LexThe Telangana Sugarcane (Regulation of Supply and Purchase) Act, 1961.
Telangana · state statute
Open in Lexace · Ask the AI about this actTHE TELANGANA SUGARCANE (REGULATION OF SUPPLY AND
PURCHASE) ACT, 1961.
(ACT NO. XLV OF 1961)
ARRANGEMENT OF SECTIONS
Sections
1. Short title, extent and commencement.
2. Definitions.
3. Constitution of the committee.
4. Functions of the committee.
5. Constitution of Council.
6. Functions of the Council.
7. Casual vacancy in the Council.
8. Council Fund.
9. Appointment of Cane Commissioner.
10. Appointment of Deputy Cane Commissioner.
11. Inspectors.
12. Estimate of cane required by a factory and
fixation of minimum quantity of cane to be
crushed.
13. Register of cane growers and cane growers’ co-
operative societies.
14. Power of survey, etc.
15. Declaration of factory zone.
16. Regulation of supply and purchase of cane in
factory zone.
17. Appeal.
18. Revision.
2 [Act No. XLV of 1961]
19. Payment of cane price.
20. Power to declare varieties of cane as unsuitable
for use in factories or khandasari units.
21. Levy of tax on purchase of cane.
21-A. Finality of levy of tax.
22. Determination of occupier of factory or owner of
khandasari unit for the purposes of this Act.
23. Penalties.
23-A. Confiscation of vehicles and weigh bridges.
24. Institution of proceedings.
25. Composition of offences.
26. Special powers of Magistrates.
27. Protection of acts done in good faith.
28. Power to make rules.
29. Repeal and savings.
30. Validation.
31. Power to remove difficulties.
Schedule.
THE TELANGANA SUGARCANE (REGULATION OF
SUPPLY AND PURCHASE) ACT, 1961.1
ACT No.XLV OF 1961.
1. (1) This Act may be called the 2Telangana Sugarcane
(Regulation of Supply and Purchase) Act, 1961.
(2) It extends to the whole of the 2State of Telangana.
(3) It shall come into force on such date 3 as the State
Government may, by notification in the Telangana Gazette,
appoint and they may appoint different dates for different
areas and for different provisions of this Act.
2. In this Act, unless the context otherwise requires,-
4[(a) „bel‟ means a unit engaged or ordinarily engaged
in the man ufacture of rab and capable of handling not less
than five metric tonnes of sug arcane per day for that
purpose;
(aa) „cane‟ means sugarcane intended for use in a
factory or a khandasari unit and includes the sugarcane
intended for manufacturing rab or gur;]
(b) „Cane Commissioner‟ means the officer appointed to
be the Cane Commissioner under section 9;
1. The Andhra Pradesh Sugarcane (Regulation of Supply and Purchase)
Act, 1961, received the assent of the President on the 23 rd December,
1961. The said Act in force in the combined State, as on 02.06.2014, has
been adapted to the State of Telangana, und er section 101 of the
Andhra Pradesh Reorganisation Act, 2014 (Central Act 6 of 2014) vide.
the Telangana Adaptation of Laws Order, 2016, issued in G.O.Ms.No.45,
Law (F) Department, dated 01.06.2016.
2. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
3. Came into force on 5th January, 1962.
4. Substituted by Act No.4 of 1967.
Definitions.
Short title, extent
and
commencement.
2 [Act No. XLV of 1961]
(c) „cane grower‟ means a person who cultivates cane,
whether by himself or by his own servants or by hired labour
or by members of his family or by his tenants and includes a
cane growers‟ co-operative society as defined in clause (d)
but not a member thereof and a compan y as defined in
section 3 of the 5Companies Act, 1956 (Central Act I of
1956);
6[(d) „cane growers ‟ „co-operative society ‟ means a
society registered or deemed to be registered under the
Telangana Co-operative Societies Act, 1964, which has
among its objects and functions the sale of cane grown by
its members, whose names are entered in the register of
cane growers maintained under sub -section (1) of section
13, and who are members of a co -operative factory; and
includes the federation of any such societies;]
(e) „Collector‟ means the Collector of a district and
includes a Revenue Divisional Officer, a Deputy Collector, a
Sub-Collector and an Assistant Collector ;
(f) „committee‟ means the Telangana Sugarcane
Advisory Committee constituted under section 3 ;
(g) „council‟ means the Cane Development Council
constituted under section 5 ;
(h) „crushing season‟ means the period beginning on
the 15th November in any year and ending on the 30th April
next following or any other period notified by the Cane
Commisioner in consultation with the council in respect of
any particular factory 7[or khandasari unit;]
5. Now see the provision of the Companies Act, 2013 (Central Act No.18
of 2013).
6. Substituted by Act No.25 of 1976.
7. Added by Act No.4 of 1967.
Act No. 7 of 1964.
