SUGAR (REGULATION OF PRODUCTION) ACT 1961
THE SUGAR(REGULATION OF PRODUCTION) ACT, 1961
ACT No. 55 OF 1961
17th December, 1961
An Act to provide for the regulation ofproduction of sugar in the interests of the general public and for the levy andcollection of a special excise duty on sugar produced by a factory in excess ofthe quota fixed for the purpose
BE it enacted by Parliament in the TwelfthYear of the Republicof India as follows: –
1.Short title, extent and commencement: (1) This Act may be called theSugar (Regulation of Production) Act, 1961.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) It shall be deemed to have come intoforce on the 1st day of November, 1961.
2.Definitions: In this Act, unless the context otherwise requires, –
(a) "Central Excises Act" meansthe Central Excises and Salt Act, 1944 (1 of 1944);
(b) "factory" means and promises(including the precincts thereof), wherein or ion any part of which sugar isbeing manufactured by the vacuum pan process, or, wherein or in any part ofwhich, any manufacturing process connected with the production of sugar by thevacuum pan process is being carried on or is ordinarily carried on;
(c) "owner"shall have the meaning assigned to it in the Sugar Export Promotion Act, 1958(30 of 1958);
(d) "permissiblequota" means the quota referred to in section 3.
(e) "prescribed"means prescribed by rules made under this Act.
(f) "sugar"means any form of sugar, whether wholly or partially manufactured, but does notinclude –
(i) Khandsarisugar, that I to say, sugar in the manufacture of which neither a vacuum pannor a vacuum evaporator is employed; or
(ii) palmyrasugar, that is to say, sugar manufactured from jaggery obtained by boiling thejuice of the palmyra palm;
(g) "year"mans the year beginning on the first day of November and ending on thethirty-first day of October in the following year.
3.Fixation of permissible quota: (1) TheCentral Government may, by order in writing, fix from time to time, inaccordance with the prescribed formula, the quantity of sugar which may beproduced in a factory during any year.
(2) In prescribing the formula referred toin sub-section (1), the Central Government shall have regard to –
(a) the quantityof sugar available at the commencement of the year in the territories to whichthis Act extends,
(b) the quantityof sugar which, in its opinion, wound be reasonably required for consumptionduring the year in the territories to which this Act extends,
(c) the quantityof sugar which, in its opinion, is likely to be required for export during theyear,
(d) the workingcapacity of the factory during the relevant period,
(e) the number ofdays on which the factory actually worked during the relevant period,
(f) the quantityof sugar produced expressed as percentage o the sugarcane crushed during therelevant period, and
(g) such othermatters as may be prescribed.
(3) The order referred to in sub-section(1) shall be communicated to the owner of each factory and the quantity fixedunder the order for any year shall be deemed to be the permissible quota inrespect of the factory for that year.
4.Levy and collection of special excise duty: (1) Where the quqn5ioty ofsugar produced in a factory during any year exceeds the permissible quota fixedfor it for that year, there shall be levied and collected on the quantity ofsugar which is produced in excess of the permissible quota a special duty ofexcise at the rate at which the duty of excise is chargeable on sugar under theCentral Excises Act for the time being in force.
(2) The special duty of excise referred toin sub-section (1) shall be in addition to the duty of excise chargeable onsugar under the Central Excises Act or any other law for the time being ionforce and shall be paid by the owner to such authority as may be specified inthe notice demanding the payment of duty and within such period not exceedingninety days as may be specified in such notice.
(3) If any such owner does not pay thewhole or any part of the duty payable by him within the period refereed to insub-section (2), he shall be liable to pay in respect of every period of thirtydays or part thereof during which the default continues a penalty which mayextend to ten percent of the duty outstanding from time to time, the penaltybeing adjudged in the same manner as the penalty to which a person is liableunder the rules made under the Central Excises Act, is adjudged.
(4) The provisions of the Central ExcisesAct and the rules made thereunder, including thoserelating to refunds and exemptions from duty shall, so far as may be, apply ionrelation to the levy and collection of the special duty of excise or any othersum referred to in this section as they apply in relation to the levy andcollection of duty on sugar or other sums of money payable to the CentralGovernment under that Act or the rules made thereunder:
Provided that no refund of the specialexcise duty or other sum shall be granted, if the whole or any part of thesugar in respect of which such duty or sum is payable under his section, isexported out of India.
5.Delegation of powers: The CentralGovernment may, by notification in the Official Gazette, direct that any powerconferred on it by this Act shall, subject to such conditions, if any, as maybe specified in the notification, be exercisable also by such officer orauthority subordinate to the Central Government as may be specified in thenotification.
6.Protection of action taken under Act: No suit, prosecution or other legalproceeding shall lie against the Central Government or any of its officers foror in respect of anything which is in good faith done or intended to be done inpursuance of this Act or any rule or order made thereunder.
7.Power to make rules: The Central Government, may, by notification in theOfficial Gazette, make rules for carrying out the purposes of this Act.
(2) In particular, and without prejudice tothe generality of the foregoing power, such rules may provide for all or any ofthe following matters, namely: –
(a) the formula for fixing the quota undersection 3, and the relevant period referred to in clauses (d), (e) and (f), andthe matters referred to in clause (g) of sub-section (2) of that section;
(b) the submissionby owners to such authority as may be specified in this behalf, of returns orreports or other information relating to the manufacture and stocks of sugar;
(c) the manner ionwhich the accounts of the factory in respect f the manufacture of sugar may bemaintained;
(d) the inspectionof records and registers of factories;
(e) any othermatter which is to be or may be prescribed under this Act.
(3) In making a rule under this section,the Central Government may direct that a breach thereof shall be punishablewith fine which may extend to five thousand rupees.
(4) Every rule made under this Act shall belaid, as soon as may be after it is made, before each House of Parliament whileit is in session for a total period of thirty days which may be comprised inone session or in two successive sessions, and if, before the expiry of thesession in which it is so laid or the session immediately following, bothHouses agree in making any modification in the rule or both Houses agree thatthe rule should not be made, the rule shall thereafter have effect only ion suchmodified form or be of no effect, as the case may be; so however that any suchmodification or annulment shall be without prejudice to the validity ofanything previously done under that rule.
8.Repeal and saving: (1) The Sugar (Regulation of Production) Ordinance,1961, (3 of 1961) hereby repealed.
(2) Notwithstanding such repeal, anythingdone or any action taken in exercise of any of the powers conferred by or underthe said Ordinance shall be deemed to have been done or taken in exercise ofthe powers conferred by or under this Act as if this Act were in force on theday on which such thing was done or action was taken.