Section 18 in The Oil Industry (Development) Act, 1974
18.
/824Statement of Objects and Reasons.-Following successive and steep increases in the international prices of crude oil and petroleum products since early 1973, the need for progressive self-reliance in petroleum based industrial raw materials has assumed great importance. It is essential that the programme for securing such self-reliance should be rapidly stepped up, and also that the necessary resources for the execution of such programmes must be assured. It is, therefore, proposed to levy by way of a cess duties of excise on crude oil and natural gas so as to create an Oil Industry Development Fund. This Fund would be used exclusively to provide financial assistance to the organisations engaged in development programmes of the oil industry in all its aspects from the exploration for and the production of crude oil to its refining further down-stream processing, distribution, marketing, etc., and research and development. To begin with, it is proposed to recover by way of a cess in the form of a duty of excise of Rs. 60 per tonne on crude oil produced in the country and delivered to the refineries. The cess will be utilised for approved schemes in the fields of oil exploration and production, and the refining, marketing and distribution of petroleum products. In due course, the scope of the Fund will be extended to cover other sectors such as the down-stream processing of petroleum feed stocks.Amendment Act 45 of 1981-Statement of Objects and Reasons.-The Oil Industry (Development) Act, 1974 provides for the establishment of a Board, called the "Oil Industry Development Board" for the development of the oil industry and for that purpose to levy a duty of excise on crude oil and natural gas and for matters connected therewith. Sub-section (1) of section 15 of the said Act, inter alia, empowers the Central Government to levy and collect a duty of excise on the crude oil at such rate, not exceeding the rate set forth in the Schedule to the Act, that is rupees one hundred per tonne as the Central Government may, by notification in the Official Gazette, specify. According to the proviso to sub-section (1) of said section 15, the duty of excise in respect of the crude oil is to be levied at the rate of rupees sixty per tonne until the rate is specified by notification. By issue of a notification on July 13, 1981, the Central Government specified that the rate of duty of excise in respect of the crude oil would be at the rate of rupees one hundred per tonne which is the maximum rate at which the duty of excise may be collected.2. It has now been decided to increase the above referred to maximum rate of duty on crude oil to rupees three hundred per tonne. For the purpose of levy and collection, the rate shall be specified from time to time by notification under sub-section (1) of said section 15.[26th September, 1974]An Act to provide for the establishment of a Board for the development of oil industry and for that purpose to levy a duty of excise on crude oil and natural gas and for matters connected therewith.Be it enacted by Parliament in the Twenty-fifth Year of the Republic of India as follows:-
