 the vp sugarcane cess (valida· tion) bill, 1961(to be introduced in lok sabha) -  the up sugarcane cess (validation) bill, 1961(to be introduced in lok sabha)  a billto validate the imposition and collection of cesses on sugarcane under certain acts of uttar pradesh be it enacted by parliament in the twelfth year of the republic of india as follows:-1 (1) this act may be called the u p sugarcane cess (valida- short title tion) act, 1961 :!c=e~lt s (2) it shall be deemed to have come into force on the 3rd day of february, 1961 definition ••  2 in this act,-(a) "cess" means the cess payable under any state act and includes any sum recoverable under any such act by way of 10 interest or penalty; (b) "state act" means any of the following acts, namely:-(i) the united provinces sugar factories control act, 1938; (ii) the u p sugarcane (regulation of supply and purchase) act, 1953; and - is (iii) the u p suaarcane cess act, 1956 up accl of 1938 up act xxiv of 19s3 upacc xxii of 19$6 validation of 3 (1) notwithstanding any judgment, decree or or~er of any imposition court, all cesses imposed, assessed or collected or purportmg to have !fd~~ been imposed, assessed or collected under any state act during the under state period beginning with the 26th day of january, 1950 and ending on ~c:~urir  a the 3rd day of february, 1961 shall be deemed to have been validly s period imposed, assessed or collected in accordance with law, as if the provisions of the state acts and of all notifications, orders and rules issued or made thereunder, in so far as such provisions relate to the imposition, assessment and collection of such cess had been included in and formed part of this section and this section had been in force 10 at all ma~rial times when such cess was imposed, asseseeci or collected; and accordingly,--(a) no suit or other proc;eeding shall be maintained or cod-tinued in any court for the refund of any cess paid under any state act; is (b) no court shall enforce a decree or order directing the r ~fund of any cess paid under any state act; and (c) any cess imposed or assessed under any state act before the 3rd day of february, 1961 but not collected before that date, may be recovered (after assessment of the cess, where 20 necessary) in the manner provided under that act (2) for the removal of doubts it is hereby declared that nothing in sub-section (1) shall be construed as preventing any person,-(a) from questioning in accordance with the provisions of any state act and rules made thereunder the assessment of any 2s cess for any period, or - (b) from claiming refund of any cess paid by him in exceb8 of the amount due from him under any state act and the rules made thereunder repeal 4 the u p sugarcane cess (validation) ordinance,i961 is here- 30 of 1961 by repealed  i  statement of objects and reasonsin the case of the diamond sugar mills limited and another vs the state of uttar pradesh and tldother, the supreme court by a majority judgment delivered on the 13th december, 1960, has held the u p sugarcane cess act, 1956 ult-ra vires and beyond the competence of the state legislature this decision of the supreme court invalidates the levy and collection of cesses on sugarcane by the u p government under that act the total cess collected by the u p government on sugarcane since 1950 runs to about 45 crores of rupees unless the cess levied and collected under the impugned act is valid~ted, the u p government would have to refund the entire amount of cess so levied and collected as there is no entry in the state list or concurrent list which authorises the state gover:nment to validate these past levies and collections, it b~ame n~ary to promulgate the u p sugarcane cess (validation) ordinance of 1961 (1 of 1961) on the 31st of january, 1961 the ordinance validates the cesses imposed, assessed or collected by t~e gove~ent of uttar pradesh during the period from the 26th january, 1950 to the date of the commencement of the ordinance the ordinance was brought into force with effect from the 3rd f~q~jj'y, 1961, ~y noti~cation in the official gazette 2 this bill merely seeks to replace the ordinance by an act of p~upi~p;t  - morarji r desai  new di:uu; the 11th february, 1961'  annexure extract from the united provinces sugar factories control act, 1938 (united provinces act no i of 1938)(as amended 'by the up acts nob vi of 1939, xi of 1940, 1 of 1941 and xli of 1943)  - - - - -  chapi'er vimiscellaneous - - - - - tax on sale z9 (1) the governor may, after consulting the board, by notiftof cane cation, impose a tax on the sale of sugarcane at a rate not exceeding six pies per maund or at a rate not exceeding ten per cent of the sale price, and may, by notification, exempt from such tax sales in any area, or any class or classes of such sales, to be specified in the notification (2) the governoj' may, after consulting the board, by notification, impose a cels not exceeding ten per cent of the minimum price if any, fixed under section 21, or four annas a maund, whichever is higher, on the entry of sugarcane into a local area, specified in such notification, for consumption, use oj' sale therein: provided that such cess shall not be imposed on the entry ii}to any such area of any sugarcane in respect of the sale of ~hich a tax imposed under sub-section (1) is payable: provided further that the provincial government may, by notification, remit in whole or in part such cess in respect of sugarcane used or intended to be used in a factory foj' any purpose specified