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The Agricultural Produce Cess Act, 1940.

The Agricultural Produce Cess Act, 1940.

The Agricultural Produce Cess Act, 1940.

Act No.27 of 1940

[AS ON 1955]

[15th April, 1940.]

An Act to make better financial provision for the Indian Council of Agricultural Research

WHEREAS it is expedient to make better financial provision for the carrying out by the Indian Council of Agricultural Research of the objects for which it is established as set forth in the memorandum of Association of that body, and for this purpose to impose on certain articles a cess by way of customs duty on export, the proceeds of which shall be paid to the Council.

It is hereby enacted as follows.—

2. Definitions.

In this Act, unless there is anything repugnant in the subject or context,– (8 of 1878) (19 of 1924)

(a) “Collector ” means a customs -collector as defined in clause (c) of section 3 of 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

(b) ” Council ” means the Indian Council of Agricultural Research.

3. Imposition of cess.

(1) A customs duty at the rate of one-half of one per valorem shall be levied on all article included in the Schedule which are exported from 1[The territories to which this act extends] ;

Provided that the said duty shall not be levied on articles proved to the satisfaction of the Collector not to have been produced in India.

(2) The Central Government may, by 2by notification in the Official Gazette, fix for the purposes of levying the said duty tariff values of any articles included in the Schedule, and may alter any tariff values for the time being in force.

1. Subs.ibid., for ” the territories for the time being comprised within Part A States and Part B States.”

2. For such notification see Gazette of India , 1947, Extraordinary, p.611.

4. Power to exclude articles from Schedule.

The Central Government may after previous consultation with the council, by 1notification in the Official Gazette, direct that any article specified in the Schedule shall cease to the subject to the duty imposed by section 3, and thereupon, so long as the notification remains in force, that article shall deemed not to be included in the schedule.

For such notification , see Gazette of India, 1940, Pt.l, p.1323.

5. Refund of, and exemption from, cess.

The Central Board of Revenue may make 1rules providing , on such conditions as may be specified, in the rules, for —

(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 the articles, which are subsequently be imported into India.

1. For such rules, see Gazette of India, 1940, Pt.l, p.565.

6. Payment of Cess to Council and expenditure of Cess by Council.

(1) The proceeds of the levied under this Act reduced by the cost of collection as determined by the Central Government shall be paid to the council.

(2) The amount so due shall be paid by the Central Government to the Council at the intervals of not more than six months.

(3) The expenditure of the money so paid to the council shall be subject to such limitation as may be imposed by rules made in this behalf by the Central Government.

7. Standing Finance Committee.

(1) The Council shall constitute a Standing Finance Committee, of which one member shall be chosen among 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.

(2) Subject to the provisions of the sub-section (1) the constitution, functions and procedure of the Standing Finance Committee shall be regulated in such manner as the Council may with the previous approval of the Central Government determine.

8. Reserve fund.

The Council shall in accordance with the rules made in this behalf by the Central Government create and maintain a reserve fund.

9. Power of Central Government to make rules.

(1) Central Government may, after consultation with the council , by notification in the Official Gazette , make 1rules to carry out the purposes of the Act.

(2) In particular and without prejudice to the generality of the foregoing power , the Central Government may make rules regulating the expenditure of money paid to the council under section 6 and providing for the creation , maintenance and management of the reserve fund referred to in section 8.

(3) All rules made under this act shall be laid before 2Parliament as soon as may be after they are made.

1. For such rules, see Gazette of India, 1940, Pt.l, p.1353.

2. The words “both chambers of” were the A.O.1948. SCHEDULE. See section 3


(See section 3)




4. CEREALS, other than Rice and Wheat.


6. FIBRE for brushes.




10. HIDES, raw.





15. SKINS, raw.


17. TOBACCO, unmanufactured




21. WOOL, raw.

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