P.N. NO.28/2002 Appraising (General),

Import Supply No. 23/2002

Export Supply No. 23/2002

Date : 27.02.2002

PUBLIC NOTICE NO.28/2002 Date 4/3/2002

Sub : Enforcement of provision of the Cigarettes (Regulation of Production, Supply and Distribution) Act, 1975 on the imported cigarettes – reg.)
It is notified for the information of the trade, CHAs and all concerned that keeping in view the harmful effects of cigarette smoking and with intention of curbing the consumption of cigarette, Government of India has enacted the Cigarettes (Regulation of Production, supply and Distribution) Act, 1975 (copy enclosed), in order to make restrictions on trade and commerce in, and production, supply and distribution of cigarettes, manner in which specified warning shall be made, and restrictions on advertisements of cigarettes. Violation of the provisions of the Act is punishable and Section 19 makes the offence under the Act a cognizable offence. Section 17,18, and 19 provide for punishment and trial of the offender. There are other provisions such as 8,9,10,12 and 13, which provide for search, seizure and confiscation of packages and levying of penalty.

2. However, in a Public Interest Litigation (W.P.(Civil) No. 316 of 1990) filed in the Supreme Court of India, it has been observed by the Hon’ble Court that the provisions of the above mentioned Act are not complied with and yet no action is being taken by the implementing authority since last more than 25 years. It has, therefore, been directed by the Hon’ble Supreme Court of India that the Central Government is to take effective measures and steps for implementation of the provisions of the Act at the earliest. The said order of the Hon’ble Supreme Court of India dated 31st August, 2001 has also been sent by the Department of Health & Family Welfare to the Chief Secretary of each State as well as to the Commissioner of Police of the States of Delhi, Mumbai, Kolkata, Chennai, Bangalore, Ahmedabad and other Metropolitan Cities for compliance and strict implementation.

3. Since the provisions of the said Act equally apply to imported cigarettes, it is hereby directed that while importing cigarettes, provisions of the said Act should be strictly complied with.

(M.C. THAKUR)
COMMISSIONER OF CUSTOMS (IMPORT)
NEW CUSTOM HOUSE, MUMBAI.

Issued from F.No. S/26-290/99 A (g) Part – II

F.NO. 45981/2001-CUS.IV

Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Excise & Customs

New Delhi, the 21st January, 2002.

All Chief Commissioner of Customs,
All Chief Commissioners of Customs & Central Excise
All Commissioners of Customs
All Commissioners of Customs & Central Excise

Subject : Enforcement of provisions of the Cigarettes (Regulation Of Production, Supply and Distribution) Act,1975 on the The Imported cigarettes. – reg.

Sir,

As you may be aware, keeping in view the harmful effects of cigarette smoking and with the intention of curbing the consumption of cigarette, Government of India has enacted the Cigarettes (Regulation of Production, Supply and Distribution) Act, 1975. (copy enclosed)in order to made restrictions on trade and commerce in and production, supply and distribution of cigarettes manner in which specified warning shall be made, and restrictions on advertisement of cigarettes. Violation of the provisions of the Act is punishable and Section 19 makes in offence under the Act a cognizable offence. Section 17, 18 and 19 provide for punishment and trial of the offender. There are other provisions such as Section 8, 9, 10, 12, and 13 which provide for search, seizure and confiscation of packages and levying of penalty.

2. However, in a Public Interest Litigation (W.P. (Civil) No. 316 of 1990) filed in the Supreme Court of India, it has been observed by the Hon’ble Court that the provisions of the above mentioned Act are not complied with and yet no action is being taken by the implementing authority since last more than 25 years. It has, therefore, been directed by the Hon’ble Supreme Court of India that the Central Government is to take effective measures and suggesting implementation of the provisions of the Act at the earliest. The said order of the Hon’ble Supreme Court of India 31st August, 2001 has also been sent by the Ministry of Health & Family Welfare to the Chief Secretary of each State as well as to the Commissioner, Police of the States of Delhi, Mumbai, Kolkata, Chennai, Bangalore, Ahmedabad and the Metropolitan Cities for compliance and strict implementation.

