Panaji, 8th April, 2021 (Chaitra 18, 1943)

SERIES I No. 2

Reg. No. RNP/GOA/32/2021-2023

RNI No. GOAENG/2002/6410

PUBLISHED BY AUTHORITY

NOTES

There are two Extraordinary issues to Official Gazette, Series I No. 1 dated 1-4-2021, namely:—

(1) Extraordinary dated 5-4-2021 from pages 17 to 24 from Department of Transport, Notification No. D. Tpt/EST/

2812/2019/966 regarding compounding of offences under M.V. Act, 1988.

(2) Extraordinary (No. 2) dated 6-4-2021 from pages 25 to 28, Department of Home, Notification No. 21/5/2020-

HD(G)/Part II/976 regarding amendment of notification dated 23-11-1995.

INDEX

Department

Order/Notification/Corrigendum

Subject

Pages

1. a. Law

Not.- 10/4/2019-LA

The Recycling of Ships Act, 2019.

Legal Affairs

Joint Secy.

b. —do—

Not.- 10/4/2019-LA

The Taxation Laws (Amendment) Act, 2019.

2. a. Planning, Statistics &

Ord.- DPSE/I/ADMN/

Total sanctioned staff strength.

Evaluation

Creation/Part-I/2019/755

Dir. ex off. Addl. Secy.

b. —do—

Ord.- DPSE/I/ADMN/

Total sanctioned staff strength.

Creation/Part-I/2019/756

Revenue

Cor.- 7/1/Fixation of land

—

Under Secretary

Rates/2012-RD (Part I)/8048

4. a. Urban Development

Not.- 1/RERA/Regulations

The Transaction of Business by the Goa Real

GRERA

of GRERA/2020/1

Estate Regulatory Authority Regulation, 2021.

Chairperson

b. —do—

Not.- 1/RERA/Regulations

Documents/information required for registration

of GRERA/2020/2

of Real Estate Project regarding separate plan for

phase wise or part development, Regulation, 2021.

c. —do—

Not.- 1/RERA/Regulations

According approval for transfer of a real estate

of GRERA/2020/3

project to a Third party, Regulation, 2021.

Suggestions are welcomed on e-mail: dir–[email protected]

GOVERNMENT OF GOA

Department of Law

Legal Affairs Division

–––

Notification

10/4/2019-LA

The Recycling of Ships Act, 2019 (Central

Act No. 49 of 2019), which has been passed

by Parliament and assented to by the

President on 13-12-2019 and published in the

Gazette of India, Extraordinary, Part II,

Section 1, dated 16-12-2019, is hereby

published for the general information of the

public.

D. S. Raut Dessai, Joint Secretary (Law).

Porvorim, 21st May, 2020.

OFFICIAL GAZETTE — GOVT. OF GOA

SERIES I No. 2

8TH APRIL, 2021

THE RECYCLING OF SHIPS ACT, 2019

___

Arrangement of Sections

CHAPTER I

Preliminary

Sections

1. Short title, commencement and application.

2. Definitions.

CHAPTER II

Authorities under the Act

3. Designation of National Authority.

4. Designation of Competent Authority.

CHAPTER III

Requirements for Ships

5. Non-application of provisions of this Chapter.

6. Controls on hazardous materials.

7. Surveys.

8. Certificate on inventory of hazardous

materials.

9. Validity of certificate.

10. Suspension or cancellation of certificate.

CHAPTER IV

Ship Recycling Facility

11. Authorisation of ship recycling facility.

12. Ship recycling facility management plan and

procedure for authorisation of ship recycling

facility.

13. Suspension or cancellation of authorisation.

14. Emergency preparedness and response.

15. Workers safety, training and insurance.

CHAPTER V

Process of Recycling of Ships

16. Ready for recycling certificate.

17. Ship recycling plan.

18. General requirements.

19. Obligations on part of ship owner.

20. Procedure for grant of permission for ship

recycling.

21. Safe and environmentally sound management

of hazardous materials.

22. Obligation on Ship Recycler to take measures

for protection of environment.

CHAPTER VI

Reporting Requirements

23. Statement of completion.

24. Report to National Authority.

CHAPTER VII

Appeals

25. Appeal against decision of Competent

Authority.

26. Appeal against decision of National Authority.

CHAPTER VIII

Powers and Functions of National Authority,

Competent Authority and Central Government

27. Power to search and seize records, etc.

28. Power to inspect, dismiss, exclude or detain

a ship.

29. Power to exempt.

30. Act not to apply to certain ships.

CHAPTER IX

Offences, Penalties and Compensation

31. Penalty for contravention of provisions of Act

or rules or regulations.

32. Penalty for contravention of provisions of this

Act or rules or regulations for which no

specific punishment is provided.

33. Punishment for other offences.

34. Offences by companies.

35. Offences to be non-cognizable, bailable and

compoundable.

36. Cognizance of offences.

37. Amount payable by owner, master or agent.

38. Place of trial and jurisdiction of court.

39. Compensation.

CHAPTER X

Miscellaneous

40. Delegation of powers.

41. Act not in derogation of any other law.

42. Power to make rules.

43. Power to make regulations.

44. Laying of rules and regulations.

45. Protection of action taken in good faith.

46. Removal of difficulties.

OFFICIAL GAZETTE — GOVT. OF GOA

SERIES I No. 2

8TH APRIL, 2021

THE RECYCLING OF SHIPS ACT, 2019

ACT

to provide for the regulation of recycling of

ships by setting certain standards and

laying down the statutory mechanism for

enforcement of such standards and for

matters connected therewith or incidental

thereto.

Whereas, the International Maritime

Organisation adopted the Hong Kong

International Convention for the Safe and

Environmentally Sound Recycling of Ships,

2009 which ensures that ships, when being

recycled after the end of their operational

lives, do not pose any unnecessary risk to

the environment and to human health and

safety;

And whereas, the said Convention was

developed with inputs from International

Maritime Organisation Member States, Non-

Governmental Organisations and in co-

operation with the International Labour

Organisation and the Parties to the Basel

Convention on the Control of Transboundary

Movements of Hazardous Wastes and their

Disposal, 1989;

And whereas, the Hong Kong Convention

lays down the aspects relating to design,

construction, operation and preparation of

ships so as to facilitate safe and

environmentally sound recycling, without

compromising the safety and operational

efficiency of ships and the establishment of

an appropriate enforcement mechanism for

recycling of ships;

And whereas, the said Convention

contains the provisions which are not covered

in the Ship-breaking Code (Revised), 2013

notified by the Government of India to

regulate the recycling of ships in India;

And whereas, the said Convention lays

down the multilateral framework to be

followed internationally by countries which

become a party to it;

And whereas, India, being a Member-State

of the International Maritime Organisation,

had participated in the said Convention and

expressed views for the protection of

environment and human health and safety

during the process of recycling of ships;

And whereas, it is considered expedient

to accede to the aforesaid Convention now

and to have an appropriate legislation on

issues relating to the recycling of ships.

