Section 11C. Power not to recover duty of excise not levied or short-levied as a result of general practice

7[ 11C. Power not to recover duty of excise not levied or short-levied as a result of general practice .—[8] [(1)] Notwithstanding anything contained in this Act, if the Central Government is satisfied— (a) that a practice was, or is, generally prevalent regarding levy of duty of excise (including nonlevy thereof) on any excisable goods; and (b) that such goods were, or are, liable— (i) to duty of excise, in cases where according to the said practice the duty was not, or is not being, levied, or (ii) to a higher amount of duty of excise than what was, or is being, levied, according to the said practice, then, the Central Government may, by notification in the Official 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 1. Ins. by Act 22 of 1995, s. 75. 2. Subs. by Act 14 of 2001, s. 126, for "not below ten per cent" (w.e.f. 11-5-2001). 3. Subs. by Act 10 of 2000, s. 102, for "by the Board". 4. Ins. by Act 49 of 2005, s. 30 and Sch. (Pt. VII) (w.e.f. 28-12-2005). 5. Subs. by Act 25 of 2014, s. 95, for "Commissioner of Central Excise". 6. Ins. by Act 27 of 1999, s. 119. 7. Ins. by Act 25 of 1978, s. 21, (w.e.f. 1-7-1978). 8. Renumbered as sub-sec. (1) and sub-sec. (2) inserted by Act 29 of 1988, s. 10 (w.e.f. 1-7-1988). on such goods, but for the said practice, shall not be required to be paid in respect of the 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.] 1[(2) Where any notification under sub-section (1) in respect of any goods has been issued, the whole of the duty of excise paid on such goods or, as the case may be, the duty of excise paid in excess of that payable on such goods, which would not have been paid if the said notification had been in force, shall be dealt with in accordance with the provisions of sub-section (2) of Section 11-B: Provided that the person claiming the refund of such duty or, as the case may be, excess duty, makes an application in this behalf to the Assistant[2] [Principal Commissioner of Central Excise or Commissioner of Central Excise][3] [or Deputy[2] [Principal Commissioner of Central Excise or Commissioner of Central Excise]], in the form referred to in sub-section (1) of Section 11-B, before the expiry of six months from the date of issue of the said notification.] 4 [ 11D. Duties of excise collected from the buyer to be deposited with the Central Government .— (1) Notwithstanding anything to the contrary contained in any order or direction of the Appellate Tribunal or any Court or in any other provision of this Act or the rules made thereunder,[5] [every person who is liable to pay duty under this Act or the rules made thereunder, and has collected any amount in excess of the duty assessed or determined and paid on any excisable goods under this Act or the rules made thereunder from the buyer of such goods] in any manner as representing duty of excise, shall forthwith pay the amount so collected to the credit of the Central Government. 6[(1A) Every person, who has collected any amount in excess of the duty assessed or determined and paid on any excisable goods or has collected any amount as representing duty of excise on any excisable goods which are wholly exempt or are chargeable to nil rate of duty from any person in any manner, shall forthwith pay the amount so collected to the credit of the Central Government.] 7[(2) Where any amount is required to be paid to the credit of the Central Government under 8[subsection (1) or sub-section (1-A), as the case may be,] and which has not been so paid, the Central Excise Officer may serve, on the person liable to pay such amount, a notice requiring him to show cause why the said amount, as specified in the notice, should not be paid by him to the credit of the Central Government.] 1. Subs. by Act 40 of 1991, s. 4, for sub-section (2) (w.e.f. 20-9-1991). 2. Subs. by Act 25 of 2014, s. 95, for "Commissioner of Central Excise". 3. Ins. by Act 27 of 1999, s. 119. 4. Ins. by Act 40 of 1991, s. 5 (w.e.f. 20-9-1991). 5. Subs. by Act 10 of 2000, s. 103, for certain words (w.r.e.f. 20-9-1991). 6. Ins. by Act 18 of 2008, s. 81(i). 7. Subs. by Act 10 of 2000, s. 103, for sub-section (2) (w.r.e.f. 20-9-1991). 8. Subs. by Act 18 of 2008, s. 81(ii), for the word, brackets and figure "sub-section (1)". (3) The Central Excise Officer shall, after considering the representation, if any, made by the person on whom the notice is served under sub-section (2), determine the amount due from such person (not being in excess of the amount specified in the notice) and thereupon such person shall pay the amount so determined. (4) The amount paid to the credit of the Central Government under[1] [sub-section (1) or sub-section (1A) or sub-section (3), as the case may be,] shall be adjusted against the duty of excise payable by the person on finalisation of assessment or any other proceeding for determination of the duty of excise relating to the excisable goods referred to in[2] [sub-section (1) and sub-section (1A)]. (5) Where any surplus is left after the adjustment under sub-section (4), the amount of such surplus shall either be credited to the Fund or, as the case may be, refunded to the person who has borne the incidence of such amount, in accordance with the provisions of Section 11B and such person may make an application under that section in such cases within six months from the date of the public notice to be issued by the Assistant[3] [Principal Commissioner of Central Excise or Commissioner of Central Excise] for the refund of such surplus amount.]]