|
THE NO. 103/IT &
CT/11(36) 2005 DATED 28TH MARCH 2005 NOTIFICATION In
exercise of the powers conferred by sections 97, 101 and of all other powers
enabling it in this behalf under the Sikkim Value
Added Tax Act, 2005, the Government of Sikkim
hereby makes the following rules; namely:- CHAPER
I PRELIMINARY 1. Short title, extent and commencement. (1)
These rules may be called the Sikkim Value Added
Tax Rules, 2005. (2)
They shall extend to the whole of (3) They shall come into force on the 1st day of April, 2005. 2. Definitions. (1)
In these rules, unless there is anything repugnant in the subject or context,
- (a)
"Act" means the Sikkim Value Added Tax
Act, 2005; (b)
"agent" means a person authorised by a
dealer in writing to appear on his behalf before the Appellate Authority, the
Commissioner, the Special Commissioner or any other officer appointed under
sub-section (3) of section 3, being – i) a relative of the dealer; ii)
a person regularly employed by the dealer; iii)
an advocate or any other person entitled to plead in any Court of law in iv)
a person who has enrolled as a Member of the Institute of Chartered
Accountants of India or the Institute of Cost and Works Accountants of India
or has passed the degree examination in commerce recognised
by any Indian University incorporated by law for the time being in force and
permitted by the Commissioner in writing to act as authorised
representative or agent on behalf of the dealer; (c)
"Appellate Authority" means the Appellate Authority appointed under
sub-section (1) of section 4; (d)
"appropriate assessing authority" , "appropriate auditing
authority", "appropriate registering authority" and
"appropriate prescribed authority" means the Additional
Commissioner, the Joint Commissioner, the Deputy Commissioner or the
Assistant Commissioner of Commercial Taxes in the area of jurisdiction as may
be specified by the Commissioner by notification under sub-rule (4) of rule
3; (e)
"appropriate Government treasury" means the Government treasury,
the State Bank of (i) in the case of a dealer or assessee, where such dealer
or assessee has his place of business or head office; and (ii)
in the case of any owner of goods in transit, where
his goods are detained.
(f)
"authorised signatory" means in case of a
dealer which is, — (i) a proprietorship concern, the proprietor of the
concern or any person duly authorised by him; (ii)
a partnership firm, a partner of the firm or any person duly authorised by him; (iii)
an HUF, karta of HUF or any person duly authorised by him; (iv)
a society, the chairman or secretary of the society or an officer of the
society authorised under the by-laws of the society
or under any other special or general resolution of the society or under a
resolution passed by the Governing Body of the society; (v)
a company, the chairman, managing director or a director of the company or a
principal officer of the company authorised under
the Memorandum of Articles of Association of the company or under any other
special or general resolution of the company or under a resolution passed by
the Board of Directors of the company,— to
act, apply, receive and sign any application, return, statement, list,
document, declaration, certificate or agreement for and on behalf of the
dealer for the purposes of the Act and these rules either generally or for
such particular purpose or purposes as may be stated in the authorisation: Provided
that a copy of such authorisation is given to the
appropriate assessing authority; (g)
"Checker" means the person appointed by that designation under
clause (a) of sub-section(3) of section 3 to assist the Commissioner and such
person shall exercise such powers and perform such duties as may be specified
in these rules or in the order made in this behalf, in writing, by the
Commissioner; (h)
"company" means a company incorporated under the Companies Act,
1956 (Act 1 of 1956); (i) "Form" means Form appended to these rules; (j)
"HUF" means Hindu Undivided Family; (k)
"Inspector" means the person appointed by the designation of
Inspector of Commercial Taxes by the State Government under sub-section (1)
of section 3; (l)
"return period" means a period of time for which a dealer is
required under or by these rules to furnish a return in respect of business
carried out by him during that period; (m)
"section" means a section of the Act; (n)
"Schedule" means Schedule to the Act; (2)
The words and expressions used in these rules, which are not defined but
defined in the Act, shall have the meanings respectively assigned to them in
the Act. CHAPTER II SUPERINTENDANCE AND
CONTROL OF ADMINISTRATION, JURISDICTION OF
COMMERCIAL TAXES AUTHORITIES AND DELEGATION OF
POWERS 3. Superintendence and Control. (1)
The Commissioner of Commercial Taxes shall superintend the administration and
collection of tax leviable under this Act and shall
have a control over Commercial Taxes Authorities appointed under sub-section
(3) of section 3. (2)
For the purpose of administration of the Act, the State shall be divided into
two divisions, namely:- (a)
South-west Division; and (b)
North-east Division; (4)
Each Division shall be headed by the Additional Commissioner of taxes
assisted by the Joint Commissioner of Commercial Taxes and such number of
Deputy and Assistant Commissioner of taxes as the Commissioner may by general
or special notification specify. (5)
The Commissioner may in the notification issued under sub-rule (3) specify
the powers to be exercised and duties to be performed by each of the officers
and the area of jurisdiction within which such powers and duties will be
exercised or performced by them. 8. Delegation of powers. Without
prejudice to provisions of rule 3, the Commissioner may, by general or
special order, delegate any of the powers conferred on him by or under the
Act except powers conferred by section 74 on any officer subordinate to him
and on such delegation such powers shall also be exercised by such officers. CHAPTER III REGISTRATION OF
DEALER, AMENDEMENT AND CANCELLATION OF CERTIFICATE OF
REGISTRATION AND IMPOSITION OF PENALTY FOR FAILURE TO
REGISTER AS DEALER 5. Application for registration. (1)
A dealer shall make an application in Form 1 for registration under section
26 or section 27 to the appropriate registering authority. (2)
The application in Form 1 shall be duly filled in and signed by the dealer or
his authorised signatory as defined in clause (f)
of rule 2 in the case of a proprietory concern,
partnership firm, society, Hindu Undivided Family or a company and in the
case of Government, by a duly authorised officer or
in the case of any other association of persons, by the President, Secretary
or the Principal Officer of such association and such application shall also
be verified in the manner provided in Form I: Provided that for the purpose of making an application, a warehouse where no accounts of sales are kept shall not be deemed to be a place of business. *Provided
further that where a dealer has more than one place of business within the
State, he shall make a single application in respect of all such places and
name in such application or in a separate duly authenticated application
which shall be attached with Form 1, one of such places as the principal
place of business for the purpose of these rules and submit such application
to the appropriate registering authority in respect of the principal place of
business so named." 6. Particulars to be furnished by the dealer in application for
registration. A dealer shall specify in the application, in clear terms – (a)
the nature of the business, namely, whether it relates to agriculture,
horticulture, mining, manufacturing, wholesale distribution, retail
distribution, supply of food or drinks or combination of two or more of the
business of the aforesaid manner; (b)
the class or classes of taxable goods that a dealer purchases or intends to
purchase for resale by him in (c)
the class or classes of goods, that a dealer purchases or intends to purchase
for use by him directly in the manufacture of taxable goods including
containers or other packing materials in (d)
status of occupancy of the applicant in relation to the place of business
namely whether the place of business is owned, rented, leased or provided
free of rent by the owner or lessee; ____________________________________________________ *inserted by SVAT(Amendment) Rules, 2006 vide notification no.
01/ITCT/2006 dated 28/04/2006. 7. Declaration to be furnished by dealer with application for
registration. (1)
Every application for registration shall be accompanied by declaration in
Form 1A and Form 1B. (2)
A dealer or his authorised signatory shall affix
his passport size photographs in the space provided in the Form. (3)
A dealer shall, while making an application in Form 1, declare,- (a)
whether he imports any goods from any place outside (b)
gross turnover of sales of goods, gross turnover of purchases of goods or
contractual transfer price of goods involved in execution of works contract,
for the preceding year, if any and for the current year upto
a date not earlier than thirty days from the date of such application; (c)
the language in which he keeps his accounts; (d)
particulars of the certificate or enlistment for profession, trade or calling
issued by the Urban Development and Housing Department or other authority, if
any, in respect of the business, and the date of issue and last renewal
thereof; (e)
particulars of other business, if any, in (f)
particulars of the registration certificate issued by the Registrar of
Companies, (g)
whether the dealer is a member of any Chamber of Commerce or trade association; (h)
the year by reference to which the accounts are maintained in his books; (i) particulars of the Income Tax
Account Number or the fact that it has been applied for. 8. Issue of certificate of registration. (1)
When the appropriate registering authority is satisfied that the dealer has
correctly given all the requisite information and that the application is in
order, it shall register the dealer and issue a certificate of registration
in Form 2 to a dealer. (2)
The certificate of registration shall specify, amongst others, the following
particulars:- (a)
the location of the business and the branch of the business, if any, of the
dealer; (b)
the nature of business of the dealer; (c)
the class or classes of taxable goods that a dealer purchases or intends to
purchase for resale by him in (d)
the class or classes of goods that a dealer purchases or intends to purchase
for use by him directly in the manufacture of taxable goods, including
containers or other packing materials in (e)
conditions subject to which, the period for which, and the dates by which,
returns are to be furnished; (f)
the intervals at which the tax shall be payable; (g)
the date with effect from which the dealer is liable to pay tax; and (h)
the date with effect from which the certificate of
registration is granted. (3)
The appropriate registering authority shall keep Form 1A or 1B affixing
photographs of the dealer or his authorised
signatory, as the case may be, referred to in sub-rule (2) of rule 7, with
the copy of certificate of registration for official record. (4)
The appropriate registering authority shall furnish the dealer with a copy of
the certificate of registration for every additional place of business
specified therein. (5)
As far as it may be consistent with the Act and the rules made thereunder, the particulars referred to in clause (c) and
clause (d) of sub-rule (1) shall be described in the certificate of
registration in the same terms as are used by the dealer in his application
form. *8A. Registration of the class or classes of dealers referred to in section 26A. (1) Any dealer whom the directions have been issued by the
Commissioner or the appropriate prescribed authority authorized by him in
this behalf, for registration under section 26A, he shall file, within
fifteen days from the date of service of the directions or within such time
as may be extended on application of the dealer, a declaration and
affirmation, duly signed by the dealer or his authorized representative, in Form
1C. (2) On receipt of the declaration, the Commissioner or the
authorized authority shall, after necessary verifications, issue a
certificate of registration in Form 2A. (3) A separate records and registers of registration, returns,
assessments, payments of tax, penalty or interest, issuance of statutory and
non-statutory Forms, if any and all the matters pertaining to the dealers
registered under section 26A shall be maintained by the Commissioner or the appropriate
prescribed authority, in the form and manner as the Commissioner deems
appropriate in this behalf." 9. Display of certificate of registration. (1)
The certificate of registration shall be kept and displayed at the place of
business and the copy thereof in every additional place of business to which
it relates. (2)
For any breach of the provisions of sub-rule (1), a dealer shall be
punishable with a fine not exceeding two hundred rupees. *inserted by SVAT(Amendment) Rules, 2006 vide notification no.
01/ITCT/2006 dated 28/04/2006. 10. Display of signboard. (1)
Every dealer registered under this Act shall display a signboard at a
conspicuous place at his place of business showing his trade name and address
of place of business including premises number, floor, room no., etc., if
any. (2)
The signboard shall also show the number of certificate of registration. (3)
If a dealer uses more than one trade name, all such names should be displayed
on the signboard. 11. Issue of duplicate copy of certificate of registration. Any
dealer may, upon application, obtain from the appropriate registering
authority, on payment of a fee of ten rupees, a duplicate copy of any
certificate of registration which has been issued to him and which may have
been lost, destroyed or defaced. 12. Procedure for replacement of certificate of registration granted
under earlier sales tax law. (1)
For the purpose of issue of a fresh certificate of registration, the appropriate
registering authority shall, on receipt of application for registration in
Form 1 from a dealer deemed to be registered under sub-section (5) of section
26, issue a fresh certificate in replacement of such certificate or
certificates of registration within thirty days from the date of such
application except in a case covered by sub-rule (2). (2)
If the nature of business, or the class or classes of goods that a dealer
deemed to be registered under sub-section (5) of section 26, purchases for resale
in Sikkim or the class or classes of goods that he
manufactures in Sikkim for sale in Sikkim, has undergone any change, such dealer shall
furnish the particulars in the application in Form 1 to the appropriate
registering authority together with all the certificates of registration in
replacement of which a fresh certificates of registration are required to be
issued. (3)
If the appropriate registering authority is satisfied that the contents of
the application made under sub-rule (2) are correct, it shall issue a fresh
certificate of registration to such dealer within thirty days from the date
of receipt of such application. 13. Information in respect of changes requiring amendment or
cancellation of certificates of registration. (1)
When any registered dealer furnishes any information in accordance with
section 88, he shall send the certificate of registration to the appropriate
registering authority for amendment or cancellation thereof, as the case may
be. (2)
If a dealer, to whom a certificate of registration in Form 2 has been issued,
reports that a new branch or a new warehouse of the business has been opened,
the certificate shall be amended accordingly by the appropriate registering
authority after making such enquiry as it deems fit. (3)
Where a registered dealer makes an application to the appropriate registering
authority for amendment of the certificate of registration for specifying
therein any class or classes of goods under clause (c) or clause (d) of
sub-rule (2) of rule 8 and the appropriate registering authority is satisfied
that such dealer- (a)
has purchased such goods for the purposes specified in such clause, it may
make such amendment with retrospective effect from the date of filing such
application for amendment or from the date of purchase of such goods,
whichever is later, or (b)
intends to purchase such goods for the purposes
specified under clause (c) or (d) of sub-rule (2) of rule 8, it may make such
amendment with effect from the date of order. 14. Change of accounting year by a dealer. A
registered dealer may, with the permission of the appropriate registering
authority, change his accounting year, subject to such terms and conditions
as may be considered necessary by such authority. 15. Procedure in respect of change in ownership of business. (1) If any dealer, whether registered under this Act or not, effects or comes to know of any change in the ownership of his business, he shall make an application in this behalf to the appropriate assessing authority, together with the copy of the certificate of registration and evidence in respect of such change within fifteen days from the date of such change in the ownership of his business and if the appropriate registering authority is satisfied that the application is in order, it shall amend the certificate of registration. (2) The dealer making an application under sub-rule (1) shall submit the following particulars within fifteen days of the sale or disposal of such business:- (a) name and address of the purchaser; (b) date of sale or disposal; (c) number of certificate of registration of the purchaser if he is already registered; (d) the amount of tax, penalty and interest remaining unpaid by the dealer selling the business as on the date of sale or disposal of such business. 16. Procedure in respect of discontinuation of business. (1)
Where a dealer registered under the Act discontinues his business, he shall
make an application together with certificate of registration for
cancellation thereof to the appropriate registering authority. (2)
If the appropriate registering authority, after making such enquiry as it
deems fit and proper, is satisfied that the business has been discontinued,
it shall, by an order in writing, cancel the certificate of registration. (3)
Where the appropriate registering authority does not cancel the certificate
of registration of a dealer under sub-rule (2) within six months from the
date of application, such certificate shall stand cancelled immediately on
the expiry of the period as aforesaid. 17. Procedure in respect of change of name or nature of business or
class or classes of goods. (1)
If any dealer registered under the Act changes the name or nature of the
