LIMESTONE AND DOLOMITE MINES LABOUR WELFARE FUND ACT 1972

THE LIMESTONE AND DOLOMITE MINES LABOUR WELFARE FUND ACT, 1972

ACT No. 62 OF 1972

2ndDecember, 1972

An Act to provide for the levy and collection of a cess onlimestone and dolomite for the financing of activities to promote the welfareof persons employed in the limestone and dolomite mines

BE it enacted by Parliament inthe Twenty third Year of the Republicof India as follows: –

1.Short title, extent andcommencement: (1) ThisAct may be called the Limestone and Dolomite Mines Labour Welfare Fund Act,1972.

(2) It extends to the whole of India.

(3) It shall come into force onsuch date ¹ as the Central Government may, by notification inthe Official Gazette, appoint and different dates may be appointed fordifferent States.

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1. – 1–12–1973 byNotification No.G.S.R.1272, dated the 14th November, 1973, see Gazette ofIndia, Part II, Sec.3 (i), p.2243.

2.Definitions: In this Act, unless the contextotherwise requires, –

(a) "agent" and"owner" have the meanings respectively assigned to them in clauses(c) and (l) of section 2 of the Mines Act, 1952 (35 of 1952);

(b) "factory" and"occupier" have the meaning respectively assigned to them in clauses(m) and (n) of section 2 of the Factories Act, 1948 (66 of 1948);

¹ [(bb) "limestone"includes minerals like lime–shell, calcareous sand and sea sandessentially composed of lime–shell, marl, kankar or lime–kankar;]

(c) "manager" meansthe manager referred to in section 17 of the Mines Act, 1952 (35 of 1952);

(d) a person is said to beemployed in a limestone or dolomite mine, –

(1) if he is employed withinthe premises or in the vicinity of such mine by the owner, agent or manager ofsuch mine or by a contractor or any other agency exclusively in any one or moreof the following, namely : –

(i) any limestone or dolomitemining operation;

 

(ii) the operation, servicing,maintenance or repair of any machinery or any part thereof used in or aboutsuch mine;

 

(iii) the loading, unloading ordespatch of limestone or dolomite or any other material connected with themining of limestone or dolomite;

 

(iv) any work in any office,canteen or creche situate within the precincts of such mine;

 

(v) any welfare, health,sanitary or conservancy services or any watch and ward duties at any place situatewithin such premises or vicinity, not being a place occupied by any residentialbuilding; or

(2) if, in any such area as maybe notified by the Central Government in the Official Gazette in this behalf,he is employed by the owner, agent or manager of such mine or by a contractoror any other agency exclusively in the loading unloading or despatch oflimestone or dolomite or any other material connected with the mining oflimestone or dolomite;

(e) "prescribed"means prescribed by rules made under this Act.

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1. Clause (bb) inserted by theLimestone and Dolomite Mines Labour Welfare Fund (Amendment) Act, 1982 (70 of1982) Section 2.

3.Levy and collection of cesson limestone and dolomite: With effect from such date as the Central Government may bynotification in the Official Gazette, appoint, there shall be levied andcollected as a cess for the purposes of this Act on so much of limestone anddolomite produced in any mine–

(i) as is sold or otherwisedisposed of to the occupier of any factory; or

(ii) as is used by the owner ofsuch mine for any purpose in connection with the manufacture of cement, ¹ [iron steel, ferro–alloys, alloy steels, chemicals, sugar,paper, fertilizers, refractories, iron ore pelletisation or such other articleor goods or class of articles or goods, as the Central Government may, fromtime to time, specify by notification in the Official Gazette],

a duty of excise, at such ratenot exceeding one rupee per metric tonne of limestone or dolomite, as the casemaybe, as the Central Government may, from time to time, fix by notification inthe Official Gazette.

Explanation: Where the owner ofany limestone or dolomite mine is also the occupier of any factory, then, forthe purposes of clause (ii), all limestone or dolomite, as the case may be,produced in the mine and not sold or otherwise disposed of to the occupier ofany other factory shall be deemed, unless the contrary is proved, to have beenused by such owner for any purpose in connection with the manufacture of ² [any article or goods referred to in or specified under clause(ii)].

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1. Always deemed to have beensubstituted for the words "iron or steel" by the Limestone andDolomite Mines Labour Welfare Fund (Amendment) Act, 1982 (70 of 1982) Section 3(a).

2. Always deemed to have been substituted forthe words "cement, iron or steel" by the Limestone and Dolomite MinesLabour Welfare Fund (Amendment) Act, 1982 (70 of 1982) Section 3 (b).

