REGISTERED No. D-(D)-72
The Gazette of India
EXTRAORDINARY
PART II—Section 2
PUBLISHED BY AUTHORITY
No. 48] NEW DELHI, TUESDAY, DECEMBER 20, 1977/AGRAHAYANA 29,1899
Separate paging is given to this Part in order that it may be filed
as a separate compilation
LOK SABHA
The following Bills were introduced in Lok Sabha on the 20th Decem-
ber, 1977:—
BILL NO 151 OF 1977 A Bill further to amend the Electricity (Supply) Act, 1948.
BE it enacted by Parliament in the Twenty-eighth Year of the Republic of India as follows:—
1. This Act may be called the Electricity (Supply) Amendment Act,
Short title.
1977.
54 of 1948,
Amend- ment of section 1.
2. In section 1 of the Electricity (Supply) Act, 1948 (hereinafter referred to as the principal Act), after sub-section (4), the following sub-section shall be inserted, namely—
"(5) Notwithstanding anything contained in sub-section (4),—
(a) where any provision of, this Act, to which sub-section (4) applies, is in force in any State immediately before the com- mencement of the Electricity (Supply) Amendment Act, 1977, that provision as amended by the Electricity (Supply) Amend- ment Act, 1977. shall, on and from such commencement, be in force in that State;
(b) the provisions of this Act, to which sub-section (4) applies, which are not in force in any State on the commencement of the Electricity (Supply) Amendment Act, 1977, shall come into force in that State on such date as the State Government may, with the concurrence of the Central Government, by noti- fication in the Official Gazette, appoint.".
( 927)
928 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—Amend- ment of section 3.
3. In section 3 of the principal Act, in sub-section (6), in the opening paragraph, for the word "servants", the word "employees" shall be substituted.
I
4. After section 12 of the principal Act, the following section shall
be inserted, namely:—
!
Insertion of new section 12A.
Board may have capital structure.
"12A. (1) The State Government may, If it considers exp>edient so to do, by notification in the Official Gazette, direct that the Board shall, with effect from such date as may be specified in the notifica- tion, be a body corporate with such capital, not exceeding ten chores of rupees, as the State Government may specify from time to time.
(2) The State Government may, from time to time, with the approval of the State Legislature, increase the maximum limit of the capital referred to in subjection (2) to such extent as that Government may deem fit, so, however, that the increased maximum limit of capital aforesaid shall not exceed the amount representing the aggregate of the outstanding loans of the Board.
(3) Such capital may be provided by the State Government, from time to time, after due appropriation made by the State Legislature by law for the purpose and subject to such terms and conditions as may be determined by that Government.".
5. In section 15 of the principal Act, in the opening paragraph, far
the word "servants", the word "employees" shall be substituted,
Amend- ment of section 15.
6 In section 57 of the principal Act,—
Amend- ment of flection 57.
(a) the words "and the Seventh Schedule" shall be omitted;
(b) for the words "the said Schedules", in both the places where
they occur; the words "the said Schedule" shall be substituted.
7. In section 57A of the principal Act, in subjection (1), the words
"and the Seventh Schedule" shall be omitted.
8. For section 59 of the principal Act, the following section shall t>e
substituted, namely:—
Amend- ment of section 57A. Substitu- tion of new- section for sec- tion 5".
General principles for Board's finance,
"59. (1) The Board shall, after taking credit for any subvention from the State Government under section 63, carry on its operations under this Act and adjust its tariffs so as to ensure that the total revenues in any year of account shall, after meeting all expenses properly chargeable to revenues, Including operating maintenance and management expenses, taxes (if any) on income and profits, depreciation and interest payable on all debentures, bonds and loans, leave such surplus, as the State Government may, fr"om time to time, specify.
(2) In specifying the surplus under sub-section (1), the State Government shall have due regard to the availability of amounts accrued by way of depreciation and the liability for loan amortiza- tion and leave—
§Et. 2] THE tJAZETTfc OF IN1JIA E^TRAOR]JINAfi^ 9i9(a) a reasonable sum to contribute towards the cost of capital
works; and
(b) where in respect of the Board, a notification has been Jssued under sub-section (1) of section 12A, a reasonable sum by way of return on the capital provided by the State Govern- ment under sub-section (3) of that section and the amount of the loans (if any) converted by the State Government into capital under sub-section (1) of section 66A."i
9. In section 60 of the principal Act, in sub-section (2),—
(a) for the words "two months", the words "one year" shall be
Amenci- ment of section 60.
substituted;
(b) the words, brackets and figures "before the issue of the notification under sub-section (4) of section 1" shall be omitted.
Amend- ment of section 61.
10. In section 61 of the principal Act, in sub-section (2), for the words "members, officers and servants", the words "members and officers and other employees" shall be substituted.
Amend- ment of section 62.
11. In section 62 of the principal Act, in sub-section (2), after the words "extreme urgency", the words " , it shall be expended in accordance with the regulations made by the Board with the previous approval of the State Government and" shall be inserted.
12. In section 65 of the principal Act,—
(fa) in sub-section (2), for the words "issue of bonds or stock",
Amend- ment of section 65.
the words "issue of debentures or bonds" shall be substituted;
(jb) in sub-section) (4), for the words "Stock issued", the words
"Debentures or bonds issued" shall be substituted.
13. After section 66 of the principal Act, the following section ,'ihall
be inserted, namely:—
i
Insertion of new section 66A.
Conver- sion of amount of loans into capital.
"66A. (1) Notwithstanding anything contained in sections 12A, where any loan has been obtained from the State Government by a Board, in respect of which Board a notification has been, made under sub-section (1) of that section, or any loan is deemed to he advanced to such Board by the State Government under sub-section (2) of section 60, the State Government may, if in its opinion it is necessary in the public interest so to do, by order, direct that the amount of such loan or1 any part thereof shall be converted into capital provided to the Board on such terms and conditions as appear to that Government to be reasonable in the circumstances of the case, even If the terms of such loan do not include a term providing for an option for such conversion.
(2) In determining the terms and conditions of such conversion, the State Government shall have due regard to the following cir- cumstances, that is to say, the financial position of the Board, the terms of the loan, the rate of interest payable on the loan, the capital of the Board, its loan liabilities and its reserves.
(3) Notwithstanding anything contained in this Act, where the State Government has, by an order made under sub-section (1), di-
9^0 teE GAZETTE OF itfDIA EXTRAORDINARY [PART It—rected that any loan or any part' thereof,'^jall be converted into capi- tal, and such order has the effect of. increasing the capital of the Board, the capital of the Board shall stand increased by the amount by which the conversion increases the capital of the Board in excess of the capital specified under sub-section (1) of '•.ection 12A:
Provided that the amount of the loan so converted together with the capital provided under sub-section (3) of section 12A, shall not exceed, the amount representing the aggregate of the outstanding loans of the Board alter such conversion '\
14. (1) For Section 67 of the principal Act, the following section fehall be substituted, namely:—
Substitu- tion, of new section for Section 67,
Priority of liibih- ties of Board.