[Act No. XLV of 1961] 3
(i) „factory‟ means any premises, including the precincts
thereof, wherein twenty or more workers are working or
were working on any day during the preceding twelve
months and in any part of which any manufacturing process
connected with the production of su gar by means of
vaccum pans is being carried on with the aid of mechanical
power ;
(j) „factory zone‟ means an area assigned to a factory
under section 15 ;
(k) „Government‟ means the State Government ;
8[(kk) „khandasari sugar‟ means sugar produced by
open-pan process in a khandasari unit from sugarcane
juice, or from rab or gur or both, containing more than
eighty per cent sucrose ;]
9[(kkk) „khandasari unit‟ means a unit which is engaged
or ordinarily engaged in the manufact ure or production of
khandasari sugar and which is capable of handling
sugarcane juice produced with the aid of a crusher driven
by any mechanical power ; and includes such other unit
engaged or ordinarily engaged in the manufacture or
production of gur or rab ;]
(l) „notification‟ means a notification published in the
10Telangana Gazette;
(m) „occupier of a factory‟ means the person who, or the
authority which, has the ultimate control over the affairs of
the factory, and, where the said affairs are entrusted to a
secretary, manager, managing director, operative director or
8. Inserted by Act No.4 of 1967.
9. Substituted by Act No.25 of 1976.
10. Substituted by G.O.Ms.No.45, Law (F) Department, dated
01.06.2016.
4 [Act No. XLV of 1961]
managing agent, such secretary, manager, ma naging
director, operative director or managing agent shall be
deemed to be the occupier of the factory;
11[(mm) „owner of a khandasari unit‟ means the person
who, or the authority which, owns or has the ultimate control
over the affairs of the khandasari unit and where the said
affairs are entrusted to the Secretary, Manager, or Managing
Director, such Secretary, Manager, or Managing Director
shall be deemed to be. the owner of the khandasari unit;]
(n) „prescribed‟ means prescribed by rules made under
this Act.
3. (1) As soon as may be after the commencement of this
Act, the Governmen t shall, by notification, constitute a
committee for the State to be called the Telangana
Surgarcane Advisory Committee.
(2) The comm ittee shall consist of the following
members, namely :-
12[(a) the Ministers in charge of Sugar, Agriculture,
and Industries;]
(b) the Heads of Departments of Agriculture,
Industries and Co-operation;
13[(bb) the Director of Sugars, 14Telangana and the
Managing Director of the Nizam Sugar Factory;]
(c) the Cane Commissioner;
11. Inserted by Act No.4 of 1967.
12. Clause (a) substituted by Act No.25 of 1976. Subsequently
substituted by Act No.12 of 2007.
13. Inserted by Act No.25 of 1976.
14. Substituted by G.O.Ms.No.45, Law (F) Department, dated 01.06.2016.
Constitution of the
committee.
[Act No. XLV of 1961] 5
(d) seven persons from among persons representing
the factories, nominated by the Government in consultation
with the South Indian Sugar Mills Association and such
other representative body as the Government may think fit,
provided that no two members shall be from the same
district;
15[(e) two persons from among persons representing
the khandsari units, nominated by the Government;
(f) nine persons from among the cane growers
nominated by the Government.]
(3) 16[The Director of Marketing, the Sugarcane
Specialists, the Deputy Cane Commi ssioner, the Deputy
Director of Agriculture (Sugarcane Development),
Anakapalli, the Chief Engineer for Panchayati Raj, the Chief
Engineer for Roads and Buildings and the Chief Engineer
for Public Health] shall have the right to speak in and
otherwise to take part in t he proceedings of any meeting of
the committee, but shall not by virtue of this sub -section be
entitled to vote at any such meeting.
(4) The Deputy Cane Commissioner shall be ex -officio
the secretary of the committee.
16[(5) The Minister in charge of 17[Sugar] shall be the
Chairman of the Committee, ex -officio. In his absence, such
other Minister as may be nominated by him shall preside at
a meeting of the Committee. If all the Ministers are absent,
such member of the Committee whom the Minister in
charge of 17[Sugar] has nominated in this behalf, shall
preside at any such meeting.]
15. Substituted by Act No.4 of 1967.
16. Substituted by Act No.25 of 1976.
17. Substituted by Act No.12 of 2007.
6 [Act No. XLV of 1961]
(6) The term of the committee shall be three years but
the Government may if they are satisfied that it is necessary
to do so, by order dissolve the committee before the expiry
of its term.
(7) When the committee is dissolved, all the members
referred to in clauses (d) and (e) of sub -section (2) shall
vacate their offices on the date specified in the order but
without prejudice to their eligibility for re -nomination as
members and the new committee shall be reconstituted
within three months of its dissolution by the Government in
accordance with the provisions of sub-section (2).
