REGISTERED NO. D.221

The Gazette of India

EXTRAORDINARY

PART II—Section 1

PUBLISHED BY AUTHORITY

No. 15]

NEW DELHI, MONDAY, MAY 23, 1966/JYAISTHA 2, 1888 (saka)

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 23rd May, 1966/Jyaistha 2, 1888 (Saka)

The following Act of Parliament received the assent of the

President on the 21st May, 1966, and is hereby published for general

information: —

THE PRODUCE CESS ACT, 1966

No. 15 OF 1968

r21st May, 19661

An Act to provide for the imposition of cess on certain produce

for the improvement and development of the methods of

cultivation and marketing of such produce and for matters

connected therewith.

BE it enacted by Parliament in the Seventeenth Year of the

Republic of India as follows:—

1. (1) This Act may be called the Produce Cess Act, 1966

(2) It extends to the whole of India.

Short

title and

extent.

2. In this Act, unless the context otherwise requires,—

Definition?

(141)

l 4²

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II

(a) Collector" means the officer appointed by the Central

Government to perform in any specified area the duties of a

Collector under the provisions of this Act and the rules made

thereunder, and includes any officer subordinate to that officer

whom he may, by order in writing, authorise to perform his

duties under those provisions;

(b) "cotton" means raw cotton, whether baled or loose,

which has been ginned;

Customs Act, 1962;

32 of 1962.

(d) "Indian Council of Agricultural Research" means the

body registered in that name under the Societies Registration

Act, 1860;

21 of 1860.

(e) "lac" includes any form of manufactured or unmanu-

factured lac ether than refuse lac;

(f) managing agent" has the meaning assigned to it in the

Companies Act, 1956;

l of 1986.

(g) mill means,—

(i) in relation to cotton, any place which is a factory

as denned in section 2 of the Factories Act, 1948, and in

which, or in any part of which, cotton is converted into

yarn or thread either for sale as such or for conversion into

cotton goods,

(ii) in relation to copra or oil-seed and oil, any premises

in which or in any part of which, copra or oil-seed, as the

case may be, is crushed, or is ordinarily crushed, with the

aid of power for. the extraction of oil.

Explanation.—"Power" means electrical energy or any

other form of energy, which is mechanically

transmitted

and is not generated by human or animal agency,

(iii) in relation to any other produce, such place as the

Central Government may, by notification in the

Official

Gazette, specify;

63 of 1948.

(h) "occupier", in relation to any mill, means the person

who has the ultimate control over the affairs of the mill and

wnere the said affairs are entrusted to a managing agent, such

agpnt shall be deemed to be the occupier of the mill;

(i) "oil-seed" does not include copra;

(j) "prescribed" means prescribed by rules made

under

this Act;

(fc) "produce" means any goods specified in the First

Schedule or the Second Schedule.

SEC 1]

THE GAZETTE OF INDIA EXTRAORDINARY

143

3. (1) There shall be levied and collected as a cess, for the pur-

poses of this Act, on every - produce specified in column 2 of the

First Schedule, which is exported from any customs port to any port

beyond the limits of India, a duty of customs at such rate, not

exceeding the rate specified in the corresponding entry in column 3

thereof, as the Central Government may, by notification in the

Official Gazette, specify :

Provided that until such rate is specified by the Central Govern-

ment, the duty of customs shall be levied and collected at the rate

specified in the corresponding entry in column 4 of the said

Schedule.

Imposition

of cess.

(2) There shall be levied and collected as a cess, for the purposes

of this Act, on every produce specified in column 2 of the Second

Schedule, a duty of excise at such rate, not exceeding the rate

specified in the corresponding entry in column 3 thereof, as the

Central Government may, by notification in the Official Gazette,

specify:

Provided that until such rate is specified by the Central Govern-

ment, the duty of excise shall be levied and collected at the rate

specified in the corresponding entry in column 4 of the said Schedule.

4. Every duty of customs leviable under this Act on any produce

shall be payable by the person by whom such produce is exported

from India and every duty of excise leviable under this Act on any

produce shall be payable by the occupier of the mill in which such

produce is consumed or extracted.

