Excise Duty Act (Alongwith each year Financial Acts Amendment), 2058 (2002)


Published: 2002

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Excise Duty Act, 2058 E alongwith Financial Act
1
Excise Duty Act, 2058 (2002)
Date of Authentication and Publication
2058.10.17 (30 January 2002)
Act Number 17 of the year 2058 (2002)
An Act made to amend and codify the laws relating to excise duty
Preamble: Whereas, it is expedient to make timely and amend and codify the
laws made in respect of imposing and collecting theexcise duty on the
products manufactured in or imported into, or the services delivered in, Nepal
in order to mobilize revenue by making effective the process of collecting
revenue required for economic development of the country;
Now, therefore, be it enacted by Parliament in the first year of reign of
His Majesty the King Gyanendra Bir Bikram Shah Dev.
1. Short title and commencement: This Act may be called as the
"Excise Duty Act, 2058 (2002)."
(3) It shall come into force immediately.
2. Definitions: Unless the subject or the context otherwise requir s, in
this Act,-
(a) "Product or service subject to excise duty" means ny product or
service which is subject to the excise duty pursuant to this Act or
other law in force.
(b) "Product" means both kinds of movable and immovable property.
(c) "Service" means anything whatsoever except a product.

2
(d) "Enterprise" means a firm, company or organization established
pursuant to the law in force with an objective to manufacture,
import, store or sell and distribute a product subject to excise
duty or deliver service subject to excise duty.
(e) "License" means a license issued pursuant to Section 9.
(f) "Excise Duty Officer" means the officer designated by
Government of Nepal for purposes of this Act.
(g) "Production" means the act of manufacturing, making or
preparing a product subject to excise duty.
(h) "Manufacturer" means a person, firm, company or organization
licensed to manufacture a product subject to excise duty and it
also includes a person, firm, company or organization who
delivers service subject to excise duty.
(i) "Person" means any person, enterprise, associati n, partnership
firm, cooperative, joint venture, director of a trust or fund,
proprietor and chief representative or agent, and this term also
includes any entity who manufactures or imports andsells and
distributes in any manner any product or service subject to excise
duty, or branch or sub-branch of such an entity or similar place
of transaction.
(j) "Factory price" means the price fixed by adding only the
expenditure incurred in manufacturing, or manufacturing and
selling and distributing, a product subject to excise duty and the
profit of the enterprise, excluding the excise duty or any other tax
chargeable on such product.
(k) "Price" means,-

3
(1) Factory price, in the case of a product to be manufactured,
(2) Price as per the invoice, in the case of servic,
(3) Price fixed as per Clause (b) of Sub-section (1) of Section
7, in the case of a product to be imported.
(l) "Import" means the act of importing a product subject to excise
duty into Nepal pursuant to the law in force.
(m) "Invoice" means a bill, receipt or voucher indicat ng price issued
pursuant to this Act.
(n) "Department" means the Department specified by Government of
Nepal for purposes of this Act.
(o) "Director General" means the Director General of the
Department.
(p) "Prescribed" or "as prescribed" means prescribed or as prescribed
in the Rules framed under this Act.
3. To levy and collect excise duty: In cases where any Act makes
provision on levying excise duty for each year or for any one year in any
product or service, such excise duty shall be colleted pursuant to this
Act and the Rules framed under this Act.
4. Collection of excise duty: (1) In collecting the excise duty chargeable
pursuant to this Act, it shall be collected as follows:-
(a) In the case of a product, at the time when the
product of an enterprise is exported for sale,
(b) In the case of service, at the time when the invoice
is issued to the consumer,

4
(c) In the case of a product to be imported, at the tim
when such product is imported into Nepal for
purposes of customs.
(2) Notwithstanding anything contained in Sub-section (1), in
cases where the excise duty has to be charged on a product at the time
of its production, the procedures therefor shall be as prescribed.
5. Power to appoint or designate Excise Duty Officer: Government of
Nepal may, for purposes of this Act, appoint Excise Duty Officer in the
required number, and in cases where Government of Nepal thinks it
necessary, it may designate any other officer of Government of Nepal to
act as the Excise Duty Officer.
6. Jurisdiction of Excise Duty Officer: Jurisdiction of the Excise Duty
Officer shall be as specified by Government of Nepal.
7. Fixation of price of product or service subject to excise duty: (1)
In cases where the excise duty is to be levied on any product according
to value (ad valorem), the excise duty shall be levied taking the
following price as the basis.-
(a) Manufacture:
(1) the price which a manufacturer receives at
the time and place of selling a product
subject to excise duty to a whole sale
purchaser, or
(2) the price specified by the Department on the
basis of production/manufacturing cost.

5
(b) Importation:
In respect of a product to be imported, the
price fixed for purposes of collecting customs tariff
on such a product.
Provided that, in cases where the product to
be imported is being manufactured in Nepal, too,
and the Department has fixed the price of that
product for purposes of Clause (a), excise duty
shall be collected on the basis of the price
whichever is higher out of that price and the price
referred to in this Clause.
(2) Excise duty on service shall be collected by fixing the price as
per the invoice.
(3) For purposes of collecting excise duty, the Department may,
as per necessity, re-fix the price or fix additional price.
8. License to be obtained: (1) No one shall manufacture, import, sell or
store a product subject to excise duty or deliver service subject to excise
duty to any other person, without obtaining a license pursuant to this
Act.
(2) A person, firm, company or organization that intends to
obtain a license as referred to in Sub-section (1) has to make an
application to the Excise Duty Officer for the license, in such format and
accompanied by such fee as prescribed.
9. Provision relating to license: (1) In cases where an application is
made to the Excise Duty Officer for the license pursuant to Section 8,
the Department or the Excise Duty Officer designated by the

6
Department shall issue such license in the prescribed format if it appears
appropriate upon making necessary examination on such an application.
(2) The terms of the license to be issued pursuant to Sub-section
(1) and method of its renewal and renewal fee shall be as prescribed.
10. Power to cancel license: The Department may cancel the license
issued pursuant to Sub-section (1) of Section 9 in the following
circumstances:-
(a) In cases where the terms and conditions specified in the license
are found to have been violated,
(b) In cases where it appears to be contrary to public interest.
11. To search on adequate ground: In cases where there is a reasonable
ground to suspect that any one is exporting the product subject to excise
duty from an enterprise or importing it from abroad by evading excise
duty, the Excise Duty Officer or the employee designated by him/her
may hold up any person or motor vehicle whatsoever and require for
submission of an evidence of payment of excise duty. Failure to submit
the evidence of payment of excise duty shall be considered evasion of
excise duty.
12. Power to search, seize or arrest: (1) In cases where any person, firm,
company or organization carries on business by importing, selling or
storing a product or goods subject to excise duty or by delivering service
subject to excise duty without obtaining license, or the Excise Duty
Officer or the employee designated by him/her receives nformation that
excise duty is evaded pursuant to Section 11, such Officer or employee
may search any enterprise, house, land, motor vehicle or place where
such act is being carried out.

7
(2) While carrying out a search pursuant to Sub-section (1), if a
business is found being carried on by manufacturing, selling, importing,
storing or transporting a product subject to excise duty or delivering
service subject to excise duty in contravention of this Act, the Officer or
employee conducting the search may, by issuing a notice, arrest a person
engaged in such act and seize the goods recovered there, by executing a
memorandum (Muchulka).
(3) In cases where any offense under this Act is being committed
in any enterprise, house, land, motor vehicle or place, and the Excise
Duty Officer finds a possibility that the offender may escape or the proof
and evidence of the offense may disappear if no action is taken
immediately, the Excise Duty Officer or employee designated by him/her
may, by executing a memorandum thereof, personally c rry out or cause
any of his/her subordinate employee to carry out the following acts at
any time:
(a) to enter into such enterprise, house, land, motor
vehicle or place,
(b) if there is any obstruction and objection in so
entering into, to give a reasonable opportunity for
any person staying in that place to leave the place,
and enter into there by breaking out the window or
door,
(c) to seize the product subject to excise duty related
with the offense, and such other goods and
documents as may be ancillary to prove the offense,
(d) to suspend the license, and
(e) to arrest the suspect of the offense.

8
(4) In entering into any enterprise, house, land, motor vehicle or
place or carrying out a search pursuant to this Section, such entry or
search shall be conducted in witness of one member of the concerned
Municipal Corporation, Sub-municipal Corporation, Municipality or
Village Development Committee or one local person of that place.
(5) If someone has been arrested or any enterprise, house, land,
motor vehicle or place has been searched out or the products subject to
excise duty or other goods have been seized under this Act, the Excise
Duty Officer who has so arrested, searched out or seized has to send,
through faster means, a report thereof to the Directo General of the
Department within Twenty Four hours of such arrest, search or seizure
of goods. In cases where any other employee subordinate to the Excise
Duty Officer has carried out such act, such employee shall send a report
thereof to the Excise Duty Officer or the Department within Twenty
Four hours of carrying out such act.
(6) The Excise Duty Officer shall have the same powers in
respect of investigation of the offense under this Act as the police is
entitled to exercise pursuant to the law in force.
(7) In cases where the Excise Duty Officer requests the local
administration or the police for assistance in search, arrest or seizure,
the local administration or the police has to render such assistance
immediately.
13. Duty to give information of offense: (1) In cases where any person
comes to know that any one is about to commit or is committing or has
already committed any act contrary to this Act, it shall be the duty of
such a person to give information thereof to the Excise Duty Office or to
the police office or any other governmental office where the Excise Duty
Office is not situated nearby. The informer may give such information

9
verbally or in writing. The office that receives such information has to
forward such information to the concerned Excise Duty Office.
(2) In cases where the informer intends to keep his/her name
secret, he/she may give his/her identity in code langu ge.
(3) In giving information, the informer shall not be compelled to
disclose the source of his/her information.
14. Reward: (1) A government employee or any other person who gives
information or clue about any act which is about to be or being or has
been committed contrary to this Act shall, after final settlement of the
case, be awarded by the concerned Excise Duty Office a reward in a sum
to be set as follows of the proceeds recovered fromthe claimed amount
of the product subject to excise duty seized from the accused:-
(a) Twenty per cent of the amount in controversy to
the informer,
(b) Forty per cent of the amount in controversy to one
who arrests and hands over the person, along with
the proof,
(c) Twenty Five per cent of the amount in controversy
to one who seizes and hands over a product only.
Provided that, in cases where the informer be more than one
person, the reward shall be divided between them pro rata.
(2) In cases where any employee or police arrests a person, along
with the goods seized, upon having a clue, Twenty Five percent of the
amount in controversy shall be given to such an employee or police.
Provided that, in cases where only a product is seized, Twenty
Five percent of the value of the product shall be giv n as reward. In

10
cases where the reward to be so given exceeds Fifteen Thousand Rupees
per person at a time, it shall be given not in excess of that figure.
15. Penalty to the person who does not give information or render
assistance: In cases where any person who has the duty to give
information that any act is about to be, being or has been committed
contrary to this Act, after knowing such matter, or t render assistance
as and when sought by the Excise Duty Office, does not knowingly give
such information or render such assistance as the cas may be, such a
person shall be punished with imprisonment for a term not exceeding
Three months or with a fine of up to Ten Thousand Rupees or with both
punishments, based on the nature of the offense.
16. Penalties: (1) In cases where any person commits the following offense,
such a person shall be punished with imprisonment for a term not
exceeding One year or with a fine in a sum equivalent to the amount in
controversy or with both punishments for such offence, and the amount
in controversy shall also be seized:-
(a) To conceal, hide or evade the excise duty requid
to be paid under this Act, or
(b) To violate Section 8, or
(c) To commit any offense contrary to this Act by
preparing a false account or forged document.
(2) In cases where anyone attempts or abets to commit the
offense referred to in Clause (a), (b) or (c), he/s hall be punished
with half of the punishment.
(3) The utensils used directly or indirectly with the offense, tools
machines, equipment and motor vehicle used to manufacture or make a
product or service shall also be seized.

11
Provided that, in cases where the person who commits such
offense uses a motor vehicle on hire and uses it insuch act without
permission of the owner of the vehicle, such vehicle shall not be seized,
but the owner of the vehicle shall be punished with a fine of Twenty
Five Thousand Rupees and the driver shall be punished with
imprisonment for a term not exceeding Three months or with a fine of
up to Fifteen Thousand Rupees or with both punishments, based on the
nature of the offense.
(4) Notwithstanding anything contained in Sub-section (3), in
cases where a motor vehicle is registered as on hire and used by its
owner him/herself, such vehicle shall be seized.
17. To withhold and auction property: (1) In cases where the Excise
Duty Officer has a reasonable ground for seizing the property belonging
to any person pursuant to this Act or the Rules framed hereunder, the
Excise Duty Officer may so withhold such property that the title to or
ownership over it is incapable of being transferred to anyone else.
(2) In cases where it appears that the property so withheld can be
perished, decayed or destroyed or its value can be diminished, the
Excise Duty Officer has to immediately auction such product and credit
the proceeds from the auction sale. In cases where t concerned person
is subsequently held entitled to have the withheld property returned to
him/her, only the proceeds from the auction sale shall be refunded to
him/her. The concerned person shall not be entitled to claim for the
return of the product itself.
18. Powers of court of law to be vested: (1) For purposes of this Act, the
Excise Duty Officer shall have the powers vested in a court under the
law in force in the matters of summoning the presence of the concerned
person, recording of statements, examining evidence, compelling

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production of documents, holding such person in detention or releasing
on bail.
(2) In taking action under this Act, the Excise Duty Officer has to
follow the procedures referred to in the Summary Procedure Act, 2028
(1971).
19. Appeal: An appeal may be made to the Revenue Tribunal against any
decision made by the Excise Duty Officer pursuant to his Act within
Thirty Five days.
20. Powers that cannot be delegated: The powers conferred on the
Excise Duty Officer pursuant to Sections 15 and 16 shall not be
delegated.
21. Circumstances where proceedings for seizure are suspended: In
cases where the Excise Duty Officer has made a decision to seize the
property of any person pursuant to this Act or the Rules framed
hereunder and an appeal has been made against the decision, the appeal
hearing authority may issue an order to the Excise Duty Officer to
suspend the proceedings to seize the property pending the settlement of
the appeal.
Provided that, the provision of this Section shall not apply in the
cases referred to in Sub-section (2) of Section 17.
22. Recovery of dues as governmental dues: If a person does not pay
any amount due and payable to Government of Nepal pursuant to this
Act and the Rules framed hereunder, the Excise Duty Officer shall
recover such amount from such person as a governmental due.
23. Provision relating to review: (1) In cases where a taxpayer makes an
application within Thirty Five days of receipt of order levying the excise
duty, claiming that tax liability has increased because of failure of the

13
Excise Duty Officer to observe the matters referred to in this Act or
irregularity or recklessness committed by that Officer in collecting the
excise duty, the Director General may, if he/she thinks it appropriate
upon investigation, cancel such order and order to collect the excise
duty again.
(2) The Director General shall to hold necessary investigation
and dispose of the application made pursuant to Sub-section (1) within
Ninety days.
(3) In cases where the concerned person is not satisfied with the
decision made by the Director General, such person may make an
appeal to the Revenue Tribunal within Thirty Five days of date of
receipt of notice of the decision.
Provided that, in cases where an appeal is made pursuant to
Section 19, no appeal can be made for review pursuant to this Section.
24. This Act to prevail on tax provision: Notwithstanding anything
contained in the law in force, except in cases where the Financial Act to
be enforced in every year amends this Act and provides for imposition,
assessment, increase, decrease, exemption, or remission of tax, no other
Act shall make any amendment to, or alter tax provisi ns referred to in
this Act or make other tax related provisions.
25. Power to frame Rules: Government of Nepal may frame necessary
Rules in order to carry out the objectives of this Act.
26. Repeal and saving: (1) The Excise Duty Act, 2015 (1959) is, hereby,
repealed.
(2) All the acts done and actions taken under the Excise Duty
Act, 2015 (1959) shall be deemed to have been done or taken pursuant
to this Act.

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15
Financial Ordinance, 2059 (2002)
Date of Authentication and Publication
2059.3.24 (8 July 2002)
Ordinance number 2 of the year 2059
An Ordinance Made to Implement Proposals Relating to Finance of
the Government of Nepal
Preamble: Whereas, it is expedient to levy some charges, taxes, duties, cesses
and fees, continue or alter the existing ones and also to amend the laws in force
relating to revenue administration in order to implement the proposals relating
to finance of the Government of Nepal and at the moment Parliament is not in
session;
Now, therefore, be it enacted by His Majesty the King Gyanendra Bir
Bikram Shah Dev has, in accordance Articles 72 of C nstitution Kingdom of
Nepal, 2047 (1990).
1. Short title and commencement: (1) This Act may be called as the
“Financial Ordinance, 2059 (2002)."
(2) Sections 1, 2, 3, 4, 5, 9, Sub-section (1) of Section 17, 21
and 22 of this Act shall be deemed to have come into force on 24 Ashad
2059 and the other Sections on 1 Shrawan 2059.
21. Amendment to the Excise Duty Act, 2058 (2002): Of the Excise Duty
Act, 2058(2002):
(1) The following Section 3 shall be substituted for Section 3:
“3. To levy and collect excise duty: (1) Except Otherwise
mention, in yearly enforceable Financial Act, the excise

16
duty set forth in the Schedule shall be levied and
recovered.
(2) In the event of failure to pay the excise duty
referred to in Sub-section (1) within the time limit, there
shall be charged a delay fee by 0.05 percent on the due
and payable amount per day.
(3) Notwithstanding contain in Sub-section (1),
there shall be refunded, in exporting goods from Nepal,
to be paid excise duty from the enterprise and on any sold
by duty free shop (bonded warehouse or duty free shop)
on the basis of sale.
(2) The following Sub-section (3) shall be inserted after Sub-section
(2) of Section 4:
“(3) The Office may, at any time, examine the volume of
alcohol and quality of liquors and other substance to be
exported by obtaining approval. Where the volume of
alcohol is more than one percent or there is a significa t
deviation in the quality, the amount of controversy
involved in the revenue leakage as well as additional sum
that is Twenty Five percent of that amount shall be
recovered.”
(3) The following Section 25A. Shall be inserted after Section 25:
“25A. Power to frame and issue manual: The Department
may frame and issue necessary Manuals, subject to this
Act and the Rules framed under this Act.”
(4) The following Schedule shall be inserted after S ction 26:

17
Schedule
(Relating to Section 3)
Rate of excise duty:
SN Description of product/good or
service
Unit Rate of
excise duty
1. Khudo (Molasses) Per quintal Rs. 25.00
2. Sakkhhar (Gud), black Sajhhar,
Raskat (only in import) Per quintal Rs. 55.00
3. Fruit juices or Light beverages of
mixed juices. Per liter Rs. 2.00
4. Kattha, Pan Masala and similar
other goods with or without nicotine
containing lime Per Kilogram Rs. 175.00
5. Wine containing not more 17 percent
alcohol made from fruits Per liter Rs.75.00
6. Sampen, sherry, mead, perry, Per liter Rs.130.00
7. Wine containing more than 17
percent alcohol, wine, cocktail,
liquors, and fermented. Per liter Rs.130.00
8. Cider/cocktail drinks Per liter Rs.70.00
9. beer Per liter Rs.38.00
10. country beer (Chhyang) Per liter Rs.15.00
11. Denatured spirit, Per liter Rs.6.00
12. Thinner Per liter Rs.25.00
13. All kinds of alcoholic fluids used as
raw materials of liquors containing
57.38 percent to 80 percent alcohol
by volume Per L.P. liter Rs.70.00

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14. Rectified spirits, silent Spirits
(E.N.A.) used as raw materials of
liquors containing more than 80
percent alcohol by volume Per liter Rs.25.00
15. Liquors
(a) less than 40 U.P. strength Per LP liter Rs.275.00
(b) With 40 U.P. strength and more
than that and less than 65 U.p.
strength. Per LP liter Rs.160.00
(c) With 65 U.P. strength and more
than that U.P. strength. Per LP liter Rs.50.00
16. All kind of light beverages without
containing alcohol.
Per liter

Rs. 2.00

17. Cigarettes (all kinds of cigarettes
made from tobacco)
(1) In up to 70 mm length
(a) Without filter Per M Rs. 125.00
(b) With filter Per M Rs. 300.00
(2) In more than 70 mm up to 75 mm
length (with filter) Per M Rs. 385.00
(3) In more than 75 mm up to 85 mm
length (with filter) Per M Rs. 530.00
(4) In more than 85 mm length (with
filter) Per M Rs. 710.00
18. All kinds of cigar Per stick Rs. 2.50
19. Pipe tobacco Per kilogram Rs. 365.00
20. All kinds of jarda, khaini and Nash
made from tobacco Per kilogram Rs. 175.00
21. Packed raw chewable tobacco
containing lime Per kilogram Rs. 105.00

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22. All kinds of cements Per metric ton Rs. 105.00
23. All kinds of Polithin (plastic) bags. Per kilogram Rs.15.00
24. All kinds of bricks (except domestic
production) Per thousand Rs. 525.00
25. Petrol and disel pick up van (gadi),
(Single cab Delivery van) (customs
heading 8704). Value percent 15 percent

Note :
(1) Less than 20 microne polithin bags are not permitted to sale or
distribution inside the Nepal.
(2) The Department may interpret and specify the harmonized codes
of the products.


20
Financial Ordinance, 2059 (2003)
Date of Authentication and Publication
2059.9.22 (6 January 2003)
Ordinance number 8 of the year 2059
An Ordinance Made to Implement Proposals Relating to Finance of
the Government of Nepal
Preamble: Whereas, it is expedient to levy some charges, taxes, duties, cesses
and fees, continue or alter the existing ones and also to amend the laws in force
relating to revenue administration in order to implement the proposals relating
to finance of the Government of Nepal and at the moment Parliament is not in
session;
Now, therefore, be it enacted by His Majesty the King Gyanendra Bir
Bikram Shah Dev has, in accordance with Articles 72 of Constitution
Kingdom of Nepal, 2047 (1990).
1. Short title and commencement: (1) This Act may be called as the
“Financial Ordinance, 2059 (2003)."
(2) This ordinance shall come into force immediately.
21. Amendment to the Excise Duty Act, 2058 (2002): Of the Excise
Duty Act, 2058(2002):
(1) The following Section 3 shall be substituted for Section 3:
“3. To levy and collect excise duty: (1) In manufacturing or
importing any goods or products set forth in the Schedule,
the excise duty set forth in the Schedule shall be evied
and recovered.

21
(2) In the event of failure to pay the excise duty
referred to in Sub-section (1) within the time limit, there
shall be charged a delay fee by 0.05 percent on the due
and payable amount per day.
(3) Notwithstanding contain in Sub-section (1),
there shall be furnished a bank guarantee or cash deposit
for the amount of excise duty leviable while exporting
goods, to be paid excise duty from the enterprise and on
any sold by duty free shop (bonded warehouse or duty
free shop). The procedures for the release of such bank
guarantee or cash deposit shall be as prescribed by the
Department
(2) The following Sub-section (3) shall be inserted after Sub-section
(2) of Section 4:
“(3) The Office may, at any time, examine the volume of
alcohol and quality of liquors and other substance to be
exported by obtaining approval. Where the volume of
alcohol is more than one percent or there is a significa t
deviation in the quality, the amount of controversy
involved in the revenue leakage as well as additional sum
that is Twenty Five percent of that amount shall be
recovered.”
(3) The following Section 25A. Shall be inserted after Section 25:
“25A. Power to frame and issue manual: The Department
may frame and issue necessary Manuals, subject to this
Act and the Rules framed under this Act.”
(4) The following Schedule shall be inserted after S ction 26:

22
Schedule
(Relating to Section 3)
Rate of excise duty:
SN Description of product/good or
service
Unit Rate of
excise duty
1. Khudo (Molasses) Per quintal Rs. 25.00
2. Sakkhhar (Gud), black Sajhhar,
Raskat (only in import) Per quintal Rs. 55.00
3. Fruit juices or Light beverages of
mixed juices. Per liter Rs. 2.00
4. Kattha, Pan Masala and similar
other goods with or without nicotine
containing lime Per Kilogram Rs. 175.00
5. Wine containing not more 17 percent
alcohol made from fruits Per liter Rs.75.00
6. Sampen, sherry, mead, perry, Per liter Rs.130.00
7. Wine containing more than 17
percent alcohol, wine, cocktail,
liquors, and fermented. Per liter Rs.130.00
8. Cider/cocktail drinks Per liter Rs.70.00
9. beer Per liter Rs.38.00
10. country beer (Chhyang) Per liter Rs.15.00
11. Denatured spirit, Per liter Rs.6.00
12. Thinner Per liter Rs.25.00
13. All kinds of alcoholic fluids used as
raw materials of liquors containing
57.38 percent to 80 percent alcohol
by volume Per L.P. liter Rs.70.00
14. Rectified spirits, silent Spirits Per liter Rs.25 00

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(E.N.A.) used as raw materials of
liquors containing more than 80
percent alcohol by volume
15. Liquors
(a) less than 40 U.P. strength Per LP liter Rs.275.00
(b) With 40 U.P. strength and more
than that less than 65 U.P. strength. Per LP liter Rs.160.00
(c) With 65 U.P. strength and more
than that U.P. strength. Per LP liter Rs.50.00
16. All kind of light beverages without
containing alcohol.
Per liter

Rs. 2.00

17. Cigarettes (all kinds of cigarettes
made from tobacco)
(1) In up to 70 mm length
(a) Without filter Per M Rs. 125.00
(b) With filter Per M Rs. 300.00
(2) In more than 70 mm up to 75 mm
length (with filter) Per M Rs. 385.00
(3) In more than 75 mm up to 85 mm
length (with filter) Per M Rs. 530.00
(4) In more than 85 mm length (with
filter) Per M Rs. 710.00
18. All kinds of cigar per stick Rs. 2.50
19. Pipe tobacco Per kilogram Rs. 365.00
20. All kinds of jarda, khaini and Nash
made from tobacco Per kilogram Rs. 175.00
21. Packed raw chewable tobacco
containing lime Per kilogram Rs. 105.00
22. All kinds of cements Per metric ton Rs. 105.00
23. All kinds of Polithin (plastic) bags. Per kilogram Rs.15.00

24
24. All kinds of bricks (except domestic
production) Per thousand Rs. 525.00
25. Petrol and disel pick up van (gadi),
(Single cab Delivery van) (customs
heading 8704). Value percent 15 percent

Note :
(1) Less than 20 microne polithin bags are not permitted to sale or
distribution inside the Nepal.
(2) The Department may interpret and specify the harmonized codes
of the products.


25
Financial Ordinance, 2060 (2003)
Date of Authentication and Publication
2060.3.16 (1 July 2003)
Ordinance number 3 of the year 2060
An Ordinance Made to Implement Proposals Relating to Finance of
the Government of Nepal
Preamble: Whereas, it is expedient to levy some charges, taxes, duties, cesses
and fees, continue or alter the existing ones and also to amend the laws in force
relating to revenue administration in order to implement the proposals relating
to finance of the Government of Nepal and at the moment Parliament is not in
session;
Now, therefore, be it enacted by His Majesty the King Gyanendra Bir
Bikram Shah Dev has, in accordance with Articles 72 of Constitution Kingdom
of Nepal, 2047(1990).
1. Short title and commencement: (1) This Act may be called as the
“Financial Ordinance, 2060 (2003)."
(2) This ordinance come into force immediately.
(3) This ordinance shall prevail till the last day of Ashad, 2060
B.S.
21. Amendment to the Excise Duty Act, 2058 (2002): Of the Excise
Duty Act, 2058(2002):
(1) The following Section 3 shall be substituted for Section 3:
“3. To levy and collect excise duty: (1) In manufacturing or
importing any goods or products set forth in the Schedule,

26
the excise duty set forth in the Schedule shall be evied
and recovered.
(2) In the event of failure to pay the excise duty
referred to in Sub-section (1) within the time limit, there
shall be charged a delay fee by 0.05 percent on the due
and payable amount per day.
(3) Notwithstanding contain in Sub-section (1),
there shall be furnished a bank guarantee or cash deposit
for the amount of excise duty leviable while exporting
goods, to be paid excise duty from the enterprise and on
any sold by duty free shop (bonded warehouse or duty
free shop). The procedures for the release of such bank
guarantee or cash deposit shall be as prescribed by the
Department
(2) The following Sub-section (3) shall be inserted after Sub-section
(2) of Section 4:
“(3) The Office may, at any time, examine the volume of
alcohol and quality of liquors and other substance to be
exported by obtaining approval. Where the volume of
alcohol is more than one percent or there is a significa t
deviation in the quality, the amount of controversy
involved in the revenue leakage as well as additional sum
that is twenty five percent of that amount shall be
recovered.”
(3) The following Section 25A. Shall be inserted after Section 25:
“25A. Power to frame and issue manual: The Department
may frame and issue necessary Manuals, subject to this
Act and the Rules framed under this Act.”
(4) The following Schedule shall be inserted after S ction 26:

27

28
Schedule
(Relating to Section 3)
Rate of excise duty:
SN Description of product/good or
service
Unit Rate of
excise duty
1. Khudo (Molasses) Per quintal Rs. 25.00
2. Sakkhhar (Gud), black Sajhhar,
Raskat (only in import) Per quintal Rs. 55.00
3. Fruit juices or Light beverages of
mixed juices. Per liter Rs. 2.00
4. Kattha, Pan Masala and similar
other goods with or without nicotine
containing lime Per Kilogram Rs. 175.00
5. Wine containing not more 17 percent
alcohol made from fruits Per liter Rs.75.00
6. Sampen, sherry, mead, perry, Per liter Rs.130.00
7. Wine containing more than 17
percent alcohol, wine, cocktail,
liquors, and fermented. Per liter Rs.130.00
8. Cider/cocktail drinks Per liter Rs.70.00
9. Beer Per liter Rs.38.00
10. Country beer (Chhyang) Per liter Rs.15.00
11. Denatured spirit, Per liter Rs.6.00
12. Thinner Per liter Rs.25.00
13. All kinds of alcoholic fluids used as
raw materials of liquors containing
57.38 percent to 80 percent alcohol
by volume Per L.P. liter Rs.70.00

29
14. Rectified spirits, silent Spirits
(E.N.A.) used as raw materials of
liquors containing more than 80
percent alcohol by volume Per liter Rs.25.00
15. Liquors
(a) less than 40 U.P. strength Per LP liter Rs.275.00
(b) With 40 U.P. strength and more
than that and less than 65 U.P.
strength. Per LP liter Rs.160.00
(c) With 65 U.P. strength and more
than that U.P. strength. Per LP liter Rs.50.00
16. All kind of light beverages without
containing alcohol.
Per liter

Rs. 2.00

17. Cigarettes (all kinds of cigarettes
made from tobacco)
(1) In up to 70 mm length
(a) Without filter Per M Rs. 125.00
(b) With filter Per M Rs. 300.00
(2) In more than 70 mm up to 75 mm
length (with filter) Per M Rs. 385.00
(3) In more than 75 mm up to 85 mm
length (with filter) Per M Rs. 530.00
(4) In more than 85 mm length (with
filter) Per M Rs. 710.00
18. All kinds of cigar per stick Rs. 2.50
19. Pipe tobacco Per kilogram Rs. 365.00
20. All kinds of jarda, khaini and Nash
made from tobacco Per kilogram Rs. 175.00
21. Packed raw chewable tobacco
containing lime Per kilogram Rs. 105.00

30
22. All kinds of cements Per metric ton Rs. 105.00
23. All kinds of Polithin (plastic) bags. Per kilogram Rs.15.00
24. All kinds of bricks (except domestic
production) Per thousand Rs. 525.00
25. Petrol and disel pick up van (gadi),
(Single cab Delivery van) (customs
heading 8704). Value percent 15 percent

Note :
(1) Less than 20 microne polithin bags are not permitted to sale or
distribution inside the Nepal.
(2) The Department may interpret and specify the harmonized codes
of the products.


31
Financial Ordinance, 2060 (2003)
Date of Authentication and Publication
2060.4.1(17 July 2003)
Ordinance number 7 of the year 2060
An Ordinance Made to Implement Proposals Relating to Finance of
the Government of Nepal
Preamble: Whereas, it is expedient to levy some charges, taxes, duties, cesses
and fees, continue or alter the existing ones and also to amend the laws in force
relating to revenue administration in order to implement the proposals relating
to finance of the Government of Nepal and at the moment Parliament is not in
session;
Now, therefore, be it enacted by His Majesty the King Gyanendra Bir
Bikram Shah Dev has, in accordance with Articles 72 of Constitution Kingdom
of Nepal, 2047(1990).
1. Short title and commencement: (1) This Act may be called as the
“Financial Ordinance, 2060 (2003)."
(2) This ordinance shall come into force immediately.
23. Amendment to the Excise Duty Act, 2058 (2002): Of the Excise
Duty Act, 2058(2002):
(1) The following Section 3 shall be substituted for Section 3:
“3. To levy and collect excise duty: (1) In manufacturing or
importing any goods or products set forth in the Schedule,
the excise duty set forth in the Schedule shall be evied
and recovered.

