As enacted

Contents

Act of Parliament · As enacted

Excise (Special Provisions) (Amendment) Act 1990

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

Changes to the law on special excise provisions

Official translation, read from a scanFrom Department of Government Printing's scanned PDF, read by OCR; may contain errors

s 1

This Act may be cited as the Excise (Special Provi-Short title.

sions) (Amendment) Act, No. 40 of 1990. -

s 2Section 2 of the Excise (Special Provisions) Act, Amendment

No. 13 of 1989 (hereinafter referred to as “the principal Ce on 2 of enactment.”) is hereby amended by the repeal of paragraphs Act, No, 13

(b)

and (c) of subsection (1) of that section and the ° saa substitution of the following paragraphs therefor :—

“ (b) a Director of Excise and such number of Deputy

Directors, Assistant Directors, Superintendents,

Chief Inspectors, Inspectors and Sub-Inspectors who shall be excise officers, as may be necessary for the implementation of the provisions of this Act; and

(c)

such number of administrative, accounting, technical and clerical officers and minor staff as may be necessary to assist the aforesaid officers. ”.

s 3

The following new sections are hereby inserted ineerion of immediately after section 3 of the principal enactment, and $¢ and Sp in shal) have effect as sections 3a and 3p, of that enactment: the pri

;

enactment.

“Exemption 3a (1) The Minister may from time to ran ntative time, by Order published in the Gazette

&e., in Sri exempt the representative in Sri Lanka (by the Govern.

. Whatsoever name, title or designation called)

‘ment of any of the Government of any foreign state or county the Trade Commissioner in Sri Lanka of any from such Government and the persons on the payment of staff of any such representative or duty.

Commissioner of the United Nations, its affi- ©

Hated Organizations, Institutions or bodies, or the representatives of International Orga-nizations, 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, Commisioner or persons; of foreign States.

Att, ‘No: 40 of 1990".

(2)

‘The:Minister may, in his discretion by

“such Order—

(a)

Prescribe the conditions, if any, sub-Ject 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, Com-missioners or persons of foreign

States :

limit the exemption to representatives,

Soak

- Comniissioners ors persons. of any f

Par

“ Specified :eountry, 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 sifbséection (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 i in the Gazette

| ori nénieetihg of: ‘Parliament is held within gach period; atthe first meeting of Parlia-ment ‘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 any thing done thereunder, and the, notification of the date on which such Order is deemed to be

-kevoked shall be published in the Gazette.

pee if 6). ‘Notwithstanding. anything in any oo Orders “ander the precetling provisions of this

Sgection:-ne: excisable article to which such

“ied ony >nOrder:

Jepplies:may ‘be sold or. otherwise dis-posed jof,: witheut the: -prior permission of

Excise ‘(Special Provisions) Conendiment)

Act, Ne. sad of weil 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 a preceding provisions of this subsection shall be liable to be forfeited.

‘Exemption ss The: following articles shall be exempt-

‘guides ed from the payment of excise duty :—

ent ot y-

‘excide duty.

@) artic es of every description, imported .

i, OF, cleared from customs bond for the: official: ‘Us € of the President ; and

(ey articles of every description purchas-

ed or procured from a Custom Duty

Free Shop.”.

s 4of section 4 of

Section 4 of the principal enactment is hereby Replacement

Tepealed and the following section substituted therefor :— . the principal

“ Notification

(1)

Where the manufacturer of any of rernéval:

; enactment.

-excisable articles removes or causes the re-moval 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 re-

-moval, 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 excisabl articles memroves, or causes the removal of any

Beg quantity of such exeisable articles from the customs warehouse or.such other place as is authorized by the Director-General of

-. Customs at which~such: excisble articles

- were stored after their import, he shall

before the expiry of three months from o>": the date of such removal give notice thereof a

~:'

» 1

> to the ‘Director-General or an excise officer vi"

designated: ‘by the ‘Director General for the

“Tpurpose: oF.

ane

‘s

‘4

Eweise (Special Provisions) (Amendment)

Amendment

s 5of the = principal enactment,

Section 5 of the principal enactment is hereby amended as follows :—

(1)

by the repeal of paragraphs (a) and (b) of sub-section (1) of that section and the substitution therefor of the following paragraphs

:—

“(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 man-ner, after its removal from the factory or other place in which such excisable article was produced or 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

(b)

in any case where such excisable article was imported into Sri Lanka, be paid by the im-porter of such excisable article in the pre-scribed manner after its removal from the

Customs warehouse or other place at which such excisable article was stored im-mediately after its importation into Sri

Lanka and such duty shall be paid within one calendar month from the last date of each quarter in the year in which such im-port takes place. ”.

