The Sikkim Ecology Fund And Environment Cess Act, 2005

(1) This Act may be called the Sikkim Ecology Fund and Environmental Cess Act, 2005. (2) It extends to the whole of Sikkim. (3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.

In this Act, unless there is anything repugnant in the subject or context: (a) "biodegradable materials" means materials, articles and goods that are degraded as a result of microbial activity in natural environment under normal course; Explanation-Materials articles and goods deemed to be "bio degradable" are prescribed in the Schedule I for the purpose of this Act: Provided that the State Government may amend or modify the Schedule I by notification if deemed necessary; (b) "business" includes any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture; (c) "Cess" means cess levied payable under this Act; (d) "dealer" means any person who carries on the business of selling, supplying or distributing goods or services directly or otherwise, whether for cash or for deferred payment or for commission, remuneration or other valuable consideration and includes: (i) a Department of the State or central Government or Public sector undertaking; (ii) local authority, company, Hindu undivided family, society, club or association for the incorporation of such society; Explanation 1.-A broker, commission agent who carries the business of procuring goods or services of principal's or the sales of goods or services for the purpose of the Act or carry on the business for the principal that is to say the sale or purchase of goods or services belonging to their owner shall be deemed to be dealer for the purpose of this Act: Explanation 2.-The manager or agent or dealer residing inside or outside the State of Sikkim and who brings goods or services from outside the State of Sikkim and that goods or services in respect of such sales are sold or to be sold, are deemed to be a dealer, for the purpose of this Act. Explanation 3.-The proprietor of any hotel, reside, lodge or motel of any category or series or hotels, resorts, lodges or motels providing lodging or boarding or ready to eat food facilities to customers on payment of cash or by credit card or by deferred payment, etc, for the purpose of this Act and includes owner, manager or any agent of such hotel, resort, lodge, motel or guest house or any Autonomous Body, for the purpose of trade/commerce or hospitality for customers of the State shall determine the cess imposed under the provisions of this Act shall be deemed to be dealer for the purpose of this Act; (e) "Department" means the Department of State Government dealing with environment and or Department of the State Government entrusted with responsibility of collection of cess under this Act; (f) "hotel", "resort", "lodge" and "motel" means any premises that is used for providing services like lodging or boarding or ready to eat food facilities to customers on payment on consideration thereof; (g) "manufacture" with all its grammatical variations and cognate expressions means producing, making, extracting, altering, ornaments, finishing, or otherwise processing, treating or adapting, any goods, specified in the Schedule I for the purpose of this Act; but does not include such manufacture or manufacturing process as may be prescribed; (h) "non-biodegradable materials" means materials, articles and goods that are not degraded by microbial activity and shall include all kind of goods in solid, liquid or gaseous form that are not degraded in natural environment under normal course: Explanation-Materials, articles and goods deemed to be "non-biodegradable" are included in the schedule I for the purpose of this act: Provided that the Schedule I can be modified by the State Government by notification if deemed necessary. (i) "notification" means a notification published in the Official Gazette; (j) "prescribed" means Prescribed by rules made under this Act or as prescribed by notification under this Act by the State Government; (k) "prescribed authority" means authority appointed by the State Government by notification under sub-section (1) of Section 4; (l) "registered dealer" means a dealer registered under section 8; (m) "sales" with its grammatical variations and cognate expressions means any transfer of property in goods or services by one to another for cash or for deferred payment; (n) "sale price" means the amount payable to a dealer as consideration for the sale of goods or services less any sum allowed as cash discount; Explanation 1.-In respect of goods or services delivered on hire purchase or any system of payment by instalments, the total sale price (including the amount payable and interest thereupon) or the date of such delivery of goods or services shall be taken as the sale price for the purpose of this Act. Explanation 2.-The sale price shall include the excise duty, value added tax or any other levies on the goods under any Central or State law for the time being in force, made at the time of or before the delivery of the goods or services to the buyer whether such duty, fee or other levy is paid by the purchaser of the goods to the seller alongwith the consideration for the sale or directly to the Government; (o) "Sikkim" means the territory comprised in the State of Sikkim; (p) "State Government" means the Government of Sikkim; (q) "turnover" used in relation to an establishment over any period means the aggregate of sale or services price or part of sale or services price receivable; (r) "year" means the financial year commencing on the first day of April and ending on the 31st day of March next following.

