is more than the
amount determined under sub-section
(10) by the Central Excise Officer, the time within which the interest
or penalty is payable under this Act shall be counted from the date of the order of the appellate authority or
tribunal or court in respect of such increased amount.
(14) Where an order determining the duty of excise is passed by the Central Excise Officer under this
section, the person liable to pay the said duty of excise shall pay the amount so determined along with the
interest due on such amount whether or not the amount of interest is specified separately.
(15) The provisions of sub-sections
(1) to
(14) shall apply, mutatis mutandis, to the recovery of interest
where interest payable has not been paid or part paid or erroneously refunded.
Explanation 1.— For the purposes of this section and Section 11-AC,—
(a) “refund” includes rebate 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;
(b) “relevant date” means,—
(i) in the case of excisable goods on which duty of excise has not been levied or paid or has
been short-levied or short-paid, and no periodical return as required by the provisions of this Act
has been filed, the last date on which such return is required to be filed under this Act and the rules
made thereunder;
(ii) in the case of excisable goods on which duty of excise has not been levied or paid or has
been short-levied or short-paid and the return has been filed 1[* * *], the date on which such return
has been filed;
(iii) in any other case, the date on which duty of excise is required to be paid under this Act or
the rules made thereunder;
(iv) in a case where duty of excise is provisionally assessed under this Act or the rules made
thereunder, the date of adjustment of duty after the final assessment thereof;
(v) in the case of excisable goods on which duty of excise has been erroneously refunded, the
date of such refund;
2
[(vi) in the case where only interest is to be recovered, the date of payment of duty to which
such interest relates.]
(c) 3[* * *]
1. The words “on due date” omitted by Act 20 of 2015, s. 93(iii)(A).
2. Ins. by ibid, s. 93(iii)(B).
3. Clause
(c) omitted by ibid, s. 93(iii)(C).
29
1
[Explanation 2.— For the removal of doubts, it is hereby declared that any non-levy, short-levy,
non-payment, short-payment or erroneous refund where no show cause notice has been issued before the
date on which the Finance Bill, 2015 receives the assent of the President, shall be governed by the provisions
of Section 11A as amended by the Finance Act, 2015.]
2
[
(16) The provisions of this section shall not apply to a case where the liability of duty not paid or
short-paid is self-assessed and declared as duty payable by the assessee in the periodic returns filed by him,
and in such case, recovery of non-payment or short-payment of duty shall be made in such manner as may
be prescribed.]]
3
[11AA. Interest on delayed payment of duty.—
(1) Notwithstanding anything contained in any
judgment, decree, order or direction of the Appellate Tribunal or any court or in any other provision of this
Act or the rules made thereunder, the person, who is liable to pay duty, shall, in addition to the duty, be
liable to pay interest at the rate specified in sub-section
(2), whether such payment is made voluntarily or
after determination of the amount of duty under Section 11A.
(2) Interest, at such rate not below ten per cent, and not exceeding thirty-six per cent per annum, as the
Central Government may, by notification in the Official Gazette, fix, shall be paid in terms of
Section 11A after the due date by the person liable to pay duty and such interest shall be calculated from
the date on which such duty becomes due up to the date of actual payment of the amount due.
(3) Notwithstanding anything contained in sub-section
(1), no interest shall be payable where,—
(a) the duty becomes payable consequent to the issue of an order, instruction or direction by the
Board under Section 37-B; and
(b) such amount of duty is voluntarily paid in full, within forty-five days from the date of issue of
such order, instruction or direction, without reserving any right to appeal against the said payment at
any subsequent stage of such payment.]
4
[11AC. Penalty for short-levy or non-levy of duty in certain cases.—
(1) The amount of penalty
for non-levy or short-levy or non-payment or short-payment or erroneous refund shall be as follows—
(a) where any duty of excise has not been levied or paid or has been short-levied or short-paid or
erroneously refunded, for any reason other than the reason of fraud or collusion or any wilful
mis-statement or suppression of facts or contravention of any of the provisions of this Act or of the
rules made thereunder with intent to evade payment of duty, the person who is liable to pay duty as