4. The committee shall advise the Government on the
following matters, namely :-
(a) the regulation of supply and purchase of cane for
factories 18[and khandasari units];
(b) the varieties of cane which are suitable or unsuitable
for use in factories 18[and khandasari units];
(c) the maintenance of hea lthy relations between
occupiers of factories, 19[owners of khandasari units] cane
growers, cane growners co -operative societies and
councils;
(d) such other matters as may be prescribed.
5. (1) For each factory zone, the Cane Commissioner shall,
by notification, constitute a Cane Development Council
which shall be a body corporate by the name of the factory
zone for which it is constituted, having perpetual succession
and a common seal with p ower to acquire, hold and
18. Added by Act No.4 of 1967.
19. Inserted by Act No.4 of 1967.
Functions of the
committee.
Constitution of
Council.
[Act No. XLV of 1961] 7
dispose of property and to enter into contracts, and may by
its corporate name sue and be sued:
Provided that the Cane Commissioner may with the
approval of the Government constitute a council for an area
which is larger or smaller than a particular factory zone.
(2) The council shall consist of the following members,
namely:-
(a) a Chairman nominated by the Cane
Commissioner with the approval of the Government from
among persons residing in the factory zone.
(b) four persons nominated by the Cane
Commissioner of whom two shall be from among the
persons managing the affairs of the factory and two shall be
from among the cane growers who supply cane to the
factory.
(3) The Secretary to the Zilla Parishad, the District
Agricultural Officer, the Superintendent of the Local
Sugarcane Farm, the Sugarcane Specialist, the Sugarcane
Inspector of the fact ory, the Deputy Registrar of
Co-operative Societies, 20[the Executive En gineer,
Panchayati Raj, the Executive Engineer, Roads and
Buildings and the Executive Engineer, Public Health] shall
have the right to speak in and otherwise to take part in the
proceedings of any meeting of the council, but shall not by
virtue of this sub -section be entitled to vote at any such
meeting.
(4) The Sugarcane Inspector of the factory shall be
ex-officio secretary of the council.
20. Substituted by Act No.25 of 1976.
8 [Act No. XLV of 1961]
(5) The term of the council shall be three years and
upon its expiry, the council shall be reconstituted in
accordance with the provisions of sub-section (2):
Provided that if the Cane Commissioner is satisfied that
it is necessary so to do, he may, with the approval of the
Government, by order dissolve the council before the expiry
of its term:
Provided further that the Cane Commissioner shall not
pass any such o rder unless the council has had an
opportunity of making its representations.
(6) When a council is dissolved, the following
consequences shall follow :-
(a) all the members shall vacate their offices on the
date specified in the order but without prejudice to their
eligibility for renomination as members;
(b) the council shall be reconstituted within three
months of its dissolution by the Cane Commissioner in
accordance with the provisions of sub-section (2);
(c) the powers and functions of th e council shall,
pending its reconstitution, be exercised and performed by
the secretary subject, to such restrictions as may be
specfied in the order.
(7) The Cane Commissioner may, with the approval of
the Government remove any member of the council,
including the Chairman from his office after recording the
reasons in writing for such removal:
Provided that the order removing a member shall not be
passed by the Cane Commissioner unless such member
has had an opportunity of making his representations.
[Act No. XLV of 1961] 9
6. (1) The functions of the council shall be-
21[(a) to consider and approve the programme of
development for the factory zone, with the funds at the
disposal of the council;]
(b) to devise ways and means for the execution of the
development plan in all its es sentials such as cane varieties
(including ratoons) rotation, cane seed, sowing programme,
fertilizers and manures ;
21[(c) to recommend to the 22Zilla Praja Parishad, the
municipality concerned or the Public Works De partment
(Roads and Buildings) as the case may be, the undertaking
of the construction and improvement of roads leading to
sugarcane areas in the factory zone from out of the funds
specially allotted by the Government for the purpose ;]
(d) to take necessary steps for the prevention and
control of cane diseases and pests and to render all
possible help for the development of cane ;
(e) to impart technical training to cultivators in matters
relating to the production of cane;
(f) to administer the funds at its disposal for the
execution of the development scheme;
(g) to lay down the general principles in regard to the
issue of orders regulating the cutting of cane and to decide
disputes relating th ereto on receipt of c omplaints from the
cane growers;
21. Substituted by Act No.25 of 1976.
22. Substituted by Act No.41 of 2006.
Functions of the
Council.
10 [Act No. XLV of 1961]
(h) to perform other prescribed functions pertaining
or conducive to the general improvement of the factory
zone.
23[(2) The Government may, by rules made in this
behalf, provide for the conduct of a joint meeting of all or
any of the councils in a district and for the procedure to be
followed thereat.]