(2)

by the repeal of subsection (2) of that section, and the substitution of the following subsections therefor :—

“ (2) 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 4 3A and 38) shall pay to the Director-General of

Customs, excise duty in part in respect of his import on the cost, insurance and freight value of such article determined under the Customs Ordi-k nance, 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. The difference in excise duty due on such article after its removal from the customs warehouse or: such ethan wilann weele km 24 20. ' Lk.

thUCUMh OT

wre a

Act, No. foal of 1900

' the manner set out in section 5 (1) (6) and the total excise duty paid on such article shall be in accordance with the value ascertained under section 7.

(3)

Where the excise duty payable on any excisable article is not paid in accordance with the provi-sions of subsection (1), such excise duty shalt be deemed to be in default ;

Provided that, an excisable article which has been produced or manufactured in Sri Lanka for the purpose of export, shall not be liable for the payment of excise duty if a bond is executed

| for the landing of such excisable article at the port of destination. ”.

. 6 The following new section is hereby — inserted Insertion immediately after section 5 of the principal enactment and section 5a shall have effect as section 5a of that enactment :—

pute pal.

‘

enactment,

“Power of

5A. Where any person who carries on the recto business of a manufacturer, producer or estimate importer of any excisable article sells such sale price |

excisable article for the purpose of distri-articles in

bution at a price which, in the view of the

Director-General, reduces or would reduce the excise duty payable by him, then, for the purposes of this Act, such excisable article shall be deemed to have been sold at a price, which in the opinion of the

Director-General, it would have fetched in the open market on the date of such sale and the excise duty leviable from such person shall be computed accordingly. ”.

circumstances

s 7

Section 6 of the principal enactment is hereby Repeal of section 6of repealed.

the principal enactment.

. 8. Section 7

of the ’ principal enactment is hereby Amendment '

amended as follows :—

Che taiiar enactment,

(1)

in subsection (1) of that section—

(a)

by the repeal of sub-paragraps

(ii)

of para-graph (a) thereof;

' (b) by the renumbering of sub-paragraph (iii) of paragraph (a) as sub-paragraph (ii) thereof;

‘seb

Excise (Spatial Provisions) : Amendment)

naa rat Sore

(c)

by. the addition at the end of that subsection of the following paragraph : ——

“(e) the declared value of such excisable article for the purposes of the turnover

. tax determined in such manner as may be prescribed where, in relation to any excisable article, turnover tax is to be levied under the Turnover Tax

Act, No. 69 of 1981.";

“ (2) In subsection (2) of that section by the substitution for the words “thereof ig determined with refer-ence to the cost of transportation” of the words “thereof is determined with reference to the price for delivery at a place other than the place of removal the cost of transportation ” ;

(3)

in subsection (3) of that section—

(a)

by the substitution in sub-paragraph (ii). of paragraph (b) thereof, for the words “ after importation thereof ;” of the words “after importation thereof, and includes any other place registered with the Director-General for the sale ts of such excisable articles prior to sale

;’

“ (aa) by the substitution, in paragraph (c) there-of, for the words “and distribution of tie assessee”’ of the words “and distributor of the assessee ": and

(a)

by the substitution in sub-paragraph (ii) of for all the words from “payable on such”

to the end of that paragraph, of the words

“ payable on such packing material”.

s 9Insertion of new section 7a in the principal enactment

The following new section is hereby inserted immediately after section 7, and shall have effect as section 7A of the principal enactment :—

“ Power of

Director-General to call for samples, book of account, register, record or other document.

7a. The Director-General or any excise officer not below the rank of Superintendent authorized in that behalf by the Director-General may, for the purpose of ascertaining the value or verifying any metter relative to the recovery of excise duty or with regard to any matter into which it is his duty to inquire under this Act, by order in

“Act aNo, 40:0f:1990

. Writing tequire any ‘person to give informa-tion or produce. for examination any book of account, register, record or other document relating to any excisable article or samples of any excisable article which are in such person’s ‘power to give or.

