THE EXPORT (QUALITY CONTROL AND INSPECTION) ACT, 1963 
_________ 

ARRANGEMENT OF SECTIONS 
_________ 

  Short title, extent and commencement. 
  Definitions. 
  Establishment of Export Inspection Council. 
  Director of Inspection and Quality Control. 
  Functions of the Council. 
  Powers of the Central Government in regard to quality control and inspection. 
  Machinery for quality control and inspection. 
  Power to recognise or establish marks to denote conformity with standard specifications. 
  Power to obtain information from exporters, etc. 

SECTIONS 
1. 
2. 
3. 
4. 
5. 
6. 
7. 
8. 
9. 
10.    Finance, accounts and audit. 
10A.  Power to enter and inspect. 
10B.   Power to search. 
10C.  Power to seize commodities, etc. 
10D.  Power to stop and seize conveyances. 
10E.   Search and seizure to be made in accordance with the Code of Criminal Procedure, 1973. 
10F.   Confiscation. 
10G.  Confiscation of conveyance. 
10H.  Option to pay fine in lieu of confiscation. 
10-I.   Liability to penalty. 
10J.   Confiscation or penalty not to interfere with other punishments. 
10K.  Adjudication. 
10L.   Giving of opportunity to the owner of goods etc. 
10M.  Appeal. 
10N.  Powers of revision. 
10-O. Powers of adjudicating and other authorities. 
10P.   Continuance of proceedings in the event of death or insolvency. 
11.    Penalty. 
11A.  Penalty for contravention of order made by adjudicating authority or Appellate authority. 
11B.  Offences by officers and employees of agency, etc. 
11C.   Correction of clerical or arithmetical mistakes. 
12.    Offences by companies. 
13.    Delegation of powers. 
14.    Procedure for prosecution. 
15.    Officers and employees of agency to be public servants. 
16.    Protection of action taken in good faith. 
16A.  Suspension, etc., of operation of the provisions of the Act. 
17.    Power to make rules.  
18.    Act to over-ride other enactments. 

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THE EXPORT (QUALITY CONTROL AND INSPECTION) ACT, 1963 

ACT NO. 22 OF1963 

[24th August, 1963.] 

An Act to provide for the sound development of the export trade of India through quality control 

and inspection and for matters connected therewith. 

BE it enacted by Parliament in the Fourteenth Year of the Republic of India as follows:— 

1. Short title, extent and commencement.—(1) This Act may be called the Export (Quality Control 

and Inspection) Act, 1963. 

(2) It extends to the whole of India. 
(3)  It  shall  come  into  force  on  such  date1as  the  Central  Government  may,  by  Notification  in  the 

Official Gazette, appoint. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

2[(a) “adjudicating authority” means the authority specified in, or under, section 10K; 

(ab) “Appellate authority” means the appellate authority referred to in section 10M;] 
3[(ac)]“Council” means the Export Inspection Council established under section 3; 

(b) “export”, with its grammatical variations and cognate expressions, means taking out of India 

to a place outside India; 

(c) “inspection”, in relation to a commodity, means the process of determining whether a batch of 
goods  in  that  commodity  complies  with  the  standard  specifications  applicable  to  it  or  any  other 
specifications  stipulated  in  the  export  contract  generally  by  inspecting  either  the  whole  batch  or  a 
selected sample or samples which purport to represent the whole batch; 

(d) “notified commodity” means any commodity notified under clause (a) of section 6; 

(e) “prescribed” means prescribed by rules made under this Act; 

(f) “quality control” means any activity having for its object the determination of the quality of a 
commodity  (whether  during  the  process  of  manufacture  or  production  or  subsequently)  in  order  to 
ascertain  whether  it  satisfies  the  standard  specifications  applicable  to  it  or  any  other  specifications 
stipulated in the export contract and whether it may be accepted for purposes of export. 

3. Establishment of Export Inspection Council.—(1) The Central Government may by notification 
in  the  Official  Gazette,  establish,  with  effect  from  such  date  as  may  be  specified  in  the  notification,  a 
Council to be known as the Export Inspection Council, which shall consist of— 

(a) a Chairman to be appointed by the Central Government; 

(b) the Director of Inspection and Quality Control, ex officio, who shall be the Secretary; 

(c) the Honorary Adviser on Standardization to the Government of India and Director of Indian 

Standards Institution, ex officio; 

(d) the Agricultural Marketing Advisor to the Government of India, ex officio; 

(e) the Director General of Commercial Intelligence and Statistics, ex officio; 
(f)  4[fifteen]  other  members  nominated  by  the  Central  Government  three  of  whom  shall  be 

persons representing the agencies referred to in section 7. 

1. 1st January, 1964, vide notification No. S.O. 3604(E), dated the 30th December, 1963, see Gazette of India, Extraordinary, Part 

II, Sec. 3(ii). 