32
Provided that, the excise duty which used in khudo
(molases) or spirit in the product of liquor may be
deducted from the excise duty to be paid on exporting the
ready liquor.
(2) In the event of failure to pay the excise duty
referred to in Sub-section (1) within the time limit, there
shall be charged a delay fee by 0.05 percent on the due
and payable amount per day.
(2) The following Sections 3A. Shall be inserted after Section 3:
“3A. Not to levy excise duty on export from the State of
Nepal: (1) No excise duty shall be levied on goods which
exported by an enterprise or on any goods sold by a
bonded warehouse and duty free shop from the Nepal.
(2) For the purposes of Sub-section (1), there shall
be furnished a bank guarantee or cash deposit for the
amount of excise duty leviable while exporting a product
subject to excise duty from the enterprise. The procedures
for the release of such bank guarantee or cash deposit
shall be as prescribed by the Department.
(3) The following Sub-section (3) shall be inserted after Sub-section
(2) of Section 4:
“(3) The Office may, at any time, examine the volume of
alcohol and quality of liquors and other substance to be
exported by obtaining approval. Where the volume of
alcohol is more than one percent or there is a significa t
deviation in the quality, the amount of controversy
involved in the revenue leakage as well as additional sum

33
that is Twenty Five percent of that amount shall be
recovered.”
(4) Of Section 7:
(a) The words “the price set by also adding the customs duty
to the price fixed” shall be substituted for the words “the
price fixed” contained in Clause (b) of Sub-section (1).
(b) The following Sub-sections (4) and (5) shall be inserted
after Sub-section (3):
“(4) The determination of the rate of recovery of the
production of ethanol, spirit or E.N.A. required to
be obtained from grains, molasses, spirit or E.N.A.
to be used by an industry producing anhydrides,
ethanol, rectified spirit or E.N.A. shall be as
prescribed.
(5) Where it appears that the rate of production is les
than the recovery rate prescribed under Sub-section
(4), it shall be deemed that higher quality liquors
have been produced from such different quantity of
ethanol, rectified spirit or E.N.A.”
(5) Of Section 16:
(a) The following Clause (b) shall be substituted for Clause
(b) of Sub-section (1):
“(b) To produce or import a product subject to excise
duty without obtaining the license,”
(b) The following Sub-section (5) shall be inserted after Sub-
section (4):

34
“(5) Where any person commits any of the following
offences, such person shall be punished with a fine
from Five Thousand Rupees to Fifteen Thousand
Rupees according to the gravity of offence:
(a) To sell or store any product subject to excise
duty without obtaining the license;
(b) To provide any service subject to excise duty
without obtaining the license;
(c) To violate this Act and the Rules framed
under this Act.”
(6) Of Section 23:
(a) The following Sub-section (1a) shall be inserted after Sub-
section (1):
"(1a) while filing an application pursuant to Sub-section (1),
one should deposit the excise duty or fine or both, as
it has been accessed or imposed as the case may be.
(b) The words "proviso" shall be deleted contained in Sub-
section (3).
(7) The following Section 25A. Shall be inserted after Section 25:
“25A. Power to frame and issue manual: The Department may
frame and issue necessary manuals, subject to this Act and
the Rules framed under this Act.”
(8) Repealed: Section 19 shall be repealed.
(9) The following Schedule shall be inserted after S ction 26:

35
Schedule
(Relating to Section 3)
Rate of excise duty:
SN Description of product/good or
service
Unit Rate of
excise duty
1. Khudo (Molasses) Per quintal Rs. 30.00
2. Sakkhhar (Gud), black Sajhhar,
Raskat (only in import) Per quintal Rs. 60.00
3. Fruit juices or Light beverages of
mixed juices. Per liter Rs. 2.00
4. Kattha, Pan Masala and similar
other goods with or without nicotine
containing lime Per Kilogram Rs. 185.00
5. Wine containing not more 17 percent
alcohol made from fruits Per liter Rs.75.00
6. Sampen, sherry, mead, perry, Per liter Rs.136.00
7. Wine containing more than 17
percent alcohol, wine, cocktail,
liquors, and fermented. Per liter Rs.136.00
8. Cider/cocktail drinks Per liter Rs.75.00
9. beer Per liter Rs.42.00
10. country beer (Chhyang) Per liter Rs.15.00
11. Denatured spirit, Anhydrous ethanol Per liter Rs.6.00
12. Thinner Per liter Rs.25.00
13. All kinds of alcoholic fluids used as
raw materials of liquors containing
57.38 percent to 80 percent alcohol
by volume Per L.P. liter Rs.80.00

36
14. Rectified spirits, silent Spirits
(E.N.A.) used as raw materials of
liquors containing more than 80
percent alcohol by volume Per liter Rs.25.00
15. Liquors
(a) Less than 40 U.P. strength Per LP liter Rs.320.00
(b) With 40 U.P. strength and more
than that less than 65 U.p.
strength. Per LP liter Rs.195.00
(c) With 65 U.P. strength and more
than that U.P. strength. Per LP liter Rs.70.00
16. All kind of light beverages without
containing alcohol.
Per liter

Rs. 2.00

17. Cigarettes (all kinds of cigarettes
made from tobacco)
(1) In up to 70 mm length
(a) Without filter Per M Rs. 155.00
(b) With filter Per M Rs. 330.00
(2) In more than 70 mm up to 75 mm
length (with filter) Per M Rs. 425.00
(3) In more than 75 mm up to 85 mm
length (with filter) Per M Rs. 565.00
(4) In more than 85 mm length (with
filter) Per M Rs. 750.00
18. All kinds of cigar per stick Rs. 2.60
19. Bidi Per M Rs. 45.00
20. Pipe tobacco Per kilogram Rs. 500.00
21. All kinds of jarda, khaini and Nash
made from tobacco Per kilogram Rs. 185.00
22. Packed raw chewable tobacco Per kilogram Rs. 115.00

37
containing lime
23. All kinds of cements Per metric ton Rs. 105.00
24. All kinds of Polithin (plastic) bags. Per kilogram Rs.15.00
25. All kinds of bricks (except domestic
production) Per thousand Rs. 525.00
26. Motor vehicles
(a) Jeep, car and van (custom
heading 8702 and 8703). Value percent 32 percent
(b) Microbus with capacity of 11-
14 seats (customs heading 8702). Value percent 32 percent
(c) Double cab pick up (customs
heading 8704) . Value percent 32 percent
(d) Three wheeler (auto rickshaw)
(customs heading 8703). Value percent 32 percent
(e) Single cab pick up (customs
heading 8704). Value percent 15 percent
(f) Delivery van (customs heading
8704). Value percent 15 percent
(g) Minibus (with capacity of 15 to
25 seats) ( custom heading 8702) Value percent 4 percent
(h) chassis of Minibus (with capacity
of 15 to 25 seats) (customs heading
8706) Value percent 4 percent
(i) Motor cycle (custom heading
8711) Value percent 4 percent
Note :
(1) Less than 20 microne polithin bags are not permitted to sale or
distribution inside the Nepal.

38
(2) The Department may interpret and specify the harmonized codes
of the products.
Financial Ordinance, 2060 (2003)
Date of Authentication and Publication
2060.4.1(17 July 2003)
Ordinance number 7 of the year 2060
An Ordinance Made to Implement Proposals Relating to Finance of
the Government of Nepal
Preamble: Whereas, it is expedient to levy some charges, taxes, duties, cesses
and fees, continue or alter the existing ones and also to amend the laws in force
relating to revenue administration in order to implement the proposals relating
to finance of the Government of Nepal and at the moment Parliament is not in
session;
Now, therefore, be it enacted by His Majesty the King Gyanendra Bir
Bikram Shah Dev has, in accordance with Articles 72 of Constitution Kingdom
of Nepal, 2047 (1990).
1. Short title and commencement: (1) This Act may be called as the
“Financial Ordinance, 2060 (2003)."
(2) This ordinance shall come into force immediately.
23. Amendment to the Excise Duty Act, 2058 (2002): Of the Excise
Duty Act, 2058(2002):
(1) The following Section 3 shall be substituted for Section 3:
“3. To levy and collect excise duty: (1) In manufacturing or
importing any goods or products set forth in the Schedule,

39
the excise duty set forth in the Schedule shall be evied
and recovered.
Provided that, the excise duty which used in khudo
(molases) or spirit in the product of liquor may be
deducted from the excise duty to be paid on exporting the
ready liquor.
(2) In the event of failure to pay the excise duty
referred to in Sub-section (1) within the time limit, there
shall be charged a delay fee by 0.05 percent on the due
and payable amount per day.
(2) The following Sections 3A. Shall be inserted after Section 3:
“3A. Not to levy excise duty on export from the State of
Nepal: (1) No excise duty shall be levied on goods which
exported by an enterprise or on any goods sold by a
bonded warehouse and duty free shop from Nepal.
(2) For the purposes of Sub-section (1), there shall
be furnished a bank guarantee or cash deposit for the
amount of excise duty leviable while exporting a product
subject to excise duty from the enterprise. The procedures
for the release of such bank guarantee or cash deposit
shall be as prescribed by the Department.
(3) The following Sub-section (3) shall be inserted after Sub-section
(2) of Section 4:
“(3) The Office may, at any time, examine the volume of
alcohol and quality of liquors and other substance to be
exported by obtaining approval. Where the volume of
alcohol is more than one percent or there is a significa t

40
deviation in the quality, the amount of controversy
involved in the revenue leakage as well as additional sum
that is twenty five percent of that amount shall be
recovered.”
(4) Of Section 7:
(a) The words “the price set by also adding the customs duty
to the price fixed” shall be substituted for the words “the
price fixed” contained in Clause (b) of Sub-section (1).
(b) The following Sub-sections (4) and (5) shall be inserted
after Sub-section (3):
“(4) The determination of the rate of recovery of the
production of ethanol, spirit or E.N.A. required to
be obtained from grains, molasses, spirit or E.N.A.
to be used by an industry producing anhydrides,
ethanol, rectified spirit or E.N.A. shall be as
prescribed.
(5) Where it appears that the rate of production is les
than the recovery rate prescribed under Sub-section
(4), it shall be deemed that higher quality liquors
have been produced from such different quantity of
ethanol, rectified spirit or E.N.A.”
(5) Of Section 16:
(a) The following Clause (b) shall be substituted for Clause
(b) of Sub-section (1):
“(b) To produce or import a product subject to excise
duty without obtaining the license,”

41
(b) The following Sub-section (5) shall be inserted after Sub-
section (4):
“(5) Where any person commits any of the following
offences, such person shall be punished with a fine
from Five Thousand Rupees to Fifteen Thousand
Rupees according to the gravity of offence:
(a) To sell or store any product subject to excise
duty without obtaining the license;
(b) To provide any service subject to excise duty
without obtaining the license;
(c) To violate this Act and the Rules framed
under this Act.”
(6) Of Section 23:
(a) The following Sub-section (1a) shall be inserted after Sub-
section (1):
"(1a) while filing an application pursuant to Sub-
section (1), one should deposit the excise duty or fine or
both, as it has been accessed or imposed as the case may
be.
(b) The words "proviso" shall be deleted contained in Sub-
section (3).
(7) The following Section 25A. Shall be inserted after Section 25:
“25A. Power to frame and issue manual: The Department
may frame and issue necessary Manuals, subject to this
Act and the Rules framed under this Act.”

42
(8) Repealed: Section 19 shall be repealed.
(9) The following Schedule shall be inserted after S ction 26:

43
Schedule
(Relating to Section 3)
Rate of excise duty:
SN Description of product/good or
service
Unit Rate of excise
duty
1. Khudo (Molasses) Per quintal Rs. 30.00
2. Sakkhhar (Gud), black Sajhhar, Raskat
(only in import) Per quintal Rs. 60.00
3. Fruit juices or Light beverages of mixed
juices. Per liter Rs. 2.00
4. Kattha, Pan Masala and similar other
goods with or without nicotine
containing lime Per Kilogram Rs. 185.00
5. Wine containing not more 17 percent
alcohol made from fruits Per liter Rs.75.00
6. Sampan, sherry, mead, perry, Per liter Rs.136.00
7. Wine containing more than 17 percent
alcohol, wine, cocktail, liquors, and
fermented. Per liter Rs.136.00
8. Cider/cocktail drinks Per liter Rs.75.00
9. Beer Per liter Rs.42.00
10. Country beer (Chhyang) Per liter Rs.15.00
11. Denatured spirit, Anhydrous ethanol Per liter Rs.6.00
12. Thinner Per liter Rs.25.00
13. All kinds of alcoholic fluids used as raw
materials of liquors containing 57.38
percent to 80 percent alcohol by volume Per L.P. liter Rs.80.00
14. Rectified spirits, silent Spirits (E.N.A.) Per liter Rs.25.00

44
used as raw materials of liquors
containing more than 80 percent alcohol
by volume
15. Liquors
(a) less than 40 U.P. strength Per LP liter Rs.320.00
(b) With 40 U.P. strength and more than
that less than 65 U.P. strength. Per LP liter Rs.195.00
(c) With 65 U.P. strength and more than
that U.P. strength. Per LP liter Rs.70.00
16. All kind of light beverages without
containing alcohol.
Per liter

Rs. 2.00

17. Cigarettes (all kinds of cigarettes made
from tobacco)
(1) In up to 70 mm length
(a) Without filter Per M Rs. 155.00
(b) With filter Per M Rs. 330.00
(2) In more than 70 mm up to 75 mm
length (with filter) Per M Rs. 425.00
(3) In more than 75 mm up to 85 mm
length (with filter) Per M Rs. 565.00
(4) In more than 85 mm length (with
filter) Per M Rs. 750.00
18. All kinds of cigar per stick Rs. 2.60
19. Bidi Per M Rs. 45.00
20. Pipe tobacco Per kilogram Rs. 500.00
21. All kinds of jarda, khaini and Nash
made from tobacco Per kilogram Rs. 185.00
22. Packed raw chewable tobacco
containing lime Per kilogram Rs. 115.00
23. All kinds of cements Per metric ton Rs. 105.00

45
24. All kinds of Polithin (plastic) bags. Per kilogram Rs.15.00
25. All kinds of bricks (except domestic
production) Per thousand Rs. 525.00
26. Motor vehicles
(a) Jeep, car and van (custom heading
8702 and 8703). Value percent 32 percent
(b) Microbus with capacity of 11-14
seats (customs heading 8702). Value percent 32 percent
(c) Double cab pick up (customs heading
8704). Value percent 32 percent
(d) Three wheeler (auto rickshaw)
(customs heading 8703). Value percent 32 percent
(e) Single cab pick up (customs heading
8704). Value percent 15 percent
(f) Delivery van (customs heading 8704). Value percent 15 percent
(g) Minibus (with capacity of 15 to 25
seats) ( custom heading 8702) Value percent 4 percent
(h) chassis of Minibus (with capacity of
15 to 25 seats) (customs heading
8706) Value percent 4 percent
(i) Motor cycle (custom heading 8711) Value percent 4 percent

Note :
(1) Notwithstanding anything contained above in the ratof excise duty,
no excise duty shall be levied on ambulances, corpse carrying
vehicles and battery tempos.
(2) Less than 20 microne polithin bags are not permitted to sale or
distribution inside the Nepal.

46
(3) The Department may interpret and specify the harmonized codes
of the products.
Financial Ordinance, 2061 (2004)
Date of Authentication and Publication
2061.4.1 (16 July 2004)
Ordinance number 3 of the year 2061
An Ordinance Made to Implement Proposals Relating to Finance of
the Government of Nepal
Preamble: Whereas, it is expedient to levy some charges, taxes, duties, cesses
and fees, continue or alter the existing ones and also to amend the laws in force
relating to revenue administration in order to implement the proposals relating
to finance of the Government of Nepal and at the moment Parliament is not in
session;
Now, therefore, be it enacted by His Majesty the King Gyanendra Bir
Bikram Shah Dev has, in accordance with Articles 72 of Constitution Kingdom
of Nepal, 2047(1990).
1. Short title and commencement: (1) This Act may be called as the
“Financial Ordinance, 2061 (2004)."
(2) This ordinance shall come into force immediately.
23. Amendment to the Excise Duty Act, 2058 (2002): Of the Excise
Duty Act, 2058(2002):
(1) The following Clause (j) shall be substituted for Clause (j) Of
Section 2:

47
“(j) "factory price" means the price fixed by adding only the
expenditure incurred in manufacturing a product subject
to excise duty and the profit of the enterprise, excluding
the excise duty or any other tax chargeable on such
product.”
(2) The following Section 3 shall be substituted for Section 3:
“3. To levy and collect excise duty: (1) In manufacturing or
importing any goods or products set forth in the Schedule,
the excise duty set forth in the Schedule shall be evied
and recovered.
(2) The excise duty paid on the raw materials used
in the making of a product subject to excise duty may be
deducted from the excise duty to be paid while exporting
the finished product.
(3) In the event of failure to pay the excise duty
referred to in Sub-section (1) within the time limit, there
shall be charged a delay fee by 0.05 percent on the due
and payable amount per day.
(3) The following Sections 3A. and 3B. Shall be inserted after
Section 3:
“3A. Not to levy excise duty on export from the State of
Nepal: (1) No excise duty shall be levied on goods
exported by an enterprise from Nepal.
(2) For the purposes of Sub-section (1), there shall
be furnished a bank guarantee or cash deposit for the
amount of excise duty leviable while exporting a product
subject to excise duty from the enterprise.

48
(3) The procedures for the release or refund of the
bank guarantee or cash deposit as referred to in Sub-
section (2) shall be as prescribed by the Department.
3B. Not to levy excise duty on sale by duty free shop: (1)
No excise duty shall be levied on any goods sold
by a bonded warehouse and duty free shop.
(2) For the purposes of Sub-section (1), there shall
be furnished a bank guarantee or cash deposit for the
amount of excise duty leviable while purchasing a product
subject to excise duty.
(3) The procedures for the release or refund of bank
guarantee or the cash deposit as referred to in Sub-section
(2) shall be as prescribed by the Department.
(4) The following Sub-section (3) shall be inserted after Sub-section
(2) of Section 4:
“(3) The Office may, at any time, examine the volume of
alcohol and quality of liquors and other substance to be
exported by obtaining approval. Where the volume of
alcohol is more than one percent or there is a significa t
deviation in the quality, the amount of controversy
involved in the revenue leakage as well as additional sum
that is Twenty Five percent of that amount shall be
recovered.”
(5) Of Section 7:
(a) The following Sub-clause (1) shall be substituted for Sub-
clause (1) of Clause (a) Of Sub-section (1):

49
"(1) the price which a manufacturer determines at the
time of selling a product subject to excise duty, or”
(b) The words “the price set by also adding the custom duty
to the price fixed” shall be substituted for the words “the
price fixed” contained in Clause (b) of Sub-section (1) .
(c) The following Sub-sections (4) and (5) shall be inserted
after Sub-section (3):
“(4) The determination of the rate of recovery of the
production of ethanol, spirit or E.N.A. required to
be obtained from grains, molasses, spirit or E.N.A.
to be used by an industry producing anhydrides,
ethanol, rectified spirit or E.N.A. shall be as
prescribed.
(5) Where it appears that the rate of production is les
than the recovery rate prescribed under Sub-section
(4), it shall be deemed that higher quality liquors
have been produced from such different quantity of
ethanol, rectified spirit or E.N.A.”
(6) Of Section 16:
(a) The following Clause (b) shall be substituted for Clause
(b) of Sub-section (1):
“(b) To produce or import a product subject to excise
duty without obtaining the license,”
(b) The following Sub-section (5) shall be inserted after Sub-
section (4):

50
“(5) Where any person commits any of the following
offences, such person shall be punished with a fine
from Five Thousand Rupees to Fifteen Thousand
Rupees according to the gravity of offence:
(a) To sell or store any product subject to excise
duty without obtaining the license;
(b) To provide any service subject to excise duty
without obtaining the license;
(c) To violate this Act and the Rules framed
under this Act.”
(7) The words "proviso" shall be deleted contained in Sub-section
(3) of Section 23:
(8) The following Section 25A. shall be inserted after Section 25:
“25A. Power to frame and issue manual: The Department may
frame and issue necessary Manuals, subject to this Act and
the Rules framed under this Act.”
(9) Section 19 shall be repealed.
(10) The following Schedule shall be inserted after S ction 26:

51
Schedule
(Relating to Section 3)
Rate of excise duty:
SN Description of product/good or
service
Unit Rate of excise
duty
1. Khudo (Molasses) Per quintal Rs. 35.00
2. Sakkhhar (Gud), black Sajhhar, Raskat
(only in import) Per quintal Rs. 65.00
3. Fruit juices or Light beverages of
mixed juices. Per liter Rs. 2.00
4. Katha, Pan Masala and similar other
goods with or without nicotine
containing lime Per Kilogram Rs. 200.00
5. Wine containing not more 17 percent
alcohol made from fruits Per liter Rs.80.00
6. Champagne, sherry, mead, Perry, Per liter Rs.140.00
7. Wine containing more than 17 percent
alcohol, wine, cocktail, liquors, and
fermented. Per liter Rs.140.00
8. Cider/cocktail drinks Per liter Rs.80.00
9. Beer Per liter Rs.45.00
10. Country beer (Chhyang) Per liter Rs.15.00
11. Denatured spirit Per liter Rs.10.00
12. Thinner Per liter Rs.30.00
13. Anhydrous ethanol Per liter Rs.6.00
14. All kinds of alcoholic fluids used as raw
materials of liquors containing 57.38
percent to 80 percent alcohol by Per L.P. liter Rs.100 00

52
volume
15. Rectified spirits, silent Spirits (E.N.A.)
used as raw materials of liquors
containing more than 80 percent
alcohol by volume Per liter Rs.30.00
16. Liquors
(a) less than 40 U.P. strength Per LP liter Rs.340.00
(b) With 40 U.P. strength and more
than that less than 65 U.P. strength. Per LP liter Rs.200.00
(c) With 65 U.P. strength and more
than that U.P. strength. Per LP liter Rs.75.00
17. All kind of light beverages without
containing alcohol.
Per liter

Rs. 2.00

18. Cigarettes (all kinds of cigarettes made
from tobacco)
(1) In up to 70 mm length
(a) Without filter Per M Rs. 160.00
(b) With filter Per M Rs. 340.00
(2) In more than 70 mm up to 75 mm
length (with filter) Per M Rs. 440.00
(3) In more than 75 mm up to 85 mm
length (with filter) Per M Rs. 575.00
(4) In more than 85 mm length (with
filter) Per M Rs. 770.00
19. All kinds of cigar per stick Rs. 2.60
20. Bidi Per M Rs. 45.00
21. Pipe tobacco Per kilogram Rs. 500.00
22. All kinds of jarda, khaini and Nash
made from tobacco Per kilogram Rs. 190.00
23. Packed raw chewable tobacco Per kilogram Rs. 120.00

53
containing lime
24. All kinds of cements Per metric ton Rs. 105.00
25. All kinds of Polithin bag (shopping
bag). Per kilogram Rs.15.00
26. All kinds of soil (ceramic) bricks
(except domestic production) Per thousand Rs. 525.00
27. Motor vehicles
(a) Jeep, car and van (custom heading
8702 and 8703) and their chassis
(custom heading 8706) Value percent 32 percent
(b) Microbus with capacity of 11-14
seats (customs heading 8702) and
their chassis (customs heading
8706) Value percent 32 percent
(c) Double cab pick up (customs
heading 8704) and their chassis
(customs heading 8706) Value percent 32 percent
(d) Three wheeler (auto rickshaw)
(customs heading 8703) and their
chassis thereof (customs heading
8706) Value percent 32 percent
(e) Single cab pick up (customs heading
8704) and their chassis (customs
heading 8706) Value percent 15 percent
(f) Delivery van (customs heading 8704)
and their chassis (customs heading
8706) Value percent 15 percent
(g) Minibus (with capacity of 15 to 25
seats) ( custom heading 8702) their
chassis (customs heading 8706) Value percent 4 percent

54
(h) Motor cycle (custom heading 8711) Value percent 4 percent


55
Note :
(1) Notwithstanding anything contained above in the rate of excise
duty, no excise duty shall be levied on ambulances, corpse
carrying vehicles and battery tempos.
(2) Less than 20 microne polithin bags are not permitted to sale or
distribution inside the Nepal.
(3) The Department may interpret and specify the harmonized codes
of the products.


56
Financial Ordinance, 2061 (2004)
Date of Authentication and Publication
2061.10.1(15 January 2004)
Ordinance number 22 of the year 2061
An Ordinance Made to Implement Proposals Relating to Finance of
the Government of Nepal
Preamble: Whereas, it is expedient to levy some charges, taxes, duties, cesses
and fees, continue or alter the existing ones and also to amend the laws in force
relating to revenue administration in order to implement the proposals relating
to finance of the Government of Nepal and at the moment Parliament is not in
session;
Now, therefore, be it enacted by His Majesty the King Gyanendra Bir
Bikram Shah Dev has, in accordance with Articles 72 of Constitution
Kingdom of Nepal, 2047 (1990).
1. Short title and commencement: (1) This Act may be called as the
“Financial Ordinance, 2061 (2004)."
(2) This ordinance shall come into force immediately.
23. Amendment to the Excise Duty Act, 2058 (2002): Of the Excise
Duty Act, 2058(2002):
(1) The following Clause (j) shall be substituted for Clause (j) Of
Section 2:
“(j) "factory price" means the price fixed by adding only the
expenditure incurred in manufacturing a product subject
to excise duty and the profit of the enterprise, excluding

57
the excise duty or any other tax chargeable on such
product.”
(2) The following Section 3 shall be substituted for Section 3:
“3. To levy and collect excise duty: (1) In manufacturing or
importing any goods or products set forth in the Schedule,
the excise duty set forth in the Schedule shall be evied
and recovered.
(2) The excise duty paid on the raw materials used
in the making of a product subject to excise duty may be
deducted from the excise duty to be paid while exporting
the finished product.
(3) In the event of failure to pay the excise duty
referred to in Sub-section (1) within the time limit, there
shall be charged a delay fee by 0.05 percent on the due
and payable amount per day.
(3) The following Sections 3A. and 3B. Shall be inserted after
Section 3:
“3A. Not to levy excise duty on export from the State of
Nepal: (1) No excise duty shall be levied on a product
exported by an enterprise from the State of Nepal.
(2) For the purposes of Sub-section (1), there shall
be furnished a bank guarantee or cash deposit for the
amount of excise duty leviable while exporting a product
subject to excise duty from the enterprise.

58
(3) The procedures for the release or refund of the
bank guarantee or cash deposit as referred to in Sub-
section (2) shall be as prescribed by the Department.
3B. Not to levy excise duty on sale by duty free shop: (1)
No excise duty shall be levied on any product sold
by a bonded warehouse and duty free shop.
(2) For the purposes of Sub-section (1), there shall
be furnished a bank guarantee or cash deposit for the
amount of excise duty leviable while purchasing a product
subject to excise duty.
(3) The procedures for the release or refund of bank
guarantee or the cash deposit as referred to in Sub-section
(2) shall be as prescribed by the Department.
(4) The following Sub-section (3) shall be inserted after Sub-section
(2) of Section 4:
“(3) The Office may, at any time, examine the volume of
alcohol and quality of liquors and other substance to be
exported by obtaining approval. Where the volume of
alcohol is more than one percent or there is a significa t
deviation in the quality, the amount of controversy
involved in the revenue leakage as well as additional sum
that is twenty five percent of that amount shall be
recovered.”
(5) Of Section 7:
(a) The following Sub-clause (1) shall be substituted for Sub-
clause (1) of Clause (a) Of Sub-section (1):

59
"(1) the price which a manufacturer determines at the
time of selling a product subject to excise duty, or”
(b) The words “the price set by also adding the custom duty
to the price fixed” shall be substituted for the words “the
price fixed” contained in Clause (b) of Sub-section (1) .
(c) The following Sub-sections (4) and (5) shall be inserted
after Sub-section (3):
“(4) The determination of the rate of recovery of the
production of ethanol, spirit or E.N.A. required to
be obtained from grains, molasses, spirit or E.N.A.
to be used by an industry producing anhydrides,
ethanol, rectified spirit or E.N.A. shall be as
prescribed.
(5) Where it appears that the rate of production is les
than the recovery rate prescribed under Sub-section
(4), it shall be deemed that higher quality liquors
have been produced from such different quantity of
ethanol, rectified spirit or E.N.A.”
(6) Of Section 16:
(a) The following Clause (b) shall be substituted for Clause
(b) of Sub-section (1):
“(b) To produce or import a product subject to excise
duty without obtaining the license,”
(b) The following Sub-section (5) shall be inserted after Sub-
section (4):

60
“(5) Where any person commits any of the following
offences, such person shall be punished with a fine
from Five Thousand Rupees to Fifteen Thousand
Rupees according to the gravity of offence:
(a) To sell or store any product subject to excise
duty without obtaining the license;
(b) To provide any service subject to excise duty
without obtaining the license;
(c) To violate this Act and the Rules framed
under this Act.”
(7) The following Section 25A. shall be inserted after Section 25:
“25A. Power to frame and issue manual: The Department may
frame and issue necessary manuals, subject to this Act and
the Rules framed under this Act.”
(8) The following Schedule shall be inserted after S ction 26:





61
Schedule
(Relating to Section 3)
Rate of excise duty:
SN Description of product/good or
service
Unit Rate of excise
duty
1. Khudo (Molasses) Per quintal Rs. 35.00
2. Sakkhhar (Gud), black Sajhhar, Raskat
(only in import) Per quintal Rs. 65.00
3. Fruit juices or Light beverages of mixed
juices. Per liter Rs. 2.00
4. Kattha, Pan Masala and similar other
goods with or without nicotine
containing lime Per Kilogram Rs. 200.00
5. Wine containing not more 17 percent
alcohol made from fruits Per liter Rs.80.00
6. sampan, sherry, mead, perry, Per liter Rs.140.00
7. Wine containing more than 17 percent
alcohol, wine, cocktail, liquors, and
fermented. Per liter Rs.140.00
8. Cider/cocktail drinks Per liter Rs.80.00
9. Beer Per liter Rs.45.00
10. Country beer (Chhyang) Per liter Rs.15.00
11. Denatured spirit Per liter Rs.10.00
12. Thinner Per liter Rs.30.00
13. Anhydrous ethanol Per liter Rs.6.00
14. All kinds of alcoholic fluids used as raw
materials of liquors containing 57.38
percent to 80 percent alcohol by volume Per L.P. liter Rs.100.00
15. Rectified spirits, silent Spirits (E.N.A.) Per liter Rs.30.00

62
used as raw materials of liquors
containing more than 80 percent alcohol
by volume
16. Liquors
(a) Less than 40 U.P. strength Per LP liter Rs.340.00
(b) With 40 U.P. strength and more than
that and less than 65 U.P. strength. Per LP liter Rs.200.00
(c) With 65 U.P. strength and more than
that U.P. strength. Per LP liter Rs.75.00
17. All kind of light beverages without
containing alcohol.
Per liter

Rs. 2.00

18. Cigarettes (all kinds of cigarettes made
from tobacco)
(1) In up to 70 mm length
(a) Without filter Per M Rs. 160.00
(b) With filter Per M Rs. 340.00
(2) In more than 70 mm up to 75 mm
length (with filter) Per M Rs. 440.00
(3) In more than 75 mm up to 85 mm
length (with filter) Per M Rs. 575.00
(4) In more than 85 mm length (with filter) Per M Rs. 770.00
19. All kinds of cigar per stick Rs. 2.60
20. Bidi Per M Rs. 45.00
21. Pipe tobacco Per kilogram Rs. 500.00
22. All kinds of jarda, khaini and Nash
made from tobacco Per kilogram Rs. 190.00
23. Packed raw chewable tobacco
containing lime Per kilogram Rs. 120.00
24. All kinds of cements Per metric ton Rs. 105.00
25. All kinds of soil (ceramic) bricks (except Per thousand Rs. 525.00

63
domestic production)
26. Motor vehicles
(a) Jeep, car and van (custom heading
8702 and 8703) and their chassis
(custom heading 8706) Value percent 32 percent
(b) Microbus with capacity of 11-14
seats (customs heading 8702) and
their chassis (customs heading 8706) Value percent 32 percent
(c) Double cab pick up (customs heading
8704) and their chassis (customs
heading 8706) Value percent 32 percent
(d) Three wheeler (auto rickshaw)
(customs heading 8703) and their
chassis thereof (customs heading
8706) Value percent 32 percent
(e) Single cab pick up (customs heading
8704) and their chassis (customs
heading 8706) Value percent 15 percent
(f) Delivery van (customs heading 8704)
and their chassis (customs heading
8706) Value percent 15 percent
(g) Minibus (with capacity of 15 to 25
seats) (custom heading 8702) their
chassis (customs heading 8706) Value percent 4 percent
(h) Motor cycle (custom heading 8711) Value percent 4 percent
Note :
(1) Notwithstanding anything contained above in the rate of excise duty, no
excise duty shall be levied on ambulances, corpse carrying vehicles and
battery tempos.

64
(2) The Department may interpret and specify the harmonized codes of the
products/
Financial Ordinance, 2062 (2005)
Date of Authentication and Publication
2062.4.1(16, July 2005)
Ordinance number 12 of the year 2062
An Ordinance Made to Implement Proposals Relating to Finance of
the Government of Nepal
Preamble: Whereas, it is expedient to levy some charges, taxes, duties, cesses
and fees, continue or alter the existing ones and also to amend the laws in force
relating to revenue administration in order to implement the proposals relating
to finance of the Government of Nepal and at the moment Parliament is not in
session;
Now, therefore, be it enacted by His Majesty the King Gyanendra Bir
Bikram Shah Dev has, in accordance with Article 72 of Constitution Kingdom
of Nepal, 2047(1990).
1. Short title and commencement: (1) This Ordinance may be called
as the "Financial Ordinance, 2062 (2005)."
(2) This ordinance shall come into force immediately.
25. Amendment to the Excise Duty Act, 2058 (2002): Of the Excise
Duty Act, 2058(2002):
(1) The following Clause (j) shall be substituted for Clause (j) Of
Section 2:

65
“(j) "factory price" means the price fixed by adding only the
expenditure incurred in manufacturing a product subject
to excise duty and the profit of the enterprise, excluding
the excise duty or any other tax chargeable on such
product.”
(2) The following Section 3 shall be substituted for Section 3:
“3. To levy and collect excise duty: (1) In manufacturing or
importing any goods or products set forth in the Schedule,
the excise duty set forth in the Schedule shall be evied
and recovered.
(2) The excise duty paid on the raw materials used
in the making of a product subject to excise duty may be
deducted from the excise duty to be paid while exporting
the finished product.
(3) In the event of failure to pay the excise duty
referred to in Sub-section (1) within the time limit, there
shall be charged a delay fee by 0.05 percent on the due
and payable amount per day.
(3) The following Sections 3A. and 3B. Shall be inserted after
Section 3:
“3A. Not to levy excise duty on export from the State of
Nepal: (1) No excise duty shall be levied on a product
exported by an enterprise from the State of Nepal.
(2) For the purposes of Sub-section (1), there shall
be furnished a bank guarantee or cash deposit for the
amount of excise duty leviable while exporting a product
subject to excise duty from the enterprise.