Persons

who shall

be liable

to pay

duty.

5, (1) An amount equivalent to the proceeds of the duty levied

and collected under this Act, reduced by the cost of collection as

determined by the Central Government, together with any moneys

received by the Central Government for the purposes of this Act,

shall, after due appropriation made by Parliament by law, be

utilized

by the Central Government to meet the expenditure

incurred in connection with measures which, in the opinion of that

Government, are necessary or expedient to promote the improve-

ment, development and marketing of produce.

(2) In particular, and Without prejudice to the generality of the

provisions of sub-section (I), the proceeds of the duty levied and

collected under this Act may be utilized by the Central Government

for all or any of the following purposes, namely :—

(a) undertaking, assisting or encouraging, agricultural,

industrial, technological and economic research,, including

research on the utilization of the products obtained from any

produce ;

(b) supplying technical advice to cultivators, growers and

millers;

Appli-

cation of

proceeds

of cess.

144

T H E GAZETTE OF INDIA EXTRAORDINARY

[PART II

vation and storage of crops ;

(d) producing, testing and distributing improved varieties

of crops or assisting such work;

(e), assisting in the control of insects and other pests and

diseases of the crops, both in the field and in storage;

(/) promoting the improvement of the marketing of produce

and the products obtained therefrom in India and abroad Inclu-

ding the setting up and adoption of grade standards for the pro-

duce and the products obtained therefrom;

(fir) collecting statistics from cultivator growers, dealers

and occupiers of mills on all relevant matters and promoting

improvement in the forecasting of crops and the preparation

of all relevant statistics relating to the crops and the products

obtained therefrom;

(h) maintaining, and assisting in the maintenance of, such

institutes, farms and stations as the Central Government may

consider necessary;

(i) advising and providing assistance on all matters connect-

ed with the improvement of the cultivation of crops (including

advising on the best and most suitable varieties of the crops

to be cultivated) and the improvement of the industries using

the crops and the products obtained therefrom ;

(j) promoting and encouraging the co-operative movement

in any connected industry ;

(?c) adopting such measures as may be practicable for en-

suring remunerative returns to the growers ;

(1) organising the establishment of cultivators', growers',

millers' and consumers' organisations;

(m) aiding and encouraging the establishment of exhibitions

for demonstrating the uses of the produce and the products ob-

tained therefrom;

(n) adopting any other measures which the Central Goveni

ment may deem to be necessary or advisable to carry out the

purposes of this Act.

(3) In this section, "crops" means crops or plants from which

any produce is obtained.

Refund

Ot CMS

cm oihi

exported

from

India.

6. There shall be refunded from out of the proceeds of cess levied

and collected under this Act, on such conditions as may be prescribed,

all sums collected as cess on the quantity of oils exported from

India, if such oils have been extracted from oil-seed or copra crush-

ed in a mill ir. India, irrespective of whether the oil-seed or copra

is produced in, or imported into, India.

gEC 1J

THE GAZETTE OF INDIA EXTRAORDINARY

145

7. The occupier of every mill shall,—

(a) if the mill was established before the commencement of

this Act, within fourteen days from such commencement, and

(b) if the mill is established after the commencement of

this Act, within fourteen days from such establishment,

furnish to the Collector a statement containing the following parti-

culars, namely: —

(i) the name and situation of the mill;

(ii) the name and address of the occupier;

(iii) the address to which the communications relating to the

mill may be sent; and

(iu) the total capacity of the mill.

Occupier

to sup-

ply cer-

tain parti-

culars to

Collector.

8. (1) Every occupier of a mill shall furnish to the Collector every

month a return stating the total amount of produce, specified in the

Second Schedule, consumed or brought under processing or extracted

in the mill during the preceding month.

(2) The return referred to in sub-section (J) shall be furnished

before the seventh day of each month together with such other in-

formation as may be prescribed.

(3) Every such return shall be made In such form and shall be

verified In such manner as may be prescribed.

Delivery

of month-

ly re-

turns.

