[No.22 of
2002, dt. 28-11-2002]
An Act to
levy tax on sale and purchase of goods in the State of
Be it
enacted by the Madhya Pradesh Legislature in the Fifty‑third Year of the
1. Short title, extent and commencement
(1) This Act may be called the Madhya Pradesh
VAT Act, 2002.
(2) It extends to the whole of Madhya
Pradesh.
(3) It shall come into force on such date as
the State Government may, by notification, appoint.
In
this Act, unless there is anything repugnant in the subject or context,‑
(a) "Appellate Board" means the
Appellate Board constituted under Section 4;
(b) "Appellate Deputy
Commissioner" means an Appellate Deputy Commissioner of Commercial Tax
appointed under Section 3 and includes an Additional Appellate Deputy
Commissioner of Commercial Tax;
(c) "Assistant Commissioner" means
an Assistant Commissioner of Commercial Tax appointed under Section 3 and
includes an Additional Assistant Commissioner of Commercial Tax;.
(d) "Business" includes,-
(i) any trade, commerce, manufacture or any
adventure or concern in the nature of trade, commerce or manufacture, whether
or not such trade, commerce, manufacture, adventure or concern is carried on
with a motive to make gain or profit and whether or not any gain or profit
accrues from such trade, commerce, manufacture, adventure or concern and
irrespective of the volume, frequency, continuity or regularity of such trade,
commerce, manufacture, adventure or concern, and
(ii) any transaction of sale or purchase of
goods in connection with or incidental or ancillary to the trade, commerce,
manufacture, adventure or concern referred to in clause (i), that is to say,-
(a) goods whether or not they are in their
original form or in the form of second hand goods, unserviceable goods,
obsolete or discarded goods, mere scrap or waste material; and
(b) goods which are obtained as waste
products or by‑products in the
(e) "Capital goods" means plant,
machinery and equipment directly used in the process of manufacture excluding
such civil structures as may be prescribed;
(f) "Commercial Tax Office" means
an office of any Officer appointed under Section 3 of this Act;
(g) "Commercial Tax Officer" means
a Commercial Tax Officer appointed under Section 3 and includes an Additional
Commercial Tax Officer;
(h) "Commissioner" means the
Commissioner of Commercial Tax appointed under Section 3;
(i) "Dealer" means any person who
carries on the business of buying, selling, supplying or distributing goods,
directly or otherwise, whether for cash, or for deferred payment or for
commission, remuneration or other valuable consideration and includes:-
(i) a local authority, a company, an
undivided Hindu family or any society (including a co‑operative society),
club, firm or association which carries on such business;
(ii) a society (including a co‑operative
society), club, firm or association which buys goods from, or sells, supplies
or distributes goods to its members;
(iii) a commission agent, broker, a delcredere
agent, an auctioneer or any other mercantile agent, by whatever name called,
who carries on the business of buying, selling, supplying or distributing goods
on behalf of the principal;
(iv) any person who transfers the right to use
any goods including leasing thereof for any purpose, (whether or not for a
specified period) in the course of business to any other person;
Explanation
I: Every person who acts as an agent of a non‑resident dealer, that is as
an agent on behalf of a dealer residing outside the 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 (111 of 1930); or
(ii) an agent for handling goods or documents
of title relating to goods; or
(iii) an agent for the collection or the
payment of the sale price,of goods or as a guarantor for such collection or
payment, and every local branch of a firm or company situated outside the
State,
shall be
deemed to be a dealer for the purpose of this Act.
