ORRISA VALUE ADDED TAX

CHAPTER – I

PRELIMINARY

1. Short title and commencement. –

(1) These rules may be called the Orissa Value Added Tax Rules, 2005.

(2) They shall come into force on such date as the Government may, by notification, specify.

2. Definitions. –

(1) In these rules, unless there is anything repugnant in the subject or context –

(a) “Act” means the Orissa Value Added Tax Act, 2004;

(b) “agent” means a person authorised by a dealer in writing to appear on his behalf before any Sales Tax authority or the Tribunal, being

(i) a relative of the dealer; or

(ii)a person regularly employed by the dealer; or

(iii)an advocate or any other person entitled to plead in any Court; or

(iv)a person, who has been 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 such other person, enrolled by the Commissioner as a tax practitioner under rule 124 of these rules; or

(v) in the case of Government, the State Representative appointed in this behalf;

(d) “Assistant Commissioner” means Assistant Commissioner of Sales Tax appointed by that designation by the Government under section 3 to assist the Commissioner;

(e) “Assistant Sales Tax Officer” means the Assistant Sales Tax Officer appointed by that designation by the Government under section 3 to assist the Commissioner;

(f) “Commercial Tax Gazette” means the Gazette published under the authority of the Commissioner of Commercial Taxes, Orissa;

(g) “Commissioner” means the Commissioner of Sales Tax and includes any officer to whom the Commissioner may delegate under section 5 his powers and duties under the Act;

(h) “Form” means a form appended to these rules;

(i) “Government Treasury” means in relation to a dealer registered within the jurisdiction of any Sales Tax Officer or Assistant Commissioner of Sales Tax, the treasury, special treasury or sub-treasury, as the case may be, of the district, sub-division or Tahasil where the dealer’s place of business, within that jurisdiction, is situated;

(j) “quarter” means a period of three months ending on 31^st March, 30^thJune, 30^th September and 31^stDecember;

(k) “Registrar” means the person who is for the time being discharging the functions of the Registrar of the Tribunal;

(l) “repealed Act” means the Orissa Sales Tax Act, 1947;

(m) “R.R. Unit” means a Railway Receipts Unit established with or without a check-post or barrier by the Government by notification in and around a railway station;

(n) “Sales Tax authority” means any person appointed under section 3 of the Act to assist the Commissioner under any designation as prescribed under rule 3;

(o) “Sales Tax Officer” means the Sales Tax Officer appointed by that designation by the State Government under section 3 to assist the Commissioner;

(p) “Sales Tax Tribunal” means the Tribunal constituted as such by the Government under section 4;

(q) “section” means a section in the Act;

(r) “State Representative” means an officer or advocate appointed by the Government to appear and act on their behalf in any proceeding before the Tribunal and includes Additional State Representative, Deputy State Representative, Assistant State Representative or any other officer or advocate, appointed to act in his absence or along with him;

(s) “tax fraction” means the fraction calculated in accordance with the

formula:

___r__

r + 100

in which formula “r” represents the rate of tax applicable to the sale;

(t) “tax practitioner” means a person enrolled as such in accordance with rule124;

(2) All other words and expressions which are used but not defined in these rules shall have the same meaning as respectively assigned to them in the Act.

CHAPTER II

TAXING AUTHORITY

3. Sales Tax Authorities. –

(1) The authorities to be appointed for assisting the Commissioner may be under the following designations:

(a) Special Commissioner of Sales Tax;

(b) Additional Commissioner of Sales Tax;

(d) Deputy Commissioner of Sales Tax;

(e) Assistant Commissioner of Sales Tax;

(f) Sales Tax Officer;

(g) Tax Recovery Officer;

(h) Assistant Sales Tax Officer;

(2) The Commissioner may, by notification, specify the local limits of jurisdiction of the authorities appointed under sub-section (2) of section 3 and confer on such authorities such duties and functions, as may be required to be discharged by or under the Act and these rules as assigned to them by the said notification.

(3) For the purpose of these rules, –

(i) an Assistant Sales Tax Officer shall be subordinate to the Sales Tax Officer;

(ii) a Sales Tax Officer shall be subordinate to the Assistant Commissioner;

(iii) an Assistant Commissioner shall be subordinate to the Deputy Commissioner of Sales Tax;

(iv) a Deputy Commissioner of Sales Tax shall be a subordinate to the Joint Commissioner of Sales Tax;

(v) a Joint Commissioner of Sales Tax shall be subordinate to the Additional Commissioner of Sales Tax; and

(vi) an Additional Commissioner of Sales Tax shall be subordinate to the Special Commissioner of Sales Tax.

(4) Notwithstanding anything contained in sub-rule (3), the authorities appointed under the designations mentioned in sub-rule (1), shall be subordinate to the Commissioner.

4. Constitution of Circles, Ranges and Large Tax-payers Units. –

(1) The Government may, by notification, constitute areas into circles over which an Assistant Sales Tax Officer or a Sales Tax Officer, as the Commissioner may specify by notification, shall exercise jurisdiction:

Provided that one or more Assessment Units may be established under a circle.

(2) An Assistant Sales Tax Officer or a Sales Tax Officer exercising jurisdiction over any circle may also exercise jurisdiction over another circle or more circles, if so directed, by the Commissioner, by notification.

(3) The circles constituted by the Government, by notification, can be reconstituted likewise at any time by notification.

(4) The Government may, by notification, constitute several circles into ranges over which an Assistant Commissioner or a Deputy Commissioner of Sales Tax, appointed as such to those ranges, shall, exercise jurisdiction.

(5) The ranges constituted by the Government, by notification, may likewise be reconstituted, by a notification.

(6) The Government may, by notification, constitute one or more Large Tax payers’ Unit, hereinafter referred to as LTU, in each range and, a Sales Tax Officer or an Assistant Commissioner, appointed as such to those units shall, exercise jurisdiction over the range in which such units are constituted.

(7) The Commissioner may, by notification, assign the record of any dealer under any circle or in the range to the LTU, constituted in that range.

(8) The Sales Tax Officer or the Assistant Commissioner, as the case may be, appointed as such to the LTU shall, discharge such functions under the Act and rules made thereunder, as may be specified by the Commissioner, by notification, in respect of the dealers, whose records are assigned to that LTU under sub-rule(7).

(9) The Government may also, by notification, constitute Enforcement Ranges comprising different circles over which an Assistant Commissioner and a Sales Tax Officer or an Assistant Sales Tax Officer under him shall exercise jurisdiction.

5. Delegation of Commissioner’s powers and functions. –

(1) The Commissioner shall not delegate to any officer, appointed under sub-section (2) of section 3, to assist him, the powers under sub-section (1) of section 84 and sub-section (1) of section 86.

(2) The Commissioner shall not delegate to any officer, appointed under sub-section (2) of section 3, to assist him, the powers under sub-section (1) of section 79, without the prior approval of the Government.

(3) The Commissioner shall not authorize any officer below the rank of a Sales Tax Officer, to exercise power under sub-section (3) of section 73, sub-section (3) and sub-section (11) of section 74 and sub-section (2) of section 75.

CHAPTER III

INCIDENCE, LEVY AND RATE OF TAX

6. Determination of taxable turnover. –

To determine the taxable turnover of sales, the following amounts shall, subject to the conditions specified, be deducted from the gross turnover of sales –

(a) the turnover of sale of goods exempt from tax under section 17;

(b) the turnover of sale of goods, subject to production of evidence to the satisfaction of the Commissioner, taking place –

(i) in the course of inter-State trade or commerce; or

(ii) outside the state; or

(iii) in the course of import into or export out of territory of India;

(i) a SEZ, or

(ii) a STP, or

(iii) an EHTP, subject to production of evidence to the satisfaction of the Commissioner;

(d) the turnover of sale of goods to a EOU, subject to production of evidence to the satisfaction of the Commissioner;

(e) in case of works contract, the expenditure incurred towards labour and service, subject to the condition that evidence in support of such expenses are produced to the satisfaction of the Commissioner :

Provided that where a dealer executing works contract, fails to produce evidence in support of expenses towards labour and service as referred to above or such expenses are not ascertainable from the terms and conditions of the contract or the books of accounts maintained for the purpose, expenses on account of labour and service shall be determined at the rate specified in the Appendix.

7. Adjustment of sale price or tax in relation to a taxable sale, issue of credit note and debit note. –

(1) Where there is requirement for adjustment of the sale price or tax in relation to a taxable sale, the dealer making such adjustment may issue a credit note or debit note, as the case may be.

(2) Credit note or debit note as referred to in sub-rule(1) shall be issued within six months following the tax period, during which the original sale had taken place.

(3) An adjustment of the sale price and tax in relation to a taxable sale can be made, where

(a) the sale is cancelled; or

(b) the nature of the sale is fundamentally altered; or

(c) the previously agreed consideration for the sale is altered by agreement with the buyer, whether due to reasons of quality or any other reason, consistent with the normal trade practice; or

(d) the goods or part thereof are returned to the seller and, the seller accepts the return of the goods subject to the condition that such return of goods is made within thirty days from the date of sale:

Provided that

(i) a tax invoice in relation to the sale and the amount shown therein as tax charged on the sale are incorrect as a result of occurrence of any one or more of the events specified above; and

(ii) a return has been filed for the tax period in which the sale took place and an incorrect amount of tax on that sale has been accounted for as a result of the occurrence of any one or more of the events specified above.

(4) Where sub-rule (3) applies, the dealer effecting the sale shall make an adjustment as specified in sub-rule (5) or sub-rule (6) and such adjustment shall be subject to the particulars as contained in the credit note or debit note, as the case may be.

(5) Where the output tax correctly calculated as due in respect of any sale exceeds the output tax actually shown in the tax invoice and accounted for by the dealer making the sale, the amount of excess shall be treated as tax charged by such dealer in relation to the sale made in the tax period in which the credit note was issued as a result of occurrence of any or more events referred to in sub-rule (3).

(6) Subject to the provisions of sub-rule (9), where the output tax actually shown in the tax invoice and accounted for exceeds the output tax correctly calculated as due in relation to any sale, the dealer making the sale, shall be eligible for input tax credit for such excess amount in the tax period in which the debit note was issued as a result of occurrence of any or more events referred to in sub-rule (3).

(7) The input tax credit under sub-rule (6) shall be allowed by way of reduction of output tax in the tax period referred to in that sub-rule.

(8) Where the input tax credit under sub-rule (6) can not be adjusted in accordance with sub-rule (7), it shall be carried over to the next or subsequent tax period or tax periods, as the case may be.

(9) No input tax credit shall be allowed under sub-rule (6), unless the amount of the excess tax has been refunded by the registered dealer to the buyer and sufficient evidence to the satisfaction of the assessing authority against such repayment has been adduced.

8. Composition of tax for works contractors –

(1) A dealer executing works contract shall be eligible to pay tax by way of composition in the manner set out in the following sub-rules, in lieu of tax payable under clause (a) of section 9, if-

(a) he has been registered under the repealed Act or under the Act for the whole of the preceding year; and

(b) he has furnished returns for all the tax periods within the due date for the preceding year.

(2) A dealer eligible for payment of tax by way of composition under sub-rule

(i) shall make an application in Form VAT-601 exercising option for payment of tax by composition together with the details of works executed, gross value of the works so executed, tax deducted at source and the tax assessed, if any, for the year preceding to the year, in which the application under this sub-rule is made.

(3) An application under sub-rule (2) shall be made along with the particulars as required to be furnished under that sub-rule, within a period of thirty days of the commencement of the year, for which such application is made.

(4) An option once exercised shall remain valid for a period of three consecutive years unless one or more of the conditions specified in sub-rule (1) is satisfied at any time during the three years referred to above:

Provided that where such condition is not satisfied in course of a year, the facility of payment of tax by way of composition shall be allowed till the end of that year.

(5) A dealer exercising option under sub-rule (2), shall pay tax at the rate of four per cent on sixty per cent of the gross value received or receivable towards execution of works for any year, during which such dealer has been granted permission to pay tax by way of composition, under sub-rule (6).

(6) Upon receipt of an application as referred to in sub-rule(2), the registering authority may, if he is satisfied that the application is correct and complete, the information furnished therewith satisfy the eligibility criteria as specified in sub-rule (1) and, after conducting such enquiry as he deems necessary, grant permission to the dealer for payment of tax by way of composition under sub-rule (5) from such date and in such manner, as may be mentioned in the order in Form VAT-602.

(7) The tax payable by a dealer, who has been granted permission for payment of tax by way of composition under sub-rule (6), shall be deducted at source in accordance with the provisions of rule 58.

(8) The dealer as referred to in sub-rule (7) shall, furnish to the assessing authority, the name and address of the deducting authority in respect of the works being executed by him in Form VAT-603 A and such deducting authority shall be intimated by the assessing authority in Form VAT-603 to deduct tax at source at such rate and on such percentage of the gross value of the works, as specified in sub-rule (5).

(9) Notwithstanding anything contained in sub-rules (1) to (8) and subject to the proviso to sub-rule (4), the assessing authority may, assess the tax payable by a dealer in accordance with the provisions of section 42, for any year for which the dealer has been permitted to pay tax by way of composition in lieu of tax assessable on his taxable turnover, if he is satisfied on the basis of audit that the dealer has suppressed the gross value received or receivable towards execution of works contract during the preceding year.

9. Dealers liable to pay turnover tax. –

(1) A dealer shall be liable to pay turnover tax on his taxable turnover of sales for each tax period under section 16, if he is a retailer and satisfies the following conditions-

(a) his gross turnover of sales does not exceed rupees ten lakh during the preceding year.

Explanation.-- For the purpose of this clause, a dealer who is registered under the repealed Act and is deemed to have been registered under the Act and his gross turnover of sales did not exceed rupees ten lakh in a period of twelve consecutive months ending on the date immediately preceding the appointed day shall, subject to clauses (b), (c), (d) and (e) be liable to pay turnover tax.

(b) he does not purchase or sell goods in course of inter-State trade or commerce;

(c) he does not despatch goods to or receive goods from, outside the state, otherwise than by way of sales or purchases, as the case may be;

(d) he does not import goods from or export goods to, outside the territory of India; and

(e) he does not process or manufacture goods for sale.

(2) A dealer liable to pay turnover tax under sub-rule (1) shall be entitled to collect separately the tax payable on the sale of taxable goods made from the buyers.

(3) No input tax credit shall be allowed on the sales made by a dealer liable to pay turnover tax under sub-rule (1).

(4) Where a dealer liable to pay turnover tax under sub-rule (1) makes purchase of taxable goods from an unregistered dealer or producer or under circumstances, where, no tax is leviable under the Act, he shall pay tax on the purchase price of such goods at the rate applicable to such goods under Schedule “B” or Schedule “C” of the Act in addition to the turnover tax payable on its sales.

(5) If a dealer does not satisfy any or more of the conditions specified in sub-rule (1) at any time of a year, during which he has been paying turnover tax or he intends to pay tax as provided under section 14, he may intimate by exercising option in Form VAT-106 to the registering authority, under whose jurisdiction, the place of business of the dealer is situated.

(6) A dealer, who makes an application under sub-rule (5) shall, subject to the provisions of rule 27, be liable to pay tax in accordance with section 14 and claim input tax credit as admissible under the Act and these rules with effect from the date, he is granted certificate of registration under sub-rule (3) of rule 27.

(7) A dealer of any specific class or category, subject to conditions as may be specified by the Government by notification under section 16, shall pay a turnover tax by way of composition, in lieu of tax payable under section 11 a turnover tax at such percentage of the taxable turnover as may be specified in the said notification.

(8) In case of a dealer liable to pay turnover tax under sub-rule (7), the provisions of sub-rules (3) and (4) shall also be applicable.

9A. Tax on MRP in certain cases. –

(1) A registered dealer of any particular class or classes, as may be notified by the Government, who is either an importer or a manufacturer may at his option, pay, in lieu of tax payable by him under sub-section(1) of section 14, tax at such rate as specified in that Schedule on the Maximum Retail Price of such goods. Note : Maximum Retail Price (MRP) for the purpose of this rule is the price printed on label or packet of the goods or the regulated retail price of the goods, if any.

(2) A dealer paying tax on Maximum Retail Price under sub-rule(1) shall separately indicate the Maximum Retail Price of the goods on the body of the tax invoice and also super scribe on it the words “INVOICE FOR TAX ON MRP”.

(3) A dealer purchasing goods on payment of tax on MRP shall be entitled to claim output tax equal to the amount of input tax paid by him on the invoice.

10. Calculation of tax payable. –

(1) Subject to sub-rule (2), the tax payable on a taxable sale or a taxable purchase shall be calculated by applying the rate of tax specified in Schedule ‘B’ and Schedule ‘C’ of the Act, to the sale or purchase price of the transaction, as the case may be.

(2) Where tax charged is included in the sale price of the goods, the tax- exclusive sale price shall be determined by applying the following formula: A - (A x B)

Where-“A” is the tax-inclusive sale price, and “B” is the tax fraction.

(3) The net tax payable by a dealer for a tax period shall be calculated from the following formula. (O + P) – I Where “O” is the total output tax; “P” is the purchase tax as provided under section 12; and “I” is the total input tax, during that tax period.

11. Calculation of Input Tax Credit. –

(1) Where a dealer effects sales of goods both, subject to tax and exempt from tax, under the Act, the following calculation for claiming input tax credit shall apply –

(a) where all the sales effected by a dealer in a tax period are subject to tax under the Act, the whole of the input tax may be claimed as credit.

(b) where all the sales effected by the dealer for a tax period are exempt from tax under the Act, no input tax may be claimed as credit.

(c) where a part of the sales effected by a dealer in a tax period are subject to tax and the remaining part of the sale are exempt from tax under the Act, the amount that can be claimed as input tax credit shall be calculated from the following formula:

P x Q R

Where “P” is the total amount of input tax; “Q” is the taxable turnover of sales including zero- rated sales: and “R” is the total amount of all sales including exempt sales: during that tax period.

(d) where the fraction Q/R, is less than 0.05, the dealer may not claim any input tax credit for that period.

