TOBACCO TAX

(1) There shall be charged, levied and paid a tax (hereinafter referred to as the ” tobacco tax “) at the rate of four rupees per pound on all Ceylon tobacco leaf which is intended to be used in the manufacture of cigarettes or pipe tobacco.

(2) The rate of the tobacco tax may from time to time be varied by resolution of the House of Representatives

(3) For the purposes of this Act, all Ceylon tobacco leaf which is delivered at or received into any factory shall be presumed to be tobacco leaf intended to be used in the manufacture of cigarettes or pipe tobacco.

(1) The tobacco tax shall be payable by each person who carries on business as a manufacturer of cigarettes or pipe tobacco in the manufacture of which Ceylon tobacco leaf is used. The amount of the tax shall be computed by reference to the quantity of Ceylon tobacco leaf delivered at or received into the factory at which such manufacture is carried on; and the amount of the tax payable upon the total quantity of such tobacco leaf so delivered or received in any week shall be paid as provided in this Act not later than the end of the next succeeding week.

(2) No person shall use any Ceylon tobacco leaf or cause or permit any Ceylon tobacco leaf to be used in the manufacture of cigarettes or pipe tobacco unless and until the tobacco tax payable on such tobacco leaf has been duly paid in accordance with the provisions of this Act.

(3) Where any quantity of Ceylon tobacco leaf is delivered at any factory it shall be the duty of the person in charge of the factory, within a period of forty-eight hours after the time of such delivery, to furnish to the Excise Commissioner or to any officer designated by the Commissioner for the purpose a declaration signed by such person specifying the quantity of tobacco leaf so delivered.

Every such declaration shall be in such form as may be approved or provided for the purpose by the Excise Commissioner.

(1) On and after the 1st day of September, 1953, no person shall use Ceylon tobacco leaf in the manufacture of cigarettes or pipe tobacco unless he has been registered by the Excise Commissioner as a manufacturer for the purposes of this Act.

(2) Every application for registration as a manufacturer for the purposes of this Act-

(3) A person who is registered as a manufacturer for the purposes of this Act shall, whenever so required by the Excise Commissioner, furnish a return containing particulars as to the quantity of cigarettes being produced or estimated to be produced by the use of a specified quantity of Ceylon tobacco leaf; and separate particulars shall be furnished in such return with respect to each brand of cigarettes or pipe tobacco manufactured by that manufacturer.

(1) No person who is registered as a manufacturer for the purposes of this Act shall have in his factory any quantity of imported tobacco leaf unless he has in his possession a duplicate of the bill of entry relating to the importation of that quantity of tobacco leaf into Ceylon.

(2) Every person who is registered as a manufacturer for the purposes of this Act shall, when requested to do so by any officer of the Excise Department of a rank not below that of Inspector, produce for inspection a duplicate of the bill of entry relating to any quantity of imported tobacco leaf kept in his factory.

(1) Any person who is aggrieved by any decision made by any officer of the Excise Department other than the Excise Commissioner under the provisions of this Act or any regulation made thereunder may, within fourteen days after such decision is communicated to him, appeal to the Excise Commissioner.

(2) Any person who is aggrieved by any decision made by the Excise Commissioner under the provisions of this Act or any regulation made thereunder may, within fourteen days after such decision is communicated to him, appeal to the Minister in charge of the subject of Finance.

(3) Every appeal under this section shall be in writing and shall state the grounds of appeal.

(4) Every appeal to the Minister in charge of the subject of Finance under this section shall be transmitted to him through the Secretary to the Ministry charged with the subject of Finance.

(1) The Minister in charge of the subject of Finance may make regulations for the purpose of carrying out and giving effect to the provisions of this Act and for the prevention of the evasion of the tobacco tax imposed by this Act.

(2) Without prejudice to the generality of the powers conferred by subsection (1) regulations made under that subsection may provide for the maintenance, at any factory at which Ceylon tobacco leaf is used, of a separate warehouse or room for the storage of such tobacco leaf prior to the payment of the tobacco tax payable thereon, and for the measures that may be taken by the Excise Commissioner to supervise or control the removal of such tobacco leaf from such warehouse or room and to prevent its being used in the manufacture of cigarettes or pipe tobacco prior to payment as aforesaid.

(3) Every regulation made under this section shall be published in the Gazette and shall come into operation on the date of such publication or on such later date as may be specified in the regulation.

(4) Every such regulation shall as soon as convenient after the date of its publication in the Gazette be brought before Parliament for approval; and any such regulation which Parliament refuses to approve shall cease to be in force with effect from the date of such refusal, but without prejudice to the validity of anything previously done thereunder.

(5) Notification of the approval under subsection (4) of any regulation shall be published in the Gazette, and upon such publication the regulation shall be as valid and effectual as though it were herein enacted.

(1) Any person who contravenes or fails to comply with any of the provisions of this Act or of any regulation made there under shall be guilty of an offence and liable on conviction after summary trial before a Magistrate to a fine not exceeding one thousand rupees or to imprisonment of either description for a term not exceeding six months.

(2) The court which convicts any person of any offence under this Act committed in respect of any Ceylon tobacco leaf may in addition to any other punishment which it may impose make order declaring that such tobacco leaf shall be forfeited to the State.

(3) Where a person convicted of an offence under this Act has been registered as a manufacturer for the purposes of this Act, the court may in addition to any other punishment hereinbefore provided make order canceling the registration of that person as a manufacturer: Provided, however, that any such person may again be registered as a manufacturer by the Excise Commissioner if he thinks fit so to do in his discretion.

(4) For the purposes of this Act, any tobacco leaf on which no customs duty has been paid shall be presumed to be Ceylon tobacco leaf until the contrary is proved.

(a) means any premises at which the manufactures of cigarettes or pipe tobacco is carried on , and

(b) includes any store or other place maintained in connexion with any premises referred to in paragraph (a).