Bare Acts


(Section 1 to 2)|(Section 3 to 30)|(Section 31 to 60)|(Section 61 to 90)|(Section 91 to 150)|(Section 151 to 170)|(Section 171 to 189)

Amendment of section 17

91. In the Customs Act, in section 17, for sub-section (3), the following sub-section shall be substituted, namely:—
“(3) For verification of self-assessment under sub-section (2), the proper officer may require the importer, exporter or any other person to produce any document or information, whereby the duty leviable on the imported goods or export goods, as the case may be, can be ascertained and thereupon, the importer, exporter or such other person shall produce such document or furnish such information.”.

Amendment of section 27

92. In the Customs Act, in section 27, in sub-section (2), in the first proviso, after clause (f), the following clause shall be inserted, namely:—
“(g) the duty paid in excess by the importer before an order permitting clearance of goods for home consumption is made where—

(i)such excess payment of duty is evident from the bill of entry in the case of self-assessed bill of entry; or
(ii)the duty actually payable is reflected in the reassessed bill of entry in the case of reassessment.”.

Amendment of section 28E

93. In the Customs Act, in section 28E, for clause (e), the following clause shall be substituted, namely:—
‘(e) “Authority” means the Authority for Advance Rulings constituted under section 245-O of the Income-tax Act, 1961 (43 of 1961);’.

Substitution of new section of section 28F

94. In the Customs Act, for section 28F, the following section shall be substituted, namely:—
“28F. Authority for Advance Rulings — (1) Subject to the provisions of this Act, the Authority for Advance Rulings constituted under section 245-O of the Income-tax Act, 1961 shall be the Authority for giving advance rulings for the purposes of this Act and the said Authority shall exercise the jurisdiction, powers and authority conferred on it by or under this Act:

Provided that the Member from the Indian Revenue Service (Customs and Central Excise), who is qualified to be a Member of the Board, shall be the revenue Member of the Authority for the purposes of this Act.

(2) On and from the date on which the Finance Bill, 2017 receives the assent of the President, every application and proceeding pending before the erstwhile Authority for Advance Rulings (Central Excise, Customs and Service Tax) shall stand transferred to the Authority from the stage at which such application or proceeding stood as on the date of such assent.”.

Omission of section 28G

95. In the Customs Act, section 28G shall be omitted.

Amendment of section 28H

96. In the Customs Act, in section 28H, in sub-section (3), for the words “two thousand five hundred rupees”, the words “ten thousand rupees” shall be substituted.

Amendment of section 28-I

97. In the Customs Act, in section 28-I, in sub-section (6), for the words “ninety days”, the words “six months” shall be substituted.

Insertion of new section 30A

98. In the Customs Act, after section 30, the following section shall be inserted, namely:—
“30A. Passenger and crew arrival manifest and passenger name record information — (1) The person-in-charge of a conveyance that enters India from any place outside India or any other person as may be specified by the Central Government by notification in the Official Gazette, shall deliver to the proper officer—

(i)the passenger and crew arrival manifest before arrival in the case of an aircraft or a vessel and upon arrival in the case of a vehicle; and
(ii)the passenger name record information of arriving passengers,
in such form, containing such particulars, in such manner and within such time, as may be prescribed.

(2) Where the passenger and crew arrival manifest or the passenger name record information or any part thereof is not delivered to the proper officer within the prescribed time and if the proper officer is satisfied that there was no sufficient cause for such delay, the person-in-charge or the other person referred to in sub-section (1) shall be liable to such penalty, not exceeding fifty thousand rupees, as may be prescribed.”.

Insertion of new section 41A

99. In the Customs Act, after section 41, the following section shall be inserted, namely:—
“41A. Passenger and crew departure manifest and passenger name record information — (1) The person-in-charge of a conveyance that departs from India to a place outside India or any other person as may be specified by the Central Government by notification in the Official Gazette, shall deliver to the proper officer—

(i)the passenger and crew departure manifest; and
(ii)the passenger name record information of departing passengers,
in such form, containing such particulars, in such manner and within such time, as may be prescribed.

