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FINANCE ACT, 1988

FINANCE ACT, 1988

26 of 1988

An Act to give effect to the financial proposals of the Central Government for the financial year 1988-89. Be it enacted by Parliament in the Thirty-ninth Year of the Republic of India as follows:

SECTION 01: SHORT TITLE AND COMMENCEMENT

(1) This Act may be called the Finance Act, 1988.

(2) Save as otherwise provided in this Act, sections 2-to75-andsections 86-to88-shall be deemed to have come into force on the 1st day of April, 1988.

SECTION 02: INCOME-TAX

(1) Subject to the provisions of sub-section (2) and (3), for the assessment year commencing on the 1st day of April, 1988, income-tax shall be charged at the rates specified in Part I of the First Schedule and shall be increased, -

(a) in the cases to which Paragraphs A. B, C and D of that Part apply, by a surcharge for purposes of the Union; and

(b) in the cases to which Paragraph E of that Part applies, by a surcharge, calculated in each case in the manner provided therein:

(2) In the cases to which Sub-Paragraph I or Sub-Paragraph II of Paragraph A of Part I of the First Schedule applies, where the assessee has, in the previous year, any net agricultural income exceeding six hundred rupees, in addition to total income, and the total income exceeds ---

(i) in a case to which the said Sub-Paragraph I applies, eighteen thousand rupees, and

(ii) in a case to which the said Sub-Paragraph II applies, twelve thousand rupees, then,-

(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) (that is to say, as if the net agricultural income were comprised in the total income after,----

(i) in a case to which they said Sub-Paragraph I applies, the first eighteen thousand rupees, and

(ii) in a case to which they said Sub-Paragraph II applies, the first twelve thousand rupees, of the total income but without being liable to tax], only for the purpose of charging income-tax in respect of the total income: and

(b) the income-tax chargeable shall be calculated as follows:-

(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax shall be determined in respect of the aggregate income at the rates specified in Sub-paragraph I or, as the case may be. Sub-paragraph II of the said Paragraph A, as if such aggregate income were the total income;

(ii) the net agricultural income shall be increased,---

(A) in a case to which they said Sub-Paragraph I applies, by a sum of eighteen thousand rupees; and

(B) in a case to which they said Sub-Paragraph II applies, by a sum of twelve thousand rupees, and the amount of income-tax shall be determined in respect of the net agricultural income as so increased at the rates specified in Sub-Paragraph I or, as the case may be, Sub-Paragraph II of the said Paragraph A, as if the net agricultural income as so increased were the total income;

(iii) the amount of income-tax determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax in respect of the total income: Provided that the amount of income-tax so arrived at shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of five percent of such income-tax and the sum so arrived at shall be the income-tax in respect of the total income.

(3) In cases to which the provisions of Chapter XII or Chapter XII-A or sub-section (IA) of section 161-orsection 164-orsection 164A-orsection 167A of the Income-tax Act, 1961-(hereinafter referred to as the Income-tax Act) apply, the tax chargeable shall be determined as provided in that Chapter or that section, and with reference to the rates imposed by sub- section (1) or the rates as specified in that Chapter or section, as the case may be: Provided that in respect of any income chargeable to tax under section 115B-orsection 115BB of the Income-tax Act-, the income-tax computed under section 115B-orsection 115BB-shall be increased by a surcharge for purposes of the Union calculated at the rate of five percent of such income-tax.

(4) In cases in which tax has to be deducted under sections 193-,194-,194-A-,194-B-,194-BB-,194-D-and195 of the Income-tax Act-at the rates in force, the deduction shall be made at the rates specified in Para II of the First Schedule and shall be increased,---

(a) in the cases to which the provisions of sub-item (a) of item I of that part apply, by a surcharge for purposes of the Union; and

(b) in the cases to which the provisions of sub-item (a) of item 2 of that Part apply, by a surcharge, calculated in each case in the manner provided therein.

(5) In cases in which tax has to be deducted under section 194C of the Income-tax Act-, the deduction .shall be made at the rates specified in that section and shall be increased by a surcharge for purposes of the Union calculated at the rate of five percent of such deduction

(6) in eases in which tax has to be collected under section 206C of the Income-tax Act-, the collection shall be made at the rate specified in that section and shall be increased by a surcharge for purposes of the Union calculated at the rate of five percent of such collection.