"67. (1) If in any year, the revenue receipts are not adequate to enable compliance with the requirements of section 59, the Board shall, after meeting its operating, maintenance and management expenses and after provision has been made for the payment of taxes (if any) on income and profits, distribute the revenue receipts, ap far as they are available, in the following order, namely:—
(i) payment of interest on loans not guaranteed under section 66;
(#i) repayment of principal of any loan raised' (including redemption of debentures or bonds issued) under section 65 which becomes due for payment in the year;
(W) payment of interest on loans guaranteed under section 66;
i
(w) payment of interest on sums paid by the State Govern- ment in pursuance of guarantees under section 66;
(v) payment of interest on loans advanced to the Board by the State Government under section 64 or deemed to be advanced under sub-section (2) of section 60;
(vi) repayment of principal of any loan guaranteed by the State Government under section 66 which becomes due for pay- ment in the year;
(mi) repayment of principal of any loan advanced to the Board under section 64 which becomes due for payment in the year,
and if any balance amount . is left • thereafter, the same shall be utilised for the other purposes specified in section 59, in such manner as the Board may decide.
(2) If for any reason beyond the control of the- Board, the re- venue receipts in any year are not adequate to meet its-1 operating, maintenance and management expenses, taxes (if • any) on incomes and profits and the liabilities referred to in clauses (i) and (ifi) of sub-section (1), the short fall shall, with the previous sanction of the State Government,- be paid out of its capital.".
Ssb. i] TilE GAZETTE OF INDIA EXTRAORDINARY 23 i15. For section 68 of the principal Act, the following section shall be
substituted, namely:—
Substitu- tion of hew Sec- tion for section 68.
Charging of dfepre- . elation by Board.
"68. (1) Subject to the provisions of section 67, the Board shall provide each year for depreciation such sum calculated in accordance with such principles as the Central Government may, after consul- tation with the Authority, by notification in the Official Gazette, lay down from time to time.
(2) Where in any particular year depreciation cannot be adjusted against revenues, the same may be carried over to subsequent years.
(3) The provisions of this section shall apply to the charging of depreciation for the year in which the Electricity (Supply) Amend- ment Act, 1077, comes into force.".
16. In section 69 of the principal Act, in sub-section (4), fpr the words Amend* ment of flection 69.
"forwarded annually to the State Government", the words "forwarded to the Authority and to the State Government within six months of the close of the year to which the accounts and audit report relate" shall be substituted. 1
17. In section 74 of the principal Act, for the words "officer or servant", the words "officer or other emplpyee" shall be substituted.
Amend- ment of section 74.
18. In section 75A of the principal Act, after sub-section (3), the , following sub-section shall be inserted, namely:—
Amend- ment of section 75A.
"(3A) (a) The Generating Company shall carry on its operations • under this Act and adjust its tariffs so as to ensure, that the total revenues in any year of account shall, after meeting all the expenses properly chargeable to revenues including operating, maintenance and management expenses, taxes (if any) on income and profits, .depreciation and interest payable on all debentures, bonds and loans, leave such surplus as the promoting government or promoting gov- ernments, as the case may be, may, from time to time, specify.
(p) In specifying the surplus under clause (a), the promoting ,, government or promoting governments,, as the case may be, shall have due regard to the availability of amounts accrued by way of de- preciation and the liability for loan amortization and leave a reason- able amount to contribute towards the cost of capital works and for payment of dividend on shares.".
19. In section 79 of the principal Act,—
(a) in qlause (c), for the words "officers and servants",, thet words
Amend- ment of flection 79.
"officers and other employees" shall be substituted;
(*) after clause 0), the following clause shall be inserted, namely:—
"(jj) expending sum not included in statement submitted under sub-section (1) or sub-section (5) of section 61, under sub-section (2) of section 62;";
(c) In the proviso, for the word, brackets and letter "and (d)",
the brackets, letters and word ", (d) and (jj)" shall be substituted.
932 THE GAZETTE OF INDIA EXTRAORDINARY {.PART it—Amend- ment of section 81.
20. In section 81 of the principal Act, for the words "members, officers and servants", the words "members and officers and other employees'" shall be substituted,
21. In section 82 of the principal Act, for the words "member, officer or servant", the words "member or officer or other employee" shall be substituted.
Amend- ment of section 82.
i
22. In the Fourth Schedule to the principal Act,—
Amend- ment of Fourth Schedule.
(fl) In paragraph II, for the words and figure "on the scale siejt out in paragraph III", the words and figure "calculated in accordance with the provisions of paragraph VI of the Sixth Schedule", shall be substituted;
(b) paragraph III shall be omitted.
23. In the Sixth Schedule to the principal Adt,—
(1) in paragraph VA,—
Amend- ment of Sixth Schedule.
(a) in sub-paragraph (1),—
(i) for the words "amount of development rebate", the words "amount of investment allowance" shall be substituted;
(ii) for the words, brackets, figures and letter "under
11 of 1922 clause (mb) of sub-section (2) of section 10 of the Indian Income-tax Act, 1922,", the words, figures and letter "under section 32A of the Income-tax Act, 1961" shall be substituted; 43 of 1961.
(b) in the proviso to sub-paragraph (4), after the words "amount of the Reserve", the brackets and words " (whether such amount is in the form of cash or other assets)" shall be inserted;
(2) for paragraphs VI, VII, VUI, IX, X and XI, the following
paragraph shall be substituted, namely: —
"VI. (a) The licensee shall provide each year for deprecia- tion such sum calculated in accordance with such principfles as the Central Government may, after consultation with the Autho- rity, by notification in the Official Gazette, lay down from time •to time. i
i
' i
(b) Where in any particular year depreciation cannot be adjusted against revenues, the same may be carried over to sub- sequent years.
(c) The provisions of this paragraph shall apply to the charg- ing of depreciation for the year in which the Electricity (Supply) Amendment Act, 197Y, comes into force.";
(3) in paragraph XVII, clause (8) shall be omitted.
24. The Seventh Schedule to the principal Act shall be omitted.
Omission •of Seventh Schedule.
25. In clause (a) of paragraph 1 of the Eighth Schedule, and clause (f) of paragraph 1 of the Ninth Schedule to the principal Act, for the words "officers and servants", the words "officers and other employees" shall be substituted.
Amend- ment of Eighth Schedule and Ninth Schedule.
SFC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 933STATEMENT OF OBJECTS AND REASONS
In order to ensure that the Electricity Boards are able to function on
sound commercial principles*, the financial provisions of the Electricity (Supply) Act, 1948, are proposed to be amended by the Bill. The main changes proposed to be made in that Act by the Bill are the following.
2. With a view to make the Electricity Boards financially viable, it is proposed that a State Government may provide funds to the. State Electricity Board in the form of equity, if the State Government so desires. This is necessary because the interest liability devolving on the State Electricity Boards makes it difficult for them to present a pic- ture of financial stability. For this purpose, a new section 12A is pro- posed to be inserted in the Act by clause 4 of the; Bill.
3. Section 59 of the Electricity (Supply) Act is proposed to be amende ed by clause 8 of the Bill to give a positive direction to the Electrioity Boards that after meeting all their expenses, there should be provision for a surplus for contribution towards immediate investment needs. A similar amendment is also proposed to be made in regard to the Generat- ing Companies by inserting a new sub-section (3A) in section 75A| "kty clause 18 of the Bill.
4. A new section 66A is proposed to be inserted in the Electricity (Supply) Act by clause 13 of the Bill so as to enable the State Govern- ment to convert any loan advanced by it to the State Electricity Board into share capital.
5. The amount of capital provided by a State Government under sec- tion 12A(3) or that capital together with the amount converted into capital under section 66A should not exceed the aggregate of the o ut standing loans of the Electricity Board.