(2) Where the passenger and crew departure manifest or the passenger name record information or any part thereof is not delivered to the proper officer within the prescribed time and if the proper officer is satisfied that there was no sufficient cause for such delay, the person-in-charge or the other person referred to in sub-section (1) shall be liable to such penalty, not exceeding fifty thousand rupees, as may be prescribed.”.

Amendment of section 46

100. In the Customs Act, in section 46, for sub-section (3), the following sub-section shall be substituted, namely:—
“(3) The importer shall present the bill of entry under sub-section (1) before the end of the next day following the day (excluding holidays) on which the aircraft or vessel or vehicle carrying the goods arrives at a customs station at which such goods are to be cleared for home consumption or warehousing:

Provided that a bill of entry may be presented within thirty days of the expected arrival of the aircraft or vessel or vehicle by which the goods have been shipped for importation into India:

Provided further that where the bill of entry is not presented within the time so specified and the proper officer is satisfied that there was no sufficient cause for such delay, the importer shall pay such charges for late presentation of the bill of entry as may be prescribed.”.

Amendment of section 47

101. In the Customs Act, in section 47, in sub-section (2), for the portion beginning with the words “Where the importer fails to pay” and ending with the words “in the Official Gazette”, the following shall be substituted, namely:—
“The importer shall pay the import duty—

(a)on the date of presentation of the bill of entry in the case of self- assessment; or
(b)within one day (excluding holidays) from the date on which the bill of entry is returned to him by the proper officer for payment of duty in the case of assessment, reassessment or provisional assessment; or
(c)in the case of deferred payment under the proviso to sub-section (1), from such due date as may be specified by rules made in this behalf,
and if he fails to pay the duty within the time so specified, he shall pay interest on the duty not paid or short-paid till the date of its payment, at such rate, not less than ten per cent. but not exceeding thirty-six per cent. per annum, as may be fixed by the Central Government, by notification in the Official Gazette.”.

Substitution of new section for section 49

102. In the Customs Act, for section 49, the following section shall be substituted, namely:—
“49. Storage of imported goods in warehouse pending clearance or removal — Where,—

(a)in the case of any imported goods, whether dutiable or not, entered for home consumption, the Assistant Commissioner of Customs or Deputy Commissioner of Customs is satisfied on the application of the importer that the goods cannot be cleared within a reasonable time;
(b)in the case of any imported dutiable goods, entered for warehousing, the Assistant Commissioner of Customs or Deputy Commissioner of Customs is satisfied on the application of the importer that the goods cannot be removed for deposit in a warehouse within a reasonable time,
the goods may pending clearance or removal, as the case may be, be permitted to be stored in a public warehouse for a period not exceeding thirty days:

Provided that the provisions of Chapter IX shall not apply to goods permitted to be stored in a public warehouse under this section:

Provided further that the Principal Commissioner of Customs or Commissioner of Customs may extend the period of storage for a further period not exceeding thirty days at a time.”.

Amendment of section 69

103. In the Customs Act, in section 69, in sub-section (1), for clause (a), the following clause shall be substituted, namely:—
“(a) a shipping bill or a bill of export or the form as prescribed under section 84 has been presented in respect of such goods;”.

Omission of section 82

104. In the Customs Act, section 82 shall be omitted.

Amendment of section 84

105. In the Customs Act, in section 84, for clause (a), the following clause shall be substituted, namely:—
“(a) the form and manner in which an entry may be made in respect of goods imported or to be exported by post;”.

Amendment of section 127B

106. In the Customs Act, in section 127B, after sub-section (4), the following sub- section shall be inserted, namely:—
“(5) Any person, other than an applicant referred to in sub-section (1), may also make an application to the Settlement Commission in respect of a show cause notice issued to him in a case relating to the applicant which has been settled or is pending before the Settlement Commission and such notice is pending before an adjudicating authority, in such manner and subject to such conditions, as may be specified by rules.”.

Amendment of section 127C

107. In the Customs Act, in section 127C, after sub-section (5), the following sub- section shall be inserted, namely:—
“(5A) The Settlement Commission may, at any time within three months from the date of passing of the order under sub-section (5), amend such order to rectify any error apparent on the face of record, either suo motu or when such error is brought to its notice by the jurisdictional Principal Commissioner of Customs or Commissioner of Customs or the applicant:

Provided that no amendment which has the effect of enhancing the liability of the applicant shall be made under this sub-section, unless the Settlement Commission has given notice of such intention to the applicant and the jurisdictional Principal Commissioner of Customs or Commissioner of Customs as the case may be, and has given them a reasonable opportunity of being heard.”.

