S.1 Short title, extent and commencement

       (1) This Act may be called the Medicinal and Toilet Preparations (Excise Duties) Act, 1955.
       (2) It extends to the whole of India.
       (3) It shall come into force on such date1 as the Central Government may, by notification in the Official Gazette, appoint.
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       1. Came into force on 1-4-1957, vide S.R.O. 892, dated 9th March, 1957, published in the Gazette of India, 1957, Pt. II, Sec. 3, p. 602, dated 23rd March, 1957.
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S.2 Definitions

       In this Act, unless the context otherwise requires,—
       (a) “alcohol” means ethyl alcohol of any strength and purity having the chemical composition C2H5OH;
       1[(aa) “coca derivative” means—
       (i) crude cocaine, that is, any extract of coca leaf which can be used, directly or indirectly, for the manufacture of cocaine;
       (ii) ecgonine, that is, laevo-ecgonine having the chemical formula C2H15NO3H2O, and all the derivatives of laevo-ecgonine from which it can be recovered; and
       (iii) cocaine, that is, methyl-benzoyl-laevo-ecgonine having the chemical formula C17H21NO4 , and its salts;
       (ab) “coca leaf” means—
       (i) the leaf

S.3 Duties of excise to be levied and collected on certain goods

       (1) There shall be levied duties of excise, at the rates specified in the Schedule, on all dutiable goods manufactured in India.
       (2) The duties aforesaid shall be leviable,—
       (a) where the dutiable goods are manufactured in bond, in the State in which such goods are released from a bonded warehouse for home consumption, whether such State is the State of manufacture or not;
       (b) where the dutiable goods are not manufactured in bond, in the State in which such goods are manufactured.
       (3) Subject to the other provisions contained in this Act, the duties aforesaid shall be collected in such manner as may be prescribed.
       Explanation.—Dutiable goods are said to be manufactured in bond within the meaning of this s

S.4 Rebate of duty on alcohol, etc., supplied for manufacture of dutiable goods

       Where alcohol, 1[narcotic drug or narcotic] had been supplied to a manufacturer of any dutiable goods for use as an ingredient of such goods by, or under the authority of, the collecting Government and a duty of excise on the goods so supplied had already been recovered by such Government under any law for the time being in force, the collecting Government shall, on an application being made to it in this behalf, grant in respect of the duty of excise leviable under this Act, a rebate to such manufacturer of the excess, if any, of the duty so recovered over the duty leviable under this Act.
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       1. Subs. by Act 66 of 1976, sec. 39, for “opium, Indian hemp or other narcotic drug or narcotic” (w.e.f. 27-5-1976).

S.5 Recovery of sums due to Government

       In respect of the duty of excise and any other sums of any kind payable to the collecting Government under any of the provisions of this Act or of the rule made thereunder, the excise officer empowered by the said rules to levy such duty or required the payment of such sums, may deduct the amount so payable from any money owing to the person from whom such sums may be recoverable or due, which may be in his hands or under his disposal or control or may recover the amount by attachment and sale of dutiable goods belonging to such person; and if the amount payable is not so recovered, he may prepare a certificate signed by him specifying the amount due from the person liable to pay the sum and send it to the Collector of the district in which such person resides or conducts his business, and the said Collector on receipt of such certificate shall proceed to recover from the said person the amount specified therein in the same m

S.6 Certain operations to be subject to licences

       (1) The Central Government may, by notification in the Official Gazette, provide that from such date as may be specified in the notification, no person shall engage in the production or manufacture of any dutiable goods or of any specified component parts or ingredients of such goods or of specified containers of such goods or of labels of such containers except under the authority and in accordance with the terms and conditions of a licence granted under this Act.
       (2) Every licence under sub-section (1) shall be granted for such area, if any, for such period, subject to such restrictions and conditions, and in such form and containing such particulars as may be prescribed.

S.7 Offences and penalties

       If any person,—
       (a) contravenes any of the provisions of a notification issued under section 6; or
       (b) evades the payment of any duty of excise payable under this Act; or
       (c) fails to supply any information which he is required by rules made under this Act to supply or (unless with a reasonable belief, the burden of proving which shall be upon him, that the information supplied by him is true), supplies false information; or
       (d) attempts to commit or abets the commission of any offence mentioned in clause (a) or clause (b),
       he shall for every such offence be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to two thousand rupees, or with both.

S.8 Power of courts to order forfeiture

       Any court trying any offence under section 7 may order the forfeiture to the collecting Government of any dutiable goods in respect of which the court is satisfied that an offence under this Act has been committed, and may also order the forfeiture of any alcohol, drugs or materials by means of which the offence has been committed and of any receptacles, packages or coverings in which any such goods or articles are contained and the animals, vehicles, vessels or other conveyances used in carrying such goods or articles and any implements or machinery used in the manufacture of such goods.

