An Act to provide for the levy and collection of a cess on iron ore, manganese ore and chrome ore for the financing of activities to promote the welfare of persons employed in the iron ore mines, manganese ore mines and chrome ore mines and for matters connected therewith or incidental thereto.

3. Levy and collection of cess on iron ore and manganese ore. - With effect from such date as the Central Government may, by notification in the Official Gazette, appoint, there shall be levied and collected as a cess for the purposes of the Iron Ore Mines, Manganese Ore Mines and Chrome Ore Mines Labour Welfare Fund Act, 1976 -

(i) on all iron ore produced in any mine, -

(a) a duty of customs, where such iron ore is exported; or

(b) a duty of excise, where such iron ore is sold or otherwise disposed of to the occupier of any metallurgical factory, or to any person who in turn sells it to a metallurgical factory, or is used by the owner of the mine in any metallurgical factory, at such rate not exceeding one rupee per metric tonne of iron ore as the Central Government may, from time to time, fix by notification in the Official Gazette;

(ii) on all manganese ore produced in any mine, -

(a) a duty of customs, where such manganese ore is exported; or

(b) a duty of excise, where such manganese ore is sold or otherwise disposed of to the occupier of any metallurgical factory, or to any person who in turn sells it to a metallurgical factory, or is used by the owner of the mine in any metallurgical factory, at such rate not exceeding six rupees per metric tonne of manganese ore as the Central Government may, from time to time, fix by notification in the Official Gazette;

(iii) on all chrome ore produced in any mine, -

(a) a duty of customs, where such chrome ore is exported; or

(b) a duty of excise, where such chrome ore is sold or otherwise disposed of to the occupier of any metallurgical factory, or to any person who in turn sells it to a metallurgical factory, or is used by the owner of the mine in any metallurgical factory,at such rate not exceeding six rupees per metric tonne of chrome ore as the Central Government may, from time to time, fix by notification in the Official Gazette.

Explanation.- Where the owner of any iron ore mine or manganese ore mineor chrome ore mine is also the occupier of a metallurgical factory, then for the purposes of sub-clause (b) of clause (i) or sub-clause (b) of clause (ii), or sub-clause (b) of clause (iii), all the iron ore or manganese ore or chrome ore, as the case may be, produced in the mine and not sold or otherwise disposed of to the occupier of any other metallurgical factory or to any other person shall be deemed, unless the contrary is proved, to have been used by such owner for his own metallurgical factory.

4. Payment of duty of customs and duty of excise. -(1) Every duty of customs leviable under this Act on any iron ore or manganese ore or chrome ore, shall be payable to the Central Government by the person by whom the iron ore or manganese ore or chrome ore, as the case may be, is exported.

(2) Every duty of excise leviable under this Act on any iron ore or manganese ore or chrome ore shall be payable –

(a) to the occupier of the metallurgical factory by the person by whom such iron ore or manganese ore or chrome ore is sold or otherwise disposed of to such occupier

(b) to the Central Government, by the owner of the iron ore mine or manganese ore mine or chrome ore mine where the iron ore or manganese ore or chrome ore is used by such owner in any metallurgical factory,within such period as may be prescribed.

(3) All amounts referred to in clause (a) of sub-section (2) shall be collected by the occupier of the metallurgical factory in such manner, and paid by him to the Central Government within such period, as may be prescribed.

5. Crediting proceeds of duty to Consolidated Fund of India. -The proceeds of duty of customs and duty of excise levied under section 3 shall be credited to the Consolidated Fund of India.

6. Power of Central Government to exempt.- Notwithstanding any- thing contained in this Act, if the Central Government is of opinion that in respect of any metallurgical factory or class of metallurgical factories the levy of the duty of customs or duty of excise on iron ore or manganese ore or chrome ore under this Act is disproportionate to the cost of collection of such duty of customs or duty of excise from such metallurgical factory or class of metallurgical factories, it may, by notification in the Official Gazette and subject to such exceptions and modifications a~ may be specified in the said notification exempt such metallurgical factory or class of metallurgical factories from all or any of the provisions of this Act.

7. Interest payable by occupiers of factories and owners of mines. - If any occupier of a factory or any owner of an iron ore mine or a manganese ore mine or a chrome ore mine fails to pay any amount payable by him to the Central Government under section 4 within the period prescribed thereunder, such occupier or owner, as the case may be, shall be liable to pay simple interest at twelve per cent per annum on the amotmt to be paid from the date on which such payment is due till such amount is actually paid.

8. Penalty for non-payment of duty of excise within the prescribed period. -If any duty of excise payable by the occupier of the metallurgical factory or the owner of the iron ore mine or manganese ore mine or chrome ore mine to the Central Government under section 4 is not paid to that Government within the period prescribed thereunder, it shall be deemed to be in arrears and the authority prescribed in this behalf Jnay, after such inquiry as it deems fit, impose on the occupier of the metallurgical factory or, as the case may be, on the owner of the iron ore mine or manganese ore mine or chrome ore mine a penalty not exceeding theamount of duty of excise in arrears :

Provided that before imposing any such penalty such occupier or such owner, as the case may be, shall be given reasonable opportunity of being heard and, if after such hearing the said authority is satisfied that the default was for any good and sufficient reason, no penalty shall be imposed under this section.

9. Recovery of amounts due under the Act.- Any amount due under this Act (including the interest or penalty, if any, payable under section 7 or section 8, as the case may be, from any occupier of a metallurgical factory or any owner of an iron ore mine or a manganese ore mine or a chrome ore mine may be recovered by the Central Government in the same manner as an arrear of land revenue-