(1) This Act may be called the Motor Spirit (Duties) Act, 1917.

(2) It extends to the whole of British India; and

(3) It shall remain in force during the continuance of the present war, and for a period of six months thereafter.

Manufactory means any place where motor spirit is refined or otherwise prepared.

1[ Motor spirit means:

(a) any inflammable hydrocarbon (including any mixture of hydrocarbons or any liquid containing hydrocarbons) which is capable of being used for providing reasonably efficient motive power for any form of motor vehicle, and

(b) power alcohol, that is ethyl alcohol of any grade (including such alcohol when denatured or otherwise treated) which, either by itself or in admixture with any such hydrocarbon, is capable of being used as aforosaid.]

(1) There shall be levied and collected at every manufactory in British India on all motor spirit produced in such manufactory, a duty at the rate of 2[fifteen annas] on each imperial gallon.

Explanation. Motor spirit is said to be product within the meaning of this section when it is issued out of the premises of the manufactory.

(2) If any duty payable under sub-section (1) is not paid within the time fixed by a notice issued in accordance with any rules made under this Act, the authority to which such duty is payable may, in lieu thereof, recover any sum not exceeding double the amount of the duty so unpaid, which such authority may in its discretion think it reasonable to require.

(3) All sums recoverable under sub-section (1) shall be recovered in the manner prescribed in the India Income-Tax Act, 1886, Section 30, sub-section (1), (2), and (3), with respect to the sums therein referred to.

(1) After the commencement of this Act, no person shall issue any motor spirit out of the premises of any manufactory except in accordance with the provisions of rules made under this Act in that behalf, or, until such rules are made, in accordance with the general or special orders of the Local Government.

(2) Whoever contravenes the provisions of sub-section (1), shall be punishable with fine which may extend to rupees one thousand or to a sum double the amount of the duty payable on any motor spirit so issued, whichever is greater.

The Governor-General in Council may, by notification in the Gazette of India, declare that any of the provisions of the Sea Customs Act, 1878, relating to the levy of the exemption from, custom duties, drawback of duty, warehousing, offences and penalties, confiscation, and the procedure relating to offences and appeals shall, with such modifications and alterations as he may consider necessary or desirable to adapt them to the circumstances, by applicable in regard to like matters in respect of the duty on motor spirit imposed by Section 3 and may further, for the purpose of providing for the assessment and collection of the said duty and for purposes ancillary thereto make rules

(i) imposing on owners of manufactories the duty of furnishing returns and keeping records and books, prescribed the forms of such returns, records and books and the particulars to be contained therein, respectively, and the manner in which the same are to be verified, and all such other conditions thereof as may be necessary;

(ii) providing for the regulation of the issue of motor spirit out of manufactories, the assessment of the duty, and the issue of notices requiring payment and for the recovery of unpaid duty;

(iii) providing for the inspection of manufactories and for the taking of samples and for the making of tests of any substance produced therein;

(iv) generally carrying into effect the purposes hereinbefore specified.

(2) In making any rule under the rule-making power hereinbefore conferred, the Governor-General in Council may declare that any breach thereof shall be punishable with fine which may extend to rupees five hundred.

In addition to the duty imposed by Section 3 of the Indian Tariff Act, 1894, as subsequently amended, read with Schedule II of the said Act, there shall be levied and collected at every port to which that Act applies a duty at the rate of six annas on each imperial gallon of motor spirit, and this additional duty shall be deemed to be a duty imposed under Section 3 of the said Act and that Act shall apply accordingly.

1. Substituted by Act 39 of 1940, Section 2.

2. Substituted for twelve annas by Act 12 of 1942, Section 3.