Section 3F: Anti-forestalling restrictions on excisable goods

3F. Anti-forestalling restrictions on excisable goods (1) For the purpose of combatting excise duty forestalling in respect of imported or manufactured excisable goods specified in Part I of the Eighth Schedule, the Director-General may limit the quantities of such excisable goods that may be entered for home consumption during a controlled period to such allowable quantity specified in subsection (2). (2) The allowable quantity referred to in subsection (1) shall be – (a) for importers and manufacturers who have been importing, manufacturing and entering excisable goods for home consumption during the financial year comprising the controlled period, in accordance with the formula set out in Part II of the Eighth Schedule; (b) for new entrants entering excisable goods for home consumption 30 days or less before the controlled period, equivalent to the lowest allowable quantity allocated to an importer or manufacturer during the controlled period in accordance with the formula set out in Part II of the Eighth Schedule; (c) for new entrants entering excisable goods for home consumption during the first month of the controlled period, equivalent to 75 per cent of the allowable quantity allocated under paragraph (b); (d) for new entrants entering excisable goods for home consumption in the second month of the controlled period, equivalent to 50 per cent of the allowable quantity allocated under paragraph (b); (e) for new entrants entering excisable goods for home consumption in the third month of the controlled period, equivalent to 25 per cent of the allowable quantity allocated under paragraph (b). (3) For the purpose of subsection (2)(a), the Director-General shall notify the importer or manufacturer of the allowable quantity allocated to him during the controlled period. (4) (a) Any new entrant under paragraph (2)(b), (c), (d) or (e) shall apply to the Director-General for an allowable quantity to be allocated to him during the controlled period, in such form and manner as the DirectorGeneral may determine. (b) The Director-General shall notify the new entrant of the allowable quantity allocated to him during the controlled period. (5) No importer, manufacturer or new entrant shall, during a controlled period, enter excisable goods for home consumption in excess of the quantities referred to in subsection (2), (3) or (4), as the case may be. (6) In this section – “controlled period” means a period of 3 months ending on the last day of the financial year or such other period as may be prescribed; “excise duty forestalling” means the practice of entering imported or manufactured excisable goods for home consumption in excessive quantities during a period leading up to an anticipated increase in the rate of excise duty on those goods with a view to avoiding the payment of the increased rate of excise duty when that increase becomes effective; “financial year” means a period of 12 months ending on 30 June in any year; “new entrant” means an importer or a manufacturer of excisable goods specified in Part I of the Eighth Schedule who starts entering such goods for home consumption 30 days or less before, or during, the controlled period. (c) in section 40(1)(l), by deleting the words “or matured local rum” and replacing them by the words “, matured local rum, matured agricultural rum, golden rum, golden local rum or golden agricultural rum,”; (d) in section 52C – (i) by repealing subsection (1) and replacing it by the following subsections – or a manufacturer of excisable goods specified in Part I of the Eighth Schedule who starts entering such goods for home consumption 30 days or less before, or during, the controlled period. (c) in section 40(1)(l), by deleting the words “or matured local rum” and replacing them by the words “, matured local rum, matured agricultural rum, golden rum, golden local rum or golden agricultural rum,”; (d) in section 52C – (i) by repealing subsection (1) and replacing it by the following subsections – (1) Where, during the period starting on 1 July 2022 and ending on 30 November 2023 – (a) an individual purchases an imported electric motor car or electric motor vehicle for the transport of goods of H.S. Code specified in Part I of the Seventh Schedule; or (b) a non-individual purchases an imported electric motor car or electric motor vehicle for the transport of goods of H.S. Code specified in Part II of the Seventh Schedule, the individual or non-individual, as the case may be, may make a claim on or before 30 November 2023 to the Director-General for an amount to be paid to him in the sum of 10 per cent of the value at importation or 200,000 rupees, whichever is lesser. (1A) Notwithstanding subsection (1), where, during the period starting on 1 November 2023 and ending on 30 June 2025 – (a) an individual purchases an imported electric motor car or electric motor vehicle for the transport of goods of H.S. Code specified in Part I of the Seventh Schedule; or (b) a non-individual purchases an imported electric motor car or electric motor vehicle for the transport of goods of H.S. Code specified in Part II of the Seventh Schedule, the individual or non-individual, as the case may be, may, on or after 1 December 2023, make a claim to the Director-General for an amount of 200,000 rupees to be paid to him. (1B) For the purpose of subsections (1) and (1A), where an individual or a non-individual purchases an imported electric motor car or electric motor vehicle for the transport of goods of H.S. Code specified in Part I or Part II of the Seventh Schedule, which is leased under a lease agreement, the lessee may make a claim for an amount of 200,000 rupees to be paid to him in respect of the leased vehicle. (ii) in subsection (2) – (A) by deleting the words “subsection (1)” and replacing them by the words “subsections (1) and (1A)”; (B) by inserting, after subsection (2), the following new subsection – (2A) Notwithstanding subsection (2)(a), where an individual or non-individual has failed to make a claim and the Director-General is satisfied that the failure was due to just or reasonable cause, the Director-General may allow the claim. (e) in section 53(2), by deleting the words “30 days” and replacing them by the words “28 days”; (f) in section 54(2), by deleting the words “30 days” and replacing them by the words “28 days”; (g) in the First Schedule – (i) in Part I – (A) by deleting the H.S. Codes specified in Part I of the Fourth Schedule to this Act; (B) by inserting, in the appropriate numerical order, the H.S. Codes specified in Part II of the Fourth Schedule to this Act; (C) by deleting the H.S. Codes specified in Part I of the Fifth Schedule to this Act; (D) by inserting, in the appropriate numerical order, the H.S. Codes specified in Part II of the Fifth Schedule to this Act; (ii) in Part IA, in Sub-part A – (A) by deleting item 23 and replacing it by the following item – y inserting, in the appropriate numerical order, the H.S. Codes specified in Part II of the Fourth Schedule to this Act; (C) by deleting the H.S. Codes specified in Part I of the Fifth Schedule to this Act; (D) by inserting, in the appropriate numerical order, the H.S. Codes specified in Part II of the Fifth Schedule to this Act; (ii) in Part IA, in Sub-part A – (A) by deleting item 23 and replacing it by the following item –