in such notification: provided further that the provincial government may, by notification, remit, with effect from the 16th december, 1944, or from such other later date as may be specified in such notification, in whole or in part, such cess in respect of sugarcane grown in an area and p~ chased at a centre specified in the aforesaid notification, (3) the provincial government shall make rules specifying the authority empowered to collect the tax or cess and the person from whom, and the manner in which, the tax or cess shall be collected (4) if any agreement for the sale of cane is entered into before the imposition of a tax or cess under this section, the seller will be entitled to recover from the buyer in addition to, and as part of, the contracted price, the amount of such tax or cess to which the seller may be liable (5) all sums payable in accordance with sub-section (1) or (2) or the rules made under sub-section (3) shall be recoverable as an arrear of land revenue  - - - - -  extract from the u p sugarcane (regulation of supply and purchase) ac:r, 1953 (u p ac:r no xxiv 0  1953) - • - • - chaptell iv miscellaneous •zoo (1) the governor may, by notification, impose a cess not tax  1ile exceeding four annas a maund, on the entry of sugarcane into an of cane area, specified in such notification, for consumption, use or sale· thereof: provided that the state government may, by·notification, remit in wildie or in part such cess in respect of sugarcane used or intend to be used in a factory for any purpose specified in such notification  - (2) the state government shall make rules sp~eifying the authority empowered to assess and collect cess and the person from whom and the manne:r in which the cess shall be collected (3) if any agreement for the sale of can~ is ~ntered intqb~re the imposition of a cess under this section, the seller will be entitled to recover from the buyer in addition to, and as part of ihe contracted price, the amount of such cess to which the seller may be liable (4) where· any person is in default in making the payment of the cess,' the authority empowered to collect the cess may direct that in addition to the amount of the arrears a sum not exceeding 10 per cent thereof shall be recovered from the person liable to pay the cess, by way of penalty (5) the authority empowered to collect the cess may for,ward to the collector 18 certificate under his signature specifying the amount of arrears due from the person concerned and the colle~tor, oq :receipt of such certificate, shall proceed to recove; from such person the amount specified therein as if it were an arrear of land revenue - (6) any sum imposed by way of penalty under sub-section (4) shall be :recoverable in the manner provided in sub-section (5) for the recovery of the arrear of cess  the u p sugarcane cess act, 1956 (u p act no xxii of 1956)(authoritative english text oj the uttar pradesh ga1lm upkar adhiniyam, 1956) to amend and, codtolidate the law re1ating to imporition of cell on sugarcane intended jor use, consumption in or s~le to a jactory aftd a gut, rab or khandsa1'i sugar manujacturt'l1g un,t whdeas it is expedient to amend and consolidate the law relatidg to imposition of cess on ·sugarcane intended for use bjld consumption in 01' sale to a factory and a qur, rab f1r k~7i~ari sugar manufacturing unit  l~ is hereby enacted 88 follows in the seventh year of the repubiic of india 1 (1) this act may be called the u p sugarcane cess act, 1956 soon title, extent and commcnce-'(2) it 'extends to the whole of uttar pradesh mcnt (3) this section shall come into force at once, and the provisions of sections 2, 3 and 5 to 8 shall be deemed to have come into force on and from the 26th day of january, 1950 z in this act, unless there is anything repugnant in the subject definiticml or context, the words and expressions-(a) "appointed date" means the date on which this act is first })ublisbed in the official gazette u p act xxiv of 19'3· (b) "cane", "cane commissioner", "factory", "gur, rab or khandsari sugar manufacturing unit", "occupier of a factory or a gur, rab or khandsari sugar manufacturing unu", "state government" and "sugar cammissioner" shall have the meanings assigned to them in the uttar pradesh sugarcane (regula- tion of supply and purchase) act, 1953; (c) "owner of a factory or a gur, rab or khandsari sugar manufacturing unit" will include occupier of a factory or a gur, rab or khandsari sugar manufacturing unit and the person by whatever name, called, who has ultimate control over the affairs of the factory or the gut, rab or khandsari sugar manufacturing unit s (1) the state government may by notification in the official imposition of gazette impose a cess not exceeding twenty-five naye paise per cess niaund on the entry of cane into the premises of a factory or of a gut, rab or khandsari sugar manufacturing unit for use, consumption or sale therein: provided that different rates of cess may be imposed by the state government for a factory and a gut, rab or khandsari sugar manufacturing unit: provided further that the state government may by notification in the ofticial gazette remit in whole or in part such cess in respect of cane usedi or to be used in a factory or in a gur, rab or khandsari sugar manufacturing unit for a limited purpose specified in the notification ezplanaticm-lf the state government, in the case of any factory or any gur rab or khandsari sugar manufacturing unit, situate outside uttar pradesh, so declare, any place in uttar