Act 009 of 1946 : Oilseeds Committee Act, 1946

Section 1. Short title and extent

1. Short title and extent.-(1) This Act may be called the Indian Oilseeds Committee Act, 1946.

¹[(2) It extends to whole of India:

Provided that is 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 duty of excise and the duty of customs specified therein.]

Section 2. Definitions

2. Definitions.-In this Act, unless there is anything repugnant in the subject or context-

(a) "approved growers' association" means an association of growers approved by resolution of the Committee for the purposes of clause (g) of Section 4;

(b) "Collector" means the officer appointed by the Central Government to perform in any specified area the duties of a Collector under the provisions of this Act and the rules made thereunder, and includes any officer subordinate to that officer whom he may by order in writing authorize to perform his duties under those provisions;

(c) "the Committee" means the ¹ [Indian Central Oilseeds Committee] constituted under this Act;

(d) "Fund" means the Oilseeds Improvement Fund referred to in sub-section (2) of Section 3;

(e) "grower" means an agriculturist who grows oilseeds, with or without the aid of hired labour;

²[(f) "mill" means any premises in which or in any part of which oilseeds are crushed or are ordinarily crushed with the aid of power;

Explanation.-"Power" means electrical energy or any other form of energy which is mechanically transmitted and is not generated by human or animal agency;]

(g) "oilseeds" does not include coconuts;

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

Section 3. Imposition of oilseeds cess

3. Imposition of oilseeds cess.-(1) There shall be levied and collected on and after the date of the commencement of this Act as cesses for the purposes of this Act,-

(a) on all oils extracted from oilseeds crushed in any mill in ¹ [India], whether the oilseeds are produced in or imported from outside ² [India], a duty of excise at the rate of ³ [seventeen naye paise per quintal], and

(b) on all oilseeds exported out of ⁴ [India] to a destination outside India, a duty of customs at the rate of ⁵ [thirty-three naye paise per quintal]:

Provided that the Central Government may from time to time and after consulting the Committee fix by notification in the Official Gazette a lesser rate at which the duty of excise or duty of customs shall be levied and collected:

Provided further that no such duty of customs shall be levied on any oilseeds exported under a contract for export entered into before the aforesaid date.

(2) On the last day of each month, or as soon thereafter as may be convenient, the proceeds of the duties recovered during that month shall, after deduction of the expenses, if any, of the collection and recovery, be paid to the Committee and the Committee shall credit the said proceeds and any other monies received by it to a fund to be called the Oilseeds Improvement Fund.

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Prior to amendment by Act 40 of 1960, Section 3 read as:

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3. Imposition of oilseeds cess.-(1) There shall be levied and collected on and after the date of the commencement of this Act as cesses for the purposes of this Act,-

(a) on all oils extracted from oilseeds crushed in any mill in ⁶ [India], whether the oilseeds are produced in or imported from outside ⁷ [India], a duty of excise at the rate of one anna per maund, and

(b) on all oilseeds exported out of ⁸ [India] to a destination outside India, a duty of customs at the rate of two annas per maund:

Provided that the Central Government may from time to time and after consulting the Committee fix by notification in the Official Gazette a lesser rate at which the duty of excise or duty of customs shall be levied and collected:

Provided further that no such duty of customs shall be levied on any oilseeds exported under a contract for export entered into before the aforesaid date.

(2) On the last day of each month, or as soon thereafter as may be convenient, the proceeds of the duties recovered during that month shall, after deduction of the expenses, if any, of the collection and recovery, be paid to the Committee and the Committee shall credit the said proceeds and any other monies received by it to a fund to be called the Oilseeds Improvement Fund.