(e) where the fraction Q/R is more than 0.95, the dealer may claim the entire input tax as credit for that period.

(2) Input tax credit on capital goods under clause (e) of sub-section (5) of section 20 shall be allowed in the following manner:

(a) the total input tax eligible for credit on capital goods for each tax period shall be equally apportioned over a period of thirty six months and –

(i) in case of a start up or new business, input tax credit shall be allowed as apportioned for each tax period, beginning from the first sale after commencement of commercial production;

(ii) in case of a continuing business, input tax credit shall be allowed as apportioned for each tax period following the tax period during which such input tax credit accrued.

(b) the input tax credit, admissible under clause (a), where there is sale of both taxable and tax exempt finished products, shall be determined on application of the principles as provided under sub-rule (1) in respect of each tax period.

Explanation. – For the purpose of this sub-rule, the expression “total input tax” referred to in sub-rule (1) shall be the input tax as apportioned in respect of a tax period :

Provided that for the purpose of calculating input tax credit under this sub-rule, if the value of the capital goods is within rupees one lakh in a tax period, the input tax credit claimed on such amount shall be allowed in one instalment.

12. Partial input tax credit. –

(1) The Government may, by notification, specify such goods or such class of dealers, subject to such conditions and restrictions, as may be specified in that notification, to be allowed input tax credit partially.

(2) Partial input tax credit as referred to in sub-rule (1) shall be at the proportion of the value of actual utilization of input to the value of output in a tax period.

(3) Where the processing or manufacturing activity of a dealer results in the production of both taxable goods and goods exempt from tax, input tax credit admissible shall be determined by applying the principles as provided under sub-rule (1) of rule 11 in respect of each tax period.

Explanation. – For the purpose of this sub-rule, the expression “total input tax” referred to in sub-rule (1) of rule 11 shall be the tax on that part of the input, which is actually utilized in processing or manufacturing.

(4) For the purpose of this rule, the expression “out put” shall mean sale of finished products consequent upon processing or manufacturing or sale of goods used in the execution of works contract, as the case may be.

13. Input tax credit in phased manner. –

(1) Where a dealer transfers the right to use any goods for any purpose, whether or not for a specified period, for cash, deferred payment or other valuable consideration, input tax credit shall be allowed in a phased manner under sub-section (4) of section 20.

(2) The input tax credit as referred to in sub-rule (1) shall be phased out equally over the life time of the goods, the right to use of which is transferred, or the period for which such right to use has been transferred, whichever is later.

(3) If the life time of the goods referred to in sub-rule (2) is not ascertainable or the transfer of right to use such goods is made for short durations over a prolonged period of time, such life time shall be taken as ten years for the purpose of this rule.

14. Reverse tax credit. –

(1) Where input tax credit is already availed by a registered dealer against purchase of goods, a part of which is, however, used in manufacturing or processing of goods exempt from tax, the input tax credit so availed for such part of the goods will be deducted from the input tax credit for the tax period in which such event takes place.

(2) Where there is a negative input tax credit for a tax period, as a result of deductions made under sub-rule (1) the excess input tax credit availed of shall, by order in Form VAT-604, be demanded as if it was a tax due under the Act from the dealer and it shall be recovered as an arrear of tax under the provisions sub-section (7) of section 50.

(3) Where the goods purchased by a registered dealer from another registered dealer are returned to the selling dealer and necessary adjustment is made in their respective accounts, the purchasing dealer shall reverse the input tax credit availed by him for purchase of such goods, subsequently returned.

(4) Where a registered dealer fails to keep separate account of purchase of goods for the purpose of determining reverse tax credit under sub-rule (1), the input tax credit already availed shall be reversed in the following manner : –

(i) In case of a registered dealer manufacturing or processing both taxable goods and goods exempted from tax for sale;

X = U x V W

Where ‘X’ is the input tax credit to be reversed,

‘U’ is the input tax credit availed during the tax period,

‘V’ is the total sale value of goods manufactured or processed, exempt from tax in that period,

‘W’ is the total sale value of goods manufactured or processed in that tax period.

(ii) In case of a registered dealer selling taxable goods, a part of which is damaged, or destroyed.

X = U x V W

Where ‘X’ is the input tax credit to be reversed,

‘U’ is the input tax credit availed during the tax period,

‘V’ is the total estimated sale value of goods, damaged or destroyed in that period,

‘W’ is the total sale value of goods including the sale value of ‘damaged or destroyed’ goods during that tax period

CHAPTER IV

REGISTRATION OF DEALERS, AMENDMENT AND CANCELLATION OFCERTIFICATE OF REGISTRATION

15. Application for registration. –

(1) Every dealer, who does not have more than one place of business, liable to be registered under sub-section (1) of section 25 shall make an application for registration in Form VAT-101 to the registering authority under whose jurisdiction the place of business is situated.

(2) Any person, not being liable to pay tax under section 10, who intends to establish a business for manufacturing or processing of taxable goods of value exceeding rupees two lakh in a year for sale under sub-section (1) of section 26 shall make an application in Form VAT-101 to the registering authority, under whose jurisdiction the place of business is situated.

(3) Every dealer, who has more than one place of business within the State, liable to be registered under sub-section (1) of section 25 shall declare one of such places of business as the principal place of business and make an application in Form VAT-101 to the registering authority under whose jurisdiction such principal place of business is situated.

(4) A dealer or a person making application for registration under sub-rule (1), sub-rule (2) or sub-rule (3) may, on his option, furnish such application to the registering authority, as specified under sub-rule (6), under whose jurisdiction the place of business is situated :

Provided that all applications for registration under sub-rule (1), sub-rule (2) and sub-rule (3), received in the Assessment Unit or circle shall, after initial processing, be submitted to the appropriate registering authority as specified in sub-rule (6).

(5) For the purpose of making an application for registration under this rule, a warehouse or godown, where no books of account are kept, shall not be deemed to be a place of business.

(6) Registering authority as referred to in this rules shall means-

(a) registering authority of the circle in respect of the dealers liable to pay turnover tax under section 16 ;

(b) registering authority of the range in respect of dealers liable to pay VAT under section 14 or 15.

(c) registering authority of the range in respect of any person, who applies for grant of voluntary registration under sub-section (1) of section 26.

(7) Every dealer registered under the repealed Act, whose certificate of registration remains valid on the date immediately preceding the appointed day and who is liable to pay tax under the Act, shall be deemed to be a registered dealer under sub-section (5) of section 25:

Provided that, where a dealer has more than one place of business in the State, he shall be issued with one certificate of registration in respect of the principal place of business or such other place of business, as may be determined as appropriate by the registering authority in accordance with proviso to sub-section (5) of section 25.

(8) Every dealer, who is deemed to be registered under sub-section (5) of section 25, shall furnish information and declarations in Form VAT-1 to the appropriate registering authority as specified under sub-rule (6), within thirty days from the appointed day.

(9) The application for registration in Form VAT-101 shall be accompanied with fee as specified in rule 125 and declarations:-.

(a) in respect of the address of additional places of business, branch offices, warehouses or godowns situated inside the State in Form VAT-101-A.

(b) in respect of the address of additional places of business, branch offices, warehouses or godowns situated outside the State in Form VAT-101-B.

(c) in respect of the personal details of the proprietor, each of the partners, directors, authorised officer or karta of the business in Form VAT-101-C, affixing thereto two sets of specimen signature and two copies of self-signed passport size photographs of :

(i) the proprietor, in case the applicant is a proprietorship concern;

(ii) the partners (each of the partners individually), in case the applicant is a partnership firm;

(iii) the managing director, director or the officer duly authorised by the Board of Directors through a resolution, in case the applicant is a company incorporated under the Companies Act, 1956;

(iv) the president, secretary or duly authorised officer, in case the applicant is an association of persons;

(v) the karta, in case the applicant is a Hindu Undivided Family; and the said form shall be duly filled in, signed individually by the aforesaid person(s), as applicable, and verified in the manner specified in the form.

(d) in respect of the bona fides of the applicant by two registered dealers;

(e) in respect of name and address alongwith the signature of the manager or employee of the business or any other person associated with the business in Form VAT-101-D, who have been authorised to receive notice, order or communication under the Act and these rules on behalf of the dealer and the service of such notice, order or communication on whom, shall be binding on the dealer:

Provided that any change in the information furnished in Form VAT-101-D shall be intimated to the registering authority within seven days from the date of occurrence of such change and the intimation shall be accompanied by a fresh declaration in Form VAT-101-D incorporating therein such changes.

16. Registration of dealers under special circumstances. –

(1) Where a dealer has no fixed place of business in the State but sells or supplies or purchases goods either direct or through travelling agents, salesmen or having one or more place(s) of business in the State, sells, supplies or purchases goods in circles or ranges, other than those in which such place(s) of business are situated, the Commissioner may, notwithstanding anything contained in these rules, by general or special order in writing, direct that such dealer shall be registered in a circle or range constituted by the Government and specified by him in such order

(2) A dealer shall make an application in form VAT-101 to the Commissioner for registration under sub-rule (1)

(3) Where the Commissioner, after causing such enquiries as he deems necessary, is satisfied that the application is correct and complete with the information and declaration as required therein or may have been required in course of such enquiries have been furnished, may, by order, under sub-rule (1), direct the dealer to be registered in the circle or range as specified in that order.

(4) The registration of the dealer under sub-rule (1) shall be subject to the provisions of rules 15, 18 and 24.

17. Failure to be registered. –

(1) If a dealer liable to pay tax under the Act fails to get himself registered under sub-rule (1) of rule 15, the registering authority shall issue him a notice to show cause in Form VAT-111 and, after hearing him, impose penalty under sub-section (1) of section 28.

(2) Where penalty under sub-section (1) of section 28 is imposed on the dealer for failure to get registered under sub-rule (1), the registering authority shall issue a notice of demand in Form VAT-313 along with the order imposing penalty.

18. Issue of certificate of registration. –

(1) Where the registering authority, after examination of the application for grant of certificate of registration and after conducting or causing to be conducted such enquiries as he deems necessary, is satisfied that the applicant

(i) is a bona fide dealer;

(ii) has furnished correct and complete particulars, information, evidence and declarations as specified in rule 15 or as may have been required;

(iii) has duly complied with any directions given;

(iv) has filled in the application for registration correctly and completely and has paid the prescribed fee;

(v) has paid the dues payable by him in respect of any business under the provisions of the Act or repealed Act or Central Sales Tax Act, 1956; and

(vi) has paid in full, the security if any, demanded under rule 24, or any person associated with him was earlier granted a certificate of registration either under the Act or under the repealed Act, and the grounds for which such certificate was cancelled, no longer exists, he shall register the dealer and issue him a certificate of registration.

(2) Where a dealer is deemed to be a registered dealer under the Act in accordance with sub-rule (7) of rule 15, the registering authority of the circle or range, as the case may be, shall register and issue him a certificate of registration and the certificate of registration so issued shall be effective from the appointed day.

Provided that where a dealer registered under section 9-C of the repealed Act is deemed to be registered under the Act, the registering authority of the range shall issue him a certificate of registration, and the certificate of registration so issued shall remain in force till the expiry of the period of validity of registration under the repealed Act.

(3) The certificate of registration in respect of a dealer liable to pay tax under clause (a) of section 9 shall be in Form VAT-103 and the certificate of registration in respect of dealers liable to pay tax under clause (b) of section 9 shall be in Form VAT 001.

(4) The certificate of registration in respect of a person, who has been granted voluntary registration under sub-section (1) of section 26 shall be in Form VAT-103.

(5) The certificate of registration granted under sub-rule (1) shall be in force for such period as may be specified therein:

Provided that for good and sufficient reasons to the satisfaction of the registering authority, the period for which the registration is in force can be extended, but in no case such extension shall be allowed beyond a period of one year at a time.

(6) A dealer, who has been granted voluntary registration under sub-rule (1) shall, on commencement of commercial production, intimate in writing to the registering authority of the range along with the certificate of registration issued for endorsement of the date of such production.

19. Assignment of Taxpayers’ Identification Number (TIN) and Small Retailers Identification Number (SRIN) . –

(1) Every dealer, who has been issued with a certificate of registration in Form VAT-103, shall be assigned with a Taxpayers’ Identification Number (hereinafter referred to as TIN) and this number shall be mentioned in the certificate of registration.

(2) Every dealer, who is deemed to be registered under sub-section (5) of section 25 and has already been assigned with TIN under the repealed Act, shall not be assigned with any fresh TIN and the TIN so assigned shall be mentioned in the certificate of registration:

Provided that where a dealer is deemed to be registered under sub-section (5) of section 25 and has not been assigned with a TIN under the repealed Act, he shall be assigned, subject to the provisions of sub-rule (1) with a TIN and shall be mentioned in the certificate of registration.

(3) The TIN shall be of a unique number comprising eleven numerals, the first two numerals representing the State code and it shall be mentioned prominently on each tax invoice, return, documents relating to inter-state transactions, exports and all correspondences with any Sales Tax authority, the Commissioner or the Tribunal, as the case may be.

(4) Every dealer, who has been granted certificate of registration in Form VAT- 001, shall be assigned with a Small Retailers’ Identification Number (hereinafter referred to as SRIN) and this number shall be mentioned in the certificate of registration.

(5) The SRIN shall comprise seven numerals, the first two numerals representing the circle code.

(6) A dealer referred to in sub-rule (4) shall mention his SRIN in all retail invoices issued, returns furnished and all correspondences with any Sales Tax authority, the Commissioner or the Tribunal, as the case may be.

(7) A dealer deemed to be registered under sub-rule (7) of rule 15 shall be assigned with a TIN or SRIN, subject to the provisions of sub-rules (1), (2) and (4).

20. Certificate of Registration not transferable. –

No certificate of registration issued under sub-rule (1) or (2) of rule 18 and TIN and SRIN assigned under sub-rule (1), (2) or (4) of rule 19 shall be transferred.

21. Issue of certificate of registration to the dealer. –

The registering authority shall provide the dealer with a certificate of registration for the principal place of business and a copy of it for each of the additional place of business specified therein.

22. Display of certificate of registration. –

The certificate of registration shall be kept and displayed at a conspicuous place in the principal place of business and additional place of business to which it relates.

23. Issue of duplicate copy of certificate of registration. –

(1) Any dealer may, upon application, obtain from the registering authority, on payment of a fee as specified in rule 125, a duplicate copy of the certificate of registration issued in his favour which may have been lost, destroyed or mutilated.

(2) Where a dealer makes an application for a duplicate copy of the certificate of registration under sub-rule (1), he shall surrender alongwith the application, the mutilated copy of such certificate of registration or file an affidavit swearing therein the circumstances under which the certificate of registration was lost or destroyed and in case of loss, the steps taken to recover the same.

(3) The loss of any certificate of registration shall be reported to the registering authority soon after the loss comes to the knowledge of the dealer and the fact of loss shall be widely publicised in local daily newspapers.

24. Demand of security. –

(1) The registering authority, for good and sufficient reasons and for ensuring lawful conduct of a registered dealer and safe custody of waybills or any other forms issued under the Act and these rules may require such dealer, to pay within fourteen days from the date of receipt of the notice in Form VAT-104, a reasonable security or additional security as demanded for the purpose.

(2) The registering authority, for good and sufficient reasons may, require a dealer, who has applied for registration under the Act to pay, within fourteen days, from the date of receipt of the notice demanding security in Form VAT-104, to pay reasonable security.

(3) The security or additional security as referred to in sub-rule (1) and sub-rule (2), shall not exceed the tax estimated to be payable by the dealer for one year.

(4) A dealer may furnish security as required under sub-rule (1) or (2) in any of the following manners :

(a) by depositing as security in the Government Treasury, the amount fixed by the said authority; or

(b) by depositing security amount in the Post Office Savings Bank and pledging the Pass Book and depositing it with the said authority; or

(d) by mortgaging immovable property free from all encumbrances whatsoever, in favour of such authority for the amount of security demanded.

(5) Any security furnished under the repealed Act by a dealer, deemed to have been registered under the Act, shall be deemed to be security for the purposes of the Act:

Provided that any additional security demanded under sub-rule (1) shall be in addition to the security as referred to in this sub-rule.

25. Adjustment of security for the satisfaction of arrear of tax etc. –

The registering authority may, at any time, adjust security paid under sub-rule (1) or (2) of rule 24 for satisfaction of any amount of tax, interest or penalty or composition money, if any, or any other amount under the Act and these rules, remaining unpaid.

26. Refund of security. –

(1) If for any reason and subject to the provisions of rule 25, the security or part thereof, paid under sub-rule (1) or (2) of rule 24, is required to be refunded to the dealer, the said dealer shall make an application to the registering authority in Form VAT -105.

(2) The registering authority, on receipt of such application, shall conduct or cause to be conducted such enquiries as he deems necessary, and if he is satisfied that the dealer is not in default of any dues under the Act and these rules, he may order release of the security held under pledge and return the document to the dealer on receipt of proper acknowledgement.

(3) Where the registering authority is satisfied after conducting or causing to be conducted enquiries as referred to in sub-rule (2) that the dealer is in default of any amount of tax, interest or penalty or composition money or any other amount under the Act and these rules, he may adjust the security paid for the satisfaction of such outstanding arrear dues and release the balance, if any, to the dealer, after receipt of proper acknowledgment.

27. Transition of registered dealers paying turnover tax to registration for payment of VAT. –

(1) Where a registered dealer, who has been granted certificate of registration under sub-rule (1) of rule 18 and has been assigned with SRIN under sub-rule (4) of rule 19, –

(a) elects, by exercising option in writing, to pay VAT as specified in clause (a) of section 9,

(b) intends to purchase or sale goods in course of inter-State trade or commerce;

(d) whose gross turnover of sales exceeds rupees 10 lakh at any time during the year in which he has been paying turnover tax, he shall make an application in Form VAT-106 to the registering authority of the range for issue of certificate of registration and assignment of TIN under sub-rule (1) of rule 19.