4.Payment of duty of excise: (1) Every duty of exciseleviable under this Act on limestone or dolomite shall be payable –

(a) to the occupier of thefactory, by the person by whom such limestone or dolomite is sold or otherwisedisposed of to such occupier;

(b) to the Central Government,by the owner of the limestone or dolomite mine where the limestone or dolomiteis used by such owner for any purpose in connection with the manufacture of ¹ [any article or goods referred to in or specified under clause(ii) of section 3],

within such period as may beprescribed.

(2) All amounts referred to inclause (a) of sub–section (1) shall be collected by the occupier of thefactory in such manner, and paid by him to the Central Government within suchperiod, as may be prescribed.

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1. Always deemed to have beensubstituted for the words "cement, iron or steel" by the Limestoneand Dolomite Mines Labour Welfare Fund (Amendment) Act, 1982 (70 of 1982)Section 4.

5.Application of proceeds ofduty of excise: (1) Anamount equivalent to the proceeds of the duty of excise levied under this Act,reduced by the cost of collection as determined by the Central Government,together with any income from investment of the said amount and any othermoneys received by the Central Government for the purposes of this Act, shall,after due appropriation made by Parliament by law, be paid to the credit of afund to be called the Limestone and Dolomite Labour Welfare Fund (hereinafterreferred to as the Fund).

(2) The Fund shall be appliedby the Central Government to meet the expenditure incurred in connection withmeasures which, in the opinion of that Government, are necessary or expedientto promote the welfare of persons employed in the limestone or dolomite mines;and in particular–

(a) to defray the cost ofmeasures for the benefit of persons employed in the limestone or dolomite minesdirected towards–

(i) the improvement of publichealth and sanitation, the prevention of disease and the provision ofimprovement of medical facilities;

(ii) the provision andimprovement of water supplies and facilities for washing;

(iii) the provision andimprovement of educational facilities; ¹ [*]

(iv) the improvement ofstandards of living including housing and nutrition, the amelioration of socialconditions and the provision of recreational facilities;

¹ [(v) the provision of familywelfare, including family planning education and services;]

(b) to grant loan or subsidy toa State Government, a local authority or the owner of a limestone or dolomite mine,in aid of any scheme approved by the Central Government for any purposeconnected with the welfare of persons employed in limestone or dolomite mines;

(c) to pay annually grants–in–aidto such of the owners of limestone or dolomite mines who provide to thesatisfaction of the Central Government welfare facilities of the prescribedstandard for the benefit of person employed in their mines, so, however, thatthe amount payable as grants–in–aid to any such owner shall notexceed–

(i) the amount spent by him inthe provision of welfare facilities as determined by the Central Government orany person specified by it in this behalf, or

(ii) such amount as may beprescribed,

whichever is less:

Provided that no grant–in–aidshall be payable in respect of any welfare facilities provided by the owner ofa limestone or dolomite mine where the amount spent thereon determined asaforesaid is less than the amount prescribed in this behalf;

(d) to meet the allowances, ifany, of the members of the Advisory Committees and the Central AdvisoryCommittee constituted under sections 6 and 7 respectively and the salaries andallowances, if any, of persons appointed under section 8;

(e) any other expenditure whichthe Central Government may direct to be defrayed from the Fund.

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1. The word "and"omitted and sub-clause (v) inserted by the Labour Welfare Fund Laws (Amendment)Act, 1987 (15 of 1987) Chapter (III) and Section 3.

6.Advisory Committees: (1) The Central Government mayconstitute as many Advisory Committees as it thinks fit, but not exceeding onefor each of the principal limestone or dolomite producing States to advise theCentral Government on such matters arising out of the administration of thisAct as may be referred to it by that Government, including matters relating tothe application of the Fund.

(2) Each Advisory Committeeshall consist of such number of persons as may be appointed to it by theCentral Government and the members shall be chosen in such manner as may beprescribed :

Provided that each AdvisoryCommittee shall include an equal number of members representing the Government,the owners of limestone and dolomite mines and the persons employed in thelimestone and dolomite mines and that at least one member of each suchCommittee shall be a woman.

(3) The Chairman of eachAdvisory Committee shall be appointed by the Central Government.

(4) The Central Governmentshall publish in the Official Gazette the names of all members of everyAdvisory Committee.

