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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART II—Section 1

PUBLISHED BY AUTHORITY

No. 8] NEW DELHI, WEDNESDAY, MARCH 19, I975/PHALGUNA 28, 1896

Separate paging is given to this Part in order that it may be filed as a separate compilation

MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS

(Legislative Department)

New Delhi, the 19th March, 1975/Phalguna 28, 1896 (Saka)

The following Act of Parliament received the assent of the President on the 19th March, 1975, and is hereby published for general informa- tion: —

THE TOBACCO BOARD ACT, 1975

No. 4 OF 1975

[19th March, 1975]

An Act to provide for the development under the control of the Union

of the tobacco industry. BE it enacted by Parliament in the Twenty-sixth Year of the Republic

of India as follows:-—

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Tobacco Board Act, 1975.

(2) It extends to the whole of India.

(3) It shall come into force on such date as the Central Government

may, by notification in the Official Gazette, appoint:

Short title, extent and com- mence- ment.

Provided that different dates may be appointed for different provi-

sions of this Act and for different States or different parts thereof.

2. It is hereby declared that it is expedient in the public interest that

the Union should take under its control the tobacco industry.

Decla- ration as to expediency of cont- rol by the Union.

( 3 3)

3. In this Act, unless the context otherwise requires,-—

Defini- tions.

(a) "Board" means the Tobacco Board established under sec- tion 4;

(b) "Chairman" means Chairman of the Board;

1 of 1944.

(c) "curing" shall have the meaning assigned to it in the Cen- tral Excises and Salt Act, 1944 and all its grammatical variations and cognate expressions shall be construed accordingly;

(d) "dealer" means a dealer in tobacco;

(e) "Executive Director" means the Executive Director appoint- ed under section 6;

(f) "export" and "Import" mean, respectively, taking out of, or bringing into, India, by land, sea or air;

(g) "member" means a member of the Board and includes the Chairman;

(h) "prescribed" means prescribed by rules made under this Act;

(I) "registered" means, except in the expression "registered grower", registered under Chapter III of this Act and the rules made thereunder;

'

(j) "registered grower" means a person who has obtained a cer- tificate of registration under section 10 for growing Virginia tobacco.

CHAPTER II

T HE TOTCACCO BOABD

4. (1) With effect from such date as the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established for the purposes of this Act, a Board to be called the Tobacco Board.

Establish- ment and Constitu- tion of the Board.

(2) The Board shall be a body corporate by the name aforesaid, hav- ing perpetual succession and a comon seal, with power to acquire, hold and dispose of property, both movable and Immovable, and to contract, and shall by the said name sue and be sued.

(3) The head office of the Board shall be at Guntur in the State of Andhra Pradesh and the Board may, with the previous approval of the Central Government, establish offices or agencies at other places In or outside India.

(4) The Board shall consist of the following members, namely: —

(a) a Chairman to be appointed by the Central Government;

(b) three members of Parliament, of whom two shall be elected by the House of the People and one by the Council of States;

(c) seven members to be appointed by the Central Government to represent respectively: —

(i) the Ministry of the Central Government dealing with Agriculture;

(ii) the Ministry of the Central Government dealing with Commerce;

(iii) the Ministry of the Central Government ' dealing with Finance;

(iv) the Ministry of the Central Government dealing with

Industrial Development;

(v) the Indian Council of Agricultural Research;

(vi) the Government of Andhra Pradesh; and

(mi) the Government of Karnataka;

(d) two members to be appointed by the Central Government, by rotation in the alphabetical order, to represent the Governments of tobacco-growing States other than the States of Andhra Pradesh and Karnataka;

(e) not more than eight members to be appointed by the Central Government from amongst growers of tobacco, dealers and exporters (including packers) of tobacco and tobacco products, manufacturers of tobacco products and from amongst persons who, in the opinion of the Central Government, are experts in tobacco marketing or agricultural economics.