(2) Where the registering authority of the range, after examination of the application furnished under sub-rule (1) and, after conducting or causing to be conducted such enquiries, as he may deem necessary, is satisfied that the particulars furnished in the application are correct and complete and the claim of the dealer for assignment of TIN is admissible under the Act, he may issue a certificate of registration to such applicant in Form VAT-102 and assign him with a TIN:

Provided that when the certificate of registration under this sub-rule is issued, the certificate of registration already issued in Form VAT-001 alongwith the SRIN assigned shall be deemed to have been cancelled and such cancellation shall take effect from the date, the dealer is registered under sub-rule (2):

Provided further that a dealer on being registered under sub-rule (2) shall surrender the certificate of registration issued in Form VAT-001 along with the SRIN assigned to the registering authority of the circle for cancellation.

(3) If it comes to the knowledge of the registering authority of the circle that any of the events as specified in sub-rule (1) has occurred for which, the dealer is no longer liable to pay turnover tax as specified in clause (b) of section 9 and that the dealer has failed to make an application under sub-rule (1), the said authority shall recommend issue of a certificate of registration in Form VAT-103 along with a TIN, to the registering authority of the range.

(4) Where the registering authority of the range, after conducting or causing to be conducted such enquiries as he may deem necessary, is satisfied that the dealer is liable to pay VAT as specified in clause (a) of section 9, he shall issue him a certificate of registration in Form VAT-103 and assign him with a TIN and the certificate of registration issued in Form VAT-001 along with the SRIN assigned to him shall be deemed to have been cancelled from the date of issue of such certificate of registration:

Provided that the dealer registered under this sub-rule, shall surrender the certificate of registration issued in Form VAT-001 along with the SRIN assigned to the registering authority of the circle for cancellation.

(5) The certificate of registration granted under sub-rule (2) or sub-rule (4) shall be effective from the date of order granting such registration and input tax credit shall be allowed from that date.

28. Transition of works contractors paying VAT to payment of tax by composition. –

Where a dealer being a works contractor is granted permission for payment of tax by way of composition under sub-rule (6) of rule 8, the certificate of registration issued in Form VAT-103 and TIN assigned shall be deemed to have been cancelled from the date of grant of such permission and a certificate of registration in Form VAT-001 along with SRIN shall be assigned by the registering authority of the circle from such date:

Provided that a dealer issued with certificate of registration in Form VAT-001 and assigned with SRIN under this rule, shall surrender the certificate of registration in Form VAT-103 along with TIN to the registering authority of the range for cancellation.

29. Amendment of certificate of registration. –

(1) Where a registered dealer effects or comes to know of any change as specified in sub-section (1) of section 32, he shall, within fourteen days, from the date of occurrence of the change or the change coming to his knowledge, intimate such change in Form VAT-108 alongwith the certificate of registration to the registering authority of the circle or range, as the case may be, for amendment of the certificate of registration.

(2) Where there is reconstitution of the partnership, in case of a partnership firm, and as a result of such reconstitution, the business-entity remains unchanged, the application under sub-rule (1) shall be accompanied with a copy of the deed of reconstitution of the partnership.

(3) The registering authority, upon receipt of an application under sub-rule (1), shall examine the application, conduct or cause to be conducted such enquiries as he deems necessary, and if he is satisfied that the application is correct and complete and that the amendment of the certificate of registration as applied for is in conformity with the provisions of section 32, the said authority shall allow such amendment:

Provided that where there is reconstitution of the partnership, in case of a partnership firm, by admitting new partners, the amendment of the certificate of registration shall be subject to the provisions of clause (c) of sub-rule (9) of rule 15 and sub-rule (1) of rule 18.

(4) Where a certificate of registration is amended, a fresh certificate of registration incorporating the changes, in respect of which, the amendment has been effected, shall be issued and the certificate of registration submitted by the dealer shall be cancelled.

(5) Where a fresh certificate of registration consequent upon amendment under sub-rule (4) is issued, the date of amendment of the certificate of registration shall be mentioned on the certificate of registration issued.

(6) Where a dealer intends to change his principal place of business from the jurisdiction of one registering authority to the jurisdiction of another registering authority, he shall make an application in Form VAT -108, with full particulars of change in address and the reasons for such change, to the registering authority, under whose jurisdiction, he is registered.

(7) The registering authority, upon receipt of an application under sub-rule (6), shall conduct or cause to be conducted such enquiries, as he deems necessary, and if he is satisfied that such change is bona fide and amendment of the certificate of registration is justified under the Act and these rules, the said authority shall send the registration record of the dealer to his counterpart, to whose jurisdiction the principal place of business has been shifted or changed.

(8) The registering authority, on receipt of the registration record of a dealer, who had made application under sub-rule (6), shall conduct or cause to be conducted such enquiries as he deems necessary, and if he is satisfied that there has actually been a change and the change is bona fide, he shall amend the registration certificate incorporating such amendment or issue a fresh registration certificate, but with the same TIN.

(9) If any registered dealer sells or disposes of his business or place of business to any person or any other registered dealer, he shall inform the registering authority, under whose jurisdiction he is registered, in Form VAT-109, within fourteen days from the date of the sale or disposal of the business.

30. Cancellation of certificate of registration. –

(1) Where a registered dealer –

(a) discontinues his business or transfers his business to a dealer, registered under the Act; or

(b) being an incorporated body ceases to exist; or

(d) being a firm or association of persons is dissolved; or

(e) ceases to be liable to pay tax under the Act, he shall make an application together with the registration certificate issued for cancellation thereof to the registering authority of the circle or range, as the case may be, within a period of fourteen days from the date of occurrence of such event.

Explanation. – The expression “ceases to be liable to pay tax under the Act” as referred to in clause (e) shall be construed in accordance with the provisions of sub- section (2) of section 10.

(2) Where the registering authority, after conducting or causing to be conducted such enquires, as he deems necessary, is satisfied that the business has been discontinued or closed as a result of the occurrence of any of the events specified in sub-rule (1), he shall, by an order in writing, cancel the certificate of registration with effect from the date specified in that order.

(3) In the event of death of a dealer being the proprietor of the business registered under the Act, the legal heir shall, within fourteen days from the date of death, inform in writing, the registering authority of the circle or range, as the case may be, the date of his death and produce before such authority such evidence, as may be required, and the registering authority either on receipt of such application, or otherwise, cancel the certificate of registration immediately by an order in writing from the date specified in that order.

31. Cancellation of certificate of registration on failure to make payment of the security demanded. –

If a registered dealer fails to make payment of security in terms of the demand notice issued under sub-rule (1) or (2) of rule 24, the registering authority, after giving the dealer a reasonable opportunity of being heard, may order cancellation of registration with effect from a date to be specified in that order.

32. Suspension of certificate of registration. –

(1) Where a dealer commits one or more of the offences as specified under sub-section (1) of section 30, the registering authority may suspend the registration of such dealer.

(2) Where the registration of any dealer has been suspended, such dealer shall be immediately intimated the fact of suspension of registration with a direction, by notice in Form VAT-110, to produce records, documents and evidence as specified in sub-section (2) of section 30, on such date, time and place as may be mentioned in the said notice.

(3) Where the certificate of registration suspended, is restored in accordance with sub-section (3) of section 30, the restoration shall take effect from the date of order restoring the certificate of registration.

(4) Where the certificate of registration suspended is cancelled in accordance with the provision of sub-section (5) of section 31, the cancellation shall take effect from the date of order of such cancellation.

(5) In all cases, where the certificate of registration is suspended, restored or cancelled, the registering authority shall display the fact in the office notice board, publish such fact in the Commercial Tax Gazette and the official website of the Commissioner of Commercial Taxes, Orissa.

33. Publication of list of registered dealers/certificate of registration cancelled/suspended/restored in the Orissa Commercial Taxes Gazette. –

Publication of the list of registered dealers/certificate of registration cancelled/suspended/restoration of suspended certificate of registration shall be made in the following formats:--

I. Dealers registered under the Act during the month of---------

A. In case of dealers assigned with TIN

Sl. No	Name and address of the dealer	Location of principal place of business	Location of branch/additio nal place(s) of business	TIN (Section under which registered)	Date from which the registration is effective	Goods covered by the dealers’ certificate of registration	Remark s
1	2	3	3	5	6	7	8

B. In case of dealers assigned with SRIN

Sl.No.	Name and address of the dealer	Location of place of business	SRIN(Section under which registered)	Date from which registration is effective	Description of goodspurchased for resale	Remarks
1	2	3	4	5	6	7

II Suspension of Certificate of registration.

A. In case of dealers assigned with TIN

Sl.No.	Name and address of the dealer	Location of the principal place of business	Location of branch/additional place of business	TIN	Date of suspension of registration	Date from which the suspension takes effect	Section under which suspended	Remarks
1	2	3	4	5	6	7	8	9

B. In case of dealers assigned with SRIN

Sl.No

Name

and

address

the

dealer

Location of the

principal

Place of

business

Location

of Branch /additional

place of business

SRIN

Date of

cancellation

of registration

Date from which the

cancellation

takes effect

Section

under

which

cancelled

Remarks

III. Restoration of suspended certificate of registration.

A. In case of dealers assigned with TIN

B. In case of dealers assigned with SRIN

Sl.No.	Name and address of the dealer	Location of the principal place of business	Location of branch/additional place of business	TIN	Date of suspension of registration	Date from which the suspension takes effect	Date of restoration of certificate of registration	Date from which the restoration takes effects	Remarks
1	2	3	4	5	6	7	8	9

Sl.No.	Name and address of the dealer	Location of the principal place of business	Location of branch/additional place of business	SRIN	Date of suspension of registration	Date from which the suspension takes effect	Date of restoration of certificate of registration	Date from which the restoration takes effects	Remarks
1	2	3	4	5	6	7	8	9

IV. Cancellation of certificate of registration

A. In case of dealers assigned with TIN B. In case of dealers assigned with SRIN

Sl.No .	Name and address of the dealer	Location of the principal place of business	Location of branch/additional place of business	TIN	Date of cancellation of registration	Date from which the cancellation takes effect	Section under which cancelled	Remarks
1	2	3	4	5	6	7	8	9

Sl.No .	Name and address of the dealer	Location of the principal place of business	Location of branch/additional place of business	SRIN	Date of suspension of registration	Date from which the suspension takes effect	Section under which suspended	Remarks
1	2	3	4	5	6	7	8	9

CHAPTER – V

RETURN AND RETURN DEFAULTS

34. Tax return. –

(1) Every dealer registered under sub-rule (1) of rule 18 and assigned with TIN under rule 19 shall furnish return for each tax period in Form VAT-201 to the assessing authority of the circle or range, as the case may be, where he is registered, within twenty-one days from the date of expiry of such tax period.

(2) For the purpose of sub-rule (1), each tax period shall ordinarily comprise a month.

(3) The Commissioner may for reasons to be recorded in writing, specify by notification, any different period as the tax period in respect of any dealer or class or classes of dealers:

Provided that a dealer, who is deemed to be registered under sub -section (5) of section 25 required to file return in respect of each month under the repealed Act, shall continue to file return under sub-rule (1) in respect of each month.

(4) Where the dealer has more than one place of business under the jurisdiction of different registering authorities and has been issued with certificate of registration in respect of the principal place of business, he shall furnish a consolidated return in respect of all the places of business to the assessing authority of the circle or range, as the case may be, under whose jurisdiction such principal place of business is situated.

(5) If the Commissioner is satisfied that a dealer furnishing return under sub-rule

(4) has failed to maintain books of account in respect of any or more places of business or the return furnished is found to be incorrect and incomplete or for any violation of provisions of the Act or these rules, he may direct such dealer by order, to furnish separate return in respect of each of his place of business.

(6) Every dealer registered under sub-rule (1) of rule 18 and assigned with SRIN under sub-rule (4) of rule 19, shall furnish return in Form VAT-002 for each tax period comprising a quarter within twenty-one days from the date of expiry of the quarter.

(7) Every dealer deemed to be registered under sub-rule (7) of rule 15 shall furnish return for each tax period in accordance with sub-rule (1) or (6), as may be applicable.

(8) The return under sub-rule (1) shall be filed in the range and the return under sub-rule (6) shall be filed in the circle, where the dealer is registered:

Provided that for the convenience of the dealer, a return under sub-rule (1) may be furnished to the Assessment Unit or circle under whose jurisdiction the place of business of the dealer is situated, and the concerned Assessment Unit or circle, on receipt of such return, and after preliminary processing shall submit it to the range.

(9) If there is change in the rate of tax of any goods in which the dealer deals in during a tax period, a separate return in respect of each part of the tax period showing the application of such different rates of tax shall be furnished.

(10) Where the business of a dealer, filing return under sub-rule (1)or (6) is closed down or ceases to function or the registration certificate of the dealer is cancelled during the course of the tax period, a final return in Form VAT-202 for the period during which the business was in operation during that tax period, shall be furnished

(11) The final return under sub-rule (10) shall be furnished within fourteen days from the date of closure or cessation of the business.

(12) For the purpose of this rule, the assessing authority shall mean –

(a) the assessing authority of the circle in respect of dealers, who have been granted registration under sub-rule (1) of rule 18 and assigned with SRIN under sub-rule (4) of rule 19.

(b) the assessing authority of the range in respect of dealers, who have been granted registration under sub-rule (1) of rule 18 and assigned with TIN under sub-rule (1) of rule 19.

35. Payment of tax. –

(1) The return under sub-rule (1) or (6) of rule 34 shall be accompanied by a receipt from the Government Treasury or a crossed demand draft drawn on any scheduled bank or a banker’s cheque issued by a scheduled bank in favour of the Assistant Commissioner or the Sales Tax Officer, of the range or circle, as the case may be, for the full amount of tax payable as per the return.

(2) Where a registered dealer furnishes a return under sub-rule (1) or (6) of rule 34, without a receipt from Government Treasury or demand draft or banker’s cheque for full payment of tax payable for the tax period, a notice in Form VAT-203, shall be served upon such dealer for payment of the tax due as per the return furnished and the registered dealer shall pay the amount of tax defaulted or file the overdue return within the time specified in that notice.

36. Notice to un-registered dealer to file return. –

(1) Where the Commissioner is satisfied that the turnover of sales or turnover of purchases, as the case may be, of a dealer, exceeded or likely to exceed the taxable limit within such period as referred to in sub-section (2) of section 33, he shall issue a notice to such dealer in Form VAT -204 to file return for such tax period and from the date the dealer is liable or likely to be liable to pay tax, as may be specified in that notice.

(2) If the dealer referred to in sub-rule (1) fails to furnish the return, as required under sub-rule(1), the Commissioner shall refer the case to audit for survey and fixation of liability to pay tax under section 10.

37. Return in respect of the period from the date of liability to the date immediately before the date of order granting registration. –

Where a certificate of registration is issued to the dealer under sub-rule (1) of rule 18 and the date of liability to pay tax by such dealer precedes the date of order granting such certificate of registration, the dealer, after being registered, shall, within twenty-one days from the date of order, furnish all the returns under sub-rule (1) or (6) of rule 34 along with receipted challan or crossed demand draft or banker’s cheque evidencing payment of tax payable by such dealer according to such returns for the period, comprising the tax period or tax periods or any part thereof, as the case may be, commencing from the date of liability to pay tax to the date immediately preceding the date of order granting registration.

38. Payment of interest for delayed payment of tax or non-payment of tax as per returns furnished before assessment. –

(1) Every dealer required to pay interest under sub-section (1) of section 34, in respect of any tax period, shall pay such interest at the time of making payment of tax, payable in respect of such tax period, or the date of assessment, whichever is earlier.

(2) The dealer shall furnish a statement showing details of calculation of the amount of interest payable as referred to in sub-rule(1) and furnish such statement along with the receipted challan or crossed demand draft or banker’s cheque evidencing payment of such interest.

39. Levy of penalty for default of payment of tax and interest payable. –

(1) Where a dealer fails to make payment of the tax due and interest thereon along with the return or revised return furnished for any tax period, a notice in Form VAT-205, requiring such dealer to show cause within fourteen days from the date of receipt of the notice, shall be served upon him.

(2) Where the dealer fails to respond to such notice or explain the default in payment of tax or interest or both to the satisfaction of the authority issuing the notice under sub-rule (1), penalty shall be imposed under sub-section (2) of section 34 and an order shall be issued in Form VAT-206.

(3) The penalty imposed under sub-rule (2) shall be paid by way of a receipted challan from the Government Treasury or crossed demand draft or banker’s cheque, in favour of the Assistant Commissioner or Sales Tax Officer of the range or circle, as the case may be.

40. Scrutiny of returns. –

(1) All the returns received under rule 34 shall be subject to manual or system-based scrutiny.

(2) If as a result of such scrutiny, the dealer is found to have made payment of tax, less than what is payable by him for the tax period, as per the return furnished, the assessing authority shall issue a notice in Form VAT-209 to the dealer directing him to pay the balance tax and interest thereon by such date as may be specified in that notice.

CHAPTER VI

AUDIT, ASSESSMENT, RECOVERY OF TAXAND REFUND

41. Selection of dealers for tax audit. –

(1) The Commissioner shall, under the provision of section 41, select by the 31^st of January or by any date before the close of every year, commencing from the appointed day, not less than twenty per cent of registered dealers for audit during the following year, by random selection with or without the use of computers:

Provided that for the year commencing with the appointed day, the selection of dealers for audit under this sub-rule shall be made by the 30^thof September of that year.

(2) The Commissioner, where considers it necessary to safeguard the interest of revenue or where any enquiry is required to be conducted on any specific issue or issues relating to any dealer, or class or classes of dealers, on being referred by an officer appointed under sub-section (2) of section 3, may direct audit to be taken up.

(3) The Commissioner may, on the basis of apparent revenue risk of the individual dealers, make selection of dealers for special or investigation audit. The revenue risk may be determined on objective analysis of the risk parameters or on receipt of intelligence or information, regarding evasion of tax.

(4) For the control of large taxpayers, the Commissioner may, plan audit checks across the totality of the business of such dealers, within an audit cycle of two years.