Produce, zt such place and within such

Period as may be specified in such order and to allow such excise officer to examine and take copies of or make extracts from any such book of account, register,

“ecord or other document, ”.

s 10Amendment . of section & of the principal enactment,

Section 8 -of the principal enactment is hereby amended by the repeal of subse ion -

(1)

-of that section and the substitution. of-the: following ‘subsection therefor:

“(1) The Minister may, by regulation made under this Act, provide for the remission of-excise duty leviable on any excisable articles which are found

. to be deficient in quality by reason of any natural cause or otherwise or which are unsold for a period of time and are determined as unsaleable, by reason of being outmoded or for any other reasonable cause, by a Board of Assessors consist-ing of at least two officers not below the rank of

Superintendent’ appointed ‘in that behalf by the

Directot-Genereal,”, ane

41.

Insertion of new section 8a in the principal] enactment,

The following new. section is hereby inserted immediately after section 8, and shall have effect as section 84, of the principal enactment :—~

“ Appeals

- 8a.. (1) Any person may, if he is deters ina.

dissatisfied with any determination made by tion of a Board of Assessors under section 8, appeal

‘Board of against ‘such’ determination in writing to the Director-General before the expiry of fourteen days after'the date on which such determination is communicated to him :

Provided that, the Director-General, upon being satisfied that owing to absence from

Sri. Lanka, sickness or other reasonable cause, the appellant was prevented from appealing within such period, shall grant ‘an extension of time for preferring the appeal.

(2)

The Director-General may, upon any appeal ‘made to him under subsection (4)

affirm, vary or annul the determination against which such appeal was made.

(3)

Any person aggrieved by the decision of the Director-General upon any appeal made to him under subsection (1), may-appeal in writing to the Deputy Secretary to the Treasury before the expiry of ten days after the date on which such decision is com-

municated to him by the Director-General.

(4)

The decision of the Deputy Secretary to the Treasury on any appeal preferred to him under subsection (3) shall be final. ”

Section 9 of the principal enactment is hereby anended in the proviso to subsection. (1) of that section by the substitution, for the words “ten years” of the words

“five years”.

s 13Amendment of section 9 of the principal enactment

Section 10 of the principal enactment is hereby amended. as follows :—

Amendment of section 10 of the principal enactment.

“ (1) in subsection (1) of that section by the substitution for the words “payable on such determination

: , of the words “payable on such determination un-less the Director-General orders that the payment of excise duty or any part thereof be held over pending the determination of such appeal: ”

(2)

by the repeal of subsection (6) of that section and the substitution therefor of the following subsec-tion

“(g) Subsections (3), (4) and (5) of section 31p of the Industrial Disputes Act shall, mutatis mutandis, apply to appeals from a decision of the Director-General to the

Court of Appeal.”

s 14&

Section 12 of the principal enactment is hereby amended in subsection (4) of that section by the substitu-Amendment of section 12 of the principal enactment.

tion ‘for the words “where the defaulters” of the words

‘where the defaulter ”,

s 15tO Inger tiun. of new 7 section 12a in the ‘ princ!pal enactment

The following new section. is hereby inserted immediately after section 12 of the principal enactment and shall have effect as section 12a of that enactment :—

“Penalty for

12a.

a of

(1)

Notwithstanding anythin.

in default.”

(1)

g anything

“

the defaulter shall, in addition — to. such duty in default, pay as a penalty—

(a)

a sum equivalent to ten per centum of the amount in default ; and

(b)

where any emount in default is not paid before the end of the month succeeding the month in which the duty is due, a further sum equivalent to two per centum of the amount in default in respect of each period ending on the last day of each.

succeeding month or part of such period during which it is in default :

Provided however, that the total amount payable as penalty under this subsection shall in no case exceed fifty per centum of the duty in default and any such amount may be waived or reduced if the Director-General is satisfied that by reason of any special circumstances in which the default occurred a waiver or reduction of such amount would be just and equitable.

(2)

Where upon the final determination -

of an appeal under section 10 any duty in default to which any sum or sums under subsection (1) has or have been added is reduced then such sum or sums shall be ealulated on the duty as so reduced.”

this Act where any excise duty is in default °

coed a!

Insertion:

of Pew...

