TOBACCO BOARD ACT, 1975
(1) This Act may be called The Tobacco Board Act, 1975.
(2) It extends to the whole of India.
(3) It shall come into force on such dates as the Central Government may, by notification in the Official Gazette, appoint:
Provided that different dates may be appointed for different provisions of this Act and for different States or different parts thereof.
It is hereby declared that it is expedient in the public interest that the Union should take under its control the tobacco industry.
In this Act, unless the context otherwise requires,-
(a) "Board" means the Tobacco Board established under section 4;
(b) "Chairman" means Chairman of the Board;
(c) "curing" shall have the meaning assigned to it in the Central Excises and Salt Act, 1944 and all its grammatical variations and cognate expressions shall be construed accordingly;
(d) "dealer" means a dealer in tobacco;
(e) "Executive Director" means the Executive Director appointed under section 6;
(f) "export" and "import" mean, respectively, taking out of or bringing into India, by land, sea or air;
(g) "member" means a member of the Board and include
(1) With effect from such date as the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established for the purposes of this Act, a Board to be called the Tobacco Board.
(2) The Board shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall by the said name sue and be sued.
1 [(3) The head office of the Board shall be at Guntur in the State of Andhra Pradesh and the Board may, with the previous approval of the Central Government, establish offices or agencies at other places in or outside India.]
(4) The Board shall consist of the following members namely :-
&n
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.
(1) The Central Government shall appoint an Executive Director to exercise such powers and perform such duties under the Chairman as may be prescribed or as may be delegated to him by the Chairman.
(2) The Central Government shall appoint a Secretary to the Board to exercise such powers and perform such duties under the Chairman as may be prescribed or as may be delegated to him by the Chairman.
(3) The Executive Director and Secretary 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.
(4) Subject to such control, restrictions and conditions (including conditions as to appointment of the officers and other employess of the Tobacco Export Prom
(1) The Board may appoint such committees as may be necessary for the efficient discharge of its duties and performance of its functions under this Act.
(2) The Board shall have the power to co-opt as members of any committee appointed under subsection (1) such number of persons who are not members of the Board as it may think fit and the persons so co-opted shall have the right to attend the meetings of the committee and take part in the proceedings of the committee but shall not have the right to vote.
(1) It shall be the duty of the Board to promote, by such measures as it thinks fit, the development under the control of the Central Government of the tobacco industry.
(2) Without prejudice to the generality of the provisions of sub-section (1), the measures referred to therein may provide for-
1[(a) regulating the production and curing of virginia tobacco having regard to the following factors, namely :-
(i) the demand for virginia tobacco in India and abroad;
(ii) the suitability of land for growing virginia tobacco;
(iii) the differences in soil characteristics and agro-climatic factors in different regions of the country where virginia tobacco is grown and the effect thereof on the quality and quant
(1) The Central Government may, by notification in the Official Gazette and for reasons to be specified therein, direct that the Board shall be dissolved from such date and for such period as may be specified in the notification :
Provided that before issuing any such notification, the Central Government shall give a reasonable opportunity to the Board to make representations against the proposed dissolution and shall consider the representations, if any, of the Board.
(2) When the Board is dissolved under the provisions of sub-section (1),-
(a) all members notwithstanding that their term of office has not expired, shall, from the date of dissolution, vacate their offices as such members;
(b) all powers and duties of the Board shall, during the per
(1) No person shall grow virginia tobacco except under, and in accordance with, the conditions of a certificate of registration obtained from the Board in accordance with the rules made, under this Act.
(2) In granting or refusing a certificate of registration, the: Board shall have regard to the demand for virginia tobacco in India and abroad, and the suitability of the land in relation to which the certificate is applied for and such other factors as may, having regard to the needs of the virginia tobacco industry, be prescribed.
(3) A certificate of registration granted in pursuance of this section shall be valid for such period as may be prescribed.
