 the central excises· and salt (amendment) bill, 19s6(as introduced in lolt sabra)  the central excises and salt (amendment) bill, 1956 (as introduced in lok sabra) a billfurther to amend the centtal excises and salt act, 1944 be it enacted by parliament in the seventh year of the republic of india as follows:-1 this act may be called the central excises and salt short title (amendment) act, 1956 5 z in the first schedule to the central excises and salt act, 1944, amendm~t in item no 12,-of the fmt (a) in sub-item (1), for the words 'two annas and six pies l~ed;e, or per square yard', the words 'six annas per square yard' shall be 1944 substituted ; )0 (b) in sub-item (2), for the words 'one anna and nine ries per square yard', the words 'six annas per square yard' shal be substituted;  (c) in sub-item (3), for the words 'one anna per square yard', the words 'four annas per square yard' shall be substituted; , is (d) for sub-item (4), the following sub-item shall be substituted, name1y:-:10 "(4) cotton fabrics, coars~that is to say, fabrics in which the average count of yarn is less than 178 four annas per square yard"  declaration under the provisional collection of taxes act, 1931it is hereby declared that it is expedient in the public interest that the provisions of clause 2 of this bill shall have immediate effect under the provisional collection of taxes act, 1931  statement of objects and reasonsduring the last few months, prices of mill cloth have recorded increases which are out of proportion to the increase in cotton pricel, the following table of indices gives the trend of prices of both cotton cloth and cotton: ,---------coami mdlvm fine stlpbitmu | coth    | cotton    ||---------|-----------|| cloth   |           || cotton  |           || cloth   |           || cotton  |           || cloth   |           || cotton  |           || month   |           || price   |           || mix     |           || price   |           || mix     |           || price   |           || mix     |           || price   |           || mix     |           || 195     |           || 6       |           || price   |           || price   |           || price   |           || price   |           || jan,    |           || 39'60   | 14'35     || 46'j3   |           || js'l~   |           || 65'60   | a9'7a     || jop'37  |           || 40'61   |           || pcb,    |           || 39'60   | 14'35     || is'la   | 6s'80     || ~9'72   |           || lop '80 | 40'61     || march,  |           || 4j '37  |           || j4'3s   |           || 50'56   |           || 18'ia   |           || 73'6;3  | 39'72     || jsz'so  | 40'61     || april   |           || 4s'50   |           || is'oi   |           || 58'8!!  |           || 18'16   |           || 75'67   |           || 33'06   |           || 15      |           || 8'50    |           || 47''''  |           || may     |           || 47'57   |           || is'oj   |           || 64'90   |           || 18'16   |           || 84'3(1  |           || 33'06   |           || 16      |           || 4'80    |           || 47'34   |           ||  june  |           || 46'7   |           || 8       |           || 15'01   |           || 64'93   |           || 18'16   |           || 83'70   | 33'06     || 16s'si  |           || 47'34   |           |2 in a typical case, namely, long cloth of the medium category, the statement below will show how wholesale prices have risen by one anna per yard between april and august 1956 even though on the basis of the current costs, the ex-mill price of the cloth, as determined by the formula prescribed by the tariff commission, should remain unaltered: ,,:ill febrau-y aprll aquat 1956 19$6 19s6 8& a p, ri, a p, ri, a p, (i) whole_ price per yard 1 i 0 j i 6 j a 6 ~) pair ex-mill price 0 14 sl 0 i~ ii 0 j4 11 (3) i!zcise duty indudida bandloom cess 0 0 sl 0 j 3 0 1 3 (4) wholesaler's margin 0 0 6 0 0 6 0 0 6 (5) wholcaaler's price i 0 0 i 0 8 i 0 8 (6) &tra profit made by the wholesaler 0 i 0 0 0 10 0 i 10 in certain qualities such as coarse drill, the extra profits are as high as 40 per cent, clearly, advantage has been taken of the larger demand for cloth to earn unreasonably high profits, 3, it is necessary to mop off these extra'profits and the proposal in the bill is intended to achieve this object, as market conditions vary from time to time, it is d~able to have some flexlbuityin the hands of government to deal with the situation as it arises from time to time, , _'i' i 4 the duties proposed in the bill are 4 annas per sq yd on coarse and medium cloth and 6 annas per sq rd on fine and superfine cloth it is not intended, however, imme(ilately to enforce these rates to the full extent some increases are being made now and it is the intention that a constant watch be kept ()n the movement of prices and to the extent that excessive profits are made in relation to the fair ex-mill price as worked out on the basis of the formula of ·the tariff commission, an increasing percentage of such profits may be taken away as excise duty correspondingly, if prices indicate a downward trend, necessary adjustments will be made in the excise duty 5 under the provisional collection of taxes act, 1931, the rates proposed in the bill become effective from the midnight of the 31st august 1956 simultaneously, however, a notification is being issued under rule 8 of the central excise rules, 1944, by which exemptions are being given from these ceiling rates so as to make the following rates of duty effective from the 1st september, 1956, as against the current rates shown in the preceding column: per square yard (exclusive of handloom oess) current propoeed rates rates 0 2 6 0 4 0 0 j 9 0 3 0 0 i 0 0 2 0 (0) superfine (li) fine (c) medium cd) coarse (dhoties and &arees) 0 0 6 0 0 6 0 j 0 0 i 6 <o!) coarse <all other varieties) government are satisfied that the rates proposed above are sufficient to take care of the present situation new delili, t t krishnamachari the 31st august, 1956  billfunher to amend the central excises and salt act, 1944 the president has, in pursuance of clause (1) of article 117 and alause (1) of article 274 of the constitution of india, recommended to the lok sabha the introduction of the bill m n kaul, secretary (shri t t kri,jmamachari minuter oj commeru and industry) 