3. Since the provisions of the said Act equally apply to imported cigarettes, I am directed to request you to kindly circulate the copies of the said Act to all concerned and issue the said instructions for compliance of the provisions of the said Act.

4. Kindly acknowledge receipt.

Yours faithfully,

(Rajendra Singh)
Under Secretary to the Government of India.

The Gazette of India

EXTRAORDINARY

PART II – Section 1

PUBLISHED BY AUTHORITY

NEW DELHI, MONDAY, AUGUST 18, 1975/ SRAVANA 27, 1897

Separate paging is given to this Part in order that it may be filed as a separate compilation

MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS.

(Legislative Department)

New Delhi, the 18th August, 1975 / Sravana 27, 1897 (Saka)

This following Act of Parliament received the assent of the President on the 16th August, 1975, and is hereby published for general information :-

THE CIGARETTES (REGULATION OF PRODUCTION,
SUPPLY AND DISTRIBUTION ACT, 1975

NO. 49 OF 1974

[16TH August, 1975]

An Act to provide for certain restrictions in relation to trade and commerce in and production supply and distribution of cigarettes and for matters connected therewith or incidental thereto
Be it enacted by Parliament in the Twenty-sixth Year of the Republic of India as follows:-

1. (1) This Act may be called the Cigarettes (Regulation of Production, Supply and Distribution) Act, 1975.

(2) It extends to the whole of India.

(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

2. In this Act, unless the context otherwise requires,---

(a) “advertisement” includes any notice, circular and other document and also includes any visible representation made by means of any light, sound, smoke or gas;

(b) “cigarette” includes, ---

(i) any roll of tobacco wrapped in paper or in any other substance not containing tobacco,

(ii) any roll of tobacco wrapped in any substance containing tobacco, which, by reason of its appearance, the type of tobacco used in the filler, or its packaging and labeling is likely to be offered to, or purchased by, consumers as cigarette,
but does not include beedi, cheroot and cigar;

(c) “distribution” includes distribution by way of samples, whether free or otherwise;

(d) “export” with its grammatical variations and cognate expressions, means taking out of India to a place outside India;

(e) “foreign language” means a language which is neither an Indian language nor the English language;

(f) “import”, with its grammatical variations and cognate expressions, means bringing into India from a place outside India;

(g) “Indian language” means a language specified in the Eighth Schedule to the Constitution, and includes any dialect of such language

(h) “lable” means any written, marked, stamped, printed or graphic matter, affixed to, or appearing upon, any package;

(i) “package” includes a box, carton, tin or other container;

(j) “prescribed” means prescribed by rules made under this Act;

(k) “production”, with its grammatical variations and cognate expressions, includes ---

(i) packing, labeling, re-labeling, of containers,

(ii) re-packing from bulk packages to retail packages, and

(iii) the adoption of any other method to render the product marketable;

(l) “sale”, with its grammatical variations and cognate expressions; means any transfer of property ingoods by one person to another, whether for cash or on credit, or by way of exchange, and whether wholesale or retail, and includes an agreement for sale, an offer for sale and exposure for sale;

(m) “specified warning” means the following warning, namely, “Cigarette smoking is injurious to health”

3. (1) No person shall, directly or indirectly, produce, supply or distribute cigarettes unless every package of cigarettes produced, supplied or distributed by him bears thereon, or on its label, the specified warning.

(2) No person shall carry on trade or commerce in cigarettes unless every package of cigarettes distributed, sold or supplied by him bears thereon, or on its label, the specified warning.

(3) No person shall import cigarettes for distribution or supply for a valuable consideration or for sale unless every package of cigarettes so imported by him bears thereon or, on its label, the specified warning.

(4) The specified warning shall appear on not less than one of the largest panels of the package in which cigarettes have been packed for distribution, sale or supply for a valuable consideration.

4. (1) The specified warning on a package of cigarette shall be ----

(a) legible and prominent

(b) conspicuous as to size and colour

(c) in such style or type of lettering as to be boldly and clearly presented in distinct contrast to the other type, lettering or graphic material used on the package or its label

(2) Every package containing cigarettes shall be so packed as to ensure that the specified warning appearing thereon, or on its label is before the package is opened, visible to the consumer.