business or effects any change in the class or classes of goods specified in
the certificate of registration, he shall, in his application made to the
appropriate registering authority, mention the new name or the extent of
change in the nature of business, as the case may be, and specify the class
or classes of goods which are sought to be included under sub-rule (2) of
rule 8 in the certificate of registration and adduce such evidence as may be
necessary. (2)
If the appropriate registering authority is satisfied, after making enquiry
as it deems fit and proper that the contents of the application are in order
it shall, by an order in writing, amend the certificate of registration of
the dealer: (a)
Where he has purchased such goods for the purposes specified in sub-rule (2)
of rule 8 with effect from the date of application for amendment or the date
of purchase, whichever is later; (b)
Where he intends to purchase such goods for the purposes specified in rule 8
with effect from the date of order. 18. Information with respect to change in the constitution of Board
of Directors of Company. Where
a dealer being a company, effects any change in the constitution of the Board
of Directors, such dealer shall, within fifteen days from the date of the
resolution adopted in the meeting of the company, inform the appropriate
registering authority of the names of directors in the reconstituted Board of
Directors. 19. Procedure in respect of death of a dealer. (1)
In the event of death of a dealer, being a proprietor or partner of a firm,
his legal representative shall, within fifteen days from the date of such
death, inform, in writing to the appropriate registering authority of the
date of such death and produce before such authority such evidence as may be
considered necessary. (2)
If the appropriate registering authority is not required by section 91 to
amend the certificate of registration of the deceased dealer for transfer of
business within the meaning of that section, it shall, upon application made
by the legal representative of such dealer or otherwise, cancel such
certificate of registration immediately. 20. Declaration in respect of manager or other officers of a
registered dealer. Every
registered dealer shall, within thirty days from the date of registration,
furnish to the appropriate registering authority declaration in respect of
the manager or officers referred to in section 89 and shall send a revised
declaration within thirty days from the date of change of such manager or
officers in Form 3. 21. Cancellation of certificate of registration of a dealer
compulsorily registered. When
the appropriate registering authority is satisfied that the gross turnover
sales of any registered dealer has, for three successive years, failed to
exceed the taxable limit, it shall cancel the registration of the dealer,
unless such dealer is liable to pay tax under section 8: Provided
that where the appropriate registering authority does not cancel the
certificate of registration on the application of a dealer, on or before the
last day of the period of two years, immediately following the three successive
years during which his gross turnover of sales failed to exceed the taxable
limit, such certificate shall stand cancelled with effect from the first day
of the year immediately following the period of two years referred to above: Provided
further that if his certificate of registration is cancelled under sub-rule
(1) before the expiry of a period of two years, he shall be liable to pay tax
referred to in section 8 upto the date of
cancellation of such certificate and not thereafter. 22. Cancellation of certificate of registration of a dealer
registered voluntarily. (1)
When any dealer registered under section 27 desires to apply for cancellation
of the certificate of registration, he shall send his application to the
appropriate registering authority not less than six months before the end of
a year together with – (i) a statement of his gross turnover of sales during
three years immediately preceding; and (ii)
a declaration whether or not he manufactures or
produces any goods for sale, or imports for sale any goods from any place
outside the State. (2)
If the appropriate registering authority is satisfied that the dealer
registered under section 27 is not liable to pay tax under section 8, it
shall, on application made by such dealer under sub-rule (1), cancel the
registration with effect from the first day of the year following the year
referred to in that sub-rule: Provided
that where the appropriate registering authority does not cancel the
certificate of registration, on or before the last day of the year during
which the application for cancellation of the certificate is made, such
certificate shall stand cancelled with effect from the first day of the
following year. 23. Cancellation of certificate of registration of a dealer dealing
with tax-free goods. When
any dealer desires to apply under section 84 for cancellation of the
certificate of registration, he shall send his application to the appropriate
registering authority together with- (i) a statement of his gross turnover of sales during the
period from the commencement of the year in which such application is made
till fifteen days prior to the date of such application and also during the
immediately preceding year alongwith description of
goods or class or classes of goods sold by him during each of such years; and (ii)
a declaration stating that he does not manufacture
taxable goods for sale and that during the years referred to in clause (i), he dealt exclusively in tax-free goods specified in
Schedule I. 24. Cancellation of certificate of registration for failure to pay
any tax, penalty or interest. (1)
Where a dealer has failed to pay tax, penalty or interest under the Act or
has failed to furnish return referred to in section 30, the appropriate
assessing authority shall be competent to cancel the certificate of
registration of such dealer under sub-section (9) of section 26. (2)
The appropriate assessing authority before cancelling
a dealer’s certificate of registration shall issue a notice in Form 4 on any
day after the expiry of due date of payment of tax, penalty or interest or
furnishing of return, referred to in sub-rule (1) giving such dealer an
opportunity of being heard. (3)
If the appropriate assessing authority is satisfied that the default in
making payment or furnishing return was made by the dealer without any
reasonable cause, such authority shall cancel the certificate of registration
of such dealer with immediate effect and shall cause display of this fact on
the notice board of his office for public information. *24A. Assessment and collection of tax or recovery thereof under the
circumstances specified in sub-section (3) of section 93. (1) When at the time of cancellation of registration there are goods
(including capital goods) remaining in stock on which credit of input tax has
already been given, the dealer whose registration has been in the process of
cancellation, shall be made to furnish statement of such goods with the
detail accounts of purchases, input tax paid and credit taken thereof. (2) On receipt of the statement and details of accounts, the
appropriate prescribed authority initiating the process of deregistration
shall make assessment of tax payable by the dealer and direct him, by an
order, to pay such tax within fifteen days from the date of service of the
order. Provided that if the dealer opts to pay the tax so assessed by
disposing off the unsold stock by way of sale or otherwise within a period of
two months from the date of passing of the assessment order, the said
authority may allow him to do so by an order in writing____ *inserted by SVAT(Amendment) Rules, 2006 vide notification no.
01/ITCT/2006 dated 28/04/2006. *Provided further that if the dealer defaults in paying the tax
within the stipulated period of two months, the aforesaid authority shall
direct the dealer to make payment of such tax within fifteen days from the
date of expiry of said two months. (3) After an order of assessment of tax and payment thereof is
passed, the process of deregistration may be completed. (4) If the dealer fails without sufficient reasons, to pay the tax
in the manner and within the time prescribed under this rule, the appropriate
prescribed authority shall issue a certificate to the Tax Recovery Inspector
appointed under sub-section (4) of section 45, specifying therein the tax due
for recovery as per the provisions laid down under section 45. (5) The provisions of section 32 and the rules made thereunder shall mutatis mutandis apply against non-
payment of tax under this rule and shall be realized accordingly." 25. Restoration of certificate of registration cancelled under rule
24. Where
the certificate of registration of a dealer is cancelled under rule 24, for
failure to pay tax, penalty or interest under the Act, the appropriate
assessing authority shall, on an application made by the dealer along with
the evidence of payment of such tax, penalty or interest or furnishing of
such return or returns as the case may be, restore such certificate of
registration in accordance with the provisions of sub-section (10) of section
26. 26. Imposition and demand of penalty for failure of a dealer to
register. (1)Where it appears to
the appropriate registering authority that a dealer is liable to pay penalty
under sub- section (1) of section 29 for failure to get registered, it shall
serve a notice in Form 5 upon such dealer directing him to appear in person
or through agent and show cause on the date and at the time and
place___________________________ *inserted by SVAT(Amendment) Rules, 2006 vide notification no. 01/ITCT/2006 dated 28/04/2006. specified in such notice, as to why a penalty as proposed in the
notice shall not be imposed on him. (2)
The appropriate registering authority shall fix a date for hearing ordinarily
not before fifteen days from the date of issue of such notice. (3)
Where the appropriate registering authority imposes penalty in accordance
with the provisions of sub-section (1) of section 29, it shall issue a notice
in Form 6 directing the dealer to pay the penalty so imposed in the manner
referred to in sub-section (2) of section 29. 27. Non-levy of tax on sale of goods to diplomatic missions. (1)
Tax paid by the foreign diplomatic missions or consulates and their
diplomats, international organizations including United Nations and their
diplomats, shall be refunded to them under sub-section (2) of section 22 on
furnishing a certificate issued in this behalf duly signed by an authorized
officer of such organizations. 28. Non-levy of tax on sales of postal stationery. Where
the Department of Posts and Telegraphs of the Government of India makes sales
of inland letters, cards, registration cards, parcel forms, envelopes,
acknowledgement cards, money order forms or any other stationery articles for
rendering services of the said Department, it may, for the purpose of
determining its taxable turnover of sales, deduct under clause (c) of
sub-section (1) of section 9 from its gross turnover of sales that part of
such gross turnover which represents sales of postal stationery and articles
as aforesaid. 29. Refurnd of tax charged on purchases
made to Export Oriented Units. Where
a registered dealer makes sales of goods to the Export Oriented Units, such
Units may claim refund of the amount of tax charged under this Act. 30. Inadmissibility of tax invoices for input tax credit in certain
cases. Any
claim by a dealer for input tax credit shall not be admissible if he accepts
from any dealer or person tax invoice or invoices referred to in sub-section
(1) of section 55:- a)
which has not been duly obtained from a registered dealer against a bonafide transaction; b)
which has not been issued in accordance with Form 7 in original giving full
particulars therein; c)
which has been issued by a dealer whose certificate of registration has been
cancelled under sub-section (9) of section 26 of the Act; d)
which has been declared invalid by the Commissioner; e)
which does not show the amount of tax charged
separately. 31. Exemption from furnishing tax invoices lost due to fire or
natural calamity. (1)
Where on account of loss of any declaration due to fire or any natural
calamity, a dealer is not in a position to substantiate his claim in terms of
section 21 and where he, requires an order of the Commissioner to exempt him
from furnishing such tax invoice, such dealer may, ordinarily within three
months from the date of fire or any natural calamity, as the case may be,
make an application in writing to the Commissioner requesting him to pass an
order in this matter. (2)
In his application to the Commissioner under sub-rule (1) the dealer shall
furnish, inter alia, the following
particulars:- (a)
the year comprising period or periods to which the claim relates; (b)
nature of claims covered by the invoices specifying the relevant provisions
of the Act; (c)
amount of the claims for each period under different provisions of the Act
for which invoices are claimed to have been lost; (d)
the nature of alternative evidence in lieu of invoices claimed to have been
lost from whom goods were purchased stating therein the amount of relevant
sales by such dealer; (e)
particulars of first information report, if any lodged with local police
station or of any report of fire service station or any other authority; (f)
extent of damage caused by fire or any natural calamity on the basis of
certificate from the authorities concerned; (g)
any other evidence that the dealer wishes to adduce. (3)
The Commissioner may, on an application made by a dealer under sub-rule (1)
make such enquiries as he considers necessary or call for any evidence from
the dealer or any other person or authorities which may be deemed necessary
for disposal of such application. (4)
Where the Commissioner is satisfied that the dealer is not in a position to
furnish all or any of the invoices on account of loss of such invoices due to
fire or any natural calamity beyond the control of such dealer and the
application of the provisos referred will cause undue hardship to such
dealer, the Commissioner may, by an order in writing, exempt such dealer from
furnishing such declarations subject to conditions, if any, as he may specify
in the said order: Provided
that Commissioner may refuse to exempt any dealer from furnishing invoices
where the dealer is found to have not furnished return relating to relevant
period of claims under sub-section (1) of section 21. CHAPTER IV RETURN PERIODS,
PRESCRIBED DATES AND MANNER OF FURNISHING RETURNS AND PAYMENT OF TAX AND
INTEREST 32. Return in respect of period prior to date of order granting
registration. Where
a certificate of registration is granted to a dealer under section 26 and the
date of liability to pay tax by such dealer precedes the date of order
granting such certificate, the dealer after being registered, shall within
thirty days from such date of order, furnish all the returns along with
receipted challan showing payment of tax payable by
such dealer according to such returns for the period commencing from the date
of his liability to pay tax and ending on the date immediately preceding the
date of order granting such certificate of registration. 33. Returns and quarterly abstract statement to be furnished with
receipted challans for payment of tax. (1)
The returns for any quarter of the year shall be furnished in Form 8 along
with the receipted challan showing payment of tax,
within one month of the end of the quarter (2)
Yearly return shall be furnished in Form 9 in the following year on or
before,- (a)30th November, in the case of a company; (b)31st October, where the accounts of the dealer are required to be audited under the Act, and (c)31st July, in any other case;in accordance with the provi sion of Explanation to sub-section (3) of section 30. (3) The quarterly abstract statement referred to in sub-section (4) of section 30 shall be furnished by every dealer required to pay compounded tax under section 16, in Form 9A, on or before the end of the month following the end of the quarter along with the receipted challan showing payment of tax. *(4) If any dealer or person is unable to furnish receipted challan or proof of payment of tax along with the returns
relating to any sales declared in his returns, for reasons of non-payment of
bills on account of sales or supplies or transfer of property in goods in
execution of works contract and tax thereof is liable to be deducted at
source by any State or Central Government or any body or organization
referred to in Explanation to rule 42, such dealer or person shall, to the
satisfaction of the appropriate prescribed or assessing authority, furnish
evidence to that effect.______________ *inserted by SVAT(Amendment) Rules, 2006 vide notification no.
01/ITCT/2006 dated 28/04/2006. *33A.
Circumstances and manner in which the revised returns and revised quarterly
abstract statement is to be furnished. Subject to proviso
to sub-section (7) of section 30, in case any omission or wrong statement or
inappropriate or incorrect particulars is discovered by a dealer in the
returns or quarterly abstract statement referred to in sub-rules (1), (2) and
(3) of rule 33, the dealer shall furnish revised returns or revised quarterly
abstract statement, as the case may be, in the applicable Forms prescribed in
respective sub- rules of rule 33 mentioned hereabove,
within a period of two months from the date of filing of original return or
quarterly abstract statement. Provided that when the appropriate prescribed authority or assessing
authority discovers omission or wrong statement or inappropriate or incorrect
particulars in the original returns or quarterly abstract statement, he
shall, by a notice, direct the dealer concerned to file revised return or
revised quarterly abstract statement, within a period of fifteen days from
the date of service of the notice." *33B. Scrutiny of
returns and abstract statements. (1) Every quarterly returns or the quarterly abstract
statement furnished by a dealer or a person in compliance of section 30 of
the Act read with rule 33 of the said rules, shall be scrutinized by the
appropriate prescribed authority within two months from the month following
the end of the month prescribed or stipulated in which such quarterly returns
or quarterly abstract statement is to be furnished unless prevented to do so
by sufficient reasons to be recorded in writing and in such case the said
authority shall complete the scrutiny within such time as the Commissioner or
an authorized officer allows him in this behalf. ______________________________________________ *inserted by SVAT(Amendment) Rules, 2006 vide notification no.