66
(3) The procedures for the release or refund of the
bank guarantee or cash deposit as referred to in Sub-
section (2) shall be as prescribed by the Department.
3B. Not to levy excise duty on sale by duty free shop: (1)
No excise duty shall be levied on any product sold
by a bonded warehouse and duty free shop.
(2) For the purposes of Sub-section (1), there shall
be furnished a bank guarantee or cash deposit for the
amount of excise duty leviable while purchasing a product
subject to excise duty.
(3) The procedures for the release or refund of bank
guarantee or the cash deposit as referred to in Sub-section
(2) shall be as prescribed by the Department.
(4) The following Sub-section (3) shall be inserted after Sub-section
(2) of Section 4:
“(3) The Office may, at any time, examine the volume of
alcohol and quality of liquors and other substance to be
exported by obtaining approval. Where the volume of
alcohol is more than one percent or there is a significa t
deviation in the quality, the amount of controversy
involved in the revenue leakage as well as additional sum
that is Twenty Five percent of that amount shall be
recovered.”
(5) Of Section 7:
(a) The following Sub-clause (1) shall be substituted for Sub-
clause (1) of Clause (a) Of Sub-section (1):

67
"(1) the price which a manufacturer determines at the
time of selling a product subject to excise duty, or”
(b) The words “the price set by also adding the custom duty
to the price fixed” shall be substituted for the words “the
price fixed” contained in Clause (b) of Sub-section (1) .
(c) The following Sub-sections (4) and (5) shall be inserted
after Sub-section (3):
“(4) The determination of the rate of recovery of the
production of ethanol, spirit or E.N.A. required to
be obtained from grains, molasses, spirit or E.N.A.
to be used by an industry producing anhydrides,
ethanol, rectified spirit or E.N.A. shall be as
prescribed.
(5) Where it appears that the rate of production is les
than the recovery rate prescribed under Sub-section
(4), it shall be deemed that higher quality liquors
have been produced from such different quantity of
ethanol, rectified spirit or E.N.A.”
(6) Of Section 16:
(a) The following Clause (b) shall be substituted for Clause
(b) of Sub-section (1):
“(b) To produce or import a product subject to excise
duty without obtaining the license,”
(b) The following Sub-section (5) shall be inserted after Sub-
section (4):

68
“(5) Where any person commits any of the following
offences, such person shall be punished with a fine
from five thousand rupees to fifteen thousand
rupees according to the gravity of offence:
(a) To sell or store any product subject to excise
duty without obtaining the license;
(b) To provide any service subject to excise duty
without obtaining the license;
(c) To violate this Act and the Rules
framed under this Act.”
(7) The following Section 25A. Shall be inserted after Section 25:
“25A. Power to frame and issue manual: The Department may
frame and issue necessary Manuals, subject to this Act and
the Rules framed under this Act.”
(8) The following Schedule shall be inserted after S ction 26:



69
Schedule
(Relating to Section 3)
Rate of excise duty:
SN Description of product/good or
service
Unit Rate of excise
duty
1. Khudo (Molasses) Per quintal Rs. 35.00
2. Sakkhhar (Gud), black Sajhhar, Raskat
(only in import) Per quintal Rs. 65.00
3. Fruit juices or Light beverages of
mixed juices. Per liter Rs. 1.00
4. Katha, Pan Masala and similar other
goods with or without nicotine
containing lime Per Kilogram Rs. 200.00
5. Wine containing not more 17 percent
alcohol made from fruits Per liter Rs.80.00
6. Champagne, sherry, mead, perry, Per liter Rs.140.00
7. Wine containing more than 17 percent
alcohol, wine, cocktail, liquors, and
fermented. Per liter Rs.140.00
8. Cider/cocktail drinks Per liter Rs.80.00
9. Beer Per liter Rs.45.00
10. Country beer (Chhyang) Per liter Rs.15.00
11. Denatured spirit Per liter Rs.10.00
12. Thinner Per liter Rs.30.00
13. Anhydrous ethanol Per liter Rs.6.00
14. All kinds of alcoholic fluids used as raw
materials of liquors containing 57.38
percent to 80 percent alcohol by Per L.P. liter Rs.100 00

70
volume
15. Rectified spirits, silent Spirits (E.N.A.)
used as raw materials of liquors
containing more than 80 percent
alcohol by volume Per liter Rs.30.00
16. Liquors
(a) less than 40 U.P. strength Per LP liter Rs.340.00
(b) With 40 U.P. strength and more
than that and less than 65 U.P.
strength. Per LP liter Rs.200.00
(c) With 65 U.P. strength and more
than that U.P. strength. Per LP liter Rs.75.00
17. All kind of light beverages without
containing alcohol.
Per liter

Rs. 1.00

18. Cigarettes (all kinds of cigarettes made
from tobacco)
(1) In up to 70 mm length
(a) Without filter Per M Rs. 160.00
(b) With filter Per M Rs. 340.00
(2) In more than 70 mm up to 75 mm
length (with filter) Per M Rs. 440.00
(3) In more than 75 mm up to 85 mm
length (with filter) Per M Rs. 575.00
(4) In more than 85 mm length (with
filter) Per M Rs. 770.00
19. All kinds of cigar per stick Rs. 2.60
20. Bidi Per M Rs. 45.00
21. Pipe tobacco Per kilogram Rs. 500.00
22. All kinds of jarda, khaini and Nash
made from tobacco Per kilogram Rs. 190.00

71
23. Packed raw chewable tobacco
containing lime Per kilogram Rs. 120.00
24. All kinds of cements Per metric ton Rs. 105.00
25. All kinds of soil (ceramic) bricks
(except domestic production) Per thousand Rs. 525.00
26. Motor vehicles
(a) Jeep, car and van (custom heading
8702 and 8703) and their chassis
(custom heading 8706) Value percent 32 percent
(b) Microbus with capacity of 11-14
seats (customs heading 8702) and
their chassis (customs heading
8706) Value percent 32 percent
(c) Double cab pick up (customs
heading 8704) and their chassis
(customs heading 8706) Value percent 32 percent
(d) Three wheeler (auto rickshaw)
(customs heading 8703) and their
chassis thereof (customs heading
8706) Value percent 32 percent
(e) Single cab pick up (customs heading
8704) and their chassis (customs
heading 8706) Value percent 15 percent
(f) Delivery van (customs heading 8704)
and their chassis (customs heading
8706) Value percent 15 percent
(g) Minibus (with capacity of 15 to 25
seats) ( custom heading 8702) their
chassis (customs heading 8706) Value percent 4 percent
(h) Motor cycle (custom heading 8711) Value percent 4 percent

72


73
Note :
(1) Notwithstanding anything contained above in the rate of excise
duty, no excise duty shall be levied on ambulances, corpse
carrying vehicles and battery tempos.
(2) The Department may interpret and specify the harmonized codes
of the products/goods on which excise duty is leviable.

74
Financial Ordinance, 2062 (2005)
Date of Authentication and Publication
2062.10.1(14 Jan. 2005)
Ordinance Number 49 of the year 2062
An Ordinance Made to Implement Proposals Relating to Finance of
the Government of Nepal
Preamble: Whereas, it is expedient to levy some charges, taxes, duties, cesses
and fees, continue or alter the existing ones and also to amend the laws in force
relating to revenue administration in order to implement the proposals relating
to finance of the Government of Nepal and at the moment Parliament is not in
session;
Now, therefore, be it enacted by His Majesty the King Gyanendra Bir
Bikram Shah Dev has, in accordance with Article 72 of Constitution Kingdom
of Nepal, 2047 (1990).
1. Short title and commencement: (1) This Ordinance may be called as
the “Financial Ordinance, 2062 (2005)."
(2) This ordinance shall come into force immediately.
25. Amendment to the Excise Duty Act, 2058 (2002): Of the Excise
Duty Act, 2058(2002):
(1) The following Clause (j) shall be substituted for Clause (j) Of
Section 2:
“(j) "factory price" means the price fixed by adding only the
expenditure incurred in manufacturing a product subject
to excise duty and the profit of the enterprise, excluding

75
the excise duty or any other tax chargeable on such
product.”
(2) The following Section 3 shall be substituted for Section 3:
“3. To levy and collect excise duty: (1) In manufacturing or
importing any goods or products set forth in the Schedule
or selling services set forth in the Schedule, the excise
duty set forth in the Schedule shall be levied and
recovered .
Provided that, the excise duty paid on the purchase
or import of any product or service subject to excise duty
may be deducted from the excise duty to be paid while
selling such product or service.
(2) The excise duty paid on the raw materials used
in the making of a product subject to excise duty may be
deducted from the excise duty to be paid while exporting
the finished product.
(3) In the event of failure to pay the excise duty
referred to in Sub-section (1) within the time limit, there
shall be charged a delay fee by 0.05 percent on the due
and payable amount per day.
(3) The following Sections 3A. and 3B. Shall be inserted after
Section 3:
“3A. Not to levy excise duty on export from the State of
Nepal: (1) No excise duty shall be levied on a product
exported by an enterprise from the State of Nepal.

76
(2) For the purposes of Sub-section (1), there shall
be furnished a bank guarantee or cash deposit for the
amount of excise duty leviable while exporting a product
subject to excise duty from the enterprise.
(3) The procedures for the release or refund of the
bank guarantee or cash deposit as referred to in Sub-
section (2) shall be as prescribed by the Department.
3B. Not to levy excise duty on sale by duty free shop: (1)
No excise duty shall be levied on any product sold
by a bonded warehouse and duty free shop.
(2) For the purposes of Sub-section (1), there shall
be furnished a bank guarantee or cash deposit for the
amount of excise duty leviable while purchasing a product
subject to excise duty.
(3) The procedures for the release or refund of bank
guarantee or the cash deposit as referred to in Sub-section
(2) shall be as prescribed by the Department.
(4) The following Sub-section (3) shall be inserted after Sub-section
(2) of Section 4:
“(3) The Office may, at any time, examine the volume of
alcohol and quality of liquors and other substance to be
exported by obtaining approval. Where the volume of
alcohol is more than one percent or there is a significa t
deviation in the quality, the amount of controversy
involved in the revenue leakage as well as additional sum
that is Twenty Five percent of that amount shall be
recovered.”

77
(5) Of Section 7:
(a) The following Sub-clause (1) shall be substituted for Sub-
clause (1) of Clause (a) Of Sub-section (1):
"(1) the price which a manufacturer determines at the
time of selling a product subject to excise duty, or”
(b) The words “the price set by also adding the custom duty
to the price fixed” shall be substituted for the words “the
price fixed” contained in Clause (b) of Sub-section (1) .
(c) The following Sub-sections (4) and (5) shall be inserted
after Sub-section (3):
“(4) The determination of the rate of recovery of the
production of ethanol, spirit or E.N.A. required to
be obtained from grains, molasses, spirit or E.N.A.
to be used by an industry producing anhydrides,
ethanol, rectified spirit or E.N.A. shall be as
prescribed.
(5) Where it appears that the rate of production is les
than the recovery rate prescribed under Sub-section
(4), it shall be deemed that higher quality liquors
have been produced from such different quantity of
ethanol, rectified spirit or E.N.A.”
(6) The following proviso shall be inserted to Clause (d) of Sub-
section (3) of Section 12:
“Provided that, such suspension shall not exceed seven
days; and decision shall be made no later than sixty days after the
making of such suspension.”

78
(7) Of Section 16:
(a) The following Clause (b) shall be substituted for Clause
(b) of Sub-section (1):
“(b) To produce or import a product subject to excise
duty without obtaining the license,”
(b) The following Sub-section (5) shall be inserted after Sub-
section (4):
“(5) Where any person commits any of the following
offences, such person shall be punished with a fine
from five thousand rupees to fifteen thousand
rupees according to the gravity of offence:
(a) To sell or store any product subject to excise
duty without obtaining the license;
(b) To provide any service subject to excise duty
without obtaining the license;
(c) To violate this Act and the Rules framed
under this Act.”
(8) The following Section 25A. shall be inserted after Section 25:
“25A. Power to frame and issue manual: The Department may
frame and issue necessary manuals, subject to this Act and
the Rules framed under this Act.”
(9) The following Schedule shall be inserted after S ction 26:

79
Schedule
(Relating to Section 3)
Rate of excise duty:
SN Description of product/good or service Unit Rate of excise
duty
1. Khudo (Molasses) Per quintal Rs. 35.00
2. Sakkhhar (Gud), black Sajhhar, Raskat
(only in import) Per quintal Rs. 65.00
3. Fruit juices or Light beverages of mixed
juices. Per liter Rs. 1.00
4. Pan Masala and similar other goods with
or without nicotine containing lime Per Kilogram Rs. 200.00
5. wine containing not more than 12 percent
alcohol, made from Chutro, apple or
Aishalu Per liter Rs.45.00
6. Wine containing not more 17 percent
alcohol made from fruits Per liter Rs.80.00
7. Sampan, sherry, mead, perry, Per liter Rs.140.00
8. Wine containing more than 17 percent
alcohol, wine, cocktail, liquors, and
fermented. Per liter Rs.140.00
9 Cider/cocktail drinks Per liter Rs.80.00
10. Beer Per liter Rs.45.00
11 Country beer (Chhyang) Per liter Rs.15.00
12. Denatured spirit Per liter Rs.10.00
13. Thinner, solvent (Heading of custom 3814) Per lit Rs.15.00
14. Anhydrous ethanol Per liter Rs.6.00
15. All kinds of alcoholic fluids used as raw Per L.P. liter Rs.100.00

80
materials of liquors containing 57.38
percent to 80 percent alcohol by volume
16. Rectified spirits, silent Spirits (E.N.A.)
used as raw materials of liquors containing
more than 80 percent alcohol by volume Per liter Rs.30.00
17. Liquors
(a) With 15 U.P. strength Per LP liter Rs.400.00
(b) With 25 U.P. strength Per LP liter Rs.350.00
(c) With 30 U.P. strength Per LP liter Rs.350.00
(d) With 40 U.P. strength Per LP liter Rs.200.00
(e) With 50 U.P. strength Per LP liter Rs.75.00
(f) With 70 U.P. strength Per LP liter Rs.10.00
Provided that, packing the bottle of one
enterprise which shall not be packed in
another enterprise.
18. Light beverages containing less than 1
percent alcohol. Per LP liter Rs.3.00
19. All kind of light beverages without
containing alcohol.
Per liter

Rs. 1.00

20. Cigarettes (all kinds of cigarettes made
from tobacco)
(1) In up to 70 mm length
(a) Without filter Per M Rs. 160.00
(b) With filter Per M Rs. 340.00
(2) In more than 70 mm up to 75 mm
length (with filter) Per M Rs. 440.00
(3) In more than 75 mm up to 85 mm
length (with filter) Per M Rs. 575.00
(4) In more than 85 mm length (with filter) Per M Rs. 770.00
21. All kinds of cigar per stick Rs. 2.60

81
22. Bidi Per M Rs. 45.00
23 Pipe tobacco Per kilogram Rs. 500.00
24. All kinds of jarda, khaini and Nash made
from tobacco Per kilogram Rs. 190.00
25. Packed raw chewable tobacco containing
lime Per kilogram Rs. 120.00
26. All kinds of cements Per metric
ton Rs. 105.00
27. All kinds of soil (ceramic) bricks (except
domestic production) Per thousand Rs. 525.00
28. Motor vehicles
(a) Jeep, car and van (custom heading 8702
and 8703) and their chassis (custom
heading 8706)
Value
percent 32 percent
(b) Microbus with capacity of 11-14 seats
(customs heading 8702) and their
chassis (customs heading 8706)
Value
percent 32 percent
(c) Double cab pick up (customs heading
8704) and their chassis (customs
heading 8706)
Value
percent 32 percent
(d) Three wheeler (auto rickshaw) (customs
heading 8703) and their chassis thereof
(customs heading 8706)
Value
percent 32 percent
(e) Single cab pick up (customs heading
8704) and their chassis (customs
heading 8706)
Value
percent 15 percent
(f) Delivery van (customs heading 8704)
and their chassis (customs heading
8706)
Value
percent 15 percent
(g) Minibus (with capacity of 15 to 25 Value 4 perc nt

82
seats) (custom heading 8702) their
chassis (customs heading 8706)
percent
(h) Motor cycle (custom heading 8711) Value
percent 4 percent
29. Heath services which provides by
Government of Nepal or other health
services except provides through the
Community Hospitals.
Value
percent 5 percent
30. Invoice which is issued by person who
export man power to the foreign country.
Value
percent 2 percent

Note :
(1) Notwithstanding anything contained above in the rate of excise
duty, no excise duty shall be levied on ambulances, corpse
carrying vehicles and battery tempos.
(2) The Department may interpret and specify the harmonized codes
of the products/goods on which excise duty is leviable.

83
Financial Act, 2063 (2006)
Date of Authentication and publication
2063.7.20 (6 Nov. 2006)
Act number 12 of the year 2063 (2006)
An Act Made to Implement Proposals Relating to Finance of the
Government of Nepal
Preamble: Whereas, it is expedient to levy some charges, taxes, duties, cesses
and fees, continue or alter the existing ones and also to amend the laws in force
relating to revenue administration in order to implement the proposals relating
to finance of the Government of Nepal;
Now, therefore, be it enacted by the House of Representatives in the
First Year of the issuance of the Proclamation of the House of Representatives,
2063 (2006).
1. Short title and commencement: (1) This Act may be called as the
“Financial Act, 2063 (2006)."
(2) Sections 1, 2, 3, 4, 5, 9 and 18 of this Act shall be deemed to
have come into force on 28 Ashad 2063 (12 July 2006) and the other
Sections on 1 Shrawan 2063 (17 July 2006).
29. Amendment to the Excise Duty Act, 2058 (2002): Of the Excise
Duty Act, 2058 (2002):
(1) Of Section 2:
(a) The following Clause (j) shall be substituted for Clause (j):

84
“(j) "factory price" means the price fixed by adding only
the expenditure incurred in manufacturing a
product subject to production cost and the profit
of the enterprise, excluding the excise duty or any
other tax chargeable on such product.”
(b) The following Clause (g) shall be substituted for Clause
(g):
“(g) "Production" means the manufacturing, making or
preparing a product subject to excise duty, and this
expression also includes re-packaging.”
(c) The following Clause (h1) shall be inserted after Clause
(h):
“(h1) “Tobacco product” means tobacco or cigarette
containing mixtures of tobacco substance, pan
parag, khaini or similar substance which is chewed
or put in mouth and this expression also includes
bidi, cigar etc.”
(d) The following Clauses (q), (r), (s), (t), (u) and (v) shall be
inserted after Clause (p):
(q) "liquors" means any alcoholic substance prepard
by fermenting any grains, fruits or any other
stratchful substance or by other method, which has
an alcoholic strength by volume of more than o.5
percent, and this expression includes liquors, spirit,
country liquor (chhang), whisky, rum, gin, brandy,
vodka, beer, wine, sherry, cider, perry, mid, malt,

85
industrial alcohol, rectified spirit, ENA and heads
spirit.
(r) “ready-made liquors” means all kinds of alcoholic
fluids prepared from mixtures with alcoholic
strength by volume of less than 57.38 percent.
(s) “L.P. means the strength of pure ethanol in London
proof.
(t) “L.P. liter” means the volume of 57.38 percent pure
ethanol per liter.
(u) “U.P.” means the strength less than London proof.
(v) “O.P.” means the strength more than London proof.
(2) The following Section 3 shall be substituted for Section 3:
“3. To levy and collect excise duty: (1) In manufacturing or
producing and discharging from any enterprise, importing
any goods or products set forth in the Schedule or selling
any such goods or products imported or selling servic s,
the excise duty set forth in the Schedule shall be evied
and collected as follows:
(a) In the case of liquors, cigarette and beer, at
the time of production and discharge from
the enterprise;
(b) In the case of any product or service to be
sold under the automatic discharge system,
the excise duty shall be paid within the
seventh day of the month following the
production or sale;

86
Provided that, the excise duty paid on
the purchase or import of any product or
service subject to excise duty may be
deducted from the excise duty to be paid
while selling such product or service.
(2) The excise duty paid on the raw materials used
in the making of a product subject to excise duty may be
deducted from the excise duty to be paid while exporting
the finished product.
(3) In the event of failure to pay the excise duty
referred to in Sub-section (1) within the time limit, there
shall be charged a delay fee by 0.05 percent on the due
and payable amount per day.
(3) The following Sections 3A., 3B. and 3C. shall be inserted after
Section 3:
“3A. Not to levy excise duty on export from the Nepal: (1)
No excise duty shall be levied on a product exported by
an enterprise from the State of Nepal.
(2) For the purpose of Sub-section (1), there shall
be furnished a cash deposit or bank guarantee for the
amount of excise duty leviable while exporting a product
subject to excise duty from the enterprise.
(3) The procedures for the release or refund of the
cash deposit as referred to in Sub-section (2) shall be as
prescribed by the Department.

87
3B. Not to levy excise duty on sale by duty free shop: (1)
No excise duty shall be levied on any product sold
by a bonded warehouse and duty free shop.
(2) For the purposes of Sub-section (1), there shall
be furnished a cash deposit for the amount of excis duty
leviable while purchasing a product subject to excise duty.
(3) The procedures for the release or refund of the
cash deposit as referred to in Sub-section (2) shall be as
prescribed by the Department.
3C. Obligation to pay excise duty: The following person
shall have the duty to pay the excise duty under this Act:
(a) In the case of a product or service to be produce
within the country, the producer or manufacturer
thereof;
(b) In the case of a product to be imported, the person
receiving the product as mentioned in the bill of
lading;
(c) In the case of auction of a product subject to excise
duty, the person taking over that product;
(d) In the event that a duty free product is resold r
used for other purpose or is converted from a
condition of being exempted from excise duty into
a condition of being subject to excise duty, the
person who has ownership of such product.”
(4) The following Sub-section (3) shall be inserted after Sub-section
(2) of Section 4:

88
“(3) The Office may, at any time, examine the volume of
alcohol and quality of liquors and other substance to be
exported by obtaining approval. Where the volume of
alcohol is more than one percent or there is a significa t
deviation in the quality, the amount of controversy
involved in the revenue leakage as well as additional sum
that is Twenty Five percent of that amount shall be
recovered.”
(5) Of Section 7:
(a) Of Sub-section (1):
(1) The following Sub-clause (1) shall be substituted
for Sub-clause (1) of Clause (a):
“(1) the factory price which a manufacturer
determines at the time of selling a product
subject to excise duty, or”
(2) The following Sub-clause (1a) shall be inserted
after Sub-clause (1) of Clause (a):
“(1a) In the case of service, the price of the servic
at the time of selling it.”
(a) The words “the price set by also adding the
customs duty to the price fixed” shall be
substituted for the words “the price fixed”
contained in Clause (b).
(b) The following Sub-sections (4) and (5) shall
be inserted after Sub-section (3):

89
“(4) The determination of the rate of
recovery of the production of ethanol,
spirit or E.N.A. required to be obtained
from grains, molasses, spirit or E.N.A.
to be used by an industry producing
anhydrides, ethanol, rectified spirit or
E.N.A. shall be as prescribed.
(5) Where it appears that the rate of
production is less than the recovery rate
prescribed under Sub-section (4), it
shall be deemed that higher quality
liquors have been produced from such
different quantity of ethanol, rectified
spirit or E.N.A.”
(6) The following proviso shall be inserted to Sub-section (2) of
Section 8:
“Provided that, the excise duty license shall not be
required for importing any products subject to excise duty under
the diplomatic privilege on the recommendation of the Ministry
of Foreign Affairs.”
(7) The following proviso shall be inserted to Clause (d) of Sub-
section (3) of Section 12:
“Provided that, such suspension shall not exceed Seven
days; and decision shall be made no later than Sixty days after
the making of such suspension.”
(8) The following Clauses (a), (b) and (c) shall be substituted for
Clauses (a), (b) and (c) of Sub-section (1) of Section 14:

90
“(a) Ten per cent of the amount in controversy to the informer,
(b) Twenty per cent of the amount in controversy to one who
seizes and hands over a product only;
(c) Thirty per cent of the amount in controversy to one who
arrests and hands over the person, along with the proof.
Provided that, in cases where the informer who
gives information or clue be more than one person, the
reward shall be divided between them pro rata.”
(9) Of Section 16:
(a) The following Clause (b) shall be substituted for Clause
(b) of Sub-section (1):
“(b) To produce or import a product subject to excise
duty without obtaining the license,”
(b) The following Sub-section (5) shall be inserted after Sub-
section (4):
“(5) Where any person commits any of the following
offences, such person shall be punished with a fine
from Five Thousand Rupees to Fifteen Thousand
Rupees according to the gravity of offence:
(a) To sell or store any product subject to excise
duty without obtaining the license;
(b) To provide any service subject to excise duty
without obtaining the license;
(c) To violate this Act and the Rules framed
under this Act.”

91
(10) The following Section 17A. Shall be inserted after Section 17:
“17A. Provision on payment by installment: Where any
taxpayer makes a request in writing for payment of any
arrear excise duty in installment, permission may be given
to pay the same in installments within One year.”
(11) The following Section 19 shall be substituted for Section 19:
“19. Appeal: (1) An appeal may lie to the Revenue Tribunal
against any decision made by the Excise Duty Officer
pursuant to this Act.
(2) A person who makes an appeal pursuant to
Sub-section (1) shall register a copy of the appeal with the
Department no later than Fifteen days of making of the
appeal.
(3) The implementation of the decision set forth in
Sub-section (1) of Section 16 shall not be deemed to have
been affected by the reason of making an appeal pursuant
to Sub-section (1).”
(12) The following Section 23A. Shall be inserted after Section 23:
“23A. There shall be levied the excise duty on the purchase, if
any, by His Majesty the King, Her Majesty the Queen, His
Royal Highness the Crown Prince, and members of the
royal family of any product and service subject to excise
duty.”
(13) The following Section 25A. Shall be inserted after Section 25:

92
“25A. Power to frame and issue manual: The Department may
frame and issue necessary Manuals, subject to this Act and
the Rules framed under this Act.”
(14) The following Schedule shall be inserted after S ction 26:

Schedule
(Relating to Section 3)
Rate of excise duty:
SN Description of
product/good or service
Heading/sub-
heading No.
Unit Rate of
excise duty
1. Khudo (Molasses) 1703.10.00 and
1703.90.00 Per quintal Rs. 35.00
2. Sakhhar (Gud), black
Sakhhar, Raskat from
Khandsari(only in import)
1701.11.90
Per quintal Rs. 65.00
3. Plastic packing materials 3923.10.90 Value/price
percent 5
4. Plastic packing materials 3923.21.00 Value/price
percent 5
5. Plastic packing materials 3923.29.00 Value/price
percent 5
6. Plastic packing materials 3923.90.00 Value/price
percent 5
7. Plastic packing materials 3926.90.90 Value/price
percent 5
8. Fruit juices
(a) Orange juice 2009.19.00, Per liter Rs. 1.00

93
2009.11.00 and
2009.12.00
(b) Grape fruit juice 2009.29.00 and
2009.21.00 Per liter Rs. 1.00
(c) Any other citrus fruit 2009.39.00 and
2009.31.00 Per liter Rs. 1.00
(d) Pineapple juice 2009.49.00 and
2009.41.00 Per liter Rs. 1.00
(e) Tomato juice, grape
juice including grape must
2009.69.00,
2009.50.00 and
2009.61.00 Per liter Rs. 1.00
(f) Apple juice 2009.79.00 and
2009.71.00 Per liter Rs. 1.00
(g) Juice of any other single
fruit or vegetable
2009.80.00
Per liter Rs. 1.00
(h) Mixture of juices 2009.90.00 Per liter Rs. 1.00
9. Beverages: Per liter Rs. 1.00
(a) All kinds of non-
alcoholic beverages
2202.90.00
Per liter Rs. 1.00
(b) Light beverages
containing less than one
percent alcohol
2202.90.00
Per liter Rs. 6.00
10. Pan Masala and similar
other goods with or without
nicotine containing lime
2106.90.20
Per Kilogram Rs. 200.00
11. Kattha 3203.00.00 Per Kilogram Rs. 100.00
12. Beer 2203.00.00 Per liter Rs.50.00
13. Country beer (Chhang) 2206.00.00 Per liter Rs.15.00
14. Wine made in the country
(containing not more than
2204.29.00
Per liter Rs.45.00

94
12 percent alcohol, made
from Chutro, apple or
Aishalu) or domestic cider.
15. Wine containing not more
than 12 percent alcohol (on
import)
2204.10.00,
2205.90.00,
2204.21.00,
2204.29.00,
2204.30.00 and
2205.10.00 Per liter Rs.140.00
16. Wine containing 12-17
percent alcohol
2204.10.00,
2205.90.00,
2204.21.00,
2204.29.00,
2204.30.00 and
2205.10.00 Per liter Rs.140.00
17. Wine containing more than
17 percent alcohol, herbs
mixed liquors, cocktail
(alcoholic/non-
alcoholic/non-alcoholic
mixtures) and other
fermented liquors.
2204.10.00,
2205.90.00,
2204.21.00,
2204.29.00,
2204.30.00,
2205.10.00 and
2206.00.90 Per liter Rs.145.00
18. sampan, sherry, mead,
perry, cider
2206.00.90 and
2204.10.90 Per liter Rs.145.00
19. Denatured spirit (containing
80-99 percent alcohol)
2207.20.00
Per liter Rs.15.00
20. Thinner, solvent 3814.00.00 Per liter Rs.20.00
21. Anhydrous ethanol
(containing more than 99
percent alcohol)
2207.10.00
Per liter Rs.6.00

95
22. All kinds of alcoholic fluids
used as raw materials of
liquors containing 57.38
percent to 80 percent
alcohol by volume


(a) Wine and raw
materials of brandy
2208.20.10
Per liter Rs.100.00
(b) Raw materials of
whisky
2208.30.10
Per liter Rs.100.00
(c) Raw materials of rum
and Tafia
2208.40.10
Per liter Rs.100.00
(d) Raw materials of gin
and Geneva
2208.50.10
Per liter Rs.100.00
(e) Raw materials of vodka 2208.60.10 Per liter Rs.100.00
(f) Raw materials of
liqueurs and cordials
2208.70.10
Per liter Rs.100.00
(g) Raw materials of other
liquors(including spirit)
2208.90.10
Per liter Rs.100.00
23. Rectified spirits used as raw
materials of liquors
containing more than 80
percent alcohol by volume
2207.10.00
Per liter Rs.30.00
24. E.N.A. 2207.10.00 Per liter Rs.40.00
25. Liquors
(a) Wine and brandy
(1) With 25 U.P. strength
(containing 43.05
percent alcohol content)
2208.20.90
Per liter
Per LP liter
Rs. 270.00
Rs. 360.00
(2) With 30 U.P. strength
(containing 43.05
2208.20.90 Per liter
Per LP liter
Rs. 248.50
Rs. 355.00

96
percent alcohol content)
(b) Whisky
(1) With 25 U.P. strength
(containing 43.05
percent alcohol content)
2208.30.90
Per liter
Per LP liter
Rs. 270.00
Rs. 360.00
(2) With 30 U.P. strength
(containing 43.05
percent alcohol content)
2208.30.90
Per liter
Per LP liter
Rs. 248.50
Rs. 355.00
(c) Rum and Tafia
(1) With 25 U.P. strength
(containing 43.05
percent alcohol content)
2208.40.90
Per liter
Per LP liter
Rs. 270.00
Rs. 360.00
(2) With 30 U.P. strength
(containing 43.05
percent alcohol content)
2208.40.90
Per liter
Per LP liter
Rs. 248.50
Rs. 355.00
(d) Gin and Geneva
(1) With 25 U.P. strength
(containing 43.05
percent alcohol content)
2208.50.90
Per liter
Per LP liter
Rs. 270.00
Rs. 360.00
(2) With 30 U.P. strength
(containing 43.05
percent alcohol content)
2208.50.90
Per liter
Per LP liter
Rs. 248.50
Rs. 355.00
(e) Vodka
(1) With 25 U.P. strength
(containing 43.05
percent alcohol content)
2208.60.90
Per liter
Per LP liter
Rs. 270.00
Rs. 360.00
(2) With 30 U.P. strength
(containing 43.05
percent alcohol content)
2208.60.90
Per liter
Per LP liter
Rs. 248.50
Rs. 355.00
(f) Liquors and cordials

97
(1) With 25 U.P. strength
(containing 43.05
percent alcohol content)
2208.70.90
Per liter
Per LP liter
Rs. 270.00
Rs. 360.00
(2) With 30 U.P. strength
(containing 43.05
percent alcohol content)
2208.70.90
Per liter
Per LP liter
Rs. 248.50
Rs. 355.00
(g) Other liquors
(1) With 15 U.P. strength
(containing 48.78
percent alcohol content)
2208.90.90
Per liter
Per LP liter
Rs. 361.25
Rs. 425.00
(2) With 25 U.P. strength
(containing 43.05
percent alcohol content)
2208.90.90
Per liter
Per LP liter
Rs. 270.00
Rs. 360.00
(3) With 30 U.P. strength
(containing 40.18
percent alcohol content)
2208.90.90
Per liter
Per LP liter
Rs. 248.50
Rs. 355.00
(4) With 40 U.P. strength
(containing 34.44
percent alcohol content)
2208.90.90
Per liter
Per LP liter
Rs. 123.00
Rs. 205.00
(5) With 50 U.P. strength
(containing 28.70
percent alcohol content)
2208.90.90
Per liter
Per LP liter
Rs. 45.00
Rs. 90.00
(6) With 70 U.P. strength
(containing 17.22
percent alcohol content)
2208.90.90
Per liter
Per LP liter
Rs. 6.60
Rs. 22.00
Provided that, in the case of imported liquors, where the quantity of alcohol
specified in the above rate differs by less than one percent, the same rate
shall be applicable and where that quantity differs by more than one
percent, the excise duty shall be levied and collected as per the rate that is
near and the highest.