Amendment of section 157

108. In the Customs Act, in section 157, in sub-section (2), after clause (aa), the following clause shall be inserted, namely:—
“(ab) the form, the particulars, the manner and the time of delivering the passenger and crew manifest for arrival and departure and passenger name record information and the penalty for delay in delivering such information under sections 30A and 41A;”.

Amendment of section 9

109. In the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the Customs Tariff Act), in section 9, in sub-section (3), for clause (c), the following clause shall be substituted, namely:—
“(c) the subsidy has been conferred on a limited number of persons engaged in the manufacture, production or export of articles;”.

Amendment of First Schedule

110. In the Customs Tariff Act, the First Schedule shall—
(a)be amended in the manner specified in the Second Schedule;
(b)be also amended in the manner specified in the Third Schedule.

Amendment of Second Schedule

111. In the Customs Tariff Act, the Second Schedule shall be amended in the manner specified in the Fourth Schedule.

Amendment of section 23A

112. In the Central Excise Act, 1944 (1 of 1994) (hereinafter referred to as the Central Excise Act), in section 23A, for clause (e), the following clause shall be substituted, namely:—
‘(e) “Authority” means the Authority for Advance Rulings as defined in clause (e) of section 28E of the Customs Act, 1962 (52 of 1962);’.

Omission of section 23B

113. In the Central Excise Act, section 23B shall be omitted.

Amendment of section 23C

114. In the Central Excise Act, in section 23C, in sub-section (3), for the words “two thousand and five hundred rupees”, the words “ten thousand rupees” shall be substituted.

Amendment of section 23D

115. In the Central Excise Act, in section 23D, in sub-section (6), for the words “ninety days”, the words “six months” shall be substituted.

Insertion of new section 23-I

116. In the Central Excise Act, after section 23H, the following section shall be inserted, namely:—
“23-I. Transitional provision — On and from the date on which the Finance Bill, 2017 receives the assent of the President, every application and proceeding pending before the erstwhile Authority for Advance Rulings (Central Excise, Customs and Service Tax) shall stand transferred to the Authority from the stage at which such application or proceeding stood as on the date of such assent.”.

Amendment of section 32E

117. In the Central Excise Act, in section 32E, after sub-section (4), the following sub- section shall be inserted, namely:—
“(5) Any person other than an assessee, may also make an application to the Settlement Commission in respect of a show cause notice issued to him in a case relating to the assessee which has been settled or is pending before the Settlement Commission and such notice is pending before an adjudicating authority, in such manner and subject to such conditions, as may be prescribed.”.

Amendment of section 32F

118. In the Central Excise Act, in section 32F,—
(i)in sub-section (1), for words, brackets and figure ”sub-section (1) of’shall be omitted;
(ii)after sub-section (5), the following sub-section shall be inserted, namely:—
“(5A) The Settlement Commission may, at any time within three months from the date of passing of the order under sub-section (5), amend such order to rectify any error apparent on the face of record, either suo motu or when such error is brought to its notice by the jurisdictional Principal Commissioner of Central Excise or Commissioner of Central Excise or the applicant:
Provided that no amendment which has the effect of enhancing the liability of the applicant shall be made under this sub-section, unless the Settlement Commission has given notice of such intention to the applicant and the jurisdictional Principal Commissioner of Central Excise or Commissioner of Central Excise as the case may be, and has given them a reasonable opportunity of being heard.”.

Amendment of First Schedule

119. In the Central Excise Tariff Act, 1985 (hereinafter referred to as the Central Excise Tariff Act) (5 of 1986), the First Schedule shall be amended in the manner specified in the Fifth Schedule.

Retrospective amendment of certain entries in First Schedule

120. In the Central Excise Tariff Act, in the First Schedule, in Chapter 87, in column (4), for the entry “27%” occurring against tariff items 8702 90 21, 8702 90 22, 8702 90 28 and 8702 90 29, the entry “12.5%” shall be substituted and shall be deemed to have been substituted retrospectively with effect from the 1st day of January, 2017.

