HIMACHAL PRADESH VALUE ADDED TAX ACT,
2005
An Act to provide for the levy of a value added tax on
the sale or purchase of goods in the State of Himachal Pradesh and certain
other matters connected therewith.
BE it enacted by the Legislative Assembly of Himachal
Pradesh in the Fifty‑sixth Year of the Republic of India as follows:-
1. Short title, extent and commencement
(1) This
Act may be called the Himachal Pradesh Value Added Tax Act, 2005.
(2) It
extends to the whole of the State of Himachal Pradesh.
(3) It
shall come into force from such date as the Government may, by notification,
appoint.
In this Act, unless there is anything repugnant
in the subject or context,-
(a) "Act"
means the Himachal Pradesh Value Added Tax Act, 2005;
(b) "Assessing
Authority" means any person appointed by the State Government under sub‑section
(2) of section 3 to make any assessment under this Act;
(c) "business"
includes,-
(i) any
trade, commerce, manufacture, any adventure or concern whether or not such
trade, commerce, manufacture, adventure or concern is carried on with a motive
to make profit and whether or not any profit accrues therefrom; and
(ii) any
transaction in connection with, or ancillary to, such trade, commerce,
manufacture, adventure or concern;
(d) "capital
goods" means plant, machinery or equipment used in the process of
manufacturing, processing and packing of goods for sale excluding civil
structures as may be prescribed;
(e) "casual
dealer" means any person who carries on occasional transactions of
business of buying, selling, supplying or distributing the goods whether for
cash, deferred payment, commission, remuneration or other valuable
consideration;
(f) "Commissioner"
means the Excise and Taxation Commissioner appointed under sub‑section
(1) of section 3;
(g) "dealer"
means any person who carries on (whether regularly or otherwise) the business
of buying, selling, supplying or distributing goods, directly or
indirectly, for cash, or for deferred payment, or for
commission, remuneration or other valuable consideration and includes,-
(i) a
local Authority, a body corporate, a company, a co‑operative society
or
other society, club, firm, Hindu undivided family or other association of
persons which carries on such business;
(ii) a
factor, broker, commission agent, a del credere agent or any other mercantile
agent, by whatever name called;
(iii) an
auctioneer who carries on the business of selling or auctioning 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 the principal;
(iv) every person engaged in the business of,-
(a) transfer,
otherwise than in pursuance of a contract, of property in any 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 the
execution of a works contract;
(c) delivery
of goods on hire‑purchase or any system of payment by instalments;
(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; and
(f) 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) where such supply or service, is for cash,
deferred payment or other valuable consideration;
Explanation (I): Every person who acts as an agent in
Himachal Pradesh of a dealer residing outside his State and buys, sells,
supplies or distributes goods in the
State or acts on behalf of such dealer as-
(i) a
mercantile agent as defined in the Sale of Goods ' Act, 1930; or
(ii) an
agent for handling of goods or documents of title relating to goods;
or
(iii) an agent for the collection of the payment of the sale price of goods or
as a guarantor for such collection or payment, and
every local branch or office in Himachal Pradesh of a firm registered outside
this State or a company or other body corporate, the principal office or
headquarters whereof is outside this State, shall be deemed to be a dealer for
the purpose of this Act.
Explanation (II): Every department, or its subordinate
offices, of a Government which whether or not in the course of business, buys,
sells, supplies or distributes goods, directly or otherwise, for cash or for
deferred
payment or for commission, remuneration or other
valuable consideration, shall, except in relation to any sale, supply or
distribution of surplus, unserviceable or old stores or materials or waste
products or obsolete or discarded machinery or parts or accessories thereof, be
deemed to be A dealer for the purpose of this Act.
Explanation (III): For the purpose of this clause
"Government" shall include the Central Government or the Government
of any other State or Union Territory.
(h) "declared
goods" shall have the meaning assigned to that expression in clause (c) of
section 2 of the Central Sales Tax Act, 1956;
(i) "Deputy
Excise and Taxation Commissioner" means the Deputy Excise and Taxation
Commissioner, appointed under sub‑section (1) of section 3 of this Act,
to assist the Commissioner and shall also include the joint/ Additional Excise
and Taxation Commissioner,
(j) "document"
includes title deeds, writing or inscription, statement of account and data
stored electronically in whatever form and the like that furnishes evidence;
(k) "goods"
means every kind of movable property (other than news‑papers, actionable
claims, stocks and shares and securities) and includes live stock, all
materials, commodities and articles and every kind of property (whether as
goods or in some other form) involved in the execution of a works contract, and
all growing crops, grass or things attached to or forming part of the land
which are agreed to be severed before sale or under the contract of sale;
(1) "import"
means the bringing of goods into Himachal Pradesh from any place outside its
territorial jurisdiction;
(m) "input
tax" means the amount paid or payable byway of tax under this Act, by a
purchasing registered dealer to a selling registered dealer on the purchase of
goods in the course of business for re‑sale, or for use in the
manufacture of taxable goods or for use as containers or packing material or
for the execution of works contract;
(n) "invoice"
means a document listing goods with price, quantity, tax involved and other
particulars as may be prescribed and includes a bill, cash memorandum, slip,
receipt or similar record, regardless of its form;
(o) "motor
spirit" means any inflammable hydrocarbon including any mixture of
hydrocarbons or any liquid containing hydrocarbon, which is ordinarily used for
providing reasonably efficient motive power for any form of motor vehicle;
(p) "notification" means notification published under
proper Authority in the Rajpatra, Himachal Pradesh;
(q) "output
tax" output tax in relation to any registered dealer means the tax payable
under this Act in respect of any taxable sale of goods made by that dealer in
the course of his business;
(r) "prescribed"
means prescribed by rules made under this Act;
(s) "purchase"
with all its grammatical or cognate expressions, means the acquisition of goods
for cash or deferred payment or other valuable consideration otherwise than
under a mortgage, hypothecation, charge or pledge and includes-
(i) the
transfer, otherwise than in pursuance of a contract, of property in any goods
for cash, deferred payment or other valuable consideration;
(ii) the
transfer of property in goods (whether as goods or in some other form) involved
in the execution of a works contract;
(iii) the
delivery of goods on hire‑purchase or any system of payment by
instalments;
(iv) the
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;
(v) the
supply of goods by any unincorporated association or body of persons to a
member thereof for cash, deferred payment or other valuable consideration;
(vi) 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), where such supply or service, is for cash,
deferred payment or other valuable consideration,
and such transfer, delivery or supply of any goods
shall be deemed to be a sale of those goods by the person making the transfer,
delivery or supply and a purchase of those goods by the person to whom such
transfer, delivery or supply is made;
(t) "registrered"
means registered under this Act;
(u) "reverse
input tax" means that amount of input tax credit in relation to any goods
for which input tax credit has been availed of, but which shall stand reversed in
the circumstances specified in sub‑sections (8) and (9) of section
(v) "sale"
means any transfer of property in goods for cash or for deferred
payment or for any other valuable consideration other
than a mortgage, hypothecation, charge or pledge, and includes-
(i) the
transfer, otherwise than in pursuance of a contract, of property in any goods
for cash, deferred payment or other valuable consideration;
(ii) the
transfer of property in goods (whether as goods or in some other form) involved
in the execution of a works contract;
(iii) the
delivery of goods on hire‑purchase or any system of payment by
instalments;
(iv) the
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;
(v) the
supply of goods by any unincorporated association or body of persons to a
member thereof for cash, deferred payment or other valuable consideration;
(vi) 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), where such supply or service, is for cash,
deferred payment or other valuable consideration,
and such transfer, delivery or supply of any goods
shall be deemed to be a sale of those goods by the person making the transfer,
delivery or supply and a purchase of those goods by the person to whom such
transfer, delivery or supply is made;
(w) "Schedule"
means a Schedule to this Act;
(x) "section"
means the section of this Act;
(y) "State
Government" or "Government" means the Government of Himachal
Pradesh;
(z) "tax"
or "value added tax" means the tax on the sale or purchase of goods,
levied under section 6 or 7;
(za) "tax
period" means the period prescribed for filing a return;
(zb) "timber"
includes trees when they have fallen, or have been felled or agreed to be
felled and all wood whether cut up or fashioned or hollowed out for any purpose
or not;
(zc) "Tribunal"
means the Appellate Tribunal established under section 44;
(zd) "turnover"
means the aggregate amount of sales and purchases and parts of sales and
purchases made by any dealer during the given period and includes any sum charged,
on account of freight, storage, demurrage, insurance and for anything done by
the person in respect of the goods at the time of or before delivery thereof;
Explanation I: The proceeds of any sale made outside
Himachal Pradesh by a dealer, who carries on business both inside and outside
Himachal Pradesh, shall not be included in the turnover.
Explanation II : The turnover of any dealer in respect
of transactions of forward contracts, in which goods are actually not
delivered, shall not be included in the turnover.
Explanation III : The turnover of any dealer in
respect of transactions of forward contracts, in which goods are actually not
delivered, shall not be included in the turnover.
Explanation IV: The sum allowed as cash discount
according to ordinary trade practice shall not be included in the turnover.
Explanation V: The amount to be included in the
turnover in respect of delivery of goods on hire purchase or any system of
payment by instalments, shall be the total sum payable by the hirer under the
hire‑purchase agreement in respect of the goods so delivered, or the
amount actually paid in instalments.
Explanation VI: The amount to be included in the
turnover in respect of transfer of property in goods (whether as goods or in
some other form) involved in the execution of works contract shall be its sale
price.
(ze) "vehicle"
includes any carriage or conveyance used on land, water or air; and
(zo) "year"
means the financial year.
(1) For
carrying out the purposes of this Act, the State Government may, by
notification, appoint a person to be the Commissioner and such other persons
with such designations as it thinks fit.
(2) The
State Government may, by notification, appoint as many Assessing Authorities as
it may think fit.
(3) The
Commissioner and other persons appointed under sub‑section (1) shall
perform such functions and duties as may be required by or under this Act or as
may be conferred, by the State Government, by notification.
(4) The
jurisdiction of the Commissioner and other officers posted at the State
Headquarters shall extend to the whole of the State of Himachal Pradesh, and
the jurisdiction of other officers or officials shall, unless the State
Government otherwise directs, by notification, extend to the districts or the
areas of the districts for which they are for the time being posted.
(5) Every
officer appointed under sub‑sections (1) and (2) shall exercise his
powers subject to the general superintendence and control of the Commissioner.
(1) Subject
to the provisions of section 6 and section 7 every dealer (except one dealing
exclusively in goods declared tax free under section 9) whose gross turnover
during the year immediately preceding the commencement of this Act exceeded the
taxable quantum shall be liable to pay tax under this Act on all sales effected
and purchases made after the coming into force of this Act.
(2) Every
dealer, who does not deal exclusively in goods declared to be tax free under
section 9, shall be liable to pay tax under this Act from the date on which his
gross turnover during any year first exceeds the taxable quantum.
(3) Notwithstanding
anything contained in sub‑sections (1) and (2), no tax on the sale of any
goods shall be levied if a tax on their purchase is levied under this Act.
(4) Every
dealer who has become liable to pay tax under this Act shall continue to be so
liable until the expiry of three consecutive years during each of which his
gross turnover has failed to exceed the taxable quantum and such further period
after the date of such expiry as may be prescribed, and on the expiry of this
later period his liability to pay tax shall cease.
(5) Every
dealer, whose liability to pay tax has ceased under the provisions of sub‑section
(4), shall again be liable to pay tax under this Act with effect from the date
on which his gross turnover first exceeds the taxable quantum.
(6) In
this Act, the expression "taxable quantum" means,-
(a) in
relation to any dealer who imports for sale or use in manufacturing or
processing any goods in Himachal Pradesh: Rupee 1/‑;
(b) in
relation to any dealer, who himself manufactures or produces any goods for
sale: Rs. 2,00,000/‑;
(c) in
relation to any dealer, who runs a hotel, restaurant, bakery or other similar
establishment wherein food preparations including tea, are served: Rs.
2,00,000/-;
(d) in
relation to any particular classes of dealers not falling within clauses (a), (b)
and/or (c), such sum as may be prescribed; or
(e) in
relation to any other dealer: Rs. 4,00,000 / ‑
PROVIDED that the registration of dealers already
registered under this clause shall not be cancelled until their turnover in
each of three consecutive years does not entitle them to cancellation under sub‑section
(4).
5. Liability
of a dealer registered under the Central Sales Tax Act, 1956 (74 of 1956)
A dealer registered under the Central Sales Tax Act,
1956 who is not liable to pay tax under section 4 shall nevertheless be liable
to pay tax under this Act on any sale or purchase made by him inside the State
of Himachal Pradesh:
PROVIDED that nothing herein shall apply to a dealer
who deals exclusively in goods declared tax free under section 9.
(1) Subject
to the provisions of this Act, there shall be levied a tax,-
(a) at
every point of sale in respect of the goods specified in the second column of
Schedule 'A',
(b) at
the prescribed points of purchase in the second column of Schedule 'C', and
(c) at
the first point of sale in respect of the goods specified in the second column
of Schedule 'D';
on the taxable turnover of a dealer, at the rates as
specified in the respective Schedule or at such rates not exceeding 100 paise in
a rupee as the State Government may, by notification, direct:
PROVIDED that the State Government may notify
different rates in respect of different goods or classes of goods:
PROVIDED FURTHER that the rate of tax in respect of
declared goods shall not exceed the maximum rate of tax specified in clause (a)
of section 15 of the Central Sales Tax Act, 1956 (74 of 1956):
PROVIDED FURTHER that subject to furnishing of a
declaration as maybe prescribed, the Government may, by notification, reduce
the rate of tax levied under sub‑section (1) up to 4% in respect of goods
sold to the Government, not being a registered dealer, for captive use in
telecommunication network, or in the generation or distribution of electricity
or any other form of power.
(2) Notwithstanding
anything contained in this section, where any goods are sold in container or
are packed in any packing material, the rate of tax applicable to such
container or packing material, shall, whether the price of the container or
packing material is charged separately or not, be the same as is applicable to
the goods, contained or packed therein and the turnover in respect of the
container and packing material, shall be included in the turnover of such
goods. Where the goods, sold in container or packed in packing material are tax
free, the sale of such container or packing material shall also be tax free.
