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Thread: Ministry of Textiles - The Textile Committee Act, 1963

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    Thumbs up Ministry of Textiles - The Textile Committee Act, 1963

    Ministry of Textiles

    THE TEXTILES COMMITTEE ACT, 1963

    ACT : 41 OF YEAR : 1963

    ENACTED BY : Central Legislature

    [3rd December, 1963.]


    1. Short title, extent and commencement.

    (1) This Act may be called the Textiles Committee Act, 1963.
    (2) It extends to the whole of India 1*.
    (3) It shall come into force on such date 2*, as the Central Government may, by notification in the Official Gazette, appoint.





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    Thumbs up The Textile Committee Act, 1963 - Definitions.

    The Textile Committee Act, 1963

    2. Definitions.

    In this Act, unless there is anything repugnant in the subject or context,--

    (a) "Chairman" means the Chairman of the Committee;
    (b) "Committee" means the Committee established under section 3;

    3*[(ba) "fibre" means man-made fibre including regenerated cellulose rayon, nylon and the like;]
    (c) "Fund" means the Textiles Fund referred to in section 7;

    3*[(ca) "handloom industries" has the meaning assigned to it in the Khadi and Other Handloom Industries Development (Additional Excise Duty on Cloth) Act, 1953 (12 of 1953.);]
    (d) "member" means a member of the Committee and includes the Chairman and the Vice-Chairman;

    3*[(da) "powerloom" means a loom which is worked by power as defined in clause (g) of section 2 of the Factories Act, 1948 (63 of 1948.), and which is used or capable of being used only for weaving
    cloth wholly or partly out of cotton yarn or woollen yarn, or fibre, or any kind of mixed yarn;
    (db) "powerloom industry" means an industry in which a manufacturer of textiles has, at any time during the period fixed by

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    1. The words "except the State of Jammu and Kashmir" omitted by Act 51 of 1973, s. 2 (w.e.f. 1-1-1975).

    2. 22nd August, 1964; vide Notification No. S.O. 2913, dated the 22nd August, 1964, Gazette of India, Extraordinary, Pt. II, Sec. 3(ii), p. 741.

    3. Ins. by Act 51 of 1973, s. 3.208 the Committee under clause (a) of sub-section (5) of section 5A, not more than fifty powerlooms (without any spinning plants) in the factory or factories owned, controlled or managed by him.

    Explanation.--For the purposes of this Clause, the expression "factory" has the meaning assigned to it in the Factories Act, 1948 (63 of 1948.);]

    (e) "prescribed" means prescribed by rules made under this Act;
    (f) "textile machinery" means the equipment employed directly or indirectly for the processing of textile fibre into yarn and for the manufacture of fabric therefrom by weaving or knitting and includes equipment used either wholly or partly for the finishing, folding or packing of textiles;

    1*[(g) "textiles" means any fabric or cloth or yarn or garment or any other article made wholly or in
    part of--

    (i) cotton; or
    (ii) wool; or
    (iii) silk; or
    (iv) artificial silk or other fibre, and includes fibre;]

    (h) "Vice-Chairman" means the Vice-Chairman of the Committee.

    2*[2A. Construction of references to any law not in force, or any functionary not in existence, in the State of Jammu and Kashmir. Any reference in this Act to any law which is not in force, or any functionary not in existence, in the State of Jammu and Kashmir, shall, in relation to that State, be construed as a reference to the corresponding law in force, or to the corresponding functionary in
    existence in that State.]


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    Thumbs up The Textile Committee Act, 1963 - Establishment of Textiles Committee.

    The Textile Committee Act, 1963

    3. Establishment of Textiles Committee.

    (1) The Central Government shall, by notification in the Official Gazette, establish with effect from such date 3* as may be specified in the notification, a Committee to be known as the Textiles Committee, which shall be a body corporate having perpetual succession and a common seal with power to acquire, hold and dispose of property and to contract and may, by that name, sue or be sued.

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    1. Subs. by Act 51 of 1973, s. 3, for the former clause.
    2. Ins. by s. 4, ibid.
    3. 22nd August, 1964; vide Notification No. S.O. 2914, dated the 22nd August, 1964, Gazette of India, Extraordinary, Pt. II, Sec. 3(ii), p. 741.
    209

    (2) The Head Office of the Committee shall be in Bombay.

