116. Manufacture of excisable goods solely for use by the manufacturer thereof

(1)     Notwithstanding anything to the contrary contained in this Act, the Commissioner may, in respect of any excisable goods manufactured by natural persons or institutions for their own use and not for sale or disposal in any manner –

[Words preceding para (a) substituted by section 142 of Act 22 of 2013 effective on 1 January 2013]

(a)     if he considers that such manufacturing results or is likely to result in loss of revenue or is likely to be detrimental to any industry in the Republic to such extent as to warrant any action described in this paragraph –

(i)      by rule prohibit the sale to any such person of any plant, apparatus, appliance, instrument or material used or capable of use in or designed for the manufacture of such excisable goods or impose such conditions in respect of the advertising or sale of such plant, apparatus, appliance, instrument or material as he deems fit;

(ii)     for the purpose of calculating the duty payable on such excisable goods manufactured by any such person, estimate the quantity thereof so manufactured or the strength or other characteristic of any such quantity in any manner he may deem fit; or

(iii)    in respect of any quantity of such excisable goods in respect of which duty will become payable, accept duty (or any portion thereof), calculated according to any basis which he deems reasonable, from any person who sells or disposes of any material for use in the manufacture of such excisable goods to the manufacturer thereof;

[Subparagraph (iii) substituted by section 72 of Act 45 of 1995]

(b)    

(i)      if he considers that such manufacturing does not result or is not likely to result in loss of revenue or is not or is not likely to be detrimental to any industry in the Republic to the extent stated in paragraph (a); or

(ii)     if in the manufacture of such excisable goods used parts or material on which any duty had been paid previously was used to such extent as he deems reasonable,

exempt such excisable goods from the whole or any portion of the duty thereon, subject to such conditions as he may in each case impose.

(2)     ……….

[Subsection (2) deleted by section 72 of Act 45 of 1995]

(3)     The manufacturer of any goods exempted from the whole or any portion of the duty in terms of this section, shall be liable for payment of the whole or such portion of the duty as the Commissioner may determine if they are sold or disposed of by such manufacturer.

(4)     The Commissioner may, subject to such conditions as he may in each case impose, exempt any goods to which this section relates from any provision of Chapter IV, V or VIII of this Act.

(5)     The Commissioner may make rules-

(a)     specifying any requirement to qualify for any exemption contemplated in subsection (1);

(b)     regarding any matter which is required or permitted in terms of this section to be prescribed by rules;

(c)     in respect of any other matter which the Commissioner may reasonably consider to be necessary and useful to achieve the efficient and effective administration of the provisions of this section.

[Subsection (5) inserted by section 142 of Act 22 of 2013 effective on 1 January 2013]

[Section 116 substituted by section 18 of Act 95 of 1965]