PRELIMINARY
1. Short title,
extent and Commencement.
(1) This Act may be called the Gujarat Value
Added Tax Act, 2003
(2) It extends to the whole of the State of
(3) This section shall come into force at
once and the remaining
provisions of this Act shall come into force on such date as the
State Government may, by notification in the Official Gazette, appoint, and
different dates may be appointed for different provisions
In
this Act, unless the context otherwise requires,
(1) “agriculture”
with all its grammatical variations and cognate expressions includes
floriculture, horticulture, the raising of crops, grass or garden produce, and
grazing; but does not include dairy farming, poultry farming, stock breeding or
the mere cutting of wood or grass or gathering of fruits;
(1) “agriculturist” means a person who cultivates land personally
for the purpose of agriculture;
(1) “appointed day” means
the 1st day of April, 2003;
(2)
“business”
includes –
(i) any
trade, commerce or manufacture or any adventure or concern in the nature of
trade, commerce or manufacture, whether or not such trade, commerce,
manufacture, adventure or concern is carried on with a motive to make profit or
gain and whether or not any profit or gain accrues from such trade, commerce,
manufacture, adventure or concern; and
(ii) any transaction of buying, selling or
supplying plant, machinery, raw materials, processing materials, packing
materials, empties, consumable stores, waste products, or such other goods, or
waste or scrap of any of them which is ancillary or incidental to or resulting
from such trade, commerce, manufacture, adventure or concern;
(3) “capital goods”
means plant and machinery meant for use in manufacture and such other goods, as
may be notified by the State Government from time to time in the official
gazette;
(4) “Central Act” means the Central Sales Tax Act, 1956; LXXIV OF
1956.
(5) “commission
agent” means a dealer who bonafide buys or sells, for an agreed commission, any
goods on behalf of principals;
(6) “Commissioner ”
means the person appointed to be the Commissioner of Commercial Tax for the
purposes of this Act.
(7) (a) “to
cultivate” means to carry on any agricultural operation; and
(b) “to cultivate
personally” means to cultivate on one’s own account
(i)
by one’s own labour, or
(ii)
by the labour of one’s own family, or
(iii) by servants on
wages payable in cash or kind (but not in crop share), or by hired labour under
one’s personal supervision or the personal supervision of any member of one’s
family.
Explanation II.--In the
case of a Hindu Undivided Family, land shall be deemed to be cultivated
personally if it is cultivated by any member of such family;
(10) “dealer” means any person who, for the
purpose of or consequential to his engagement in or, in connection with or
incidental to or in the course of his business buys, sells, manufactures, makes
supplies or distributes goods, directly or otherwise, whether for cash or
deferred payment, or for commission, remuneration or otherwise and includes,
(a) the Central Government or a State
Government or any local authority such as municipality or municipal corporation
or panchayat, a statutory authority, a company, a partnership firm, a Hindu
Undivided Family or any society, club, association or body, incorporated or
not, of persons which carries on business;
(b) a casual dealer, that is to say, a
person who whether as principal, agent or in any other capacity, undertakes
occasional transaction of a business nature in any exhibition-cum-sale or
auction or otherwise in the State, whether for cash, deferred payment,
commission, remuneration or other valuable consideration;
(c) an auctioneer,
who sells or auctions goods belonging to any principal whether disclosed or not
and whether the offer of the intending purchaser is accepted by him or by the
principal or a nominee of principal;
(d) a factor, broker, commission agent, del
credere agent or an auctioneer or any mercantile agent, by whatever name called, who carries on
business on behalf of any principal whether disclosed or not;
(e) any person who transfers, otherwise than
in pursuance of a contract, property in any goods for cash, deferred payment or
other valuable consideration;
(f) any person who
transfers property in goods (whether as goods or in some other form) involved
in the execution of a works contract;
(g) any person who
delivers goods on hire purchase or any system of payment by installments;
(h) any person who
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;
and
(i) any person who supplies, by way of or
as part of any service or in any other manner whatsoever, goods being food or
any other article for human consumption or any drink (whether or not
intoxicating) where such supply or service is for cash, deferred payment or
other valuable consideration.
Explanation.-- (i) A
society (including a co-operative society), club or firm or an association,
which, whether or not in the course of business, buys, sells, supplies or
distributes goods, directly or otherwise, from or to its members or other
persons for cash, deferred payment, commission, remuneration or other valuable
consideration, shall be deemed to be dealer for the purposes of this Act.
(ii) The Central Government or a State
Government or a local authority or railway administration or port trusts or a
statutory body, which, whether or not in the course of business, buys, sells,
supplies or distributes goods, directly or otherwise, for cash, deferred
payment, commission, remuneration or other valuable consideration, shall be
deemed to be dealer for the purposes of this Act.
(iii) Any person or body, which disposes of any
goods including unclaimed, confiscated, unserviceable, scrap, surplus, old,
obsolete, discarded, waste or surplus product or goods, whether by auction or
otherwise, directly or through an agent, for cash deferred payment, commission,
remuneration or other valuable consideration, shall be deemed to be dealer for
the purposes of this Act.
Exceptions.--The
following shall not be deemed to be a dealer within the meaning of this clause,
namely:
(i) an
agriculturist who sells exclusively agricultural produce grown on land
cultivated by him personally;
(ii) an individual who sells exclusively any
fish or any sea-food caught by him personally or by any member of his family on
account of or on behalf of such individual; and
(iii) a charitable, religious or educational
institution, carrying on the activity of manufacturing, buying, selling or
supplying goods, in performance of its functions, for achieving its avowed
objects, which are not in the nature of business.
(11) “declared goods” means goods declared
to be of special importance in
inter-State trade
or commerce under section 14 of the Central Act; of 1956.
(12) “earlier law”
means the Gujarat Sales Tax Act, 1969 and the
(13) “goods” means all kinds of movable
property (other than newspapers, actionable claims, electricity, stocks and
shares and securities) and includes live stocks, all materials, articles and
commodities and every kind of property (whether as goods or in some other form)
involved in the execution of works contract, all intangible commodities and the
amount of cash, deferred payment or other valuable consideration paid or
payable therefor,
growing crops, grass, standing
timber or things attached to or forming part of the land, which are agreed to
be severed before sale or under the contract of sale;
(14)
“manufacture”
with its grammatical variations and cognate expressions means includes
producing, making, extracting, collecting, altering, ornamenting, finishing,
assembling or otherwise processing, treating or adapting any goods; but does
not include such
(15)
“person”
includes an individual, a joint family or Hindu Undivided Family, a company, a
firm, an association of persons or body of individuals, whether incorporated or
not, a society, club or other institution, a local authority, the Central
Government or a State Government and every artificial juridical person not
falling within any of the preceding descriptions;manufactures or manufacturing
processes as may be prescribed;
(16)
“place
of business” means any place where a dealer carries on business and includes,-
(a) a warehouse,
godown or other place where a dealer stores or processes his goods;
(b) any place where
a dealer produces or manufactures goods;
(c) any place where a
dealer keeps his books of accounts;
(d) any vehicle or
vessel or any other carrier wherein the goods are stored or used for
transporting the goods;
(e) any place of
business of an agent by whatever name called through whom a dealer carries on
business;
(17)
“prescribed ”
means prescribed by rules;
(18) “purchase price“ means
the amount of valuable consideration paid or payable by a person for any
purchase made including the amount of duties levied or leviable under the
Central Excise Tariff Act, 1985 or the Customs Act, 1962 and any sum charged
for anything done by the seller in respect of the goods at the time of or
before delivery thereof, other than the cost of insurance for transit or of
installation, when such cost is separately charged and includes,
(a) in relation
to –
(i)
the
transfer, otherwise than in pursuance of a contract of property in any goods,
(ii) the supply of
goods by any unincorporated association or body of persons to a member thereof,
(iii) the supply by way
of or as part of any service or in any other manner whatsoever, of goods, being
food or any other article for human consumption or any drink (whether or not
intoxicating),
(b) in relation to the transfer of property
in goods (whether as goods or in some other form) involved in the execution of
a works contract, such amount as is arrived at by deducting from the amount of
valuable consideration paid or payable by a person for the execution of such
works contract, the amount representing labour charges for such execution,
(c) in relation to the delivery of goods on
hire purchase or any system of payment by installments, the amount of valuable
consideration payable by a person for such delivery;
(19) “raw materials” means goods used as
ingredient in the manufacture of other goods and includes processing materials,
consumable stores and material used in the packing of the goods so manufactured
but does not include fuels for the purpose of generation of electricity;
(20) “registered
dealer“ means a dealer registered under the provisions of this Act, who holds a
certificate of registration granted or deemed to have been granted under this
Act;
(21) “resale” means a sale of purchased
goods,
(i) in the same
form in which they were purchased; or
(ii) without using them in the manufacture of
any goods or without doing anything to them which amounts to or results in, a
manufacture; and the word “resell” shall be construed
accordingly;
(22) “rules” means the
rules made under this Act;
(23) “sale” means a
sale of goods made within the State for cash or deferred payment or other
valuable consideration and includes,
(a) transfer,
otherwise than in pursuance of a contract, of property in goods for cash,
deferred payment or other valuable consideration,
(b) transfer of
property in goods (whether as goods or in some other form) involved in
execution of a works contract,
(c) delivery of goods on hire purchase or any system of payment
by installments,.
(d) transfer of the
right to use any goods for any purpose (whether or not for a specified
period) for cash, deferred payment or
other valuable consideration,
(e) supply of goods
by any unincorporated association or body of persons to a member thereof for
cash, deferred payment or other valuable consideration,
(f) supply of goods
by a society or club or an association to its members on payment of a price or
of fees or subscription or any consideration,
(g) supply of goods
by way of or as part of any service or in any other manner whatsoever, of
(h) supply of goods
being food or any other article for human consumption or any drink (whether or
not intoxicating) where such supply or service is for cash, deferred payment or
other valuable consideration,
(i) supply by
way of barter of goods,
(j) disposal of
goods by a person in the manner prescribed in Explanation (iii) to clause 10 but
does not include a mortgage, hypothecation, charge or pledge; and the words
“sell”, “buy” and “purchase” with all their grammatical variations and cognate
expressions shall be construed accordingly.
Explanation.-(i) -For
the purposes of this clause, “sale within the State” includes a sale determined
to be inside the State in accordance with the principles formulated in
sub-section (2) of section 4 of the Central Act;
(ii) for the purpose of sub-clause (b) of the expression “works
contract” means a contract for execution of works and includes such works
contract as the State Government may, by notification in the Official Gazette,
specify;
(iii) every transfer of property in goods by the
Central Government, any State Government, a statutory body or a local authority
for cash, deferred payment or other valuable consideration, whether or not in
the course of business, shall be deemed to be a sale for the purposes of this Act;
(24) “sale price” means the amount of valuable
consideration paid or payable to a dealer or received or receivable by a dealer
for any sale of goods made including the amount of duties levied or leviable
under the Central Excise Tariff Act, 1985 or the Customs Act, 1962 and any sum
charged for anything done by the dealer in respect of the goods at the time of
or before delivery thereof, and includes,
(a) in relation
to –
(i) the transfer, otherwise than in
pursuance of a contract, of property in any goods,
(ii) the transfer of the right to use any
goods for any purpose, whether or not for a specified period,
(iii)
the supply of goods by any unincorporated
association or body of persons to a member thereof,
(iv) the
supply by way of or as part of any service or in any other manner whatsoever,
of goods, being food or any other article
for human consumption or any drink (whether or not intoxicating), the
amount of cash, deferred payment or other valuable consideration paid or
payable therefore;
(b) in relation to the transfer of property
in goods (whether as goods or in some other form) involved in the execution of a works
contract, such amount as is arrived at by deducting from the amount of valuable
consideration paid or payable to a person for the execution of such works
contract, the amount representing labour charges for such execution;
(c) in relation to the delivery of goods on
hire purchase or any system of payment by installments, the amount of valuable
consideration payable to a person for such delivery;
(25) “Schedule” means a Schedule appended to this Act;
(26) “the State” means the State of
(27) “tax” means a tax
leviable and payable under this Act on sales or purchase of goods and includes
lumpsum tax leviable or payable under section 14;
(28) “tax period” means a calendar month or
a quarter as may be prescribed by the State Government;
(29) “taxable goods”
means goods other than those on the sales or purchase of which no tax is
payable under section 5;
(30) “taxable turnover”
means the turnover of all sales or purchases of a dealer during the prescribed
period in any year, which remains after deducting therefrom,
(a) the turnover
of sales not subject to tax under this Act;
(b) the turnover of goods declared exempt
under sub-section (1) of section 5 or under a
notification under sub-section (2) of section 5, and
(c) in case of
turnover of sales in relation to works contract, the charges towards labour,
service and other like charges, and subject to such conditions as may be
prescribed:
Provided that in the
cases where the amount of charges towards labour, service and other like
charges in such contract are not ascertainable from the terms and conditions of
the contract, the amount of such charges shall be calculated in such manner as
may be prescribed;
(31) “Tribunal” means the tribunal constituted under section 19;
(32) “turnover of purchases” means the aggregate
of the amounts of purchase price paid or payable by a dealer in respect of any
purchase of goods made by him during a given period after deducting the amount
of purchase price, if any, refunded to the dealer by the seller in respect of
any goods purchased from the seller and returned to him within the prescribed
period;
(33) “turnover of sales” means the aggregate of
the amount of sale price received or receivable by a dealer in respect of any
sale of goods made during a given period after deducting the amount of sale
price, if any, refunded by the dealer to a purchaser, in respect of any goods
purchased and returned by the purchaser within the prescribed period;
(34) “total turnover” means aggregate of
the following transactions effected by a dealer:
(a) turnover of
sales or purchases of goods within the State whether such sales or purchases of goods are taxable or exempt under this Act;
(b) turnover of
sales of goods in the course of inter-State trade or commerce;
(c) turnover of
sales of goods in the course of export of goods out of the
(d) turnover of sales by a dealer on his own account and also on
behalf of his principal.
(35) “value of goods” means the value as
ascertained from the purchase invoices or bills and includes insurance charges,
excise duties, countervailing duties, value added tax, sales tax, transport
charges, freight charges and all other charges incidental to the transaction of
the goods:
Provided
that where the purchase invoices or bills are not produced or when the goods
are acquired or obtained otherwise than by way of purchase, the value of goods
shall be the value at which the goods of like kind or quality are sold or are
capable of being sold in open market;
(36) “year” means –
(i) in relation to
any dealer who maintains regular books of accounts, the year by reference to
which the accounts are maintained by him; and
(ii) in relation
to any other dealer, a financial year :
Provided that a
registered dealer shall not be entitled to vary the year by reference to which
he maintains his books of accounts, except with the consent of the Commissioner
and upon such conditions as the Commissioner may determine.
INCIDENCE
AND LEVY OF TAX
(1) Subject to the provisions of this Act,
every dealer, of tax.
(i) whose total turnover during the year
immediately preceding the appointed day exceeded rupees five lakhs and whose
taxable turnover exceeded rupees ten thousand in a year (the aforesaid amounts
of total turnover and taxable turnover are hereinafter referred to as
“thresholds of turnover”), or
(ii) who was
registered under the earlier law or under the Central Act as on the appointed
day, or
(iii) whose total turnover and taxable turnover in any year first exceed
the thresholds of turnover, or
(iv) who is registered or liable to be registered as a dealer
under this Act or under the Central Act at any time after the appointed day shall be liable to pay
tax in accordance with the provisions of this Act.
(2) Notwithstanding anything contained in
this section, a casual dealer or an auctioneer shall be liable to be registered
if his taxable turnover of sales exceeds ten thousand rupees and he shall be
liable to pay tax in accordance with the provisions of this Act.
(3) The dealer shall be liable to pay tax,-
(a) in case of
clauses
(i) and
(ii) of sub-section (1), with effect from the
appointed day;
(b) in case of
clause
(iii) of sub-section
(1), with immediate effect when his turnover calculated from the commencement
of the year first exceeds the thresholds of turnover;
(c) in case of
clause (iv) of sub-section (1), with immediate effect when he becomes so liable
or the date of registration under this Act, whichever is earlier:
Provided
that the dealer shall not be liable to pay tax in respect of thresholds of turnover
as takes place during the period prior to the relevant date of effect under
this sub-section.
(4) Every dealer who has become liable to pay
tax under this Act shall continue to be so liable until the expiry of one year
during which his turnover has remained below the thresholds of turnover and
such further period after the date of such expiry as may be prescribed; and on
the expiry of such further period his liability to pay tax shall cease:
Provided that any dealer
whose liability to pay tax under this Act ceases or his total turnover and
taxable turnover during the year remains below the thresholds of turnover, may
apply for the cancellation of his certificate of registration; and on such
cancellation, his liability to pay tax shall cease and such dealer shall remain
liable to pay tax till his certificate of registration is cancelled.
(5) Every dealer whose liability to pay tax
under this Act has ceased under sub-section (4) or whose certificate of
registration has been cancelled, shall, if his total turnover of sales or
purchases calculated from the commencement of any year (including the year in
which the registration has been cancelled) again exceeds the thresholds of turnover,
on any day within such year, be liable to pay tax with effect from the date
immediately following the day on which his total turnover again exceeds
thresholds of turnover of sales effected by him after that date.
(6) Where by an order passed under this Act,
it is found that any person registered as a dealer ought not to have been so
registered, then, notwithstanding anything contained in this Act, such person
shall be liable to pay tax for the period commencing with the date of his
registration and ending with the date of such order, as if he were a dealer.
4. Certain sales and purchases not liable
to tax.
Nothing contained in
this Act or the rules made thereunder shall be deemed to impose or authorise
the imposition of tax on any sale or purchase of any goods where such sale or
purchase takes place
(a) in the course
of inter-State trade or commerce; or
(b) outside the
State; or
(c) in the course of
the import of goods into or export of goods out of the
Explanation.- Section 3, 4
and 5 of the Central Act shall apply for determining whether or not a particular sale or purchase has taken place in the manner
indicated in clause (a), (b) or (c).
(1) The goods
specified in the Schedule I shall be exempt from tax subject to the conditions
and exceptions set out therein.
(2) Subject to such conditions as it may
impose, the State Government may, if it considers necessary so to do in the
public interest, by
notification
in the official gazette,
(a) exempt any class
of sales or purchases from payment of the whole of the tax payable under the provisions
of this Act.
(b) grant exemption
from payment of whole of tax in respect of any class of sales or purchases for
the purpose of promoting the scheme of Special Economic Zones or promoting
exports.
(3) Every notification issued under
sub-section (2) shall be laid for not less than thirty days before the State Legislature
as soon as possible after it is issued and shall be subject to rescission by
the State Legislature or to such modifications as the State Legislature may
make, during the session in which it is so laid or session immediately
following. Any rescission or modification so made by the State Legislature
shall be published in the Official Gazette, and shall thereupon take effect.
Subject to the other provisions of
this Act, every dealer, who is liable to pay tax under this Act, shall pay the
tax leviable in accordance with the provisions of this Act.
7. Levy of tax on
turnover of sales and rates of tax.
(1) Subject to the provisions of this Act,
there shall be levied a tax on the turnover of sales of goods specified in
Schedule II at the rate set out against each of them in the said Schedule.
(2) Subject to such conditions as it may
impose, the State Government may, if it considers necessary so to do in the
public interest, by notification in the Official Gazette, add to or omit from,
or otherwise amend or modify the Schedule, prospectively or retrospectively, or
transpose any entry or part of any entry from one Schedule to the other
Schedule or reduce the rate of tax payable in respect of any goods and
thereupon the Schedule shall be deemed to have been amended accordingly.
(3) Every notification issued under
sub-section (2) shall be laid for not less than thirty days before the State
Legislature as soon as possible after it is issued and shall be subject to
rescission by the State Legislature or to such modifications as the State
Legislature may make, during the session in which it is so laid or session
immediately following. Any rescission or modification so made by the State
Legislature shall be published in the Official Gazette, and shall thereupon
take effect.
