Broad application of excise confiscation and penalty provisions to additional duty levy upheld under related collection machinery.

Section 3(3) of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 was read to extend the Central Excises and Salt Act, 1944 and its rules, so far as may be, to levy and collection of additional duty. On that broad construction of "in relation to", confiscation provisions for excise contravention and the connected enforcement machinery were treated as part of the levy and collection framework. The same reasoning used in earlier tax authorities on penalty being within assessment, levy and collection supported application of the penalty provisions. The confiscation and penalty provisions were therefore applicable, and the challenge to redemption fine and penalty failed.

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Issues: Whether the confiscation and penalty provisions of the Central Excise law applied to the additional duties of excise levied under the Additional Duties of Excise (Goods of Special Importance) Act, 1957.

Analysis: Section 3(3) of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 applies the provisions of the Central Excises and Salt Act, 1944 and the rules made thereunder, so far as may be, to the levy and collection of the additional duty. The expression "in relation to" was read broadly. On that approach, provisions dealing with confiscation for contravention of excise law and the connected machinery for enforcement were treated as part of the levy and collection framework, on the same reasoning by which penalty had earlier been regarded as falling within assessment, levy and collection in the cited income-tax authorities.

Conclusion: The confiscation and penalty provisions were held applicable, and the challenge to the redemption fine and penalty failed.

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