(3) In
this Act, the expression "taxable turnover" means that part of the
dealer's gross turnover during any period which remains after deducting therefrom-
(a) his
turnover during that period on-
(i)
the sale of goods
declared tax free under section 9;
(ii)
sale or purchase of
goods falling under section 58; and
(iii) such other sales or
purchases as may be prescribed; and
(b) the
amount of tax included in the gross turnover.
Notwithstanding anything contained in this Act, every
registered dealer, whose gross turnover in any year does not exceed such amount
as may be prescribed, shall, in lieu of the tax payable under this Act, pay
presumptive tax on the entire taxable turnover of sales or purchases, as the
case may be, at such rates, not exceeding the rates specified in section 6, as
the State Government may, by notification, direct, and subject to such
conditions and restrictions and in such manner as may be prescribed:
PROVIDED that no input tax credit shall be leviable to
such dealer on his taxable turnover:
PROVIDED FURTHER that no registered dealer, who
imports goods for sale or use in manufacturing or processing any goods for
sale, shall be entitled to make payment of presumptive tax under this section.
8. Levy
of purchase tax on certain goods in certain circumstances
Where a dealer who is liable to pay tax under this Act
purchases any goods other than those specified in Schedule 'B' from any source,
and
(a) uses
them within the State in the manufacture of goods specified in Schedule
"B", or
(b) uses
them within the State in the manufacture of any goods, other than those
specified in Schedule "B", and sends the goods so manufactured
outside the State in any manner otherwise than by way of sale in the course of
inter‑State trade or commerce or in the course of export out of the
territory of India, or
(c) uses
such goods for a purpose other than that of resale within the State or sale in
the course of inter‑State trade or commerce or in the course of export
out of the territory of India, or
(d) sends
them outside the State in any manner otherwise than by way of sale in the
course of inter‑State trade or commerce or in the course of export out of
the territory of India,
and no tax is payable on the purchase of such goods
under any other provisions of this Act, there shall be levied a tax on the
purchase of such goods equal to the rate as notified, under sub‑section
(1) of section 6, by the State Government.
No tax shall be payable on the sale of goods specified
in the second column of Schedule 'B', subject to the conditions and exceptions,
if any, set out in the corresponding entry in the third column thereof and no
dealer shall charge sales tax on the sale of goods which are declared tax free
from time to time under this section.
The State Government, after giving by notification,
not less than thirty days' notice of its intention to do so, may, by like
notification, add to or delete or otherwise amend from the Schedules 'A', '13',
or 'C' any goods, and thereupon the Schedule shall be deemed to have been
amended accordingly.
(1) The
input tax credit which a registered dealer is entitled to claim, shall be the
amount of tax paid or payable by such registered dealer (hereinafter in this
section called purchasing dealer), to the selling registered dealer, on the
turnover of purchases made by the purchasing dealer during the tax period.
Input tax credit shall be allowed subject to such conditions as may be
prescribed and shall be calculated in the manner as provided in this section.
(2) The
dealer availing of the input tax credit shall maintain the register and the
books of accounts in the manner as may be prescribed.
(3) The
input tax credit shall be allowed to the extent of the amount of tax paid by
the purchasing dealer on his purchase of taxable goods made in the State, from
a registered dealer holding a valid certificate of registration, which are
intended for the purposes of,-
(a) sale
or re‑sale of goods by him in the State; or
(b) sale
in the course of inter‑State trade or commerce; or
(c) sale
in the course of export out of the territory of India; or
(d) use
as raw material or as capital goods in the manufacturing or processing of
taxable goods for sale of the nature referred to in clause (a), (b) or (c); or
(e) use
as containers or packing material of taxable goods for sale of the nature
referred to in clause (a), (b) or (c) and (d):
PROVIDED that if the goods so purchased are used
partially for the purposes specified in this sub‑section, the input tax credit
shall be allowed proportionate to the extent they are used for the purposes
specified in this sub‑section:
PROVIDED FURTHER that input tax credit on fuels and
lubricants, shall be allowed only to the extent by which the amount of tax paid
in the State exceeds 4 percent subject to the condition that such fuels and
lubricants are used in the production of taxable goods or captive generation of
power.
(4) Notwithstanding
anything contained in sub‑section (3), the input tax credit shall be allowed
only to the extent by which the amount of tax paid in the State exceeds 4
percent on purchase of goods-
(a) sent
outside the State otherwise than by way of sale in the course of inter‑State
trade or commerce or in the course of export out of territory of India; and
(b) used
in manufacture or in packing of taxable goods sent outside the Siate otherwise
by way of sale in the course of inter‑State trade or commerce or in the
course of export out of territory of India.
(5) The
input tax credit shall not be claimed by the dealer until the tax period in
which he receives from a registered dealer from whom he has purchased the
goods, a tax invoice in the prescribed form (in original) evidencing the
payment of amount of input tax:
PROVIDED that for good and sufficient reasons, to be
recorded in writing and in the prescribed manner, the Commissioner or any
person appointed under section 3 may allow such credit subject to such
conditions and restrictions as may be prescribed.
(6) The
input tax credit on capital goods shall be limited to plant and machinery
directly connected with the manufacturing or processing of the finished
products and input tax credit as admissible under this section shall commence
from the date of commencement of commercial production and shall be adjusted
against tax payable on turnover of sales over a period of three years:
PROVIDED that in case of closure of business before
the period of three years, no further input tax credit shall be allowed and
input tax carried forward, if any, shall be forfeited.
(7) No
input tax credit shall be claimed by a registered dealer and shall not be
allowed to him for,-
(a) tax
collected on the purchase of goods used in the manufacture or . processing or
packing of goods declared tax free under section 9;
(b) purchases
of goods made in the course of inter‑State trade and commerce or in the
course of import from outside the country or from outside the in respect of tax
paid in any other country or other State;
(c) purchase
of goods made in the State from,-
(i) an un‑registered
dealer or a casual dealer, or
(ii) a
dealer whose certificate of registration has been suspended, or
(iii) a
registered dealer who has opted to pay lump‑sum amount, in lieu of tax, by
way of composition under section 16 or presumptive tax under section 7;
(d) purchase
of goods used as free samples or gift or for personal consumption;
(e) goods
purchased for the uses specified in sub‑section (3) but not sold because
of theft, loss or destruction for any reason including natural calamity;
(f) purchase
of capital goods other than those specified in sub‑section (6); stock of
goods remaining unsold at the time of closure of business and if a dealer has
already taken any input tax credit against purchase of such stock of goods
there shall be a reverse tax credit on closure of such business;
(h) except
as provided in sub‑section (4), tax collected on purchase of goods but
subsequently dispatched to a place outside the State in any manner otherwise
than by way of sale in the course of inter‑State trade or commerce;
(i) except
as provided in sub‑section (4), tax collected on the purchase of goods
used as raw material in the manufacture of goods, and the goods so manufactured
are dispatched outside the State in any manner otherwise than by way of sale in
the course of inter‑State trade or commerce;
(j) purchase
of goods for sale under the transfer of right to use goods for any purpose
(whether for specified period or not);
(k) purchases
where,-
(i) tax
invoice is not available with the registered dealer; or
(ii) there
is evidence that the tax invoice has not been issued by the selling dealer from
whom the goods have been or stated to have been purchased; or
(iii) original
tax invoice does not contain the details of tax charged separately by the
selling dealer from whom purchasing dealer has purchased the goods.
(8) Notwithstanding
anything contained in this Act, the State Government may, as may be prescribed,
specify any goods in respect of which input tax credit shall not be allowed in
part or in full or specify the class of dealers who shall not be entitled to
input tax credit in part or in full.
(9) If
the goods purchased are intended for the purposes specified in sub‑section
(3) and are subsequently used fully or partly for purposes other than those
specified in the said sub‑section, the input tax credit, if availed of,
shall be reduced 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.
(10) Subject
to the provisions of this section, input tax credit already availed of shall
stand reversed if,-
(a) the
dealer discontinues business; or
(b) the
certificate of registration granted to the dealer is cancelled; or
(c) the
goods fall under clause (d) or (e) or (g) of sub‑section (7); or
(d) excess
input tax credit has been claimed; or
(e) the
goods purchased are returned to the selling dealer within three months of the
date of purchase of such goods; or
(f) the
credit note has been received from selling registered dealer for the amount of
tax charged in excess of the tax due according to the provisions of this Act;
or
(g) there
exist any other circumstances as may be prescribed.
(11) The
dealer shall be liable to pay such amount of reverse input‑tax credit
alongwith interest under section 19 from the date immediately succeeding the
last date prescribed for filing of return for such period for which such input‑tax
credit was claimed till the date of its payment.
(12) Where
any purchasing registered dealer has been issued with a credit note or debit
note or if he returns or rejects goods purchased, as a consequence of which the
input tax credit availed of by him during any tax period (to which the purchase
of goods relates) becomes either short or excess, he shall compensate such
short or excess by adjusting the amount of input tax credit allowed to him in
respect of the tax period in which the credit note or debit note has been
issued or the goods are returned or rejected, subject to such conditions as may
be prescribed.
(13) The
amount of net input tax credit, which may be availed of by a registered dealer,
shall be determined on the basis of the following formula, namely:
Net Input Tax Credit = A+B‑C
Explanation: In this formula-
(i) "A"
represents the amount of input tax credit for which the dealer is entitled to;
(ii) "B"
represents outstanding input tax credit brought forward from the previous tax
period; and
(iii) "C"
represents reverse input tax credit as determined under sub‑section (10).
(14) The
methods that are used by a registered dealer in a year to determine the extent
to which the goods are sold, used, consumed or supplied, or intended to be
sold, used, consumed or supplied in the course of making taxable sales shall be
fair and reasonable:
PROVIDED that the Commissioner or any person appointed
under section 3 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.
(15) Where
a registered dealer without entering into a transaction of sale, issues to
another registered dealer a tax invoice, retail invoice, bill or cash memorandum
with the intention to defraud the State Government revenue or with the
intention that the State Government may be defrauded of its revenue, the
Commissioner or any person appointed under section 3 may, after making such
inquiry as he thinks fit and giving a reasonable opportunity of being heard,
deny the benefit of input tax credit to such registered dealer issuing or
accepting such tax invoice, retail invoice, bill or cash memorandum on other
invoice either prospectively or retrospectively from such date as he may, fix.
(1) The
net tax payable by a registered dealer for a tax period shall be the difference
between the output tax plus purchase tax, if any, and the input tax, which can
be determined from the following formula, namely:
Net tax payable = (O+P)‑l
Where 'O' denotes the output tax payable for any tax
period, 'P' denotes the purchase tax paid by a registered dealer for any tax
period, and 'I' denotes the input tax paid or payable for the said tax period,
including input tax credit, if any, carried forward from any preceding tax
period as determined under section 11
(2) If
the amount of input tax credit is more than the amount of output tax, the same
may be adjusted, at the option of the dealer, against the tax liability for the
said tax period, if any, under the Central Sales Tax Act, 1956 and only the
remaining amount of the Central Sales Tax shall be payable.
(3) Excess
amount of input tax credit, if any, after adjustment under sub‑section
(2) shall be adjusted against any outstanding tax, penalty or interest under
this Act or, at the option of the dealer, under the Central Sales Tax Act,
1956.
(4) Excess
amount of input tax credit, if any, after adjustment under sub‑sections
(2) and (3) may be carried over to subsequent tax period or at the option of
taxable person, on application being made in the prescribed manner, be refunded
in accordance with the provisions of this Act.
(5) The
net tax payable for a tax period by a person, liable to pay tax, but not registered
under this Act shall be equal to the output tax plus purchase tax, if any,
payable for the said tax period as per the provisions of this Act and no input
tax credit shall be admissible to him.
In respect of any sale or purchase effected by a
dealer the burden of proving that he is not liable to pay tax under section 6
or section 8 or that he is eligible to input tax credit under section 11 shall
be on him.
REGISTRATION, RETURNS,
ASSESSMENT, RECOVERY AND REFUND OF TAX
(1) No
dealer shall, while being liable to pay tax under this Act, carry on business
as a dealer unless he has been registered and possesses a registration
certificate:
PROVIDED that in the case of a casual dealer, on
payment of a fee of Rs. 50/‑, the Assessing Authority or the Officer, In
charge of the check‑post or barrier or any other officer inspecting the
goods at any other place, may dispense with the requirement of a valid
certificate of registration under this section.
(2) Any
person intending to establish a business in Himachal Pradesh for the purpose of
manufacturing goods for sale may, notwithstanding that he is not liable to
registration under sub‑section (1), be granted a registration certificate
subject to such conditions and in the manner as may be prescribed, and such
person when granted a registration certificate shall, for so long as such
certificate is in force, be liable to pay tax under the Act:
PROVIDED that grant of such a certificate of
registration shall be subject to the conditions that if such person fails to
establish the business within the period specified in the certificate or fails
to comply with any of the conditions specified therein, he shall be liable by
order of the Assessing Authority, to pay a penalty equivalent to one‑half
of the amount of tax which would have been payable by him in respect of all the
goods purchased by him as if he had not been ' registered under this sub‑section:
PROVIDED FURTHER that a dealer who sells taxable
goods, not liable to register under sub‑section (1) but who desires to
register voluntarily may make an application to the appropriate Assessing
Authority in the manner as may be prescribed and shall pay tax only in
accordance with section 4 and from the date his gross turnover exceeds a
taxable quantum as specified in sub‑section (6) of section 4.
(3) Every
dealer required by sub‑section (1) to be registered and every person who
may be granted a registration certificate under sub‑section (2) shall make
an application in this behalf in the prescribed manner, to the Assessing
Authority.
(4) If
the Assessing Authority is satisfied that an application for registration made
under sub‑section (3) is in order, he shall, in accordance with such
rules and on payment of such fee and subject to such conditions as may be
prescribed, register the applicant and grant him a certificate of registration
in the prescribed form.
