Tobacco Cess Act, 1975 (Extracts)
An Act to provide for thelevy and collection, by way of cess of a duty of excise onvirginia tobacco and a duty of customs on tobacco, for the development of tobacco industry and for matters connected therewith.

BE it enacted by Parliament in the Twenty-sixth Year of the Republic of India as follows: -

1. Short title, extent and commencement. -This Act may be called the Tobacco Cess Act, 1975.

(2) It extends to the whole of India.

(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint; different dates may be appointed for different provisions.

2. Definitions. -(1) In this Act, unless the context otherwise requires,-

(a) "auction platform" means an auction platform registered with the Boardin accordance with the rules made under the Tobacco Board Act, 1975 (4 of 1975) or established by the Board under that Act;

(b) "Board" means the Tobacco Board established under section 4 of the Tobacco Board Act, 1975 (4 of 1975);

(c) "prescribed" means prescribed by rules made under this Act.

(2) All words, and expressions used in this Act and not defined, but defined in the Tobacco Board Act, 1975 (4 of 1975), shall have the meanings respectively assigned to them in that Act.

3. Duties of excise on virginia tobacco. -(1) There shall be levied and collected, by way of a cess for the purpose of the Tobacco Board Act, 1975 (4 of 1975), a duty of excise at the rate of one paise per kilogram on virginia tobacco which is produced in India and sold at an auction platform.

(2) The duty of excise levied under sub-section (1) shall be in addition any cess or duty leviable on virginia tobacco under any other law for the time being in force.

(3) The duty of excise payable under sub-section (1) in respect of virginia tobacco sold at an auction platform shall be payable by the seller thereof to the person or authority prescribed in respect of such platform.

(4) The person or authority prescribed in respect of an auction platform shall collect the duty of excise payable on virginia tobacco sold at such platform and pay the amount so collected to the Central Government in such manner and wit such time as may be prescribed.

(5) If any duty of excise payable under this section, or if any amount collected under this section by way of such duty, has 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.

4. Duties of customs on tobacco. -(1) There shall levied and collected, by way of cess for the purposes of the Tobacco Board Ac ,1 75 4 of 1975), a duty of customs at such rate not exceeding one per cent ad valorem as the Central Government may specify, by notification in the Official Gazette on all tobacco , which is exported.

Explanation. -"Exported" means taken out of India by land , sea or air.

(2) The duties of customs levied under sub-section (1) shall be in addition to any cess of duty leviable on tobacco under any other law for the time being force.

(3) The provisions of the Customs Act, 1962 (52 of 1962) and the rules and regulations made thereunder, including those relating to refunds and exemption from duty, shall as far as may be, apply in relation to the levy and collection of the duty of customs leviable under sub-section (1) as they apply in relation to the levy and collection of duties of customs under that Act or those rule and regulations.

5. Crediting proceeds of duties to Consolidated Fund of India. - The proceeds of the duties of excise and customs levied under sections 3 and 4 respectively shall first be credited to the Consolidated Fund of Indian the Central Government may, if Parliament, by appropriation made by law in this behalf, so provides, pay to the Board, from time to time, from out of such proceeds, after deducting the expenses on collection, such sums of money as it may think fit for being utilised for the purposes of the Tobacco Board Act, 1975 (4 of 1975).

6. Penalty for evasion of duty of excise payable under section 3. - Whoever wilfully or intentionally evades or attempts to evade the payment of any duty of excise payable by him under section 3, or the payment of any amount collected by way of duty under that section shall be punishable it imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

7. Offences by companies. -(1) Where an offence under Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against an punished accordingly:

Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence a committedwithout his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation. -For the purposes of this section, -

(a) "company" means any body corporate and includes a firm or other association of individuals; and

(b) "director", in relation to a firm, means a partner in the firm.