(1) The
provisions of sub-section (2) shall apply where, in relation to the sales of
taxable goods by any registered
dealer
(a) that sale has
been cancelled; or
(b) the
consideration previously agreed upon for that sale has been altered by
agreement with the recipient, whether due to the offer of a discount or for any
other reason; or
(c) the goods or
part of the goods sold have been returned to the seller, and as a result of the
occurrence of any one or more of the above-mentioned events of such sales, the
seller has
(i) provided a tax
invoice in relation to that sale and the amount shown therein as tax charged on
that sale is incorrect in relation to
the amount properly chargeable on that sale; or
(ii) furnished a
return in relation to the period in respect of which tax on that sale is
attributable, and has accounted for an
incorrect amount of tax on that sale in relation to the
amount properly chargeable on that sale.
(2) Where
a seller has accounted for either in the tax invoice or in the return an
incorrect amount of tax as contemplated
in sub-section (1), such seller shall make an adjustment in calculating the tax
payable by him in the return for the
tax period during which it has become apparent that the tax is incorrect. Such
adjustment shall be made in the following manner, namely:
(a) if the amount of tax chargeable in relation to that sale
exceeds the amount of tax actually accounted for by the seller, the amount of
that excess shall
be deemed to be tax charged by such seller in relation to a taxable sale attributable to the tax
period in which the
adjustment
is to be made, and shall not be attributable to any prior tax period; or
(b) the amount of
tax actually accounted for exceeds the amount of tax properly chargeable in
relation to that sale, such seller shall
reduce the amount of tax attributable to the said
tax period in terms of section 7 by that excess amount of tax:
Provided that the reduction in the amount of tax under clause
(b) shall not be made
(a) where the
excess tax has been borne by the purchaser of goods, or
(b) if the relevant
event as described in sub-section (1) has occurred subsequent to the period of
six months of the sales made by the dealer.
(1) Where
a dealer who is liable to pay tax under this Act purchases Levy ofany taxable
goods from a person who is not a registered dealer, then there purchase shall
be levied on such dealer a purchase tax on the turnover of such
purchases at
the rate set out against each of such goods in Schedule II of this Act.
(2) Where a registered dealer purchases
sugarcane from a person who is not a registered dealer, for the purpose of use
thereof in the manufacture of sugar or khandsari, there shall be levied a
purchase tax on the purchase of such sugarcane at the rate set out therefor in
Schedule II of this Act.
(3) Where any person or dealer has purchased
any taxable goods under a certificate or declaration given by him under any
provision of this Act or earlier law, rule or notification, and the conditions,
recitals or undertakings of such certificate or declaration are not complied
with, then such person or dealer shall be liable to pay purchase tax on the
turnover of such purchases at the rate set out against each of such goods in
Schedule II of this Act or at the applicable rate of tax under the earlier law,
whichever is higher.
10. Rate of tax on packing materials.
Notwithstanding
anything contained in this Act and contract of sale, where goods packed in any
materials are sold, the materials in which the goods are so packed shall be
deemed to have been sold or purchased alongwith the goods and the tax shall be
leviable on such sales or purchases of the materials at the rate of tax, if
any, as applicable to the sales or as the case may be, purchase of the goods
themselves.
(1) (a) A
registered dealer who has purchased the taxable goods (hereinafter referred to
as the “purchasing dealer”) shall be entitled to claim tax credit equal to the
amount of,
(i) tax collected from him, by a registered
dealer who has sold such goods to him or the tax payable by him to a registered
dealer who has sold such goods to him during the tax period, or
(ii) tax paid by him
during the tax period under sub-section (1) or (2) of section 9.
(b) The tax credit to be so claimed under
this sub-section shall be subject to the provisions of sub-sections (2) to
(12); and the tax credit shall be calculated in such manner as may be
prescribed.
(2) The registered dealer who intends to
claim the tax credit shall maintain the register and the books of accounts in
such manner as may be prescribed.
(3) (a) Subject to the provisions of this
section, tax credit to be claimed under sub-section (1) shall be allowed to a
purchasing dealer on his purchase of taxable goods made in the State, which are
intended for the purpose of
(i) sale or
re-sale by him in the State;
(ii) sale in the
course of inter-State trade and commerce;
(iii) branch transfer
or consignment of taxable goods to other States (subject to the provision of
Sub-clause (b) below);
(iv) sales in the
course of export out of the
(v) ales to export
oriented units of the units in Special Economic Zones for sale in the in the
course of export out of the
(vi) use as raw material in the manufacture of taxable goods
intended for (i) to
(v) above or in the packing of the goods so manufactured.
Provided that if
purchases are used partially for the purposes specified in this sub-section,
the tax credit shall be allowed proportionate to the extent they are used for
the purposes specified in this sub-section”.
(b) Notwithstanding anything contained in this
section, the amount of tax credit in respect of a dealer shall be reduced by
the amount of tax calculated at the rate of four per cent. on
the turnover of purchases
(i) of taxable
goods consigned or dispatched for branch transfer or to his agent outside the
State, or
(ii) of goods taxable
which are used as raw materials in the manufacture, or in the packing of goods
which are dispatched outside the State in the course of branch transfer or
consignment or to his agent outside the State.
(4) The tax credit shall not be claimed by
the purchasing dealer until the tax period in which he receives from a
registered dealer from whom he has purchased taxable goods, a tax invoice (in
original) Containing Particulars as may be prescribed under Sub-section (1) of
Section 60 evidencing the amount of tax.
(5) Notwithstanding anything contained in this Act, tax credit
shall not be allowed for purchases
(a) made from any
person other than a registered dealer under this Act;
(b) made from a
dealer who is not liable to pay tax under this Act;
(c) made from a registered dealer who has
been permitted under section 14 to pay lump sum amount of tax in lieu of tax.;
(d) made prior to
the relevant date of liability to pay tax as provided in sub-section (3) of
section 3;
(e) made in the
course of inter-State trade and commerce;
(f) of the goods
which are disposed of otherwise than in sale, resale or manufacture;
(g) of the goods
specified in the Schedule I or the goods exempt from whole of tax by a
notification under sub-section (2) of section 5;
(h) of the goods
which are used in manufacture of goods specified in Schedule I or in the
packing of goods so manufactured;
(i) of the goods which are in the nature of
capital goods as defined in clause (5) of section 2 and which are meant for use
as capital goods in the manufacture;
(j)
of vehicles of any type and its equipment,
accessories or spare-parts (except when purchasing dealer is engaged in the
business of sales of such goods)
(k) property or
goods not connected with the business of the dealer;
(l) of the goods
which are used as fuel in generation of electrical energy meant for captive use
or otherwise;
(m) of the goods
which are used as fuel in motor vehicles;
(n) of the goods which remain as unsold stock at the
time of closure of business;
(o) where original
invoice does not contain the details of tax charged separately by the selling
dealer from whom purchasing dealer has
purchased the goods;
(p) where original
tax invoice is not available with purchasing dealer or there is evidence that
the same has not been issued by the selling dealer from whom the goods are
purported to have been purchased;
Notwithstanding anything
contained in clause (a) or (b) in this sub-section and subject to conditions as
may be prescribed, a registered dealer shall be allowed to claim tax credit in
respect of purchase tax paid by him under subsection (1) or (2) of section 9.
(6) The State Government may, by notification
in the Official Gazette, specify any goods or the class of dealers that shall
not be entitled to whole or partial tax credit.
(7) Where a registered dealer without
entering into a transaction of sale, issues to another registered dealer tax
invoice, retail invoice, bill or cash memorandum with the intention to defraud
the Government revenue or with the intention that the Government may be
defrauded of its revenue, the Commissioner may, after making such inquiry as he
thinks fit and giving a reasonable opportunity of being heard, deny the benefit
of tax credit, in respect of such transaction, to such registered dealers
issuing or accepting such tax invoice, retail invoice, bill or cash memorandum
either prospectively
or
retrospectively from such date as the Commissioner may, having regard to the
circumstances of the case, fix.
(8) If the goods purchased were intended for
the purposes specified under sub-section (3) and are subsequently used fully or
partly for purposes other than those specified under the said sub-section or
are used fully or partly in the circumstances described in sub-section (5), the
tax credit, if availed of, shall be reduced on account of such use, from the
tax credit being claimed for the tax period during which such use has taken
place; and such reduction shall be done in the manner as may be prescribed.
(9) The registered dealer may claim the
amount of net tax credit, which shall be determined in the manner as may be
prescribed.
(10) Where any purchaser, being a registered
dealer, has been issued with a credit note or debit note in terms of section 61
or if he returns or rejects goods purchased, as a consequence of which the tax
credit availed by him in any period in respect of which the purchase of goods
relates, becomes either short or excess, he shall compensate such short or
excess by adjusting the amount of tax credit allowed to him in respect of the
tax period in which the credit note or debit note has been issued or goods are
returned, subject to such conditions as may be prescribed.
(11) A registered dealer shall apply fair and
reasonable method to determine, for the purpose of this section, the extent to
which the goods are sold, used, consumed or supplied, or intended to be sold,
used, consumed or supplied. The Commissioner may, after giving the dealer an
opportunity of being heard and for the reasons to be recorded in writing,
reject the method adopted by the dealer and calculate the amount of tax credit
as he deems fit.
(12) Subject to the exceptions as may be
prescribed by the rules, any dealer including the Commission agent shall not be
permitted to transfer his tax credit to any other dealer or as the case may be,
the principal.
Explanation..—For the purpose of this section the amount of tax credit
on any purchase of goods shall not exceed the amount of tax actually paid or
payable under this Act in respect of the same goods.
12. Tax credit for
stock on 31st March, 2003.
(1) Within the period as may be prescribed,
all the dealers who are deemed to have been registered under section 23 shall
furnish in such form and to such authority as may be prescribed, a statement of
taxable goods under this Act held in stock on the 31st March, 2003
for which the dealer intends to claim tax credit under this Act.
Explanation.--For the
purpose of this section, “taxable goods held in stock” includes taxable goods
in the process of use in the manufacture as on the 31st March, 2003.
(2) A registered dealer who has submitted the
statement of taxable goods under sub-section (1) shall not be permitted to make
any changes in the details of such statement if such changes result in increase
in the tax credit claimed in the statement of taxable goods.
(3) If the goods shown in the statement referred to in sub-section
(1) –
(a) were
liable to tax under the earlier law, and the purchasing registered dealer had
paid the amount of tax to the selling registered dealer under the earlier law
or had paid purchase tax under the earlier law, and
(b) are intended to be
used for the purposes specified in sub-section (3) of section 11 –
then the amount of tax
so paid by the purchasing dealer on such goods, determined in such manner and
subject to the provisions of section 11 as far as they may apply and further
subject to such conditions and restrictions and to such extent as may be
prescribed, shall be allowed as the tax credit to the dealer referred to in
sub-section (1). Such tax credit shall be available as the outstanding credit
brought forward for being claimed in such manner as may be prescribed.
(4) Notwithstanding anything contained in
this section, no tax credit under this section shall be allowed in respect of
those goods,
(a) which are not
taxable under this Act or the earlier law;
(b) which are not
included in the statement of taxable goods referred to in sub-section (1);
(c) for which the dealer does not have in his
possession sales vouchers issued by a dealer registered under the earlier law,
against the purchases of the said goods or for which purchases tax payable
under erlier law has not been paid by the 31st March, 2003;
(d) which are not
recorded in the books of accounts of the dealer claiming tax credit under this
section; or
(e) which are
declared as “prohibited goods” under clause (21) of section 2 of the Gujarat Sales Tax Act, 1969,
(5) Where the amount of tax on the goods
purchased is not indicated separately on the sale vouchers, the tax credit
under this section shall be calculated in the manner as may be prescribed.
(6) The provisions of section 11 shall apply
mutatis-mutandis to the tax credit to be availed of under this section.
(7) If the Commissioner is satisfied that a dealer –
(a) has claimed tax credit for such stock for
which he is not entitled for claiming tax credit as per the provisions of
section 11 and sub-sections (3) and (4) of section 12, or
(b) has claimed excess tax credit than what
he is entitled to under section 11 or under this section the Commissioner may, after giving the
dealer an opportunity of being heard direct him to pay a penalty equal to twice
the amount of tax credit so claimed.
13. Net amount of Value Added Tax.
The net amount of Value Added Tax for a tax period payable shall
be determined after the adjustment of tax credit in the manner as may be
prescribed.
14. Option for payment of lumpsum tax in
lieu of tax on sales.
(1) (a) Notwithstanding
anything contained in this Act, the Commissioner may, in such circumstances and
subject to such conditions as may be prescribed, permit any dealer, who is not
engaged in the activity of manufacture and whose total taxable turnover has not
exceeded rupees twenty-five lakhs in the previous year, to pay lump sum tax in
lieu of the amount of tax payable under section 7 of this Act.
(b) The payment of lump sum tax granted under
sub-section (1) shall remain valid so long as the total taxable turnover of the
registered dealer does not exceed rupees twenty-five lakhs. In case where total
taxable turnover of a registered dealer exceeds rupees twenty-five lakhs during
the course of the year, he shall be liable to pay tax under the provisions of
this Act from the tax period as may be prescribed for this purpose.
Explanation.--:
For the purpose of permission under clause (a) for the year Guj.1 of 2003-04
total taxable turnover shall be calculated with
reference to the 1970.
(2) The State Government may, fix the rate of lump sum tax by
notification in the Official Gazette.
(3) A dealer who is permitted under sub-section (1) to pay lump
sum tax shall not,
(a) be
entitled to claim tax credit in respect of tax paid by him on his purchases,
(b) charge
any tax under this Act in his sales bill or sales invoice in respect of the
sales on which lump sum tax is payable; and
(c) issue tax invoice to
any dealer who has purchased the goods from him.
(4) A dealer who is permitted under
sub-section (1) to pay lump sum tax shall be liable to pay, in addition to the
lump sum tax under this section,-
(a) purchase tax
leviable under sub- sections (1) and (3) of section 9;
(b) tax at the rate
specified under section 7 in respect of sales of goods within the State,-
(i) which are
purchased or brought from other State in any manner, or
(ii) which are
purchased in the course of import from outside the territories of
Explanation.--For the
removal of doubt, it is clarified that the dealer who has been permitted to opt
for composition under this section shall be liable to pay central sales tax as
per the provisions of Central Act in respect of sales made by him in the course
of inter-State trade and commerce.
The burden of proof shall lie on a dealer who claims that he
is not liable Burdento pay tax under this Act in respect of any sale effected by him or is
eligible of for a tax credit under section 11 and section 12.
COMMERCIAL TAX AUTHORITIES AND
TRIBUNAL.
16. Commercial tax authorities and
jurisdiction.
(1) For carrying out the purposes of this
Act, the State Government shall appoint an officer to be called the Commissioner of Commercial Tax.
(2) To assist the Commissioner in the
execution of his functions under this Act, the State Government may appoint
Special Commissioners, Additional Commissioners and such number of –
|
(a) |
Joint Commissioners, |
|
(b) |
Deputy
Commissioners, |
|
(c) |
Assistant Commissioners, |
|
(d) |
Commercial Tax Officers, and |
|
(e) |
other officers and persons,
and give them such designations, as the State Government thinks necessary.
(3) The Commissioner shall have jurisdiction over the whole of the |
State, the Special
Commissioner and an Additional Commissioner shall have jurisdiction over the
whole of the State or where the State Government so directs, over any local
area thereof. All other officers shall have jurisdiction over the whole of the
State or over such local areas as the State Government may specify.
(4) The Commissioner shall have and exercise
all the powers and perform all the duties, conferred or imposed on him by or
under this Act. The Special Commissioner and an Additional Commissioner shall,
save as otherwise directed by the State Government, have and exercise within
his jurisdiction all the powers and perform all the duties, conferred or
imposed on the Commissioner by or under this Act.
(5) A Joint Commissioner shall have and
exercise, in the area within his jurisdiction all the powers and shall perform
all the duties conferred or imposed on the Commissioner by or under this Act.
The Commissioner may, by order published in the Official Gazette, direct that
any or all Joint Commissioners shall not exercise such powers or perform such
duties as are specified in the order, and there-upon such Joint Commissioner
or, as the case may be, all Joint Commissioners, shall cease to exercise those
powers and perform those duties. The Commissioner may in like manner revoke any
such direction and thereupon the powers or duties exercisable or performable by
such Joint Commissioner, or as the case may be, all Joint Commissioners before
such direction was issued, shall be restored to him or them.
(6) The Deputy Commissioners, Assistant
Commissioners, Commercial Tax Officers and other officers shall within their
jurisdiction exercise such of the powers and perform such of the duties of the
Commissioner under this Act, as the Commissioner may, subject to such
conditions and restrictions as the State Government may by general or special
order impose, by order in writing delegate to them either generally or as
respects any particular matter or class of matters.
(7) The State Government may, subject to such
restrictions and conditions as it may impose by notification in the Official
Gazette, delegate to the Commissioner the power (not being powers relating to
the appointment of Special commissioner, Additional Commissioner or Joint
Commissioners), conferred on the State Government by sub-sections (2) and (3).
(8) All officers and persons appointed under
sub-section (2) shall be subordinate to the Commissioner; and the subordination
of officers (other than the Commissioner), and of persons amongst themselves
shall be such as may be prescribed.
17. Power to transfer proceedings.
(1) The Commissioner may, after due notice to
the concerned parties and by order in writing, transfer any proceedings or
class of proceedings under any provision of this Act from himself to any other
officer and he may likewise transfer any such proceedings (including a
proceeding already transferred under this section) from one such officer to
another or to himself.
(2) The officer to whom any proceeding is
transferred under subsection (1) shall proceed to dispose it of as if it had been
initiated by himself.
(3) The transfer of proceedings shall not
render necessary the reissue of any notice already issued before such transfer
and the officer to whom the proceeding is transferred may continue it from the
stage at which it was left by the officer from whom it was transferred.
Explanation.--For the
purposes of this section, "proceedings" in relation to any person
whose name is specified in any order issued thereunder, means all proceedings
under this Act in respect of any year which may be pending on the date of such
order or which may have been completed on or before such date, and includes
also such proceedings which may be commenced after the date of such order in
respect of any year.
18. Disputes regarding jurisdiction of tax authority.
(1) No person shall be entitled to call in
question the jurisdiction of any tax authority appointed under section 16,
after the expiry of thirty days from the date of receipt by that person of any
notice issued by such tax authority under this Act.
(2) An objection as to the jurisdiction of
any such tax authority may be raised within the periods aforesaid by submitting
a memorandum to that tax authority who shall refer the question to the
Commissioner and the Commissioner shall after giving the person raising the
objection, a reasonable opportunity of being heard, make an order determining
the question of jurisdiction and his decision in this behalf shall be final.
19. Tribunal.
(1) The State Government
shall constitute a Tribunal consisting of as many as members as it thinks fit
to discharge the functions conferred on the Tribunal by or under this Act.
(2) The State Government shall appoint one of the members of the
Tribunal to be President thereof.
(3) The qualifications of the members
constituting the Tribunal shall be such as may be prescribed and a member shall
hold office for such period as the State Government may fix.
(4) The State Government may terminate the
appointment of any member of the Tribunal before the expiry of term of his
office, if such member, –
(a) is adjudged an
insolvent, or
(b) engages during
his term of office in any paid employment outside the duties of his office, or
(c) is or becomes in any way concerned or
interested in any contract or agreement made by or on behalf of the State
Government or participates in any way in the profit thereof or in any benefit
or emoluments arising therefrom otherwise than as a member, or
(d) is in the
opinion of the State Government, unfit to continue in office by reason of
infirmity of mind or body, or
(e) is convicted of
an offence involving moral turpitude.
(5) Any vacancy of a member of the Tribunal
shall be filled up by the State Government as soon as practicable.
(6) The functions of the Tribunal may be
discharged by one or more benches thereof constituted in accordance with the
regulations made under sub-section (9).
(7) If the members of the Tribunal or a Bench
thereof are divided, the decision shall be the decision of the majority, if
there be a majority, but if the members are equally divided they shall state
the point or points on which they differ, and the case shall be referred by the
President of the Tribunal for hearing on such point or points to one or more of
the other members of the Tribunal, and such point or points shall be decided
according to the majority of the members of the Tribunal who heard the case
including those who first heard it.
(8) Subject to such conditions and
limitations as may be prescribed, the Tribunal shall have power to award cost
and the amount of such costs shall be recoverable from the person ordered to
pay the same as an arrears of land revenue.
(9) Subject
to the previous sanction of the State Government, the Tribunal shall, for the
purpose of regulating its procedure (including the place or places at which the
Tribunal or the Benches thereof shall sit) and the disposal of its business,
make regulations consistent with the provisions of this Act and the rules.