2. Ins. by Act 40 of 1984, s. 2 (w.e.f. 2-7-1984). 
3. Clause (a) re-lettered as clause (ac) by s. 2, ibid. (w.e.f. 2-7-1984). 
4. Subs. by s. 3, ibid., for “eleven” (w.e.f. 2-7-1984). 

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(2) The Council shall be a body corporate by the name aforesaid, having perpetual succession and a 
common seal, with power to acquire, hold and dispose of property and to contract, and shall by the said 
name sue and be sued. 

(3)  The  term  of  office  of,  and  the  manner  of  filling  casual  vacancies  among,  the  members  of  the 
Council  referred  to  in  clauses  (a)  and  (f)  of  sub-section  (1)  and  the  travelling  and  daily  allowances 
payable to the members of the Council and the procedure to be followed in the discharge of its functions 
by the Council shall be such as may be prescribed. 

(4) No act or proceeding of the Council shall be invalidated merely by reason of any vacancy in, or 

any defect in the Constitution of, the Council. 

(5) Subject to such rules as may be made by the Central Government in this behalf, the Council may 
appoint  such  officers  and  other  employees  as  it  considers  necessary  for  the  purpose  of  discharging  its 
functions under this Act. 

 4. Director of Inspection and Quality Control.—The Central Government shall appoint a Director 
of Inspection and Quality Control to exercise such powers and perform such duties under this Act as may 
be prescribed. 

 5.  Functions  of  the  Council.—(1)  The  functions  of  the  Council  shall  generally  be  to  advise  the 
Central Government regarding measures for the enforcement of quality control and inspection in relation 
to commodities intended for export and to draw up programmes therefore, to make, with the concurrence 
of the Central Government, grants-in-aid to the agencies established or recognised under section 7 and to 
perform such other functions as maybe assigned to it by or under this Act. 

(2) For the purpose of performing its functions, the Council may co-opt as members such number of 
persons  as it thinks  fit  who  have  special  knowledge  and  practical  experience  in  matters  relating  to  any 
commodity or trade therein and any such person shall have the right to take part in the discussions of the 
Council but shall not have the right to vote and shall not be a member for any other purpose. 

(3)  The  Council  may  also  constitute  specialist  committees  for  conducting  investigations  on  special 

problems connected with its functions. 

(4) In the performance of its functions under this Act, the Council shall be bound by such directions 

as the Central Government may give to it in writing from time to time. 

6. Powers of the Central Government in regard to quality control and inspection.—If the Central 
Government, after consulting the Council, is of opinion that it is necessary or expedient so to do for the 
development of the export trade of India, it may, by order published in the Official Gazette,— 

(a)  notify  commodities  which  shall  be  subject  to  quality  control  or  inspection  or  both  prior  to 

export; 

(b)  specify  the  type  of  quality  control  or  inspection  which  will  be  applied  to  a  notified 

commodity; 

(c) establish, adopt or recognise one or more standard specifications for a notified commodity; 

(d)  prohibit  the  export  in  the  course  of  international  trade  of  a  notified  commodity  unless  it  is 
accompanied  by  a  certificate  issued  under  section  7  that  the  commodity  satisfies  the  conditions 
relating to quality control or inspection, or it has affixed or applied to it a mark or seal recognised by 
the Central Government as indicating that it conforms to the standard specifications applicable to it 
under clause (c). 

7.  Machinery  for  quality  control  and  inspection.—(1)  The  Central  Government  may,  by 
notification in the Official Gazette, establish, or recognise subject to such conditions as it may deem fit, 
agencies for quality control or inspection or both: 

Provided  that  if  the  Central  Government  is  of  opinion  that  any  recognition  granted  to  any  agency 
under  this  sub-section  should,  in  the  public  interest,  be  withdrawn,  the  Central  Government  may  after 
giving a reasonable opportunity to that agency to make representations in the matter, withdraw, by like 
notification, the recognition granted to it. 

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(2)  Any  agency  referred  to  in  sub-section  (1)  may,  on  application  made  to  it  or  otherwise,  hold  or 
cause  to  be  held  such  examination  as  it  thinks  fit  relating  to  quality  control  or  inspection  of  notified 
commodities,  either  at  the  time  of  export  or  earlier,  in  such  testing  houses  or  by  such  surveyors  or 
samplers as are approved by the Central Government in this behalf and may charge such fees as may be 
prescribed for the purpose of such examination. 

(3)  If,  after  the  examination,  the  agency  is  of  opinion  that  the  commodity  satisfies  the  standard 
specifications laid down in respect of it under section 6 or, as the case may be, any other specifications 
stipulated  in  the  export  contract,  it  may  issue  a  certificate  that  the  commodity  satisfies  the  conditions 
relating to quality control and inspection. 

