1 - the t'jbacco board ( amendment) bill, 1978 l-to be/as introduced in ipk sabha 7page 4, line 35,-for 11on 11 read "at" line 9,-2 "auct on 11 read "auction" page 5, for page 6, 3 a,iter line 3,-"of the ii in�ert "1b b ac co bo ard1tnew delhi; mav 1, 1978 vaisakha 11, 1900 (saka)  bill no 79 of 1978 the tobacco board (amendment) bill, 1978 a billto amend the tobacco boa,-d act, 197s   ba it enacted by                      parliament in                                       the                                            twenty-ninth                                                           year ot the republic of india as follows: -  1 this act may be called the tobacco board (amendment) act,                                                                  short1978                                                        ;  < ! ":i · r                                                                  title4 of 1976 to as the principal act),-s       z in section 4 of the tobacco board aot, 1976 (hereinafter referred                                                                                                           amend­                                                                                                           ml!llltot                                                                                                            section                                                                                                            4 jo (a) for sub-section (3) , the following sub-section shall be sub­atituted namely: -'' (3) the head office of the board shall be at guntar id the state of anclhra pradesh or at such other place·· as the central government may, by notlflcatlon id the ollclal gazette, specify and the board may, with the previous approval of the central government, establish ollcea or areacles at other placel id or outside india"; i 5 (b) in sub-section ( 4) ,-, • (a) in clauie (c) ,-(i) for the word "  ven", the word "eipt" hall be iubttituted; (ii) in aub-clause (vi), the word "and" occurrin at the end shall be omitted;  (iii) after sub-clause (vi), the following sub-claute shall s be inserted, namely:-- ~~ "(via) the government of gujarat; and"; state of than the shall be to (b) in clause (di), for the words "other than the andhra pradesh and karnataka", the worda "other states of andhra pradesh, gujarat and karnataka" substituted a in section 8 of the principal act, in sub-section (!), after claum (e), the fbuowing clause shall be inserted, namely:- (ee) establishment by the board of auction platforms, wtua the prevloils approval of the central government, tor tbe sale of virjbala is tobaceo by registered growen or curen, and tunctlonide' of the board as an aoctioneer at auction plauonns established by 01' r~­tered with it subject to ncb conditions as may be spectfted by the c:-t;nl government," " in section 13 of the principal act, the words "or etabllshed by the 20 board 1dlder tala act" shall be inserted at the end  amad ment of hetlon 11  •i after section 14 of the principal act, the touowin, aeetion hall be inserted, namely:-"14a (n where virginia tobacco is sold at any auction platform e8tabushed  by the board under this act, it shall be ~t for 25 the board or for any officer of the board autkorised by it in thts ~balf to levy fees, for the services rendered by the board in relation to such sale, at such rate not exceeding two per ceat ot the value of such tobacco as the central government may, from time to time, by notification in the offtcial gazette, specify 30 (2) the fees levied under sub-sectton (1) shall be c:01lected by the board oj" such officer equauy from the seller of the vbtflnia tobacco and the purchaser of such tobacco, in such manner as may be prescribed "  "  , • in section 32 of the principal act, in sub-section (2), after c1au18 )5 (h), the following clause shall be inserted, namely:-amad· mat 01 l8etionu "(m) the manner of eouliction of fees under lub-teetion (i) of uoa 1~;"  7 id the tobacc:o cets act, 19'75,-(0) in section 2, in sub-section (1) ,-amedmentof act _01 11m (i) clauses (a) and (b) shall be ~~ed as clau118 (&) and (c) respectively and befo", c'lauke (b) ie 10 re-lettere4 the following clause shall be inserted, namely:-~ o11t70 i (4) "auction platform" means an auction platform registered with the board in accordance with the rul mad under the tobacco board act, ms or established by the board under that act;'; -(ii) clause (c) shall be omitted; 5 (b) in seetion 3, for the words "a registered auction platform" wherever they occur, the words "an auction platfbnn" shall beu, stituted in pursuance of sub-section (1) of section 4 cd the tobacco board act, 197~ (4 of 1975), the tobacco board was established by the central government on the 1st january, 1976 in the course of the functioning of the tobacco board, certain practical difficulties have come to light 2 sub--section (3) of section 4 of the act has specifically designated guntur in the state of andhra pradesh as the place where the head office of the board is to be