Consumer Welfare Fund
Section 12C of the Central Excise Act, 1944 deals with consumer Welfare Fund. There shall be established by the Central Government a fund, to be called the Consumer Welfare Fund. The Act came into force on 28 Feb 1944.
1[12C. Consumer Welfare Fund.-- (1) There shall be established by the Central Government a fund, to be called the Consumer Welfare Fund.
(2) There shall be credited to the Fund, in such manner as may be prescribed,--
(a) the amount of duty of excise referred to in sub-section (2) of Section 11B or sub-section (2) of Section 11C or sub-section (2) of Section 11D;
(b) the amount of duty of customs referred to in sub-section (2) of Section 27 or sub-section (2) of Section 28A, or sub-section (2) of Section 28B of the Customs Act, 1962 (52 of 1962);
(c) any income from investment of the amount credited to the Fund and any other monies received by the Central Government for the purposes of this Fund;
2](d) the surplus amount referred to in sub-section (6) of Section 73A of the Finance Act, 1994 (32 of 1994).]]
Section 12C, 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.
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The Commissioner of Central Excise, Visakhapatnam vs Andhra Pradesh Paper Mills LTD
Court's Decision & Legal Precedent
A manufacturer who has paid excise duty is entitled to claim deduction from the sale price for trade discounts given to buyers, but is not entitled to claim refund of such duty if he has passed on the incidence of such duty to his buyers at the time of sale. The right to refund is not a matter of statutory right but is conditional upon the applicant establishing that the incidence of duty was not passed on to any other person, which includes verification up to the ultimate consumer. Where the burden of duty has been passed on from manufacturer to buyer and from buyer onwards, the manufacturer cannot claim refund as he would be unjustly enriched. The doctrine of unjust enrichment prevents any person from claiming duty refund from both ends - i.e., from his purchaser at one end and from the State on the ground that it has been collected from him contrary to law. If the ultimate consumer cannot be identified as the person who actually bore the duty burden, the unclaimed duty amount should be credited to the Consumer Welfare Fund for consumer benefit rather than refunded to the manufacturer who did not bear the actual burden.
On this section: Establishes Consumer Welfare Fund for amounts not refunded to actual duty bearers; reflects legislative intent to benefit consumers ultimately
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.
Made under this section, and citing it
1 instrument names this provision in its title or its text without being made under it.
Questions about Section 12C
What have the courts held on Section 12C of the Central Excise Act?
The Commissioner of Central Excise, Visakhapatnam vs Andhra Pradesh Paper Mills LTD (29 Aug 2016) is the leading judgment on this section among those set out below: Establishes Consumer Welfare Fund for amounts not refunded to actual duty bearers; reflects legislative intent to benefit consumers ultimately.
How do I find court cases under Section 12C 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 12C, section 12C Central Excise Act 1944, section 12C of the 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 The Commissioner of Central Excise, Visakhapatnam vs Andhra Pradesh Paper Mills LTD (29 Aug 2016).
What should I read with Section 12C 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), section 11C (Power not to recover duty of excise not levied or short-levied as a result of general practice), section 11D (Duties of excise collected from the buyer to be deposited with the Central Government), section 27 ([Omitted.]), so none of them can safely be read on its own. 2 other provisions in this corpus refer back to it. One instrument names it without being made under it, most recently CONSUMER WELFARE FUND RULES, 1992 (1992).
When did Section 12C of the Central Excise Act come into force?
Section 12C of the Central Excise Act, cited as Central Excise Act 1944 12C, 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 17 Oct 2026. This page is not a substitute for legal advice.