The ORISSA FOREST DEVELOPMENT (TAX ON SALE OF FOREST PRODUCE BY GOVERNMENT OR ORISSA FOREST DEVELOPMENT CORPORATION) ACT, 2003

 
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The Orissa Forest Development (Tax on Sale of Forest Produce by 
Government of Orissa Forest Development Corporation) Act, 2003 
 
Act 18 of 2003 
 
 
 
 
 
 
 
 
Keyword(s): 
Forest Development Corporation, Forest Produce, Recovery Officer, Sale or 
Sale of Forest Produce 
 
 
ORlSSA ACT 18 OF 2003. 
THE ORlSSA FOREST DEVELOPMENT.(TAX ON SALE OF FOREST PRODUCE BY 
GOVERNMENT OR ORlSSA FOREST DEVELOPMENT CORPORATION) ACT, 2003 
TABLE OF CONTENTS 
PREAMBLE : 
SECTIONS : 
' 1. Short title, extent and commencement 
2, Definilions 
3. Levy and collection of forest development tax 
4. Recovery of tax by Recovery Offrcer 
5. Appeal 
6. Utilisation of proceeds of lax 
7. Exemption from payment of tax 
8. Recovery of arrear of tax as arrear of land revenue 
9. protection of action taken in good faith 
10. Power to make rules 
11. Notifications to be laid before Assembly 
12. Power to remove difficullies 
13. Repeal and savings 
THE ORISSA FOREST DEVELOPMENT (TAX ON SALE OF FOREST PRODUCE BY 
GOVERNMENT OR ORISSA FOREST DEVELOPMENT CORPORATION) ACT, 2003 
[Received the assenl of the Governor on the 7th December 2003, first published in an 
extraordinary issue of Ihe Orissa Gazette, dated the 8lh-~ecember, 2003 ( No. 1863)j 
AN ACT TO PROVIDE FOR THE LEVY AND COLLECTION OF FOREST 
DEVELOPMENT TAX ON SALES OF FOREST PRODUCE BY OR ON BEHALF 
OF THE STATE GOVERNMENT OR THE ORISSA FOREST 
DEVELOPMENT CORPORATION. 
, - BE il enacted by the Legislature of the Slate of Orissa in the Fifty-fourth 
' 
Year of lhe Republic of India as follows :- 
Short 1i11e. 7, {I) This Act may be called the Orissa Forest Development (Tax on saIe 
extenl and of lorest produce by Government or Orissa Forest Development Corporation) 
mml. Act, 2003. 
(2) 11 extends to the whole of Ihe State of Orissa. 
(3) 11 shall be deemed to have come into farce on Ihe 18th day of July, 
2003. 
2. In lhis Acl, unless Ihe contexl otherwise requires.- 
(a) "Appel[ate Aulhoritf' means Ihe foresl officer, !he officer of Forest 
Developmenl Corporation or the officer of the Co-operalive Society, 
as the case may be, who is immediately superior to the concerned 
Recovery Officer ; 
(b) "Co-operalive Society' means a CO-operative Society registered ofissa As, 
under the Orissa Co-operative SocieIies Act, 1962 ; ' 2 of 1963. 
(c) "Foresl Development Corporalion" means the Orissa Forest 
Developmenl Corporation Limited, incorporaled under the Companies 
Act, 1956; 1 01 1956. 
(d) "forest produce" means bamboo, timber, kendu leaf and such olher 
produce as Government may. by notification, specify from time to 
time ; 
-(el "Governmenl" means the Governmenl of Orissa ; 
(g "Recovery Officer" in relalion to the sale of any forest produce, means 
Ihe forest officer or (he officer of Forest Development Corporation or 
the officer of any Co-operative Society, as the case may be, by whom 
Ihe sale of forest produce is effecled, and if any question arises as 10 
who is the Recovery Officer in respect of the sale, the same shall be 
referred lo, and decided by. the Principal Chief Conservator of 
Forests, Orissa and his decision shall be final ; 
(g) "sale" or "sale of forest produce" means any sale of forest produce 
by or on behalf of Government or Foresl Development Corporation 
'For the Bill, see Orissil Gazelle, ~xlraoidinar~, dated lhe 271h October. 2003 [No. 1633). 
Levy and 
collectio~l ol 
Ioresl 
developmenl 
tax. 
Recovery of 
lax by 
Rerovev 
Oficer 
Appeal 
Utilisation 
of proceeds 
ol lax. 
for cash or deferred paymenl or olher valuable consideration whether 
described as sale price, purchase price or royalty, and includes any 
such sale of lorest produce by a Co-operative Society on behalf of 
Government or Forest Development Corpora tion : 
(h) "sale price" means the amounl of valuable consideralion. whether 
described as sale price or purchase price or royalty paid or payable 
by any purchaser lor sale of any forest ~roduce to him and lhe words 
"sale" and "purchase" with their respective grammatical variations 
.,.and cognale expressions, shall be-construed accordingly ; and 
ji) words and expressions used but not defined in this Act and defined 
in Ihe O~issa Forest Act, 1972, shall have the meanings respectively 
assigned b them in that Acl. Orlssa AC~ 
14 ol1872 
3. (1) Subject to Ihe provisions of this Act, there shall be levied and 
