[Act 14 of 1923][1] [16th March, 1923] An Act to provide for the creation of a fund for
the improvement and development of the growing, marketing and manufacture of
cotton in India Whereas it is expedient to provide for the creation of a fund to be
expended by a Committee specially constituted in this behalf for the
improvement and development of the growing, marketing and manufacture of cotton
in India; It is hereby enacted as follows :- (1)
This Act may
be called the Cotton Cess Act, 1923. [2] [(2) It extends to the whole of India: Provided that it shall not apply to the State of Jammu and Kashmir except
to the extent to which the provisions of this Act relate to the levy and
collection of the cess specified therein.] In this Act, unless there is anything repugnant in the subject or context,- (a)
?Collector?
means, in reference to cotton consumed in a mill [3] [* * *], the Collector of the
district in which the mill is situated [4] [or any other officer
appointed by the [5] [Central Government] to
perform the duties of a Collector under this Act]; (b)
?the
Committee? means the Indian Central Cotton Committee constituted under this
Act; (c)
?cotton?
means raw cotton, whether baled or loose, which has been ginned; (d)
?Customs-collector?
and ?customs-port? mean respectively a Customs-collector and a customs-port as
defined in section 3 of the Sea Customs Act, 1878; [6] [(dd)
?managing agent? has the meaning assigned to it in the Companies Act, 1956;?;
and] (e)
?mill? means
any place which is a factory as defined in section 2 of [7] [the Factories Act, 1948],
and in which cotton is converted into yarn or thread either for sale as such or
for conversion into cotton goods as defined in section 3 of the [8]Cotton Duties Act, 1896; [9] [* * *] [10] [(ee)
?occupier?, in relation to a mill, means the person who has ultimate control
over the affairs of the mill, and where the said affairs are entrusted to a
managing agent, such agent shall be deemed to be occupier of the mill;] (f)
?prescribed?
means prescribed by rules made under this Act; [11] [* * *] [12] [(1)] There shall be levied and collected on
all cotton [13]
[* * *] exported from any customs-port to any port outside [14] [India] or consumed in any
mill in [15]
[India] a cess at the rate of [16] [[17] [twenty-five naye paise per
bale of 181.4 kilograms or, in the case of unbaled cotton, of seven naye paise
per fifty kilograms.]] [18] [* * *]. [19] [(2) The Central Government may, by
notification[20] in
the Official Gazette, direct that the cess referred to in sub-section (1) shall
be levied and collected on all cotton produced in India and exported by land
from [India] to any foreign territory outside India which may be specified in
the notification.] [21] [The Central Government shall cause to be
constituted a Committee to be called the Indian Central Cotton Committee
consisting of the following members, namely:- (i)
the
Vice-President of the Indian Council of Agricultural Research; (ii)
the
Agricultural Commissioner with the Government of India; (iii) two persons to be nominated by the Central
Government to represent that Government; (iv)
fourteen
persons to be nominated by the Central Government, to represent respectively
the Agricultural Departments of the Governments of the State of Andhra, Bombay,
Hyderabad, Madhya Bharat, Madhya Pradesh, Madras, Mysore, Patiala and East
Punjab States Union, Punjab, Rajasthan, Saurashtra, Travancore-Cochin, Uttar
Pradesh and West Bengal; (v)
three
persons of whom two shall be elected by the members of the House of the People
from among themselves and one shall be elected by the members of the Council of
State from among themselves; (vi)
twenty-six
persons to be nominated by the Central Government in consultation with the
State Governments concerned to represent the cotton growers, of whom five shall
be nominated from each of the States of Bombay and Madhya Pradesh, four from
the State of Hyderabad, two from each of the States of Madhya Bharat and
Saurashtra, and one from each of the States of Andhra, Bhopal, Madras, Mysore,
Patiala and East Punjab States Union, Punjab, Rajasthan and Uttar Pradesh; (vii) eight persons to be nominated, respectively,
by the East India Cotton Association, the Bombay Millowners' Association, the
Bombay Chamber of Commerce, the Indian Marchents' Chamber, Bombay, the
Ahmedabad Millowners' Association, the Tuticorin Chamber of Commerce, the Upper