6. Clause 14 of the Bill seeks to amend section 67 of the Act to re- arrange the priorities for distribution of the revenues of the State Elec- tricity Boards after meeting the operation, maintenance and management expenses and the liabilities, if in any year the revenue receipts are not adequate to enable compliance with the requirements of section 59. This is being done to ensure that the Boards discharge their liability towards interest on loans from financial institutions as well as repayment of principal amount before the operating surplus is appropriated towards depreciation and general reserve.
7. Section 68 of the Act is proposed to be amended by clause 15 of the Bill to provide that the method of calculating depreciation should! be in accordance with the principles laid down by the Central Government in consultation with the Central Electricity Authority A similar provision Is proposed to be made in regard to licensees by the amendment of the Sixth Schedule by clause 23 (2) of the Bill.
8 The Bill seeks to achieve the aforesaid objects.
NEW DELHI;
P. RAMACHANDRAN.
'The 12th December, 1977.
934' ™E GAZETTE OF INDIA EXTRAORDINARY [PART II—MEMORANDUM REGARDING DELEGATED LEGISLATION
Sub-claiuse (b) of clause 19 of the Bill seeks to insert a new clause (jj) In section 79 of the Electricity (Supply) Act, 1948, to enable the making of regulations to provide for the expending of sum not included in state- ment submitted under sub-section (1) or sub-section (5) of section 61. This is a matter of- detail which cannot be provided in the Act itself. The delegation of legislative power is therefore of a normal character.
BKC. 2] THE GAZE1TE OP INDIA EXTRAORDHJAHV 935THE FOURTH SCHEDULE
(See sections 23 and 37 and First and Third Schedules)
PRICK FOR UNDERTAKINGS, GENERATING STATIONS AND MAIN TRANSMISSION
LINES PURCHASED HY THE BOARD
* * * * *
II. The price to be paid for any undertaking, generating station or main transmission line as the case may be purchased by the Board under this Act shall be such sum as may be certified by an auditor appointed by the State Government in this behalf to have been the amount properly incurred on and incidental to the establishment of the undertaking, station or main transmission line, as the case may be, less depreciation thereon on the scale set out in paragraph III:
Provided that there shall be added to such sum, as aforesaid on account of such purchase of the generating station or main transmission line such reasonable compensation as may be determined by the Board having due regard to the fact that a portion of the undertaking is to be acquired:
Provided further that if the Board or the licensee is dissatisfied with the sum so certified, the matter shall, in default of agreement between them, be determined by arbitration as provided in section 76,
III. The scale of depreciation referred to in paragraph II shall be in respect of the portion of the prescribed period prior to the date of t \ ' vesting,—
(a) for land owned under full title, including the cost of clear- ing the site, nil;
(b) for other assets specified in the Table appended to the Seventh Schedule, the amount which would be produced by the end of the said portion of the prescribed period if during that portion an allowance were made annually on account of deprecia- tion in accordance with the provisions of paragraph VI of the Sixth Schedule.
93 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—THE SIXTH SCHEDULE
(See sections 57 and 57A)
FINANCIAL PRINCIPLES AND THEIH APPLICATION
+ * * • *
VA. (1) There shall be created a reserve to be called the Develop- ment Reserve to which shall be appropriated in respect of each accounting year a sum equal to the amount of income-tax and super- tax calculated at rates applicable during the assessment year for which the accounting year oi the licensee is the previous year, on the amount of development rebate to which the licensee is entitled for the accounting year under clause (m) (b) of sub-section (2) of section 10 of the Indian Income-tax Act, 1922:
Provided that if any accounting year, the clear profit [excluding the special appropriation to be made under item (uo) of clause (c) of sub-paragraph (2) of paragraph XVII] together with the accumu- lations, if any, in the Tariffs and Dividends Control Reserve less the sum calculated as aforesaid falls short of the reasonable return, the sum to be appropriated to the Development Reserve in respect of such accounting year shall be reduced by the amount of the shortfall.
• * * * *
(4) On the purchase of the undertaking, the Development Reserve shall be handed over to the purchaser and maintained as such Develop- ment Reserve:
Provided that where the undertaking is purchased by the Board or the State Government, the amount of the Reserve may be deducted from the price payable to the licensee.
VI. (1) There shall be allowed in each year in respect of deprecia- tion of fixed assets employed in the business of electricity supply such an amount as would, if set aside annually throughout the prescribed period and accumulated at compound interest at 4 per centum per annum, produced by the end of the prescribed period an amount equal to 90 per cent, of the original cost of the asset after taking into account the sums already written off or set aside in the books of the undertaking. Annual interest on the accumulated balance will be allowed as an expense from revenue as well as the annual incremental deposit:
Provided that, within 3 months from the date upon which these principles are enacted, a licensee may elect to adopt the straight-line method of depreciation accounting in lieu of the compound interest method above prescribed. Straighthne method of depreciation account- ing means the method whereby an allowance is made in each year in respect of depreciation of fixed assets employed in the business of such an amount as is arrived at by dividing ninety per cent, of the original cost of the asset by the prescribed period in respect of such asset.
(2) The year in which any asset becomes available for use in the business and the relative cost thereof shall, in the absence of satisfac- tory record, be determined by the State Government. All sums credit- ed to depreciation account shall be invested only in the business of
SEC, 2] THE GAZETTE OF INDIA EXTRAORDINARY 937electricity supply of the undertaking or where it is not practicable to so invest them in investments approved by the State Government.
(3) Any sums invested in investments approved by the State Gov- ernment under sub-paragraph (2) shall, as soon as practicable, be utilised in the business of electricity supply of the undertaking and if such sums are not so utilised they shall not form part of the capital base under clause (d) of aub-parag) anh (1) of paragraph XVII
VII (1) Where any fixed asset ceases to be available for use through obsolescence, inadequacy, superfluity or for any other reason, it shall be described in the books of the licensee as no longer in use and no further depreciation in respect thereof shall be allowed as a charge against revenue.
(2) The written down cost of such fixed asset including expenses incurred on the dismantling thereof shall be charged against the Contingencies Reserve:
Provided that where the accumulations in the Contingencies Re- serve are not sufficient to permit the charging of the entire written down cost of the asset and the dismantling expenses, the excess amount may be included in the capital base for the purpose of clause (a) of sub-paragi aph (1) of paragraph XVII.
(3) The amount for which any such fixed asset is sold or the amount of its scrap value when actually realised shall be credited, to the Contingencies Reserve,
VIII. When any asset has been written down in the books of the undertaking to 10 per cent, or less of its original cost, no further depre- ciation shall be allowed m respect of that asset.
IX. When any fixed asset is sold for an amount exceeding its written down cost the excess after deducting all taxes payable thereon shall be credited to the Contingencies Reserve.
X. Except with the previous consent of the State Government, no sums shall be carried forward to a reserve and no dividends in excess of 3 per cent shall be paid on share capital and no other distribution of profits shall be made to the shareholders in respect of any year of account so long as any of the following sums remain to be written off in the books of the undertaking, namely: —
(i) normal depreciation due for that year of account calculated
in accordance with the provisions of paragraph VI;
(ii) equated instalment in respect of arrears of depreciation, computed in accordance with the provisions of paragraph XI, for that year of account;
(iii) arrears, if any, in respect of normal depreciation referred to in clause (t), accumulated after the date of application of the pro- visions of the Sixth Schedule to the licensee;
(iv) arrears, if any, in respect of equated instalments referred
to in clause (w)
XI Arrears of depreciation calculated in accordance with paragraph VI may be written off by equated payments over the remainder of the
938 THE GAZETTE OF INDIA EXTHAOBDINARY [PART II—prescribed period and the amount so set aside in the books of the under- taking may be taken into account in any year as a special appropria- tion for purposes of assessing the clear profit.
