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

49 of 1975

16th August 1975

Smoking of cigarettes is a harmful habit and, in course of time, can lead to grave health hazards. Researches carried out in various parts of the world have confirmed that there is a relationship between smoking of cigarettes and lung cancer, chronic bronchitis; certain diseases of the heart and arteries; cancer of bladder, prostrate, mouth pharynx and oesophagus; peptic ulcer etc., are also reported lo be among the ill-effects of cigarette smoking. It has, therefore, become necessary to provide, in .the interests of the general public, that trade or commerce in, and production, supply and distribution of, cigarettes shall not be made unless each package of cigarettes or its lable bears thereon the specified warning that "cigarette smoking is injurious to health". The Bill seeks to achieve the said object. - Gaz. of Ind., 22 -4-1975, Pt. II, S. 2, Ext" p. 348,

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:-

SECTION 01: SHORT TITLE, EXTENT AND COMMENCEMENT

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

(2) It extends to the whole of India.

(3) It shall come into force on such date1as the Central Government may, by notification in the Official Gazette, appoint.

SECTION 02: DEFINITIONS

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 labelling 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) "label" 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, labelling, re-labelling, 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 in goods 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."

SECTION 03: RESTRICTIONS ON TRADE AND COMMERCE IN, AND PRODUCTION, SUPPLY AND DISTRIBUTION OF, CIGARETTES

(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.

SECTION 04: MANNER IN WHICH SPECIFIED WARNING SHALL BE MADE

(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 and shall be printed, painted or inscribed on the package in a colour which contrasts conspicuously with the background of 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.

SECTION 05: RESTRICTIONS ON ADVERTISEMENTS OF CIGARETTES

(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).

SECTION 06: LANGUAGE IN WHICH THE SPECIFIED WARNING SHALL BE EXPRESSED

(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 and Indian language or languages, the specified warning shall be expressed in the English language as well as in such Indian language or languages;

(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.

SECTION 07: SIZE OF LETTERS

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.

SECTION 08: POWER OF ENTRY AND SEARCH

(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.

SECTION 09: POWER TO SEIZE

(1) If any police officer, not below the rank of a sub-inspector, has any reason to believe that, in respect of any package or 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 whole jurisdiction such seizure has been made, has been obtained for such retention.

SECTION 10: CONFISCATION OF PACKAGES

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

SECTION 11: POWER TO GIVE OPTION TO PAY COSTS IN LIEU OF CONFISCATION

(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.

(2) 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.

SECTION 12: LIABILITY TO PENALTY

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 liabe 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.

SECTION 13: CONFISCATION OR PENALTY NOT TO INTERFERE WITH OTHER PUNISHMENTS

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 there by is liable under the provisions of this Act or under any other law.

SECTION 14: ADJUDICATION

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.

SECTION 15: GIVING OF OPPORTUNITY TO THE OWNER OF SEIZED PACKAGES

(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).

SECTION 16: APPEAL

(1) Any person, aggrieved by any decision of the court adjudging a confiscation, ordering the payment of costs or 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 opportunity of being heard, pass such order as it thinks fit confirming, modifying or reversing the decision 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.

SECTION 17: PENALTY

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.

SECTION 18: OFFENCES BY COMPANIES

(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 that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence 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 connivance 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.

SECTION 19: OFFENCTS TO BE COGNIZABLE AND BAILABLE

(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973-, an 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.

SECTION 20: PROTECTION OF ACTION TAKEN IN GOAD FAITH

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

SECTION 21: POWER TO MIKE RULES

(1) The Central Government may, by notification in the Official Gazette, make rules2to 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 cigarattes has been 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 comprised in one session or in two or more successive its lions, 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 rule 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.

SECTION 22: ACT NOT TO APPLY TO CIGARETTES WHICH ARE EXPORTED

Nothing contained in this Act shall apply to any cigarette 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 law in force in that country requires that the same or similar warning shall be specified on each package of cigarettes.

1. Enforced on and from 1-4-1976 - See Gaz. of Ind" 25-10-1975, Pt. II, S. 3 (ii), p. 3793.

CIGARETTES (REGULATION OF PRODUCTION, SUPPLY AND DISTRIBUTION) RULES, 1976

G.S.R. 266 (E), dated 31st March, 1976'.-In exercise of the powers conferred by Sec. 21of the Cigarettes (Regulation of Production, Supply and Distribution) Act, 1975 (49 of 1975), the Central Government hereby makes the following rules, namely:

RULE 01: SHORT TITLE, EXTENT AND COMMENCEMENT

- (1)These rules may be called the Cigarettes (Regulation of Production, Supply and Distribution) Rules, 1976.

(2) They shall come into force on the 1st April, 1976.