42. Notice for audit. –

All audits except those provided under sub-rule (3) of rule 41 shall be with prior notice to the dealer:

Provided that the Commissioner, for good and sufficient reasons may, dispense with prior notice for tax audit under rule 41 in respect of any specific dealer or class or classes of dealers.

43. The tax audit to be conducted by an audit team. –

The tax audit under rule 41 shall be undertaken by a team constituted for the purpose and such audit team may consist of one or more Assistant Commissioner, Sales Tax Officer and Assistant Sales Tax Officer, as the Commissioner may deem fit.

44. Place of tax audit. –

(1) The audit shall ordinarily be taken up in the place of business of the dealer and the dealer shall render all necessary assistance, produce all accounts, documents, records and also allow access to the accounts, if any, maintained electronically, as may be required by the officers conducting audit.

(2) Subject to the provisions of rule 42, where tax audit is conducted under sub-rules (1), (2) and (4) of rule 41, the dealer shall be given prior notice in Form VAT -301, intimating the date and time, when the audit is proposed to be conducted, and the dealer shall be required to produce all accounts and records, as may be required, and extend all cooperation to the audit team for smooth conduct of audit.

(3) Where audit of a dealer is proposed to be taken up under sub-rule (3) of rule 41, prior approval of the next higher authority shall be taken:

Provided that when the audit visit is required to be made in course of an investigation or where there is reasonable apprehension that delay may lead to the disposal of the stock-in-trade or removal or destruction of books of account, records and documents, the approval of next higher authority shall be taken post-facto, within twenty-four hours of the completion of such visit or return to headquarters, after completion of the audit, whichever is later.

45. Scope of tax audit. –

(1) Tax audit shall comprise verification of all records, documents, books of account including electronic record, relating or incidental to the business of the dealer, computation of input tax credit as admissible, calculation of output tax charged, physical verification of stock-in-trade, collection of sample of goods and examination of such other records and documents, as may be required, to determine the actual tax liability of the dealer.

(2) A dealer, who fails to produce any account, record or document in course of the audit, shall if the officer-in-charge of the audit team so requires by notice in Form VAT-302, produce such accounts, records and documents in the office on the date and time specified in that notice.

(3) Audit visit report in Form VAT -303 shall be submitted by the officer-in-charge of the audit team conducting audit to the assessing authority within seven days of the completion of the audit.

46. Audit to facilitate voluntary tax compliance. –

The audit team, during any audit visit, shall explain the provisions of the Act and these rules so that the dealer does not face any difficulty in maintenance of books of account and due discharge of tax liability.

47. Provisional assessment. –

(1) Where a dealer fails to file return or files return not accompanied by proof of payment of full amount of tax, for any tax period, within such period as specified in rule 34, the assessing authority may assess the dealer provisionally under section 40.

(2) Where a provisional assessment under sub-rule (1) is made, the assessing authority shall serve upon the dealer a notice in Form VAT -304 showing the amount of tax assessed, interest levied and penalty imposed, which such dealer shall be required to pay within thirty days from the date of receipt of the notice and produce evidence thereof within seven days from the date of payment.

48. Self assessment. –

(1) Where a dealer files return for a tax period within the period specified in rule 34 and the return is found to be correctly and completely filled in, and there is no arithmetical mistake apparent on the face of such return, the said return shall be accepted as self-assessed.

(2) Where there is any arithmetical mistake apparent on the face of such return and such mistake can be reconciled without any reference to the dealer to whom the return relates, such return may accordingly be rectified and the rectification so made may be intimated to that dealer in Form VAT-305 for information.

(3) If the rectification as intimated to the dealer under sub-rule (2) is not accepted by the dealer, he may, within seven days from the date of receipt of such intimation, file an application stating therein the correct position along with reasons for occurrence of such mistake, to the assessing authority, and if such authority is satisfied, the return referred to in sub-rule (2) shall be accepted as self-assessed.

(4) Where the arithmetical mistake apparent on the face of the return furnished for a tax period remains un-reconciled, such mistakes shall be intimated to the dealer to whom the return relates in Form VAT-305 for necessary rectifications within fourteen days from the date of receipt of the intimation and if the assessing authority of the circle or range, as the case may be, is satisfied that the mistake is bona fide and not deliberate, such authority shall accept the return as self-assessed.

(5) Where the dealer fails to rectify the mistake as intimated under sub-rule(4) within the time specified in that sub-rule or the mistakes are found to be deliberate with an intention to evade tax or attempt to evade tax, the return, wherein the mistakes are found, shall be referred to audit under section 41.

49. Audit assessment. –

(1) If the tax audit conducted under section 41 results in findings, which the assessing authority considers to be affecting the tax liability of a dealer for a tax period or tax periods, such authority shall serve a notice in Form VAT-306 along with a copy of the audit visit report, upon such dealer, directing him to appear in person or through his authorized representative on such date, time and place, as specified in the said notice for compliance of the requirements of sub-rules (2) and (3).

(2) The assessing authority may, in the notice referred to in sub-rule (1), require the dealer

(a) to produce the books of account maintained under the provisions of the Act and these rules;

(b) to furnish records and documents required to be maintained under the Act and these rules claiming exemption or concession in the payment of input tax, output tax and input tax credit, as may be applicable;

(d) to explain the books of account, other accounts, records, documents or information referred to in clauses (a), (b) and (c), on the date and at the time specified in the notice.

(3) In addition to the accounts and documents referred to in sub-rule (2), a dealer, if so desires, may produce such other evidence and document in support of his claim preferred in his returns or any objection he wishes to raise.

(4) The assessing authority, while hearing the dealer on the date specified in the notice referred to in sub-rule (1) or on any date to which the hearing is adjourned, for making an assessment of tax payable by him, shall –

(a) consider the objection, if any, preferred by such dealer and examine the evidence in support thereof; and

(b) examine the accounts, documents, records or any other evidence furnished under sub-rule (2):

Provided that not more than three adjournments shall be granted to a dealer for hearing his case.

(5) In course of hearing of the assessment proceeding, the assessing authority may,

(a) examine such records, registers or documents, which are required to be maintained by the dealer by or under the Act and the rules; or

(b) call for such information or evidence from the dealer or any person as deemed necessary; or

(6) The assessing authority shall, after hearing the dealer in the manner specified in sub-rules (2), (3), (4) and (5), assess to the best of judgment, the amount of tax payable by a dealer in respect of a tax period or tax periods for which the assessment proceeding has been initiated, and impose penalty under sub-section (5) of section 42.

(7) In the event of default by a dealer to comply with the requirement of the notice referred to in sub-rule (1), the assessing authority may make to the best of judgment, an exparte assessment of the tax payable by such dealer in respect of such tax period or tax periods and pass an order of assessment, in writing, recording the reasons therein.

50. Assessment of escaped turnover. –

(1) Where a dealer has already been assessed under section 39, 40 or 42 and it is required to reopen the assessment under sub-section (1) of section 43 for occurrence of any or more of the events specified in that sub-section, the assessing authority shall serve a notice in Form VAT -307 upon the dealer.

(2) The hearing of the dealer shall be concluded in accordance with the provisions of sub-rules (2), (3), (4) and (5) of rule 49.

(3) The assessing authority shall, after hearing the dealer in the manner specified in sub-rule (2), assess to the best of judgment, the amount of tax payable by the dealer in respect of a tax period or tax periods, for which assessment proceeding has been initiated, and impose penalty under sub-section (2) of section 43.

(4) In the event of default by a dealer to comply with the requirements of the notice referred to in sub-rule (1), the assessing authority may make, to the best of judgment, an exparte assessment of the tax payable by such dealer in respect of such tax period or tax periods and pass an order of assessment in writing, after recording the reasons therein.

51. Assessment of dealers liable to pay tax under the Act but fails to get registered. –

(1) Where a dealer is liable to pay tax under the Act, but fails to get himself registered, the assessing authority shall serve a notice in Form VAT-308 upon such dealer directing him to appear in person or through his authorised representative on such date, time and place, as may be specified in that notice, and produce or make available, the books of account, evidence, documents, as may be required for assessment of such dealer under sub-section (1) of section 44.

(2) The assessing authority shall, after hearing the dealer, examine such books of account, evidence and records produced or made available and cause such enquiry as he deems necessary, pass order in writing, recording the reasons therein and:

(a) determine the date from which the dealer is liable to pay tax under the Act;

(b) assess to the best of judgment, the tax payable by the dealer in respect of the tax period or tax periods or part thereof, as the case may be, from the date of commencement of such liability; and

(3) In the event of default by a dealer to comply with the requirements of the notice referred to in sub-rule (1), the assessing authority may make to the best of judgment, an exparte assessment of the tax payable and penalty thereon by such dealer in respect of such tax period or tax periods or part thereof, as the case may be, and pass an order of assessment in writing, recording the reasons therein.

52. Assessment of casual dealer. –

(1) A casual dealer shall furnish to the assessing authority of the circle or range, as the case may be, including the officer-in-charge of check post or barrier referred to in section 74, a return of estimated turnover in Form VAT -309:

(a) either on his own motion; or

(b) when called upon to do so by notice, immediately.

(2) The assessing authority referred to in sub-rule (1) or the officer-in-charge of check post or barrier, if he is satisfied, after scrutiny of the accounts of such casual dealer and after making such enquiry, as he may consider necessary, that the return furnished under sub-rule (1), is correct and complete, shall provisionally assess the amount of tax due from him on the basis of such return.

(3) If a casual dealer does not furnish the return as required by the notice referred to in clause (b) of sub-rule (1) or if the return furnished by him appears to the assessing authority of the circle or range, as the case may be, or the officer-in-charge of the check-post or barrier to be incorrect or incomplete, such authority or the officer-in-charge of check-post or barrier shall, after giving the casual dealer a reasonable opportunity of being heard, assess the tax payable by him to the best of judgment.

(4) Every casual dealer shall, within twenty four hours, of arrival in the State, intimate the assessing authority of the circle or range, as the case may be, the address of his residence in the State, the nature of goods in which he intends to deal in, the period during which he intends to carry on business and the date by which, he intends to leave the place in the State in Form VAT -310.

(5) The casual dealer shall furnish a return to the assessing authority of the circle or range, as the case may be, in Form VAT -311, accompanied by a receipted treasury challan for the tax or taxes payable on the basis of the return on or before the last day, on which he intends to leave the place, where he has been carrying on business and the said assessing authority shall, thereupon, assess the tax or taxes payable by such dealer, after being satisfied that the return furnished is correct and complete and after making such enquiries, as he deems necessary.

(6) Where, no return is filed by a casual dealer as required by sub-rule (5) or if the return furnished by him, appears to the assessing authority to be incorrect and incomplete, the said assessing authority shall, assess the tax payable to the best of judgment and issue a notice of demand in Form VAT -313 for the tax due and payable.

(7) For the purpose of this rule, the assessing authority shall mean the assessing authority of the circle or range, under whose jurisdiction, the casual dealer intends to carry on or has carried on business.

53. Order of assessment. –

The assessing authority shall issue the order of assessment in Form VAT -312.

54. Notice of demand. –

(1) In respect of any amount found payable by a dealer under sub-section (4) of section 50, the assessing authority shall serve on the dealer a notice of demand in Form VAT -313 directing the dealer to pay the amount, within thirty days from the date of service of the notice and to produce the proof of payment of such amount within seven days from the date of payment.

(2) If the dealer fails to pay the amount due or has failed to produce the evidence of payment by the due date in accordance with the notice in Form VAT -313, the assessing authority may impose a penalty under sub-section (5) of section 50 and serve a notice in Form VAT-314 directing the dealer to pay the penalty within thirty days from the date of service of the notice the outstanding tax, penalty, interest or any other due under the Act immediately and to produce the receipted challan as proof of payment of such amount within seven days from the date of such payment.

(3) Where the collection of the amount referred to in sub-rule (1) or any part thereof has been stayed on appeal or revision, penalty under sub-section (5) of section 50 may be levied if the amount is not paid and proof of such payment is not produced within a fortnight after the expiry of the period for which, such amount was covered under stay.

(4) Where stay on collection until disposal of appeal or revision has been ordered, the stay period shall be deemed to have expired on the date of disposal of such appeal or revision and where in such cases, the appeal or revision results in a reduction or enhancement in the amount of demand, a revised notice of demand in Form VAT -315 shall be issued directing the dealer to make payment in accordance with such revised notice within fourteen days from the date of service of the notice and to produce the proof of payment thereof within seven days from the date of payment.

(5) No penalty under sub-section (5) of section 50 shall be imposed until the expiry of the time limit specified in the revised notice referred to in sub-rule (4).

55. Notice for special mode of recovery. –

The notice referred to in sub-section (1) of section 51 shall be in Form VAT-316.

56. Assessment case record. –

(1) All the papers relevant to the making of any assessment in respect of any particular dealer shall be kept together and shall form an assessment case record.

(2) Assessment case records shall be preserved for a period of six years or until the assessment reaches its finality, whichever is later.

57. Payment of tax, penalty, interest and any other amount under the Act. –

(1) The amount of, –

(a) tax due, where the returns are furnished without receipt showing full payment thereof; or

(b) tax assessed under sub-section (2) of section 40, sub-section (3) or (4) of section 42, sub-section (1) of section 43 and sub-section (1) of section 44, less any sum paid by the dealer in respect of the tax period; or

(d) the amount of interest levied; or

(e) penalty under sub-section (1) of section 28, sub-section (5) of section 42, sub-section (2) of section 43, sub-section (1) of section 44, sub-section (5) of section 50, sub-section (1) of section 52, sub-section (5) of section 61 and sub-section (13) of section 73; or

(f) interest under sub-section (1) of section 34; or

(g) any other amount due under the Act, shall be paid by the dealer into the Government Treasury or through a crossed demand draft or banker’s cheque drawn in favour of the Assistant Commissioner or the Sales Tax Officer of the circle or range, as the case may be, on any branch of a scheduled bank of that place, where the Government Treasury is situated, within thirty days from the date of service of the notice of demand.

(2) The amount of tax due under section 45 shall be paid in cash to the assessing authority including the officer-in-charge of the check-post or barrier referred to in section 74.

(3) For the purpose of calculating interest and penalty under the Act and these rules, the date of receipt of the crossed demand draft by the Assistant Commissioner or the Sales Tax Officer, as the case may be, shall ordinarily be deemed to be the date of payment by a dealer save in the case of a crossed demand draft is dishonoured.

(4) No payment of any tax, composition money or penalty or interest save as specified in sub-rules (2) and (5), shall be accepted in the office of the Assistant Commissioner or Sales Tax Officer:

Provided that where payment made by a crossed demand draft or Banker’s cheque is furnished along with return in Form-201 or Form -002 for a tax period, such crossed demand draft or banker’s cheque shall be accepted.

(5) The amount of tax and penalty levied under sub-sections (5), (7) and (11) of section 74 and sub-rule (16) of rule 84, shall be paid in cash to the Assistant Sales Tax Officer or the Sales Tax Officer of the R.R. Unit or the officer- in- charge of the check-post or barrier or the Sales Tax Officer, as the case may be.

(6) Any payment into the treasury shall be accompanied by a challan in Form-VAT-317

(7) The challan shall be filled up in quadruplicate and one part of the challan shall be retained in the treasury, one part of the challan shall be sent by the treasury to the Assistant Commissioner or the Sales Tax Officer, as the case may be, and the other two parts shall be returned to the dealer, as a proof of payment.

58. Deposit of the amount of tax deducted from the bills or invoices of the works contractors into the Government Treasury. –

(1) The amount of tax deducted from the bills or invoices of the works contractors, shall be deposited by the person, hereinafter referred to as the deducting authority, into the Government Treasury, within one week from the date of deduction by a challan in Form VAT-317:

Provided that, the deducting authority, at his option, may deposit the amount of tax so deducted from the bill or invoice of the works contractor by crossed demand draft on any scheduled bank in favour of the Sales Tax Officer or Assistant Commissioner of the circle or range, as the case may be.

(2) The challan in Form VAT-317 shall be filled up in quadruplicate, one part of the challan shall be retained by the treasury, one part of the challan shall be sent by the Treasury to the concerned Assistant Commissioner or the Sales Tax Officer, as the case may be, and the remaining two parts shall be returned to the deducting authority.

(3) The deducting authority shall retain one part of the challan and send the other part of the challan to the Assistant Commissioner or the Sales Tax Officer, as the case may be, within whose jurisdiction the work is being executed:

Provided that, if the works contractor concerned is a registered dealer, the receipted challan or crossed demand draft received from the deducting authority shall be taken into account in the circle or range where it is received and, then forwarded to the circle or range under whose jurisdiction such works contractor is registered.

59. Grant of certificate by the deducting authority to the works contractor. –

While making deduction of tax from the bills or invoices of the works contractors, the deducting authority shall grant a certificate to that works contractor in Form VAT-605 and shall send a copy thereof to the Assistant Commissioner or the Sales Tax Officer, as the case may be, within whose jurisdiction the works contract is executed:

Provided that if the works contractor concerned is a registered dealer, the certificate as referred to above shall be forwarded to the circle or range where such works contractor is registered:

Provided further that the deducting authority shall furnish a consolidated statement of deductions made during a month in Form VAT-605-A within fourteen days of the expiry of the month to the Assistant Commissioner or Sales Tax Officer, as the case may be, within whose jurisdiction the works contract is executed.

60. Grant of certificate of no deduction/deduction of tax at source, by the Commissioner to the works contractor. –

(1) The application for grant of certificate of no deduction or deduction of tax under sub-section (5) of section 54, shall be made in duplicate in Part I of Form VAT -606.

(2) The application shall be accompanied by copies of the relevant contract, tender or quotation and other documents on the basis of which the contractor makes his claim for no deduction or deduction of tax at source, as the case may be.

(3) If the particulars and documents furnished by the contractor are correct and complete in all respects and after making such other enquiries, as deemed necessary, the assessing authority is satisfied that the works contract concerned involves both transfer of property in goods and labour or services, or involves only labour and services and justifies deduction of tax or no deduction of tax, as the case may be, he may, after giving the applicant a reasonable opportunity of being heard, grant a certificate in Part II of Form VAT -606, within a period of thirty days from the date of receipt of the application and, shall forward a copy of such certificate to the deducting authority, under whom the work is executed.