CHAPTER V SERVICE TAX

Amendment of section 65B

121. In the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the 1994 Act), in section 65B, clause (40) shall be omitted.

Amendment of section 66D

122. In the 1994 Act, in section 66D, clause (f) shall be omitted.

Amendment of section 96A

123. In the 1994 Act, in section 96A, for clause (d), the following clause shall be substituted, namely:—
‘(d) “Authority” means the Authority for Advance Rulings as defined in clause (e) of section 28E of the Customs Act, 1962 (52 of 1962);’.

Omission of section 96B

124. In the 1994 Act, section 96B shall be omitted.

Amendment of section 96C

125. In the 1994 Act, in section 96C, in sub-section (3), for the words “two thousand and five hundred rupees”, the words “ten thousand rupees” shall be substituted.

Amendment of section 96D

126. In the 1994 Act, in section 96D, in sub-section (6), for the words “ninety days”, the words “six months” shall be substituted.

Insertion of new section 96HA

127. In the 1994 Act, after section 96H, the following section shall be inserted, namely:—
“96HA. Transitional provision — On and from the date on which the Finance Bill, 2017 receives the assent of the President, every application and proceeding pending before the erstwhile Authority for Advance Rulings (Central Excise, Customs and Service Tax) shall stand transferred to the Authority from the stage at which such application or proceeding stood as on the date of such assent.”.

Insertion of new sections 104 and 105

128. In the 1994 Act, after section 103, the following sections shall be inserted, namely:—
“104. Special provision for exemption in certain cases relating to long term lease of industrial plots — (1) Notwithstanding anything contained in section 66, as it stood prior to the 1st day of July, 2012, or in section 66B, no service tax, leviable on one time upfront amount (premium, salami, cost, price, development charge or by whatever name called) in respect of taxable service provided or agreed to be provided by a State Government industrial development corporation or undertaking to industrial units by way of grant of long term lease of thirty years or more of industrial plots, shall be levied or collected during the period commencing from the 1st day of June, 2007 and ending with the 21st day of September, 2016 (both days inclusive).

(2) Refund shall be made of all such service tax which has been collected, but which would not have been so collected, had sub-section (1) been in force at all material times.

(3) Notwithstanding anything contained in this Chapter, an application for claim of refund of service tax shall be made within a period of six months from the date on which the Finance Bill, 2017 receives the assent of the President.

105. Special provision for exemption in certain cases relating to life insurance services provided to members of armed forces of Union — (1) Notwithstanding anything contained in section 66, as it stood prior to the 1st day of July, 2012, or in section 66B, no service tax shall be levied or collected in respect of taxable services provided or agreed to be provided by the Army, Naval and Air Force Group Insurance Funds by way of life insurance to members of the Army, Navy and Air Force, respectively, under the Group Insurance Schemes of the Central Government, during the period commencing from the 10th day of September, 2004 and ending with the 1st day of February, 2017 (both days inclusive).

(2) Refund shall be made of all such service tax which has been collected, but which would not have been so collected, had sub-section (1) been in force at all material times.

(3) Notwithstanding anything contained in this Chapter, an application for the claim of refund of service tax shall be made within a period of six months from the date on which the Finance Bill, 2017 receives the assent of the President.”.

Amendment of rule 2A of Service Tax (Determination of Value) Rules, 2006, retrospectively

129. (1) In the Service Tax (Determination of Value) Rules, 2006 made by the Central Government in exercise of the powers conferred by section 94 of the Finance Act, 1994 (32 of 1994), published in the Gazette of India vide notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 228(E), dated the 19th April, 2006,—
(a)rule 2A as inserted by the Service Tax (Determination of Value) (Amendment) Rules, 2007 published vide number G.S.R. 375(E), dated the 22nd May, 2007; and
(b)rule 2A as substituted by the Service Tax (Determination of Value) Second Amendment Rules, 2012 published vide number G.S.R. 431(E), dated the 6th June, 2012,
shall stand amended and shall be deemed to have been amended in the manner specified in column (3) of the Sixth Schedule, on and from and up to the corresponding date specified in column (4), against each of the rule specified in column (2) thereof.
(2) Notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done at any time during the period specified in column (4) of the Sixth Schedule relating to the provisions as amended by sub-section (1) shall be deemed to be and deemed always to have been, for all purposes, as validly and effectively taken or done as if the amendment made by sub-section (1) had been in force at all material times.
(3) For the purposes of sub-section (1), the Central Government shall have and shall be deemed to have the power to make rules with retrospective effect as if the Central Government had the power to make rules under section 94 of the Finance Act, 1994 (32 of 1994), retrospectively, at all material times.
Explanation:—For the removal of doubts, it is hereby declared that no act or omission on the part of any person shall be punishable as an offence which would not have been so punishable had this section not come into force.