(7) Subject to the provisions of sub-section (8), in cases in which income-tax has to be calculated under the first proviso to the sub-section (5) of section 132 of the Income-tax Act-or charged under sub-section (4) of section 172-or sub-section (2) of section 174-orSection 175-or sub-section (2) of section 176-of the-said Act or deducted under section 192-of the said Act from income-chargeable under the head "Salaries" or in which the "advance tax" payable under XVII-C of the said Act has to be computed at the rate or rates in force, such income- tax or, as the case may be, "advance tax" shall be so calculated, charged, deducted or computed at the rate or rates specified in Part III of the First Schedule and shall be-increased,--

(a) in the cases to which Paragraphs A, B, C, and D of that Part apply, by a surcharge for purposes of the Union; and

(b) in the cases to which Paragraph E of that Part applies, by a surcharge, calculated in each case in the manner provided therein: Provided that in cases to which the provisions of Chapter XII or Chapter XII-A or sub- section (1A) of section 161-orsection 164-orsection 164-A-orsection 167-B-of the Income- tax Act apply, "advance tax" shall be computed with reference to the rates imposed by this sub-section or the rates as specified in that Chapter or section, as the case may be: Provided further that in respect of any income chargeable to tax under section 115B of the Income-tax Act-, the'' advance tax" computed under the first proviso shall be increased by a surcharge for purposes of the Union calculated at the rate of five percent of such "advance tax".

(8) In the cases to which Sub-Paragraph I or Sub-Paragraph II of Paragraph A of Part III of the First Schedule applies, where the assessee has, in the previous year or, if by virtue of any provision of the Income-tax Act, income-tax is to be charged in respect of the income of a period other than the previous year, in such other period, any net agricultural income exceeding six hundred rupees, in addition to total income and the total income exceeds,---

(i) in a case to which the said Sub-Paragraph I applies, eighteen thousand rupees, and

(ii) in a case to which the said Sub-Paragraph II applies, twelve thousand rupees, then, in calculating income-tax under the first proviso to sub-section (5) of section 132 of the Income-tax Act-or in charging income-tax under sub-section (2) of section 174-orsection 175-or sub-section (2) of section 176-of the said Act or in computing the "advance lax" payable under Chapter XVII-C of the said Act, at the rate or rates in force,--- (a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after, -

(i) in a case to which the said Sub-Paragraph I applies, the first eighteen thousand rupees, and

(ii) in a case to which the said Sub-Paragraph II applies, the first twelve thousand rupees,

(a) "company in which the public are substantially interested" means a company within the meaning of clause (18) of section 2 of the Income- tax Act-, and includes a subsidiary of such company if the whole of the share capital of such subsidiary company has been held by the parent company or by its nominees throughout the previous year;

(b) "domestic company" means an Indian company, or any other company which, in respect of its income liable to income-tax under the Income- tax Act for the assessment year commencing on the 1st day of April, 1988, has made the prescribed arrangements for the declaration and 'payment within India of the dividends (including dividends on preference shares) payable out of such income in accordance with the provisions of section 194-of the Act;

(c) "insurance commission" means any remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of policies of insurance);

(d) "investment company" means a company whose gross total income (as defined in section 50B of the Income-tax Act) consists mainly of income which is chargeable under the heads "Interest on securities", "Income from house property", "Capital gains" and "Income from other sources";

(e) "net agricultural income", in relation to a person means the total amount of agricultural income, from whatever source derived, of that person computed in accordance with the rules contained in Part IV of the First Schedule;

(f) "tax-free security" means any security of the Central Government issued or declared to be income-tax free, or any security of a State Government issued income-tax free, the income-tax whereon is payable by the State Government;

(g) "trading company" means a company whose business consists mainly in dealing in goods or merchandise manufactured, produced or processed by a person other than that company and whose income attributable to such business included in its gross total income [as defined in section 80B of the Income-tax Act-) is not less than fifty of the total income but without being liable to tax], only for the purpose of calculating, charging or computing such income-tax or, as the case may be, "advance tax" in respect of the total income; and

(b) such income-tax or, as the case may be, "advance tax" shall be so calculated, charged or computed as follows :-

(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax or "advance tax" shall be determined in respect of the aggregate income at the rates specified in Sub-Paragraph I or, as the case may be, Sub-Paragraph II of the said Paragraph A, as if such aggregate income were the total income;

(ii) the net agricultural income shall be increased,---

(A) in a case to which they said Sub-Paragraph I applies, by a sum of eighteen thousand rupees; and

