The Levy Sugar Price Equalisation Fund Act, 1976

(1) This Act may be called the Levy Sugar PriceEqualisation Fund Act, 1976. (2) It extends to the whole of India except the State of Jammu and Kashmir*. (3) It shall come into force on such date 1as the Central Government may, by notification in theOfficial Gazette, appoint.

In this Act, unless the context otherwise requires,-- (a) "controlled price" means the price of the relevant grade of levy sugar, determined from timeto time under sub-section (3C) of section 3 of the Essential Commodities Act, 1955 (10 of 1955), orunder the Defence and Internal Security of India Rules, 1971, in relation to any year of production; (b) "excess realisation", in relation to each grade of levy sugar,-- (i) means the price realised by any producer, on the sale of levy sugar of such grade, inexcess of-- (a) the controlled price, or (b) where any fair price has been fixed by a court for levy sugar of such grade, such fairprice, and (ii) includes any realisation representing the difference between the controlled price and theprice allowed by the court by an interim order, if such interim order is set aside, whether by thecourt which made the order or in appeal or revision; 1[Explanation.--For the removal of doubts, it is hereby declared that where in relation to levysugar of any grade sold by any producer, the producer has realised towards duties of excise withrespect to such sugar any amount in excess of the amount payable by way of such duties, suchexcess shall also be deemed to be excess realisation within the meaning of this clause]; (c) "fair price", in relation to levy sugar, means the price fixed by the court in excess of thecontrolled price, and, where an interim price, fixed by the court, is superseded by a price which isfinally fixed by the court, the price so finally fixed; (d) "Fund" means the Levy Sugar Price Equalisation Fund, established under section 3; 2[(e) "levy sugar" means the sugar requisitioned by the Central Government under clause (f) ofsub-section (2) of section 3 of the Essential Commodities Act, 1955 (10 of 1955);] (f) "prescribed" means prescribed by rules made under this Act; (g) "producer" means a person carrying on the business of manufacturing sugar by the vacuumpan process.