CHAPTER VI
MISCELLANEOUS
PART I
AMENDMENTS TO THE INDIAN TRUSTS ACT 1882

Commencement of this Part

130. The provisions of this Part shall come into force on such date as the Central Government may, by notification* in the Official Gazette, appoint.

Amendment of section 20 of Act, 2 of 1882

131. In section 20 of the Indian Trusts Act,1882 [as substituted by section 2 of the Indian Trusts (Amendment) Act, 2016]:—
(i)for the words “invest the money in any of the securities or class of securities expressly authorised by the instrument of trust or”, the words “make investments as expressly authorised by the instrument of trust or in any of the securities or class of securities” shall be substituted;
(ii)in the proviso, the words “in any of the securities or class of securities mentioned above” shall be omitted.

PART II
AMENDMENTS TO THE INDIAN POST OFFICE ACT 1898

Commencement of this Part

132. The provisions of this Part shall come into force on the 1st day of April, 2017.

Amendment of section 7 of Act 6 of 1898

133. In section 7 of the Indian Post Office Act, 1898,—
(a)in sub-section (1), for the proviso, the following proviso shall be substituted, namely:—
“Provided that until such notification is issued, the rates set forth in the First Schedule shall be the rates chargeable under this Act.”;
(b)sub-section (2) shall be omitted.

PART III
AMENDMENTS TO THE RESERVE BANK OF INDIA ACT 1934

Commencement of this Part

134. The provisions of this Part shall come into force on the 1st day of April, 2017.

Amendment of section 31 of Act 2 of 1934

135. In the Reserve Bank of India Act, 1934, in section 31, after sub-section (2), the following sub-section shall be inserted, namely:—
‘(3) Notwithstanding anything contained in this section, the Central Government may authorise any scheduled bank to issue electoral bond.
Explanation:— For the purposes of this sub-section, ”electroal bond” means a bond issued by any scheduled bank under the scheme as may be notified by the Central Government.’.

PART IV
AMENDMENTS TO THE REPRESENTATION OF THE PEOPLE ACT 1951

Commencement of this Part

136.The provisions of this Part shall come into force on the 1st day of April, 2017.

Amendment of section 29C of Act 43 of 1951

137. In the Representation of the People Act, 1951, in section 29C, in sub-section (1), the following shall be inserted, namely:—
‘Provided that nothing contained in this sub-section shall apply to the contributions received by way of an electoral bond.

Explanation:—For the purposes of this sub-section, “electoral bond” means a bond referred to in the Explanation to sub-section (3) of section 31 of the Reserve Bank of India Act, 1934.

Amendment of section 23J

138. In the Securities Contracts (Regulation) Act, 1956 (42 of 1956), in section 23J, the following Explanation shall be inserted, namely:—
Explanation.—For the removal of doubts, it is clarified that the power of an adjudicating officer to adjudge the quantum of penalty under sections 23A to 23C shall be and shall always be deemed to have exercised under the provisions of this section.”.

PART VI
AMENDMENTS TO THE OIL INDUSTRY (DEVELOPMENT) ACT 1974

Commencement of this Part
139. The provisions of this Part shall come into force on the 1st day of April, 2017.

Amendment of section 18 of Act 47 of 1974

140. In the Oil Industry (Development) Act, 1974, in section 18, in sub-section (2), after clause (d), the following clauses shall be inserted, namely:—
”(e) for meeting any expenditure incurred by any Central Public Sector Undertaking in the oil and gas sector, on behalf of the Central Government;

(f) for meeting expenditure on any scheme or activity by the Central Government relating to oil and gas sector.”.

PART VII
REPEAL OF THE RESEARCH AND DEVELOPMENT CESS ACT 1986.

