Duties of excise collected from the buyer to be deposited with the Central Government
Section 11D of the Central Excise Act, 1944 deals with duties of excise collected from the buyer to be deposited with the Central Government. Notwithstanding anything to the contrary contained in any order or direction of the Appellate Tribunal or any Court or in any other provision of this Act or the rules made thereunder, [every person who is liable to pay duty under this Act or the rules made thereunder, and has collected any amount in The Act came into force on 28 Feb 1944.
1[11D. Duties of excise collected from the buyer to be deposited with the Central Government.--
(1) Notwithstanding anything to the contrary contained in any order or direction of the Appellate Tribunal or any Court or in any other provision of this Act or the rules made thereunder, 2[every person who is liable to pay duty under this Act or the rules made thereunder, and has collected any amount in excess of the duty assessed or determined and paid on any excisable goods under this Act or the rules made thereunder from the buyer of such goods in any manner as representing duty of excise, shall forthwith pay the amount so collected to the credit of the Central Government.
3[(1A) Every person, who has collected any amount in excess of the duty assessed or determined and paid on any excisable goods or has collected any amount as representing duty of excise on any excisable goods which are wholly exempt or are chargeable to nil rate of duty from any person in any manner, shall forthwith pay the amount so collected to the credit of the Central Government.]
4[(2) Where any amount is required to be paid to the credit of the Central Government under 5[subsection (1) or sub-section (1-A), as the case may be,] and which has not been so paid, the Central Excise Officer may serve, on the person liable to pay such amount, a notice requiring him to show cause why the said amount, as specified in the notice, should not be paid by him to the credit of the Central Government.]
(3) The Central Excise Officer shall, after considering the representation, if any, made by the person on whom the notice is served under sub-section (2), determine the amount due from such person (not being in excess of the amount specified in the notice) and thereupon such person shall pay the amount so determined.
(4) The amount paid to the credit of the Central Government under 6[sub-section (1) or sub-section (1A) or sub-section (3), as the case may be, shall be adjusted against the duty of excise payable by the person on finalisation of assessment or any other proceeding for determination of the duty of excise relating to the excisable goods referred to in 7[sub-section (1) and sub-section (1A)].
(5) Where any surplus is left after the adjustment under sub-section (4), the amount of such surplus shall either be credited to the Fund or, as the case may be, refunded to the person who has borne the incidence of such amount, in accordance with the provisions of Section 11B and such person may make an application under that section in such cases within six months from the date of the public notice to be issued by the Assistant 8[Principal Commissioner of Central Excise or Commissioner of Central Excise for the refund of such surplus amount.]]
Section 11D, The Central Excise Act, 1944 (Act 1 of 1944).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
-
Commnr. of Central Excise, Meerut vs Bharat Petroleum Corpn. LTD
Court's Decision & Legal Precedent
An appeal under Section 35-L(b) of the Central Excise Act, 1944, is maintainable only when it involves determination of any question having relation to the rate of duty of Excise or to the value of goods for the purpose of assessment. A question concerning whether a dealer (as opposed to a manufacturer) is liable to pay excise duty does not relate to the rate of duty or value of goods and therefore falls outside the appellate jurisdiction conferred by Section 35-L(b). Consequently, an appeal raising only such a question is not maintainable, and the appellate court may dismiss it on jurisdictional grounds without engaging the substantive merits. Additionally, new grounds of challenge not raised before the lower appellate authority cannot be introduced for the first time before the Supreme Court.
On this section: Primary issue: whether dealers are liable to pay excise duty; Tribunal interpreted that only manufacturers are liable after the amendment by Finance Act 2000; Supreme Court declined to disturb this on merits
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
-
… Before availing SSI exemption they have availed Cenvat Credit available to them. He further held that there was no excess amount charged and collected so as to enable the Department to invoke the provisions of Section 11D of the Central Excise Act. The relevant findings of the Commissioner (Appeals) reads as follows: " It is seen from the records that the appellant were availing SSI exemption during the year 2004-2005. During February 2005 when they had crossed the exemption limit, they started paying excise duty by availing the …
-
… It was directed not to take precipitative action to enforce demands as the matter was under examination by Board. The matter has been examined. Board is of the view that Section 11D of Central Excise Act, 1944, requires a person liable to pay duty to deposit any amount collected in excess of the duty assessed or determined and paid on any excisable goods from the buyer of the goods in any manner as representing duty of excise. Therefore, in cases where duty collected has been deposited with the …
Made under this section, and citing it
4 instruments name this provision in its title or its text without being made under it.
Questions about Section 11D
What have the courts held on Section 11D of the Central Excise Act?
Commnr. of Central Excise, Meerut vs Bharat Petroleum Corpn. LTD (27 Sep 2011) is the leading judgment on this section among those set out below: Primary issue: whether dealers are liable to pay excise duty; Tribunal interpreted that only manufacturers are liable after the amendment by Finance Act 2000; Supreme Court declined to disturb this on merits.
How do I find court cases under Section 11D of the Central Excise Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Central Excise Act 1944 11D, section 11D Central Excise Act 1944, section 11D of the Central Excise Act. People searching for it also type section 11d of central excise act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Commnr. of Central Excise, Meerut vs Bharat Petroleum Corpn. LTD (27 Sep 2011).
What should I read with Section 11D of the Central Excise Act, and has it changed?
Its own text turns on section 11B (Claim for refund of duty and interest, if any, paid on such duty), so none of them can safely be read on its own. 3 other provisions in this corpus refer back to it. 4 instruments name it without being made under it, most recently Circular No. 1053/02/2017-CX (2017), then Circular No. 940/01/2011-CX (2011).
When did Section 11D of the Central Excise Act come into force?
Section 11D of the Central Excise Act, cited as Central Excise Act 1944 11D, came into force on 28 Feb 1944, having been enacted on 24 Feb 1944. It is in force as at the date shown on this page.
Other sections of this Act
- 4. Valuation of excisable goods for purposes of charging of duty of excise1751 words
- 11A. Recovery of duties not levied or not paid or short-levied or short-paid or erroneously refunded1442 words
- 11B. Claim for refund of duty and interest, if any, paid on such duty1342 words
- 35B. Appeals to the Appellate Tribunal1302 words
- 32F. Procedure on receipt of an application under Section 32-E1167 words
- 11AC. Penalty for short-levy or non-levy of duty in certain cases1093 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.