Excise (Special Provisions) ACT

Arrangement of Sections

1. Short title.

PART I

Administration

2. Appointment of Director-General of Excise (Special Provisions).

2A. Official secrecy.

PART II

Excise Duty

3. Determination of rates of Excise Duty.

3A. Exemption of any representative in Sri Lanka of the Government of any foreign country from payment of Excise Duty.

3B. Exemption of certain articles from the payment of Excise Duty.

3C. Exemption of certain articles from payment of Excise Duty.

4. Notification of removal.

5. Payment of Excise Duty.

6. Repealed.

7. Mode of ascertaining value of excisable articles.

7A. Power of Director- General to call for samples, books of account, registers, records or other document.

8. Remission of Excise Duty.

8A. Appeals against determination of Board of Assessors.

PART III

Recovery

9. Non-payment of Excise Duty.

10. Appeals to the director-General.

10A. Service of notice.

11. Excise duty determined on appeal to be final.

11A. Excise duty to be a charge on assets of defaulter.

11B. Recovery of Excise Duty by seizure and sale.

12. Proceedings for recovery before a Magistrate.

12A. Penalty for default.

13. Refund of Excise Duty.

13A. Deduction by manufacturers registered under this Act.

PART IV

Registration

14. Registration.

15. Repealed.

16. Suspension of registration.

17. Maximum quantity.

18. Surrender of certificates.

PART V

Powers and Duties of Excise Officers

19. Powers of inspection and of search of buildings or places.

20. Powers of arrest and search.

21. Arrests searches how to be made.

22. Officers of certain departments bound to report offences and to assist.

23. Offences to be cognizable and bailable.

PART VI

Offences

24. Offences.

25. Offences by bodies of persons.

26. Power of court to order forfeiture.

27. Compounding of offences.

PART VII

General

28. Disbursement of forfeitures and penalties recovered under this Act.

28A. Payment to excise officers for special services and attendance.

29. Regulations.

30. Protection of action.

31. Sinhala text to prevail in case of inconsistency.

32. Interpretation.

13 of 1989,

40 of 1990,

8 of 1994,

50 of 2006,

46 of 2007,

14 of 2009,

17 of 2011.

AN ACT to provide for the levy and charge of Excise Duty on articles produced or manufactured in, or imported into, Sri Lanka; and for matters connected therewith or incidental thereto.

[Date of Commencement: 12th October, 1989.]

1. Short title.

This Act may be cited as the Excise (Special Provisions) Act.

PART I

Administration

2. Appointment of Director-General of Excise (Special Provisions).

(1) There may be appointed by name or by office, for the purpose of this Act—

(a) a Director-General of Excise (Special Provisions) (hereinafter referred to as the "Director-General”) who shall be in charge of the administration at this Act;

(b) such number of Directors of Excise, Deputy Directors of Excise, Assistant Directors of Excise, and such other officers, as may be necessary for the implementation of the provisions of this Act; and

(c) such number of administrative: accounting, technical, legal, and clerical officers and other staff, as may be necessary to assist the aforesaid officers.

(2) The Director of Excise, a Deputy Director of Excise, an Assistant Director of Excise, may, subject to the general direction and control of the Director-General, exercise, perform or discharge all or any of the powers, duties or functions conferred or imposed on, or assigned to the Director-General by or under this Act.

(3) Unless there is express provision to the contrary, every excise officer below the rank of an Assistant Director of Excise may, subject to the general direction and control of the Director-General, exercise, perform or discharge, all or any of the powers, duties or functions conferred or imposed on, or assigned to, the Director-General by or under this Act, other than any power, function or duty referred to in sections 5A, 8A, 10,12,13,14,16,18, and 27.

[S 2 subs by s 2 of Act 8 of 1994.]

2A. Official secrecy.

(1) Except in the performance or his duties under this Act, every person appointed under this Act, shall preserve and aid in, preserving secrecy with regard to all matters relating to the affairs of any person that may come to his knowledge in the performance of his duties under this Act, and shall not communicate any such matter to any person other than the person to whom such matter relates or his authorised representative or to the Minister or the Secretary to the Ministry of the Minister or suffer or permit any person to have access to any records in the possession custody or control of the Director-General.

(2) Every person appointed under this Act shall before acting under this Act, and the Minister and the Secretary to the Ministry of the Minister may before acting under this Act, take and subscribe before a Justice of the Peace an oath of secrecy in the prescribed form.

(3) No person appointed under this Act shall be required to produce in any court any return, document or notice or to divulge or communicate to any court any matter or thing coming to his notice in the performance of his duties under this Act, except as may be necessary for the purpose of giving effect to the provisions of this Act or any other written law administered by the Director-General.

