Section 1472 in Central Duties of Exercise (Retrospective Exemption) Act, 1986
1472.
Object and Reasons.- The Central Excise Tariff Act, 1985 (5 of 1986). which was passed by Parliament in the Winter Session of 1985, came into force on the 28th February, 1986. This Act provided for a new tariff nomenclature as also rates of duties of excise. Simultaneously, two companion Acts, namely, the Additional Duties of Excise (Goods of Special Importance) Amendment Act, 1985 and the Additional Duties of Excise (Textiles and Textile Articles) Amendment Act, 1985 effecting consequential changes in the levy of additional duties of excise were given effect to from the same date.2. In the Statement of Objects and Reasons relating to the said Bills as well as at the time of consideration of these Bills in both Houses of Parliament, it was stated that, as regards rates of duties, the Bills sought to preserve, by and large, the then existing duty structure. It was further mentioned that where the statutory rates of duties were fixed at a level higher than the effective rates. an attempt would be made to continue the effective rates through exemption notifications issued under the Central Excise Rules, 1944 and that any unintended change in the rates of duty would be duly corrected.3. In keeping with the above objects, a number of exemption notifications were issued after the new Tariff Act became operative, so as to preserve, by and large, effective rates of duties of excise as they existed prior to the commencement of the said Act. However, some of these exemption notifications could be issued only after the Ist day of March, 1986, when the impact of the duty changes came to be known to the Government either from the trade and industry or from the field officers. These notifications also include the notifications issued for the purpose of correcting the unintended levy on certain excisable goods on account of changes made by the notifications issued along with the Finance Bilt. 1986.4. As the notifications issued after the 1st day of March, 1986, under sub-rule (l) of Rule 8 of the Central Excise Rules, 1944 cannot be applied retrospectively, it has become necessary to introduce this Bill so as to give retrospective effect from the 1st day of March, 1986 to any such notification, issued by the Central Government on or after the 3rd day of March, 1986 but before the 8th day of August, 1986, for the purpose of(a) maintaining the effective rates of duties of excise at the level obtaining prior to the 28th day of February, 1986 notwithstanding the changes in the rates of duties of excise made by the Central Excise Tariff Act, 1985. the Additional Duties of Excise (Textiles and Textile Articles) Amendment Act, 1985 or the Additional Duties of Excise (Goods of Special Importance) Amendment Act, 1985; or(b) maintaining the effective rates of duties of excise at the level obtaining prior to the 1st day of March. 1986, notwithstanding the changes in the rates of duties of excise made by the Finance Bill, 1986.5. The Bill seeks to achieve the above objects. - Gazette of India. 12-8-1986, Pt. II. Section 2. Ext., p. 5 (No. 35).[8th September, 1986.]An Act to provide for giving retrospective effect to certain notifications relating to exemption from duties of exercise.BE it enacted by Parliament in the Thirty-Seventh Year of the Republic of India as follows:-