01/ITCT/2006 dated 28/04/2006. *(2) Every annual returns or annual abstract statement furnished as
required under the Act or the said rules and books of accounts or any relevant
document as required to be furnished by the appropriate prescribed authority,
shall be scrutinized by such authority within three months from the month
following the month or date or time specified under clauses (a), (b) and (c)
of sub-rule (2) of rule 33 unless prevented to do so by sufficient reasons to
be recorded in writing and in such case the appropriate prescribed authority
shall complete the scrutiny within such time as the Commissioner or an
authorized officer allows him in this behalf. (3) A notice under sub-section (2) of section 37 shall be served in Form
9B and a notice under clause (b) of sub-section (3) of said section shall
be served in Form 9C stipulating the time of fifteen days from the
date of service of notice for payment of tax and, or interest." 34. Deduction of sale price of goods returned and bad debt for
computing gross turnover of sales for subsequent return period. Where,- (a)
any goods are returned by a customer to a registered dealer during any
subsequent period, following the period in which such goods were sold, (b)
sale price of goods sold by a registered dealer during a period is written
off as bad debt during any subsequent period following the period in which
such goods were sold, such
registered dealer may, while furnishing return under rule 32, deduct from his
gross turnover of sales of goods- (i) sale price of the goods so returned in respect of
which due tax has been paid by the dealer during the earlier period referred
to in clause (a); ____________________________________________________ * (ii)
sale price of the goods written off as bad debt in
respect of which due tax has been paid by the dealer during the earlier
period. *34A. Particulars to be furnished in Credit and Debit Notes. The Credit and Debit Notes referred to in sub-sections (1), (2) and
(3) of section 25 shall, inter alia, contain the
following particulars: (a) serial number, (b) Bill/Memo/Invoice and Challan number bearing date therein of
purchase or sale, as the case may be, (c) mode of payment for the purchase or sale and details thereof, (d) signature of proprietor or partner or
Director of issuing party." 35. Manner and time of payment of tax payable according to returns. Subject
to the provisions of rule 36, a registered dealer, who is required to furnish
returns quarterly, shall pay the amount of tax payable according to such
returns before furnishing such returns. 36. Payment of interest for delayed payment or non-payment of tax
payable before assessment. (1)
Every dealer liable to pay interest under sub-section (1) or (2) of section
31 in respect of any period shall pay such interest at the time of making
payment of tax payable in respect of such period. (2)
Notwithstanding anything contained in sub-rule (1), where the dealer pays the
tax referred to therein by instalments, he shall
pay the interest at the time of making payment of the tax and furnish the
statement and receipted challan each time in
accordance with the provisions of sub-rule (3). (3)
The dealer shall prepare a statement showing details of calculation of the
amount of interest payable as referred to insub-rule
(1) and furnish such statement along with receipted challan
as a proof of such interest. *36A. Manner and time of payment of tax deferred or allowed to pay
in installments under section 30A. (1) The permission for deferral payment of tax referred to in
section 30A of the Act may be granted by the State Government by
notification, in public interest, of the tax that becomes payable, as per
returns, for a period not exceeding five consecutive years, from the date
from which the dealer or the class or classes of dealers first become liable
to pay tax under the Act or from such date as the State Government may
determine in this regard. Provided that the
State Government may by like notification, in lieu of deferral of the tax of
five consecutive years provided under this sub-rule, grant permission for
deferral payment of the tax of such period and payment thereof in such period
as it may, in its discretion decide as per the provisions of any other law
for the time being in force. (2) An application shall be made to the Commissioner by eligible
dealer desirous of making payment of tax by way of deferment. Provided that the
State Government may consider granting permission for such deferral payment suo motu to any dealer or class
or classes of dealers if it deems fit to do so. (3) The State Government may allow and specify in the notification
referred to in sub-rule (1) of this rule, to pay the tax so deferred within
such period not exceeding five consecutive years from the year following the
end of the last year of the deferment allowed and in such installments as it
determines to that effect or within such period and in such installments as
may be specified in the notification in _________________________________________________________ *accordance with the provisions of any other law for the time being
in force and a certificate to that effect shall be issued to the dealer or
class or classes of dealers to whom such permission is granted. (4) Notwithstanding anything contained in sub-rules (1), (2) and (3)
of this rule, the Commissioner may, if satisfied to do so on application made
to that effect, allow any dealer or any class or classes of dealers to make
payment of tax that is payable or that becomes payable, as per returns, for
any quarter or quarters of a financial year or for any financial year, within
such period not exceeding two successive years and in such installments as it
deems reasonable and a certificate to that effect shall be issued to the
dealer or class or classes of dealers to whom such permission is
granted." 37. Challan for payment of tax to the State Bank of (1) Where any dealer, his agent or any person on behalf of such dealer is required to pay any tax, interest or penalty under the Act or these rules, he shall obtain challans from the Government Treasury or from the office of the Deputy or the Assistant Commissioner having jurisdiction in his areas of business. (2) Such challans, in quadruplicate, shall be filled in and signed by the dealer or his authorised signatory and shall be presented to the appropriate Government Treasury along with payment. (3) Separate challans shall be used by the dealer for the purpose of making payment of interest, penalty payable by, or due from, the dealer. (4) One copy
of such challans evidencing payment of tax, penalty
or interest shall be retained by the Government Treasury, one copy of such challans shall be sent to the appropriate assessing
authority and the other two copies shall be returned to the dealer duly
signed as proof of payment.________________ *inserted by SVAT(Amendment) Rules, 2006 vide notification no.
01/ITCT/2006 dated 28/04/2006. *CHAPTER IVA PAYMENT OF
COMPOUNDED RATE OF TAX, TAXABLE LIMIT AND NON-ELIGIBILITY FOR CLAIM OF INPUT
TAX CREDIT BY THE CLASS OR CLASSES OF DEALERS REGISTERED UNDER SECTION 26A 37A. Conditions and restrictions regarding payment of compounded tax
and registration under section 26A. (1) Subject to the provisions of the rules prescribed in this
Chapter, any dealer registered under section 26A of the Act may, by
application, exercise option to pay compounded tax at the rate specified
in the notification issued under third proviso of the aforesaid
section. Provided that no dealer or a person or a manufacturer who imports
any goods from any place outside the State for the purpose of his business,
shall be eligible for payment of compounded tax. (2)
Any dealer or a person or a manufacturer who proves to the satisfaction of
the Commissioner or the appropriate prescribed authority or the appropriate
assessing authority that his annual gross turnover during a year does not
exceed rupees three lakh or such amount as the
State Government may decide and specify by notification from time to time, such
dealer shall be exempted from registration under section 26A. Provided that notwithstanding anything contained in this rule, any
dealer who is otherwise not liable to be registered by reason of his annual
turnover not exceeding the limit specified in this sub-rule, may opt for
voluntary registration by an application to that effect and he shall be
liable for payment of tax as such at the rates as specified in the Schedules
of the Act or at compounded rate, as the case may be. (3) Any dealer who has opted for payment of tax at
compounded rate, as per provisions of sub-rule (1) of this rule, shall not be eligible for input
tax credit._________ *inserted by SVAT(Amendment) Rules, 2006 vide notification no.
01/ITCT/2006 dated 28/04/2006. *(4)The
provisions of sub-rule (3) of rule 33 shall, mutatis mutandis apply to the
dealers liable to pay compounded rate of tax referred to in sub-rule (1) of
this rule." CHAPTER V MANNER OF DEDUCTION
OF TAX AT SOURCE BY STATE AND CENTRAL GOVERNMENT FROM PAYMENT OF DEALERS AND
IN EXECUTION OF WORKS CONTRACT 38. Deduction of tax at source from payment of dealer. (1) The State or Central Government including department of other States, situated in Sikkim, any local body, any authority or corporation, established by or under any statute and any State or Central Government undertaking shall, at the time of payment of any sum to any dealer deduct from such payment tax at source payable by such dealer on a sale price of the goods supplied by such dealer to such State or Central Government or Body at the rate as applicable to such goods in the respective Schedules of the Act in cases of the registered dealers other than the dealers liable to pay compounded tax under section 16 *and section 26A, and at such rate, as may be notified under section 16 *and thrid proviso of to section 26A, in cases of the dealers paying compounded rate under that section. (2)
The dealer submitting or issuing the bill or invoice for payment under
sub-rule (1) shall categorically indicate therein the sale price in respect
of each of the goods supplied to the State or Central Government or a Body. (3)
The State or Central Government or a Body on deduction of tax at source under
sub-rule (1), issue a certificate in Form 10 to the dealer and a copy thereof
to the appropriate assessing authority, duly signed by the authorized officer
of such State or Central Government or a Body. ____________________________________________________ *inserted by SVAT(Amendment) Rules, 2006 vide notification no.
01/ITCT/2006 dated 28/04/2006. 39. Deduction of tax at source from payment of contractors in case
of execution of works contract. (1) The State or Central Government or a Body making payment of any sums to any contractor for carrying out a works contract, at the time of payment of such sums to contractor in any manner, deduct at source a tax payable under section 13, *at the rate of four percent on the value of each bill on account of the goods supplied or transferred (property in goods) in execution of works contract. Provided that every
contractor, submitting the bills for payment in respect of the works contract
executed by him, shall indicate in the bills the labour
charges, other like charges and non-taxable items, not involving any transfer
of property in goods, separately and also the amounts against such items to
the paying authority. Such bills shall be certified by an authority
authorized by the contractee in this behalf. The
paying authority shall deduct the tax on the balance value of the bills after
allowing deductions of labour charges and other
non-taxable items. (2)
The paying authority shall on deduction of tax at source, issue a certificate
in Form 11 to the contractor and a copy thereof to the appropriate assessing
authority, duly signed by the authorized officer of the paying authority. ** (3) Notwithstanding anything contained in sub-rule (1) and
sub-rule (2), in the case of the works contract where amounts towards labour charges and other like charges or no non-taxable
components, not involving any transfer of property in goods, actually
incurred in connection with the execution of such works contract are not
ascertainable, the State or Central Government or a body making payment of
any sums to any contractor for carrying out such works contract, at the time
of payment of such sums in any manner, shall deduct at source a tax payable
under section 13, at the rate of four percent on the gross value of
each bill on account of the execution of the works
contract._____________________ *substituted by SVAT(Amendment) Rules, 2006
vide notification no. 01/ITCT/2006 dated 28/04/2006. **inserted by SVAT(Amendment) Rules, 2006
vide notification no. 01/ITCT/2006 dated 28/04/2006. *Provided that the paying authority shall on deduction of tax at
source, issue a certificate in Form 11A to the contractor and a copy thereof
to the appropriate assessing authority, duly verified and signed by the
authorized officer of the paying authority 40. Deduction of tax
at source from payments of contractors paying composite tax. (1) Every contractor
desirous of making a lumpsum payment by way of
composition in respect of tax payable by him in relation to the execution of
works contract, referred to in section 17, shall within thirty days of the
commencement of the execution of the works contract, make an application in
Form 12 to the appropriate assessing authority. (2) On receipt of the
application the appropriate assessing authority, after conducting such
verifications as may be necessary, grant permission within fifteen days from
the date of application in Form 13, to the contractor to make lumpsum payment of tax by way of composition. A copy of
such permission may be supplied to the concerned paying authority with such
directions as may be deemed necessary: Provided that no such
permission shall be granted to the contractor who imports goods from any
place outside the State for the purpose of his business. (3) The permission
shall be deemed to apply in respect of the works contract till its completion
which may spread over in subsequent year or years. (4) The amount to be
paid in lumpsum by way of composition shall be
calculated at the rate of two percent of the total gross value of each bill
of the contractor. (5) Any paying
authority making payment of any sums to any contractor who has exercised
option under section 17 for carrying out works contract shall, at the time of
payment of such sums to such contractor in any manner, deduct the amount
towards payment of lumpsum tax at the rate
prescribed under sub-rule (4) *inserted by SVAT(Amendment) Rules, 2006 vide notification no. 01/ITCT/2006 dated 28/04/2006. (6)
The paying authority on deduction as prescribed in sub-rule (5), shall grant
a certificate to the contractor with a copy to the appropriate assessing
authority in Form 14. On receipt of the certificate the contractor shall
furnish a statement to the appropriate assessing authority in Form 15. (7)
Before any penalty under sub-section (4) of section 17 is imposed on any
person, he shall be given a reasonable opportunity of showing cause as to why
penalty should not be imposed. (8)
Every contractor who exercised the option for payment of lumpsum
tax and making payments as per this rule shall furnish the information to the
assessing authority as to termination of each of the works contract. (9)
It shall be the responsibility of the paying authority to furnish the
information to the appropriate assessing authority as to final payment made
in respect of each of the works contract within thirty days from the date of
such payment. 41. Remittance of tax deducted at source to the credit of the State
Government. (1)
The amount of tax deducted at source under rules 38, 39 and 40 shall be
remitted to the credit of the State Government within fifteen days from the
date of making of deduction in the appropriate Government Treasury, through
the challan or document of book adjustment
prescribed under the Financial Rules of the State Government or through cheque or draft. (2)
The amounts deducted from the bill of the contractor for which certificate is
issued under rules 38, 39 and 40 shall be deemed to have been paid to the
contractor and the certificate will constitute a good and sufficient
discharge of the liability of the paying authority to the contractor
concerned to the extent of the amounts covered by the certificate. *(3) In case of failure to deduct tax at source as required under
section 13 and section 16 of the Act, by any person or having deducted, fails
to remit to the State Government in the manner prescribed, the provisions of
sub-section (8) of section 19 of the Act shall apply mutatis mutandis against
such failure to deduct the tax at source or failure to remit the deducted
tax. 42. Information of awarding of works contract. Every
person entering into any contract with any contractor for execution of works
contract, shall inform the Commissioner of such contract within fifteen days
from the date of signing of the contract or issue of letter of intent. Explanation— For the purpose of this Chapter,-"State or Central Government
or Body" and "paying authority" means the State Government or
Central Government, including departments of other States, situated in Sikkim, any local body, any authority or corporation,
established by or under any statute and State or Central Government
undertaking. CHAPTER VI ASSESSMENT OF TAX,
IMPOSITION OF PENALTY FOR DEFAULT IN FURNISHING RETURNS, DETERMINATION OF
INTEREST, DEMAND, COLLECTION AND RECOVERY THEREOF, REFUND OF EXCESS PAYMENT 43. Notice of hearing to the dealers for the purpose of assessment
of tax and imposition of penalty. (1) Where it appears necessary to the appropriate assessing authority to make an assessment under section 38 or section 40 in respect of a dealer for a year, comprising period or periods or any period, such assessing authority shall serve a notice in Form 16 upon a dealer directing him to appear before him in person or through his authorised agent on the date and time specified in such notice for compliance of the requirements for the purpose of assessment of tax in respect of the aforesaid period or periods and imposition of penalty under sub-section (2) of section 40. *inserted by SVAT(Amendment) Rules, 2006 vide notification no.
01/ITCT/2006 dated 28/04/2006. (2)
In the notice referred to in sub-rule (1), the date of hearing shall be fixed
ordinarily not before fifteen days from the date of issue of such notice. (3)
Where it appears necessary to make assessment under section 40, the
appropriate assessing authority shall serve a notice in Form 16 upon the
dealer fixing the date of hearing ordinarily not before ten days from the
date of issue of such notice and directing him to appear before such
assessing authority in person or through his authorised
agent on the date and time specified in such notice for compliance of the
requirements of sub-rule (4) and sub-rule (5) for the purpose of assessment
of tax and imposition of penalty in respect of the return period referred to
in sub-section (2) of that section. (4)
The appropriate assessing authority shall, in the notice referred to in
sub-rule (1) or sub-rule (3) require the dealer- (a)
to produce the books of account and other accounts referred to in section 54
in respect of the period under assessment, (b)
to furnish documents required to be maintained and furnished under the
provisions of the Act and rules made thereunder claiming
exemption from payment of tax and lower rate of tax payable by him, (c)
to furnish any other information relating to assessment of tax, and to explain the books of account, other accounts, documents
or information referred to in clause (a), clause (b), or clause (c) on the
date and time specified in the said notice. (5)
In addition to the accounts and documents referred to in sub-rule (4), a
dealer, if he so wishes, may produce such evidence or documents as he thinks
necessary in support thereof or to substantiate his claim preferred in his
returns or to support any objection he wishes to prefer. 44. Hearing of dealers for assessment and passing of assessment
orders. (1)
The appropriate assessing authority shall, while hearing a dealer on the date
specified in the notice referred to in sub-rule (1) or sub-rule (3) of rule
43 or any date to which hearing is adjourned for making an assessment of tax
payable by him- (a)
consider the objection, if any, preferred by such dealer and examine the
evidence produced in support thereof, and (b)
examine the accounts, documents or any other
evidence referred to in sub-rule (4) or sub-rule (5) of rule 43. (2)
In the course of hearing, the appropriate assessing authority may,— (a)
examine such records, registers or documents which are required to be
maintained by a dealer under the Act or rules made thereunder; (b)
call for such information or evidence from the dealer or any person as deemed
necessary for such assessment; and (c)
make such enquiry as is deemed fit for the purpose
of such assessment. (3)
The appropriate assessing authority shall, after hearing the dealer in the
manner referred to in sub-rule (1) or sub-rule (2), assess to the best of its
judgement the amount of tax payable by dealer in
respect of a year comprising period or periods or part thereof, or in respect
of any return period or periods, as the case may be, and impose penalty under
sub-section (2) or sub-section (5) of section 38, if any, by an order in
writing for reasons to be recorded therein. 45. Exparte assessment order. In
the event of default by a dealer to comply with the requirement of the notice
referred to in sub-rule (1) or sub-rule (3) of rule 43, the appropriate
assessing authority may make, to the best of its judgment, an exparte assessment of tax payable by such dealer in
respect of a year comprising, period or periods or part thereof, or in
respect of any return period or periods as the case may be, and pass an order
of assessment, in writing, after recording reasons therein. 46. Demand notice for tax and penalty due. (1)
After an order of assessment is passed by the appropriate assessing authority
under rule 44 or rule 45 in respect of a dealer, such authority shall serve a
notice in Form 17 on such dealer directing him to make payment of the amount
of tax and penalty, if any, due from such dealer by such date as may be
specified in such notice. (2)
The date to be specified for payment by a dealer in the notice referred to in
sub-rule (1) shall not ordinarily be less than fifteen days after service of
the notice. (3)
The notice referred to in sub-rule (1) shall also specify the date by which a
dealer shall produce a receipted copy of challan of
the State Bank of (4)
If after an order of assessment made under rule 44 or rule 45 *or an order
passed or tax determined under any of the relevant provisions of the Act and
the rules made thereunder in respect of a
dealer, the amount of tax payable and penalty payable, if any, is found to be
less than the amount of tax paid by such dealer according to return in
respect of the same period, the appropriate assessing authority shall serve
Refund Payment Order in Form 18 specifying the amount paid in excess,
allowing the refund under section 53 or a Refund Adjustment Order in Form 19 authorising the dealer to adjust the amount paid in
excess against the amount payable which falls due subsequent to the date of
receipt of the Refund Adjustment Order. Provided that where a
dealer makes an application any time but ordinarily not later than thirty
days from the date of receipt of the Refund Adjustment *inserted by SVAT(Amendment) Rules, 2006 vide notification no.