(1) Subject to the provisions of this Act, the State Government shall have power to take all such measures as it deems necessary or expedient for the purpose of protecting and improving the quality of environment, controlling and abating environmental pollution and take measures for restoration of ecological balance of the State. (2) In particular and without prejudice to generality of the provisions of the sub-section (1), such measures may include measures with respect to all or any of the following matters namely:- (a) Coordination of actions of different Departments of the State Government, officers, and other authorities under this Act or rules made thereunder or under any law for the time being in force for the purpose of achieving objectives of environmental conservation and improvement; (b) laying down procedures for implementation of this Act; (c) impose levy of environment cess or fee wherever the abuse of environment can not be prevented; (d) create a separate non lapsable 'Sikkim Ecological Fund' for depositing such fee or cess as imposed by clause (c) and ensuring utilization of such fees or cess for environmental amelioration measures; (e) impose restrictions of areas in which any industry, operations or process or class of industries or operations shall not be carried out or shall be carried out with certain safeguards on payment of cess or fee as may be prescribed by the State Government by notification; (f) impose restrictions or entry of vehicles of any kind or by persons in any area as specified and regulate the entry on payment of environmental fee as may be prescribed by the State Government by notification; (g) The State Government may by order, direct that any power or duty which by this Act or by any rule, notification or order made thereunder is conferred or imposed on the State Government shall (except the power to make rules under this Act) in such circumstances and under such conditions, if any, as may be specified in the order and subject to such control and direction by the Government and the provisions of such order shall be binding on all concerning departments, authorities and persons, in the purpose of performance or exercise of any power so conferred or duty so imposed.

(1) The State Government may, by notification in the Official Gazette, appoint such person or persons as it thinks fit to be a "prescribed authority" for such area or areas as may be specified in the notification to exercise the powers and perform the duties of the prescribed authority under this Act and may be mentioned in the order and subject to such control and direction by the Government and the provisions of such order shall be binding on all concerning departments, authorities and persons, in the purpose of performance or exercise of any power so conferred or duty so imposed. (2) Every person appointed under sub-section (1) shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code, 1860.

Environmental cess shall be paid by: (a) Every dealer, manufacturer, State and Central Government Department, Public Sector Undertaking, autonomous bodies or other organizations whoever brings non-biodegradable materials as specified in Schedule I in the State of Sikkim from outside the State for selling goods, business, manufacturing producing any product or to use for whatsoever purpose in the state on the sale price from the date of commencement of this Act; (b) Individual users who bring non-biodegradable materials as specified in Schedule I from outside the State, for known use and consumption, on the sale price from the date of commencement of this Act; (c) Every hotel, resort, lodge or motel operating within the state on its annual turnover: provided that state Government may exempt such hotels, resorts, lodges and motels in part of turnover or provide a grace period of operation of business of hotels, resorts, lodges or motels since inception for promoting hotel industry in the State as may be prescribed by the State Government by notification; (e) on any such other item having impact on environment directly or indirectly at such rate as may be prescribed by the Government by notification.

(1) The cess payable by a dealer or an individual under this Act shall be levied at the following rates (a) in respect of goods specified in Schedule I, at the rate of 1% of total turnover of sale price of non-biodegradable materials. (b) in respect of hotel, resort, lodge, motel, at the rate of 1% of total turnover: Provided that the State Government may change the rate of leviable cess under clauses (a) and (b) above from time to time by notification: Provided further that the State Government may add to or omit from or otherwise amend the Schedule I and the Schedule shall be deemed to be amended accordingly; (2) No cess shall be payable under this Act on the sale of goods and services specified in Schedule II, subject to the conditions of adherence. (3) The State Government may, by notification, order that no cess shall be payable by any class of dealers or individuals on any goods or services or such turnover as may be specified in the notification.

(1) Every dealer liable to pay cess under this Act shall apply, within 45 days of his becoming so liable to the prescribed authority for registration; (2) No dealer liable to pay cess under this Act, shall sell or procure and purchase goods unless he is in possession of a valid registration certificate granted to him by or on behalf of the prescribed authority or has applied for such registration within the time specified in sub-section (1) and his application is pending or disposed of by the said Authority; (3) The prescribed authority shall, after such enquiry as it may deem fit, grant registration to such dealer as may be specified, to such dealer: Provided that the said authority may demand such security as may be prescribed to ensure the due payment of cess; Provided further that where a notification is issued under the Act, requiring any person or class of persons to get registered, such person or class of persons shall notwithstanding anything contained in the earlier provision, apply for and be registered within the time specified in the notification, not exceeding 30 days; Provided that the said authority may vary or on an application by the dealer for reasons to be recorded in writing, waive or reduce the penalty if it is satisfied that the delay is on account of any reason beyond the control of the dealer.