7. A casual vacancy in the council shall be filled up, as for
as may be, in the manner provided in sub -section (2) of
section 5 for the unexpired term of the member whose place
has fallen vacant.
8. (1) There shall be a fund at the disposal of the council to
meet the charges in connection with the performance of its
functions under this Act.
(2) The fund of the council shall consist of-
(a) grants, if any, 23[made by the Central Government
or the State Government;]
(b) contributions made by the factories, cane growers
and cane growers' co -operative societies 23[at such rates as
may be prescribed;]
(c) any other sums which the Government may
require to be credited to it.
9. (1) The Director of Agriculture shall ex -officio be the
Cane Commissioner for the purposes of this Act, provided
that the Government may at any time appoint any other
officer or person to be the Cane Commissioner.
23. Substituted by Act No.25 of 1976.
Casual vacancy in
the council.
Council Fund.
Appointment of
Cane
Commissioner.
[Act No. XLV of 1961] 11
(2) The Cane Commissioner shall exercise and perform
the powers and functions conferred or imposed upon him
by or under this Act.
10. (1) The Government may appoint an officer with
experience in cane to be Deputy Cane Commissioner for the
purposes of this Act.
(2) A Deputy Cane Commissioner shall exercise such
powers and discharge such functions of the Cane
Commissioner as the Government may direct or as the
Cane Commissioner may delegate to him.
11. (1) The Government or any authority or officer
empowered by them may, for the purposes of this Act,
appoint those persons or officers of the Government who in
the opinion of the Government or the authority or officer so
empowered possess knowledge and experience in cane to
be Inspectors within such local limits as may be assigned to
them.
(2) The Inspectors shall perform the functions and
exercise the powers imposed or conferred upon them by or
under this Act.
12. (1) The Cane Commissioner may, for the purposes of
section 15, by order, require the occupier of any factory to
furnish to him in the manner and on the date 24[xxx]
specified in the order an estimate of the quantity of cane
required by the factory during any crushing season.
(2) The Cane Commissioner shall examine every such
estimate in consultation with the council concerned and
shall publish the same with such modification s, if any, as he
24. The words “fixed by the Council and” are omitted by Act No.25 of
1976.
Appointment of
Deputy Cane
Commissioner.
Inspectors.
Estimate of cane
required by a
factory and
fixation of
minimum quantity
of cane to be
crushed.
12 [Act No. XLV of 1961]
may make. He shall also make an order fixing in the
prescribed manner the minimum, quantity of cane to be
crushed by the factory during the season.
13. 25[(1) The occupier of a factory shall maintain in the
prescribed form a register of all cane growers who sell cane
to that factory in accordance with the provisions of section
15 and sub-section (1-A) of section 16. A copy of the entries
made in the register shall be forwarded to the council and to
the Sugarcane Inspector, not later than the 30th September
of each year.]
(2) The Government may make rules to provide for-
(a) the correction of entries made in the register and
the addition of new entries if necessary,
(b) the supply of copies of entries made in the
register on payment of the prescribed fee.
14. (1) If, in the opinion of the Cane Commissioner, it is
necessary for the purposes of section 15 that a survey of the
area from which a cane grower supplies cane to a factory
should be made, he may by order provide for a survey of
such area to be made in such manner and by such officers
as may be prescribed.
(2) (a) The cost of survey under sub -section (1) shall be
recovered in such proportion as may be prescribed from –
(i) the occupier of the factory;
(ii) the cane grower;26[xxx]
25. Substituted by Act No.25 of 1976.
26. The word “and” omitted by Act No.25 of 1976.
Register of cane
growers and cane
growers‟ co-
operative
societies.
Power of survey,
etc.
[Act No. XLV of 1961] 13
(iii) the Government.
(b) Any amount due from the occupier of a factory or
a cane grower towards the cost of survey shall be
recoverable as an arrear of land revenue.
15. The Cane Commissioner may, after consulting the
factory and the council concerned, by order declare any
area as the factory zone for the purposes of supply of cane
to the factory 27[during five crushing seasons immediately
following the date of the order] a nd may, likewise at any
time, cancel such order or alter the bou ndaries of the area
so declared:
Provided that the villages from which cane was being
supplied to the factory during the five crushing seasons
27[ending with the crushing season immediately preceding
the date of the order] shall be included in the factory zone of
that factory, the order of priority in the selection of villages
being based on the maximum number of years of supply by
each such village.
16. (1) Where an area has been declared as the factory
zone for a factory, 28[the occupier of such factory shall, save
as otherwise provided in sub -section (1-A), purchase] such
quantity of cane grown in that area and offered for sale to
the factory as may be determined by the Cane
Commissioner in accordance with the provisions of the
Schedule.