(10) The
regulations made under sub-section (9) shall be published in the Official
Gazette.
20. Powers of
Tribunal and Commissioner
(1)
In discharging their functions
under this Act, the Tribunal and the Commissioner shall have all the powers of
a civil court for the purpose of,
(a) receiving of proof of facts on affidavit;
(b) summoning and
enforcing the attendance of any person, and examining him on oath or
affirmation;
(c) compelling the
production of documents; and
(d) issuing commissions
for the examination of witnesses.
(2) In the case of any affidavit to be made for the purposes of
this Act, any officer appointed by the Tribunal or the Commissioner may
administer the oath to the deponent.
REGISTRATION
21. Registration.
(1) No dealer shall, while being liable to pay
tax under this Act, carry Registration. on business as
a dealer unless he possesses a valid certificate of registration as provided by
this Act:
Provided that the
provisions of this sub-section shall not be deemed to have been contravened if
the dealer having applied for such registration, as
provided in this section, within the prescribed time carries on such business.
(2) A dealer dealing exclusively in goods specified in Schedule I
shall not be liable for registration.
(3) Every dealer, required by sub-section (1)
to possess a certificate of registration, shall apply in such form, to such
authority and in such manner as may be prescribed.
(4) If the prescribed authority is satisfied
that an application for registration is in order, it shall register the
applicant and issue him a certificate of registration in the prescribed form.
(5) The prescribed authority may, after
considering any information furnished under any provisions of this Act or
otherwise received, amend from time to time, any certificate of registration.
(6) When a dealer has been subjected or is
liable to be subjected to a penalty or is convicted in respect of contravention
of the provisions of subsection (1), the prescribed authority shall register
such dealer, if such dealer is not a registered dealer, and issue him a
certificate of registration. Such registration shall take effect from the date
of the issue of the certificate in every respect as if it had been issued under
sub-section (3) on an application of the dealer.
(7) Where –
(a) any business,
in respect of which a certificate of registration has been issued under this
section, hasbeendiscontinuedor,transferred,or
(b) total turnover
and taxable turnover of a dealer during the preceding year has not exceeded the
thresholds of turnover specified in sub-section of section 3,
and the dealer applies in
the prescribed manner for cancellation of his registration, the prescribed
authority shall cancel the registration with effect from such date as it may
fix in accordance with the rules.
(8) Where the Commissioner is satisfied that
any business in respect of which a certificate of registration has been issued
under this section, has been discontinued and the dealer has failed to apply as
aforesaid for cancellation of registration, the Commissioner may, after giving
the dealer a reasonable opportunity of being heard, cancel the registration
with effect from such date as he may fix to be the date from which the business
has been discontinued.
(9) The cancellation of a certificate of
registration on an application of the dealer or otherwise, shall not affect the
liability of the dealer to pay the tax, penalty or interest due for any period
prior to the date of cancellation whether such tax, penalty or interest is
assessed before the date of cancellation but remains unpaid, or is assessed
thereafter.
22. Voluntary
registration.
(1) A dealer having a fixed or regular place of business in
the State
and who is not required to
be registered under section 21, may apply in the prescribed manner for the
certificate of registration to the authority prescribed for the purpose under
section 21.
(2) If the prescribed authority is satisfied
that the application made by the dealer under sub-section (1) is in order, it
may grant him a certificate of registration in the prescribed form:
Provided
that no certificate of registration under this section shall be granted to the
dealer unless he deposits an amount of rupees twenty-five thousand in the
Government treasury. The dealer may, in his return to be
furnished in accordance with section 29, adjust the amount so deposited against
his liability to pay tax, penalty or interest payable under this Act.
(3) The provisions of sub-section (4) and
clause (a) of sub-section (7) and sub-section (8) of section 21 shall apply in
respect of the amendment or cancellation of certificate of registration granted
under this section.
(4) Notwithstanding anything contained in
this Act, every dealer who has been registered under sub-section (2) shall, so
long as his registration remains in force, be liable to pay the tax under this
Act.
Every
dealer registered as on the appointed day under any of the earlier laws or
under the Central Act shall be deemed to be registered under section 21.
24. Non transfer
ability of registration.
Save as
otherwise provided in section 25, a certificate of registration shall be
personal to the dealer to whom it is granted and shall not be transferable.
25. Continuation of certificate of
registration of dissolved firm.
Where, _
(a) a registered
dealer is a firm and on the death of any partner of such firm, the firm stands
dissolved, and
(b) the person who
immediately before such dissolution was a partner of the firm carries on
business of the dissolved firm, as proprietor, then
(i) until the
certificate of registration granted to the firm prior to its dissolution is
amended under sub-clause (ii), the certificate of registration granted to the
firm prior to its dissolution shall, subject to section 27, continue to be
valid for a period of six months;
(ii) on an application made by such person
within a period of six months from the date of dissolution of the firm for
amendment of the certificate of registration and on information being furnished
in the manner required by section 26, the certificate of registration granted
to the firm prior to its dissolution shall be amended accordingly.
26. Amendment
of certificate of registration.
(1) Where
a registered dealer
(a) transfers his
business, in whole or in part, or transfers his place of business, by sale,
lease, leave or license, hire or in any other manner whatsoever, or otherwise
disposes of his business or any part thereof or effects or comes to know of any
other change in the ownership of the business;
(b) discontinues
his business or changes the place of business thereof or opens a new place of
business, or temporarily closes the business for a period more than thirty
days;
(c) changes the
name, style, constitution or nature of his business; or
(d) enters into
partnership or other association in regard to his business or effects any
changes in the ownership of the business,
he shall, within the
prescribed time inform the prescribed authority accordingly; and if any such
dealer dies, his legal representative shall inform of such death or where any
such dealer is a firm and there is any change in the constitution of the firm
or the firm is dissolved, every person who was a partner thereof, shall in like
manner, inform the said authority of the change in the constitution or as the
case may be, dissolution of the firm.
(2) The Commissioner may, after considering
any information furnished under this Act or otherwise received and after making
such inquiry as he may deem fit, amend from time to time, any certificate of
registration:
Provided that the Commissioner shall, before amending on his
own motion a certificate of registration, give the dealer affected by such amendment an opportunity of being heard.
(3) An amendment of the certificate of
registration made under subsection (1) or (2) shall take effect from the date
of contingency, which necessitates the amendment, whether or not information in
that behalf is furnished within the time prescribed under sub-section (1).
(4) Any amendment of a certificate of
registration under this section shall be without prejudice to any liability for
tax, interest or penalty or for any prosecution for an offence under this Act.
(5) If a dealer fails, without sufficient
cause, to comply with the provisions of sub-section (1), the Commissioner may
after giving the dealer a reasonable opportunity of being heard, direct him to
pay, by way of penalty a sum of rupees one hundred per day of default subject
to a maximum of rupees five thousand.
(6) For the removal of doubts, it is hereby declared that where a
registered dealer
(a) effects a change
in the name of his business;
(b) is a firm and
there is a change in the constitution of the firm without dissolution thereof;
(c) is a trustee
of a trust and there is a change in the trustees thereof;
(d) is a Hindu
Undivided Family and the business of such family is converted into a partnership
business with all or any of the coparceners
as partners thereof; or
(e) is a firm or a company or a trust or any
other set up and change in the management takes place including the change of
the director or the Managing Director of the company ;
then merely by reason of the
circumstances as aforesaid, it shall not be necessary for the dealer to apply
for a fresh certificate of registration and on information being furnished in
the manner required by this section, the certificate of registration shall be
amended.
27. Cancellation of registration.
Where_
(a) any business, in
respect of which a certificate of registration has been issued to a dealer
under this Act is discontinued;
(b) in the case of
transfer of whole business by a dealer, the transferee already holds a
certificate of registration under this Act;
(c) an incorporated
body has been wound up or it otherwise ceases to exist;
(d) the owner of a
proprietorship business dies leaving no successor to carry on the business;
(e) in case of a
firm or association of persons, it is dissolved; or
(f) a dealer has
ceased to be liable to pay tax under this Act,
the Commissioner may cancel
the certificate of registration of such dealer or the transferor, as the case
may be, from such date, as may be specified by him.
(2) A registered dealer, whose certificate of
registration is liable to be cancelled under sub-section (1), may apply for
cancellation of his registration to the prescribed authority, in the manner and
within the time prescribed.
(3) On receipt of such application from the
dealer, if the registering authority is satisfied that the dealer fulfils the
conditions specified in subsection (1), he shall cancel the registration of
such dealer.
(4) The certificate of registration shall be deemed to be
inoperative
(a) in case of
clause (a) or (b) of sub-section (1), with effect from the date of
discontinuance or, as the case may be, transfer of the business;
(b) in case of
clause (c), (d), (e), or (f) of sub-section (1), from the date on which the
dealer's liability to pay tax has ceased,
notwithstanding the fact that the order
of cancellation is passed or not or that the particulars of the dealer
regarding cancellation are published as required under sub-section (11), or
not.
(5) If a dealer –
(a) has failed to
file three consecutive returns within the time prescribed under this Act;
(b) knowingly
furnishes incomplete or incorrect particulars in his returns;
(c) has failed to
pay tax due from him under the provisions of this Act;
(d) having issued
tax invoice or retail invoices, has failed to account for the said invoices in
his books of account;
(e) holds or accepts
or furnishes or causes to be furnished a declaration, which he knows or has
reason to believe to be false;
(f) who has been
required to furnish security under section 28,
but has failed to furnish such security;
(g) has been
convicted of an offence under this Act, or under the earlier law;
(h) discontinues his
business and has failed to furnish information regarding such discontinuation,
or
(i) without entering into a transaction of
sale issues to another dealer tax invoice, retail invoice, bill or cash memorandum
with the intention to defraud the Government revenue,
the Commissioner may at any
time, for reasons to be recorded in writing and after giving the dealer an
opportunity of being heard, cancel his certificate of registration from such
date as may be specified by him.
(6) Every person whose registration is
cancelled under sub-section (5) shall pay in respect of every taxable goods
held as stock on the date of cancellation an amount equal to the tax that would
be payable in respect of the goods if the goods were sold at fair market price
on that date or the total tax credit previously claimed in respect of such goods, whichever is higher.
(7) If an order of cancellation passed under
this section is set aside as a result of an appeal or other proceedings under
this Act, the certificate of registration of the dealer shall be restored and
he shall deemed to be treated as if his registration was not cancelled.
(8) Every dealer who applies for cancellation
of registration shall surrender with his application the certificate of
registration granted to him and every dealer whose registration is cancelled
otherwise than on the basis of his application shall surrender the certificate
of registration within seven days from the date of communication to him of the
order of cancellation:
Provided that if a
dealer is unable to surrender the certificate of registration on account of
loss, destruction or defacement of such certificate, such dealer shall intimate
the registering authority accordingly within seven days from the date of
communication of order of cancellation of registration.
(9) If a dealer –
(a) fails without
sufficient cause to comply with the provisions of subsection (2); or
(b) fails to
surrender his certificate of registration as provided in sub-section (8),
the Commissioner may, by an
order in writing and after giving the dealer an opportunity of being heard,
direct that the dealer shall pay, by way of penalty, a sum equal to rupees one
hundred for every day of default.
(10) Cancellation of a certificate of
registration shall not affect the liability of any dealer to pay tax, penalty
or interest due for any period till the date of such cancellation and which has
remained unpaid or is assessed thereafter.
(11) The Commissioner shall publish in the
manner as may be prescribed the particulars of dealers whose certificate of
registration has been cancelled under the provisions of this Act.
28. Security from
certain class of dealers.
(1) Where it appears necessary to the
authority to which an application is made under section 21 or 22 for issue of
certificate of registration, so to do for the proper realization of the tax,
penalty and interest payable under this Act, it may by an order in writing and
for the reasons to be recorded therein, impose as a condition for the issue of
certificate of registration a requirement that the dealer shall furnish in the
prescribed manner and within such time as may be specified in the order, such
security as may be specified in the order for the aforesaid purpose.
(2) Where it appears necessary to the
authority referred to in section 21, or the Commissioner so to do for the
proper realization of the tax, interest and penalty payable or which has become
due for payment, for any period of any year, he may, at any time, by an order
in writing and for reason to be recorded therein, require a registered dealer
to furnish in the prescribed manner and within such time as may be specified in
the order, such security or if such dealer has already furnished any security,
such additional security as may be specified in the order.
(3) No dealer shall be required to furnish
any security under subsection (1) or any security or additional security under
sub-section (2) unless he has been given an opportunity of being heard.
(4) The amount of security, which a dealer
may be required to furnish under sub-section (1) or sub-section (2), or the
aggregate of the amount of such security, and the amount of additional security
which he may be required to furnish under sub-section (2) by the authority
referred to therein or the Commissioner, shall not exceed the amount of tax,
interest and penalty payable or which has become due for payment for a period
of any year according to the estimate of the authority referred to in
sub-section (1) or the Commissioner, on the turnover of sales or turnover of
purchase of goods of such dealer for any period of any year.
(5) Where the security furnished by a dealer
under sub-section (1) or sub-section (2) is in the form of a surety bond and
the surety becomes insolvent or dies, the dealer shall, within thirty days of
the occurrence of any of the aforesaid events, inform the authority referred to
in sub-section (1) or sub-section (2) or, as the case may be, the Commissioner
and shall within ninety days of such occurrence, furnish a fresh security for
the same amount as that of the bond in the form of a bond or in any other
prescribed manner.
(6) The authority referred to in sub-section
(1) or sub-section (2) or, as the case may be, the Commissioner may, by order
and for good and sufficient cause, forfeit the whole or any part of the
security furnished by a dealer for realizing any amount of the tax, interest or
penalty payable by the dealer:
Provided that no order shall be passed under this sub-section
without giving the dealer an opportunity of being heard.
(7) Where by reason of an order under
sub-section (6), the security furnished by any dealer is rendered insufficient, he shall make up the deficiency in such manner
and within such time as may be prescribed.
(8) The authority referred to in sub-section
(1) or sub-section (2) or, as the case may be, the Commissioner may, on an
application made by a dealer in that behalf, make an order of refund of any
amount or part thereof deposited by the dealer by way of security or for the
release of bond under this section, if it is not required for the purpose of
realization of tax, interest or penalty.
(9) Where a dealer fails to furnish security
as required under subsection (1), (2), (5) or (7), the authority referred to
in section 21 shall refuse to issue or, as the case may be, shall cancel the
certificate of registration:
Provided that the
refusal or cancellation of a certificate of registration under this sub-section
shall, notwithstanding anything contained in subsection (3) of section 3, not
affect the liability of the dealer to pay the tax, penalty and interest due for
any period before or after the date of such refusal or cancellation of the
certificate of registration; and accordingly the provisions of this Act shall
continue to apply.
RETURNS,
PAYMENT OF TAX, ASSESSMENT, RECOVERY OF TAX AND REFUND.
(1) Every Registered dealer shall furnish
correct and complete returns in such form, for such period, by such dates and to such authority, as
may be prescribed.
(2) The Commissioner may, subject to such
terms and conditions as may be prescribed, exempt any dealer from furnishing
returns or permit any dealer,
(a) to furnish for
such different periods, or
(b) to furnish
separate returns relating to various places of business of a dealer in the
State for the said period, or for such different period, to such authority, as
he may direct.
(3) If the Commissioner has reason to believe
that the total turnover of any dealer is likely to exceed the thresholds of
turnover specified in subsection (1) of section 3, he may, by notice served in
the prescribed manner, require such dealer to furnish returns as if he were a
registered dealer, but no tax shall be payable by such dealer, unless he become
liable to pay tax under sub-section (1) of section 3.
(4) If any dealer having furnished returns
under sub-section (1) or (3) discovers any mistake, error, omission or
incorrect statement therein, he may furnish a revised return before the expiry
of three months next following the last date prescribed for furnishing the
original return.
(5) If a registered dealer or any other
dealer required to furnish return under this section fails to furnish any
return by the prescribed date as required under sub-section (1) or fails to
comply with the requirement of notice issued under sub-section (3), the
Commissioner shall direct him to pay, in addition to any tax and interest
payable or paid by him, by way of penalty a sum of rupees one hundred per month
or part thereof for the default period. The penalties specified under this
sub-section shall be imposed by the Commissioner notwithstanding the fact that
the assessment proceedings have not been initiated against the dealer under
section 32, 33 or 34. Any penalty imposed under this sub-section shall be
without prejudice to any prosecution for any offence under this Act.
30. Periodical payment of tax and interest on non-payment of tax.
(1) Tax
shall be paid in the manner hereinafter provided, and at such intervals as may
be prescribed.
(2) Every registered dealer furnishing return
as required by subsection (1) of section 29 shall pay into a Government
treasury, in the manner prescribed, the whole amount due from him according to
such return and shall furnish along with the return a receipt showing full
payment of such amount.
(3) If the revised return furnished by a
registered dealer in accordance with sub-section (4) of section 29, shows a
higher amount of tax due than shown in the return earlier furnished by him, he
shall pay into a Government treasury the remaining amount of tax arising from
the revised return alongwith interest on delayed payment of such remaining
amount, and furnish alongwith the revised return a receipt showing such
payment.
(4) If a registered dealer does not pay the
amount of tax payable in accordance with the provisions of sub-section (1), (2)
or (3), the Commissioner shall forthwith initiate recovery proceedings under
this Act.
(5) Where a dealer does not pay the amount of
tax within the time prescribed for its payment under this section, then there
shall be paid by such dealer for the period commencing on the date of expiry of
the aforesaid prescribed time and ending on date of payment of the amount of
tax, simple interest at the rate of eighteen per cent, per annum, on the amount
of tax not so paid or on any less amount thereof remaining unpaid during such
period.
31. Collection of tax
only by registered dealers.
(1) A person who is not a registered dealer
shall not collect in respect of any sale of goods any amount by way of tax
under this Act and no registered dealer shall make any such collection except
in accordance with the provisions of this Act and the rules made there under.
(2) A registered dealer who has been
permitted by the Commissioner to make a lump sum payment under section 14 shall
not collect from his purchaser any sum by way of tax on the sales of goods
during the period the permission for lump sum tax is valid.
(3) The tax collected and deposited under the
provisions of this Act to which a dealer may be held not liable shall not be
refunded to the dealer and the amount of such tax shall stand forfeited to the
Government.
(4) If any person collects any amount by way
of tax in contravention of the provisions of this Act, he shall be liable to
pay, in addition to any tax payable, a penalty equal to the amount so
collected.
32. Return scrutiny and provisional assessment.
(1) Returns or revised returns furnished by
the dealer in accordance with section 29 shall be subject to scrutiny by the
Commissioner.
(2) (a) If
any dealer has furnished return or revised return according to which,
(i) net amount of
tax payable, in accordance with section 13, is nil, or
(ii) the amount of
tax credit is carried forward for subsequent return, or
(iii) the amount of
refund is claimed there in, or
(iv) the dealer has
claimed in his return or the revised return higher amount of tax credit than
the admissible amount of tax credit,
then, the Commissioner may,
as soon as possible, provisionally assess such dealer for the period of such
return or as the case may be, revised return. For the purpose of aforesaid
provisional assessment, the Commissioner shall serve on such dealer in the
prescribed manner a notice requiring him to explain in writing, on or before
the date specified there, the basis on which the dealer has furnished such
returns or the revised returns. The Commissioner may, after considering such
explanation provisionally assess the amount of tax due from such dealer and
issue an order in the prescribed form.
(b) If the dealer who has been served the
notice under clause (a) fails to comply with requirement of clause (a), the
Commissioner shall determine the amount of tax payable in the manner as may be
prescribed and serve on such dealer an order of the provisional assessment.
(3) Where a registered dealer has not
furnished the return in respect of any tax period within the prescribed time,
the Commissioner shall, notwithstanding anything contained in section 34,
proceed to assess the dealer provisionally for the period for such default.
Such provisional assessment shall be made on the basis of past returns or past
records or on the basis of information received by the Commissioner and the
Commissioner shall direct the dealer to pay the amount of tax assessed in such
manner and by such date as may be prescribed.
(4) Where the Commissioner has reason to
believe that the dealer has evaded the tax or has claimed more amount of tax
credit than the admissible amount of tax credit, he may, after taking into
account all relevant materials gathered by him and after giving the dealer a
notice in the prescribed form, provisionally assess to the best of his judgment
the amount of tax payable by the dealer.