01/ITCT/2006 dated 28/04/2006. Order on the ground that there shall be no such amount of tax payable by him against which the refundable amount may be adjusted and if the appropriate assessing authority is satisfied to that effect, the said authority may refund the said amount to the dealer accordingly. 47. Manner of selection of registered dealers for Audit. (1) The Commissioner may, under sub-section (2) of section 39, select by the 30th day of July every year, not less than 20 per cent of the registered dealers for audit of input tax credit and tax payable by each of them for any period or year ended on or before the 31st day of March, such selection being made by draw of lots either mechanically or with the use of computers. (2)
Upon selection of registered dealers in the manner laid down in sub-rule (1),
the Commissioner shall send the list of registered dealers so selected to the
appropriate auditing authority for auditing of accounts, input tax credit and
tax due from such registered dealers. (3)
The Commissioner shall direct that the audit shall be performed by an
appropriate auditing authority either, individually or as a team consisting
of such appropriate auditing authorities or the prescribed authorities, as
the Commissioner may decide. *47A. The audit of returns, statements and accounts of dealers. (1) The auditing authority or authorities referred to in sub-rule
(3) of rule 47 of the said rules shall have the authority to visit, at
all reasonable times, the premises of the business or any place where the
books of accounts has been kept or any place from where the business is
operated or office of the owner, Manager, Managing Director or any person who
is the in-charge of the business, including the place or places of branches
or sister concern of business of any of the dealers or persons who has been
selected or whose business has been directed by the Commissioner to be
audited. _________________________________________________ *inserted by SVAT(Amendment) Rules, 2006 vide notification no.
01/ITCT/2006 dated 28/04/2006. *Provided that a prior notice may be issued to the dealer of the
conduct of such audit unless there exist sufficient reasons that provides
grounds for not serving the notice, which the auditing authority or
authorities shall record in writing and obtain the approval thereof of the
Commissioner or an officer authorized by him. (2) The auditing authority or authorities in the course of auditing,
shall have the powers to requisition any of the documents, in whole or in
part, relating to or connected with the business of the dealer whose business
has been caused to be audited and as such the dealer shall produce all such
documents and, or books of accounts so requisitioned before the auditing
authority or authorities. (3) The dealer or a person, whose business is being audited, shall
facilitate the auditors for smooth and unhindered auditing. (4) Immediately after completion of the auditing but not later than
ten days in any case, a detail report of the audit conducted shall be
furnished by the auditing authority or authorities to the Commissioner or an
officer authorized by him in this behalf. (5) When the auditing authority or authorities detects or discovers
any irregularity or violation of the provisions of the Act and the rules made
therender in the course of auditing, that caused or
is likely to cause loss of tax or evasion thereof or avoidance of tax,
penalty or interest, such authority or authorities shall, subject to the
provisions of the Act and the rules, initiate proceedings of levy and
realization of such tax, penalty or interest by itself or by making a
reference of irregularity or violation of the provisions of the Act and the
rules, to the appropriate assessing or prescribed authority for assessments/reassessments
or Tax Recovery Inspector appointed for the purpose of section 45 of the Act
for recovery thereof, as the case may be_____________________________________
*inserted by SVAT(Amendment) Rules, 2006 vide notification no.
01/ITCT/2006 dated 28/04/2006. *(6)The proper records of audit of every
dealer shall be maintained by the auditing authority or authorities for such
period as the Commissioner deems appropriate." 48. Determination of interest for delayed and non-payment of tax
according to returns. Where
it appears to the appropriate assessing authority that a dealer is liable to
pay interest under section 31 in respect of any period for default in making
full payment by the prescribed date of tax according to the return furnished
for that period, such authority shall determine under sub-section (1) of
section 43 the interest payable for such period at any time after furnishing
of such return but not later than the date of assessment under the Act. 49. Determination of interest on delayed or non-payment of tax
before assessment when no return has been furnished. Where
the appropriate assessing authority is satisfied- (a)
that a dealer has failed to furnish a return in respect of any period before
the assessment under the Act for such period; (b)
that, on completion of such assessment, the said dealer has not paid full
amount of tax payable for such period by the prescribed date for furnishing
the return; and
is liable to pay interest under sub-section (2) of section 31 in respect of
such period, such authority shall determine under sub-section (1) of section
43 the interest payable at the time of assessment for such period. 50. Determination of interest for delayed or non-payment of assessed
tax by dealers. Where
it appears to the appropriate assessing authority that a dealer is liable to
pay interest under sub-section (1) of section 32 in respect of any period or
periods of assessment under the Act for default in making full amount of tax
due from such dealer according to notice referred to in section 41 in
respect of such period or periods by the *inserted by SVAT(Amendment) Rules, 2006 vide notification no.
01/ITCT/2006 dated 28/04/2006. date
specified in the notice, such assessing authority shall, immediately after
full payment of such tax or commencement of the proceedings under section 45,
whichever is earlier, determine under sub-section (1) of section 43 the
amount of interest payable by such dealer. 51. Notice of demand for payment of interest. (1)
After determining the amount of interest due from a dealer the appropriate
assessing authority shall serve upon such dealer a notice in Form 20
directing him to pay the amount of interest due from him by the date
specified in such notice and he shall also fix a date on which the dealer
shall produce the receipted challan in proof of
such payment. (2)
The appropriate assessing authority shall fix a date ordinarily not before
fifteen days from the date of issue of the notice referred to in sub-rule (1)
for payment of interest due from a dealer according to such notice: Provided
that, where on account of delay in service of the notice in Form 20, the
dealer is denied of the minimum time of fifteen days for compliance with such
notice, he may on application, be allowed such further time as falls short of
fifteen days from the service of such notice. 52. Manner of payment of interest upon rectification. (1)
Where upon rectification of the amount of interest under sub-section (1) of
section 44, it appears to the appropriate assessing authority that an amount
of such interest in addition to that he has already paid, if any, is due from
him such assessing authority shall serve upon such dealer a notice in Form 20
directing him to pay such amount of interest in the State Bank of Sikkim or the appropriate Government Treasury by the date
specified in such notice. (2)
The appropriate assessing authority shall fix a date ordinarily not before
fifteen days from the date of issue of such notice for payment of interest
referred to in sub-rule (1). (3)
A copy of the receipted challan as proof of payment
of such interest shall be furnished by the dealer to the appropriate
assessing authority by the date specified in such notice. 53. Payment of modified amount of tax, penalty and interest due. Where
any amount of tax, penalty or interest due from a dealer proceedings for the
recovery of which have not been commenced under section 45 modified in
consequence of an order passed on re-assessment, re-determination, appeal,
review or revision, the appropriate assessing authority shall serve upon such
dealer, a notice in Form 20 specifying therein the modified amount of tax,
penalty or interest remaining due from him on the date of such order the date
by which payment of such amount remaining due is required to be made by him
and the date by which a receipted copy of challan
as proof of payment of such amount is to be furnished to the assessing
authority. *53A. Bank or Government Treasury where the payment of tax, penalty,
interest and/or any payment under the Act or the rules made thereunder is to be made. (1) Unless the State Government notifies otherwise, the tax,
penalty, interest and any payment under the Act or the rules made thereunder shall be made by any dealer or person, in the
State Bank of (2)
Any payment referred to in sub-rule (1) of this rule shall be made through
Challan prescribed under the Financial Rules of the State Government for the
time being in force or through Bank Receipt subject to said Financial Rules
or norms specified by the State Government to that effect. Provided that the tax deducted at source or to be deducted at source
or any payment of tax, penalty, interest or any payment under the Act, or the
said rules, made or to be made through or by any body or organization
referred to in Explanation to rule 42 of the said rules, may be paid or
deposited in accordance with the Financial Rules of the State Government for
the time being in force. _________________________________________________ *inserted by SVAT(Amendment) Rules, 2006 vide notification no.
01/ITCT/2006 dated 28/04/2006. *Provided further that any body or organisation
referred to in first proviso of this rule, or any dealer or person liable to
furnish returns under section 30 shall, paying tax through cheque or draft as per its returns, pay such tax on or
before fifteenth day of the month following the month of end of a quarter,
and as such the cheque or the draft, as the case
may be, furnished or received after the aforesaid time period shall not be
accepted. (3) In cases where no time is specified in the Act or the rules made
thereunder for payment of tax, penalty, interest or
any other amount payable by the dealer or any person under said Act or the
rules, payment in such cases shall be made within thirty days from the due
date or service of notice issued to that effect by the appropriate prescribed
or assessing authority, whichever is earlier." 54. Manner of obtaining copy of certain orders by dealers. If
a copy of an order passed under any of the provisions of the Act or the rules
made thereunder is required by a dealer,
transporter, owner or lessee of warehouse, person or owner of goods, a copy
of such order shall on application, be obtained from the appropriate
prescribed authority who passes such order. 55. Preservation of assessment records. (1)
All the papers relevant to the making of any assessment including
determination of interest, imposition of penalty and refund of tax, interest or
penalty in respect of any particular dealer, owner or lessee of warehouse
person, or owner of goods, as the case may be, shall be kept together and
shall form assessment case records. (2)
Assessment case records referred to in sub-rule (1) shall be preserved by the
appropriate authority for twenty years or till such periods as such case
records may be required for final disposal of any appeal, review, revision or
reference under the Act or for final disposal of any
Court._________________ *inserted by SVAT(Amendment) Rules, 2006 vide notification no.
01/ITCT/2006 dated 28/04/2006. 56. Manner of refund in consequence of order on appeal, revision,
etc. Where
any amount payable by a dealer in respect of any period on account of tax
assessed, penalty imposed or interest determined is reduced in consequence of
any order passed on re-assessment, re-determination, appeal, revision or
review, as the case may be, and if it is found that the amount payable is
less than the amount paid for such period, including the amount recovered
under section 50, if any, the appropriate assessing authority shall, within
three months from the date of such order, serve upon such dealer Refund
Payment Order in Form 18 specifying therein the amount paid in excess and
send along with a Refund Adjustment Order in Form 19 or the said authority
shall refund the excess amount to the dealer in accordance with the proviso
to sub-rule (4) of rule 46. Provided
that where any amount of tax assessed, penalty imposed or interest determined
in respect of a dealer for any period remains unpaid till the date of the
order in consequence of which such refund arises, the appropriate assessing
authority shall adjust the amount of excess payment towards the arrear of
tax, penalty or interest and thereupon, if any amount still remains
refundable, he shall specify such adjustment in the said Refund Payment Order
in Form 18 and send to the dealer along with a Refund Adjustment Order in
Form 19 or the said authority shall refund the excess amount to the dealer in
accordance with the proviso to sub-rule (4) of rule 46: Provided
further that, if the amount of tax, penalty or interest due from a dealer in
respect of any period, proceedings for the recovery of which as an arrear of
land revenue have been commenced under section 45, is subsequently reduced in
consequence of any order referred to above, the appropriate assessing
authority shall send a copy of the aforesaid notice to the Tax Recovery
Inspector to whom the Certificate has been sent. 57. Refund arising out of rectification order determining interest. Where,
upon rectification of the amount of interest under sub-section (1) of section
44, it appears to the appropriate assessing authority that the amount of
interest is in excess of the amount that a dealer has already paid, such
assessing authority shall serve a Refund Payment Order in Form 18 upon such
dealer specifying the amount of interest refundable to him and send along
with a Refund Adjustment Order in Form 19 for such refundable amount or the
said authority shall refund such amount in accordance with the proviso to
sub-rule (4) of rule 46: Provided
that in case there are arrears of tax, penalty or interest due from such
dealer, in respect of any other period, the appropriate assessing authority
shall adjust the amount of interest refundable to such dealer with such
arrears and for the balance amount of interest refundable, if any, he shall
send along with the Refund Payment Order in Form 18 or a Refund Adjustment
Order in Form 19 or the said authority shall refund the excess amount to the
dealer in accordance with the proviso to sub-rule (4) of rule 46. Provided
further that, if the proceedings for recovery of the amount
of interest has already been commenced before rectification, the said
authority shall send a copy of the notice to the concerned Tax Recovery
Inspector. 58. Manner of payment of interest by the Commissioner for delayed
payment of refund. (1)
Where the Commissioner is satisfied that the interest is required to be paid
under section 34, he shall, by an order in writing, direct the appropriate
assessing authority to pay to the dealer, who is entitled to payment of such
interest, the amount of interest by issuing a Refund Adjustment Order in Form
19 or by making payment of the said amount in accordance with the second
proviso to sub-rule (4) of rule 46. (2)
The Assessment records along with the appellate or revision order referred to
in section 34 which gives rise to the payment of interest by the Commissioner
under that section, shall be placed before the Commissioner, for
determination of the amount of interest payable to the dealer. 59. Garnishee notice for demand of payment from debtors, banks, etc.