(1) Every registered dealer shall furnish such returns, for such periods in such form, to such authority and within such time as may be prescribed. Explanation-A dealer who gets the registration from a particular date is also liable to furnish return for the period prior to such date during which he was liable to pay cess under this Act. (2) The dealer shall therein furnish a true return covering the entire period in such manner and within such time as may be prescribed and the process due under this Act according to the return and furnish alongwith return proof of the same and any such proof of payment shall be deemed invalid if not been furnished; (3) If a registered dealer fails without reasonable cause, to furnish any valid return within the time specified by the prescribed authority, such dealer shall be liable to pay, in addition to any cess payable by him, a penalty as may be determined by the prescribed authority at the rate not exceeding five hundred rupees per day to the maximum as may be prescribed or for each day of default or failing to file returns/payment within the period or take action under any of the provisions of this Act.

(1) If the prescribed authority is satisfied that the return or turnover furnished by a dealer is correct and complete, it may without requiring the presence of dealer or requiring any evidence form him, determine the cess due from the dealer and the dealer shall deposit such assessed amount of cess in a minor head of account of Government revenue; (2) (a) If the prescribed authority is not satisfied as aforesaid and requires the presence of dealer or production of evidence from him it may serve on such dealer a notice of the prescribed time requiring him or his representative to attend and produce on a date to be specified, any evidence that the dealer may rely on, in support of his return; (b) After hearing the dealer or his representative and examining the evidence, the prescribed authority shall determine the cess due; (3) If a registered dealer fails to: (a) furnish any valid return of turnover as required under Section 8 or return filed under sub-section (1); (b) comply with the notice issued under sub-section (2) of this Section; or (c) satisfy the assessing authority about the correctness of the returns; the assessing authority shall, after giving a reasonable opportunity of being heard, assess to the best of its judgement the amount of cess due from the dealer: Provided that the penalty under this sub-section shall be imposed only if the prescribed authority is satisfied that the failure of the dealer is deliberate or unjustified and unless a reasonable opportunity of being heard is given to the dealer.

(1) The cess admissible from a dealer as shown in any return or revised return furnished by him under Section 8 and cess and penalty as due under Section 9 shall be paid in such manner as may be prescribed (2) The total amount of cess, penalty and interest assessed under clause (b) of sub-section (2) of Section 9 or under sub-section (3) of section 9 or under sub-sections (3) and (4) of Section 10 and sub-sections (2) and (3) of Section 11 as the case may be, shall be paid by the dealer in such manner and by such date as may be specified in a notice to be served by the prescribed authority; the date so specified being not less than thirty days from the date of service of the said notice: Provided that the said authority may, in the interest of the persons to become, or on the application of the dealer, allow the payment to be made in instalments as may be determined by it; (3) If a dealer fails to make payment of the amount of cess due as per the notice issued under sub-section (2) or by the date determined by the authority, then he shall be liable to pay simple interest on such amount, at the rate of two percent for each month of delay from the date so specified and such interest shall be treated as if it were cess due under this Act and shall be paid by the dealer in the prescribed manner: Provided that interest shall not accrue or be charged on any amount due the recovery of which is stayed under sub-sections (5) and (6) during the period the stay operates; (4) Any amount of cess, penalty or interest due from a dealer which remains unpaid may be recovered on application by the prescribed authority to the Judicial Magistrate of the first class who shall realize it as if it were a fine imposed by him: Provided that where during the proceedings under this sub-section the amount of Cess, penalty or interest due from a dealer is reduced as a result of appeal or otherwise, the prescribed authority shall inform the dealer accordingly and the penalty shall be reduced, and if any amount is already paid in excess it shall be refunded to the dealer and shall be deemed to be adjusted to the amount of penalty. (5) If any dealer is aggrieved by the imposition of cess, penalty or interest under sub-section (3) and (4) of Section 10, he may prefer an appeal in writing to the next higher authority to the prescribed authority as notified by the State Government as per procedure laid down in Section 18. (6) Where an appeal against or an application for revision of the assessment of cess or levy of penalty or interest is entertained, the appellate or the revisional authority as the case may be, may on application stay recovery of the cess penalty or interest in whole or in part subject to such conditions as it may impose till such date as it may direct: Provided that the stay of recovery so granted shall stand vacated on the expiry of the period specified in the order of the appellate or revisional authority unless the appeal or revision is disposed of/decided earlier by the said authority and the recovered cess shall be deposited within 15 days as directed by the authority.