(B) in a case to which they said Sub-Paragraph II applies, by a sum of twelve thousand rupees, and the amount of income-tax or "advance tax" shall be determined in respect of the net agricultural income as so increased at the rates specified in the said Sub-Paragraph l or, as the case may be, the said Sub-Paragraph II as if the net agricultural income as so increased were the total income;

(iii) the amount of income-tax or "advance tax" determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax or, as the case may be, "advance tax" determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax or, as the case may be, "advance tax" in respect of the total income: Provided that the amount of income-tax or "advance tax" so arrived at shall, in the case of every person having a total income exceeding fifty thousand rupees, be increased by a surcharge for purposes of the Union calculated at the rate of five percent of such income-tax or, as the case may be, "advance tax" and the sum so arrived at shall be the income- tax or, as the case may be, "advance tax" in respect of the total income.

(9) For the purpose of this section and the First Schedule,--- one percent, of the amount of such gross total income; (h) all other words and expressions used in this section or in the First Schedule but not defined in this sub-section and defined in the Income-tax Act, shall have the meanings respectively assigned to them in that Act.

SECTION 03: 03-54

Amended the following Sections of the Income-tax Act which are being incorporated in the principal Act and hence not printed here at Sections affected are;2(28B)-(ins.);10-;10A-;10B-(ins.);15A-;14-;16-; Ss. 18 to 21 (omitted);40-;43b-;43C-(ins.);44AB-;44AC-;44BB-;47-;56-;57-;58-;79-;80CC-;80CCA-(subst.);80HHC-;80L-;800-;80P-;86A-(omitted);115B-;115F-;131-;132-;139-;181-(omitted);193-;194C-;195-;206C-(ins.);230A-;245DD-(ins.);246-;263-;271B-;276BB-(ins.);279-; Chapter 22A (omitted)281B-;285-A-(omitted);293-; First Sch.; Eleventh Sch; made consequential Amendments to certain sections.

SECTION 55: AMENDMENT OF SECTION 5

--- In Section 5 of the Wealth-tax Act, 1957-(hereinafter referred to as the Wealth-tax Act).---

(a) in sub-section (1),

(i) after clause (xvi e) and the Explanation thereto, the following clause shall be inserted, namely :--- "(xvi f) in the case of an individual or a Hindu undivided family, such Relief Bonds as the Central Government may, by notification in the Official Gazette, specify in this behalf;

(ii) for clause (xxx a), the following clause shall be substituted with effect from the 1st day of April, 1989, namely--- "(xxx a) the value of one or more dwelling units (each having a plinth area of eight square meters or less) belonging to the assessee and used solely for the purpose of residence of persons employed by the assessee in any plantation or industrial undertaking belonging to the assessee";

(b) in sub-section (I A), with effect from the 1st day of 'April, 1989,---

(i) in the opening paragraph, after the brackets and figures "(xvi)'', the brackets, figures and letter "(xvi e)", shall be inserted;

(ii) After the first proviso, the following proviso shall be inserted, namely :--- "Provided further that nothing contained in this sub-section shall apply to any assets referred to in clause (xvie) which are sold by a public sector company before the 1st day of June, 1988".

(iii) in the second proviso, for the words "Provided further that", the words "provided also that" shall be substituted;

(i) in the opening portion, after the brackets, figures and letter "(xvi e)", the brackets, figures and letter "(xvif)", shall be inserted;

(ii) in clause (aa),---

(1) after the word, brackets, figures and letter "clause (xvie)", the words, brackets, figures and letter "or Relief Bonds referred to in clause (xvif)", shall be inserted;

(2) after the words "Bonds or debentures", the words "or Relief Bonds" Shall be inserted.

SECTION 56: INSERTION OF NEW SECTION 22DD

--- Aftersection 22D of the Wealth-tax Act-, the following section shall be inserted, namely:- "22DD. Power of Settlement Commission to order provisional attachment to protect revenue.--- (1) Where, during the pendency of any proceeding before it, the Settlement Commission is of the opinion that for the purpose of protecting the interests of the revenue it is necessary so to do, it may, by order, attach provisionally any property belonging to the applicant in the manner provided in the Second Schedule to the Income-tax Act as made applicable to this Act by Section 32-: Provided that where a provisional attachment made under section 34Cis pending immediately before an application is made under section 22C, an order under this sub-section shall continue such provisional attachment up to the period up to which an order made under section 34Cwould have continued if such application had not been made: Provided further that where the Settlement Commission passes, an order under this sub- section after the expiry of the period referred to in the preceding proviso, the provisions of sub-section (2) shall apply to such order as if the said order had originally been passed by the Settlement Commission. (2) Every provisional attachment made by the Settlement Commission under sub-section (1) shall cease to have effect after the expiry of a period of six months from the date of the order made under sub-section (1): Provided that the Settlement Commission may, for reasons to be recorded in writing, extend the aforesaid period by such further period or periods as it thinks fit, so, however, that the total period of extension shall not in any case exceed two years".

