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COFFEE ACT, 1942
7 of 1942
2nd March, 1942
"1. After the outbreak of the present war the Indian coffee industry lost Certain important foreign markets. There was therefore a great .slump in the prices of coffee. A Coffee Contral Conference Consisting of the interests affected was held in September 1940 to consider the stops that. it could be taken to save the industry from collapse. After full consideration of the recommendations made at the Conference, the Coffee Market Expansion Ordinance. 1940. was promulgated providing for the necessary assistance to the Indian Coffee Industry by regulating the export of coffee from and the.sale of coffee in, British India, and other connected means. 2. The duration of the Ordinance was limited in order to make proposals for legislation after gaming experience and after ascertaining the wishes of the colice interests in the matter. 3. A second Coffee Control Conference of the coffee interests was accordingy convened on the 20th October, 1941. The Conference recognised that the control scheme has been greatly beneficial to the coffee industry in its present crisis and unanimously made in the following recommendations : (1) that the control scheme as generally embodied in the Ordinance should be continued hy legislation and that its duration he for the period of the war and one coffee crop year thereafter, and (2) that the control should he limited to estates with area of 10 acres or more hut provision should be made whereby control may he extended, if necessary, over estates with areas below 10 acres. These recommendations were endorsed hy the Standing Advisory Committee of. the legislature attached to the Commerce Department. 4. In view of the general agreement of all interests for the maintenance of the coffee control scheme it is proposed to continue control hy legislation, and the present Bill is designed to achieve this object". Gazette of India. 1942. Part V, p. 13. Act 48 of 1985.- The present rate of the duty of customs and the duty of excise on coffee has reached the ceiling of Rs. 11 .80 per quintal each fixed under section 11andsection 12of the Coffee Act. 1942. These rates have been in vogue since 16-12- 1977. The proceeds of the duties of customs and excise levied under the Act form part of the Consolidated Fund of Indill and after being reduced by the cost of collection and alter appropriation by law by Parliament are paid to the Coffee Board for being utilised for the purposes of the Act. The expenditure of the Board during the recent years has increased considerably due to increase in the plan and non -plan activities of the Board. The Board has taken up a number of new schemes relating to man-power development pulping and hulling units, warehousing/storage, etc.,.besides continuing the existing development activities and research and extension programmes. The proceeds of the two duties would not be sufficient and, therefore, the Central Government had to resort to grants-in-aid to meet the expenditure of the Board during the financial year 1985-86. It is thus necessary to strengthen the financial position of the Board. It is, therefore, proposed to amendsections 11and12of the Act to provide for a higher ceiling of levy of duty of customs and duty of excise at a rate not exceeding Rs. 50 per quintal for each. The actual operative rates of the two duties will, however, be fixed at such levels as may be sufficient to generate funds to meet substantial part' of the budget expenditure of the Board in future. 2.The Customs Act, 1962and the rules and regulations made thereunder contain elaborate provisions regarding the refund of, and exemption from, the pre-payment of the duty of customs with regard to export of goods in general. In the interest of uniformity and administrative convenience, it is proposed to make these provisions applicable also for purposes of refund of, and exemption from, the prepayment of the duty of customs under the Coffee Act, 1942, with regard to export of coffee by substituting for sub-section (3) of section 13of the Act a new sub-section. .3. Opportunity is being availed of to substitute for the provision relating to laying of rules contained in subsection (3) of section 48a new provision on the lines recommended by the Committees on Subordinate Legislation. 4. The Bill seeks to achieve the above objects. Gaz. of Ind.. 29-7- 1985, Pt. II, S. 2, Ext.. p. 3 (No. 35).
An Act 1[to provide for the development under the control of the Union of the coffee industry] WHEREAS it is expedient2[to provide for the development under the control of the Union of the coffee industry]; It is hereby enacted as follows:
SECTION 01: SHORT TITLE, EXTENT AND DURATION
-(1) This Act may be called The3[Coffee Act], 1942.
(2) It extends7to4[the whole of India5[except the State of Jammu and Kashmir]].