BE it enacted by Parliament in the

Seventieth Year of the Republic of India as

follows:—

CHAPTER I

Preliminary

1. Short title, commencement and

application.— (1) This Act may be called the

Recycling of Ships Act, 2019.

(2) It shall come into force on such date as

the Central Government may, by notification

in the Official Gazette, appoint and different

dates may be appointed for different

provisions of this Act and any reference in

any such provision to the commencement of

this Act shall be construed as a reference to

the coming into force of that provision.

(3) Unless otherwise expressly provided,

the provisions of this Act shall apply to—

(a) any existing ship which is registered

in India wherever it may be;

(b) any new ship which is required to

be registered in India, wherever it may

be;

referred to in clauses (a) and (b),

that enter a port, shipyard or off-

shore terminal or a place in India

within

the

Exclusive

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SERIES I No. 2

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Economic Zone or territorial

waters of India or any marine

areas adjacent thereto over

which India has, or may have,

exclusive

jurisdiction

with

respect to control of pollution

under the provisions of the

Territorial Waters, Continental

Shelf, Exclusive Economic Zone

and Other Maritime Zones Act,

1976, or any other law for the

time being in force;

(d) any warship, naval auxiliary or other

ship

owned

operated

Administration and used on Government

non-commercial service, and which is

destined for recycling in a ship recycling

facility operating in or within the territorial

jurisdiction of India; and

(e) ship recycling facilities operating in

India or within any area falling under the

exclusive territorial jurisdiction of India.

2. Definitions.— (1) In this Act, unless the

context otherwise requires,—

(a)

“Administration”

means

the

Government of the country whose flag the

ship is entitled to fly, or under whose

authority it is operating;

(b) “certificate of authorisation of ship

recycling facility” means the certificate

referred to in sub-section (6) of section 12;

materials” means the certificate referred

to in section 8;

(d) “Competent Authority” means such

Authority designated by the Central

Government under section 4;

(e) “hazardous material” means any

material or substance, which is liable to

cause harm to human beings, other living

creatures,

plants,

micro-organisms,

property or the environment;

(f) “National Authority” means such

Authority designated by the Central

Government under section 3;

(g) “notification” means a notification

published in the Official Gazette and the

expressions “notify” or “notified” shall be

construed accordingly;

(h) “prescribed” means prescribed by

rules made under this Act;

(i) “ready for recycling certificate”

means the certificate referred to in section

16;

(j) “regulations” means the regulations

made by the National Authority under this

Act;

(k) “ship” means a vessel and floating

structure of any type whatsoever operating

or having operated in the marine

environment and includes submersibles,

floating craft, floating platforms, self-

elevating platforms, the floating storage

units, and the like;

(l) “ship owner” means—

(i) a person or an association of

persons or body of individuals or a

company registered as the owner of the

ship;

(ii) any organisation or a person such

as the Manager or the Bareboat

Charterer, who has assumed the

responsibility for operation of the ship

from the owner of the ship;

(iii) a company, which is registered

as operator and is operating a ship

owned by the Government; or

(iv) a person or an association of

persons or company owning the ship for

a limited period pending its sale or

handing over to a ship recycling facility;

(m) “Ship Recycler” means the owner

of the ship recycling facility or any other

organisation or person who has assumed

the responsibility for operation of the ship

recycling facility and who has agreed to

take over all duties and responsibilities

imposed by or under this Act;

80 of 1976.

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(n) “ship recycling” means the activity

of dismantling of a ship at a ship recycling

facility in order to recover components and

materials for reprocessing and reuse, while

taking care of hazardous and other

materials

and

includes

associated

operations such as storage, treatment of

components and materials on site, but not

their further processing or disposal in

separate facilities;

(o) “ship recycling facility” means a

defined area that is a site, yard or facility

used for the recycling of ships and meets

such requirements as may be specified by

the regulations;

(p) “ship recycling plan” means a plan

specific to a ship developed by the ship

recycling facility to recycle such a ship in

safe and environmentally sound manner;

(q) “statement of acceptance” means a

statement of acceptance referred to in sub-

section (4) of section 20;

(r) “statement of completion” means a

statement of completion referred to in

section 23;

(s)

“Surveyor”

means

Surveyor as defined under clause

(48) of section 3 of the Merchant

Shipping Act, 1958 or any other

person or body of persons as may

be notified by the Central

Government;

(t) “worker” means a person employed,

directly or by or through any agency

(including a contractor) with or without

the knowledge of the principal employer,

whether for remuneration or not, in any

ship recycling, or in cleaning any part of

the machinery or premises used for ship

recycling, or in any other kind of work

incidental to, or connected with, the ship

recycling, or the subject of the ship

recycling but does not include any member

of the armed forces of the Union.

(2) The words and expressions used and

not defined in this Act but defined in the—

(i) Explosives Act, 1884;

(ii) Inland Vessels Act, 1917;

(iii) Petroleum Act, 1934;

(iv) Factories Act, 1948;

(v) Merchant Shipping Act,

1958;

(vi) Atomic Energy Act, 1962;

(vii) Wildlife (Protection) Act,

1972;

(viii) Water (Prevention and

Control of Pollution) Act, 1974;

(ix)

Territorial

Waters,

Continental Shelf, Exclusive

Economic

Zone

and

Other

Maritime Zones Act, 1976;

(x) Forest (Conservation) Act,

1980;

(xi) Air (Prevention and Control

of Pollution) Act, 1981;

(xii) Environment (Protection)

Act, 1986,

shall have the same meanings respectively

assigned to them in those Acts.

CHAPTER II

Authorities under the Act

3. Designation of National Authority.— The

Central Government shall, by notification,

designate an officer not below the rank of

Joint Secretary to the Government of India

as the National Authority, which shall

administer, supervise and monitor all

activities relating to ship recycling under this

Act.

4. Designation of Competent Authority.—

The Central Government shall, by notification,

designate an Authority to be called the

Competent Authority, for performance of such

duties within the geographical area or areas

of expertise as may be prescribed.

44 of 1958.

4 of 1884.

30 of 1934.

1 of 1917.