pradesh set apart for the purchase of cane intendect or required for use, oonswnption or sale in such factory or in such gur, rab or khandsari sugar ~ufacturing unit shall be deemed to be the premises of the factory' or of the gut, rab or khandsari sugar manufacturing unit, as the case may be (2) the cess imposed under sub-section (1) shall be payable by the owner of the factory or df the g-ut rab or khandsari sugar manufacturing unit and shall be paid on such date and at such place as may be prescribed (3) any arrear of cess not paid on the date prescribed under sub-section (2) shall carry interest at 6 per cent per annum from such date to date of payment (4) the state government may, for the purpose of assessment and collection of the cess appoint officers and authorities and may also prescribe the manner in which the cess shall be assessed and collected -(5) where any person is in default in making the payment of the cess, the ofticer or authority empowered to collect the cess may direct that in addition to the amount of the arrears and interest a sum not exceeding 10 per cent thereof shall by way of penalty be recovered from the person liable to pay the cess (6) the officer or authority empowered to collect the cess may forward to the collector a certificate under his signature specifying the amount of arrears including interest due from any persoll, and on receipt of ~ch certificate the collectql' shall proceed to recover the amount specified from such person as if it were an arrear of land revenue (7) any sum imposed by way of penalty under sub-section (5) shall be recoverable in the manner provided in sub-section (6) for the recovery of the arrears of cess gnd of 3-a (1) no gut, rab or khanclsari sugar manufacturing unit, l~ for other than a unit, which has obtained a licence under the uttar pra-=:r- desh khandsari sugar manufacturers licensing order, 1959, shall nib without obtaining a licence from the sugar c<munissioner, carry on or undertake any process connected with the manufacture or production of gut' or rab (2) an application for a licence under sub--section (1) shall be made to the sugar commissioner in such form and accompanied with a treasury chalan for· such fee as maybe prescribed (3) an application for the grant or renewal of a licence under sub-section (2) shall be disposed of by the sugar commissioner as expeditiously as may be possilble and shall not be rejected except in a case, where the sugar commissioner is of the opinion that it is necessary or expedient so t<j do in the public interest with a view to ensure adequate supplies of cane to a factory for keeping it fully engaged in the whole of the crushing seuon (4) any person aggrieved by the order of the sugar commissioner under sub-section (3) may, within thirty days from the date of the said order, prefer an appeal to the state government whose decision thereon shall be final (5) in case of rejection of an application for grant or renewal of a lieence, the applicant shall ,be entitled to a refund of the licence fee paid after the expiry of the period of limitation prescribed for filing an appeal against that o'rder or on the rejection of the appeal (6) in case the applicant, of his own accord, returns the licence within 15 days of its receipt and satisfies the licensing authority that he has done nothing under it, he shall-be entitled to a refund of the licence fee 3-8 (1) a licence granted under section 3-a shall be valid for renewal or the period of twelve months commencing from october i, each year, iic:ences but may on application made, not less than thirty days before the expiry of the said period be renewed from time to time for a period not exceeding twelve months reckoning from october 1, subject to payment of such fees as may be prescribed (2) a licence granted or renewed under this act may, on payment of such late fee as may be prescriibed, be also renewed in eases where the application for renewal has been made beyond the period fixed therefor under bubo-section (1) 3-c (1) the sugar commissioner may, in case of contravention conditiods of any of the provisions of this act o'r of the rules made thereunder ~r susped-or of any of the conditions of the licence, suspend or cancel a licenc~ ~~ft'l!d ':fgranted or renewed under this aet, or refuse renewal of the same a liccdc:e - (2) aily person aggrieved with the order of the sugar commislioner under sub-section (1) may, within such period as may be prescribed, prefer an a~al to the state government whose decision thereon shall be final (3) the cancellation or suspension of a licence under sub-section (1) shall not entitle the licensee to any compensation ar to the refund of any fee paid in respect of such licence powcn of 3-d (1) the sugar commissioner may, for the purposes of this the s~ act-cojdllus81oncr (a) require the owner of a gut, rab or khandsati sugar manufacturing unit to maintain, furnish or produce such records, data or infurmation as may be prescribed; and (b) enter and search any premises of a gut, rab, khandsati sugar manufacturing unit, or seize and take into custody any of the implements connected with the manufacture or production of sugarcane juice, gut or tab of a unit or the products thereof if any contravention of the act ar of the rules made thereunder, or of the conditions of a licence, is believed or apprehended (2) the sugar commissioner may delegate all or any of the powers, conferred on him under sub-section (1) on any officer subordinate to him peualties 4 if any person defaults