(3)6[* * * * *]
SECTION 02: DECLARATION AS TO EXPEDIENCY OF UNION CONTROL
8- It is hereby declared that it is expedient in the public interest that the Union should take under its control the Coffee Industry.]
SECTION 03: DEFINITIONS
- In .this Act unless there is any thing repugnant in the subject or context
(a) "the Board" means the9[10[* *] Coffee Board] constituted under section 4-;
11[(aa) "Chairman" means the Chairman of the Board;]
(b) "Coffee" means the commodity derived from the fruit of the rubiaceous plant known by that name, and includes raw coffee, cured coffee, uncured coffee, roasted coffee and prepared coffee;
13(c) "Collector" means a Collector of Customs as defined in clause (8) of Section 2 of the Customs Act, 1962 (52 of 1962)
(d) "curing" means the application to raw coffee of mechanical processes other than pulping for the purpose of preparing it for marketing;
(e) "curing establishment" means any place to which raw coffee is sent by a registered owner for curing, and includes any estate which the Board may declare to be a curing establishment, for the purposes of this Act:
12[(ee) "dealer" means a person carrying on the business of selling coffee, whether wholesale or by retail;]
(f) "estate" means an area administered as one unit which contains land planted with coffee plants;
14[(ff) "India" means the territory of India excluding the State of Jammu and Kashmir;]
(g) "Indian Coffee Cess Committee" means the Indian Coffee Cess Committee constituted underthe Indian Coffee Cess Act, 1935:
16[(h) "free sale quota" means that portion, stated in terms of bulk or weight, of the whole of the coffee produced by the estate in the year, which a registered estate is permitted under this Act to sell;]
15[(i) "owner" in relation to any land planted with coffee plants, includes,-
(1)any agent of the owner, and
(2) a mortgagee, lessee or other person in actual possession of the land;]
(j) "Prescribed" means prescribed by rules made under this Act;
(k) "registered estate" means an estate in respect of which an owner is registered under subsection (1) of section 14-, and includes also any estate in respect of which an owner is required to be registered under the provisions of that sub-section;
(l) "registered owner" means an owner of a registered estate who has been or is required to be registered under sub-section (1) of section 14-;17[ * * * *]
(m) "surplus pool" means the stock of coffee accumulated by the Board out of the amounts delivered to the Board under section 25-:
18[(n) "year" means the period of twelve months beginning with the first day of July and ending with thirtieth day of June next following.]
SECTION 04: CONSTITUTION OF THE BOARD
- (1) The Board constituted by the name of the Indian Coffee Market Expansion Board under section 4 of the Indian Coffee Market Expansion Ordinance, 1940, shall be the19[Coffee Board] for the purposes of this Act.
20[(2) The Board shall consist of---
(a) a Chairman to be appointed by the Central Government by notification in the Official Gazette;
(b) three Members of Parliament of whom two shall be elected by the House of the People and one by the Council of States; and
(c) such number of other members not exceeding twenty-nine as the Central Government may think expedient to be appointed by that Government by notification in the Official Gazette from among persons who are in its opinion capable of representing,-
(i) Governments of the principal coffee -growing States;
(ii) coffee-growing industry
(iii) coffee trade interests:
(iv) curing establishments;.
(v) interests of labour;
(vi) interests of consumers; and
(vii) such other interests as, in the opinion of the Central Government, ought to be represented on the Board.
(2A) The number of persons to be appointed as members from each of the categories specified in clause (c) of sub - section (2), the term of office of. the procedure to be followed in the discharge of their functions by, and the manner of filling vacancies among, the members of the Board shall be such as may be prescribed.
(2B) Any officer of the Central Government when deputed by that Government in this behalf shall have the right to attend meetings of the Board and take part in the proceedings thereof but shall not be entitled to vote.] 21[ * * * * *]
22[(4) No Act done by the Board shall be questioned on the ground merely of the existence of any vacancy in, or any defect in the constitution of the Board.
