AGRICULTURAL PRODUCE CESS ACT
EmailTHE AGRICULTURAL PRODUCE CESS ACT, 1940
ACT No. 27 OF 1940
15th April, 1940.
An Act to make better financial provisionfor the Indian Council of Agricultural Research
WHEREAS it is expedient to make betterfinancial provision for the carrying out by the Indian Council of AgriculturalResearch of the objects for which it is established as set forth in thememorandum of Association of that body, and for this purpose to impose oncertain articles a cess by way of customs duty on export, the proceeds of whichshall be paid to the Council.
It is hereby enacted as follows: –
1.Short title and extent: (1) This Act may be called the Agriculturalproduce Cess Act, 1940.
(2) It extents to the whole of India 1[*].
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1. The words "except the state of Jammu and Kashmir" omitted by the Jammu and Kashmir (Extension of Laws) Act,1956 (62 of 1956) which were substituted by Part B States (Laws) Act, (3 of1951), Section 3 and Schedule, for the words "except Part b states".
2.Definitions: In this Act, unless there is anything repugnant in the subject orcontext,– (8 of 1878) (19 of 1924)
1 [(a) "Collection" means aCollector of Customs as defined in clause (8) of section 2 of the Customs Act,1962 (52 of 1962); and]
(b) ” Council ” means the Indian Councilof Agricultural Research.
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1. Substituted for theoriginal clause (a) by the Agricultural Produce Cess (Amendment) Act, 1970 (40of 1970) Section 2.
3.Imposition of cess: (1) A customs duty atthe rate of one-half of one percent ad valorem shall be levied on all articleincluded in the Schedule which are exported from 1 [India];
Provided that the saidduty shall not be levied on articles proved to the satisfaction of theCollector not to have been produced in India.
(2) The Central Government may, by 2 notification in the Official Gazette, fix for the purposesof levying the said duty tariff values of any articles included in theSchedule, and may alter any tariff values for the time being in force.
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1. Substituted by the Jammu and Kashmir(Extension of Laws) Act, 1956 (62 of 1956) for the words "the territoriesto which this act extends" which were substituted by Part B States (Laws)Act, (3 of 1951), Section 3 and Schedule, for the words "the territoriesfor the time being comprised within Part A States and Part B States".
2. For such notification refer Gazette ofIndia, 1947, Extraordinary, p. 611.
4.Power to exclude articles from Schedule: he Central Government may afterprevious consultation with the council, by 1 notification in the OfficialGazette, direct that any article specified in the Schedule shall cease to thesubject to the duty imposed by section 3, and thereupon, so long as thenotification remains in force, that article shall deemed not to be included inthe schedule.
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1. For such notification, refer Gazette ofIndia, 1940, Pt.I, p.1323.
5.Refund of, and exemption from, cess: 1 [The Central Board of Excise andCustoms constituted under the Central Boards of Revenue Act, 1963 (54 of 1963)]may make 2 rules providing, on such conditions as may be specified, in therules, for –
(a) the refund ofduty levied where articles are exported by land and subsequently imported intoIndia, and
(b) the export byland, without payment of the duty of the articles, which are subsequently beimported into India.
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1. Substituted for the words "TheCentral Board of Revenue" by the Agricultural Produce Cess (Amendment)Act, 1970 (40 of 1970) Section 3.
2. For such rules, refer Gazette of India,1940, Pt. I, p.565
1 [5A.Certain provisions of the CustomsAct, 1962 to apply: The provisions of the Customs Act, 1962 (52 of 1962), andthe rules and regulations made thereunder, including relating to refunds andexemption from duty, shall so far as may be, apply in relation to the levy andcollection of customs duty on all articles included in the Schedule as theyapply in relation to the levy and collection of duty payable to the CentralGovernment under that Act.
5B.Penalties: (1) Whoever –
(a) evades thepayment of any customs duty under this Act, or
(b) fails tofurnish any information which it is his duty to furnish or furnishesinformation which is false in material
particulars or which he does not believe to be true, or
(c) obstructs theCollector or any other officer in the performance of his duties under this Actor any rules made thereunder,
shall be punishable with imprisonment for a term which may extend to sixmonths, or with fine which may extend to two thousand rupees, or with both.
(2) Any court trying an offence under thisAct may direct that any article specified in the Schedule in respect of whichit is satisfied that an offence punishable under this Act has been committedshall be forfeited to the Central Government and may also direct that allpackages, coverings or receptacles in which such article is contained and everyvessel or other conveyance used in carrying such article shall be forfeited tothe Central Government].
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1. Inserted by the Agricultural ProduceCess (Amendment) Act, 1970 (40 of 1970) Section 4.
6.Payment of Cess to Council and expenditure of Cess by Council: (1) Theproceeds of the levied under this Act reduced by the cost of collection as determinedby the Central Government shall be paid to the council.
(2) The amount so due shall be paid by theCentral Government to the Council at the intervals of not more than six months.
(3) The expenditure of the money so paid tothe council shall be subject to such limitation as may be imposed by rules madein this behalf by the Central Government.
7.Standing Finance Committee: (1) The Council shall constitute a StandingFinance Committee, of which one member shall be chosen among 1 [the Members ofParliament] on the governing body of the council, and one member shall be anofficer appointed by the Central Government.
(2) Subject to the provisions of thesub-section (1) the constitution, functions and procedure of the StandingFinance Committee shall be regulated in such manner as the Council may with theprevious approval of the Central Government determine.
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1. Substituted for the words "therepresentative of the central Legislature" by the Agricultural ProduceCess (Amendment) Act, 1970 (40 of 1970) Section 5.
8.Reserve fund: The Council shall in accordance with the rules made in thisbehalf by the Central Government create and maintain a reserve fund.
9.Power of Central Government to makerules: (1) Central Government may, after consultation with the council, bynotification in the Official Gazette, make 1 rules to carry out the purposes ofthe Act.
(2) In particular and without prejudice tothe generality of the foregoing power, the Central Government may make rulesregulating the expenditure of money paid to the council under section 6 andproviding for the creation, maintenance and management of the reserve fundreferred to in section 8.
1 [(3) Every rule made under this Act shallbe laid, as soon as may be after it is made, before each House of Parliamentwhile it is in session for a total period of thirty days which may be comprisedin one session or in two successive sessions, and if, before the expiry of thesession in which it is so laid or the successive sessions aforesaid, 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 in suchmodified form or be of no effect, as the case may be; so, however, that anysuch modification or annulment shall be without prejudice to the validity ofanything previously done under that rule.]
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1. For such rules, see Gazette of India,1940, Pt. I, p.1353
2. Substituted for the original sub-section(3) by the Agricultural Produce Cess (Amendment) Act, 1970 (40 of 1970) Section6.
THE SCHEDULE
(See section 3)
1.BONES
2.BRISTLES
3.BUTTER
4.CEREALS, other than Rice and Wheat.
5.DRUGS
6.FIBRE for brushes.
7.FISH
8.FRUITS
9.GHEE
10.HIDES, raw.
11.MANURES
12.OILCAKES
13.PULSES
14.SEEDS
15.SKINS, raw.
16.SPICES
17.TOBACCO, unmanufactured
18.VEGETABLES
19.WHEAT
20.WHEAT FLOUR
21.1[Sheep’s or lamb’s wool and animal hair, whether or not scoured or carded]
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1. Substituted for thewords "WOOL, raw" by the Central Board of Revenue" by theAgricultural Produce Cess (Amendment) Act, 1970 (40 of 1970) Section 3.
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