33 of 1962.

53 of 1972.

6 of 1974.

44 of 1958.

63 of 1948.

29 of 1986.

14 of 1981.

80 of 1976.

69 of 1980.

OFFICIAL GAZETTE — GOVT. OF GOA

SERIES I No. 2

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CHAPTER III

Requirements for ships

5. Non-application of provisions of this

Chapter.— Nothing contained in this Chapter

shall apply to—

(a) any warship, naval auxiliary, or other

ships owned or operated by the

Government and used for Government non-

commercial purpose;

(b) ships of less than five hundred gross

tonnage:

Provided that the Central Government

may notify appropriate measures, not

impairing operations or operational

capabilities of such ships to ensure, as far

as practicable, that such ships act in a

manner consistent with the provisions of

this Act.

6. Controls on hazardous materials.— (1)

No ship shall install or use such prohibited

hazardous materials as may be notified by

the Central Government:

Provided that the Central Government may,

by notification and for the reasons specified

therein, exempt certain class or category of

ships from the provisions of sub-section (1).

(2) Every ship shall comply with such

restrictions and conditions, as may be

prescribed.

7. Surveys.— (1) The National Authority or

such person or organisation, as the Central

Government may by notification authorise,

shall carry out following surveys of the

ships—

(a) an initial survey before the issue of

certificate on inventory of hazardous

materials, so as to verify such requirements

as may be prescribed;

(b) a renewal survey at intervals not

exceeding five years as may be prescribed;

or partial, at the request of the ship owner

after a change, replacement or significant

repair of the structure, equipment, systems,

fittings, arrangements or material;

(d) a final survey prior to the ship being

taken out of service and before the

recycling of the ship so as to verify such

requirements as may be prescribed; and

(e) such other surveys as may be

prescribed.

(2) The survey shall be conducted and a

certificate to this effect shall be issued in

accordance with the provisions of this Act

and the rules or regulations made thereunder.

8. Certificate on inventory of hazardous

materials.— (1) The owner of every new ship

shall make an application to the National

Authority for a certificate on inventory of

hazardous materials for the purposes of this

Act and such certificate shall be specific to

each ship:

Provided that the existing ships on the date

of commencement of this Act, and for which

the certificate on inventory of hazardous

materials had not been issued, the owner of

such ship shall make an application to the

National Authority within a period of five

years from the date of commencement of this

Act:

Provided further that a certificate on

inventory of hazardous materials issued by

any Administration shall be valid for the

purposes of this Act.

(2) The terms and conditions, the format

and the manner for granting the certificate

on inventory of hazardous materials shall be

such as may be prescribed.

(3) The certificate on inventory of

hazardous materials shall be properly

maintained and updated throughout the

operational life of the ship, reflecting the new

installations containing hazardous materials

and relevant changes in the ship structure

and equipment.

Explanation.— For the purposes of this

sub-section,

the

expression

“new

installation” includes systems, equipment,

insulation or other material installed on a ship

after the date of coming into force of this

Act.

OFFICIAL GAZETTE — GOVT. OF GOA

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8TH APRIL, 2021

(4) The certificate on inventory of

hazardous materials shall be endorsed by the

National Authority after successful completion

of an additional survey conducted in

accordance with clause (c) of sub-section (1)

of section 7.

Explanation.— For the purposes of this

section, the expressions—

(i) “existing ship” means a ship which

is not a new ship;

(ii) “new ship” means a ship,—

(a) for which the building contract is

placed on or after the date of coming

into force of this Act; or

(b) other than the ship referred to in

sub-clause (a), the keel of which is laid

or which is at a similar stage of

construction after six months from the

date of coming into force of this Act; or

months from the date of coming into

force of this Act,

and which is intended to be registered in

India.

9. Validity of certificate.— The certificate

referred to in sub-section (1) of section 8 shall

be issued or renewed for such period, not

exceeding five years, as may be prescribed:

Provided that where validity of certificate

on inventory of hazardous material expires

at a time when a ship is not in the port in

which it is to be surveyed, the Administration

may extend the period of validity of such

certificate and this extension shall be granted

only—

(a) for the purpose of allowing the ship

to complete its voyage to the port in which

it is to be surveyed; or

(b) in cases where it appears proper and

reasonable to the Administration to do so:

Provided further that no certificate shall

be extended for a period longer than three

months, and a ship to which an extension is

granted shall not, on its arrival on the port in

which it is to be surveyed, be entitled by

virtue of such extension to leave that port

without having the certificate renewed.

10.

Suspension

cancellation

certificate.— The certificate on inventory of

hazardous materials shall be liable to be

suspended or cancelled by the National

Authority in any of the following cases,

namely:—

(i) if the ship, prima facie, does not

comply with the particulars of the

certificate;

(ii) where the inventory of hazardous

materials is not properly maintained and

updated with such changes in the ship

structure and equipment as may be

prescribed;

(iii) in case of transfer of the ship to the

flag of another State;

(iv) if the survey specified by the

Administration is not completed within the

period specified in section 7; or

(v) if endorsement of certificate does not

disclose,—

(a) conduct of an additional survey as

required under section 7; or

(b) extension of the validity of the

certificate required under section 9:

Provided that no certificate under this

section shall be suspended or cancelled

unless the owner of the ship has been

given an opportunity of being heard.

CHAPTER IV

Ship recycling facility

11. Authorisation of ship recycling

facility.— No Ship Recycler shall recycle a

ship, unless the ship recycling facility is

authorised as per the procedure laid down

in section 12.

12. Ship recycling facility management plan

and procedure for authorisation of ship

recycling facility.— (1) A Ship Recycler

seeking a certificate of authorisation for ship

recycling facility from the Competent

Authority or an organisation recognised by

OFFICIAL GAZETTE — GOVT. OF GOA

SERIES I No. 2

8TH APRIL, 2021

it, shall prepare a ship recycling facility

management plan as specified by the

regulations and submit an application to the

Competent Authority.

(2) Every application for authorisation

under sub-section (1), shall be made to the

Competent Authority in such form and

manner and accompanied by such fee as

may be prescribed.

(3) Every ship recycling facility engaged

in recycling of ships, immediately before the

commencement of this Act, shall apply for

authorisation within sixty days from the date

of such commencement.

(4) Subject to the provisions of sub-section

(3), every ship recycling facility engaged in

recycling of ships, immediately before the

commencement of this Act shall cease to

conduct any such recycling on the expiry of

six months from the date of commencement

of this Act unless such ship recycling facility

has applied for authorisation and is so

authorised or till such application is disposed

of, whichever is earlier.