• * # #
XVII. For the purposes of this Schedule—
* * # *
(8) "Prescribed period" means—
in respect of each of the assets specified in the table appended to the Seventh Schedule, the number of years or period specified therein, in relation to such asset, running in each case from the beginning of the year of account next following that In which the particular asset became available for use in the business:
Provided that, on the application of the licensee, the State Government may vary the prescribed period In respect of any assets in use on the date when this Schedule comes into force if, having regard to the physical condition of such assets the application of the table to such assets would be unreasonable. Any question arising out of the decision of the State Govern- ment on any such application shall be referred to the Authority for arbitration.
* * * * *
SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 939THE SEVENTH SCHEDULE
(See sections 57, 57A and 68 and the Fourth and the Sixth Schedules)
TABLE
DCBCI lptiun of asset
Number of }earj or period
A. L a nd o w n ed u n d e r . f u ll t i t le . . .
Infinity.
| "...
B. L a nd h e ld u n d e i j l e a s e-
(n) f o r j i n v e s t m e nt m^l
. . ..
The period of the lease, or the period remain- ing unexpirrd on assignment of the leaee.
( i) f or c o at of c l e a r i ng s i te . , , . . ,,
The period of the lease remaining unotpired at the date of cleaning the site
C. A s s e ts p u r c h a s ed n e w —"
(0) P l a nt a nd m a c h i n e ry in g e n e r a t i ng s t a t i o n s, i n c l u d i ng p l a nt
f o u n d a t i o n *—
Thirty-five. Twenty-five. Fifteen.
(i) h y d r o - e l e c t r ic . . , , , . ,, . . (ii) s t e a m - e l e c t r ic . . .. (tit) d i e s e l - e l c c t r ic . . . . . ..
Thirty.
(6) C o o l i ng t o w e rs a nd c i r c u l a t i ng w a t er s y s t e ms
(c) H y d r a u l ic w o r ka f o r m i ng p a rt of a h y d r o - c l ec t r ie s y s t e m,
Including—
(i) dams, upilways, weirs, Canali, reinforced conciete flumii
One hundred.
and syphons .
, ,
{ii) reinforced concrete pipe-lines and surge tanks, sterl pipe- lines, sluice gatei, steel surge tanks, hydraulic control valves and other hydraulic worka
Forty.
(
not mentioned above—•
(i) Offices and showrooms . . . . ..
(ii) containing thermo-electric generating plant . (ii") containing hydro-electnc generating plant (iv) temporary erections such as wooden structures
(iW) roads other than kutcha roads . ..
Fifty. Thirty Thirty-five. Five, One hundred Fifty.
(w) othen ,
,
(<) Transformers, transformer kiosks, sub-station equipment and
oilier fixed apparatus (including plant foundations)—
Thirty-five, Twenty-five.
(1) transformers (including foundation) having * rating of lookilovolt amperes and over . . . .. (ii) others . . . . . . . ..
(/) Switchgcar, including cable connections
Twenty
(ff) L i g h t n i ng a r r e " t o r s —"
(i) s t a t i on t y pe ( tO P o le t y pe (tit) s y n c h r o n o us c o n d e n s e rs . . ..
Twenty. Fifteen Thirty-five
94O THE GAZETTE OF INDIA EXTRAORDINARY [PART II—TABLE—contd.
Description of inset | Number of years or
period
Ten.
(?) Batteries
(A) ( i) U n d e r g r o u nd rabies including joint boxm and disconnect-
Forty.
ing boxes . ..
Sixty.
(a) Gable d u ct system . ..
(*) Overhead lines, Including supports—
(i) lines on fabricated steel supports operating at nominal
voltages higher t h an 66 kilovolts , .
Thirty-five.
(ji) lines o n s t e e l j u p p o r t s o p e r a t i n g a t n o m i n a l v o l t a g e s , h i g h er
Thirty
t h an 13 •
(HI) lines on itee! or reinforced concrete supports [
Twenty-five.
Twenty
(HI) lines on treated wood supports
(/) Meters .
Fifteen
Seven,
(k) Srlf-propelled vehicles t . . ..
Twenty,
(/) Static m a c h i ne tools . .
. ..
(m) Air-conditioning p l a n t—
Fifteen,
(i) static . . , . ., . ,
(w) p o r t a b le . ..
Seven.
Twenty.
(") (") Office furniture a nd fittings
Ten.
((Y) Office e q u i p m e nt . . . ..
(i") internal wiring, including fittings and a p p a i a t us .
Fifteen
(if) street-light fittings ' .
Fifteen,
( D) A p p a r a t us l et on h i r e —•
(i) other than motors
Seven.
(11) motors
Twenty.
(p) Gommunicationi equipment—
(f) Radio and high frequency carrier system
Fifteen.
Twenty
(n) Telephone linn and telephones
D \i?ets purchased second hand and asseti not otherwise provided for
In thii lable
Such reasonable pr- riod as the State~Gov- ernment determines in each case having regard to the nature, age and condition of the ajaet at the time of its acquisition by the
1 owner.
Sac. fcj THE GAZETTE OF INDIA EXTRA6R&mAft¥ 94*THE EIGHTH SCHEDULE
(
(See the First and Third Schedules)
DBTERMINATIpN OF COST OF PRODUCTION OF ELECTRICITY AT GENERATING
STATIONS
I. For the purposes of the First and Third Schedules, the cost of production of electricity at a generating station shall be ascertained by calculating and taking into account the following costs, charges and allowances in respect of the year of account, namely: —
(a) sums expended for fuel, oil, water and stores consumed, for salaries and wages, and any contribution by the licensee for pen- sions, provident fund, superannuation and Insurance of officers and servants, for repairs and maintenance and for renewals not charge- able to capital account;
• * * * *
THE NINTH SCHEDULE
(See the First Schedule)
ALLOCATION OV COSTS OF PRICSKICTION AT GENERATING STATIONS
I. For the purposes of this Schedule—
* * * **
(f) "cost of repairs, maintenance and renewals" means the sums expended for repairs and maintenance and for renewals not chargeable to capital account, together with the proportion of salaries and wages and any contributions made by the owner of the station for pensions, provident fund, superannuation and insur- ance of officers and servants properly attributable to repairs, main- tenance and renewals.
042 ^Hfi GAZETTE Of INDIA EXTRAORDINARY \P*" B—BILL N O. 150 OF 1977
A Bill further to amend the Customs Tariff Act, 1975.
BE it enacted by Parliament in the Twenty-eighth Year of the Republic of India as follows: —
1. (1) This Act may be called the Customs Tariff fAmMiHrrwint^ AH;
1977.
(2) It shall come into force on. such date as the Central Government Short title and com- mence- ment.
may, by notification in the Official Gazette, appoint.
2. In section 4 of the Customs Tariff Act, 1975 (hereinafter referred to
Bl of 1975.
as the principal Act),—
Amend- ment of section 4.
(a) in sub-section (1), for the words "the produce or manufacture of the United Kingdom or of such other preferential area", the words "the produce or manufacture of such preferential area" shall b" substituted;
(b) in sub-section (2), for the words "the produce or manufacture of the United Kingdom or of any other preferential area", the words "the produce or manufacture of any preferential area" shall be substituted;
(c) in sub-section (3), for the words ' "United Kingdom" means the United Kingdom of Great Britain and Northern Ireland and "other preferential area" ', the words ' "preferential area" ' shall be substi- tuted.
SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 943
3. Jn section 7 of the principal Act, in sub-section (1), for the word, Amend-
brackets and figure "column (6)", the word, brackets and figure "column ment of
section 7.
(5)" shall be substituted.
4. The First Schedule to the principal Act shall be amended in the Amend-
manner specified in the Schedule. ment of
the First
Schedule.
THE SCHEDULE
(See section 4)
PART I
In the First Schedule to the principal Act,—
(A) in the Rules for the interpretation,—
(i) in rule 3, for clause (c), the following clause shall be substituted, namely: —
"(c) When goods cannot be classified by reference to (a) or (fa), they shall be classified under the Heading which occurs latest among those which equally merit consideration.";
(ii) under the heading "General Explanatory Note", the words, brackets and figure "or column (5)" shall be omitted;
(B) in each Chapter,—
(i) column (4) and the sub-heading "U.K." occurring above that column shall be omitted;
(ii) columns (5) and (6) shall be renumbered respectively as columns (4) and (5);
(ni) for the sub-heading "Other Preferential Areas" occur- ring above column (4), as so renumbered, the sub-headmg "Pre- ferential Areas" shall be substituted;
(C) (1) in Chapter 4, for Note 1, the following Note shall be substituted, namely: —
'1. The expression "milk" means full cream or skimmed milk, butter milk, whey, curdled milk, kephir, yoghourt and other fermented or acidified milk.';
(2) in Heading No. 09 04/10, in column (2), for the words and brackets "Spices (including mixed spices)", the words and brackets "Spices (including mixed spices, thyme, saffron and bay leaves)" shall be substituted;
(3) in Chapter 10, for the Note, the following Note shall be
substituted, namely: —
"This Chapter only covers those grains which have benn neither hulled nor otherwise worked. However nee, hulked, milled, polished, glazed, parboiled, converted or broken remains classified in this Chapter.";
944 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—(4) In Heading No. 11.02, m column (2), for the words "except husked, glazed, polished or broken rice", the words and figures "except nee falling within Chapter 10" shall be substituted;
(5) in Chapter 12,—
(i) in Note 2, after the words "seeds of vetches", the brackets and words " (other than those of the species Vicla Faba)" shall be Inserted;
(ii) in Note 3, in item (d), for the word "weed-killers", the word "herbicides" shall be substituted;
(6) in Heading No. 12.04/06, in column (2), for the words "chicory- roots, fresh or dried, whole or cut, unroasted; hops", the words "hop cones and lupulin" shall be substituted;
(7) in Heading No. 12.07, in column (2) ,—
(i) in the opening paragraph, the word ", betel-nuts" shall be omitted;
(ii) sub-heading No. (3) and the entries relating thereto shall be omitted;
(8) in Heading No. 12.08, in column (2), for the words "Locust beans", the words "Chicory roots, fresh or dried, whole or cut, un- roasted; locust beans" shall be substituted;
(9) In Chapter 13, for the title, the title "Lacs; gwms, resins and other vegetable saps and extracts" shall be substituted;
omitted;
(10) Heading No. 13 01 and the entries relating thereto shall be * CH) for Heading No. "13.02" in column (1), the Heading No. "13 01/02" shall be substituted;
(12) in Chapter 14, In the title, the words "and carving" shall be omitted;
(13) in Chapter 15,—
(i) in Note 1, for item (b), the following item shall be substituted, namely: —
"(b) cocoa butter (fat or oil) (Chapter 18);";
(ii) in Note 2, for the word "drugs", the word "dregs" shall be substituted;
(14) in Heading No 15.08/13, in column (2) ,—
(i) for the words "animal or vegetable oils", the words "animal or vegetable oils and fats" shall be substituted;
(n) the word "degras," shall be omitted;
(Hi) for the words "animal fats", the words "edible fats" shall be substituted;
(15) In Heading No 15.14/17. In column (2), after the words "not coloured;", the word "degras;" shall be inserted;
SEC. 2] THtE GAZETTE OF itfttlA EXTRAOROINARY 945(16) in Heading No. 16.01/05, in column (2), for the words "Prepared or preserved meat", the words "Sausages and the like, 6f meat, meat offal or animal blood; other prepared or preserved meat" shall be substituted;
(17) in Heading No. 17.02, for the entry in column (2), the entry "Other sugars in solid form including glucose and lactose; sugar syrups, not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel" shall be substituted;
(18) in Heading No. 17.04/(05, in column (2), the words "; flavoured Or coloured sugars, syrups and molasses, but not including fruit juices containing added sugar in any proportion" shall be omitted;
(19) in Heading No, 18.01/06, in column (2), for the words "cocoa butter", the words and brackets "cocoa butter (fat or oil)" shall be substituted;
(20) in Heading No. 19.01/08, in column (2), for the words "ordinary and fine bakers' wares", the words "communion wafers, cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products; ordinary and fine bakers' wares" shall be substituted;
(21) In Chapter 21, in Note 1—
(1) In item (c), the word "or" occurring at the end shall be omitted;
(ii) in item (d), the word "otr" shall be inserted at the end;
(iii) after item (d), as so amended, the following item shall be inserted, namely: —
"(c) Prepared enzymes (Chapter 35).";
(22) in Chapter 25 —
(i) in Note 2, for item (g), the following item shall be substituted, namely: —
"(g) cultured crystals (other than optical elements) weighing not less than two and a half grams each, of sodium chloride or of magnesium oxide, of Chapter 38; optical ele- ments of sodium chloride or of magnesium oxide (Heading No. 90.01); otr";
(if) in Note 3,—
(a) for Item (e), the following item shall be substituted, namely: —
"(e) natural magnesium carbonate (magnesite); fused magnesia; dead-burnied (sintered) magnesia, whether or not containing small quantities of other oxides added before sintering; other magnesium oxide, whether or not chemically pure;";
QA6 THE GAZETTE OF INDIA EXTRAORDINARY [PAHT il—(b) in item (k), after the words "after moulding", the words "; natural micaceous iron oxides; jet" shall be inserted;
(23) in Chapter 28,—
(i) in Note 1, m the opening paragraph, for the words "Except where their context or these Notes otherwise require", the words "Except where the context or these Notes otherwise requires or require" shall be substituted;
(u) in Note 2, in item (a),—
(a) in sub-item (xn), the word "and" occurring at the
end shall be omitted;
(b) after sub-item (ocin) as so amended, the following
sub-items shall be inserted, namely: —
" (xiv) phosphides, carbides, hydrides, nitrides, azides, silicides and borides, whether or not chemically defined;
(xv) phosphorus pentoxide and phosphoric adds;
(xvi) red lead and orange lead;
(xvii) polysulphides;
(xviii) commercial ammonium carbonate containing
ammonium carbamate; and
(xix) commercial sodium and potassium silicates.";
(Hi) in Note 3,—
(a) for item (a), the following item shall be substituted,
namely: —-
" (a) Sodium chloride and magnesium oxide, whether or not chemically pure, and other products falling within Section V;";
(b) in item (e), the words "of magnesium oxide or" shall
be omitted;
(c) in item (f), after the words "and precious metals",
the words "and precious metal alloys" shall be inserted;
(d) in item (g), after the words "chemically pure", the
words "and metal alloys" shall be inserted;
(e) in item (h), the words "of magnesium oxide or"
shall be omitted;