Commencement of this Part
141. The provisions of this Part shall come into force on the 1st day of April, 2017.

Repeal of Act 32 of 1986

142. The Research and Development Cess Act, 1986 is hereby repealed.

Savings

143. (1) The repeal of the Research and Development Cess Act, 1986 by this Act shall not—
(a)affect any other enactment in which the repealed enactment has been applied, incorporated or referred to;
(b)affect the validity, invalidity, effect or consequences of anything already done or suffered, or any right, title, obligation or liability already acquired, accrued or incurred or any remedy or proceeding in respect thereof, or any release or discharge of or from any debt, penalty, obligation, liability, claim or demand, or any indemnity already granted, or the proof of any past act or thing;
(c)affect any principle or rule of law, or established jurisdiction, form or course of pleading, practice or procedure, or existing usage, custom, privilege, restriction, exemption, office or appointment, notwithstanding that the same respectively may have been in any manner affirmed or recognised or derived by, in or from the enactment hereby repealed;
(d)revive or restore any jurisdiction, office, custom, liability, right, title, privilege, restriction, exemption, usage, practice, procedure or other matter or thing not now existing or in force.
(2) The mention of particular matter in sub-section (1) shall not be held to prejudice or affect the general application of section 6 of the General Clauses Act, 1897 (10 of 1897), with regard to the effect of repeal.

Collection and payment of arrears of duties

144. Notwithstanding the repeal of the Research and Development Cess Act, 1986 (32 of 1986), the proceeds of duties levied under the said Act immediately preceding the date of commencement of this Part,—
(i)if collected by the collecting agencies but not paid into the Reserve Bank of India; or
(ii)if not collected by the collecting agencies,
shall be paid or, as the case may be, collected and paid into the Reserve Bank of India for being credited to the Consolidated Fund of India.

PART VIII
AMENDMENTS TO THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT 1992

Commencement of this Part

145.The provisions of this Part shall come into force on such date as the Central Government may, by notification*, appoint, and different dates may be appointed for different provisions of this Part.

Amendment of Act 15 of 1992

146. In the Securities and Exchange Board of India Act, 1992 (15 of 1992) (hereafter in this Part referred to as the principal Act), in section 2, in sub-section (1):—
(A)after clause (d), the following clauses shall be inserted, namely:—
‘(da) “Insurance Regulatory and Development Authority” means the Insurance Regulatory and Development Authority of India established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999);
(db) “Judicial Member” means a Member of the Securities Appellate Tribunal appointed under sub-section (1) of section 15MA and includes the Presiding Officer;’;
(B)after clause (f), the following clause shall be inserted, namely:—
‘(fa) “Pension Fund Regulatory and Development Authority” means the Pension Fund Regulatory and Development Authority established under sub-section (1) of section 3 of the Pension Fund Regulatory and Development Authority Act, 2013 (23 of 2013);’;
(C)after clause (i), the following clause shall be inserted, namely:—
‘(j) “Technical Member” means a Technical Member appointed under sub- section (1) of section 15MB.’.

Amendment of section 15J

147. In section 15J of the principal Act, the following Explanation shall be inserted, namely:—
”Explanation.—For the removal of doubts, it is clarified that the power of an adjudicating officer to adjudge the quantum of penalty under sections 15A to 15E, clauses (b) and (c) of sections 15F, 15G, 15H and 15HA shall be and shall always be deemed to have been exercised under the provisions of this section.”.

