 to 'me levy sugar price eqjallsation fund (ameniment) bill, '19~4 -  , (to lelas introduced in 1ok'sabha)1 page 1,-against line 19, in the marginal ci tation, for "1 of 1955" ~ "1" of 1955" 2 page 2, line 34,~  !cl: "extend" ~ "extent" 3 pa~e " line 12,-om1i "as" 4 page 11,-aga1ns~ section 13, insert the marginal heading,-''p enal tie s "  new delhi; maya 1,84   bid ~o 51 of 1984 the levy sugar price equalisatlon fund (amendment) bill, 1984 a billto ame1~d the levy sugar price equalisation fund act, 1976 short title bj it enacted by parliament in the thirty-fifth year of the republic of india as follows:-::-i __ ' ,   1 this act may be called the levy sugar price equalisation ~'und (amendment) act, ,1984 _'_' -'~_: __ i _j1 31 of 1978 5 2 in section 2 of the levy sugar price equalisation fund act, 1976 (hereinafter referred to as the principal act),-amendment of ection 2: (a) in clause (b), the following e~lanation shall be inserted and shall be deemed always to have been inserted,namely:-to "e~lanation-for the removal of doubts, it is hereby declar  ed that wheje in relation to levy sugar of any grade sold by any prq<iuctlr, the producer has realised towards duties of excise with respect to such sugar any amount in excess of the amount payable by way of such duties~ such excess ,shall also be deemed to be excess realisation within the meaning of this clause;"; (b) for clause (e), the following claube shall be substituted and shalf be deemed always to have been substituted, namely:-, (e) "levy sugar" rneans' the sugar requisitioned by the ct:lltral government under clause, (f) of sub-~tion (z) of 'section' a of the essential commodities act 1955' so' inaection 3 of the principal act-(0) in sub-section (2), in the epening portion, for the wolda brackets and figure "provided in sub-section ,(4)  , the 'w'ol'di brackets and figure i!provided in sub-section ,(5)'t &hall be substituted; ,(b) in i)llb-section ($) ,-; (i) in the opening portion, for the words, brackets and fibure "provided in sub-section (4) ", the words, brackets and llg11~e "provided in sub-section (5)" shall ~ substituted; (ii) the following proviso shall be injerted at the end, namely:-10 "provided that-,(0) the interest due on so much of any amount of any excess realisatlon' made before the date of commencement of the levy sugar price equalisation fund (amendment) act, 1984, as' is not credited to the fwld 15 together with interest at the aforesatq nht,: ul twelve and ii balf per cent per annwn before the expiry of sixty' days from th~ ciate of such commencement; and (b) the interest due on so much of, the amount of any exce~ realisation made on or after the date of iuch 10 commencement as is not credited tq the i'und together witt interest at the aforesaid rate of twelve and a half per cent per annum within sixty days from the date on which such amount was realised, shall be at the rate 01 fifteen per cent per annum from the 15 date on which such amount was realisoo by the producer"i (c) sub-section (4) shall be omitted; , , (d) in sub-section (5) ,-(i) in the opening portion, for the words, brackets and flaure "interim order referred to in sub-section (4) ", the words "interim 80 order made by any court, whether before or after the couunencement of this act" shall be substituted; (ii) in the concluding portion, for the words lior in &dr court of appeal or revision, credit such amount, to the extend it represents any excess realisation, to the fund", the followijli 35 ahall be substituted, namely:- i provided tbat-(i) the intere&t dae on so much of such amount as wd's realised before the 'date of co~wlcement of the 45 levy sugar price equausation fund (amendment) act 1984 and is not credited to the fund together with tnt rest at the aforesaid rate of twelve and a half percent per annum before the expiry of sixty days from th date of such commencement, and 5 10 (ii) the interest due oil so much of such amount as is realised after such commencement and not credlted to the fund together with interest at the aforesaid rate of twelve and a half per cent per annum within sixty c:jays from the date on which such amount was realised shall be at the rate of fifteen per cent per anntml from the date on which such amount was realised by the producer"; (f!) after sub-section (5), the fonowing sub-section shan be insert ed and shall be deemed always to have been inserted, namely:-'5 10 "(sa) notwithstanding anyth!ng contained b sub-sectloll (5), the interest