29[(1-A) The occupier of a co -operative factory shall,
notwithstanding anything to the contrary in the Schedule
and notwithstanding that an area has been declared as the
factory zone for the said factory, purchase in accordance
27. Substituted by Act No.25 of 1976.
28. Substituted by Act No.3 of 1970.
29. Inserted by Act No.3 of 1970.
Declaration of
factory zone.
Regulation of
supply and
purchase of cane
in factory zone.
14 [Act No. XLV of 1961]
with the bye -laws of the factory, such quantity of cane as
may be required by the factory and offered for sale by the
members of the said factory, whether they grow cane within
or outside the factory zone] 30[after obtaining the prior
permission of the Cane Commissioner on furnishing him
such particulars as may be prescribed.]
(2) No cane grower in a factory zone shall sell or supply
cane to any factory or other person otherwise than in
accordance with the provisions of the Schedule.
31[(2-A) No person other than the occupier of a factory
for which a factory zone has been declared shall purchase
cane in the factory zone otherwise than in accordance with
the provisions of the Schedule.]
(3) The Government may, by notification, alter, add to or
cancel the schedule :
Provided that no such notification shall take effect
unless it is laid on the Table of the Legislature.
17. An appeal shall lie to the Government against any order
passed by the Cane Commissioner under this Act.
18. The Govemment may at any time either suo motu or on
application made to them, call for and examine the records
relating to any decision or order passed or proceeding
taken by any authority or officer subordinate to them under
this Act for the purpose of s atisfying themselves as to the
legality or propriety of such d ecision or order or as to the
regularity of such proceeding and pass such order in
reference thereto as they think fit:
30. Added by Act No.25 of 1976.
31. Inserted by Act No.25 of 1976.
Appeal.
Revision.
[Act No. XLV of 1961] 15
Provided that the Government shall not pass any order
prejudicial to any party unless he has had a reasonable
opportunity of making his representations.
19. (1) The occupier of a factory 32[or owner of a khandasari
unit] shall make suitable provision to the satisfaction of the
Cane Commissioner for th e payment o f the price of cane
supplied to the factory.
(2) Upon the delivery of cane, the occupier of a factory
32[or owner of a khandasari unit] shall be liable to pay within
fourteen days from the date of such delivery the price of the
cane so supplied.
32[(2-A) The price of the cane remaining unpaid, on the
expiration of the period specified in sub -section (2) shall
carry interest at fifteen percent per annum from the date of
delivery of cane and it shall be recovered as an arrear of
land revenue.]
(3) 33[If any occupier of a factory or the owner of a
khandasari unit fails to pay the price of the cane sold to him
in accordance with the provisions of sub -section (2) or the
interest payable under sub -section (2 -A), he shall, in
addition to the said price or the interest] being recovered
from him as an arrear of land revenue, be liable to the
penalty provi ded for under clause (b) of sub -section (4) o f
section 3 of the Essential Commodities Act , 1955 (Central
Act 10 of 1955), as if he has contrave ned a direction issued
under that clause.
34[(4) Without prejudice to the provisions of the
foregoing sub -sections, where the occupier of a factory or
the owner of a khandasari unit or any other person
32. Inserted by Act No.25 of 1976.
33. Substituted by Act No.25 of 1976.
34. Added by Act No.25 of 1976.
Payment of cane
price.
16 [Act No. XLV of 1961]
competent in that behalf, enters into an agreement with a
bank under which the bank agrees to give advance to him
on the security of sugar produced or to be produced in the
factory or khandasari unit, the said occupier, owner or other
person, as the case may be shall provide in such agreement
that such percentage, which shall not be less than fifty per
cent of the total amount of advance, as may be prescribed,
shall be set apart and be available only for payment to cane
growers or other co -operative societies on account of the
quantity of sugarcane purchased or to be purchased for the
factory or khandasari unit during the current crushing
season from those cane growers or from or through those
societies and interest thereon and such societies,
commission in respect thereof.
(5) Every such occupier, owner or other person as
aforesaid shall send a copy of every such agreement to the
Collector and Cane Commissioner within a week from the
date on which it is entered into.]
20. (1) The Cane Commissioner may, by order, declare that-
(a) cane of any variety grown in any area specified in
such order is unsuitable for use in all or any of the factories
35[or the khandasari units] situated in the said area ;
(b) ratoon cane of any variety grown in any area
specified in such order is unsuitable for use in all or any of
the factories 36[or the khandasari u nits] situated in the said
area;
(c) seed cane of any variety is unsuitable for
distribution to cultivators in any area specified in such order.
35. The words “or the Khandasari units” inserted in clause (a) and
added at the end in the marginal heading by Act No.4 of 1967.
36. Inserted by Act No.4 of 1967.
Power to declare
varieties of cane
as unsuitable for
use in factories
[or khandasari
units].
