Introduction: The Legislative Department of the Ministry of Law and Justice has ushered in a pivotal legislative change with the enactment of the Provisional Collection of Taxes Act, 2023. Assented to by the President on the 28th of December, 2023, this Act aims to provide immediate effects for a limited period to provisions in Bills related to customs or excise duties.
Detailed Analysis:
1. Act Overview: The Provisional Collection of Taxes Act, 2023, marked as NO. 50 OF 2023, empowers the Central Government to introduce Bills in Parliament with provisions for the imposition or increase of customs or excise duties. Notably, these provisions can take immediate effect under the Act.
2. Declaration Mechanism: Section 3 outlines the power vested in the Central Government to insert a declaration in a Bill, deeming it expedient in the public interest for certain provisions to have immediate effect. This mechanism ensures a swift implementation of critical fiscal changes.
3. Force of Law and Duration: Section 4 delineates that a declared provision gains the force of law immediately upon the introduction of the Bill. The article examines the circumstances under which a declared provision ceases to have the force of law, including when it becomes an enactment, is revoked by the Central Government, or expires after seventy-five days.
4. Refunds Mechanism: Section 5 introduces a refund mechanism in specific scenarios. Refunds are mandated when a declared provision transforms into an enactment before the seventy-fifth day, or when it ceases to have the force of law. The provision ensures a fair and just financial adjustment in these instances.
5. Repeal of Previous Act: The article discusses the repeal of the Provisional Collection of Taxes Act, 1931, signaling a shift in the legislative landscape and the ushering in of a more contemporary regulatory framework.
Conclusion: In conclusion, the Provisional Collection of Taxes Act, 2023, is a significant legislative development, offering insights into the immediate impact of provisions related to customs or excise duties. Stakeholders and taxpayers need to grasp the nuances of declarations, the force of law, and refund mechanisms outlined in the Act. This comprehensive analysis serves as a guide for understanding the implications and navigating the changes introduced by this pivotal legislation. Stay informed to ensure compliance and adapt to the evolving fiscal landscape.
MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi, the 29th December, 2023/ Pausha 8, 1945 (Saka)
The following Act of Parliament received the assent of the President on the 28th December, 2023 and is hereby published for general information:—
THE PROVISIONAL COLLECTION OF TAXES ACT, 2023
NO. 50 OF 2023
[28th December, 2023.]
An Act to provide for the immediate effect for a limited period of provisions in Bills relating to the imposition or increase of duties of customs or excise.
BE it enacted by Parliament in the Seventy-fourth Year of the Republic of India as follows:—
1. Short title.
This Act may be called the Provisional Collection of Taxes Act, 2023.
2. Definition.
In this Act, a “declared provision” means a provision in a Bill in respect of which a declaration has been made under section 3.
3. Power of Central Government to make declaration.
Where a Bill to be introduced in Parliament on behalf of the Government provides for the imposition or increase of a duty of customs or excise with or without change in tariff classification, the Central Government may cause to be inserted in the Bill a declaration that it is expedient in the public interest that any provision of the Bill relating to such imposition or increase shall have immediate effect under this Act.
4. Effect of declarations under this Act, and duration thereof.
(1) A declared provision shall have the force of law immediately on the expiry of the day on which the Bill containing it is introduced.
(2) A declared provision shall cease to have the force of law under the provisions of this Act—
(a) when it comes into operation as an enactment, with or without amendment;
(b) when the Central Government, in pursuance of a motion passed by Parliament, directs, by notification in the Official Gazette, that it shall cease to have the force of law; or
(c) if it has not already ceased to have the force of law under clause (a) or clause (b), then on the expiry of the seventy-fifth day after the day on which the Bill containing it was introduced.
5. Refunds to be made in certain cases.
(1) Where a declared provision comes into operation as an enactment in an amended form before the expiry of the seventy-fifth day after the day on which the Bill containing it was introduced, refunds shall be made of all duties collected which would not have been collected if the provision adopted in the enactment had been the declared provision:
Provided that the rate at which refunds of any duty may be made under this sub-section shall not exceed the difference between the rate of such duty proposed in the declared provision and the rate of such duty in force when the Bill was introduced.
(2) Where a declared provision ceases to have the force of law under clause (b) or clause (c) of sub-section (2) of section 4, refunds shall be made of all duties collected which would not have been collected if the declaration in respect of it had not been made.
6. Repeal.
The Provisional Collection of Taxes Act, 1931 is hereby repealed.
S.K.G. RAHATE,
Secretary to the Govt. of India.