(5) The provisions of this Act shall mutatis
mutandis apply to the provisional assessment as if provisional assessment were
an audit assessment made under this Act.
(6) Nothing contained in this section shall
prevent the Commissioner from making assessment under sections 33 and 34.
(1) Every registered dealer shall, by such
dates and to such authority as may be prescribed, furnish annual return by way
of self-assessment in the prescribed form, containing such particulars and
accompanied by supporting documents, as may be prescribed.
(2) The amount of tax credit, exemptions and
other claims by the dealer in the annual return for which no supporting tax
invoice, declarations, certificates, or evidence required under this Act or the
Central Act is furnished, shall be self-assessed by the dealer by disallowing
such tax credits, exemptions and other claims and by levying the appropriate
rate of tax as if the sales or purchases were taxable.
(3) If a dealer has furnished all the
returns, revised returns, if any, and annual return within the prescribed
period and the Commissioner is satisfied that the returns or as the case may
be, revised returns, and annual return are correct and complete, he may accept
the annual return by way of self-assessment filed by the dealer and shall
assess the amount of tax and interest due from the dealer on the basis of such
returns. The Commissioner shall send to such dealer an
intimation in the prescribed form regarding the assessment done under
this section.
34. Audit assessment.
(1) Subject to the provisions of sub-section
(2), the amount of tax due from a registered dealer shall be assessed in the
manner hereinafter provided, separately for each year, during which he is
liable to pay tax.
(2) Where,
(a) the Commissioner is not satisfied with
the bonafides of any claim of tax credit, exemption, refund, deduction,
concession, rebate; or genuineness of any declaration or evidence furnished by
a dealer in support thereof with the self-assessment, or
(b) the Commissioner
has reason to believe that detailed scrutiny of the case is necessary,
the Commissioner may,
notwithstanding the fact that the dealer may have been assessed under section
33, serve on such dealer in the prescribed manner a notice requiring him to
appear on a date and place specified therein, which may be his place of
business or a place specified in the notice, either to attend and produce or
cause to be produced the books of account and all evidence on which the dealer
relies in support of his returns or to produce such evidence as specified in
the notice.
(3) The dealer shall provide all co-operation
and reasonable assistance to the Commissioner as may be required in case the
proceedings under this section are required to be conducted at his place of
business.
(4) If proceedings under this section are to
be conducted at the place of business of the dealer and it is found that the
dealer is not functioning from such premises or no such premises exists, the
Commissioner shall assess to the best of his judgment the amount of tax due
from him.
(5) If the Commissioner is unlawfully
prevented from conducting the proceedings under this section, he may assess to
the best of his judgment the amount of tax due from the dealer and may further
direct that the dealer shall pay, by way of penalty, in addition to the amount
of tax so assessed, a sum equal to the tax amount.
(6) If any dealer –
(a) has not
furnished returns in respect of any period by the prescribed date;
(b) has furnished
incomplete or incorrect returns for any period;
(c) has failed to
comply with the terms of notice issued under sub-section (2);
(d) has failed to maintain books of accounts in accordance with
the provisions of this Act or rules made there under or has not regularly
employed any method of accounting, the Commissioner shall assess to the best of
his judgment the amount of tax due from him.
(7) If the Commissioner is satisfied that the dealer, in order to
evade or avoid payment of tax, –
(a) has failed to
furnish, without reasonable cause, returns in respect of any period or the
self-assessment by the prescribed date;
(b) has furnished
incomplete or incorrect returns for any period;
(c) has availed tax
credit for which he is not eligible;
(d) has employed
such method of accounting which does not enable the Commissioner to assess the
tax due from him, or
(e) has knowingly
furnished false or incorrect self assessment,
he shall, after giving
the dealer an opportunity of being heard, direct that the dealer shall pay, by
way of penalty, a sum equal to twice the amount of tax assessed on account of
the said reason in the audit assessment.
(8) If the Commissioner, upon information
which has come into his possession, is satisfied that any dealer who has been
liable to pay tax under this Act in respect of any period, has failed to get
himself registered, the Commissioner shall proceed to assess to the best of his
judgment the amount of tax due from the dealer in respect of such period and
all subsequent periods. In making such assessment, he shall give the dealer an
opportunity of being heard. The Commissioner may, if he is satisfied that the
default was without reasonable cause, direct that the dealer shall pay, by way
of penalty, in addition to the amount of tax so assessed, a sum equal to the
amount of tax assessed or a sum of rupees five thousand, whichever is more.
(9) No assessment under sub-sections (2),
(5), (6) or (7) shall be made after the expiry of four years from the end of
the year in respect of which or part of which the tax is assessable.
(10) No assessment under sub-section (8) shall
be made after the expiry of eight years from the end of the year in respect of
which or part of which the tax is assessable:
Provided that where any
assessment is required to be made in pursuance of an order of any court or
authority, such fresh assessment shall be made at any time within two years
from the date of such order:
Provided further that in
computing the period of limitation for the purpose this section, any period
during which assessment proceedings are stayed by an order or injunction of any
court or authority shall be excluded.
(11) Any assessment made or penalty imposed
under this section shall be without prejudice to prosecution for any offence
under this Act.
(12) Where in the case of a dealer, the amount
of tax assessed for any period under this section or reassessed for any period
under section 35 exceeds the amount of tax already paid under sub-section (1),
(2) or (3) of section 30 by the dealer in respect of such period by more than
twenty five per cent of the amount of tax so paid, there shall be levied on
such dealer a penalty not exceeding one and one-half times the difference
between the tax paid under section 30 and the amount so assessed or reassessed.
35. Turnover escaping
assessment.
(1) Where after a dealer has been assessed
under section 32, 33 or 34 for any year or part thereof, the Commissioner has
reason to believe that the whole or any part of the taxable turnover of the
dealer in respect of any period has,-
(a) escaped
assessment; or
(b) been
under-assessed; or
(c) been assessed at
a rate lower than the rate at which it is assessable; or
(d) wrongly been
allowed any deduction therefrom; or
(e) wrongly been
allowed any tax credit therein,
the Commissioner may
serve a notice on the dealer and after giving the dealer an opportunity of
being heard and making such inquiry as he considers necessary, proceed to
determine to the best of his judgment, the amount of tax due from the dealer in
respect of such turnover which comes to his notice subsequently, and the
provisions of this Act shall, so far as may be, apply accordingly.
(2)
No order shall be made under
sub-section (1) after the expiry of five years from the end of the year in
respect of which or part of which the tax is assessable;
36. Refund of excess payment.
(1) Subject to other provisions of this Act
and the rules, the Commissioner may refund to a person the amount of tax,
penalty and interest, if any, paid by such person in excess of the amount due
from him:
Provided that, the
Commissioner shall first apply such excess towards the recovery of any amount
due under this Act or the earlier laws and shall then refund only the balance
amount, if any:
Provided further that no
such adjustment under the proviso shall be made towards a recovery of an amount
due that has been stayed by an appellate authority.
(2) Where any refund is due to any dealer,
according to the return furnished by him for any period, such refund may
provisionally be adjusted by him against the tax due and payable as per the
returns furnished under section 29 for any subsequent period in the year:
Provided that the amount
of tax, or penalty, interest or surety forfeited or all or any of them due from
and payable by the dealer on the date of such adjustment, shall first be
deducted from such refund before making the adjustment.
(1) If a registered dealer has filed any return
as required by or under this Act, and such return
shows any amount to be refundable to the dealer, then the dealer may apply in
such form and in such manner as may be prescribed, to the Commissioner for
grant of provisional refund pending assessment.
(2) Subject
to the provisions of sub-section (3), the Commissioner may require the
aforesaid dealer to furnish a Bank Guarantee or other security as may be
prescribed, for an amount equal to the amount of refund. On receipt of such
guarantee or other security, the Commissioner may, subject to rules, grant
provisional refund to the dealer.
(3) The Commissioner may direct that assessment
under section 32 of such dealer in respect of the period covered by the said
return be taken up as early as practicable and adjust the grant of provisional
refund against tax due, if any, as a result of the assessment.
(4) If, on assessment, the provisional refund
granted under sub-section (2) is found to be in excess, then such excess shall
be recovered as if it is a tax due from the dealer under this Act and the
interest on such tax shall be charged at the rate of eighteen percent per
annum, for the period from the date of grant of provisional refund, till the
date of assessment
Where refund of any
amount of tax becomes due to the dealer by Interest on virtue of an order of
assessment under section 34, he shall subject to the refund. provision
of this section be entitled to receive in addition to the amount of tax, simple
interest at the rate of six per cent per annum on the said amount of tax from
the date immediately following the date of the closure of the accounting year
to which the said amount of tax relates to the date of order of assessment:
Provided that where the
dealer has paid any amount of tax after the closure of the accounting year and
such amount is required to be refunded, no interest shall be payable for the
period from the date of closure of such accounting year to the date of payment
of such amount.
(2) A registered dealer entitled to refund in
pursuance of any order other than referred to under sub-section (1) or in
pursuance of any order by any court, shall subject to rules, be entitled to
receive, in addition to the refund, simple interest at the rate of six per cent
for the period commencing after thirty days from the date of such order till
the date of payment of amount of such refund. The interest shall be calculated
on the amount of refund due after deducting therefrom any tax, interest, penalty
or any other dues under this Act or under the Central Act. If, as a result of
any order passed under this Act, the amount of such refund is enhanced or reduced, such interest shall be enhanced or reduced
accordingly:
Provided that where the
amount becomes refundable by virtue of an order of the appellate authority or
revision authority or of a court, the interest under the provisions of this
section shall be payable from the date immediately following the expiry of the
period of thirty days from the date of receipt of the order of the appellate
authority or revision authority or the court, by the officer whose order forms
the subject matter of the proceedings before the appellate authority or
revisional authority or the court to the date of refund.
Explanation 1.--For the purposes of
this section, where the refund of tax, whether full or in part, includes refund
of any amount of tax paid after the date prescribed for making the last payment
of any period covered by the return, then the interest, in so far as it relates
to the refund arising from such payment, shall be calculated from the date of
such payment to the date of such order.
Explanation 2.--If the delay in
granting the refund within the period of thirty days aforesaid is attributable
to the said dealer, whether wholly or in part, the period of the delay
attributable to him shall be excluded from the period for which the interest is
payable.
Explanation 3.-- Where the refund of
a sum deposited as a pre-condition for entertainment of appeal under
sub-section (4) of section 73 becomes due on account of appeal being decided in
dealer’s favour, the ‘date of order’ for the purposes of this section shall be
(a) in the case
where the case has been remanded by the appellate authority, the date of the
order made in pursuance of the order of the appellate authority; and
(b) in any other
case, the date of the order of the appellate authority.
(3) Where the realization of any amount remains
stayed by the order of any court or authority and such order is subsequently
vacated, interest shall be payable also for any period during which such order
remained in operation.
39. Power to withhold
refund in certain cases.
(1) Where an order giving rise to a refund is
the subject matter of an appeal or further proceeding or where any other
proceeding under this Act is pending, and the Commissioner is of the opinion
that grant of such refund is likely to adversely affect the revenue, he may,
after giving the dealer an opportunity of being heard, withhold the refund till
such time as he may determine.
(2) Where a refund is withheld under sub-section
(1), the dealer shall be entitled to interest as provided under section 38, if
as a result of the appeal or further proceeding he becomes entitled to refund.
40. Refund of tax for
certain categories.
(1) Subject to such terms and conditions as it
may impose, the State Government may, if it considers necessary so to do in the
public interest, by notification in the official gazette, authorize the
Commissioner to grant refund of the amount of tax separately charged by any
registered dealer to any class of persons who have purchased the goods from
such dealer.
(2) Every notification issued under sub-section
(1) shall be laid for not less than thirty days before the State Legislature as
soon as possible after it is issued and shall be subject to rescission by the
State Legislature or to such modifications as the State Legislature may make,
during the session in which it is so laid or session immediately following. Any
rescission or modification so made by the State Legislature shall be published
in the Official Gazette and shall thereupon take effect.
(3) Any person, so entitled for refund under
sub-section (1) may apply to the prescribed authority in the manner and within
the time as may be prescribed. The Commissioner shall subject to provisions of
this Act grant such refund to such person.
41.
Remission of tax, penalty or interest.
(1) Subject to such conditions as it may impose,
the State Government may, if it is necessary so to do in the public interest in
case of double taxation or to redress an inequitable situation, remit by an
order either generally or specially, the whole or any part of the tax, penalty
or interest
payable in respect of any
period by any dealer or a class of dealers or of any specified class of sales
or purchase.
(2) The Commissioner may, in such circumstances
and subject to such conditions and within such limit as may be prescribed remit
the whole or any part of the tax, penalty or interest payable, in respect of
any period, by any dealer.
42. Payment and recovery of tax and interest on
(1) The amount of tax assessed, reassessed or
becoming payable for any period under section 32, 33, 34, 35, 75 or 79, less
any amount already paid by the dealer in respect of such period, shall together
with penalty and interest if any that may become payable under any of the
provisions of this Act, be paid by the dealer or the person liable therefor
into a Government treasury or in such other manner as may be prescribed within
thirty days from the date of service of notice of demand issued by the
Commissioner for this purpose.
(2) On an application by the dealer, the
Commissioner may in respect of any particular dealer or person and for reasons
to be recorded in writing, extend the time for payment or allow payment by
installments, subject to such conditions as he may think fit to impose in the
circumstances of the case.
(3) In a case where payment by installments is
allowed under subsection (2) and the dealer or the person liable for such
payment commits default in paying any one of the installments within the time
fixed by the Commissioner under that sub-section, the dealer or the person
shall be deemed to be in default in respect of the whole of the amount then
outstanding and the other installments shall be deemed to have been due on the
same date as the installment in default.
(4) Interest at the rate of eighteen per cent
per annum shall be charged for the period as may be extended or the
installments as may be granted under sub-section (2).
(5) If the amount of tax and penalty, if any, is
not paid within the time specified in sub-section (1) or extended under
sub-section (2), as the case may be, the dealer or the person liable therefor
shall be deemed to be in default in respect of that amount.
(6) Where the amount of tax assessed or
reassessed for any period, under section 34 or section 35, subject to revision,
if any, under section 75, exceeds the amount of tax already paid by a dealer
for that period, there shall be paid by such dealer, for the period commencing
from the date of expiry of the time prescribed for payment of tax under
sub-section (1), (2) or (3) of section 30 and ending on date of order of
assessment, reassessment or, as the case may be, revision, simple interest at
the rate of eighteen per cent per annum on the amount of tax not so paid or any
less amount thereof remaining unpaid during such period.
(7) Where a dealer does not pay the amount of
tax falling under subsection (1) on or before the prescribed date, then there
shall be paid by such dealer for the period commencing on the specified date
and ending on the date of payment, simple interest at the rate of eighteen per
cent per annum on the amount of tax not so paid or any less amount thereof
remaining unpaid during such period:
Provided that where
security, other than in the form of surety bond, has been furnished by a dealer
under sub-sections (1) and (2) of section 28, the Commissioner may, for good
and sufficient reasons to be recorded in writing, realise any amount of tax,
penalty or interest remaining unpaid as aforesaid or part thereof by ordering
forfeiture of the whole or any part of the security.
43. Continuation of
certain recovery proceedings.
Where any notice of demand in respect of
any tax, penalty, interest or any other amount payable under this Act
(hereinafter in this section referred to as "Government dues") is
served upon any dealer and any appeal, revision application is filed or other
proceeding is initiated in respect of such Government dues, then
(a) where such Government dues are
enhanced in such appeal, revision or other proceeding, the Commissioner shall
serve upon the dealer another notice of demand only in respect of the amount by
which such Government dues are enhanced and any recovery proceeding in relation
to such Government dues as are covered by the notice of demand served upon him
before the disposal of such appeal, revision application or proceeding may,
without the service of any fresh notice of demand, be continued from the stage
at which such proceedings stood immediately before such disposal;
(b) where such
Government dues are reduced in such appeal, revision or in other proceeding—
(i) it shall not be
necessary for the Commissioner to serve upon the dealer a fresh notice of
demand;
(ii) the
Commissioner shall give intimation of such reduction to him and to the
appropriate authority with whom recovery proceeding is pending;
(iii) any recovery proceedings initiated on the
basis of the notice of demand served upon him prior to the disposal of such
appeal, revision application or other proceeding may be continued in relation
to the amount so reduced from the stage at which such proceedings stood
immediately before such disposal.
(1) Notwithstanding anything contained in
any law or contract to the contrary, the Commissioner may, at any time or from time to time,
by notice in writing, a copy of which shall be forwarded to the dealer at his
last known address, require,-
(a) any person from whom any amount of monies
is due, or may become due, to a dealer on whom notice has been served under
sub-section (1), or
(b) any person who
holds or may subsequently hold monies for or on account of such dealer,
to pay to the
Commissioner, either forthwith upon the monies becoming due or being held or
within the time specified in the notice (but not before the monies becomes due
or is held as aforesaid) so much of the monies as is sufficient to pay the
amount due by the dealer in respect of the arrears of tax, penalty or interest
under this Act, or the whole of the money when it is equal to or less than that
amount.
Explanation.--For the
purposes of this sub-section, the amount of monies due to a dealer from, or
monies held for or on account of a dealer by any person, shall be calculated by
the Commissioner after deducting therefrom such claims, if any, lawfully subsisting,
as may have fallen due for payment by such dealer to such person.
(2) The Commissioner may amend or revoke any
such notice or extend the time for making any payment in pursuance of the
notice.
(3) Any person making any payment in
compliance with a notice under this section shall be deemed to have made the
payment under the authority of the dealer, and the receipt thereof by the
Commissioner shall constitute a good and sufficient discharge of the liability
of such person to the extent of the amount specified in the receipt.
(4) Any person discharging any liability to
the dealer after receipt of the notice referred to in this section, shall be
personally liable to the Commissioner to the extent of the liability discharged
or to the extent of the liability of the dealer for tax, penalty and interest,
whichever is less.
(5) Where a person to whom a notice under
this section is sent objects to it by a statement in writing that the sum
demanded or any part thereof is not due or payable to the dealer or that he
does not hold any monies for or on account of the dealer, the Commissioner
shall hold an inquiry and after giving to such person or dealer a reasonable
opportunity of being heard, make such order as he thinks fit.
(6) Any amount of monies which the aforesaid
person is required to pay to the Commissioner, or for which he is personally
liable to the Commissioner under this section shall, if it remains unpaid, be
recoverable as an arrears of land revenue.
(7) The Commissioner may apply to the court
in whose custody there is monies belonging to the dealer for payment of the
amount of such monies towards the outstanding amount of tax, interest and
penalty payable by the dealer.
(1)Where during the
pendency of any proceedings of assessment or reassessment of turnover escaping
assessment, the Commissioner is of the opinion that for the purpose of
protecting the interest of the Government revenue, it is necessary so to do, he
may by order in writing attach provisionally any property belonging to the
dealer in such manner as may be prescribed.
(2) Every such provisional attachment shall
cease to have effect after the expiry of a period of one year from the date of
the order made under sub-section (1).
46. Special powers of
tax authorities for recovery of tax as arrears of land revenue.
(1) For the purpose of effecting recovery of
the amount of tax, penalty or interest due from any dealer or other person by
or under the provisions of this Act or
under any earlier law, as arrears of land revenue –
(i) the
Commissioner, the Special Commissioner, Additional Commissioner and the Joint
Commissioners shall have and exercise all the powers and perform all the duties
of the Collector under the Bombay Land Revenue Code, 1879.
(ii) the Deputy
Commissioners and Assistant Commissioners shall have and exercise all the
powers (except the powers of arrest and confinement of a defaulter in a civil
jail) and perform all the duties of the Assistant Collector or Deputy Collector
under the said Code.
(iii) the Commercial Tax
Officers shall have and exercise all the powers (except the powers of arrest
and confinement of a defaulter in a civil jail) and perform all the duties of
the Mamlatdar under the said Code.
(2) Every order passed in exercise of the
powers conferred by subsection (1) shall, for the purpose of section 73, 75,
78, 79 or 94, be deemed to be an order passed under this Act.
47. Transfer to defraud
revenue. void.