    (3) The Committee shall consist of--

    (a) a Chairman to be appointed by the Central Government;
    (b) a Vice-Chairman who shall be the Textile Commissioner, ex-officio;
    (c) a Joint Secretary to the Government of India to be appointed by the Central Government, ex-officio;
    (d) such other members as the Central Government may think fit to appoint who, in the opinion of that Government, have special knowledge or practical experience in matters relating to the textile industry and trade and the manufacture of textile machinery.


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    Thumbs up The Textile Committee Act, 1963 - Functions of the Committee.

    The Textile Committee Act, 1963

    4. Functions of the Committee.

    (1) Subject to the provisions of this Act, the functions of the Committee shall generally be to ensure by such measures, as it thinks fit, standard qualities of textiles both for internal marketing and export purposes and the manufacture and use of standard type of textile machinery.

    (2) Without prejudice to the generality of the provisions of sub- section (1), the Committee may--
    (a) undertake, assist and encourage, scientific,technological and economic research in textile industry and textile machinery;
    (b) promote export of textiles and textile machinery and carry on propaganda for that purpose;

    1*[(c) establish or adopt or recognise standard specifications for--

    (i) textiles, and
    (ii) packing materials used in the packing of textiles or textile machinery, for the purposes of export and for internal consumption and affix suitable marks on such standardised varieties of textiles and packing materials;]

    (d) specify the type of quality control or inspection which will be applied to textiles or textile machinery;

    2*[(da) provide for training in the techniques of quality control to be applied to textiles or textile machinery;]

    (e) provide for the inspection and examination of--
    (i) textiles;
    (ii) textile machinery at any stage of manufacture and also while it is in use at mill-heads;

    ---------------------------------------------------------------------
    1. Subs. by Act 51 of 1973, s. 5, for the former cl. (c).
    2. Ins. by s. 5, ibid. (w.e.f. 1-1-1975).
    210
    1*[(iii) packing materials used in the packing of textiles or textile machinery;]
    (f) establish laboratories and test houses for the testing of textiles;

    (g) provide for testing textiles and textile machinery in laboratories and test houses other than those
    established under clause (f);

    (h) collect statistics for any of the above mentioned purposes from--
    (i) manufacturers of, and dealers in, textiles;
    (ii) manufacturers of textile machinery; and
    (iii) such other persons as may be prescribed;

    (i) advise on all matters relating to the development of textile industry and the production of textile
    machinery;

    (j) provide for such other matters as may be prescribed.

    (3) In the discharge of its functions, the Committee shall be bound by such directions as the Central Government may, for reasons to be stated in writing, give to it from time to time.



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    Thumbs up The Textile Committee Act, 1963 - Powers of the Committee.

    The Textile Committee Act, 1963

    5. Powers of the Committee.

    The Committee may exercise all such powers as may be necessary or expedient for the purpose of carrying out its functions under this Act.

    2*[5A. Imposition of cess on textiles and textile machinery manufactured in India.

    (1) There shall be levied and collected as a cess for the purposes of this Act, a duty of excise on all textiles and on all textile machinery manufactured in India at such rate, not exceeding one per cent. ad valorem as the Central Government may, by notification in the Official Gazette, fix:
    Provided that no such cess shall be levied on textiles manufactured from out of handloom or powerloom industry.

    (2) The duty of excise levied under sub-section (1) shall be in addition to any cess or duty leviable on textiles or textile machinery under any other law for the time being in force.

    (3) The duty of excise levied under sub-section (1) shall be collected by the Committee, in accordance with the rules made in this behalf, from every manufacturer of textiles or textile machinery (hereinafter in this section and in sections 5C and 5D referred to as the manufacturer).

    (4) The manufacturer shall pay to the Committee the amount of the duty of excise levied under sub-section (1) within one month from the date on which he receives a notice of demand therefor, from the Committee.

    (5) For the purpose of enabling the Committee to assess the amount of the duty of excise levied under sub-section (1),--

    (a) the Committee shall, by notification in the Gazette of India, fix the period in respect of which assessments shall be made; and

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    1. Ins. by Act 51 of 1973, s. 5 (w.e.f. 1-1-1975).
    2. Ins. by s. 6, ibid. (w.e.f. 1-1-1975).

