Incorporation by reference extends excise penalty and confiscation provisions to special duty levy unless the special statute is inconsistent.

A special taxing statute that incorporates another excise law by reference for levy and collection also brings in the related enforcement machinery, including confiscation and penalty, unless a direct inconsistency appears. The Gujarat High Court noted that Section 3(3) of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 adopts the Central Excise Act, 1944 and its rules, including provisions on refunds, exemptions, offences and penalties. Because penalty and confiscation are ancillary to assessment and collection, the absence of a separate penal clause in the special Act does not exclude the Central Excise penalty regime. The reference was answered in favour of the Revenue.

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Issues: Whether the provisions relating to confiscation and imposition of penalty under the Central Excise Act, 1944 and the Central Excise Rules, 1944 apply to additional duties of excise on goods covered by Section 3(1) of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 by virtue of Section 3(3) thereof.

Analysis: Section 3(3) expressly provides that the Central Excise Act, 1944 and the rules made thereunder, including those relating to refunds, exemptions, offences and penalties, shall, so far as may be, apply in relation to the levy and collection of the additional duties. The expression indicates adoption by reference of the machinery and incidentals of levy and collection, subject only to inconsistency with the special Act. Penal and confiscatory provisions form part of the enforcement machinery of a taxing statute and are ancillary to assessment and collection. On that basis, the absence of a separate penal clause in the special Act does not exclude application of the Central Excise penalty provisions.

Conclusion: The provisions relating to confiscation and penalty under the Central Excise Act, 1944 and the rules made thereunder apply to the additional duty of excise under the 1957 Act, and the reference is answered in favour of the Revenue.

Ratio Decidendi: Where a special taxing statute adopts the provisions of another taxing enactment by reference for levy and collection, the incorporated procedural and enforcement provisions, including confiscation and penalty, apply unless they are inconsistent with the special statute.

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