The Tobacco Board Act, 1975
Administered Ministry: Ministry of Commerce and Industry / Department of Commerce
Section
Section 15 Power of inspection 1 docs
The Board may authorise any of its members, officers or other employees to inspect in such manner as may be prescribed any land or premises to verify the accuracy of any particulars mentioned in any application or any return referred to in section 14.
Section 16 Grants and loans by the Central Government
The Central Government may, after due appropriation made by Parliament by law in this behalf, pay to the Board by way of grants or loans such sums of money as the Central Government may think fit for being utilised for the purposes of this Act.
Section 17 Constitution of the Tobacco Fund. 1 docs
(1) There shall be formed a Fund to be called the Tobacco Fund and there shall be credited thereto--
(a) the fees levied and collected under this Act or the rules made thereunder;
(b) any sums of money paid or any loans granted by the Central Government for the purposes of this Act;
(c) any grants or loans that may be made by any person for the purposes of this Act;
(d) the sums, if any, realised by the Board in carrying out the measures referred to in section 8.
(2) The Fund shall be applied--
(a) for meeting the cost of the measures referred to in section 8;
(b) for meeting the salaries, allowances and other remuneration of the officers and other employees of the Board;
(c) for meeting the other administrative expenses of the Board;
(d) for repayment of any loans.
(a) the fees levied and collected under this Act or the rules made thereunder;
(b) any sums of money paid or any loans granted by the Central Government for the purposes of this Act;
(c) any grants or loans that may be made by any person for the purposes of this Act;
(d) the sums, if any, realised by the Board in carrying out the measures referred to in section 8.
(2) The Fund shall be applied--
(a) for meeting the cost of the measures referred to in section 8;
(b) for meeting the salaries, allowances and other remuneration of the officers and other employees of the Board;
(c) for meeting the other administrative expenses of the Board;
(d) for repayment of any loans.
Section 18 Borrowing powers of the Board.
Subject to such rules as may be made in this behalf, the Board shall have the power to borrow on the security of the Tobacco Fund or any other asset for carrying out the purposes of this Act.
Section 18A Writing off of losses.
1[18A. Writing off of losses.-- Subject to such conditions as may be specified by the Central Government, where the Board is of opinion that any amount due to, or any loss, whether of money or of property, incurred by, the Board is irrecoverable, the Board may, with the previous approval of the Central Government, sanction the writing off finally of the said amount or loss:
Provided that no such approval of the Central Government shall be necessary where such irrecoverable amount or loss does not exceed in any individual case and in the aggregate in any year such amounts as may be prescribed.]
Provided that no such approval of the Central Government shall be necessary where such irrecoverable amount or loss does not exceed in any individual case and in the aggregate in any year such amounts as may be prescribed.]
1 Ins. by Act 57 of 1985, s. 8 (w.e.f. 1-12-1985).
Section 19 Accounts and audit.
(1) The Board shall maintain proper accounts and other relevant records and prepare an annual statement of accounts, including the 1[income and expenditure account] and the balance-sheet in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India.
(2) The accounts of the Board shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Board to the Comptroller and Auditor-General.
(3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Board shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General has in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Board.
(4) The accounts of the Board as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament.
(2) The accounts of the Board shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Board to the Comptroller and Auditor-General.
(3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Board shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General has in connection with the audit of Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Board.
(4) The accounts of the Board as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament.
1 . Subs. by Act 57 of 1985, s. 9, for "profit and loss account" (w.e.f. 1-12-1985).
Section 20 Power to prohibit or control import and export of tobacco and tobacco products.
(1) The Central Government may, by order published in the Official Gazette, make provision for prohibiting, restricting or otherwise controlling the import or export of tobacco and tobacco products, either generally or in specified classes of cases.
(2) All tobacco and tobacco products to which any order under sub-section (1) applies, shall be deemed to be goods of which the import or export has been prohibited under section 11 of the Customs Act, 1962 (52 of 1962), and all the provisions of that Act shall have effect accordingly.
(3) If any person contravenes any order made under sub-section (1), he shall, without prejudice to any confiscation or penalty to which he may be liable under the provisions of the Customs Act, 1962 (52 of 1962), as applied by sub-section (2), be punishable with imprisonment for a term which may extend to one year, or with fine, or with both.
(2) All tobacco and tobacco products to which any order under sub-section (1) applies, shall be deemed to be goods of which the import or export has been prohibited under section 11 of the Customs Act, 1962 (52 of 1962), and all the provisions of that Act shall have effect accordingly.
(3) If any person contravenes any order made under sub-section (1), he shall, without prejudice to any confiscation or penalty to which he may be liable under the provisions of the Customs Act, 1962 (52 of 1962), as applied by sub-section (2), be punishable with imprisonment for a term which may extend to one year, or with fine, or with both.
Section 20A Power of Central Government to authorise purchase of virginia tobacco.