7.Central Advisory Committee: (1) The Central Government mayconstitute a Central Advisory Committee to co–ordinate the work of theAdvisory Committees constituted under section 6 and to advise the CentralGovernment on any matter arising out of the administration of this Act.

(2) The Central AdvisoryCommittee shall consist of such number of persons as may be appointed to it bythe Central Government and the members shall be chosen in such manner as may beprescribed.

Provided that the CentralAdvisory Committee shall include an equal number of members representing theGovernment, the owners of limestone and dolomite mines and the persons employedin the limestone and dolomite mines.

(3) The Chairman of the CentralAdvisory Committee shall be appointed by the Central Government.

(4) The Central Governmentshall publish in the Official Gazette the names of all members of the CentralAdvisory Committee.

¹ [7A.Power to co-opt etc.: (1) An Advisory Committee or theCentral Advisory Committee may at any time and for such period as it thinks fitco–opt any person or persons to the Committee.

(2) A person co–optedunder sub –section (1) to a Committee shall exercise and discharge allthe powers and functions of a member thereof, but shall not be entitled tovote.]

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1. Section 7A inserted by theLimestone and Dolomite Mines Labour Welfare Fund (Amendment) Act, 1982 (70 of1982) Section 5.

8.Appointment of Inspectors,etc., and their powers: (1) The Central Government may appoint as many ¹ [Welfare Commissioners, Welfare Administrators, Inspectors] andsuch other officers and staff as it thinks necessary for the purposes of thisAct.

(2) Every person so appointedshall be deemed to be a public servant within the meaning of section 21 of theIndia Penal Code.

(3) **[Any WelfareCommissioner, Welfare administrator or Inspector], –

(a) with such assistance, ifany, as he may think fit, enter at any reasonable time, any place which heconsiders it necessary to enter for carrying out the purposes of this Act;

(b) do within such placeanything necessary for the proper discharge of his duties; and

(c) exercise such other powersas maybe prescribed.

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1. Substituted for the words"Inspectors, Welfare Administrators" by the Limestone and DolomiteMines Labour Welfare Fund (Amendment) Act, 1982 (70 of 1982) Section 6 (a).

2. Substituted for the words"Any Inspector of Welfare Administrator may" by the Limestone andDolomite Mines Labour Welfare Fund (Amendment) Act, 1982 (70 of 1982) Section 6(b).

9.Power of Central governmentto exempt: Notwithstandinganything contained in this Act, if the Central Government is satisfied thatthere is in force in any State or part thereof a law making adequate provisionfor the financing of activities to promote the welfare of persons employed inthe limestone or dolomite mines, it may, by notification in the OfficialGazette, direct that all or any of the provisions of this Act shall not applyor shall apply to such State or part thereof subject to such exceptions andmodifications as may be specified in the notification.

10.Annual report of activitiesfinanced under the Act: The Central Government shall, as soon as may be, after the end ofeach financial year cause to be published in the Official Gazette a reportgiving an account of its activities financed under this Act during the previousfinancial year, together with a statement of accounts.

11.Interest payable byoccupiers of factories and owners of mines: If any occupier of a factory or any owner of alimestone or dolomite mines fails to pay any amount payable him to the CentralGovernment under section 4 within the period prescribed therefor under thatsection, such occupier or owner, as the case may be, shall be liable to paysimple interest at twelve percent per annum on the amount to be paid, from thedate on which such payment is due till such amount is actually paid.

12.Penalty for non-payment ofduty of excise within the prescribed period: If any duty of excise payable by the occupier of thefactory or the owner of the limestone or dolomite mine to the CentralGovernment under section 4 is not paid to that Government within the periodprescribed thereunder, it shall be deemed to be in arrears and the authorityprescribed in this behalf may, after such inquiry as it deems fit, impose onthe occupier of the factory or, as the case may be, on the owner of thelimestone or dolomite mine a penalty not exceeding the amount of duty excise inarrears.

Provided that before imposingany such penalty such occupier or such owner, as the case may be, shall begiven a reasonable opportunity of being heard and, if after such hearing thesaid authority is satisfied that the default was for any good and sufficientreason, no penalty shall be imposed under this section.

13.Recovery of amounts dueunder the Act: Anyamount due under this Act (including the interest or penalty, if any, payableunder section 11 or section 12, as the case may be) from any occupier of afactory or any owner of a limestone or dolomite mine may be recovered by theCentral Government in the same manner as an arrear of land revenue.