(5) The Board shall elect, from amongst its members, a Vice-Chair- man who shall exercise such of the powers and perform such of the func- tions of the Chairman as may be prescribed or as may be delegated to him by the Chairman.

(6) The term of office of the members and the manner of filling vacancies among, and the procedure to be followed in the discharge of their functions by, the members shall be such as may be prescribed.

(7) The Executive Director and any such officer of the Central Gov- ernment (not being a member of the Board) as is deputed by the Central Government in this behalf, shall have tne right to attend the meetings oi the Board and take part in the proceedings thereof, but shall not have the right to vote.

(8) The Board may associate with itself, in such manner and for such purposes as may be prescribed, any persons whose assistance or advice it may desire in complying with any of the provisions of this Act and a person so associated shall have the right to take part in the discussions of the Board relevant to the purposes for which he has been associated, but shall jiot have the right to vote.

(9) No act or proceeding of the Board or any committee appointed

by it under section 7 shall be invalidated merely by reason of—

(a) any vacancy in, or any defect in the constitution of, the

Board or such committee; or

(b) any defect in the appointment of a person acting as a men>

ber of the Board or such committee; or

(c) any Irregularity in the procedure of the Board or such com-

mittee not affecting the merits of the case.

5. The Chairman shall be entitled to such salary and allowances and such conditions of service in respect of leave, pension, provident fund and other matters as may, from time to time, be fixed by the Central Gov- ernment.

Salary and allow- ances and other conditions of service of Chair- man.

6. (1) The Central Government shall appoint an Executive Director to exercise such powers and perform such duties under the Chairman as may be prescribed or as may be delegated to him by the Chairman.

Officers of the Board and other staff.

(2) The Central Government shall appoint a Secretary to the Board to exercise such powers and perform such duties under the Chairman as may be prescribed or as may be delegated to him by the Chairman.

(3) The Executive Director and the Secretary shall be entitled to such salaries and allowances and such conditions of service in respect of leave, pension, provident fund and other matters as may from time to time be fixed by the Central Government.

(4) Subject to such control, restrictions and conditions (including conditions as to appointment of the officers and other employees of the Tobacco Export Promotion Council, in the event of the said Council being wound up) as may be prescribed, the Board may appoint such other officers and employees as may be necessary for the efficient performance of its functions.

(5) The Chairman, the Executive Director, the Secretary and other officers and employees of the Board shall not undertake any work un- connected sdth their duties under this Act except with the permission of the Central Government.

7. (1) The Board may appoint such committees as may be necessary for the efficient discharge of its duties and performance of its functions under this Act.

Commit- tees of the Board.

(2) The Board shall have the power to co-opt as members of any committee appointed under sub-section (1) such number of persons who are not members of the Board as it may think fit and the persons so co-opted shall have the right to attend the meetings of the committee and take part in the proceedings of the committee but shall not have the right to vote.

Functions of the Board.

8. (1) It shall be the duty of the Board, to promote, by such measures as it thinks fit, the development under the control of the Central Gov-- ernment of the tobacco industry.

(2) Without prejudice to the generality of the provisions of sub-section (1), the measures referred to therein may provide for—

(a) regullating the production and curing of Virginia tobacco having regard to the demand therefor in India and abroad;

(b) keeping a constant watch on the Virginia tobacco market, both in India and abroad, and ensuring that the growers get a fair and remunerative price for the same and that there are no wide fluctuations in the prices of the commodity;

(c) maintenance and improvement of existing markets, and development of new markets outside India for Indian Virginia tobacco and its products and devising of marketing strategy in consonance with demand for the commodity outside India, including group mar- keting under limited brand names;

(d) recommending to Central Government the minimum prices which may be fixed for purposes of export of Virginia tobacco with a view to avoiding unhealthy competition amongst the exporters;

(e) regulating in other respects Virginia tobacco marketing in India and export of Virginia tobacco having due regard to the inte- rests of growers, manufacturers and dealers and the nation;

(f) propagating information useful to the growers, dealers and exporters (including packers) of Virginia tobacco and manufacturers of Virginia tobacco products and others concerned with Virginia tobacco and products thereof;

(g) purchasing Virginia tobacco ±rom growers when the same is considered necessary or expedient for protecting the interests of the growers and disposal of the same in India or abroad as and when considered appropriate;

(h) promoting the grading of tobacco at the level of growers;

(i) sponsoring, assisting, co-ordinating or encouraging scientific, technological and economic research for the promotion of tobacco industry;

(j) such other matters as may be prescribed.