‘Bxdise™ Special Provisions). (Ariendment)

‘16. ‘The following new: section is hereby inserted ymmediately after sectior. 13-of the principal . enactment and shall have effect as section 13a of the principal enact-section: 134 in the principal enactment.

ment :—

“ Deduction by -

manufacturers egisterea under this

Act,

s 13a

Where a manufacturer registered under this Act, has paid to another manu-tacturer registered under this Act, during any quarter any sum in respect of any transaction which includes excise duty, turnover tax or both excise duty and turn-ever tax on excisable articles used by the first-mentioned manufacturer in his business of manufacture. of articles liable to excise

‘duty, the ‘excise duty and turnover tax so included shall be deducted from the excise duty payabie by the first-mentioned manu-facturer for that quarter

Provided that no deduction shall be made for excise duty—

(a)

in respect of any plant, machinery, fixtures, buildings, vehicles or other capital assets used in that business ;

(by where deductions are permitted on the same inputs under the Turnover Tax

Act, No. 69 of 1981, or any other law ;

(c)

unless the other manufacturer has obtained from the first-mentioned

. Marufacturer from . whom = such excisable articlés were purchased, a vottcher setting out—

(i)

his name, postal address and his registered number

;

(ii)

the name, postal address and the registered number, if any, of the buyer

;

(iii)

the date on which each trans-action was entered into ;

(iv)

the néture of the transaction;

Excise (Spediat Provisions), (Amendment)

srl

(v)

° ‘the quantity. of excisable arti-cles supplied and the amount of money received or. receiva-i -

ble in respect of. each transac-tion before any charge for excise duty and the turnover tax; and

(vi)

the excise duty and the turnover tax attributable to each such transaction. ’’.

s 17of section 14 of the principal enactment

- ‘Section 14 of the” principal enactment is hereby 4x amended as follows :—

‘Q) in subsection (1) uc war seccron—

{a) by the substitution for the words “ shall engage in”; of the words “shall, unless registered for thé purpose of this Act with the Director-General engage in”;

(b)

by the repeal of paragraph (c) and the sub-stitution of. the following paragraph there-fer ~

(c)

the importation of any such excisable articles”

; and

@) by the repeal ‘of paragraph (b) of subsection (2) of thot section and :the substitution of the following paragraph therefor :—

od ye

“ (b) The Director-General shall issue to every person registered under this Act a certificate of

.. registration in the prescribed form and assigning 8

registration number to every such person. ”.

s 18. Repeal of section 15 of the principal enactment

Section ‘15 of the principal enactment is hereby repealed.

Amendment

.af section 16 of the principal enactment.

Amendment

‘19. Section 16 of th e principal enactment is hereby amended as. follows :—

(i)

by the repeal of subsections (3) and (4) of that

‘section, and the substitution of the following sub-sections therefor :—

“ (3) Any person aggrieved by an order made in resvect of him by the Director-General under.

subsection (1) may prefer an appeal in writing to the Board af Appeal referred to in subsection (6)

before the expiry of ten days after the date on which such Order is communicated to him by the

Director-General and the Board of Appeal may on such appeal preferred to the Board affirm, vary or amend the order against which the appeal has ©

been preferred”.

(4)

An order made under subsection (1) shall come into force after one month from the date on which such order is communicated to the person concerned by the Director-General unless an appeal has been preferred to the Board of Appeal against such order within the time specified in subsection (3).” ;

(2)

by the insertion of the following subsection at the end of that section :—

“(6) There shall be a Board of Appeal, for the per-pose of this section consisting of the Deputy Secretary to the Treasury and two senior officers of the Ministry of

Finance appointed by the Minister.”

s 20

Section 19 of the principal enactment is hereby repealed and the following section substituted therefor: —

“Powers of

19.

Replacement o: section 19 of the principal enactment,

(1)

Any excise officer specially autho-inspection rized in that behalf by the Director-General search of in writing may, accompanied ‘by a peace-buildings officer, do all or any of the following acts :—

or places.

(a)

enter and search any building or place where he has reason to

‘believe that any. books of account, registers, records or other docu-ments which in his opinion will be useful for, .or relevant to, any proceedings under this Act may be found, and examine them if found

;

(b)

seize any such books of account, registers, records or other docu-ments, or place marks of indetifi-cation thereon or take extracts therefrom or make copies thereof;

pel,

(c)

make a note or an inventory of any other things found in the course of any search under this section which in his opinion will be useful for, or relevant to, any proceedings under this Act.