(24) in Heading No. 28.01/58, in Sub-heading No. (13), in column (2), after the words "Magnesium compounds", the brackets and Words "(other than magnesium oxide, whether or not chemically pure)" shall be inserted;
SEC. SJ THE GAZETTE OF INDIA EXTRAORDINARY §4?(25) in Chapter 29,—
(i) in Note 1,—
(a) in item (c), sub-item (it) shall be omitted and sub- items (ni) to (im) shall be renumbered respectively as sub-items (zi) to (w);
(b) for item (/i), the following item shall be substituted,
namely:—
"(h) the following products, diluted to standard strengths, for the production of azo dyes; djazonium salts, couplers used for these salts and diazotisable amines and their salts.";
(ii) in Note 3 —
(a) after item (J), the following item shall be inserted,
namely: —
"(g) Enzymes (Chapter 35);";
(b) existing item (g) shall be relettered as item (h);
(c) existing item (h) shall be relettered as item (ij);
(d) existing item (i>j) shall be relettered as item (To);
(26) in Heading No. 29 01/45, in column (2), in the opening
paragraph, the word "enzymes," shall be omitted;
(27) in Chapter 32, for Note 2, the following Note shall be sub-
stituted, namely.—
"2. Heading No. 32 04/12 is to be taken to include mixtures of stabilised diazonium salts and couplers for the production of azo dyes.";
(28) in Heading No. 32.04/12, in column (2), for the words "pre- pared pigments", the words "prepared pigments and prepared opaci- flers" shall be substituted;
(29) in Chapter 35,—
(i) for the title, the following title shall be substituted,
namely: —
"Albuminoidal substances; glues; enzymes";
(ii) for Note 1, the following Note shall be substituted,
namely:—
"I. This Chapter does not cover:
(a) Yeasts (Chapter 21);
(b) Medicaments (Heading No. 30.03);
(c) Enzymatic preparations for pre-tanning (Head-
ing No. 32.01/03);
(d) Enzymatic soaking or washing preparations and
other products of Chapter 34; or
548 THE GAZETTE OF INDIA EXTRAORDINARY [PAST 11—(e) Gelatin products of the printing Industry
(Chapter 49).";
(w) after Note 2, the following Note shall be inserted, namely: —
"3. This Chapter also covers products suitable for use as glues put up for sale by retail as glues in packages not exceeding a net weight of 1 kilogram.";
(30) for Heading No. "35.01/06" in column (1), the Heading No. "35.01/07" shall be substituted, and in Heading No. 35.01/07, as so amended, in column (2), for the words "glues not elsewhere speci- fied or included", the words "enzymes, prepared enzymes and glues not elsewhere specified or included" shall be substituted;
(31) in Chapter 36, in Note 2, for the words "Other combustible products" applies only to the iollowing articles', the words 'The ex- pression "articles of combustible materials" in this Chapter is to be taken to apply only to' shall be substituted;
(32) in Heading No. 36 01/08, in column (2) ,—
(i) for the words "Explosives including detonators and blast- ing fuses", the words "Explosives including percussion and deto- nating caps; igniters; detonators; detonating and safety fuses" shall be substituted;
(it) for the words "other combustible products", the words "articles of combustible materials" shall be substituted;
(33) in Chapter 38, in Note 1, in item (a), in sub-item (2),—
(i) for the word "weed-killers", the word "herbicides" shall be substituted;
(il) after the word "rat-poisons", the words ", plant-growth regulators" shall be inserted;
(34) in Chapter 39, in Note 1, in item (g), for the words "riding- crops, fans or parts thereof", the words "riding-crops or parts thereof" shall be substituted;
(35) in Heading No. 40.05/16, in column (2), after the words "vulcanised or hardened, not elsewhere specified;", the words "vulca- nised rubber thread and cord, whether or not textile covered, and textile thread covered or impregnated with vulcanised rubber;" shall be inserted;
(36) in Chapter 44,—
(i) in Note 1, in item (b), for the brackets, word, letters and figures "(Heading No. J3.O1)", the brackets, word and figures "(Chapter 14)" shall be substituted;
(ii) in Note 3, for the words "descriptions of plywood", the words "descriptions of fibre building board, plywood" shall be substituted;
SEC. 2] THE GAZETTE OP INDIA EXTRAORDINARY 949(37) in Heading No 48 01/21, m column (2), the words "build- ing board of wood pulp or vegetable fibre whether or not bonded with natural or artificial resms or similar binders;" shall be omitted;
(38) in Section XI,—
(i) in Note 2, for paragraphs (A) and (B), the following paragraphs shall be substituted, namely —
" (A) Goods classifiable in any Heading in Chapters 50 to 57 and of a mixture of two or more textile materials are to be classified as if consisting wholly of that one textile ma- terial which predominates in weight over any other single textile material,
(B) For the purposes of the above rule:
(a) metallised yarn is to be treated as a single tex- tl'le material and its weight is to be taken as the aggre- gate of the weight of the textile and metal components; for the classification of woven fabrics, metal thread is to be regarded as a textile material;
(b) where a Heading refers to goods of different textile materials [for example- (1) silk and waste silk, (ii) carded sheep's or lambs' wool and combed sheep's or lambs' wool], such materials are to be treated as a single textile material.";
(ii) after Note 5, the following Note shall be inserted, namely: —
"6. The woven fabrics of'Chapters 50 to 57 are to be taken to include fabrics consisting of layers o£ parallel textile yarns superimposed on each other at acute or right angles. These layers are bonded at the intersections of the yarns by an adhesive or by thermal bonding.";
(39) in Heading No. 50.09/10, for Sub-heading No (2) in column (2), the following Sub-heading shall be substituted, namely: —
"(2) Fabrics, not elsewhere specified";
(40) in Heading No, 57 05/08, in column (2), the words "of hemp," shall be omitted;
(41) in Heading No. 57 09/12, in column (2), the words "of hemp," shall be omitted;
(42) in Chapter 59,—
(i) Note 1 shall be lettered as paragraph (A) of that Note and after paragraph (A) as so lettered, the following paragraph shall be inserted, namely: —
"(B) Throughout this Schedule, the term "felt" is to be taken to include fabrics consisting of a web of textile fibres the cohesion oi which has been enhanced by a stitch-bonding proeess using fibres from the web itself";
(ii) in Note 4, in item (a), in sub-item (iv), for the words "felts, whether or not", the words "fabrics, whether or not felfeH," shall be substituted;
95° THE GAZETTE OF INDIA EXTRAORDINARY [PARI II—(43) in Chapter 60, after Note 4, the following Note shall be in- serted, namely: —
"5. Throughout this Schedule, any reference to knitted goocts shall be taken to include a reference to stitch-bonded goods in which the chain stitches are formed of textile yarn.";
(44) in Section XII, in the title, the word "; FAJSTS" shall) be omitted;
(45) in Heading No. 66.01/03, in column (2), for the words "walk- ingrsticks and the like", the words "walking-sticks, canes, whips, rid- ing-crops and the like" shall be substituted;
(46) in Chapter 67,—
(i) in the title, the word "; fans" shall bo omitted;
(ii) in the Note, in item (e), the words "feather dusters," shall be omitted;
(47) in Heading No. 67.01/05, in column (2)—
(i) after the words "wigs and the like and animal hair", the words "and other textile materials" shall be inserted;
(it) the words and brackets "; fans (non^mechanical)" shall be omitted;