India Chamber of Commerce and the Empire Cotton Growing Corporation; (viii) four persons to be nominated by the Central
Government to represent the cotton manufacturing or cotton ginning industry, of
whom two shall be nominated to represent the industry in the State of Madhya
Pradesh, one to represent the Industry in the State of Madras and one to
represent the industry in the State of Punjab; (ix)
one persons
having knowledge of co-operative banking to be nominated by the Central
Government; and (x)
such
additional members, not exceeding six, as the Central Government may, by
notification in the Official Gazette, appoint: Provided that, if within the period prescribed in this behalf, any
authority specified in this section fails to nominate a person, the Central
Government may itself appoint a member to fill the vacancy.] (1)
The
Committee so constituted shall be a body corporate by the name of the Indian
Central Cotton Committee, having perpetual succession and a common seal with
power to acquire and hold property both movable and immovable and to contract,
and shall by the said name sue and be sued. (2)
[22] [The [23] [Vice-President] of
the [24]
[Indian] Council of Agricultural Research] shall be ex-officio President of the
Committee. (3)
The
Secretary of the Committee shall be a person, not being a member of the
Committee, appointed by the Central Government. (1)
The [25] [occupier] of every mill
shall furnish to the Collector, on or before the seventh day of each month, a
return stating the total amount of cotton consumed or brought under process in
the mill during the preceding month, together with such further information in
regard thereto as may be prescribed: Provided that no return shall be required in regard to cotton consumed or
brought under process before the commencement of this Act. (2)
Every such
return shall be made in such form and shall be verified in such manner as may
be prescribed. (1)
On receiving
any return made under section 6, the Collector shall assess the cotton cess
payable in respect of the period to which the return relates, and if the amount
has not already been paid shall cause a notice to be served upon the [26] [occupier] of the mill
requiring him to make payment of the amount assessed within ten days of the
service of the notice. (2)
If the [27] [occupier] of any mill fails
to furnish in due time the return referred to in section 6 or furnishes a
return which the Collector has reason to believe is incorrect or defective, the
Collector shall assess the amount payable by him in such manner, if any, as may
be prescribed, and the provisions of sub-section (1) shall thereupon apply as
if such assessment had been made on the basis of a return furnished by
the [28]
[occupier]: Provided that, in the case of a return which he has reason to believe is
incorrect or defective, the Collector shall not assess the cess at an amount
higher than that at which it is assessable on the basis of the return without
giving to the [29] [occupier] a reasonable
opportunity of proving the correctness and completeness of the return. (3)
A notice
under sub-section (1)may be served on the [30] [oc cupier] of a mill either
by post or by delivering it or tendering it to the [31] [occupier] or his agent at
the mill. [32] [(1)] In respect of cotton exported by sea,
the cess shall be assessed and levied by the Customs-collector at the
customs-port of export and, subject to the provisions of this Act and of any
rules made thereunder, shall, for all or any of the purposes of the Sea Customs
Act, 1878, be deemed to be a duty of customs. [33] [(2) In respect of cotton exported by land
on which the cess is leviable- (a)
where the
cotton is exported to any territory which is foreign territory as defined in
the Land Customs Act, 1924, the cess shall be assessed by such authorities and
in such manner as may be prescribed, and shall, subject to the provisions of
this Act and of any rules made thereunder, for all or any of the purposes of
the Land Customs Act, 1924, be deemed to be a duty of land customs leviable
under section 5 of the Indian Tariff Act, 1894[34]; and (b)
in any other
case, the cess shall be assessed and levied by such authorities and in such
manner as may be prescribed. (3) ??The
Central Board of Revenue constituted under the Central Board of Revenue Act,
1924, may make rules[35] providing, on such
conditions as may be specified in the rules, for- (a)
the refund
