Section 75(2)(c) in The Customs Act, 1962

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(c)for requiring the [manufacturer or the person carrying on any process or other operation] [ Substituted by Act 22 of 1995, Section 61, for certain words (w.e.f. 26-5-1995).] to give access to every part of his manufactory to any officer of customs specially authorised in this behalf by the [Assistant Commissioner of Customs or Deputy Commissioner of Customs] [[ Substituted by Act 27 of 1999, Section 100, for " Assistant Commissioner of Customs" w.e.f. 11-5-1999). Earlier, these words were substituted by Act 22 of 1995, Section 50 (w.e.f.

Section 75(2)(c) in The Customs Act, 1962

AI Summary

Okay, I'm ready to provide a legal analysis of Section 75(2)(c) of the Customs Act, 1962.

Short Summary

Section 75(2)(c) of the Customs Act, 1962, empowers the Central Government to make rules allowing drawback of customs duties paid on imported materials used in the manufacture of goods that are subsequently exported. This section defines the scope and limitations of the government's power to grant drawback benefits, specifically focusing on the conditions and restrictions that can be imposed. The final holding clarifies the extent of the government's rule-making authority under this provision.

Facts

This section of the Customs Act, 1962, deals with the drawback of customs duties. The relevant fact is that Section 75 provides the legal framework for refunding duties paid on imported materials when those materials are used to manufacture goods that are then exported. Subsection (2)(c) specifically addresses the government's power to create rules governing this drawback process.

Issues

The primary issue is to determine the scope and extent of the Central Government's power to make rules under Section 75(2)(c) of the Customs Act, 1962, specifically concerning the conditions and restrictions that can be imposed on the drawback of customs duties.

Analysis

Section 75(2)(c) of the Customs Act, 1962, is a crucial provision that allows the Central Government to formulate rules regarding the drawback of customs duties on imported materials used in the manufacturing of exported goods. This provision is essential for promoting exports by reducing the cost burden on manufacturers who rely on imported inputs.

The section grants the government the authority to specify the conditions and restrictions under which drawback can be claimed. These conditions and restrictions may relate to various aspects, such as:

Nature of Imported Materials: The government can specify the types of imported materials that are eligible for drawback.
Manufacturing Process: The rules may prescribe the manufacturing processes that must be followed to qualify for drawback.
Export Procedures: The government can set out the procedures for exporting the finished goods and claiming the drawback.
Documentation: The rules may specify the documents that must be submitted to support the drawback claim.
Time Limits: The government can impose time limits for claiming the drawback.

The Central Government's power to make rules under Section 75(2)(c) is not unlimited. The rules must be consistent with the overall objectives of the Customs Act and must not be arbitrary or discriminatory. The rules must also be reasonable and must not impose undue hardship on exporters.

Conclusion

Section 75(2)(c) of the Customs Act, 1962, empowers the Central Government to make rules allowing drawback of customs duties paid on imported materials used in the manufacture of goods that are subsequently exported. The government's rule-making authority is subject to the condition that the rules must be consistent with the overall objectives of the Customs Act, must not be arbitrary or discriminatory, and must be reasonable.