Amendment of Chapter VIB

148. In Chapter VIB of the principal Act:—
(a) in the chapter heading, for the words “APPELLATE TRIBUNAL”, the words “SECURITIES APPELLATE TRIBUNAL” shall be substituted;
(b) for section 15K, the following section shall be substituted, namely:—
“15K. Establishment of Securities Appellate Tribunal — (1) The Central Government shall, by notification, establish a Tribunal to be known as the Securities Appellate Tribunal to exercise the jurisdiction, powers and authority conferred on it by or under this Act or any other law for the time being in force.
(2) The Central Government shall also specify in the notification referred to in sub-section (1), the matters and places in relation to which the Securities Appellate Tribunal may exercise jurisdiction.”;
(c) for section 15L, the following section shall be substituted, namely:—
“15L. Composition of Securities Appellate Tribunal — (1) The Securities Appellate Tribunal shall consist of a Presiding Officer and such number of Judicial Members and Technical Members as the Central Government may determine, by notification, to exercise the powers and discharge the functions conferred on the Securities Appellate Tribunal under this Act or any other law for the time being in force.
(2) Subject to the provisions of this Act,—
(a) the jurisdiction of the Securities Appellate Tribunal may be exercised by Benches thereof;
(b) a Bench may be constituted by the Presiding Officer of the Securities Appellate Tribunal with two or more Judicial or Technical Members as he may deem fit:
Provided that every Bench constituted shall include at least one Judicial Member and one Technical Member;
(c) the Benches of the Securities Appellate Tribunal shall ordinarily sit at Mumbai and may also sit at such other places as the Central Government may, in consultation with the Presiding Officer, notify.
(3) Notwithstanding anything contained in sub-section (2), the Presiding Officer may transfer a Judicial Member or a Technical Member of the Securities Appellate Tribunal from one Bench to another Bench.”;
(d) for section 15M, the following sections shall be substituted, namely:—
“15M. Qualification for appointment as presiding Officer, Judicial Member and Technical Members — A person shall not be qualified for appointment as the Presiding Officer or a Judicial Member or a Technical Member of the Securities Appellate Tribunal, unless he—
(a) is, or has been, a Judge of the Supreme Court or a Chief Justice of a High Court or a Judge of High Court for at least seven years, in the case of the Presiding Officer; and
(b) is, or has been, a Judge of High Court for at least five years, in the case of a Judicial Member; or
(c) in the case of a Technical Member–
(i) is, or has been, a Secretary or an Additional Secretary in the Ministry or Department of the Central Government or any equivalent post in the Central Government or a State Government; or
(ii) is a person of proven ability, integrity and standing having special knowledge and professional experience, of not less than fifteen years, in financial sector including securities market or pension funds or commodity derivatives or insurance.
15MA. Amendment of Presiding Officer and Judicial Members — The Presiding Officer and Judicial Members of the Securities Appellate Tribunal shall be appointed by the Central Government in consultation with the Chief Justice of India or his nominee.
15MB. Search-cum-Selection Committee for appointment of Technical Members — (1) The Technical Members of the Securities Appellate Tribunal shall be appointed by the Central Government on the recommendation of a Search-cum-Selection Committee consisting of the following, namely:—
(a) Presiding Officer, Securities Appellate Tribunal—Chairperson;
(b) Secretary, Department of Economic Affairs—Member;
(c) Secretary, Department of Financial Services—Member; and
(d) Secretary, Legislative Department or Secretary, Department of Legal Affairs—Member.
(2) The Secretary, Department of Economic Affairs shall be the Convener of the Search-cum-Selection Committee.
(3) The Search-cum-Selection Committee shall determine its procedure for recommending the names of persons to be appointed under sub-section (1).
15MC. Vacancy not to invalidate selection proceeding — (1) No appointment of the Presiding Officer, a Judicial Member or a Technical Member of the Securities Appellate Tribunal shall be invalid merely by reason of any vacancy or any defect in the constitution of the Search- cum-Selection Committee.
(2) A member or part time member of the Board or the Insurance Regulatory and Development Authority or the Pension Fund Regulatory and Development Authority, or any person at senior management level equivalent to the Executive Director in the Board or in such Authorities, shall not be appointed as Presiding Officer or Member of the Securities Appellate Tribunal, during his service or tenure as such with the Board or with such Authorities, as the case may be, or within two years from the date on which he ceases to hold office as such in the Board or in such Authorities.
(3) The Presiding Officer or such other member of the Securities Appellate Tribunal, holding office on the date of commencement of Part VII of Chapter VI of the Finance Act, 2017 shall continue to hold office for such term as he was appointed and the other provisions of this Act shall apply to such Presiding Officer or such other member, as if Part VII of Chapter VI of the Finance Act, 2017 had not been enacted.”;