(5) No ship recycling facility shall be

authorised under this Act unless the

Competent Authority is satisfied that such

facility maintains such equipment and

standards as may be specified by the

regulations.

(6) The Competent Authority shall, after

holding an enquiry and after satisfying itself

that the applicant has complied with all the

requirements of this Act and the rules and

the regulations made thereunder, grant a

certificate of authorisation in such format as

may be specified by the regulations.

(7) If, after an enquiry and after giving to

the applicant an opportunity of being heard,

the Competent Authority is satisfied that the

applicant has not complied with the

requirements of this Act, or the rules or

regulations made thereunder, it shall, for

reasons to be recorded in writing, reject the

application for authorisation.

(8) Every certificate of authorisation for

ship recycling facility shall be valid for such

period not exceeding five years as may be

specified by the regulations.

(9) Every certificate of authorisation shall

be renewed in such manner and after such

period and on payment of such fee as may

be prescribed.

(10) The Competent Authority shall

undertake an annual audit of every ship

recycling facility to satisfy compliance with

the requirements of this Act, the rules and

regulations made thereunder and forward

such audit report to the National Authority.

13.

Suspension

cancellation

authorisation.— (1) The Competent Authority

may, whenever it considers necessary, for

the reasons to be recorded in writing,

conduct an enquiry or inspection of a ship

recycling facility and issue a notice to the

Ship Recycler to show cause as to why the

authorisation of his ship recycling facility

should not be suspended or cancelled for the

reasons mentioned in the notice.

(2) The manner of enquiry or inspection

by the Competent Authority shall be such as

may be specified by the regulations.

(3) If the Competent Authority is satisfied

that there has been a breach of the provisions

of this Act or the rules or the regulations

made thereunder, it may, without prejudice

to any criminal action that it may take against

such Ship Recycler, suspend or cancel the

authorisation of his ship recycling facility:

Provided that no such authorisation shall

be suspended or cancelled without giving

an opportunity of being heard in the matter

to the Ship Recycler.

(4) Notwithstanding anything contained in

sub-sections (1) and (2), if the Competent

Authority is of the opinion that it is necessary

or expedient so to do in public interest, it

may, for reasons to be recorded in writing,

suspend or cancel the authorisation of any

ship recycling facility without issuing any

notice referred to in sub-section (1).

14. Emergency preparedness and

response.— Every Ship Recycler

shall maintain adequate measures

OFFICIAL GAZETTE — GOVT. OF GOA

SERIES I No. 2

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for emergency preparedness and

response in accordance with the

provisions of the Factories Act,

1948 in his ship recycling facility.

15. Workers safety, training and

insurance.—

(1)

Every

Ship

Recycler shall provide adequate

measures for safety, health, training

and welfare of workers in his ship

recycling facility and ‘for this

purpose, the provisions of the

Factories Act, 1948 shall apply.

(2) Every Ship Recycler shall provide an

individual or comprehensive insurance

coverage for the regular and temporary

workers in such manner as may be

prescribed.

CHAPTER V

Process of recycling of ships

16. Ready for recycling certificate.— (1) The

owner of a ship who intends to recycle his

ship shall make an application to the National

Authority for a ready for recycling certificate

in such form, manner, and accompanied by

such fee as may be specified by the

regulations or the Administration concerned

as per the procedure determined by such

Administration.

(2) A ready for recycling certificate referred

to in sub-section (1) may be issued after

successful completion of a survey and shall

be valid for a period of three months from

the date of its issue:

Provided that the period of validity may be

extended by the National Authority for such

reasons as may be specified by the

regulations or the Administration concerned

as per the reasons determined by such

administration.

(3) A ready for recycling certificate shall

cease to be valid, if the condition of the ship

does not correspond with the particulars of

the certificate.

17. Ship recycling plan.— (1) No Ship

Recycler shall recycle any ship without a ship

recycling plan prepared in accordance with

the guidelines issued under sub-section (2)

and approved by the Competent Authority.

(2) The National Authority may specify the

guidelines for the preparation of a ship

recycling plan for different categories of ships:

Provided that the Competent Authority

may, after hearing the Ship Recycler, refuse

to approve the ship recycling plan if it has

reasons to believe that the plan does not

comply with the guidelines specified by the

National Authority.

(3) Where the Competent Authority fails to

convey its decision regarding approval of the

ship recycling plan within fifteen days of its

submission, the plan shall be deemed to have

been approved.

18. General requirements.— (1) No ship

shall be recycled without the written

permission or, as the case may be, the

deemed permission of the Competent

Authority obtained in such manner as may

be specified by the regulations.

(2) Any ship registered in India and

intended to be recycled outside the territory

of India shall be recycled only at a ship

recycling facility duly authorised by such

authority as may be specified by the

regulations.

19. Obligations on part of ship owner.—

(1) The owner of a ship which is intended to

be recycled within the territory of India

shall—

(i) give an advance intimation to the

Maritime Rescue Co-ordination Centre and

the Competent Authority about the date of

arrival, in such manner as may be

prescribed;

(ii) clear all port dues, if any, upon

arriving at the port and submit the

documents as specified in the regulations;

and

(iii) keep the ship clear of cargo residues

and shall minimise any remaining fuel oil

and wastes on board.

63 of 1948.

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(2) The owner of a tanker which is

intended to be recycled within the territory

of India shall fulfil such conditions for safe-

for-entry or safe-for-hotwork or both, as

specified by the regulations.

20. Procedure for grant of permission for

ship recycling.— (1) The Competent Authority

shall grant permission for recycling only after

physical inspection of the ship and for this

purpose it may requisition the services of

representatives of such agencies as may be

prescribed.

(2) Where the Competent Authority fails to

convey its decision regarding grant of

permission within fifteen days of receipt of

application, the permission shall be deemed

to have been granted.

(3) The Competent Authority may deny

permission for recycling for reasons to be

recorded in writing after affording an

opportunity of being heard to the ship owner.

(4) The Ship Recycler, on receipt of a copy

of permission to recycle the ship, shall issue

a statement of acceptance to the ship owner

under intimation to the Competent Authority

in such form and manner as may be specified

by the regulations and thereafter the ship

owner may get the ship de-registered.

21. Safe and environmentally sound

management of hazardous materials.— Every

Ship Recycler shall,—

(a) ensure safe and environmentally

sound removal and management of

hazardous materials from a ship; and

(b) comply with such requirements

related to basic infrastructure facilities

including those related to environmentally

safe disposal or management of wastes and

hazardous materials, in such manner as

may be specified by the regulations.