RULE 02: DEFINITIONS

-In these rules, unless the context otherwise requires,-

(1) "Act" means the Cigarettes (Regulation of Production, Supply and Distribution) Act, 1975 (49 of 1975);

(2) "police officer" means a police officer not below the rank of a sub-inspector of police;

(3) "Form" means a Form set out in the Appendix to these rules;

(4) "section" means a section of the Act.

RULE 03: SEIZURE OF PACKAGE OF CIGARETTES

- (1) Every seizure made in pursuance of the provisions of sub-section (1) of Sec. 9-shall be made in the manner hereinafter provided in these rules.

(2) The police officer may carry or keep the package so seized in the safe custody of the person from whom it was seized if it is not possible to carry the seized package : Provided that in the event of his keeping the package to seized in the safe custody of the person from whom it was seized, he shall carry one or more packages as sample to be dealt with as hereinafter provided :

Provided further that in respect of the package that the police officer keeps in the custody of the person from whom the package was seized, he shall require him to execute a bond in Form C for a sum of money nearly equal to the value of such articles with two sureties for the like amount.

(3) A police officer seizing a package of cigarettes under sub-section (1) ofSec. 9-, shall prepare a seizure list of such package in Form A and shall seal such package in the manner provided inRule 4-.

(4) The package of cigarettes seized shall be marked with a distinguishing number and shall also be signed by the police officer, the person from whom the package has been seized and two respectable inhabitants of the locality.

(5) The package so seized or one or more samples thereof taken under sub-rule (2), and a copy of the seizure list shall be forwarded for safe custody to the officer in charge of the police station within the local limits of whose jurisdiction the seizure was made, for taking further action for the contravention of the provisions of the Act : Provided that where the police officer is of opinion that the retention in his custody of the seized package of cigarettes for a period exceeding ninety days is necessary, he shall obtain the leave of the District Judge within the local limits of whose jurisdiction the seizure was made, for such retention.

RULE 04: MANNER OF PACKING AND SEALING THE PACKAGE OF CIGARETTES SEIZED

- (1) The package of cigarettes so seized shall be completely wrapped in fairly strong thick (Manilla) paper in such a way that the contents of the package may not be tampered with and the ends of the paper shall be neatly folded in and affixed by means of gum or other adhesive.

(2) The paper cover shall be further secured by means of strong twine or thread and the twine or thread shall be fastened on the paper cover by means of sealing wax on which there shall be at least four distinct and clear impression of the seal of the police officer of which one shall be on the top of the package, one at the bottom and the other two at the body of the package and knots of the twine or thread shall be covered by means of sealing wax bearing the impression of the seal of the police officer.

RULE 05: FORMS OF NOT TO DISPOSE OF STOCK AND OF BOND

-Where the police officer keeps a package of cigarettes seized under sub-section (1) ofSec.9-with the person from whom it is seized, he shall after sealing such package of cigarettes, make an order to the person from whom it is seized in Form B and the person shall comply with such order.

RULE 06: DUTIES OF POLICE OFFICER

-It shall be the duty of police officer,-

(1) to inspect as frequently as may be required all establishments licensed for the manufacture, storage or sale of cigarettes within the local limits of the jurisdiction,

(2) to satisfy himself that the provisions of the Act are being observed,

(3) to investigate any complaint which may be made to him in writing in respect of any contravention of the provisions of the Act, or of these rules,

(4) to maintain a record of all inspections made and action taken by him in the performance of his duties, including the seizure of stock and to submit copies of such record to the officer in charge of the police station within the local limit of whose jurisdiction such action was taken or, as the case may be, seizure was made,

(5) to make such inquiries and inspections as may be necessary to defect the production, storage or distribution of cigarettes in contravention of the provisions of Act or of these rules,

(6) to stop any vehicle suspected to carry cigarettes for sale or delivery for smoking in contravention of the provisions of the Act or of these rules,

(7) to perform such other duties as may be entrusted to him under these rules.

RULE 07: REFUND OF PENALTY/FINE

- (l)Where by reason of an order or decision of the Appellate or Revisional Court, any refund of any penalty or Fine imposed under this Act becomes necessary, the appellant or applicant for revision as the case may be, may claim for refund in Form D and every such claim shall be accompanied by a certified copy of the decision or order of the Appellate or Revisional Court, as the case may be.

(2) The claim for refund shall be referred with a period not exceeding ninety days from the date of decision or order of the Appellate or Revisional Court as the case may be: Provided that in computing the said period of ninety days, the time required for obtaining a certified copy of the decision or order of the Court shall be excluded.

(3) The claim shall be presented by the claimant in person or through a duly authorised agent or by post, to the local Treasury Officer.

(4) The Treasury Officer shall, if he is satisfied about the claimant's right to get the refund, make the payment to the claimant or to a person duly authorised by him or by pest, and obtain necessary receipt of payment.