payable on the amount of any excess l"9alisatioll required to be credited· to the fund under that su1)sectfon ill respect of any period during which such amount was by reason of any order of any court held by the producer with ant other person or with any court, government, bani or other authority referred to in clause (a) of that sub-section shallbe the fnterest which actually accrued on such amount in respect of such perfod "; (f) after sub-sectfon (sa) as so inserted, the fonowlng subseetions shall be inserted, namely:-j (8)' without prejudice to the provisions of sub-section (5), any amount r~presellting the difference between the controlled price and the interim price allowed by the court which-(4) is held by any producer with any other per190n or with any court, government, bank or other authority referred to in clause (4) of that sub-section, or  (b) is under the cover of any guarantee referred to in clause (b) of that sub-section, 35 shall as soon as may be after the final disposal of the proceedings of the court aforesaid, b~ credited, to the extent such amount represents excess fealisation togeth~r with the intereet, if any, which has accrued thereon or been ~aranleed in respect thereof to the flldd by such other person the court, government, bank or other authority aforesaid or as the case may be, by the bank or other person furnishing such guarantee and the amount f;o credited shall be set off against the amount (including interest)  required to be credited by the producer under sub?section (5) 45 (sc) the p~ovisions of sub-section (58) shlll1 npply in relation to every amount representing the difference between the controlled price and the interim price allowed by the court which immediately before  the commencement of the l"!yy sugar price equalisation fund (amendment) act 1984-(~ is held by any producer with any other person or with any court, government, bank or other authorlty m'!ntioned in clause (a) of that sulrsection, or (b) is :under the cover of any guaran~ee mentioned in clause (b) of that'su\)section, notwithstanding that the final disposal' of the proceedings of the eourt aforesaid took place before such commencement and for this purpose the reference in that sub-section to "final disposal ~ of the proceedings of the court" shall be construed as 'a reference " to such commencement  (5d) where any amount is credited to the fund under subsection ($b), such crediting shall,-(a) in a c8be fauil\g under clause· (a) of that sub-section, 10 'operate as th~ discharge of the liability in relation to such amount of tbe person, court, government, bank or other 'authority so crediting the amount;  (b) in a case fallinj;! under clause (b) of that sub-sec-\ion, have effect as if it' had been made in accordance with 15 the guarantee /riven by the bank or other person crediting ,the amount and for this p~rpose such guarantee shall be deemed to have provided for such crediting' amend-ment of aeetion ~ t in  beetion ii of the principal act, for the words "the produaer by whom surh amount is credited", the words "the producer concerned" 20 shall be substituted 5 in section 6 of ·the principal act,-amend ment of il4ction 6 (a) in sub-section (1), in the proviso,-(i) in claus~ (b), the word "or" shall be inserted at the end and shall be deemed always to have been inserted; ~5 (ii) after clause (b) thp fonowin~ clause shall be inserted and shall be de'!!med always to hav{'! been inserted namely:-tc (c) beinlr a oerson who i'!!not a wholesale dealer or a retail aealel' had l')8!1sed 0:0 the incidence of such 'excess over th~ control1pti or fail" nricp 'of levy su~at to anvother person go as part of the -once of anv llrdduct in the manufacture of which such su~ar has been ured ot' a's the ~a~e mav be to the consumer by whom the pri('e of such stt!!at' wa~ paid"; (b) in mb·sectioq (3) for fhl' worn" ''e~~ ""i11i~tton mqde front 'hfm" fbi" worn" ""~~~4/ ,  li!118t1on m  fton", hem top,0''h,r 35  witlt int  rprl n, anv) fhf>1'oon (tptfife" tn t'hp fund" ~"qn be mbstl fnf  t1 rnd ",had be deemed :illwl1vs til 'hltvl' hp  q~ff"tet1 r tn spction 11 of the nrincioa1 act for the words "anv excess realisa~ tion~ ma~(' bv h;m or :lntr '[lart thereof such excess realisations or such amendment of section 11: part~' thp words "an" ex('p~~ reausfltion made bv him, or any interest 40 rlue on such excess reali~a1ion or any oart of such excess realisation or interest such exces~ ·realisation or such interest or  such' nart" shall