61. Intimation for recovery of enhanced tax, penalty and interest. –

If, on the occurrence of any of the events specified in sub-section (8) of section 50, there is enhancement or reduction in the amount of tax, penalty, interest or any other due under the Act, and such enhancement or reduction occurs after the commencement of recovery proceeding under sub-section (7) of section 50, the assessing authority of the circle or range, as the case may be, shall intimate the authority effecting such recovery, the actual amount to be recovered consequent upon such enhancement or reduction, within thirty days from the date of receipt of the order giving rise to the enhancement or reduction.

62. Penalty and forfeiture of unauthorised and excess collection of tax. –

(1) Where any person collects any sum by way of tax under circumstances as specified under clause (a) or (b) of sub-section (1) of section 52, the assessing authority shall serve a notice in Form VAT-615 upon such person.

(2) If there is no response to the notice issued under sub-rule (1) within the date as specified in that notice or the explanation is not found satisfactory the assessing authority shall impose penalty as provided under sub-section (1) of section 52.

(3) When the amount of tax collected under section 35 is forfeited, the assessing authority shall publish a notice in the Commercial Tax Gazette in the following format.

NOTICE

[See rule 62(3)]

Name, address, Registration Number of the person/dealer, making the sale.

Sl.	Name & address of the buyer from whom tax has been collected	Sale Bill	Description	Quantity	Value	Tax	Remarks
No.		No/Date	of goods			charged
		/Date of
		Sale

The buyers as mentioned under column 2 of the above notice are hereby requested to produce evidence in support of the purchases made by them as per details mentioned against their names and claim refund of the tax so collected on the sales within sixty days from the date of publication of this notice.

Assessing Authority,

------------- circle/ range.

63. Credit of unauthorised and excess collection of tax to Consumer Welfare Fund. –

All amounts forfeited under sub-section (4) of section 52 shall be credited to the Consumer Welfare Fund by way of transfer credit to the Head of account, “1456-Civil Supplies-800-Other receipts-9916600-Civil Supplies -Contribution to State Consumer Welfare Fund.”

CHAPTER-VII
REFUND

64. Refund. –

(1) No application is required for sanction of refund arising out of any order of appeal, revision or rectification under the Act and such refund shall be allowed within sixty days of the date of receipt of such order.

(2) Refund sanctioned under sub-rule (1) shall be paid, either through refund adjustment voucher or through refund payment voucher or both.

(3) The refund adjustment voucher shall be in Form VAT -318 and the refund payment voucher shall be in Form VAT –319.

(4) Refund arising out of a return furnished for any tax period subject to exceptions as specified under rule 66, shall be carried forward for adjustment of tax due and payable in subsequent tax period or tax periods, until the expiry of a period of twenty four months, from the end of the year to which that tax period relates.

65. Refund under special circumstances. –

(1) (a) Where any dealer claims refund in the return furnished for a tax period on account of sales as specified in clause

(b) of section 18, he shall make an application in Form VAT -320 to the assessing authority of the circle or range, as the case may be, within thirty days from the date of furnishing such return:

Provided that an application for refund made after thirty days may be admitted by the assessing authority, if he is satisfied that the dealer had sufficient cause for not making the application within the said period.

(b) The application filed under clause (a) of sub-rule (1) shall be accompanied by copies of the purchase order placed by the foreign buyer with the dealer, the agreement with the foreign buyer, bill of lading, letter of credit, and / or evidence of payment made by the foreign buyer and such other evidences as may be required to establish the claim of refund.

(c ) The assessing authority, on receipt of the application for refund along with the documents referred to in clause (b), shall refer the case for tax audit to determine the admissibility or otherwise of the claim of refund.

(d) If the application under this sub-rule is found to be correct and complete and the tax audit finds the claim of refund to be correct and is supported by the required evidences, and after receipt of report of such findings, the assessing authority shall sanction the refund claimed.

(e) Where the tax audit results in assessment, the claim of refund shall be subject to the result of such assessment :

Provided that in calculating the period of ninety days the period taken for completion of assessment consequent upon tax audit shall be excluded.

(f) If the dealer exercises option in writing in Form VAT-321 for provisional sanction of refund pending audit and consequent assessment, if any, the assessing authority shall require such dealer to furnish bank guarantee for an amount equal to the claim of refund on such terms and conditions, as he may specify, pledged in favour of such authority.

(g) The assessing authority, on receipt of the bank guarantee as referred to in clause (f), shall grant refund provisionally the amount determined by such authority to be refundable.

(h) The provisional refund granted under clause (g) shall be subject to the provision of clause (b).

(i) On receipt of the audit visit report, pursuant to the reference made under clause (c), the assessing authority shall proceed to assess the dealer, if so required, as a result of audit, under section 42 and, determine the correct amount of refund admissible under the provisions of the Act and these rules.

(j) The final refund or demand of tax, penalty or interest, shall be determined in accordance with the order passed on assessment under section 42.

(k) Subject to the provision of clause (g) of sub-section (1) of section 58, the bank guarantee furnished at the time of sanction of provisional refund shall be released, by order in Form VAT -322, and handed over to the dealer on receipt of acknowledgement.

Provided that the acceptance or rejection of the claim of refund shall be made before the validity of the bank guarantee or extension thereof, if any, expires.

(l) Where the claim of refund is reduced, the excess amount, if any, sanctioned towards refund provisionally, shall be paid by the dealer on receipt of order in Form VAT -312 and such dealer shall be liable to pay interest at the rate of two per cent per month on such excess amount from the date of sanction of refund to the date of its payment by the dealer.

(2) (a) Where any dealer claims refund in the return furnished for a tax period on account of sales as specified in clause (c) of section 18, he shall make an application in Form VAT-320 to the assessing authority of the range, within thirty days from the date of furnishing of such return and the application so made shall be accompanied by documents as specified in clause (c) of this sub-rule:

Provided that an application for refund made after thirty days may be admitted by such assessing authority if he is satisfied that the dealer had sufficient cause for not making the application within the said period.

(b) The excess input tax credit in any tax period, for which refund is claimed under this sub-rule, shall be carried over to six consecutive tax periods, following that tax period, for adjustment against output tax and the amount found refundable at the end of such tax periods, shall be refunded in accordance with the provisions of clauses (c ), (d),

(e) and (l) of sub-rule (1).

(c) The application for refund furnished under clause (a) of sub-rule (2) shall be accompanied by the copy of the tax invoice, certificate of the competent authority showing the name and address of the dealer and the SEZ or the STP or the EHTP, under which it is established and the entitlement of the dealer to purchase goods free of tax covered under such tax invoice and such other evidence, as may be required to establish the claim of refund.

(3) (a) Where any dealer claims refund in the return furnished for a tax period on account of sales as specified in clause (d) of section 18, he shall make an application in Form VAT -320 to the assessing authority of the range, within thirty days from the date of furnishing such return:

Provided that an application for refund made after thirty days may be admitted by the assessing authority if he is satisfied that the dealer had sufficient cause for not making the application within the said period.

(b) The application under clause (a) shall be accompanied by a copy of the tax invoice and the certificate from the competent authority showing that the purchasing dealer is a EOU and that such dealer is entitled to purchase goods free of tax and such other evidence as may be required to establish the claim of refund.

(c) The refund under this sub-rule shall be subject to the provisions of clauses (c), (d), (e), (f), (g), (h), (i), (j), (k) and (l) of sub-rule (1).

(4) (a) The claim of refund arising out of clause (a) of sub-section (2) of section 58 shall be made by application in Form VAT -323 signed and verified by an authorised officer.

(b) The grant of refund claimed under this sub-rule shall be subject to the following conditions :-

(i) the purchase should have been made from a registered dealer in the State on payment of tax supported by a retail invoice;

(ii) each retail invoice shall be in the minimum for a tax-exclusive price of Rs.1,000/-;

(iii) the claim shall be made quarterly;

(iv) the goods involved in the purchases are only for official use; and

(v) the application for refund shall be filed within a period of fourteen days from expiry of the quarter.

66. Refund of input tax credit carried forward beyond a period of twenty-four months. –

The claim of refund under clause (a) of sub-section (4) of section 58 shall be made in Form VAT -324 to the assessing authority of the circle or range, as the case may be, within one month from the date of expiry of the period of twenty four months from the end of the year to which the tax period relates:

Provided that where the application as referred to in this rule is not made within the period of one month, it will be deemed that the dealer has exercised option to carry forward the excess input tax credit for adjustment against output tax payable in subsequent tax periods:

Provided further that an application for refund made after the period of one month may be admitted by the assessing authority if he is satisfied that the dealer had sufficient cause for not making the application within the said period.

CHAPTER VIII

ACCOUNTS AND RECORDS

67. Maintenance of accounts by a registered dealer. –

(1) Every dealer, who is registered under the Act, or on whom a notice under sub-section (2) of section 33 has been served to furnish return, shall, subject to sub-rules (4) and (5), maintain a true and up-to-date accounts of goods –

(i) purchased or received otherwise than by way of purchases, in the purchase or input register;

(ii) sold or despatched outside the State otherwise than by way of sales by him, in the sales or output register;

(iii) held in stock, for the purpose of business.

(2) A dealer referred to in sub-rule (1) shall maintain accounts of waybills issued and received, vouchers, bills, cash memos, tax/retail invoices and such other documents, as may be required, in support of any entry in the purchase and sales register.

(3) Purchase and sales register referred to in sub-rule (2) shall be maintained tax rate wise so that the totalling made at the end of each tax period will show the purchases and sales under each tax rate and tax paid on such purchases and charged on such sales during that tax period.

(4) A registered dealer engaged in the manufacturing or processing of goods shall maintain true and up-to-date accounts of –

(i) capital goods purchased;

(ii) inputs purchased;

(iii) inputs used in manufacturing and processing of goods for sale;

(iv) goods manufactured including manufacturing account;

(v) goods sold; and

(vi) stock account of inputs, consumables, packing materials, fuel, and finished products and bye-products, if any.

(5) A registered dealer engaged in the execution of works contract shall maintain a true and up-to-date account of

(i) goods purchased for use in the execution of works contract;

(ii) goods utilized in the execution of works contract;

(iii) sale value of the goods at the time, such goods are appropriated to the works contract;

(iv) stock account of goods

68. Contents of tax invoice and retail invoice. –

(1) The tax invoice issued under sub-section (1) of section 62 shall contain the following particulars, namely:-

(a) the words ‘Tax Invoice’ in bold letter at the top,

(b) the name, address and registration certificate number of the selling registered dealer,

(d) in case, the sale is in course of export out of the territory of India, the name, address, registration certificate number, if any, of the purchasing dealer or foreign buyer and the type of statutory form, if any, against which the sale has been made,

(e) an individual serialized number and the date on which the tax invoice is issued,

(f) description, quantity, volume and value of goods sold and the amount of tax charged thereon indicated separately,

(g) signature of the selling dealer or his manager or any other employee or agent, duly authorized by him, and

(h) the name and address of the printer, if any, and first and last serial number of tax invoices printed and supplied by him to the dealer.

(2) The retail invoice as referred to in sub-section (2) of section 62 shall contain the following particulars, namely

(a) the words ‘Retail Invoice’ or ‘Cash Memorandum’ or ‘Bill’ in bold letter at the top,

(b) the name, address and registration certificate number of the selling registered dealer,

(d) an individual serialized number and the date on which the retail invoice is issued,

(e) description, quantity, volume and the value of goods sold showing the amount of tax charged separately,

(f) signature of the selling dealer or his manager or any other employee or agent, duly authorized by him, and

(g) the name and address of the printer, if any, and the first and last serial number of retail invoices printed and supplied to the dealer.

69. Records to be maintained by a registered dealer liable to pay tax under clause (a) of section 9. – Every registered dealer liable to pay tax under clause (a) of section 9 shall, in addition to the accounts referred to in sub-rules (1), (2) and (3) of rule 67, maintain such accounts and documents as may be required to establish his claim for filing revised return for any tax period, zero rate sales, claim of input tax credit, stock of goods, cash balance, utilisation of waybills and statutory declaration forms issued under the Central Sales Tax Act, 1956 and other claims and transactions relating or incidental to the business of such dealer.

70. Accounts to be maintained by a registered dealer liable to pay turnover tax under clause (b) of section 9. –

(1) The following particulars shall be maintained by a dealer liable to pay turnover tax under clause (b) of section 9, namely : –-

(a) the name and address of the person from whom goods are purchased supported by invoice, bill or delivery note issued by the seller under his signature;

(b) description of the goods;

(d) the quantity and the value of goods sold, showing separately the sale of goods exempt from tax;

(e) counterfoils of retail invoices issued, which are serially numbered for each year.

71. Issue of Tax invoice and Retail invoice. –

(1) Where a registered dealer effects sales to another registered dealer, the dealer making the sale shall issue a tax invoice.

(2) Where a registered dealer effects sales to an unregistered dealer or a registered dealer liable to pay turnover tax under clause (b) of section 9, he shall issue a retail invoice.

(3) Where a registered dealer effects sales of goods, specified in Schedule ‘C’ of the Act to any dealer irrespective of whether he is registered or not under the Act, he shall issue a retail invoice.

(4) Where a registered dealer liable to pay tax under clause (b) of section 9 effects sale of goods, the tax-exclusive price of which is rupees two hundred or above in any single transaction, he shall issue a retail invoice against such sale, in accordance with the provisions of sub-section (2) of section 62.

(5) Separate accounts shall be maintained in respect of sales in respect of which tax invoices are issued and sales in respect of which retail invoices are issued.

(6) Where a registered dealer liable to pay turnover tax under clause (b) of section 9 issues retail invoices in respect of sales and the sale price charged therein is inclusive of tax, the tax amount due for payment shall be calculated by applying the tax fraction to the tax-inclusive sale price.

(7) All tax invoices and retail invoices issued against sales made by a registered dealer shall indicate the tax charged at each rate of tax separately.

(8) Tax invoice/retail invoice issued by a registered dealer shall be signed by the dealer himself or his authorised representative.

(9) Where invoices as referred to in sub-rule (8) are generated electronically they shall also be signed by the dealer himself or his authorised representative.

72. The language in which accounts are to be maintained. –

(1) Every registered dealer liable to pay tax under clause (a) of section 9, who maintains accounts in a language other than English shall adopt international numerals in the maintenance of such accounts.

(2) Every registered dealer liable to pay tax under clause (b) of section 9 shall keep and maintain account in any language specified in the Eighth Schedule to the Constitution of India or in the English language.

73. Certificate to be furnished by the Accountant. –

Where the accounts of a dealer are required to be audited under section 65, a certificate in the following form shall be furnished along with the audited accounts (Trading account, Profit and loss account and Balance sheet) for each year by the Accountant conducting such audit.

Form of Certificate

(See rule 73)

I/We have examined the trading account of _________________ (mention name and address of the dealer with TIN) as at 31^stMarch________________ and the Profit and Loss account and Balance Sheet for the year ended on that date. The said accounts are attached herewith.

1 I / We certify that the trading account, Profit and Loss account and the Balance Sheet are in agreement with the books of account maintained at the principal place of business at __________ and the branches at ______________.

2 I/We certify that the gross turnover and the taxable turnover returned by the dealer, the input tax credit claimed and output tax shown as payable in the returns furnished for the above mentioned year, are in agreement with the books of account maintained in the principal place of business and the branches at ___________.

3 (a) I/We report the following observations/ comments/ discrepancies/ inconsistencies, if any:

(b) Subject to above

(i) I/We have obtained all the information and explanations which to the best of my/our knowledge and belief, were necessary for the purpose of audit.

(ii) In my/our opinion, proper books of account have been maintained at the principal place of business and branches of the dealer so far as it appears from my/our examination of the books.

(iii) In my/our opinion and to the best of my/our information and according to the explanations, that have been given to me/us, the said accounts, read with notes thereon give a true and fair view :-

§ in case of trading account, the state of affairs of business of the dealer as on 31^st March _________,

§ in case of Profit and Loss account, the profit/loss or surplus/deficit of the dealer for the year ended on that date, and

§ in case of the Balance Sheet, of the state of affairs of the dealer for the year ended on that date.

Signed Place____________________ Name_______________________ Date______________________ Address______________________

CHAPTER-IX

LIABITY IN SPECIAL CASES

74. Liability in case of transfer of business. –

Where a dealer liable to pay tax under the Act, transfers his business, in whole or in part, by sale, lease or license, hire or any other manner, whatsoever, under sub-section (1) of section 67, the transferee of the business, if he is an existing registered dealer, apply within fifteen days from the date on which such transfer takes place for amendment of his certificate of registration under sub-section (2) of section 67.

CHAPTER-X
LIABILITY TO PRODUCE ACCOUNTS AND SUPPLY INFORMATION

75. Production and inspection of accounts and search of premises. –

(1) Visit to the place of business of any person or dealer for inspection under section 72 or 73 by the Commissioner or any person appointed to assist him under sub-section (2) of section 3, may be made with prior notice in Form VAT-401 requiring such person or dealer –

(a) to produce or cause to be produced the accounts, registers and documents, as called for, before him at his office on the date and time specified in the notice and to explain them; or

(b) to furnish any information as may be required, before him on the date specified in the notice, when he may visit his place of business; or

(c) to allow access to the electronic record maintained by him on the date specified in the notice, where he may be keeping such electronic records.

(2) The Commissioner or any person appointed to assist him under sub-section (2) of section 3, while requiring any person or dealer,-

(i) to produce before him books of account, registers and documents under clause (a); or

(ii) to furnish information relating to the business of such person or dealer under clause (b); or

(iii) to allow access to the electronic records maintained by that person or dealer when required to produce in the place of business under clause (c) of sub-section (1) of section 73; or

(iv) to make all accounts, goods and cash available for inspection under sub-section (2) of section 73, shall ensure that the provisions of the Act and these rules are complied with.

