 bui no8! of 19]0 the khadi and other handloom industrie~ development (additional excise duty on cloth) a,v1endment bill, 1970  bill further -~o amend the khadi and vater handloom industries development (additional excise duty on c!oth) act, 1953be it enacted by parliament in the twenty-first year of the republic of india as follows:-1 this act may be called the khadi and other handloom industries short title 12 of 1953 amend mentof section 3 ~evelopme!lt (additional excise duty on cloth) amendment act, 1970 i in section 3 of the khadi and other handloom !ndustries development (additional excise duty on cloth) act, 1953 (hereinafter referred to' as the principal act), in sub-section (1), for the proviso, the following proviso shall be substituted, and shall be deemed to have been substituted with effect from the 10th day of january, 1917"namely:-"provided that no such duty shall be levied on cloth-10 (i) which is exported out of india, or (ii) which is used in the manufacture of gooch which are exported out of india", 3 in sub-section (2) of sectkln 5 of the principal act, in clause (e), amendafter the w~rds "exempt from ", the words "the whole or any part of" ment of is shall be inserted and shall be deemed to have been inserted with effect iecti0'll5 from the lst day of march, 1960  statement of objects and reasonssection 3 of the khadi and other handloom industries development (additional excise duty on cloth) act, 1953 (12 of 1953) provides for the levy of an additional duty of excise (commonly known as handloom cess) on all cloth manufactured in india the proviso to that section prohibits the impositio'il of such duty on cloth which is exported out of india in pursuance of the proviso, no duty was levied from the 10th january, 1957, in respect of cloth used in the manufacture of garments and wearing apparel doubts have been expressed about the validity of exempting garments and wearing apparel from the levy of duty as theproviso appeared to apply to cloth alone and not also to garments made therefrom it is, therefore, proposed to amend section 3 of the act retrospectively from the 10th january, 1957, so as to specifically provide that no additional excise duty shall be levied on garments qt wearing apparel made out of cloth and exported out of india 2 under section 5 (2) (e) of the said act, cut-pieces of cotton fabrics (popularly known as fents) and hand loom woollen fabrics were exempt from the payment of duty leviable under it from the 1st march, 1960 and the 24th april, 1962, respectively it has been pointed out that under the said provision, government was not empowered to grant such exemption in the case of fabrics which were not wholly exempt from the duty of exclse leviable under the central excises and salt act, 1944 it is proposed' to amend that section so as to empower the central government to grant exemption even in cases where the fabrics are partially exempt frem the excise duty leviable under the 1944 act and to make the amendment retrospectively from the 1st march, 1960, s<1 as to validate the exemptions granted in the past new delhij l n mishra the 22nd july, 1970 clause 3 of the bill seeks to amend section 5 (2) (e) of the principal act so as to empower the central government to grant exemption from the handloam eesa under the act even in respect of those fabrics which are partially elrempt from the excise, duty impqled under th~ central excises and salt act 1144 'the matter in respect of which such rules may he made is 0iie of procedure and detail the delegation of legislative jjl(l,,'er' i5 thas tjf a normal character levy of :additional dutyot excise on cloth (uor l~  - - - 3 (1) there shall be levied and colleoted on au cloth manufactured an or after the appointed day in india, -dod all eleth lying in stock on the appointed day in any factory where cloth is manufactured or in any premises appurtenant thereto, a duty of excise at the rate of 19 naye paise per square metre: power to make rule • provided that no such duty shall be levied on cloth which is exported out of india - s (1) - - • - - • - • - • (2) in particular, and without prejudice to the generality <yf the foregoing power, such rules may provide for-- - - - - (e) the exemption from the whole or any part of the duty of excise levied under this act of any variety of cloth which is for the time being exempt from the duty of excise imposed under the central excises and salt act, 1944 a bill further to amend the khadi and other handloo:n industries development (additiod81 excise duty on cloth) act, 1953, (shri lalit narayan mishra, mim'ster oj foreign trade ,) 