REGISTERED No. D. 221
The Gazette of India
EXTRAORDINARY
PART II—Section 1
PUBLISHED BY AUTHORITY
No. 6]
NEW DELHI, SATURDAY, MARCH 26, 1966/CHAITRA 5. 1888
Separate paging is given to this Part in order that it may be filed
as a separate compilation.
MINISTRY OF LAW
(Legislative Department)
New Delhi, the 26th March, 1966/Chaitra 5, 1888 (Saka)
The following President's Acts are published for general infor-
mation:-—
THE KERALA SURCHARGE ON TAXES (AMENDMENT
AND VALIDATION) ACT, 1966
No. 2 OF 1966
Enacted by the President in the Seventeenth Year of the
Republic of India.
An Act further to amend the Kerala Surcharge on Taxes Act
1957 and to validate the levy and collection of surcharge
on profession tax in certain cases.
In exercise of the powers conferred by section 3 of the Kerala
State Legislature (Delegation of Powers) Act, 1965, the President is
pleased to enact as follows: —
1. (1) This Act may be called the Kerala
Surcharge on Taxes
(Amendment and Validation) Act, 1966.
2 of 1965.
"Short title
and com-
mencement.
19
20
ttlE
GAZETTE OF INDIA EXTRAORDINARY
[PAST ft
(2) Section 4 shall be deemed to have come into force on the 1st
day of September, 1957, and the remaining provisions of this Act shall
come into force at once.
2. In section 2 of the Kerala
Surcharge on Taxes Act, 1957
(hereinafter referred to as the principal Act), for the words "apply
to the levy and collection of the said surcharge', the words "apply
in relation to the said surcharge as they apply in relation to the
income-tax or super-tax payable under the said Act" shall be
substituted.
3. In section 3 of the principal Act,—
(i) in sub-section (1),
(a) for the words and figures "the Travancore-Cochin
General Sales Tax Act, 1125 or the Madras General Sales
Tax Act, 1939", wherever they occur, the words and figures
"the Kerala General Sales Tax Act, 1963" shall be sub-
stituted;
(b) for the words "apply to the levy and collection of
the said surcharge", the words "apply in relation to the said
surcharge as they apply in relation to the tax payable under
the said Act" shall be substituted;
(ii) in sub-section (2), for the words, brackets, figures and
Letter "in sub-section (1) of section 11 of the Travancore-Cochin
General Sales Tax Act, 1125 or in sub-section (1) of section 8B
of the Madras General Sales Tax Act, 1939", the words, brackets
and figures "in sub-section (1) of section 22 of the Kerala
General Sales Tax Act, 1963" shall be substituted;
(iii) after sub-section
(2), the following sub-section shall
be inserted, namely: —
" (3) Any dealer who collects the surcharge payable
under sub-section (1) in contravention of the provisions of
sub-section (2) shall be punishable with fine which may
extend to one thousand rupees and no court below the rank
of a Magistrate of the first class shall try any such offence.".
Amendment
of section 2.
Amendment
of section 3.
Kerala Act
11 Of 1957
SEC. 1]
THE GAZETTE OF INDIA EXTRAORDINARY
21
4. For section 4 of the principal Act, the following section shall be
substituted, namely: —
"4. The profession tax payable by a person or company whose
half-yearly income is not less than one thousand and five hundred
rupees to the respective local authorities under the Trivandrum
City Municipal Act, the Travancore District Municipalities Act,
1116, the Cochin Municipal Act, XVIII of 1113, the Madras District
Municipalities Act, 1920, the Travancore-Cochin Panchayats Act,
1950, the Madras Village Panchayats Act, 1950 or the Madras
District Boards Act, 1920, shall be increased by a surcharge for
the purpose of the Government at the rate of five per centum
of the profession tax so payable and the local authorities con-
cerned shall levy and collect the said surcharge along with the
profession tax in the same manner as if it were a profession tax
and the provisions of the law governing the levy and collection
of such tax shall in all respects aprrty therefor:
Provided that—
(i) no surcharge on such tax shall be levied under this
section where the profession tax payable by a person or
company to any one of the said local authorities is two
hundred and fifty rupees or more per annum; and
(ii) where the profession tax payable by a person
or
company to any one of the said local authorities is less than
two hundred and fifty rupees per
annum
and such tax
together with the surcharge exceeds two hundred and fifty
rupees per annum, the surcharge leviable under this section
shall be a sum which together with such tax amounts to two
hundred and fifty rupees per annum.".
5. (1) Notwithstanding anything contained
in
any
judgment,
decree or order of any court, where any surcharge has been levied or
collected before the date of publication of this Act in the purported
exercise of the powers conferred by section 4 of the principal Act as
originally enacted and—
(i) in any case where the aggregate amount of t=uch surchar_
and the profession tax referred to in the said section 4 which is
payable by a person or a company does not exceed the limit «of
two hundred and fifty rupees per annum, then, such surcharge
Travancore
Act IV of
1116.