on account of dealers. When
any person is required to deposit money under sub-section (1) of section 50
on account of a dealer, the appropriate assessing authority, in relation to
such dealer, shall serve upon such person a notice in Form 21, directing him
to deposit such money in the manner referred to in that section. 60. Tax Recovery Officer to recover outstanding dues. (1)
Where any amount of tax, penalty or interest in respect of any period is due
and recoverable from a dealer or such amount is due and recoverable from a
transporter, owner or lessee of warehouse, person or owner of goods, under
section 45 and realisation of such amount has not
been stayed under sub-section (4) of section 73, or rule 98, the appropriate
assessing authority shall- (a)
apply to the Certificate Officer, within whose jurisdiction the place of
business of a dealer or the head office of his business is situated in
accordance with the provisions of the Public Demands Recovery Act, 1913 and
the rules made thereunder for the recovery of such
amount as an arrear of land revenue, or (b)
send a certificate under sub-section (2) of section
45 to the Tax Recovery Inspector as specified in section 46, for the recovery
of such amount in accordance with the provisions of sub-section (3) of
section 45, section 47, section 48 and section 49. (2)
The appropriate assessing authority empowered to send or to forward a
certificate under clause (b) of sub-rule (1), shall prepare the certificate,
in triplicate, and forward two copies of such certificate to the appropriate
Tax Recovery Inspector and retain the third copy for office record. (3)
The procedures laid down and the instructions issued, in connection with
recovery of taxes or arrears under the Sikkim
(Collection of Taxes and Prevention of Evasion of Payment of Taxes) Act, 1987
(Act No. 7 of 1987) and the rules made thereunder
in the matter of maintenance of registers and other functions of the
appropriate assessing authority referred to in sub-rule (2) of this rule and
the Tax Recovery Inspector in relation to recovery of tax, penalty or
interest, shall apply mutatis mutandis in the case of Tax Recovery Inspector
appointed under the Act for recovery of tax, penalty or interest in
accordance with the provisions of section 45. 61. Recovery of modified amount of tax, interest or penalty. (1)
If any amount of tax, penalty or interest, proceedings for the recovery of
which have been commenced, is subsequently modified in consequence of any
order passed on re-assessment, rectification, appeal, revision or review, as
the case may be, the appropriate assessing authority shall, within two months
from the date of such order, serve upon the certificate debtor a notice
specifying therein, inter alia, the net amount of
tax, penalty or interest due from him upon modification and send a copy
thereof to the Certificate Officer or the Tax Recovery Inspector, as the case
may be. (2)
On receipt of the notice referred to in sub-rule (1), the Certificate Officer
or the Tax Recovery Inspector, as the case may be, shall take steps for
recovery of the amount of tax, penalty or interest as modified as if the
proceedings were commenced for recovery of such modified amount: Provided
that, if the notice relates to the second proviso to rule 56, the appropriate
assessing authority shall send a letter withdrawing the certificate sent
under rule 60 and thereupon the Certificate Officer or the Tax Recovery
Inspector, as the case may be, shall drop the recovery proceedings. CHAPTER VII MAINTENANCE OF
ACCOUNTS AND REGISTERS, INSPECTION, PRODUCTION AND SEIZURE OF ACCOUNTS AND
PENALTY FOR FAILURE TO ISSUE INVOICE/CASH MEMO OR BILL 62. Maintenance of sales registers, bills, vouchers, documents, etc. (1)
Every dealer who is registered under the Act or to whom a notice has been
served to furnish return under section 30 shall in addition to the accounts
referred to in sub-section (1) of section 54, maintain a true and up-to-date
account of sales of goods made by him in sales register in Form 22 and shall
also maintain a true and up-to-date accounts of all purchases of goods made
by him in purchase register in Form 23. (2)
For the purpose of furnishing return and making payment of tax as required by
section 30 and rules made thereunder, the sales
register and purchase register referred to in sub-rule (1) shall be totalled by the dealers at the end of each month and
shall be in agreement with the total amount of sales of goods and purchases
of goods according to his accounts and the books of accounts that he
maintains in terms of sub-section (1) of section 54. (3)
Every dealer shall maintain such invoice received and documents, vouchers,
bills or cash memos. Counterfoils of invoice issued by him as may be required
in support of any entry in his accounts, books of accounts or sales register
and purchase register that he is required to maintain by or under sub-section
(1) of section 54. (4)
Every dealer who is registered under the Act or to whom a notice has been
served to furnish return under section 30 shall also maintain a VAT register
in Form 24 for the purpose of sub-section (1) of section 21. *(4A) Every dealer who is registered under the Act or to whom a
notice has been served to furnish return or who is required to furnish such
returns under section 30, shall maintain a register in Form 24A for
the purpose of sub-section (3) of section 21 and in Form 24B for the
purpose of section 22. (4B) (a) The input tax credit referred to in clause (a) and clause (b) of
section 22 shall be allowed only on purchases of such goods or capital goods
liable for tax as per Schedules II to V of the Act, as the case may be, and
input tax against which has been paid on the purchases made within the State. *(b)The input tax on account of capital goods referred to in clause
(b) of section 22 shall be allowed only to the extent of such tax paid on
purchases made thereof. (4C) No dealer shall be allowed input tax credit referred to in
sub-rules (1) and (3) of section 21, or section 22, or refund of excess
thereof, if any, unless the claim of such input tax or refund, as the case
may be, is substantiated to the satisfaction of the appropriate prescribed
authority, by complete books of accounts, invoices, registers and other
documents specified in the Act and this rule and by such other relevant
evidence as the aforesaid authority may demand to be produced before him, by
notice on the date, time which shall not be less than fifteen days from the
date of service of such notice unless extended on application made by the
dealer and for which reasons shall be recorded in writing by such authority,
and at such place as specified in such notice. Provided that if a
claim of input tax credit or refund, as the case may be, is disallowed, the
reasons thereof shall be recorded in writing in the order passed by the
aforesaid authority to that effect." (5) Every registered dealer who sells goods through another registered dealer, being his agent and who has claimed input tax credit on his purchases in the returns or returns submitted by him and who has shown reverse credit in the subsequent return or returns, as the case may be, (on account of sales of goods through his agent or agents) shall issue a certificate to such agents, inter alia, for the amount of input tax credit which the agent is eligible to claim in accordance with the provisions of clause (a) of sub-section (1) of section 21. *(6) Any
breach of the provisions laid down in sub-rules (1), (2), (3),(4),(4A) and(5) of this rule shall be punishable a fine
not exceeding one and half times of the amount of tax determined by the
appropriate assessing authority, and if the offence is continuing one, with a
daily fine not exceeding rupees five during the continuance of such offence. ____________________________________________________ *inserted by SVAT(Amendment) Rules, 2006 vide notification no.
01/ITCT/2006 dated 28/04/2006. *Provided that an
opportunity of being heard shall be provided to the defaulting dealer or
person before imposition of fine under this rule." *62A. Audit of
accounts of dealers. (1)
The report of audited accounts of the dealers referred to in sub-section
(1) of section 58, showing the balance sheet, profit and loss account,
purchases and sales accounts and any of the required or necessary details of
the accounts shall be in such form as may be acceptable to the Commissioner
or as directed by the Commissioner from time to time and should be
accompanied by a forwarding note in Form 24C. (2)
The report of audit shall, inter alia, contain
the following particulars; (a)
intra-state purchases and sales of different tax rate category of goods
made during the year accounts of which has been audited and value thereof, (b)
inter-state purchases and sales of different tax rate category of goods
made during the year accounts of which has been audited and value thereof, (c)
intra-state purchases and value thereof of inputs and capital goods of
different tax rate categories used in manufacturing of goods, during the year
accounts of which has been audited, (d)
inter-state purchases and value thereof of inputs and capital goods of
different tax rate categories used in manufacturing of goods, during the year
accounts of which has been audited, (e)
production of goods or inputs of different tax rate categories and
intra-state and inter-state sales and value thereof, (f)
sales made of different tax rate category of goods in the course of export
out of the country, (g)
stock or branch transfer of different tax rate category of goods within
and outside the State, (h)
input tax and output tax of different tax rate category of goods, (i) purchases of goods or inputs and value thereof of
different tax rate category, made from unregistered dealers and payment of
purchase tax, (j)
tax, penalty or interest liabilities and
credit thereof to the Government Treasury.________________________________ *inserted by SVAT(Amendment) Rules, 2006 vide notification no.
01/ITCT/2006 dated 28/04/2006. *(k) tax,
penalty or interest liabilities due to be credited to the Government
Treasury, (l)
input tax credit claimed, adjusted or due, if any, (m)
details of goods and value thereof of returned or damaged or destroyed, if
any, (n)
opening and closing stock and value thereof, (o)
any other particulars as the appropriate
prescribed authority may, by an order, direct to be furnished. (3)
References of documents supporting the particulars furnished in the audit
report shall be made in the said report." 63. Period of preservation of accounts, books of accounts, registers
by dealers. (1) The accounts, books of accounts, registers, documents of the dealer including computerised or electronic accounts maintained on any computer or electronic media, documents, invoices, cash memos in respect of purchases, sales, delivery of goods by a dealer or vouchers in respect of any year or part thereof shall be preserved by him- (a) for a period of not less than seven years after the expiry of the year of which they relate, or (b) till such period as those may be required for final disposal of any appeal, review, revision or reference under the Act or for final disposal of any case pending before any Court in respect of such year or part thereof, whichever is later. (2) Any breach
of the provisions referred to in sub-rule (1) shall be punishable with a fine
not exceeding five hundred rupees, and if the offence is a continuing one,
with a daily fine not exceeding twenty-five rupees during the continuance of
such offence._______________________________________ *inserted by SVAT(Amendment) Rules, 2006 vide notification no.
01/ITCT/2006 dated 28/04/2006. 64. Particulars to be stated in retail invoice/ cash memo or bill in
respect of sale price exceeding two hundred rupees. (1)
Every dealer in respect of sale price exceeding *one hundred rupees,
shall issue a retail invoice or cash memo or bill referred to in sub-sections
(5) and (6) of section 55, in Form 7A in duplicate; (2)
First copy of the invoice or cash memo or a bill shall be marked as
"ORIGINAL" and subsequent copy as "DUPLICATE"; (3)
Both the copy of invoice or cash memo or bill marked ‘ORIGINAL’ and
"DUPLICATE", including computer generated tax invoice/ cash memo or
bill must be signed by dealer or his authorised
person. 65. Search and seizure to be in accordance with provisions of Code
of Criminal Procedure. (1) All seizures or searches under section 63, section 64, section 66 or section 68 shall be made as far as possible in accordance with the provisions of the Code of Criminal Procedure, 1973 (Act No. 2 of 1974). (2)
Any officer, while exercising power under section 63, section 64, section 66
or section 68 may take assistance of any police officer of the State. (3)
Any accounts, registers or documents seized under section 63 shall not be
retained beyond the period referred to in the proviso to the section or after
one year from the commencement of the Act, whichever is later. (4)
If any person or dealer from whom any accounts, register or documents have
been seized under section 63 does not take delivery of such accounts,
registers or documents within the time specified in the notice issued in this
behalf, the authority who is in custody of such accounts, registers or
documents may destroy them without further notice to such dealer or person._______________________________________ *Subsituted
by SVAT(Amendment) Rules, 2006 vide notification no.
01/ITCT/2006 dated 28/04/2006. 66. Authority to search road vehicle and seize goods at places other
than notified place. No
search of any road vehicle or warehouse, or seizure of goods transported by
such vehicle or stored in such warehouse at any place other than a place
notified under sub-section (1) of section 65, shall be made by any person not
below the rank of an Assistant Commissioner. 67. Sealing any house, room, warehouse, almirah,
etc. Where
a dealer or person, transporter, lessee or owner of warehouse fails to open
any house, room, almirah, safe, box or receptacle
for inspection under sub-section (2) of section 64, such house, room, almirah, safe, box or receptacle shall be sealed under
sub-section (2) of section 68 by the Commissioner or any authorized
prescribed authority, as the case may be, and such house, room, almirah, safe, box or receptacle shall remain so sealed
until the accounts, registers or documents, or stock of goods are made
available for inspection. CHAPTER VIII PROCEDURES FOR
TRANSPORT OF CONSIGNMENT OF GOODS, INTERCEPTION, SEARCH, SEIZURE AND MEASURES
TO PREVENT EVASION
OF TAX AND PENALTIES 68. Restrictions on transport of any consignment of goods despatched from any place outside (1)
No person or dealer shall, except in the manner prescribed in the rules laid
down in this Chapter, transport any consignment of goods, except the
consignment of goods of the nature or value specified in sub-rule (2), despatched from any place outside Explanation
– For the purpose of sub-rule (1) goods shall means goods other than those
goods sales of which are tax-free specified in Schedule I. (2)
The provision of rule 69 shall not apply to a consignment of goods- (a)
where such consignment of goods being transported by any person as his
personal effects; (b)
where it appears from railway receipt, bill of lading, consignment note, cash
memo/ bill, invoice, manifest, delivery challan or
any other document of like nature, that such goods are specified in Schedule
I or such goods are exposed cinematographic films; (c)
where such consignment of goods is of- (i) printed materials including diary, calendar, brochure,
leaflet or pamphlet; (ii)
gold or precious stones including pearls (real, artificial or cultured); (iii)
pure silk cloth, or (iv)
radioisotope or radiopharmaceutical item. *(3) Notwithstanding the provisions laid down in sub-rules (1) and
(2) of this rule, any of the authority of the check posts or prescribed
authority authorized in this behalf, shall have the authority to check any
vehicle or any means of transport carrying the consignment of goods
irrespective of the fact whether such consignment of goods requires way bill
in Form 25 or not as per the provisions specified in this Chapter." 69. Procedure for transporting consignments of goods across a checkpost. (1)
Where any consignment of goods, other than a consignment of goods of the
nature specified in sub-rule (2) of rule 68, is imported or brought into Sikkim by a person, or dealer on his own account from any
place outside Sikkim and such consignment of goods
transported across a checkpost in Sikkim by or on behalf of such person, or dealer, or the
driver or person in-charge of the vehicle, as the case may be, shall present
before the Assistant Commissioner or Commercial Tax *inserted by SVAT(Amendment) Rules, 2006 vide notification no.
01/ITCT/2006 dated 28/04/2006. Inspector of such checkpost, at the time of entry of such vehicle into the area of such checkpost, a way bill in Form 25 in triplicate obtainable in the manner laid down in rule 75 or rule 76, as the case may be, duly filled in and signed by the person, or dealer on whose account such consignment of goods is imported or brought into Sikkim for endorsement of such way bill by such Assistant Commissioner or Commercial Tax Inspector incharge of the checkpost, as the case may be. *Provided that a
single or separate way bill shall be used for each consignment of goods transported
in a vehicle or lorry at one point of time irrespective of the quantity or
value of consignments carried in such vehicle or lorry or any means of
transportation."; (2)
If the driver or person in-charge of the vehicle transporting any consignment
of goods fails to present the way bill in Form 25 at the time of entry of
such vehicle into the area of a checkpost as
required by sub-rule (1) such driver or person incharge
may request the Assistant Commissioner or Commercial Tax Inspector of such checkpost, in writing, stating therein the reason for not
being in possession of such way bill and to allow him time for presentation
of the way bill. (3)
On the request of the driver or person in-charge of the vehicle made under
sub-rule (2), the Assistant Commissioner/Inspector of the checkpost
shall allow time not exceeding forty-eight hours from the entry of such
vehicle, to enable him to present the way bill in Form 25 before the expiry
of the time allowed by him, and the vehicle with such consignment of goods
shall subject to the provisions of sub-rule (6), remain detained till the
time of presentation of such way bill or the expiry of the time allowed,
whichever is earlier. (4)
After the way bill is presented under sub-rule (1) or sub-rule (3), the
Assistant Commissioner/Inspector of a checkpost
shall, subject to the provisions of rule 83, endorse the way bill and record
in the Entry Register the particulars of the consignment of goods and of the
way bill related thereto and allow the vehicle to move._______________________________________ *inserted by SVAT(Amendment) Rules, 2006 vide notification no.