(4) Every application for such certificate of registration shall be accompanied by such fees (not exceeding one rupee for 0.4 hectre of the la
1[10A. Registration of growers of virginia tobacco seedlings for commercial purposes.-
(1) No person shall grow virginia tobacco seedlings for commercial purposes unless he registers himself as a nursery grower with the Board in accordance with the rules made under this Act.
Explanation.- For the removal of doubts, it is hereby declared that nothing in this sub-section shall apply to the growing by a registered grower of any virginia tobacco seedlings for his own use.
(2) No registered nursery grower shall sell or cause to be sold any virginia tobacco seedlings grown by him to any person other than a registered grower.]
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1. Inserted by Tobacco B oard (Amdt.) Act (57 of 1985 ), S
No person other than a registered curer shall cure or undertake the curing of virginia tobacco unless he registers himself as a curer with the Board in accordance with the rules made under this Act.
1[11A. Registration of processors and manufacturers of virginia tobacco, etc .-
No person shall process virginia tobacco or manufacture products therefrom unless he registers himself as such processor or manufacturer, as the case may be, with the Board in accordance with the rules made under this Act.
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1. Inserted by the Tobacco B oard (Amdt.) Act (57 of 1985 ), S. 5 (1 -12 -1985 ).
No person shall-
(i) take up grading work relating to virginia tobacco for commercial purposes; or
(ii) take up the construction and operation of a barn, unless he obtains a licence from the Board in accordance with the rules made under this Act.
Explanation.- For the purposes of this section,-
(i) "barn" means a building or structure with a roof of zinc sheets or tiles having flue pipes, furnace and tiers used for flue curing of tobacco leaves;
(ii) "grading work" means separating tobacco leaves into specific grades on the basis of plant position, maturity, colour, body and blemish and in accordance with such specifications as may be prescribed.]
No person shall export tobacco or any tobacco products or function as a packer, auctioneer of, or dealer in, tobacco unless he registers with the Board in accordance with the rules made under this Act.
No registered grower or curer shall sell or cause to be sold virginia tobacco elsewhere than at an an auction platform registered with the Board in accordance with the rules made under this Act 1 [or established by the Board under this Act.].
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1. Inserted by the Tobacco Board (Amdt.) Act, 1978 (36 of 1978), Section. 4 (30-8-1978).
1[13A. Duty of registered dealers and exporters to purchase at auction platforms, etc.-
No registered dealer or registered exporter shall purchase or cause to be purchased virginia tobacco elsewhere-
(a) than at an auction platform registered with the Board in accordance with the rules made under this Act or established by the Board under this Act; or
(b) than from any other registered dealer or a registered grower or curer :
Provided that in relation to any State in which the provisions of section 13 are not in force, the condition specified under clause (a) shall not apply.
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1. Inserted by the Tobacco B oard (Amdt.) Act (57 of 1985 ), Sec
Every dealer who purchases virginia tobacco in any State in which the provisions of section 13 are not in force,-
(a) shall pay the full price for the whole quantity of virginia tobacco so purchased by him at the rate at which he agreed to purchase such tobacco and shall refrain from claiming any discount in the weight or other deductions in weight thereof or any deductions from the price as calculated in accordance with such rate;
(b) shall pay the full price for virginia tobacco so purchased by him as calculated in accordance with the provisions of clause (a) as expeditiously as possible and in any case within such reasonable time as may be specified in this behalf by the Board; and
(c) shall refrain from having recourse to any practices which the Board may, having regard to the need for pro
The form of application and the form of certificate of registration under section 10, the form of application 1 [for registration of nursery growers for the purposes of section 10A, for registration of curers for the purposes of section 11, for registration of processors and manufacturers for the purposes of section 11A, for obtaining licences for taking up grading work or construction and operation of barns under section 11B] for registration of exporters, packers or auctioneers of, or dealers in, tobacco, for the purposes of section 12, and for registration of auction platforms for the purposes of section 13, the time within which and the manner in which such applications shall be made, the fees payable on such applications, the particulars to be specified therein, the principles and the procedure to be followed in granting and cancelling certificates of registration or the registration of auction platforms or, as the case
1[14A. Power to levy fees.-
(1) Where virgina tobacco is sold at any auction platform established by the Board under this Act, it shall be competent for the Board or for any officer of the Board authorised by it in this behalf to levy fees, for the services tendered by the Board. in relation to such sale, at such rate not exceeding two per cent, of the value of such tobacco as the Central Government may, from time to time, by notification in the Official Gazette, specify.
