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:—

1. (i) This Act may be called the Jute Manufactures Cess (Amendment) Act,

2001.

(2) It shall come into force on such date as the Central Government may, by

notification in the Official Gazette, specify.

Short tide and

commencement

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)]

SI. No.

1

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Articles of jute manufacture

2

Carpet Backing

Hessian

Sacking

Yarn and Twine

D.W. Tarpaulin

Decorative Fabrics

Cotton Bagging

Soil Saver

Japanese Rice Bags

Any other article of jute

manufacture

The maximum rate at which duty of

excise may be collected

3

Two per cent, ad valorem

Two per cent, ad valorem

Two per cent, ad valorem

Two per cent, ad valorem

Two per cent, ad valorem

Two per cent, ad valorem

Two per cent, ad valorem

Two per cent, ad valorem

Two per cent, ad valorem

Two per cent, ad valorem

Actual rate at which duty of excise

is to be collected until a different

rate is specified by the Central

Government

4

One per cent, ad valorem

One per cent, ad valorem

One per cent, ad valorem

One per cent, ad valorem

One per cent, ad valorem

One per cent, ad valorem

One per cent, ad valorem

One per cent, ad valorem

One per cent, ad valorem

One per cent, ad valorem.".

SEC. 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.

PRINTED BY THE MANAGER, GOVERNMENT OFINDIA PRESS (PLU), MINTO ROAD, NEW DELHI

AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHL 2 0 0 1 .

MQIP(PLU)MRND—4149LS—11-12-Z001.