S.9 Power to arrest

       (1) Any excise officer duly empowered by rules made in this behalf may arrest any person whom he has reason to believe to be liable to punishment under this Act.
       (2) Any person accused or reasonably suspected of committing an offence under this Act or any rules made thereunder, who, on demand of any excise officer duly empowered by rules made under this Act, refuses to give his name and residence, or who gives a name or residence which such officer has reason to believe to be false may be arrested by such officer in order that his name and residence may be ascertained.

S.10 Power to summon persons to give evidence and produce documents in inquiries under this Act

       (1) Any excise officer duly empowered by rules made in this behalf shall have power to summon any person whose attendance he considers necessary either to give evidence or to produce a document or any other thing in any inquiry which such officer is making for any of the purposes of this Act.
       (2) A summons to produce documents or other things under sub-section (1) may be for the production of certain specified documents or things or for the production of all documents or things of a certain description in the possession or under the control of the person concerned.
       (3) All persons so summoned shall be bound to attend either in person or by an authorised agent as such officer may direct and all persons so summoned shall be bound to state the truth on any subject respecting which he is examined or make statements and produce such documents

S.11 Officers required to assist excise officers

       All officers of Customs and Central Excise, and such other officers of the Central Government as may be specified in this behalf, and all police officers and all officers engaged in the collection of land revenue are hereby empowered and required to assist excise officers in the execution of this Act.

S.12 Owners or occupiers of land to report manufacture of contraband dutiable goods

       Every owner or occupier of land and the agent of any such owner or occupier in charge of the management of that land, if dutiable goods are manufactured thereon in contravention of the provisions of this Act or the rules made thereunder, shall, in the absence of reasonable excuse, be bound to give notice of such manufacture to a magistrate or to an officer of the Excise, Customs, Police or Land Revenue Department immediately the fact comes to his notice.

S.13 Punishment for connivance at offences

       Any owner or occupier of land or any agent of such owner or occupier in charge of the management of that land, who wilfully connives at any offence against the provisions of this Act or any rules made thereunder shall, for every such offence, be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to five hundred rupees, or with both.

S.14 Searches and arrests how to be made

       All arrests and searches made under this Act or under any rules made thereunder shall be carried out in accordance with the provisions of the Code of Criminal Procedure, 1898 (5 of 1898), relating respectively to searches and arrests under that Code.

S.15 Disposal of persons arrested

       (1) Every person arrested under this Act shall be forwarded without delay to the nearest excise officer empowered to send persons so arrested to a magistrate or if there is no such excise officer within a reasonable distance to the officer in charge of the nearest police station.
       (2) The officer in charge of a police station to whom any person is forwarded under sub-section (1) shall either admit him to bail to appear before a magistrate having jurisdiction, or in default of bail forward him without delay in custody to such magistrate.

S.16 Inquiry how to be made by excise officers against arrested persons forwarded to them

       (1) When any person is forwarded under section 15 to an excise officer empowered to send persons so arrested to a magistrate, the excise officer shall proceed to inquire into the charge against him.
       (2) For the purpose of sub-section (1), the excise officer may exercise the same powers, and shall be subject to the same provisions, as the officer in charge of a police station may exercise and is subject to under the Code of Criminal Procedure, 1898 (5 of 1898), when investigating a cognizable case:
       Provided that-
       (a) if the excise officer is of opinion that there is sufficient evidence or reasonable ground of suspicion against the accused person, he shall either admit him to bail to appear before a magistrate having jurisdiction in the case, or forward him in custody without delay to such magis

S.17 Vexatious search, seizure, etc., by excise officer

       (1) Any officer exercising powers under this Act or under the rules made thereunder who—
       (a) without reasonable ground of suspicion searches or causes to be searched any place, conveyance or vessel;
       (b) vexatiously and unnecessarily detains, searches or arrests any person;
       (c) vexatiously and unnecessarily seizes the movable property of any person on pretence of seizing or searching for any article liable to confiscation under this Act;
       (d) commits, as such officer, any other act to the injury of any person, without having reason to believe that such act is required for the execution of his duty,
       shall, for every such offence, be punishable with fine which may extend to two thousand rupees.
  

S.18 Failure of excise officer on duty

       Any excise officer who ceases or refuses to perform, or withdraws himself from, the duties of his office, unless he had obtained the express written permission of his superior officer or has given such superior officer two months’ notice in writing of his intention or has other lawful excuse, shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to three month’s pay, or with both.