(5) When
any dealer fails to apply for registration in contravention of sub‑section
(1) of this section, the Assessing Authority shall register such dealer and
grant him a certificate of registration and such registration shall take effect
as if it had been made under sub‑section (4) of this section on the
dealer's application.
(6) The
Assessing Authority may, by order,-
(a) amend
certificate of registration on the dealer's application if the dealer or his
legal representative furnishes the information that he-
(i) has
transferred his business, or
(ii) has
changed the name (constitution) or nature of his business, or
(iii) wants
to open a new place of business or make any change either in the places of
business or in the class or classes of goods specified in his certificate of
registration for resale or for use in manufacture of goods for sale;
(b) suspend
a certificate of ‑registration, without prejudice to any other penalty,
if the dealer or person has violated any provision of this Act or rules made
thereunder;
(c) cancel
a certificate of registration, on dealer's or, as the case may be, of his legal
representative's application or suo‑motu, without affecting liability to
pay tax till such cancellation-
(i) if
the dealer sells or otherwise disposes of his business or any place of business
or discontinues his business, or
(ii) if
the dealer dies, or
(iii) for
any other sufficient cause including misuse of the certificate of registration
or cessation of liability to payment of tax under this Act:
PROVIDED that no order affecting any person adversely shall
be made under clauses (b) and (c) of this sub‑section without affording
him a reasonable opportunity of being heard; and
(d) renew
a certificate of registration for such period and in the manner and on payment
of such fee as may be prescribed.
15. Security
from certain class of dealers
(1) The
Commissioner or any other person appointed to assist him under sub‑section
(1) of section 3, if it appears to him to be necessary so to do for the proper
realisation of the tax levied under this Act, may, for reasons to be recorded
in writing, impose as a condition of the issue of a certificate of registration
to a dealer, or of the continuance in effect of such certificate issued to any
dealer, a requirement that the dealer shall give security as may be prescribed
for such amount as may be specified in the order.
(2) No
dealer shall be required to furnish security under sub‑section (1),
unless he has been given an opportunity of being heard.
(3) Where
the security furnished by a dealer under sub‑section (1) is in the form
of a surety bond and the surety becomes insolvent or is otherwise incapacitated
or dies or withdraws, the dealer shall, within fifteen days of the occurrence
of any of the aforesaid events, inform the Authority granting the certificate of
registration and shall within thirty days of such occurrence furnish a fresh
surety bond.
(4) The
Authority granting the certificate of registration may, by an order in writing,
for good and sufficient cause, forfeit the whole or any part of the security
furnished by a dealer for realising any amount of tax or penalty payable by a
dealer:
PROVIDED that no order shall be passed under this sub‑section
without giving the dealer and the surety a reasonable opportunity of being
heard.
(5) The
Authority granting a certificate of registration may, on application by the
dealer, order the refund of security furnished by him or any part thereof, if
the same is not required for the purposes of this Act.
16.
Payment
of tax and returns
(1) Tax
payable under the Act shall be paid in the manner hereinafter provided at such
intervals as may be prescribed.
(2) The
State Government may, in the public interest and subject to such conditions as
it may deem fit, accept from any class of dealers in lieu of the amount of tax
payable tinder this Act for any period, by way of composition, a lumpsum to be
determined and to be paid at such intervals and in such manner as may be
prescribed, or the lumpsum amount may be calculated at a fixed rate on the
taxable turnover, as may be prescribed in respect of such class of dealers and
for this purpose a simplified system of registration, maintenance of accounts,
filing of returns may also be prescribed which shall remain in force during the
period of such composition.
(3) Such
dealers as may be required so to do by the Assessing Authority by notice served
in the prescribed manner and every registered dealer shall furnish such returns
by such dates and to such Authority as may be prescribed.
(4) Before
a registered dealer furnishes the return required by sub‑section (3), he
shall, in the prescribed manner, pay into a Government Treasury or the
Scheduled Bank which is a treasury bank, or at the office of the Assistant
Excise and Taxation Commissioner or Excise and Taxation Officer‑in‑charge
of the District, the full amount of tax due from him under the Act according to
such returns and shall furnish along with the returns a receipt from such
treasury bank or office of the Assistant Excise and Taxation Commissioner or Excise
and Taxation Officer‑in‑charge of the District showing the payment
of such amount:
PROVIDED that no payment of such amount shall be
accepted at the office of the Assistant Excise and Taxation Commissioner or
Excise and Taxation Officer‑in‑charge of the District save through
a crossed cheque or bank draft payable at a local branch of a Scheduled Bank in
favour of the Assessing Authority:
PROVIDED FURTHER that when a dealer makes payment
through a Scheduled Bank other than the treasury bank, he shall obtain from
such bank a certificate, as may be prescribed, to the effect that the bank has
remitted the amount of tax to the treasury bank on the dealer's directions and
on production of such certificate to the Assessing Authority the dealer shall
be deemed to have paid the tax on the date following the date on which such
certificate is issued by such bank:
PROVIDED FURTHER that in case of payment through a
Scheduled Bank which is located at a station other than that of the treasury
bank, the dealer shall need to procure the prescribed certificate from the
concerned bank, as mentioned under the preceding proviso, at least three days
before the expiry of the due date prescribed under sub‑section (2) for
filing the return and only in that case the dealer shall be deemed to I‑lave
made the payment by due date:
PROVIDED FURTHER that where the payment is made
through a crossed cheque, such crossed cheque must be delivered in the office
of the Assessing Authority concerned, not less than ten clear days before the
expiry of the due date prescribed under sub‑section (3) for filing the
return, and the dealer shall be deemed to have made the payment on the date on
which such crossed cheque, after its presentation in the bank, is actually
credited into the Government account and necessary receipt is issued by the
bank in favour of the dealer:
PROVIDED FURTHER that where the payment is made
through a crossed cheque and the cheque is dishonoured, the deater shall be
deemed to have not made the payment .and shall be liable to any action which
may be taken for not making payment under this Act or the rules framed
thereunder.
Explanation: For the purposes of this sub‑section
"Scheduled Bank" means a bank included in the Second Schedule to the
Reserve Bank of India Act, 1934.
(5) If
any dealer discovers any omission or other error in any return furnished by
him, he may, at any time, before the date prescribed for the furnishing of the
next return by him, furnish a revised return, and if the revised return shows a
greater amount of tax to be due than was shown in the original return, it shall
be accompanied by a receipt showing payment, as may be prescribed in sub‑section
(4), of extra amount.
(6) If
a dealer fails without sufficient cause to furnish the returns by the prescribed
date as required under sub‑section (3), the dealer shall be liable to
pay, by way of penalty, a sum equal to Rs. 25/‑ per day for delay in
furnishing such return up to 10 days, where after the penalty shall be Rs. 50/per
day till the default continues, but such penalty shall not exceed Rs. 3000/‑provided
that where no taxis payable, such penalty shall not exceed Rs. 500/‑ for
every return.
(7) If
a dealer fails without sufficient cause to comply with the requirements of the
provisions of sub‑section (4), the Commissioner or any person appointed
to assist him under sub‑section (1) of section 3 may, after giving such
dealer a reasonable opportunity of being heard, direct him to pay by way of
penalty, a sum which shall not be less than ten percentum, but which shall not
exceed one‑and‑a‑half times of the amount of tax to which he
is assessed or is liable to be assessed under section 21 in addition to the
amount of tax to which he is assessed or is liable to be assessed.
(8) If
a dealer has maintained false or incorrect accounts with a view to suppressing
his sales, purchases or stocks of goods, or has concealed any particulars of
his sales or purchases or has furnished to, or produced before, any Authority
under this Act or the rules made thereunder any account, return or information
which is false or incorrect in any material particular, the Commissioner or any
person appointed to assist him under s4‑section (1) of section 3 may,
after affording such dealer a reasonable opportunity of being heard, direct him
to pay by way of penalty in addition to the tax to which he is assessed or is
liable to be assessed, an amount which shall not be less than twenty‑five
percentum, but which shall not exceed one and‑a‑half times of the
amount of tax to Which he is assessed.
17. Tax
deduction from the bills or invoices of the works contractors
(1) Notwithstanding
anything contrary contained in section 20, every person making any payment in
discharge of any liability on account of valuable consideration payable-
(a) for the transfer of property in goods,
whether as goods or in some other form, involved in the execution of
works contract, and
(b) for
the transfer of property in goods on account of sales of such goods made to the
Government of India or to any State Government,
shall deduct an amount not exceeding four percentum,
as maybe prescribed, purporting to be a part or full of the tax payable on such
sales, from the bills or invoices raised by the works contractor or by the
dealer selling such goods, as payable by the person:
PROVIDED that no deduction of such amount shall be
made in respect of any transfer of property in goods, the turnover of which is
deductible, from the dealer's turnover, under sub‑section (3) of section
6:
PROVIDED FURTHER that no such payment or discharge of
any bill raised by the works contractor selling such goods shall be made
without deductions:
PROVIDED FURTHER that if the State Government is
satisfied that it is necessary to do so in the interest of the State revenue,
it may notify the names/posts of such persons Who shall be competent persons to
make such deduction.
(2) The
deduction referred to in sub‑section (1) shall be made in the manner,
which may be prescribed, and the payment of such deduction into the Government
treasury shall be the responsibility of the person making such deduction.
(3) The
person making such deduction shall issue deduction certificate in the
prescribed manner to the person or dealer from whose bill or invoice, such
deduction has been made.
(4) If
any person contravenes any or all of the provisions of sub‑section (1) or
(2) or (3), the prescribed Authority shall, after giving an opportunity of
being heard, by an order, in writing, direct that such person shall pay by way
of penalty, a sum not exceeding twice the amount of tax deductible under sub‑section
(1).
(5) The
provisions of sections 25 and 27 for recovery of any amount of tax due from a
dealer shall mutatis mutandis apply for recovery of any amount of tax, deducted
and/or any penalty imposed but not deposited under this section.
18. Declaration
and certificates to be filed along with returns
Every dealer claiming,-
(i) any
deduction from his gross turnover, or
(ii) any
part of his taxable turnover to be a sale to Government, or
(iii) any
part of the taxable turnover to be liable to tax at concessional rate of tax
under this Act,
shall, along with the return under sub‑section
(3) of section 16, furnish to the Assessing Authority, the declaration or the
certificate as required under this Act.
(1) If
any dealer fails to pay the amount of tax due from him under this Act except to
the extent mentioned in sub‑section (2), he shall, in addition to the
amount of tax, be liable to pay simple interest on the amount of tax due and
payable by him at the rate of one percentum per month, from the date
immediately following the last date on which the dealer should have either
filed the return or paid the tax under this Act, for a period of one month and
thereafter at the rate of one and‑a‑half percentum per month till
the default continues.
(2) If
the amount of tax or penalty due from a dealer is not paid by him within the
period specified in the notice of demand or, if no period is specified within
thirty days from the service of such notice, the dealer shall, in addition to
the amount of tax or penalty, be liable to pay simple interest on such amount
at the rate of one percentum per month from the date immediately following the
date on which the period specified in the notice or the period thirty days, as
the case may be, expires, for a period of one month and thereafter at the rate
of one and‑a‑half percentum per month till the default continues:
PROVIDED that where the recovery of any tax or penalty
is stayed by an order of any court, the amount of tax or penalty shall, after
the order of stay is vacated, be recoverable along with interest at the
aforesaid rate on the amount ultimately found to be due and such interest shall
be payable from the date the tax or penalty first became due.
(3) The
amount of interest payable under this section shall-
(i) for
the purposes of collection and recovery‑be deemed to be tax under this
Act; and
(ii) be
in addition to the penalty, if any, imposed under this Act.
20. Prohibition
against collection of tax in certain cases
(1) No
person shall collect any sum by way of tax in respect of sale or purchase of
any goods on which no tax is payable under this Act.
(2) No
person, who is not a registered dealer and liable to pay tax in respect of any
sale or purchase, shall collect on the sale or purchase of any goods any sum by
way of tax from any other person and no registered dealer shall collect any
amount by way of tax in excess of the amount of tax payable by him under this
Act.
(3) If
any person, or a dealer referred to in sub‑sections (1) and (2)
contravenes any of these provisions he shall be liable to pay, in addition to
any tax for which he may be liable, a penalty of an amount not exceeding five
hundred rupees, or double the amount so collected, whichever is greater.
(4) If
the Commissioner, or any person appointed to assist him under sub‑section
(1) of section 3, in the course of any proceedings under this Act or otherwise,
has reason to believe that any person has become liable to pay penalty under
sub‑section (3), he shall serve on such person a notice in the prescribed
form requiring him to show cause why a penalty as provided in sub‑section
(3) should not be imposed on him and thereupon hold an enquiry and shall make
such order as he thinks fit.
(1) The
returns furnished by a dealer shall be duly acknowledged in the manner
prescribed and where all the returns relating to any year have been filed and
are correct and complete in material particulars, the dealer shall subject to
the provisions of sub‑section (2) be deemed to have been assessed for
th~t year:
PROVIDED that where the returns are not complete in material
particulars, the dealer shall be given an opportunity to complete the same
within fifteen days of service of the notice.
Explanation : For the purpose of sub‑section (1)
a return shall be deemed to be-
(i) correct,
if its version conforms to that of the accounts maintained by the dealer and
the account version cannot be impeached by any adverse information, to the
contrary, available on record till 31st October of the following financial
year; and
(ii) complete,
in material particulars if it contains the entire information required to be
furnished therein, is correct arithmetically and is accompanied by the
statutory or prescribed lists, documents and proof of payment of the full
amount of tax due according to the returns and is duly signed by the dealer.
(2) Subject
to such rules as the State Government may make for selection of cases for
scrutiny in respect of dealers specified in sub‑section (1) the
appropriate Assessing Authority shall, in respect of each selected case, serve
on the dealer concerned a notice in the prescribed manner requiring him, on a
date and at a place specified therein, either to attend in person or to produce
or to cause to be produced any evidence on which such dealer may rely in
support of the returns filed by him relating to the period under assessment. On
the day specified in the notice or as soon afterwards as may be the Assessing
Authority shall after hearing the dealer and considering the evidence produced
by him assess the amount of tax, if any, due from him.