1[(3A) Where the agency has reason to believe that a certificate issued under sub-section (3) has been 
obtained  fraudulently  or  by  misrepresentation,  or  the  commodity  in  relation  to,  which  the  certificate  is 
issued  has  been  changed  or  has  deteriorated  in  quality,  the  agency  may,  by  order,  amend,  suspend  or 
cancel the certificate in such manner and subject to such procedure as may be prescribed: 

Provided  that  before  amending,  a  suspending  or  cancelling  any  such  certificate  the  holder  thereof 

shall be given a reasonable opportunity of being heard.] 

(4)  Any  person  aggrieved  by  the  refusal  of  any  agency  referred  to  in  sub-section  (1)  to  issue  a 
certificate, 1[or by the amendment, suspension or cancellation of a certificate under sub-section (3A)] may 
prefer an appeal within such time as may be prescribed to such authority as the Central Government may, 
by notification in the Official Gazette, constitute for the purpose of hearing appeals. 

(5) Subject to the provisions of sub-section (6), the decision of the agency where no appeal is filed, 
and  the  decision  of  the  appellate  authority  where  an  appeal  is  filed,  shall  be  final  and  shall  not  be 
questioned in any Court of law. 

(6)  The  Central  Government  may,  at  any  time,  call  for  and  examine  the  record  of  any  proceeding 
relating to any decision of an agency or appellate authority under this section for the purpose of satisfying 
itself as to the legality or propriety of such decision and may pass such order thereon as it thinks fit. 

8. Power to recognise or establish marks to denote conformity with standard specifications .—
(1) The Central Government may, by notification in the Official Gazette, recognise or establish any mark 
or seal in relation to a notified commodity for the purpose of denoting that such commodity conforms to a 
standard specification applicable to it. 

(2) Any such mark or seal affixed or applied to a notified commodity or to any covering containing, 
or  label  attached  to,  such  commodity  shall  be  deemed  to  be  evidence  of  the  commodity  being  in 
conformity with the standard specifications applicable to it under this Act: 

Provided  that  nothing  in  this  sub-section  shall  prevent  any  officer  of  customs  from  examining  any 
consignment of a notified commodity intended for export if he has reason to believe that the seal or mark 
is not genuine or has been affixed or applied fraudulently or if such an examination is necessary for the 
purpose of any other law for the time being in force. 

9.  Power  to  obtain  information  from  exporters,  etc.—The Central Government or any officer or 

authority authorised by it in this behalf may, by notice published in the Official Gazette, require— 

(i) persons manufacturing, dealing in or exporting notified commodities; and 

(ii) such other persons as may be prescribed;  

to  furnish  any  information,  return  or  report  which  the  Central  Government  or  such  officer  or  authority 
may consider necessary for carrying out the purposes of this Act. 

10.  Finance,  accounts  and  audit.—(1)  For  the  purpose  of  enabling  the  Council  to  discharge  its 
functions  under  this  Act,  the  Central  Government  may,  after  due  appropriation  made  by  Parliament  by 
law  in  this behalf,  pay  to the  Council  such  sums  of money  as  that  Government  considers  necessary  by 
way of grants, loans or otherwise. 

1. Ins. by Act 40 of 1984, s. 4 (w.e.f. 2-7-1984). 

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(2)  For  the  purpose  of  discharging  its  functions  under  this  Act,  the  Council  may  receive  grants  or 

donations from bodies and institutions approved by the Central Government in this behalf. 

(3) The Council shall have its own fund to which shall be credited the sums of money referred to in 

sub-sections (1) and (2) and the moneys in the fund shall be applied for— 

(a) meeting the pay and allowances of the officers and other employees of the Council and other 

administrative expenses of the Council; 

(b) carrying out the functions of the Council under this Act. 

(4)  The  Council  shall  prepare,  before  the  commencement  of  each  financial  year,  a  statement  of 

programme of its activities during that year as well as a financial estimate in respect thereof. 

(5)  A  statement  prepared  under  sub-section  (4)  shall,  not  later  than  three  months  before  the 

commencement of each financial year, be submitted for approval to the Central Government. 

(6) The Council shall maintain such accounts and prepare the balance-sheet in such form as may, in 

consultation with the Comptroller and Auditor-General of India, be prescribed. 

(7)  The  accounts  of  the  Council  shall  be  audited  in  such  manner  and  at  such  times  as  may,  in 

consultation with the Comptroller and Auditor-General of India, be prescribed. 

1[10A. Power to enter and inspect.—The Director of Inspection and Quality Control or any officer 
of  the  Central  Government  authorised  by  him  in  writing  in  this  behalf  (hereinafter  referred  to  as  the 
“authorised officer”) may enter at any reasonable time, any premises which— 

(a)  any  commodity  which  has  been  changed  after  inspection  by  any  agency  referred  to  in               

sub-section (1) of section 7; or 

(b) any books of account or other documents or things which, in his opinion, will be useful for, or 

relevant to, any proceeding under this Act, 

are  suspected  to  have  been  kept  or  concealed,  and  inspect  such  commodity,  books  of  account,  other 
documents or things and may take such notes or extracts from such books of account or, other documents 
as he may think fit. 