[Act No. XLV of 1961] 17
(2) The order under sub -section (1) shall be issued
before the 31st October in any calendar year:
Provided that the Cane Commissioner may for reasons
to be specified therein issue the order in respect of any
particular 37[factory or khandasari unit] on any other date
which he considers suitable in the case of such 37[factory or
khandasari unit.]
(3) Where any seed cane of any variety has been
declared under sub -section (1) to be unsuitable for
distribution to cultivators in any area, the occupier of a
factory or any other person acting on his behalf or a cane
grower or cane growers‟ co -operative societ y shall not
distribute seed cane of such variety to any person to be
used by cane growers or members of cane gr owers‟
co-operative societies in any area.
(4) Where cane or ratoon cane of any variety has been
declared under sub-section (1) to be unsuitable 37[for use in
a factory, or a khandasari unit, the occupier of such factory:
or the owner of such khandasari unit] or any other person
acting on his behal f or a cane gro wer or a cane growers‟
co-operative society shall not plant cane of any such variety
or keep ratoon cane of any such variety.
21. 38[(1) The Government may , by notification, levy a tax at
a rate not exceeding 39[one hundred rupees] per metric
tonne on the purchase of cane required for use,
consumption or sale in a factory or a khandasari unit.]
(1-A) [xxx]
37. Substituted by Act No.4 of 1967.
38. Sub-section (1-A) inserted by Act No.4 of 1967. For sub -section (1)
and (1-A) sub-section (1) substituted by Act No.8 of 1974.
39. Substituted by Act No.10 of 1995.
Levy of tax on
purchase of cane.
18 [Act No. XLV of 1961]
(2) The Government may, by notification, remit in whole
or in part such tax in respect of cane used or intended to be
used in a factory 40[or khandasari unit] for any purpose
specified in such notification.
41[(3) Notwithstanding anything in any other law for the
time being in force, any sum due to the Government
towards the purchase tax levied under this section shall be a
first charge on the sugar produced out of cane already
subject to purchase tax. No occupier of a factory or owner
of a khandasari unit shall remove or cause to be removed
any sugar produced in the factory or khandasari unit on or
after the date specified by the Cane Commissioner in this
behalf, either for consumption or for sale or for manufacture
of any other commodity in or outside the factory or
khandasari unit, until he has paid such sum:
Provided that such sugar may be deposited without
payment of any such sum in a godown or otber place of
storage approved by the assessing authority and where it is
so deposited it shall not be removed therefrom until the sum
as aforesaid has been paid.
(3-A) Before the beginning of each crushing season or
as soon thereafter as may be, and in the case of crushing
season beginning on the date of commencement of the
Andhra Pradesh Sugarcane (Regulation of Supply and
Purchase) (Amendment) Act, 1976, as soon as may be after
such commencement, the assessing authority shall work
out and specify the provisional amount of tax calculated per
metric tonne of sugar under sub -section (1), by correlating
the quantity of sugarcane purchased for the factory or
khandasari unit to the sugar produced in the factory or
khandasari unit during the last preceding crushing season
40. Inserted by Act No.4 of 1967.
41. Sub-sections (3) to (3-D) substituted by Act No.25 of 1976.
[Act No. XLV of 1961] 19
in which the factory or khandasari unit was under
production.
Explanation I .- If the factory or khandasari unit was
under production during only a part of any such previous
crushing season, it shall be sufficient to take into
consideration that part of the crushing season during which
the factory or khandasari unit was actually under
production.
Explanation II.- If the factory or khandasari unit ha d not
commenced production before the crushing season for
which the provisional assessment is made, then the
assessing authority may specify the provisional amount of
tax on the basis of comparable data relating to other
factories or khandasari units, if a ny, in the same region or of
any other relevant factor.
(3-B) At the end of the crushing season, the assessing
authority shall work out and specify a revised amount of tax
to be paid, by taking into account the quantity of sugarcane
purchased for the fac tory or khan dasari unit and the sugar
produced in the factory or khandasari unit during the current
crushing season, and where the amount is reduced or
increased on such revision, the excess paid or the deficit, as
the case may be, shall be spread over the remaining stock
of the said sugar, and the amount to be paid before removal
of such stock of sugar shall be refixed accordingly; and if no
such sugar remains in stock, then the owner shall be
entitled to a refund or liable to pay the balance, as the case
may be.
(3-C) If at any time it appears to the assessing authority
that a part of the stock of the said sugar has been removed,
or is for any othe r reason no longer available, and the
payment towards tax due against such part under this
section has not been made, the assessing authority may
20 [Act No. XLV of 1961]
direct the deficit to be recovered by spreading it over the
sugar in stock at that time.