(3) Notwithstanding
anything contained in this Act, if the Government considers it necessary and
expedient, in public interest so to do, it may in respect of a dealer, whose
gross turnover in a year does not exceed such amount as the Government may
notify, 'for any financial year, a special scheme of self‑assessment
under the Act:
PROVIDED that in case any dealer, whose taxable
turnover has been assessed under the self‑assessment scheme, is found to
have evaded the tax, the Assessing Authority shall, after affording such dealer
a reasonable opportunity of being heard, direct him to pay by way of penalty,
in addition to the amount of tax assessed, a sum which shall not be less than
one hundred per centum but which shall not exceed one‑and‑a‑half
times of the amount of tax found to have been evaded and assessed.
(4) In
respect of the cases not falling under sub‑section (1), the Assessing
Authority shall serve on such dealer a notice in the prescribed manner
requiring him, on a date and at a place specified therein, either to attend in
person or to produce or to cause to be produced any evidence on which such
dealer may rely in support of such returns. On the day specified in the notice
or as soon afterwards as may be, the Assessing Authority shall, after hearing such
evidence as the dealer may produce, and such other evidence as the Assessing
Authority may require on specified points, assess the amount of tax due from
the dealer.
(5) If
a dealer, having furnished returns in respect of a period, fails to comply with
the terms of a notice issued under sub‑section (4), the Assessing
Authority shall, within five years after the expiry of such period, proceed to
assess to the best of his judgment the amount of the tax due from the dealer.
(6) If
a dealer does not furnish returns in respect of any period by the prescribed
date, the Assessing Authority shall, within five years after the expiry of such
period, after giving the dealer a reasonable opportunity of being heard,
proceed to assess, to the best of his judgment, the amount of tax, if any, due
from the dealer.
(7) If
upon information which has come into his possession, the Assessing Authority is
satisfied that any dealer has been liable to pay tax under this Act in respect
of any period but has failed to apply for registration, the Assessing Authority
shall, within five years after the expiry of such period, after giving the
dealer a reasonable opportunity of being heard, proceed to assess, to the best
of his judgment, the amount of tax, if any, due from the dealer in respect of
such period and all subsequent period and in cases where such dealer has
wilfully failed to apply for registration, the Assessing Authority may direct that the dealer shall pay
by way of penalty, in addition to the amount so assessed, a sum which shall not
be less than fifteen percentum, but which shall not exceed one‑and‑a‑half
times that amount,
(8) The
amount of any tax, penalty or interest payable under this Act shall be paid by
the dealer as may be prescribed by such date as may be specified in the notice
issued by the Assessing Authority for the purpose and the date so specified
shall not be less than fifteen days and not more than thirty days from the date
of service of such notice:
PROVIDED that the Assessing Authority may, with the prior
approval of the Assistant Excise and Taxation Commissioner or the Excise and
Taxation Officer in charge of the district, extend the date of such payment,
but not more than 90 days, or allow payment by monthly instalments not
exceeding three, against an adequate security or a bank guarantee.
(9) If
the tax assessed under this Act or any instalment thereof is not paid by any
dealer within the time specified therefore in the notice of assessment or in
the order permitting payment in instalments, the Commissioner, or any person
appointed to assist him under sub‑section (1) of section 3, may after
giving such dealer an opportunity of being heard, impose on him a penalty not
exceeding the sum due from him.
(10) Any
assessment made under this section shall be without prejudice to any penalty
imposed under this Act.
22. Assessment
of a casual dealer
(1) A
casual dealer who is registered under this Act, shall be assessed like any
other registered dealer under section 21.
(2) A
casual dealer who is not registered shall, immediately on completion of
transaction of sale or purchase for which he is liable to pay tax, report to
the Assessing Authority having jurisdiction with reference to the place of such
transaction or to the Officer In charge of the nearest check‑post or
barrier, the amount of sale or purchase price and the tax payable thereon and
shall deposit the amount of tax with such Assessing Authority or such In charge
of the check‑post or barrier within such time and in such manner as such
Authority or In charge may direct:
PROVIDED that if a casual dealer desires voluntarily
to pay the tax in advance in respect of the goods which such dealer intends to
sell or purchase, he may pay the amount of tax on the sale or purchase value of
such goods enhanced by ten percentum to the Assessing Authority or the Officer‑In
charge of the nearest check‑post or barrier.
(3) Where
a casual dealer fails to make a report as required in sub‑section (2),
the Assessing Authority having jurisdiction or Excise and Taxation Officer, In
charge of the nearest check‑post or barrier may require such casual
dealer to make a report of the sale or purchase price and the tax due, failing
which such Assessing Authority or such In charge of the check‑post or
barrier may assess to the best of his judgement the amount of tax due and
direct the casual dealer to pay the amount of tax within such time and in such
manner as he may direct.
(4) Where
a casual dealer fails to pay the tax as directed by the Assessing Authority or
the Excise and Taxation Officer, In charge of the check‑post or barrier
under sub‑section (2) or (3), the goods belonging to such casual dealer
shall be detained until the tax is paid or adequate security for payment of tax
is furnished.
(1) If
in consequence of definite information which has come into his possession, the
Assessing Authority discovers that the turnover of the business of a dealer has
been under‑assessed or escaped assessment in any year, the Assessing
Authority may, at any time within three years from the date of assessment under
section 21, proceed to re‑assess the tax payable on the turnover which
has been under‑assessed or has escaped assessment:
PROVIDED that the Assessing Authority may also take
action to impose the penalty and interest under this Act:
PROVIDED FURTHER that no order of re‑assessment
or imposition of penalty and interest shall be made unless the dealer is
afforded a reasonable opportunity of being heard in the prescribed manner.
(2) The
Assessing Authority or any such Authority as may be prescribed may, at any
time, within one year from the date of any order passed by him and subject to
such conditions as may be prescribed, rectify any clerical or arithmetical
mistake apparent from the record.
24. Period of limitation for completion of
assessment or re‑assessment not to apply in certain cases
(1) Notwithstanding
the provisions relating to the period of limitation contained in section 21 or
section 23 or in any other provision of this Act, assessment or re‑assessment
may be made at any time in consequence of, or to give effect to, any order made
by any court or other Authority under this Act.
(2) Where
the assessment proceedings relating to any dealer remained stayed under the
orders of any court or other Authority for any period, such period shall be
excluded in computing the period of limitation for assessment or re‑assessment
specified in section 21 or section 23 or in any other provision of this Act.
25. Tax
and penalty recoverable as arrears of land revenue
The amount of any tax and penalty imposed or interest
payable under this Act, which remains unpaid after the due date, shall be
recoverable as arrears of land revenue. 26. Tax, penalty and interest to be
first charge on property
26. Tax, penalty and interest to be first
charge on property
Notwithstanding anything to the contrary contained in
any law, any amount of tax and penalty including interest, if any, payable by a
dealer or any other person under this Act shall be a first charge on the
property of the dealer or such other person.
(1) Notwithstanding
anything contained in section 25 or any law or contract to the contrary,
Commissioner, or any officer other than an Excise and Taxation Inspector,
appointed under section 3 to assist the Commissioner, may, at any time or from
time to time, by notice in writing (a copy of which shall be sent to the dealer
at his last address known to the officer issuing the notice), require-
(a) any
person from whom any amount is due or may become due to a dealer who has failed
to comply with a notice of demand for any amount due under this Act;
(b) any
person who holds or may subsequently hold any money for or on account of such
dealer,
to pay into the Government treasury in the manner
specified in the notice issued under this sub‑section, so much of the
money as is sufficient to pay the amount due from the dealer in respect of the
arrears of the tax, interest and penalty under this Act.
Explanation : For the purposes of this sub‑section,
the amount due to a dealer or money held for or on account of a dealer by any
person shall be computed after taking into account such claim, if any, as may
have fallen due for payment by such dealer to such person and as may be
lawfully subsisting.
(2) The
officer issuing a notice under sub‑section (1) may at any time, or from
time to time, 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 issued under sub‑;section
(1) shall be deemed to have made the payment under the authority of the dealer
and the treasury receipt for such payment 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 service on him of the
notice issued under sub‑section (1) shall be personally liable to the
State Government to the extent of the liability discharged or to the extent of
the liability of the dealer for tax, interest and penalty, whichever is less.
(5) Where
a person on whom a notice is served under sub‑section (1), proves to the
satisfaction of the officer who issued the notice that the sum demanded or any
part thereof was not due to the dealer or that he did not hold any money for or
on account of the dealer, at the time the notice was served on him, then
nothing contained in this section shall be deemed to require such person to pay
into the Government treasury any such money or part thereof, as the case may
be.
(6) Any
amount of money which a person is required to pay under sub‑section (1),
or for which he is personally liable to the State Government under sub‑section
(4) shall, if it remains unpaid, be recoverable as an arrear of land revenue.
(7) The
provisions of this section shall be without prejudice to any action that may be
taken for the recovery of the arrears of tax, interest and penalty, if any, due
from the dealer.
(1) The
Assessing Authority either suo‑motu or on an application shall in the
prescribed manner refund to a registered dealer or any other person any amount
of tax, interest or penalty paid by such dealer or any other person under this
Act, if the amount of tax, penalty or interest so paid is in excess of the
amount due from him under this Act either by a refund voucher or, at the option
of the dealer or any other person, by adjustment of the amount so paid with the
amount due from him, in respect of any other period:
PROVIDED that no application for refund of any excess
credit under sub‑section (4) of section 12 shall be made and no refund
allowed before the end of the second financial year after the commencement of
this Act and thereafter the claim may be made at the end of each subsequent
year:
PROVIDED FURTHER that no refund under this section
shall be allowed unless the claim for refund is made within a period of three
years from the date on which such claim accrues.
(2) Where
any amount required to be refunded by the Assessing Authority to any person by
virtue of an order sanctioning such refund issued under this Act is not
refunded to him within ninety days of the date of the order, the dealer shall
be entitled to get simple interest on such amount at the rate of one percentum
per month from the date immediately following the date of expiry of the said
period for a period of one month and thereafter at the rate of one‑and‑a‑half
percentum per month till the refund is made.
(3) Notwithstanding
anything contained in sub‑section (1) or (2), the Assessing Authority
shall first adjust the amount to be refunded towards the recovery of any
amount due from the dealer on the date of such
adjustment, and shall thereafter refund the balance, if any.
(4) If
the delay in allowing refund within the aforesaid period of ninety days is for
reasons beyond the control of the Assessing Authority or attributable to the
dealer, whether wholly or in part, the period of such delay shall be excluded from
the period for which interest is payable.
(5) If
any question arises whether any period is to be excluded for the purposes of
calculation of interest under sub‑section (4), the same shall be referred
to the Commissioner, or such other officer as the State Government may, by
notification, appoint, whose decision shall be final.
(6) Where
an order allowing refund is the subject‑matter of any appeal or further
proceedings or where any other proceedings under this Act are pending, and the
Assessing Authority is of the opinion that the refund is likely to adversely
affect the recovery, the Assessing Authority may withhold the refuld and refer
the case to the Commissioner whose orders shall be final.
(7) The
period during which the refund remains withheld under sub‑section (6)
shall be excluded for the purpose of calculation of interest under this
section.
(1) Every
registered dealer or a dealer to whom a notice has been served to furnish
returns under sub‑section (3) of section 16 shall maintain a true and up
to date account of the value of goods purchased, manufactured and sold by him,
or goods held by him in stock and in addition to the books of account that a
dealer maintains and keep for the purpose referred to in this sub‑section,
he shall maintain and keep such registers and accounts in such from as may be
prescribed.
(2) Every
dealer referred to in sub‑section (1) shall retain at his place of
business all accounts, registers and documents.
(3) Where
a dealer as referred to in sub‑section (1) has established branch offices
of the business in the State other than the principal place of business, the
relevant accounts, registers and documents in respect of each such branch
shall, without prejudice to the provisions of sub‑section (5), be
maintained and retained by him at such branch also.
(4) If
the Assessing Authority is of the opinion that the accounts maintained by any
dealer or class of dealers do not sufficiently enable him to verify the returns
or to properly make assessment on the basis thereof, he may, by an order,
require such dealer or class of dealers to maintain such accounts, in such
manner as may be prescribed.
(5) The
State Government may, by notification, in public interest, exempt any class of
registered dealers from the operation of the provisions of this section.
30. Tax
invoice, retail invoice etc.
(1) The
tax invoice shall be an invoice containing such particulars as required to be
specified in this section, which shall be issued by one registered dealer to
another dealer (whether registered or not) on the basis of which the purchasing
registered dealer shall be entitled to claim input tax credit.
(2) Every
registered dealer making a taxable sale to another dealer, whether registered
or not, shall issue to such purchasing dealer a tax invoice, at the time of
sale, containing such particulars as specified in sub‑section (5), and
retain a copy thereof.
(3) The
tax invoice shall not be issued by the registered dealer when the sale is-
(a) by
a registered dealer paying presumptive tax under section 7 or lumpsum sub‑section
(2) of section 16 of this Act; or
(b) of
goods declared tax free under section 9 of this Act; or
(c) in
the course of inter‑State trade and commerce; or
(d) the
sale is in the course of export out of the territory of India.
(4) For
every taxable sale only one invoice shall be issued.
(5) The
tax invoice issued under sub‑section (2) shall contain the following
particulars:-
(a) the
words 'Tax Invoice' in bold letters at the top or at other prominent place;
(b) the
name, address and number of certificate of registration of the selling
registered dealer;
(c) the
name, address and number of certificate of registration of the purchasing registered
dealer;
(d) serial
number and the date on which the tax invoice is issued;
(e) description,
quantity, volume and value of goods sold, and amount of tax involved shown
separately;
(f) signatures
of the selling dealer or his servant, manager or agent, duly authorized by him;
and
(g) the
name and address of the printer.
(6) Except
where tax invoice is required to be issued under sub‑section (2), every
registered dealer who sells any goods exceeding two hundred rupees, in any one
transaction, to any person, he shall issue to the purchaser a retail invoice
containing the particulars specified in sub‑section (7), and retain a
copy thereof.