(3) Without prejudice to the generality of the provisions of sub- section (i) and, subject to priority being given to matters specified in sub-section (2), the measures referred to in sub-section (i) may also provide in relation to tobacco, other than Virginia tobacco, for all or any of the matters specified in clauses (c) to (g) of sub-section (2) and for this purpose any reference in those clauses to Virginia tobacco shall be construed as including a reference to tobacco other than Virginia tobacco.

(4) The Board shall perform its functions under this section in accord^- ance with and subject to such rules as may be made by the Central Gov- ernment and such rules may in particular make provisions for ensuring that the Board functions in close liaison with Union agencies, institutions and authorities concerned with the tobacco industry (including growing of tobacco) and avoids duplication of effort.

Dissolution of the Board.

9. (i) The Central Government may, by notification in the Official Gazette and for reasons to be specified therein, direct that the Board shall be dissolved from such date and for such period as may be specified in the notification:

Provided that before issuing any such notification, the Central Gov- ernment shall give a reasonable opportunity to the Board to make repre- sentations against the proposed dissolution and shall consider the repre- sentations, if any, of the Board.

(2) When the Board is dissolved under the provisions of sub-section

(a) all members, notwithstanding that theix term of office has not expired, shall, from the date of dissolution, vacate their offices as such members;

(b) all powers and duties of the Board shall, during the period of dissolution, be exercised and performed by such person or persons as the Central Government may appoint in this behalf;

(c) all funds and other properties vested in the Board shall, during the period of dissolution, vest in the Central Government; and

(d) as soon as the period of dissolution expires, the Board shall

be reconstituted in accordance with the provisions of this Act.

CHAPTER HI

REGULATION OF PRODUCTION AND DISPOSAL OF VIRGINIA TOBACCO

10. (1) No person shall grow Virginia tobacco except under, and in accordance with, the conditions of a certificate of registration obtained from the Board in accordance with the rules made under this Act.

Registra- tion of growers of Virginia tobacco.

(2) In granting or refusing a certificate of registration, the Board shall have regard to the demand for Virginia tobacco in India and abroad, and the suitability of the land in relation to which the certificate Is applied for and such other factors as may, having regard to the needs of the Virginia tobacco industry, be prescribed.

(3) A certificate of registration granted In pursuance of this section

shall be valid for such period as may be prescribed.

(4) Every application for such certificate of registration shall be accompanied by such fees (not exceeding one rupee for 04 hectare of the land in relation to which such application has been made) as may be prescribed.

11. No person other than a registered curer shall cure or undertake the curing of Virginia tobacco unless he registers himself as a curer with the Board in accordance with the rules made under this Act.

Registra- tion of curers of Virginia tobacco.

12. No person shall export tobacco or any tobacco products or function as a packer, auctioneer of, or dealer in, tobacco unless he registers himself with the Board in accordance with the rules made under this Act.

Registra- tion of exporters,

packers, auction- eers and dealers.

13. No registered grower or curer shall sell or cause to be sold Virginia tobacco elsewhere than at an auction platform registered with the Board In accordance with the rules made under this Act.

Virginia tobacco to be sold at register- ed auc- ' tion plat- forms.

Appli- cation, cancella- tion, f eea and other matters relating to regist- ration.

