Section 6 of CTA, 1975 : Section 6: Power Of Central Government To Levy Protective Duties In Certain Cases

Explanation using Example

Imagine that the Indian bicycle manufacturing industry is struggling due to a surge in cheap bicycle imports from another country. The Tariff Commission conducts an investigation and recommends to the Central Government that an additional customs duty should be imposed on imported bicycles to protect the local manufacturers.

In response, the Central Government issues a notification in the Official Gazette, imposing an additional duty on imported bicycles as per the Tariff Commission's recommendation. This additional duty is treated as if it was included in the First Schedule of the Customs Tariff Act, which lists all the duties leviable on imported goods.

Following the imposition of this duty, the Central Government is required to introduce a Bill in the next session of Parliament to formalize this protective measure. If the Bill is not passed into law within six months, the notification and the additional duty will cease to have effect, but any collections made during this period will still be valid.