01/ITCT/2006 dated 28/04/2006. (5)
The duplicate and triplicate copy of the way bill duly endorsed under
sub-rule (4) shall be returned to the driver or person in-charge of the
vehicle who presented such way bill under sub-rule (1) or sub-rule (3), and
such driver or person incharge of the vehicle shall
carry with him the duly endorsed copies of the way bill on the way to its
destination and the original copy shall be retained by the officer referred
to in sub-rule (4). (6)
If any person or dealer or the driver or person incharge
of the road vehicle fails to present any way bill under sub-rule (1) or
sub-rule (3) the Assistant Commissioner/Inspector of such checkpost
shall seize the consignment of goods under section 68. (7)
The driver or the person incharge of a road vehicle
shall while transporting any consignment of goods on its way to destination
stop his vehicle on being asked by such Deputy Commissioner or Assistant
Commissioner or officer, as the Commissioner may authorise
in this behalf, at any place and present before him, on demand, a copy of the
way bill duly endorsed under sub-rule (4) along with consignment note, bill,
invoice, road challan or any other document of like
nature. (8)
If the driver or person incharge of the vehicle
fails to present the duly endorsed way bill along with any of the other
documents referred to in sub-rule (7), the Deputy Commissioner or Assistant
Commissioner or the authorized officer, who demanded such way bill under that
sub-rule, shall, after recording the reason, seize the consignment of goods
under section 68. (9)
The Assistant Commissioner or Commercial Tax Inspector of a checkpost empowered to endorse the way bill or such
Deputy Commisioner or Assistant Commissioner or
officer, as the Commissioner may authorise, may
verify correctness of the description, quantity, weight or value of the goods
of a consignment as mentioned in the accompanying way bill with the
description, quantity, weight or value which are actually found in such
consignment. (10) Where upon verification made under sub-rule (9), on opening the container or packages, if necessary, the description, quantity, weight or value of the goods in any consignment is found by the authority referred to in sub-rule (9) to be at variance with the description, quantity, weight or value of the goods disclosed in the way bill,*or the documents referred to in sub-rule (7), or descriptions is falsely given therein in the name of any person who is not the actual consignor or consignee, as the case may be, whether such person is in existence or not, in which case inquiry may be made if deemed necessary", such authority shall prepare a report in the presence of the driver or person in-charge of the vehicle * or the owner or in-charge of the goods and get such report countersigned by him, or where the driver or person in-charge of the vehicle, *or the owner or in-charge of the goods is not available for any reason, such authority shall prepare a report in the presence of one witness after explaining to him the content of the report and get the report countersigned by him and shall, thereafter, seize the consignment of goods under section 68. (11)(i) Any transporter, carrier or transporting agent referred to in sub- section (1) of section 60 shall maintain in a register *"in Form 25A" accounts of goods transported by him into, outside and within the State of Sikkim separately. (ii)The register of accounts shall contain the following par ticulars- (a) name, address and transport licence of the transport company or carrier or transporting agent, (b) name of owner of the transport company or transporting agency, (c) date of transportation of goods, (d) name, address and Taxpayer Identification Number (TIN) of the consignee (purchasing) dealer,
*inserted by SVAT(Amendment) Rules, 2006 vide notification no.
01/ITCT/2006 dated 28/04/2006. (e)
name, address and Tax payer Identification Number (TIN) of the consignor
(selling) dealer, (f)
description of goods including quantity and value of the goods transported, (g)
invoice or bill or cash memo, way bill and transport manifest number, and (h)
vehicle or lorry number. 70. Security from persons other than registered dealers for issuing
way bills. (1)
Where a person, or a dealer who is not registered under the Act, requires way
bill in Form 25 obtainable in the manner laid down in rule 76 from the
authority referred to therein for the purpose of transporting consignment of
goods under rule 69, purchased outside the State for personal consumption or
not for the purpose of resale, and makes an application to the authority
referred to in rule 76 for obtaining such way bill in Form 25, such authority
may for reasons to be recorded in writing, require such person, or dealer,
who is not registered under the Act, to furnish a cash security of such
amount, or a bank guarantee of equivalent amount as may be justified to
safeguard the interest of revenue. Provided
that, the said authority may dispense with the requirement of furnishing
security if the application in sub-rule (1) relates to import of goods by any
Government Department, local body, recognised
research organisation or any registered charitable
or cultural organisation or any public sector
undertaking other than a registered dealer and if the applicant declares that
such goods are not intended to be disposed of by way of sale in Sikkim and furnishes a letter of undertaking to the
effect that in the event of any sale of such goods, tax payable on such sale
shall be deposited and evidence of payment of such tax shall be produced
before the authority within fifteen days from the date of such sale. (2)
After security is furnished by a person, or dealer, the authority referred to
in rule 76, shall issue way bill in Form 25 in such number and for such
period of time, as may commensurate with the amount of security so furnished
by such person or dealer: Provided
that, the authority issuing the way bill in Form 25 shall, if deemed
necessary, make necessary remarks thereon to distinguish it from such Forms
issued to registered dealers. (3)
Where any person or dealer who has furnished security under sub-rule (1),
produces sufficient evidence, within six months of transporting a consignment
of goods into Sikkim as per provisions laid down in
this rule to prove that such consignment of goods has not been sold in Sikkim, the authority referred to in rule 76 shall,
within thirty days from the date on which such evidence is produced, refund
the amount of cash security or release the bank guarantee so furnished. 71. Special procedure for transport of goods by certain organisations. (1)
Notwithstanding anything contained elsewhere in these rules, any person or organisation which is not registered under the Act, may
in such circumstances and in such manner as specified in this rule, transport
across the checkpost any consignment of goods despatched from any place outside Sikkim. (2)
Where such person or organisation on whose behalf
consignment of goods referred to in sub-rule (1) is transported, makes a
declaration to the effect that the said goods are intended to be despatched outside Sikkim
otherwise than by way of sale, it shall furnish such declaration duly signed
by any competent person of the said organization/person in triplicate in Form
26 along with the bill of lading or documents of like nature to the Assistant
Commissioner or the Commercial Tax Inspector posted at the checkpost through which the goods enter into Sikkim for his countersignature. 72. Restrictions on and conditions for transport of consignment of
goods from a place in (1)
Every person or dealer, shall while transporting by a road vehicle any
consignment of goods other than specified in Schedule I, despatched
from any place in Sikkim to any other place in Sikkim either on his own account or on account of a
consignee, make a declaration in Form 27 in triplicate and hand it over to
the driver or person in charge of the road vehicle to present it before the
Assistant Commissioner or the Commercial Tax Inspector authorised
to intercept, detain and search under section 66 on the way of its
destination. (2)
The driver or person in-charge of a road vehicle shall, while transporting
such consignment of goods in Sikkim and till he
reaches the destination carry with him the declaration referred to in
sub-rule (1) and a consignment note, delivery note, inlvoice,
road challan or any other document of like nature. (3)
Wherever a road vehicle transporting any consignment of goods is intercepted
under clause (a) of section 66 at any place, on its way to destination by any
authority referred to in sub-rule (1), the driver or person in-charge of the
road vehicle transporting the consignment of goods shall, on demand, present
before such authority the copies declaration and any of the documents
referred to in sub-rule (2) for verification whether such consignment of
goods is being transported in contravention of the provisions of section 65: Provided
that if before the authority to whom the declaration or document is required
to be presented, any other document in lieu thereof is presented for
verification and such authority is satisfied on perusal of such document that
the consignment of goods has been despatched from
any place in Sikkim, such authority may dispense
with the requirement of declaration referred to in sub-rule (1) and
countersign with its official seal the document presented to it and
thereafter such authority shall allow the vehicle to move. (4)
Where a declaration is presented in respect of any consignment of goods under
sub-rule (3) alongwith any of the documents
referred to in sub-rule (2) before the authority referred to in sub-rule (1),
such authority shall verify the particulars of such consignment of goods,
countersign the duplicate and triplicate copy of such declaration with its
official seal and return it to the driver or person in-charge of the vehicle
and allow the vehicle to move and retain the original copy of such
declaration for office records. (5)
If the driver or person in-charge of a road vehicle fails to present a
declaration referred to in sub-rule (1), the authority referred to in that
sub-rule shall seize the consignment of goods under section 68. (6)
Every person or dealer referred to in sub-rule (1) shall maintain a true and
up-to-date account of declaration issued by him and produce, on demand, such
account before the appropriate assessing authority or such person as the
Commissioner may authorise. 73. Restrictions on, and conditions for transport of any consignment
of goods by any person, or dealer from any place in (1)
Any person or dealer shall, while transporting any consignment of goods despatched from any place in Sikkim
to any place outside Sikkim either on his own
account or on account of any consignee, make over a way bill in Form 25 in
triplicate, obtainable by him in the manner laid down in rule 75 or rule 76,
and a copy of challan in duplicate in respect of
such consignment of goods to the transporter referred to in section 71 for
carrying such consignment of goods in his goods vehicle: Provided
that the provisions of this sub-rule shall not apply to any consignment of
goods,- a)
Where such goods are goods specified in Schedule I to the Act sales of which
are tax-free under section 12; b)
Where such consignment of goods being transported by any person or on his
account, as his personal effect, or c)
Where it appears from the document of title to the goods and bills or cash
memorandum, forwarding note, delivery challan or
document of like nature, as referred to in sub-section (1) of section 71 that
such goods are bound for such country as specified by notification or such
goods are of exposed cinematographic films; (2)
For the purpose of sub-section (1) of section 71, the transporter, who
carries goods on behalf of consignor, shall, in addition to the document of
title to the goods, carry with him in respect of such goods the documents
referred to in that sub-section alongwith a way
bill made over to him under sub-rule (1) and shall produce before the
Assistant Commissioner or the Commercial Tax Inspector posted at the checkpost. (3)
The authority referred to in sub-rule (2) shall verify the way bill in Form
25 and the copy of the challan with reference to
any other document produced by the transporter with the consignment of goods
transported by him, countersign with its seal and date the duplicate copy of
the way bill and record the particulars of such consignment of goods in the
register maintained for the purpose and return the countersigned duplicate
copy of the way bill or challan and documents, if
any, and retain the original copy of the way bill. (4)
For the purpose of verifying whether any consignment of goods is being
transported in contravention of the provisions of section 65 and section 71,
such Deputy Commissioner or Assistant Commissioner or officer as may be authorised by the Commissioner to exercise such power at
a place other than a checkpost, may demand at such
place near the border of Sikkim where the
transporter reaches before exit from Sikkim,
production of way bill in Form 25 and challan and
other documents and shall, thereafter act in accordance with the provisions
of sub-rule (3). (5)
Where it appears to the Deputy Commissioner or the Assistant Commissioner or
the authorized officer, who is competent to exercise his power under section
65 at any other place other than a checkpost, that
due to failure of any person or dealer no way bill in Form 25 can be produced
by the transporter before him, he shall, for reasons to be recorded in
writing, seize such consignment of goods under section 68 at the checkpost or at any place referred to in sub-section (2)
of section 71. 74. Manner of giving custody of seized goods to a transporter under
sub-section (4) of section 68. (1)
Where a consignment of goods has been seized under sub-section (1) of section
68 and the transporter of such seized goods has exercised option in writing
under sub-section (4) of that section before Deputy Commissioner or an
Assistant Commissioner or an authorized officer competent to impose penalty
under section 69 in respect of such seized goods, such authority may give
custody of such seized goods to the transporter and allow such transporter to
transport such seized goods upto the godown or warehouse of such transporter in Sikkim as declared by him. (2)
The option in writing referred to in sub-rule (1) shall be exercised by the
transporter in duplicate in Form 28. (3)
Where the authority before whom an option is exercised by a transporter under
sub-rule (1) is satisfied that the transporter has correctly given all the
requisite information and the form of option is in order, such authority may
give custody of the seized goods to such transporter by passing an order in
writing in Form 29. (4)
A copy of the order passed under sub-rule (3) shall be made over to the
transporter to whom custody of the seized goods is given. 75. Authority from whom and the manner in which way bills to be
obtained by registered dealers. (1)
A registered dealer may for obtaining way bill in Form 25 referred to in rule
69 or declaration form 27 referred to in rule 72, for the purpose of
transporting any consignment of goods on his own account from any of the
places referred to the said rules, make an application to the appropriate
assessing authority. (2)
While making an application to the appropriate assessing authority under
sub-rule (1), every registered dealer shall state therein- (a)
the total number of way bill forms received by him on the last two occasions, (b)
the total number of way bill forms, if any, held in stock on the date of
application, and (c)
the total number of way bill forms required to be
issued to him. (3)
Every registered dealer shall furnish along with his application for way bill
on each occasion, a separate statement of account of receipts and use by him
of way bill forms and stock of such way bill forms, if any, held by him at
the time of making such application and produce before the appropriate
assessing authority the counterfoils of the way bills used by him during the
last three months. (4)
If it appears to the appropriate assessing authority that the particulars
furnished in the application and the statement of account referred to in
sub-rule (3) are correct and complete and the requirement of the way bill
forms for the next three months following the date of the application is
reasonable, it shall issue the required number of way bill forms as applied
for to the registered dealer: Provided
that where the appropriate assessing authority is not satisfied with the
correctness of the particulars furnished in the application or statement of account
on the last two occasions, it may, pending enquiry or investigation into the
matter by it or by such other authority as the Commissioner may authorise or direct, issue such number of way bill forms
to the registered dealer as may, in its opinion, satisfy the immediate
requirement of such dealer. (5)
Notwithstanding anything contained elsewhere in this rule, where a person,
while transporting any consignment of goods, is not in possession of a way
bill required under rule 69 or 73, as the case may be, but claims before the
authority referred to in the said rules that he is a registered dealer, such
authority may allow such person to obtain a way bill in Form 25, as the case
may be , from the Assistant Commissioner or the Commercial Tax Inspector at the
checkpost or at the concerned office on furnishing
a reasonable amount of security in cash or by way of bank guarantee for
proper use of the way bill to be obtained by him. 76. Authority from whom and the manner in which way bills to be
obtained by persons or dealers other than registered dealers. (1) Any person or dealer, other than a registered dealer may, for obtaining way bill forms or declaration Form 26, for the purpose of transporting any consignment of goods on his own account from any place, make an application - (a)
if he is not a dealer and his residence is at any place outside Gangtok, to the Assistant Commissioner or Deputy
Commissioner within whose jurisdiction his residence is situated, and (b)
if he is a dealer not registered under the Act and his place of business is
at any place outside Gangtok, to the appropriate
assessing authority within whose jurisdiction his place of business is
situated, or (c)
if he is a person, or a dealer who is not registered under the Act and his
residence or place of business, as the case may be, is in Gangtok
to such Assistant Commissioner or Deputy Commissioner as the Commissioner may
authorise. (2)
Every person making an application under sub-rule (1) shall- (a)
furnish a declaration that he is not a dealer, or (b)
furnish a declaration that he is not liable to pay tax under the Act or he is
liable to pay tax but he has not yet been registered under the Act, (c)
state his bonafide requirement of way bill forms
for the consignment of goods intended to be transported by him on his account
under rule 70 or rule 71, and (d)
state the total number of the way bill forms, if any, obtained by him on the
last two occasions, the total number of way bill forms used by him upto the date of application and the stock of way bill
forms, if any, held by him on the date of application. (3)
Where an applicant has received such way bill forms on any previous occasion,
he shall furnish along with his application a separate statement of account
of receipt and use of the way bills by him and stock of unused way bill
forms, if any, held by him on the date of making application and the
aggregate value of the consignment of goods transported by him or on his
account on the strength of the way bill forms used by him upto
the said date, and where he applies to an authority under sub-rule (1) for
way bill forms, he shall also produce before such authority bill of lading,
consignment note or any document of like nature, as the case may be, in
respect of such consignment. (4)
Where it appears to the authority referred to in sub-rule (1) that the
applicant for way bill forms under this rule has failed to comply with an
order directing him to pay a security under rule 70, such authority may
withhold issue of such way bills till such security is furnished. (5)
Where the authority referred to in sub-rule (1) does not proceed under
sub-rule (4), it shall, after making such enquiry as it may deem fit, issue
to such person or dealer way bill forms in such number as it may satisfy his
immediate requirement. 77. Maintenance of register of way bills. Every person or dealer who obtains way bill forms from the authorities mentioned in rules 75 or 76 shall maintain separate registers *" in Form 27A" showing a true and upto date account of way bill forms and declaration forms obtained, consignment transported on the strength of the way bills and unused way bill forms and produce them to the concerned authorities while making application for issue of additional way bill forms or declaration forms, as the case may be. 78. Assistant Commissioner or Inspector posted in checkposts to forward copy of way bills retained to
appropriate assessing authority. _____________________________________________________ *inserted by SVAT(Amendment) Rules, 2006 vide notification no.