    (b) every manufacturer shall furnish to the Committee a return, not later than fifteen days after the expiry of the period to which the return relates, specifying the total quantity of textiles or textile machinery manufactured by him during the said period and such other particulars as may be prescribed.

    (6) If any manufacturer fails to furnish the return referred to in sub-section (5) within the time specified therein, or furnishes a return which the Committee has reason to believe is incorrect or defective, the Committee may assess the amount of the duty of excise in such manner as may be prescribed.

    (7) Any manufacturer aggrieved by an assessment made under this section may appeal to the Tribunal, constituted under section 5B for cancellation or modification of the assessment.


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    Thumbs up The Textile Committee Act, 1963 - Constitution of Tribunal.

    The Textile Committee Act, 1963

    5B. Constitution of Tribunal.

    The Central Government may, by notification in the Official Gazette, constitute a Tribunal consisting of one person, who is or has been, or is qualified for appointment as a Judge of a High Court and who is not connected with the Committee to exercise the powers and discharge the functions conferred or imposed on the Tribunal by or under this Act.


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    Thumbs up The Textile Committee Act, 1963 - Hearing of appeals by Tribunal.

    The Textile Committee Act, 1963

    5C. Hearing of appeals by Tribunal.

    (1) An appeal under sub- section (7) of section 5A may be preferred to the Tribunal within one month from the date on which the notice of demand regarding the assessment is served on the manufacturer:
    Provided that the Tribunal may admit an appeal after the expiration of the period aforesaid, if it is satisfied that the appellant had sufficient cause for not preferring it within that period.

    (2) Every appeal referred to in sub-section (1) shall be in the prescribed form and shall be verified in the prescribed manner and shall be accompanied with such fees as may be prescribed.

    (3)
    The Tribunal shall fix a day and place for the hearing of the appeal and shall give notice of the same to the appellant and to the Committee.

    (4)
    The Tribunal may, after giving the appellant and the Committee an opportunity of being heard, pass such orders thereon as it thinks fit:

    Provided that no order enhancing the assessment shall be made unless the appellant has had a reasonable opportunity of showing cause against such enhancement.

    (5) The Tribunal shall send a copy of any order passed under this section to the appellant and to the Committee and such order shall be final.

    (6) In discharging the functions under this section, the Tribunal may, subject to any rules that may be made in this behalf, follow such procedure as it thinks fit.

    (7) The Tribunal shall have all the powers of a civil court while trying a suit under the Code of Civil Procedure, 1908 (5 of 1908.), in respect of the following matters, namely:--

    (a) summoning and enforcing the attendance of any person and examining him on oath;
    (b) requiring the discovery and production of any documents;
    (c) receiving evidence on affidavits;
    (d) requisitioning any public record or copy thereof from any court or office;
    (e) issuing commissions for the examination of witnesses and documents;
    (f) any other matter which may be prescribed.

    (8) The expenses of the Tribunal shall be borne by the Central Government.


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    Thumbs up The Textile Committee Act, 1963 - Recovery of duty of excise.

    The Textile Committee Act, 1963

    5D. Recovery of duty of excise.

    If any manufacturer fails to pay the duty of excise levied under section 5A, within the period specified in sub-section (4) of that section, or where an appeal has been preferred by him against an order of assessment under sub-section (7) of section 5A, within one month from the date of disposal of such appeal, the duty payable by him shall be recoverable as an arrear of land revenue.




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    Thumbs up The Textile Committee Act, 1963 - Power to exempt

    The Textile Committee Act, 1963

    5E. Power to exempt.

    If the Central Government is of opinion that in the interests of trade or in the public interest it is necessary so to do, it may, by notification in the Official Gazette, exempt such variety of textiles or such textiles machinery as may be specified in the notification from the whole or any part of the duty of excise leviable under section 5A.

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    Thumbs up The Textile Committee Act, 1963 - Payment of proceeds of cess to the Committee.

    The Textile Committee Act, 1963

    5F. Payment of proceeds of cess to the Committee.

    The proceeds of the duty of excise collected under section 5A, reduced by the cost of collection as determined by the Central Government, shall first be credited to the Consolidated Fund of India and the Central Government may, after due appropriation made by Parliament by law, pay to the Committee from out of such proceeds, such sums or money as it thinks fit for being utilised for the purposes of this Act.]



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