1[20A. Power of Central Government to authorise purchase of virginia tobacco.--Without prejudice to the provisions of clause (g) of sub-section (2) of section 8 and notwithstanding anything contained in any other provision of this Act, if the Central Government is satisfied that it is necessary or expedient so to do, it may, by order in writing and subject to such conditions and limitations as may be specified in the order, authorise any body or other agency to purchase virginia tobacco from the growers and dispose of the same in India or abroad.]
1 Ins. by s. 10, ibid. (w.e.f. 1-12-1985).
Section 21 Directions by Central Government
The Board shall carry out such directions as may be issued to it from time to time by the Central Government for the efficient administration of this Act.
Section 22 Returns and reports
(1) The Board shall furnish to the Central Government at such time and in such form and manner as may be prescribed or as the Central Government may direct, such returns and statements and such particulars in regard to any proposed or existing programme for the promotion and development of the tobacco industry, as the Central Government may, from time to time, require.
(2) Without prejudice to the provisions of sub-section (1), the Board shall, as soon as possible, after the end of each financial year, submit to the Central Government a report in such form and before such date, as may be prescribed, giving a true and full account of its activities, policy and programmes during the previous financial year.
(3) A copy of the report received under sub-section (2) shall be laid, as soon as may be after it is received, before each House of Parliament.
(2) Without prejudice to the provisions of sub-section (1), the Board shall, as soon as possible, after the end of each financial year, submit to the Central Government a report in such form and before such date, as may be prescribed, giving a true and full account of its activities, policy and programmes during the previous financial year.
(3) A copy of the report received under sub-section (2) shall be laid, as soon as may be after it is received, before each House of Parliament.
Section 23 Penalties.
Any person who, being required under this Act to furnish any return, fails to furnish such return or furnishes a return containing any particular which is false and which he knows to be false or does not believe to be true, shall be punishable with fine which may extend to five hundred rupees.
Section 24 Penalties for obstructing a member, officer or other employee of the Board in the discharge of his duties and for failure to produce books and records.
Any person who--
(a) obstructs any member or any officer or other employee of the Board or any other person in the exercise of any power conferred, or in the discharge of any duty imposed, on him by or under this Act; or
(b) having control over or custody of any account book or other record, fails to produce such book or record when required to do so by or under this Act, shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.
(a) obstructs any member or any officer or other employee of the Board or any other person in the exercise of any power conferred, or in the discharge of any duty imposed, on him by or under this Act; or
(b) having control over or custody of any account book or other record, fails to produce such book or record when required to do so by or under this Act, shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.
Section 25 Other penalties
Whoever contravenes or attempts to contravene or abets the contravention of the provisions of this Act 1[or of any rules or regulations made thereunder] other than the provisions, punishment for the contravention whereof has been provided for in section 20 or section 23 or section 24, shall be punishable with imprisonment for a term which may 2[extend to two years, or with fine which may extend to five thousand rupees, or with both] and in the case of a continuing contravention with an additional fine which may extend to fifty rupees for every day during which such contravention continues after conviction for the first such contravention.
1 Subs. by Act 57 of 1985, s. 11, for "or of any rules made thereunder" (w.e.f. 1-12-1985).
2 Subs. by s. 11, ibid., for "extend to six months, or with fine which may extend to one thousand rupees, or with both" (w.e.f. 1-12-1985).
2 Subs. by s. 11, ibid., for "extend to six months, or with fine which may extend to one thousand rupees, or with both" (w.e.f. 1-12-1985).
Section 26 Offences by companies
(1) Where an offence under this 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 and 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 was committed without 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 the 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.
Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without 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 the 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.
Section 27 Jurisdiction of court.
No court inferior to that of a Metropolitan Magistrate or a Magistrate of the first class shall try any offence punishable under this Act.
Section 28 Previous sanction of Central Government
No prosecution for any offence punishable under this Act shall be instituted except with the previous sanction of the Central Government.
Section 29 Protection of action taken in good faith.
No suit, prosecution or other legal proceedings shall lie against the Central Government, or the Board or any committee appointed by it, or any member of the Board or such committee, or any officer or other employee of the Central Government or of the Board or any agent of or any other person authorised by the Board, for anything which is in good faith done or intended to be done under this Act or the rules made thereunder.
Section 30 Suspension of operation of Act.
(1) If the Central Government is satisfied that circumstances have arisen rendering it necessary that certain of the restrictions imposed by this Act should cease to be imposed or if it considers it necessary or expedient so to do in the public interest, the Central Government may, by notification in the Official Gazette, suspend or relax to a specified extent, for such period as may be specified in the notification, the operation of all or any of the provisions of this Act, in all or any of the territories to which this Act extends.
(2) Where the operation of any provision of this Act has, under sub-section (1), been suspended or relaxed, such suspension or relaxation may, at any time while this Act remains in force, be removed by the Central Government by notification in the Official Gazette.
(3) Every notification issued under this section shall be laid, as soon as may be after it is issued, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the notification or both Houses agree that the notification should not be issued, the notification 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 or annulment shall be without prejudice to the previous operation of the notification.
(2) Where the operation of any provision of this Act has, under sub-section (1), been suspended or relaxed, such suspension or relaxation may, at any time while this Act remains in force, be removed by the Central Government by notification in the Official Gazette.