13 (1) There shall be established for the purpose of this Act a fund to be called the Sikkim Ecology Fund. (2) The fund shall be under the control of the State Government and there shall be credited to the fund the following: (a) any sum of money credited under Section 14; (b) any sum collected by the State Government in carrying out its functions; (c) any grant or aid provided by the Central Government or State Government for the purpose of carrying out any environmental improvement measures; (d) the proceeds of the cess and penalty specified in Section 6 and Section 10 shall be credited to the fund or transferred to the head of account for the purpose.

15 (1) The fund shall be utilized for: (a) taking any measures for the protection and improvement of the quality of environment and preventing, controlling and abating pollution or restoration of ecological balance of the State; (b) taking any specific measures as may be prescribed by the Government.

17 (1) No assessment made, proceedings taken or order passed under this Act shall be called into question in any Court save as otherwise provided in this Act. (2) No suit, prosecution or other legal proceedings shall lie against any public servant or any person appointed under Section 4 or Section 16 for anything done in good faith under this Act or the rules made or notifications issued thereunder save with the previous sanction of the State Government.

18 (1) Subject to such rules as may be made, any dealer may, in the prescribed manner appeal to such authority as may be prescribed against any order passed under sub-section (3) of Section 9, sub-section (3) and (4) of Section 10 and sub-section (3) of Section 11 of the Act. (2) No such appeal shall be entertained unless,- It is accompanied by proof of payment in such manner as may be prescribed, of the amount of cess admitted by the dealer to be due from him and twenty five percent of the difference between such amount of cess including penalty and interest assessed. (3) The aforesaid appellate or revising authority may, (a) confirm, reduce, annul, enhance or otherwise modify the assessment of cess, penalty or interest; (b) set aside any order and direct the authority which made the order, to pass a fresh order after further enquiry on specified points; (c) pass such other orders as it may deem fit and proper. (4) No order prejudicial to any dealer shall be passed under this section without a reasonable opportunity of being heard being given to him.

19 The amount of fees payable for any appeal or application made under this Act shall be such as may be prescribed Provided that no fee shall be payable for any appeal or application filed by or on behalf of the State Government.

20 (1) Without prejudice to any action taken or that may be taken or any order passed or may be passed under any of the provisions of this Act, whoever,- (a) being a dealer sells or purchases goods in contravention of sub-section (2) of Section 8 or fails or neglects to comply with the provisions of sub-section (1) thereof; or (b) fails without sufficient cause, to submit any return required under section 8 or wilfully submits a false return; or (c) not being a registered dealer falsely represents that he is such a dealer; or (d) prevents or obstruct any authority under this Act in the performance of its duties and functions under this Act; or (e) fails to pay the cess, penalty or interest due in accordance with sub-section (2) of Section 9, sub-section (3) and (4) of Section 10 or Section 11; or (f) contravenes the provisions of Section 12 or (g) contravenes Section 21; or (h) abets any person in the commission of any of the offences specified in clauses (a) to (h); shall be punishable with imprisonment of either description which may extend to one year or with fine which may extend to fifty thousand rupees or both.

(1) The provisions of any other law in force in the State in so far as they are inconsistent with the provisions of this Act, are hereby repealed. (2) Notwithstanding such repeal, all collections of environment cess of environment fee, penalty and interest and all proceedings or assessments made, action taken or orders passed by any authority under any law, referred to in sub-section (1) shall be deemed to have been made, done or taken under the corresponding provisions of this Act.