in the payment of cess imposed under sub-section (1) of section 3 or commits breach of any of the provisions of this act, or, contravenes any pro'vision of any rule made under this act, he shall without prejudice to his liability therefor under sub-section (5) of section 3 be liable to imprisonment up to six months or to a fine not exceeding rupees five thousand or both and in the case of continuing contravention to a further fine not exceeding rupees one thousand for each day during which the contravention continues idititutiod 5 (1) no prosecution shall be instituted under this act e:fccept r;:roceedupon complaint made by or under authority from the cane ""com-inissioner or the district magistrate (2) on the application of a person accused of an offence under this act, the cane commissioner or with the previous concurrence of the cane commissioner the district magistrate may at any stage compound such offence by levying a composition fee not exceeding rupees five thousand (3) no court inferior to that of a magistrate of the second class shall try any offence against this act or any rule made thereunder  - special 6 notwithstanding anything contained in section 32 of the code powcn of mqiltrate of criminal procedure, 1898, it shall be lawful for a magistrate of the first class specially empowered by the state government in this behalf and trying any case under this act or any :rule made thereunder to pass a sentence of fine not exceeding five thousand rupees on any person convicted for any offence under this act 7 (1) no suit, prosecution or other legal proceeding shall lie p~tect:fof against any person for anything which is in good faith done or =:: the en intended to be done in pursuance of any order or a rule made under act this act (2) no suit or other legal proceeding shall lie against the state government for any damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of any rule made under this act s (1) where the owner of a factory or a gur, rab or khand- determinasari sugar manufacturing unit is a firm or other association of indivi- ~f':; 0/::; duals, anyone or more of the partners fir members thereof would be purpose of the owner for the purpose of the act and may be prosecuted and tbi' act punished as such for any offence under the act (2) where the owner of a factory or a gur, rab or khandsari sugar manufacturing unit is a public company anyone or more of the directors thereof, or, in the case of a private company anyone or more of the shareholders thereof may be prosecuted and punished under this act for any offence for which the owner of the factory or the gur, rab or khandsari sugar manufacturing unit is punishable 9 (1) section 20 of the sugarcane (regulation of supply and purchase) act, 1953, is hereby repealed (2) without prejudice to the general application of section 24 of the u p general clauses act, 1904, every notification imposing cess issued and every assessment made (including the amount of cess collected) under or in pursuance of any such notification, shall be deemed a notification issued, assessment made and cess collected under this act as if sections 2, 3 and 5 to 8 had been in force at all material dates (3) subject as provided in clause (1) of article 20 of the constitution every' notification issued, cess imposed and act or thing done or omitted between the 26th day of january, 1950 and the appointed date in exercise or the purported exercise of a power under section 29 of the u p sugar factories control am, 1938, or of section 20 of the u p sugarcane (regulation of supply and purchase) act, 1953, which would have been validly and properly issued, imposed, done or omitted if the said sections had been as section 3 of this act, shall in law be deemed to be and to have been validly and properly -imposed and done, any judgment, decree or order of any court notwithstanding 10 (1) the state government may make rules for carrying out the provisions of the act (2) without prejudice to the generality of the foregoing power, such rules may provide for-(a) the manner and the form in which certificate may be forwarded to the collector under sub-section (5) of section 3; (b) collecting any information or statistics for the purposes of this act; (c) the form and the manner in which any return shall be prepared and furnished; (c-i) the form of an application for a licence, and the terms and ocmditions of a licence under this act and the fee or the late fee to be charged for the grant of a licence; (d) the matters which are to be and may be prescribed (3) the power to make rules under sub-sections (1) and (2) shall include the power to make rules with retrospective application so however that the rules so made shan not have eftect prior to twentysixth day of january, 1950 (4) all rules made under this act shall be laid before the state legislature, as soon as may be, after they are made and shall be subject to such omissions, alterations and additions as the legislature may make in the sessions they are so laid: provided that any rule having retrospective application shalllhot come into force until fourteen days after its copy has been laid on the table of the legislative assembly a blll to validate the imposition and collection of cesses on sugarcane under certain acts of uttar pradesh the president has, in pursuance of clause (i) of article 117 and clause (1) of article 274 of the constitutlon of india, recommended to lok sabha the introduction of the bill - m n kaul, secretary (shri morarji desai minister of finance)' 