(1) There shall be established a Fund, to be called theLevy Sugar Price Equalisation Fund. (2) Save as otherwise 1[provided in sub-section (5)], there shall be credited to the Fund, in suchmanner as may be prescribed,-- (a) the amounts representing all excess realisations made by the producers, irrespective ofwhether such excess realisations were made before or after the commencement of this Act; (b) the amounts representing any loans which may be advanced, or grants which may be made, bythe Central Government for carrying out the objects of the Fund. (3) Save as otherwise 1[provided in sub-section (5)], every producer shall,-- (a) in the case of an excess realisation made before the commencement of this Act, within thirtydays from such commencement, (b) in the case of an excess realisation made after such commencement, within thirty days fromthe date on which such excess realisation was made, credit to the Fund, the amount representing such excess realisations, together with interest due thereon atthe rate of twelve and a half per cent. per annum, from the date on which such amount was realised byhim: 2[Provided that-- (a) the interest due on so much of any amount of any excess realisation made before the date ofcommencement of Levy Sugar Price Equalisation Fund (Amendment) Act, 1984 (54 of 1984), as isnot credited to the Fund together with interest at the aforesaid rate of twelve and a half per cent. perannum before the expiry of sixty days from the date of such commencement; and (b) the interest due on so much of the amount of any excess realisation made on or after the dateof such commencement as is not credited to the Fund together with interest at the aforesaid rate oftwelve and a half per cent. per annum within sixty days from the date on which such amount wasrealised, shall be at the rate of fifteen per cent. per annum from the date on which such amount was realised by theproducer.] 3* * * * * (5) Where, in pursuance of an 4[interim order made by any court, whether before or after thecommencement of this Act] any amount representing the difference between the controlled price and theinterim price allowed by the court is,-- (a) held by any producer either with himself or with any other person or with any court,Government, bank or other authority, or (b) collected and kept by the producer under the cover of any guarantee, such producer shall, on the final disposal of the proceedings of the court aforesaid, 5[credit to the Fund,within sixty days from the date of such final disposal, such amount, to the extent it represents any excessrealisation together with interest due thereon at the rate of twelve and a half per cent. per annum from thedate on which such amount was realised by him: Provided that-- (i) the interest due on so much of such amount as was realised before the date of commencementof the Levy Sugar Price Equalisation Fund (Amendment) Act, 1984 (54 of 1984) and is not creditedto the Fund together with interest at the aforesaid rate of twelve and a half per cent. per annum beforethe expiry of sixty days from the date of such commencement, and (ii) the interest due on so much of such amount as is realised after such commencement and notcredited to the Fund together with interest at the aforesaid rate of twelve and a half per cent. perannum within sixty days from the date on which such amount was realised, shall be at the rate of fifteen per cent. per annum from the date on which such amount was realised by theproducer] 6[(5A) Notwithstanding anything contained in sub-section (5), the interest payable on the amount ofany excess realisation required to be credited to the Fund under that sub-section in respect of any periodduring which such amount was by reason of any order of any court held by the producer with any otherperson or with any court, Government, bank or other authority referred to in clause (a) of thatsub-section, shall be the interest which actually accrued on such amount in respect of such period.] 6[(5B) Without prejudice to the provisions of sub-section (5), any amount representing the differencebetween the controlled price and the interim price allowed by the court which-- (a) is held by any producer with any other person or with any court, Government, bank or otherauthority referred to in clause (a) of that sub-section, or (b) is under the cover of any guarantee referred to in clause (b) of that sub-section, @shall, as soon as may be after the final disposal of the proceedings of the Court aforesaid, be credited, tothe extent such amount represents excess realisation together with the interest, if any, which has accruedthereon or been guaranteed in respect thereof, to the Fund by such other person, the court, Government,bank or other authority aforesaid or, as the case may be, by the bank or other person furnishing suchguarantee and the amount so credited shall be set off against the amount (including interest) required to becredited by the producer under sub-section (5). (5C) The provisions of sub-section (5B) shall apply in relation to every amount representing thedifference between the controlled price and the interim price allowed by the court which,immediately before the commencement of the Levy Sugar Price Equalisation Fund (Amendment)Act, 1984 (54 of 1984)-- (a) is held by any producer with any other person or with any court, Government, bank or otherauthority mentioned in clause (a) of that sub-section, or (b) is under the cover of any guarantee mentioned in clause (b) of that sub-section, notwithstanding that the final disposal of the proceedings of the court aforesaid took place before suchcommencement and for this purpose the reference in that sub-section to "final disposal of the proceedingsof the court" shall be construed as a reference to such commencement. (5D) Where any amount is credited to the Fund under sub-section (5B), such crediting shall,-- (a) in a case falling under clause (a) of that sub-section, operate as the discharge of the liability inrelation to such amount of the person, court, Government, bank or other authority so crediting theamount; (b) in a case falling under clause (b) of that sub-section, have effect as if it had been made inaccordance with the guarantee given by the bank or other person crediting the amount and for thispurpose such guarantee shall be deemed to have provided for such crediting.] (6) For the removal of doubts, it is hereby declared that the obligation to credit amounts representingexcess realisations to the Fund shall be in addition to any penalty which may be imposed for thecontravention of any provision of this Act. (7) The Fund shall be administered, subject to the provisions of section 8, by the Central Government.

If any question arises as towhether any producer has realised, on the sale of levy sugar, any amount in excess of the controlled price,or, as the case may be, the fair price, it shall be decided by the Central Government after giving anopportunity to such producer of being heard and after making such inquiry as that Government may deemfit.

Where anyamount is credited to the Fund under section 3, 1[the producer concerned] shall, upon such crediting, bedischarged from the liability to make repayment of such amounts to the persons entitled thereto and suchdischarge from liability to make repayment shall be without any prejudice to any penalty which may beimposed on such producer for each excess realisation made by him.