Meghalaya act 007 of 1988 : The Meghalaya Minerals Cess Act, Act No. 7 of 1988

Section 1.Short title, extent and commencement

(1) This Act may be called the Meghalaya Minerals Cess Act, 1988.

(2) It extent to the whole of State of Meghalaya.

(3) It shall come into force on such date as the Government may by Notification in the Official Gazette appoint, and different dates may be appointed for different areas.

Section 2.Definitions

In this Act unless there is anything repugnant in the subject for context-

(a) Act means the Meghalaya Minerals Cess Act, 1988;

(b) Cess means the tax leviable as cess under section 3;

"(bb) ¹ dumping ground means a stack-yard or place where the minerals are stacked after mining and which stack-yard or place is not more than one kilometer from the mine or quarry."

(c)Government means the Government of the State of Meghalaya;

(d) minerals means coal, sillimanite, limestone and fireclay;

(e) prescribed means prescribed by the rules made under this Act; and

"(ee) ² remove means to transport the minerals from a dumping ground for the purpose of trading."

(f) section means a section of this Act;

1 Inserted by Amendment Act No.5 of 1989, sec 2 (i)

2 Inserted by Amendment Act No.5 of 1989, sec 2 (ii)

Section 3.Imposition of cess

On and from the coming into force of this Act, there shall be levied and collected as cess a tax on coal, sillimanite, limestone and fire-clay from any person who ¹ "....." removes the minerals from any "² dumping ground " in the State according to the provisions of this Act;

1 Deleted by Amendment Act No. 5 of 1989 Sec.3 (i). Earlier the words read as extract or.

2 Substituted by Amendment Act No.5 of 1989, Sec 3(ii) Earlier the words read as mine or quarry.

Section 4.Rate of Cess

(1) The rate of the cess to be levied and collected under section 3 shall be, in the case of-

(a) coal, rapees, ten per matric tonne;

(b) sillimanite, rupees ten per matric tonne;

(d) fire clay, rupees one and paise twenty-five per matric tonne.

(2) The rate of cess fixed under sub-section (1) may from time to time be revised by Government by notification in the official Gazette.

Section 5.Application to the proceeds of the tax

The proceeds of tax collected under this Act shall first be credited to the Consolidated Fund of the State to be utilised, after due appropriation made by the Legislature by law, for the purpose of-

(a) Developing primary education; and

(b) Developing and improving the mining areas, in the State;

Provided that not more than twenty per cent of the proceeds so collected shall at any time be utilised for the purpose referred to in clause (b).

Section 6.Manner of collection and payment of the tax.

(1) The tax under this Act shall be leviable and payable in the manner as may be prescribed.

"(2)¹ ............................................."

1Deleted by Amendment Act No. 5 of 1989, Sec 4 . Earlier the sub-section read as Unless the tax due under this Act has been paid no person shall remove or transport or attempt to remove or transport any mineral from any mine or quarry in the State.

Section 7.Penalty for nonpayment of tax

If any tax payable under this Act is no paid within such period as may be prescribed it shall be deemed to be in arrears and the authority prescribed in this behalf may impose on the person "¹..................." removing the minerals a penalty not exceeding the amount of tax in arrears;

Provided that before imposing the penalty such person shall be given an opportunity of being heard and if the said authority is satisfied that the default was for good and sufficient reason, no penalty shall be imposed under this section.

1Deleted by Amendment Act No. 5 of 1989, Sec 4 .Earlier the sub-section read as " extracting or "

Section 8.Recovery of sums due

Any tax due under this Act including any penalty under Section 7 if not paid within the time prescribed, shall be recoverable by detaining and selling by the authority prescribed in this behalf any mineral belonging to such person and if the sum cannot be so recovered the same shall be recoverable as if were an arrear of land revenue.

Section 9.Offences

Whoever evades payment of the tax under this Act shall on conviction by a court be punishable with imprisonment for a term which may extend to six months or with fine which may extend to rupees two thousand or with both.

Section 10.Offences by companies.

Where an offence under this Act has been committed by a company every person who at the time the offence was committed was in charge of, and was responsible for the conduct of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly;

Provided that such person shall not be liable to any punishment under this section if, he proves that the offence was committed without his knowledge and that he had exercised all due diligence to prevent the commission of such offence.

Section 11.Protection of action taken in good faith

No suit, prosecution or legal processing shall lie against the Government or any of its officers or staff for anything done or intended to be in good faith done under this Act or the rules made there under.

Section 12.Power to make rules.

(1) The Government may by notification in the official Gazette make rules for carrying out the purpose 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-

(i) The manner of levy and payment of the tax;

(ii) The time within which the tax and penalty (under Section 7) shall be paid;

(iii)The authority which may impose penalty under Section 7;

(iv)The authority which may detain and sell the minerals under Section 8;

(v) The manner in which the Cess shall be applied for the purpose of this Act;

(vi)The form of receipts for payment of the tax; and

(vii) Any other matter that may have to be prescribed.