10B. Power to search.—If the authorised officer has any reason to believe that— 

(a)  any  commodity  which  has  been  changed  after  inspection  by  any  agency  referred  to            

sub-section (1) of section 7; or 

(b) any books of account or other documents or things which, in his opinion, will be useful for, or 

relevant to, any proceeding under this Act,  

are secreted in any place, he may enter into and search such place or premises for such commodity, books 
of account, other documents or things. 

10C. Power to seize commodities, etc.—(1) If the authorised officer has any reason to believe that 
any commodity is liable to confiscation under this Act, he may seize such commodity together with the 
package, covering or receptacle, if any, in which such commodity is found and where such commodity is 
found to have been mixed with any other goods or materials, he may seize such commodity together with 
the goods or materials with which it is so mixed: 

Provided  that  where  it  is  not  practicable  to  seize  any  such  commodity,  the  authorised  officer  may 
serve on the owner of the commodity an order that he shall not remove, part with, or otherwise deal with, 
the commodity except with the previous permission of such authorised officer. 

(2) Where  any  commodity  is  seized  under sub-section  (1)  and  no  notice  in  respect thereof is  given 
under section 10L within six months of the seizure of such commodity, it shall be returned to the person 
from whose possession it was seized: 

1. Ins. by Act 40 of 1984, s. 5 (w.e.f. 2-7-1984). 

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Provided that the aforesaid period of six months may, on sufficient cause being shown, be extended 

by the Director of Inspection and Quality Control by a further period not exceeding six months. 

(3) The authorised officer may seize any documents or things which, in his opinion will be useful for, 

or relevant to, any proceeding under this Act. 

(4) The person from whose custody any documents are seized under sub-section (3) shall be entitled 

to make copies thereof or take extracts there from in the presence of the authorised officer. 

(5) If any person legally entitled to the documents or things seized under sub-section (3) objects, for 
any  reason,  to  the  retention  by  the  authorised  officer  of  the  documents  or  things,  he  may  make  an 
application to the Central Government staling therein the reasons for such objection and requesting for the 
return of the documents or things. 

(6) On receipt of an application under sub-section (5), the Central Government may, after giving the 

applicant an opportunity of being heard, pass such order as it may think fit. 

(7) Where any document— 

(a) is produced or furnished by any person or has been seized from the custody or control of any 

person under this Act or any other law for the time being in force; or 

(b)  has  been  received  from  any  place  outside  India  (duly  authenticated  by  such  authority  or 
person  and  in such  manner  as  may  be  prescribed)  in the  course  of  the investigation  of any  offence 
alleged to have been committed by any person against this Act, 

and such document is tendered in evidence against the person by whom it is produced or from whom it 
was seized or against such person and any other person who is jointly tried, or proceeded against, with 
him, the Court, or, as the case may be, the adjudicating authority shall, notwithstanding anything to the 
contrary contained in any other law for the time being in force,— 

(i)  presume,  unless  the  contrary  is  proved,  that  the  signature  and  every  other  part  of  such 
document which purports to be in the handwriting of any particular person or which the court or 
the  adjudicating  authority  may  reasonably  assume  to  have  been  signed  by,  or  to  be  in  the 
handwriting  of,  any  particular  person,  is  under  that  person’s  handwriting,  and,  in  the  case  of  a 
document executed or attested, it was executed or attested by the person by whom it purports to 
have been so executed or attested; 

(ii)  admit  the  document  in  evidence  notwithstanding  that  it  is  not  duly  stamped,  if  such 

document is otherwise admissible in evidence. 

10D.  Power to  stop  and  seize  conveyances.—Any authorised officer may, if he has any reason to 
suspect  that  any  conveyance  or  animal  is  being,  or  is  about  to  be,  used  for  the  transportation  of  any 
commodity which is liable to confiscation under this Act and that by such transportation any provision of 
this Act has been, is being or is about to be, contravened at anytime, stop such conveyance or animal or, 
in the case of an aircraft, compel it to land, and 

(a) rummage and search the conveyance or any part thereof, 

(b) examine and search any goods or materials in the conveyance or on the animal, 

(c) if it becomes necessary to stop any conveyance or animal, he may use all lawful means for 

stopping it and where such means fail, the conveyance or animal may be fired upon,  

and where he is satisfied that it is necessary so to do prevent the contravention of any provision of this 
Act, he may seize such conveyance or animal. 

Explanation.—Any  reference  in  this  section  to  a  conveyance  shall,  unless  the  context  otherwise 

requires, be construed as including a reference to an aircraft, vehicle or vessel. 

10E.  Search  and  seizure  to  be  made  in  accordance  with  the  Code  of  Criminal  Procedure, 
1973.—The  provisions  of  the  Code  of  Criminal  Procedure,  1973  (2  of  1974),  relating  to  searches  and 
seizures shall, so far as may be, apply to every search or seizure made under this Act. 