Where a dealer after any
tax has become due from him creates a defraud charge on or
parts with the possession by way of sale, mortgage, exchange or any other mode
of transfer whatsoever of any of his property in favour of
any other person with the
intention of defrauding the Government revenue, such charge or transfer shall
be void as against any claim in respect of any tax or any other sum payable by
the dealer.
48. Tax to be first charge on property.
Notwithstanding anything
to the contrary contained in any law for the first time being in
force, any amount payable by a dealer or any other person on charge on account
of tax, interest or penalty for which he is liable to pay to the property.
Government shall be a first charge on the property of such dealer, or as
the case may be, such person.
LIABILITY
TO PAY TAX IN CERTAIN CASES.
49. Applicability of
the Act or earlier law to other persons liable to pay tax.
here in respect of any tax, interest or
penalty due from a dealer of the Act or earlier law to under this Act or under
any earlier law, any other person is liable for the payment thereof under any
provisions of this Act or earlier law, all the relevant provisions of this Act
or, as the case may be, of the earlier law shall, in tax. respect
of such liability apply to such person also, as if he were the dealer himself.
50.
Liability of commission agent and principal.
(1) Where
a commission agent purchases or sells any taxable goods
jointly and severally liable to
pay the tax payable under the Act. principal.
(2) If the commission agent shows to the
satisfaction of the Commissioner, in the manner as may be prescribed, that the
tax payable by him under this Act in respect of any goods, has been paid by the
principal on whose behalf the goods were purchased, the commission agent shall
not be liable to pay the tax again in respect of the same transaction.
(3) If the principal, on whose behalf
commission agent has sold the goods, shows to the satisfaction of the
Commissioner, in the manner as may be prescribed, that the tax payable under
this Act in respect of any goods,
has been paid by his
commission agent, the principal shall not be liable to pay the tax again in
respect of the same transaction.
51. Liability
in case of transfer of business.
(1) Where a dealer, liable to pay tax under
this Act, transfers his business in whole or in part, by sale, gift, lease,
leave and licence, hire or in any other manner whatsoever, the dealer and the
person to whom the business is so transferred shall jointly and severally be
liable to pay the tax, interest or any penalty due from the dealer up to the
time of such transfer, whether such tax, interest or penalty has been assessed
before such transfer, but has remained unpaid or is assessed thereafter.
(2) Where the transferee or the lessee of a
business referred to in sub-section (1) carries on such business either in his
own name or in some other name, he shall be liable to pay tax on the sale of
goods effected by him with effect from the date of such transfer and shall, if
he is an existing dealer, apply within the prescribed time for amendment of his
certificate of registration.
52. Amalgamation of companies.
(1) When two or more companies are
amalgamated by the order of court or of the Central Government and the order is
to take effect from a date earlier to the date of the order and any two or more
of such companies have sold or purchased any goods to or from each other during
the period commencing on the date from which the order is to take effect and
ending on the date of the order, then such transactions of sale and purchase
shall be included in the turnover of sale or purchase of the respective
companies and shall be assessed to tax accordingly.
(2) Notwithstanding anything contained in the
said order, for all the purposes of this Act, the said two or more companies
shall be treated as distinct companies for all the periods upto the date of the
said order and the registration certificates of the said companies shall be
cancelled, where necessary, with effect from the date of the said order.
Explanation.--Words and
expressions used in this section but not defined shall have the respective
meanings assigned to them in the Companies Act, 1956.
53. Liability in case of company in
liquidation.
(1) Every person—
(a) who is a
liquidator of any company which is being wound up whether under the orders of a
court or otherwise; or
(b) who has been
appointed as receiver of any assets of a company (hereinafter referred to as
the "liquidator"),
shall, within thirty days
after his appointment, give intimation of his appointment as such to the
Commissioner.
(2) The Commissioner shall, after making such
inquiry or calling for such information as he may deem fit, notify the
liquidator within three months from the date on which he received intimation of
the appointment of the liquidator, the amount which in the opinion of the
Commissioner would be sufficient to provide for any tax, interest or penalty
which is then, or is likely thereafter to become, payable by the company.
(3) When any private company is wound up and
any tax, interest or penalty assessed under this Act on the company for any period,
whether before or in the course of or after its liquidation, cannot be
recovered, then every person who was a director of the private company at any
time during the period for which the tax is due, shall jointly and severally be
liable for the payment of such tax, interest or penalty, unless he proves to
the satisfaction of the Commissioner that such non-recovery is be attributed to
any gross neglect, misfeasance or breach of duty on his part in relation to the
affairs of the company.
Explanation.--For the
purposes of this section, the expressions "company" and "private
company" shall have the meaning respectively assigned to them under
clauses (i) and (ii) of sub-section (1) of section 3 of the Companies Act,
1956.
54. Liability of
partners of firm to pay tax.
Notwithstanding any
contract to the contrary, where any firm is liable to pay any tax, interest or
penalty under this Act, the firm and each of the partners of the firm shall
jointly and severally be liable for such payment:
Provided
that where any partner retires from the firm, he shall intimate the date of his
retirement to the Commissioner by a notice in that behalf in writing and he
shall be liable to pay tax, interest or penalty remaining unpaid at the time of
his retirement and any tax, interest or penalty due up to the date of his
retirement whether assessed or not assessed on that date:
Provided
further that if no such intimation is given within one month from the date of
retirement, the liability of such partner under the first proviso shall
continue until the date on which such intimation is received by the Commissioner.
55. Liability of guardians, trustees etc.
Where
the business in respect of which tax is payable under this Act is carried on by
any guardian, trustee or agent of a minor or other incapacitated person on
behalf of and for the benefit of such minor or other incapacitated person, the
tax, interest or penalty shall be levied upon and recoverable from such
guardian, trustee or agent, as the case may be, in like manner and to the same
extent as it would be assessed upon and recoverable from any such minor or
other incapacitated person, as if he were major and capacitated person and if
he were conducting the business himself, and all the provisions of this Act
shall, so far as may be, apply accordingly.
56. Liability of
Court of Wards etc.
Where
the estate or any portion of the estate of a dealer owning a business in
respect of which tax is payable under this Act is under the control of the
Court of Wards, the Administrator General, the Official Trustee or any receiver
or manager (including any person, whatever be his designation, who in fact
manages the business) appointed by or under any order of a court, the tax,
interest or penalty shall be levied upon and be recoverable from such Court of
Wards, Administrator General, Official Trustee, receiver or manager as he case
may be, in like manner and to the same extent as it would be assessed upon and
be recoverable from the dealer as if he were conducting the business himself,
and all the provisions of this Act shall, so far as may be, apply accordingly.
57. Special provision regarding liability to pay tax in certain
(1) Where a person who is or has been a dealer, liable to pay tax
under this Act, dies, then
(a) if a business carried on by the dealer is
continued after his death by his legal representative or any other person, such
legal representative or other person, shall be liable to pay tax, interest or
penalty due from such dealer under this Act or under any earlier law, and
(b) if
the business carried on by the dealer is discontinued, whether before or after
his death, his legal representative shall be liable to pay out of the estate of
the deceased, to the extent to which the estate is capable of meeting the charge,
the tax, penalty or interest due from such dealer under this Act or under any
earlier law, whether such tax interest or penalty has been assessed before his
death but has remained unpaid or is assessed after his death.
(2) Where a dealer, liable to pay tax under
this Act, is a Hindu Undivided Family and the property of the Hindu Undivided
Family is partitioned amongst the various members or groups of members then
each member or group of members shall jointly and severally be liable to pay
the tax, interest or penalty due from the dealer under this Act or under any
earlier law upto the time of the partition whether such tax, penalty or
interest has been assessed before partition but has remained unpaid or is
assessed after the partition.
(3) Where a dealer, liable to pay tax under
this Act, is a firm, and the firm is dissolved, then every person who was a
partner shall be jointly and severally liable to pay to the extent to which he
is liable under section 54 the tax, interest or penalty due from the firm under
this Act or under any earlier law, upto the time of dissolution whether such
tax, interest or penalty has been assessed before the dissolution, but has
remained unpaid or is assessed after dissolution.
(4) Where the dealer liable to pay tax under this Act,
(a) is the guardian
of a ward on whose behalf the business is carried on by the guardian, or
(b) is a trustee who carries on the business under a trust for a
beneficiary,
then if the guardianship
or trust is terminated, the ward or, as the case may be, the beneficiary shall
be liable to pay the tax, interest or penalty due from the dealer upto the time
of the termination of the guardianship or trust, whether such tax, interest or
penalty has been assessed before the termination of guardianship or trust but
has remained unpaid or is assessed thereafter.
(5) Where a person becomes liable to pay tax
in the manner described in clause (a) of sub-section (1), then such person
shall, (notwithstanding anything contained in section 3), be liable to pay tax
on the sales of goods made by him on and after the date of such succession or
transfer and shall (unless he already holds a certificate of registration) in
the case of succession, within six months and in the case of transfer, within thirty
days, thereof apply for registration.
(1) Where a dealer is a firm or an
association of persons or a Hindu Undivided Family and such firm, association
or family has discontinued business—
(a) the tax payable under this Act, by such
firm, association or family up to the date of such discontinuance may be
assessed as if no such discontinuance had taken place; and
(b) every person who was at the time of such
discontinuance, a partner of such firm, or a member of such association or
family, shall, notwithstanding such discontinuance be liable jointly and
severally for the payment of tax assessed and penalty or interest imposed and
payable by such firm, association or family, whether such tax, interest or
penalty or has been assessed prior to or after such discontinuance, and subject
as aforesaid, the provisions of this Act shall, so far as may be, apply as if
every such person or partner or member were himself a dealer:
(2) Where a change has occurred in the
constitution of a firm or an association of persons, the partners of the firm
or members of association, as it existed before and as it exists after its
reconstitution, shall, without prejudice to the provisions of section 54,
jointly and severally be liable to pay tax, interest and penalty due from such
firm or association for any period before its reconstitution.
(3) The provisions of sub-section (1) shall,
so far as may be, apply where the dealer, being a firm or association of
persons is dissolved or where the dealer, being a Hindu Undivided Family, has
effected partition with respect to the business carried on by it and
accordingly references in that sub-section to discontinuance shall be construed
as reference to dissolution or, as the case may be, to partition.
59. Service of notice in certain circumstance
(1) Where a Hindu Undivided Family has been partitioned, notice under this Act shall be served on the person who was the last manager of the Hindu Undivided Family, or if such person cannot be found, then on all adults who were members of the Hindu Undivided Family, immediately before the partition
(2) Where a firm or an association of persons is dissolved, notice under this Act may be served on any person who was a partner (not being a minor) of the firm, or member of the association, as the case may be, immediately before its dissolution.
(3) Where the business of a firm, an association of persons or company has been discontinued, a notice under this Act shall be served in the case of a firm or an association of persons on any person who was a member of such firm or association at the time of its discontinuance and in the case of a company, on the principal officer thereof.
ACCOUNTS AND RECORDS
(1) A registered dealer who sells taxable
goods to another registered dealer, shall, at the request of the purchaser,
provide to him, at the time of sale, with a tax invoice containing such
particulars as may be prescribed and retain a copy thereof:
Provided that a tax
invoice shall not be issued by a dealer
(a) in respect of
the goods specified in Schedule I or exempt by notification under sub-section
(2) of section 5;
(b) who has given
an option to pay lump sum tax in lieu of tax under section 14;
(c) for sale in
the course of inter-State trade or commerce or export out of the
(d) to a person
who is not a registered dealer.
(2) Except when tax-invoice is issued under
sub-section (1), if a registered dealer sells any goods exceeding rupees one
hundred in value in any one transaction to any person, he shall issue to the
purchaser a retail invoice, containing such particulars as may be prescribed
and retain a copy thereof.
Subject to the
provisions of sections 8 and 60, where a tax invoice has been provided as
contemplated in sub-section (1) of section 60, and
(a) the amount shown as tax charged in the
tax invoice exceeds the actual tax charged in respect of the sale concerned,
the seller shall provide the purchaser with a credit note within three months
of the sales of goods involved in the transaction, containing such particulars
as may be prescribed;
(b) the actual tax
charged in respect of the sale concerned exceeds the tax shown in the tax
invoice as charged, the seller shall provide the purchaser with a debit note,
containing such particulars as may be prescribed:
Provided that –
(i) not more
than one credit note or, as the case may be, debit note shall be issued for the
amount in excess;
(ii) no credit
note shall be issued for the amount in excess which arises when the purchaser
avails of the discount offered by the seller.
62. Accounts.
(1) Every dealer liable to pay tax under this
Act, and every other dealer on whom a notice has been served to furnish returns
under sub-section (2) of section 29 shall maintain at his place of business a
true account of the value of goods purchased, sold, supplied and delivery of
goods made by him in such form and in such manner as may be prescribed.
(2) If the Commissioner considers that such
account is not sufficiently clear and intelligible to enable him to make a
proper scrutiny of the returns referred to in section 29, he may require such
dealer by notice in writing to keep such accounts (including records of
purchases and sales) in such form and in such manner as may be specified
therein.
(3) The Government may, direct any class of
registered dealers generally to keep such accounts (including records of
purchases and sales) in such manner as may be prescribed.
63. Accounts to be
audited in certain cases.
If in respect of any
particular year, total turnover of a dealer exceeds rupees one crore, then such
dealer shall get his accounts verified and audited by a specified authority
within one year from the end of that year and obtain within that period a
report of such audit in the prescribed form duly signed and verified by such
specified authority alongwith such particulars as may be prescribed. A true
copy of such report shall be furnished by such dealer to the Commissioner
within such period as may be prescribed.
Explanation.-- For the purposes
of this section,
(a) "specified
authority" means,
(i) a Chartered
Accountant within the meaning of the Chartered. Accountants
Act, 1949 and includes persons who by virtue of the provisions of sub-section
(2) of section 226 of the Companies Act, 1956, is entitled to be appointed to
act as an auditor of companies;
(ii) a Cost
Accountant within the meaning of the Cost and Works Accountants
Act, 1959;
(iii) a legal
practitioner or a Sales Tax Practitioner whose name is entered in the list
maintained by the Commissioner in accordance with the provisions of section 81.
(b) “total turnover”
shall have the same meaning as given in Explanation below sub-section (1) of
section 3.
(2) If any dealer liable to get his accounts audited under
sub-section
(1) fails to furnish a true copy of such
report within the prescribed time the Commissioner shall, after giving the
dealer a reasonable opportunity of being heard, impose on him, in addition to
any tax payable, a sum by way of penalty not exceeding rupees ten thousand, as
he may determine.
The dealer shall
preserve his books of accounts and the records relevant for the purpose of this
Act till the period of eight years from the end of the accounting year to which
the books of accounts and the records relate.
LIABILITY TO PRODUCE ACCOUNTS AND
SUPPLY OF INFORMATION.
65. Dealer to
declare the name of manager of business.
Every
registered dealer shall within the period prescribed, file a declaration in the
manner prescribed stating the name of the person or persons who shall be deemed
to be the manager or managers of business of such dealer, for the purposes of
this Act and in the event of change of manager, the dealer shall revise the
declaration within thirty days from the date of such change.
66. Dealer to declare details of bank
accounts.
Every
dealer, who is liable to pay tax shall send a declaration in such form, within
such period and to such authority as may be prescribed, stating therein the
particulars of the Bank accounts operated by him in connection with his
business and shall within the period prescribed, intimate to the authority the
changes in the particulars in the declaration.
67. Production and inspection of accounts
and documents and search of premises.
(1) The Commissioner may, subject to such
conditions as may be prescribed, require any dealer or any other person —
(a) to produce before him such books of account, registers or
documents;
(b) to furnish such information relating to the stock of goods,
purchases, sales, deliveries of goods by the dealers or any other information
relating to his business,
as may be deemed necessary, for the purposes of this Act.
(2) All books of accounts, registers and
documents relating to the stock of goods, purchases, sales and deliveries of
goods by any dealer; and all goods kept in any place of business or warehouse
of any dealer, or at any other place for and on behalf of a dealer, shall at
all reasonable time be open to inspection by the Commissioner. The Commissioner
may take or cause to be taken such copies or extracts of the said books of
account, registers or documents and such inventory of the goods found as appear
to him necessary for the purposes of this Act.
(3) Where the Commissioner, has reason to believe that—
(a) any person to whom a notice under this
Act was issued to produce or cause to be produced, any books of account or
other documents has failed to produce or cause to be produced such books of
account or other documents as required by such notice; or
(b) any person to whom a notice as aforesaid
has been or might be issued, will not, or would not, produce or cause to be
produced any books of account or other documents which will be useful for, or
relevant to, any proceeding under the earlier law or under this Act; or
(c) books of account, registers or documents
of any dealer may be destroyed, mutilated, altered, falsified or any sale or
purchase by that dealer have been or may be suppressed, or any goods have not
been or may not be accounted for in the books of account, registers or other
documents required to be maintained under this Act, with a view to evade or
attempt to evade payment of tax due under the earlier law or under this Act,
the Commissioner or any
other person appointed under sub-section (2) of section 16 if so authorised by
him, may,
(i) enter and
search any building or place where he has reason to suspect that the books of
account and other documents or the goods or the sale proceeds are kept;
(ii) break open the lock of any door, box,
locker, safe, or other receptacle for exercising the powers conferred by
sub-clause (i) where the keys thereof are not available;
(iii) seize any such books of account or other
documents or any inventory of goods or any goods as appear to him necessary for
the purposes of this Act;
(iv) place marks of identification on any books
of account or other documents or make or cause to be made extracts or copies
therefrom;
(v) make a note or
any inventory of any such money or goods found as a result of such search or
place marks of identification on such goods;
(vi) seal the premises including the office,
shop, godown, box, locker, safe, almirah or other receptacle if the owner or
the person in occupation or in-charge of such office, shop, godown, box,
locker, safe, almirah or other receptacle leaves the place or is not available
or fails or refuses to open it when called upon to do so, or causes or attempts
to cause obstruction to the Commissioner or the authorised officer in the
discharge of his duties under this section.
(4) The Commissioner may requisition the
services of any police officer or any public servant, or of both to assist him
for all or any of the purposes specified in sub-section (3).
(5) Where the Commissioner seizes any books
of account or other documents or any goods, he shall give the dealer or the
person present on his behalf a receipt for the same and obtain acknowledgement
of the receipt so given to him:
Provided
that if the dealer or person from whose custody the books of account or other
documents or the goods are seized refuses to give an acknowledgement, the
Commissioner may leave the receipt at the premises and record the fact:
(6) Where it is not feasible to seize the
accounts or other documents or the goods under sub-section (3), the
Commissioner or the authorised officer, may serve on the owner or the person
who is in immediate possession or control thereof, an order that he shall not
remove or part with or otherwise deal with them except with the previous permission
of the Commissioner or such authorized officer.
(7) The Commissioner shall keep in his custody
the books of account, registers or documents seized under sub-section (3) for
such period not later than the completion of all the proceedings under this Act
in respect of the years for which those books of account, registers or
documents are relevant, as he considers necessary, and thereafter shall return
the same to the dealer or any other person from whose custody or power they
were seized:
Provided that the
Commissioner may, before returning such books of account or other documents as
aforesaid, place or cause to be placed such marks of identification thereon as
appear to him to be necessary:
Provided further that
the Commissioner may, before returning the books of account and other documents, require that the dealer or the person, as the
case may be, shall give written undertaking that the books of account and other
documents shall be presented whenever required by any competent authority for
any proceedings under this Act.
(8) Save as otherwise provided in this section,
every search or seizure made under this section shall be carried out in
accordance with the provisions of the Code of Criminal Procedure, 1973 relating
to searches or seizures made under that Code.
(9) The
Commissioner may, for the purposes of this Act,-
(a) require any person, including a banking
company, post office or any officer thereof, to furnish information in relation
to such matters or to furnish statements of accounts and affairs verified in
the manner specified by him, giving information in relation to such points or
matters as in his opinion will be useful for, or relevant to, any proceeding
under this Act;
(b) require any person—
(i) who transports
or holds in custody, for delivery to or on behalf of any dealer any goods to
give any information likely to be in his possession in respect of such goods or
to permit inspection thereof, as the case may be;
(ii) who maintains or
has in his possession any books of account, registers or documents relating to
the business of a dealer to produce such books of account, registers or
documents for inspection.
