REGISTERED NO. DL-33004/2001
The Gazette of India
EXTRAORDINARY
PART II—SECTION 2
PUBLISHED BY AUTHORITY
No. 50] NEW DELHI, FRIDAY, DECEMBER 7, 2001 / AGRAHAYANA 16,1923 Separate paging i§ given to this Part in order that it may be filed as a separate compilation.
LOK SABHA
The following Bill was introduced in Lok Sabha on 7th December, 2001.
BILL No. 117 OF 2001
A Bill to amend the Jute Manufactures Cess Act, 1983.
Be it enacted by Parliament in the Fifty-second Year of the Republic of India as
follows:—
Short tide and
1. (i) This Act may be called the Jute Manufactures Cess (Amendment) Act,
commencement
2001.
(2) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, specify.
2. For the Schedule to the Jute Manufactures Cess Act, 1983, the following
Schedule shall be substituted, namely:—
Substitution of
a new Schedule
for Schedule to
Act 28 of
1983.
2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—
"THE SCHEDULE
[See sections 2(a) and 3(7)]
Articles of jute manufacture
SI. No.
The maximum rate at which duty of excise may be collected
Actual rate at which duty of excise is to be collected until a different rate is specified by the Central Government
1
3
4
2
One per cent, ad valorem
Two per cent, ad valorem
Carpet Backing
1.
Two per cent, ad valorem
One per cent, ad valorem Hessian
2.
One per cent, ad valorem
Two per cent, ad valorem
Sacking
3.
One per cent, ad valorem
Two per cent, ad valorem
Yarn and Twine
4.
One per cent, ad valorem
Two per cent, ad valorem
D.W. Tarpaulin
5.
One per cent, ad valorem
Two per cent, ad valorem
Decorative Fabrics
6.
One per cent, ad valorem
Two per cent, ad valorem
Cotton Bagging
7.
One per cent, ad valorem
Two per cent, ad valorem
8. Soil Saver
One per cent, ad valorem
Two per cent, ad valorem
Japanese Rice Bags
9.
One per cent, ad valorem.".
Two per cent, ad valorem
10. Any other article of jute manufactureSEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 3
STATEMENT OF OBJECTS AND REASONS
The Jute Manufactures Development Council (JMDC) was set up originally in 1976 under the Industries (Development and Regulation) Act, 1951, as a development council. It was established as a statutory body in the present form under the Jute Manufactures Development Council Act, 1983 (JMDC Act, 1983) which provides for the establishment of a Council for the development of production of jute manufactures by increasing the efficiency and productivity in the jute industry, the financing of activities for such development and matters concerned therewith. For this purpose, the Council receives grants from the Consolidated Fund of India to which the proceeds of cess collected on jute manufactures are credited.
2. The Jute Manufactures Cess Act, 1983 (JMC Act, 1983) was enacted to provide for the levy and collection, by way of cess, a duty of excise on jute manufactures. The cess is being collected by the Central Government and credited lo the Consolidated Fund of India. Funds are provided to the Jute Manufactures Development Council by appropriation through the budget. Under the said Act, cess is collected as a duty of excise at a fixed rate on different articles on per tonne basis specified in the Schedule to the JMC Act, 1983. At present, the cess is being collected at the maximum rate specified in the Schedule to the JMC Act, 1983. The rate of cess collections under the JMC Act, 1983 are inelastic and found to be inadequate to meet the requirement for development and promotion of activities concerning jute industry as specified in section 7 of JMDC Act ,1983.
3. It is, therefore, considered necessary to increase the resources through proposed cess to enable JMDC to take up a range of activities for the development of the jute industry, particularly in the context of the need for improving productivity and competitiveness in the jute sector. It is proposed to levy cess on the articles of jute manufacture on ad valorem basis instead of per tonne basis to increase the resources.
4. The proposal to levy cess on ad valorem basis will increase the collection of cess on jute manufactures in comparison to the amount now collected on per tonne basis specified in the Schedule to the JMC Act, 1983. The levy of cess on ad valorem basis instead of per tonne basis will enable the collections to keep pace with the increasing value of jute manufactures. The increased collections will also enable JMDC to meet its statutory obligations for taking various measures for development of jute manufactures and the modernisation of the jute sector, including jute industry.
5. In view of above, it is felt necessary to bring an amendment to the Jute Manufactures Cess Act, 1983 to provide for collection of cess on jute manufactures at a maximum rate of two per cent, ad valorem and at an actual rate of one per cent, till a different rate is specified by the Central Government instead of levy of cess on per tonne basis.
6. The Bill seeks to achieve the aforesaid object.
KASHIRAM RANA.
NEW DELHI;
The 29th November, 2001.
4 THE GAZETTE OF INDIA EXTRAORDINARY [ PART II—SEC. 2]FINANCIAL MEMORANDUM
Clause 2 of the Bill proposes to substitute Maximum rate and Actual rate at which duty of excise is to be collected on jute manufactures, as specified in Schedule to the Jute Manufactures Cess Act, 1983, from the prevailing rates, on quantity basis to two per cent, maximum and one per cent, actual, ad valorem.
2. There is no extra expenditure involved as a result of implementation of the above proposal since cess will be collected by the existing machinery, namely. Department of Revenue.
G.C.MALHOTRA, Secretary-General.