(3) If, however, the Commissioner or any person appointed to assist him, not below the rank of a Sales Tax Officer, considers it necessary for the purpose of the Act to make a surprise visit to the place of business or warehouse or godown of any person or dealer, he may make such visit without giving any prior notice to that person or dealer.

76. Search and Seizure. –

(1) All seizures under sections 72, 73, 74 and 76 shall be made as far as possible in accordance with the provisions of the Code of Criminal Procedure, 1973.

(2) If any person or dealer, from whom any accounts, registers or documents have been seized under section 73, does not take delivery of such accounts, registers or documents within the time specified in the notice issued in this behalf, the authority, in whose custody such accounts, registers or documents are retained may destroy them without further notice to such dealer or person.

77. Manner of confiscation of goods seized or otherwise. –

(1) The Commissioner shall, before ordering confiscation of the goods, give the owner of the goods, if present with the goods, an opportunity of being heard and where the owner is not present, the Commissioner shall make such enquiries, as he deems fit, to ascertain the name and address of the owner and if such name and address are ascertainable, give him an opportunity of being heard, before ordering confiscation. In case of non-perishable goods, at least seven days time shall be allowed to the owner of the goods to state the case before the Commissioner.

(2) A copy of the order of confiscation of the goods shall be served on the owner of the goods, where the name and address of such owner is available or ascertainable and where such name and address is not ascertainable, the order shall be served on the driver or person-in-charge of the goods and a copy shall be displayed in the office notice board.

(3) The owner of the goods shall have the right to prefer revision against the orders of confiscation passed under sub-rule (1) and such revision shall be filed within seven days from the date of receipt of the order.

(4) The goods confiscated shall be sold by public auction or by inviting offers through sealed quotations.

(5) If the goods confiscated are of perishable nature, the confiscation thereof shall not be postponed, on account of revision having been preferred against the orders of confiscation.

(6) If, by any order of revision, the confiscation is reversed, the goods confiscated, if they have not been sold before such reversal comes to the knowledge of the officer conducting the sale, shall be released or if they have been sold, the proceeds thereof shall be dealt with as specified in sub-rule (8).

(7) Where a confiscation was ordered in the absence of the owner of the goods, for the reason that the name and address of such owner was not ascertainable, such person or any person on his behalf, may appear before the authority ordering confiscation and satisfy him with relevant record and document regarding the bonafides of the transaction of the goods, in question and where the officer is satisfied that there has been no evasion of tax or the subsequent transaction in respect of the goods, is not likely to lead to any evasion of tax, he may, for reasons to be recorded in writing, order the release of the confiscated goods specifying the amount to be paid towards the charges, if any, incurred by the State for the safe custody of the goods and other incidental charges, and where the officer is not satisfied, he may, after recording the reasons therefor, order that the sale under sub-rule (4) may be proceeded with.

(8) Goods ordered to be released or the proceeds thereof referred to in sub-rule (6), if they have been sold, shall be refunded to the owner of the goods or to his agent on payment or after deduction of the charges incurred by the State.

(9) Where the owner of the goods or his agent appears before the authority, who has passed the order of confiscation, and pays the tax due on such goods along with penalty amounting to twenty per cent of the value of such goods, the said authority shall release the goods to the owner of the goods or his agent.

(10) While assessing the tax payable on the goods ordered to be confiscated, the value of such goods shall be determined at the prevailing market price and the tax payable shall be computed by application of the rate of tax specified for such goods in the Schedule of the Act.

78. Procedure for` auction sale of goods seized. –

(1) Where the goods are seized under sub-section (8) of section 73, clause (b) of sub-section (4) of section 74, sub-section (11) of section 74 and sub-section (8) of section 76, 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 seven days from the date of issue of such proclamation for sale, and in such proclamation the time and place of sale and the description of the goods for sale shall be mentioned.

(2) The proclamation for open auction referred to in sub-rule (1) shall be publicised and copy of such proclamation shall be –

(a) hung up for public view at the place where the auction sale is to take place, and

(b) forwarded to the dealer or person, from whom such goods have been seized or owner of such goods, if his address is available.

(3) The goods shall ordinarily be sold to the highest bidder but if it appears to the authority issuing the proclamation for auction sale 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 be issued and publicised.

(4) On the date of auction specified in the proclamation referred to in sub-rule (1) or (3), the goods seized shall be sold:

Provided that if the dealer or person from whom such goods have been seized or owner of such goods, to whom the copy of the proclamation for sale has been forwarded under sub-rule (2), appears before the authority concerned on any date not later than the date fixed for auction sale and makes payment of tax and penalty as provided under the section, in accordance of which the seizure was made, the goods referred to in the proclamation of sale shall not be sold in auction and such goods shall be released to such dealer or to the person from whom the goods have been seized or the owner of the goods, as the case may be.

(5) Notwithstanding anything contained in sub-rule (1), where the goods seized are of perishable nature the proclamation for open auction for sale of such goods shall be made immediately and the open auction shall be conducted within twenty four hours.

79. Establishment of check gates and inspection of goods while in movement.

(1) The Government may empower any officer not below the rank of an Assistant Sales Tax Officer to be in charge of a check-post or barrier.

(2) The driver or the person-in-charge of the vehicle or carrier of goods shall stop the vehicle or carrier, as the case may be, at a check-post or barrier and keep it stationery as long as it is reasonably required by the officer-in-charge of the check-post or barrier and allow examination of the goods, in the vehicle or carrier and inspection of all records connected with the goods in the vehicle or carrier including way bill, declaration and transit pass.

(3) The way bill shall be in Form VAT-402 as provided under clause (a) of sub-section (2) of section 74.

80. Issue and use of Way bills and Transit pass. –

(1) The issue and use of way bills and transit pass shall be regulated in the following manner, namely :-

(i) the way bills referred to in sub-rule (3) of rule 79, shall be supplied in triplicate on application in Form VAT-409 and on payment of cost, as may be fixed by Government from time to time.

(ii) the way bill referred to in clause (i), shall be issued with due authentication with official seal and signature by, or facsimile signature of the Assistant Sales Tax Officer or the Sales tax Officer or Assistant Commissioner, as the case may be, having jurisdiction.

(iii) the way bill shall be issued to the dealer, who

(a) consigns goods from a place inside the State to a place outside the State;or

(b) brings any goods into the State or receives any goods despatched from any place outside the State; or

(iv) no second or subsequent booklet of way bill forms shall be supplied to any dealer, unless he furnishes a true copy of account in Form VAT-403 of way bills last supplied to him duly certified under his signature and where necessary, the copy of the waybill furnished at the entry check-gate may be called for, or electronic information relating to such waybill may be accessed, or such other account as may be required for verification of the transactions of sales or purchases made on the strength of such way bills may be called for and examined.

(v) ordinarily, one booklet of waybill forms or part thereof shall be issued to a registered dealer at a time and where a registered dealer makes an application in Form VAT-410 for supply of more than one booklet of waybill forms at a time, with sufficient justification, and the Sales Tax Officer is fully satisfied on verification of past records, frequency of despatch of goods to or from, outside the state by or to the dealer or for any other reason to be recorded in writing, may issue more than one booklet, but not exceeding ten booklets of way bill forms at a time :

Provided that, if any dealer, under a LTU requires more than ten booklets of waybill forms at a time, he shall make an application to that effect to the Assistant Commissioner or the Sales Tax Officer in charge of that LTU and if such requirement is found justified, the application along with recommendation and justification shall be forwarded to the Commissioner and the order of the Commissioner shall be final in such cases:

Provided further that if a registered dealer, whose certificate of registration has been suspended under section 30 or who fails to furnish return under section 33 or who fails to comply with the requirements under section 61 or 73, the Sales Tax officer or the Assistant Commissioner, as the case may be, may refuse to issue way bill after giving him reasonable opportunity of being heard:

Provided also that where a dealer is refused way bill under this clause, the Sales Tax Officer or the Assistant Commissioner, as the case may be, shall pass an order to that effect and serve the order on that dealer.

(vi) authenticated printed way bills may not be insisted upon by the officer-in-charge of a check-post or barrier, where it is proved to his satisfaction that the owner of the goods transported is not a dealer and the goods transported are his house-hold or other articles intended for personal use.

(2) The way bill which shall bear the signature or facsimile signature and the official seal of the concerned Assistant Sales Tax Officer or Sales Tax Officer or Assistant Commissioner referred to in clause (i) of sub-rule (1), shall be serially numbered and printed in triplicate, the first copy marked as “Original”, the second copy marked as “Duplicate”, the third copy marked as “Triplicate” and shall be in booklets of twenty-five forms each.

(3) Every registered dealer shall maintain a register in Form VAT-403, which may be produced at the time of second and subsequent issue of waybill forms, if so required.

(4) A person consigning goods from outside the State to a dealer belonging to the State will obtain waybill from the consignee inside the State.

(5) The driver or the person-in-charge of the goods vehicle or carrier shall carry the way bill in duplicate in respect of each consignee and shall tender the original copy of the way bill to the Officer-in-charge of check-post or barrier through which such goods vehicle or carrier first passes on its way :

Provided that in case, a goods vehicle, which has not passed through a check-post or barrier is checked by an officer not below the rank of a Sales Tax Officer on the way, the original copy of the way bill shall be tendered to such officer:

Provided further that in case the vehicle or carrier has not passed through a check- post or barrier or has not been checked by an officer, not below the rank of a Sales Tax Officer, the original copy of the way bill forms used during a month, along with the statement of accounts referred to in clause (iv) of sub-rule (1), shall be submitted to the Sales Tax Officer or the Assistant Commissioner, as the case may be, who had issued the said way bill forms, by the last day of the following month.

(6) Every way bill obtained from the Assistant Commissioner or Sales Tax Officer, as the case may be, by a dealer shall be kept by him in safe custody and he shall be responsible for the loss, destruction, or theft of any such form and loss of Government revenue, if any, caused thereby.

(7) If any such way bill form, before it is issued, is signed and despatched by the consignor, is lost, destroyed or stolen from his custody, the dealer shall report the fact to the Sales Tax Officer or the Assistant Commissioner, as the case may be, within seven days from the date of such loss, destruction or theft, make appropriate entry in the “Remarks” column of the register and take such other steps to issue public notice of loss, destruction, theft and in respect of each such way bill form, shall furnish to the Sales Tax Officer or the Assistant Commissioner, as the case may be, an indemnity bond in FormVAT-404 against any possible loss to Government.

(8) The Sales Tax Officer or the Assistant Commissioner, as the case may be on receipt of report of theft, loss or destruction of waybill form shall immediately report the fact to the Commissioner, who, after making such enquiry as he may think necessary, shall publish the particulars of such waybill forms in the Commercial Tax Gazette:

Provided that where the Commissioner, considers it necessary so to do, he may, by notification, declare that the way bill forms lost, destroyed or stolen, shall be deemed as obsolete and invalid from such date as may be specified in that notification.

(9) Any unused waybill form remaining in stock with a registered dealer, on the cancellation of the registration certificate, shall be surrendered to the registering authority within fourteen days of the order of cancellation:

Provided that if the dealer fails to surrender the unused way bill forms within the period specified in this sub-rule, the Commissioner shall, on receipt of intimation from the Sales Tax Officer or Assistant Commissioner, as the case may be, declare such way bill forms as obsolete and invalid with effect from the date of order of cancellation of certificate of registration.

(10) A dealer, to whom waybill forms are issued, shall not either directly or otherwise transfer his right to use the same to another dealer.

(11) The Commissioner may, by notification, declare that the way bill forms of a particular series, design or colour shall be deemed as obsolete and invalid, with effect from such date, as may be specified in the notification, and when a notification declaring such forms as obsolete and invalid is published, all registered dealers shall on or before the due date, with effect from which date the forms are so declared obsolete and invalid, surrender all such unused forms.

(12) If, on such examination and inspection as referred to in sub-rule (2) of rule 79 the officer-in-charge of the check-post or barrier, finds that the goods are not fully covered by way bill or that the way bill is defective or incomplete, he shall serve on the owner of the goods or any person on his behalf a notice in Form VAT-405 giving him an opportunity to rectify the defect or omission, if any, or an option to pay such amount as may, by order, the officer-in-charge of check-post or barrier specify.

(13) If the owner of the goods or any person on his behalf makes payment of the amount as directed by order under sub-rule (12) along with the tax due on such goods to the officer-in-charge of the check-post or barrier, he shall release the goods.

(14) If the owner of the goods or any person on behalf of such owner fails to pay the tax and penalty as required under sub-rule (12) , the officer-in-charge of the check-post or barrier shall order the unloading of the goods and seize and confiscate them after following the procedure in sub-rule (15) of this rule and rule 76.

(15) Where the officer-in-charge of the check-post or barrier seizes the goods, he shall issue a receipt giving the description, quantity and approximate value of the goods seized to the driver or owner of the goods or any other person-in-charge of the vehicle or carrier and obtain his acknowledgement.

(16) The officer-in-charge of the check-post or barrier shall follow the procedure as specified in rule 77 for confiscation and sale of the goods.

(17) If the Sales Tax Officer or the Assistant Commissioner, as the case may be, considers it necessary so to do, he may, before issue of way bills, on the basis of an application made in Form VAT-409, specify the period therein for which use of such forms shall be valid.

(18) Where a dealer transports any consignment of goods on the strength of way bill which has not been obtained by him in accordance with the provisions of this rule, such dealer shall be deemed to have contravened the provision of section 74.

(19) Where a dealer is found under sub-rule (18), to have contravened the provisions of section 74, he shall be liable to pay penalty under sub-section (5) of the said section.

(20) If a 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 Sales Tax Officer or Assistant Commissioner, as the case may be.

(21) The original copy of each, duly endorsed way bill retained by the officer-in-charge of the check-post or barrier or elsewhere for such period, and within such time, as the Commissioner may specify, shall be forwarded to such authority, as the Commissioner may direct.

81. Issue and use of declaration forms. –

(1) Issue and use of declaration forms shall be regulated in the following manner, –

(i) the declaration referred to in sub-rule (2) of rule 79 shall be in triplicate;

(ii) the declaration referred to in clause (i) shall be supplied on application in Form VAT-402A and on payment, as may be fixed by the Government from time to time;

(iii) the declaration shall be issued with due authentication with official seal and signature or facsimile signature of the Assistant Sales Tax Officer or the Sales Tax Officer having jurisdiction;

(iv) the declaration shall be issued to a casual dealer or a person, who –

(a) imports or brings any goods into the State or receives any goods despatched from any place outside the State on his own account, or

(b) consigns any goods from a place inside the State to a place outside the State either on his own account or on the account of any consignee,

(v) the Assistant Sales Tax Officer or the Sales Tax Officer referred to in clause (iii) shall be –

(a) the Assistant Sales Tax Officer or Sales Tax Officer of the R.R. Unit or in charge of the check-post or barrier, established in and around a railway station, steamer station, port, airport, post office or courier office in case, the consignment of goods is transported through railways, waterways, Air or postal or courier services;

(b) the Assistant Sales Tax Officer or the Sales Tax Officer, under whose jurisdiction, the causal dealer carries on business or the person ordinarily resides;

(vi) not more than one declaration form in triplicate shall be supplied to such casual dealer or person at a time;

(vii) no second or subsequent supply of declaration form shall be made to such casual dealer or person unless the copy of the declaration furnished at the R.R. Unit or check-post or barrier is called for, or electronic information in relation to such declaration is accessed or such other account as may be required for verification of the transaction of purchase or sale made on the strength of such declaration, is called for and examined.

82. Interception of goods vehicle in transit at any place other than a check-post or barrier. –

(1) At any place other than a check-post or barrier, the driver or any other person in charge of a goods vehicle or carrier shall stop on demand by an officer, not below the rank of a Sales Tax Officer, and keep it stationary as long as it may be required and allow examination of the goods in the vehicle or the carrier and inspection of all records connected with the goods carried in the vehicle or carrier.

(2) If, on such inspection, such officer finds that any of the events as specified in sub-section (4) of section 74 has occurred, such officer may order unloading of the goods under movement and seize and confiscate the said goods after following the procedure as specified in rules 76 and 77.

(3) The disposal of goods confiscated under sub-rule (2) shall be made in the manner specified in rule 78.

83. Movement of goods from outside the State to out of the State destinations and issue of Transit Pass. –

(1) Where a vehicle carrying goods intends to transit through Orissa from a place outside the State to another place outside the State, the driver or any other person claiming to be in charge of the goods shall report to the Officer-in-charge of the entry check-post or barrier and obtain a transit pass in Form VAT - 406 duly signed by the said officer and proceed to transit through the check-gate or barrier mentioned in the transit pass and after depositing the transit pass with the officer-in-charge of the check-post or barrier of the exit check-post or barrier.

(2) The transit pass in Form VAT-406 shall be in three parts, the first part of such Transit Pass shall be the application to be made by the driver or person in charge of the goods, the second part shall be the transit pass to be deposited at the exit check gate or barrier and the third part shall be the receipt to be signed by the officer-in-charge of the exit check gate or barrier against deposit of the transit pass.

(3) The transit pass referred to in sub-rule (1) shall be issued to the driver or person in charge of the goods or carrier on application when he furnishes –

(a) evidence to the satisfaction of the officer-in-charge of the check-post or barrier that the goods carried in the vehicle or carrier are meant to be delivered at a place outside the State;

(b) a declaration showing –

(i) the check-gate through which the vehicle will exit the State;

(ii) the probable time of such exit; and

(iii) the goods under transport shall not be unloaded, delivered or sold inside the state.

(4) If a driver or person-in-charge of the goods referred to in sub-rule (3) violates any or more of the conditions as specified in that sub-rule, he shall be liable to pay tax and penalty as provided under sub-rule (5).

(5) Where the officer-in-charge of a check-post or barrier or any officer not below the rank of a Sales Tax Officer, intercepts a vehicle and finds that any of the events as specified under sub-section (11) of section 74 has occurred, he shall direct the driver or the person-in-charge of the goods, by order in Form VAT – 407, to pay the amount of tax and penalty as specified in that section:

Provided that an opportunity of being heard shall be allowed to such driver or person before issue of order in Form VAT-407.