of the cess levied where cotton is exported by land and subsequently imported
into India; and (b)
the export
by land, without payment of the cess, of cotton which is subsequently to be
imported into India.] (1)
An
assessment made in accordance with the provisions of section 7 or section 8
shall not be questioned in any Court. (2)
Any [36] [occupier] of a mill who is
aggrieved by an assessment made under section 7 may, within three months of
service of the notice referred to in sub-section (1) of that section, apply to
the [37]
[Central Government] for the cancellation or modification of the assessment
and, on such application, the [Central Government] may cancel or modify the
assessment and order the refund to such [38] [occupier] of the whole or
part, as the case may be, of any amount paid thereunder. (3)
Any sum
recoverable under section 7 may be recovered as an arrear of land revenue. (1)
The
Collector or any officer empowered by general or special order of the [39] [Central Government] in this
behalf shall have free access at all reasonable times during working hours to
any mill or to any part of any mill. (2)
The
?Collector or any such officer may at any time, with or without notice to
the [40]
[occupier], examine the working records, sale records and accounts of any mill
and take copies of or extracts from all or any of the said records or accounts
for the purpose of testing the accuracy of any return or of informing himself
as to the particulars regarding which information is required for the purposes
of this Act or any rules made thereunder. (3)
Where any
officer other than the Collector proposes to examine under sub-section (2) any
record or account containing the description or formulae of any trade process,
the [41]
[occupier] of the mill may give to the said officer, for transmission to the
Collector, a written notice of objection and the officer shall thereupon seal
up the record or account pending the orders of the Collector. (1)
All such
copies and extracts and all information acquired by a Collector or any other
officer from an inspection of any mill or warehouse or from any return
submitted under this Act shall be treated as confidential. (2)
If the
Collector or any such officer discloses to any person other than a superior
officer any such information as aforesaid without the previous sanction of
the [42]
[Central Government], he shall be punishable with imprisonment which may extend
to six months and shall also be liable to fine: Provided that nothing in this section shall apply to the disclosure of any
such information for the purposes of a prosecution in respect of the making of
a false return under this Act. (1)
On the last
day of each month or as soon thereafter as may be convenient, the proceeds of
the cess recovered during that' month shall, after deduction of the expenses,
if any, of collection and recovery, be paid to the Committee. (2)
Subject to
such conditions as may be prescribed, the said proceeds and any other monies
received by the Committee shall be applied to meeting the expenses of the
Committee and the cost of such measures as it may, with the previous approval
of the Central Government, decide to undertake for promoting agricultural and
technological research in the interests of the cotton industry in India [43] [or for the improvement and
development of the methods of growing, manufacturing and marketing of Indian
cotton]. No act done or proceeding taken under this Act shall be questioned on the
ground merely of the existence of any vacancy in or any defect in the
constitution of the Committee or the Standing Finance Sub-committee, if any. The Central Government may, by notification in the Official Gazette,
declare that, with effect from such date as may be specified in the
notification, the Committee shall be dissolved, and on the making of such
declaration all funds and other property vested in the Committee shall vest
in [44]
[* * *] [45]
[the Central Government] and this Act shall be deemed to have been repealed. (1)
The Central
Government may make rules[46] for the purpose of
carrying into effect all or any of 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)
for
prescribing the time within which nominations shall be made under section 4
whether in the first instance or on the occurrence of vacancies; (b)
for
prescribing the term of office of the members of the Committee; (c)
for
prescribing the circumstances in which and the authority by which any member
