Amendment of section 11
80. Section 11 of the Central Excise Act shall be renumbered as sub-section (1) thereof, and in subsection (1) as so renumbered,—
(a) for the portion beginning with the words "may deduct” and ending with the words “or may recover the amount”, the following shall be substituted, namely:—
“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”;
(b) after sub-section (1) as so renumbered, the following sub-section shall be inserted, namely:—
“(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, 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.”.
Notes on Clauses:
Clause 80 of the Bill seeks to amend section 11 of the Central Excise Act, so as to provide for additional modes of recovery of the amount due to the Central Government.
Besides the existing mode of recovery, now it is proposed to provide that in case of dues of central excise, the Central Excise Officer may require any other officer of Central Excise or Customs to recover the amount due from such money which is payable to such person.
It is also proposed to provide for another mode of recovery so that a person (third party) from whom amount is due or may become due to the defaulter shall be required to pay to the Central Government so much amount as is sufficient to pay the arrears of revenue. Any of these two new modes of recovery can be used by the Central Excise Officer besides the existing modes of recovery.