22. Obligation on Ship Recycler to take

measures for protection of environment.— (1)

Every Ship Recycler shall,—

(i) ensure that there is no damage

caused to the environment in any form due

to the recycling activities at the ship

recycling facility; and

(ii) take necessary measures for

protection of the environment.

(2) In case of oil spill in the facility, the

Ship Recycler shall be served a notice by

the Competent Authority to take remedial

action in such manner as may be specified

by the regulations.

(3) For contravention of the provisions of

this section, the Ship Recycler shall be liable

to pay such environmental damages and

cleanup operation compensation in such

manner as may be prescribed.

CHAPTER VI

Reporting requirements

23. Statement of completion.— When a ship

is recycled in accordance with the provisions

of this Act, a statement of completion

containing such particulars as may be

specified by the regulations shall be

submitted by the Ship Recycler to the

Competent Authority.

24. Report to National Authority.— The

Competent Authority shall give report to the

National Authority, from time to time, which

shall include information comprising the list

of approved facilities, list of ships which have

not complied with the provisions of this Act

and action taken on such ships and list of

ships recycled, as may be required by the

National Authority.

CHAPTER VII

Appeals

25. Appeal against decision of Competent

Authority.— (1) Any person who is aggrieved

by any decision made by the Competent

Authority or the authorised surveyor or any

authorised organisation or authorised person

may file an appeal to the National Authority

within a period of thirty days from the date

of receipt of such decision in such manner

as may be prescribed:

Provided that in respect of matters under

any other law for the time being in force for

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which an appellate provision exists, in such

law, then the appellant shall file the appeal

to the authority specified in such law.

(2) The appeal filed under sub-section (1)

shall be disposed of in such manner as may

be prescribed.

26. Appeal against decision of National

Authority.— (1) Any person who is aggrieved

by any decision made by the National

Authority may file an appeal to the Central

Government within a period of thirty days

from the date of receipt of such decision in

such manner as may be prescribed.

(2) The appeal filed under sub-section (1)

shall be disposed of in such manner as may

be prescribed.

CHAPTER VIII

Powers and functions of National Authority,

Competent Authority and Central Government

27. Power to search and seize records, etc.—

(1) If the National Authority or the Competent

Authority has reason to believe that an

offence under this Act has been or is being

committed at any ship recycling facility, such

Authority or any officer authorised there for

in this behalf may, subject to the rules and

regulations made under this Act, enter and

search at all reasonable times with such

assistance, if any, as such Authority or officer

considers necessary, such ship recycling

facility and examine any record, register,

document, equipment or any other material

object found therein and seize the same if

such Authority or officer has reason to believe

that it may furnish evidence of the

commission of an offence punishable under

this Act.

(2) The provisions of the Code of

Criminal Procedure, 1973 relating to

searches and seizures shall, so far

as may be, apply to every search

or seizure made under this Act.

28. Power to inspect, dismiss, exclude or

detain a ship.— (1) The National Authority

or Administration or any Survey authorised

by it, may inspect any ship, at a reasonable

time, while at any port or within Indian

waters:

Provided that any such inspection shall be

only for the purpose of verifying that there is

on board either a certificate on inventory of

hazardous materials or a ready for recycling

certificate.

(2) The National Authority may dismiss,

exclude or detain the ship from its ports or

within Indian waters in case of,—

(a) failure to carry a valid certificate on

inventory of hazardous materials or a valid

ready for recycling certificate or both, as

applicable; or

(b) non-compliance with the control

measures for hazardous materials notified

by the Central Government.

(3) A ship detained under sub-section (2)

shall remain under detention till such time

until the non-compliance is rectified or till

such time until permission is granted by the

National Authority for such detained ship to

proceed to an appropriate repair yard or port,

without danger to the ship, environment or

persons on board.

(4) Any Commissioned Officer of the Indian

Navy or Indian Coast Guard or any Port

Officer, Pilot, Harbour Master, Conservator of

Port or Customs Collector may detain the

ship, the detention of which is authorised or

ordered to be detained under this Act.

29. Power to exempt.— (1) Notwithstanding

anything contained in this Act, the Central

Government may, by order in writing and

upon such conditions, if any, as it may think

fit to impose, exempt any vessel or any class

thereof, ship recycling facility or Ship Recycler

from any specified requirement contained in

or prescribed in pursuance of this Act or

dispense with the observance of any such

requirement, if it is satisfied that the

requirement has been substantially complied

with or that compliance with the requirement

is or ought to be dispensed within the

circumstances of the case.

(2) Where an exemption granted under

sub-section (1) is subject to any conditions,

2 of 1974.

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a breach of any of those conditions shall,

without prejudice to any other remedy, be

deemed to be an offence under this Act.

30. Act not to apply to certain ships.— The

provisions of this Act shall not apply to such

category of Indian ships, as the Central

Government may, from time to time, by

notification specify:

Provided that such ships shall be required

to act in such manner as may be prescribed.

CHAPTER IX

Offences, Penalties and Compensation

31. Penalty for contravention of provisions

of Act or rules or regulations.— (1) Whoever

installs or uses any prohibited hazardous

material in a ship in contravention of the

provisions of this Act or rules or regulations

made thereunder shall be punishable with

imprisonment for a term which may extend

to three months or with fine which may

extend to five lakh rupees or with both.

(2) Whoever contravenes the provisions of

section 12 shall be punishable with

imprisonment for a term which may extend

to one year or with fine which may extend to

ten lakh rupees or with both.

(3) Whoever contravenes the provisions of

sub-section (1) of section 17 shall be

punishable with imprisonment for a term

which may extend to one year or with fine

which may extend to ten lakh rupees or with

both.

(4) Whoever contravenes the provisions of

sub-section (1) of section 18, shall be

punishable with imprisonment for a term

which may extend to one year or with fine

which may extend to ten lakh rupees or with

both.

(5) Whoever fails to ensure safe and

environmentally

sound

removal

and

management of any hazardous material from

a ship in accordance with the regulations

shall be punishable with an imprisonment

for a term which may extend to six months

or with fine which may extend to five lakh

rupees or with both.

(6) Whoever fails to respond to the notice

issued for oil spill under sub-section (2) of

section 22 shall be punishable—

(i) with a fine which may extend to five

lakh rupees in case of non response within

twelve hours of issuance of first notice;

(ii) with a fine which may extend to ten

lakh rupees in case of non response within

twenty-four hours of issue of second notice;

and

(iii) with an imprisonment which may

extend to three months and with a fine

which may extend to ten lakh rupees in

case of non response beyond twenty-four

hours of issue of third notice.