Travancore
Act XXIII
of
1116.
Cochin Act
XVIII of
Madras Act
V of 1920.
I ravanco re-
Cochin Act
II of ig<so.
Madras Act
X of 1950.
Madras Act
XIV of 1920.
Validation
Substitution
of new
section for
section 4.
Levy of
surcharge on
profession
tax.
22
THE GAZETTE OF INDIA EXTRAORDINARY
[PART II
shall be deemed to have been validly levied or collected in
accordance with law;
(ii) in any case where the aggregate
amount of such
surcharge and profession tax which is payable by a person or a
company exceeds the limit of two hundred and fifty rupees per
annum, then, that portion of the surcharge, if any, which together
with such profession tax does not exceed the said limit, shall be
deemed to have been validly levied or collected in accordance
with law,
as if such levy or collection had been made under section 4 of the
principal Act as substituted by this Act, and accordingly—
(a) no suit or other proceeding shall be maintained or conti-
nued in any court for the refund of the surcharge referred to in
clause (i) or such portion of the surcharge as is referred to in
clause (ii), as the case may be, which has already been paid; and
(b) no court shall enforce any decree or order in so far as it
relates to the refund of such surcharge or portion, as the case may
be, which has already been paid.
(2) For the removal of doubts it is hereby declared that nothing
In sub-section (1) shall be construed as preventing any person from
claiming any refund of any surcharge paid by him in excess of the
amount due from him under
section
4 of
the
principal Act as
substituted by this Act.
S. RADHA KRISHNAN,
President.
S. P. SEN-VARMA,
Secy, to the Govt. of India.
SEC. 1]
THE GAZETTE OF INDIA EXTRAORDINARY
23
Reasons for the enactment
Section 2 of the Kerala Surcharge on Taxes Act, 1957, provides
that the agricultural income-tax payable
under
the Agricultural
Income Tax Act, 1950, shall b<? increased by a surcharge and that the
provisions of the Agricultural Income Tax Act, 1950, shall apply to
the levy and collection of the said surcharge. Section 3 of the
Kerala Surcharge on Taxes Act, 1957, contains a similar provision
for the levy of surcharge on sales tax. It Is felt that the existing
provisions, namely, the provisions of the Agricultural
Income
Tax Act, 1950 or the General Sales Tax law shall apply to the levy
and collection of the surcharge, may not be sufficient to make the
provisions of the Agricultural Income Tax Act, 1950 or the General
Sales Tax law relating to appeals, revisions, references, penalties and
compounding of offences applicable for the levy and collection of the
surcharge. It
is,
therefore,
considered
necessary
to make the
intention clear.
2. According to sub-section (2) of section 3 of the Kerala Surcharge
on Taxes Act, 1957, a dealer is not entitled to collect the surcharge
payable by him under sub-section (1) of the said section. It is not
possible to impose penalty for making such collection by the applica-
tion of the provisions of ihe General Sales Tax law, since under that
law collection of tax by registered dealers is allowed. It is, therefore,
considered necessary to make a provision for
the punishment of
dealers who collect the surcharge
3. In its judgment dated 24th September, 1963, in OP. No. 1342
of 1962, the Kerala High Court has struck down section 4 of the
Kerala Surcharge on Taxes Act, 1957, on the ground that it contra-
venes clause (2) of article 276 of the Constitution. In the light of
the judgment, it is considered necessary to amend section 4 of the
Act so as to provide that the profession tax on persons and companies
and the surcharge shall not exceed two hundred and fifty rupees per
annum, the limit specified in clause (2) of article 276 of the Constitu-
tion, It is also considered necessary to give retrospective effect to
the amendment from the 1st September, 1957, the date on which tb
Kerala Surcharge on Taxes Act, 1957, came into force.
4. In view of the judgment referred to, the levy and collection of
surcharge on profession tax on persons and companies already made
have been rendered invalid. It is considered necessary to validate
24
THE GAZETTE OF INDIA EXTRAORDINARY
[PART II
the levy and collection of such surcharge, subject to the limit specified
in clause (2) of article 276 of the Constitution.
5. The present enactment is intended to achieve the above objects.
6. The Committee constituted under the proviso to sub-section (2)
of section 3 of the Kerala State Legislature (Delegation of Powers)
Act, 1965 (12 of 1965), has approved the enactment of this measure
as a President's Act.
P. GOVINDAJST NAIR,
Secretary to the Government of Indm
Ministry of Finance.
THE KERALA UNIVERSITY (AMENDMENT) ACT , 1966
No. 3 OF 1966
Enacted by the President in the Seventeenth Year of the
Republic of India.
An Act to amend the Kerala University Act, 1957
In exercise of the powers conferred by section 3 of the Kerala
State Legislature (Delegation of Powers) Act, 1965, the President is
pleased to enact as follows:-—
1. This Act may be called the Kerala University
(Amendment)
Act, 1966.