(10) If any person, who transports or holds in
custody for delivery to or on behalf of any dealer any goods, on being required
by the Commissioner under sub-clause (i) of clause (b) of sub-section (9) so to
do, fails to furnish the information likely to be in his possession in respect
of such goods or fails to permit inspection thereof the Commissioner may pass
an order of detention or seizure of goods in his custody or possession in
respect of which the default is committed.
(11) The order of detention or seizure passed
under sub-section (10) shall remain in force so long as the person concerned
does not furnish information required under sub-clause (i) of clause (b) of
sub-section (9) or make proper arrangement for inspection of the goods under
the said subsection.
(12) If any person, who transports or holds in
custody for delivery to or on behalf of any dealer any goods, on being required
by the Commissioner under sub-clause (i) of clause (b) of sub-section (9) so to
do, fails to give any information likely to be in his possession in respect of
such goods or fails to permit inspection thereof without prejudice to any other
action which may be taken against such person, a presumption may be raised that
the goods in respect of which he has failed to furnish information or permit
inspection, were meant for sale by him and he is a dealer liable to pay tax
under this Act and the provisions of this Act shall apply accordingly.
(13) If any person commits default under clause
(a) or sub-clause (ii) of clause (b) of sub-section (9), the Commissioner may,
without prejudice to any other action which may be taken against such person
under any other provision of this Act, direct, after giving an opportunity of
being heard to such person that such person shall pay by way of penalty a sum
not exceeding rupees fifty thousand.
(14) If the Commissioner is satisfied that any
person on being required by him so to do, has failed to furnish the information
in respect of the goods in his custody for delivery to or on behalf of any
dealer or to permit inspection thereof under sub-clause (i) of clause (b) of
sub-section (9), the Commissioner may, by order in writing and after giving
opportunity of being heard to such person, impose by way of penalty a sum not
exceeding the amount of tax leviable under this Act on the goods in respect of
which the default was committed.
(15) Where an order of detention or seizure of
goods is made under the provisions of this section, the Commissioner or the
officer authorised in this behalf may release the goods on such person
exercising the option of paying by way of penalty such sum as may be directed,
not exceeding two and a half times the amount of tax leviable on such goods
under this Act.
(16) Where any premises including the office,
shop, godown, box, locker, safe or other receptacle have been sealed under
sub-section (3), the Commissioner, on an application made by the owner or the
person in occupation or in-charge of such shop, godown, box, locker, safe, or
other receptacle, may order de-sealing thereof on such terms and conditions,
including furnishing of security for such sum in such form and manners as may
be prescribed.
(17) Where an order of detention or seizure of
goods is made under this section and no claim is lodged by any person with
respect to such goods within a period of three months from the date of such
order, the Commissioner may, by order in writing, direct the auction of such
goods:
Provided that if the
goods, in respect of which an order of detention or seizure is made, are of a
perishable nature or subject to speedy and natural decay or when the expenses
of keeping them in custody are likely to exceed their value, the same may be
ordered to be auctioned as soon as it is practicable soon after an order of
detention or seizure of such goods is made and the amount so realised by the
auction of goods shall be remitted in the Government treasury immediately.
(18) Where an order imposing penalty is passed under sub-section
(14) or an option of
paying penalty is exercised under sub-section (15) and the person liable fails
to pay the penalty within the prescribed period, the goods detained or seized
may be sold by public auction and the sale proceeds deposited immediately in
Government treasury.
(19) Auction of goods to be made under
sub-section (17) or subsection (18) shall be carried out in the manner as may
be prescribed.
(20) Any person entitled to the sale proceeds of
goods auctioned under the provisions of this section shall, on application made
to the Commissioner and upon sufficient proof, be paid the sale proceeds of the
goods auctioned, after deducting therefrom the expenses of the sales and other
incidental charges and the amount of tax, interest and penalty leviable under
this Act.
68. Inspection of goods in transit, etc.
(1) If the State Government considers that
with a view to preventing evasion of tax in any place or places in the State,
it is necessary to so do; it may, by notification in the Official Gazette,
direct that such number of check-posts shall be set up or such number of barriers
shall be erected at such places as may be specified in the notification,
(2) At every check-post or barrier set up or
erected under sub-section (1), the driver or any other person in-charge of any
vehicle, boat or animal shall stop the same, and keep it stationary so long as
may reasonably be necessary, and allow the officer-in-charge of the check-post
or barrier to examine the contents in the vehicle or boat or on the animal and
inspect all records relating to the goods carried in the vehicle or boat or on
the animal which are in the possession of such driver or other person in-charge
who shall, if so required, give his name and address and the names and
addresses of the owner of the vehicle, boat or animal as well as of the
consignor and consignee of such goods; and where any of the consignors or
consignee is a dealer registered under this Act or the Central Sales Tax Act,
1956 or relevant Act in any other State, the driver or any other person
in-charge of the vehicle, boat or animal shall also give the number and place
of issue of the certificate of registration, if any, of such dealer.
(3) The driver or other person in-charge of a vehicle, boat or
animal carrying goods shall –
(a) carry with him a log book, a bill of sale
or delivery note and such other documents relating to the goods carried in the
vehicle or boat or on the animal and containing such particulars as may be
prescribed and the driver or person in charge of a transport vehicle shall, in
addition, carry a goods vehicle record and a trip sheet;
(b) produce the same
when requested to do so by the office-in-charge of the check-post or barrier;
(c) give to the officer-in-charge of the
check-post or barrier a declaration relating to particulars of the goods
carried in the vehicle or boat or on the animal in such form as may be
prescribed and keep one copy of declaration with him.
(4) If the officer-in-charge of the check-post or barrier is of
the opinion that –
(i)
goods
under transport are not covered by goods vehicle record, trip-sheet or log
book, or
(ii)
goods
under transport are not in accordance with the documents prescribed under
clause (a) of sub-section (3), or
(iii) a declaration relating to particulars of goods as made under
clause (c) of sub-section (3) is false,
he may, after recording
the reasons, seize such goods and vehicle and give receipt thereof to the
person from whose possession or control, the goods or vehicles are seized.
(5) (a) The
officer-in-charge of the check-posts or barrier may, after giving the owner,
driver or person-in-charge of goods, a reasonable opportunity of being heard
and after holding such further inquiry, as he deems fit, impose on him penalty,
in addition to tax payable under this Act, not exceeding one and one- half times of the tax for possession of
goods or vehicles so seized.
(b) The officer-in-charge of the check-post
or a barrier may release any of the goods, vehicle or documents so seized under
sub-section (4) on payment of tax, interest and penalty or on furnishing such
security in such form as may be prescribed.
(6) The officer-in-charge of the check post
or barrier may, during inspection and verification of goods under transport
including the documents and records relating thereto, direct the carrier not to
part with the goods including re-transporting or re-booking until verification
of goods, records and documents is done or inquiry, if any, is completed.
Explanation.-- In this section,
(a) “goods vehicle
record” means the documents required to be carried by the dealer of a transport
vehicle under the Motor Vehicle Act, 1988 or the rules made there under;
(b) “log book” means
a register, statement or other record containing particulars of the goods under
transport;
(c) “trip sheet” means a sheet or other
document containing particulars relating to the trip-wise use of a transport
vehicle, required to be carried by the driver under the Act referred to in
clause (a);
(d) “goods under
transport” means goods which have been handed over to a carrier and complete
delivery thereof has not been taken from such carrier;
(e) “carrier” means
any person or agency who undertakes to carry or transport goods from one place
to another.
69. Transit pass for transit of goods by road through the State.
(1) Where a vehicle, boat or animal carrying
goods coming from any place outside the State is bound for any other place
outside the State, the driver or any other person in-charge of such vehicle,
boat or animal shall obtain in the prescribed manner a transit pass for such
vehicle, boat or animal from the officer-in-charge of the first check-post or
barrier after his entry into the State and deliver the same to the
officer-in-charge of the last check-posts or barrier before his exit from the
State.
(2) If the driver or person-in-charge of such
vehicle, boat or animal fails to deliver such transit pass, or goods in
vehicle, boat or animal are not found in accordance with the transit pass, at
the place of exit from State, it shall be presumed that goods carried thereby
are sold within the State and he
shall be liable to pay tax
and penalty not exceeding one and one-half times the amount of tax as may be
determined, after giving a reasonable opportunity of being heard, on such sale
in accordance with provisions of this Act.
70. Furnishing of information by owners of
cold storage, warehouses, godowns, etc.
(1) Notwithstanding anything to the contrary
contained in any law for the time being in force every owner or lessee of a
cold storage, warehouse, godown or any such place, who stores therein taxable
goods for hire or reward shall maintain or cause to be maintained a correct and
complete account indicating the full particulars of the person whose goods are
stored in such places and the quantity, value and date of delivery of such
goods.
(2) Such accounts shall, on demand, be
produced before the Commissioner or any officer authorized in this behalf who may take or cause to be taken such extracts therefrom or
require such extracts to be furnished as he may consider necessary.
(3) If any owner or lessee of a cold storage,
warehouse, godown or any other such place, who stores goods for hire or reward,
contravenes any of the provisions of sub-section (1) or sub-section (2) in a
manner likely to lead to evasion of any tax payable under this Act, the
Commissioner may, without prejudice to any other action which may be taken
against such owner or lessee under any other provision of this Act direct,
after giving an opportunity of being heard, that such owner or lessee shall pay
by way of penalty not exceeding the amount of tax leviable on the goods in
respect of which default is committed under sub-section (1) or (2).
71. Power to collect
statistics.
(1) If the Government considers that for the
purposes of better administration of this Act, it is necessary so to do, it may
by notification in the Official Gazette, direct that statistics be collected
relating to any matter dealt with, by or under this Act.
(2) Upon such direction being made, the
Commissioner may, by notice in any newspaper or in such other manner as he
deems fit to bring to the notice of dealers, call upon any class of dealers to
furnish such information or statements as may be stated in such notice relating
to any matter in respect of which statistics are to be collected. The form in
which, the persons to whom or, the authorities to which, such information or
returns should be furnished and the intervals at which such information or
returns should be furnished, shall be such as may be prescribed.
(3) Without prejudice to the generality of
the provisions of this Act, the State Government may by rules provide that
every registered dealer or any class of registered dealer shall furnish such
statements as may be prescribed.
72. Special powers
for reconstitution of records in certain circumstances.
(1) If the Commissioner is satisfied that any
records pertaining to a dealer have been destroyed as a result of fire or any natural
or other calamity or event, he may by notice in writing, require the dealer to
appear before him on a date and at such place specified in the notice, or to
produce before him any accounts or registers or documents or copies thereof or
to furnish fresh returns under this Act or earlier law for such period, by such
dates and to such authority as may be specified in the notice (being returns
for a period for which the dealer has not yet been assessed), or to furnish
true copies of or extracts from any documents already submitted to the
Commissioner, on or before the date specified in the notice, or to furnish any
other information relating to the business of the dealer as may be specified in
the notice, being information which the Commissioner considers necessary for
facilitating the work of assessment or reassessment or the collection of the
tax from such dealer under this Act or under earlier law.
(2) Without prejudice to the generality of
the powers conferred by subsection (1), the Commissioner may require the
dealer to produce for inspection to or furnish copies of or extracts from all
or any of the following, namely:
(a) application for
the issue of a certificate of registration made under this Act;
(b) certificate of
registration granted to the dealer;
(c) returns
furnished by the dealer;
(d) proof of payment
of tax and penalty by the dealer;
(e) a certified copy
of the assessment order given to the dealer;
(f) any notice of
demand served on the dealer;
(g) specimen signature
furnished by a dealer;
(h) any nomination
made by a dealer.
(3) For securing compliance with any notice
given under this section, the Commissioner shall have all the powers specified
in section 67.
(4) Where any person is prosecuted for failure
to comply with any requirement made of him under this section, the burden of
proving that he had reasonable excuse for such failure shall be on him.
APPEAL, REVISION, REFERENCE AND RECTIFICATION.
(1) An appeal from every original order, not
being an order mentioned in section 74, passed under this Act or the rules,
shall lie,
(a) if the order is
made by a an Assistant Commissioner or Commercial Tax Officer, or any other
officer sub-ordinate thereto, to the Deputy Commissioner;
(b) if the order is
made by a Deputy Commissioner, to the Joint Commissioner;
(c) if the order is
made by a Joint Commissioner, Additional Commissioner, or Commissioner, to the
Tribunal.
(2) In the case of an order passed in appeal
by a Deputy Commissioner or, as the case may be, by a Joint Commissioner, a
second appeal shall lie to the Tribunal.
(3) Subject to the provisions of section 84,
no appeal shall be entertained unless it is filed within sixty days from the
date of communication of the order appealed against.
(4) No appeal against an order of assessment
shall ordinarily be entertained by an appellate authority, unless such appeal
is accompanied by satisfactory proof of payment of the tax in respect of which
an appeal has been preferred:
Provided that an appellate authority may, if it thinks fit,
for reasons to be recorded in writing, entertain an appeal against such order
on
production of
proof of payment of twenty per cent of the amount of tax payable under such order.
(5) The Commissioner, on receipt of notice
that an appeal against the order passed in appeal by the Deputy Commissioner
or, as the case may be, by the Joint Commissioner has been preferred by the
other party to the Tribunal may, within thirty days of receipt of the notice,
file a memorandum of cross objection against any part of the order passed in
appeal by the Deputy Commissioner or, as the case may be, by the Joint
Commissioner and such memorandum shall be disposed of by the Tribunal as if it
were an appeal.
(6) Subject to such rules of procedure as may
be prescribed, an appellate authority may pass such order on appeal as
it deems just and proper.
(7) Every order passed in appeal under this
section shall, subject to the provisions of sections 75, 78 and 79, be final.
No appeal or no
application for revision shall lie against,—
(a) a notice
issued under this Act calling upon a dealer for assessment or asking a dealer to
show cause as to why he should not be prosecuted for an offence under this Act;
or
(b) an order of
the Commissioner under sub-section (1) of section 17;
(c) an order
pertaining to the seizure or retention of books of account, register and other
documents; or
(d) an order
sanctioning prosecution under this Act; or
(e) an interim
order in the course of any proceedings under this Act.
75. Revision.
(1) Subjecttotheprovisions,
ofsection74andtoanyrulesmadethereunder,-
(a) the Commissioner of his own motion
within three years or on an application made to him within one year from the
date of any order passed by any officer appointed under section 16 to assist
him, may call for and examine the record of any such order and pass such order
thereon as he thinks just and proper within two years from the date of service
of notice for revision;
(b) the Tribunal, on application made to
it against an order of the Commissioner (not being an order passed under
sub-section (2) of section 73 in second appeal or under clause (a) in revision
on an application) within four months from the date of the communication of the
order may call for and examine the record of any such order, and pass such
order thereon as it thinks just and proper.
(2) Where an appeal lies under section 73 and no
appeal has been filed, no proceedings in revision under this section shall be
entertained upon application:
Provided that the proceedings
in revision may be entertained upon an application where the applicant
satisfies the Commissioner that he had sufficient cause for not preferring an
appeal against the order in respect of which an application for revision is
made.
(3) No order shall be passed under this section
which adversely affects any person, unless such person has been given
reasonable opportunity of being heard.
(4) Where the Commissioner or the Tribunal
rejects any application for revision under this section, the Commissioner or,
as the case may be, the Tribunal shall record the reasons for such rejection.
76. Court-fee on appeal and application for revision.
Notwithstanding anything
contained in the Bombay Court-fees Act, 1959, an appeal preferred under section
73 and an application for revision made under section 74 shall bear a court-fee
stamp of such value as may be of 1959. Prescribed.
77. Applications
of section 4 and 12 of Limitation Act, 1963.
In computing the period laid
down under sections 73, 75 and 78, the provisions of section 4 and 12 of Limitation
Act, 1963shall, sofarasmaybe, apply.
78. Statement of case to the High Court.
Any
person or the Commissioner, within ninety days from the date of the
communication of the order of the Tribunal, passed in appeal or revision, being
an order which affects the liability of any person to pay tax, interest or
penalty, or which affects the recovery from such person of any amount under
section 44, may, by application in writing (accompanied, where the application
is made by that person, by a fee of one hundred rupees) require the Tribunal to
refer to the High Court any question of law arising out of such order; and
where the Tribunal agrees, the Tribunal shall, as soon as may be, after the
receipt of such application, draw up a statement of the case and refer it to
the High Court:
Provided that if in the
exercise of its power under this sub-section, the Tribunal refuses to state the
case which has been required to do on the ground that no question of law
arises, that person, or as the case may be, the Commissioner may, within thirty
days of such refusal either withdraw his application or apply to the High Court
against such refusal.
(2) If the High Court, upon receipt of an
application under sub section (1), is not satisfied as to the correctness of
the decision of the Tribunal, it may require the Tribunal to state the case and
refer to it; and accordingly, on receipt of any such requisition, the Tribunal
shall state the case and refer it to the High Court.
(3) If The High Court is not satisfied that
the statements in the case referred under this section are sufficient to enable
it to determine the question raised thereby, it may refer the case back to the
Tribunal to make such addition thereto or alterations therein, as the High
Court may direct in that behalf.
(4) The High Court upon the hearing of any
such case, shall decide the question of law raised thereby, and shall deliver
its judgement thereon containing the grounds on which such decision is founded,
and shall send to the Tribunal a copy of such judgement under the seal of the
court and the signature of the Registrar, and the Tribunal shall dispose of the
case accordingly.
(5) Where a reference is made to the High
Court under this section, the costs including the disposal of the fee referred
to in sub-section (1), shall be in the discretion of the Court.
(6) The payment of the amount of the tax, if
any, due in accordance with the order of the Tribunal in respect of which an
application has been made under sub-section (1) shall not be stayed pending the
disposal of such application or any reference made in consequence thereof, but
if such amount is reduced as a result of such reference, the excess tax paid
shall be refunded in accordance with the provisions of section 36.
79. Rectification of mistakes.
(1) The Commissioner may at any time within
two years from the date of the communication of the order passed by him, to the
person affected by such order, on his own motion, rectify any mistake of fact
apparent from the record, and shall within a like period rectify any such
mistake which has been brought to his notice by any person affected by such order :
Provided that, no such
rectification shall be made if it has the effect of enhancing the tax or
reducing the amount of refund or tax credit, unless the
Commissioner has given
notice in writing to such person of his intention to do so and has allowed such
person a reasonable opportunity of being heard.
(2) The provisions of sub-section (1) shall
apply to the rectification of a mistake by the Tribunal or an appellate
authority under section 73 as they apply to the rectification of a mistake by
the Commissioner.
(3) Where any such rectification has the
effect of reducing the amount of the tax, interest or penalty, the Commissioner
shall, in the prescribed manner, refund any amount due to such person.
(4) Where any such rectification has the
effect of enhancing the amount of the tax or penalty or reducing the amount of
refund, the Commissioner shall recover the amount due from such person in
accordance with the provisions of the Act.
80. Determination of disputed questions.
(1) If any question arises, otherwise than in
proceedings before a court, or proceedings under section 33, 34 or 35, whether
for the purposes of this Act
(a) any person,
society, club or association or any firm or any branch or department of any
firm is a dealer, or
(b) any particular
thing done to any goods amounts to or results in the manufacture of goods
within the meaning of that term, or
(c) any transaction
is a sale or purchase, or
(d) any particular
dealer is required to be registered, or
(e) any tax is
payable in respect of any particular sale or purchase or if tax is payable the
rate thereof, or
(f) any tax credit
is admissible under section 11 or section 12, the Commissioner shall make an
order determining such question.
(2) The Commissioner may direct that the
determination shall not affect the liability of any person under this Act, with
respect to any sale or purchase effected prior to the
determination.
(3) If any such question arises from any
order already passed under this Act or under the earlier law, no such question
shall be entertained for determination under this section; but such question
may be raised in appeal against, or by way of revision of such order.
PROCEEDINGS
81. Appearance before
any authority in proceedings.
(1) Any person, who is entitled or required
to attend before any authority in connection with any proceedings under this
Act, may attend,—
(a) by a person
authorised by him in writing in this behalf, being a relative or a person
regularly employed by him; or
(b) by a legal
practitioner or Chartered Accountant or Cost Accountant who is not disqualified
by or under sub-section (2) ; or
(c) by a sales tax
practitioner who possesses the prescribed qualifications and is entered in the
list, which the Commissioner shall maintain in that behalf, and who is not
disqualified by or under sub-section (2).