23(5) It is hereby declared that the office of member of the Board shall not disqualify its holder for being chosen as, or for being, a member of either House of Parliament.]
SECTION 05: INCORPORATION OF THE BOARD
- The Board shall be a body corporate by the name of the24 [25[* *] Coffee Board] having perpetual succession and a common seal, with power to acquire and hold property, both movable and immovable and to contract, and shall by the said name sue and be sued.
SECTION 06: VESTING OF PROPERTY IN THE BOARD
- So long as this Act remains in force all property, movable or movable, of or belonging to the Indian Coffee Cess Committee shall vest in the Board and all debts and liabilities of the said Committee shall be transferred to the Board, and the officers and servants of the said Committee shall be officers and servants on the staff of the Board and the said Committee shall be suspended.
SECTION 06A: CONSULTATION WITH THE BOARD
-26Before taking any action touching the affairs of the Board under this Act, the Central Government shall ordinarily consult the Board: Provided that no action taken by the Central Government shall be invalid or called in question merely on the ground that the action was taken without such consultation.]
SECTION 07: CHAIRMAN, COMMITTEES, STAFF AND AGENTS
27[(l) * * * *
(2) The Board may appoint such committees for such purposes and may employ such staff as it thinks necessary for the efficient discharge of its functions under this Act.
(3) The Board may authorise agents to discharge on its behalf its functions in relation to the marketing, storing and curing of coffee.
SECTION 08: SALARY AND ALLOWANCES OF CHAIRMAN
28- The Chairman shall be entitled to such salary and allowances and such conditions of service in respect of leave, pension, provident fund and other matters as may, from time to time, be fixed by the Central Government.]
SECTION 08A: VICE CHAIRMAN
29- The Board shall elect from amongst its members a Vice-Chairman who shall exercise such of the powers and perform such of the duties of the Chairman as may be prescribed or as may be delegated to him by the Chairman.]
SECTION 09: CHIEF COFFEE MARKETING OFFICER, SECRETARY AND OTHER STAFF
30- (1) The Central Government shall appoint an officer to be called the Chief Coffee Marketing Officer and a Secretary to the Board and may appoint a Deputy Secretary to the Board and such number of Marketing Officers as may be necessary, to exercise such powers and to perform such duties under the direction of the Board as may be prescribed.
(2) The officers appointed under this section shall be entitled to such salaries and allowances and such conditions of service in respect of leave, pension, provident fund and other matters as may, from time to time, be fixed by the Central Government.]
SECTION 10: DISSOLUTION OF THE BOARD
- When the Board is dissolved by reason of this Act having ceased to be in force, the unexpended balance of all money received by the Board under the Coffee Market Expansion Ordinance, 1940, or under this Act except money in the pool fund shall be disposed of in such manner as the Central Government may direct. The Central Government shall disburse the money in the pool fund in the same manner as the Board would have done had it continued to exist.
SECTION 11: DUTY OF CUSTOMS
- A duty of customs shall be levied on all coffee produced in India and exported from 31[India]32[at such rate not exceeding33[fifty rupees] per quintal as may be fixed by the Central Government by notification in the Official Gazette.]
SECTION 12: DUTY OF EXCISE
-38
SECTION 13: PAYMENT OF PROCEEDS OF DUTY TO THE BOARD.
44 (1) The proceeds of the duty of customs levied under this Act (all of which shall form part of the Consolidated Fund of India), reduced by the cost of collection as determined by the Central Government, shall, if Parliament by appropriation made by law in this behalf so provides, be paid to the Board for being utilised for the purposes of this Act.
(2) The provisions of the Customs Act, 1962 (52 of 1962), and the rules and regulations made thereunder, shall, as far as may be, apply in relation to-
(a) the refund of the duty of customs where coffee is exported and subsequently imported into India; and
(b) the export, without payment of the duty of customs, of coffee which is subsequently to be imported into India
SECTION 14: REGISTRATION OF OWNERS OF COFFEE ESTATES
- 45[(1) Every owner of land planted with coffee plants, whether such land is comprised in one estate or in more than one estate and whether it is situated wholly or only partly in India, shall, before the expiration of one month from the date on which he first became owner of such estate or estates, apply to the registering officer appointed in this behalf by the State Government to be registered as an owner in respect of each estate owned by him; and any registration made before the commencement of the Coffee (Amendment) Act, 1961 shall be deemed to have been made under this sub-section;]
46[* * * *]
(3) A registration once made shall continue in force until it is cancelled by the registering officer.