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10F. Confiscation.—Any commodity in respect of which— 

(a)  a  certificate  has  been  obtained  from  an  agency  referred  to  in  sub-section  (1)  of  section  7 

fraudulently or by misrepresentation, or 

(b) any provision of this Act has been, is being, or is attempted to be, contravened, shall, together 
with any package, covering or receptacle in which such commodity is found, be liable to confiscation 
and, where such commodity is so mixed with any other goods or materials that it cannot be readily 
separated, such other goods or materials shall also be liable to confiscation: 

Provided  that  where  it  is  established  to  the  satisfaction  of  the  adjudicating  authority  that  any 
commodity, which is liable to confiscation under this Act, belongs to a person other than the person who 
has, by any act or omission, rendered it liable to confiscation, and such act or omission was without the 
knowledge or connivance of the person to whom it belongs, such commodity shall not be ordered to be 
confiscated; but such other action as is authorised by this Act may be taken against the person who has, 
by such act or omission, rendered such commodity liable to confiscation. 

10G.  Confiscation  of  conveyance.—Any  conveyance  or  animal  which  has  been,  is  being,  or  is 
attempted to be, used for the transport of any commodity which is liable to confiscation under this Act, 
shall be liable to confiscation unless the owner of the conveyance or animal proves that it was, is being, or 
is about to be, so used without the knowledge or connivance of the owner himself, his agent, if any, and 
the  person  in  charge  of  the  conveyance  or  animal  and  that  each  of  them  had  taken  all  reasonable 
precautions against such use: 

Provided that in the case of a conveyance or animal used for the transport of goods or passengers for 
hire, the owner of the conveyance or animal shall be given an option to pay, in lieu of confiscation of the 
conveyance or animal, a fine not exceeding the value of the commodity which has been,  is being, or is 
attempted to be, transported by such conveyance or animal. 

10H.  Option  to  pay  fine  in  lieu  of  confiscation.—Whenever  confiscation  of  any  commodity  is 
authorised by this Act, the officer adjudging it shall, without prejudice to the provisions of the proviso to 
section 10G, give to the owner of the commodity an option to pay in lieu of confiscation such fine not 
exceeding the value of the commodity. 

10-I. Liability to penalty.—Any person,— 

(a) who, in relation to any commodity, does or omits to do any act which act or omission would 
render such commodity liable to confiscation under this Act, or abets the doing or omission of such 
an act; or 

(b)  who  acquires  possession  of  or  is  in  any  way  concerned  in  carrying,  removing,  depositing, 
keeping, concealing, selling or purchasing, or in any manner dealing with, any commodity which he 
knows or has reason to believe is liable to confiscation under this Act,  

shall be liable to a penalty not exceeding five times the value of the commodity or five thousand rupees, 
whichever is more, whether or not such commodity has been confiscated or is available for confiscation. 

10J. Confiscation or penalty not to interfere with other punishments.—No confiscation made or 
penalty  imposed  under  the  foregoing  provisions  of  this  Act  shall  prevent  the  infliction  of  any  other 
punishment to which the person affected thereby is liable under the provisions of this Act or under any 
other law for the time being in force. 

10K. Adjudication.—Any confiscation may be adjudged or penalty may be imposed under this Act 
by the Director of Inspection and Quality Control, or, where he so directs, by a general or special order, 
by any officer subordinate to him. 

10L. Giving of opportunity to the owner of goods etc.—No order of adjudication of confiscation or 
imposing  a  penalty  shall  be  made  unless  the  owner  of  the  commodity,  conveyance  or  animal  or  other 
person concerned is given a notice in writing— 

(a)  informing  him  of  the  grounds  on  which  it  is  proposed  to  confiscate  such  commodity, 

conveyance or animal or to impose a penalty; 

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(b)  giving  him  a  reasonable  opportunity  of  making  a  representation  in  writing  within  such 
reasonable  time  as  may  be  specified  in  the  notice  against  the  confiscation  or  imposition  of  penalty 
mentioned therein, and, if he so desires, of being heard in the matter. 

10M. Appeal.—(1) Any person aggrieved by any decision or order made under this Act may prefer 

an appeal,— 

(a) where the decision or order has been made by the Director of Inspection and Quality Control, 

to the Central Government; 

(b)  where  the  decision  or  order  has  been  made  by  any  officer  subordinate  to  the  Director  of 

Inspection and Quality Control, to the Director of Inspection and Quality Control.  

within a period of forty-five days from the date on which the decision or order is served on such person:  

Provided  that  the  appellate  authority  may  if  it  is  satisfied  that  the  appellant  was  prevented  by 
sufficient  cause  from  preferring  the  appeal  within  the  aforesaid  period  of  forty-five  days,  allow  such 
appeal to be preferred within a further period of forty-five days: 

Provided  further  that  in  the  case  of  an  appeal  against  an  order  imposing  a  penalty,  no  such  appeal 

shall be entertained unless the amount of the penalty has been deposited by the appellant: 

Provided  also  that  where  the  appellate  authority  is  of  the  opinion  that  the  deposit  to  be  made  will 
cause  undue  hardship  to  the  appellant,  it  may  at  its  discretion,  dispense  with  such  deposit  either 
unconditionally or subject to such conditions as it may impose. 