S.19 Power to make rules

       (1) The Central Government may, by notification in the Official Gazette, make rules to carry out the purposes of this Act.
       (2) In particular, and without prejudice to the generality of the foregoing power, such rules may—
       (i) provide for the assessment and collection of duties levied under this Act, the authorities by whom functions under this Act are to be discharged, the issue of notices requiring payment, the manner in which the duties shall be payable and the recovery of duty not paid;
       (ii) prohibit absolutely, or with such exceptions, or subject to such conditions as the Central Government may think fit, the manufacture, or any process of the manufacture, of dutiable goods or of any component parts or ingredients or containers thereof, except on land or premises approved for the purpose;<

S.20 Bar of suits and limitation of suits and other legal proceedings

       (1) No suit or other legal proceeding shall lie against the collecting Government or against any officer in respect of any order passed in good faith or any act in good faith done or ordered to be done under this Act.
       (2) No suit, prosecution or other legal proceeding shall be instituted against the collecting Government or against any officer for anything done or ordered to be done under this Act after the expiration of six months from the accrual of the cause of action or from the date of the act or order complained of.

S.21 Repeals and savings

       If, immediately before the commencement of this Act, there is inforce in any State any law corresponding to this Act, that law is hereby repealed:
       Provided that all rules made, notification issued, licences or permits granted, powers conferred under any law hereby repealed shall, so far as they are not inconsistent with this Act, have the same force and effect as if they had been respectively made, issued, granted or conferred under this Act and by the authority empowered hereby in that behalf.

Sch .

       1[The Schedule
        (See section 3)
       Item Description of dutiable goods Rate of duty
        No.
        1 2 3
       Medicinal preparations
       1. Allopathic Medicinal Preparations:—
        (i) Medicinal preparations containing alcohol
       which are not capable of being consumed

Legal Commentary on the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 - Schedule

Introduction

The Medicinal and Toilet Preparations (Excise Duties) Act, 1955 is a central legislation enacted to provide for the levy and collection of duties of excise on medicinal and toilet preparations containing alcohol, narcotic drugs, or narcotics. The Schedule to the Act specifies the dutiable goods that are subject to the excise duties levied under this enactment. This commentary examines the legal framework surrounding the Schedule and its interpretation through judicial precedents.

What the Schedule Says

The Schedule under the Act specifies the "dutiable goods" - meaning the medicinal and toilet preparations that are subject to the duties of excise levied under the Act. The Schedule categorizes various preparations containing alcohol, opium, Indian hemp, and other narcotic drugs or narcotics, prescribing the rates of duty applicable to each category.

Essential Ingredients

1. Dutiable goods: Medicinal and toilet preparations specified in the Schedule as being subject to excise duties
2. Containing alcohol, narcotic drug or narcotic: The preparations must contain these specified substances
3. Manufacture or storage: The duty applies to those who manufacture or store such goods in warehouses
4. Licensing requirements: The Act establishes a framework for regulating production and manufacture

Scope of the Section

The Schedule applies to all medicinal and toilet preparations that contain alcohol, narcotic drugs, or narcotics. It provides for the classification of such goods and the applicable rates of excise duty. The Act aims to ensure uniformity in duty rates and rules across India, and has been repealed by the Central Goods and Services Tax Act, 2017.

Punishment for Violations

Penalties under the Act range from fines to imprisonment for various violations, including:- Improper sale of dutiable goods- Obstruction of excise officers- Failure to follow licence conditions/pay duty: Imprisonment up to 6 months or fine up to Rs. 2,000- Disorderly keeping of stocks or accounts: Fine up to Rs. 2,000- The court may order seizure of dutiable goods and handing them over to the Government

Legal Comments

• Legislative Purpose - The Act provides for the levy and collection of duties of excise on medicinal and toilet preparations containing alcohol, narcotic drug or narcotic, with the goal of ensuring uniform duty rates and rules across India. [Source: ]

• Dutiable Goods Definition - "Dutiable goods" means the medicinal and toilet preparations specified in the Schedule as being subject to the duties of excise levied under this Act. [Source: ]

• Constitutional Validity - The 7th Schedule of the Indian Constitution provides exemptions for medicinal and toilet preparations, forming the constitutional basis for this legislation. [Source: ]

• Delegated Legislation Principles - The principle is well established that the Legislature cannot delegate its essential legislative function in any case; it must lay down the legislative policy and principle and afford guidance for carrying out the said policy before it delegates subsidiary powers. [Source: Scindia Devesthan Registered Charitable Trust VS Praveen Kumar Nigam - 2013 0 Supreme(MP) 366]

• Legislative Policy Requirement - Section 3(2) of related Acts enunciates with sufficient accuracy and clarity the legislative principle and policy, and the delegation of power contained in such provisions is intra vires. [Source: Scindia Devesthan Registered Charitable Trust VS Praveen Kumar Nigam - 2013 0 Supreme(MP) 366]