14. The form of application and the form of certificate of registration under section 10, the form of application for registration of curers for the purposes of section 11, for registration of exporters, packers or auctioneers of, or dealers in, tobacco, for the purposes of section 12, and for registra- tion of auction platforms for the purposes of section 13, the time within which and the manner in which such applications shall be made, the fees payable on such applications, the particulars to be specified therein, the principles and the procedure to be followed in granting and cancelling certificates of registration or the registration of auction platforms or, as the case may be, the registration as curers, exporters, packers or auction- eers of, or dealers in, Virginia tobacco, the returns to be submitted by registered growers and registered curers, exporters, packers or auctioneers of, or dealers in, tobacco, and the registers to be kept by the Board shall be such as may be prescribed.

Power of Inspection.

15. The Board may authorise any of its members, officers or other employees to inspect in such manner as may be prescribed any land or premises to verify the accuracy of any particulars mentioned in any application or any return referred to in section 14.

CHAPTER IV

FINANCE, ACCOUNTS AND AUDIT

16. The Central Government may, after due appropriation made by Parliament by law in this behalf, pay to the Board by way of grants or loans such sums of money as the Central Government may think fit for being utilised for the purposes of this Act

17. (1) There shall be formed a Fund to be called the Tobacco Fund

and there shall be credited thereto—

(a) the fees levied and collected under this Act or the rules made

Grants and loans by the Cent- ral Govern- ment. Constitu- tion of the Tobacco Fund, thereunder; >

' (h) any sums of money paid or any loans granted lay the Central

Government for the purposes of this Act;

(c) any grants or loans that may be made by any person for

the purposes of this Act;

(d) the sums, if any, realised by the Board in carrying out the

measures referred to in section 8.

(2) The Fund shall be applied—

fa) for meeting the cost of the measures referred to in section H; (b) for meeting the salaries, allowances and other remuneration

of the officers and other employees of the Board;

(c) for meeting the other administrative expenses of the Board;

(d) for repayment of any loans.

18. Subject to such rules as may be made in this behalf, the Board shall have the power to borrow on the security of the Tobacco Fund or any other asset for carrying cut the purposes of this Act.

Borrow- ing powers of the Board.

Accounts and audit.

19. (1) The Board shall maintain proper accounts and other relevant records and prepare an annual statement of accounts, including the profit and loss account, and the balance-sheet in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India.

(2) The accounts of the Board shall be audited by the Comptroller and Auditor-General of India at such intervals as may b& specified by him and any expenditure incurred in connection with such audit shall be pay- able by the Board to the Comptroller and Auditor-General.

(3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Board shall have the same rights and privileges and authority in connec- tion with such audit as the Comptroller and Auditor-General has in con- nection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices ! of the Board.

(4) The accounts of the Board as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annual- ly to the Central Government and that Government shall cause the same to be laid before each House of Parliament

CHAPTER V

CONTROL BY CENTRAL GOVERNMENT

Power to prohi-

20. (1) The Central Government may, by order published in the Offi- cial Gazette, make provision for prohibiting, restricting or otherwise con- trolling the import or export of tobacco and tobacco products, either generally or in specified classes of cases.

52 of

1962. (2) All tobacco and tobacco products to which any order under sub- section (1) applies, shall be deemed to be goods of which the import or export has been prohibited under section 11 of the Customs Act, 1962, and all the provisions of that Act shall have effect accordingly.

bit or control import and export of tobacco and ' tobacco products.

52 of 1962.

(3) If any person contravenes any order made under sub-section (I), he shall, without prejudice to any confiscation or penalty to which he may be liable under the provisions of the Customs Act, 1962, as applied by sub-section (2), be punishable With imprisonment for a term which may extend to one year or with fine, or with both.

21. The Board shall carry out such directions as may be issued to It from time to time by the Central Government for the efficient adminis- tration of tills Act.

Direc- tions by Central Govern- ment. Returns and reports.

22. (J) The Board shall furnish to the Central Government at such time and in such form and manner as may be prescribed or as the Central Government may direct, such returns and statements and such particulars in regard to any proposed or existing programme for the promotion and development of the tobacco industry, as the Central Government may, from time to time, require.