be substituted and ~hall be d~med always to hnv~ oeen substituted amend ment ot section 13, 7 in section 13 of the principal act, in suh-section (1) ,in clause (ii), after the words "any excess realisations made by him or any j>art thereof", the words "any excess realisation made by him or any in~erest due on such excess realisation or any part of -such excess realisation or interest" 5 shall be substituted  validation'and saving 8 (1) notwithstat)ding any judgment,· decree dr order of any court, tribunal or other authority, any thing or action done or taken or purporting to have been done or taken under the provisions of the principal act before the commencement of this act shall, for all jkl:l'pose8, be jo deemed to be, and to have aiways been, as validly ana eft'ectiv'ely done or taken a!'l if the amendments made to the principal act by section 2, clause (e) of section 3, section 5 and section 6 had been in force at all material times (2) for the removal of doubts, it is hereby declared that no act or 15 omission on the part of any person shall be punishable as an offence which would not have b~n so punishable if the provisions of section 2, clause (e) of section 3 section 5, section 6 and sub-section (1) of this flection had not come into force  the following are the important amendments which the bill seeks t,o make in the act: - (a) the definition of "extess realisation" is being amended with retrospective effect to spell out expressly that excess realisation includes not only the excess price charged by the producer but also any amount charged by the pfooucer by way of duties of excise in excess of the amount payable by way of such duties [!'ide clause 2 (a) of the bill] (b) the definition of "levy sugar" contained in section 2 of the act incorporates by reference the meaning assigned to that expression as in the levy sugar supply (control) order, 19'12 it is proposed to make the definition s~lf-contained with retrospective effect [vide clause 2 (b) of the bill] (c) with a view to securing 8pe~y crediting of excess rea1i~ &ation to the fund, the existing rate of interest of 12+ per cent per annum is being allowed only in cases where the excess reallsatiolul are deposited within the prescribed period of sfxty days from the date of excess realisation or iu'i the case may be, the final disposal of a case by a court in cases where the excess t'!alisations are not credited to the fund within this period provision is ~nl! made for chargidj~ interest at the higher rate of 15 per cent per annum the con~tonal rate of interest of 12+ per cent per annum would, howoever, apply for a period of sixty days from the commencement of the proposed legislation in respeet of excess realisations made before such commencement rvide clause 3 (b) (ii) 'lid c}aub~ s(d) (ti)' of the bill it is also bein~provided witli rarospective effect that in respect of any period durincr which any excess realisation ib by reason of any ord~ of court held hv the droducer with ahv other penon 01" a bank or the government the nroducer will b~ liable to pay bv way of interest onlv surh amol1"'t if anv ar har accrued bv way of interest in respect of such period [vide claus,! 3(e) of the bil11 (d) accordin~ to 81lb-section (4) of seetio,, ~ of the ad durin~ the oendt"ticy nf t>~dinitr in anv court ~hanenpinlt the nl'i,e fixatinn order it shall not be necesrarv for the t)l'orlu"~" to ctprlft the difference between the controlled nrice a1'l~ the hi~her nrice charlzed to the fund unless the court which mad, the interim order so directs this provision is merelv declaratory in nature however all ar~ts have been advanced on the basis of this nrovfslon that even after the disposal of the nroceedlnsrs the exc!esb rea1isa~on as d4)termined in accordance with the deci~fon of the eourt need not be credited to the fund unlesq a specific order to that ~ffect is made bv that court, it is nroposed to omit the subsection [vide sub-clauses (a), (b) and (c) of clause '3 of the bill} (e) at present, the amounl representi,ng excess realisations held by a producer ,with a third party by virtue of an order of court cannot be credited to the j!'und dlrectly by such third party as the liability is cast on the producer to credit to the fund the excess realisations with a view to securing speedy creditng of such amounts to the fund (which incidentally would also help the producers concerned in reducing their liabillty towards interest) i provision is being made for crediting