• Classification of Goods - Classifications made under the Imports (Control) Order, 1955 correspond to the respective Chapter and heading number of the first Schedule to the Customs Tariff Act, 1975, and such entries have the same scope and meaning as the corresponding Chapter and heading. [Source: COLLECTOR OF CUSTOMS VS OM PRAKASH JALAN - 1980 0 Supreme(Cal) 317]

• Interpretation of Schedules - Each heading number in schedules corresponds to the respective Chapter and heading number of the first Schedule to the Customs Tariff Act, and such entry has the same scope and meaning as the corresponding Chapter and heading of the said first Schedule. [Source: COLLECTOR OF CUSTOMS VS OM PRAKASH JALAN - 1980 0 Supreme(Cal) 317]

• Pharmaceutical Products Classification - Chapter 30 of the Customs Tariff Schedule deals with pharmaceutical products, which includes all goods falling in Chapter 28 or 29, demonstrating that the category 'pharmaceutical products' includes even non-drugs and chemicals. [Source: COLLECTOR OF CUSTOMS VS OM PRAKASH JALAN - 1980 0 Supreme(Cal) 317]

• Distinct Policies - No analogy should be drawn from the Import Policy of the Government for the purpose of interpreting the Export Policy, as these two policies are laid down under two different Orders with distinct considerations. [Source: COLLECTOR OF CUSTOMS VS OM PRAKASH JALAN - 1980 0 Supreme(Cal) 317]

• Reasonable Opportunity - The essential requirement under Article 311(2) is that a person should be given a reasonable opportunity to show cause against any action proposed, meaning they must be told what the charges are and the materials upon which the charge has been framed. [Source: B. John Bunyan VS State of A. P. - 1957 0 Supreme(AP) 156]

• Natural Justice Principles - In disciplinary proceedings, a person must be given an opportunity to answer charges after which they must be asked to show cause against the proposed action to be taken against them. [Source: B. John Bunyan VS State of A. P. - 1957 0 Supreme(AP) 156]

• Enquiry Officer Bias - Allegations of bias against enquiry officers must be substantiated; if unsubstantiated and officers acted in good faith, no bias can be established. [Source: B. John Bunyan VS State of A. P. - 1957 0 Supreme(AP) 156]

• Competent Authority - Rules do not require that the appointing authority itself should make the enquiry; it can appoint an enquiring officer to assist in the enquiry. [Source: B. John Bunyan VS State of A. P. - 1957 0 Supreme(AP) 156]

• Suspension Validity - A suspension order is valid if issued by the appointing authority, even if the person has been suspended for more than six months due to the pendency of the enquiry. [Source: B. John Bunyan VS State of A. P. - 1957 0 Supreme(AP) 156]

• Enhanced Fees in Contested Cases - Enhanced court fees are payable in cases of contest, whether a caveat is entered or not, under the Tamil Nadu Court Fees and Suits Valuation Act, 1955, Sch. II, Art. 11(k)(ii)(2). [Source: Kanni R. Krishna Iyer VS K. L. Krishnamachari - 1984 0 Supreme(Mad) 370]

• Purpose of Enhanced Fees - The purpose of the enhanced court fee is to discourage petitioners from avoiding contest by applying for probate in common form. [Source: Kanni R. Krishna Iyer VS K. L. Krishnamachari - 1984 0 Supreme(Mad) 370]

• Foreigner Definition - A person who was a natural born British subject as defined in the Foreigners Act, 1946, was not a foreigner within the meaning of the Act and was not obliged to comply with the provisions of the Foreigners Order, 1948. [Source: State VS Mahmadkhan Navrangkhan Accused - 1958 0 Supreme(Bom) 136]

• Citizenship Rights - The definition of "foreigner" in the Foreigners Act, 1946, excluded natural born British subjects, who were therefore not obliged to comply with certain provisions of the Foreigners Order. [Source: State VS Mahmadkhan Navrangkhan Accused - 1958 0 Supreme(Bom) 136]

• Penalty Framework - Penalties under the Act range from fines to imprisonment for various violations, including the improper sale of dutiable goods and obstruction of excise officers. [Source: ]

• Manufacturing Compliance - Every person who manufactures any dutiable goods, or who stores such goods in warehouse, shall pay the duty or duties leviable on such goods under the Act. [Source: ]

• Repeal by GST - The Medicinal and Toilet Preparations (Excise Duties) Act, 1955 was repealed by the Central Goods and Services Tax Act, 2017. [Source: ]

• Wastage Allowance - The State Government may, from time to time, fix the percentage of wastage in the production of a particular medicinal or toilet preparation. [Source: ]

• Bond Manufacturing - Manufacture of medicinal and toilet preparations containing alcohol shall be permitted in bond without payment of duty as well as outside bond. [Source: ]

• Court's Seizure Power - The court may order seizure of dutiable goods and handing them over to the Government upon conviction. [Source: ]