98
26. Packed raw chewable
tobacco containing lime
2403.91.00
Per kilogram Rs. 130.00
27. All kinds of jarda and
khaini made from
tobacco
2403.91.00
Per kilogram Rs. 200.00
28. Tooth cleaning material
containing tobacco dust.
2403.99.00
Per kilogram Rs. 190.00
29. Prepared bidi 2403.10.90 Per M Rs. 50.00
30. Pipe tobacco 2403.10.10 Per kilogram Rs. 525.00
31. All kinds of cigar 2402.10.00
and
2402.90.00 Per stick Rs. 3.00
32. Iron rods 7213 and
7214 (Except
sub-heading
7214.99.10) Per metric ton Rs. 1000.00
33. Marble 2516.90.00,
2516.22.00,
2515.12.00,
2515.20.00,
2516.12.00,
and from
6802.21.00.to
6802.99.00 Value percent 5
34. Glaze tiles 6908 Value percent 5
35. Noodles, macaroni, pasta 1902 Per kilogram Rs. 10.00
36. Preparations of meat, fish
(canned)
Chapter 16
Value percent 5
37. Dog and cat feed 2309.10.00 Value percent 5
38. Cigarettes (all kinds of

99
cigarettes made from
tobacco)
(1) In up to 70 mm length
(a) With filter 2402.20.00 Per M Rs. 170.00
(b) Without filter 2402.20.00 Per M Rs. 350.00
(2) In more than 70 mm up
to 75 mm length (with
filter)
2402.20.00
Per M Rs. 450.00
(3) In more than 75 mm up
to 85 mm length (with
filter)
2402.20.00
Per M Rs. 590.00
(4) In more than 85 mm
length (with filter)
2402.20.00
Per M Rs. 785.00
39. Cement
(a) Portland cement white
(whether or not
colored)
2523.21.00
Per metric ton Rs. 105.00
(b) Portland cement
(brown)
2523.29.00
Per metric ton Rs. 105.00
(c) Aluminous cement
(Cement Fondu)
2523.30.00
Per metric ton Rs. 105.00
(d) Other hydraulic cement 2523.90.00 Per metric ton Rs. 105.00
40. All kinds of (ceramic)
bricks (other than domestic
production)
6904.10.00
Per thousand Rs. 525.00
41. Color television 8528.12.10 Value percent 5
42. Spare-parts of color
television only
8529.90.10
Value percent 5
43. Motor vehicles
(a) Jeep, car and van Value percent 32

100
(custom heading 8702)
and their chassis
(custom heading 8706)
(b) Jeep, car and van
(custom headings
87032200, 87032300
and 87032400)

Value percent 53
(c) Other jeep, car and van
falling under heading
8703 other than those
falling under sub-
headings mentioned in
Clause (b)

Value percent 32
(d) Chassis (custom heading
8706) of jeep, car and
van (custom heading
8703)



Value percent



32
(e) Microbus (with capacity
of 11-14 seats)
(customs heading 8702)
and chassis thereof
(customs heading 8706)

Value percent 32
(f) Double cab pick up
(customs heading 8704)
and chassis thereof
(customs heading 8706)

Value percent 32
(g) Three wheeler (auto
rickshaw) (customs
heading 8703) and
chassis thereof(customs

Value percent 32

101
heading 8706)
(h) Single cab pick up
(customs heading 8704)
and chassis thereof
(customs heading 8706)

Value percent 15
(i) Delivery van (customs
heading 8704) and
chassis thereof
(customs heading 8706)

Value percent 15
(j) Minibus (with capacity
of 15 to 25 seats
(custom sub-heading
87021020)

Value percent 12
(k) Minibus (with capacity
of 15 to 25 seats
(Custom sub-heading
870290.20)

Value percent 4
(l) Chassis of minibus
(custom heading 8706)
(with capacity of 15 to
25 seats) falling under
custom heading 8702

Value percent 4
(m) Motor cycle (custom
heading 8711)

Value percent 4

(1) Notwithstanding anything contained above in the rate of excise
duty, no excise duty shall be levied on ambulances, corpse
carrying vehicles and battery tempos.

102
(2) The Department may interpret and specify the harmonized codes
of the products/goods on which excise duty is leviable.
(3) Where one unit purchases and sells more than one typ of
liquors, payment of the duty at the highest rate shall suffice.
(4) Excise duty shall also be levied on the local sale for the
commercial purposes of the motor vehicles mentioned i Clauses
(a) to (l) of serial number 43.
Provided that, no excise duty shall be levied on such local
sale in the case of the motor vehicles already imported prior to
the 28th day of the month of Ashad of the year 2063.
(5) The amount of excise duty on the import of a motor vehicle may
be deducted from the excise duty payable on the sal of that
vehicle.
(6) There shall be 25 percent exemption of per kilogram Rs. 10.00
excise duty leviable on noodles, macaroni and pasta under
heading No. 1902.
(7) The raw materials M.S. wire rod in coil under sub-heading No.
7213.91.10 of heading No. 7213 to be imported by an industry
shall be exempted from excise duty.
(8) A brick producer shall enjoy an exemption of Rs, 50,00 .00 from
the license fee payable by that producer in accordance with the
Schedule of the Excise Duty Rules.
(9) The Director General may, for statistical purposes, add a digit to
the eight digit sub-heading for the purposes of the rat of excise
duty.

103
Financial Act, 2064 (2007)
Date of Authentication and Publication
2064.3.28 (12 July, 2007)
An Act Made to Implement Proposals Relating to Finance of the
Government of Nepal
Preamble: Whereas, it is expedient to levy some charges, taxes, duties, cesses
and fees, continue or alter the existing ones and also to amend the laws in force
relating to revenue administration in order to implement the proposals relating
to finance of the Government of Nepal;
Now, therefore, be it enacted by Legislature-Parliament.
1. Short title and commencement: (1) This Act may be called as the
“Financial Act, 2064 (2007)."
(2) Sections 1, 2, 3, 4, 5, 9 and 11 of this Act shall be deemed to
have come into force on 28 Ashad 2064 (11 July2007) and the other
Sections on 1 Shrawan 2064 (17 July 2007).
29. Amendment to the Excise Duty Act, 2058 (2002): Of the Excise
Duty Act, 2058(2002):
(1) Of Section 2:
(a) The following clause (j) shall be substituted for clause (j):
“(j) "factory price" means the price fixed by adding only
the expenditure incurred in manufacturing a
product subject to production cost and the profit
of the enterprise, excluding the excise duty or any
other tax chargeable on such product.”

104
(b) The following clause (g) shall be substituted for Clause
(g):
“(g) "production" means the manufacturing, making or
preparing a product subject to excise duty, and this
expression also includes re-packaging.”
(c) The following Clause (h1) shall be inserted after Clause
(h):
“(h1) “Tobacco product” means tobacco or cigarette
containing mixtures of tobacco substance, pan
parag, khaini or similar substance which is chewed
or put in mouth and this expression also includes
bidi, cigar etc.”
(d) The following Clauses (q), (r), (s), (t), (u) and (v) shall be
inserted after Clause (k):
(q) "liquors" means any alcoholic substance prepard
by fermenting any grains, fruits or any other
stratchful substance or by other method, which has
an alcoholic strength by volume of more than o.5
percent, and this expression includes liquors, spirit,
country liquor (chhyang), whisky, rum, gin,
brandy, vodka, beer, wine, sherry, cider, perry, mid,
malt, industrial alcohol, rectified spirit, ENA and
heads spirit.
(r) “ready-made liquors” means all kinds of alcoholic
fluids prepared from mixtures with alcoholic
strength by volume of less than 57.38 percent.

105
(s) “L.P. means the strength of pure ethanol in London
proof.
(t) “L.P. liter” means the volume of 57.38 percent pure
ethanol per liter.
(u) “U.P.” means the strength less than London proof.
(v) “O.P.” means the strength more than London proof.
(2) The following Section 3 shall be substituted for Section 3:
“3. To levy and collect excise duty: (1) In manufacturing or
producing and discharging from any enterprise, importing
any goods or products set forth in the Schedule and selling
services, the excise duty set forth in the Schedule shall be
levied and recovered as follows:
(a) In the case of liquors, cigarette and beer, at
the time of production and discharge from
the enterprise;
(b) In the case of any product to be sold after
producing the goods under the automatic
discharge system and In the case of any
service, after issue the invoice, the excise
duty shall be paid within the Twenty Fifth
day of the month.
Provided that,
(d) In the case of exported vehicles for
commercial purpose which are
leviable to excise duty and the excise

106
duty may be levied and recovered
includes in local sale.
(d) In the case of exported vehicles for
commercial purpose which are leviable to
excise duty, at the time of sale and issuance
of invoice;
(2) The excise duty paid on the purchase
or import of any product or service
for commercial purpose subject to
excise duty may be deducted from the
excise duty to be paid while selling
such product or service.
(2) The excise duty paid on the raw materials used
in the making of a product subject to excise duty may be
deducted from the excise duty to be paid while exporting
the finished product.
(3) In the event of failure to pay the excise duty
referred to in Sub-section (1) within the time limit, there
shall be charged a delay fee by 0.05 percent on the due
and payable amount per day.
(3) The following Sections 3A., 3B. and 3C. shall be inserted after
Section 3:
“3A. Not to levy excise duty on export from the Nepal: (1)
No excise duty shall be levied on a product exported by
an enterprise from the State of Nepal.
(2) For the purpose of Sub-section (1), there shall
be furnished a cash deposit or bank guarantee for liquor,

107
cigarette and beer while producing from the enterprise,
subject to excise duty.
(3) The procedures for the release or refund of the
cash deposit or bank guarantee as referred to in Sub-
section (2) shall be as prescribed by the Department.
(4) If any goods manufactured or prepared within
Nepal and already exported from Nepal are re-imported
because of rejection by the concerned party or other
reason, and the same goods are to be exported within
Three months of the import, the goods may be releasd
against the deposit of the excise duty leviable at the time
of such return, and the deposit shall be refunded by the
concerned Customs Office after the re-export of such
goods."
3B. Not to levy excise duty on sale by duty free shop: (1)
No excise duty shall be levied on any product sold
by a bonded warehouse and duty free shop.
(2) For the purposes of Sub-section (1), there shall
be furnished a cash deposit or bank guarantee for the
amount of excise duty leviable while purchasing a product
subject to excise duty.
(3) The procedures for the release or refund of the
cash deposit or bank guarantee as referred to in Sub-
section (2) shall be as prescribed by the Department.
3C. Obligation to pay excise duty: The following person shall
have the duty to pay the excise duty under this Act:

108
(a) In the case of a product or service to be produce
within the country, the producer or manufacturer
thereof;
(b) In the case of a product to be imported, the person
receiving the product as mentioned in the bill of
lading;
(c) In the case of auction of a product subject to excise
duty, the person taking over that product;
(d) In the event that a duty free product is resold r
used for other purpose or is converted from a
condition of being exempted from excise duty into
a condition of being subject to excise duty, the
person who has ownership of such product.”
(4) The following Sub-section (3) shall be inserted after Sub-section
(2) of Section 4:
“(3) The Office may, at any time, examine the volume of
alcohol and quality of liquors and other substance to be
exported/produced by obtaining approval. Where the
volume of alcohol is more than one percent or there is a
significant deviation in the quality, the amount of
controversy involved in the revenue leakage as well as
additional sum that is Twenty Five percent of that amount
shall be recovered.”
(5) The following Section 4A. shall be inserted after Section 4 :
4A. Exemption from excise duty: (1) In transferring any
motor vehicles that were imported by any foreign mission
or donor agency with the enjoyment of the diplomatic

109
facility or tariff facility to the project itself in consonance
with the approval annual program of the project and
converting their number plates into governmental ones or
in transferring, with the approval of the Ministry of
Finance, any motor vehicles that were imported in the
name of any project with the enjoyment of full or partial
tariff facility (except those imported on inventory or bank
guarantee) to any local body, community school,
community hospital or governmental body after the
completion of the project;
(2) If any diplomatic body, project or other body
(governmental as well as non-governmental organization)
intends to scrap and cancel the registration of any motor
vehicle that it has imported with the enjoyment of the
tariff facility and that is more than 15 years old after the
year of initial production, with the approval of the
Ministry of Finance, the excise duty shall not be levied on
such a motor vehicle.
(3) If the owner of a motor vehicle imported for
personal use with the enjoyment of partial customs tariff
facility dies and the motor vehicle has to be transmitted to
the husband or wife of the owner of motor vehicle, the
excise duty shall not be levied on such a motor vehicl .
(6) Of Section 7:
(a) Of Sub-section (1):
(1) Of Clause (a),-

110
(a) The following Sub-clause (1) shall be
substituted for Sub-clause (1):
“(1) the factory price which a
manufacturer determines at the time
of selling a product subject to excise
duty, or”
(b) The following Sub-clause (1a) shall be
inserted after Sub-clause (1):
“(1a) In the case of service, the price of the
service at the time of selling it.”
(2) The words “the price set by also adding the
customs duty to the price fixed” shall be substituted
for the words “the price fixed” contained in Clause
(b).
(b) The following Sub-sections (4) and (5) shall be inserted
after Sub-section (3):
“(4) The determination of the rate of recovery of the
production of ethanol, spirit or E.N.A. required to
be obtained from grains, molasses, spirit or E.N.A.
to be used by an industry producing anhydrides,
ethanol, rectified spirit or E.N.A. shall be as
prescribed.
(5) Where it appears that the rate of production is les
than the recovery rate prescribed under Sub-section
(4), it shall be deemed that higher quality liquors
have been produced from such different quantity of
ethanol, rectified spirit or E.N.A.”

111
(7) The following Sub-section (1) shall be substituted to Sub-section
(1) of Section 8:
(1) No one shall manufacture, import, sell or store a product
subject to excise duty or deliver service subject to excise
duty to any other person, without obtaining the license
pursuant to this Act or Rules made under this Act.
(8) The following proviso shall be inserted to Sub-section (2) of
Section 8:
“Provided that, the excise duty license shall not be
required for importing any products subject to excise duty under
the diplomatic privilege on the recommendation of the Ministry
of Foreign Affairs.”
(9) The following proviso shall be inserted to Clause (d) of Sub-
section (3) of Section 12:
“Provided that, such suspension shall not exceed seven
days; and decision shall be made no later than sixty days after the
making of such suspension.”
(10) The following Clauses (a), (b) and (c) shall be substituted for
Clauses (a), (b) and (c) of Sub-section (1) of Section 14:
“(a) Ten per cent of the amount in controversy to the informer,
(b) Twenty per cent of the amount in controversy to one who
seizes and hands over a product only;
(c) Thirty per cent of the amount in controversy to one who
arrests and hands over the person, along with the proof.

112
Provided that, in cases where the informer who
gives information or clue be more than one person, the
reward shall be divided between them pro rata.”
(11) Of Section 16:
(a) The following Clause (b) shall be substituted for Clause
(b) of Sub-section (1):
“(b) To produce or import a product subject to excise
duty without obtaining the license,”
(b) The following Sub-section (5) shall be inserted after Sub-
section (4):
“(5) Where any person commits any of the following
offences, such person shall be punished with a fine
from Five Thousand Rupees to Fifteen Thousand
Rupees according to the gravity of offence:
(a) To sell or store any product subject to excise
duty without obtaining the license;
(b) To provide any service subject to excise duty
without obtaining the license;
(c) To violate this Act and the Rules framed
under this Act.”
(12) The following Section 17A. Shall be inserted after Section 17:
“17A. Provision on payment by installment: Where any
taxpayer makes a request in writing for payment of any
arrear excise duty in installment, permission may be given
to pay the same in installments within one year.”

113
(13) The following Section 19 shall be substituted for Section 19:
“19. Appeal: (1) An appeal may lie to the Revenue Tribunal
against any decision made by the Excise Duty Officer
pursuant to this Act.
(2) A person who makes an appeal pursuant to
Sub-section (1) shall register a copy of the appeal with the
Department no later than Fifteen days of making of the
appeal.
(3) The implementation of the decision set forth in
Sub-section (1) of Section 16 shall not be deemed to have
been affected by the reason of making an appeal pursuant
to Sub-section (1).”
(14) The following Sub-section (1a) shall be inserted after Sub-
section (1) of Section 23:
(1a) The taxpayer who makes an application pursuant to Sub-
section (1) has to pay undisputed amount of excise duty
and amount of fine, order to be recovered and furnish a
cash deposit of One Third of the amount of excise duty in
controversy and amount of fine.
(15) The following Section 23A. shall be inserted after Section 23:
“23A. To be levied the excise duty: There shall be levied the
excise duty on the purchase, if any, The King, and
members of the royal family of any product and servic
subject to excise duty.”
(16) The following Section 25A. Shall be inserted after Section 25:

114
“25A. Power to frame and issue manual: The Department may
frame and issue necessary manuals, subject to this Act and
the Rules framed under this Act.”
(17) The word "release" shall be substituted for "export" contained in
Clauses (a) and 11 of Sub-section (1) of Section 4:
(18) The word "Inland Revenue Office" shall be substituted for
"Excise Duty Office" contained in Sub-section (1) of Section 13,
Sub-section (1) of Section 14 and Section 15.
(19) The following Schedule shall be inserted in Excise Duty Act,
2058.


115
Schedule
(Relating to Section 3)
Rate of excise duty:
SN Description of
product/good or service
Heading/sub-
heading No.
Unit Rate of
excise duty
1. Molasses 1701.10.00 and
1703.90.00 Per quintal Rs. 35.00
2. Sakhhar (Gud), black
Sakhhar, Raskat from
Khandsari
1703.11.90
Per quintal Rs. 65.00
3. Plastic packing materials 3923.10.90 Value/price
percent 5 percent
4. Plastic packing materials 3923.21.00 Value/price
percent 5 percent
5. Plastic packing materials 3923.29.00 Value/price
percent 5 percent
6. Plastic packing materials 3923.90.00 Value/price
percent 5 percent
7. Plastic packing materials 3923.90.90 Value/price
percent 5 percent
8. Fruit juices
(a) Orange juice 2009.19.00,
2009.11.00 and
2009.12.00 Per liter Rs. 2.00
(b) Grape fruit juice 2009.29.00 and
2009.21.00 Per liter Rs. 2.00
(c) Any other citrus fruit 2009.39.00 and
2009.31.00 Per liter Rs. 2.00

116
(d) Pineapple juice 2009.49.00 and
2009.41.00 Per liter Rs. 2.00
(e) Tomato juice, grape juice
including grape must
2009.69.00,
2009.50.00
and2009.61.00 Per liter Rs. 2.00
(f) Apple juice 2009.79.00 and
2009.71.00 Per liter Rs. 2.00
(g) Juice of any other single
fruit or vegetable
2009.80.00
Per liter Rs. 2.00
(h) Mixture of juices 2009.90.00 Per liter Rs. 2.00
9. Pan Masala and similar
other goods with or without
nicotine containing lime
2106.90.20
Per
Kilogram Rs. 200.00
10. Kattha 1404.90.00 Per
Kilogram Rs. 100.00
11. Beverages
(a) All kinds of non-
alcoholic beverages
2202.90.00
Per liter Rs. 2.00
(b) Light beverages
containing less than 0.5
percent alcohol
2202.90.00
Per liter Rs. 4.00
(b) Light beverages
containing from 0.5
percent to one percent
alcohol

Per liter Rs. 6.00
12. Beer 2203.00.00 Per liter Rs.50.00
13. Country beer (chhang) 2206.00.10 Per liter Rs.15.00
14. Wine made in the country
(containing not more than
12 percent alcohol, made
2204.29.00
Per liter Rs.45.00

117
from Chutro, apple or
Aishalu or domestic cider)
15. Wine containing 12 percent
alcohol and other beverages
except beers (on import)

Per liter Rs.125.00
16. Wine containing 12 percent
alcohol (on import).
2204.10.00,
2205.90.00,
2204.21.00,
2204.29.00,
2204.30.00 and
2205.10.00 Per liter Rs.140.00
17. Wine containing 12-17
percent alcohol
2204.10.00,
2205.90.00,
2204.21.00,
2204.29.00,
2204.30.00 and
2205.10.00 Per liter Rs.140.00
18. Wine containing more than
17 percent alcohol, herbs
mixed liquors, cocktail
(alcoholic/non-alcoholic/
non-alcoholic mixtures) and
other fermented liquors
2204.10.00,
2205.90.00,
2204.21.00,
2204.29.00,
2204.30.00,
2205.10.00 and
2206.00.90 Per liter Rs.145.00
19. Sampan, sherry, mead,
perry, cider
2206.00.90 and
2204.10.90 Per liter Rs.145.00
20. Denatured spirit (containing
80-99 percent alcohol)
2207.20.00
Per liter Rs.30.00
21. Thinner, solvent 3814.00.00 Per liter Rs.20.00
22. Anhydrous ethanol 2207.10.00 Per liter Rs.6.00

118
(containing more than 99
percent alcohol)
23. All kinds of alcoholic fluids
used as raw materials of
liquors containing 57.38
percent to 80 percent
alcohol by volume


(a) Wine and raw materials
of brandy
2208.20.10
Per liter Rs.100.00
(b) Raw materials of whisky 2208.30.10 Per liter Rs.100.00
(c) Raw materials of rum and
Tafia
2208.40.10
Per liter Rs.100.00
(d) Raw materials of gin and
Geneva
2208.50.10
Per liter Rs.100.00
(e) Raw materials of vodka 2208.60.10 Per liter Rs.100.00
(f) Raw materials of liqueurs
and cordials
2208.70.10
Per liter Rs.100.00
(g) Raw materials of other
liquors (including spirit)
2208.90.10
Per liter Rs.100.00
24. Rectified spirits used as raw
materials of liquors
containing more than 80
percent alcohol by volume
2207.10.10
Per liter Rs.30.00
25. E.N.A. 2207.10.10 Per liter Rs.40.00
26. Liquors
(a) Wine and brandy
(1) With 25 U.P. strength
(containing 43.05
percent alcohol content)
2208.20.90
Per liter
Per LP liter
Rs. 270.00
Rs. 360.00
(2) With 30 U.P. strength 2208.20.90 Per liter Rs. 252.00

119
(containing 40.18
percent alcohol content)
Per LP liter Rs. 360.00
(b) Whisky
(1) With 25 U.P. strength
(containing 43.05
percent alcohol content)
2208.30.90
Per liter
Per LP liter
Rs. 270.00
Rs. 360.00
(2) With 30 U.P. strength
(containing 40.18
percent alcohol content)
2208.30.90
Per liter
Per LP liter
Rs. 252.00
Rs. 360.00
(c) Rum and Tafia
(1) With 25 U.P. strength
(containing 43.05
percent alcohol content)
2208.40.90
Per liter
Per LP liter
Rs. 270.00
Rs. 360.00
(2) With 30 U.P. strength
(containing 40.18
percent alcohol content)
2208.40.90
Per liter
Per LP liter
Rs. 252.00
Rs. 360.00
(d) Gin and Geneva
(1) With 25 U.P. strength
(containing 43.05
percent alcohol content)
2208.50.90
Per liter
Per LP liter
Rs. 270.00
Rs. 360.00
(2) With 30 U.P. strength
(containing 40.18
percent alcohol content)
2208.50.90
Per liter
Per LP liter
Rs. 252.00
Rs. 360.00
(e) Vodka
(1) With 25 U.P. strength
(containing 43.05
percent alcohol content)
2208.60.90
Per liter
Per LP liter
Rs. 270.00
Rs. 360.00
(2) With 30 U.P. strength
(containing 40.18
percent alcohol content)
2208.60.90
Per liter
Per LP liter
Rs. 252.00
Rs. 360.00

120
(f) Liquors and cordials
(1) With 25 U.P. strength
(containing 43.05
percent alcohol content)
2208.70.90
Per liter
Per LP liter
Rs. 270.00
Rs. 360.00
(2) With 30 U.P. strength
(containing 40.18
percent alcohol content)
2208.70.90
Per liter
Per LP liter
Rs. 252.00
Rs. 360.00
(g) Other liquors
(1) With 15 U.P. strength
(containing 48.78
percent alcohol content)
2208.90.90
Per liter
Per LP liter
Rs. 361.25
Rs. 425.00
(2) With 25 U.P. strength
(containing 43.05
percent alcohol content)
2208.90.90
Per liter
Per LP liter
Rs. 270.00
Rs. 360.00
(3) With 30 U.P. strength
(containing 40.18
percent alcohol content)
2208.90.90
Per liter
Per LP liter
Rs. 252.00
Rs. 360.00
(4) With 40 U.P. strength
(containing 34.44
percent alcohol content)
2208.90.90
Per liter
Per LP liter
Rs. 126.00
Rs. 210.00
(5) With 50 U.P. strength
(containing 28.70
percent alcohol content)
2208.90.90
Per liter
Per LP liter
Rs. 47.50
Rs. 95.00
(6) With 70 U.P. strength
(containing 17.22
percent alcohol content)
2208.90.90
Per liter
Per LP liter
Rs. 7.80
Rs. 26.00
Provided that, in the case of
imported liquors, where the
quantity of alcohol specified
in the above rate differs by



121
less than one percent, the
same rate shall be applicable
and where that quantity
differs by more than one
percent, the excise duty shall
be levied and collected as
per the rate that is near and
the highest.
27. Packed raw chewable
tobacco containing lime
2403.91.00 Per
kilogram Rs. 130.00
28. All kinds of jarda and
khaini made from tobacco
2403.91.00 Per
kilogram Rs. 200.00
29. Tooth cleaning material
containing tobacco dust
2403.99.00 Per
kilogram Rs. 190.00
30. Prepared bidi 2403.10.90 Per M Rs. 50.00
31. Pipe tobacco 2403.10.00 Per
kilogram Rs. 525.00
32. All kinds of cigar 2402.10.00 and
2402.90.00 Per stick Rs. 3.00
33. Iron rods 7213 and 6214
(other than sub-
heading
7214.99.10)
Per metric
ton Rs. 1000.00
34. Marble 2516.90.00,
2516.20.00,
2515.12.00,
2515.20.00,
2516.12.00, and
from
6802.21.00.to
Value
percent 5 percent

122
6802.99.00
35. Glaze tiles 6908 Value
percent 5 percent
36. Noodles and their piece,
macaroni, pasta
1902 Per
kilogram Rs. 7.50
37. Meat, Preparations of fish
(canned)
Chapter 16 Value
percent 5 percent
38. Dog and cat feed 2309.10.00 Value
percent 5 percent
39. Cigarettes (all kinds of
cigarettes made from
tobacco)


(1) In up to 70 mm length
(a) Without filter 2402.20.00 Per M Rs. 175.00
(b) With filter 2402.20.00 Per M Rs. 360.00
(2) In more than 70 mm up
to 75 mm length (with
filter)
2402.20.00
Per M Rs. 460.00
(3) In more than 75 mm up
to 85 mm length (with
filter)
2402.20.00
Per M Rs. 600.00
(4) In more than 85 mm
length (with filter)
2402.20.00
Per M Rs. 795.00
40. Cement
(a) Portland cement white
(whether or not colored)
2523.21.00 Per metric
ton Rs. 150.00
(b) Portland cement (brown) 2523.29.00 Per metric
ton Rs. 150.00
(c) Aluminous cement
(Cement Fondu)
2523.30.00 Per metric
ton Rs. 150.00

123
(d) Other hydraulic cement 2523.90.00 Per metric
ton Rs. 150.00
41 All kinds of paints 3208,3209,3210 Value
percent 5 percent
42. All kinds of ceramic bricks
(exceptdomestic production)
6904.10.00 Per
thousand Rs. 525.00
43. Color television 8528.72.00 Value
percent 5 percent
44. Spare-parts of color
television only
8529.90.10 Value
percent 5 percent
45. Picture tube of color
television
8540.11.00 Value
percent 5 percent
46. Motor vehicles
(a) car, Jeep and van
(custom heading 8702
and 8703) and their
chassis (custom heading
8706)

Value
percent 35 percent
(b) Microbus with capacity
of 11-14 seats (customs
heading 8702) and their
chassis (customs heading
8706)

Value
percent 35 percent
(c) Double cab pick up
(customs heading 8704)
and their chassis
(customs heading 8706)

Value
percent 35 percent
(d) Three wheeler (auto
rickshaw) (customs
heading 8703) and their

Value
percent 35 percent

124
chassis thereof (customs
heading 8706)
(e) Single cab pick up
(customs heading 8704)
and chassis thereof
(customs heading 8706)

Value
percent 20 percent
(f) Delivery van (customs
heading 8704) and
chassis thereof(customs
heading 8706)

Value
percent 15 percent
(g) Minibus (with capacity of
15 to 25 seats
(custom sub-heading
87021020)

Value
percent 15 percent
(h) Minibus (with capacity
of 15 to 25 seats
(custom sub-heading
870290.20)

Value
percent 10 percent
(i) Chassis of minibus
(custom heading 8706)
(with capacity of 15 to
25 seats) falling under
custom heading 8702

Value
percent 10 percent
(j) Motor cycle (custom
heading 8711)
Value
percent 10 percent
(1) Notwithstanding anything contained above in the rate of excise
duty, no excise duty shall be levied on ambulances, corpse
carrying vehicles and battery tempos.

125
(2) The Department may, as required and in consultation with the
Customs Department, interpret and specify the harmonized codes
of the products/goods on which excise duty is leviable.
(3) The amount of excise duty on the import of a motor vehicle may
be deducted from the excise duty payable on the sal of that
vehicle.
(4) The raw materials M.S. wire rod in coil under sub-heading No.
7213.91.10 of heading No. 7213 to be imported by an industry
shall be exempted from excise duty.
(5) The Director General may, for statistical purposes, add a digit to
the eight digit sub-heading for the purposes of the rat of excise
duty.
(6) No local production of marble shall be subject to excise duty.

126
Financial Act, 2065 (2008)
Date of Authentication and Publication
2065.6.3 (19 Nov. 2008)
An Act Made to Implement Proposals Relating to Finance of the
Government of Nepal
Preamble: Whereas, it is expedient to levy some charges, taxes, duties, cesses
and fees, continue or alter the existing ones and also to amend the laws in force
relating to revenue administration in order to implement the proposals relating
to finance of the Government of Nepal;
Now, therefore, be it enacted by the Constitution Assembly pursuant to
Sub-articles (1) of Article 83 of Interim Constitution of Nepal,2063 (2006).
1. Short title and commencement: (1) This Act may be called the
“Financial Act, 2065 (2008)."
(2) This Act shall come into force immediately.
38. Amendment to the Excise Duty Act, 2058 (2002): Of the Excise
Duty Act, 2058 (2002):
(1) Of Section 2:
(a) The following clause (g) shall be substituted for clause (g):
"(g) "Production" means the act of manufacturing,
making or preparing a product subject to excise
duty.
(b) The following clause (h1) shall be inserted after clause
(h):

127
“(h1) “Tobacco product” means tobacco or cigarette
containing mixtures of tobacco substance, pan
parag, khaini or similar substance which is chewed
or put in mouth, and this expression also includes
cigarette, bidi, cigar etc.”
(c) The following clause (j) shall be substituted for clause (j):
“(j) "factory price" means the price fixed by adding only
the expenditure incurred in manufacturing a
product subject to excise duty and the profit of the
enterprise, excluding the excise duty or any other
tax chargeable on such product.”
(d) The following clauses (o1), (o2), (o3), (o4), (o5), (o6),
(o7), (o8) and (o9) shall be inserted after clause (o):
(ol) "liquors" means any alcoholic substance prepad
by fermenting any grains, fruits or any other
stratchful substance or by other method, which has
an alcoholic strength by volume of more than o.5
percent, and this expression includes liqueurs,
spirit, country liquor, whisky, rum, gin, brandy,
vodka, beer, wine, sherry, sampan, cider, perry,
mid, malt, industrial alcohol, rectified spirit, malt
spirit, ENA and heads spirit.
(o2) “ready-made liquors” means all kinds of alcoholic
fluids prepared from mixtures with alcoholic
strength by volume of less than 57.06 percent.
(o3) “L.P” means the strength of pure ethanol in
London proof.

128
(o4) “L.P. liter” means the volume of 57.06 percent pure
ethanol per liter.
(05) “U.P.” means the strength less than London proof.
(06) “O.P.” means the strength more than London proof.
(07) "Physical control system" means the system of
production, release, import and export of a product
subject to excise duty under the control of the
Excise Duty Officer or employee designated by him
or her.
(08) "Self-release system" means the system of
production, release, import and export of a product
subject to excise duty other than that based on the
physical control system.
(09) "Determination of excise duty" means the
determination of excise duty made pursuant to this
Act.
(2) The following Section 3 shall be substituted for Section 3:
“3. To levy excise duty: In manufacturing or producing and
discharging from any enterprise, importing any products or
services subject to excise duty and selling any services, the
excise duty as set forth in the Schedule shall be levi d."
(3) The following Sections 3A. and 3B. shall be inserted after
Section 3:
"3A. Determination and recovery of excise duty: (1) The
producer or manufacturer of goods or services subject to

129
excise duty shall be liable to determine and recover th
excise duty under this Act.
Provided that, the concerned Customs Office shall
determine and recover the excise duty of the goods t be
imported.
(2) If any product is subject to excise duty at the
sale and distribution in addition to its production r
importation, the importer or seller shall be liable to
determine and recover the excise duty under this Act.
(3) The excise duty paid on the raw materials used
in the making of a product subject to excise duty may be
deducted from the excise duty to be paid while exporting
the finished product.
(4) The excise duty paid on the purchase or import
of any goods or services subject to excise duty for
commercial purposes may be deducted from the excise
duty payable while selling such goods or services.
(5) The excise duty paid on the goods damaged due
to arson, theft, accident, disruptive act or expiration of
date of goods may be deducted as specified by the
Department.
3B. Not to levy excise duty: (1) No excise duty shall be
levied on any goods or services subject to excise duty
pursuant to Section 3, in the following circumstances.
(a) If any goods or services are exported from
Nepal or any goods other than liquors and
cigarette are sold to a licensed bonded

130
warehouse and duty free shop, on such
goods or services.
Provided that, there shall be furnished
a cash deposit or bank guarantee for the
amount of excise duty leviable on such
goods or service before selling to the duty
free shop or in import.
(b) No excise duty shall be levied on the
cigarette and liquors sold by the licensed
bonded warehouse to any person or body
enjoying diplomatic and tariff privilege, as
recommended by the Government of Nepal,
Ministry of Foreign Affairs.
Provided that:
(1) Nothing contained herein shall bar
the sale and distribution of goods by a
bonded warehouse other than
cigarette and liquors, without
charging excise duty.
(2) In importing any goods subject to
excise duty to be sold by a bonded
warehouse, there shall be furnished a
cash deposit or bank guarantee for the
amount of excise duty leviable on
such goods.
(2) The procedures for the release or refund of
the cash deposit or bank guarantee as referred to in clause

131
(b) of sub-section (1) shall be as prescribed by the
Department.
(3) If any goods manufactured or prepared
within Nepal and already exported from Nepal are re-
imported because of rejection by the concerned party or
other reason, and the same goods are to be exported
within Three months of the import, the goods may be
released against the deposit of the excise duty leviable at
the time of such return, and the deposit shall be refunded
by the concerned Customs Office after the re-export of
such goods."
(4) The following Section 4 shall be substituted for Section 4:
"4. Recovery of excise duty: Except as otherwise provided in
this Act, the excise duty shall be collected on the goods
and services subject to excise duty pursuant to this Act as
follows:
(a) In the case of goods basis on subject to the
physical control system, at the time of
production and discharge from the enterprise
for sale;
(b) In the case of any product and service to be
sold under the automatic discharge system,
at the time of issue of invoice;
(c) In the case of goods to be imported, at the
customs point at the time of entering of such
goods into Nepal;
(d) In the case of exported vehicles for
commercial purpose which are leviable to

132
excise duty, at the time of sale and issuance
of invoice;
(e) In the case of services to be imported, as
prescribed by the Department.
(2) Notwithstanding anything contained in Sub-
section (1), the Department may so prescribe, in the case
of any goods or services, that the excise duty has to be
collected at the time of production of such goods or
delivery of such services."
(5) The following Sections 4A., 4B., 4C. and 4D. shall be inserted
after Section 4:
"4A. Obligation to pay excise duty: The following person
shall be liable to pay the excise duty pursuant to this Act:
(a) In the case of a product or service to be produce
within the country, the producer or manufacturer
thereof;
(b) In the case of a product to be imported, the person
receiving the product as mentioned in the bill of
lading, airway bill.
(c) In the case of auction of a product subject to excise
duty, the person taking over that product;
(d) In the event of resale of any goods, other than
liquors and cigarette sold by a duty free shop or the
use of such goods in other purpose, the person
reselling or reusing them;

133
(e) In the event of conversion of goods from a
condition of being exempted from excise duty into
a condition of being subject to excise duty, the
person who has ownership of such product;
(f) In the circumstances other than those set forth in
Clauses (a) through (e), the person as specified by
the Department.
4B. Time limit for payment of excise duty: (1) The excise
duty recovered pursuant to this Act shall be paid as
follows:
(a) In the case of goods subject to the physical
control system, at the time of discharge of
such goods;
(b) In the case of any goods or services to be
sold under the automatic discharge system,
within the 25th day of the month following
the issue of invoice;
(c) In the case of goods to be imported, at the
time of entering of such goods into Nepal;
(d) In the case of services to be imported, as
prescribed by the Department.
(2) In the event of failure to pay the excise duty
within the time limit as referred to in Clause (b) of Sub-
section (1), there shall be charged a delay fee by 0.05
percent on the due and payable amount per day.