located guntur is a very important centre from the point of view of production and marketing bf virginia tobacco which is the most important exportable variety grown in the country however, this place has no direct rail or air link with either new e>elhi or the capitals of other tobacco producing states in the country since the tobacco board is an all india body, dealing with all varieties of tobacco, it is ctmsidered vital for its efficient functioning that the central government should have the power to locate the head office of the board atsuch other place as may be considered necessary in the interests gj, efficient functibning of the board 3 in recognition of the importance of gujarat as the second largest tobaeeo producing state in the country after andhra pradesh, even though the tobacco produced there)8 primarily of non-virginia type, it j8proposed to accord a permanent seat on the board for €he representative of the government ot gujarat as in the case of andhra pradesh and klmataltu 4l urder section 13 of th~ act, no registered grower or curet ~au ell or cause to be sold virginia tobacco elsewhere than at an auction platfarm registered with the board in accordanc~ with the rules madeundlr the act this provision as well as the functions of the board specified in i4kliion 8 ~ not specifically empower the board to set up auction platfonns of its own or tv function as an auctioneer at such platforms for securing fair and remunerative prices to the growers and for pr~ viding efficient auction facilities it is considered necessary that the board should also have the power to set up its own plattorms~ it ,li considered further that the board should also have the power to function as an ~uctioneer not only on such platforms, but also at platforms which may be set up by others and registered with the board   1 there is 'at present no specified provision in the tobacco board act, l8'f5 for'levy and collection of suitable fee from the sellers and buyers of virginia tobacco tor the use of the auction platforms that may be established by the tobacoo board and for the services to be provided in connection with the auctions to btheld at these platforms it ia colllidered necessary to make such provision i'or meeting the expellees to be incurred by the board in conducting auctions and in operattna these platforms: 6 it is also proplosed to make certain consequential amendments to sectionll 2 and 3 of the tobacco cess act, 1975 (26 ot 1975) so as to bridl within the scope of the definition of "auction platform" an auction platform established by the board 7 the bill seeks to five effect to the above objects nzw da&1; th, unci april, 1978 mohan dhalua clause 2 of the bill seeks to amend sub·section (a) of section 4 of thd tobacco board act, 1975, so a:i to empower the central government to locate the head office of the tobacco hoard, either at guntur or at such other place as may be specified by it 2 clause a seeks to amend sub-seclion (2) uf section ~ of the act so as to enable the tobacco hoard to establish auction platfornu; for the aaie of· virginiatobaceo by registered ip:owers or curers and to function as an auctioneer at such plauorms or at aueton platforms l'eiistered with it   ' 3 the aforesaid provisions q( the bill, though enabling in nature, may involve-' - (a) expenditure on transportation of the recorcb, furniture, etc, of the board and payment of travdling allowance to the ofticers'and staft stationed at the head office in gwltur in the event of the central government deciding to shift the head omce to another place; (b) expenditure em the establishment of one or more auction platforms, as the board may consider necessary 4 the amount of expenditure involved on shifting of the head office from guntur will depend 011 the nllmber of omcers and staff that may be in position at the time a 'decisigq1 is taken to shift the head office and also c,n the distance from guntu'r to the new station where the head 06ice is decided to be shifted it is, therefore, not possible at present to indicate precisely the expenditure that may be involved in the shifting uf the head office however, if the head office is shifted to a place within the state of andhra pradesh the expenditw'e may not be much and it should be possible to meet the same from within the normal budget of the board the board's present office at guntw' is housed in a hired building "-5 the expenditure involved 00 establishment by the board of auction platforms will depend on the number of platforms that may be set up by the board it is provisionally estimated that eaeh such platfortll may cost about rs, 8 lakhs for land and building in the form of n~· recurring expenditure for oeerating the platforms to be set up by the board, it may have to incur a ~ecurring annual expenditure of about rs 4 lakhs towards salary and allowances uf the trained supervisors to be ap!j'ointed to supervise these platforms depending on the nature and extent of services to be provided at the auction platforms to be set up by the board, some additional recurring