(4)46[* * * *]
SECTION 15: POWER OF STATE GOVERNMENT TO MAKE RULES
- (1) The State Government may, by notification in the Official Gazette, make rules to carry into effect the provisions of section 14-.
(2) Without prejudice to the generality of the foregoing power, such rules may prescribe the form of the application for registration and for cancellation of registration, the fee payable on such applications, the particulars to be included in such applications, the procedure to be followed in granting and cancelling registration, the registers to be kept by registering officers, and the supply by registering officers of information to the Board.
SECTION 16: FIXATION OF PRICES FOR SALE OF COFFEE
47- (1) The Central Government may,48[* * *] by notification in the Official Gazette, fix the price or prices at which coffee may be sold wholesale or retail in the Indian market.
(2) No registered owner or licensed curer or dealer shall sell coffee wholesale or retail in the Indian market at a price or prices higher than the price or prices fixed under this section.]
SECTION 17: SALE OF COFFEE IN EXCESS OF FREE SALE QUOTA.
52No registered owner shall sell or contract to sell coffee from any registered estate if by such sale the free sale quota allotted to that estate is exceeded nor shall a registered owner sell or contract to sell any coffee produced on his estate in any year for which no free sale quota is allotted to the estate.
SECTION 18: SALE OF COFFEE, HOW MADE
- No registered owner shall sell coffee unless either-
(a) it has been cured at or is delivered to the buyer through a curing establishment licensed under section 28-, or
(b) it is sold under and in accordance with the provisions of a licence procured from the Board under section 24-.
SECTION 19: STORAGE OF SALE OF COFFEE ON OR FROM UNREGISTERED ESTATE
- [Omitted by the Coffee (Amendment) Act, 1961 (48 of 1961), S. 8 [19-4-1962.]
SECTION 20: EXPORT OF COFFEE
- No coffee shall be exported from53[India] otherwise than by the Board or under an authorisation granted by the Board in the prescribed manner and in the prescribed cases, and the provisions of the57 [Customs Act, 1962 (52 of 1962), shall have effect as if the provision made by this section had been made by notification issued under Section 11] of that Act:54[Provided that nothing herein contained shall apply to coffee-
(i) shipped as stores on beard any vessel or aircraft in such quantity as the Collector considers reasonable, having regard to the number of the crew and passengers and the length of the voyage or journey, as the case may be, on which the vessel or aircraft is about to proceed, or
55[(ii) carried as personal baggage of a passenger, not exceeding such quantities as the Central Government may, by notification in the Official Gazette, specify, or
(iii) exported for such purposes and in such quantities as the Central Government may specify in the like manner.]]
56[Provided further that the Central Government may, by order in writing, specify the quantity of coffee which shall be permitted for export during any year and where any such order is made, no coffee shall be exported from India in excess of the said quantity:] Provided further that the Central Government may exempt from the operation of this section, either absolutely or subject to conditions, the export of coffee from53[India]55[to the State of Jammu and Kashmir] or to any foreign settlement bounded by India.
SECTION 21: RE IMPORT OF COFFEE EXPORTED FROM INDIA
- (1) No coffee which has been exported from India shall be re-imported into 58[India] except under and in accordance with a permit granted by the Board.
(2) The Board may in any fit case grant such a permit and no charge shall be made therefor.
SECTION 22: FREE SALE QUOTA
60 (1) Unless with the previous sanction of the Central Government the Board decides that no free sale quotas shall be allotted, the Board shall, as soon as may be, allot to each registered estate a free sale quota for the year.
