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ADDITIONAL DUTIES OF EXCISE (TEXTILES AND TEXTILE ARTICLES) ACT,1978 (REPEALED)

ADDITIONAL DUTIES OF EXCISE (TEXTILES AND TEXTILE ARTICLES) ACT,1978 (REPEALED)

ADDITIONAL DUTIES OF EXCISE (TEXTILES AND TEXTILE ARTICLES) ACT, 1978 (REPEALED)

THE ADDITIONAL DUTIES OF EXCISE (TEXTILES AND TEXTILE ARTICLES) Act, 1978

[Act, No. 40 of 1978]

[6th December, 1978]

PREAMBLE

An Act to provide for the levy ad collection of additional duties of excise on certain textiles and textile articles.

BE it enacted by Parliament in the Twenty-Ninth Year of the Republic of India as follows ?

Section 1 - Short title and commencement

(1)     This Act may be called the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978.

 

(2)     It shall be deemed to have come into force on the 4th day of October, 1978.

 

Section 2 - [Omitted]

[1] [2. Omitted

****** ]

 

Section 3 - Levy and collection of additional duties of excise on certain textile articles

[2] [(1) When goods of the description mentioned in the Schedule chargeable with a duty of excise under the Central Excises and Salt Act, 1944, read with any notification for the time being in force issued by the Central Government in relation to the duty so chargeable (not being a notification providing for any exemption for giving credit with respect to, or reduction of duty of excise under the said Act on such goods equal to, any duty of excise under the said Act, or the additional duty under Section 3 of the Customs Tariff Act, 1975, already paid on the raw material used in the production or manufacture of such goods), are assessed to duty, there shall be levied and collected a duty of excise equal to fifteen per cent of the total amount so chargeable on such goods.]

(2) ??The duties of excise referred to in sub-section (1) in respect of the goods specified in the Schedule shall be in addition to the duties of excise chargeable on such goods under the Central Excises and Salt Act, 1944, or any other law for the time being in force and shall be levied for the purposes of the Union and the proceeds thereof shall not be distributed among the States.

(3) ??The provisions of the Central Excises and Salt Act, 1944, and the rules made thereunder, including those relating to refunds and exemptions from duties, shall, so far as may be, apply in relation to the levy and collection of the duties of excise leviable under this section in respect of any goods as they apply in relation to the levy and collection of the duties of excise on such goods under that Act or those rules.

 

Section 4 - Repeal and saving

(1)     The Additional Duties of Excise (Textiles and Textile Articles) Ordinance, 1978 (4 of 1978), is hereby repealed.

 

(2)     Notwithstanding such repeal, anything done or any action taken under the Ordinance so repealed shall be deemed to have been done or taken under the corre?sponding provisions of this Act.

 

Schedule I - SCHEDULE

[3] [THE SCHEDULE

(See section 3)

NOTES

1. In this Schedule, "Chapter" and "heading" mean a Chapter or heading in the Schedule to the Central Excise Tariff Act, 1985.

2. The rules for the" interpretation of the Schedule to the Central Excise Tariff Act, 1985, and the Section and Chapter Notes of the said Schedule shall apply for the purposes of classification of goods specified in the Schedule.

S. No.

Description of goods

(1)

(2)

1.

Silk, that is to say, all goods falling within Chapter 50.

2.

Wool, that is to say, all goods falling within Chapter 51.

3.

Cotton, that is to say, all goods falling within Chapter 52.

[4] [4.

  Man-made filaments; strip and the like of man-  made textile materials, that is to say, all goods falling within Chapter 54."

5.

Man-made staple fibres, that is to say, all goods falling within Chapter 55.

6.

Terry towelling and similar woven terry fabrics, falling within heading No. 58.02.

7.

Tulle and other net fabrics, not including woven, knitted or crocheted fabrics; lace in the piece, in strips or in motifs, falling within heading No. 58.04.

8.

Knitted or crocheted fabrics, that is to say, all goods falling within

 

Chapter 60.]

[5] [9.

Metallised yarn, falling within heading No. 56.05.

10.

Embroidery in the piece, in strips or in motifs, falling within heading No. 58.05.]

 

 

?Statement of Objects and Reasons - ADDITIONAL DUTIES OF EXCISE (TEXTILES AND TEXTILE ARTICLES) ACT,1978

STATEMENT OF OBJECTS AND REASONS

1.        In pursuance of the textile policy statement announced in Lok Sabha on the 7th August, 1978, the obligation on cotton textile mills to produce "controlled cloth" has been removed from 1st of October, 1978. According to the said policy announcement, the financial burden resulting there from was to be borne by the entire textile industry in such a manner that there would not be any burden on the public exchequer. The manner of sharing of the burden by the textile industry was considered by the Government and it was decided that a levy in the nature of an additional excise duty at the rate of 10 per cent. of the effective excise duty on specified products of textile industry could bring in the required amount of funds to subsidise production of "controlled cloth" for the weaker sections of the society. With the removal of the obligation of production of controlled cloth by cotton textile mills from 1st October, 1973, it became necessary to impose the levy immediately so as to minimise the loss to the exchequer consequent on the outgo as subsidy.

 

2.        Accordingly, the President promulgated the Additional Duties of Excise (Textiles and Textile Articles) Ordinance, 1978 (4 of 1978), which came into force on 4th October, 1978. The Ordinance imposed an additional duty of excise at 10 per cent. of the amount of excise duty chargeable under the Central Excises and Salt Act, 1944, read with any notification issued by the Central Government in relation to the said excise duty, in respect of the goods specified in the Schedule to the said Ordinance.

 

3.        The Bill seeks to replace the provisions of the Ordinance.

 



[1] Omitted by the Additional Duties of Excise (Textiles and Textile Articles) Amendment Act, 1985 (6 of 1986), S. 2(a) (28-2-1986).

[2] Sub-section (1) substituted by the Finance Act, 1983 (11 of 1983), S. 57 (13-5-1983).

[3] Schedule substituted by the Additional Duties of Excise (Textiles and Textile Articles) Amendment Act, 1985 (6 of 1986), S. 2(b) (28-2- 1986).

 

[4] The following shall be substituted by the Finance Act, 2006, w.e.f. 01.01.2007: 

    

"4.

Man-made filaments, that is to say, all goods falling within Chapter 54."

 

[5] Entries 9 and 10 inserted by the Finance Act, 1986 (23 of 1986), S. 56, Fifth Schedule (13-5-1986).