Chapter V EXCISE DUTY AND COUNTERVAILING DUTY

21. (1) The Government may, by notification, levy an excise duty on any excisable article manufactured or produced in the Union territory under any licence or permit granted under this Act at such rate, not exceeding the rates mentioned in Schedule I as may be specified in the notification. (2) The Government may by notification, levy a countervailing duty on any excisable article manufactured or produced elsewhere in India and imported into the Union territory under a licence or permit granted under this Act at such rates as may be specified in the notification, which may not exceed the rates of excise duty on similar excisable articles levied under sub-section (1). (3) Different rates may be specified under sub-sections (1) and (2) for different kinds of excisable articles and for different modes of levying duties under section 22.

22. Subject to such rules regulating the time, place and manner, as may be prescribed, the excise duty and countervailing duty under section 21 shall be levied in one or more of the following modes as may be prescribed, namely: - (a) rateably on the quantity of any excisable article produced or manufactured in or issued from a distillery, brewery, manufactory or warehouse or imported into the Union territory; (b) in the case of spirits or other liquors produced in any distillery established or any distillery, brewery or manufactory licensed under this Act, in accordance with its quality or strength, or in accordance with such scale of equivalents calculated on the quantity of materials used, or by the degree of attenuation of the wash or work, as the case may be; (c) in the case of toddy, in the form of a tax on each variety of tree from which toddy is drawn; (d) by fees on licences in respect of the manufacture or sale of any excisable article.

23. Notwithstanding anything contained in sections 21 and 22, the sum accepted in consideration of the grant of any lease relating to any excisable article under section 16, shall be the excise duty or countervailing duty payable in respect of such excisable article in addition to any duty payable under sections 21 and 22.

24. When duty is levied by way of tax on toddy trees under section 21, and toddy trees are tapped without licence, the tax due shall be recoverable primarily from the tapper or in default by him, from the occupier, if any, of the land, or if the trees do not belong to the occupier of the land, or if the land is not occupied from the person, if any, who owns or is in possession of the tree, unless he proves that the trees were tapped without his consent.