01/ITCT/2006 dated 28/04/2006. The
original copy of each duly endorsed way bill retained by the Assistant
Commissioner or the Commercial Tax Inspector in the checkpost
under rule 69, rule 70 or rule 73 for such period shall be forwarded to such
authority as the Commissioner may direct. 79. Report of unused blank way bill forms if lost, destroyed or
stolen from the custody of a person or dealer. If
any unused blank way bill form, referred to in rule 69, rule 70 and rule 73
obtained by any person or dealer who is not registered under the Act or
obtained by a registered dealer under any of these rules is lost, destroyed
or stolen from his custody, such person, dealer who is not registered under
the Act or registered dealer shall, within seven days from the date of such
loss, destruction or theft, report the fact of such loss, destruction or
theft of such way bill forms to the appropriate assessing authority or the
authority from whom such way bill form was obtained. 80. Surrender of unused blank way bill forms by registered dealers
for cancellation. (1)
When a registered dealer applies to the appropriate assessing authority for
cancellation of his certificate of registration, such registered dealer shall
surrender all unused blank way bill forms held in his stock to such
authority. (2)
The appropriate assessing authority shall cancel all unused blank way bill
forms surrendered to it by the registered dealer at the time of cancellation
of his registration under sub-section (8) of section 26. (3)
Where the appropriate assessing authority cancels, on its own motion,
registration of a dealer under sub-section (7) and sub-section (8) of section
26 with an intimation to him, such dealer shall, within fourteen days from
the date of receipt of intimation, surrender all unused blank way bills forms
held in his stock and such authority shall, thereupon cancel such forms. (4)
If any registered dealer who has any unused way bill forms in his stock does
not intend to use such form for any reason, he shall surrender such way bill
forms immediately to the appropriate assessing authority for cancellation of
such forms. 81. Surrender of unused blank way bill forms by any person,
unregistered dealer. (1)
Every person, or dealer not registered under the Act, who does not intend to
use any way bill form obtained by him under rule 76, shall surrender
immediately such way bill form to the appropriate prescribed authority from
whom it was obtained for cancellation and such authority shall thereupon
cancel such form. (2)
While surrendering such way bill form under sub-rule (1), the person or
dealer who is not registered under the Act may, by an application, request
the appropriate prescribed authority to refund the amount of security, if
any, or release bank guarantee, if any, furnished by him for obtaining such
way bill form. (3)
The appropriate prescribed authority shall within thirty days from the date
of application made by a person or dealer under sub-rule (2), refund the
amount of security or release the bank guarantee, if any, furnished by such
person or dealer. 82. Punishment for breach of the provisions in respect of way bill
forms. Whoever
contravenes, any of the provisions of rule 77, rule 79, rule 80 or rule 81
shall be punishable with a fine not exceeding five hundred rupees. 83. Interception, detention and search of road vehicle under section
66. For
the purpose of verifying whether any consignment of goods is being or has
been transported in a road vehicle or by any other means in contravention of
the provisions of section 65- (a)
the Assistant Commissioner, Commercial Tax Inspector, Assistant Inspector or
checker posted at the checkpost, may intercept,
detain or search such road vehicle at the checkpost,
or (b)
such Deputy Commissioner, Assistant Commissioner,
officer or Commercial Tax Inspector as may be authorised
by the Commissioner in this behalf, may intercept, detain or search such road
vehicle or load carried by a person at any other place. *83A. Seizure Memo of the goods seized. Any authority who seized the goods in exercise of the powers
conferred under, or as per the provisions laid down under Chapter VII of the
Act, and especially sections 65, 66, 67, 68, and 71 and Chapter VIII of the
said rules, and laid down especially under rules 68, 69, 70, 71, 72, 73, 74,
and 83, shall issue to the concerned dealer or in-charge of the goods from
whom such goods were seized, a list of the goods seized in a Seizure Memo. in Form 29A." 84. Procedure for imposition of penalty for transporting goods in
contravention of section 65 and section 71. (1) Where, upon interception or search made under clause (a) of section 66, it is found by the Deputy Commissioner, the Assistant Commissioner, the authorized officer or the Commercial Tax Inspector, either at the checkpost or at any other place that a consignment is being or has been transferred in contravention of the provisions of section 65 or section 71 and such consignment of goods is seized by such authority under sub-section (1) or sub-section (2) of section 68, the person or dealer, as the case may be, whose goods are so seized, shall be liable to pay the penalty under section 69. (2) The Deputy Commissioner or the authorized officer or as the case may be, the Assistant Commissioner, shall serve a notice upon the person from whom such goods are seized or the owner of such goods or the person who subsequently establishes his claim for ownership of such goods, as the case may be, directing him to appear in person or through his agent and to show cause on the date, time and place specified in such notice as to why a penalty under section 69 shall not be imposed on him. ____________________________________________________ *inserted by SVAT(Amendment) Rules, 2006 vide notification no.
01/ITCT/2006 dated 28/04/2006. (3)
The Deputy Commissioner or the authorized officer or as the case may be, the
Assistant Commissioner, shall fix a date for hearing ordinarily not before
fifteen days from the date of issue of notice referred to in that rule: Provided
that the requirement of allowing fifteen days time for show cause in the
notice may, at the request of the person or dealer be waived by the authority
who serves such notice. (4)
The person or dealer may be directed- (a)
to produce the bill, invoice, consignment note or document of like nature
issued by the consignor and the catalogue, if any, of the manufacturer of
goods showing therein the retail sale prices fixed by such manufacturer in
respect of such goods, (b)
to furnish a declaration in respect of the aggregate
retail price of the seized goods at which these are likely to be sold in (5)
The person or dealer on whom notice has been served under sub-rule (1) may
prefer objection to the imposition of penalty. (6)
After considering the objection, if any, preferred by a person or dealer or
after considering the document and evidence that may be produced, the
authority referred to in sub-rule (2) shall determine the approximate
saleable value of the goods transported in contravention of the provisions of
section 65 or section 71 and impose a penalty on such person or dealer, as
the case may be, in accordance with the provisions of section 69. (7)
When a penalty is imposed under sub-rule (6) by the authority referred to in
sub-rule (2), such authority shall serve upon the person or dealer a notice
directing him to pay the amount of penalty imposed by the date specified in
such notice and to furnish a copy of the receipted challan
as proof of payment of such penalty and take delivery of the goods seized
under section 68 by the date specified in such notice. (8)
On receipt of a copy of the receipted challan
referred to in sub-rule (7) as proof of payment of penalty, the authority
referred to in sub-rule (2) shall, after the person, dealer acknowledges the
receipt of such goods in the copy of the seizure receipt related thereto,
release the goods under sub-section (3) of section 69. 85. Procedure for imposition of penalty on transporter for
contravention of provisions of sub-section (4) of section 68. (1)
Where the Deputy Commissioner or an Assistant Commissioner or an authorized
officer finds that a transporter has contravened the provisions of
sub-section (4) of section 68 after the transporter is given at his option,
the custody of seized goods, and a penalty is required to be imposed on such
transporter under section 70, such authority shall serve a notice upon such
transporter directing him to appear in person or through his agent and to
show cause on the date, time and place specified in such notice why a penalty
under section 70 shall not be imposed on him. (2)
The Deputy Commissioner or Assistant Commissioner or authorized officer shall
fix a date for hearing ordinarily not before fifteen days from the date of
issue the notice referred to in sub-rule (1): Provided
that the requirement of allowing fifteen days time in the notice for show cause may, at the request of the transporter, be waived by
the authority who serves such notice. (3)
The transporter may be directed- (a)
to produce the bill, invoice, consignment note or document of like nature
issued by the consignor or owner of the seized goods and catalogue, if any,
of the manufacturer of the goods showing therein the retail sale prices fixed
by such manufacturer in respect of such goods, (b)
to furnish a declaration in respect of the aggregate
market value of the seized goods at which these are likely to be sold in (4)
The transporter to whom notice has been served under sub-rule (1) may prefer
an objection to the imposition of penalty. (5)
After considering the objection, if any, preferred by the transporter or
after considering the document and evidence that may be produced, the
authority referred to in sub-rule (1) shall determine the approximate market
value of the seized goods delivered wholly or partly to the consignee or
owner of such seized goods or otherwise disposed of by such transporter, in
contravention of the provisions of sub-rule (4) of section 68 and shall
impose a penalty on such transporter in accordance with the provisions of
section 70. (6)
When a penalty is imposed under sub-rule (5) by the authority referred to in
sub-rule (1), such authority shall serve upon the transporter a notice
directing him to pay the amount of penalty so imposed by the date specified
in such notice and shall also fix a date by which the receipted challan in proof of such payment shall be produced before
him. 86. Auction sale of seized goods for default in payment of tax,
penalty, etc. (1)
Where the goods are seized under section 68 and the penalty imposed has not
been paid by the date specified in the notice issued under sub-section (2) of
section 69, the authority who has seized such goods shall issue a
proclamation for open auction for sale of such goods for cash on delivery
fixing a date not earlier than thirty days from the date of issue of such
proclamation for sale and in such proclamation, the time and place of sale
and description of the goods for sale shall be mentioned. (2)
The proclamation for open auction referred to in sub-rule (1) shall be
published in two local newspapers and copy of such proclamation shall be- (a)
hung up for public view at the place where the sale in auction is to take
place, and (b)
forwarded to the dealer or person from whom such
goods have been seized under section 68 or owner of such goods if his address
is available or to the person who subsequently claims ownership or authority
of possession where his address is available in the seizure records. whom
such goods have been seized, the Deputy Commissioner or Assistant
Commissioner or authorized officer, as the case may be, shall, in order of
the following priority, send intimation in respect of such balance of the
proceeds to- (a)
the owner of the goods where his address is available on records of seizure
of goods, or (b)
the dealer or person, as the case may be, from whom
the goods so sold in open auction have been seized. 89. Manner of payment of the balance amount of sale proceeds to the
owner of goods after sale in auction. (1)
Where any owner of the goods sold in open auction under sub-rule (4) of rule
86 or the dealer or person from whom such goods have been seized under
section 68 claims the balance of the proceeds of sale made in such auction,
he shall, within the time referred to in sub-section (7) of section 69 make
an application to the Deputy Commissioner or Assistant Commissioner or
authorized officer, as the case may be, referred to in sub-rule (2) of rule
88 for the payment of such balance of the proceeds of sale. (2)
If the Deputy Commissioner or Assistant Commissioner or authorized officer,
as the case may be, is satisfied that the claimant of the payment of balance
of such proceeds is the owner of goods so sold, he shall issue a Refund
Payment Order towards payment of the amount of proceeds of sale to such owner
of the goods: Provided
that where address of the owner of goods seized under section 68 is not
available on the records of seizure, Refund Payment Order may be issued, upon
an application made in this behalf by the dealer or person from whom such
goods have been seized. CHAPTER IX MANNER OF IMPOSITION
OF PENALTY FOR CONCEALMENT OF SALES 90. Manner of imposition of penalty for concealment of sales and
payment of such penalty. (1)
Where it appears to the Commissioner or any person appointed under
sub-section (3) of section 3 to assist him, that it is necessary to proceed
against a dealer under sub-section (1) of section 72, such authority shall
serve upon such dealer a notice directing him to appear before him in person
or through an authorised agent and- (a)
to produce before him the books of accounts, registers or documents for
examination, (b)
to explain the books of accounts or documents produced by such dealer or
evidence that came into possession of the authority, and (c)
to show cause on the date specified in such notice
why penalty as specified in the notice shall not be imposed on him. (2)
The dealer may, if he so wishes, prefer an objection
in writing or may adduce an evidence in support of his contention on the date
of hearing. (3)
After examining the books of accounts, documents or evidence, produced by the
dealer and considering his objection the Commissioner or any person appointed
under sub-section (3) of section 3 to assist him, shall impose penalty upon
the dealer under sub-section (1) of section 72 for such amount as he deems
fit, reasonable and serve a notice upon such dealer directing him to make
payment of the amount in accordance with the provisions of sub-section (2) of
section 72 and to produce the receipted challan in
proof of such payment by the date specified in the said notice. CHAPTER X APPEAL, REVISION AND
REVIEW OF AN ORDER AND REFERENCE OF CASES TO THE
APPELLATE AND REVISIONAL AUTHORITY 91. Memorandum of Appeal and presentation thereof. (1)
Any dealer or person (hereinafter referred to as the appellant) intending to
prefer an appeal under sub-section (1) of section 73 against an order of
assessment referred to in clause (a) of Explanation to that section shall
present a memorandum in Form 30 in duplicate to the Appellate Authority. (2)
The memorandum of appeal- (a)
shall contain the following particulars- (i) the date of order appealed against; (ii)
the name and designation of the officer who passed the order; (iii)
grounds of appeal briefly but clearly set out; (iv)
the date of receipt of notice of demand referred to in clause (b) of the Explanation
to section 73 in respect of the order appealed against; (v)
the amount of tax and interest admitted to be due from the appellant; (vi)
prayer of the appellant for remedy of the grievance expressed in the grounds
referred to in sub-clause (iii); (b)
shall be endorsed by the appellant or by an agent authorised
in writing in this behalf by the appellant as follows:- (i) such amount of tax and interest as the appellant
admits to be due from him has been paid; and (ii)
that to the best of his knowledge and belief the facts set out in the
memorandum are true; (c)
shall be verified in the manner referred to in the memorandum of appeal and
signed by the appellant or by agent duly authorised
by him; (d)
shall be accompanied by- (i) a copy of the order of assessment against which the
appeal is preferred, and (ii)
court fee stamp for the amount of fee as prescribed
under rule 105 for presenting an appeal. (3)
A memorandum of appeal may be presented to the Appellate Authority by the
appellant or by an agent duly authorised by him or
may be sent to the said authority by registered post. (4)
If a memorandum of appeal or a stay petition, if any, is sent by registered
post, such memorandum or petition shall be deemed to have been presented on
the day on which it is accepted and registered by a post office. 92. Entertainment of appeals for hearing. (1)
Where it appears to the Appellate Authority that the appellant has- (a)
not paid the amount of tax or interest, as the case may be, that the
appellant admits to be due from him, or (b)
not enclosed a copy of the assessment order or order of determination of
interest, as the case may be, or (c)
not affixed the court fee stamp showing adequate
payment of fee for presenting the appeal. The
Appellate Authority shall serve a notice upon the appellant directing him to
show cause on the date and time specified in such notice as to why the appeal
presented by him shall not be rejected. (2)
If the appellant fails to show cause in terms of the provisions of sub-rule
(1), by the date specified in the notice referred to in that sub-rule, the
Appellate Authority shall, for reasons to be recorded, pass an order to the
effect that such appeal cannot be entertained and inform the appellant
accordingly. (3)
Where the appellant pays the amount of tax or interest, as the case may be,
that he admits to be due from him and produces before the Appellate Authority
on the date specified in the notice or such other date as may be allowed by
the Appellate Authority, the receipted copy of challan
showing payment of such amount of tax or interest, such Appellate Authority
shall, after allowing the appellant to amend the memorandum of appeal in this
behalf, entertain the appeal for hearing on its merit. (4)
Where the appellant pays the fee or makes good the deficiencies of such fee
by the date specified in the notice, or such other date as may be allowed by
the Appellate Authority, by means of court fee stamp or where he furnishes by
the date specified in the notice, or such other date as may be allowed by the
Appellate Authority, a copy of the order of assessment against which he has
presented his appeal, the Appellate Authority shall, after allowing the
appellant to amend the memorandum of appeal in this behalf, entertain the
appeal for hearing on its merit. (5)
The date on which the appellant complies with the requirement referred to in
clause (c) and clause (d) of sub-rule (2) of rule 91 shall, notwithstanding
that he has presented the memorandum of appeal on any earlier date, be deemed
to be date for presentation of his memorandum of appeal for counting the
period of limitation. 93. Proceedings for disposal of appeals. (1)
Where an appeal is entertained by the Appellate Authority, it shall serve
upon the appellant a notice directing him to appear and produce before him
such accounts, document or evidence as it wishes to rely on in support of the
ground taken in the memorandum of an appeal on the date, time and at the