(3-D) In relation t o the tax levied under sub -section (1)
and in respect of purchase of sugarcane on or after the date
of commencement as aforesaid,-
42[(a) sub -sections (4) and (5) shall apply from the
date of purchase of sugarcane from the growers;]
(b) sub-section (3-C) shall apply with the modification
that where the assessing authority is satisfied that the
occupier of a factory or owner of a khandasari unit has
removed or caused to be removed any sugar in
contravention of the provisions of this section or has fai led
to account fully for the sugar produced in the factory or
khandasari unit or deposited by him under the proviso to
sub-section (3) the person liable to pay the tax shall in
addition to the amount payable under sub -section (3) in
respect of the quantity of sugar so removed or caused to be
removed or unaccounted for, be also liable to pay by way of
penalty a further sum not exceeding one hundred per cent
of the sum so payable;
(c) the provisions of this sub -section sball be without
prejudice to the provisions of sub-section (3-C)]
(4) The tax payable under sub -section (1 ) 43[xxx] shall
be levied and collected from the occupier of the factory 44[or
owner of the khandasari unit] in such manner and by such
authority as may be prescribed;
42. Substituted by Act No.6 of 2000.
43. The words “or sub -section (1-A)” inserted by Act No.4 of 1967 was
omitted by Act No.8 of 1974.
44. Inserted by Act No.4 of 1967.
[Act No. XLV of 1961] 21
(5) Arrears of tax shall carry interest 45[at such rate as
may be prescribed.]
(6) If the tax under this section together with the interest,
if any, due thereon, is not paid by the occupier of a factory
46[or owner of a khandasari unit] within the prescrib ed time,
it shall be recoverable from him as an arrear of land
revenue.
47[provided that the total amount due as tax under this
section together with interest, if any, due thereon shall be
communicated under the signature of the Cane
Commissioner to the Collector for its recovery as an arrear
of land revenue.]
48[21-A. (1) Any occupier of a factory or owner of a
khandasari unit who is aggrieved by the levy of tax made in
pursuance of section 21 may, within thirty days of the
communication to him of the order levying the tax, appeal to
such authority as the Government may, by notification,
appoint in this behalf, for the cancellation or modification of
the levy of tax and on such appeal, the said authority may
cancel or modify the tax and order the refund to such
occupier or owner of the whole or part, as the case may be ,
of the amount paid thereunder:
Provided that the authority so appointed shall not be
inferior in rank to the authority by which the tax was levied.
(2) Where the appellate authority is of opinion that any
tax has been short -levied, no order enhancing the tax shall
be made unless the appellant has been given notice to
45. Substituted by Act No.25 of 1976.
46. Inserted by Act No.4 of 1967.
47. Added by Act No.25 of 1976.
48. Section 21 -A, along with the marginal heading inserted by Act No.4
of 1967.
Finality of levy of
tax.
22 [Act No. XLV of 1961]
show cause, within one month from the date of
communication thereof, against the proposed order.
(3) The Government may, on the application of any
person aggrieved by any order made under sub -section (1)
or sub -section (2), cancel or modify such order, if such
application is made within sixty days from the date of the
communication, to him of the order made under sub-section
(1) or sub-section (2), as the case may be.
(4) The decision of the Government and subject to the
decision of the Government, the descision of the appellate
authority, shall be final.]
22. (1) Where the occupier of a factory 49[or owner of a
khandasari unit] is a firm or other association of individuals,
any one or more of the partners or members thereof may be
prosecuted and punished under this Act for any offence for
which the occupier of the factory 50[or owner of the
khandasari unit] is punishable;
Provided that the firm or association may give notice to
the Collector and the Cane Commissioner that it has
nominated one of its partners or members to be occupier of
the factory 50[or owner of the khandasari unit] for the
purposes of this Act, and such individual shall be deemed to
be the occupier of the factory 50[or owner of the khandasari
unit] for the purposes of this Act until further notice
cancelling his nomination is receive d by the Collector and
the Cane Commissioner or until he ceases to be a partner or
member of the firm or association, as the case may be.
49. The words are inserted in section 22 along with the marginal
heading, by Act No.4 of 1967.
50. Inserted by Act No.4 of 1967.
Determination of
occupier of
factory [or owner
of khandasari
unit] for the
purposes of this
Act.
[Act No. XLV of 1961] 23
(2) Where the occupier of a factory 51[or owner of a
khandasari unit] is a company or a co-operative society, any
one or more of the directors thereof, or, in the case of a
private company, any one or more, of the shareholders
thereof, may be prosecuted and punished under this Act for
any offence for which the occupier of t he factory is
punishable:
Provided that the company or co -operative society may
give notice to the Collector and the Cane Commissioner that
it has nominated a director, and a private company may
give notice to the said officers that it has nominated a
shareholder, to be the occupier of the factory 51[or owner of
the khandasari unit] for the purposes of this Act and such
director or shareholder shall be deemed to be the occupier
of the factory 51[or owner of the khandasari unit] for the
purposes of this Act until further notice cancelling his
nomination is received by the Collector and the Cane
Commissioner or until he ceases to be a Director or
shareholder, as the case may be.
