(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 8Cotton 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 notification20 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, 189434; 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 rules35 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 rules46 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 rules48 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.

4912A. [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.