14.Penalty for evasion of dutyof excise: (1)Whoever wilfully or intentionally evades or attempts to evade the payment ofduty of excise payable by him to the Central Government under this Act, shall,on conviction, be punishable with imprisonment which may extend to six months,or with fine which may extend to one thousand rupees, or with both.

(2) No court shall takecognizance of an offence punishable under this section, save on a complaintmade by or under the authority of the Central Government.

15.Offences by companies: (1) Where an offence under thisAct has been committed by a company, every person who at the time the offencewas committed was in charge of, and was reasonable to, the company for theconduct of the business of the company as well as the company, shall be deemedto be guilty of the offence and shall be liable to be proceeded against andpunished accordingly:

Provided that nothing containedin this sub–section shall render any such person liable to anypunishment, if he provides that the offence was committed without his knowledgeor that he had exercised all due diligence to prevent the commission of suchoffence.

(2) Notwithstanding anythingcontained in sub–section (1), where any offence under this Act has beencommitted by a company and it is proved that the offence has been committedwith the consent or connivance of, or is attributable to any neglect on thepart of, any director, manager, secretary or other officer of the company, suchdirector, manger, secretary or other officer shall be deemed to be guilty ofthat offence and shall be liable to be proceeded against and punishedaccordingly.

Explanation: For thepurposes of this section, –

(a) "company" meansany body corporate and includes a firm or other association of individuals; and

(b) "director", inrelation to a firm, means a partner in the firm.

16.Power to make rules: (1) The Central Government may,by notification in the Official Gazette and subject to the condition ofprevious publication, make rules for carrying out the purposes of this Act.

(2) In particular and withoutprejudice to the generality of the foregoing power, such rules may provide for–

(a) the assessment andcollection of the duty of excise levied under this Act;

(b) the period within which theperson selling or otherwise disposing of the limestone or dolomite to theoccupier of the factory shall pay the duty of excise to such occupier;

(c) the period within which theowner of the limestone or dolomite mine shall pay the duty of excise to theCentral Government;

(d) the manner in which theoccupier of the factory shall collect the duty of excise;

(e) the period within which theoccupier of the factory shall pay to the Central Government the duty of excisecollected by him;

(f) the determination of thecost of collection of the duty of excise levied under this Act;

(g) the manner in which theFund may be applied for the measures specified in section 5;

(h) the conditions governingthe grant of loan or subsidy under clause (b) of sub–section (2) ofsection 5;

(i) the standard of welfarefacilities to be provided by owners of limestone or dolomite mines for thepurposes of clause (c) of sub–section (2) of section 5;

(j) the determination of theamounts referred to in sub–clause (ii) of clause (c) of sub–section(2) of section 5 and in the proviso to that clause;

(k) the composition of theAdvisory Committees and the Central Advisory Committee constituted undersections 6 and 7 respectively, the manner in which the members thereof shall bechosen, the term of office of such members, the allowances, if any, payable tothem, and the manner in which the said Advisory Committees and the CentralAdvisory Committee shall conduct their business;

(l) the recruitment, conditionsof service and the duties of all persons appointed under section 8;

(m) the powers that may beexercised by an ¹ [a Welfare Commissioner,Welfare Administrator or an Inspector] under section 8;

(n) the furnishing to theCentral Government by the ² [thepurchasing agents or stockists of limestone or dolomite] and the owners, agentsor managers of limestone or dolomite mines, of such statistical and otherinformation as may be required to be furnished from time to time by thatGovernment;

(o) the authority which mayimpose any penalty under section 12,

(3) In making any rule underclause (b) or clause (n) of sub–section (2), the Central Government maydirect that a breach thereof shall be punishable with fine which may extend tofive hundred rupees.

(4) Every rule made under thissection shall be laid, as soon as may be after it is made, before each House ofParliament, while it is in session, for a total period of thirty days which maybe comprised in one session or in two or more successive sessions, and if,before the expiry of the session immediately following the session or thesuccessive sessions aforesaid, both Houses agree in making any modification inthe rule or both Houses agree that the rule should not be made, the rule shallthereafter have effect only in such modified form or be of no effect, as thecase may be; so, however, that any such modification or annulment shall bewithout prejudice to the validity of anything previously done under that rule.

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1. Substituted for the words"Inspector or a Welfare Administrator" by the Limestone and DolomiteMines Labour Welfare Fund (Amendment) Act, 1982 (70 of 1982) Section 7 (a).

2. Substituted for the words"occupier of factories" " by the Limestone and Dolomite MinesLabour Welfare Fund (Amendment) Act, 1982 (70 of 1982) Section 7 (b).