(2) The Commissioner may, by order in writing
and for reasons to be recorded therein, disqualify for such period as is stated
in the order from attending before any such authority, any legal practitioner,
Chartered Accountant, Cost Accountant or sales tax practitioner
(a) who has been
removed or dismissed from Government service; or
(b) who being a legal practitioner or
Chartered Accountant or Cost Accountant is found guilty of misconduct in
connection with any proceedings under this Act by an authority empowered to
take disciplinary action against the members of the profession to which he
belongs; or
(c) who being a
sales tax practitioner is found guilty of such misconduct by the Commissioner.
(3) No order of disqualification shall be
made in respect of any particular person unless he has been given a reasonable
opportunity of being heard.
(4) Any person against whom an order of
disqualification is made under this section may, within one month of the date
of communication of such order, appeal to the State Government and the State
Government may pass such order in appeal as it may think fit.
(5) The order of the Commissioner shall not
take effect until one month of the making thereof or when an appeal is
preferred, until the appeal is decided.
(6) The Commissioner may at any time suo-motu
or on an application made to him in this behalf, revoke any order made against
any person under sub-section (2) and thereupon such person shall cease to be
disqualified.
82. Power of Commissioner and other authorities
to take evidence on oath, etc.
(1) The Commissioner or any person appointed
under subsection (2) of section 16 to assist him shall, for the purposes of
this Act, have the same powers as are vested in a court under the Code of Civil
Procedure. 1908, when trying a suit, in respect of the following matters,
namely,
(a)
enforcing the attendance of any person and examining him on
oath or affirmation; and
(b)
compelling the production of accounts and documents; and
(c) issuing
commissions for the examination of witnesses.
(2) Any proceeding under this Act before the
Commissioner or any person appointed under sub-section (2) of section 16 to
assist him shall be deemed to be a judicial proceeding within the meaning of
sections 193 and 228 and for the purposes of section 196 of the Indian Penal
Code, 1860. 1908.
(3) Subject to any rules made in this behalf,
any authority referred to in sub-section (1) may impound and retain in its
custody for such period as it thinks fit, any books of account or other
documents produced before it in any proceedings under this Act:
Provided that a person
appointed under sub-section (2) of section 16 to assist the Commissioner shall
not impound any books of account or other documents without recording his
reasons for doing so and retain in his custody any such books or documents for
a period exceeding thirty days without obtaining the approval of the
Commissioner therefor.
83. Change of an incumbent of an office.
Whenever
in respect of any proceeding under this Act, the Commissioner or any person
appointed under sub-section (2) of section 16 to assist him,
ceases to exercise jurisdiction and is succeeded by another person who has and
exercises jurisdiction, the person so succeeding may continue the proceeding
from the stage at which the proceeding was left by his predecessor:
Provided
that the dealer concerned may demand that before the proceeding is so
continued, the previous proceeding or any part thereof be reopened or that
before any order of assessment is passed against him, he
shallbereheard.
84. Extension of period of limitation in certain cases.
An
appellate authority may admit any appeal or permit the filling of a memorandum
of cross objections under section 73 and the Tribunal may admit an application
under section 75 or under section 78 after the period of limitation laid down
in the said sections, if the appellant or the applicant satisfies the appellate
authority or the Tribunal, as the case may be, that he had sufficient cause for
not preferring the appeal or filing a memorandum of cross objections or making
the application, within such period.
OFFENCES AND PENALTIES.
(1) Whoever,
(a) not being a
registered dealer, falsely represents that he is or was a registered dealer at
the time when he sells or purchases goods;
(b) knowingly
furnishes a false return where the amount of tax, which could have been evaded
if the false return had been accepted as true, exceeds Rs. 1000;
(c) knowingly
produces before the Commissioner, false tax invoice, bill, voucher,
cash-memorandum, declaration, certificate or other document for claiming
deduction or tax credit, the value of which exceeds Rs. 1000
(d) fails to pay
tax as per the returns filed by him;
(e) knowingly keeps
or produces false account;
(f) issues to any person certificate or
declaration under this Act, or a invoice, bill, cash-memorandum, voucher or
other document which he knows or has reason to believe to be false;
(g) willfully
attempts, in any manner whatsoever, to evade tax leviable under this Act;
shall on conviction, be
punished with imprisonment for a term which shall not be less than six months
but which may extend to three years and with fine of rupees twenty thousand.
(2) Whoever
(a) carries on
business as a dealer without being registered in contravention of section 21;
or
(b) fails without
sufficient cause to furnish any information required by section 26; or
(c) fails to
surrender his certificate of registration as provided in subsection (9) of
section 27; or
(d) fails without
sufficient cause to furnish any returns as required by section 29 by the date
and in the manner prescribed; or
(e) without
reasonable cause, contravenes any of the provisions of section 31; or
(f) fails without
sufficient cause, when directed so to do under section 62 to keep any accounts
or record, in accordance with the directions; or
(g) fails without sufficient cause, to comply
with any requirements made of him under section 67, or obstructs any officer
making inspection or search or seizure under that section; or
(h) obstructs or
prevents any officer performing any function under this Act; or
(i) being owner or in-charge of a goods
vehicle fails, neglects or refuses to comply with any of the requirements
contained in section 67 or 68,
(j) issues
to another registered dealer tax invoice, retail invoice, bill or cash
memorandum with the intention to defraud the Government revenue or with the
intention that the Government may be defrauded of its revenue, shall, on
conviction, be punished with imprisonment for a term which may extend to one
year and with fine of rupees twenty thousand.
(3) Subject to the provision of section 97,
if any Government servant discloses any particulars referred to in sub-section
(1) of section 92, he shall, on conviction, be punished with imprisonment for a
term which may extend to six months and with fine.
(4) Whoever aids or abets any person in
commission of any act specified in sub-sections (1) or (2) shall on conviction,
be punished with rigorous imprisonment which shall not be less than three
months but which may extend to one year and with fine of rupees twenty thousand.
(5) Whoever commits any of the acts specified
in sub-sections (1) to (3) and the offence is a continuing one under any of the
provisions of these sub-sections, shall, on conviction, be punished with daily
fine which shall not be less than rupees five hundred during the period of the
continuance of the offence, in addition to the punishments provided under this
section.
(6) Where a dealer is guilty of an offence
specified in sub-sections (1) and (2), the person to be the manager of the
business of such dealer under section 65 shall also be deemed to be guilty of
such offence, unless he proves that the offence was committed without his
knowledge or that he exercised all due diligence to prevent the commission
thereof.
86. Offences by companies, etc.
(1) Where an offence under this Act or the rules
there under has been committed by a company, every person who at the time the
offence was committed, was in-charge of, and was responsible to the company for
the conduct of the business of the company, as well as the company shall be
deemed to be guilty of the offence and shall be liable to be proceeded against
and punished accordingly:
Provided that, nothing
contained in this sub-section shall render any such person liable to any
punishment provided in this Act if he proves that the offence was committed
without his knowledge or that he exercised all due diligence to prevent the
commission of such offence.
(2) Notwithstanding anything contained in
sub-section (1), where an offence under this Act has been committed by a
company and it is proved that the offence has been committed with the consent
or connivance of, or is attributable to any neglect on the part of any
director, manager, secretary or other officer of the company, such director,
manager, secretary or other officer shall also be deemed to be guilty of that
offence and shall be liable to be proceeded against and punished accordingly.
Explanation.—For the purpose of this section,—
(a) “Company” means a body corporate, and
includes a firm or other association of persons; and
(b) “Director" in relation to a firm
means a partner in the firm.
(3) Where an offence under this Act has
been committed by a Hindu Undivided Family, the karta thereof shall be deemed
to be guilty of the offence and shall be liable to be proceeded against and
punished accordingly:
Provided that nothing
contained in this sub-section shall render the karta liable to any punishment
if he proves that the offence was committed without his knowledge or that he
had exercised all due diligence to prevent the commission of such offence:
Provided further that,
where an offence under this Act has been committed by a Hindu Undivided Family
and it is proved that the offence has been committed with the consent or
connivance of or is attributable to any neglect on the part of any adult member
of the Hindu Undivided Family, such member shall also be deemed to be guilty of
that offence and shall be liable to be proceeded against and punished
accordingly.
87. Cognizance
of offences.
(1) No court shall take cognizance of any
offence under this Act or the rules except with the previous sanction of the
Commissioner, and no court inferior to that of a Metropolitan Magistrate shall
try any such offence.
(2) Notwithstanding
anything contained in the Code of Criminal
Procedure, 1973, all
offences punishable under this Act or the rules shall be cognizable and
bailable.
88. Investigation of offences.
(1) Subject to such conditions as may be prescribed,
the Commissioner Investigation of may authorize either generally or in respect
of a particular case or class of cases any officer or person subordinate to him
to investigate all or any of the offences punishable under this Act.
(2) Every officer or person so authorized shall,
in the conduct of such investigation, exercise the powers conferred by the Code
of Criminal Procedure, 1973 upon an officer in-charge of a police station for
the investigation of a cognizable offence.
(1) The Commissioner may, either before or
after the institution of Compounding proceedings
for any offence punishable under section 85 or under any rules of offences.
accept from any person charged with such offence, by way of
composition of offence a sum of rupees five thousand or where the offence
charged is under section 85 not exceeding double the amount of tax, but not
less than the amount of tax, which would have been payable on the turnover of
sale or purchase to which the said offence relates, whichever is greater.
(2)
On payment of such sum as may be
determined by the Commissioner under sub-section (1), no further proceedings
shall be taken against the accused person in respect of the same offence and
any proceedings, if already taken, shall stand abated.
MISCELLANEOUS
(1) No
suit, prosecution or other legal proceedings shall lie against the Commissioner
or any officer of the Government for anything which is in good faith done or
intended to be done under this Act or the rules.
(2) No
action shall lie for damages or for any other claim by any person against the
Commissioner or any officer of the Government for anything done in good faith
in discharge of their duties under this Act.
The
Commissioner and all officers and persons appointed under section 16 and all
members of Tribunal appointed under section 19 shall be deemed to be public
servants within the meaning of section 21 of Indian Penal Code, 1860.
92. Disclosure of
information by a public servant.
All
particulars contained in any statement made or return furnished or accounts or
documents produced in accordance with the provisions of this Act, or any record
of evidence given in the course of any proceedings under this Act (other than
proceedings before a criminal court), shall, save as provided in sub-section
(3) be treated as confidential and no court shall save as aforesaid, be
entitled to require any servant of the Government to produce before it any
statement, declaration, return, accounts, document or record or any part
thereof, or to give evidence before it in respect thereof.
(2) Nothing contained in this section shall apply to the
disclosure,-
(a) of any such particulars in respect of any
such statement, return, account, document evidence, affidavit or deposition for
the purpose of any prosecution under the Indian Penal Code,1860 or the
Prevention of Corruption Act, 1988, or this Act, or
(b) of any such
particulars to the State Government or to any person acting in the execution of
this Act, for the purpose of carrying out the object of this Act, or
(c) of any such
particulars when such disclosure is occasioned by the lawful employment under
this Act, of any process for the service of any notice or the recovery of any
demand. or
(d) of any such
particulars to a civil court in any suit, to which the Government is a party,
which relates to any matter arising out of any proceedings under this Act, or
(e) of any such
particulars to any officer appointed to audit, receipt or refund of the tax
imposed by this Act, or
(f) of any such particulars where such
particulars are relevant to any inquiry into the conduct of an official of the
Sales Tax Department to any person or persons appointed to hold such inquiry, or
(g) of such facts to an officer of the Central
Government or a State Government as may be necessary for the purpose of
enabling the Government to levy or realise any tax or duty imposed by it, or
(h) of any such particulars, when such
disclosure is occasioned by the lawful exercise by a public servant of his
powers under the Bombay Stamps Act, 1958 or the Indian Stamp Act,1989 to
impound an insufficient stamped document, or
(i) of any such particulars where such
particulars are relevant to any inquiry into a charge of misconduct in
connection with sales tax proceedings against a legal practitioner, sales tax
practitioner, Chartered Accountant or Cost Accountant to the authority
empowered to take disciplinary action against members practising the profession
of a legal practitioner, sales tax practitioner, Chartered Accountant or Cost
Accountant, as the case may be, or
(j) of any such particulars to the Director,
Bureau of Economic and Statistics or to any person or persons authorized under
sub-section (2) of section 71 as may be necessary to enable the Director or
such person or persons to work out the incidence of tax on any commodity, or
(k) of any such particulars to an officer of
the Central Government for the purpose of investigation or prosecution under
any law for the time being in force, as the State Government may direct in any
specific case.
93. Assessment
proceedings etc. not to be invalid on certain grounds.
(1) No assessment (including re-assessment,
revision or rectification), notice, summons or other proceedings made or issued
or taken or purported to have been made or issued or taken in pursuance of any
of the provisions of this Act or under the earlier law shall be invalid or
shall be deemed to be invalid merely by reason of any mistake, defect or
omission in such assessment, notice, summons or other proceedings, if such
assessment, notice, summons or other proceedings are in substance and effect in
conformity with or according to the intent and purposes of this Act or any
earlier law.
(2) The service of any notice, order or
communication shall not be called in question if the said notice, order or
communication, as the case may be, has already been acted upon by the dealer or
person to whom it is issued or which service has not been called in question at
or in the earliest proceedings commenced, continued or finalized pursuant to
such notice, order or communication.
(3) No order of assessment, re-assessment,
revision or rectification passed under the provisions of this Act shall be
invalid merely on the ground that the action could also have been taken by any
other authority under any other provision of this Act.
94. Bar of jurisdiction of
civil courts.
Save as provided by section 78,
(i) no civil
court shall have jurisdiction to deal with or decide any question which the
Tribunal, the Commissioner or any officer appointed to assist him is empowered
to deal with or decide by or under this Act and no injunction shall
be granted by any civil
court in respect of any action taken or to be taken in pursuance of any power
by or under this Act;
(ii) no
assessment made and no order passed under this Act or the rules made thereunder
by the Tribunal, the Commissioner or any officer appointed to assist him shall
be called in question in any civil court.
95. Disclosure of information required under section 71.
(1) No information of
any individual return or part thereof with respect to any matter given for the
purposes of section 71 shall without the previous consent in writing of the
owner for the time being or his authorized agent, be published in such manner
as to enable any particulars to be identified as referring to a particular
dealer and no such information shall be used for the purpose of any proceedings
under the provisions of this Act.
(2) Except for the purpose of prosecution under
this Act, or under the Indian Penal Code, 1860 no person who is not engaged in
the collection of statistics under Section 71 or in the administration of this
Act shall be permitted to see or have access to any information or any
individual return referred to in that section.
(3) If any person required to furnish any information or return
under section 71,-
(a) without reasonable
cause fails to furnish such information or return as may by that section be
required, or
(b) willfully furnishes or causes to furnish
any information or return which he knows to be false, he shall, on conviction,
be punished with fine which may extend to one hundred rupees and in case of a
continuing offence to a further fine which may extend to one hundred rupees for
each day after the first day during which the offence continues.
(4) If any person engaged in connection with
the collection of statistics under section 71 willfully discloses any
information or the contents of any return given or, made under that section,
otherwise than in execution of his duties under that section or for the
purposes of the prosecution of any offence under this section or for the
purposes of the prosecution of an offence under this Act or under the Indian
Penal Code, 1860 he shall on conviction be punished with imprisonment for a
term which may extend to six months or with fine which may be extend to one
thousand rupees or with both.
On every application,-
(a) ertified or
duplicate copy of a certificate of Registration or
(b) for a certified copy of an order of
assessment or any order passed or any document produced or filed in any
proceeding under this Act, or
(c) for the
determination of any question under section 80, or
(d) for a copy of
order or document under this Act there shall be paid such fee in court fee
stamps as may be prescribed.
97. Publication of information
regarding dealers and other persons in public interest.
(1) Notwithstanding anything contained in
sections 92, if the Commissioner is of the opinion that it is necessary or
expedient in the public interest to publish or disclose the names of any
dealers or other persons and any other particulars relating to any proceedings
under this Act in respect of such dealers and persons, he may publish or
disclose or cause to be published or disclosed such names and particulars in
such manner as he thinks fit.
(2) No publication or disclosure under this
section shall be made in relation to any tax levied or penalty imposed or
interest levied or any conviction for any offence connected with any proceeding
under this Act, until the time for presenting an appeal to the appropriate
appellate authority has expired without an appeal having been presented or the
appeal, if presented has been disposed of.
Explanation.--In the
case of a firm, company or other association of persons, the names of the
partners of the firm, the directors, secretaries, treasurers or managers of the
company or the members of the association, as the case may be. may also be published or disclosed, if, in the opinion of
the State Government, the circumstances of the case justify it.
(1) The State Government may, by notification
in the Official Gazette, make rules for carrying out the purposes of this Act.
(2) In particular and without prejudice to
the generality of the foregoing power, such rules may provide for all or any of
the matters expressly required or allowed by this Act to be prescribed by
rules.
(3) In making any rules under this section the
State Government may direct that a breach thereof shall be punishable with fine
not exceeding two thousand rupees, and when the offence is continuing one, with
a daily fine not exceeding one hundred rupees during the continuance of the
offence.
(4) The power to make rules conferred by this
section shall be subject to the condition of the rules being made after
previous publication:
Provided that if the
State Government is satisfied that circumstances exist which render it
necessary to take immediate action, it may dispense with the previous
publication of any rule to be made under this section.
(5) All rules made under this section shall be
laid for not less than thirty days before the State Legislature as soon as may
be after they are made and shall be subject to rescission by the State
Legislature or to such modifications as the State Legislature may make during
the session in which they are so laid or session immediately following. Any
rescission or modification so made by the State Legislature shall be published
in the Official Gazette, and shall thereupon take effect.
99. Power to remove
difficulties.
If any difficulty arises
in giving effect to the provisions of this Act, the State Government may, by
general or special order published in the Official Gazette, make such
provisions not inconsistent with the provisions of this Act as appear to it to
be necessary or expedient for the removal of the difficulty:
Provided
that no such order shall be made after the expiration of two years from the
commencement of this Act.
(1) The Gujarat Sales Tax Act, 1969 and the
Gujarat Purchase Tax on Sugarcane Act, 1989 are hereby repealed:
Provided that such
repeal shall not affect the previous operation of the said Acts or any right,
title, obligation or liability already acquired, accrued or incurred thereunder
and subject thereto, anything done or any action taken including any
appointment, notification, notice, order, rule, form or certificate in exercise
of any powers conferred by or under the said Act shall be deemed to have been
done or taken in exercise of the powers, conferred by or under this Act, as if
this Act were in force on the date on which such thing was done or action was
taken, and all arrears of tax and other amount due at the commencement of this
Act may be recovered as if they had accrued under this Act.
(2) Notwithstanding the repeal of the Gujarat
Sales Tax Act, 1969, or as the case may be, the Gujarat Purchase Tax on
Sugarcane Act, 1989, (hereinafter in this section referred to as the “said
Act”) –
(a) all rules, regulations, orders,
notifications, forms and notices issued under the said Act and in force
immediately before the appointed day shall continue to have effect for the
purposes of the levy, assessment, reassessment, collection, refund or set-off of
any tax, or the granting of a drawback in respect thereof or the imposition of
any penalty, which levy, assessment, reassessment, collection, refund, set-off,
drawback or penalty relates to any period before the appointed day or for any
other purpose whatsoever connected with or incidental to any of the purposes
aforesaid.
(b) any registration certificate issued under
the said Act and in force immediately before the appointed day shall be deemed
to be the registration certificate issued under this Act, and accordingly such
registration certificate shall be valid and effectual as a registration
certificate under this Act until such certificate is issued, substituted,
suspended or cancelled under the provisions of this Act.
(c) any appointment, notification, order,
rule, regulation, form or notice made or issued under the said Act shall, so
far as it is not inconsistent with the provisions of this Act, continue in
force, and be deemed to have been made or issued under the provisions of this
Act, unless and until it is superseded by any appointment, notification, order,
rule, regulation, form or notice made or issued under the provisions of this
Act;
(d) any person entitled to appear before any
authority under the said Act shall be deemed to be entitled to appear before
any authority under this Act, and accordingly if such person be a sales tax
practitioner he shall be entitled to have his name entered in the list
maintained under section 81.
