Clause 74 - Insertion of new Section 3A – Central Excise Act - Power of Central Government to charge excise duty on the basis of capacity of production in respect of notified goods.

Central Government Can Levy Excise Duty Based on Production Capacity Under Section 3A of Central Excise Act

Section 3A of the Central Excise Act empowers the Central Government to levy excise duty based on the production capacity of certain notified goods. The government can specify goods subject to this duty through an official notification, considering factors like manufacturing processes and potential duty evasion. The annual production capacity of factories producing these goods is determined by an officer of at least Assistant Commissioner rank and is deemed the factory's annual production. Excise duty is levied based on production units or relevant factors, with provisions for abatement during production halts. This section excludes goods manufactured by 100% export-oriented undertakings.