32. Penalty for contravention of provisions

of this Act or rules or regulations for which

no specific punishment is provided.—

Whoever contravenes any of the provisions

of this Act or any rules or regulations made

thereunder, for which no specific punishment

has been provided in this Act, shall be

punishable with imprisonment for a term

which may extend to three months or with

fine, which may extend to two lakh rupees

or with both and, in the case of a continuing

contravention, with an additional fine which

may extend to five thousand rupees for every

day during which such contravention

continues after the conviction for the first

such contravention.

33. Punishment for other offences.— (1) If

any ship, after detention or after service of

any notice or order for such detention,

proceeds to sea before it is released by the

National Authority, the owner or master of

the ship shall be guilty of an offence under

this Act.

(2) Whoever restrains or detains or forcibly

takes to sea, any person authorised under

this Act to detain or survey the ship, on the

execution of his duty, the owner, master or

agent of such ship shall each be liable to pay

all expenses of, and incidental to, such person

being so taken to sea and shall also be guilty

of an offence under this Act.

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34. Offences by companies.— (1) Where an

offence under this Act has been committed

by a company, 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 be

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, provided in this Act, if

he proves that the offence was committed

without his knowledge or that he had

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 connivance

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 be guilty of that offence 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 co-operative

society, firm or other association of

individuals; and

(b) “director” means a whole time

director in the company and in relation to

a firm means a partner in the firm.

35. Offences to be non-cognizable,

bailable and compoundable.—

Notwithstanding

anything

contained in the Code of Criminal

Procedure, 1973, every offence

under this Act shall be non-

cognizable,

bailable

and

compoundable.

36. Cognizance of offences.— No court shall

take cognizance of an offence under this Act

except on a complaint made by—

(a) the Central Government;

(b) the National Authority or an officer

authorised in this behalf; or

authorised in this behalf.

37. Amount payable by owner, master or

agent.— When any owner or master or agent

is convicted of an offence under sub-section

(2) of section 33, the amount payable on

account of expenses by such owner or

master or agent shall be determined and

recovered in such manner as may be

prescribed.

38. Place of trial and jurisdiction of court.—

Any person committing any offence under

this Act or any rules made thereunder, may

be tried for such offence in any place in

which he may be found, or in any Court

which the Central Government may, by

notification, direct in this behalf, or in any

Court in which he might be tried under any

other law for the time being in force.

39. Compensation.— (1) Where a ship is

unduly detained or delayed as a result of an

inspection or investigation without any

reasonable cause, then, such ship shall be

entitled to compensation for any loss or

damage suffered thereby.

(2) The rate of compensation referred to in

sub-section (1), the method of calculation and

the manner of payment of such compensation

shall be such as may be prescribed.

(3) For the purpose of adjudging

compensation under this section, the Central

Government may, by notification, nominate

an officer of the Central Government, not

below the rank of Joint Secretary to the

Government of India, to be an adjudicating

officer for holding an inquiry in the

prescribed manner, after giving any

person concerned an opportunity of being

heard.

2 of 1974.

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CHAPTER X

Miscellaneous

40. Delegation of powers.— (1) The Central

Government may, by general or special order,

subject to such conditions and restrictions

as may be provided in such order, direct that

any power, authority or jurisdiction

exercisable by it under or in relation to a

provision of this Act (except the power to

make rules), be exercisable also by the

National Authority or Competent Authority

or such other officer not below the rank of

Joint Secretary to the Government of India.

(2) The National Authority or the

Competent Authority may, with the previous

approval of the Central Government, by

general or special order, subject to such

conditions and restrictions as may be

provided in such order, direct that any power,

authority or jurisdiction exercisable by it

under or in relation to a provision of this Act

(except the power to make regulations), be

exercisable also by such officer or other

authority as may be specified in such order.

41. Act not in derogation of any other

law.— The provisions of this Act shall be in

addition to and not in derogation of any other

law for the time being in force.

42. Power to make rules.— (1) The Central

Government may, by notification, make rules

to carry out the provisions of this Act.

(2) In particular and without prejudice to

the generality of the foregoing power, such

rules may provide for all or any of the

following matters, namely:—

(a) the duties of Competent Authority

within the geographical area or areas of

expertise under section 4;

(b) the restrictions and conditions

imposed on installation or use of any

hazardous material, to be complied by

every ship under sub-section (2) of section

the survey of ships under clauses (a), (b)

and (d) of sub-section (1) of section 7;

(d) the other conditions to be required

for the survey of ships under clause (e) of

sub-section (1) of section 7;

(e) the terms and conditions, validity, the

format and manner for granting the

certificate on inventory of hazardous

materials under sub-section (2) of section

8 and section 9;

(f) the changes in ship structures and

equipment under clause (ii) of section 10;

(g) the form, fees and the manner of

making the application for authorisation of

ship recycling facility under sub-section (2)

of section 12; .

(h) the manner, period and fees for

renewal of certificate of authorisation

under sub-section (9) of section 12;

(i) the manner of providing individual or

comprehensive insurance coverage for the

regular and temporary workers under sub-

section (2) of section 15;

(j) the manner of advance intimation

about the arrival of ship under sub-section

(1) of section 19;

(k) the requisition of the services of

representatives of agencies for grant of

permission under sub-section (1) of section

20;

(l) the liability of the Ship Recycler for

environmental damages under sub-section

(3) of section 22;

(m) the manner of filing an appeal

against the orders of the Competent

Authority and the manner of disposal of

such appeal under section 25;

(n) the manner of filing an appeal

against the orders of National Authority

and the manner of disposal of such appeal

under section 26;

(o) the manner in which the ships are

required to act for non-application of the

provisions of the Act under the proviso to

section 30;

(p) the manner of determination and

recovery of amount payable under section

37;

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(q) the rate of compensation, method of

calculation

and

the

manner

compensation entitled by a ship under

sub-section (2) of section 39;

(r) the manner of holding an inquiry for

the purpose of payment of compensation

under sub-section (3) of section 39; and

(s) any other matter which is to be, or

may be, prescribed or in respect of which

provision is to be made by rules.

43. Power to make regulations.— (1) The

National Authority with the previous approval

of the Central Government, by notification in

the Official Gazette, may make regulations

not inconsistent with the provisions of this

Act and the rules made thereunder.