expenditure may also be involvecl in operating these auction platforms a pl'lovision however is being made in the act by incorporating a new ~ction 14a for levy of a fee at a rate not exceeding twcl per cent of the value of virginia tobacco to be collected by the board from the sellers and purchasers in respect of virginia tobacco sold at auction platforms established by the board under the tobacco cess act, 1975 (26 of 1975) the central government is also empowered to levy a duty of excise at the rat(> of one paisa per kildinffi on all virginia tobacco sold at these auction platfcd'ms the annual revenue from this duty of excise after the establishment of auction platforms is expected t~ be about rs 10 lakhs it will be possible for the board to meet the recurring expenditure on operating these platforms and in providing such services as may be considen!d necessary out hf the proposed fee and, if necessary, out of the proceeds of the aforesaid duty of excise 6 e,"ept 'i' stated in earlier pal,nphs it i not poiiible t tlda  w in1eate tu q'le\l  t 01 l'teurrla, uti l\owlt-reeurriftc ~""" ---_ 5  cleu8e 6 of· thebiu seeks to insert new clauae <k") in ~ticin ~ ofseetiem 32 r the act empowering the central govemmaat to maim rule8l'ep~ the manner of collection of fees under section 14a tb1i matter relates to procedure and administrative detail and it is not piutlc:a~e to ;provi~ for it in th~ bill itself the delegation of leglallti"e ~;~i ~rfore ofa no~~l char,~r   ~" ",  '  ;  ,(4 of j975~    chapter ii the tobaicco beall»  ,   ,  ,  -  :" z'~- •• :~  "-jmlt:  men~,~_;· eonsunlt 'f, lion of tbeboard (3) the head offiee 'of the board shan be at guatu, in the s~  of andhra pradesh and the board 'may, with· the pre\1tcnu approval of the ~~al government, establish oftlc~ or agencies at other places in or outside india '  ,   (4) the board shall consist of the followina memli)efl namely:--    - (c) evt mernbert to be appointed by th  catnl ~t to 'npretent ~vely:-  -   (t"j the 'government :of andhra' pradesh; 'iiid  - -   (d) two membf'rs to be appointed by the  central ~; by rotation in the alphabetical order, to represent the govwd~ of tobacco-grqwing states oth~r than the states of andhra pradeth _ ltalnatakai      8 (1) •• - -   l\meticma of the (2) with,iout prejudice to the generality of the provisions of suoseo-board tion (1), the measures referred to therein may provide for--     eel auc:tjofl platform  lao no rejistered arower or curer shall sell or ca\iie to be told vtrpma virainia tobacco elsewhere than at an auction platform registered with the board tobacco in accordance with the rules made under this act to be iold at retister- - '"  - 32 (1)                   '"                                    -                                                     '"                                                                      '"                                                                                       '" power of central govern-ment to make nile •     (2) in particular and without ptejudiee to the ,enerality of the fore-ioidc power, sueh ruletl may provide for all or any of the                                                                                      tollowinl matters, namely:-               -                                -                                                 '"                                                                 -                                                                                  '" 1 (26 of 1975) - - - - deftni~ - ! (1) in this act, unless th~ cont~xt otherwise requires-- - - ; c" :' " - (c) "rqjstered ~uchon platform" means an auction platform registered with the board in accordance with the rules made under the tobacco board act, 1975 4 '" 197~ 4 of 1975 3 (1) there shall be levied and collected by way of a cess for the purposes of the tobacco board act 1975, a duty of excise at the rite of' one paisa per kilogram on virginia tobacco which is produced in india and sold ata registered auction platform  (2) the duty bf excise levied und~r sub-section (i ) shall betn addition to llny cess ot duty leviable on virginia tobacco under any other law for the time being in force (3) the duty of excise payable under sub-section (i) in respect of any virginia tobacco sold at a registered auction platform shall be payable by the seller thereof to the person or authority prescribed in respect of such platform (of) the penon or authority' preseribed in respect of a registered auction platform shall collect the duty of excise payable on virginia tobacco sold at such platform and pay the amount so collected to tht' central govemment in such manner and within su,ch time as may be prescribed (5) if any duty of excise payable under this secti·on, or if any amount collected under this section by way oi such duty has not been paid to the central government within the period prescribed under sub-section (4), the central government may recover such duty or amount in the same manner as an arrear of land revenue ( a bill to amend the tobacco board act, 1975 