9. (1) On receiving any return made under section 8, the Collec-

tor shall assess the duty of excise payable on every produce specified

In the Second Schedule, in respect of the period to which the return

relates, and if the amount has not already been paid, shall cause a

notice to be served upon the occupier of the mill requiring him to

make payment of the amount assessed within ten days of the service

of the notice.

(2) If the occupier of any mill fails to furnish in due time the

return referred to in section 8 or furnishes a return which the

Collector has reason to believe is incorrect or defective, the Collector

shall assess the amount payable by him in such manner, if any, as

may be prescribed, and the provisions of sub-section (1) shall there-

upon apply as if such assessment had been made on the basis of a

return furnished by the occupier :

Provided that, in the case of a return which he has reason to

believe is incorrect or defective, the Collector shall not assess the

duty of excise at an amount higher than that at which It is assessable

on the basis of the return without giving to the occupier a reasonable

Collection

of cess

leviable

on pro-

duce

specified

Second

Schedule.

146

THE GAZETTE OF INDIA EXTRAORDINARY

[PAHT II

opportunity of proving the correctness and completeness of the

return.

(3) A notice under sub-section (1) may be served on the occupier

of a mill either by registered post or by delivering or tendering it

to the occupier or his agent at the mill,

Finality

assess-

ment.

10. (1) Any occupier of a mill who is aggrieved by an assessment

made under section 9 may, within three months of service of the

notice referred to in sub-section (1) of that section, appeal to such

authority as the Central Government may, by notification in the

Official Gazette, appoint in this behalf, for the cancellation or modifi-

cation of the assessment and, on such appeal, the said authority

may cancel or modify the assessment and order the refund to such

occupier of the whole or part, as the case may be, of the amount

paid thereunder :

Provided that the authority so appointed shall not be inferior in

rank to the Collector by whom the assessment was made.

(2) The appellate authority may, if it is satisfied that the appellant

was prevented by sufficient cause from presenting the appeal within

the aforesaid period of three months, allow it to be presented within

a further period of one month.

(3) Where the appellate authority is of opinion that any duty of

excise has been short-levied, no order enhancing the duty of excise

shall be made unless the appellant has been given notice to show

cause, within one month from the date of service thereof, against the

proposed order.

(4) The Central Government may, on the application of any

person aggrieved by any order made under eub-sectlon (1) or sub-

section (3), cancel or modify such order, if such application is made

within six months from the date of the order made under sub-section

(1) or sub-section (3), as the case may be.

(5) The Central Government may, if It is satisfied that the appli-

cant was prevented by sufficient cause from presenting the application

within the aforesaid period of six months, allow it to be presented

within a further period of one month.

(6) The decision of the Central Government, and subject to the

decision of the Central Government, the decision of the appellate

authority, shall be final.

Collection

of cess

on any

produce

specified

in FIrrt

Schedule.

11. (I) The Collector shall in respect of any produce specified

in the First Schedule which is exported by sea assess and collect the

duty of customs at the customs port of export.

SEC. 1]

THE GAZETTE OF INDIA EXTRAORDINARY

i 47

(2) Where any produce specified in the First Schedule is exported

by land, the duty of customs leviable under this Act on such produce

shall be assessed and collected by such authority and in such manner

as may be prescribed, and, until so prescribed, such duty of customs

shall be levied and collected in accordance with the law in force

immediately before the commencement of this Act.

54 of 1963.

(3) The Central Board of Excise and Customs constituted under

the Central Boards of Revenue Act, 1963, may, by rules, specify the

conditions and restrictions subject to which—

(a) refund may be made of the duty of customs levied on any

produce specified in the First Schedule which is exported by

land, where such produce is subsequently imported into India,

(b) export may be made by land, without payment of any

duty of customs, of any produce specified in the First Schedule

which is intended to be. brought back to India.