134
4C. Exemption from excise duty: (1) No excise duty shall be
levied on any goods to be imported by a person or body
enjoying diplomatic facility on the recommendation f the
Ministry of Foreign Affairs.
(2) Notwithstanding anything contained in Sub-
section (1), the excise duty shall also be exempted in the
following circumstances:
(a) In transferring any motor vehicles that were
imported by any foreign mission or donor
agency with the enjoyment of the diplomatic
facility or tariff facility to the project itself in
consonance with the approval annual
programme of the project and converting
their number plates into governmental ones
or in transferring, with the approval of the
Ministry of Finance, any motor vehicles that
were imported in the name of any project
with the enjoyment of full or partial tariff
facility (except those imported on inventory
or bank guarantee) to any local body,
community school, community hospital or
governmental body after the completion of
the project;
(b) If any diplomatic body (mission), project or
other body (governmental as well as non-
governmental organization) intends to scrap
and cancel the registration of any motor
vehicle that it has imported with the
enjoyment of the tariff facility and that is

135
more than Fifteen years old after the year of
initial production, with the approval of the
Ministry of Finance, the excise duty shall
not be levied on such a motor vehicle.
(c) If the owner of a motor vehicle imported for
personal use with the enjoyment of partial
customs tariff facility dies and the motor
vehicle has to be transmitted to the husband
or wife of the owner of motor vehicle, the
excise duty shall not be levied on such a
motor vehicle.
4D. Control of sale and distribution: The Government of
Nepal may, if it so considers necessary, control the sale
and distribution of goods subject to excise duty and
manage such sale and distribution as prescribed."
(6) The following Section 7 shall be substituted for Section 7:
"7. Fixation of price of product or service subject to excise
duty: (1) In cases where the excise duty is to be levied on
any product or service according to value (ad valorem),
the excise duty shall be levied taking the following price
as the basis
(a) The factory price which a
manufacturer determines at the time
of selling a product subject to excise
duty;
(b) In the case of service, the price of the
service at the time of selling it; or

136
(c) The price specified by the Department
on the basis of
production/manufacturing cost.
(2) In respect of a product to be imported into
Nepal, the excise duty shall be levied on the price fixed by
adding the customs tariff on such a product to the price
fixed for the purpose of collecting customs tariff.
(3) Excise duty on service shall be collected by
fixing the price as per the invoice.
(4) For purposes of collecting excise duty, the
Department may, as per necessity, re-fix the price or fix
additional price."
(7) The following Section 9 shall be substituted for Section 9:
"9. Provisions relating to license: (1) No one shall
manufacture, import, sell or store a product subject to
excise duty or deliver service subject to excise duty to any
other person, without obtaining the license pursuant to
this Act or the Rules framed under this Act.
Provided that, no excise duty license is required to
import the goods subject to excise duty under the
diplomatic facility on the recommendation of the Ministry
of Foreign Affairs.
(2) A person, firm, company or organization that
intends to obtain the license referred to in sub-section (1)
has to make an application to the Excise Duty Officer for
the license, in such format and accompanied by such fee
as prescribed.

137
(3) In cases where an application is made to the
Excise Duty Officer for the license pursuant to Sub-
section (2), the Department or the Excise Duty Officer
designated by the Department shall issue the license in the
prescribed format if it appears proper upon making
necessary examination on such an application.
(4) The term of the license issued pursuant to Sub-
section (3) shall remain valid until one Fiscal Year.
(5) A licensee who intends to obtain the renewal of
license has to obtain the renewal within the month of
Shrwan after the expiration of the period specified
pursuant to Sub-section (4) by paying the fees as
prescribed.
Provided that, if any licensee so intends, the
licensee may obtain the renewal by for three Fiscal Years
by paying the renewal fees at the same time.
(6) A licensee who fails to obtain the renewal
within the period as referred to in Sub-section (5) has to
pay the fine of Twenty Five percent of the renewal fees for
obtaining the renewal within the first Three months of the
expiration of such a period, that of Fifty percent of the
renewal fees for obtaining the renewal within Three
months thereafter, that of Seventy Five percent of the
renewal fees for obtaining the renewal within Three
months thereafter and that of cent percent of the ren wal
fees for obtaining the renewal within the last day of the
month of Ashad thereafter.

138
(7) If a licensee intends to obtain the renewal of
license after the expiration of the period specified in Sub-
section (6), the licensee may obtain the renewal by paying
the cent percent additional license fees for each Fiscal
Year and due amounts, in addition to the license fees as
prescribed.
(8) If any person does transaction without obtaining
the license as referred to in Sub-section (1), the person
shall not be exempted from the fees chargeable for the
license and for its renewal."
(8) The following Section 10. shall be substituted after Section 10:
10. Power to cancel license: The Department may cancel the
license in the following circumstances:-
(a) In cases where the terms and conditions specified in
the license are found violated,
(b) In cases where it appears to be contrary to public
interest.
(c) Not to pay the leviable excise duty.
(9) The following Sections 10A., 10B., 10C., 10D., 10E., 10F.,
10G., and 10H. shall be inserted after Section 10:
"10A. To furnish excise duty returns: A person who has
obligation to determine and recover the excise pursuant to
Section 3A. has to furnish the returns of transaction
subject to excise duty for each month to the Excise Duty
Officer or the prescribed excise duty returns by a
registered post within Twenty Five days. Such returns have
to be furnished irrespective of whether transaction subject
to excise duty has been carried on in that month or not.

139
10B. To maintain accounts: (1) A person who has obligation
to furnish the excise duty returns pursuant to Section 10A.
has to maintain accounts of the production and saleof
goods or services subject to excise duty, of purchase,
consumption of raw materials, subsidiary raw materils
with specification of their price and quantity and of
closing balance, along with the prescribed details, and
shall provide such details as and when the Excise Duty
Officer so demands for inspection.
(2) The accounts of purchase, production, release,
sale and balance as referred to in Sub-section (1) shall be
got certified by the concerned Excise Duty Officer and
used for the purpose of maintaining accounts.
(3) The licensee has to safely retain the accounts of
transaction for until Six years.
(4) For the implementation of this Act, the Excise
Duty Officer may, by giving a notice in writing, seek
information as to the transaction of goods and servic s
subject to excise duty.
10C. Records processed by computer to be eligible as
evidence: (1) Notwithstanding contained in the laws in
force, the records relating to excise duty of any person
processed by the computer installed in the Department or
offices thereunder or offices designated to administer the
excise duty shall be eligible as evidence for purposes of
excise duty, except as otherwise proved.
(2) The Department may so prescribe that the data
relating to the goods or services subject to excise duty can

140
be automatically retrieved by the Department or the office
designated by the Department.
(3) The Department may make necessary
arrangements on the submission of excise duty returns and
payment of excise duty through electronic medium."
10D. Power of Excise Duty Officer to determine excise duty:
(1) The Excise Duty Officer may determine the excise duty
in any of the following circumstances:
(a) In the event of failure to submit the
excise duty returns within the time
limit,
(b) In the event of submission of
incomplete or erroneous excise duty
returns,
(c) In the event of submission of false
excise duty returns,
(d) In the event of existence of a reliable
ground for the Excise Duty Officer to
believe that lesser amount of excise
duty has been shown or the amount
of excise duty is not accurate,
(e) Where there is a ground and reason
for the Excise Duty Officer to believe
that the sales price has been under-
invoiced and it is necessary to re-
determine the price or to determine
additional price pursuant to Sub-
section (4) of Section 7,

141
(f) If the ceiling of production of goods
or services subject to the excise duty
is specified pursuant to or under this
Act, the production ceiling is not met,
(g) If the difference between the liquors
released and the alcohol content of
waste material or substance if more
than One percent,
(h) In the event of evasion of excise duty,
(i) If any person does transaction of
goods subject to excise duty without
obtaining the license.
Provided that, except in the
condition of Clause (c) and (h),
excise duty shall be assessed within
Four years from the date of
submission of the details of excise
duty.
(2) In determining the excise duty pursuant to Sub-
section (1), the Excise Duty Officer shall give a time-limit
of Fifteen days to the concerned person to defend
him/herself.
(3) The Department may make monitoring of the
determination of excise duty made pursuant to Sub-section
(1). If any error is found upon monitoring, the Department
may order the re-determination of excise duty.

142
(4) The Excise Duty Officer shall have the
following powers for the purposes of determination f
excise duty pursuant to Sub-section (1) or examinatio of
the excise duty returns submitted duty pursuant to Section
10A.:
(a) To examine the goods, places,
documents, accounts and records
related with the liability of excise
duty,
(b) To search the place of transaction of
any person or other places where
evidences related with the acts
deemed offence under this Act can be
found,
(c) To seek information from the persons
who prepare any records, books,
accounts and documents or fill up
details therein in the course of
discharge of their duty,
(d) To take possession of or take
elsewhere any documents, books and
records situated in the place of
transaction of goods and services
subject to excise duty or other place
related thereto,
(e) To make audit of excise duty in the
place of transaction or office or other
appropriate place,

143
(f) The Excise Duty Officer may seek
information of any matter from a bank
or financial institution or any person
in relation to the transaction of goods
and services subject to excise duty.
(5) It shall be the duty of such a bank and financil
institution or person to give information as sought by the
Excise Duty Officer pursuant to this Section.
10E. Power to have expert's service: The Department may
obtain the service of liquor export, brewing expert,
chemical expert and other expert, as required, for the
effective implementation of this Act.
10F. Power to specify ceiling of production of goods and
services subject to excise duty: (1) The rate of
production ceiling of ethanol, spirit or ENA required to be
obtained from grains, molasses or Khudo used by an
industry producing Anhydrous ethanol, rectified spirit or
ENA shall be determined in accordance with the
procedures as prescribed.
(2) If it appears that the production is less than the
rate of ceiling prescribed pursuant to Sub-section (1), the
production of highest quality liquors to be produced by
the industry shall be deemed to have been made from the
ethanol, spirit or ENA in such different quantity.
(3) The Department may specify the rate of ceiling
of production of other goods and services subject to excise
duty.

144
10G. To test the volume of alcohol: The Excise Duty Officer
may at any time test or examine the content of alcohol f
the liquors discharged with approval and of the waste
substance and quality thereof. The alcohol content shall
not be different more than One percent or quality shall not
be altered significantly.
10H. Recovery of due excise duty: If any person does not pay
the excise duty to be paid within the time limit as referred
to in this Act, the concerned Excise Duty Officer my
recover the same by way of any or all of the following
measures:
(a) Deducting the amount, if any, refundable to such a
person,
(b) By having deduction of such amount from the
amount payable by the Government of Nepal or
any corporate body owned by the Government of
Nepal or local body to such a person,
(c) By having deduction of such amount from the
interest of such a person in a bank, financial
institution or other institution,
Explanation: For the purposes of this Clause, the
term 'interest" includes deposits and investments
held in a bank, financial or other institution.
(d) By withholding the sale, export, import and other
business by and of such a person,
(e) By seizing the movable and immovable property of
such a person,

145
(f) By auction selling any or all of the movable and
immovable properties of such person at one time or
at different times as prescribed.
(10) The word "release" shall be substituted for the work "export"
contained in Section 11.
(11) The following provision shall be inserted in Clause (d) of Sub-
section (3) of Section 12:
“Provided that, such suspension shall not exceed seven
days; and decision shall be made no later than Sixty days after
the making of such suspension.”
(12) Of Section 13,
(a) The words "Inland Revenue Office" shall be substituted
for the words "Excise Duty Office" contained in various
places of Sub-section (1).
(b) The following Sub-sections (4) and (5) shall be inserted
after Sub-section (3):
"(4) The Department may give an information
incentive expense of a maximum of Ten Thousand Rupees
as prescribed to a person who provides information of the
offence as referred to in this Section.
(5) The details of the person giving information of
offence pursuant to this Section shall be kept secret."
(13) The words "Inland Revenue Office" shall be substituted for the
words "Excise Duty Office" contained in various places of Sub-
section (1) of Section 14 and the following Clauses (a), (b) and
(c) shall be substituted for Clauses (a), (b) and (c) of the same
Sub-section:

146
"(a) Ten per cent of the amount in controversy to the informer,
(b) Twenty per cent of the amount in controversy to one who
seizes and hands over a product only;
(c) Thirty per cent of the amount in controversy to one who
arrests and hands over the person, along with the proof.
Provided, however, that in cases where the informer who
gives information or clue be more than one person, the
reward shall be divided between them pro rata.”
(14) The words "Inland Revenue Office" shall be substituted for the
words "Excise Duty Office" contained in Section 15:
(15) Of Section 16:
(a) The following Clause (b) shall be substituted for Clause
(b) of Sub-section (1):
“(b) To produce or import a product subject to excise
duty without obtaining the license,”
(b) The following Sub-section (5) shall be inserted after Sub-
section (4):
“(5) Where any person commits any of the following
offences, the Excise Duty Officer may punish such
a person with a fine as follows:
(a) In the event of re-determination of the price
or determination of additional price pursuant
to Sub-section (4) of Section 7, cent percent
amount of the amount of excise duty to be
added,

147
(b) In the event of making sale or storage of
goods or services subject to excise duty
without obtaining the license, from Five
Thousand Rupees to Fifteen Thousand
Rupees.
(c) In the event of violation of the provision of
Section 10A., the amount of 0.05 percent of
the leviable excise duty per day or One
Thousand Rupees for each return, whichever
is the higher.
(d) In the event of failure to maintain updated
accounts as referred to ins Sub-section (1) of
Section 10B., Ten Thousand Rupees and
Five Thousand Rupees for each instance in
the event of no allowing the accounts of
transactions to be inspected,
(e) In the event of violation of Sub-section (2)
of Section 10B., upto Five Thousand
Rupees,
(f) In the event of violation of Sub-section (3) of
Section 10B., Ten Thousand Rupees,
(g) In the event of obstruction in the act as referred to
in Sub-section (3) of Section 10D., Five Thousand
Rupees for each instance,
(h) If, upon examination pursuant to Section 10G., the
difference between the liquors released and the
alcohol content of waste material or substance is

148
more than One percent, cent percent of the amount
of revenue leaked,
(i) If the ceiling of production of goods or services
subject to the excise duty is specified and the
production ceiling is not met, cent percent of the
amount of excise duty to be added,
(j) In the event of violation of Section 4B., Ten
Thousand Rupees for each instance,
(k) In the event of violation of this Act or the Rules
framed under this Act, One Thousand Rupees for
each instance.
(16) The following Section 17A. shall be inserted after Section 17:
“17A. Provision on payment by installment: Where any
taxpayer makes a request in writing for the payment of any
arrear excise duty by installment, permission may be given
to pay the same by installment for One year.”
(17) The following Section 19 shall be substituted for Section 19:
"19. Provisions relating to administrative review and
appeal: (1) A person who is not satisfied with any
decision by the Excise Duty Officer of excise duty
assessment and recovery thereof may make an application
for administrative review to the Department against the
decision within Thirty days of the date of receipt of a
notice of that decision.
Provided that a person may make an appeal in the
Revenue Tribunal against the decision of punishment of

149
imprisonment for any offences as referred to in Sub-
sections (1), (2), (3) and (4) of Section 16.
(2) In cases where the time limit for making
application pursuant to Sub-section (1) expires andy
person makes an application for the extension of time l mit
within Seven days from the date of expiration of the ime
limit, the Department may extend the time limit for a
period not exceeding Thirty days from the date of
expiration of the time limit.
(3) If the claim of the applicant appears to be true
upon examining the evidence and documents including the
application made by the taxpayer pursuant to Sub-section
(1), the Director General may, by executing a
memorandum setting out the clear reasons, void that
excise duty assessment order and direct the concerned
Excise Duty Officer to make re-assessment of excise duty.
(4) The Department shall make decision on the
application within Sixty days after the date of making of
application pursuant to Sub-section (1).
(5) The taxpayer who makes an application
pursuant to sub-section (1) has to pay undisputed amount
of excise duty and amount of fine, out of the amount of
excise duty assessed, and furnish a cash deposit of One
Third of the amount of excise duty in controversy and
amount of fine.
(6) If the Department does not give decision
within the time limit as referred to in Sub-section (4), the
concerned person may appeal in the Revenue Tribunal.
(7) A person who makes an application for
administrative review or an appeal pursuant to this Section

150
shall register a copy of the application or appeal with the
concerned Office no later than Fifteen days.
(8)The implementation of the decision set forth in
sub-section (1) of Section 16 shall not be deemed to have
been affected by the reason of making an application for
administrative review or appeal appeal pursuant to sub-
section (1).”
(18) The following Section 23 shall be substituted for Section 23:
“23. Department to be responsible for implementation and
administration: The Department shall be responsible for
the implementation and administration of this Act.”
(19) The following Section 25A. Shall be inserted after S ction 25:
“25A. Power to frame and issue manual: The Department may
frame and issue necessary Manuals, subject to this Act and
the Rules framed under this Act.”
(20) Section 8 shall be repealed.
(23) The following Schedule shall be inserted in the Excise Duty Act,
2058 (2002):







151





152
Schedule
(Relating to Section 3)
Rate of excise duty
SN Heading/sub-
heading No.
Description of
product/good or
service
Unit Rate of excise
duty
1. 1701.10.00 and
1703.90.00
Molasses
Per quintal Rs. 40.00
2. 1703.11.90 Sakkhhar (Gud), black
Sakhhar, Raskat from
Khandsari (Only on
import) Per quintal Rs. 72.00
3. 3923.10.90 Plastic packing
materials
Value/price
percent 5 percent
3923.21.00 Plastic packing
materials
Value/price
percent 5 percent
3923.29.00 Plastic packing
materials
Value/price
percent 5 percent
3923.90.00 Plastic packing
materials
Value/price
percent 5 percent
6305 Plastic packing
materials
Value/price
percent 5 percent

3926.90.90 Other plastic materials Value/price 5 percent

153
percent
Fruit juices
2009.19.00,
2009.11.00 and
2009.12.00
(a) Orange juice
Per liter Rs. 2.00
2009.29.00 and
2009.21.00
(b) Grape fruit juice
Per liter Rs. 2.00
2009.39.00 and
2009.31.00
(c) Any other citrus
fruit Per liter Rs. 2.00
2009.49.00 and
2009.41.00
(d) Pineapple juice
Per liter Rs. 2.00
2009.69.00,
2009.50.00
and2009.61.00
(e) Tomato juice, grape
juice including grape
must Per liter Rs. 2.00
2009.79.00 and
2009.71.00
(f) Apple juice
Per liter Rs. 2.00
4.
2009.80.00 (g) Juice of nay other
single fruit or
vegetable Per liter Rs. 2.00
2009.90.00 (h) Mixture of juices Per liter Rs.2.00
5. 2106.90.20 Pan Masala and
similar other goods
with or without
nicotine containing Per Kilogram Rs. 230.00

154
lime
6. 1404.90.00 Kattha Per Kilogram Rs. 115.00
7. 2202.90.00 All kinds of non-
alcoholic beverages Per liter Rs. 2.50
8. 2203.00.00 Beer Per liter Rs.60.00
Country beer (chhang) Per liter Rs.20.00
9. 2204.29.00 Wine made in the
country (containing
not more than 12
percent alcohol, made
from Chutro, apple or
Aishalu) or domestic
cider Per liter Rs.50.00
Other beverages than
wine and beer
containing up to 12
percent alcohol(on
import) Per liter Rs.140.00
2204.10.00,
2205.90.00,
2204.21.00,
2204.29.00,
2204.30.00 and
2205.10.00
Wine containing not
more than 12 percent
alcohol (on import)
Per liter Rs.150.00
2204.10.00,
2205.90.00,
Wine containing 12-17
percent alcohol Per liter Rs.150.00

155
2204.21.00,
2204.29.00,
2204.30.00 and
2205.10.00
10. 2204.10.00,
2205.90.00,
2204.21.00,
2204.29.00,
2204.30.00,
2205.10.00 and
2206.00.90
Wine containing more
than 17 percent
alcohol, herbs mixed
liquors, cocktail
(alcoholic/non-
alcoholic/non-
alcoholic mixtures)
and other fermented
liquors Per liter Rs.160.00
11. 2206.00.90 and
2204.10.90
Champagne, sherry,
mead, perry, cider Per liter Rs.160.00
12. 2207.20.00 Denatured spirit
(containing 80-99
percent alcohol) Per liter Rs.33.00
13. 3814.00.00 Thinner, solvent Per liter Rs.22.00
14. 2207.10.00 Anhydrous ethanol
(containing more than
99 percent alcohol) Per liter Rs.6.00
15. All kinds of alcoholic fluids used as raw materials of
liquors containing 57.38 percent to 80 percent alcohol
by volume
2208.20.10 (a) Wine and raw Per liter Rs.108.00

156
materials of brandy
2208.30.10 (b) Raw materials of
whisky Per liter Rs.108.00
2208.40.10 (c) Raw materials of
rum and Tafia Per liter Rs.108.00
2208.50.10 (d) Raw materials of
gin and Geneva Per liter Rs.108.00
2208.60.10 (e) Raw materials of
vodka Per liter Rs.108.00
2208.70.10 (f) Raw materials of
liqueurs and cordials Per liter Rs.108.00

2208.90.10 (g) Raw materials of
other liquors
(including spirit) Per liter Rs.108.00
16. 2207.10.10 Rectified spirits used
as raw materials of
liquors containing
more than 80 percent
alcohol by volume Per liter Rs.33.00
2207.10.10 E.N.A. Per liter Rs.44.00
17. Liquors
2208.20.90 (a) Wine and brandy

157
(1) With 25 U.P.
strength (containing
42.08 percent alcohol
content) Per liter
Per LP liter
Rs. 324.00
or
Rs.
432.00
2208.20.90 (2) With 30 U.P.
strength (containing
39.94 percent alcohol
content)
Per liter
Per LP liter
Rs. 302.00
Rs.432.00
(b) Whisky
2208.30.90 (1) With 25 U.P.
strength (containing
42.8 percent alcohol
content)
Per liter
Per LP liter
Rs.324.00
or
Rs.432.00
2208.30.90 (2) With 30 U.P.
strength (containing
39.94 percent alcohol
content)
Per liter
Per LP liter
Rs. 302.00
Rs.432.00
(c) Rum and Tafia
2208.40.90 (1) With 25 U.P.
strength (containing
42.08 percent alcohol
content)
Per liter
Per LP liter
Rs. 324.00
Rs. 432.00
2208.40.90 (2) With 30 U.P.
strength (containing
Per liter
Per LP liter
Rs. 302.00
Rs. 432.00

158
39.94 percent alcohol
content)
(d) Gin and Geneva
2208.50.90 (1) With 25 U.P.
strength (containing
42.08 percent alcohol
content)
Per liter
Per LP liter
Rs.324.00
Rs. 432.00
2208.50.90 (2) With 30 U.P.
strength (containing
39.94 percent alcohol
content)
Per liter
Per LP liter
Rs. 302.00
Rs. 432.00
(e) Vodka
2208.60.90 (1) With 25 U.P.
strength (containing
42.8 percent alcohol
content)
Per liter
Per LP liter
Rs. 324.00
Rs. 432.00
2208.60.90 (2) With 30 U.P.
strength (containing
39.94 percent alcohol
content)
Per liter
Per LP liter
Rs.302.00
Rs. 432.00
(f) Liquors and
cordials
2208.70.90 (1) With 25 U.P.
strength (containing
42.8 percent alcohol
content)
Per liter
Per LP liter
Rs. 324.00
Rs. 432.00

159
2208.70.90 (2) With 30 U.P.
strength (containing
39.94 percent alcohol
content)
Per liter
Per LP liter
Rs. 302.00
Rs. 432.00
(g) Other liquors
2208.90.90 (1) With 15 U.P.
strength (containing
48.5 percent alcohol
content)
Per liter
Per LP liter
Rs. 434.00
Rs. 511.00
2208.90.90 (2) With 25 U.P.
strength (containing
42.8 percent alcohol
content)
Per liter
Per LP liter
Rs. 324.00
Rs. 432.00
2208.90.90 (3) With 30 U.P.
strength (containing
39.94 percent alcohol
content)
Per liter
Per LP liter
Rs. 302.00
Rs. 432.00
2208.90.90 (4) With 40 U.P.
strength (containing
34.23 percent alcohol
content)
Per liter
Per LP liter
Rs. 152.00
Rs. 254.00
2208.90.90 (5) With 50 U.P.
strength (containing
28.53 percent alcohol
content)
Per liter
Per LP liter
Rs. 57.00
Rs. 114.00
2208.90.90 (6) With 70 U.P. Per liter Rs. 15.00

160
strength (containing
17.12 percent alcohol
content)
Per LP liter Rs. 50.00
Provided that in the case of imported liquors, where the
quantity of alcohol specified in the above rate differs by
less than one percent, the same rate shall be applic ble
and where that quantity differs by more than one
percent, the excise duty shall be levied and collected as
per the rate that is near and the highest.
18. 2401 Only on import of raw
tobacco not packed
(other than that used
as raw materials by
industries) Per kilogram Rs. 50.00
2403.91.00 Packed raw chewable
tobacco containing
lime Per kilogram Rs. 130.00
2403.91.00 All kinds of jarda and
khaini made from
tobacco Per kilogram Rs. 200.00
2403.99.00 Tooth cleaning
material containing
tobacco dust Per kilogram Rs. 190.00
2403.10.90 Prepared bidi Per M Rs. 50.00
2403.10.10 Pipe tobacco Per kilogram Rs. 575.00
19. 2402.10.00 and All kinds of cigar Per stick Rs. 4.00

161
2402.90.00
20. 7213 and 6214
(except sub-
heading
7214.99.10)
Iron rods
Per metric ton Rs. 1000.00
21. 2516.90.00,
2516.20.00,
2515.12.00,
2515.20.00,
2516.12.00, and
from
6802.21.00.to
6802.99.00
Marble
Value percent 5 percent
6908 Glaze tiles Value percent 5 percent
22. 1902 Noodles, macaroni,
pasta Per kilogram Rs. 7.50
2106.90.10 Junk foods (Kurkure,
Kurmure, cheeseballs,
pastry etc.) Per kilogram Rs. 7.50
23. Chapter 16 Preparations of meat,
fish (canned) Value percent 5 percent
2309.10.00 Dog and rat feed Value percent 5 percent
24. Cigarettes (all kinds of
cigarettes made from
tobacco)

162
(1) In up to 70 mm
length
2402.20.00 (a) Without filter Per M Rs. 195.00
2402.20.00 (b) With filter Per M Rs.415.00
2402.20.00 (2) In more than 70
mm up to 75 mm
length (with filter) Per M Rs. 530.00
2402.20.00 (3) In more than 75
mm up to 85 mm
length (with filter) Per M Rs.690.00
2402.20.00 (4) In more than 85
mm length (with filter) Per M Rs. 915.00
25. Cement
2523.21.00 (a) Portland cement
white (whether or not
colored) Per metric ton Rs. 170.00
2523.29.00 (b) Portland cement
(brown) Per metric ton Rs. 170.00
2523.30.00 (c) Aluminous cement Per metric ton Rs. 170.00
2523.90.00 (d) Other hydraulic
cement Per metric ton Rs. 170.00
26. 3208, 3209, 3210 All kinds of paints Value percent 5
27. 6904.10.00 All kinds of ceramic Per thousand Rs. 580.00

163
bricks (other than
domestic production)
28. Motor vehicles
(a) Jeep, car and van
(customs headings
8702 and 8703) and
their chassis (customs
heading 8706) Value percent 45 percent
(b) Microbus (with
capacity of 11-14
seats) (customs
heading 8702) and
chassis
thereof(customs
heading 8706) Value percent 35 percent
(c) Double cab pick up
(customs heading
8704) and chassis
thereof(customs
heading 8706) Value percent 35 percent
(d) Three wheeler
(auto rickshaw)
(customs heading
8703) and chassis
thereof(customs
heading 8706) Value percent 35 percent
(e) Single cab pick up Value percent 30 percent

164
(customs heading
8704) and chassis
thereof(customs
heading 8706)
(f) Delivery van
(customs heading
8704) and chassis
thereof(customs
heading 8706) Value percent 25 percent
(g) Minibus (with
capacity of 15 to 25
seats( custom sub-
heading 870210.20) Value percent 25 percent
(h) Minibus (with
capacity of 15 to 25
seats( custom sub-
heading 870290.20) Value percent 20 percent
(i) Chassis of minibus
(custom heading 8706)
(with capacity of 15 to
25 seats) falling under
custom heading 8702 Value percent 20 percent
(j) Buses and trucks
(customs heading
8702, 8794) and their
chassis (customs
heading 8706) Value percent 5 percent

165
(k) Motor cycle
(custom heading 8711) Value percent 15 percent
29. 84.43 Plates, cylinders, and printing machinery used for
printing other than those of heading 84.42, other
printing machines, copying machines, fax machines,
whether installed or not, and their parts and accessories
Other printers, copying machines, fax machines,
whether installed or not
8443.31.00 Out of the printers,
copying machines and
fax machines, those
with two or more than
two multiple functions
and of such nature as
can be linked to or
installed with
automated data
processing machine or
network Value percent 10
8443.39.00 Others Value percent 10
30 84.72 Other office machines (for example, hectograph or
stencil duplicating machine, addressing machines,
automatic banknote dispensers, coin-sorting machines,
coin-counting or wrapping machines, pencil sharpening
machines, perforating or stapling machines)
8472.90.00 Others Value percent 15

166
31. 84.79 Machines and mechanical appliances having individual
functions, not specified or included elsewhere in this
Chapter
Others
8479.89.90 Others Value percent 10
32. 85.17 Telephone sets, including telephones used for cellular
networks or other cordless networks, equipment to
broadcast or transmit or store sound, images or other
data, appliances used in line or cordless network for
communication in (such as local or wide area network),
communication or transmission or store equipment
under headings 84.43, 84.25, 85.27 or 85.28
Equipment to broadcast or transmit or store sound,
images, including equipment used in line or cordless
network for communication in (such as local or wide
area network)
8517.61.10 Base stations Value percent 5
8517.62.00 Machines/equipment
to store, change,
reproduce and transmit
sounds, images or
other data, including
switching and routing
equipment Value percent 5
8517.69.00 Others Value percent 5

167
8517.70.00 Parts Value percent 5
32. 85.18 Microphone and stands thereof, loudspeakers, whether
or not mounted in their enclosures, headphones and
earphones, whether or not combined with a
microphone, and sets consisting of a microphone and
one or more loudspeakers, audio-frequency electric
amplifiers, electric sound amplifier sets
8518.18.00 Microphones and their
stands
Loudspeakers, whether
or not mounted in their
enclosures Value percent 5
8518.29.00 Others Value percent 5
34. 85.23 Records, tapes and other recorded media for sound or
other similarly recorded phenomena, including matrices
and masters for the production of records, but
excluding products of Chapter 37
Magnetic means
8523.29.90 Others Value percent 5
8523.40.00 Optical means Value percent 5
8523.51.00 Solid state non-volatile
storage equipment Value percent 5

168
8523.52.00 Smart cards Value percent 5
8523.59.00 Others Value percent 5
8523.80.00 Others Value percent 5
35. 85.25 Transmission apparatus for radio-telephony, radio-
telegraphy, radio broadcasting or television, whether or
not incorporating reception apparatus or sound
recording or reproducing apparatus, television camer s,
still image video cameras and other video camera
recorders, digital cameras
8525.60.00 Transmission
apparatus
incorporating
reception apparatus Value percent 5
8525.80.00 Television cameras,
digital cameras and
video camera recorders Value percent 5
36. 85.28 Reception apparatus for television, whether or not
incorporating radio-broadcast receivers or sound or
video recording or reproducing apparatus, video
monitors and video projectors
Projectors
8528.61.00 Apparatus of such kind
as to be solely or
principally used in the Value percent 10

169
automated data
processing system of
heading 84.71
37. 8528.72.00 Color television Value percent 5
8540.11.00 Picture tubes of color
television Value percent 5
38. 85.29 Parts suitable for use
solely or principally
with the apparatus of
headings of 85.25 to
85.28
Others
8529.90.10 Of television receiver Value percent 15
39. 85.31 Electric sound or
visual signaling
apparatus (for
example, bells, sirens,
indicator panels,
burglar or fire alarms)
other than those of
Heading 85.12 or
85.30
8531.20.00 Indicator panels
incorporating liquid
crystal devices (LCD)
or light emitting diodes Value percent 10

