~ i- - ,  bjll no 77o{'70 the agricultural produce cess (amendment) bill, 1970 ' a billrj ',( "r ', '~~ ~ further to amend the agricuttural produce cess act, 19-40 be it enacted by parliament in the twenty-first tear of the ,republic of india as follows: -' 1 this act may be called the agricultural produce cess (amendment) act, 1970 short title n of 1940 5 2 in section 2 of the agricultural produce cess act, 1940 (hereinafter amendment referred to as the principal act), for clause (a), the following clause shall oflectioo a· be substituted, namely:-520f1962 '(a) "col1ector" means a collector of customs as defined in clause (8) of section 2 of the customs act, 1962, and' ~t 3 in section, 5 o'f the principal act, for the words "the central board oflcdioll , of revenue", the words and figures "the central board of excise and customs constituted under the central boards of revenue act, 1963" shall be substituted 4 after section 5 of the principal act, the following sections shall be s inserted, namely:-inertion of new ilec:tlona sa and ,d certain proriaiolll of the cultoms acti96~ to apply "5a the provisions of the customs act, 1962, and the rules and 50l uf 1962 reaujations made thereunder, including those i'elating to refunds and exemptions from duty, ,~hall so far as may be, apply in relation to the levy add collection of customs duty on all a:-tic1es included in 10 the schedule as they apply in relation to the levy and collection of duty payable to the central (iovernment under that act 5b (1) whoever-penaltles (a) evades the payment of any customs duty under this act, or is (b) fails to furnish any information which it is his duty to furnish or furnishes information which is false in material particulars or which he does not ~lieve t,:), be true, or (c) obstructs the collector or any other officer in the performance of his duties under this act or any rules made thereunder, 20 e'i!'' shall be punishable with imprisonment for a term which may extend to six months, 'of with fine which may extend to two thousand rupees, or with both, (2) any court trying an offence under this act may direct that any article specified in the schedule in respect of which it is satisfied 2s that an offence punishable under this act has been committed shall be forfeited to the central government and may also direct that all packales, coverings or receptacles in which such article is contained and every vessel or other conveyance used in carrying such article shay be forfeited to the central government" 30 auwadment of section 7 5 in sub-section (1) of section 7 of the principal act, for the words ·'the representatives of the central legislature", the words "the members of parliament" shall be substituted i e in section 9 of the principal act, for sub-section (3), the following sub-section shall be substituted, namely: -3s  (3) every rule made under this act shall be laid, as soon as me)' be after it is made, before each house of parliament while it is in session for a total perio'd of thirty days which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the successive sessions aforesaid, 40 both h'o'uses agree in making any modification in the rule or both houlelagree that the rule should not be made, the rule shall thereaftet hiift,eift!et <>nly in such modified form or be of no effect, as the case may be; so, however that any such modification or annulment shall be without prejudice t·o the validity of anything previ~ 45 ously done under that rule," 7 in the schedule to' the principal act, for item 21, the following item shall be substituted, namely:-amcnd  r1 of the schedule "21 sheep's or lamb's wool and animal hair, whether or ·no~ ~coured or carded"  statement of objects and reasonsthe agricultural produce cess act, 1940 provides ror imposition of cess at the rate of one-half of one per cent ad valorem on all articles included in the schedule to this act which are exported from india there is no specific provision in this act for the levy of penalty in cases where the expo'rters attempt to evade payment of the cess 2 in the recent past with a view to achieve simplification in the matter of collection of the cess, it has been decided that in cases where the cess payable is only up to rs 100 in each case the exporters may be permitted to affix customs revenue stamps equivalent to the cess payable on th~ ba&is of their self assessments of the value of the cargo the correctness of the stamps affixed will be verified with reference to the customs house record afterwards and short recovery, if any claimed 3 further, the agricultural produce cess is in the nature of a customs duty which is collected by the customs collectors these customs collectors have been exercising various powers vested in them under the customs act, 1962, in the collection of the cess also in order to discourage evasion of tax and misdeclaration of value o'f the cargo and short payment of cess, it is proposed that the provisions of the customs act, 1962 and the rules and regulations made thereunder should be applicable to the levy and collecti<:ms of the cess 4 opportunity has also been taken to carry out certain other amendments of clariftcatory or consequential nature '0 new delhi; the 27th july, 1970 fakhruddin ali ahmed  presfdent's recommendation under article 117 of the constitution of india[copy of letter no 26 (6) 16b-budget, dated the 21st july 1970 from shri fakhruddin ali ahmed, minister of food and agri culture to the secretary, lok sabha] the president having been informed of the subject matter of the agricultural produce cess (amendment) bill, 1970 recommends the introduction and considl!ration of the bill in the lok sabha under article 117 (1) and 117 (3) of the constitution of india the ag, cultural produce cess act, 1940 provides for the levy and collection of cess in the nature of a duty of customs in respect of the articles included in the schedule to the act the collections including recoveries of penalties made through the existing revenue collection organisations are to be credited to the consoldated fund of india in the first instance thereafter, the entire net proceeds (gross collections less refunds) reduced by the cost of co'llection as determined by the government of india are paid to the lcar to meet the expenditure of the various activities undertaken by it 2 the net revenue from the proposed legislation, on the basis of the current trend, is est;mated to be of the order of rs 4,000 per year only and suitable budget provision exists for this purpose no non-recurring expenditure from the consolidated fund of india is involved (ft anticipated on account of the amendments proposed in the bill 3 incidentally, it may be pointed out that the proposed amendments are not altogether new in character recovery of the cess including recoveries of short payments and the refunds thereof are already being made by the various collectors of customs under the powers vested in them in pursuance of the provisions of the customs act, 1962 the present legislation only attempts to make the agricultural produce cess act, 1940 up-to-date and exhaustive so that possible legal complications which might arise in future are guarded against  memorandum regarding delegated legislationsection 6 ($) of the agricultural produce cess act, 1940 empowers the central government to make rules regulating the expenditure of money out of the cesspaid to the council under the act further the central bo'ard of revenue (now the central board of excise and customs constituted under the central boards of revenue act, 1963) has been empowered under section 5 of the act to make rules, providing on such conditions as may be specified in the rules, regarding refund of, and exemption from, cess the matters in respect of which rules may be made relate to procedure and details therefore, the dele!g8tion of legislative power is of a normal character  annexure extracts from the agricultural produce cess act, 1940 (27 of 1940)  - - - definition  2 in this act, unless there is anything repugnant in the subject or context,-19 of 1934 (a) "collector" means a customs-collector as defined in clause (c) of section 3 of the sea customs act, 1878, or a collector of land customs as defined in clause (c) of section 2 of the land customs act, 1924, as the case may be, and  - - - - 5 the central board of revenue may make rules providing, on su"h conditions as may be specified, in the rules, fo'r-refund of, and "emption romceu standin pinance committee (a) the refund of duty levied where articles are exported by land and subsequently imported into india, and (b) the export by land, without payment of the duty of articles, which are subsequently to be imported into india  - - - - 7 (1) the' council shall constitute a standing f'nance committee, of which one member shall be· chosen from· omong the representatives of the central legislature on the governing body of the council, and one member shall be an officer appointed by the central government - - - - - power of central government to make rules 9 (1)  - - - (3) all rules made under this act shall be laid before parliament as soon as may be after they are made  the schedule-  (see section 3) •- - 21 wool, raw  a billlurther tel amend the agricu1tul'al projuce cess act, 19,0, ' (shri fakhruddin ali ahmed, minister of food and agriculture,) 