1. Cement including grey and white cement including all varieties thereof. 2. Iron and steel, articles made from iron and steel, furniture made wholly or principally of iron or steel like safes, almirahs, grill, gates furniture and other similar items made thereof. 3. New Motor Vehicles, including chassis of motor vehicles. 4. Motor tyres and tubes and spare parts accessories and component parts of motor vehicles. 5. Motor cycles and cycle combinations, motor scooters, motorettes and tyres, tubes and spare parts accessories and component parts of motor cycles, motor scooters, and motorettes. 6. Bricks and marble, marble chips, marble or mosaic floor and wall tiles and articles made of marble or mosaic, granite, tiles of all kinds. 7. All electrical goods of general nature including all types of wires, cables, switches of all kinds, pipes for concealed cabling, bulbs, tube lights, fancy lights, heaters of all varieties and descriptions and all other electrical gazettes and goods including geysers, mixers, grinders, washing machines, refrigerators, air conditioners, air-coolers and air conditioning Plants, and spare parts accessories and component parts. 8. Electronic goods of all kinds and descriptions including television sets, microwaves ovens, music systems of all descriptions, transistor, radios, accumulators amplifiers and loudspeakers and spare parts accessories and component parts thereof. 9. Hardware goods of all kinds made from plastic and/or iron G.I. pipes, GCI sheets. 10. All kinds of paints, including acrylic and plastic emulsion paints, Lacquer, varnishes, distempers, cement colours of paints, enamels, liquid paints, stiff paste paints, powder paints, whether ready for use or not. 11. Varnishes, vegetable paint remover and strainers of all kinds. 12. Bitumen, hard coke, soft coke and all other allotropic forms thereof. 13. Rubber items of all kinds and goods made therefrom. 14. Wines, liquor, spirit and beer. 15. Glass and glassware of all kinds. 16. Readymade food of all kinds tinned or packaged in polypacks or tetra packs. 17. Cold drinks, aerated drinks and mineral water when bottled in non-degradable materials. 18. Aluminum frame and aluminum goods of all kinds, furniture made wholly or principally of aluminum. 19. Plastic goods and plastic sheets and all other items made of plastic. 20. Brass, copper and brass wares and copper wares including all items made therefrom. 21. Air machinery and equipments used for generation of electricity in all kinds of hydel power stations, thermal power stations and other power generating equipments and power transmission lines. 22. Wireless reception instruments and apparatus, radios and radio-gramophones. 23. Cinematographic equipment including cameras, projectors and sound recording and reproduction equipment and spare parts, accessories and component parts thereof, lenses, films and parts and accessories required for use therewith. 24. Photographic and other cameras and enlargers and spare parts accessories and component parts thereof, lenses, films and plates, paper and cloth, and other parts and accessories required for use therewith. 25. All clocks, timepieces and watches and parts thereof. 26. All arms including rifles, revolvers and pistols, and ammunition for the same, detonators and crackers. 27. Cigarette cases and lighters. 28. Dictaphone and other similar apparatus for recording sound and parts thereof and electro-magnetic recording tapes including cassette tapes whether pre-recorded or not, cells of all kinds and descriptions. 29. Sound transmitting equipment including telephones, mobile phones of all makes, loudspeaker and spare parts thereof. 30. Computers, printers, scanners and hardware connected therewith, CDs, Floppys, printer refills, typewriters, tabulating machines, calculating machines, duplicating machines, photocopying machines and printing machines and parts and accessories thereof. 31. Binoculars, telescopes and opera glasses. 32. Gramophones and component parts thereof and records. 33. Cushions, mattresses, pillows and other articles made wholly or partly of artificial foam. 34. Cushions, mattresses, pillows and other article made wholly or partly of artificial or synthetic resin and plastic foam. 35. Vacuum flasks of all kinds and descriptions including refills for such flasks. 36. Utensils made wholly or principally of stainless steel or aluminum and copper. 37. Upholstered wooden furniture. 38. Perambulators including push-chairs, babies and spare parts accessories and component parts thereof. 39. Carpets of all varieties and description except locally produced. 40. Linoleum. 41. Lifts, whether operated by electricity or steam, and spare parts accessories and component parts thereof. 42. Exhaust fans and air circulators and spare parts, accessories and component parts thereof. 43. Diamond, Precious and synthetic stones other than diamond-real or artificial. 44. Pearls-real, artificial or cultured. 45. Gold or silver jewelry and filigree. 46. Laminated sheet, like formica, Sunmica, etc. 47. Ornaments set with diamond or stones (real or artificial) or with pearls (real, artificial or cultured). 48. Perfumes. 49. Cosmetics of all varieties. 50. Any other non-biodegradable materials defined in clause (a) of section 2 which is not specified by name in this Schedule.