1. Subs. by Act 20 of 2015, s. 93(iv).
2. Ins. by ibid, s. 93(iv).
3. Subs. by Act 8 of 2011, s. 64, for Section 11-AA and 11-AB.
4. Subs. by Act 20 of 2015, s. 94, for “11-AC”.
30
determined under sub-section
(10) of Section 11-A shall also be liable to pay a penalty not exceeding
ten per cent of the duty so determined or Rupees Five thousand, whichever is higher:
Provided that where such duty and interest payable under Section 11-AA is paid either before
the issue of show cause notice or within thirty days of issue of show cause notice, no penalty shall
be payable by the person liable to pay duty or the person who has paid the duty and all proceedings
in respect of said duty and interest shall be deemed to be concluded;
(b) where any duty as determined under sub-section
(10) of Section 11A and the interest payable
thereon under Section 11AA in respect of transactions referred to in clause
(a) is paid within thirty days
of the date of communication of the order of the Central Excise Officer who has determined such duty,
the amount of penalty liable to be paid by such person shall be twenty-five per cent of the penalty
imposed, subject to the condition that such reduced penalty is also paid within the period so specified;
(c) where any duty of excise has not been levied or paid or has been short-levied or short-paid or
erroneously refunded, by reason of fraud or 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
to evade payment of duty, the person who is liable to pay duty as determined under sub-section
(10) of
Section 11A shall also be liable to pay a penalty equal to the duty so determined:
Provided that in respect of the cases where the details relating to such transactions are recorded
in the specified record for the period beginning with the 8th April, 2011 up to the date on which
the Finance Bill, 2015 receives the assent of the President (both days inclusive), the penalty shall
be fifty per cent of the duty so determined;
(d) where any duty demanded in a show cause notice and the interest payable thereon under
Section 11AA, issued in respect of transactions referred to in clause
(c), is paid within thirty days of
the communication of show cause notice, the amount of penalty liable to be paid by such person shall
be fifteen per cent. of the duty demanded, subject to the condition that such reduced penalty is also paid
within the period so specified and all proceedings in respect of the said duty, interest and penalty shall
be deemed to be concluded;
(e) where any duty as determined under sub-section
(10) of Section 11A and the interest payable
thereon under Section 11AA in respect of transactions referred to in clause
(c) is paid within thirty days
of the date of communication of the order of the Central Excise Officer who has determined such duty,
the amount of penalty liable to be paid by such person shall be twenty-five per cent of the duty so
determined, subject to the condition that such reduced penalty is also paid within the period so specified.
(2) Where the appellate authority or tribunal or court modifies the amount of duty of excise determined
by the Central Excise Officer under sub-section
(10) of Section 11A, then, the amount of penalty payable
under clause
(c) of sub-section
(1) and the interest payable under Section 11AA shall stand modified
accordingly and after taking into account the amount of duty of excise so modified, the person who is liable
31
to pay duty as determined under sub-section
(10) of Section 11A shall also be liable to pay such amount of
penalty and interest so modified.
(3) Where the amount of duty or penalty is increased by the appellate authority or tribunal or court over
the amount determined under sub-section
(10) of Section 11A by the Central Excise Officer, the time within
which the interest and the reduced penalty is payable under clause
(b) or clause
(e) of sub-section
(1) in
relation to such increased amount of duty shall be counted from the date of the order of the appellate
authority or tribunal or court.
Explanation 1.— For the removal of doubts, it is hereby declared that—
(i) any case of non-levy, short-levy, non-payment, short-payment or erroneous refund where no
show cause notice has been issued before the date on which the Finance Bill, 2015 receives the assent
of the President shall be governed by the provisions of Section 11AC as amended by the Finance Act,
2015;
(ii) any case of non-levy, short-levy, non-payment, short-payment or erroneous refund where show
cause notice has been issued but an order determining duty under sub-section
(10) of Section 11-A has
not been passed before the date on which the Finance Bill, 2015 receives the assent of the President,
shall be eligible to closure of proceedings on payment of duty and interest under the proviso to
clause
(a) of sub-section
(1) or on payment of duty, interest and penalty under clause
(d) of
sub-section
(1), subject to the condition that the payment of duty, interest and penalty, as the case may
be, is made within thirty days from the date on which the Finance Bill, 2015 receives the assent of the
President;
(iii) any case of non-levy, short-levy, non-payment, short-payment or erroneous refund where an
order determining duty under sub-section
(10) of Section 11-A is passed after the date on which the
Finance Bill, 2015 receives the assent of the President shall be eligible to payment of reduced penalty
under clause
(b) or clause
(e) of sub-section
(1), subject to the condition that the payment of duty,
interest and penalty is made within thirty days of the communication of the order.