may be removed; (d)
for the
holding of a minimum number of meetings of the Committee during any year; (e)
for the
maintenance by the Committee of a record of all business transacted and the
submission of copies of such records to the Central Government; (f)
for the
definition of the powers of the Committee and of the Secretary to enter into
contracts which shall be binding on the Committee, and the manner in which such
contracts shall be executed; (g)
for the
regulation of the travelling allowances of members of the Committee and of
their remuneration, if any; (h)
for the
definition of the powers of the Committee and the Secretary in respect of the
appointment, promotion and dismissal of officers and servants of the Committee,
and in respect of the creation and abolition of appointments of such officers
or servants; (i)
for the
regulation of the grant of pay and leave to officers and servants of the
Committee, and the payment of leave allowances to such officers and servants,
and the remuneration to be paid to any person appointed to act for any officer
or servant to whom leave is granted; (j)
for the
regulation of the payment of pensions, gratuities, compassionate allowances and
travelling allowances to officers and servants of the Committee; (k)
for
prescribing the establishment and maintenance of a provident fund for the
officers and servants of the Committee, and for the deduction of subscriptions
to such provident fund from the pay and allowances of such officers and
servants, other than Government servants whose services have been lent or
transferred to the Committee; (l)
for
prescribing the preparation of budget estimates of the annual receipts and
expenditure of the Committee and of supplementary estimates of expenditure not
included in the budget estimates, and the manner in which such estimates shall
be sanctioned and published; (m)
for defining
the powers of the Committee, the Standing Finance Sub-committee, if any, the
President and the Secretary, respectively, in regard to the expenditure of the
funds of the Committee, whether provision has or has not been made in the
budget estimates or by re-appropriation for such expenditure, and in regard to
the reappropriation of estimated savings in the budget estimates of
expenditure; (n)
for
prescribing the maintenance of accounts of the receipts and expenditure of the
Committee and providing for the audit of such accounts; (o)
for
prescribing the manner in which payments are to be made by or on behalf of the
Committee, and the officers by whom orders for making deposits or investments
or for withdrawals or disposal of the funds of the Committee shall be signed; (p)
for
determining the custody in which the current account of the Committee shall be
kept, and the bank or banks at which surplus monies at the credit of the
Committee may be deposited at interest, and the conditions on which such monies
may be otherwise invested; (q)
for
prescribing the preparation of a statement showing the sums allotted to State
Departments of Agriculture or institutions not under the direct control of the
Committee for expenditure on research, the actual expenditure incurred, the
outstanding liabilities, if any, and the disposal of unexpended balances at the
end of the year; (r)
the
assessment, levy, and payment of the cotton cess in respect of cotton exported
by sea [47]
[or by land]; and, (s)
any other
matter which is to be or may be prescribed. The Committee may, with the previous sanction of the Central Government,
make rules[48] consistent
with this Act and with any rules made under section 15 to provide for all or
any of the following matters, namely :- (a)
for the
appointment of a Standing Finance Sub-committee and the delegation thereto of
any powers exercisable under this Act by the Committee; (b)
for
prescribing the method of appointment, removal and replacement and the term of
office of members of the Standing Finance Sub-committee, and for the filling of
vacancies therein; (c)
for the
appointment of the dates, times and places for meetings of the Committee and
the Standing Finance Sub-committee, and for regulating the procedure to be
observed at such meetings; (d)
for
determining the circumstances in which security may be demanded from officers
and servants of the Committee, and the amount and nature of such security in
each case; (e)
for
determining the times at which, and the circumstances in which, payments may be