170
(LED)
8531.90.00 Spare parts Value percent 10
40. 85.32 Electrical capacitors.
Fixed variable or
adjustable (preset)
8532.10.00 Fixed capacitors
designed for use in
50/60 HZ circuits and
having a reactive
power handling
capacity of not less
than 0.5 kvar (power
capacitors) Value percent 10
Other capacitors
8532.21.00 Tantalum Value percent 10
8532.22.00 Aluminium electrolytic Value percent 10
8532.23.00 Ceramic dielectric,
single layer Value percent 10
8532.24.00 Ceramic dielectric,
multiple layer Value percent 10
8532.25.00 Dielectric of paper or
plastics Value percent 10
8532.29.00 Others Value percent 10

171
8532.30.00 Variable or adjustable
(preset)capacitors Value percent 10
8532.90.00 Parts Value percent 10
41. 85.33 Electrical resistors
(including rheostats
and potentiometers),
other than heating
resistors
8533.10.00 Fixed carbon resistors,
composition or films Value percent 10
Other fixed resistors
8533.21.00 For a power handling
capacity not exceeding
20W Value percent 10
8533.29.00 Others Value percent 10
Other variable
resistors, including
rheostats and
potentiometers
8533.31.00 For a power handling
capacity not exceeding
20W Value percent 10
8533.39.00 Others Value percent 10

172
8533.40.00 Other variable
resistors, including
rheostats and
potentiometers Value percent 10
8533.90.00 Parts Value percent 10
8534.00.00 Printed circuits Value percent 10
42. 85.36 Electrical apparatus for switching or protecting
electrical circuits or for making connections to or in
electrical circuits (for example, stitches, relays, fu es,
surge suppression, plugs, sockets, lamp-holders,
junction boxes, for a voltage not exceeding 1,000 volts
8536.50.00 Other switches Value percent 10
Lamp-holders, plugs
and sockets
8536.69.00 Others Value percent 10
8536.90.00 Other equipment Value percent 10
43. 85.44 Insulated (including enameled or anodized) wire, cable
(including co-axical cable) and other insulated electric
conductors, whether or not fitted with connectors,
optical fibre cables, made up of individually sheathed
fibres, whether or not assembled with electric
conductors or fitted with connectors
Other electric

173
conductors, for a
voltage not exceeding
80 v
8544.42.00 Connected with
conductors Value percent 15
8544.49.00 Others Value percent 15
8544.70.00 Optical fibre cable Value percent 10
44. 90.10 Apparatus and equipment for photographic (including
cinematographic) laboratories, not specified or included
elsewhere in this Chapter; negatoscopes, projection
screens
9010.90.00 Parts and accessories Value percent 10
45. 90.11 Compound optical microscopes, including those for
microphotography microcinematography or
microprojection
9011.10.00 Stereoscopic
microscopes Value percent 5
9011.20.00 Other microscopes for
microphotography
microcinematography
or microprojection Value percent 5
9011.90.00 Parts and accessories Value percent 5
46. 90.12 Microscopes other

174
than optical
microscopes,
diffraction apparatus
9012.10.00 Microscopes other
than optical
microscopes,
diffraction apparatus Value percent 5
9012.90.00 Parts and accessories Value percent 5
47. 90.17 Drawing, marking out or mathematical calculating
instruments (for example, drafting machines,
pantographics, protractors, drawing sets, slide ruls,
disc calculators), instruments for measuring length, for
use in the land 9for example, measuring rods and tapes,
micrometers, calipers) not specified or included
elsewhere in this Chapter
9017.20.00 Other drawing,
marking-out or
mathematical
calculating instruments Value percent 5
9017.90.00 Parts and accessories Value percent 5
48. 90.26 Instruments and apparatus for measuring or checking
the flow, level, pressure or other variables of liquids or
gases (for example, flow meters, level gauges,
manometers, heat meters), excluding instruments and
apparatus of heading 90.14, 90.15, 90.28 or 90.32

175
9026.10.00 For measuring or
checking the flow or
level of liquids Value percent 5
9026.20.00 For measuring or
checking pressure Value percent 5
9026.80 Other instruments or
apparatus Value percent 5
9026.90.00 Parts and accessories Value percent 5
49. 90.27 Instruments and apparatus for physical or chemical
analysis (for example, polarimeters, refractometers,
spectrometers, gas or smoke analysis apparatus),
instrument and apparatus for measuring or checking
viscosity, porosity, expansion, surface tension or the
like, instruments and apparatus for measuring or
checking quantities or heat, sound or light (including
exposure meters), microtomes
9027.20.00 Chromatographs and
electrophoresis
instruments Value percent 5
9027.50.00 Other instruments and
apparatus using optical
radiators (UV, visible,
IR) Value percent 5
9027.80.00 Other instruments or
apparatus Value percent 5

176
50. 90.30 Oscilloscopes, spectrum analyzers and other
instruments and apparatus for measuring or checking
electrical quantities, excluding meters of heading
number 90.28, instruments and apparatus for measuring
or detecting alpha, beta, gamma, X-ray, cosmic or other
lonising radiators
9030.40.00 Other instruments and
apparatus, specially
designed for
telecommunications
(for example, cross-
talk meters, gain
measuring instruments,
distortion factor
meters, psophometers) Value percent 5
9030.90.00 Parts and accessories Value percent 5

Note:
(1) Notwithstanding anything contained above in therate of excise
duty, no excise duty shall be levied on the chassis of ambulances,
corpse carrying vehicles and battery tempos.
(2) The Department may, as required and in consultation with the
Customs Department, interpret and specify the harmonized codes
of the products/goods on which excise duty is leviable.

177
(3) The amount of excise duty on the import of a motor vehicle may
be deducted from the excise duty payable on the sal of that
vehicle.

(4) Exemption of excise duty shall be granted, on the
recommendation of the Department of Industries, to the raw
maters imported by industries and used to produce goods as
referred to in sub-heading 7213.91.10 of heading 7213.
(5) The Director General may, for statistical purposes, add a digit to
the eight digit sub-heading for the purposes of the rat of excise
duty.
(6) In the event of cocktail of any liquors, the rate of tariff set forth
in serial number 10 shall be applicable.
(7) No local production of marble shall be subject to excise duty.

(8) excise duty shall be levied on the goods of personal use imported
enjoying the customs duty exemption facility under the Luggage
and Baggage Order Facility.
Financial Act, 2066 (2010)
Date of Authentication and Publication
2066.3.29 (13 July 2009)
An Act Made to Implement Proposals Relating to Finance of the
Government of Nepal

178
Preamble: Whereas, it is expedient to levy some charges, taxes, duties, cesses
and fees, continue or alter the existing ones and also to amend the laws in force
relating to revenue administration in order to implement the proposals relating
to finance of the Government of Nepal;
Now, therefore, be it enacted by the Constitution Assembly pursuant to
Sub-articles (1) of Article 83 of Interim Constitution of Nepal,2063 (2007).
1. Short title and commencement: (1) This Act may be called the
“Financial Act, 2067 (2010)."
(2) Sections 1, 2, 3, 4, 5 and 10 of this Act shall be deemed to have
come into force immediately and the other Sections 1 Shrwan
2066(17 July 2009).
30. Amendment to the Excise Duty Act, 2058 (2002): Of the Excise
Duty Act, 2058(2002):
(1) Of Section 2:
(a) The following Clause (g) shall be substituted for Clause
(g):
"(g) "Production" means the act of manufacturing,
making or preparing a product subject to excise
duty.
(b) The following Clause (h1) shall be inserted after Clause
(h):
“(h1) “Tobacco product” means tobacco or cigarette
containing mixtures of tobacco substance, pan
parag, khaini or similar substance which is chewed

179
or put in mouth, and this expression also includes
cigarette, bidi, cigar etc.”
(c) The following Clause (j) shall be substituted for Clause (j):
“(j) "factory price" means the price fixed by adding only
the expenditure incurred in manufacturing a
product subject to excise duty and the profit of the
enterprise, excluding the excise duty or any other
tax chargeable on such product.”
(d) The following Sub-clause (3) shall be substituted for Sub-
clause (3) of Clause (k):
"(3) price fixed as per Sub-section (2) of Section 7, in
the case of a product to be imported."
(e) The following Clauses (o1), (o2), (o3), (o4), (o5), (o6),
(o7), (o8) and (o9) shall be inserted after Clause (o):
(ol) "liquors" means any alcoholic substance prepard
by fermenting any grains, fruits or any other
stratchful substance or by other method, which has
an alcoholic strength by volume of more than o.5
percent, and this expression includes liqueurs,
spirit, country liquor, whisky, rum, gin, brandy,
vodka, beer, wine, sherry, sampan, cider, perry,
mid, malt, industrial alcohol, rectified spirit, malt
spirit, ENA and heads spirit.
(o2) “ready-made liquors” means all kinds of alcoholic
fluids prepared from mixtures with alcoholic
strength by volume of less than 57.06 percent.

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(o3) “L.P” means the strength of pure ethanol in
London proof.
(o4) “L.P. liter” means the volume of 57.06 percent pure
ethanol per liter.
(05) “U.P.” means the strength less than London proof.
(06) “O.P.” means the strength more than London proof.
(07) "Physical control system" means the system of
production, release, import and export of a product
subject to excise duty under the control of the
Excise Duty Officer or employee designated by him
or her.
(08) "Self-release system" means the system of
production, release, import and export of a product
subject to excise duty other than that based on the
physical control system.
(09) "Determination of excise duty" means the
determination of excise duty made pursuant to this
Act.
(2) The following Section 3 shall be substituted for Section 3:
“3. To levy excise duty: In manufacturing or producing and
discharging from any enterprise, importing any products or
services subject to excise duty and selling any services, the
excise duty as set forth in the Schedule shall be levi d."
(3) The following Sections 3A. and 3B. shall be inserted after
Section 3:

181
"3A. Determination and recovery of excise duty: (1) The
producer or manufacturer of goods or services subject to
excise duty shall be liable to determine and recover th
excise duty under this Act.
Provided that, the concerned Customs Office shall
determine and recover the excise duty of the goods t be
imported.
(2) If any product is subject to excise duty at the
sale and distribution in addition to its production r
importation, the importer or seller shall be liable to
determine and recover the excise duty under this Act.
(3) The excise duty paid on the raw materials used
in the making of a product subject to excise duty may be
deducted from the excise duty to be paid while exporting
the finished product.
Provided that, the excise duty paid by any industry
subject to the self-release system on the purchase or
import of raw materials may be deducted from the excis
duty payable while selling the finished product.
(4) The excise duty paid on the purchase or import
of any goods or services subject to excise duty for
commercial purposes may be deducted from the excise
duty payable while selling such goods or services.
(5) The excise duty paid on the goods damaged due
to arson, theft, accident, disruptive act or expiration of
date of goods may be deducted as specified by the
Department.

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3B. Not to levy excise duty: (1) No excise duty shall be
levied on any goods or services subject to excise duty
pursuant to Section 3, in the following circumstances.
(a) If any goods or services are exported from
Nepal or any goods other than liquors and
cigarette are sold to a licensed bonded
warehouse and duty free shop, on such
goods or services.
(b) No excise duty shall be levied on the
cigarette and liquors sold by the licensed
bonded warehouse to any person or body
enjoying diplomatic and tariff privilege, as
recommended by the Government of Nepal,
Ministry of Foreign Affairs.
Provided that:
(1) Nothing contained herein shall bar
the sale and distribution of goods by a
bonded warehouse other than
cigarette and liquors, without
charging excise duty.
(2) In importing any goods subject to
excise duty to be sold by a bonded
warehouse, there shall be furnished a
cash deposit or bank guarantee for the
amount of excise duty leviable on
such goods.

183
(2) The procedures for the release or refund of
the cash deposit or bank guarantee as referred to in Clause
(b) of Sub-section (1) shall be as prescribed by the
Department.
(3) If any goods manufactured or prepared
within Nepal and already exported from Nepal are re-
imported because of rejection by the concerned party or
other reason, and the same goods are to be exported
within Three months of the import, the goods may be
released against the deposit of the excise duty leviable at
the time of such return, and the deposit shall be refunded
by the concerned Customs Office after the re-export of
such goods."
(4) The following Section 4 shall be substituted for Section 4:
"4. Recovery of excise duty: Except as otherwise provided in
this Act, the excise duty shall be collected on the goods
and services subject to excise duty pursuant to this Act as
follows:
(a) In the case of goods produced by an industry
subject to the physical control system, at the
time of production and discharge from the
enterprise for sale;
(b) In the case of any product and service to be
sold under the automatic discharge system,
at the time of issue of invoice;

184
(c) In the case of goods to be imported, at the
customs point at the time of entering of such
goods into Nepal;
(d) In the case of services to be imported, as
prescribed by the Department.
(2) Notwithstanding anything contained in Sub-section
(1), the Department may so prescribe, in the case of any goods or
services, that the excise duty has to be collected a the time of
production of such goods or delivery of such servics."
(5) The following Sections 4A., 4B., 4C. and 4D. shall be inserted
after Section 4:
"4A. Obligation to pay excise duty: The following person
shall be liable to pay the excise duty pursuant to this Act:
(a) In the case of a product or service to be produce
within the country, the producer or manufacturer
thereof;
(b) In the case of a product to be imported, the person
receiving the product as mentioned in the bill of
lading, airway bill.
(c) In the case of auction of a product subject to excise
duty, the person taking over that product;
(d) In the event of resale of any goods, other than
liquors and cigarette sold by a duty free shop or the
use of such goods in other purpose, the person
reselling or reusing them;

185
(e) In the event of conversion of goods from a
condition of being exempted from excise duty into
a condition of being subject to excise duty, the
person who has ownership of such product;
(f) In the circumstances other than those set forth in
Clauses (a) through (e), the person as specified by
the Department.
4B. Time limit for payment of excise duty: (1) The excise
duty recovered pursuant to this Act shall be paid as
follows:
(a) In the case of goods subject to the physical
control system, at the time of discharge of
such goods;
(b) In the case of any goods or services to be
sold under the automatic discharge system,
within the 25th day of the month following
the issue of invoice;
(c) In the case of goods to be imported, at the
time of entering of such goods into Nepal;
(d) In the case of services to be imported, as
prescribed by the Department.
(2) In the event of failure to pay the excise duty
within the time limit as referred to in Clause (b) of Sub-
section (1), there shall be charged a delay fee by 0.05
percent on the due and payable amount per day.

186
4C. Exemption from excise duty: (1) No excise duty shall be
levied on any goods to be imported by a person or body
enjoying diplomatic facility on the recommendation f the
Ministry of Foreign Affairs.
(2) Notwithstanding anything contained in Sub-
section (1), the excise duty shall also be exempted in the
following circumstances:
(a) In transferring any motor vehicles that were
imported by any foreign mission or donor
agency with the enjoyment of the diplomatic
facility or tariff facility to the project itself in
consonance with the approval annual
programme of the project and converting
their number plates into governmental ones
or in transferring, with the approval of the
Ministry of Finance, any motor vehicles that
were imported in the name of any project
with the enjoyment of full or partial tariff
facility (except those imported on inventory
or bank guarantee) to any local body,
community school, community hospital or
governmental body after the completion of
the project;
(b) If any diplomatic body (mission), project or
other body (governmental as well as non-
governmental organization) intends to scrap
and cancel the registration of any motor
vehicle that it has imported with the
enjoyment of the tariff facility and that is

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more than Fifteen years old after the year of
initial production, with the approval of the
Ministry of Finance, the excise duty shall
not be levied on such a motor vehicle.
(c) If the owner of a motor vehicle imported for
personal use with the enjoyment of partial
customs tariff facility dies and the motor
vehicle has to be transmitted to the husband
or wife of the owner of motor vehicle, the
excise duty shall not be levied on such a
motor vehicle.
4D. Control of sale and distribution: The Government of
Nepal may, if it so considers necessary, control the sale
and distribution of goods subject to excise duty and
manage such sale and distribution as prescribed."
(6) The following Section 7 shall be substituted for Section 7:
"7. Fixation of price of product or service subject to excise
duty: (1) In cases where the excise duty is to be levied on
any product or service according to value (ad valorem),
the excise duty shall be levied taking the following price
as the basis:-
(a) The factory price which a
manufacturer determines at the time
of selling a product subject to excise
duty;
(b) In the case of service, the price of the
service at the time of selling it; or

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(c) The price specified by the Department
on the basis of production/
manufacturing cost.
(2) In respect of a product to be imported into
Nepal, the excise duty shall be levied on the price fixed by
adding the customs tariff on such a product to the price
fixed for the purpose of collecting customs tariff.
(3) Excise duty on service shall be collected by
fixing the price as per the invoice.
(4) For purposes of collecting excise duty, the
Department may, as per necessity, re-fix the price or fix
additional price."
(7) The following Section 9 shall be substituted for Section 9:
"9. Provisions relating to license: (1) No one shall
manufacture, import, sell or store a product subject to
excise duty or deliver service subject to excise duty to any
other person, without obtaining the license pursuant to
this Act or the Rules framed under this Act.
Provided that, no excise duty license is required to
manufacture, import, sell or store a product subject to
excise duty or deliver service subject to excise duty by an
industry subject to automatic release system, except the
manufacturing of bricks, stone crusher, bidi, tobacco,
khaini, pan masala, gudkha, khandsari industry and
import of molasses and Gund and import of goods subject
to excise duty under the diplomatic facility on the
recommendation of the Ministry of Foreign Affairs.

189
(2) A person, firm, company or organization that
intends to obtain the license referred to in Sub-section (1)
has to make an application to the Excise Duty Officer for
the license, in such format and accompanied by suchfee
as prescribed.
(3) In cases where an application is made to the
Excise Duty Officer for the license pursuant to Sub-
section (2), the Department or the Excise Duty Officer
designated by the Department shall issue the license in the
prescribed format if it appears proper upon making
necessary examination on such an application.
(4) The term of the license issued pursuant to Sub-
section (3) shall remain valid until one Fiscal Year.
(5) A licensee who intends to obtain the renewal of
license has to obtain the renewal within the month of
Shrawan after the expiration of the period specified
pursuant to Sub-section (4) by paying the fees as
prescribed.
Provided that, if any licensee so intends, the
licensee may obtain the renewal by for three Fiscal Years
by paying the renewal fees at the same time.
(6) A licensee who fails to obtain the renewal
within the period as referred to in Sub-section (5) has to
pay the fine of Twenty Five percent of the renewal fees for
obtaining the renewal within the first Three months of the
expiration of such a period, that of Fifty percent of the
renewal fees for obtaining the renewal within Three
months thereafter, that of Seventy Five percent of the

190
renewal fees for obtaining the renewal within Three
months thereafter and that of cent percent of the ren wal
fees for obtaining the renewal within the last day of the
month of Ashad thereafter.
(7) If a licensee intends to obtain the renewal of
license after the expiration of the period specified in Sub-
section (6), the licensee may obtain the renewal by paying
the cent percent additional license fees for each Fiscal
Year and due amounts, in addition to the license fees as
prescribed.
(8) If any person does transaction without obtaining
the license as referred to in Sub-section (1), the person
shall not be exempted from the fees chargeable for the
license and for its renewal."
(8) The following Section 10. shall be substituted after Section 10:
10. Power to cancel license: The Department may cancel the
license in the following circumstances:-
(a) In cases where the terms and conditions specified in
the license are found violated,
(b) In cases where it appears to be contrary to public
interest.
(c) Not to pay the leviable excise duty.
(9 ) The following Sections 10A., 10B., 10C., 10D., 10E., 10F.,
10G., 10H. and 10I shall be inserted after Section 10:
"10A. To furnish excise duty returns: A person who has
obligation to determine and recover the excise pursuant to

191
Section 3A. has to furnish the returns of transaction
subject to excise duty for each month to the Excise Duty
Officer or the prescribed excise duty returns by a
registered post within Twenty Five days. Such returns have
to be furnished irrespective of whether transaction subject
to excise duty has been carried on in that month or not.
10B. To maintain accounts: (1) A person who has obligation
to furnish the excise duty returns pursuant to Section 10A.
has to maintain accounts of the production and saleof
goods or services subject to excise duty, of purchase,
consumption of raw materials, subsidiary raw materils
with specification of their price and quantity and of
closing balance, along with the prescribed details, and
shall provide such details as and when the Excise Duty
Officer so demands for inspection.
(2) The accounts of purchase, production, release,
sale and balance as referred to in Sub-section (1) shall be
got certified by the concerned Excise Duty Officer and
used for the purpose of maintaining accounts.
(3) The licensee has to safely retain the accounts of
transaction for until Six years.
(4) For the implementation of this Act, the Excise
Duty Officer may, by giving a notice in writing, seek
information as to the transaction of goods and servic s
subject to excise duty.
10C. Records processed by computer to be eligible as
evidence: (1) Notwithstanding contained in the laws
prevailing, the records relating to excise duty of any

192
person processed by the computer installed in the
Department or offices thereunder or offices designated to
administer the excise duty shall be eligible as evid nce for
purposes of excise duty, except as otherwise proved.
(2) The Department may so prescribe that the data
relating to the goods or services subject to excise duty can
be automatically retrieved by the Department or the office
designated by the Department.
(3) The Department may make necessary
arrangements on the submission of excise duty returns and
payment of excise duty through electronic medium."
10D. Power of Excise Duty Officer to determine excise duty:
(1) The Excise Duty Officer may determine the excise duty
in any of the following circumstances:
(a) In the event of failure to submit the
excise duty returns within the time
limit,
(b) In the event of submission of
incomplete or erroneous excise duty
returns,
(c) In the event of submission of false
excise duty returns,
(d) In the event of existence of a reliable
ground for the Excise Duty Officer to
believe that lesser amount of excise
duty has been shown or the amount
of excise duty is not accurate,

193
(e) Where there is a ground and reason
for the Excise Duty Officer to believe
that the sales price has been under-
invoiced and it is necessary to re-
determine the price or to determine
additional price pursuant to Sub-
section (4) of Section 7,
(f) If the ceiling of production of goods
or services subject to the excise duty
is specified pursuant to or under this
Act, the production ceiling is not met,
(g) If the difference between the liquors
released and the alcohol content of
waste material or substance if more
than One percent,
(h) In the event of evasion of excise duty,
(i) If any person does transaction of
goods subject to excise duty without
obtaining the license.
Provided that, except in the
condition of Clause (c) and (h),
excise duty shall be assessed within
Four years from the date of
submission of the details of excise
duty.
(2) In determining the excise duty pursuant to Sub-
section (1), the Excise Duty Officer shall give a time-limit

194
of Fifteen days to the concerned person to defend
him/herself.
(3) The Department may make monitoring of the
determination of excise duty made pursuant to Sub-section
(1). If any error is found upon monitoring, the Department
may order the redetermination of excise duty.
(4) The Excise Duty Officer shall have the
following powers for the purposes of determination f
excise duty pursuant to Sub-section (1) or examinatio of
the excise duty returns submitted duty pursuant to Section
10A.:
(a) To examine the goods, places, documents,
accounts and records related with the
liability of excise duty,
(b) To search the place of transaction of
any person or other places where
evidences related with the acts
deemed offence under this Act can be
found,
(c) To seek information from the persons
who prepare any records, books,
accounts and documents or fill up
details therein in the course of
discharge of their duty,
(d) To take possession of or take
elsewhere any documents, books and
records situated in the place of

195
transaction of goods and services
subject to excise duty or other place
related thereto,
(e) To make audit of excise duty in the
place of transaction or office or other
appropriate place,
(f) The Excise Duty Officer may seek
information of any matter from a bank
or financial institution or any person
in relation to the transaction of goods
and services subject to excise duty.
(5) It shall be the duty of such a bank and
financial institution or person to give information as
sought by the Excise Duty Officer pursuant to this Section.
10E. Power to have expert's service: The Department may
obtain the service of liquor export, brewing expert,
chemical expert and other expert, as required, for the
effective implementation of this Act.
10F. Power to specify ceiling of production of goods and
services subject to excise duty: (1) The rate of
production ceiling of ethanol, spirit or ENA required to be
obtained from grains, molasses or Khudo used by an
industry producing Anhydrous ethanol, rectified spirit or
ENA shall be determined in accordance with the
procedures as prescribed.
(2) If it appears that the production is less than the
rate of ceiling prescribed pursuant to Sub-section (1), the

196
production of highest quality liquors to be produced by
the industry shall be deemed to have been made from the
ethanol, spirit or ENA in such different quantity.
(3) The Department may specify the rate of ceiling
of production of other goods and services subject to excise
duty.
10G. To test the volume of alcohol: The Excise Duty Officer
may at any time test or examine the content of alcohol f
the liquors discharged with approval and of the waste
substance and quality thereof. The alcohol content shall
not be different more than One percent or quality shall not
be altered significantly.
10H. Recovery of due excise duty: If any person does not pay
the excise duty to be paid within the time limit as referred
to in this Act, the concerned Excise Duty Officer my
recover the same by way of any or all of the following
measures:
(g) Deducting the amount, if any, refundable to such a
person,
(h) By having deduction of such amount from the
amount payable by the Government of Nepal or
any corporate body owned by the Government of
Nepal or local body to such a person,
(i) By having deduction of such amount from the
interest of such a person in a bank, financial
institution or other institution,

197
Explanation: For the purposes of this Clause, the
term 'interest" includes deposits and investments
held in a bank, financial or other institution.
(j) By withholding the sale, export, import and other
business by and of such a person,
(k) By seizing the movable and immovable property of
such a person,
(l) By auction selling any or all of the movable and
immovable properties of such person at one time or
at different times as prescribed.
10I. Delay fee: In the event of failure of a person to pay the
excise duty within the time limit as referred to in this Act
after the determination of the excise duty or for any other
reason, except a circumstance as referred to in Clause (a)
of Sub-section (1) of Section 4, there shall be charged a
delay fee by 0.05 percent on the due and payable amount
of excise duty per day."
(10) The word "release" shall be substituted for the work "export"
contained in Section 11.
(11) The following proviso shall be inserted in Clause (d) of Sub-
section (3) of Section 12:
“Provided that such suspension shall not exceed seven
days; and decision shall be made no later than Sixty days after
the making of such suspension.”
(12) Of Section 13,

198
(a) The words "Inland Revenue Office" shall be substituted
for the words "Excise Duty Office" contained in various
places of Sub-section (1).
(b) The following Sub-sections (4) and (5) shall be inserted
after Sub-section (3):
"(4) The Department may give an information
incentive expense of a maximum of Ten Thousand Rupees
as prescribed to a person who provides information of the
offence as referred to in this Section.
(5) The details of the person giving information of
offence pursuant to this Section shall be kept secret."
(13) The words "Inland Revenue Office" shall be substituted for the
words "Excise Duty Office" contained in various places of Sub-
section (1) of Section 14 and the following Clauses (a), (b) and
(c) shall be substituted for Clauses (a), (b) and (c) of the same
Sub-section:
"(a) Ten per cent of the amount in controversy to the informer,
(b) Twenty per cent of the amount in controversy to one who
seizes and hands over a product only;
(c) Thirty per cent of the amount in controversy to one who
arrests and hands over the person, along with the proof.
Provided that, in cases where the informer who
gives information or clue be more than one person, the
reward shall be divided between them pro rata.”
(14) The words "Inland Revenue Office" shall be substituted for the
words "Excise Duty Office" contained in Section 15:

199
(15) Of Section 16:
(a) The following Clause (b) shall be substituted for Clause
(b) of Sub-section (1):
“(b) To produce or import a product subject to excise
duty without obtaining the license,”
(b) The following Sub-section (5) shall be inserted after Sub-
section (4):
“(5) where any person commits any of the following
offences, the Excise Duty Officer may punish such
a person with a fine as follows:
(l) In the event of re-determination of the price
or determination of additional price pursuant
to Sub-section (4) of Section 7, cent percent
amount of the amount of excise duty to be
added,
(m) In the event of making sale or storage of
goods or services subject to excise duty
without obtaining the license, from Five
Thousand Rupees to Fifteen Thousand
Rupees.
(n) In the event of violation of the provision of
Section 10A., the amount of 0.05 percent of
the leviable excise duty per day or One
Thousand Rupees for each return, whichever
is the higher.

200
(o) In the event of failure to maintain updated
accounts as referred to ins Sub-section (1) of
Section 10B., Ten Thousand Rupees and
Five Thousand Rupees for each instance in
the event of no allowing the accounts of
transactions to be inspected,
(p) In the event of violation of Sub-section (2)
of Section 10B., upto Five Thousand
Rupees,
(q) In the event of violation of Sub-section (3)
of Section 10B., Ten Thousand Rupees,
(r) In the event of obstruction in the act as
referred to in Sub-section (3) of Section
10D., Five Thousand Rupees for each
instance,
(s) If, upon examination pursuant to Section
10G., the difference between the liquors
released and the alcohol content of waste
material or substance is more than One
percent, cent percent of the amount of
revenue leaked,
(t) If the ceiling of production of goods or
services subject to the excise duty is
specified and the production ceiling is not
met, cent percent of the amount of excise
duty to be added,

201
(u) In the event of violation of Section 4B., Ten
Thousand Rupees for each instance,
(v) In the event of violation of this Act or the
Rules framed under this Act, One Thousand
Rupees for each instance.
(16) The following Section 17A. shall be inserted after Section 17:
“17A. Provision on payment by installment: Where any
taxpayer makes a request in writing for the payment of any
arrear excise duty by installment, permission may be given
to pay the same by installment for One year.”
(17) The following Section 19 shall be substituted for Section 19:
"19. Provisions relating to administrative review and
appeal: (1) A person who is not satisfied with any
decision by the Excise Duty Officer of excise duty
assessment and recovery thereof may make an application
for administrative review to the Department against the
decision within Thirty days of the date of receipt of a
notice of that decision.
Provided that, a person may make an appeal in the
Revenue Tribunal against the decision of punishment of
imprisonment for any offences as referred to in Sub-
sections (1), (2), (3) and (4) of Section 16.
(2) In cases where the time limit for making
application pursuant to Sub-section (1) expires andy
person makes an application for the extension of time l mit
within Seven days from the date of expiration of the ime
limit, the Department may extend the time limit for a

202
period not exceeding Thirty days from the date of
expiration of the time limit.
(3) If the claim of the applicant appears to be true
upon examining the evidence and documents including the
application made by the taxpayer pursuant to Sub-section
(1), the Director General may, by executing a
memorandum setting out the clear reasons, void that
excise duty assessment order and direct the concerned
Excise Duty Officer to make re-assessment of excise duty.
(4) The Department shall make decision on the
application within Sixty days after the date of making of
application pursuant to Sub-section (1).
(5) The taxpayer who makes an application
pursuant to Sub-section (1) has to pay undisputed amount
of excise duty and amount of fine, out of the amount of
excise duty assessed, and furnish a cash deposit of One
Third of the amount of excise duty in controversy and
amount of fine.
(6) If the Department does not give decision within
the time limit as referred to in Sub-section (4), the
concerned person may, after the expiration of that ime-
limit, make an appeal to the Revenue Tribunal or if the
person is not satisfied with the decision made by the
Department, the person may make such an appeal in the
Revenue Tribunal within Thirty Five days after the date of
receipt of notice of the decision.
(7) A person who makes an application for
administrative review or an appeal pursuant to this Section

203
shall register a copy of the application or appeal with the
concerned Office no later than Fifteen days.
(8) The implementation of the decision set forth in
Sub-section (1) of Section 16 shall not be deemed to have
been affected by the reason of making an application for
administrative review or appeal pursuant to Sub-section
(1).”
(18) The following Section 22A. shall be inserted after Section 22:
“22A. Deemed to be excise duty: Any charge, delay fee or fine
imposable pursuant to this Act shall be deemed to be the
excise duty imposable pursuant to this Act.”
(19) The following Section 23 shall be substituted for Section 23:
“23. Department to be responsible for implementation and
administration: The Department shall be responsible for
the implementation and administration of this Act.”
(20) The following Section 25A. shall be inserted after S ction 25:
“25A. Power to frame and issue manual: The Department may
frame and issue necessary Manuals, subject to this Act
and the Rules framed under this Act.”
(21) The following Schedule shall be inserted in the Excise Duty Act,
2058 (2002):




204






Schedule
(Relating to Section 3)
Rate of excise duty
SN Heading/sub-
heading No.
Description of
product/good or service
Unit Rate of excise
duty
1. 1703.10.00
and
1703.90.00
Khudo (Molasses) Per quintal Rs. 40.00
2. 1701.11.90 Sakkhhar (Gud), black
Sakhhar, Raskat from
Khandsari (0nly on
import)
Per quintal Rs. 72.00
Under 3923 Plastic packing materials Value/price
percent
5 percent
3920, 3921 Plastic Seats Value/price
percent
5 percent
3.
3926.90.90 Other plastic materials Value/price
percent
5 percent
4. Fruit juices

205
2009.19.00,
2009.11.00
and
2009.12.00
(a) Orange juice Per liter Rs. 2.00
2009.29.00
and
2009.21.00
(b) Grape fruit juice Per liter Rs. 2.00
2009.39.00
and
2009.31.00
(c) Any other citrus fruit Per liter Rs. 2.00
2009.49.00
and
2009.41.00
(d) Pineapple juice Per liter Rs. 2.00
2009.69.00,
2009.50.00
and2009.61.00
(e) Tomato juice, grape
juice including grape
must
Per liter Rs. 2.00
2009.79.00
and
2009.71.00
(f) Apple juice Per liter Rs. 2.00
2009.80.00 (g) Juice of any other
single fruit or vegetable
Per liter Rs. 2.00
2009.90.00 (h) Mixture of juices Per liter Rs.2.00
5. 2106.90.20 Pan Masala and similar
other goods with or
without nicotine
containing lime
Per
Kilogram
Rs. 230.00
Kattha Per
Kilogram
Rs. 115.00 6. 1404.90.00
kattha juices Per
Kilogram
Rs. 25.00

206
7. 2202.90.00 All kinds of non-
alcoholic beverages
Per liter Rs. 2.50
8. 2203.00.00 Beer Per liter Rs.65.00
Country beer (Chhang) Per liter Rs.20.00
9. 2204.29.00 Wine made in the
country (containing not
more than 12 percent
alcohol, made from
Chutro, apple or
Aishalu) or domestic
cider
Per liter Rs.50.00
Other beverages than
wine and beer containing
up to 12 percent
alcohol(on import)
Per liter Rs.150.00
2204.10.00,
2205.90.00,
2204.21.00,
2204.29.00,
2204.30.00
and
2205.10.00
Wine containing not
more than 12 percent
alcohol (on import)
Per liter Rs.150.00
2204.10.00,
2205.90.00,
2204.21.00,
2204.29.00,
2204.30.00
and
2205.10.00
Wine containing 12-17
percent alcohol
Per liter Rs.150.00
10. 2204.10.00, Wine containing more Per liter Rs.170 00