(2) Without prejudice to the provisions of sub-section (1), the Board shall, as soon as possible, after the end of each financial year, submit to the Central Government a report in such form and before such date, as may be prescribed, giving a true and full account of its activities, policy and programmes during the previous financial year.

(3) A copy of the report received under sub-section (2) shall be laid,

as'soon as may be after it is received, before each House of Parliament.

CHAPTER VI

MISCELLANEOUS

Penalties 23. Any person who, being required under this Act to furnish any return, fails to furnish such return or furnishes a return containing any particular which is false and which he knows to be false or does not believe to be true, shall be punishable with fine which may extend to five hundred rupees.

24. Any person who—

(a) obstructs any member or any officer or other employee of the Board or any other person in the exercise of any power con- ferred, or in the discharge of any duty imposed, on him by or under this Act; or

(b) having control over or custody of any account book or other record, fails to produce such book or record when required to do so by or under this Act,

ahall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

P e n a l ty for obstruct- ing a member, officer Or other employe* of the Board in the discbarge of his duties and lor failure to pro- duce

books and Tecorda.

Other penalties 25. Whoever contravenes or attempts to contravene or abets the con- travention of the provisions of this Act or of any rules made thereunder other than the provisions, punishment for the contravention whereof has been provided for in section 20 or section 23 or section 24, shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both and in the case of a continuing contravention with an additional fine which may extend to fifty rupees for every day during which such contravention continues after conviction for the first such contravention.

Offences by companies 26. (I) Where an offence under this Act has been committed by a com- pany, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business.of the company as well as the company shall be deemed to bo guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was comm'.tted without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and It is proved that the offence has been committed with the consent or conniv- ance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to bu guilty of that offend and shall be liable to be proceeded against and punished accordingly.

Explanation.—For the purposes of this section—

(a) "company" means any body corporate and includes a firm

or other association of individuals; and

(b) "director", in relation to a firm, mean3 a partner in the ftrm.

27. No c6urt inferior to that of a Metropolitan Magistrate or a Magis-

trate of the first class shall try any offence punishable under this Act.

28. No prosecution for any offence punishable under this Act shall b"

instituted except with the previous sanction of the Central Government

Jurisdic- tion of court. Previous •suction of Central Govern- ment

Protection

of action,

taken in

good faith.

29. No suit, prosecution or other legal proceedings shall lie against the CenTral Government, or the Board or any committee appointed by it, cr any member of the Board or such committee, or any officer or other employee of the Central Government or of the Board or any agent of or any other person authorised by the Board, for anything which Is in good faith done or intended to be done under this Act or the rules made thereunder.

Suspension

of opora-t

Won of

Act. .

30. (1) If the Central Government in satisfied that circumstances hav* arisen rendering it necessary that certain of the restrictions imposed by this Act should cease to be imposed or if it considers it necessary or expedient so to do in the public interest, the Central Government may, by .notification in the Official Gazette, suspend or relax to a specified extent, for such period as may be specified in the notification, the opera- tion of all or any of the provisions of this Act, in all or any of the territories to which this Act extends.

(2) Where the operation of any provision of this Act has, under sub- jection (1.), been suspended or relaxed, such suspension or relaxation may, at any time while this Act remains in force, be removed by the Central Government by notification in the Official Gazette.

(3) Every notification issued under this section shall be laid, as soon as may be after it is issued, 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 or more successive sessions, and if, before the ex- piry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the notification or both Houses agree that the notification should not be issued, the notification 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 annulment shall bo without prejudice to the previous operation of the notification.

31. The provisions of this Act shall be in addition to, and not in dero-

gation of, the provisions of any other law lor the time being in fore*.

Application

of other

laws not

barrel

32. (1) The Central Government may, by notification in the Official

Gazette, make rules for carrying out the purposes of this Act.