APPENDIX 01: THE APPENDIX

(Police Officer)

FORM 01: FORM A

[SeeRule 3 (3)-] To (Name and address of the person from whom packages of cigarettes are seized) .............................................................. .............................................................. The stock of cigarettes detailed below has this day been seized by me under sub- section (1) ofSec. 9-of the Cigarettes (Regulation of Production, Supply and Distribution) Act, 1975 (49 of 1975), from the premises. ................................ situated at................................................................................. Details of packets of cigarettes seized : Place:................................... .............................................

FORM 02: FORM B

[SeeRule 5 (1)-] (Name and address of the vendor) .......................................................... .......................................................... Whereas packages of cigarettes intended for supply and distribution which are in your possession appear to me to be without the specified warning as defined in the Cigarettes Regulation of Production, Supply and Distribution) Act, 1975: Now, therefore, in exercise of the powers conferred by sub-section (1) ofSec. 9-of the Cigarettes (Regulation of Production, Supply and Distribution) Act, 1975 (49 of 1975). I hereby direct you to keep in your safe custody the said sealed stock subject to such orders as may be issued subsequently in relation thereto. Place:......................................... ...............................................

FORM 03: FORM C

[SecRule 3 (2)-] BOND OF SURETY Know All Men by these Presents that we (1)..................................................................... son of.........................................resident of............................................................... .and (2)..................................... son of................................................... resident of. . . ........... ...............................................Proprietors/partners/of M/s................................................ ................. and M/s. ......................................... Ltd., a company recognised ................... underthe Companies Act, 1956- having its registered office at............................................ (hereinafter called the producer/supplier/distrutor/traders/importers) and (3). ..................... .......................son of........................... resident of............................................................ ............................ and (4). ..................................... son of................................................ resident of............................................................ (hereinafter called the surety/sureties are held and firmly bound upto the President of India/Governor of........................................... (hereinafter called the Government) in the sum of Rs. ........................................................ (Rupees. ...................................................) to be paid to the Government on demand and without demur for which payment to be well and truly made we firmly bind ourselves and our successors/heirs/administrators jointly severally by these presents. Dated this. ........................................................ day of................................................... One thousand nine hundred and. ................................ Whereas Shri. ............................................. Police Officer attached to Police Station.................................................has seized................................................... (here insert the description of materials together with number/quantity and total police hereinafter referred to as said article of) from. ......................................at................. .................................. (specify persons and place). And, Whereas, on the request of the producer/supplier/distributor/importer(s) the Government agreed to keep the said attached articles in the safe custody of......... on the condition ofproducer/supplier/distributor/trader/importer(s) executing a bond in the terms herein contained supported by surety/two sureties which the producer/supplier/ distributor/trader importer(s) has/have agreed to do. And Whereas, on the request of the producer/supplier/distributor/trader/importer(s) is such that if the producer/supplier/distributor/trader/importer(s) produce intact the said attached articles before such Court or authority and on such date or dates and times as may be specified by the said Police Officer or any other officer acting on his behalf from time to time and till such Police Officer or any other officer acting on his behalf releases the producer/supplier/distributor/lrader/importer(s) from doing so or the attached articles are released by Court, then and in such event the said bond shall be void and of no effect otherwise the same shall be and remain in full force and virtue. And it is hereby expressly agreed by and between the parties that the decision of the said Police Officer or any other officer acting on his behalf as to whether the producer/ supplier/distributor/irader/importer(s) has/have carried out or failed to carry out the aforesaid obligation shall be final and binding on the producer/supplier/ distributor/trader/importer(s) and the sureties. These presents further witness as follows :-(i) The liability of the surety/sureties hereunder shall not be impaired or discharged by reason of any time being granted by or any forbearance act or omission of the Government whether with or without the knowledge or consent of the sureties or either of them in respect of or in relation to all or any of the obligations or conditions to be performed or discharged by the producer/supplier/distributor/lrader/importer(s) nor shall it necessary for the Government to sue the producer/ supplier/ distributor/ trader/ importer(s) before sueing the sureties or either of them for the amount due hereunder. (ii) This bond is given under the Cigarettes (Regulation of Production, Supply and Distribution) Act, 1975 (49 of 1975), for the performance of an act in which the public are interested. (iii) The Government shall bear the stamp duty payable on these presents.1In witness whereof these presents have been signed by the producer/supplier/ distributor/trader/importer(s) and the surety/sureties the day herein above mentioned. Witness. 1. Signature Name and Address Signature of producer/supplier/distributor/tiader/importer(s) 2, Signature Name and Address Signature of Surety/Sureties Accepted For and on behalf of the President of India/Governor of........................................ Signature (Name and Designation)