207
2205.90.00,
2204.21.00,
2204.29.00,
2204.30.00,
2205.10.00
and
2206.00.90
than 17 percent alcohol,
herbs mixed liquors,
cocktail (alcoholic/non-
alcoholic/non-alcoholic
mixtures) and other
fermented liquors
11. 2206.00.90
and
2204.10.90
Sampan, sherry, mead,
perry, cider
Per liter Rs.170.00
12. 2207.20.00 Denatured spirit
(containing 80-99
percent alcohol)
Per liter Rs.10.00
13. 3814.00.00 Thinner, solvent Per liter Rs.22.00
14. 2207.10.00 Anhydrous ethanol
(containing more than 99
percent alcohol)
Per liter Rs.6.00
15. All kinds of alcoholic
fluids used as raw
materials of liquors
containing 57.38 percent
to 80 percent alcohol by
volume

2208.20.10 (a) Wine and raw
materials of brandy
Per liter Rs.108.00
2208.30.10 (b) Raw materials of
whisky
Per liter Rs.108.00
2208.40.10 (c) Raw materials of rum
and Tafia
Per liter Rs.108.00
2208.50.10 (d) Raw materials of gin Per liter Rs.108.00

208
and Geneva
2208.60.10 (e) Raw materials of
vodka
Per liter Rs.108.00
2208.70.10 (f) Raw materials of
liqueurs and cordials
Per liter Rs.108.00

2208.90.10 (g) Raw materials of
other liquors (including
spirit)
Per liter Rs.108.00
16. 2207.10.10 Rectified spirits used as
raw materials of liquors
containing more than 80
percent alcohol by
volume
Per liter Rs.33.00
2207.10.10 E.N.A. Per liter Rs.44.00
17. Liquors
2208.20.90 (a) Wine and brandy
(1) With 25 U.P. strength
(containing 42.08 percent
alcohol content)
Per liter
Per LP liter
Rs. 347.00
or Rs.462.00
2208.20.90 (2) With 30 U.P. strength
(containing 39.94 percent
alcohol content)
Per liter
Per LP liter
Rs. 324.00
or Rs.462.00
(b) Whisky
2208.30.90 (1) With 25 U.P. strength
(containing 42.8 percent
alcohol content)
Per liter
Per LP liter
Rs.347.00
or Rs.462.00
2208.30.90 (2) With 30 U.P. strength
(containing 39.94 percent
alcohol content)
Per liter
Per LP liter
Rs. 324.00
or Rs.462.00

209
(c) Rum and Tafia
2208.40.90 (1) With 25 U.P. strength
(containing 42.08 percent
alcohol content)
Per liter
Per LP liter
Rs. 347.00
or Rs. 462.00
2208.40.90 (2) With 30 U.P. strength
(containing 39.94 percent
alcohol content)
Per liter
Per LP liter
Rs. 324.00
or Rs. 462.00
(d) Gin and Geneva
2208.50.90 (1) With 25 U.P. strength
(containing 42.08 percent
alcohol content)
Per liter
Per LP liter
Rs.347.00
or Rs. 462.00
2208.50.90 (2) With 30 U.P. strength
(containing 39.94 percent
alcohol content)
Per liter
Per LP liter
Rs. 324.00
or Rs. 462.00
(e) Vodka
2208.60.90 (1) With 25 U.P. strength
(containing 42.8 percent
alcohol content)
Per liter
Per LP liter
Rs. 347.00
or Rs. 462.00
2208.60.90 (2) With 30 U.P. strength
(containing 39.94 percent
alcohol content)
Per liter
Per LP liter
Rs.324.00
or Rs. 462.00
(f) Liquors and cordials
2208.70.90 (1) With 25 U.P. strength
(containing 42.8 percent
alcohol content)
Per liter
Per LP liter
Rs. 347.00
or Rs. 462.00
2208.70.90 (2) With 30 U.P. strength
(containing 39.94 percent
alcohol content)
Per liter
Per LP liter
Rs. 324.00
or Rs. 462.00
(g) Other liquors
2208.90.90 (1) With 15 U.P. strength Per liter Rs. 465.00

210
(containing 48.5 percent
alcohol content)
Per LP liter or Rs. 547.00
2208.90.90 (2) With 25 U.P. strength
(containing 42.8 percent
alcohol content)
Per liter
Per LP liter
Rs. 347.00
or Rs. 462.00
2208.90.90 (3) With 30 U.P. strength
(containing 39.94 percent
alcohol content)
Per liter
Per LP liter
Rs. 324.00 or
Rs. 462.00
2208.90.90 (4) With 40 U.P. strength
(containing 34.23 percent
alcohol content)
Per liter
Per LP liter
Rs. 164.00 or
Rs. 272.00
2208.90.90 (5) With 50 U.P. strength
(containing 28.53 percent
alcohol content)
Per liter
Per LP liter
Rs. 57.00
or Rs. 114.00
2208.90.90 (6) With 70 U.P. strength
(containing 17.12 percent
alcohol content)
Per liter
Per LP liter
Rs. 15.00
or Rs. 50.00
Provided that, in the case of imported liquors, where the quantity of alcohol
specified in the above rate differs by less than one percent, the same rate
shall be applicable and where that quantity differs by more than one
percent, the excise duty shall be levied and collected as per the rate that is
near and the highest.
18. 2401 Only on import of raw
tobacco not packed
(other than that used as
raw materials by
industries)
Per kilogram Rs. 50.00
2403.91.00 Packed raw chewable
tobacco containing lime
Per kilogram Rs. 130.00
2403.91.00 All kinds of jarda and Per kilogram Rs. 200.00

211
khaini made from
tobacco
2403.99.00 Tooth cleaning material
containing tobacco dust
Per kilogram Rs. 190.00
2403.10.90 Prepared bidi Per M Rs. 50.00
2403.10.10 Pipe tobacco Per kilogram Rs. 575.00
19. 2402.10.00
and
2402.90.00
All kinds of cigar Per stick Rs. 5.00
20. 7213 and 6214
(except sub-
heading
7214.99.10)
Iron rods Per metric ton Rs. 1000.00
21. 2516.90.00,
2516.20.00,
2515.12.00,
2515.20.00,
2516.12.00,
and from
6802.21.00.to
6802.99.00
Marble Value percent 5 percent
6908 Glaze tiles Value percent 5 percent
22. 1902 Noodles, macaroni, pasta Per kilogram Rs. 7.50
2106.90.10 Junk foods (Kurkure,
Kurmure, cheeseballs,
pastry etc.)
Per kilogram Rs. 7.50
23. Chapter 16 Preparations of meat, fish
(canned)
Value percent 5 percent
2309.10.00 Dog and cat feed Value percent 5 percent
24. Cigarettes (all kinds of cigarettes made from tbacco)

212
(1) In up to 70 mm length
2402.20.00 (a) Without filter Per M Rs.
210.00
2402.20.00 (b) With filter Per M Rs.445.
00
2402.20.00 (2) In more than 70 mm up
to 75 mm length (with
filter)
Per M Rs.
570.00
2402.20.00 (3) In more than 75 mm up
to 85 mm length (with
filter)
Per M Rs.730.
00
2402.20.00 (4) In more than 85 mm
length (with filter)
Per M Rs.
950.00
25. Cement
2523.21.00 (a) Portland cement white
(whether or not colored)
Per metric ton Rs.
170.00
2523.29.00 (b) Portland cement
(brown)
Per metric ton Rs.
170.00
2523.30.00 (c) Aluminous cement Per metric ton Rs.
170.00
2523.90.00 (d) Other hydraulic cement Per metric ton Rs.
170.00
26. 3208, 3209,
3210
All kinds of paints Value percent 5
27. 6904.10.00 All kinds of ceramic bricks
(other than domestic
production)
Per thousand Rs.
580.00
28. Motor vehicles
(a) Jeep, car and van
(customs headings 8702 and
Value percent 50

213
8703) and their chassis
(customs heading 8706)
(b) Microbus (with capacity
of 11-14 seats) (customs
heading 8702) and chassis
thereof(customs heading
8706)
Value percent 50
(c) Double cab pick up
(customs heading 8704) and
chassis thereof(customs
heading 8706)
Value percent 50
(d) Three wheeler (auto
rickshaw) (customs heading
8703) and chassis
thereof(customs heading
8706)
Value percent 50
(e) Single cab pick up
(customs heading 8704) and
chassis thereof(customs
heading 8706)
Value percent 45
(f) Delivery van (customs
heading 8704) and chassis
thereof(customs heading
8706)
Value percent 25
(g) Minibus (with capacity
of 15 to 25 seats( custom
sub-heading 870210.20)
Value percent 30
(h) Minibus (with capacity
of 15 to 25 seats( custom
sub-heading 870290.20)
Value percent 30

214
(i) Chassis of minibus
(custom heading 8706)
(with capacity of 15 to 25
seats) falling under custom
heading 8702
Value percent 30
(j) Buses and trucks
(customs heading 8702,
8794) and their chassis
(customs heading 8706)
Value percent 5
(k) Motor cycle (custom
heading 8711)
Value percent 30
29. 84.43 Plates, cylinders, and printing machinery used for printing
other than those of heading 84.42, other printing
machines, copying machines, fax machines, whether
installed or not, and their parts and accessories
Other printers, copying machines, fax machines, whether
installed or not
8443.31.00 Out of the printers, copying
machines and fax machines,
those with two or more than
two multiple functions and of
such nature as can be linked to
or installed with automated
data processing machine or
network
Value percent 10
8443.39.00 Others Value percent 10
30 84.72 Other office machines (for example, hectograph or stencil
duplicating machine, addressing machines, automatic
banknote dispensers, coin-sorting machines, coin-counting
or wrapping machines, pencil sharpening machines,

215
perforating or stapling machines)
8472.90.00 Others Value percent 15
31. 84.79 Machines and mechanical appliances having individual
functions, not specified or included elsewhere in this
Chapter
Others
8479.89.90 Others Value percent 10
32. 85.17 Telephone sets, including telephones used for cellular
networks or other cordless networks, equipment to
broadcast or transmit or store sound, images or other data,
appliances used in line or cordless network for
communication in (such as local or wide area network),
communication or transmission or store equipment under
headings 84.43, 84.25, 85.27 or 85.28
Equipment to broadcast or transmit or store sound,
images, including equipment used in line or cordless
network for communication in (such as local or wide ar a
network)
8517.61.10 Base stations Value percent 5
8517.62.00 Machines/equipment to store,
change, reproduce and
transmit sounds, images or
other data, including switching
and routing equipment
Value percent 5
8517.69.00 Others Value percent 5
8517.70.00 Parts Value percent 5
32. 85.18 Microphone and stands thereof, loudspeakers, whether or
not mounted in their enclosures, headphones and
earphones, whether or not combined with a microphone,
and sets consisting of a microphone and one or more

216
loudspeakers, audio-frequency electric amplifiers, lectric
sound amplifier sets
8518.18.00 Microphones and their
stands
Value percent 5
Loudspeakers, whether or
not mounted in their
enclosures

8518.29.00 Others Value percent 5
34. 85.23 Records, tapes and other recorded media for sound or
other similarly recorded phenomena, including matrices
and masters for the production of records, but excluding
products of Chapter 37
Magnetic means
8523.29.90 Others Value percent 5
8523.40.00 Optical means Value percent 5
8523.51.00 Solid state non-volatile
storage equipment
Value percent 5
8523.52.00 Smart cards Value percent 5
8523.59.00 Others Value percent 5
8523.80.00 Others Value percent 5
35. 85.25 Transmission apparatus for radio-telephony, radio-
telegraphy, radio broadcasting or television, whether or
not incorporating reception apparatus or sound recording
or reproducing apparatus, television cameras, still image
video cameras and other video camera recorders, digital
cameras
8525.60.00 Transmission apparatus
incorporating reception
apparatus
Value percent 5

217
8525.80.00 Television cameras, digital
cameras and video camera
recorders
Value percent 5
36. 85.28 Reception apparatus for television, whether or not
incorporating radio-broadcast receivers or sound or video
recording or reproducing apparatus, video monitors and
video projectors
Projectors
8528.61.00 Apparatus of such kind as to be
solely or principally used in the
automated data processing
system of heading 84.71
Value percent 10
37. 8528.72.00 Color television Value percent 5
8540.11.00 Picture tubes of color television Value percent 5
38. 85.29 Parts suitable for use solely or
principally with the apparatus
of headings of 85.25 to 85.28

Others
8529.90.10 Of television receiver Value percent 15
39. 85.31 Electric sound or visual signaling apparatus (for example,
bells, sirens, indicator panels, burglar or fire alarms) other
than those of Heading 85.12 or 85.30
8531.20.00 Indicator panels incorporating
liquid crystal devices (LCD) or
light emitting diodes (LED)
Value percent 10
8531.90.00 Spare parts Value percent 10
40. 85.32 Electrical capacitors. Fixed variable or adjustable (preset)
8532.10.00 Fixed capacitors designed for
use in 50/60 HZ circuits and
having a reactive power
Value percent 10

218
handling capacity of not less
than 0.5 kvar (power
capacitors)
Other capacitors
8532.21.00 Tantalum Value percent 10
8532.22.00 Aluminium electrolytic Value percent 10
8532.23.00 Ceramic dielectric, single layer Value percent 10
8532.24.00 Ceramic dielectric, multiple
layer
Value percent 10
8532.25.00 Dielectric of paper or plastics Value percent 10
8532.29.00 Others Value percent 10
8532.30.00 Variable or adjustable
(preset)capacitors
Value percent 10
8532.90.00 Parts Value percent 10
41. 85.33 Electrical resistors (including rheostats and
potentiometers), other than heating resistors
8533.10.00 Fixed carbon resistors,
composition or films
Value percent 10
Other fixed resistors
8533.21.00 For a power handling capacity
not exceeding 20W
Value percent 10
8533.29.00 Others Value percent 10
Other variable resistors,
including rheostats and
potentiometers

8533.31.00 For a power handling capacity
not exceeding 20W
Value percent 10
8533.39.00 Others Value percent 10
8533.40.00 Other variable resistors,
including rheostats and
Value percent 10

219
potentiometers
8533.90.00 Parts Value percent 10
8534.00.00 Printed circuits Value percent 10
42. 85.36 Electrical apparatus for switching or protecting electrical
circuits or for making connections to or in electrical
circuits (for example, stitches, relays, fuses, surge
suppression, plugs, sockets, lamp-holders, junction boxes,
for a voltage not exceeding 1,000 volts
8536.50.00 Other switches Value percent 10
Lamp-holders, plugs and
sockets

8536.69.00 Others Value percent 10
8536.90.00 Other equipment Value percent 10
43. 85.44 Insulated (including enameled or anodized) wire, cable
(including co-axical cable) and other insulated electric
conductors, whether or not fitted with connectors, ptical
fibre cables, made up of individually sheathed fibres,
whether or not assembled with electric conductors or
fitted with connectors
Other electric conductors, for a voltage not exceding
1000v
8544.42.00 Connected with conductors Value percent 15
8544.49.00 Others Value percent 15
8544.70.00 Optical fiber cable Value percent 10
44. 90.10 Apparatus and equipment for photographic (in luding
cinematographic) laboratories, not specified or included
elsewhere in this Chapter; negatoscopes, projection
screens
9010.90.00 Parts and accessories Value percent 10
45. 90.11 Compound optical microscopes, including those for

220
microphotography micro-cinematography or micro-
projection
9011.10.00 Stereoscopic microscopes Value percent 5
9011.20.00 Other microscopes for
microphotography
microcinematography or
microprojection
Value percent 5
9011.90.00 Parts and accessories Value percent 5
46. 90.12 Microscopes other than optical
microscopes, diffraction
apparatus

9012.10.00 Microscopes other than optical
microscopes, diffraction
apparatus
Value percent 5
9012.90.00 Parts and accessories Value percent 5
47. 90.17 Drawing, marking out or mathematical calculating
instruments (for example, drafting machines,
pantographics, protractors, drawing sets, slide ruls, disc
calculators), instruments for measuring length, for use in
the land 9for example, measuring rods and tapes,
micrometers, calipers) not specified or included elsewhere
in this Chapter
9017.20.00 Other drawing, marking-out or
mathematical calculating
instruments
Value percent 5
9017.90.00 Parts and accessories Value percent 5
48. 90.26 Instruments and apparatus for measuring o checking the
flow, level, pressure or other variables of liquids or gases
(for example, flow meters, level gauges, manometers, heat
meters), excluding instruments and apparatus of heading

221
90.14, 90.15, 90.28 or 90.32
9026.10.00 For measuring or checking the
flow or level of liquids
Value percent 5
9026.20.00 For measuring or checking
pressure Value percent 5
9026.80 Other instruments or apparatus Value percent 5
9026.90.00 Parts and accessories Value percent 5
49. 90.27 Instruments and apparatus for physical or chemical
analysis (for example, polarimeters, refractometers,
spectrometers, gas or smoke analysis apparatus),
instrument and apparatus for measuring or checking
viscosity, porosity, expansion, surface tension or the like,
instruments and apparatus for measuring or checking
quantities or heat, sound or light (including exposure
meters), microtomes
9027.20.00 Chromatographs and
electrophoresis instruments
Value percent 5
9027.50.00 Other instruments and apparatus
using optical radiators (UV,
visible, IR)
Value percent 5
9027.80.00 Other instruments or apparatus Value percent 5
50. 90.30 Oscilloscopes, spectrum analyzers and other instruments
and apparatus for measuring or checking electrical
quantities, excluding meters of heading number 90.28,
instruments and apparatus for measuring or detecting
alpha, beta, gamma, X-ray, cosmic or other lonising
radiators
9030.40.00 Other instruments and
apparatus, specially designed
for telecommunications (for
Value
percent 5

222
example, cross-talk meters,
gain measuring instruments,
distortion factor meters,
psophometers)
9030.90.00 Parts and accessories Value
percent 5

Note:
(1) Notwithstanding anything contained above in therate of excise
duty, no excise duty shall be levied on the chassis of ambulances,
corpse carrying vehicles and battery tempos.
(2) The Department may, as required and in consultation with the
Customs Department, interpret and specify the harmonized codes
of the products/goods on which excise duty is leviable.
(3) The procedures of collection of the excise duty leviable on the
motor vehicles purchased and in stock until Fiscal Year
2065/066 shall be as mentioned in the Finance Act, 2065.
(4) Exemption of excise duty shall be granted, on the
recommendation of the Department of Industries, to the raw
maters imported by industries and used to produce goods as
referred to in sub-heading 7213.91.10 of heading 72.13.
(5) The Director General may, for statistical purposes, add a digit to
the eight digit sub-heading for the purposes of the rat of excise
duty.
(6) In the event of cocktail of any liquors, the rate of tariff set forth
in serial number 10 shall be applicable.

223
(7) Prepared liquors of 70 UP strength may be made by using
rectified spirit of serial number 16 only.
(8) No local production of marble shall be subject to excise duty.
(9) Excise duty shall be levied on the goods of personal use imported
enjoying the customs duty exemption facility under the Luggage
and Baggage Order Facility.
(10) Fifteen Percent Excise duty shall be levied to the local
production of motor cycles.
(11) No excise duty shall be levied on the electric motor vehicles.
Financial Act, 2067 (2011)
Date of Authentication and Publication
2067.11.03 (15 Feb.2011)
An Act Made to Implement Proposals Relating to Finance of the
Government of Nepal
Preamble: Whereas, it is expedient to levy some charges, taxes, duties, cesses
and fees, continue or alter the existing ones and also to amend the laws in force
relating to revenue administration in order to implement the proposals relating
to finance of the Government of Nepal;
Now, therefore, be it enacted by the Constitution Assembly pursuant to
Sub-articles (1) of Article 83 of Interim Constitution of Nepal,2063 (2007).
1. Short title and commencement: (1) This Act may be called the
“Financial Act, 2067 (2011)."
(2) This Act shall come into force immediately.

224
31. Amendment to the Excise Duty Act, 2058 (2002): Of the Excise
Duty Act, 2058(2002):
(1) Of Section 2:
(a) The following Clause (g) shall be substituted for Clause (g):
"(g) "Production" means the act of manufacturing, making
or preparing a product subject to excise duty.
(b) The following Clause (h1) shall be inserted after Clause
(h):
“(h1) “Tobacco product” means tobacco or cigarette
containing mixtures of tobacco substance, pan
parag, khaini or similar substance which is chewed
or put in mouth, and this expression also includes
cigarette, bidi, cigar etc.”
(c) The following Clause (j) shall be substituted for Clause (j):
“(j) "Factory price" means the price fixed by adding
only the expenditure incurred in manufacturing a
product subject to excise duty and the profit of the
enterprise, excluding the excise duty or any other
tax chargeable on such product.”
(d) The following Sub-clause (3) shall be substituted for Sub-
clause (3) of Clause (k):
"(3) Price fixed as per Sub-section (2) of Section 7, in
the case of a product to be imported."
(e) The following Clauses (o1), (o2), (o3), (o4), (o5), (o6),
(o7), (o8) and (o9) shall be inserted after Clause (o):

225
(ol) "Liquors" means any alcoholic substance prepard
by fermenting any grains, fruits or any other
stratchful substance or by other method, which has
an alcoholic strength by volume of more than o.5
percent, and this expression includes liqueurs,
spirit, country liquor, whisky, rum, gin, brandy,
vodka, beer, wine, sherry, sampange, cider, perry,
mid, malt, industrial alcohol, rectified spirit, malt
spirit, cylend spirit, denatured spirit, ENA and
heads spirit.
(o2) “Ready-made liquors” means all kinds of alcoholic
fluids prepared from mixtures with alcoholic
strength by volume of less than 57.06 percent.
(o3) “L.P” means the strength of pure ethanol in
London proof.
(o4) “L.P. liter” means the volume of 57.06 percent pure
ethanol per liter.
(05) “U.P.” means the strength less than London proof.
(06) “O.P.” means the strength more than London proof.
(07) "Physical control system" means the system of
production, release, import and export of a product
subject to excise duty under the control of the
Excise Duty Officer or employee designated by him
or her.
(08) "Self-release system" means the system of
production, release, import and export of a product

226
subject to excise duty other than that based on the
physical control system.
(09) "Determination of excise duty" means the
determination of excise duty made pursuant to this
Act.
(2) The following Section 3 shall be substituted for Section 3:
“3. To levy excise duty: In manufacturing or producing and
discharging from any enterprise, importing any products or
services subject to excise duty and selling any services, the
excise duty as set forth in the Schedule shall be levi d."
(3) The following Sections 3A. and 3B. shall be inserted after
Section 3:
"3A. Determination and recovery of excise duty: (1) The
producer or manufacturer of goods or services subject to
excise duty shall be liable to determine and recover th
excise duty under this Act.
Provided that, the concerned Customs Office shall
determine and recover the excise duty of the goods t be
imported.
(2)If any product is subject to excise duty at the
sale and distribution in addition to its production r
importation, the importer or seller shall be liable to
determine and recover the excise duty under this Act.
(3) The excise duty paid on the raw materials used
in the making of a product subject to excise duty may be

227
deducted from the excise duty to be paid while exporting
the finished product.
Provided that, the excise duty paid by any industry
subject to the self-release system on the purchase or
import of raw materials may be deducted from the excis
duty payable while selling the finished product.
(4) The excise duty paid on the purchase or import
of any goods or services subject to excise duty for
commercial purposes may be deducted from the excise
duty payable while selling such goods or services.
(5) The excise duty paid on the goods damaged due
to arson, theft, accident, disruptive act or expiration of
date of goods may be deducted as specified by the
Department.
3B. Not to levy excise duty: (1) No excise duty shall be
levied on any goods or services subject to excise duty
pursuant to Section 3, in the following circumstances.
(a) If any goods or services are exported
from Nepal or any goods other than
liquors and cigarette are sold to a
licensed bonded warehouse and duty
free shop, on such goods or services.
(b) No excise duty shall be levied on the
cigarette and liquors sold by the
licensed bonded warehouse to any
person or body enjoying diplomatic
and tariff privilege, as recommended

228
by the Government of Nepal, Ministry
of Foreign Affairs.
Provided that:
(1) Nothing contained herein shall
bar the sale and distribution of
goods by a bonded warehouse
other than cigarette and
liquors, without charging
excise duty.
(2) In importing any goods subject
to excise duty to be sold by a
bonded warehouse, there shall
be furnished a cash deposit or
bank guarantee for the amount
of excise duty leviable on such
goods.
(2) The procedures for the release or refund of the
cash deposit or bank guarantee as referred to in Clause (b)
of Sub-section (1) shall be as prescribed by the
Department.
(3) If any goods manufactured or prepared within
Nepal and already exported from Nepal are re-imported
because of rejection by the concerned party or other
reason, and the same goods are to be exported within
Three months of the import, the goods may be releasd
against the deposit of the excise duty leviable at the time
of such return, and the deposit shall be refunded by the

229
concerned Customs Office after the re-export of such
goods."
(4) The following Section 4 shall be substituted for Section 4:
"4. Recovery of excise duty: Except as otherwise provided in
this Act, the excise duty shall be collected on the goods
and services subject to excise duty pursuant to this Act as
follows:
(a) In the case of goods produced by an industry
subject to the physical control system, at the time
of production and discharge from the enterprise for
sale;
(b) In the case of any product and service to be sold
under the automatic discharge system, at the time of
issue of invoice;
(c) In the case of goods to be imported, at the custom
point at the time of entering of such goods into
Nepal;
(d) In the case of services to be imported, as prescribed
by the Department.
(2) Notwithstanding anything contained in Sub-section
(1), the Department may so prescribe, in the case of
any goods or services, that the excise duty has to be
collected at the time of production of such goods or
delivery of such services."
(5) The following Sections 4A., 4B., 4C. and 4D. shall be inserted
after Section 4:

230
"4A. Obligation to pay excise duty: The following person
shall be liable to pay the excise duty pursuant to this Act:
(a) In the case of a product or service to be produce
within the country, the producer thereof;
(b) In the case of a product to be imported, the person
receiving the product as mentioned in the bill of
lading, airway bill, invoice or application made for
examination and clearance;
(c) In the case of auction of a product subject to excise
duty, the person taking over that product;
(d) In the event of resale of any goods, other than
liquors and cigarette sold by a duty free shop or the
use of such goods in other purpose, the person
reselling or reusing them;
(e) In the event of conversion of goods from a
condition of being exempted from excise duty into
a condition of being subject to excise duty, the
person who has ownership of such product;
(f) In the circumstances other than those set forth in
Clauses (a) through (e), the person as specified by
the Department.
4B. Time limit for payment of excise duty: (1) The excise
duty recovered pursuant to this Act shall be paid as
follows:

231
(a) In the case of goods subject to the
physical control system, at the time of
discharge of such goods;
(b) In the case of any goods or services to
be sold under the automatic discharge
system, within the 25th day of the
month following the issue of invoice;
(c) In the case of goods to be imported,
at the time of entering of such goods
into Nepal;
(d) In the case of services to be imported,
as prescribed by the Department.
(2) In the event of failure to pay the excise duty
within the time limit as referred to in Clause (b) of Sub-
section (1), there shall be charged a delay fee by 0.05
percent on the due and payable amount per day.
4C. Exemption from excise duty: (1) No excise duty shall be
levied on any goods to be imported by a person or body
enjoying diplomatic facility on the recommendation f the
Ministry of Foreign Affairs.
(2) Notwithstanding anything contained in Sub-
section (1), the excise duty shall also be exempted in the
following circumstances:
(a) In transferring any motor vehicles that
were imported by any foreign mission
or donor agency with the enjoyment
of the diplomatic facility or tariff

232
facility to the project itself in
consonance with the approval annual
programme of the project and
converting their number plates into
governmental ones or in transferring,
with the approval of the Ministry of
Finance, any motor vehicles that were
imported in the name of any project
with the enjoyment of full or partial
tariff facility (except those imported
on inventory or bank guarantee) to
any local body, community school,
community hospital or governmental
body after the completion of the
project;
(b) If any diplomatic body (mission),
project or other body (governmental
as well as non-governmental
organization) intends to scrap and
cancel the registration of any motor
vehicle that it has imported with the
enjoyment of the tariff facility and
that is more than Fifteen years old
after the year of initial production,
with the approval of the Ministry of
Finance, the excise duty shall not be
levied on such a motor vehicle.
(c) If the owner of a motor vehicle
imported for personal use with the
enjoyment of partial customs tariff

233
facility dies and the motor vehicle has
to be transmitted to the husband or
wife of the owner of motor vehicle,
the excise duty shall not be levied on
such a motor vehicle.
(3) An industry producing goods by using 90
percent or more native worn and torn or unusable goods
shall enjoy exemption of excise duty leviable on such
goods or products.
4D. Control of sale and distribution: The Government of
Nepal may, if it so considers necessary, control the sale
and distribution of goods subject to excise duty and
manage such sale and distribution as prescribed."
(6) The following Section 7 shall be substituted for Section 7:
"7. Fixation of price of product or service subject to excise
duty: (1) In cases where the excise duty is to be levied on
any product or service according to value (ad valorem),
the excise duty shall be levied taking the following price
as the basis:
(a) The factory price which a manufacturer
determines at the time of selling a
product subject to excise duty;
(b) In the case of service, the price of the
service at the time of selling it; or
(c) The price specified by the Department on
the basis of production/ manufacturing
cost.

234
(2) In respect of a product to be imported into
Nepal, the excise duty shall be levied on the price fixed by
adding the customs tariff on such a product to the price
fixed for the purpose of collecting customs tariff.
(3) Excise duty on service shall be collected by
fixing the price as per the invoice.
(4) For purposes of collecting excise duty, the
Department may, as per necessity, re-fix the price or fix
additional price."
(7) The following Section 9 shall be substituted for Section 9:
"9. Provisions relating to license: (1) No one shall
manufacture, import, sell or store a product subject to
excise duty or deliver service subject to excise duty to any
other person, without obtaining the license pursuant to
this Act or the Rules framed under this Act.
Provided that, no excise duty license is required to
manufacture, import, sell or store a product subject to
excise duty or deliver service subject to excise duty by an
industry subject to automatic release system, except the
manufacturing of bricks, stone crusher, bidi, tobacco,
khaini, pan masala, gudkha, khandsari industry and
import of molasses and Gund and import of goods subject
to excise duty under the diplomatic facility on the
recommendation of the Ministry of Foreign Affairs.
(2) A person, firm, company or organization that
intends to obtain the license referred to in Sub-section (1)
has to make an application to the Excise Duty Officer for

235
the license, in such format and accompanied by such fee
as prescribed.
(3) In cases where an application is made to the
Excise Duty Officer for the license pursuant to Sub-
section (2), the Department or the Excise Duty Officer
designated by the Department shall issue the license in the
prescribed format if it appears proper upon making
necessary examination on such an application.
(4) The term of the license issued pursuant to Sub-
section (3) shall remain valid until one Fiscal Year.
(5) A licensee who intends to obtain the renewal of
license has to obtain the renewal within the month of
Shrawan after the expiration of the period specified
pursuant to Sub-section (4) by paying the fees as
prescribed.
Provided that, if any licensee so intends, the
licensee may obtain the renewal by for three Fiscal Years
by paying the renewal fees at the same time.
(6) A licensee who fails to obtain the renewal
within the period as referred to in Sub-section (5) has to
pay the fine of Twenty Five percent of the renewal fees for
obtaining the renewal within the first Three months of the
expiration of such a period, that of Fifty percent of the
renewal fees for obtaining the renewal within Three
months thereafter, that of Seventy Five percent of the
renewal fees for obtaining the renewal within Three
months thereafter and that of cent percent of the ren wal

236
fees for obtaining the renewal within the last day of the
month of Ashad thereafter.
(7) If a licensee intends to obtain the renewal of
license after the expiration of the period specified in Sub-
section (6), the licensee may obtain the renewal by paying
the cent percent additional license fees for each Fiscal
Year and due amounts, in addition to the license fees as
prescribed.
(8) If any person does transaction without obtaining
the license as referred to in Sub-section (1), the person
shall not be exempted from the fees chargeable for the
license and for its renewal."
(8) The following Section 9A. shall be inserted after Section 9:
"9A. Power to suspend license: (1) If a licensee gives up doing
transaction of goods or services subject to excise duty, the
licensee has to make an application, accompanied by the
reason, to the Excise Duty Officer for the suspension of
the license.
(2) If an application is received pursuant to Sub-
section (1), the Excise Duty Officer shall make decision to
suspend or not to suspend the license of that licensee, and
if it appears necessary to suspend the license, suspend it
and give information thereof to the licensee within Thirty
days after the receipt of the application.
(3) The licensee who so gets information of the
suspension of the license pursuant to Sub-section (2) shall

237
not be required to furnish details as referred to in Section
10A. after the next month of the suspension.
(4) The licensee shall not be required to obtain the
renewal of license pursuant to Section 9 during the period
of suspension of license pursuant to Sub-section (2)."
(9) The following Clause (d) shall be inserted after Clause (c) of
Section 10:
"(d) In cases where the licensee organization is dis olved or the
licensee makes an application for the cancellation of
license."
(10) The following Sections 10A., 10B., 10C., 10D., 10E., 10F.,
10G., and 10H. shall be inserted after Section 10:
"10A. To furnish excise duty returns: A person who has
obligation to determine and recover the excise pursuant to
Section 3A. has to furnish the returns of transaction
subject to excise duty for each month to the Excise Duty
Officer or the prescribed excise duty returns by a
registered post within Twenty Five days. Such returns have
to be furnished irrespective of whether transaction subject
to excise duty has been carried on in that month or not.
10B. To maintain accounts: (1) A person who has obligation
to furnish the excise duty returns pursuant to Section 10A.
has to maintain accounts of the production and saleof
goods or services subject to excise duty, of purchase,
consumption of raw materials, subsidiary raw materils
with specification of their price and quantity and of
closing balance, along with the prescribed details, and

238
shall provide such details as and when the Excise Duty
Officer so demands for inspection.
(2) The accounts of purchase, production, release,
sale and balance as referred to in Sub-section (1) shall be
got certified by the concerned Excise Duty Officer and
used for the purpose of maintaining accounts.
(3) The licensee has to safely retain the accounts of
transaction for until Six years.
(4) For the implementation of this Act, the Excise
Duty Officer may, by giving a notice in writing, seek
information as to the transaction of goods and servic s
subject to excise duty.
10C. Records processed by computer to be eligible as
evidence: (1) Notwithstanding contained in the laws
prevailing, the records relating to excise duty of any
person processed by the computer installed in the
Department or offices thereunder or offices designated to
administer the excise duty shall be eligible as evid nce for
purposes of excise duty, except as otherwise proved.
(2) The Department may so prescribe that the data
relating to the goods or services subject to excise duty can
be automatically retrieved by the Department or the office
designated by the Department.
(3) The Department may make necessary
arrangements on the submission of excise duty returns and
payment of excise duty through electronic medium."