(4) Notwithstanding anything contained in this section, any person appointed under this Act may communicate any matter which comes to his knowledge in the performance of his duties under this Act or under any other written law administered by the Director-General to any other person appointed under this Act; if the communication of such matter is necessary for the performance of any duty under this Act or under any such other written law and the Director-General may, produce or cause to be produced in any court, in any proceedings under this Act, a copy of any particulars contained in any return or document furnished to him under this Act or other written law or otherwise in his possession certified by him or on his behalf to be a correct copy of such particulars and such copy shall notwithstanding anything in the Evidence Ordinance relating to the proof of documents, be admissible in evidence:

Provided that the Director-General may produce or cause to be produced the original of any such return or document in any case where it is necessary to prove the handwriting or the signature of the person who wrote, made, signed or furnished such return or document, but only for the purpose of such proof:

Provided further that the Director-General shall not in any case be compelled to produce, in any court either the original of such return or document or copy of any particulars contained in such return or document.

(5) Notwithstanding anything contained in this section, the Director-General shall permit the Auditor-General or any officer of the Department of the Auditor-General duly authorised by him in that behalf to have such access to any records or documents as may be necessary for the performance of his official duties. The Auditor-General or any officer authorised by him under this subsection shall for the purpose of subsection (2) be deemed to be a person appointed under this Act.

(6) Notwithstanding anything in the preceding provisions of this section, the Director-General or any person authorised in that behalf by the Director-General may, having regard to the need to ensure the equitable administration of this Act, cause to be published in such manner as the Director-General may consider expedient in respect of any area, a list containing—

(a) the names and addresses of all the manufacturers and importers in that area registered under this Act; and

(b) a description of the excisable articles, manufactured or imported by such manufacturers or importers during any given period and the wholesale price declared by them for each such article.

[S 2A ins by s 3 of Act 8 of 1994.]

PART II

Excise Duty

3. Determination of rates of Excise Duty.

(1) There shall be charged, levied and paid on every article manufactured or produced in Sri Lanka, or imported into Sri Lanka, an Excise Duty at such rate or rates as may be specified by the Minister, by Order published in the Gazette. Every such article in respect of which an Order is made under this section is hereafter referred to as "an excisable article”.

(2) The rate or rates of Excise Duty levied in respect of articles may be determined by reference to the class or description of the articles and accordingly, different rates of Excise Duty may be determined in respect of different classes or descriptions of articles.

(3) The rate or rates of Excise Duty determined under subsection (2) may from time to time, be varied by the Minister by Order published in the Gazette.

(4) Every Order made by the Minister under this section shall come into force on the date of its publication in the Gazette or on such later date as may be specified in such Order and shall be brought before Parliament within a period of four months from the date of its publication in the Gazette or, if no meeting of Parliament is held within such period, at the first meeting of Parliament held after the expiry of such period, by a motion that such Order be approved.

(5) Any Order which Parliament refuses to approve shall be deemed to be revoked as from the date of such refusal, but without prejudice to the validity of anything done there under and the notification of the date on which such Order is deemed to be revoked shall be published in. the Gazette,

(6) Any excisable article imported into or produced or manufactured in Sri Lanka by or on behalf of the Government shall be liable to the payment of the Excise Duty leviable on such excisable article under this Act,

3A. Exemption of any representative in Sri Lanka of the Government of any foreign country from the payment of Excise Duty.

(1) The Minister may from time to time, by Order published in the Gazette exempt the representative in Sri Lanka (by whatsoever name, title or designation called) of the Government of any foreign state or the Trade Commissioner in Sri Lanka of any such Government and the persons on the staff of any such representative or Commissioner of the United Nations, its affiliated Organisations, Institutions or bodies, or the representatives of International Organisations, Institutions or bodies named in such Order from payment of Excise Duty on excisable articles consigned to, or imported or cleared out of Customs bond by or for the use of such representative, Commissioner or persons, of foreign states.

(2) The Minister may, in his discretion by such Order—

(a) prescribe the conditions, if any subject to which the exemption is allowed;

(b) extend such exemption to excisable articles consigned to, or imported by or for the use of, the families and suites of such representatives, Commissioners or persons of foreign States:

(c) limit the exemption to representatives, Commissioners or persons of any specified country, grade or class or to excisable articles of any specified description.

(3) The Minister may at his discretion, by Order published in the Gazette, withdraw or modify any exemption granted under this section, or vary the conditions subject to which the exemption is allowed.

(4) Every Order made by the Minister under subsection (1) shall come into force on the date of its publication in the Gazette or on such later date as may be specified in such Order and shall be brought before Parliament within a period of three months from the date of its publication in the Gazette or, if no meeting of Parliament is held within such period, at the first meeting of Parliament held after the expiry of such period, by a motion that such Order be approved.