The provisions of the Code of Criminal

Procedure Act, No. 15 of 1979, relating to searches shall apply so far as may be to searches under this section.

. ;

In this subsection, “peace officer”

shall have the same meaning as in the Code of

Criminal Procedure Act, No. 15 of 1979.

(2)

Before authorizing any excise officer to exercise the powers under subsection (1), the Director-General shall record the circumstances

. which necessitate the exercise of these powers by that officer.

(3)

Where any excise officer authorized by the Director-General under subsection

(1)

seizes any book of account, register,

Doe

record or other document from any person, be, such excise officer shall issue to that person a memorandum = specifying the book, register, record or other document he has seized.

(4)

Any book of account, register, record or other document seized under subsection (1) by any excise officer may be retained in the possession of such excise officer as long as may be necessary for the scrutiny of such

Prop book, register, record or other document or

. for the institution of

. legal proceedings against the person to whom such hook

;

Amendment

Ml... Section 20 of; the:.. principal. enactment is hereby-of section 20 of the amended by the repeal of subsection (2) of that section, and principal t the substitution therefor" of fhe foffowing subsection: —

PE Ue BE oe:

(2)

In this section-—:

(i)

“driver” includes the rider of a motor cycle or bicycle and the captain. of a ship or air craft;

(ii)

“ vehicle ” includes any carriage, car, motor car, ‘motor ‘cycle, omnibus, tractor, lorry,

- bieyele.or.ather-anachanically propelled vehi-cle; and.

(iii)

‘ vessel ” fndtudes an aircraft.’

Amendment of

s 22Section 24 of the princippal. enactment is hereby bev

“tion 24

amended by the repeal of subsection (1) of that section and principal substitution therefor of the following subsection:

enactment.

;

Pee ete aren

“ (1) Any person who contravenes the pro-visions of séction 4 or section 5 or section 14

shall be puilty of an°offence under this Act, and shall on’ conyi¢tion after summary trial before a Magistrate be liable to a fine not exceeding one million rupees or to imprison-ment of either description for a term not ex-

ceeding five years or to both such fine and

Hinprisnrhent. mo

Replacment of

s 23Section 27 of the principal. enactment is hereby section 27

repealed and the following section substituted therefor: —

rincipal enactment.

“ Compound-

27. ‘The ‘Director-General may compound ing ores.

. any offence under ‘section 4, 5 and 14 and may, before’ judgement stay or compound any proceeding thereunder. The Director-General may, as part of the compounding of any offence, order the ‘release of any boat, vessel, vehicle or article seized under section 20 on payment of a sum of money not exceeding the aggregated of the estimated

..value.of the boat, vessel, vehicle or article.

“A sums received

: py the. Director-General

“tor the “composition of an offence shall be applied in the x manner set out.in section 28.”

s 24Insertion of new section

The following new section is hereby inserted immediately after section 28 and shall have effect as section 28a of the principal enactment :—

: Payment to

28a.

principa. enactment

Where any person requires—

Ki giicers | al

(a)

any service which is determined by

- ces the Minister as a special service

; or an attendance.

(b)

the attendance of any excise officer at an office or place other than his proper office or place of employ-ment, payment shall be made for such service or attendance, as the case may be, to the Director-General by such person at such rates as may be specified by the

s 25Director-General. ”,

section 32 the principal enactment.

Section 32 of the Principal enactment is hereby amended as follows :—

(1)

by the insertion, immediately before the definition ef “export”, of the following new definitions —

‘“agent ” includes any person having the direction, control or management of any business on behalf of any other person ;

“excise officer” means an officer appointed and invested with powers under this Act

;

(2)

by the insertion, immediately after the definition of “manufacture ”, of the following new defini-tion:

“manufacturer or producer ” means any person who---

(a4)

makes an article

;

(b)

adopts for sale any article ;

(c)

processes or assembles goods ;’ ;

(3)

by the insertion, immediately after the definition of “ prescribed ” of the following new definition:

ec quarter” means the period of three months com-mencing on the first day of January, the first day of April, the first day of July, and the first day-of October of each year. ’.

s 26Sinhala text to in Rada At

In the event of any inconsistency between the

Sinhala and Tamil texts of this Act, the Sinhala Text shall prevail 28A in the

Amendment of ee core «

BGR a