made out of the provident fund and the conditions on which such payments shall
relieve the fund from further liability; (f)
for determining
the contribution, if any, payable from the funds of the Committee to the
provident fund; (g)
for
regulating generally all matters incidental to the provident fund and the
investment thereof; (h)
for defining
the powers and duties of the Secretary of the Committee. All rules made under section 15 or section 16 shall be published in the
Official Gazette and, on such publication, shall have effect as if enacted in
this Act. [49]12A. [Payment to Government of Burma.] Repealed by the Indian Cotton Cess (Amendment) Act,
1948 (59 of 1948), s. 5. [1] On
the dissolution of the Committee constituted under this Act w.e.f. 1st April,
1966, by Notification No. S.O. 882, dated the 18th March, 1966 [Gazette of
India, Part II, Section 3(ii), p. 815], the Act is deemed to have been
repealed.] [2] Substituted
by Act 62 of 1956, s. 2 and Sch., for the former sub-section. [3] The
words ?in the Provinces? omitted by the A. O. 1950. [4] Inserted
by Act 1 of 1924, s. 2. [5] Substituted
by the A. O. 1937 for ? L. G.?. [6] Inserted
by Act 50 of 1956, s. 2 (w.e.f. the date to be notified) [7] Substituted
by Act 3 of 1951, s. 3 and Sch., for ?the Indian Factories Act, 1911?. [8] Repealed
by the Indian Finance Act, 1926 (19 of 1926), s. 3. [9] The
word ?and? repealed by Act 5 of 1939, s. 2. [10] Inserted
by Act 50 of 1956, s. 2 (w.e.f. the date to be notified) [11] Clause
(g) which had been added by Act 5 of 1936, s. 2,.repealed by the A. O. 1948. [12] The
original s. 3 was re-numbered as sub-section (1) of that section by Act 1 of
1924, s. 3. [13] The
words ?produced in India and either? repealed by Act 51 of 1947, S. 2, with
effect from 15th August, 1947. [14] Substituted
by Act 62 of 1956, s. 2 and Sch., for ?the territories to which this Act
extends?. [15] Substituted
by Act 62 of 1956, s. 2 and Sch., for ?the said territories?. [16] Substituted
by Act 40 of 1960, s. 2 (w.e.f. 1-10-1960). [17] Substituted
by Act 40 of 1960, s. 2 (w.e.f. 1-10-1960). [18] The
proviso repealed by Act 51 of 1947, s. 2, with effect from 15th August, 1947. [19] Inserted
by Act 1 of 1924, s. 3. [20] For
such notification, see Gazette of India, 1948, Pt. I, p. 1256. [21] Substituted
by Act 50 of 1956, s. 3 (w.e.f. the date to be notified). [22] Substituted
by Act 14 of 1929, s. 3, for ?The Agricultural Adviser to the G. of I.?. [23] Substituted
by Act 48 of 1952, s. 3 and Sch. II, for ?Vice-Chairman?. [24] Substituted
by Act 3 of 1951, s. 3 and Sch., for ?Imperial?. [25] Substituted
for ?owner? by Act 50 of 1956, s. 4 (w.e.f. the date to be notified) [26] Substituted
for ?owner? by Act 50 of 1956, s. 4 (w.e.f. the date to be notified) [27] Substituted
for ?owner? by Act 50 of 1956, s. 4 (w.e.f. the date to be notified) [28] Substituted
for ?owner? by Act 50 of 1956, s. 4 (w.e.f. the date to be notified) [29] Substituted
for ?owner? by Act 50 of 1956, s. 4 (w.e.f. the date to be notified) [30] Substituted
for ?owner? by Act 50 of 1956, s. 4 (w.e.f. the date to be notified [31] Substituted
for ?owner? by Act 50 of 1956, s. 4 (w.e.f. the date to be notified) [32] Original
s. 8 re-numbered as sub-section (1) of that section by Act 1 of 1924, s. 4. [33] Substituted
by Act 18 of 1925, s. 2, for original sub-section (2) which was inserted by Act
1 of 1924, s. 4. [34] Repealed
by the Indian Tariff Act, 1934 (32 of 1934). [35] For
such rules, see Gazette of India, 1925, Pt. I, p. 1168. [36] Substituted
for ?owner? by Act 50 of 1956, s. 4 (w.e.f. the date to be notified) [37] Substituted
by the A. O. 1937 for ?L. G.?. [38] Substituted
for ?owner? by Act 50 of 1956, s. 4 (w.e.f. the date to be notified) [39] Substituted
by the A. O. 1937 for ?L. G.?. [40] Substituted
for ?owner? by Act 50 of 1956, s. 4 (w.e.f. the date to be notified) [41] Substituted
for ?owner? by Act 50 of 1956, s. 4 (w.e.f. the date to be notified) [42] Substituted
by the A. O. 1937 for ?L. G.?. [43] Added
by Act 59 of 1948, s. 4. [44] The
words ?His Majesty for the purposes of? omitted by the A. O. 1950. The words in
italics were inserted by the A. O. 1937. [45] Inserted
by the A. O. 1937. [46] For
the Indian Cotton Cess Rules, 1923, see Gazette of India, 1923, Pt I p. 457. [47] Inserted
by Act 1 of 1924, s. 5. [48] For
such rules, see Gazette of India, 1923, Pt. I, p. 591. [49] Inserted
by the A. O. 1937.Cotton Cess Act, 1923 [Repealed]