 the sugar (regulation of production) bill, 1961(as introduced in lol{ sabra on 20th novembell, 1961)  the sugar (regulation of production) bill,i9<>1 (as introduced in lok sabha) a billto provide for the regulation of production of sugar in the intnests     of the general public and for the levy and collection of a special      e:rcise duty on sugar produced by a factory in                                                                   e:rcebb of the     quota fixed for the purpose   be it enacted by parliament in the twelfth year of the republic of india as follows:-       1 (1) this act may be called the sugar (regulation of produc- short title   tion) act 1961                                                                                                                                            extedl dl                 ,                                                                                                          coiiiideiloe-5        (2) it extends to the whole of india except the state of jammu ment and kashmir (3) it shall be deemed to have come into force on the 1st day of november,l961 ie 2 in this act, unless the context otherwise requires,-(a) "central excises act" means the central excises and salt act, 1944 15 (b) "factory" means any premises (including the precincts thereof), wherein or in any part of which sugar is being manufactured by the vacuum pan process, or, wherein or in any part of which, any manufacturing process connected with the production of sugar by the vacuum pan process is being carried on or is ordinarily carried on; (c) "owner" shall have the meaning assigned to it in the sugar export promotion act, 1958; (d) "permissible quota" means the quota referred to in section 3; r (e) "prescribed" means prescribed by rules made under this act; (f) "sugar" means any form of sugar, whether wholly or s partially manufactured, but does not include-f (i) khandsari sugar, that is to say, sugar in the manufacture of which neither a vacuum pan nor a vacuum evaporator is employed; or (ii) palmyra sugar, that is to say, sugar manufactured 10 from jaggery obtained by boiling the juice of the palmyra palm; (g) "year" means the year beginning on the first day of november and ending on the thirty-first day of october in the following year is fwtiodof pcrm1ieible quota 3 (1) the central government may, by order in writing, fix from time to time, in accordance with the prescribed formula, the quantity of sugar which may be produced in a factory during any year (2) in prescribing the formula referred to in sub-section (1), the 20 central government shall have regard t~ (a) the quantity of sugar available at the commencement of the year in the territories to which this act extends, (b) the quantity of sugar which, in its opinion, would be reasonably required for consumption during the year in the 2s territories to which this act extends, (c) the quantity of sugar which, in its opinion, is likely to be required for export during the year, (d) the working capacity of the factory during the relevant period, 30 (e) the number of days on which the factory actually worked during the relevant period, (f) the quantity of sugar produced expressed as percentage of the sugarcane crushed during the relevant period, and (g) such other matters as may be prescribed 35 (3) the order referred to in sub-section (1) shall be communicated to the owner of each factory add the quantity fixed under the order for any year shall be deemed to be the permissible quota in respect of the factory for that year 4 (1) where the quantity of sugar produced in a factory during levy  ahnyllyebarlex~eeds the permissible quota fixe? for it for that year, there =crod u~ 5 s a e evled and collected on the quantity of sugar which is pro- cim ciut)' duced in excess of the permissible quota a special duty of excise at the rate at which the duty of excise is chargeable on sugar under the central excises act for the time being in force (2) the special duty of excise referred to in sub-section (1) shall 10 be in addition to the duty of excise chargeable on sugar under the central excises act or any other law for the time being in force and shall ,be paid by the owner to such authority as may be specified in the notice demanding the payment of duty and within such period not exceeding ninety days as may be specifit;¥i in such notice 15 (3) if any such owner does not pay the whole or any part of the duty payable by him within the period referred to in sub-section (2), he shall be liable to pay in respect of every period of thirty days or part thereof during which the default continues a penalty which may extend to ten per cent of the duty outstanding from time to time, the 20 penalty being adjudged in the same manner as the penalty to which a person is liable under the rules made under the central excises act, is adjudged (4) the provisions of the central excises act and the rules made thereunder, including those relating to refunds and exemptions from 25 duty shall, so far as may be, apply in relation to the levy and collection of the special duty of excise or any other sum referred to in this section 9s they apply in relation to the levy and collection of duty on