(2) The fees levied under sub-section (1) shall be collected by the Board or such officer, equally from the seller of the virginia tobacco and the purchaser of such tobacco in such manner as may be prescribed.]
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1 . Inserted by the Tobacco B oard (Amdt.) Act, 19
The Board may authorise any of its members, officers or other employees to inspect in such manner as may be. prescribed any land or premises to verify the accuracy of any particulars mentioned in any application or any return referred to in section 14.
The Central Government may, after the appropriation made by Parliament by law in this behalf, pay to the Board by way of grants or loans such sums of money as the Central Government may think fit for feeing. Utilised for the purposes of this Act.
(1) There shall be formed a Fund to be called the Tobacco Fund and there shall be credited thereto-
(a) the fees levied and collected under this Act or the rule's made thereunder;
(b) any sums of money paid or any loans granted by the Central Government for the purposes of this Act;
(c) any grants or loans that may be made by any person for the purposes of this Act;
(d) the sums, if any, realised by the Board in carrying out the measures referred to in section 8.
(2) The Fund shall be applied-
(a) for meeting the cost of the measures referred to in section 8;
(b) for meeting the salaries, allowances and other
Subject to such rates as may be made in this behalf, the Board shall have the power to borrow on the security of the Tobacco Fund or any other asset for carrying out the purposes of this Act.
1[ 18A . Writing off of losses
Subject to such conditions as may be specified by the Central Government, where the Board is of opinion that any amount due to, or any toss, whether of money or of property, incurred by, the Board is irrecoverable, the Board may, with the previous approval of the Central Government, sanction the writing off finally of the said amount or less :
Provided that no such approval of the Central Government shall be necessary when: such irrecoverable amount or loss does not exceed in any individual case and in the aggregate in any year such amounts as may be prescribed.]
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1. Inserted by Tobacco B oard (Amdt.) Act (57 of 1985 ), Section. 8 (1 -2 -85 ).
(1) The Board shall maintain proper accounts and other relevant records and prepare an annual statement of accounts, including the1[income and expenditure account], and the balance-sheet in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India:
(2) The accounts of the Board shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Board to the Comptroller and Auditor-General.
(3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Board shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General ha
(1) The Central Government may, by order published in the Official Gazette, make provision for prohibiting, restricting or otherwise controlling the import or export of tobacco and tobacco products, either generally or in specified classes of cases.
(2) All tobacco and tobacco products to which any order under sub-section (1) applies, shall be deemed to be goods of which the import or export has been prohibited under section 11 of the Customs Act, 1962, and all the provisions of that Act shall have effect accordingly.
(3) If any person contravenes any order made under sub-section (1), he shall, without prejudice to any confiscation or penalty to which he may be liable under the provisions of the Customs Act, 1962 as applied by sub-section (2), be punishable with imprisonment for a term which may extend to one year; or with fine or with
1 [20A. Power of Central Government to authorise purchase of virginia tobacco.-
Without prejudice to the provisions of clause (g) of sub-section (2) of section 8 and notwithstanding anything contained in any other provision of this Act, if the Central Government is satisfied that it is necessary or expedient so to do, it may, by order in writing and subject to such conditions and limitations as may be specified in the order, authorise any body or other agency to purchase virginia tobacco from the growers and dispose of the same in India or abroad.]
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1. Inserted by Tobacco Board (Amdt.) Act (57 of 1985), Section. 10(1-12-85).
The Board shall carry out such directions as may be issued to it from time to time by the Central Government for the efficient administration of this Act.