12. Where any duty of customs or excise demanded from any

person or any penalty payable by any person under this Act is not

paid,—

(a) the Collector may deduct the amount so payable from

any money owing to such person which may be under the control

of the Collector or any other officer; or

(b) the Collector may recover the amount so payable by

detaining and selling any goods belonging to such person which

are under the control of the Collector or any other officer ; or

In the manner provided in clause (a) or clause (b), the Collector

may prepare a certificate signed by him specifying the amount

due from such person and send it to the Collector of the district

in which such person owns any property or resides or carries on

his business and the said Collector shall, on receipt of such

certificate, proceed to recover from the said person the amount

specified therein as If it were an arrear of land revenue.

Recovery

Of aums

due to

Govern-

ment.

13. (1) The Collector or any officer empowered by general or

special order of the Central Government in this behalf shall have free

access at all reasonable times during working hours to any mill or

any part of a mill.

(2) The Collector or any such officer may, at any time during

working hours, with or without notice to the occupier, examine the

purchase, sale and stock records and accounts of any mill and take

copies of or extracts from all or any of the said records or accounts

for the purpose of testing the accuracy of any return or of informing

himself as to the particulars regarding which information is required

for the purposes of this Act or any rules made thereunder:

Power t»

inspect

mills

and take

copies of

account.

148

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II

Provided that nothing in this section shall be deemed to authorize

tho examination of any description or formulae of any trade process.

Infor-

mation ac-

quired to

be con-

fidential.

14, (]) All such copies and extracts and all information acquired

by a Collector or any other officer from any inspection of any mill

or from any return submitted under this Act shall be treated as

confidential.

(2) If the Collector or any such officer discloses to any person,

other than a superior officer, any such information as aforesaid, with-

out the previous sanction of the Central Government, he shall be

punishable with imprisonment for a term which may extend k» six

months and shall also be liable to fine :

Provided that nothing in this section shall apply to the disclosure

of any such information for the purpose of a prosecution in respect

of the making of a false return under this Act.

Provisions

of cer-

tain Acts

to apply.

15. (I) The provisions of the Customs Act, 1962, and the rules

and regulations made thereunder, including those relating to refunds

and exemptions from duty, shall, so far as may be, apply in relation

to the levy and collection of duties of customs on any produce

specified in the First Schedule as they apply In relation to the levy

and collection of duty payable to the Central Government under that

Act.

S2of 19G2.

(2) The provisions of the Central Excises and Salt Act, 1944, and

the rules made thereunder, including those relating to refunds and

exemptions from duty, shall, so far as may be, apply in relation to

the levy and collection of duties of excise on any produce specified

in the Second Schedule as they apply in relation to the levy and

collection of duty payable to the Central Government under that Act.

X of 1944.

Offences.

16. (1) Whoever—

(o) evades the payment of any duty of customs or excise

payable under this Act, or

(b) fails to furnish any return or information which it is

his duty to furnish under this Act or furnishes a return or infor-

mation which is false in material particulars or which he does

not believe to be true, or

formance of his duties under this Act or any rules made there-

under,

shall be punishable with imprisonment-for a term which may extend

to six months, or with fine which may extend to two thousand rupees,

or with both.

SEC. 1]

THE GAZETTE OF INDIA EXTRAORDINARY

149

(2) Any court trying an offence under this Act may direct that

any produce in respect of which it is satisfied that an offence punish-

able under this Act has been committed shall be forfeited to Govern-

ment and may also direct that all packages, coverings or receptacles

in which such produce is contained and every animal, vehicle, vessel

or other conveyance used in carrying such produce shall be forfeited

to Government.

17. No prosecution for any offence punishable under this Act shall

be instituted against any person except by, or with the consent of,

the Collector.

Limitation

of pro-

secution.

18. Any offence punishable under this Act may, either before or

after the institution of the prosecution, be compounded by the

Collector or any other officer authorised by him in this behalf on

payment to the Central Government, for the purposes of this Act,

of such sum as the Collector or such officer, as the caae may be,

f.ViinVa fit.

Composi--

tion of

offenCM.

19. (1) No suit, prosecution or other legal proceeding shall lie

against the Central Government or any person authorized by the

Central Government for anything which is in good faith done or

intended to be done in pursuance of this Act or any rule or order

made thereunder.