5. (1) No person shall advertise for the distribution, sale or supply of cigarettes, and no person shall take part in the publication of any such advertisement, unless the specified warning is included in such advertisement.

(2) Every specified warning included in an advertisement shall be conspicuous, legible and prominent.

(3) No person shall whether directly or indirectly, import, for the purpose of carrying on any trade or commerce in cigarettes, any document, article or thing, containing any advertisement which violates the provisions contained in sub-section (1) or sub-section (2).

6. (1) Where the language used on a package containing cigarettes or on its label or in any advertisement relating to such package is -----

(a) English, the specified warning shall be expressed in the English language;

(b) Any Indian language or languages, the specified warning shall be expressed in such Indian language or languages.

(c) Both English and one or more Indian languages, the specified warning shall be expressed in English as well as in such Indian language or languages;

(d) Partly English and partly any Indian language or languages, the specified warning shall be expressed in the English languages as well as in such Indian language or language

(e) Any foreign language, the specified warning shall be expressed in the English language;

(f) Partly any foreign language and partly English or any Indian language or languages, the specified warning shall be expressed in the English language as well as in such Indian language or languages.

(2) No package of cigarettes or its label or any advertisement relating thereto shall contain any matter or statement which is inconsistent with or detracts from, the specified warning.

7. No warning shall be deemed to be in accordance with the provisions of this Act if the height of each letter used in such warning is less than three millimetres.

8. (1) Any police officer, not below the rank of a sub-inspector may if he has any reason to suspect that any provision of this Act has been or is being, contravened, enter and search at any reasonable time, any factory, building, business premises or any other place where any trade or commerce in cigarettes is carried on or cigarettes are produced, supplied or distributed.

(2) The provisions of the Code of Criminal Procedure, 1973 shall apply to every search and seizure made under this Act.

9. (1) If any police officer, not below the rank of a sub-inspector, has any reason to believe that in respect of any package of cigarettes, the provisions of this Act have been or are being, contravened he may seize such package.

(2) No package of cigarettes seized under sub-section (1) shall be retained by any police officer for a period exceeding ninety days from the date of the seizure unless the approval of the District Judge, within the local limits of whose jurisdiction such seizure has been made, has been obtained for such retention.

10. Any package of cigarettes, in respect of which any provision of this Act has been or is being contravened shall be leable to confiscation.

Provided that, where it is established to the satisfaction of the court adjudging the confiscation that the person in whose possession, power or control any such package of cigarettes is found is not responsible for the contravention of the provisions of this Act, the court may, instead of making an order for the confiscation of such package, make such other order authorised by this Act against the person guilty of the breach of the provisions of this Act as it may think fit.

11. (1) Whenever any confiscation is authorised by this Act, the court adjudging it may, subject to such conditions as may be specified in the order adjudging the confiscation give to the owner thereof an option to pay, in lieu of confiscation, such costs, not exceeding the value of the package in respect of which confiscation is authorised, as the court thinks fit.

On payment of the costs ordered by the court the seized packages shall be returned to the person from whom they were seized on condition that such person shall, before making any distribution, sale or supply of such packages get the specified warning incorporated on each such package or on its label.

12. Any person who carries on any trade or commerce in, or, who produces supplies or distributes cigarettes shall if any package of such cigarettes does not contain the specified warning be liable to pay a penalty not exceeding five times the value of the package of cigarettes or one thousand rupees, whichever is more whether or not such package of cigarettes has been confiscated or is available for confiscation.

13. No confiscation made, costs ordered to be paid or penalty imposed under this Act, shall prevent the infliction of any punishment to which the person affected thereby is liable under the provisions of this Act or under any other law.

14 any confiscation may be adjudged costs may be ordered to be paid or penalty may be imposed-

a) without any limit by the principal civil court of original jurisdiction within the local limits of whose jurisdiction such, confiscation has been made, costs have been ordered to be paid, or penalty has been imposed, as the case may be;

b) subject to such limits as may be specified by the central government in this behalf, by such other court, not below a civil court having pecuniary jurisdiction exceeding rupees five thousand, as the central government may, by notification in the official Gazette authorise in this behalf.