sugar or other sums of money payable to the central government under that act or the rules made thereunder: 30 provided that no refund of the special excise duty or other sum shall be granted, if the whole or any part of the sugar in respect of which such duty or sum is payable under this section, is exported out of india  - 5 the central government may, by notification in the official delepdod gazette direct that any power conferred on it by this act shall, of powen 3s subject 'to such conditions, if any, as may be specified in the notification be exercisable also by such officer or authority subordinate to 'he 'central government as may be specified in the notification 6 no suit, prosecution or other legal proceeding shall lie against ~tecdon of the central government or any of its officers for or in r~spect of :=~ j:!:a 40 anything which is in good faith done or intended to be done in pursuance of this act or any rule or order made thereunder notification in the ot!cial gazette, make rules for carrying out the purposes of this act t :: (2) in particular, and without prejudice to the generality of the , foregoing power, such rules may provide for all or any of the fol- , lowing matters, namely:-(a) the formula for fixing the quota under section 3, and the relevant period referred to in clauses (d), (e) and (f), and the matters referred to in clause (g) of sub-section (2) of that section; 10 (b) the submission by owners to such authority as may be specified in this behalf, of returns or reports or other information relating to the manufacture and stocks of sugar; (c) the manner in which the accounts of the factory in respect of th~ manufacture of sugar may be maintained; is (d) the inspection of records and registers of factories: (e) any other matter which is to be or may be prescribed under this act  (3) in making a rule under this section, the central government may direct that a breach thereof shall be punisha·ble with fine which 20 may extend to five thousand rupees (4) every rule made under this act shall be laid as soon as may be after it is made before each house af parliament while it is in 8eblion for a total period of thirty days which may be comprised in one session or in two successive sessions, and if, before the expiry 25 of the sesssion in which it is so laid or the session immediately fohowing, both houses agree in making any modification in the rule or both houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however that any such modification 30 or annulment shall be without prejudice to the validity of anything previously done under that rule - 8 (1) the sugar (regulation of production) ordinance, 1961, is 3 of 1961 hereby repealed j j  i (2) notwithstanding such repeal, anything done or any action 3' taken in exercise of any of the powers conferred by or under the said ordinance shall be deemed to have been done or taken in exerc1se of the powers conferred 'by or under this act as if this act were in force on the day on which such thing was done or action was taken 40 ,  sta,tement of objects and reasonsdue to large increases in production of sugar in , 1959-60 and 1960-61, there has been a heavy accumulation of stocks in the factories, resulting in considerable storage and financial difrculties during the 1960-61 working season on jl review of the entk'e sugar situation and considering the likely demand for internal consumption and exports, it is found necessary, in the intersts ei the sugar industry as well as the cane growers, to regtdrte futul'e production of sugar it is, therefore, proposed-(a) to empower the central government to fix the quantity of sugar which may be produced in a factory during a year, and (b) to levy a special duty of excise on sugar produce(j in excess of the quantity so fixed in order to achieve these objects, the sugar (regulation of production) ordinance, 1961, was promulgated on the 29th september, 1961 this bill merely seeks to replace that ordinance new delhi; the 30th october, 1961 s k patil sub-elause (1) of clause 7 empowers the central government to make rules for carrying out the purposes of this law and sub-clause (2) thereof enumerates the various matters in respect of which rules may be made these matters relate to the formula for fixing the quantity of sugar which may be produced in a factory durini any year, the submission by owners to a specified authority of returns, reports or other information relating to the manufacture and stocks of sugar, the manner in which the accounts of a factory in respect of the manufacture of sugar may be maintained and the inspection of records and registers of factories these are matters which can best be regulated by rules the delegation of powers is of - normal character  a billto provide for the regulation of production of sugar in the interests of the general public and for the levy and collection of a special excise duty on sugar produced by a factory in excess of the quota fixed for the purpose the president has, in pursuance of clause (1) of article 117 and clause (i) of article 274 of the constitution of india, recommended to lok sabha the introduction of the bill mn kaul, secretary (shri s k patil, minister of food and agriculture) 