Protection

of action

taken in

eodCl'ftiflti-

(2) No suit or other legal proceeding shall lie agairurt the Central

Government or any person authorized by the Central Governm«nt

for any damage caused or likely to be caused by anything which is

in good faith done or intended to be done in pursuance of any of the

provisions of this Act or any rule or order made thereunder.

20. (1) The Central Government may, by notification in th«

Official Gazette, make rules to carry out the purposes of this Act.

(2) In particular, and without prejudice to the generality of the

foregoing power, such rules may provide for all or any of the follow-

ing matters, namely: —

(o) conditions subject to which refund may be made of any

sums collected as duties of excise on any quantity of oil exported

from India;

(b) the form of the monthly return which every occupier

of a mill should submit to the Collector and the manner in which

such return shall be verified;

furnish in the monthly returns;

Power to

make

ruloa.

150

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II

(d) manner in which assessment of duties of excise shall be

made where no return has been furnished or the return which

has been furnished is believed by the Collector to be incorrect or

defective;

(e) the authority by which and the manner in which the

duties of customs leviable under this Act shall be collected on

any produce specified in the First Schedule which is exported

by land; and

(f) any other matter which is required to be, or may be,

prescribed.

Power to

rvmov*

difficulties,

21, If any difficulty arises in giving effect to the provisions of

this Act, the Central Government may, by order, make such directions,

not inconsistent with the provisions of this Act, as appear to it to

be necessary or expedient for the removal of the difficulty:

Provided that no such directions shall be made after the expiry

of a period of three years from the date of commencement of this

Act

Rules to

be laid

before

Parlia-

ment.

22. Every rule made under this Act shall be laid as soon as may

be after It is made, before each House of Parliament while it is in

session for a total period of thirty days which may be comprised in

one session or In two successive sessions, and if, before the expiry

of the session in which it is so laid or the successive sessions afore-

said, both Houses agree in making any modification in the rule or

both Houses agree that the rule should not be made, the rule shall

thereafter have effect only in such modified form or be of no effect,

as the case may be; so, however, that any such modification or annul-

ment shall be without prejudice to the validity of anything pre-

viously done under the rule.

Sac 1]

THE GAZETTE OF INDIA EXTRAORDINARY

iSJ

THE FIRST SCHEDULE

[See section 3(1)]

No.

Name of the

produce.

Lac produced in

India.

Refuse lac produced

In India.

The

maximum

rate

which

duty of customs

may be collected.

Rupees two

and

thirty paise per

quintal.

Rupee

one

and

seventy

paise

per quintal.

Actual

rate

which

duty

customs

collected un-

til

different

rate

specified

the

Central

Government.

Rupee*

two

and

thirty

paise

per

quintal.

Rupee

one

and

seventy palie per

quintal.

c52

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II—Sic. 1]

THE SECOND SCHEDULE

[See section 3(2)]

No.

Name of the

produce.

Cation consumed in

any mill in India

with a view to

producing

manufacturing any

goods therefrom.

Copra consumed in

any mill in India

with a view

producing or ma-

nufacturing

any

goods therefrom.

Oils extracted from

oil-seed crushed In

any mill in India.

The

maximum

rate

which

duty

of excise

may be collected.

One rupee per bale

of i8i-4

kilo-

grams, or in the

case of unbaled

cotton,

twenty-

eight paise

per

50 kilograms.

Seventy-five paise

per quintal

copra.

One rupee

per

quintal of oil.

Actual rate at which

duty of excise is to

collected

until a

different

rate

specified

the

Central

Government.

Seventy-five _ paise

per bale of 181-4

kilograms, or

the case of unbaled

cotton, twenty-one

paise per 50 kilo-

grams.

Sixty

paise

per

quintal of copra,

Sixty

paise

per

quintal of oil.

S. P. SEKT-VARMA,

Secy, to the Govt, of India.

PRINTED IN INDIA BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRXS8,

MINTO ROAD, NEW DELHI AND PUBLISHED BY THE MANAOER

OF PUBLICATIONS.,

DELHI, 1966.