collected on and from the commencement of this Ad a forest development tax 
on every sale of forest produce from lhe purchaser. at such rate, not exceeding 
twenty per centum of the sale price of such produce sold to him, as the 
Government may, by nolificalion, fix in that behalf. and differenl rales may be 
fixed for different forest produce 
(2) The forest development (ax levied and payable under this Acl shall 
be in addilion to and not in lieu of any tax levied and payable in respecl of the 
sale or purchase or lhe same forest produce under the Orissa Sales Tax Act, 
1947 or any other law for Ihe time being in force. Orissa ~ct 
14 01 1947 
(3) Notwithstanding anyting contained in sub-section (1). where any sale 
has been effecled before the commencement of this Act and under the terms 
and conditions of such sale, the whole or any par1 of Ihe sale price is payable 
on or after such commencement, no forest development tax shall be levied 
and collecled on the whole or part of the sale price's0 payable. 
, 4. The amount of Ihe forest development (ax leviable under section 3 on the 
sale of any foresl produce shall be collected by the Recovery Off~cer effecting lhe 
sale From the purchaser along with the sale price : 
Provided that where the sale price is payable in lwo or more inslalments. 
the amount of Ihe lax shall also be recovered in instalments in proporlion to, and 
along with, Ihe ~nstalrnent of sale price. 
5. (1) Any person aggrieved by an order made by the Recovery Officer 
demanding the amount of forest development lax due from him or aggrieved by 
any other order made by the Recovery Officer. may, within thirly days from the 
date of receipt of intimalion of any such order, appeal to the Appellate Authorily, 
upon which, the Appellate Authorily shall. afler giving reasonable opporluni(y of 
being heard to the appellanl, pass such order as it may deem fit. , 
(2) Any order passed by the Recovery Officer, subject lo the order passed 
in appeal, if any, shall be final. 
6. The proceeds of the forest deve10'~ment lax levied and collecled under 
this Acl shall be crediled to the consolidated Fund of Ihe State, and iheieafter, 
after deducling from the proceeds no1 exceeding five per cenlum thereof lowards 
523 
the expenses of colleclion, the remaining amount shall; under appropriation duly 
made by law in this behalf, be placed at Ihe disposal or the Forest Department of 
Government each year as additional budgelary resources to be expended lor 
foris1 plantations, conservation, regeneration and development of foresls. 
Exemption 7. The Government may, if it considers necessary to do so, in the public 
lroril payment 
01 law. interest subject to such condition, if any, exempt sale of any forest produce from 
payment of forest development tax as prescribed. 
Recove ol . 8. All arrears of forest development tax due under this Acl shall be recover- - arrear oKax as 
arrear or land able as an arrear of land revenue. 
revenue. 
P~oteclian of 9. No suit, prosecution or other legal proceedings shall lie against Govern- 
action laken in 
good men1 or any officer of Government or Forest Development Corporation or of any 
Co-operative Sociely for anything which is in good faith done or intended to be 
done under this Act or anyrule made thereunder. 
Power to 10. The ~overnrnent may, by notification. make rules to carry out the pur- 
make rules. 
poses of this Act. 
Notificalions - 11.'All nolifications issued under clause (d) of section 2 and sections 3 and 
lo he laid 
before 7 shall. as soon as may be after they are pubrished in the Gazette, be laid before 
Assembly. the Orissa Legislative Assembly for a total period of fourteen days which may 
comprise in one or more sessions. 
Power to 12. If any difficully arises in giving effect to the provisions of this Act. 
remove 
. dl,hcullieS, Government may. make su~h provisions nol inconsistent with the provisions of 
this Act, as may appear lo be necessary for removing the difficulty by amending 
the rules. 
Repeal and 13. (1) The Orissa Forest Development (Tax on sale of forest produce by 
savrngs. Government or Orissa Forest Development Corporation) Ordinance. 2003 is Orissa 
Ordinance hereby repealed. NO. 3 at 
2003. 
(2) Nolwithstanding such repeal, anything done ar any action taken un- 
der the Ordinance so repealed shall be deemed to have been done or taken 
under Ihe corresponding provisions of this Acl. 

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