(48) in Chapter 68, in the Note, in item (fc), after the word and figures "Chapter 95", the words, figures, brackets and letter ", if made of materials specified in Note 2(b) to Chapter 95" shall be inserted;
(49) in Chapter 71 —
(i) in Note 2,—
(a) item (ij) shall be omitted;
(b) item (k) shall be relettered as item (ij);
(c) items (I) to (q) shall be relettered respectively as items (k) to (p);
(ti) in Note 4, in the opening paragraph, after the words "sintered mixture", the words "and an intermetallic compouncl" shall be inserted;
(50) in Section XV,—
(i) in Note 1, in item (d), for the words "walking-sticks and the like", the words "walking-sticks, canes, whips, riding-crops and the like" shall be substituted;
(ii) for Note 3, the following Note shall be substituted, namely: —
"3. Classification of alloys (other than ferro-alloys and master alloys as defined in Chapters 73 and 74):
(o) An alloy of base metals is to be classified as an alloy of the metal which predominates by weight over each of the other metals:
&B5. 2] THE GAZETTE OF INDIA EXTRAORDINAEY 951(b) An alloy composed of base metals of this Section and of elements not tailing within this Section is to be treated as atn alloy of base metals of this Section if the total weight of such metals equals or exceeds the total weight of the other elements present;
(c) In this Section, the term "alloys" is to be taken to include sintered mixtures of metal powders, heteroge- neous intimate mixtures obtained by melting (other than cermets) and intermetallic compounds.";
(51) in Heading No. 74.09/19, in column (2), for the words ''Other articles of copper'", the words "Other articles of copper including nails, tacks, stapples, hook-nails, spiked cramps, studs, spikes and drawing pins of iron or steel with heads of copper" shall be substituted;
(52) in Chapter 76, in Note 1, in item (e), for the figures and word "0.15 millimetre", the figures and word "0.20 millimetre" shall be substituted;
(53) in Heading No. 81.01/04, in column (2), for 'the words "other bape metals, wrought or unwrought", the words "other base metals and cermets, wrought or unwrought" shall be substituted;
(54) in Section XVI, in Note 1,—
(z) in item (a), alter the words "electrical appli- ances", the words "or for other industrial purposes" shall be in- serted;
(it) in item (b), for the words "for industrial purposes", the words "for other industrial purposes" shall be substituted;
(55) in Heading No. 84.04/05, in column (2), for the words "steam and other vapour power units, not incorporating boilers", the words "steam or other vapour power units, whether or not incorporating boilers" shall be substituted;
(56) in Heading No. 84.59, in sub-heading No. (2), m column (2), the words ", such as oil, soap or edible fats, artificial plastics, rubber or other similar products, electric wires and cables, ropes, baskets and brushes, cigars and cigarettes" shall be omitted;
(57) in Heading No. 85.11, in column (2), for the words "electric welding, brazing and soldering machines and apparatus and similar electric machines and apparatus for cutting", the words "electric or laser-operated welding, brazing, soldering or cutting machines and apparatus" shall be substituted;
(58) in Heading No. 85.18/27, m column (2),—
(i) in the opening paragraph,—
(a) the words "and electrically ignited photographic flash bulbs" shall be omitted;
(b) after the words "semi-conductor devices;", the words "light emitting diodes;" shall be inserted;
(u) in Sub-heading No. (4), the words "; electrically ignited photographic flash bulbs" shall be omitted;
0(59) in Heading No. 87.09/12, in column (2),—
(i) in the opening paragraph, for the words and brackets "invalid carnages fitted with means of mechanical propulsion (motorised or not)", the words "invalid carriages, whether or not motorised or otherwise mechanically propelled" shall be substi- tuted;
(it) for Sub-heading No. (3), the following Sub-heading shall
be substituted, namely: —
"(3) Invalid carriages, whether or not motorised or
otherwise mechajmcally propelled";
(60) for Heading No. 87.13/14 and the entry in column (2), the
following shall be substituted, namely: —
"87.13/14 Other vehicles (including trailers and baby car-
riages), not mechanically propelled and parts thereof";
(61) on Headmg No. 89.01/03, in column (2), after the words "floating docks", the words "; floating or submersible drilling or pro- duction platforms" shall be inserted;
(62) in Section XVIH, in the title, for the words "SOUND RECORDERS AND REPRODUCERS, TELEVISION IMAGE AND SOUND RECORDERS AND REPRODUCERS, MAGNETIC", the words "SOUND RECORDERS OR REPRODUCERS; TELEVISION IMAGE AND SOUND RECORDERS OR REPRODUCERS" shall be substituted;
(63) in Heading No. 90.01, in column (2), after the Words "flash- light apparatus", the woids and figures "and Hash bulbs other than discharge lamps of Heading No. 85.18/27" shall be inserted;
(64) in Heading No. 90.13, in column (2), after the words "this Chapter", the words "; lasers, other than laser diodes" shall be In- serted;
(65) in Chapter 92, in the title, for the words "sound recorders and reproducers; television image and sound recorders and reprodu- cers, magnetic", the words "sound recorders or reproducers^ tele- vision image and sound recorders or reproducers" shall be substi- tuted;
(66) in Heading No. 92.01/13, in column (2), for the words "re- corders and reproducers, magnetic", the words "recorders or repro- ducers" shall be substituted;
(67) in Chapter 95,—
(?) for the word "NOTE", the word "NOTES" shall be sub-
stituted;
(ii) the existing Note shall be numbered as Note 1, and In
Note 1 as so numbered,—
(a) item (b) shall be omitted;
(b) items (c) to (ij) shall be relettered respectively aa
Items (b) to (h);
SEC. 2] THE GAZETTE OF INDIA EXTRAOHDINARY 953(c) item (k) shall be rclettered as item (ij);
(d) items (I) to (n) shall be relettered respectively aa items (k) to (m);
(ui) after Note 1 as so numbered, the following Note shall be inserted, namely: —
'2. This Chapter covers "worked vegetable or mineral carving material" and this expression is to be taken to apply to:
(a) hard seads, pips, hulls and nuts and similar vegetable materials of a kind used for carving (for exam- ple, corozo and dom),
(b) jet (and mineral substitutes for jet), amber, meerschaum, agglomeratad amber and agglomerated meerschaum.';
(68) in Heading No, 95 01/08, for the words "worked unhardened gelatin, the words "worked vegstable or mineral carving material and worked unhardened gelatm" shall be substituted.;
(69) in Chapter 96, in the title, the words "feather dusters," shall be omitted;
(70) in Heading No. 96 01/06, in column (2), the words "feather dusters;" shall be omitted;
(71) in Heading No. 98.12/14, in column (2), the words "corset busks and similar supports for articles of apparel or clothing accesso- ries;" shall be omitted.
PART II
Rate of ' duty
Sub-heading No. and description -
Duration when rates of duty are protective
Standard
of article
Heading No
Preferential Areas
(3)
(4)
(1)
(a)
(3)
principal Act.
1
In t he First Schedule to the
(i) in Heading No. 08.1
I No. (5), th" owing sub-heading shall
}1/13, after £
be inserted, r
;ub-headin£ lamely: —
foil
r
"08-01/
Ri 3 • no pe
13 (6) Betel-nutj
R3. S'07 per
Kilogram
Kilogram
(11) for Heading No 14 01/05, the following heading shall ba substituted, namely: —
954 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—.
i __
(5)
(4)
(3)
(0
"I4-0I/O5 Vegetable materials of a"J kind used P) imarily for plait- ing, stuffing or In brushes 01 in brooms; vegetable pro- ducts not elsewhere specified or included :
6 0%
(1) Not elsewhere specified
..