(2) The appellate authority may, after giving to the appellant a reasonable opportunity of being heard, 
if he so desires, and after making such further inquiries, if any, as it may consider necessary, pass such 
orders as it thinks fit, confirming modifying or reversing the decision or order appealed against or may 
send back the case, with such directions as it may think fit, for afresh adjudication or decision, as the case 
may be, after taking additional evidence, if necessary: 

Provided that an order enhancing or imposing a penalty or confiscating commodity of a greater value 
shall  not  be  made  under  this  section  unless  the  appellant  has  had  an  opportunity  of  making  a 
representation and, if he so desires, of being heard, in his defence. 

10N.  Powers  of  revision.—The Central Government may, on its own motion or otherwise, call for 
and examine the records of any proceeding in which an order of adjudication of confiscation or imposing 
any penalty has been made by any officer under this Act and against which no appeal has been preferred, 
for the purpose of satisfying itself as to the correctness, legality or propriety of such order or decision and 
pass such orders thereon as it may think fit: 

Provided that no decision or order shall be varied under this section so as to prejudicially affect any 

person unless such person— 

(a) has, within a period of two years from the date of such decision or order, received a notice to 

show cause why such decision or order shall not be varied, and 

(b) has been given a reasonable opportunity of making a representation  and, if he so desires, of 

being heard in his defence. 

10-O. Powers of adjudicating and other authorities.—(1) Every authority making any adjudication 
or hearing any appeal or exercising any powers of revision under this Act shall have all the powers of a 
civil  court  under  the  Code  of  Civil  Procedure,  1908  (5  of  1908),  while  trying  a  suit,  in  respect  of  the 
following matters, namely:— 

(a) a summoning and enforcing the attendance of witnesses; 

(b) requiring the discovery and production of any document; 

(c) requisitioning any public record or copy thereof from any court or office; 

(d) receiving evidence on affidavits; and 

(e) issuing commissions for the examination of witnesses or documents. 

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(2)  Every  authority  making  any  adjudication  or  hearing  any  appeal  or  exercising  any  powers  of 
revision under this Act shall be deemed to be a Civil Court for the purposes of sections 345and 346 of the 
Code of Criminal Procedure, 1973 (2 of 1974). 

(3)  Every  authority  making  any  adjudication  or  hearing  any  appeal  or  exercising  any  powers  of 
revision under this Act shall have the power to make such orders of an interim nature as it may think fit 
and may also, for sufficient cause, order the stay of operation of any decision or order. 

10P. Continuance of proceedings in the event of death or insolvency.—(1) Where a penalty has 

been imposed by the adjudicating authority and— 

(a)  no  appeal  against  the  order  imposing  such  penalty  has  been  preferred  to  the  Appellate 
authority  and  the  person  entitled  to  file  such  appeal  dies  or  is  adjudicated  an  insolvent  before  the 
expiry of the period within which the appeal can be preferred; or 

(b)  an  appeal  has  been  preferred  to  the  Appellate  Authority  against  the  order  imposing  such 

penalty but the appellant dies or is adjudicated an insolvent during the pendency of the appeal,  

then, it shall be lawful for the legal representatives, of such person or the Official Assignee or the Official 
Receiver,  as  the  case  may  be,  to  prefer  an  appeal  to  the  appellate  authority  or,  as  the  case  may  be,  to 
continue the appeal before the Appellate authority, in place of such person and the provisions of section 
10M shall, so far as may be, apply or continue to apply to such appeal. 

(2)  The  powers  of  the  Official  Assignee  or  the  Official  Receiver  under  sub-section  (1)  shall  be 
exercised by him subject to the provisions of the Presidency-towns Insolvency Act, 1909 (3 of 1909), or 
the Provincial Insolvency Act, 1920 (5 of 1920), as the case may be.] 

11. Penalty.—(1) If any person contravenes any order under clause (d) of section 6, or fraudulently 
obtains a certificate under section 7, or fraudulently affixes or applies any such mark or seal as is referred 
to in sub-section (1) of section 8, he shall, on conviction, be punishable— 

(i) for the first offence, with imprisonment for a term which may extend to two years, or with fine 

which may extend to five thousand rupees, or with both; 

(ii) for the second or subsequent three offence, with imprisonment for a term which may extend 
to 1[three years] and also with fine which may extend to five thousand rupees and in the absence of 
special and adequate reasons to be mentioned in the judgment of the court, such imprisonment shall 
not be less than three months. 