(5) Any Order which Parliament refuses to approve shall, with effect from the date of such refusal be deemed to be revoked but without prejudice to the validity of anything done thereunder, and the notification of the date on which such Order is deemed to be revoked shall be published in the Gazette.

(6) Notwithstanding anything in any Order under the preceding provisions of this section no excisable article to which such Order applies may be sold or otherwise disposed of without the prior permission of the Director-General and unless the Excise Duty payable on such excisable article at the time of such sale or disposal is paid to the Director-General, any excisable article sold or disposed of in contravention of the preceding provisions of this subsection shall be liable to be forfeited.

[S 3A ins by s 3 of Act 40 of 1990.]

3B. Exemption of certain articles from payment of Excise Duty.

The following articles shall be exempted from the payment of Excise Duty—

(a) articles of every description, imported or cleared from customs bond for the official use of the President; and

(b) articles of every description purchased or procured from a Custom Duty Free Shop.

[S 3B ins by s 3 of Act 40 of 1990.]

3C. Exemption of certain articles from payment of Excise Duty.

(1) The Minister may, having regard to the economic development of the country by Order published in the Gazette, exempt from the payment of the Excise Duty payable under this Act, any such excisable articles or any such class or description of excisable articles as are or is specified in such Order subject to such condition as may be specified in the Order.

(2) Every Order made by the Minister under subsection (1) shall come into force on the date of such Order. Every such Order shall be published in the Gazette and shall as soon as may be after its publication in the Gazette be tabled in Parliament. Parliament may by resolution revoke any Order made by the Minister under this section within six months of the publication of such Order in the Gazette and in the computation of such period of six months no account shall be taken of any period during which Parliament stands prorogued or dissolved. Where any such Order is so revoked, the Excise Duty payable on the exempted articles shall be paid by the manufacturer, producer importer or consignee of such article, to the Director-General, and such Excise Duty may be recovered under the provisions of this Act.

(3) Where any articles specified in an Order made under subsection (1) are subsequently sold or disposed of contrary to the conditions specified in such Order, such articles shall be liable to the same Excise Duty as was payable under this Act on like articles which are subject to Excise Duty and the manufacturer, producer, importer or consignee or such articles shall prior to such sale or disposal obtain the permission of the Director-General and pay the Excise Duty sale or disposal.

[S 3C ins by s 4 of Act 8 of 1994.]

4. Notification of removal.

(1) Where the manufacturer of any excisable articles removes or causes the removal of any quantity of such excisable articles from the factory or other place at which such excisable articles were produced or manufactured, he shall before the expiry of three months from the date of such removal, give notice thereof to the Director-General or an excise officer designated by the Director-General for that purpose.

(2) Where the importer of any excisable articles removes or causes the removal of any quantity of such excisable articles from the customs warehouse or such other place as is authorised by the Director-General of Customs at which such excisable articles were stored after their import, he shall before the expiry of three months from the date of such removal give notice thereof to the Director-General or an excise officer designated by the Director-General for the purpose.

[S 4 subs by s 4 of Act 40 of 1990.]

5. Payment of Excise Duty.

(1) The Excise Duty levied under section 3 on any excisable article shall:

(a) in any case where such excisable article has been produced or manufactured in Sri Lanka, be paid by the producer or manufacturer of that excisable article, in the prescribed manner, after its removal from the factory or other place in which such excisable article was produced at manufactured and such duty shall be paid within one calendar month from the last date of each quarter in the year in which such removal takes place; or

[S 5(1)(a) subs by s 5(1) of Act 40 of 1990.]

(b) in any case where such excisable articles was imported into Sri Lanka, be paid by the importer of such excisable article in the prescribed manner before its removal from the customs warehouse or other place where such excisable article was stored immediately after its importation into Sri Lanka.

[S 5(1)(b) subs by s 5(1) of Act 8 of 1994.]

(2) —

(a) Notwithstanding anything in this Act, every person who imports any excisable article manufactured outside Sri Lanka (not being an exempted article within the meaning of sections 3A, 3B and 3C) shall pay to the Director-General of Customs, Excise Duty, in respect of such excisable article, prior to its removal from the customs warehouse or such other place at which such excisable article is stored, at the rates of Excise Duty determined under section 3.

(b) Where Excise Duty is levied on any excisable article which is imported; with reference to the value of such article, then notwithstanding anything in section 7 or any other provision of this Act, the value of such article shall be deemed to be the aggregate of—

(i) an amount equal to the value of the cost, insurance and fright of such excisable article;

(ii) an amount equal to fifteen per centum of the amount referred to in sub-paragraph (i),to defray banking and other charges;

[S 5(2)(b)(ii) am by s 2 of Act 46 of 2007.]

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