Section 4. Constitution of Indian Oilseeds Committee

4. Constitution of Indian Oilseeds Committee.-As soon as may be after the commencement of this Act, the Central Government shall cause to be constituted a Committee consisting of the following members, to receive for credit to the Fund the proceeds of the duties and to administer the Fund, namely:-

¹[(a) the Vice-President, Indian Council of Agricultural Research;

(b) the Agricultural Commissioner with the Government of India;

(c) the Agricultural Marketing Adviser with the Government of India;

(d) two person representing, respectively, the Ministry of Commerce and Industry and the Ministry of Food and Agriculture of the Central Government, to be appointed by the Central Government;

²[(e) ten persons representing the Governments of Andhra Pradesh, Bihar, Bombay, Madhya Pradesh, Madras, Mysore, Punjab, Rajasthan, Uttar Pradesh and West Bengal, one each to be nominated by the State Government concerned;]

(f) ³ [seventeen] persons being growers, who shall be nominated after consulting the approved growers' associations in the State, as follows:-

⁴[* * *]

(ii) three each by the Governments of Bombay and Uttar Pradesh;

⁵[(iii) two each by the Governments of Andhra Pradesh, Madras and Madhya Pradesh;

(iv) one each by the Governments of Bihar, Punjab, West Bengal, Mysore and Rajasthan:]

Provided that where there are for the time being no approved growers' associations concerned, the Government shall, before making any nomination under this clause, consult the associations of growers, or associations the majority of whose members are growers, if any, in the State concerned;]

(h) one person having experience of the co-operative movement to be appointed by the Central Government;

(i) one oilseed technologist to be nominated by the Oil Technologists Association, ⁶ [Kanpur];

(j) three persons representing the village oilseed crushing industry to be appointed by the Central Government after consulting State Governments;

(k) one person representing the vanaspati industry to be appointed by the Central Government after consulting the appropriate commercial associations;

(l) two persons representing the power oilseed crushing industry to be appointed by the Central Government after consulting the appropriate commercial associations;

(m) two persons representing exporters of oilseeds and oilseed products to be appointed by the Central Government after consulting the appropriate trade associations, other than those referred to in clauses ⁷ [(n) and (o)];

(n) one person representing the Federation of Indian Chambers of Commerce and Industry to be nominated by that body;

(o) one person representing the Associated Chambers of Commerce to be nominated by that body;

⁸[* * *]

(q) one person representing the Federation of Rural Peoples' Organisations to be nominated by that body;

(r) four persons representing the oilseeds trade associations to be appointed by the Central Government after consulting the appropriate commercial associations, other than those referred to in clauses ⁹ [(m), (n) and (o)];

¹⁰[(s) six persons representing consumers of oilseed products, of whom four shall be elected from among themselves by the members of the House of the People and two from among themselves by the members of the Council of States;]

(t) such additional persons, not more than three in number, as the Central Government may appoint to represent interests not otherwise represented.

Section 5. Incorporation of the Committee

5. Incorporation of the Committee.-The Committee shall be a body corporate by the name of the ¹ [Indian Central Oilseeds 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.

Section 6. Vacancies

6. Vacancies.-(1) If, within the period prescribed in this behalf, or within such further period as the Central Government may allow, any authority or body fails to make any nomination or election which it is entitled to make under Section 4, the Central Government may itself appoint a member to fill the vacancy in the Committee.

(2) Where a member of the Committee dies, resigns or is removed, or ceases to reside in India or becomes incapable of acting, the Central Government may, on the recommendation of the authority or body which was entitled to make the first nomination or election under Section 4, or where such recommendation is not made within a reasonable time, then on its own initiative, appoint a person to fill the vacancy.

(3) No act done by the Committee shall be questioned on the ground merely of the existence of any vacancy in, or any defect in the constitution of, the Committee.

Section 7. President of Committee, Secretary, sub-committees and staff

7. President of Committee, Secretary, sub-committees and staff.-¹ [(1) The Central Government may appoint any of the persons referred to in Section 4 or any other person to be the President of the Committee, and if any other person is so appointed that other person shall be deemed to be a member of the Committee for all the purposes of this Act.]

(2) The Central Government shall appoint a person to be the Secretary of the Committee and such person shall be paid by the Committee such salary and such allowances as may be fixed by the Central Government.

(3) The Committee may appoint such sub-committees and staff as may be necessary for the efficient performance of its functions under this Act.

Section 8. Appointment of officers

8. Appointment of officers.-The Central Government may, on the recommendation of the Committee, appoint an officer or officers, to discharge under the direction of the Committee such duties as may be prescribed, and such officer or officers shall be paid by the Committee such salary and allowances as may be fixed by the Central Government.

