Industries (Development and Regulation) Act, 1951
9. Imposition of cess on scheduled industries in certain cases
(1) There may be levied and collected as a cess for the purposes of this Act on all goods manufactured or produced in any such scheduled industry as may be specified in this behalf by the Central Government by notified order a duty of excise at such rate as may be specified in the notified order, and different rates may be specified for different goods or different classes of goods:
PROVIDED that no such rate shall in any case exceed 13 paise per cent of the value of the goods.
Explanation : In this sub-section, the expression "value" in relation to any goods shall be deemed to be the wholesale cash price for which such goods of the like kind and quality are sold or are capable of being sold for delivery at the place of manufacture and at the time of their removal there from, without any abetment or deduction whatever except trade discount and the amount of duty then payable.
(2) The cess shall be payable at such intervals, within such time and in such manner as may be prescribed, and any rules made in this behalf may provide for the grant of a rebate for prompt payment of the cess.
(3) The said cess may be recovered in the same manner as an arrear of land revenue.
(4) The Central Government may hand over the proceeds of the cess collected under this section in respect of the goods manufactured or produced by any scheduled industry or group of scheduled industries to the Development Council established for that industry or group of industries, and where it does so, the Development Council shall utilize the said proceeds-
(a) to promote scientific and industrial research with reference to the scheduled industry or group of scheduled industries in respect of which the Development Council is established;
(b) to promote improvements in design and quality with reference to the products of such industry or group of industries;
(c) to provide for the training of technicians and labor in such industry or group of industries;
(d) to meet such expenses in the exercise of its functions and its administrative expenses as may be prescribed.