SECTION 57: AMENDMENT OF SECTION 25

--- In section 25 of the Wealth-tax Act-, in sub-section (2), for the Explanation, the following Explanation shall be substituted with effect from the 1st day of June, 1988, namely:---

'Explanation.- For the removal of doubts, it is hereby declared that, for the purposes of this sub-section, ---

(a) an order passed by the Assessing Officer shall include an order made by the Deputy Commissioner in exercise of the powers or in the performance of the functions of an Asses ing Officer conferred on or assigned to him under orders or directions issued by the Board or by the Chief Commissioner or Director General or Commissioner authorized by the Board in this behalf under section 120 of the Income-tax Act-read with section 8-of this Act;

(b) "record" includes all records relating to any proceeding under this Act available at the time of examination by the Commissioner;

(c) where any order referred to in this sub-section and passed by the Assessing Officer had been the subject-matter of any appeal the powers of the Commissioner under this sub-section shall extend to such matters as had not been considered and decided in such appeal'.

SECTION 58: AMENDMENT OF SECTION 34AB

- In section 34AB of the Wealth-tax Act-, in sub-sections (1) and (2), for the word "Board", the words "Chief Commissioner or Director General" shall be substituted with effect from the 1st day of June, 1988.

SECTION 59: AMENDMENT OF SECTION 34ACC

- In section 34 ACC of the Wealth-tax Act-, for the words "to the Board", occurring at the end, the words "to the Chief Commissioner or Director General" shall be substituted with effect from the 1st day of June, 1988.

SECTION 60: AMENDMENT OF SECTION 34AD

- In section 34AD of the Wealth-tax Act-, with effect from. the 1st day of June, 1988,-

(a) in sub-section (1),-

(i) for the word "Board", at both the places where it occurs, the words "Chief Commissioner or Director General" shall be substituted;

(ii) for the words "it is satisfied", the words "he is satisfied" shall be substituted;

(iii) for the words "it thinks fit", the words "he thinks fit" shall be substituted;

(b) in sub-section (2), for the word "Board", the words "Chief Commissioner or Director General" shall be substituted;

(c) after sub-section (2), the following sub sections shall be inserted, namely:- "(3) Without prejudice to the provisions of sub-sections (1) and (2),.the Chief Commissioner or Director General shall, once in three years, review the performance of all the registered values and may remove the name of any person from the Register of Values where he is satisfied, after giving that person a reasonable opportunity of being heard and after such further inquiry, if any, as he thinks fit to make, that his performance is such that his name should not remain on the Register of Values.

(4) The Chief Commissioner or Director General may himself conduct the inquiry referred to in sub-section (1) or sub-section (3) or appoint an Inquiry Officer not below the rank of a Commissioner to conduct such inquiry, and for the purposes of such inquiry, the Chief Commissioner or Director General and the Inquiry Officer so appointed shall have the same powers as are vested in a Court under the Code of Civil Procedure, 1908-when trying a suit in respect of the following matters, namely:-

(a) discovery and inspection;

(b) enforcing the attendance of any person including any officer of a banking company and examining him on oath;

(d) issuing commission".

SECTION 61: INSERTION OF NEW SECTION 34AE

- In Chapter 7B of the Wealth-tax Act-, after section 34AD-, the following section shall be inserted with effect 'from the 1st day of June 1988, namely :-- "34AE. Existing registered valuers to apply afresh.-

(1) Notwithstanding anything contained in this Chapter, every person whose name is included in the Register of Valuers immediately before the 1st day of June, 1988, shall, if he intends to continue to be registered under this Act, make an application under sub-section (2) of section 34AB-within a period of three months from that date, for being registered afresh as a valuer under this Chapter and the provisions of sub-section (3) of that section and the rules made there under shall be applicable in respect of the verification of the application, the fees that shall accompany such application and the declaration to be made by the applicant.