(2)Any person who attempts to commit or abets the commission of an offence punishable under sub-

section (1) shall be deemed to have committed such offence. 

(3)  If  any  person  contravenes  or  attempts  to  contravene  or  abets  the  contravention  of  any  other 
provision of this Act or any rules or orders made thereunder, he shall be punishable with fine which may 
extend to one thousand rupees. 

2 [11A.  Penalty  for  contravention  of  order  made  by  adjudicating  authority  or  Appellate 
authority.—If any person fails to pay the penalty imposed by the adjudicating or the Appellate authority 
or  fails to  comply  with any  direction  or order  made,  or  deemed  to  have  been made,  under this  Act,  he 
shall, on conviction, be punishable with imprisonment for a term which may extend to two years, or with 
fine, or with both. 

11B.  Offences  by  officers  and  employees  of  agency,  etc.—(1)  If  any  officer  or  employee  of  the 
Council or of any agency referred to in sub-section (1) of section 7, or any surveyor, sampler or employee 
of  any  testing  house,  referred  to  in  sub-section  (2)  of  that  section  enters  into,  or  acquiesces  in,  any 
agreement  to  do,  abstains  from  doing,  permits,  conceals  or  connives  at,  any  act  or  thing  whereby  any 
provision of this Act is or may be contravened, he shall, on conviction, be punishable with imprisonment 
for a term which may extend to two years, or with fine which may extend to five thousand rupees, or with 
both. 

1. Subs. by Act 40 of 1984, s. 6, for “two year” (w.e.f. 2-7-1984). 
2. Ins. by s. 7, ibid. (w.e.f. 2-7-1984). 

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(2)  If  any  officer searches or  authorises  any  other  officer  of the  Central  Government  to  search any 
place without having reason to believe that any commodity, books of account or documents or things of 
the  nature  referred  to  in  section  10Bare  secreted  in  that  place,  he  shall,  on  conviction,  be  punishable 
withimprisonment  for  a  term  which  may  extend  to  six  months,  or  with  fine  which  may  extend  to  one 
thousand rupees, or with both. 

(3) If any officer or employee of the Council or of any agency referred to in sub-section (1) of section 
7, or any surveyor, sampler or employee of any testing house, referred to sub-section (2) of that section, 
except in the discharge in good faith of his duty as such officer or employee or in compliance with any 
requisition made under any law for the time being in force, discloses any particulars learnt by him in his 
official capacity in respect of any commodity, he shall, on conviction, be punishable with imprisonment 
for a term which may extend to six months, or with fine which may extend to one thousand rupees, or 
with both. 

11C.  Correction  of  clerical  or  arithmetical  mistakes.—Clerical  or  arithmetical  mistakes  in  any 
decision  or  order,  or  errors  arising  therein  from  any  accidental  slip  or  omission  may,  at  any  time,  be 
corrected by the authority by which the decision or order was made either on its own motion or on the 
application of the aggrieved person: 

Provided  that  where  any  correction  proposed  to  be  made  under  this  section  will  have  the  effect  of 
prejudicially affecting any person, no such correction shall be made except after giving to that person a 
reasonable  opportunity  of  making  a  representation  in  the  matter  and  no  such  correction  shall  be  made 
after the expiry of a period of two years from the date on which such decision or order was made.] 

12.  Offences  by  companies.—(1)  Where  an  offence  under  this  Act  has  been  committed  by  a 
company,  every  person  who,  at  the  time  the  offence  was  committed,  was  in  charge  of,  and  was 
responsible to, the company for the conduct of the business of the company, as well as the company, shall 
be  deemed  to  be  guilty  of  the  offence  and  shall  be  liable  to  be  proceeded  against  and  punished 
accordingly: 

Provided  that  nothing  contained  in  this  sub-section  shall  render  any  such  person  liable  to  any 
punishment, if he proves that the offence was committed without his knowledge or that he exercised all 
due diligence to prevent the commission of such offence. 

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been 
committed  by  a  company  and  it  is  proved  that  the  offence  has  been  committed  with  the  consent  or 
connivance of, or is attributable to any negligence on the part of, any director, manager, secretary or other 
officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty 
of that offence and shall be liable to be proceeded against and punished accordingly. 

Explanation.—For the purposes of this section,— 

(a) “company” means a body corporate and includes a firm or other association of individuals; 

and 

(b) “director”, in relation to a firm, means a partner in the firm. 

13.  Delegation  of  powers.—The  Central  Government  may,  by  notification  in  the  Official  Gazette, 
direct that any power exercisable by it under this Act shall, in relation to such matters and subject to such 
conditions, if any, as may be specified in the direction, be exercisable also by— 

(a) the Council; 

(b) such officer or authority subordinate to the Central Government, or such State Government or 

such officer or authority subordinate to a State Government as may be specified in the direction. 