(3) Every notification issued under this section shall be laid, as soon as may be after it is issued, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the notification or both Houses agree that the notification should not be issued, the notification 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 or annulment shall be without prejudice to the previous operation of the notification.
Section 31 Application of other laws not barred.
The provisions of this Act shall be in addition to, and not in derogation of, the provisions of any other law for the time being in force.
Section 32 Power of Central Government to make rules. 2 docs
(1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:--
(a) the powers and functions of the Vice-Chairman of the Board;
(b) the term of office and other conditions of service of members, the manner of filling vacancies among, and the procedure to be followed in the discharge of their functions by, members;
(c) the powers which may be exercised and the duties which shall be performed by the Executive Director and the Secretary;
(d) the circumstances in which and the authority by which a member may be removed;
(e) the holding of a minimum number of meetings of the Board every year;
(f) the procedure to be followed at the meetings of the Board for the conduct of business and the number of members which shall form a quorum at a meeting;
(g) the maintenance by the Board of records of business transacted by the Board and the submission of copies thereof to the Central Government;
1[(ga) the specifications with regard to grading work referred to in section 11B;]
(h) the matters referred to in section 14;
2[(hh) the manner of collection of fees under sub-section (2) of section 14A;]
(i) the powers of the Board, its Chairman, the Executive Director and committees of the Board with respect to the incurring of expenditure;
(j) the conditions subject to which the Board may incur expenditure outside India; 3[(ja) the amounts for the purposes of the proviso to section 18A;]
(k) the preparation of budget estimates of receipts and expenditure of the Board and the authority by which the estimates are to be sanctioned;
(l) the form and manner in which the accounts should be maintained by the Board;
(m) the deposit of the funds of the Board in banks and the investment of such funds;
(n) the conditions to be observed by the Board in borrowing money;
(o) the conditions subject to which, and the manner in which, contracts may be entered into by or on behalf of the Board;
(p) the additional matters in respect of which the Board may undertake measures in the discharge of its functions;
(q) the remuneration and other allowances payable to the person or persons referred to in clause (b) of sub-section (2) of section 9;
(r) the form and manner of, and the particulars to be contained in, any returns or reports to be made to the Board under this Act;
(s) the collection of any information or statistics in respect of tobacco or tobacco products;
(t) any other matter which has to be, or may be, prescribed by, or provided for by rules under, this Act.
(3) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, 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 or annulment shall be without prejudice to the validity of anything previously done under that rule.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:--
(a) the powers and functions of the Vice-Chairman of the Board;
(b) the term of office and other conditions of service of members, the manner of filling vacancies among, and the procedure to be followed in the discharge of their functions by, members;
(c) the powers which may be exercised and the duties which shall be performed by the Executive Director and the Secretary;
(d) the circumstances in which and the authority by which a member may be removed;
(e) the holding of a minimum number of meetings of the Board every year;
(f) the procedure to be followed at the meetings of the Board for the conduct of business and the number of members which shall form a quorum at a meeting;
(g) the maintenance by the Board of records of business transacted by the Board and the submission of copies thereof to the Central Government;
1[(ga) the specifications with regard to grading work referred to in section 11B;]
(h) the matters referred to in section 14;
2[(hh) the manner of collection of fees under sub-section (2) of section 14A;]
(i) the powers of the Board, its Chairman, the Executive Director and committees of the Board with respect to the incurring of expenditure;
(j) the conditions subject to which the Board may incur expenditure outside India; 3[(ja) the amounts for the purposes of the proviso to section 18A;]
(k) the preparation of budget estimates of receipts and expenditure of the Board and the authority by which the estimates are to be sanctioned;
(l) the form and manner in which the accounts should be maintained by the Board;
(m) the deposit of the funds of the Board in banks and the investment of such funds;
(n) the conditions to be observed by the Board in borrowing money;
(o) the conditions subject to which, and the manner in which, contracts may be entered into by or on behalf of the Board;
(p) the additional matters in respect of which the Board may undertake measures in the discharge of its functions;
(q) the remuneration and other allowances payable to the person or persons referred to in clause (b) of sub-section (2) of section 9;
(r) the form and manner of, and the particulars to be contained in, any returns or reports to be made to the Board under this Act;
(s) the collection of any information or statistics in respect of tobacco or tobacco products;
(t) any other matter which has to be, or may be, prescribed by, or provided for by rules under, this Act.
(3) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, 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 or annulment shall be without prejudice to the validity of anything previously done under that rule.
1 Ins. by Act 57 of 1985, s. 12 (w.e.f. 1-12-1985).
2 Ins. by Act 36 of 1978, s. 6 (w.e.f. 30-8-1978).
3 Ins. by Act 57 of 1985, s. 12 (w.e.f. 1-12-1985).
2 Ins. by Act 36 of 1978, s. 6 (w.e.f. 30-8-1978).
3 Ins. by Act 57 of 1985, s. 12 (w.e.f. 1-12-1985).