law: Central Excise Act, 1944
  3. DUTIES SPECIFIED IN THE [ 13 [
  
  13a THE FIRST SCHEDULE AND THE SECOND SCHEDULE 13a ] TO THE CENTRAL EXCISE
  
  TARIFF ACT,1985 13 ] TO BE LEVIED 17 . 
  (1) [ 17a There shall be levied and
  
  collected in such manner as may be prescribed
  (a) a duty of excise
  
  on all excisable goods [ 18 which are produced or manufactured in India 18 ] as, and at the
  
  rates, set forth in the [ 13 Schedule to the Central Excise Tariff Act, 1985 (5
  
  of 1986) 13 ] :
  (b) a special duty of
  
  excise, in addition to the duty of excise specified in clause (a) above, on
  
  excisable goods specified in the Second Schedule to the Central Excise
  Tariff Act, 1985 (5 of 1986) which are
  
  produced or manufacture in   India  ,
  
  as, and at the rates set forth in the said Second Schedule. 17a
  
  ]
  [ 19  Provided that the duties of excise
  
  which shall be levied and collected on any [ 20 excisable goods which are
  
  produced or manufactured, -
  ( i ) in a free
  
  trade zone and brought to any other place in India ; or
  (ii) by a hundred per cent export-oriented undertaking and
  
  allowed to be sold in India, Shall be an amount equal to 20 ] the aggregate of
  
  the duties of customs which would be leviable under
  
  section 12 of the Customs Act, 1962 (52 of 1962), on like goods produced or
  
  manufactured outside India if imported into India, and where the said duties of
  
  customs are chargeable by reference to their value; the value of such excisable
  
  goods shall, notwithstanding anything contained in any other provision of this
  
  Act, be determined in accordance with the provisions of the Customs Act, 1962
  
  (52 of 1962) and the Customs Tariff Act, 1975 (51 of 1975).
  [ Explanation1 : Where in respect of
  
  any such like goods, any duty of customs leviable 
  
  under the said section 12 is leviable at different
  
  rates, then, such duty shall, for the purposes of this proviso, be deemed to be
  
   leviable under the said section 12 at the highest of
  
  those rates.
  [ 20  Explanation 2 : In this proviso, -
  ( i ) " free 
  
  trade zone" means the Kandla Free Trade Zone and
  
  the Santa Cruz Electronics Export Processing Zone and includes any other free
  
  trade zone which the Central Government may, by notification in the Official
  
  Gazette, 21 specify in this behalf;
  (ii) "hundred per cent export-oriented undertaking"
  
  means an undertaking which has been approved as a hundred per cent
  
  export-oriented undertaking by the Board appointed in this behalf by the
  
  Central Government in exercise of the powers conferred by section 14 of the
  
  Industries (Development and Regulation) Act, 1951 (65 of 1951), and the rules
  
  made under that Act. 20 ]
  [ 22 (1A) The provisions of sub-section (1) shall apply in
  
  respect of all excisable goods other than salt which are produced or
  
  manufactured in India by, or on behalf of, Government, as they apply in respect
  
  of goods which are not produced or manufactured by Government. 22 ]
  (2) The Central Government may, by notification in the Official
  
  Gazette, fix, for the purpose of levying the said duties, tariff values of any
  
  articles enumerated, either specifically or under general headings, in the [ 13 [ 13a the First Schedule and the Second Schedule 13a ]
  
  to the Central Excise Tariff Act, 1985 (5 of 1986) 13 ] as chargeable with duty
  
  ad valorem and may alter any tariff values for the
  
  time being in force.
  [ 23  (3) Different tariff values may be fixed –
  (a) for different classes or
  
  descriptions of the same excisable goods; or
  (b) for excisable goods of the same
  
  class or description –
  ( i ) produced or manufactured by different classes of producers
  
  or manufacturers; or
  (ii) sold to
  
  different classes of buyers :
  Provided  that in fixing different tariff values in
  
  respect of excisable goods falling under sub-clause ( i )
  
  or sub-clause (ii), regard shall be had to the sale prices charged by the
  
  different classes of producers or manufacturers or, as the case may be, the
  
  normal practice of the wholesale trade in such goods 23 ].