Section 9. Application of Fund

9. Application of Fund.-(1) The Committee shall apply the Fund to meet the expenses of the Committee and the cost of such measures as it may consider necessary or expedient to take for the improvement and development of the cultivation and marketing of oilseeds and of the production, utilisation and marketing of oilseed products.

(2) Without prejudice to the generality of the foregoing power, the Committee may utilise the Fund to defray expenditure involved in-

(a) undertaking, assisting or encouraging agricultural, industrial, technological and economic research, including research into the food-value of oilseeds and oilseed products;

(b) supplying technical advise to growers and millers;

(c) encouraging the adoption of improved methods of cultivation and storage of oilseeds;

(d) producing, testing and distributing improved varieties of oilseeds or assisting such work;

(e) assisting in the control of insect and other pests and diseases of oilseeds both in the field and in storage;

(f) promoting the improvement of the marketing of oilseeds and their products including the setting up and adoption of grade standards for oilseeds and their products;

(g) collecting statistics from growers, dealers and millers on all relevant matters and promoting improvement in the forecasting of oilseed crops and the preparation of all relevant statistics relation to oilseeds and oilseed products;

(h) maintaining, and assisting in the maintenance of, such institutes, farms and stations as it may consider necessary;

(i) advising and providing assistance on all matters connected with the improvement of the cultivation of oilseeds (including advising on the best and most suitable varieties of oilseeds to be cultivated) and the improvement of the industries using oilseeds or their products;

(j) promoting and encouraging the co-operative movement in the oilseeds industry;

(k) adopting such measures as may be practicable for assuring remunerative returns to growers;

(l) organising the establishment of growers', millers' and consumers' associations;

(m) aiding and encouraging the establishment of exhibitions for demonstrating the uses of oilseeds and oilseed products;

(n) adopting any other measures or performing any other duties which it may be required by the Central Government to adopt or perform or which the Committee may itself think necessary or advisable in order to carry out the purposes of this Act.

Section 10. Delivery of monthly returns

10. Delivery of monthly returns.-(1) The owner of every mill shall furnish to the Collector, on or before the 7th day of each month, a return stating the total amount of oils extracted 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 oils extracted 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.

Section 11. Collection of duty of excise

11. Collection of duty of excise.-(1) On receiving any return made under Section 10, the Collector shall assess the amount of the duty of excise payable under Section 3 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 owner of the mill requiring him to make payment of the amount assessed within thirty days of the service of the notice.

(2) If the owner of any mill fails to furnish in due time the return referred to in sub-section (1) of Section 10 or furnishes a return which the Collector has reason to believe is incorrect or defective, the Collector shall assess the amount, it any, payable by him in such manner as may be prescribed, and the provisions of sub-section (1) shall thereupon apply as if such assessment had made on the basis of a return furnished by the owner:

Provided that, in the case of a return which he has reason to believe is incorrect or defective, the Collector shall not assess the duty of excise at an amount higher than that at which it is assessable on the basis of the return without giving to the owner a reasonable opportunity of proving the correctness and completeness of the return.

(3) A notice under sub-section (1) may be served on the owner of a mill either by post or by delivering it or tendering it to the owner or his agent at the mill.

Section 12. Finality of assessment and recovery of unpaid duty of excise

12. Finality of assessment and recovery of unpaid duty of excise.-(1) Any owner of a mill who is aggrieved by an assessment made under Section 11 may, within three months of service of the notice referred to in sub-section (1) of that section, apply to the District Judge, or in a Presidency-town, to the Chief Judge of the Small Cause Court for the cancellation or modification of the assessment and, on such application, the said Judge may cancel or modify the assessment and order the refund to such owner of the whole or part, as the case may be, of any amount paid thereunder.

(2) The decision under sub-section (1) of the District Judge or the Chief Judge of the Small Cause Court, as the case may be, shall be final.

(3) Any sum recoverable under Section 11 may be recovered as an arrear of land-revenue.