(7) The
retail invoice shall contain the following particulars, namely:-
(a) the
words 'Retail Invoice' or 'Cash Memorandum' or 'Bill' in bold letters at the
top or in a prominent place;
(b) the
name, address and number of certificate of registration of the selling
registered dealer;
(c) in
case the sale is in the course of inter‑State trade or commerce or.
export out of the territory of India, the name, address and registration
number, if any, of the purchasing dealer/ foreign buyer and the type of
statutory form, if any, against which the sale has been made;
(d) serial
number and the date on which the retail invoice is issued;
(e) description,
quantity, volume and value of goods sold, amount of tax involved, if any;
(f) signature
of the selling dealer or his servant, manager or agent, duly authorized by him;
(g) the
name and address of the printer.
(8) Every
registered dealer shall intimate, in writing, to the Assessing Authority, the
total number of the tax invoices and the retail invoices got printed and kept
for use by him during each financial year.
(9) The
tax invoice shall be issued in triplicate and the original along with duplicate
copy shall be given to the purchaser or the person taking delivery of the
goods, as the case may be, and the triplicate copy shall be retained by the
selling dealer.
(10) The
retail invoice shall be issued in duplicate and the original copy shall be
given to the purchaser and the duplicate copy shall be retained by the selling
dealer.
(11)
Where tax invoice or retail invoice are not required to be issued, every
registered dealer shall issue any other invoice as may be prescribed.
(12) Every
dealer shall preserve books of accounts including tax invoices and retail
invoices until the expiry of five years after the end of the year to which they
relate or for such other period as may be prescribed or until the assessment
attains its finality whichever is later.
(13) Where
any dealer is a party to any appeal or revision under this Act or any other
proceeding, he shall retain every record and accounts which pertain to the
subject matter of such appeal, revision or other proceeding, until it is
finally disposed of.
(14) Every
dealer who maintains the records electronically shall also maintain day to day
print‑out of all such records and shall retain them for the period
specified in sub‑section (11), or, as the case may be, in sub‑section
(12).
(15) The
State Government may, by notification in public interest, exempt any class of
the registered dealers from the provisions contained in sub‑sections (1)
to (13).
(16) Where
any dealer contravenes the provisions of sub‑sections (2) to (14), the
Commissioner or any other person appointed under section 3 may, after affording
such dealer a reasonable opportunity of being heard, impose upon him a penalty
which may extend to five thousand rupees for every contravention.
31. Issue
of credit notes and debit notes
(1) Where
a tax invoice has been issued for any sale of goods and within six months from
the date of such sale the amount shown as tax charged in that tax invoice is
found to exceed the tax payable in respect of the sale effected, the registered
dealer effecting the sale shall issue forthwith to the purchaser a credit note
containing particulars as prescribed.
(2) Where
a tax invoice has been issued for sale of any goods and the tax payable in
respect of the sale exceeds the amount shown as tax charged in such tax
invoice, the registered dealer making the sale, shall issue to the purchaser a
debit note containing particulars as prescribed.
(3) Any
registered dealer who receives or issues credit notes or debit notes shall
modify his return for the period in which the credit note or debit note is
issued and pay any tax due on such return.
32. Production
and inspection of books, documents and accounts
(1) The
Commissioner, or any person appointed to assist him under sub‑section (1)
of section 3 not below the rank of Excise and Taxation Officer may, for the
purposes of this Act, require any dealer to produce before him any book,
document or account relating to his business and may inspect, examine and copy
the same and make such enquiries from such dealer relating to his business as
may be necessary:
PROVIDED that books, documents and accounts of a
period more than five years prior to the year in which assessment is made shall
not be so required.
(2) Every
registered dealer shall-
(a) maintain
day to day accounts of his business;
(b) maintain
a list of his account books, display it along with his registration certificate
and furnish a copy of such list to the Assessing Authority;
(c) produce,
if so required, account books of his business before the Assessing Authority
for authentication in the prescribed manner;
(d) retain
his account books at the place of his business unless removed there from by an
official for inspection, by any official agency, or by auditors, or for any
other reasons which may be considered to be satisfactory by the Assessing
Authority.
(3) If
any officer referred to in sub‑section (1) has reasonable grounds for
believing that any dealer is trying to evade liability for tax or other dues
under this Act, and that anything necessary for the purpose of an investigation
into his liability may be found in any book, account, register or document, he
may seize such book, account, register or document as may be necessary. The
officer seizing the book, account, register or document shall forthwith grant a
receipt for the same and shall,-
(a) in
the case of book, account, register or document which was being used at the
time of seizing, within a period of twenty‑one days from the date of
seizure, and
(b) in
any other case, within a period of ninety days from the date of seizure, return
it to the dealer or the person from whose custody it was seized after
examination or after having such copies or extracts taken therefrom as may be
considered necessary; provided the dealer or the aforesaid person gives a
receipt in writing for the book, account, register or document returned to him
and the officer may, before returning the book, account, register or document,
affix his signatures and his official seal at one or more places thereon:
PROVIDED that where the dealer fails to comply with
the directions of the officer seizing the books or any other officer under the
Act, such officer may further retain such books for such period as he may think
fit after obtaining the permission of the Commissioner:
PROVIDED FURTHER that such officer shall inform the
dealer the reasons for which the books are required to be retained beyond the
period prescribed under this sub‑section.
(4) For
the purposes of sub‑section (2) or sub‑section (3), an officer
referred to in sub‑section (1) may enter and search any office, shop,
godown, vessel, vehicle, or any other place of business of the dealer or any
building, dwelling house, or place where such officer has reason to believe
that the dealer keeps or is, for the time being, keeping any books, accounts,
registers, documents or goods relating to his business:
PROVIDED that no entry or search in the
dwelling house shall be made-
(i) after
the sunset and before the sunrise;
(ii) by
an officer below the rank of an Excise and Taxation Officer; and
(iii) without
obtaining the sanction of the District Magistrate within whose jurisdiction
such house is situated.
(5) The
powers conferred by sub‑section (4) shall include the power to open and
search any box or receptacle in which any books, accounts, registers or other
relevant documents of the dealer may be contained and to take copies or
extracts of the said accounts, registers or documents and such inventory of the
goods and cash found as appears to him necessary for the purpose of this Act.
(6) Any
officer empowered to act under sub‑section (3) or sub‑section (4)
shall have power to seize any goods which are found in any office, shop,
godown, vessel, vehicle or any other place of business or any building or place
of the dealer but not accounted for by the dealer in his books, accounts,
registers, records and other documents.
(1) Notwithstanding
anything contained in any other provision of this Act, any Assistant Excise and
Taxation Commissioner or Excise and Taxation Officer appointed to assist the
Excise and Taxation Commissioner under sub‑section (1) of section 3 or an
Excise and Taxation Inspector, duly authorized by the Commissioner may, for the
purpose of survey regarding ascertainment of commencement of liability to pay
tax for registration under section 14 of this Act, and extent of business,
enter-
(a) any
place within the limits of the area assigned to him, or
(b) any
place occupied by any dealer in respect of which he exercises jurisdiction,
at which the dealer carrying on the business, keeps
any of his books of accounts or other documents or any part of his cash
relating to the sale or purchase of goods or stock of goods relating to his business
and require any dealer, employee or any other person who may at that time and
place be attending in any manner to, or helping in carrying on of such
business-
(i) to
afford him the necessary facility to inspect such books of accounts or other
documents as he may require and which may be available at such place,
(ii) to
afford him the necessary facility to check or verify the cash and stock of
goods which may be found therein, and
(iii) to
furnish such information including such statement as he may require as to any
matter which may be useful for, or relevant to, any proceedings under this Act.
(2) For
the purpose of sub‑section (1), no entry in the dwelling house shall be
made-
(i) after
sunset or before the sunrise;
(ii) by
any officer below the rank of an Excise and Taxation Officer; and
(iii) without
obtaining the sanction of the District Magistrate within whose jurisdiction
such house is situated.
34. Establishment
of check posts or barriers and inspection of goods in transit
(1) If,
with a view to preventing or checking evasion of tax under this Act, the State
Government considers it necessary so to do, it may, by notification direct the
establishment of a check post or the errection of a barrier or both at such
place of places as may be notified.
(2) The
owner or person in‑charge of a goods carriage or vessel shall carry with
him a goods carriage record, a trip sheet or a log book, as the case may be,
and a tax invoice or a bill of sale or a delivery note containing such
particulars as may be prescribed, in respect of such goods, meant for the
purpose of business, and produce the same before an officer‑in‑charge
of a check post or barrier or any other officer not below the rank of an Excise
and Taxation Inspector checking the vehicle or vessel at any place.
(3) At
every check post or barrier or at any other place when so required by any
officer referred to in sub‑section (2), the driver or any other person in‑charge
of the [goods carriage] or vessel, shall stop the vehicle or vessel, as the
case may be, and keep it stationary as long as may reasonably be necessary, and
allow the officer‑in‑charge of the check post or barrier or the
aforesaid officer to examine the contents in the vehicle or vessel and inspect
all records relating to the goods carried which are in the possession of such
driver or other person in‑charge, who shall also furnish such other
information as maybe required by the aforesaid officer, and if considered
necessary such officer may also search the [goods carriage] or vessel and the
driver or other person in‑charge of the vehicle or vessel or of the
goods.
(4) The
owner or person in‑charge of a goods carriage or vessel entering the
limits of State or leaving the State limits shall also give in triplicate a
declaration (generated electronically or otherwise) containing such particulars
of goods carried in such vehicle or vessel, as the case may be, before the
officer‑in‑charge of the check post or barrier and shall produce
the copy of the said declaration duly verified and returned to him by the said
officer or before any other officer referred to in sub‑section (2) at the
time of checking under this section:
PROVIDED that where a goods carriage or vessel bound for
any place outside the State passes through the State, the owner or person in‑charge
of such vehicle or vessel shall furnish in duplicate, to the officer‑in‑charge
of the check post or barrier of his entry into the State a declaration in the
prescribed form and obtain from him a copy duly verified. The owner or person
in‑charge of the goods carriage or vessel, as the case may be, shall
deliver within seventy two hours the said copy to the officer‑in‑charge
of the check post or barrier at the point of its exit from the State, failing
which he shall be liable to pay a penalty to be imposed by the officer‑in‑charge
of the check post or barrier of the entry not exceeding twenty‑five
percentum of the value of the goods but which shall not be less than fifteen percentum
of the value of the goods:
PROVIDED FURTHER that no penalty shall be imposed
unless the person concerned has been given a reasonable opportunity of being
heard.
(5) At
every station of transport of goods, bus stand or any other station or place of
loading or unloading of goods, other than a rail head or a Post Office, when so
required by the Commissioner, or any person appointed to assist him under sub‑section
(1) of section 3, the driver or the owner of goods carriage or the employee of
a transport company or goods booking agency shall produce for examination
transport receipt and all other documents and account books concerning the
goods carried, transported, loaded, unloaded, consigned or received for
transport (maintained by him in the prescribed manner). The Commissioner or the
person so appointed shall, for the purpose of examining that such transport
receipt or other documents or account books are in respect of the goods
carried, transported, loaded, unloaded, or consigned or received for transport,
have the powers to break open any package or packages of such goods.
(6) If
the officer‑in‑charge of the check post or barrier or other officer
as mentioned in sub‑section (2) has reasons to suspect that the goods
under transport are meant for business and ‑are not covered by proper and
genuine documents as mentioned ‑in sub‑section (2) or sub‑section
(4), as the case may be, or that the person transporting the goods is
attempting to evade payment of tax due under this Act, he may, for reasons to
be recorded in writing and after hearing the said person, but subject to
previous approval of the Excise and Taxation Officer, In charge of the barrier
order the unloading or detention of the goods, for such period as may
reasonably be necessary and shall allow the same to be transported only on the
owner of goods or his representative or the driver or other person in‑charge
of the goods carriage or vessel on behalf of the owner of the goods, furnishing
to his satisfaction a security or executing a bond with or without sureties for
securing the amount of tax, in the prescribed form and manner, for an amount
not exceeding twenty‑five percentum of the value of the goods but which
shall not be less than fifteen percentum of the value of the goods:
PROVIDED that where any goods are detained a report
shall be made immediately and in any case within twenty four hours of the
detention of the goods by the officer detaining the goods to the Assistant
Excise and Taxation Commissioner in charge of the District or the Excise and
Taxation Officer in charge of the District or barrier, as the case may be,
seeking the latter's permission for the detention of the goods for a period
exceeding twenty‑four hours, as and when so required and if no intimation
to the contrary is received from the latter the former may assume that his
proposal has been accepted.
(7) The
officer detaining the goods shall record the statement, if any, given by the
owner of the goods or his representative or the driver or other person in‑charge
of the goods carriage or vessel and shall require him to produce proper and
genuine documents as referred to in sub‑section (2) or sub‑section
(4), as the case may be, before him in his office on a specified date on which
date the officer shall submit the proceeding along with the connected records
to such officer as may be authorised in that behalf by the State Government for
conducting necessary enquiry in the matter. The said officer shall, before
conducting the enquiry, service a notice on the owner of the goods and give him
an opportunity of being heard and if, after the enquiry, such officer finds
that there has been an attempt to evade the tax due under this Act, he shall,
by order, impose on the owner of the goods a penalty not exceeding twenty‑five
percentum of the value of the goods but which shall not be less than fifteen
percentum of the value of the goods, and in case he finds otherwise, shall
order the release of the goods.
(8) If
the owner of the goods or his representative or the driver or other person in‑charge
of the goods carriage or vessel does not furnish security or does not execute
the bond as required by sub‑section (6) within ten days from the date of
detaining the goods or goods carriage or vessel, the officer referred to in
that sub‑section may order further detention of the goods and in the
event of the owner of the goods not paying he penalty imposed under sub‑section
(7) within twenty days from the date of the order imposing the penalty, the
goods detained shall be made liable to be sold by the officer, who imposed the
penalty, for the realisation of the penalty by public auction as may be
prescribed. If the goods detained are of a perishable nature or subject to
speedy or natural decay or when the expenses of keeping them in custody are
likely to exceed their value the officer‑in‑charge of the check
post or barrier or any other officer referred to in sub‑section (2), as
the case may be, shall immediately sell such goods or otherwise dispose them
of. The sale proceeds shall be deposited in the Government treasury and the
owner of the goods shall be entitled to only the balance amount of sale
proceeds after deducting the expenses and other incidental charges incurred in
detaining and disposing of the goods.