*• •?
(2) Raw vegetable materials of a kind used primarily in dyeing or in tanning j 4°%
I shall be sub-
allowing Headin)
the *
( tii) for Heading No. 17.01, 2d, namely: —
slitutt
"17-01
Beet Sugar and Cane Sugar, in solid form:
6 0%
(1) Not elsewhere specified
100%
(a) Flavoured or coloured
following Heac iing shall be
the
iv) for Heading No. 17 03, ituted, namely.—
( substi
"17-03 a 'lolasses ;
60%
(1) Not elsewhere specified .
••
100%
(a) Flavoured or coloured
• • t
••
and 32J02/03, the fol]
lowing Heading
shall
[v) for Heading Nos. 32 01 1 be substituted, namely: —
"32-01/03 Tanning extracts of vegetable origin, tanning (tannic acids) and their derivatives, synthe- tic Organic tanning substances and inorganic tanning subs- tances; tanning preparations, whether or not contain- ing natural tanning materials:
I 'nzymatic preparations for pre-tanning (for example, of enzymatic, pancreatic or bacte- ria] origin):
60%
(1) Not elsewhere specified
60%
(2) Gambier
5 0%
(3) Mineral tanning and
tanning extracts of vega- table origin other than Gambler.
40%
./06, t ;he following H<
wading shall be
[vi) for Heading No. 59.01 ( atuted, namely: — subst
"39-01/06 ( Condensation, polycondensation and polyaddition products, whe- ther or not modified or poly- merised, and whether or not linear (for example, phrno- plasts, ammoplasts, alkyds, polyallyl esters ana other un- saturated polyesters, siheones); polymerisation and co-poly-
SEC 2] THE GAZETTE OF INDIA EXTRAORDINARY 955(5)
(4)
(3)
(0
mensation products (for ex- ample, polyethylene, polyte- trahaloethylenes, polyisobuty- lenc, polystyrene, polyvinyl chloride, polyvinyl acetatr, polyvinyl chloroacetate and other polyvinyl derivative*, poly acrylic and polymetha- crylic derivatives, coumaronf- indene resins) ; regenerated cellulose; cellulose nitrate, cellulose accetate and other cellulose esters, cellulose ethers and other chemical derivatives of cellulose, plasticised or not (for example, collodion*, celluloid); vulcanised fibre, hardened proteins (for exam" pic, hardened casein and har- dened gelatin); natural resins modified by fusion (run gums), artificial resins obtained by esterification of natural resins or of rcsinic acids (ester gums); chemical derivatives of na- tural rubber (for example, chlorinated rubber, rubber hydrochloride, oxidised rubber, cyclised rubber); other high polymers, artifi cial resins and artificial plastic materials, including alginic acid, its salts and esteiu, lmoxyn
100%
following Heading i shall be
01/28, the
subs-
(vii) for Heading No. 40. tituted, namely: —
"44-01/28 ' Wood in the rough, fuel wood, wood waste and wood charcoil wood flour and wood wool; sawn and dressed timber; veneered wood, plywood, cellular wood, Improved wood and reconidtuted wood; fibre, building board of wood or other vegetable material, whether or not bonded with natural or artificial resins or with other organic binder!; ipools, bobbins and the likr of turned wood; articles of wood, not elsewhere specified:
60%
(1) Not elsewhere specified .
• •
••
100%
' * 3
(a) Fibre building board of wood or other vegetable ma- terial, whether or not bonded with natural or artificial resins or with other or- ganic binders
lg Head-
d 50.08, the followii
0.03/07 an
iely: —
ing
1 [vwi) for Heading Nos. 5 shall be substituted, nan
"50-03/08 i Silk waste (including cocoons unsuitable fot reeling silk noils and pulled or garnettcd rags); silk yarn; silk worm gut and imitation catgut of silk
(i) Not elsewhere specified
5°% Plus
is. 8 80 per I
Decem kilogram 197
oer 31st, 9
(a) Silk worm gut and imi-
100%
tation catgut of silk
••
956 THE GAZETTE OF INDIA EXTRAORDINARY [PART II—STATEMENT OF OBJECTS AND REASONS
The Customs Tariff Act, 1975 (51 of 1975) which came into force on the 2nd August, 1976 contains a new Customs Tariff Nomenclature based on the Customs Co-operation Council Nomenclature (hereinafter re- ferred to as the CCCN) The Act, however, is not a complete adoption of the CCCN but only an adaptation, through suitable contraction and ex- pansion as specified in the Headings to the First Schedule to the Act, to suit our own requirements. Such of the adjacent Headings of the CCCN as related to articles of negligible significance in our import trade were merged into one or more Headings to simplify the scheme of our tariff and to make it better suited to OUT conditions and pattern of trade. The adoption of contracted version of the CCCN by the Government of India was examined in consultation with the Customs Co-operation Council and they had pointed out that adaptation in the manner indicated above had resulted in departure from the scheme of that Nomenclature In some cases. While in some instances the departure was deliberate and desir- able, there were few instances where there was no purpose or advantage in making a departure from the CCCN. It is, therefore, considered desir- able to make necessary changes in the Act to align our tariff better with CCCN.
2. Recently, the Customs Co-operation Council had also recommended to its Members the adoption of certain amendments to take effect from the 1st January, 1978 The changes are mostly of technical nature seek- ing to define or re-deflne clearly the scope of some of the Headings. It has been decided to incorporate the changes in the Act except the amend- ments which are not necessary in view of the contraction of Headings in our tariff and those which are contrary to the provisions of the Customs Act, 1962 (52 of 1962).
3. Section 4 of the Customs Tariff Act relates to levy of preferential rates of duty in respect of articles which are the produce or manufacture of the United Kingdom or of any other preferential area. Sub-section (4) of this section provides for amending the First Schedule to the Act so as to discontinue the preferential rates if the Central Government is satisfied that in the interest of trade, including promotion of exports, it is necessary so to do Accordingly, with effect from the 1st July, 1977, preferential rates for goods of United Kingdom origin were discontinued. Opportunity is being taken to omit column (4) in the Table below every Chapter of the First Schedule to the Act which relates to preferential rates of duty on goods of United Kingdom origin and to carry out con- sequential amendments.
4 The Bill seeks to give effect to the above objects.
NEW DELHI;
SATISH AGARWAL
The 12th December, 1977.
SEC 2] THE GAZETTE OF INDIA EXTRAORDINARY 956APRESIDENT'S RECOMMENDATION UNDER ARTICLE 117 OF THE CONSTITUTION OF INDIA
[Copy of letter No. 527/11/77-CUS (TU), dated the 15th December, 1977 from Shri Satish Agarwal, Minister of State in the Ministry of Finance to the Secretary, Lok Sabha.]
The President, having been informed of the subject matter of the Bill further to amend the Customs Tariff Act, 1975, recommends under clause (1) of article 117 of the Constitution of India, the introduction of the Bill in Lok Sabha.
AVTAR SINGH RIKHY,
Secretary
PKINTIKD BY THE GENERAL MANAGER, GOVERNMENT OF rNDIA PRESS, M 1 N T0 ROAD, NEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI 1 9 77