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.

Capacity based excise duty: government may levy duty on deemed production capacity with rules for assessment and abatement.

Central Government may notify goods as notified goods and levy excise duty on the basis of assessed annual production capacity rather than actual output. Rules may require determination by an officer not below Assistant Commissioner or by reference to a specified production factor with deemed quantities, and provide proportionate adjustments for part year operation or alteration of factors. Duty rates and collection manner are notified, an abatement applies for prescribed idle periods, and goods of hundred per cent export oriented undertakings moved within India are excluded.