(9) The
officer detaining the goods shall issue to the owner of the goods or his
representative or the driver or the person in charge of the goods carriage or
vessel receipt specifying the description and quantity of the goods so detained
and obtain an acknowledgement from such person or if such person refuses to
give an acknowledgement, record the fact of refusal in the presence of the two
witnesses.
(10) If
the order of detention of goods under sub‑section (6) or of imposition of
penalty under sub ‑section (7) or sub‑section (8) is in the
meantime set aside or modified in appeal or other proceedings, the officer
detaining the goods and imposing the penalty, as the case may be, shall also
pass consequential orders for giving effect to the orders in such appeal or
other proceedings as the case may be.
(11) No
dealer or any person, including a carrier of goods or agent of a transport
company or booking agency acting on behalf of a dealer, shall take delivery of,
or transport, from any vessel, station, airport or any other place, whether of
similar nature or otherwise, any consignment of goods other than personal
luggage or goods for personal consumption, the sale or purchase of which is
taxable under this Act, except in accordance with such conditions as may be
prescribed with a view to ensuring that there is no evasion of the tax imposed
by or under this Act:
PROVIDED that no place which is a rail head or post‑office
shall be so notified by the State Government.
Explanation 1: In this section the expression 'goods
carriage' has the same meaning as
is assigned to it in clause (14) of section 2 of the Motor Vehicles Act, 1988.
Explanation II: For the purposes of sub‑section
(2), the goods meant for the purposes of personal consumption shall not be
construed as meant for the purposes of trade.
Explanation III: For purposes of sub‑section
(7), service of notice on the representative of the owner or the driver or
other person in‑charge of the goods carriage or vessel shall be deemed to
be a valid service on the owner of the goods.
35. Registration and submission of returns by
carrier of goods, agent of transport companies
(1) For
carrying out the purposes of section 34, every carrier of goods, agent of
transport company and booking agency having a place of business in the State of
Himachal Pradesh and transporting or clearing or forwarding goods on behalf of
a dealer, shall be required to obtain a certificate of registration, in the
prescribed manner, from the Assessing Authority of the area in which it has a place
of business, on payment of such fee as may be prescribed and on furnishing of a
security to the satisfaction of the said Authority in the manner as may be
prescribed.
(2) Every
agency, referred to in sub‑section (1), shall submit to the Assessing Authority
such returns of the goods transported, cleared or forwarded by it, by such
dates and in such manner as may be prescribed.
(3) The
Assessing Authority shall have the powers to call for and examine the books of
accounts, documents and other record in possession of such agency with a view
to verifying the correctness of returns submitted and the compliance to the
requirements of provisions of section 34.
36. Assessee
etc. permitted to attend through authorised agent
Any assessee, dealer or other person, who is entitled
or required to attend before any Authority in connection with any proceedings
under this Act, except when required to attend in person, may attend through a
person authorised by him in writing in this behalf, in the prescribed manner.
37. Power
to call for information from Banking Companies etc.
The Commissioner or any other person appointed to
assist him under sub‑section (1) of section 3 may, for carrying out the
purposes of this Act, require any person including a banking company, post
office or any officer thereof to furnish any information or statement useful
for, or relevant to, any proceedings under this Act.
Subject to such restrictions and conditions as maybe
prescribed, the Commissioner may, order in writing, delegate any of his powers
under this Act to an officer not below the rank of Additional Excise and
Taxation Commissioner.
Where the ownership of the business of a registered dealer
is entirely or in part transferred and the transferee carries on such business
either in its old name or in some other name, the transferee shall, for all the
purposes of this Act (except for liabilities under this Act already discharged
by such dealer), be deemed to be and to have always been registered as if the
certificate of registration of such dealer had initially been granted to the
transferee. and the transferee shall on application to the prescribed authority
be entitled to have the registration certificate amended accordingly.
40. Liability
on stock in certain cases
Should his certificate of registration be cancelled
under any provision of this Act, a dealer, save when he has transferred his business
to someone else, and notwithstanding clause (s) of section 2 but subject to the
provisions of section 9, shall be liable to pay tax on goods purchased by him
in the State of Himachal Pradesh after registration, and remaining unsold at
the time of cancellation of certificate at a rate leviable on the sale of such
goods.
41. Liability to pay tax of a partitioned
Hindu family, dissolved firm etc.
(1) Where
a dealer is an undivided Hindu family, firm or other association of persons,
and such family, firm or association is partitioned, dissolved or disrupted, as
the case may be,-
(a) the
tax payable under this Act by such family, firm or association of persons for
the period up to the date of such partition, dissolution or disruption may be
assessed as if no such partition, dissolution or disruption had taken place and
all the provisions of this Act shall apply accordingly; and
(b) every
person who was, at the time of such partition, dissolution or disruption, a
member or partner of an undivided Hindu family, firm or association of persons,
shall, notwithstanding such partition, dissolution or disruption, be liable
severally and jointly for the payment of the tax including interest and
penalty, if any, payable under this Act by such family, firm or association of
persons, whether assessment is made prior to or after such partition,
dissolution or disruption.
(2) Where
the registration certificate of a dealer is cancelled under this Act in any
case, other than that of a partition of Hindu Undivided Family or dissolution
or disruption of a firm or association of persons, the tax payable under this
Act by such dealer for the period up to the date of cancellation of the
registration certificate may be assessed on such dealer as if no such
cancellation had taken place and all the provisions of this Act shall apply
accordingly.
42. Liability
of legal heirs to pay tax
Where a dealer, liable to pay tax under this
Act, dies, then-
(a) if
the 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 the tax (including any penalty) due from the dealer
under this Act, whether such tax (including any penalty) has been assessed
before his death but has remained unpaid, or is assessed after his death; and
(b) if
the business carried on by the dealer is discontinued after his death, his
legal representative shall be liable to pay out of the estate of the deceased
to the extent the estate is capable of meeting the charge, the tax (including
any penalty) due from the dealer under this Act, whether such tax (including
any penalty) has been assessed before his death, or is assessed after his
death,
the provisions of this Act shall, so far as may be, apply
to such legal representative, or other person as if he were the dealer himself.
43. Bar
of certain proceedings
No assessment made and no order passed, under this
Act, or the rules made thereunder, by the Commissioner or any person appointed
under section 3 to assist him shall be called into question in any civil court
and, save as provided in sections, 45, 46 and 48, no appeal or application for revision shall lie against any such
assessment or order.
(1) The
State Government shall by notification establish an appellate tribunal
consisting of a Chairperson and as many members as the Government may, from
time to time, deem fit for the proper discharge of the functions conferred on
the Tribunal by or under this Act.
(2) The
Chairperson and the members shall possess such qualification as may be
prescribed, and their terms of office shall be such as may be prescribed.
(3) The
tenure of the Chairperson and members shall ordinarily be four years which may
be extended by the State Government, by such period as it may think fit, but
shall not be beyond the age of 62 years in any case.
(4) The
salary, allowances and conditions of service of the Chairperson and other
members of the tribunal, shall be such as may be prescribed.
(5) All
cases coming before the tribunal shall be decided by a bench according to the
opinion of the majority, and in any case where the Chairperson and the members
are divided in their opinion on any point or points, they shall state the point
on points or which they differ and refer the case for hearing by a bench
consisting of,-
(i) the
Chairperson and the member who first heard it; and
(ii) an
additional co‑opted member who is serving and qualified to be appointed as
member under sub‑section (2),
and such case shall be decided in accordance with the
opinion of the majority of members of the bench:
PROVIDED that the additional member shall cease to
hold the office on the disposal of the case.
(6) Subject
to such conditions and limitations as may be prescribed, the tribunal may award
costs and the amount of such costs shall be recoverable from the person ordered
to pay the same as arrears of Land Revenue.
(7) The
seal of the tribunal and the procedure to be followed by' it shall be such as
the State Government may prescribe.
(8) The
State Government may appoint such officers and officials, as may be required,
to assist the tribunal in the discharge of its functions under this Act:
PROVIDED that the cases of the State shall be
represented before the Tribunal by an officer not below the rank of Assistant
Excise and Taxation Commissioner (Legal).
(1) An
appeal from every original order passed under this Act or rules made thereunder
shall lie-
(a) if
the order is made by an Assessing Authority or by an officer‑in‑charge
of the check post or barrier or any other officer not below the rank of the
Excise and Taxation Officer, to the Deputy Excise and Taxation Commissioner;
(b) if
the order is made by the Deputy Excise and Taxation Commissioner, to the
Commissioner or the Additional Excise and Taxation Commissioner as notified by
the Government under section 38;
(c) if
the order is made by the Commissioner or any officer exercising the powers of
the Commissioner to the Tribunal.
(2) An
order passed in appeal by a Deputy Excise and Taxation Commissioner or by the
Commissioner or any officer, on whom the powers of the Commissioner are
conferred, shall be further appealable to the Tribunal.
(3) Every
order of the Tribunal, the Commissioner or any officer exercising the powers of
the Commissioner or the order of the Deputy Excise and Taxation Commissioner or
of the Assessing Authority or an officer‑in‑charge of check‑post
or barrier or any other officer not below the rank of an Excise and Taxation
Officer, if not challenged in appeal or revision, shall be final.
(4) No
appeal shall be entertained unless it is filed within sixty days from the date
of communication of the order appealed against, or such longer period as the
Appellate Authority may allow, for reasons to be recorded in writing.
(5) No
appeal under sub‑section (1) shall be entertained by an Appellate
Authority unless such appeal is accompanied by satisfactory proof of the
payment of the tax (including interest payable) or of the penalty, if any,
imposed or both as the case may be:
PROVIDED that if such Authority is satisfied that the
dealer is unable to pay the tax (including interest payable) assessed or the
penalty, if any, imposed or both, he may, for reasons to be recorded in
writing, entertain an appeal without the tax (including interest payable) or
penalty or both having been paid in full or after part payment of such tax
(including interest payable) or penalty or both.
(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.
(1) The
Commissioner may, of his own motion, call for the record of any proceedings
which are pending before, or have been disposed of by, any Authority
subordinate to him, for the purpose of satisfying himself as to the legality or
propriety of such proceedings or order made therein and, on finding the
proceedings or the orders prejudicial to the interest of revenue, may pass such
order in relation thereto as he may think fit:
PROVIDED that the powers under this sub‑section
shall be exercisable only within a period of five years from the date on which
such order was communicated.
(2) The
State Government may, by notification, confer on any officer powers of the
Commissioner under sub‑section (1) to be exercised subject to such
conditions and in respect of such areas as may be specified in the notification
and such officer shall be deemed to be the Commissioner for the purpose of sub‑section
(1).
(3) The
tribunal, on application made to it against an order of the Commissioner under
this section within sixty days from the date of the communication of the order,
may call for and examine the record of any case and pass such orders thereon as
it thinks just and proper.
(4) No
order shall be passed under this section, which adversely affects any person
unless such person has been given a reasonable opportunity of being heard.
(1) The
Tribunal or Commissioner or the officer on whom powers of the Commissioner for
the purposes of sub‑section (1) of section 46 have been conferred by the
State Government may at any time within one year from the date of any order
passed by him on an application made to him or of his own motion, rectify any
mistake 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 the Commissioner may entertain an
application under this subsection after the expiry of the said period of one
year, if he is satisfied that the applicant was prevented by sufficient cause
from making the application in time:
PROVIDED FURTHER that no such rectification shall be
made if it has the effect of enhancing the tax or reducing the amount of
refund, 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) Where
any such rectification has the effect of enhancing or reducing the amount of
tax or penalty, the Commissioner shall, in the prescribed manner, order the
recovery of the amount due from or as the case may be, order the refund of the
amount due to, such person.
(1) Any
person aggrieved by an order of the tribunal made by it under sub‑section
(2) of section 45 or under sub‑section (3) of section 46, may, within 90
days of the communication of such order, apply to the High Court of Himachal
Pradesh for revision of such order if it involves any question of law arising
out of erroneous decision of law' or failure to decide a question of law.
(2) The
application for revision under sub‑section (1) shall precisely state the
question of law involved in the order, and it shall be competent for the High
Court to formulate the question of law.
(3) Where
an application under this section is pending, the High Court may, or on
application, in this behalf, stay recovery of any disputed amount of tax,
penalty or interest payable or refund of any amount due under the order sought
to be revised:
PROVIDED that no order for stay of recovery of such
disputed amount shall remain in force for more than 30 days unless the
applicant furnishes adequate security to the satisfaction of the Assessing
Authority concerned.
(4) The
application for revision under sub‑section (1) or the application for
stay under sub‑section (3) shall be heard and, decided by a bench
consisting of not less than two judges.
(5) No
order shall be passed under this section which adversely affects any person
unless such person has been given a reasonable opportunity of being heard.
49. Power
of authorities to take evidence on oath etc.
The Tribunal or the Commissioner or any person appointed
to assist him under sub‑section (1) of section 3 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;
(b) compelling
the production of documents and impounding or detaining them;
(c) issuing
commissions for the examination of witnesses;
(d) requiring
or accepting proof of facts by affidavits;
(e)
such other powers as
may be prescribed;
and any proceeding under this Act before the
Commissioner or any person appointed to assist him under sub‑section (1)
of section 3 shall be deemed to be a "judicial proceeding" within the
meaning of sections 193 and 228 and for the purposes of section 199 of the
Indian Penal Code (45 of 1860).