Power of

Central

Govern-

ment to

make rule*.

(2) In particular and without prejudice to the generality of the fore- Kolng power, such rules may provide for all or any of the following matters, namely: —

(a) the powers and functions of the Vice-Chairman of the Board; (b) the term of office and other conditions of service of members, the manner of filling vacancies among, and the procedure to be followed in the discharge of their functions by, members;

(c) the powers which may be exercised and the duties which shall be performed by the Executive Director and the Secretary; .

(d) the circumstances in which and the authority by which a member may be removed;

(e) the holding of a minimum number of meetings of the Board every year;

(/) the procedure to be followed at the meetings of the Board for the conduct of business and the number of members which shail form a quorum at a meeting;

(g) the maintenance by the Board of records of business tran- sacted by the Board and the submission of copies thereof to the Central Government;

(h) the matters referred to in section 14; (i) the powers of the Board, its Chairman, the Executive Direc- tor and committees of the Board with respect to the incurring of expenditure;

(j) the conditions subject to which the Board may incur ex- penditure outside India;

(k) the preparation of budget estimates of receipts and expendi- ture of the Board and the authority by which the estimates are to be sanctioned;

(I) the form and manner in which the accounts should be main- tained by the Board;

(m) the deposit of the funds of the Board in banks and the In- vestment of such funds;

(n) the conditions to be observed by the Board in borrowing money;

(0) the conditions subject to which, and the manner in which, contracts may be entered into by or on behalf of the Board;

(p) the additional matters in respect of which the Board may undertake measures In the discharge of its function*;

(q) the remuneration and other allowances payable to the per- son or persons referred to in clause (b) of sub-section (2) of section 9;

(r) the form and manner of, and the particulars to be contained in, any returns or reports to be made to the Board under this Act;

(s) the collection of any information or statistics in respect of tobacco or tobacco products;

(t) any other matter which has to be, or may be, prescribed by, or provided for by rules under, thii Act.

(3) Every rule made under this section 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 or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessioni aforesaid, both Houses agree in making any modification in the rule, or both Houses agree that the rule should not be made, the rule shall there- after have effect only In such modified form or be of no effect, as the <&B* may be; so, however, that any such modification or annulment shall

be without prejudice to the validity of anything previously done under that rule.

33. (I) The Board may make regulations not inconsistent with this Act and the rules made thereunder for enabling it to discharge its func- tions under this Act.

Power to make re- gulations.

(2) Without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely: —

(a) the procedure to be followed at meetings of the committees appointed by the Board and the number of members which shall form a quorum at a meeting;

(b) the delegation to the Chairman, members, Executive Director, Secretary or other officers of the Board, of any of the powers and duties of the Board under this Act;

(c) the travelling and other allowances payable to persona associated under sub-section (8) of section 4 or co-opted under sub- section (2) of section 7;

(d) the pay and allowances and leave and other conditions of service of officers (other than those appointed by the Central Gov- ernment) and other employees of the Board;

(c) the maintenance of the accounts of the Board;

(f) the maintenance of the registers and other records of the Board and its various committees;

(g) the appointment by the Board of agents to discharge, on iti behalf, any of its functions;

(h) the persons by whom, and the manner in which, payments, deposits and investments may be made on behalf of the Board.

(3) No regulat'on made by the Board shall have effect until It has been approved by the Central Government and published in the Official Gazette, and the Central Government, in approving a regulation, may make any change therein which appears to it to be necessary.

(4) The Central Government may, by notification in the official Gazette, cancel any r e l a t i on which it hasi approved and, thereupon, the regulation shall cease to have effect.

K. K. SUNDARAM,

Secy, to the Govt. of India.

PRINTED BY THE MAW^ffFT*. n™WT>'WtT OF INDIA PPES3. MINTO HOAD, NEW

DELHI AND PUBLISHED BY TH1 CO*JTROLLJ3t OF PUBLICATIONS, DELHI, 1 9 7f