THE PUNJAB INSTITUTE
OF TEXTILE TECHNOLOGY CESS ACT, 1962
(W.P. Act III of 1962)
1. Short title, extent
3. Levy of cess.
4. Assessment and
payment of cess.
5. Levy of a further
cess in the case of non-payment of cess.
6. Appeal and
7. Recovery of cess.
8. Textile Institutes
9. Expenditure of the
amount by the Board.
TECHNOLOGY CESS ACT, 1962
(W.P. Act III of 1962)
An Act to provide for the raising of
funds for the establishment and maintenance of the Pakistan Institute of
Textile Technology, Lyallpur
WHEREAS it is expedient to provide for the raising of fund for the
establishment and maintenance of the Pakistan Institute of Textile
in the manner hereinafter appearing;
It is hereby enacted as follows:-
1. Short title, extent and
commencement.— (1) This Act may be called the
Institute of Textile
Technology Cess Act, 1962.
(2) It shall extend to the whole
of the province of [the
Punjab] except the Tribal Areas.
(3) It shall come into force at once.
2. Definitions.— In this Act, unless
context otherwise requires, the following expressions shall have the
meanings hereby respectively assigned to them, that is to say—
(a) “Board of Trustees” means
the Board of Trustees appointed under the provisions of the Trust Deed;
(b) “Cess” means the cess levied
under this Act;
(c) “Director” means the
Director of Industries, [Punjab],
and includes an officer appointed by Government to perform the duties of
Director under this Act;
(d) “Government” means the
Government of the
(e) “Institute” means the
Pakistan Institute of Textile Technology, Lyallpur,
established and maintained by the Board of Trustees under the Trust Deed;
(f) “occupier” in relation to a
textile mill means the person who has ultimate control over the affairs of
the textile mill;
(g) “prescribed” means
prescribed by rules made under this Act;
(h) “textile mill” means a
factory within the meaning of clause (j) of section 2 of the
Factories Act, 1934 (Act XXV of 1934), in which cotton or wool is converted
into yarn or thread, or yarn or thread is woven into cloth, whether of
cotton, wool, silk, rayon, synthetic fibre or an admixture thereof, but does
not include any textile mill owned wholly or partly by the Central
or by a Corporation set up by the centre;
(i) “Trust Deed” means
the Trust Deed made on the 25th
December, 1954, by the Koh-i-Noor Textile Mills Limited,
and the Colony Textile Mills Limited, Multan,
for the purpose of establishing and maintaining the Institute.
Levy of cess.— (1) A cess
shall, subject to the provisions of this section, be levied upon the
spindles and power-looms installed in textile mills at such rates as
Government may, by notification, fix from time to time:
Provided that the rates shall not
(a) in the case of woolen
(i) rupees five per
(ii) rupees fifty per
(b) in the case of other textile
(i) rupee one and
twenty-five paisa per spindle, where the number of spindles installed in the
mill is less than ten thousand, and rupee one and fifty paisa per spindle,
where the number of installed spindles is ten thousand or more;
(ii) rupees twenty per
Provided further that in the case of
textile mills in which both spindles and looms are installed, the cess shall
be levied on spindle or looms, whichever, yields the higher cess.
(2) The cess may be levied at different
rates for spindles and looms using cotton, yarn, silk, rayon, synthetic
fibre or any product thereof.
(3) The cess may be non-recurring lump
sum, or be payable annually.
(4) The cess shall be payable by the
occupier of the textile mill.
(5) Government may, for any sufficient
reason to be recorded, by notification, exempt any textile mill from the
levy of cess, for a period not exceeding one year at a time.
4. Assessment and payment of cess.—
The Director shall, in the first week of July every year or as soon
thereafter as may be, assess the cess payable in respect of each textile
mill and shall cause a notice to be served upon the occupier thereof
requiring him to make payment of the amount so assessed in the prescribed
manner within thirty days of the service of such notice.
5. Levy of a further cess in the case of
non-payment of cess.— If the cess levied under section 4 is not paid
within the specified period, the Director may levy a further cess not
exceeding 50 per cent of the cess levied under section 4, and shall cause a
notice to be served upon the occupier requiring him to make the payment of
the entire amount levied under section 4 and this section in the prescribed
manner within thirty days of the service of such notice.
6. Appeal and revision.— (1) Any
person aggrieved by an order passed by the Director under section 4 or
section 5 may, within fourteen days of the service of the notice requiring
to pay the amount, prefer an appeal to Government in such manner as may be
(2) Government may call for and examine
the records of any proceedings under this Act for the purpose of satisfying
themselves as to the legality or propriety of any order passed by the
If in case it shall appear to Government that any order passed by the
Director under section 4 or section 5 should be set aside or modified,
Government may pass such order thereon as may be deemed fit:
Provided that no such order shall be
passed unless, in the case of appeal, the appellant, and in any other case
the party to be affected adversely, has been given a reasonable notice to
appear and be heard.
(4) Subject to any order passed by
Government under the last preceding sub-section, the order passed by the
Director under section 4 or section 5, as the case may be, shall be final.
7. Recovery of cess.— (1) A
certificate issued by the Director showing that any sum is due on account of
the cess shall be conclusive proof thereof.
(2) The Director may take such measures
as he may consider necessary to realize the amount of the cess due in such
manner as may be prescribed.
(3) Any sum due on account of the cess
shall be recoverable as an arrear of land revenue.
8. Textile Institutes Fund.— (1)
There shall be a fund to be known as the Textile Institutes Fund
(hereinafter referred to as the “Fund”).
(2) The Fund shall consist of—
(i) the proceeds of the cess, after deduction of
such expenses on collection and recovery as may be directed by Government to
(ii) grants, if any,
made by Government; and
(iii) any donations made
to the Fund.
(3) Such amount out of the Fund as may
be specified by Government shall be paid to the Board of Trustees at such
time and in such manner as may be prescribed.
(4) The Director shall keep accounts
relating to the Fund and shall maintain such registers as may be prescribed.
(5) The amount left in the Fund after payment of the sums under sub-section
(3) may be utilized by Government for purposes of any institution of textile
technology in [the
Punjab] as Government may deem fit.
9. Expenditure of the amount by the
Board.— The Board of Trustees shall be entitled to spend the amount
received by them under sub-section (3) of section 8 for the purpose of the
establishment and maintenance of the institute subject to the provisions of
the Trust Deed and such terms and conditions as may be specified by
(1) Government may frame rules
to carry out the purposes of this Act.
(2) In particular and without prejudice
to the generality of the foregoing powers, such rules may provide for,—
(a) the manner in which
notice under section 4 or section 5 shall be served on an occupier;
(b) the arrangements that
shall be made and the procedure that shall be followed in the recovery of
the arrears of the cess;
(c) the manner in which
appeals under section 6 shall be preferred;
(d) the terms and
conditions under which the Board of Trustees shall expend the amount made
over to the Board under sub-section (3) of section 8;
(e) the registers and the
forms in which the account relating to the cess shall be kept; and
(f) the directions which Government may consider necessary to issue
to the Board of Trustees for the purpose of the Trust.