Explanation 2.— For the purposes of this section, the expression “specified records” means records
maintained by the person chargeable with the duty in accordance with any law for the time being in force
and includes computerised records.]
1
[11B. Claim for refund of 2[duty and interest, if any, paid on such duty].—
(1) Any person
claiming refund of any 3[duty of excise and interest, if any, paid on such duty] may make an application for
refund of such 2[duty and interest, if any, paid on such duty] to the Assistant 4[Principal Commissioner of
1. Ins. by Act 25 of 1978, s. 21, (w.e.f. 1-8-1978).
2. Subs. by Act 18 of 2008, s. 80
(i)
(b), for “duty” (w.e.f. 10-5-2008).
3. Subs. by ibid, s. 80
(i)
(a), for “duty of excise”.
4. Subs. by Act 25 of 2014, s. 95, for “Commissioner of Central Excise”.
32
Central Excise or Commissioner of Central Excise] 1[or Deputy 2[Principal Commissioner of Central
Excise or Commissioner of Central Excise]] before the expiry of 3[two years] 4[from the relevant date] 5[in
6
such form [and manner]] as may be prescribed and the application shall be accompanied by such
documentary or other evidence (including the documents referred to in Section 12-A) as the applicant may
furnish to establish that the amount of 7[duty of excise and interest, if any, paid on such duty] in relation to
which such refund is claimed was collected from, or paid by, him and the incidence of such 8[duty and
interest, if any, paid on such duty] had not been passed on by him to any other person:
Provided that where an application for refund has been made before the commencement of the
Central Excises and Customs Laws (Amendment) Act, 1991, such application shall be deemed to have
been made under this sub-section as amended by the said Act and the same shall be dealt with in
accordance with the provisions of sub-section
(2) as substituted by that Act:]
9
[Provided further that] the limitation of 3[two years] shall not apply where any 8[duty and interest,
if any, paid on such duty] has been paid under protest.
10
[* * *]
11
[
(2) If, on receipt of any such application, the Assistant 2[Principal Commissioner of Central Excise
or Commissioner of Central Excise] 1[or Deputy 2[Principal Commissioner of Central Excise or
Commissioner of Central Excise]] is satisfied that the whole or any part of the 7[duty of excise and interest,
if any, paid on such duty] paid by the applicant is refundable, he may make an order accordingly and the
amount so determined shall be credited to the Fund:
Provided that the amount of 7[duty of excise and interest, if any, paid on such duty] as determined
by the Assistant 2[Principal Commissioner of Central Excise or Commissioner of Central Excise]
1
[or Deputy 2[Principal Commissioner of Central Excise or Commissioner of Central Excise]] under
the foregoing provisions of this sub-section shall, instead of being credited to the Fund, be paid to the
applicant, if such amount is relatable to—
(a) rebate 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;
1. Ins. by Act 27 of 1999, s. 119.
2. Subs. by Act 25 of 2014, s. 95, for “Commissioner of Central Excise”.
3. Subs. by Act 28 of 2016, s. 143, for “one year”.
4. Subs. by Act 44 of 1980, s. 49, for “from the date of payment of duty”.
5. Ins. by Act 40 of 1991, s. 3
(b) (w.e.f. 20-9-1991).
6. Ins. by Act 22 of 1995, s. 74.
7. Subs. by Act 18 of 2008, s. 80
(i)
(a), for “duty of excise”.
8. Subs. by ibid, s. 80
(i)
(b), for “duty”.
9. Ins. by Act 40 of 1991, s. 3 (w.e.f. 20-9-1991).
10. Explanation to sub-section
(1) omitted by Act 44 of 1980, s. 49.
11. Subs. by Act 40 of 1991, s. 3 (w.e.f. 20-9-1991).
33
(b) unspent advance deposits lying in balance in the applicant's account current maintained with
1
the [Principal Commissioner of Central Excise or Commissioner of Central Excise];
(c) refund of credit of duty paid on excisable goods used as inputs in accordance with the rules
made, or any notification issued, under this Act;
(d) the 2[duty of excise and interest, if any paid on such duty] paid by the manufacturer, if he had
not passed on the incidence of such 3[duty and interest, if any, paid on such duty] to any other person;
(e) the 2[duty of excise and interest, if any paid on such duty] borne by the buyer, if he had not
passed on the incidence of such 3[duty and interest, if any, paid on such duty] to any other person;