(2) The free sale quota shall be a fixed percentage, common to all registered estates, not exceeding fifty per cent of the probable total Production of the estate in the year as estimated by the Board : Provided that the Board may, with the previous sanction of the Central Government, allot such quota at a percentage higher than fifty per cent of the said probable total production.
(3) The Board may at any time vary the free sale quota by varying the fixed percentage common to all registered estates, or may express the whole or any part of the free sale quota of an estate in terms of bulk instead of in terms of weight.
SECTION 23: RETURN TO BE MADE BY REGISTERED OWNERS
- ( 1 ) A registered owner shall furnish to the Board at the prescribed times and in the prescribed manner such returns as may be prescribed.
(2) If any registered owner fails to furnish the returns required under sub-section (1) in respect of any estate, the Board may61[without prejudice to any penalty to which the said owner is liable under section 37-A-], refuse to allot62 [a free sale quota] to that estate, or where62[a free sale quota] has already been allotted, may cancel it.
(3) The Board may authorise an officer to visit any estate at any time to verify the accuracy of, any return matte under this section or to ascertain the productive capacity of the estate
SECTION 24: LICENCES FOR SALE OF UNCURED COFFEE
- The registered owner of any estate, may, subject to the prescribed conditions and so long as the67[free sale quota] allotted to the estate will not be exceeded by the proposed sale, obtain from the Board a licence for the sale from that estate of uncured coffee.
SECTION 25: SURPLUS COFFEE AND SURPLUS POOL
(1) All coffee produced by a registered estate in excess of the amount specified in the69[free sale quotas] allotted to the estate63[or when no69[free sale quotas] have been allotted to estates, all coffee produced by the estate], shall be delivered to the Board for inclusion in the surplus pool by the owner of the estate or by the curing establishment receiving the coffee from the estate:64 [Provided that where no68[free sale quota] have been alloted to estates, the Chairman may allow the owner of any estate to return with himself for purposes of consumption by his family and for purposes of seed, such quantity of coffee as the Chairman may think reasonable: Provided further that where the Central Government is satisfied that it is not practicable for any class of owners producing coffee in any specified area to comply with the provisions of this sub-section on account of the small quantity of coffee produced by them or on account of their estates being situated in a remote locality, the Central Government may, by notification in the Official Gazette, exempt such class of owners from the provisions of this sub-section.]
(2) Delivery shall be made to the Board in such places63[at such times], and in such manner as the Board may direct, and such directions may provide for partial delivery to the surplus pool at any time whether or not at that time the70[free sale quota] has been exceeded; and the coffee delivered shall be such as to represent fairly in kind and quality the produce of the estate. The Board may reject any consignment offered for delivery which does not satisfy this requirement, but shall not reject any consignment merely for a defect in curing.
(3) Coffee delivered for inclusion in the surplus pool shall upon delivery to the Board remain under the control of the Board which shall be responsible for storage, curing where necessary, and marketing of the coffee.
(4) The Board shall,65[* * *]63[from time to time] prepare a differential scale for the valuation of coffee, and shall in accordance with that scale classify the coffee in each consignment delivered for inclusion in the surplus pool according lo its kind and quality, and shall make an assessment of its value based on its quantity, kind and quality.
(5) The Board may, with the consent of a registered owner,66[* * *] treat as having been delivered for inclusion in the surplus pool any coffee from such estate which the registered owner may agree to have so treated.
(6) When coffee has been delivered or is treated as having been delivered for inclusion in the surplus pool, the registered owner whose coffee has been so delivered or is treated as having been so delivered shall retain no rights in respect of such coffee except his right to receive the payments referred to in section 34-.
SECTION 26: SALES OF COFFEE BY THE BOARD
- (1) The Board shall take all practical measurers to market the coffee included in the surplus pool, and all sales thereof shall be conducted by or through the Board.
(2)The Board may purchase for inclusion in the surplus pool coffee not delivered for inclusion in it.
SECTION 27: COFFEE TO BE CURED IN LICENSED CURING ESTABLISHMENTS
- No registered owner
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