23. (1) If any occu pier of a factory contravenes the
provisions of-
(a) section 12;
(b) sub-section (1) of section 13;
(c) any rule made under sub-section (2) of section 13;
or
(d) sub-section (1) of section 16;
52[(e) sub-sections (2-A), (4) and (5) of section 19;
51. Inserted by Act No.4 of 1967.
52. Inserted by Act No.25 of 1976.
Penalties.
24 [Act No. XLV of 1961]
(f) sub-section (3) of section 21;]
he shall be punishable with fine which may extend to
rupees five thousand and in the case of a continuing
contravention with a further fine not exceeding rupees one
thousand for each day during which the contravention
continues.
(2) Any person who contravenes the 53[provisions of
sub-section (2) or sub -section (2 -A) of section 16 shall be
punishable with fine which shall not be less than rupees one
thousand and which shall not exceed rupees two thousand
and any person who contravenes the provisions of] sub -
section (3) or sub -section (4) of section 20, shall be
punishable with fine which may extend to rupees two
thousand.
(3) Any person contravening any of the provisions of this
Act or of any rule or order made under this Act for which no
penalty is provided in sub-section (1) or sub-section (2) shall
be punishable with fine which may extend to rupees five
hundred.
54[23-A. Where in any case tried by the Court, the
Magistrate decides that the vehicle or weigh bridge is liable
to confiscation, he shall order confiscation of such vehicle or
weigh bridge:
Provided that if the vehicle or weigh bridge is not the
property of the offend er, it shall not be confiscated if the
owner thereof had no reason to believe that such offence
was being or was likely to be committed.]
53. Substituted by Act No.25 of 1976.
54. Section 23-A along with the marginal heading inserted by Act No.25
of 1976.
Confiscation of
vehicles and
weigh bridges.
[Act No. XLV of 1961] 25
24. (1) No court shall take cognizance of an offence
punishable under this Act or any rule or order made
thereunder except upon a complaint in writing made by the
Cane Commissioner or any authority or officer authorised by
him in this behalf.
(2) No court inferior to the court of a magistrate of the
first class shall take cognizance of, or try, an offence under
this Act or any rule or order made thereunder.
25. On the application of a person ac cused of an offence
under this Act or any rule or order made thereunder, the
Cane Commissioner or any authority or officer authorised by
him in this behalf may, at any stage, compound such
offence by levying a composition fee not exceeding rupees
five thousand.
26. Notwithstanding anything in 55section 32 of the Code of
Criminal Procedure, 1898 (Central Act 5 of 1898), it s hall be
lawful for a Magistrate of the first class specially empowered
by the Government in this behalf and trying any offence
under this Act or any rule or order made thereunder to pass
a sentence of fine not e xceeding five thousand rupees on
any person convicted for such offence.
27. (1) No suit, prosecution or other legal proceeding shall
lie against any person for anything which is in good faith
done or intended to be done in pursuance of any provision
of this Act or any rule or order made thereunder.
(2) No suit or other legal proceedings shall lie against
the Government for any damage caused or likely to be
caused by anything which is in good faith done or intended
55. See now section 32 of the Code of Criminal Procedure, 1973
(Central Act 2 of 1974).
Institution of
proceedings.
Composition of
offences.
Special powers of
Magistrates.
Protection of acts
done in good
faith.
26 [Act No. XLV of 1961]
to be done in pursuance of any provision of this Act or of
any rule or order made thereunder.
28. (1) The Government may, by notification, make rules to
carry out the purposes of this Act.
(2) Without prejudice to the generality of the foregoing
power, such rules may provide for-
(a) the constitution of the committee and the council;
(b) the dissolution and reconstitution of the
committee and the council and o ther matters incidental
thereto;
(c) the procedure to be followed for re moval of
members of the council;
(d) the procedure to be followed by th e committee
and the council for the conduct of business at meetings;
(e) the manner of summoning of the 56[joint meeting
of the councils] under section 6, the business to be
transacted at such meeting and the procedure for the
transaction of such business;
(f) the manner in which the accounts of the fund
placed at the disposal of the council under section 8 shall
be maintained and the applicatio n of and payment from
such fund;
(g) the directions to be issued by the Government to
the committee and the council for carrying out the purposes
of this Act;
56. Substituted by Act No.25 of 1976.
Power to make
rules.
[Act No. XLV of 1961] 27
(h) the powers and functions of the Cane
Commissioner;
(i) the matters relating to the appointment and
conditions of service of the Deputy CExcerpt shown. Open the full act in Lexace.