(2) In particular and without prejudice to

the generality of the foregoing power, such

regulations may provide for all or any of the

following matters, namely:—

(a) the requirements relating to ship

recycling facility under clause (o) of sub-

section (1) of section 2;

(b) the manner of preparation of a ship

recycling facility management plan under

sub-section (1) of section 12;

to be maintained by the Ship Recycler

under sub-section (5) of section 12;

(d) the form in which a certificate of

authorisation shall be issued under sub-

section (6) of section 12;

(e) the period of validity of certificate of

authorisation for ship recycling facility

under sub-section (8) of section 12;

(f) the manner of enquiry or inspection

by the Competent Authority under sub-

section (2) of section 13;

(g) the manner of making an application

to the National Authority for a ready for

recycling certificate under sub-section (1)

of section 16;

(h) the manner and format for issuing of

the ready for recycling certificate under

sub-section (2) of section 16;

(i) the manner of obtaining the written

permission of the Competent Authority

under sub-section (1) of section 18;

(j) the authority to authorise the ship

recycling facility under sub-section (2) of

section 18;

(k) submission of documents by ship

owner under clause (ii) of sub-section (1)

of section 19;

(l) the conditions for safe-for-entry or

safe-for-hotwork or both under sub-section

(2) of section 19;

(m) the form and manner of issue of

statement of acceptance by the Ship

Recycler under sub-section (4) of section

20;

(n) the requirements relating to removal

and management of hazardous materials

and basic infrastructure to be complied

with by the Ship Recycler under clause

(b) of section 21;

(o) the manner of serving of notice by

the Competent Authority to a Ship Recycler

in case of oil spill under sub-section (2) of

section 22;

(p) the manner of submission of

statement of completion by the Ship

Recycler under section 23; and

(q) any other matter which is required

to be, or may be, specified by regulations.

44. Laying of rules and regulations.— Every

rule made by the Central Government and

every regulation made by the National

Authority under this Act shall be laid, as soon

as may be after it is made, before each House

of Parliament while it is in session for a total

period of thirty days which may be

comprised in one session or in two or more

successive sessions, and if, before the expiry

of the session immediately following the

session or the successive sessions aforesaid,

both

Houses

agree

making

any

modification in the rule or regulation or both

Houses agree that the rule or regulation

should not be made, the rule or regulation

shall thereafter have effect only in such

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modified form or be of no effect, as the case

may be; however, any such modification or

annulment shall be without prejudice to the

validity of anything previously done under

that rule or regulation.

45. Protection of action taken in good

faith.— No suit, prosecution or other legal

proceeding shall lie against the Central

Government or the State Government or the

National Authority or the Competent

Authority or any officer authorised by the

Central Government or the State Government

or the National Authority or the Competent

Authority for anything done in good faith or

intended to be done in pursuance of the

provisions of this Act.

46. Removal of difficulties.— (1) If any

difficulty arises in giving effect to the

provisions of this Act, the Central Government

may, by order published in the Official

Gazette, make such provisions, not

inconsistent with the provisions of this Act,

as may appear to it to be necessary for

removing the difficulty:

Provided that no such order shall be made

under this section after the expiry of a period

three

years

from

the

date

commencement of this Act.

(2) Every order made under this section

shall be laid, as soon as may be after it is

made, before each House of Parliament.

_______

Notification

10/4/2019-LA

The Taxation Laws (Amendment) Act, 2019

(Central Act No. 46 of 2019), which has been

passed by Parliament and assented to by the

President on 11-12-2019 and published in the

Gazette of India, Extraordinary, Part II,

Section 1 dated 12-12-2019, is hereby

published for the general information of the

public.

D. S. Raut Dessai, Joint Secretary (Law).

Porvorim, 21st May, 2020.

THE TAXATION LAWS (AMENDMENT)

ACT, 2019

ACT

further to amend the Income-tax Act, 1961

and to amend the Finance (No. 2) Act, 2019.

Be it enacted by Parliament in the

Seventieth Year of the Republic of India as

follows:-

CHAPTER I

Preliminary

1. Short title and commencement.— (1) This

Act may be called the Taxation Laws

(Amendment) Act, 2019.

(2) Save as otherwise provided, it shall be

deemed to have come into force on the 20th

day of September, 2019.

CHAPTER II

Amendments in the Income-Tax Act, 1961

2. Amendment of Section 92BA.—

In section 92BA of the Income-tax

Act, 1961 (hereafter in this Chapter

referred to as the Income-tax Act),

after clause (v), the following clause

shall be inserted, with effect from

the 1st day of April, 2020, namely:—

43 of 1961.

“(va) any business transacted between

the persons referred to in sub-section (6)

of section 115BAB;”.

3. Amendment of section 115BA.— In

section 115BA of the Income-tax Act, with

effect from the 1st day of April, 2020,—

(a) for the marginal heading “Tax on

income of certain domestic companies”,

the marginal heading “Tax on income of

certain

manufacturing

domestic

companies” shall be substituted;

(b) in sub-section (1), for the words

“subject to the other provisions of this

Chapter”, the words, figures and letters

“subject to the other provisions of this

Chapter, other than those mentioned under

43 of 1961.

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section 115BAA and section 115BAB” shall

be substituted;

the following proviso shall be inserted,

namely:—

“Provided further that where the

person exercises option under section

115BAA, the option under this section

may be withdrawn.”.

4. Insertion of new sections 115BAA and

115BAB.— After section 115BA of the Income-

tax Act, the following sections shall be

inserted with effect from the 1st day of April,

2020, namely:—

‘115BAA. Tax on income of certain domestic

companies.— (1) Notwithstanding anything

contained in this Act but subject to the

provisions of this Chapter, other than those

mentioned under section 115BA and section

115BAB, the income-tax payable in respect

of the total income of a person, being a

domestic company, for any previous year

relevant to the assessment year beginning

on or after the 1st day of April, 2020, shall, at

the option of such person, be computed at

the rate of twenty-two per cent., if the

conditions contained in sub-section (2) are

satisfied:

Provided that where the person fails to

satisfy the conditions contained in sub-

section (2) in any previous year, the option

shall become invalid in respect of the

assessment year relevant to that previous

year and subsequent assessment years and

other provisions of the Act shall apply, as if

the option had not been exercised for the

assessment year relevant to that previous

year and subsequent assessment years.