2. In section 10 of the Kerala University Act, 1957
(hereinafter
referred to as the principal Act),—
(i) in sub-section (1), the following shall be added at the
end, namely: —
"and if the special committee fails to submit a panel of
three names before the expiry of the term of office of the
Vice-Chancellor, another special committee
consisting of
three new members, one elected by the Senate, one elected
by the Syndicate and the third nominated by the Chancellor,
shall, within three months of its constitution, make a unani-
Short title.
Amendment
of section 10.
12 of 1965,
Kerak Act
XIV of 1957.
Sac. 1]
WtE 6A2ET*E 6F fNt>IA E^TRAORDMAHV
45
mous recommendation of a person for appointment as Vice-
Chancellor and the Chancellor shall appoint such person as
Vice-Chancellor; and in case the committee is unable to
recommend a name unanimously, it shall submit, within
the said period of three months, a panel of three names to
the Chancellor who shall appoint one from among the panel
as Vice-Chancellor";
(ii) in sub-section (3), the following proviso shall be added
at the end, namely: —
"Provided that the Vice-Chancellor shall, notwithstand-
ing the expiration of his term of office, continue to hold
office until his successor is appointed by the Chancellor.".
3. (1) The Kerala University
(Amendment)
Ordinance, 1966,1
is hereby repealed.
(2) Notwithstanding such repeal,—
(a) any appointment made under the principal Act as
amended by the said Ordinance shall be deemed to have been
made in accordance with law and shall continue for the period
for which it has been made; and
(b) any other action or thing talcen or done under the prin-
cipal Act as amended by the said Ordinance shall be deemed to
have been validly taken or done under the principal Act
as
amended by this Act, as if this Act had commenced on the 28th
day of January, 1966.
Kerala Ordi-
nance I of
1966.
Repeal and
savings.
S. RADHAKRISHNAN,
President.
S. P. SEN-VARMA,
Secy, to the Govt. of India.
26
THE GAZETTE OF INDIA EXTRAORDINARY
[PART \\
Reasons for the enactment
According to section 10 (1) of the Kerala University Act, 1957
the Vice-Chancellor shall be appointed by the Chancellor on the una-
nimous recommendation of a special committee consisting of three
members, one elected by the Senate, one elected by the Syndicate
and one nominated by the
Chancellor. In case
the com-
mittee is unable
to recommend a
name
unanimously, the
Vice-Chancellor shall be appointed
by the Chancellor
from
among a penal of three names submitted to him by the special
committee. The term of office of the Vice-Chancellor was due to
expire on the 28th of January, 1966. With a view to appointing a suc-
cessor to the Vice-Chancellor, a special committee was
therefore
constituted under the aforesaid section but the committee was un-
able either to make a unanimous recommendation of a name for the
office of the Vice-Chancellor or to submit a panel of three names
before the expiry of the term of the Vice-Chancellor, namely, the
28th January, 1966.
2. Since the Act does not contain any provision for filling up the
vacancy in the office of the Vice-Chancellor except on the unanimous
recommendation of, or from a panel of three names submitted by,
the special committee and since there was no provision allowing the
Vice-Chancellor to continue in office till a successor was appointed,
it became imperative to provide for an alternative method of appoint-
ing the Vice-Chancellor, particularly
as there was
a
deadlock
created by the disagreement among the members of the special
committee.
3. It was therefore considered necessary that the Kerala Univer-
sity Act should be amended so as to enable the Chancellor to
appoint the Vice-Chancellor in such contingencies and also to
provide for continuance in office of a Vice-Chancellor
after
the
expiry of his term of office till his successor is
appointed.
As there was no time to get the necessary legislation enacted by
the President and as Parliament was not in session, the Governor
was pleased to promulgate the Kerala University
(Amendment)
Ordinance, 1966, for the purpose on the 28th January, 1966.
4. As a permanent measure, however, it is felt that the needs of
the situation will be met if provision is made for constituting
another special committee consisting of three new members, nomi-
SKC. 1]
THE GAZETTE OF INDIA EXTRAORDINARY
27
nated or elected, as the case may be, by the Chancellor, the Senate
and the Syndicate with the same functions as the first special
committee and it is required to make recommendation to the Chan-
cellor within a period of three months of its constitution. There
should also be provision for the Vice-Chancellor continuing in office
until his successor is appointed. The present enactment replaces
the Ordinance with the modification referred to above.
5. The Committee constituted under the proviso to sub-section (2)
of section 3 of the Kerala State Legislature (Delegation of Powers)
Act, 1965 (12 of 1965) has been consulted before the enactment of
this measure as a President's Act.
G. K. CHANDIRAMANI,
Additional Secretary to the Govt. of India,
Ministry of Education.
PHINTBD m
INDIA BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS,
MINTO ROAD, NZW DELHI AND PUBLISHED BY THE MANAGER OF PUBLICATIONS)
DELHI, 1966.