of such amounts by such third parties directly to the !t'und [vide sub-clause (f) of clause 3 of the bill] (f) section 6 of the act which provides for refund of excess reahsation to buyers of levy sugar is intended to be available only to such buyers as had not passed on the incidence of ex~s price to other persons it is proposed to make this intention clear with retroepective e1fect by providing that refund will not be allowed under the section to buyers of levy sugar who are not dealers but who had passed on the incidence of tile excess price as part of the price of any product in the manufacture of whi<:h the levy sugar purchased by them had been used or, as the case may be; to the consumer by whom the price of such sugar was paid the section is also being amended "with retrospective effect to provjde that refund would be "made under the section not only of excess realisation but also of the interest, if any, thereon which has been credited to the fund [vide clause :; of thebwl (g) section 11 of the act which provides for recovery of excess realisation as arrears of land revenue is being amended to provide that interest on excess realisations which is required to be credited to the fund can also be recovered in the same manner [vide clause 6 of the bw] (h) section 13 of the act is being amended to provide for punishment for default in crediting to the fund any interest on excess realisation [vide clause 7 of the bill] 2 the bill seeks to achieve the above objects bhagwat jha azad n:sw delhi; the 5th may, 1984  president's recommendation under article 117 of the constitution of india[copy of letter no 1-lo/76spf, dated the 7th may, 1984 from ~~ bhagwat jha azad, minister of state of the ministry of food and civil supplies to the secretary-general, lok sabha] the president having been informed of the subject matter of the proposed levy s~gar price equalisation fund (amendment) bill, 1~ recommends the introduction of the bill in lok sabha under article 117 (1) of the constitution sub-clause (b) of clause 5 of the bill seeks to amend section 6 of the levy sugar price equalisation fund act, 1976 to provide for the refund under that section of interest on excess realisations credited to the fund such refund will be ordinarily made from the fund itself and would not, therefore, involve expenditure from the consolidated fund of india however, when the amount standing to 'the credit of the fund is not sufficient to enable the making of refund from the fund itself, the refund will have to be made from the central revenues further, in the event of the dissolution of the fund under section 12 of the act, the amounts lying, to the credit of the fund will have to be credited to the central revenues ai}d any cla,ims for refund thereafter will have to be made from out of the central revenues in these contingenci~, expenditure would be involved· from the consolidated fulld of india as such contingencies  would be exceptional, it is not possible to estimate th~ expenditure, if any, which may be involved by way of refund from the central revenu~ the provisions of the bill do not involve any other expenditure of a recurring or non-recurring nature  memorandum regarding delegated legislationthe bill does not contain any specific provision for the delegation of legislative power however, clause5(b) of the bill, which seeks to amend section 6 of the act relating to refund so as to provide also for refund of interest on excess realisations, will have the effect of expanding the scope of clause (b) of sub-:section (2) of section 16 of the act relating to the power to make rules in respect of the form in which an application for refund will be made as this relates only to a matter of detail, the delegation of additional legislative power involved is of a donnal character ': :'j:'"1 ••  (31 of 1976)    2 in this act, unless the context otherwise requires,-definitions (a) "controlled price" means the price of the relevant grade of levy sugar, determined from time to time under sub-section (3c) of section 3 of the essential commodities act, 1955, or under the defence 10 of 1955 and internal security of india rules, 1971 in relation to any year of production; -   - (e) "levy sugar" has the meaning assigned to it in the levy sugar supply {control) order, 1972, published with the order of the government of lndia, in the late ministry of agri(:ulture (department of food), no gsr' 310,(e) less comisugar, dated the 15th june, 1972; - - -  - 3(1)   -  - (2) save as otherwise provided in sub-section (4), there shall be credited to the fund, in such manner as may be prescribed-levy sugar price equalisation fund (a) the amounts representing all excess realisations made by the producers, irrespective of whether such excess realisations were made be(ore or after the commencement' of this act; - - - (3) save as otherwise provided in sub-section (4), shall,-- every producer '!' "i (a) in the case of an excess realisation made before the commencement of this act, within thirty days from such commencement, (b) in the case of an excess realisation made after such commencement, within thirty days from the date on which such exce5s· realisation was made, credit to the ,fund, the amount repre~nting such excess realisations, together with interest due thereon at the rate of twelve and a half per cent per annum, from the date' on which such amount was realised by him (~) where, by virtue of any interim order made by any court, whether before or after the commencement of this act-  ' (a) amounts representing the difference between the controlled price and price allowed by any court by an order made in this behalf, have been, or are required to be,- (i) kept with the producer himself, or (ii) kept deposited with, or in the custody of, any court, or (iii) kept deposited with, or in the custody of, any government, bank, authority or other person; or (b) any, amount in excess of the controlled price has been col  lected and kept by the producer under the cover of any guarantee given in pursuance of such order, ;'1 i ~ ' '  t it shall not be necessary to credit such amounts ~o the fund so long as the court which pa~sed the interim otder does not so direct (5) where, in pursuance of an interim order referred to in sub-section (4) any amount representing the difference between the controlled price and the interim price, allowed by the court is,-(a) held by any producer either with himself or with any ot'lier person or with any court, government, bank or other authority, or (b) collected and kept by the producer under the cover of any guarantee, such producer shall, on the final disposal of the proceedings of the court aforesaid, or in any court of appeal or revision, credit such amount, to the extent it represents any excess realisation, to the fund '" '" '" '" 5 where any amount is credited to the fund under section 3, the producer by whom such amount is credited shall, upon such' crediting, be discharged from the liability to make repayment of such amounts to the  persons entitled thereto and such discharge from liability to make repayment shall be without any prejudice to any penalty which may be imposed on such producer for each ex~ess realisation made by him ", 6 (1) where any amount is credited to the fund, a refund sruin be made from the fund to the buyer of levy sugar from whom any excess discharge ot persons of liability in respect of amounts credited to thft fund right of buyer to claim refund rea]j~ation was made by the producer or dealer: ' provided that no buyer shall be entitled to claim a r,fund under this su b-section if he,-'" '" '" '" (b) being a retail dealer, had passed on the incidence of such  excess over the controlled or fair price of levy sugar to the consumer by whom the price of such sugar was paid  '" - - '" (3)the central government shall, if satisfied, on a scrutiny of the claim made under sub-section (1), that an excess realisation was made frem the  claimant direct that re~und be made from the fund to the claimant to the extent qf the excess realisation made from him: provided that if the amount standing to the credit of the fund is not sufficient to enable the central govemment to make the refund,  su'ch refund shall be made from the central revenues - - - - 11 if any producer makes any default in crediting to the fund any exce:es realisations made by him or any part thereof, such excess realisations or such part, as the case may be, shall be recoveiabie by the central government from such producer as an arrear of land revenue - - '" - - power of central government to· recover excess rl'alisadons as arrears of land revenue 13 (1) if any producer-, (a)· make any default in crediting to the fund any excess reali· satiods made by him or any- part thereof, or - 110 lti - -  a billto amend the levy sugar price equalisation fund act, 1976  - ---" i •• , 0,1', (shri bhagwat jha azad, minister of state of the ministry of food and civil supplies) 