(1) The Board shall furnish to the Central Government at such time and in such form and manner as may be prescribed or as the Central Government may direct, such returns and statements and such particulars in regard to any proposed or existing programme for the promotion and development the tobacco industry, as the Central Government may, from time to time, require.
(2) Without prejudice to the provisions of sub-section (1), the Board shall, as soon as possible, after the end of each financial year, submit to the Central Government a report in such form and before such date, as may be prescribed, giving a true and full account of its activities, policy and programmes during the previous financial year.
(3) A copy of the report received under sub-section (2) shall be laid, as soon as may be after it is received, before each House of Par
Any person who, being required under this Act to furnish any return, fails to furnish such return or furnishes a return containing any particular which is false and which he knows to be false or does not believe to be true, shall be punishable with fine which may extend to five hundred rupees.
Any person who-
(a) obstructs any member or any officer or other employee of the Board or any other person in the exercise of any power conferred, or in the discharge of any duty imposed, on him by or under this Act; or
(b) having control over or custody of any account book or other record, fails to produce such book or record when required to do so by or under this Act.
shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.
Whoever contravenes or attempts to contravene or abets the contravention of the provisions of this Act 1[or of any rules or regulations made thereunder] other than the provisions, punishment for the contravention whereof has been provided for in section 20 or section 23 or section 24, shall be punishable with imprisonment for a term which may 2[extend to two years, or with fine which may extend to five thousand rupees, or with both] and in the case of a continuing contravention with an additional fine which may extend to fifty rupees for every day during which such contravention continues after conviction for the first such contravention.
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1. Substituted for "or of any rules made thereunder" by Tobacco Board (Amdt.) Act (57 of 1985), S. 11 (1-12-85).
2. Substituted for "ex
(1) 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 to, the company for the conduct of the business 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 nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributab
No Court inferior to that of a Metropolitan Magistrate or a Magistrate of the first class try any offence punishable under this Act.
No prosecution for any offence punishable under this Act shall be instituted except with the previous sanction of the Central Government.
No suit, prosecution or other legal proceedings shall lie against the Central Government, or the Board or any committee appointed by it, or any member of the Board or such committee, or any officer or other employee of the Central Government or of the Board or any agent of or any other person authorised by the Board, for anything which is in good faith done or intended to be done under this Act or the rules made thereunder.
(1) If the Central Government is satisfied that circumstances have arisen rendering it necessary that certain of the restrictions imposed by this Act should cease to be imposed or if it considers it necessary or expedient so to do in the public interest, the Central Government may, by notification in the Official Gazette, suspend or relax to a specified extent, for such period as may be specified in the notification, the operation of all or any of the provisions of this Act, in all or any of the territories to which this Act extends.
(2) Where the operation of any provision of this Act has, under sub-section (1), been suspended or relaxed, such suspension or relaxation may, at any time while this Act remains in force, be removed by the Central Government by notification in the Official Gazette.
(3) Every notification issued under this se
The provisions of this Act shall be in addition to, and not in derogation of, the provisions of any other law for the time being in force.
(1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the purposes 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 :-
(a) the powers and functions of the Vice-Chairman of the Board;
(b) the term of office and other conditions of service of members, the manner of filling vacancies among, and the procedure to be followed in the discharge of their functions by members;
(c) the powers which may be exercised and the duties which shall be performed by the Executive Director and the Secretary;
(d) the circumstances in which and the authority by
(1) The Board may make regulationsa not inconsistent with this Act and the rules made thereunder for enabling it to discharge its functions under this Act.
(2) Without prejudice to the generality of the foregoing power, such regulations may provide for. all or any of the following matters namely :-
(a) the procedure to be followed at meetings of the committees appointed by the Board and the number of members which shall form a quorum at a meeting;
(b) the delegation to the Chairman, members, Executive Director, Secretary or other officers of the Board, of any of the powers and duties of the Board under this Act;
(c) the travelling and other allowances payable to persons associated under sub-section (8) of section 4 or co-opted under sub-section (2)
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