(2) The provisions of this Chapter regarding the registration of a person as a valuer and other matters shall, so far as may be, apply to every application made under sub- section (1),

(3) Every application pending before the Board immediately before the 1st day of June,, 1988, shall be deemed to be an application received by the Chief Commissioner or Director General under sub-section (1)".

SECTION 62: AMENDMENT OF SECTION 34C

- In section 34C of the Wealth-tax Act-,- (a) in sub-section (1), the following Explanation shall be inserted at the end, namely :- "Explanation.- For the purposes of this sub-section, the proceedings under sub-section (5) of section 37A-shall be deemed to be proceedings for the assessment of any net wealth or for the assessment or reassessment of any net wealth which has escaped assessment", (b) in sub-section (2), after the first proviso, the following proviso shall be inserted, namely:- "Provided further that where an application for settlement under section 22Cis made, the period commencing from the date on which such application is made and ending with the date on which an order under sub-section (1) of section 22Dis made shall be excluded from the period specified in the preceding proviso".

SECTION 63: SUBSTITUTION OF NEW SECTION FOR SECTION 35-I

- For section 35-I of the Wealth-tax Act-, the following section shall be substituted with effect from the 1st day of April, 1989, namely :-- "35-I. Prosecutions to be with the previous sanction of certain wealth-tax authorities and their power to compound offences.-

(1)A person shall not be proceeded against for a of Fence under this Act except with the previous sanction of' the Chief Commissioner or Director General or Commissioner: Provided that no such sanction shall be required if the prosecution is at the instance of the Commissioner (Appeals).

(2) Any such offence may, either before or after the institution of proceedings, be compounded by -

(a) the Board or a Chief Commissioner or a Director General authorized by the Board in this behalf, in a case where the prosecution would lie at the instance of the Commissioner (Appeals);

(b) the Chief Commissioner or Director General or Commissioner, in any other case".

SECTION 64: AMENDMENT OF SECTION 37

- In section 37 of the Wealth-tax Act-, with effect from the 1st day of June, 1988,-

(a) after sub-section (1), the following sub-section shall be inserted, namely :- "(1 A) If the Director General or Director or Deputy Director or Assistant Director, or the authorised officer referred to in sub-section (1) of section 37Abefore he takes action under clauses (i) to (vi) of that sub-section, has reason to suspect that any net wealth has been concealed, or is likely to be concealed, by any person or class of persons within his jurisdiction, then, for the purposes of making any inquiry or investigation relating thereto, it shall be competent for him to exercise the powers conferred under sub-section (1) on the wealth-tax authorities referred to in that sub- section, not-withstanding that no proceedings with respect to such person or class of persons are pending before him or any other wealth-tax authority".

(b) in sub-section (3), in the proviso, in clause (b) [as amended by section 127 of the Direct Tax Laws (Amendment) Act, 1987), for the words "the Chief Commissioner or Commissioner therefore", the words "the Chief Commissioner or Director General or Commissioner or Director therefore, as the case may be" shall be substituted.

SECTION 65: AMENDMENT OF SECTION 43

- In section 43 of the Wealth-tax Act-, for the words "any order made", the words "any proceeding taken or order made" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of March, 1988.

SECTION 66: AMENDMENT OF SCHEDULE I

- In Schedule I to the Wealth-tax Act, in Part I, the following shall be added at the end, namely :--- "Surcharge on wealth-tax" The amount of wealth-tax computed in accordance with the provisions of this Part shall, in relation to the assessment year commencing on the 1st day of April, .1988, be increased by a surcharge calculated at the rate of ten percent of such wealth-tax".

SECTION 67: 67-71

- [Amendments incorporated in the Gift-tax Act, 1958.]

SECTION 72: 72-75

- [Amendments incorporated in the Expenditure-tax Act, 1987.]

SECTION 76:

[Amendments incorporated in the Customs Tariff Act, 1975.]

SECTION 77: AUXILIARY DUTIES OF CUSTOMS

(1) In the case of goods mentioned in the First Schedule to the Customs Tariff Act, or in that Schedule, as amended from time to time there shall be levied and collected as an auxiliary duty of customs an amount equal to fifty percent of the value of the goods as determined in accordance with the provisions of section 14 of the Customs Act, 1962-(hereinafter referred to as the Customs Act).

