The Meghalaya Minerals Cess Act, Act No. 7 of 1988 (Act No. 7 of 1988)

 
The 16th May, 1988 
 
No. LL(B) 27/88/41.- The following Act, of the Meghalaya Legislative Assembly which received 
the assent of the Governor/President is hereby published for general information. 
 
MEGHALAYA ACT NO. 7 OF 1988 
THE MEGHALAYA MINERALS CESS ACT, 1988 
 
(As passed by the Meghalaya Legislative Assembly on 29th April, 1988) 
[Received the assent of the Governor on the 12th May, 1988] 
(Published in the Gazette of Meghalaya, Extra-ordinary, dated 16th May, 1988) 
An 
Act 
to provide for the levy and collection of Cess on some minerals of the State for the development 
of Primary education and for development and improvement of mining areas and for matters 
connected therewith. 
 
Be it enacted by the Legislature of the State of Meghalaya in the Thirty-ninth Years of the 
Republic of India as follows:- 
 
Short title, extent and 
commencement. 
1 (1) This Act may be called the Meghalaya Minerals Cess Act, 
1988. 
(2) It extent to the whole of State of Meghalaya. 
 
(3) It shall come into force on such date as the Government may 
by Notification in the Official Gazette  appoint, and different 
dates may be appointed for different areas. 
 
Definitions 2 In this Act unless there is anything repugnant in the subject for 
context-  
(a) ‘Act’ means the Meghalaya Minerals Cess Act, 1988;  
(b) ‘Cess’ means the tax leviable as cess under section 3; 
(bb)1 “ ‘dumping ground’ means a stack-yard or place where the  
        minerals are stacked after mining  and which stack-yard or  
        place is not more than one kilometer from the mine or  
        quarry
(ee) 
”. 
(c)‘Government’ means the Government of the State of  
      Meghalaya;  
(d) ‘minerals’ means coal, sillimanite, limestone and fireclay;  
(e) ‘prescribed’ means prescribed by the rules made under this Act; 
       and 
2“ ‘remove’ means to transport the minerals from a dumping  
        ground for the purpose of trading
 
 
 
 
 
 
”.  
(f) ‘section’ means a section of this Act; 
 
                                                 
1 Inserted by Amendment Act No.5 of 1989, sec 2 (i) 
2 Inserted by Amendment Act No.5 of 1989, sec 2 (ii) 
 
 
 
Imposition of cess 
 
3. On and from the coming into force of this Act, there shall be levied and 
collected as cess a tax on coal, sillimanite, limestone and fire-clay from 
any person who 1‘………….. ’ removes the minerals from any 
2‘dumping ground
Rate of Cess  
 
’ in the State according to the provisions of this Act; 
 
4. (1) The rate of the cess to be levied and collected under section 3 shall 
be, in the case of-  
(a) coal, rapees, ten per matric tonne;  
(b) sillimanite, rupees ten per matric tonne;  
(c) limestone, rupees two and paise eighty per matric tonne; and  
(d) fire clay, rupees one and paise twenty-five per matric tonne.  
(2) The rate of cess fixed under sub-section (1) may from time to time 
be revised by Government by notification in the official Gazette.  
 
Application to the 
proceeds of the 
tax  
 
5. The proceeds of tax collected under this Act shall first be credited to the 
Consolidated Fund of the State to be utilised, after due appropriation 
made by the Legislature by law, for the purpose of-  
(a) Developing primary education; and  
(b) Developing and improving the mining areas, in the State;  
 
Provided that not more than twenty per cent of the proceeds so collected 
shall at any time be utilised for the purpose referred to in clause (b). 
  
Manner of 
collection and 
payment of the 
tax.  
 
6. (1) The tax under this Act shall be leviable and payable in the manner 
as may be prescribed.  
(2) [3‘………………………………………………………………….
 
’].  
Penalty for non-
payment of tax  
 
7. If any tax payable under this Act is no paid within such period as may 
be prescribed it shall be deemed to be in arrears and the authority 
prescribed in this behalf may impose on the person 4‘…………..
Recovery of sums 
due  
 
’ 
removing the minerals a penalty not exceeding the amount  of tax in 
arrears;  
      Provided that before imposing the penalty such person shall be 
given an opportunity of being heard and if the said authority is satisfied 
that the default was for good and sufficient reason, no penalty shall be 
imposed under this section. 
  
8. Any tax due under this Act including any penalty under Section 7 if not 
paid within the time prescribed, shall be recoverable by detaining and 
selling by the authority prescribed in this behalf any mineral belonging 
to such person and if the sum cannot be so recovered the same shall be 
recoverable as if were an arrear of land revenue.  
 
 
 
 
 
                                                 
1 Deleted by Amendment Act No. 5 of 1989 Sec.3 (i). Earlier the words read as ‘extract or’. 
2Substituted by Amendment Act No.5 of 1989, Sec 3(ii) Earlier the words read as ‘mine or quarry’. 
3Deleted by Amendment Act No. 5 of 1989, Sec 4 . Earlier the sub -section read as ‘Unless the tax due under this 
Act has been paid no person shall remove or transport or attempt to remove or transport any mineral from any 
mine or quarry in the State’.  
4 Deleted by Amendment Act No. 5 of 1989, Sec 4 .Earlier the sub-section read as ‘extracting or’ 
 
 
Offences  
 
9. Whoever evades payment of the tax under this Act shall on conviction 
by a court be punishable with imprisonment for a term which may 
extend to six months or with fine which may extend to rupees two 
thousand or with both.  
 
Offences by 
companies.  
 
10. 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 for the conduct 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 such person shall not be liable to any punishment 
under this section if, he proves that the offence was committed without 
his knowledge and that he had exercised all due diligence to prevent the 
commission of such offence. 
  
Protection of 
action taken in 
good faith  
 
11. No suit, prosecution or legal processing shall lie against the 
Government or any of its officers or staff for anything done or intended 
to be in good faith done under this Act or the rules made there under.  
 
Power to make 
rules.  
 
12. (1) The Government may by notification in the official Gazette make 
rules for carrying out the purpose 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-  
(i) The manner of levy and payment of the tax;  
(ii) The time within which the tax and penalty (under Section 7) 
shall be paid;  
(iii) The authority which may impose penalty under Section 7;  
(iv) The authority which may detain and sell the minerals under 
Section 8;  
(v) The manner in which the Cess shall be applied for the purpose 
of this Act;  
(vi) The form of receipts for payment of the tax; and  
(vii) Any other matter that may have to be prescribed.  
 
 
 
 
E. W. MAIROM,  
Deputy Secretary to the Govt. Of Meghalaya,  
       Law (B) Department. 
 
 
 
THE UNDERLINED TEXT INDICATES THE INSERTION/SUBSTITUTION OF THE SUBSEQUENT 
AMENDMENTS TO THE MEGHALAYA MINERALS CESS ACT, 1988 (ACT NO. 7 OF 1988 ) 
AMENDED AND UPDATED UPTO THE YEAR 1989 OF THE ACT NO. 5.  

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