(e) for section 15N, the following section shall be substituted, namely:—
“15N. Tenure of office of Presiding Officer, Judicial or Technical Members of Securities Appellate Tribunal — The Presiding Officer or every Judicial or Technical Member of the Securities Appellate Tribunal shall hold office for a term of five years from the date on which he enters upon his office, and shall be eligible for reappointment for another term of maximum five years:
Provided that no Presiding Officer or the Judicial or Technical Member shall hold office after he has attained the age of seventy years.”;
(f) after section 15P, the following section shall be inserted, namely:—
“15PA. Member to act as Presiding Officer in certain circumstance — In the event of occurrence of any vacancy in the office of the Presiding Officer of the Securities Appellate Tribunal by reason of his death, resignation or otherwise, the senior-most Judicial Member of the Securities Appellate Tribunal shall act as the Presiding Officer until the date on which a new Presiding Officer is appointed in accordance with the provisions of this Act.”;
(g) in section 15Q, for sub-section (2), the following sub-section shall be substituted, namely:—
“(2) The Central Government may, after an inquiry made by the Judge of the Supreme Court, remove the Presiding Officer or Judicial Member or Technical Member of the Securities Appellate Tribunal, if he—
(a) is, or at any time has been adjudged as an insolvent;
(b) has become physically or mentally incapable of acting as the Presiding Officer, Judicial or Technical Member;
(c) has been convicted of any offence which, in the opinion of the Central Government, involves moral turpitude;
(d) has, in the opinion of the Central Government, so abused his position as to render his continuation in office detrimental to the public interest; or
(e) has acquired such financial interest or other interest as is likely to affect prejudicially his functions as the Presiding Officer or Judicial or Technical Member:
Provided that he shall not be removed from office under clauses (d) and (e), unless he has been given a reasonable opportunity of being heard in the matter.”;
(h) In section 15T,—
(I) in sub-section (1):—
(A) in clause (b), for the words “under this Act,”, the words “under this Act; or” shall be substituted;
(B) after clause (b) and before the long line, the following clause shall be inserted, namely:—
“(c) by an order of the Insurance Regulatory and Development Authority or the Pension Fund Regulatory and Development Authority,”;
(II) in sub-section (3), after the words “adjudicating officer”, the words “or the Insurance Regulatory and Development Authority or the Pension Fund Regulatory and Development Authority” shall be inserted;
(III) in sub-section (5), after the words “the Board”, the words “or the Insurance Regulatory and Development Authority or the Pension Fund Regulatory and Development Authority, as the case may be” shall be inserted;
(i) in section 15U, after sub-section (3), the following sub-sections shall be inserted, namely:—
“(4) Where Benches are constituted, the Presiding Officer of the Securities Appellate Tribunal may, from time to time make provisions as to the distribution of the business of the Securities Appellate Tribunal amongst the Benches and also provide for the matters which may be dealt with, by each Bench.
(5) On the application of any of the parties and after notice to the parties, and after hearing such of them as he may desire to be heard, or on his own motion without such notice, the Presiding Officer of the Securities Appellate Tribunal may transfer any case pending before one Bench, for disposal, to any other Bench.
(6) If a Bench of the Securities Appellate Tribunal consisting of two members differ in opinion on any point, they shall state the point or points on which they differ, and make a reference to the Presiding Officer of the Securities Appellate Tribunal who shall either hear the point or points himself or refer the case for hearing only on such point or points by one or more of the other members of the Securities Appellate Tribunal and such point or points shall be decided according to the opinion of the majority of the members of the Securities Appellate Tribunal who have heard the case, including those who first heard it.”.

PART IX
AMENDMENT TO THE DEPOSITORIES ACT 1996

Amendment of section 19-I

149. In the Depositories Act, 1996 (22 of 1996), in section 19-I, the following Explanation shall be inserted, namely:—
”Explanation.—For the removal of doubts, it is clarified that the power of an adjudicating officer to adjudge the quantum of penalty under section 19A to 19F shall be shall always be deemed to have been exercised under the provisions of this section.”.

PART X
AMENDMENT TO THE FINANCE ACT 2005

Amendment of Act 18 of 2005

150. In the Finance Act, 2005, the Seventh Schedule shall be amended in the manner specified in the Seventh Schedule.

OFFICE TIMINGS
Monday to Saturday 10:00 am to 06:00 pm.
Sundays and Holidays Reserved for urgent & prior appointments.

Related Bare Acts