(6) Where the driver or the person-in-charge of the goods is not immediately available, the officer, who had detained the vehicle, shall cause enquiry to ascertain the name and address of the owner of the goods and if such name and address are ascertained, allow him an opportunity of being heard.

(7) On payment of the amount demanded by order under sub-rule (5), the goods shall be released and vehicle shall be allowed to proceed.

(8) If the amount demanded is not paid within the time specified in the order issued under sub-rule (5), the officer referred to in that sub-rule shall seize the goods or where goods are not available at the time of such inspection, the goods vehicle and order seizure and confiscation of the goods or detention of the vehicle, as the case may be, till such tax and penalty are paid.

(9) The procedure for confiscation and sale of goods shall be in the manner provided under rule 77 and 78.

84. Restriction on movement of goods through railways, waterways, Air, Postal and courier services.

(1) No person shall transport by road, river, craft, mulia from any railway station, sea port, airport, post office or courier office and any other place whatsoever notified in this behalf by the Government any consignment of such goods, other than those specified in sub-rule (2),

(2) The provisions of sub-rule (1) shall not apply to the following cases :-

(a) where the consignment of goods being transported by any person or on his account is his personal effects or household goods;

(b) where such consignment of goods consists of

(i) printed materials,

(ii) brochure,

(iii) leaflets or;

(iv) pamphlets;

(d) where the quantity and value of goods other than those described under clause (a), (b) and (c) being transported, is less than the quantity and value, as may be specified by Government, by notification, in respect of such goods.

(3) The Sales Tax authority having jurisdiction may seek any information relating to the consignment of goods and inspect them in the parcel office or goods shed, airport, sea port, post office or courier office.

(4) Where any consignment of goods is imported or brought into the State by a dealer, casual dealer or a person on his own account from any place outside the State, and such consignment of goods reaches a railway station, steamer station, port, airport, post office or courier office in the State, such dealer, casual dealer or person shall, before taking delivery of such consignment of goods except a consignment of goods of the nature and value referred to in sub-rule (2), present before the Sales Tax Officer or Assistant Sales Tax Officer of the R.R. Unit or check-post, if any, at such railway station, steamer station, port, airport, post office or courier office –

(a) a way bill in Form VAT-402, if he is a dealer;

(b) a declaration in Form VAT-402 A, if he is a casual dealer or a person; in duplicate, obtainable in the manner as laid down in rule 80 or 81, as the case may be, and he shall also present the railway receipt, bill of lading, air consignment note or any document of like nature in respect of such consignment of goods for countersignature by such Sales Tax Officer or Assistant Sales Tax Officer.

(5) The Sales Tax Officer or the Assistant Sales Tax Officer of the R.R. Unit or check-post or barrier shall endorse the duplicate copy of way bill or declaration and countersign the railway receipt, bill of lading, air consignment note or the document of like nature, recording therein the serial number and the date of the way bill or declaration presented before him under sub-rule (1) and return the duplicate copy of the way bill or declaration so endorsed along with such railway receipt, bill of lading, air consignment note or the document of like nature to the dealer, casual dealer or person, as the case may be, for taking delivery of such consignment of goods, after verifying correctness of the way bill or declaration in terms of provisions of sub-rule (9).

(6) Before returning the duly endorsed duplicate copy of way bill or declaration, to the dealer, casual dealer or person, as the case may be, the Sales Tax Officer or Assistant Sales Tax Officer at the R.R. Unit or check-post or barrier, shall make a record of the particulars of such consignment of goods and the serial number and the date of the way bill or declaration related thereto, and retain the original copy of the way bill or declaration.

(7) If any consignment of goods despatched from any place outside the State reaches such a railway station, steamer station, port, air port, post office or courier office, where no R.R. Unit or check-post or barrier has been established in and around the railway station, steamer station, port, air port, post office or courier office, any dealer, causal dealer or person, who imports or brings into the State such consignment of goods on his own account, shall present within seven working days before the Assistant Commissioner or the Sales Tax Officer or Assistant Sales Tax Officer, under whose jurisdiction –

(a) in case of a dealer, the place of business, in respect of which the certificate of registration has been granted;

(b) in case of a casual dealer, the place at which, he intends to carry on business; or

(c) in case of a person, the place, where he ordinarily resides, is situated, the railway receipt, bill of lading, air consignment note or the document of like nature along with the way bill or declaration, as the case may be, in duplicate for countersignature of such railway receipt, bill of lading, air consignment note or document of like nature, mentioning therein the serial number and the date of the way bill or declaration.

(8) While transporting any consignment of goods by any road vehicle on its way to the destination, the driver or the person in charge of the goods shall carry with him the duplicate copy of the way bill or declaration, duly endorsed under sub-rule (5) or (7), and on interception of such vehicle for the purpose of section 74 outside the R.R. Unit or check-post or barrier by such officer, as the Commissioner may authorize, at any place on the way to destination, the driver or person in charge of the goods, shall present before him such way bill or the documents related thereto.

(9) The Assistant Sales Tax Officer or Sales Tax Officer of a R.R. Unit or the officer-in-charge of a check-post or barrier or Sales Tax Officer, as the Commissioner may authorize under sub-section (3) of section 74 for interception of goods in transit within the territory of the State, may verify correctness of the description, quantity, weight or value of the goods of a consignment as mentioned in the accompanying way bill or declaration, with the description, quantity, weight or value, which are actually found in such consignment.

(10) Where, upon verification made under sub-rule (9), and on search of the vehicle carrying the goods, or by opening the container or packages, if necessary, –

(a) the description, quantity, weight or value of 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 declaration; or

(b) the document presented in respect of the goods in any consignment is found by the authority referred to in sub-rule (a) to be false or incorrect, either in respect of the description, quantity or weight of such consignment of goods, or the value thereof; or

(c ) if it is found by the authority referred to in sub-rule (9) that either the consigner or the consignee or goods is not in existence as per records available in the office of the respective assessing authority or after enquiry, as may be deemed necessary, such authority shall seize the consignment of goods for reasons to be recorded in writing under sub-section (4) of section 74 for contravention of sub-section (2) of that section.

(11) Any violation of the provision of this rule by a dealer, casual dealer or person as the case may be, in respect of any consignment of goods imported or brought into the State on his own account, or by the driver or person in charge of the goods transporting such consignment of goods from railway station, steamer station, port, air port, post office or courier office shall be deemed to be a contravention of the provisions of section 74 by such dealer, casual dealer or person, as the case may be.

(12) Where a dealer, casual dealer or person or the driver or person-in-charge of the goods, as the case may be, fails to present the duly endorsed copy of way bill or declaration, either before the Assistant Sales Tax Officer or the Sales Tax Officer of the R.R. Unit or the officer-in-charge of the check-post or barrier, established in and around such railway station, steamer station, port, air port, post office or courier office, shall be deemed to be a violation of the provision of section 74.

(13) Where any consignment of goods referred to in sub -rule (4) –

(a) reaches a railway station, the railway authorities; or

(b) reaches a port, the port authorities; or

(c ) reaches air port, the cargo complex authorities; or

(d) reaches post office or courier office, the concerned authorities; or

(e) is transported into the State by the Container Corporation of India Ltd, the authorities of the Corporation, shall not deliver or hand over the consignment of goods to the consignee, unless they are satisfied that the way bill or declaration has been endorsed, and the railway receipt, air consignment note or the document of goods has been countersigned by such authority as referred to in sub-rule (5) or (7) in such manner as mentioned in that sub- rule.

(14) Any dealer, casual dealer or person shall, while transporting through railways, water ways, air, postal or courier services, any consignment of goods from any place in the State to any place outside the State, either on his own account or on account of any consignee, present a way bill or declaration, as the case may be, along with the challan or bill to the Assistant Sales Tax Officer or Sales Tax Officer of the R. R. Unit or officer-in- charge of the check-post or barrier or Sales Tax Officer having jurisdiction, before the consignment of goods is booked for transportation.

(15) Subject to provision of sub -rule (5), the endorsed duplicate copy of the way bill or declaration shall be returned to the dealer, casual dealer or person, as the case may be, after making a record of the particulars of such consignment of goods and the serial number and date of the way bill or declaration related thereto, by the authorities as referred to in sub- rule (14) and the original copy of the way bill or declaration shall be retained.

(16) Any violation of any provision of this rule by a dealer, casual dealer or person in respect of any consignment of goods or by the driver or person in charge of the goods, transporting such consignment of goods, shall be deemed to be a contravention of the provisions of section 74 by such dealer, casual dealer or person.

85. Control on clearing, forwarding or booking agent and any person transporting goods and information to be furnished by such agent or person. –

(1) Every clearing, forwarding or booking agent or broker or a person transporting goods, engaged in business as specified in sub-section (1) of section 76, shall furnish information about his place of business in Form VAT-408 to the Sales Tax Officer or Assistant Commissioner, as the case may be, having jurisdiction, within one month from the date of commencement of the Act or within one month of the commencement of the business, whichever is later.

(2) Where any goods or goods vehicle of any transporter, bailee or the owner or the lessee of a warehouse has been seized under sub-section (8) of section 76, the Sales Tax Officer having jurisdiction shall assess the tax due on that part of the goods, which is found to have not been accounted for, at the prevailing market price and demand, by order, the tax and penalty, as specified in that section, in FormVAT-313 to be paid by such date as maybe specified in that order:

Provided that before the tax due is assessed and the penalty is imposed, the transporter, bailee or the lessee of the warehouse, as the case may be, shall be allowed an opportunity of being heard.

CHAPTER XI

APPEAL, REVISION AND RECTIFICATION

86. Appeals to the appellate authority. –

(1) Any dealer aggrieved by an order passed under section 34, 40, 42, 43, 44, 45,49 or 52 may prefer appeal within thirty days from the date of receipt of such order before -

(a) the Assistant Commissioner, if the order is passed by an Assistant Sales Tax Officer or a Sales Tax Officer, as the case may be; and

(b) the Additional Commissioner, if the order is passed by an Assistant Commissioner:

Provided that an appeal preferred after the period of thirty days from the date of receipt of such order may be admitted by the appellate authority if it is satisfied that there was sufficient cause for not preferring the appeal within the period specified.

87. Submission of appeal petition. –

A memorandum of appeal against an order of assessment under sections 40, 42, 43, 44, 45 and 49 with or without penalty and a memorandum of appeal against penalty imposed under sub-sections (2) and (3) of section 34 or sub-section (1) of section 52 shall be in FormVAT-501, which shall be signed by the dealer or his agent, verified in the manner specified in the form and may be submitted in person in the office of the appellate authority or sent by registered post:

Provided that no memorandum of appeal shall be entertained unless it is accompanied by fee as specified in rule 125, proof of payment of admitted tax in full and twenty per centum of the amount in dispute.

88. Summary rejection of appeal. –

(1) If the memorandum of appeal is not in the specified form or if all the requirements of the form are not fully complied with, the appellate authority may reject the appeal summarily, after giving the appellant such opportunity, as it may think necessary, to rectify the defects.

(2) The appeal may also be summarily rejected on other grounds for which an order in writing shall be passed by the appellate authority:

Provided that before an order rejecting an appeal is passed, the appellant shall be given a reasonable opportunity of being heard.

89. Hearing of appeal. –

(1) If the appeal is not summarily rejected, the appellate authority shall fix a day and place of hearing of the appeal and may from time to time adjourn the hearing:

Provided that not more than three adjournments shall be granted to a party for hearing of the appeal.

(2) The appellate authority may, before disposing of any appeal, make such further enquiry as it thinks fit or cause further enquiry to be made by the Assistant Sales Tax Officer or the Sales Tax Officer or Assistant Commissioner, as the case may be.

(3) The appellate authority shall not enhance an assessment or a penalty without giving the appellant a reasonable opportunity of being heard against such enhancement.

90. Procedure in case of death of one of several appellants or of sole appellant. –

If an appellant dies while the appeal is pending and it cannot be proceeded with unless his legal representative is made a party to the appeal, the appellate authority shall adjourn the hearing to enable his legal representative to appear and apply for being made a party and where the legal representative fails to do so within sixty days from the date on which the appellant dies, the appeal shall be abated as regards the deceased and in such cases the proviso to sub-rule (1) of rule 88 shall not apply:

Provided that if the legal representative becomes a party within the time specified above and the case is proceeded with not more than three adjournments shall be allowed for hearing of the case.

91. No abatement by reason of death after hearing. –

Notwithstanding anything contained in rule 90, there shall be no abatement of appeal by reason of the death of any appellant between the conclusion of the hearing and the passing of the order, but the order may in such case, be passed notwithstanding the death and shall have the same force and effect as if it had been passed before the death took place and no legal representative need be made party in such case.

92. Notice to person likely to be adversely affected. –

Before an order is passed on appeal, if such order is likely to affect any person other than the appellant adversely, such other person shall be given a reasonable opportunity of being heard.

93. Second appeal under section 78. –

(1)(a) A memorandum of appeal against an appellate order made under section 77 shall be in Form VAT-502 and shall be verified in the manner specified therein.

(b) A memorandum of appeal or memorandum of cross objections to be filed before the Tribunal for and on behalf of the Government shall be signed and verified by the Commissioner or such other officer, who may be authorised in this behalf by the Commissioner.

(d) An appeal preferred by any dealer or person other than the Government shall be accompanied by the requisite fee.

(2) The memorandum of appeal shall be filed in duplicate and shall be accompanied by the original or an authenticated copy of the order appealed against and two copies of the order of the assessing authority.

(3) Where in any case the dealer or the Government, as the case may be, fails to file a memorandum of cross objections within the time provided for in sub-section (2) of section 78 the appeal shall be disposed of on its merit by the Tribunal.

94. Presentation of appeals. –

(1) An appeal shall be presented in person by the appellant or by his agent to the Registrar during office hours or sent to him by registered post.

(2) Every appeal presented by an authorised agent on behalf of a dealer shall be accompanied by a letter of authority appointing him as such.

(3) Every appeal filed by a person other than the Government shall specify the name and address of the appellant and specify the State represented by the

Commissioner as the respondent, and where an appeal is filed by the Government, the name and address of the respondent shall be specified, so far as they can be ascertained.

95. Registration of appeal. –

(1) On receipt of an appeal, the Registrar shall endorse on it the date of receipt and shall, thereafter, as soon as possible, examine whether –

(i) the person presenting it has the authority to do so; and

(ii) it conforms to the provisions of the Act and these rules, and if he is satisfied on these points, he shall cause it to be registered in the appropriate register maintained under rule 96.

(2) If the Registrar finds that the appeal does not conform to the requirements of the Act and these rules, he shall call upon the appellant by a notice in Form VAT-503 to remedy the defects within a reasonable period not exceeding fifteen days to be specified by him and may, for good and sufficient cause, extend such period, provided the aggregate period allowed does not exceed a month.

(3) If the defect or defects are remedied within the period allowed, the Registrar shall cause the appeal to be registered.

(4) If the defect or defects are not remedied within the period allowed, the Registrar shall make a report to that effect to the Tribunal, who may reject the appeal or fix a date for hearing the matter and give a notice for such hearing to the appellant or his agent in Form VAT-504.

(5) On the date so fixed, the tribunal shall, after hearing the appellant or his agent, pass orders directing either the registration of the appeal or its rejection and where the appeal is rejected, the Tribunal shall record the reasons for doing so.

96. Maintenance of registers. –

The Registrar shall maintain separate registers for –

(a) Appeal in Form VAT-505; and

(b) Appeal received by transfer in FormVAT-506

97. Admission. –

(1) On registration of an appeal the Tribunal shall go through the memorandum of appeal and enclosure, if any, and if it is prima facie of the opinion that there is substance in the appeal, it shall admit it.

(2) If the Tribunal is prima facie of the opinion that there is no substance in such appeal, it shall fix a date for a preliminary hearing for which notice in Form VAT-507 shall be given to the appellant or his agent and after hearing the appellant or his agent, either admit the appeal or dismiss it and where the appeal is dismissed, the Tribunal shall record reasons for doing so.

98. Filing of memorandum of cross objections. –

(1) When an appeal is admitted under rule 97, the Tribunal shall forthwith serve a notice in Form VAT-508 on the respondent calling for filing of memorandum of cross objections, if any, within thirty days from the date of receipt of notice by the respondent.

(2) The memorandum of cross objections, if any, shall be filed in duplicate and duly signed by the respondent or his agent.

(3) Soon after the filing of the memorandum of cross objections by the respondent, the duplicate copy thereof shall be endorsed by the Tribunal to the appellant.

99. Notice of hearing. –

After an appeal has been admitted, a notice of the date fixed for hearing in Form VAT-509 shall be served or sent by registered post with acknowledgement due upon or to the appellant and respondent or their agents and the Tribunal shall, thereupon, hear and decide the appeal:

Provided that the date of hearing may be fixed so as to allow a minimum time of thirty days from the date of receipt of the notice

100. Procedure of the hearing. –

On the date fixed or on any other date to which the hearing may be adjourned, the appellant or his agent shall ordinarily be heard first in support of his appeal and the respondent or his agent shall be heard next and in such case, the appellant shall be entitled to reply.

101. Hearing in the absence of parties. –

(1) Subject to rule 100, if, on the date fixed for hearing or any other date to which the hearing may be adjourned, the appellant does not appear either in person or by his agent, when the appeal is called for hearing, the Tribunal may decide it on merit, after hearing, the respondent or his agent, if present.

(2) Subject to rule 100 of these rules, if on the date fixed for hearing or on any other date to which the hearing may be adjourned, the respondent does not appear either in person or by his agent, when the appeal is called for hearing, the Tribunal may decide the same on merits, after hearing the appellant or his agent, if present.

(3) Adjournments referred to in sub-rule (1) or (2) shall not be allowed for more than three times.