(2) Sub-section (1) shall cease to have effect after the 31st day of March, 1989, except as respects things done or omitted to be done before such cesser; and section 6 of the General Clauses Act, 1897-, shall apply upon such cesser as if the said sub-section had then been repealed by a Central Act.

(3) The auxiliary duties of customs referred to in sub-section (1) shall be in addition to any duties of customs chargeable on such goods under the Customs Act, or any other law for the time being in force.

(4) The provisions of the Customs Act and the rules and regulations made there under, including those relating to refunds and exemptions from duties, shall, as far as may be, apply in relation to the levy and collection of the auxiliary duties of customs leviable under this section in respect of any goods as they apply in relation to the levy and collection of the duties of customs on such goods under that Act or those rules and regulations, as the case may be.

SECTION 78: 78-80

- [Amendments incorporated in the Customs Act].

SECTION 81:

[Amendments incorporated in the Central Excise Tariff Act, 1985.]

SECTION 82: SPECIAL DUTIES OF EXCISE

(1) In the case of goods chargeable with a duty of excise under theCentral Excises and Salt Act, 1944-(hereinafter referred to as the Central Excises Act), as amended from time to time, read with any notification for the time being in force issued by the Central Government in relation to the duty so chargeable (not being a notification providing for any exemption for giving credit with respect to, or reduction of duty of excise under the said Act on such goods equal to, any duty of excise under the said Act, or the additional duty under section 3 of the Customs Tariff Act-, already paid on the raw material or component parts used in the production or manufacture of such goods), there shall be levied and collected a special duty of excise equal to five percent, of the amount so chargeable on such goods.

(3) The special duties of excise referred to in sub-section (1) shall be in addition to any duties of excise chargeable on such goods under the Central Excises Act, or any other law for the time being in force.

(4) The provisions of the Central Excises Act, and the rules made there under, including those relating to refunds and exemptions from duties, shall, as far as may be, apply in relation to the levy and collection of the special duties of excise leviable under this section in respect of any goods as they apply in relation to the levy and collection of the duties of excise on such goods under that Act or those rules, as the case may be.

SECTION 83:

[Amendments incorporated in the Additional, Duties of Excise (Goods of Special Importance) Act, 1957].

SECTION 84: PROVISION AS TO ADDITIONAL DUTIES OF EXCISE ON CERTAIN VARIETIES OF SUGAR INRELATION TO A CERTAIN PERIOD AND VALIDATION

(1) The notification of the Government of India in the Ministry of Finance (Department of Revenue) No. G.S.R. 97 (E), dated the 23rd day of February, 1988, which was issued in exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rule, 1944-, read with sub-section (3) of section 3 of the Additional Duties of Excise Act, providing for withdrawal of exemptions from additional duty of excise in relation to certain varieties of sugar (hereafter in this section referred to as sugar), shall be deemed to have, and to have always had, effect on and from the 10th day of September, 1986.

(2) Any action or thing taken or done or purported to have been taken or done on or after the 10th day of September, 1986 and before the 23rd day of February, 1988, in relation to sugar under the Additional Duties of Excise Act, shall be deemed to be and to have always been, for all purposes as validly and effectively taken or done as if the provisions of sub- section (1) had been in force at all material times and such action or thing had been taken or done under the Additional Duties of Excise Act read with the notification dated the 23rd day of February, 1988, referred to in sub-section (1), and, accordingly, not withstanding anything contained in any judgment, decree or order of any Court, tribunal or other authority,-

(a) all additional duties of excise levied, assessed or collected or purporting to have been, levied, assessed or collected on or after the 10th day of September, 1986 and before the 23rd day of February, 1988, on sugar, shall be deemed to be, and shall be deemed to have always been, as validly levied, assessed or collected as if the provisions of this section had been in force at all material times;

(b) no suit or other proceeding shall be maintained or continued in any Court, tribunal or other authority, for the refund of, and no enforcement shall be made by any Court, tribunal or other authority, of any decree or order directing the refund of, any such additional duties of excise which have been collected and which would have been validly collected if the provisions of this section had been in force at all material times;

(c) recovery shall be made of all such additional duties of excise which have not been collected, or as the case may be, which have been refunded but which would have been collected or, as the case may be, would not have been refunded, if the provisions of this section had been in force at all material times.

Explanation- For the removal of doubts, it is hereby declared that no act or omission on the part of any person shall be punishable as an offence whic

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