239
10D. Power of Excise Duty Officer to determine excise duty:
(1) The Excise Duty Officer may determine the excise duty
in any of the following circumstances:
(a) In the event of failure to submit the
excise duty returns within the time limit,
(b) In the event of submission of incomplete
or erroneous excise duty returns,
(c) In the event of submission of false excise
duty returns,
(d) In the event of existence of a reliable
ground for the Excise Duty Officer to
believe that lesser amount of excise duty
has been shown or the amount of excise
duty is not accurate,
(e) Where there is a ground and reason for
the Excise Duty Officer to believe that
the sales price has been under-invoiced
and it is necessary to re-determine the
price or to determine additional price
pursuant to Sub-section (4) of Section
7,
(f) If the ceiling of production of goods or
services subject to the excise duty is
specified pursuant to or under this Act,
the production ceiling is not met,
(g) If the difference between the liquors
released and the alcohol content of

240
waste material or substance if more than
One percent,
(h) In the event of evasion of excise duty,
(i) If any person does transaction of goods
subject to excise duty without obtaining
the license.
(2) In determining the excise duty pursuant to Sub-
section (1), the Excise Duty Officer shall give a time-limit
of Fifteen days to the concerned person to defend himself
or herself.
(3) The Department may make monitoring of the
determination of excise duty made pursuant to Sub-section
(1). If any error is found upon monitoring, the Director
General may order the redetermination of excise duty.
(4) The Excise Duty Officer shall have the
following powers for the purposes of determination f
excise duty pursuant to Sub-section (1) or examinatio of
the excise duty returns submitted duty pursuant to Section
10A.:
(a) To examine the goods, places,
documents, accounts and records
related with the liability of excise
duty,
(b) To search the place of transaction of
any person or other places where
evidences related with the acts

241
deemed offence under this Act can be
found,
(c) To seek information from the persons
who prepare any records, books,
accounts and documents or fill up
details therein in the course of
discharge of their duty,
(d) To take possession of or take
elsewhere any documents, books and
records situated in the place of
transaction of goods and services
subject to excise duty or other place
related thereto,
(e) To make audit of excise duty in the
place of transaction or office or other
appropriate place,
(f) The Excise Duty Officer may seek
information of any matter from a bank
or financial institution or any person
in relation to the transaction of goods
and services subject to excise duty.
(5) It shall be the duty of such a bank and financil
institution or person to give information as sought by the
Excise Duty Officer pursuant to this Section.
10E. Power to have expert's service: The Department may
obtain the service of liquor export, brewing expert,

242
chemical expert and other expert, as required, for the
effective implementation of this Act.
10F. Power to specify ceiling of production of goods and
services subject to excise duty: (1) The rate of
production ceiling of ethanol, spirit or ENA required to be
obtained from grains, molasses or Khudo used by an
industry producing nhydres ethanol, rectified spirit or
ENA shall be determined in accordance with the
procedures as prescribed.
(2) If it appears that the production is less than the
rate of ceiling prescribed pursuant to Sub-section (1), the
production of highest quality liquors to be produced by
the industry shall be deemed to have been made from the
ethanol, spirit or ENA in such different quantity.
(3) The Department may specify the rate of ceiling
of production of other goods and services subject to excise
duty.
10G. To test the volume of alcohol: The Excise Duty Officer
may at any time test or examine the content of alcohol f
the liquors discharged with approval and of the waste
substance and quality thereof. The alcohol content shall
not be different more than One percent or quality shall not
be altered significantly.
10H. Recovery of due excise duty: If any person does not pay
the excise duty to be paid within the time limit as referred
to in this Act, the concerned Excise Duty Officer my
recover the same by way of any or all of the following
measures:

243
(a) Deducting the amount, if any, refundable to such a
person,
(b) By having deduction of such amount from the
amount payable by the Government of Nepal or
any corporate body owned by the Government of
Nepal or local body to such a person,
(c) By having deduction of such amount from the
interest of such a person in a bank, financial
institution or other institution,
Explanation: For the purposes of this Clause, the
term 'interest" includes deposits and investments
held in a bank, financial or other institution.
(d) By withholding the sale, export, import and other
business by and of such a person,
(e) By seizing the movable and immovable property of
such a person,
(f) By auction selling any or all of the movable and
immovable properties of such person at one time or
at different times as prescribed.
(g) By auctioning the goods in stock.
10I. Delay fee: In the event of failure of a person to pay the
excise duty within the time limit as referred to in this Act
after the determination of the excise duty or for any other
reason, except a circumstance as referred to in Clause (a)
of Sub-section (1) of Section 4, there shall be charged a

244
delay fee by 0.05 percent on the due and payable amount
of excise duty per day."
(11) The word "release" shall be substituted for the work "export"
contained in Section 11.
(12) The following proviso shall be inserted in Clause (d) of Sub-
section (3) of Section 12:
“Provided that, such suspension shall not exceed seven
days; and decision shall be made no later than Sixty days after
the making of such suspension.”
(13) Of Section 13,
(a) The words "Inland Revenue Office" shall be substituted
for the words "Excise Duty Office" contained in various
places of Sub-section (1).
(b) The following Sub-sections (4) and (5) shall be inserted
after Sub-section (3):
"(4) The Department may give an information
incentive expense of a maximum of Ten Thousand Rupees
as prescribed to a person who provides information of the
offence as referred to in this Section.
(5) The details of the person giving information of
offence pursuant to this Section shall be kept secret."
(14) The words "Inland Revenue Office" shall be substituted for the
words "Excise Duty Office" contained in various places of Sub-
section (1) of Section 14 and the following Clauses (a), (b) and
(c) shall be substituted for Clauses (a), (b) and (c) of the same
Sub-section:

245
"(a) Ten per cent of the amount in controversy to the informer,
(b) Twenty per cent of the amount in controversy to one who
seizes and hands over a product only;
(c) Thirty per cent of the amount in controversy to one who
arrests and hands over the person, along with the proof.
Provided that, in cases where the informer who
gives information or clue be more than one person, the
reward shall be divided between them pro rata.”
(15) The words "Inland Revenue Office" shall be substituted for the
words "Excise Duty Office" contained in Section 15:
(16) Of Section 16:
(a) The following clause (b) shall be substituted for clause (b)
of Sub-section (1):
“(b) To produce or import a product subject to excise
duty without obtaining the license,”
(b) The following Sub-section (5) shall be inserted after Sub-
section (4):
“(5) Where any person commits any of the following
offences, the Excise Duty Officer may punish such
a person with a fine as follows:
(a) In the event of re-determination of the price
or determination of additional price pursuant
to Sub-section (4) of Section 7, cent percent
amount of the amount of excise duty to be
added,

246
(b) In the event of making sale or storage of
goods or services subject to excise duty
without obtaining the license, from Five
Thousand Rupees to Fifteen Thousand
Rupees.
(c) In the event of violation of the provision of
Section 10A., the amount of 0.05 percent of
the leviable excise duty per day or One
Thousand Rupees for each return, whichever
is the higher.
(d) In the event of failure to maintain updated
accounts as referred to ins Sub-section (1) of
Section 10B., Ten Thousand Rupees and
Five Thousand Rupees for each instance in
the event of no allowing the accounts of
transactions to be inspected,
(e) In the event of violation of Sub-section (2)
of Section 10B., upto Five Thousand
Rupees,
(f) In the event of violation of Sub-section (3)
of Section 10B., Ten Thousand Rupees,
(g) In the event of obstruction in the act as
referred to in Sub-section (3) of Section
10D., Five Thousand Rupees for each
instance,
(h) If, upon examination pursuant to Section
10G., the difference between the liquors

247
released and the alcohol content of waste
material or substance is more than One
percent, cent percent of the amount of
revenue leaked,
(i) If the ceiling of production of goods or
services subject to the excise duty is
specified and the production ceiling is not
met, cent percent of the amount of excise
duty to be added,
(j) In the event of violation of Section 4B., Ten
Thousand Rupees for each instance,
(k) In the event of violation of this Act or the
Rules framed under this Act, One Thousand
Rupees for each instance.
(17) The following Section 17A. shall be inserted after Section 17:
“17A. Provision on payment by installment: Where any
taxpayer makes a request in writing for the payment of any
arrear excise duty by installment, permission may be given
to pay the same by installment for One year.”
(18) The following Section 19 shall be substituted for Section 19:
"19. Provisions relating to administrative review and
appeal: (1) A person who is not satisfied with any
decision by the Excise Duty Officer of excise duty
assessment and recovery thereof may make an application
for administrative review to the Department against the
decision within Thirty days of the date of receipt of a
notice of that decision.

248
Provided that, a person may make an appeal in the
Revenue Tribunal against the decision of punishment of
imprisonment for any offences as referred to in Sub-
sections (1), (2), (3) and (4) of Section 16.
(2) In cases where the time limit for making
application pursuant to Sub-section (1) expires andy
person makes an application for the extension of time l mit
within Seven days from the date of expiration of the ime
limit, the Department may extend the time limit for a
period not exceeding Thirty days from the date of
expiration of the time limit.
(3) If the claim of the applicant appears to be true
upon examining the evidence and documents including the
application made by the taxpayer pursuant to Sub-section
(1), the Director General may, by executing a
memorandum setting out the clear reasons, void that
excise duty assessment order and direct the concerned
Excise Duty Officer to make re-assessment of excise duty.
(4) The Department shall make decision on the
application within Sixty days after the date of making of
application pursuant to Sub-section (1).
(5) The taxpayer who makes an application
pursuant to Sub-section (1) has to pay undisputed amount
of excise duty and amount of fine, out of the amount of
excise duty assessed, and furnish a cash deposit of One
Third of the amount of excise duty in controversy and
amount of fine.

249
(6) If the Department does not give decision within
the time limit as referred to in Sub-section (4), the
concerned person may, after the expiration of that ime-
limit, make an appeal to the Revenue Tribunal or if the
person is not satisfied with the decision made by the
Department, the person may make such an appeal in the
Revenue Tribunal within Thirty Five days after the date of
receipt of notice of the decision.
(7) A person who makes an application for
administrative review or an appeal pursuant to this Section
shall register a copy of the application or appeal with the
concerned Office no later than Fifteen days.
(8) The implementation of the decision set forth in
Sub-section (1) of Section 16 shall not be deemed to have
been affected by the reason of making an application for
administrative review or appeal pursuant to Sub-section
(1).”
(19) The following Section 22A. shall be inserted after Section 22:
“22A. Deemed to be excise duty: Any charge, delay fee or fine
imposable pursuant to this Act shall be deemed to be the
excise duty imposable pursuant to this Act.”
(20) The following Section 23 shall be substituted for Section 23:
“23. Department to be responsible for implementation and
administration: The Department shall be responsible for
the implementation and administration of this Act.”
(21) The following Section 24 shall be substituted for Section 24:

250
"24. This Act to prevail on excise duty provision:
Notwithstanding anything contained in the laws in force,
except in cases where the Financial Act to be enforced in
every year amends this Act and provides for imposition,
assessment, increase, decrease, exemption, or remission of
excise duty, no other Act may make any amendment to, or
alter tax provisions referred to in this Act or make other
excise duty related provisions."
(22) The following Section 25A. shall be inserted after S ction 25:
“25A. Power to frame and issue manual: The Department
may frame and issue necessary Manuals, subject to this
Act and the Rules framed under this Act.”
(23) The following Schedule shall be inserted in the Excise Duty Act,
2058 (2002):










251
Schedule
(Relating to Section 3)
Rate of excise duty
SN Heading/sub-
heading No.
Description of product/good
or service
Unit Rate of
excise
duty
1. 1703.10.00
and
1703.90.00
khudo (Molasses)
Per quintal Rs. 40.00
2. 1703.11.90 Sakkhhar (Gud), black
Sakhhar, Raskat from
Khandsari (0nly on import) Per quintal Rs. 72.00
3. Under 3923 Plastic packing materials Value/price
percent 5 percent
3920, 3921 Plastic Seats Value/price
percent 5 percent
3926.90.90 Other plastic materials Value/price
percent 5 percent

6305.33.00 Plastic packing materials Value/price
percent 5 percent
4. Fruit juices
2009.19.00,
2009.11.00
and
2009.12.00
(a) Orange juice
Per liter Rs. 2.00
2009.29.00
and
2009.21.00
(b) Grape fruit juice
Per liter Rs. 2.00
2009.39.00 (c) Any other citrus fruit Per liter Rs. 2.00

252
and
2009.31.00
2009.49.00
and
2009.41.00
(d) Pineapple juice
Per liter Rs. 2.00
2009.69.00,
2009.50.00
and2009.61.0
0
(e) Tomato juice, grape juice
including grape must
Per liter Rs. 2.00
2009.79.00
and
2009.71.00
(f) Apple juice
Per liter Rs. 2.00
2009.80.00 (g) Juice of any other single fruit
or vegetable Per liter Rs. 2.00
2009.90.00 (h) Mixture of juices Per liter Rs.2.00
5. 2106.90.20 Pan Masala and similar other
goods with or without nicotine
containing lime
Per
Kilogram
Rs.
250.00
6. 1404.90.00 Kattha Per
Kilogram
Rs.
115.00
Kattha juice Per
Kilogram Rs. 10.00
7. 2202.90.00 All kinds of non-alcoholic
beverages Per liter Rs. 2.50
8. 2203.00.00 Beer Per liter Rs.72.00
Country beer (chhang) Per liter Rs.20.00
9. 2204.29.00 Wine made in the country
(containing not more than 12
percent alcohol, made from
Chutro, apple or Aishalu) or Per liter Rs.55.00

253
domestic cider
Other beverages than wine and
beer containing up to 12 percent
alcohol(on import) Per liter Rs.167.00
2204.10.00,
2205.90.00,
2204.21.00,
2204.29.00,
2204.30.00
and
2205.10.00
Wine containing not more than
12 percent alcohol (on import)
Per liter Rs.167.00
2204.10.00,
2205.90.00,
2204.21.00,
2204.29.00,
2204.30.00
and
2205.10.00
Wine containing 12-17 percent
alcohol
Per liter Rs.167.00
10. 2204.10.00,
2205.90.00,
2204.21.00,
2204.29.00,
2204.30.00,
2205.10.00
and
2206.00.90
Wine containing more than 17
percent alcohol, herbs mixed
liquors, cocktail (alcoholic/non-
alcoholic/ non-alcoholic
mixtures) and other fermented
liquors
Per liter Rs.189.00
11. 2206.00.90
and
2204.10.90
Sampan, sherry, mead, perry,
cider
Per liter Rs.189.00
12. 2207.20.00 Denatured spirit (containing 80- Per lit r Rs.10.00

254
99 percent alcohol)
13. 3814.00.00 Thinner, solvent Per liter Rs.10.00
14. 2207.10.00 Anhydrous ethanol (containing
more than 99 percent alcohol) Per liter Rs.6.00
15. All kinds of alcoholic fluids
used as raw materials of liquors
containing 57.38 percent to 80
percent alcohol by volume
2208.20.10 (a) Wine and raw materials of
brandy Per liter Rs.108.00
2208.30.10 (b) Raw materials of whisky Per liter Rs.108.00
2208.40.10 (c) Raw materials of rum and
Tafia Per liter Rs.108.00
2208.50.10 (d) Raw materials of gin and
Geneva Per liter Rs.108.00
2208.60.10 (e) Raw materials of vodka Per liter Rs.108.00
2208.70.10 (f) Raw materials of liqueurs
and cordials Per liter Rs.108.00

2208.90.10 (g) Raw materials of other
liquors (including spirit) Per liter Rs.108.00
16. 2207.10.10 Rectified spirits used as raw
materials of liquors
containing more than 80
percent alcohol by volume Per liter Rs.33.00
2207.10.10 E.N.A. Per liter Rs.44.00
17. Liquors
2208.20.90 (a) Wine and brandy
(1) With 25 U.P. strength
(containing 42.08 percent
Per liter
Per LP liter
Rs.
385.00

255
alcohol content) or
Rs.
513.00
2208.20.90 (2) With 30 U.P. strength
(containing 39.94 percent
alcohol content) Per liter
Per LP liter
Rs.
360.50 or
Rs.
513.00
(b) Whisky
2208.30.90 (1) With 25 U.P. strength
(containing 42.8 percent
alcohol content) Per liter
Per LP liter
Rs.
385.00 or
Rs.
513.00
2208.30.90 (2) With 30 U.P. strength
(containing 39.94 percent
alcohol content) Per liter
Per LP liter
Rs.
360.50 or
Rs.
513.00
(c) Rum and Tafia
2208.40.90 (1) With 25 U.P. strength
(containing 42.08 percent
alcohol content)
Per liter
Per LP liter
Rs.
385.00
or
Rs.
513.00
2208.40.90 (2) With 30 U.P. strength
(containing 39.94 percent
alcohol content) Per liter
Per LP liter
Rs.
360.00
Rs.
513.00
(d) Gin and Geneva
2208.50.90 (1) With 25 U.P. strength
(containing 42.08 percent
alcohol content)
Per liter
Per LP liter
Rs.
385.00
or

256
Rs.
513.00
2208.50.90 (2) With 30 U.P. strength
(containing 39.94 percent
alcohol content) Per liter
Per LP liter
Rs.
360.50
Rs.
513.00
(e) Vodka
2208.60.90 (1) With 25 U.P. strength
(containing 42.8 percent
alcohol content) Per liter
Per LP liter
Rs.
385.00
Rs.
513.00
2208.60.90 (2) With 30 U.P. strength
(containing 39.94 percent
alcohol content) Per liter
Per LP liter
Rs.
360.00
Rs.
513.00
(f) Liquors and cordials
2208.70.90 (1) With 25 U.P. strength
(containing 42.8 percent
alcohol content) Per liter
Per LP liter
Rs.
385.00
Rs.
513.00
2208.70.90 (2) With 30 U.P. strength
(containing 39.94 percent
alcohol content) Per liter
Per LP liter
Rs.
360.00
Rs.
513.00
(g) Other liquors
2208.90.90 (1) With 15 U.P. strength
(containing 48.5 percent
alcohol content) Per liter
Per LP liter
Rs.
517.00
Rs.
608.00
2208.90.90 (2) With 25 U.P. strength Per liter Rs.

257
(containing 42.8 percent
alcohol content)
Per LP liter 385.00
Rs.
513.00
2208.90.90 (3) With 30 U.P. strength
(containing 39.94 percent
alcohol content) Per liter
Per LP liter
Rs.
360.50
Rs.
513.00
2208.90.90 (4) With 40 U.P. strength
(containing 34.23 percent
alcohol content) Per liter
Per LP liter
Rs.
182.00
Rs.
302.00
2208.90.90 (5) With 50 U.P. strength
(containing 28.53 percent
alcohol content)
Per liter
Per LP liter
Rs. 64.00
Rs.
127.00
2208.90.90 (6) With 70 U.P. strength
(containing 17.12 percent
alcohol content)
Per liter
Per LP liter
Rs. 17.00
Rs. 56.00
Provided that, in the case of imported liquors, where the
quantity of alcohol specified in the above rate differs by less
than one percent, the same rate shall be applicable nd
where that quantity differs by more than one percent, the
excise duty shall be levied and collected as per th rate that
is near and the highest.
18. 2401 Only on import of raw tobacco
not packed (other than that used
as raw materials by industries)
Per
kilogram Rs. 55.00
2403.91.00 Packed raw chewable tobacco
containing lime
Per
kilogram Rs. 145.00
2403.91.00 All kinds of jarda and khaini
made from tobacco
Per
kilogram Rs. 220.00

258
2403.99.00 Tooth cleaning material
containing tobacco dust
Per
kilogram Rs. 210.00
2403.10.90 Prepared bidi Per M Rs. 55.00
2403.10.10 Pipe tobacco Per
kilogram Rs. 625.00
19. 2402.10.00
and
2402.90.00
All kinds of cigar
Per stick Rs. 6.00
20. 7213 and
6214
(including
sub-heading
7214.99.10)
Iron rods
Per
metric
ton Rs. 1000.00
21. 2516.90.00,
2516.22.00,
2515.12.00,
2515.20.00,
2516.12.00,
and from
6802.21.00.to
6802.99.00
Marble
Value
percent 5 percent
6908 Glaze tiles Value
percent 5 percent
22. 1902 Noodles, macaroni, pasta Per
kilogram Rs. 7.50
2106.90.10 Junk foods (Kurkure, Kurmure,
cheeseballs, pastry etc.)
Per
kilogram Rs. 7.50
23. Chapter 16 Preparations of meat, fish
(canned)
Value
percent 5 percent
2309.10.00 Dog and rat feed Value 5 percent

259
percent
24. Cigarettes (all kinds of cigarettes
made from tobacco)
(1) In up to 70 mm length
2402.20.00 (a) With filter Per M Rs. 234.00
2402.20.00 (b) Without filter Per M Rs. 494.00
2402.20.00 (2) In more than 70 mm up to
75 mm length (with filter) Per M Rs. 633.00
2402.20.00 (3) In more than 75 mm up to
85 mm length (with filter) Per M Rs. 811.00
2402.20.00 (4) In more than 85 mm length
(with filter) Per M Rs. 1055.00
25. Cement
2523.21.00 (a) Portland cement white
(whether or not colored)
Per
metric
ton Rs. 180.00
2523.29.00 (b) Portland cement (brown) Per
metric
ton Rs. 180.00
2523.30.00 (c) Aluminous cement Per
metric
ton Rs. 180.00
2523.90.00 (d) Other hydraulic cement Per
metric
ton Rs. 180.00
26. 3208, 3209,
3210
All kinds of paints Value
percent 5
27. 6904.10.00 All kinds of ceramic bricks
(other than domestic
production)
Per
thousan
d Rs. 600.00

260
28. Motor vehicles
(a) Jeep, car and van (customs
headings 8702 and 8703)
and their chassis (customs
heading 8706)
Value
percent 60 percent
(b) Microbus (with capacity of
11-14 seats) (customs
heading 8702) and chassis
thereof(customs heading
8706)
Value
percent 55 percent
(c) Double cab pick up (customs
heading 8704) and chassis
thereof(customs heading
8706)
Value
percent 60 percent
(d) Three wheeler (auto
rickshaw) (customs heading
8703) and chassis thereof
(customs heading 8706)
Value
percent 55 percent
(e) Single cab pick up (customs
heading 8704) and chassis
thereof (customs heading
8706)
Value
percent 50 percent
(f) Delivery van (customs
heading 8704) and chassis
thereof(customs heading
8706)
Value
percent 30 percent
(g) Minibus (with capacity of 15
to 25 seats (custom sub-
heading 870210.20)
Value
percent 35 percent
(h) Minibus (with capacity of 15 Value 35 percent

261
to 25 seats( custom sub-
heading 870290.20)
percent
(i) Chassis of minibus (custom
heading 8706) (with
capacity of 15 to 25 seats)
falling under custom heading
8702
Value
percent 35 percent
(j) Buses and trucks (customs
heading 8702, 8794) and
their chassis (customs
heading 8706)
Value
percent 40 percent
(k) Motor cycle (custom
heading 8711)
Value
percent 40 percent
29. 84.43 Plates, cylinders, and printing machinery used for printing
other than those of heading 84.42, other printing machines,
copying machines, fax machines, whether installed or not,
and their parts and accessories
Other printers, copying machines, fax machines, whether
installed or not
844331.00 Out of the printers, copying
machines and fax machines, those
with two or more than two multiple
functions and of such nature as can
be linked to or installed with
automated data processing machine
or network
Value
percent
10
8443.39.00 Others Value
percent 10
30 84.72 Other office machines (for example, hectograph or stencil
duplicating machine, addressing machines, automatic

262
banknote dispensers, coin-sorting machines, coin-counting
or wrapping machines, pencil sharpening machines,
perforating or stapling machines)
84.72.90.00 Others Value
percent 15
31. 84.79 Machines and mechanical appliances having individual
functions, not specified or included elsewhere in this
Chapter
Others
8479.89.90 Others Value
percent 10
32. 85.17 Telephone sets, including telephones used for cellular
networks or other cordless networks, equipment to
broadcast or transmit or store sound, images or other data,
appliances used in line or cordless network for
communication in (such as local or wide area network),
communication or transmission or store equipment under
headings 84.43, 84.25, 85.27 or 85.28
Equipment to broadcast or transmit or store sound, images,
including equipment used in line or cordless network f r
communication in (such as local or wide area network)
8517.61.10 Base stations Value
percent 5
8517.62.00 Machines/equipment to store,
change, reproduce and transmit
sounds, images or other data,
including switching and routing
equipment
Value
percent 5
8517.69.00 Others Value
percent 5

263
8517.70.00 Parts Value
percent 5
32. 85.18 Microphone and stands thereof, loudspeakers, whether or
not mounted in their enclosures, headphones and
earphones, whether or not combined with a microphone,
and sets consisting of a microphone and one or more
loudspeakers, audio-frequency electric amplifiers, electric
sound amplifier sets
8518.18.00 Microphones and their stands
Loudspeakers, whether or not
mounted in their enclosures
Value
percent 5
8518.29.00 Others Value
percent 5
34. 85.23 Records, tapes and other recorded media for sound or other
similarly recorded phenomena, including matrices and
masters for the production of records, but excluding
products of Chapter 37
Magnetic means
8523.29.90 Others Value
percent 5
8523.40.00 Optical means Value
percent 5
8523.51.00 Solid state non-volatile storage
equipment
Value
percent 5
8523.52.00 Smart cards Value
percent 5
8523.59.00 Others Value
percent 5
8523.80.00 Others Value
percent 5

264
35. 85.25 Transmission apparatus for radio-telephony, radio-
telegraphy, radio broadcasting or television, whether or not
incorporating reception apparatus or sound recording or
reproducing apparatus, television cameras, still image video
cameras and other video camera recorders, digital cameras
8525.60.00 Transmission apparatus
incorporating reception
apparatus Value percent 5
8525.80.00 Television cameras, digital
cameras and video camera
recorders Value percent 5
36. 85.28 Reception apparatus for television, whether or not
incorporating radio-broadcast receivers or sound or video
recording or reproducing apparatus, video monitors and
video projectors
Projectors
85.28.61.00 Apparatus of such kind as to be
solely or principally used in the
automated data processing
system of heading 84.71
Value
percent 10
37. Color television Value
percent 5
Picture tubes of color television Value
percent 5
38. 85.29 Parts suitable for use solely or principally with the
apparatus of headings of 85.25 to 85.28
Others
85.29.90.10 Of television receiver Value
percent 10
39. 85.31 Electric sound or visual signaling apparatus (for example,

265
bells, sirens, indicator panels, burglar or fire alarms) other
than those of Heading 85.12 or 85.30
8531.20.00 Indicator panels incorporating
liquid crystal devices (LCD) or
light emitting diodes (LED)
Value
percent 10
8531.90.00 Spare parts Value
percent 10
40. 85.32 Electrical capacitors. Fixed
variable or adjustable (preset)
85.32.10.00 Fixed capacitors designed for
use in 50/60 HZ circuits and
having a reactive power
handling capacity of not less
than 0.5 k.var (power
capacitors)
Value
percent
10
Other capacitors
8532.21.00 Tantalum Value
percent 10
8532.22.00 Aluminum electrolytic Value
percent 10
8532.23.00 Ceramic dielectric, single layer Value
percent 10
8532.24.00 Ceramic dielectric, multiple
layer
Value
percent 10
8532.25.00 Dielectric of paper or plastics Value
percent 10
8532.29.00 Others Value
percent 10
8532.30.00 Variable or adjustable
(preset)capacitors
Value
percent 10

266
8532.90.00 Parts Value
percent 10
41. 85.33 Electrical resistors (including
rheostats and potentiometers),
other than heating resistors
8533.10.00 Fixed carbon resistors,
composition or films
Value
percent 10
Other fixed resistors
8533.21.00 For a power handling capacity
not exceeding 20W
Value
percent 10
8533.29.00 Others Value
percent 10
Other variable resistors,
including rheostats and
potentiometers
8533.31.00 For a power handling capacity
not exceeding 20W
Value
percent 10
8533.39.00 Others Value
percent 10
8533.40.00 Other variable resistors,
including rheostats and
potentiometers
Value
percent 10
8533.90.00 Parts Value
percent 10
8534.00.00 Printed circuits Value
percent 10
42. 85.36 Electrical apparatus for switching or protecting electrical
circuits or for making connections to or in electrical circuits
(for example, stitches, relays, fuses, surge suppression,
plugs, sockets, lamp-holders, junction boxes, for a voltage

267
not exceeding 1,000 volts
8536.50.00 Other switches Value
percent 10
Lamp-holders, plugs and
sockets
8536.69.00 Others Value
percent 10
8536.90.00 Other equipment Value
percent 10
43. 85.44 Insulated (including enameled or anodized) wire, cable
(including co-axial cable) and other insulated electric
conductors, whether or not fitted with connectors, optical
fiber cables, made up of individually sheathed fibers,
whether or not assembled with electric conductors or fitted
with connectors
Other electric conductors, for a
voltage not exceeding 80 v
8544.42.00 Connected with conductors Value
percent 15
8544.49.00 Others Value
percent 15
8544.70.00 Optical fiber cable Value
percent 10
44. 90.10 Apparatus and equipment for photographic (including
cinematographic) laboratories, not specified or included
elsewhere in this Chapter; negatoscopes, projection screens
9010.90.00 Parts and accessories Value
percent 10
45. 90.11 Compound optical microscopes, including those for
microphotography micro-cinematography or micro-

268
projection
9011.10.00 Stereoscopic microscopes Value
percent 5
9011.20.00 Other microscopes for
microphotography micro-
cinematography or micro-
projection
Value
percent 5
9011.90.00 Parts and accessories Value
percent 5
46. 90.12 Microscopes other than optical microscopes, diffraction
apparatus
9012.10.00 Microscopes other than optical
microscopes, diffraction
apparatus
Value
percent 5
9012.90.00 Parts and accessories Value
percent 5
47. 90.17 Drawing, marking out or mathematical calculating
instruments (for example, drafting machines, pantographics,
protractors, drawing sets, slide rules, disc calcultors),
instruments for measuring length, for use in the land 9for
example, measuring rods and tapes, micrometers, calipers)
not specified or included elsewhere in this Chapter
9017.20.00 Other drawing, marking-out or
mathematical calculating
instruments
Value
percent 5
9017.90.00 Parts and accessories Value
percent 5
48. 90.26 Instruments and apparatus for measuring or checking the
flow, level, pressure or other variables of liquids or gases
(for example, flow meters, level gauges, manometers, heat

269
meters), excluding instruments and apparatus of heading
90.14, 90.15, 90.28 or 90.32
9026.10.00 For measuring or checking the
flow or level of liquids
Value
percent 5
9026.20.00 For measuring or checking
pressure
Value
percent 5
9026.80 Other instruments or apparatus Value
percent 5
9026.90.00 Parts and accessories Value
percent 5
49. 90.27 Instruments and apparatus for physical or chemical analysis
(for example, polarimeters, refractometers, spectrometers,
gas or smoke analysis apparatus), instrument and appar tus
for measuring or checking viscosity, porosity, expansion,
surface tension or the like, instruments and apparatus for
measuring or checking quantities or heat, sound or light
(including exposure meters), microtomes
9027.20.00 Chromatographs and
electrophoresis instruments
Value
percent 5
9027.50.00 Other instruments and apparatus
using optical radiators (UV,
visible, IR)
Value
percent 5
9027.80.00 Other instruments or apparatus Value
percent 5
50. 90.30 Oscilloscopes, spectrum analyzers and other instruments
and apparatus for measuring or checking electrical
quantities, excluding meters of heading number 90.28,
instruments and apparatus for measuring or detecting alpha,
beta, gamma, X-ray, cosmic or other lonising radiators
9030.40.00 Other instruments and Value 5

270
apparatus, specially designed for
telecommunications (for
example, cross-talk meters, gain
measuring instruments,
distortion factor meters,
psophometers)
percent
9030.90.00 Parts and accessories Value
percent 5

Note:
(1) Notwithstanding anything contained above in the rate of excise
duty, no excise duty shall be levied on the chassis of ambulances,
corpse carrying vehicles and battery tempos.
(2) The procedures of collection of the excise duty leviable on the
motor vehicles purchased and in stock until Fiscal Year
2065/066 shall be as mentioned in the Finance Act, 2065.
(3) Exemption of excise duty shall be granted, on the
recommendation of the Department of Industries, to the raw
maters imported by industries and used to produce goods as
referred to in sub-heading 7213.91.10 of heading 72.13.
(4) In the event of cocktail of any liquors, the rate of tariff set forth
in serial number 10 shall be applicable.
(5) Prepared liquors of 70 UP strength may be made by using
rectified spirit of serial number 16 only.
(6) No local production of marble shall be subject to excise duty.

271
(7) No excise duty shall be levied on the goods of personal use
imported enjoying the customs duty exemption facility under the
Luggage and Baggage Order Facility.
(8) Exemption of 50 percent excise duty shall be granted to the local
production of motor cycles and that of 25 percent to he local
production of other motor vehicles.
(9) No excise duty shall be levied on the electric motor vehicles.
(10) Eighty percent exemption of excise duty leviable pursuant to this
excise duty tariff shall be granted to the production of brandy by
the local fruits based industries established in the least developed
regions as mentioned in Schedule-9 of the Industrial Policy,
2067.
(11) The Director General may, for statistical purposes, add a digit to
the eight digit sub-heading for the purposes of the rat of excise
duty.
(12) The Department may, as required and in consultation with the
Customs Department, interpret and specify the harmonized codes
of the products/goods on which excise duty is leviable.