102. Fresh evidence and witness. –

(1) No party to an appeal shall be entitled to adduce fresh evidence, whether oral or documentary before the Tribunal: Provided that—

(a) if the authority, from whose order the appeal is preferred, has refused to admit evidence which ought to have been admitted; or

(b) if any party including the Government seeking to adduce additional evidence, satisfies the Tribunal that such evidence, notwithstanding the exercise of due diligence was not within its knowledge or could not be produced by it at or before the time, when the order under appeal was passed; or

(c) if the Tribunal requires any documents to be produced or any witness to be examined for enabling itself to pass order, the Tribunal may allow such evidence or document to be produced or witness to be examined and in such case, the other party shall be entitled to produce rebutting evidence, if any.

(2) When fresh evidence has been adduced, the parties may, if they so desire address the Tribunal on points arising out of such fresh evidence.

103. Adjournment. –

(1) The Tribunal may, on such terms as it thinks fit, at any stage adjourn the hearing of any appeal.

(2) An application for adjournment shall ordinarily be presented in person or through his agent before the Tribunal and where the party, other than the Government sends the application by post or otherwise, he shall make his own arrangements for obtaining intimation of the date of adjournment at his own cost by enclosing postage stamp or reply paid telegram voucher:

Provided that no such adjournment shall be granted more than three times to a party.

104. Procedure in case of death of one of several appellants or of sole appellant. –

If an appellant dies while the appeal is pending and it can not be proceeded with unless his legal representative is made a party to the appeal, the Tribunal shall adjourn further proceedings to enable his legal representative to appear and apply for being made a party and if the legal representative fails to do so within ninety days from the date on which the appellant dies, the appeal shall abate as regards the appellant.

105. Procedure in case of death of one of several respondents or of sole respondent. –

If a respondent dies while appeal is pending and it cannot be proceeded with unless his legal representative is made a party to the appeal, the appellant shall apply to the Tribunal for making the legal representative of such respondent, a party to the appeal within ninety days from the date on which the respondent died and if the appellant fails to do so, the appeal shall abate as regards the deceased.

106. No abatement for reason of death after hearing. –

Notwithstanding anything contained in rules 104 and 105, there shall be no abatement by reason of death of any party between the conclusion of the hearing and passing of the order, but the order may, in such case be passed notwithstanding death and shall have the same force and effect as if it had been passed before the death took place and no legal representative need be made party in such case.

107. Determination of legal representative. –

If a question arises in any appeal, whether a person is or is not the legal representative of a deceased party, such question may be determined by the Tribunal in a summary way after taking evidence, if necessary.

108. Procedure in case of assignment. –

If during the pendency of an appeal before the Tribunal, the business of any dealer who is a party thereto is assigned to or devolves upon some other person either wholly or in part, the Tribunal may, on application of such assignee or such person on whom the business devolves, add such a person as a party to the appeal.

109. Procedure in case of insolvency. –

If a person, who is a party to an appeal, becomes insolvent and his estate becomes vested in the assignee or receiver, the latter may, by leave of the Tribunal, be made a party to the appeal.

110. Abatement or dismissal for failure of legal representative etc. to apply in time may be set aside. –

A person claiming to be the legal representative of a deceased appellant or the assignee or receiver of an insolvent appellant may, apply within sixty days from the date of abatement or dismissal of the appeal to have the abatement or dismissal set-aside and if it is proved to the satisfaction of the Tribunal that he was prevented by sufficient cause from appearing within time, the Tribunal shall set aside the abatement or dismissal and proceed with the appeal.

111. Passing of order. –

When the hearing of an appeal is complete, the Tribunal shall pass its order in writing forthwith or shall fix a date for the same and accordingly inform the parties concerned.

112. Certain matter to be specific in the order. –

The Tribunal shall state at the end of an order whether the appeal is dismissed or allowed, wholly or in part, and in the case of appeal, mention the relief granted, if any.

113. Supply of copies of order. –

Three copies of every order under section 78 passed by the Tribunal shall be forwarded to the Commissioner as soon as practicable and a copy of the order shall also be supplied free of cost and without application to the other party to the appeal.

114. Return of exhibits. –

(a) The parties, other than the Government, may apply for the return of the documents filed by them within three months from the date of communication of the order of the Tribunal under section 78 and if no such application is made within such period, the Tribunal shall not be responsible for any loss or damage to the documents.

(b) The record of the case and such other documents as may be produced by the State representative shall, after the disposal of the case, be returned to him along with the order of the Tribunal on the case on due acknowledgement.

115. Copies of documents on payment of fees. –

(1) Any party to the appeal before the Tribunal or his agent, may apply to the Registrar for a certified copy of any document including the order in the record of the appeal to which he is a party.

(2) The application shall be accompanied by requisite Court fee to cover the cost of preparing copies according to the scale laid down in rule 127.

(3) If the Registrar has any doubt about the propriety of granting a copy of any such document, he shall place the application before the Tribunal and act in accordance with the orders of the Tribunal.

116.Service of notice on Government. –

Notwithstanding anything contained in the rules, all notices required to be served on the Government shall be served on the State Representative.

117. Officers of the Tribunal. –

The powers and authorities, which, under the rules of practice of Tribunal are exercisable by the Registrar, except those expressly exempted by the Tribunal from time to time, may be exercised in his absence by the Section Officer of the office of the Tribunal.

118. Application to the Commissioner for revision. –

The application to the Commissioner for revision of an order passed by a Sales Tax Officer or an Assistant Commissioner, or as the case may be, an Additional Commissioner of Sales Tax may be filed within thirty days from the date of receipt by him of such order:

Provided that the Commissioner may admit an application for revision received after the period specified above if it is shown to his satisfaction that the appellant had reasonable cause for not preferring the application in time:

Provided that the application for revision shall be accompanied by requisite fee as specified in rule 125.

119.Revision by the Commissioner suo motu. –

The Commissioner may, on his own motion at any time within five years, from the date of passing of any order by the Assistant Sales Tax Officer, Sales Tax Officer, Assistant Commissioner, Deputy Commissioner of Sales Tax, Additional Commissioner of Sales Tax, or Special Commissioner of Sales Tax, as the case may be, call for records of proceedings in which such order was passed and if he considers that any order passed therein is erroneous in so far as it is prejudicial to the interest of the revenue, he may, after giving the dealer an opportunity of being heard and after making or causing to be made such enquiry, as he deems necessary, revise any such order.

120. Order on appeal or revision to be communicated to the officer concerned. –

A copy of the order on appeal or revision shall be sent to the officer whose order forms the subject matter of appeal or revision proceeding and also to the Commissioner and the date of receipt of the order by the Commissioner shall be deemed to be the date of receipt by the Government.

121. Order of assessment, appeal or revision to be communicated to the dealer. –

A copy of the order of assessment, appeal or revision shall be supplied to the concerned dealer free of cost and without application for the same.

CHAPTER XII

OFFENCES, PROSECUTION, AND COMPOSITION OF OFFENCES

122. Investigation of offences. –

The investigation of offences under sub-section (1) of section 85 shall not be entrusted to an officer below the rank of a Sales Tax Officer.

CHAPTER XIII

TRANSITIONAL PROVISIONS AND MISCELLANEOUS

123. Input tax credit in respect of stock held on the appointed day. –

(1) On the 1^stday of April, 2005, if a registered dealer has in stock, goods on which sales tax has been paid, he shall be entitled to the claim of a credit of sales tax paid or sales tax suffered in respect of those goods in hand on that date, which were purchased on or after 1^stday of April, 2004.

(2) The claim of input tax credit on sales tax under sub-rule (1) shall be subject to the following conditions, namely: –

(a) the dealer claiming credit shall be a registered dealer.

(b) The credit of input tax claimed shall be the tax paid on purchases made from a registered dealer under the repealed Act inside the State,

(c) a dealer claiming credit shall provide an inventory of all goods in hand on the 1^stday of April, 2005 on which tax credit is claimed.

(d) documentary evidence of payment of sales tax at the time of purchase of or evidence that the goods had suffered tax at the first point of sale in a series of sale under the repealed Act shall be made available for examination and shall be retained by such dealer.

(e) where documentary evidence as provided in clause (d), is available, the credit that can be claimed shall be the tax actually charged, paid or suffered under the repealed Act.

(f) a claim for credit of sales tax shall be made by the end of April 2005.

(g) the registered dealer shall keep all documents basing on which the claim for credit has been made and shall make available such documents for audit and admission of the claim of credit.

(h) the assessing authority shall verify and allow the claim of credit, as found admissible, within six months, from the date following the period of three months from the appointed day.

(i) the claim shall be made in Form VAT-607.

(3) When the claim of credit preferred by a registered dealer is accepted, he shall be communicated in Form VAT -608 the amount of claim admitted and the date from which it shall be availed.

(4) The input tax credit admitted shall be apportioned over a period six months in equal instalments and shall be adjusted against output tax payable.

(5) No credit under this rule shall be allowed to a registered dealer liable to pay turnover tax under clause (b) of section 9.

(6) Notwithstanding anything contained in sub-rules (1), (2), (3), (4) and (5), a registered dealer entitled to input tax credit on the stock held on the appointed day, can sell goods out of such stock in regular course of business and charge VAT on such sale.

124. Enrolment of Tax Practitioner. –

(1) A tax practitioner representing any person under clause (c) of sub-section (1) of section 91 before the Commissioner or the Tribunal or any Sales Tax authority shall be –

(a) a person, who has already been enrolled as a tax practitioner by the Commissioner in accordance with rule 96 of the Orissa Sales Tax Rules, 1947 and continuing as such on the date immediately before the appointed day; or

(b) a member of the Orissa Finance Service, who has held any post in any Government, local body or corporation for a period of not less than five years and is not in employment of such Government, local body, or corporation, as the case may be, on the date of application; or

(c) any person possessing a diploma in Taxation Laws conferred by any Indian University incorporated by any law for the time being in force.

(2) Any person possessing qualification specified in sub-rule (1) may apply in Form VAT-609 to the Commissioner for enrolment as tax practitioner with requisite Court fee as specified in rule 125.

(3) If the Commissioner is satisfied that the applicant has the required qualifications and has not been found guilty of misconduct in connection with any sales tax proceeding, he shall enroll such person as a tax practitioner or he may reject the application for reasons to be recorded in writing.

(4) The Commissioner may, by order, cancel or suspend the enrolment as tax practitioner if –

(a) he is found guilty of misconduct in connection with any sales tax proceeding;

(b) his enrolment has been found wrongly ordered.

(5) No order shall be passed by the Commissioner, rejecting an application for enrolment or canceling or suspending an enrolment unless the applicant or the tax practitioner, as the case may be, has been given a reasonable opportunity of being heard.

(6) Any applicant in respect of whom an order has been passed by the Commissioner rejecting his application for enrolment and any tax practitioner, in respect of whom an order has been passed by the Commissioner, cancelling or suspending the enrolment may, within one month from the date of receipt of such order appeal to the Government to have the order cancelled, and such order shall have effect immediately after expiry of one month from the date of receipt by such person or practitioner or where an appeal is preferred, until the disposal of said appeal.

(7) The Commissioner shall maintain in Form VAT-610 a register of tax practitioners to whom certificate of enrolment has been granted.

125. Fees. –

Subject to the provisions of rule 115, the following fees shall be payable-Explanation. – In this rule “the amount in dispute” means the difference between the

(i) On an application for issue of a duplicate copy of a certificate of registration under rule 23	Rupees one hundred
(ii) (a) On a memorandum of appeal under section 77 against an order of assessment or penalty (b) On memorandum of appeal under section 78. (c) A memorandum of cross-objection under section 78.	(a) Five per centum of the amount in dispute calculated to the nearest rupee subject a maximum of rupees five hundred (b) Rupees one hundred (c) Rupees ten
((iii) On an application for registration under rule 15	Rupees one hundred
((iv) On an application of revision of any other order or any other miscellaneous petition or petition for relief including the following: (a) Application for amendment	(a) Rupees fifty
or cancellation of certificate of registration. (b) Application for extension of time for payment of tax assessed and penalty imposed	(b) Rupees ten
((v) Application for adjournment in a proceeding before the Commissioner or any Sales Tax authority	Rupees ten

amount of tax or penalty, if any, or both demanded and the amount admitted by the dealer to be payable.

126. No fee for any objection. –

No fee shall be payable in respect of any objection whether written or verbal made in reply to a notice issued under sections 40, 42, 43, 44, 45 and 49 or in respect of an application seeking information only and which does not seek any specific relief or in respect of any memorandum of cross objection filed in response to notice issued under section 78.

127. Grant of certified copy of order. –

(1) If any dealer requires a certified copy of any order concerning him and passed by the Commissioner or any Sales Tax authority, he shall make an application to the Commissioner or such authority with Court fee stamp of rupees ten for ordinary copy and rupees twenty five for urgent copy.

(2) On receipt of the application, the dealer shall be informed of Court fee stamps that will be required under the provisions of sub-rule (3) for the supply of the copy and after necessary Court fee is paid by the dealer, a certified copy of the order shall be prepared and granted to him.

(3) The following is the scale of Court fee payable for grant of copies.

		Ordinary	Urgent copy
(i)	For every page of the document or part thereof written, electronically typed, or photocopied	Rupees ten	Rupees twenty-five
(ii)	Authentication fees	Rupees ten	Rupees twenty-five

128. Payment of fees. –

(1) Fees payable under the Act and these rules shall be paid in Court fee stamps.

(2) All Court fee stamps affixed to the memoranda or applications filed before the Commissioner or the Tribunal or any Sales Tax authority shall be punched immediately in the presence of the authority concerned.

129. Manner of issue of clearance certificate to a dealer or person. –

(1) Where a dealer requires a clearance certificate under section 99 such dealer shall make an application in duplicate in Form VAT-611, duly verified and signed by him, to the assessing authority.

(2) If the assessing authority, referred to in sub-rule (1), is satisfied that the application is in order and particulars furnished therein are correct, such authority shall, within one week from the date of receipt of such application, issue to such dealer a clearance certificate in Form VAT-612.

(3) A clearance certificate issued under sub-rule (2) shall remain valid till the end of the year during which the certificate is issued and the period of validity shall be specified in that certificate.

(4) A copy of the clearance certificate so issued shall be retained by the assessing authority for his record.

(5) Where the assessing authority does not issue a clearance certificate to a dealer under sub-rule (2), such authority shall, after giving the dealer an opportunity of being heard, reject his application within fifteen days from the date of receipt of such application for reasons recorded thereof and intimate him in writing accordingly.

130. Procedure for implementation of provisions relating to under - invoicing. –

(1) The officer-in-charge of check-post or barrier or an officer not below the rank of a Sales Tax Officer shall serve in Form VAT-613 a notice on any person in charge of the goods or the dealer, as the case may be, under sub-section (1) of section 101.

(2) Where the driver or person-in-charge of the goods makes payment of the tax demanded under sub-rule (1), the officer-in-charge of the check-post or barrier shall, on realisation of such tax, release the vehicle detained by him.

(3) If the dealer or the driver or person-in-charge of goods fails to comply with the terms of the notice served under sub-rule(1), the officer-in-charge of the check-gate or barrier or the Sales Tax Officer, as the case may be, shall pass an order for the purchase of such goods stating therein the reasons for such purchase and serve a notice in Form VAT-614 along with the order so passed upon such dealer, driver or any other person-in-charge of the goods, as the case may be, offering to purchase the goods at the price determined under sub-section(3) of section 101.

(4) If the dealer, driver or the person-in-charge of the goods is aggrieved against the order of the officer-in-charge of the check-post or barrier or the Sales Tax Officer, as the case may be, he shall have the right of revision to the Assistant Commissioner of the range having jurisdiction.

131. Service of notice. –

(1) Any notice which is issued under the provisions of the Act or these rules may be served on a dealer or person by any of the following modes, namely :–

(a) by giving or tendering it directly or by a messenger including a courier to such dealer or his manager or agent, or the tax practitioner representing the dealer in the proceeding to which the order or notice relates; or

(b) by giving or tendering it to some adult member of his family, if such dealer or manager or agent is not present at his place of residence or business ; or

(c ) by sending it to him 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 modes and the dealer is avoiding its service or that for any other reason, the notice can not be served upon him by any of the above mentioned modes, the said authority may, after recording the reasons for so doing, cause such notice to be served by affixing a copy thereof in some conspicuous place in his office or also upon some conspicuous part of the last notified place of his business, and a notice so served shall be 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.

132. Punishment for breach of rules. –

Any person contravening any provision of the rules shall be punishable with a penalty, which may be imposed after allowing such person an opportunity of being heard, not exceeding ten thousand rupees and where the contravention is a continuing one, with a daily penalty of a sum not exceeding rupees five hundred during continuance of the contravention.

APPENDIX

(See rule 6)

Sl. No.	Name of the works contract	Percentage of labour, service and like charges of the total value of the works
1	Fabrication and installation/erection of-(a) Plant and machinery, (b) Structurals including trusses and purlines, (c) Cranes and hoists, (d) Elevators, lifts and escalators, (e) Shutters and collapsible gates.	20%
2	Supplying and fixing/installation of-(a) Door, windows, grills including its frames & furniture and fixtures, (b) Air-conditioning equipments including Deep Freezer, Cold storage plants, Dehumidifiers, (c) Air-conditions and air-coolers, (d) Electric goods, electrical equipments including transformers, electronic equipments, aspirators appliance and devices.	15%
3	Civil works like-(a) Construction of Buildings, (b) Construction of Bridges and Culverts, (c) Construction of Roads, (d) Supplying, fixing and polishing of mosaic tiles, (e) Supplying, fixing and polishing of marbles, (f) Supplying, fixing of stones other than those described in clause (d) and (e)	30% 30% 50% 20% 15% 15%
4	Sanitary fitting and plumbings	10%
5	Painting and polishing	30%
6	Supplying and laying pipes	10%
7	Construction of bodies of Motor vehicle and construction of trailers	20%
8	Services and maintenance of instruments, equipments, appliances, plants and machinery.	90%
9	Tyre Rethreading	75%
10	Processing and supplying of photo negatives	60%
11	Electroplating, electro-galvanising, amodising and the like	50%
12	Lamination, rubberisation, framing, coating and similar processes	60%
13	Printing and Block making	50%
14	Supply and installation of weighing machine and weigh bridges	15%
15	All other works contract	20%