(1) Any
person who-
(a) wilfully
acts in contravention of the provisions of this Actor the rules made thereunder;
or
(b) furnishes
any certificate, declaration, bill, cash memorandum, voucher, delivery note,
goods receipt or other document, which he knows or has reason to believe it to
be false; or
(c) being
a registered dealer, falsely represents when purchasing any class of goods for
use by him in the manufacture of any goods for sale, that goods of such class
are covered by his certificate of registration; or
(d) not
being a registered dealer, falsely represents when purchasing goods in Himachal
Pradesh that he is a registered dealer; or
(e) after
purchasing any goods for any of the purposes specified in the Act, fails,
without reasonable excuse, to make use of the goods for any such purpose; or
(f) has
in his possession any form issued under the Act on payment by the Government,
which has not been obtained by him or by his principal or by his agent in
accordance with the provisions of this Act or any rules made thereunder; or
(g) prevents
inspection or examination of books, documents and accounts or knowingly
maintains false books, documents and accounts or wilfully fails to produce the
books, documents and accounts mentioned in section 32; or
(h) fails
to carry with him any of the records or documents specified in section 34; or
(i) makes
any statement or declaration in any of the documents specified in section 34 or
section 35, as the case may be, which statement or declaration he knows or, has
reason to believe to be false; or
(j) in
any way is knowingly concerned in any fraudulent evasion or atrempt at evasion
or abetment of evasion of any tax payable in respect of the sale or purchase of
any goods under this Act; or
(k) if he
is a driver or any other person in‑charge of goods vehicle or vessel or
an owner of the goods, refuses on demand by the officer‑in‑charge
of the check post or barrier or any other officer, not below the rank of an
Excise and Taxation Inspector, to give his name and address or the name and
address of the owner of the goods vehicle or of the consignor or consignee of
the goods or gives any name and address of any of these persons, which he knows
or has reason to believe to be false; or
(l) aids
or abets any person in the commission of any offence specified in this sub‑section,
he shall, without prejudice to the recovery of any tax or interest or
penalty which may be due from him, be punishable with simple imprisonment which
may extend to six months , or with fine, or with both; and when the offence, is
a continuing offence, with a daily fine which may extend to fifty rupees for
every day during which the offence continues.
(2) Whosoever
contravenes or fails to comply with, any of the provisions of this Act or the
rules made thereunder, or any order or direction made or given thereunder,
shall, if no other penalty is provided either under sub‑section (1) of
this section or under any other provisions of this Act for such contravention
or failure, be liable to imposition of a penalty, not exceeding two thousand
rupees, and where such contravention or failure is continuing one, to a daily
penalty not exceeding fifty rupees during the period of the continuance of the
contravention or failure.
(3) Any
officer‑in‑charge of the check post or barrier or any other
officer, not below the rank of an Excise and Taxation Officer, appointed under
sub‑section (1) of section 3 or such other officer as the State
Government may, by notification, appoint, may, after affording to the person
concerned a reasonable opportunity of being heard, impose the penalty mentioned
in sub‑section (2):
PROVIDED that the officer‑in‑charge of the
check post or a barrier shall exercise such powers only at such check posts or
barriers.
The Commissioner or any other officer not below the
rank of Assistant Excise and Taxation Commissioner or Excise and Taxation
Officer‑Incharge of the district may, either before or after the
institution of proceedings for any offence punishable under section 50 or under
any rule made under this Act, accept from any person accused of such offence by
way of composition of offence a sum of money equal to double the amount of tax
which would have been payable on the turnover of sales or purchases to which
the said offence relates, whichever is greater.
(2) On
payment of such sum as may be determined 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.
(1) No
Court shall take cognisance of any offence punishable under this Act or the
rules made thereunder except with previous sanction of the State Government or
of such officer as may be authorised by a notification published in Official
Gazette and no Court inferior to that of a Magistrate of the first class shall
try any such offence.
(2) Subject
to the condition, if any, as may be prescribed, the Commissioner, may
authorise, 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.
(3) All
offences punishable under sub‑section (1) of section 49 shall be non‑cognisable
and bailable.
53. Directors
of defaulting companies to be liable to pay tax etc.
Notwithstanding anything contained in any other law,
where any tax assessed or penalty imposed under this Act on a company cannot be
recovered by reason of the company having gone into liquidation or for any
other reason, then every person, who was Director of such company at any time
during the relevant period for which the tax is due or in respect of which the
default for which the penalty is imposed was committed, shall be jointly and
severally liable for the payment of such tax and penalty unless he proves that
the non‑payment or non‑recovery cannot be attributed to any
neglect, misfeasance or breach of duty on his part in relation to the affairs
of the company.
54. Disposal
of certain property
Any property seized or detained under this Act, which
is not claimed by any person, shall be disposed of in accordance ' with the
provisions of sections 25,26 and 27of the Police Act, 1861, as if the officer
or Authority seizing or detaining such property were a police officer:
PROVIDED that if, during the period allowed in
accordance with such provisions, any person claims the property, it shall not
be released to him unless the tax or penalty or both due in respect of the same
under this Act is paid by such person.
No suit, prosecution or other legal proceedings shall
lie against any officer or servant of the State Government for anything which
is in good faith done or intended to be done under this Act or the rules made
thereunder.
56. Returns
etc. to be confidential
(1) All
particulars contained in any statement made, return furnished or accounts or
documents produced in accordance with this Act, or in 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 notwithstanding anything contained in the Indian
Evidence Act, 1872 (1 of 1872), no court shall, save as aforesaid, be entitled
to require any officer, of the State Government to produce before it any such
statement, return, accounts, document or record or any part thereof, or to give
evidence before it in respect thereof.
(2)
If, save as provided in sub‑section (3), any officer of the State
Government discloses any of the particulars referred to in sub‑section
(1), he shall be punishable with imprisonment which may extend to six months,
and shall also be liable to fine.
(3) Nothing
contained in this section shall apply to the disclosure-
(a) of
any such particulars in respect of any such statement, return, accounts,
document, evidence, affidavit or deposition for the purpose of any prosecution
under this Act or the Indian Penal Code, 1860 (45 of 1860); or
(b) of
any such particulars to any person entrusted with the administration of this
Act for the purposes of carrying out the objects 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
summons or the recovery of any demand; or
(d) of
any such particulars to a civil court in any suit to which the State Government
in the Excise and Taxation Department or any officer of the said Department is
a party and which relates to any matter arising out of any proceeding under
this Act; or
(e) of
any such particulars to any officer appointed to audit receipts or refunds of
the tax imposed by this Act; or
(f) of
any such particulars where such particulars are relevant to any enquiry into
the conduct of an official of the Excise and Taxation Department of the State
Government to any person or persons appointed by the Commissioner under the
Public Servants (Inquiries) Act, 1850, or to any officer otherwise appointed to
hold such inquiry or to a Public Service Commission established under the
Constitution when exercising its functions in relation to any matter arising
out of such inquiry; or
(g) of
the annual gross turnover, shown in any return furnished or determined in any
assessment order passed under this Act, to any officer of the Central or any
State Government, as may be necessary for the purpose of enabling that
Government to levy or realise any tax or duty imposed by it; or
(h) of
any such particulars which are relevant to any inquiry into the charge of
misconduct, against an income‑tax practitioner or other person who
represents any assessee before any Authority in any proceeding under this Act;
or
(i) of
any such particulars to the Director of Economics and Statistics Department of
the State Government as may be necessary for enabling him to work out the
incidence of tax on any commodity or for carrying out any statistical survey of
trade, commodity or dealer; and
(j) of
any such particulars for the purpose of 'preparing data by computerization:
PROVIDED that the information mentioned in clauses
(a), (f) and (g) may be permitted to be disclosed by the Assistant Excise and
Taxation Commissioner or the Excise and Taxation Officer, In‑charge of
the District only when he is satisfied, after scrutiny of the request made in this
behalf and after such enquiries as he considers necessary, that the disclosure
is admissible under this sub‑section.
57. Persons appointed to be public servants
All persons appointed under sections 3 and 44 shall be
deemed to be public servants within the meaning of section 21 of the Indian
Penal Code.
58. Provision
in case of inter‑State trade etc.
Notwithstanding anything contained in this
Act,-
(a) a
tax on the sale or purchase of goods shall not be imposed under this Act
(i) where
such sale or purchase takes place outside the State of Himachal Pradesh;or
(ii) where
such sale or purchase takes place in course of import of the goods into, or
export of the goods out of, the territory of India; and
(b) a
tax on the sale or purchase of any goods shall not be imposed where such sale
or purchase takes place in the course of inter‑State trade or commerce
except in so far as Parliament may by law otherwise provide.
59. Power
to seek assistance from police or other officers
An officer exercising the powers under this Act may
take assistance of any police officer or other officer of the Government, as
and when required and upon such request for assistance being made, the police officer
or the other officer shall render necessary assistance in accordance with law.
(1) Without
prejudice to the provisions of sub‑section (4) of section 21, at any time
in the financial year every Assessing Authority may for ascertaining compliance
with the provisions of sub‑sections (3) and (4) of section 16, undertake
scrutiny of the returns filed during any tax period to check correctness of
application and calculation of rates of tax, penalty and interest payable,
claim of input tax credit and payment of full amount of tax due according to
such return.
(2) If
any mistake is detected as a result of such scrutiny made as per the provisions
of sub‑section (1), the Assessing Authority shall serve a notice in the
prescribed form on the dealer to make payment of the extra amount of tax,
penalty and interest.
(3) The
Assessing Authority may also identify the dealers who have not filed the return
for any tax period or not paid the tax, he shall serve a notice in the
prescribed form directing to such dealer to forthwith file such return and pay
the amount of tax, penalty and interest due besides initiating action under
section 16.
61. Audit
and inspection of tax records
(1) The
Commissioner or any taxing Authority as directed by him with a view to
ascertain the correctness of returns and admissibility of various claims,
including input tax credit, may, on the basis of any prescribed criteria or on
random basis, audit or cause to be audited any of the return filed, documents
or statutory forms submitted by a dealer subject to such conditions and in such
manner as may be prescribed.
(2) The
inspection as required under sub‑section (1), may either be taken up in
the office of such Authority or business premises, or warehouse, or office of
the dealer.
(3) The
prescribed authority shall after considering all the evidence produced 'in the
course of proceedings either,-
(a) confirm
the self‑assessment under section 21; or
(b) not
confirm the self‑assessment under section 21 and calculate the amount of
tax due from the dealer; or
(c) calculate
the amount of tax due from a dealer, if no such assessment has been made 6nder
section 21:
PROVIDED that if the prescribed authority proposes to rely
upon any evidence collected by him, the dealer shall be afforded an opportunity
of correcting his self‑assessment within a period not exceeding thirty
days and in case the dealer fails to rectify his self‑assessment, re‑assess
the tax due, under the Act.
(1) A
registered dealer, who would have continued to be so liable to pay tax under
the Himachal Pradesh General Sales Tax Act, 1968, had this Act not come into
force, shall be deemed to be registered under this Act.
(2) Where,
on the date of commencement of this Act, a registered dealer holds the stock of
any taxable goods, purchased by him on or after 1st April, 2004, he shall
furnish the particulars thereof, in such form within such period, in such
manner and to such Authority, as may be prescribed.
(3) Where
the taxable goods, referred to in sub‑section (2), held in stock by a
registered dealer (other than the dealers falling in section 7 or sub‑section
(2) of section 16) on the date of commencement of this Act are those on which
tax under the Himachal Pradesh General Sales Tax Act, 1968 (hereinafter in this
section called the ‘said Act') has suffered at the first stage of sale, and are
resold by him after the commencement of this Act, an input tax credit shall be
allowed to him in respect of the amount of tax proved to have been paid under
the said Act:
PROVIDED that the input tax credit shall be allowed to
a dealer, who is registered after 1st day of April, 2005 in respect of
purchases of taxable goods where such purchase is for use in the business and
that it has occurred not more than three months prior to the date of
registration.
(4) The
Financial Commissioner functioning under the said Act before the commencement
of this Act shall, on and from commencement of this Act, be deemed to have been
continued to function as such under this Act, until the State Government,
establishes the Tribunal under section 44.
(5) Any
dealer (manufacturer and seller of goods) who, immediately before the
commencement of this Act, was enjoying the benefit of any incentive of sales
tax leviable on the sale of manufactured goods under the said Act and who would
have continued to be eligible for such incentive on the date of commencement of
this Act, had this Act not come into force, may be allowed by the State
Government, by notification,-
(a) to
continue to avail of the benefit of exemption from payment of tax on the sale
of manufactured goods made by such dealers himself for the unexpired period,
subject to the condition that no input tax credit shall be allowed to the
subsequent dealer purchasing goods manufactured by such industrial unit; or
(b) to
opt, in the prescribed manner, to avail of the facility of making deferred
payment of tax for the unexpired period of incentive instead of availing the
exemption specified in sub‑clause (a); or
(c) to
continue to avail of the facility of making deferred payment of tax on the sale
of manufactured goods made by such dealer himself for the unexpired period and
such industrial unit shall be eligible to issue tax invoice and to claim input
tax credit subject to the provisions of section 11 of the Act.
(6) Notwithstanding
anything to the contrary the State Government may accept from any registered
dealer, who is an importer, or manufacturer and is not entitled to enjoy the
benefit of exemption from payment of tax, or deferment or payment of tax, who,
may at his option pay, in lieu of the tax payable by him on the sale of such
goods, the tax at such rate on the maximum retail price of such goods, as the State
Government may by notification, specify, and different rates may be fixed for
different items of such goods.
The State Government may by notification in the Official
Gazette, make rules consistent with this Act, for securing the levy and
collection of tax and generally for carrying out the purposes of this Act.
(1) The
Himachal Pradesh General Sales Tax Act, 1968 (24 of 1968), (hereinafter in this
section called the 'aforesaid Act') is hereby repealed from the date of coming
into force of this Act:
PROVIDED that such repeal of the aforesaid Act
shall not affect-
(a) the
previous operation of the aforesaid Act or anything duly done or suffered
thereunder; or
(b) any
right, privilege, obligation or liability acquired, accrued or incurred under
the aforesaid Act; or
(c) any
penalty, forfeiture or punishment incurred in respect of any offence committed
against the aforesaid Act; or
(d) any
investigation, legal proceedings or remedy in respect of any such right,
privilege, obligation, liability, penalty, punishment as aforesaid; and
any such investigation, legal proceedings or remedy
may be instituted, continued or enforced and any such penalty, forfeiture or
punishment may be imposed as if the aforesaid Act had not been repealed.