(2) For the purposes of sub-section (1), the

total income of the company shall be

computed,—

(i) without any deduction under the

provisions of section 10AA or clause (iia)

of sub-section (1) of section 32 or section

32AD or section 33AB or section 33ABA or

sub-clause (ii) or sub-clause (iia) or sub-

clause (iii) of sub-section (1) or sub-section

(2AA) or sub-section (2AB) of section 35 or

section 35AD or section 35CCC or section

35CCD or under any provisions of Chapter

VI-A under the heading “C.—Deductions

in respect of certain incomes” other than

the provisions of section 80JJAA;

(ii) without set off of any loss carried

forward or depreciation from any earlier

assessment year, if such loss or

depreciation is attributable to any of the

deductions referred to in clause (i);

(iii) without set off of any loss or

allowance for unabsorbed depreciation

deemed so under section 72A, if such loss

or depreciation is attributable to any of the

deductions referred to in clause (i); and

(iv) by claiming the depreciation, if any,

under any provision of section 32, except

clause (iia) of sub-section (1) of the said

section, determined in such manner as

may be prescribed.

(3) The loss and depreciation referred to in

clause (ii) and clause (iii) of sub-section (2)

shall be deemed to have been given full effect

to and no further deduction for such loss or

depreciation shall be allowed for any

subsequent year:

Provided that where there is a depreciation

allowance in respect of a block of asset which

has not been given full effect to prior to the

assessment year beginning on the 1st day of

April, 2020, corresponding adjustment shall

be made to the written down value of such

block of assets as on the 1st day of April,

2019 in the prescribed manner, if the option

under sub-section (5) is exercised for a

previous year relevant to the assessment year

beginning on the 1st day of April, 2020.

(4) In case of a person, having a Unit in

the International Financial Services Centre,

as referred to in sub-section (1A) of section

80LA, which has exercised option under sub-

section (5), the conditions contained in sub-

section (2) shall be modified to the extent

that the deduction under section 80LA shall

be available to such Unit subject to fulfilment

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of the conditions contained in the said

section.

Explanation.— For the purposes

of this sub-section, the term “Unit”

shall have the same meaning as

assigned to it in clause (zc) of

section 2 of the Special Economic

Zones Act, 2005.

(5) Nothing contained in this section shall

apply unless the option is exercised by the

person in the prescribed manner on or before

the due date specified under sub-section (1)

of section 139 for furnishing the returns of

income for any previous year relevant to the

assessment year commencing on or after the

1st day of April, 2020 and such option once

exercised shall apply to subsequent

assessment years:

Provided that in case of a person, where

the option exercised by it under section

115BAB has been rendered invalid due to

violation of conditions contained in sub-clause

(ii) or sub-clause (iii) of clause (a), or clause

(b) of sub-section (2) of said section, such

person may exercise option under this

section:

Provided further that once the option has

been exercised for any previous year, it

cannot be subsequently withdrawn for the

same or any other previous year.

115BAB.

Tax

income

new

manufacturing domestic companies.— (1)

Notwithstanding anything contained in this

Act but subject to the provisions of this

Chapter, other than those mentioned under

section 115BA and section 115BAA, the

income-tax payable in respect of the total

income of a person, being a domestic

company, for any previous year relevant to

the assessment year beginning on or after

the 1st day of April, 2020, shall, at the option

of such person, be computed at the rate of

fifteen per cent., if the conditions contained

in sub-section (2) are satisfied:

Provided that where the total income of

the person, includes any income, which has

neither been derived from nor is incidental

to manufacturing or production of an article

or thing and in respect of which no specific

rate of tax has been provided separately

under this Chapter, such income shall be

taxed at the rate of twenty-two per cent. and

no deduction or allowance in respect of any

expenditure or allowance shall be allowed in

computing such income:

Provided further that the income-tax

payable in respect of the income of the person

deemed so under second proviso to sub-

section (6) shall be computed at the rate of

thirty per cent.:

Provided also that the income-tax payable

in respect of income being short term capital

gains derived from transfer of a capital asset

on which no depreciation is allowable under

the Act shall be computed at the rate of

twenty-two per cent.:

Provided also that where the person fails

to satisfy the conditions contained in sub-

section (2) in any previous year, the option

shall become invalid in respect of the

assessment year relevant to that previous

year and subsequent assessment years and

other provisions of the Act shall apply to the

person as if the option had not been exercised

for the assessment year relevant to that

previous year and subsequent assessment

years.

(2) For the purposes of sub-section (1), the

following conditions shall apply, namely:—

(a) the company has been set-up and

registered on or after the 1st day of

October, 2019, and has commenced

manufacturing or production of an article

or thing on or before the 31st day of March,

2023 and,—

(i) the business is not formed by

splitting up, or the reconstruction, of a

business already in existence:

Provided that this condition shall not

apply in respect of a company, business

of which is formed as a result of the re-

establishment, reconstruction or revival

by the person of the business of any such

28 of 2005.

OFFICIAL GAZETTE — GOVT. OF GOA

SERIES I No. 2

8TH APRIL, 2021

undertaking as is referred to in section-

33B, in the circumstances and within the

period specified in the said section;

(ii) does not use any machinery or

plant previously used for any purpose.

Explanation 1.— For the purposes of

sub-clause (ii), any machinery or plant

which was used outside India by any

other person shall not be regarded as

machinery or plant previously used for

any purpose, if the following conditions

are fulfilled, namely:—

(A) such machinery or plant was

not, at any time previous to the date

of the installation used in India;

(B) such machinery or plant is

imported into India from any country

outside India; and

depreciation in respect of such

machinery or plant has been allowed

or is allowable under the provisions of

this Act in computing the total income

of any person for any period prior to

the date of the installation of machinery

or plant by the person.

Explanation 2.— Where in the case of

a person, any machinery or plant or any

part thereof previously used for any

purpose is put to use by the company

and the total value of such machinery or

plant or part thereof does not exceed

twenty per cent. of the total value of the

machinery or plant used by the company,

then, for the purposes of sub-clause (ii)

of this clause, the condition specified

therein shall be deemed to have been

complied with;

(iii) does not use any building

previously used as a hotel or a

convention centre, as the case may be,

in respect of which deduction under

section 80-ID has been claimed and

allowed.

Explanation.— For the purposes of this

sub-clause, the expressions “hotel” and

“convention centre” shall have the

meanings respectively assigned to them

in clause (a) and clause (b) of sub-

section (6) of section 80-ID;

(b) the company is not engaged in any

business other than the business of

manufacture or production of any article

or thing and research in relation to, or

distribution of, such article or thing

manufactured or produced by it.

Explanation.—For the removal of doubts,

it is hereby clarified that the business of

manufacture or production of any article

or thing referred to in clause (b) shall not

include business of,—

(i) development of computer software

in any form or in any media;

(ii) mining;

(iii) conversion of marble blocks or