14. Procedure for  prosecution.—No prosecution for an offence punishable under this Act shall be 
instituted except by or with the consent of an officer authorised by the Central Government by general or 
special order in this behalf. 

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15.  Officers  and  employees  of  agency  to  be  public  servants.—All officers and employees of the 
Council or of any agency established or recognised under sub-section (1) of section 7and all surveyors, 
samplers and employees of testing houses, referred to in sub-section (2) of that section shall, while acting 
or purporting to act in pursuance of the provisions of this Act or any rule or order made there under, be 
deemed to be public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860). 

16.  Protection  of  action  taken  in  good  faith.—(1) No  suit,  prosecution  or other  legal  proceeding 
shall lie against the Council or any officer or employee of the Government or the Council or any agency 
referred to in sub-section (1) of section 7 for anything which is in good faith done or intended to be done 
in pursuance of this Act or any rule or order made thereunder. 

(2) No suit or other legal proceeding shall lie against the Government for any damage caused or likely 
to be caused by anything which is in good faith done or intended to be done in pursuance of this Act or 
any rule or order made thereunder. 

1[16A. Suspension, etc., of operation of the provisions of the Act.—(1) If the Central Government 
is satisfied that circumstances exist which render it necessary or expedient so to do in the public interest, 
it may, by notification in the Official Gazette, suspend or relax to a specified extent, the operation of all or 
any of the provisions of this Act in respect of such notified commodity or commodities generally or in 
respect of any area and for such period as may be specified in the notification. 

(2) Where the operation of any provision of this Act has, under sub-section (1), been suspended or 
relaxed, such suspension or relaxation may, at any time be removed by the Central Government by a like 
notification. 

(3)  Every  notification  issued  under  this  section  shall  be  laid,  as  soon  as  may  be  after  it  is  issued, 
before  each  House  of  Parliament,  while  it  is  in  session,  for  a  total  period  of  thirty  days  which  may  be 
comprised in one session or in two or more successive sessions, and if before the expiry of the session 
immediately following the session or the successive sessions aforesaid, both Houses agree in making any 
modification  in  the  notification  or  both  Houses  agree  that  the  notification  should  not  be  issued,  the 
notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; 
so,  however,  that  any  such  modification  or  annulment  shall  be  without  prejudice  to  the  validity  of 
anything previously done under that notification.] 

17. Power to make rules .—(1) The Central Government may, by notification in the Official Gazette, 

make rules to carry out the purposes of this Act. 

(2)  In  particular  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for— 

(a)  the  travelling  and  daily  allowances  payable  to  members  of  the  Council,  persons  co-opted 
under sub-section (2) of section 5, and members of specialist committees referred to in sub-section (3) 
of that section; 

(b) the functions of the Council and the procedure to be followed by it; 

(c) the appointment of officers and other employees of the Council; 

(d) the procedure to be followed for various types of quality control and inspection; 

(e)  the  conditions  which  a  testing  house,  surveyor  or  sampler  should  satisfy  for  purposes  of 

approval by the Central Government; 

(f) the fees chargeable for purposes of examination and issue of certificates under section 7; 

2 [(ff)  the  manner  in  which,  and  the  procedure  subject  to  which,  any  certificate  issued                 

under sub-section (3) of section 7 shall be amended, suspended or cancelled;] 

(g) the filing of appeals under section 7 and the fees payable therefore; 
2[(gg)  the  authority  or  person  by  which  or  by  whom,  and  the  manner  in  which,  any  document 

received from a place outside India shall be authenticated;] 

1. Ins. by Act 40 of 1984, s. 8 (w.e.f. 2-7-1984). 
2. Ins. by s. 9, ibid. (w.e.f. 2-7-1984). 

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(h) the manner in which the accounts of the Council shall be maintained and audited; 

(i) any other matter which is required to be, or may be, prescribed. 

(3) Every rule made by the  Central Government under this section shall be laid as soon as may be 
after  it  is  made  before  each  House  of  Parliament  while  it  is  in  session  for  a  total  period  of  thirty  days 
which may be comprised in one session or in two or more successive sessions, and if, before the expiry of 
the session 1[immediately following the session] or the successive sessions aforesaid, both Houses agree 
in making any  modification in the rule or both Houses agree that the rule should not be made, the rule 
shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however 
that any such modification or annulment shall be without prejudice to the validity of anything previously 
done under that rule. 

18. Act to over-ride other enactments.—As from the date on which a commodity is notified under 
clause (a) of section 6, the provisions of this Act or anything done or any action taken there under shall 
have effect in relation to that commodity notwithstanding any provisions (relating to quality control and 
inspection prior to the export of such commodity) contained in any enactment other than this Act or in 
any instrument having effect by virtue of any enactment other than this Act. 

1. Subs. by Act 40 of 1984, s. 9, for “immediately following the session”, (w.e.f. 2-7-1984). 

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