(2)
(a) Unless it is otherwise
expressly provided, anything done or any action taken (including any
appointment, notification, notice, order or rule or use of any form or
declaration) in the exercise of any power conferred by or under the aforesaid
Act shall insofar as it is not inconsistent with the provisions of this Act,
continue to be in force and be deemed to have been done or taken in the
exercise of the powers conferred by or under the provisions of this Act as if
this Act were in force on the date on which such thing was done or such action
was taken unless and until it is superseded by or under this Act and all
arrears of tax and other amount due under the aforesaid Act, at the
commencement of this Act may be recovered as if they had accrued under this
Act;
(b) any
account, register or document seized under any provision of the aforesaid Act
and not released shall continue to be retained, till the same is released, in
accordance with the provisions of the aforesaid Act; and
(c) any
goods seized or detained under any provision of the aforesaid Act or the rules
made thereunder and not released shall continue to remain seized or detained, till
such goods are released, in accordance with the provisions of aforesaid Act.
(3) Any
assessment, appeal, revision or other proceeding arising under the aforesaid
Act and the rules made thereunder and or pending before an officer or Authority
duly empowered to make assessment or hear and decide such appeal, revision or
other proceeding immediately preceding the commencement of this Act shall, on
the date of such commencement stand transferred to the officer or Authority
competent to make assessment or to hear and decide appeal or revision or other
proceeding under this Act and thereupon such assessment shall be made or such
appeal or revision or other proceeding shall be heard and decided within the
period, if any, specified therefore, by such officer or Authority in accordance
with the provisions of the aforesaid Act or the rules made thereunder as if
they were the officers or authorities duly empowered for the purpose under the
aforesaid Act.
(4) Any
application by a dealer or the Commissioner to the Financial Commissioner for
making a reference to the High Court Court under section 33 of the aforesaid
Act; or any reference made to the High under section 33 of aforesaid Act,
pending on the date of commencement of this Act shall be disposed of by the Financial
Commissioner or the High Court, as the case may be, in accordance with the
provisions of section 33 of the aforesaid Act as if this Act had not been
promulgated and the aforesaid Act had not been repealed.
(5) Notwithstanding
anything contained in sub‑section (1), any appeal, revision or other proceeding arising under the aforesaid
Act but preferred or initiated after the commencement of this Act, shall
be heard and decided by the Authority competent to entertain any appeal,
revision or any other proceeding in accordance with provisions of this Act.
[Refer clause (a) of sub‑section (1) of section
6]
PART I: GOODS TAXABLE @ 1 PERCENTUM
|
Sr. No. |
Goods |
|
|
1 |
2 |
|
|
1. |
Gold, silver, other precious metals, precious
stones and ornaments thereof. |
|
PART
II: GOODS TAXABLE @ 4 PERCENTUM
|
||
|
1 . |
Agricultural implements not operated manually
or not driven by animal. |
|
|
2. |
All equipments for communication such as, Private
Branch Exchange (P.B.X.) and Electronic Private Automatic Branch Exchange
(E.P.A.M.) etc. |
|
|
3. |
All intangible goods like copyright, patent
and representative licence etc. |
|
|
4. |
All kinds of bricks including fly ash bricks,
refractory bricks and asphaltic roofing earthen tiles. |
|
|
5. |
All types of yam other than cotton and silk
yam in hank and sewing thread. |
|
|
6. |
Aluminiurn utensils and enamelled utensils. |
|
|
7. |
Arecanut, betel nut and betel nut powder. |
|
|
8. |
Bamboo, pulp of bamboo, bamboo paper, wood
and its articles (other than those covered by item No. 5). |
|
|
9. |
Bearings. |
|
|
10. |
Belting. |
|
|
11, |
Betel leaves. |
|
|
12. |
Bidi leaves. |
|
|
13. |
Bicycles, tricycles, cycle rickshaws and
parts. |
|
|
14. |
Bitumen. |
|
|
15. |
Bone meal. |
|
|
16. |
Branded Bread. |
|
|
17. |
Bulk drugs and other drugs, medicines and
medical plant and equipment. |
|
|
18. |
Capital Goods. |
|
|
19. |
Castings. |
|
|
20. |
Centrifugal, mono block and submersible pumps
and parts thereof. |
|
|
21. |
Coffee beans and seeds, cocoa pod, green tea
leaves and chicory. |
|
|
22. |
Chemical fertilizers and chemical fertilizer
mixtures; insecticides, pesticides, rodenticides, fungicides, weedicides, herbicides,
plant regulators and plant growth nutrients. |
|
|
23. |
Coir and coir products excluding coir
mattresses. |
|
|
24. |
Cotton and cotton waste. |
|
|
25. |
Crucibles. |
|
|
26. |
Declared goods as specified in section 14 of the
Central Sales Tax Act, 1956 (Central Act 74 of 1956). |
|
|
27. |
Edible oils, oil cake and de-oiled cake. |
|
|
28. |
Electrodes including welding electrodes and
welding rods. |
|
|
29. |
Exercise books (except those specified in item
No. 25 of Schedule 'B'), graph book and laboratory note book. |
|
|
30. |
Ferrous and non-ferrous metals and alloys and
extrusions thereof. |
|
|
31. |
Fibres of all types and fibre waste. |
|
|
32. |
Flour (atta), maida, suji, besan etc. |
|
|
33. |
Fried grams. |
|
|
34. |
Gur, jaggery and edible variety of rub-gur. |
|
|
35. |
Hand pumps and spare parts. |
|
|
36. |
Herbs, bark, dry plants or dry roots,
commonly known as jari booti and dry flowers. |
|
|
37. |
Hose pipes. |
|
|
38. |
Hosiery goods. |
|
|
39. |
Husk and bran of cereals. |
|
|
40. |
Ice. |
|
|
41. |
Imitation jewellery. |
|
|
42. |
Incense sticks commonly known as aggarbati,
dhupkathi and dhupbati. |
|
|
43. |
Industrial cables (high voltage cable, XL PE
cables, jelly-filled cables, optical fibre cables) |
|
|
44. |
IT products including computers, telephone
(including mobile handsets and parts thereof, teleprinter and wireless
equipments and parts thereof) and other products as may be notified. |
|
|
45. |
Industrial input and packing materials as may
be notified. |
|
|
46. |
Kerosene oil sold through Public Distribution
System. |
|
|
47. |
Leaf plates and cups (other than those
specified in item No. 29 of Schedule 'B'). |
|
|
48. |
Murmuralu, pelalu, atukulu, puffed rise,
muri. |
|
|
49, |
Newars. |
|
|
50. |
Napa slabs (rough flooring stones). |
|
|
51. |
Ores and minerals. |
|
|
52. |
Paddy, rice, wheat and pulses. |
|
|
53. |
Paper and news print. |
|
|
54. |
Pipes of all varieties including GI pipes,
C.I. pipes, Ductile pipes and PVC
pipes. |
|
|
55. |
Plastic footwear. |
|
|
56. |
Printed material including diary and
calendar. |
|
|
57. |
Printing ink excluding toner and cartridges. |
|
|
58. |
Processed and branded salt. |
|
|
59. |
Rail coaches, engines and wagons. |
|
|
60. |
Readymade garments. |
|
|
61. |
Renewable energy devices and parts thereof. |
|
|
62. |
Safety matches. |
|
|
63. |
Sewing machines. |
|
|
64. |
Ship and other water vessels. |
|
|
65. |
Silk fabrics (subject to abolition of rental
agreement). |
|
|
66. |
Skimmed milk powder. |
|
|
67. |
Solvent oils other than organic solvent oil. |
|
|
68. |
Spices of all varieties and forms including
cumin seed, aniseed, turmeric and dry chillies. |
|
|
69. |
Sports goods excluding apparels and footwear. |
|
|
70. |
Starch. |
|
|
71. |
Sugar and khandsari. |
|
|
72. |
Tamarind. |
|
|
73. |
Textile fabrics. |
|
|
74. |
Tobacco. |
|
|
75. |
Tractors, threshers, harvesters and
attachments and parts thereof. |
|
|
76. |
Transmission towers. |
|
|
77. |
Umbrella except garden umbrella. |
|
|
78. |
Vanaspati (hydrogenated vegetable oil). |
|
|
79. |
Vegetable oil including gingili oil and bran
oil. |
|
|
80. |
Writing instruments (other than those
specified in item No. 25 of Schedule 'B') |
|
Note: The rate of tax in respect of Sugar, Textile fabrics and Tobacco,
specified at Sr. Nos. 71, 73 and 74 of this Schedule, shall be applicable from
the date as the State Government may notify.
PART III
GOODS TAXABLE @ 12.5
PERCENTUM
1. All
other goods than those specified in Part I and Part II of Schedule 'A' or in
Schedule 'B' or in Schedule 'C' or in Schedule 'D'.
GOODS TAXABLE @ 20 PERCENTUM
|
Sr. No. |
Goods |
|
1 |
2 |
|
1. |
Arms and ammunition |
|
2. |
Lottery tickets |
GOODS TAXABLE @ 30 PERCENTUM
|
Sr. No. |
Goods |
|
1 |
2 |
|
1. |
Lime-stone (non-L.D. Grade) |
|
2. |
Timber (excluding converted timber) |
GOODS TAXABLE @ 100 PERCENTUM
|
Sr. No. |
Goods |
|
1 |
2 |
|
1. |
Lime-stone (L.D. grade) |
(Refer section 9)
|
Sr. No. |
Goods |
Conditions of exemption |
|
1 |
2 |
3 |
|
1. |
Agriculture or horticulture produce,
including herbs or saplings of trees sold by person or a member of his
family, grown by himself or grown on any land in which he has an interest whether
as owner or usufructuary mortgagee, tenant or otherwise. |
___ |
|
2. |
Agricultural implements manually operated or
animal driven. |
___ |
|
3. |
Aids and implements used by handicapped
persons. |
___ |
|
4. |
Animal feed and feed supplements, namely,
processed commodity sold as poultry feed, cattle feed, pig feed, fish feed,
fish meal, prawn feed, shrimp feed and feed supplements and mineral mixture
concentrates, intended for use as feed supplements including grass, hay and straw. |
___ |
|
5. |
Articles made of bamboo-wood used for
agricultural purposes. |
___ |
|
6. |
Baan. |
___ |
|
7. |
Bpoks, periodicals and journals. |
___ |
|
8. |
Charkha, Ambar Charkha; handlooms, Himachali handloom
articles, Himachali handloorn shawls, caps and handspun yarn, and Gandhi
Topi. |
___ |
|
9. |
Charcoal. |
___ |
|
10. |
Coarse grains other than paddy, rice and
wheat. |
___ |
|
11. |
Condoms and contraceptives. |
___ |
|
12, |
Cotton yarn in hank and silk yam in hank. |
___ |
|
13. |
Curd, lassi, butter milk and separated milk. |
___ |
|
14. |
Earthen pots (unglazed). |
___ |
|
15. |
Electric Energy. |
___ |
|
16. |
Fire wood. |
When sold for domestic use |
|
17. |
Fishnet, fish fabrics and fish seeds. |
___ |
|
18. |
Food grains supplied free of cost by the
Government of India. |
___ |
|
19. |
Fresh fruits. |
___ |
|
20. |
Fresh milk and pasteurised milk. |
___ |
|
21. |
Fresh plants, sapling and fresh flowers. |
___ |
|
22. |
Fresh vegetables. |
___ |
|
23. |
Garlic, ginger, green chillies, onions,
potatoes, sweet potatoes, tapioca and their seeds. |
___ |
|
24. |
Glass bangles (including plastic shell and
lac bangles). |
___ |
|
25. |
Graphite pencils, writing chalk, crayons,
sketch pens, drawing colour eraser, sharpener, footrules, geometry boxes, ink
tablets, exercise and drawing books of the type used in schools &
takhties used by students. |
___ |
|
26. |
Human blood and blood plasma. |
___ |
|
27. |
Indigenous handmade musical instruments. |
___ |
|
28. |
Kumkum, bindi, alta and sindur. |
___ |
|
29. |
Leaf plates and leaf-cups (when not
compressed). |
___ |
|
30. |
Meat, fish, prawn and other aquatic products
when not cured or frozen; eggs and live stock and animal hair. |
Except when sold in sealed containers |
|
31. |
National flag. |
___ |
|
32. |
Non-judicial stamp paper sold by Government
Treasuries; postal items like envelope, postcard etc. sold by Government;
rupee note when sold to the Reserve Bank of India and cheques, loose or in
book form. |
___ |
|
33. |
Organic manure. |
___ |
|
34. |
Raw wool. |
___ |
|
35. |
Seeds. |
___ |
|
36. |
Semen including frozen semen. |
___ |
|
37. |
Silk worm laying cocoon and raw silk. |
___ |
|
38. |
Tender green coconut. |
___ |
|
39. |
Toddy, Neera and Arak. |
___ |
|
40. |
Unbranded bread. |
___ |
|
41. |
Unprocessed and unbranded salt. |
___ |
|
42. |
Water other than- (i) aerated, mineral, distilled, medicinal,
ionic, battery, demineralised water, and (ii) water sold in sealed container. |
___ |
|
43. |
Writing slate and slate pencils. |
___ |
|
44. |
Kerosene oil sold through Public Distribution
System. |
___ |
[Refer clause (b) of sub‑section (1) of section
6]
|
Sr. No. |
Goods |
|
1 |
2 |
|
1. |
Resin (crude pine gum) |
|
2. |
Khair, Eucalyptus and Popular trees when they
have fallen or have been felled or agreed to be felled including their stumps,
roots, fuel wood and other wood in all forms when purchased from the growers
within the State. |
[Refer clause (c) of sub‑section (1) of section
6]
|
Sr. No. |
Goods |
|
1 |
2 |
|
1. |
Motor-spirit (Petrol including Aviation Turbine
Fuel and Diesel). |
|
2. |
Liquor. |