(3) Without prejudice to the provisions
contained in sub-section (2) and subject thereto, section 7 of the Bombay
General Clauses Act, 1904 shall apply in relation to the repeal of said Act as
if the said Act had been enacted within the meaning of the said section 7.
[See sub-section (1) of section 5]
GOODS,
THE SALES OR PURCHASE OF WHICH ARE EXEMPT FROM TAX
|
Sr. no. |
Description of goods. |
Conditions and exceptions
subject to which exemption is granted. |
|
1 |
2 |
3 |
|
1 |
Agate (Akik)
Stones and articles made therefrom |
- |
|
2 |
(i)Agricultural
implements operated exclusively by human or animal agency for exclusive use
in agricultural operations and the parts thereof, which are ordinarily not
also used otherwise than as such parts. (ii) Opener
(Huller) and thrasher for agriculture use. |
- |
|
3 |
Aids and
implements used by handicapped persons. (1) Braille
educational equipment, Braille typewriters, Braille writing slates and
Braille watch. (2) Group
hearing aids and Hearing aids. (3) Induction
group aids. (4) Speech
trainer. (5) Language
master (6) Audiometer. (7) Voice
chord. (8) Walkers. (9) Wheel
chair. (10) Calipers
of all types. (11)
Artificial limbs. (12) Crutches.
(13)
Orthopaedic footwear and Orthopaedic implants. (14) Tricycles
and auto-tricycles for handicapped persons (15) All types
of splints. (16) Heart
valves. (17)
Prosthetic aids for leprosy affected people. (18)
Intra-ocular lens used for cataract operation. |
- |
|
4 |
Artificial
teeth |
- |
|
5 |
Bangles made
of glass or plastic bangles. |
|
|
6 |
Betel leaves
and pan, tambul, vida, or patti prepared from betel leaves. |
- |
|
7 |
Bindi, Kumkum
or sindur. |
- |
|
8 |
Books,
periodicals and journals, time tables for railways and passenger transport
services. |
Except which
are specified in entry 56 in Schedule II |
|
9 |
(1) Bread. (2)
Khakhra, papad, papad pipes (3) Sev made out of wheat flour or maida (4)
Unfried potato katri |
- |
|
10 |
Cattle, sheep
and goats. |
- |
|
11 |
Cattle feed
including fodder, grass, hay and straw and concentrates. (excluding
cottonseeds, oilcakes and de-oiled cakes.) |
- |
|
12 |
(i) Cereals
and pulses; (ii) Flour of
cereals and pulses except Maize flour; (iii) Wheat
flour, Rava, Suzi or maida made from wheat. |
Except when
sold in sealed package under a brand. |
|
13 |
Charkha and
other implements and spare parts thereof meant for use in the production of
handspun yarn, as may be specified by the State Government by notification in
the Official Gazette. |
- |
|
14 |
Chikki and
revdi. |
- |
|
15 |
Chillies,
tamarind and turmeric whole or in powder form. |
Except when
sold in sealed package under a brand. |
|
16 |
Coconut in
shell (other than kopra). |
- |
|
17 |
Condoms, loops
and contraceptive devices. |
- |
|
18 |
Deshi Nalia |
- |
|
19 |
Drip
irrigation equipment |
- |
|
20 |
Eggs |
- |
|
21 |
Electrical
energy |
- |
|
22 |
Farsan and
eatables (other than sweetmeats) as the State Government may by notification
in the Official Gazette, specify for the purpose of this entry. |
Except when
sold in sealed containers under a brand. |
|
23 |
(i) Firewood
and Charcoal. (ii) Wood of
Limda, Pipla, Baval and Vadla sold in form other than fire wood |
- |
|
24 |
Fish, Sea
food, and other aquatic products |
Except when
sold in sealed containers under a brand. |
|
25 |
Fishing nets |
- |
|
26 |
(i)Fresh
flowers (excluding artificial flowers). (ii)Veni,
gajra, garlands and such other articles prepared from fresh flowers
(excluding those of artificial flowers). |
- |
|
27 |
Flower, fruit
and vegetable seed, seeds of lucerne grass (Rajka) and of sann hemp, bulbs,
tubers and plants other than orchids. |
- |
|
28 |
Fresh fruits,
fresh vegetables, edible tubers and garlic. |
- |
|
29 |
Gur but not
including Kakavi or Kakab or molasses |
- |
|
30 |
Haar, Pavitra,
Kalagi, Mugat, Modh. etc. made from artificial silk
yarn and artificial silk yarn waste. |
- |
|
31 |
Hand Carts or
animal driven carts. |
- |
|
32 |
Handlooms and
parts thereof |
- |
|
33 |
(i) Handloom
fabrics, (ii) Patola
sarees or other articles woven on handlooms. (iii) Silk
Kinkhab fabrics, that is to say handloom cloth interwoven with silk yarn and
jari thread. |
- |
|
34 |
Heena Powder
(Mahendi) |
- |
|
35 |
Human blood
and human blood plasma. |
- |
|
36 |
Hurricane and
hurricane lamps of all kinds and spare parts and accessories thereof. |
- |
|
37 |
Khakhra pan |
- |
|
38 |
Kites (Patang)
|
- |
|
39 |
Manure, that
is to say Organic manure (excluding chemical fertilizers, oil cakes or de-oil
cakes) |
- |
|
40 |
Meat |
Except when
sold in sealed containers. |
|
41 |
(i) Milk
-whole or separated, or pasteurized milk (except milk powder) (ii) Butter
milk, Curd, Lassi, and Chakka |
- |
|
42 |
Motor Spirit
as defined in the Bombay Sales of Motor Spirit Taxation Act, 1958 (Bom.LXVI
of 1958). |
- |
|
43 |
Musical
instruments (handmade and other than electronic musical instruments) and
Harmonium reeds. |
- |
|
44 |
Padia and
patrala |
|
|
45 |
Pawrah and
pick-axe |
- |
|
46 |
Plantain
leaves |
- |
|
47 |
Poultry |
- |
|
48 |
Poultry feed |
- |
|
49 |
Rakhadi |
- |
|
50 |
Salt |
- |
|
51 |
(i)Stamp
papers sold by Government Treasuries or vendors (ii) Postal
items like envelope, post card etc. sold by Government. |
- |
|
52 |
Vaccines,
Toxoids or sera |
- |
|
53 |
Water (other
than aerated, mineral, purified water, medicinal, ionic, distilled, battery,
de-mineralized water and water sold in sealed container). |
- |
|
54 |
(i) Wooden
brushes meant for house-hold purposes; (ii) Articles
made from wood, that is to say Dhoka, Welan, Bajoth, Patla-Patli and Cradles.
(iii) Wooden
frames of Drum, Dholak, Tabla, Konga or bonga. |
|
[See section 7 and section 9]
GOODS, THE SALES OR
PURCHASE OF WHICH IS SUBJECT TO TAX
AND THE RATE OF TAX
|
Sr. no. |
DESCRIPTION OF GOODS. |
Rate of tax |
|
1 |
2 |
3 |
|
1 |
Agricultural
implements to which entry 1 in schedule I does not
apply and agricultural machinery. |
Four paise in
the rupee |
|
2 |
Bamboo,
whether whole or split and articles made of Bamboo. |
Four paise in
the rupee |
|
3 |
Bearings of
all types, including ball-bearing, roller bearings, taper bearing and niddle
roller bearings and spare parts and components thereof. |
Four paise in
the rupee |
|
4 |
Beltings |
Four paise in
the rupee |
|
5 |
Betel nut and
Arecanut powder |
Four paise in
the rupee |
|
6 |
Bicycles,
tricycles, cycle rickshaws, pedal rickshaws, and cycles combination and &
accessories and parts thereof |
Four paise in
the rupee |
|
7 |
Bolts and nuts
|
Four paise in
the rupee |
|
8 |
Bone meal |
Four paise in
the rupee |
|
9 |
Brass parts |
Four paise in
the rupee |
|
10 |
(i) Bricks of
all kinds including fly ash bricks, refractory bricks. (ii) Roofing
tiles known as Manglori Nalia. |
Four paise in
the rupee |
|
11 |
Buckets,
drums, trunks, Ghamela and Tagara made of GP sheets or CR Sheets. |
Four paise in
the rupee |
|
12 |
Bulk drugs |
Four paise in
the rupee |
|
13 |
(i) Bullion
and specie, gold, silver, and other precious metals. (ii) Articles
or jewellery made of gold or silver or both or of other precious metals
(studded or not studded with precious stones or pearls whether real,
artificial or cultured) (iii) Precious
stones, semi-precious stones and pearls of all types. |
One paise in
the rupee |
|
14 |
Candle made of
wax |
Four paise in
the rupee |
|
15 |
(i) Capital
goods as may be notified in the Official Gazette by the Government under
clause (5) of section 2. (ii) Plant and
machinery. |
Four paise in
the rupee |
|
16 |
Castings or
Cast Iron casting. |
Four paise in
the rupee |
|
17 |
Caustic soda
and silicate of soda |
Four paise in
the rupee |
|
18 |
Chemicals. |
Four paise in
the rupee |
|
19 |
Chemical
fertilizers of all types. |
Four paise in
the rupee |
|
20 |
(i) Coal
including coke in all its forms but excluding charcoal (ii) Fly ash
of coal (iii) Coal gas
|
Four paise in
the rupee |
|
21 |
Coir and coir
products excluding coir mattresses |
Four paise in
the rupee |
|
22 |
Coffee beans
and seeds, cocoa pods, green tea leaf and Chicory tubers or chicory roots
whether cut or dried or processed. |
Four paise in
the rupee |
|
23 |
Communications
equipment such as, Private Branch Exchange (P.B.X) and Electronic Private
Automatic Branch Exchange (E.P.A.B.X) etc. |
Four paise in
the rupee |
|
24 |
(i) Cotton,
that is to say, all kinds of cotton (indigenous or imported), in its
unmanufactured state, whether ginned or unginned, baled, pressed or
otherwise. (ii) Cotton
waste |
Four paise in
the rupee |
|
25 |
Country
liquors that is all liquors other than foreign liquors manufacture in India
and foreign liquors that is potable foreign liquors brought into or
manufactured in India including spirit, wines and fermented liquors |
Sixty paise in
the rupee |
|
26 |
Crucibles |
Four paise in
the rupee |
|
27 |
Crude oil,
that is to say, crude petroleum oil and crude oils obtained from bituminous
materials such as the shale, calcareous rock sand, whatever their composition
whether obtained from normal or condensation oil deposits or by the
destructive distillation of bituminous minerals and whether or not subjected
to all or any of the following processes, (i)
Decantation, (ii)
de-salting (iii)
dehydration, (iv)
stabilisation in order to normalise the vapour pressure (v)
elimination of very light fraction with a view to returning them to the oil
deposits in order to improve the drainage and maintain the pressure (vi) the
addition of only those hydrocarbons previously recovered by physical methods
during the course of the above mentioned processes (vii) any other minor process (including addition of purpoint
depressants or flow improvers) which does not change the essential character
of the substance. |
Four paise in
the rupee |
|
28 |
Drilling rigs
of all types and spare parts and accessories thereof. |
Four paise in
the rupee |
|
29 |
Dyes |
Four paise in
the rupee |
|
30 |
(i) Edible
oils, (ii) Washed
cotton seed oils (iii)
Vegetable non-essential oils, (iv)
Hydrogenated vegetable oils including vanaspati |
Four paise in
the rupee |
|
31 |
Electrodes |
Four paise in
the rupee |
|
32 |
Fabrics of all
types which are not liable to Additional Excise Duty |
Four paise in
the rupee |
|
33 |
Herb, bark,
dry plant, dry root, commonly known as jadi booti. |
Four paise in
the rupee |
|
34 |
Hides and
skins whether in row or dressed state |
Four paise in
the rupee |
|
35 |
Hose pipes. |
Four paise in
the rupee |
|
36 |
Hosiery goods.
|
Four paise in
the rupee |
|
37 |
Husk including
groundnut husk. |
Four paise in
the rupee |
|
38 |
Ice |
Four paise in
the rupee |
|
39 |
Imitation
jewellry |
Four paise in
the rupee |
|
40 |
Incense sticks
commonly known as, agarbatti, Padi, Dhoop or dhupbatti and Loban |
Four paise in
the rupee |
|
41 |
Incorporeal
goods or intangible goods, that is to say , copyright, patent, Trade marks,
Brand name, Import Licence |
Four paise in
the rupee |
|
42 |
Industrial
cables (High voltage cables, XLPE Cables, jelly filled cables, optical fibers
cables and speciality communication cables). |
Four paise in
the rupee |
|
43 |
Iron and
steel, that is to say – (i)pig iron
and cast iron including ingot, moulds, bottom plates, iron scrap, cast iron
scrap, runner scrap (ii)Steel
semis (ingots, slabs, blooms and billets of all qualities, shapes and sizes) (iii) Skelp
bars, tin bars, sheet bars, hoe bars and sleeper bars, (iv)Steel bars
(rounds, rods, squares, flats octagons and hexagons, plan and ribbed or
twisted, in coil form as well as straight lengths) (v)Steel
structurals, (angles, joints, channels, tees, sheet pilting sections Z
sections or any other rolled sections. (vi)Sheets,
hoops, strips, and skelp, both black and galvanised, hot and cold rolled,
plain or corrugated in all qualities in straight lengths and in coil form as
rolled and in rivetted conditions (vii)Plates
both plain and chequerred in all qualities (viii)Discs,
rings, forgings and Steel-castings (ix)Tool,
alloy and special steel of any of the above categories (x)Steel
melting scrap in all forms including steel skull, turnings and borings
(xi)Steel tubes, both welded and seamless of all diameters and lengths,
including tube fittings, (xii)Tin-plates
both hot dipped and electrolytic and tin free plates, (xiii)Fish
plate bars, bearing plate bars, crossing sleeper bars, fish plates, bearing
plates crossing sleeper and pressed steel (xiv) Sleepers
rail-heavy and light crane rails (xv) Wheels,
tyres, axles and wheel seats (xvi) Wire
rods and wire-rolled, drawn, galvanised, aluminised, tinned or coated such as
by copper (xvii)
Defective, rejects, cuttings or end pieces of any of the above categories |
Four paise in
the rupee |
|
44 |
Iron powder |
Four paise in
the rupee |
|
45 |
IT products
namely, computers, computer peripherals, digital electronic equipment,
communication equipment and components thereof. |
Four paise in
the rupee |
|
46 |
Jute that is
to say the fibre extracted from plants belonging to the species corchorous
Capsularies and corchorous olitorous and the fibre known as mesta or bimli
extracted from plants or the species hibiscus cannapinus and hibiscus
sadarifavar altissima (and the fibre known as sunn, sunn-hemp extracted from
plants of the species Crotalaria juncea) whether baled or otherwise. |
Four paise in
the rupee |
|
47 |
Kerosene
stoves and spare parts and accessories thereof |
Four paise in
the rupee |
|
48 |
(i) Kirana and
spices of all varieties and forms, as may be specified by the notification,
including Amchur, Ajma (Ajwa), Asalia, Coconut copra, Dry fruits, Isabgul,
Kalingada seeds, Khas khas (red poppy seeds), Jira (Cumin seeds), Variali
(aniseeds), Methi (fengru seeds), Suva, Dhana, dhana dal, and Pepper and
spices, (ii) Following
goods, when sold in sealed packages under a brand: (a)Flours of
cereals and pulses in all forms other than wheat flour (b) Powder of
chillies, tamarind of turmeric or powder of any other Masala (c) Farsan that
is to say eatables (other than sweet preparations) (d) Meat, Fish
and all Sea food (e) Processed
vegetables. |
Four paise in
the rupee |
|
49 |
Linear Alkyl
Benzene (L.A.B.) |
Four paise in
the rupee |
|
50 |
Milk powder
whole or skimmed |
Four paise in
the rupee |
|
51 |
Minerals and
Ores |
Four paise in
the rupee |
|
52 |
(i)
Non-ferrous metals and alloys (ii) Rolled
and extrusion products, sheets, rods, bars, slabs, blocks, ingots, circle and
scraps (made from non-ferrous metals and alloys), |
Four paise in
the rupee |
|
53 |
Oil cakes or
de-oiled cakes of all types including cottonseed oilcake |
Four paise in
the rupee |
|
54 |
(i) Oilseeds
of all types (ii) Peanuts (iii) Other
seeds not specified in schedule I |
Four paise in
the rupee |
|
55 |
Packing
materials as may be specified by the Government |
Four paise in
the rupee |
|
56 |
(i) Papers of
all types. (ii)
Stationary articles such as – exercise books, graph book and laboratory note
book, drawing books, examination answer books, catalogues and publications to
which entry 6 of Schedule I does not apply; Pre printed or Printed material,
calendar or Calendar Datta; Charts, maps and globes for educational use.;
Writing instruments such as Fountain pens, stylograph pens, ball-point pens,
Lead pencils and pencils of all types and spare parts and accessories of pens
and pencils; Slates and slates pencils and chalk sticks, crayons, foot rules,
slide rules, geometrical instruments, mathematical instruments or parts
thereof or mathematical instruments boxes, school colour boxes, black board,
rubber erasers, pencil sharpners, dissection boxes, Audio picture cards,
Printing ink, cartridges and toner, drawing pin, drawing brushes, rubber
rings |
Four paise in
the rupee |
|
57 |
Pesticides,
weedicides and insecticides |
Four paise in
the rupee |
|
58 |
Pipes of all
varieties including G.I. Pipes, C.I. pipes, ductile pipes and PVC pipes |
Four paise in the
rupee |
|
59 |
Plastic
footwear |
Four paise in
the rupee |
|
60 |
Readymade
garments and articles prepared from any textile. |
Four paise in
the rupee |
|
61 |
Renewable
energy devices and spare parts thereof |
Four paise in
the rupee |
|
62 |
Raw wool and
wool tops |
Four paise in
the rupee |
|
63 |
Safety
matches. |
Four paise in
the rupee |
|
64 |
Screen
printing blocks meant for use in printing fabrics |
Four paise in
the rupee |
|
65 |
Sewing
machines |
Four paise in
the rupee |
|
66 |
Silk fabrics |
Four paise in
the rupee |
|
67 |
Sim cards |
Four paise in
the rupee |
|
68 |
Software |
Four paise in
the rupee |
|
69 |
Soda ash |
Four paise in
the rupee |
|
70 |
(i) Sport
goods excluding footwear (ii) Equipment
of physical exercise |
Four paise in
the rupee |
|
71 |
Starches and
maize flour and topioca flour |
Four paise in
the rupee |
|
72 |
Steam |
Four paise in
the rupee |
|
73 |
Sugar |
Four paise in
the rupee |
|
74 |
Sugarcane |
Four paise in
the rupee |
|
75 |
(i) Threads,
twines, strings or ropes prepared from any material or goods or waste
thereof. (ii) Sewing
threads. (iii) Varat
and Varatdi |
Four paise in
the rupee |
|
76 |
Timru leaves
or Beedi leaves |
Four paise in
the rupee |
|
77 |
(i)Tractors of
all types, Power tillers and trailer of tractors (ii)Tractor-
trailors |
Four paise in
the rupee |
|
78 |
(i)Transformers,
switch gears, switch boards, and spares parts and accessories thereof (ii)
Transformer towers and parts there of. |
Four paise in
the rupee |
|
79 |
Umbrella of
all types |
Four paise in
the rupee |
|
80 |
Utensils of
all types. |
Four paise in
the rupee |
|
81 |
Vessels of
every description to be used for plying on water |
Four paise in
the rupee |
|
82 |
(i) Water
pumps and water pumping sets including Centrifugal, monobloc or submersible
pumps and parts thereof. (ii) Hand pumps
and parts and fittings thereof |
Four paise in
the rupee |
|
83 |
Wet dates
known as khajur. |
Four paise in
the rupee |
|
84 |
Winding wires
including super enamelled copper winding wire and plastic coated winding
wire. |
Four paise in
the rupee |
|
85 |
Wires, nails
and blue tacks |
Four paise in
the rupee |
|
86 |
(i) Yarn or
yarn waste of all types (including cotton yarn) (ii) Fibres or
fibre waste of all types. |
Four paise in
the rupee |
|
87 |
All goods
other than those specified in schedule I and in the preceding entries of this
schedule. |
Twelve and a
half paise in the rupee |