15 1.) No order adjudging confiscation or directing payment of costs or imposing penalty shall be made unless the owner of the package of cigarettes has been given a notice in writing informing him of the grounds on which it is proposed to confiscate such package, and giving him a reasonable opportunity of making a representation in writing within such reasonable time as may be specified in the notice against the confiscation or imposition of penalty mentioned therein, and if he so desires of being heard in the matter

Provided that, where no such notice is given within a period of ninety days from the date of the seizure of the package of cigarettes, such package shall be returned, after the expiry of that period, to the person from whose possession it was seized.

2.) Save as otherwise provided in sub-section (1), the provisions of the Code of Civil Procedure, 1908 shall as far as may be, apply to every proceeding referred to in sub-section (1)

16 1.) Any person,, aggrieved by any decision of the court adjudging a confiscation, ordering the payment of costs of imposing a penalty, may prefer an appeal to the court to which an appeal lies from the decision of such court.

2.) The appellate court may, after giving to the appellant an oppourtunity of being heard, pass such order as it thinks fit confirming, modifying or reversing the decisions or order appealed against or may send back the case with such directions as it may think fit for a fresh decision or adjudication as the case may be after taking additional evidence, if necessary.

Provided that an order enhancing any penalty or fine in lieu of confiscation or confiscating goods of greater value shall not be made under this section unless the appellant has had an opportunity of making a representation and, if he so desires of being heard in his defence.

3.) No further appeal shall lie against the order of the court of appeal.

17. Any person who –

a) sells, or distributes or supplies in the course of any trade or commerce, any package of cigarettes which does not contain, either on the package or on its label, the specified warning,

b) produces or supplies or distributes in the course of any trade or commerce any package of cigarettes which does not contain, either on the package or on its label, the specified warning,

c) advertises or takes part in the advertisement of, cigarettes, if such advertisement, does not include the specified warning,
shall be punishable with imprisonment for a term, which may extend to three years, or with fine, which may extend to five thousand rupees or with both.

18. 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 the nothing contained in this sub-section shall render any such person laible to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due dilligence to prevent the commission of such offence.

2. Notwithstanding anything contained in sub-section (1), where any offence under this act has been committed by a company and it is proved that the offence has been committed with the consent or conviance of, or is attributable to any neglect on the part of , any director, manager, secretary or other officer of the company such director, manager, secretary or other officer shall be proceeded against and punished accordingly.

Explanation _ For the purpose of this section-

a) “company” means any body, corporate and includes a firm or other association of individual and,

b) director in relation to a firm, means a partner in the firm.

19 1) Notwithstanding anything contained in the Code of Criminal Procedure 1973 and offence punishable under this Act shall be bailable.

2) For the avoidance of doubts, it is hereby declared that every offence punishable under this Act shall be cognizable.

20 No suit, prosecution or other legal proceeding shall lie against the Central Government or any state Government or any officer of the Central Government or any state Government for anything which is in good faith done or intended to be done under this Act.

21 1) The central Government may, by notification in the Official Gazette, make rules to carry out the provisions 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 manner in which the seizure of any package of cigarettes shall be made and the manner in which seizure list shall be prepared and delivered to the person from whose custody any package of cigarettes has being seized;

b) procedure for the refund of any penalty imposed under this Act;

c) any other matter which is required to be, or may be, prescribed,

3.) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be compromised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid both houses agree in making any modification in the rules or both houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

22. Nothing contained in this Act shall apply to any cigarettes or package of cigarettes which is exported:

Provided that nothing in this section shall be deemed to authorise the export of any package of cigarettes not containing the specified warning to any country if the laws in force in that country requires that the same or similar warning shall be specified on each package of cigarettes.

Explanation For the purpose of this section, any cigarettes or package of cigarettes shall be deemed to be exported, if the necessary steps for export have already have been taken notwithstanding that the actual export has not taken place.

K.K. SUNDARAM
SECY TO THE GOVT OF INDIA.

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