place specified in such notice. (2)
The Appellate Authority shall fix a date for hearing of appeal ordinarily not
before thirty days from the date of issue of the notice referred to in
sub-rule (1). (3)
In course of hearing, the Appellate Authority may, on application, allow the
appellant to make amendment in the memorandum in respect of grounds referred
to in sub-clause (iii) or sub-clause (vi) of clause (a) of sub-rule (2) of
rule 91. (4)
After hearing the appellant and considering accounts, documents or evidence
produced by him, the Appellate Authority shall, by an order in writing, dispose
of the appeal to the best of its judgment in accordance with the provisions
of sub-section (2) or sub-section (4) of section 73 and send a copy of such
order to the appellant and to the appropriate assessing authority whose order
forms the subject matter of the appeal: Provided
that where an appellant fails to appear before the Appellate Authority on the
date specified in the notice referred to in sub-rule (1) or such other date
as may be allowed by such Appellate Authority, and to produce accounts, document
or evidence, the Appellate Authority shall dispose of the appeal exparte to the best of its judgment. 94. Stay petition, presentation and disposal thereof. (1)
If an applicant intends to pray for stay of recovery of the disputed amount
of tax, penalty or interest arising out of an order appealed against, he
shall make a stay petition containing, inter alia,
substance of facts leading to the exact amount of tax, penalty or interest
sought to be stayed and the exact amount of tax, penalty or interest
disputed, payment of tax before and after the said order and reasons in brief
for seeking stay, and stay petition shall be presented along with memorandum
of appeal under rule 91. (2)
Where a stay petition has been presented by an appellant along with the
memorandum of appeal before the Appellate Authority and such appeal has been
entertained, it shall, after giving such appellant a reasonable opportunity
of being heard, dispose of such stay petition within one month from the date
of presentation of such petition. (3)
The Appellate Authority may, in its discretion, by an order in writing, stay
realization of the amount of tax or interest in part or whole as the case may
be, in dispute on such terms and conditions as it may deem fit and proper in
the facts and circumstances of the case. (4)
If the realisation of the amount of tax, penalty or
interest is stayed by the Appellate Authority subject to payment of such
amount of tax, penalty or interest or furnishing security for securing the
payment of the amount of tax, penalty or interest in dispute, as the case may
be, specified in the order referred to in sub-rule (3), the appellant shall
pay such amount of tax, penalty or interest or furnish such security by the
date specified in such order. (5)
Where an appellant fails to pay any amount of tax or interest in dispute
which he is required to pay according to the order referred to in sub-rule
(4) by the date specified therein or such other date as may be allowed by the
Appellate Authority, such order staying realisation
of the amount of tax, or interest, as the case may be, shall stand
automatically vacated after the expiry of the date specified in the order or
such other date as may be allowed by the Appellate Authority. 95. Functional jurisdiction of revisional authorities
under section 74 or section 75. (1)
Subject to the provisions of sub-rule (1) of rule 96 and in the interest of
revenue, any assessment made order passed under the Act and the rules made thereunder may be revised suo motu under section 74 and accordingly- (a)
any order passed by an Assistant Commissioner as appropriate registering
authority, appropriate assessing authority or otherwise, may be revised by
Deputy Commissioner, on his own motion, who has jurisdiction over such
Assistant Commissioner, (b)
any order passed by a Deputy Commissioner as appropriate registering
authority or appropriate assessing authority or otherwise, may be revised by
a Joint Commissioner on his own motion who has jurisdiction over such Deputy
Commissioner, (c)
any order passed by a Joint Commissioner may be revised by an
Additional/Special Commissioner on his own motion, (d)
any order passed by an officer referred to in clause
(a), clause (b) or clause (c), or by any of the predecessors-in-office of the
Commissioner may be revised by the Commissioner. (2)
An application for revision under section 75 of an order, other than an order
referred to in section 76 and an order of assessment against which an appeal
lies under section 73- (a)
passed by an Assistant Commissioner shall be made in the first instance to
the Deputy Commissioner who has jurisdiction over such Assistant
Commissioner; (b)
passed by the Deputy Commissioner shall, in the first instance, be made to
the Joint Commissioner who has jurisdiction over such Deputy Commissioner; (c)
passed in the first instance under clause (a) by Deputy Commissioner, shall
be made to the Joint Commissioner who has jurisdiction over such Deputy
Commissioner, and (d)
passed in the first instance under clause (b) by a Joint Commissioner shall
be made to the Additional Commissioner/Special Commissioner who has
jurisdiction over such Joint Commissioner. (3)
The authorities referred to in sub-rule (1) or sub-rule (2) shall be called
the revisional authority for the purposes of
section 74 or section 75 as the case may be. 96. Manner of making application for revision under section 76. (1)
A dealer or person, as the case may be, (hereinafter referred to as
applicant) who is aggrieved by an order of the revisional
authority referred to in sub-rule (3) of rule 95 shall, within forty-five
days from the date of receipt of an order, or within such further period as
may be allowed by the Appellate Auhority, make an
application in Form 30 in duplicate for revision under section 76 to the
Appellate Authority for revision of an order: Provided
that where an applicant seeks a stay of realisation
of penalty or stay of operation of an order sought to be revised, he shall
present in person or through an agent the application for revision together
with his application for such stay. (2)
An application for revision shall contain, inter alia,
the following particulars: (a)
the date of order sought to be revised; (b)
the name and designation of the authority who has passed the order referred
to in clause (a); (c)
the grounds of the application for revision set out briefly but clearly; (d)
the date of receipt of the order or notice, as the case may be; (e)
prayer of the applicant for remedy of the grievance
stated in the grounds of the application. (3)
The application for revision shall be accompanied by- (a)
a copy of the order sought to be revised; (b)
court fee stamp for the amount of fee as prescribed
under rule 105 for making the application for revision. (4)
In the application for revision, the applicant shall endorse that the facts
set out and verified in such application are true to the best of his
knowledge. (5)
An application for revision in Form 30 by a dealer or person, as the case may
be, shall be verified and signed by him in the manner referred to in the said
Form. (6)
An application for revision shall be presented personally or sent by
registered post to the Appellate Authority. (7)
Where an application for revision application is sent by registered post,
such application shall be deemed to have been presented on the date on which
it is received in the office of the Appellate Authority. (8)
Where the applicant intends to pay the fee or makes good the deficiencies of
such fee by means of court fee stamp or where such applicant intends to
furnish the copy of order sought to be revised on any date after making the
application, such applicant may, with prior permission of the Appellate
Authority, do so: Provided
that the date on which the applicant pays the fee or makes good the
deficiencies of such fee or furnishes a copy of the order sought to be
revised, as the case may be, shall, notwithstanding that he has presented the
application on any earlier date, be deemed to be the date for presentation of
such application for the purpose of counting the period of limitation. 97. Proceedings for disposal of application for revision. (1)
Where it appears to the Appellate Authority that an application made under
rule 96 is in order it shall serve upon the applicant a notice directing him
to appear and produce before him such accounts, documents or evidence as he
wishes to rely on in support of the grounds taken in such application on the
date, time and place specified in such notice. (2)
The Appellate Authority shall fix a date for hearing of the application for
revision ordinarily not before thirty days from the date of issue of the
notice referred to in sub-rule (1). (3)
After hearing the applicant and considering accounts, documents or evidence
produced by him, the Appellate Authority shall, by an order in writing,
dispose of the application for revision to the best of its judgment and send
a copy of such order to the applicant and the authority whose order has been
revised: Provided
that where the applicant fails to appear and produce any accounts, documents
or evidence before the revisional authority on the
date specified in the notice referred to in sub-rule (1) or on such other
date as may be allowed by such authority, the Appellate Authority shall
dispose off the application exparte to the
best of its judgment. 98. Stay of realisation of penalty and any
order pending disposal of the application for revision. (1)
If an application for stay of realisation of any
amount of penalty or for stay of an order passed under the Act or the rules
made thereunder has been presented along with the
application for revision before the Appellate Authority, such Authority may,
after giving the applicant a reasonable opportunity of being heard, dispose
off such application for stay within one month from the date of presentation
of such application. (2)
The Appellate Authority may, in its discretion, by an order in writing, stay realisation of the penalty in part or whole or stay the
operation of the order sought to be revised, as the case may be, on such terms
and conditions as it may deem fit and proper in the facts and circumstances
of the case. (3)
If the realisation of penalty or operation of the
order is stayed by the order referred to in sub-rule (2), subject to payment
of such amount of penalty or furnishing of such security to secure the
payment of penalty as directed in such order, stay shall be allowed on
compliance of the said order by the applicant. (4)
Where the applicant fails to pay the amount of penalty or furnish the
security as required by the order referred to in sub-rule (3) by the date
specified therein, such order staying the realisation
of penalty or operation of the order shall stand automatically vacated on the
expiry of the date specified in such order or such further date may be
allowed by the Appellate Authority. 99. Cases in which the applications for revision shall lie before
the Appellate Authority. An
application for revision of an order under section 76 shall lie before the
Appellate Authority, if such order is- (a)
a final appellate order passed by an Assistant Commissioner, a Deputy
Commissioner or a Joint Commissioner under section 74, or (b)
a final order passed by an Assistant Commissioner, a Deputy Commissioner,
Joint Commissioner or an Additional Commissioner under section 75 revising or
reviewing on his own motion, order passed by such officer. 100. Copy of the revisional order to be
sent to appropriate authority. A
copy of an order passed on revision under section 76 by the Appellate
Authority shall be sent to the appropriate authority whose order forms
subject matter of such revision or review and to the dealer or person who has
made the application for revision or review or who is adversely affected by
the order passed. CHAPTER
XI MISCELLANEOUS 101. Manner of furnishing security under section 28. (1)
When it appears to the Commissioner, or the authority to whom power under
section 28 has been delegated that it is necessary to require a dealer, an
undertaking or a person to furnish security or additional or fresh security
under that section, he shall serve a notice specifying the amount for which
the security is proposed to be furnished by the dealer or the undertaking or
the person, as the case may be, and direct him to appear on the date
specified in the notice to prefer objection, if any, to the proposal for the
said security and the date to be so specified shall not ordinarily be less
than fifteen days from the date of issue of such notice. (2)
After considering the cause, if any, shown by the dealer, undertaking or
person in pursuance of the notice referred to in sub-rule (1), the authority
referred to in the said sub-rule (1), may determine, by an order in writing,
the reasonable amount for which security is required to be furnished by such
dealer, undertaking or person. (3)
If any security is to be furnished by a dealer, an undertaking or a person
under sub-rule (2), the authority shall serve a copy of the order upon him
specifying the date not less than fifteen days from the date of service of
the order on or before which the security shall be furnished. (4)
A security required to be furnished under sub-rule (3) shall be furnished- (a)
in cash, or (b)
in such post office certificates, Government Promissory Notes, or loan bonds,
as may be in force at the time of furnishing such security if the authority
demanding the security so permits in the manner and for a period specified in
the order referred to in the said sub-rule, or (c)
in the form of a Guarantee from a Scheduled Bank agreeing to pay to the State
Government, on demand, the amount of security fixed by the Commissioner or
the authority referred to in sub-rule (1), or (d)
by means of a fixed deposit receipt certificate of a
Scheduled Bank. 102. Manner of refund of security. (1)
An application for refund under sub-section (5) of section 28 shall be made
to the authority to whom the security has been furnished after the expiry of
period specified in the order under sub-rule (3) of rule 101 for which the
security is required to be furnished and this application shall contain all
the particulars in respect of mode and date of furnishing the security. (2)
On receipt of application under sub-rule (1), if the said authority is
satisfied about the bonafide of the application, he
shall refund the amount of security furnished or part thereof if such
security is not required for the purposes for which it was furnished. 103. Manner of realisation, refund or
recovery of penalty not provided elsewhere in the rules. Where
penalty is imposed under any provision, other than section 40 of the Act or
the amount of penalty so imposed is subsequently modified in consequence of
any order passed on revision or review, but the manner of realisation
amount of penalty or refund has not been provided elsewhere in the rules,
provisions of the rules laid down in Chapter VI in respect of manner of realisation, refund or recovery of penalty under section
40, shall apply mutatis mutandis to such realisation,
refund or recovery of penalty referred to in this rule. 104. Payment of money after compounding offences. (1)
When the Commissioner or any person appointed under sub-section (3) of
section 3 to assist him, while compounding any offence decides to accept under
section 83 any sum from any dealer by way of composition of such offence, he
shall issue a challan for payment of such sum
directing the officer-in-charge of the appropriate Government Treasury to
receive on his behalf the sum specified in the challan
and he shall make over the challan to the dealer
for presentation to the Treasury at the time of payment. (2)
The Commissioner or any person appointed under sub-section (3) of section 3
to assist him, while compounding the offence shall also fix a date on which
the dealer shall produce before such authority a receipted challan in proof of payment of the sum specified in
sub-rule (1). 105. Fees payable for appeal, revision, review and other
miscellaneous applications or petitions. The amount of fee as indicated in column (3) of the Table below against memorandum of appeal, application for revision, review or any other application or petition as described in column (2) of said Table shall be payable when such memorandum is presented or such application or petition is filed. TABLE (3)
Fees payable under this rule shall be paid in court fee stamps affixed to the
memorandum, application or petition, as the case may be. (4)
Notwithstanding anything contained in sub-rule (1) no fee shall be payable
when memorandum is presented or application for revision or review is made by
the Special Commissioner, Additional Commissioner, Joint Commissioner, Deputy
Commissioner or Assistant Commissioner to the Appellate Authority under the
provisions of the Act or the rules made thereunder. 106. Service of notice. (1)
Any notice which is issued under the provisions of the Act or the rules made thereunder may be served on a dealer or person by any of
the following methods, namely:- (a)
personally upon the addressee, if present, (b)
by messenger, including a courier, (c)
by registered post: Provided
that if the authority issuing the notice is satisfied that an attempt has
been made to serve a notice by any of the above mentioned methods and the
dealer is avoiding service or that for any other reason the notice cannot be
served upon him by any of the above mentioned methods, the said authority
may, after recording his reasons for so doing, cause such notice to be served
by affixing a copy thereof in some conspicuous place in his office and also
upon some conspicuous part of the last notified place of business of the
dealer and a notice so served shall deemed to have been duly served. (2) When a notice is
sent by registered post, it shall be deemed to have been received by the
addressee at the expiry of the period normally taken by a registered letter
in transit unless the contrary is proved. (3)
The goods shall ordinarily be sold to the highest bidder but if it appears to
the Deputy Commissioner or Assistant Commissioner or authorized officer, as
the case may be, that such highest bid as offered by such bidder is
inadequate, he may adjourn the sale to some other date and a fresh
proclamation specifying the next date for auction shall also be issued and
published in accordance with the provisions of sub-rule (1) and (2). (4)
On the date of auction specified in the proclamation referred to in sub-rule
(1) or sub-rule (3), the goods seized under section 68 shall be sold under
sub-section (4) of section 69: Provided
that if a copy of the proclamation does not appear to have been forwarded to
the dealer or person from whom goods have been seized and the amount of
penalty is due, and if such dealer or person or the owner of the goods so
seized appears before the Deputy Commissioner or Assistant Commissioner or
authorized officer, as the case may be, on any date not later than *the
date preceeding the date stipulated in the
proclamation of sale with receipted challan
showing payment of penalty due from such dealer or person, the goods referred
to in such proclamation shall not be sold in auction and such goods shall be
released to such dealer or person in accordance with the provisions of
sub-rule (8) of rule 84. |