Section 13. Power to inspect mills and take copies of records and accounts

13. Power to inspect mills and take copies of records and accounts.-(1) The Collector or any officer empowered by general or special order of the 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 during working hours, with or without notice to the owner, examine the purchase, sale and stock 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:

Provided that nothing in this section shall be deemed to authorize the examination of any description or formulae of any trade process.

Section 14. Information acquired to be confidential

14. Information acquired to be confidential.-(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 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.

Section 15. Keeping and auditing of accounts

15. Keeping and auditing of accounts.-(1) The Committee shall publish an annual report and shall keep accounts of all duty and other monies received by it under this Act and of the manner in which the Fund is expended and shall also publish a summary of the accounts along with the annual report.

(2) Such accounts shall be examined and audited annually in the prescribed manner, and the auditors shall have power to disallow any item which has been, in their opinion, expended otherwise than in pursuance of the purposes of this Act.

(3) If any item is disallowed, an appeal shall lie to the Central Government whose decision shall be final.

Section 16. Dissolution of Committee

16. Dissolution of Committee.-The Central Government may, with the previous approval of ¹ [* * *] ² [the House of the People], 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 ³ [* * *] the Central Government and this Act shall be deemed to have been repealed.

Section 17. Power of the Central Government to make rules

17. Power of the Central Government to make rules.-(1) The Central Government may, after previous publication, make ¹rules for the purpose of carrying into effect 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 or elections 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 prescribing the quorum of the Committee;

(e) for the holding of a minimum number of meetings of the Committee during any year;

(f) 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;

(g) for the definition of the powers of the Committee to enter into contracts which shall be binding on the Committee, and the manner in which such contracts shall be executed;

(h) for the regulation of the travelling allowances of members of the Committee and of their remuneration, if any;

(i) for the definition of the powers of the Committee, 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;

(j) for the regulation of the grant of pay (which shall not, except in the case of a person having specialist's qualifications, exceed two thousand rupees per mensem) 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;

(k) for the regulation of the payment of pensions, gratuities, compassionate allowances and travelling allowances to officers and servants of the Committee;

(l) 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 lent or transferred to the Committee;

(m) for prescribing the preparation of budget estimates of the annual receipts and expenditure of the Fund and of supplementary estimates of expenditure not included in the budget estimates, and the manner in which such estimates shall be sanctioned and published;

(n) for defining the powers of the Committee, the Standing Finance Sub-committee, if any, and the President, respectively, in regard to the expenditure from the Fund whether provision has or has not been made in the budget estimates or by re-appropriation for such expenditure, and in regard to the re-appropriation of estimated savings in the budget estimates of expenditure;

(o) for prescribing the maintenance of accounts of the receipts and expenditure of the Fund and providing for the audit of such accounts;

(p) 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;

(q) for determining the custody in which the current account of the Fund shall be kept, and the bank or banks at which surplus monies at the credit of the Fund may be deposited at interest, and the conditions on which such monies may be otherwise invested;

(r) for prescribing the preparation of a statement showing the sums allotted to Departments of Agriculture and Industries 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;

(s) for prescribing the duties of the officers appointed under Section 8, and the powers and duties of the Secretary of the Committee;

(t) for prescribing the manner in which any amount of duty paid in excess may be refunded;

(u) any other matter which is to be or may be prescribed.

Section 18. Power of the Committee to make regulations

18. Power of the Committee to make regulations.-The Committee may, with the previous sanction of the Central Government, make regulations consistent with this Act and with any rules made under Section 17 to provide for all or any of the following matters, namely:-

(a) the appointment of a Standing Finance Sub-committee or other Sub-committee and the delegation thereto of any powers exercisable under this Act by the Committee;

(b) the method of appointment, removal and replacement and the term of office of members of the Sub-committees, and for the filling of vacancies therein;

(c) the dates, times and places for meetings of the Committee and the Sub-committees and the procedure to be observed at such meetings;

(d) 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) 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) the contribution, if any, payable from the funds of the Committee to the provident fund;

(g) generally all matters incidental to the provident fund and the investment thereof.

Section 19. Publication of rules and regulations

19. Publication of rules and regulations.-All rules made under Section 17 and all regulations made under Section 18 shall be published in the Gazette of India.