Explanation
II: The Central or a State Government or any of their departments or offices
which, whether or not in the course of business, buy, sell, supply or
distribute goods, directly or otherwise, for cash or for deferred payment or
for commission, remuneration or for other valuable consideration, shall be
deemed to be a dealer for the purpose of this Act,
Explanation
III: Any non‑trading, commercial or financial establishment including a
bank, an insurance company, a transport Company and the like which whether or
not in the course of business buys, sells, supplies or distributes goods,
directly or otherwise, for cash or for deferred payment, commission,
remuneration or for other valuable consideration, shall be deemed to be a
dealer for the purpose of this Act;
(j) The expression “Declared goods” shall
have the meaning assigned to it in the Central Sales Tax Act, 1956 (No.74 of
1956);
(k) "Deputy Commissioner" means a
Deputy Commissioner of Commercial Tax appointed under Section 3 and includes an
Additional Deputy Commissioner of Commercial Tax;
(1) "Document" means title deeds,
writings or inscriptions and includes "electronic record" and
"electronic form" as defined in the Information Technology Act, 2000
(21 of 2000) and the like that furnishes evidence;
(m) "Goods" means all kinds of
movable property including computer software but excluding actionable claims,
newspapers, stocks, shares, securities or Government stamps and includes all
materials, articles and commodities, whether or not to be used in the
construction, fitting out, improvement or repair of movable or immovable
property, and also includes all growing crops, grass, trees, plants and things
attached to, or forming part of the land which are agreed to be severed before
the sale or under the contract of sale;
(n) "Import" means the bringing or
causing to be brought of goods into the State of Madhya Pradesh from any place
outside the State;
(o) "Input Tax" means an amount
paid or payable by way of tax under clause (i) of Section 9 by a registered
dealer in respect of the purchase of any goods specified in Schedule 11, to a
selling registered dealer and who is liable to pay tax under the said clause on
the sale of such goods;
(p) "Manufacture" includes any
activity that brings out a change in an article or articles as a result of some
process, treatment labour and results in transformations into a new and
different article so understood in commercial parlance having a distinct name,
character use, but does not include such activity of manufacture as may be
notified;
(q) "Place of business" means any
place where a dealer purchases or sells any goods or stores goods or keeps
documents or accounts of his purchases or sales or both and also includes :-
(i) the place of business of agent where a
dealer carries on business through an agent;
(ii) any place or building whether any business
is carried on therein or not, in which the person carrying on the business,
keeps any of his books of accounts, documents, stocks or other things, relating
to his business;
(iii) any vehicle or vessel or any other
carriers wherein goods are stored or used for transporting goods;
(r) "Prescribed" means prescribed
by rules made under this Act;
(s) "Purchase price" shall comprise
of-
(i) the amount payable by a dealer as
valuable consideration for the purchase of goods' simplicitor:
PROVIDED
that where goods are purchased together with the packing material or container,
then notwithstanding anything contained in this Act, the purchase price of such
goods shall be inclusive of the price or cost or value of such packing material
or container, whether such price or cost or value is paid separately or not as
if such packing material or container were the goods purchased;
(ii) transport costs, if any;
(iii) trade commission, if any, by whatever
name called;
(iv)
forwarding and handling charges, if any;
(v) insurance charges, if any;
(vi) local taxes, if any;
(vii) excise duty, if any, leviable under the
Central Excise Act, 1944 (No. 1 of 1944);
(viii) cost of packing, if any; and
(ix) any other charges or costs other than
those specified above, if incurred or paid in respect of goods so purchased;
Explanation:
For the purpose of this clause "transport cost" includes such
expenses as are incurred by the dealer on transportation of goods after taking
delivery from the seller;
(t) "Registered dealer" means a
dealer registered under this Act;
(u) "Sale" with all its grammatical
variations and cognate expressions means any transfer of property in goods for
cash or deferred payment or for other valuable consideration and includes:-
(i) a transfer, otherwise than in pursuance
of a contract of property in any goods for cash, deferred payment or other
valuable consideration;
(ii) a transfer of property in goods whether
as goods or in some other form, involved in the execution of works contract;
(iii) a delivery of goods on hire purchase or
any system of payment by installments;
(iv) a supply of goods by any unincorporated
association or body of persons to a member thereof for cash, deferred payment
or other valuable consideration;
(v) a 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;
(vi) a transfer of the right to use any goods
including leasing thereof for any purpose (whether or not for a specified
period) 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 purchase of
those goods by the person to whom such transfer, delivery or, supply is made,
but does not include a mortgage, hypothecation, charge or pledge;
Explanation:
(a) Notwithstanding anything contained in the Sale of Goods Act, 1930 (111 of
1930), where a sale or purchase of goods takes place in pursuance of a contract
of sale, such sale or purchase shall be deemed for the purposes of this Act to
have taken place in the State of Madhya Pradesh irrespective of the place where
the contract of sale or purchase might have been made, if the goods are within
the State-
(i) in the case of specific or ascertained
goods, at the time the contract of sale or purchase is made; and in the case of
unascertained or future goods, at the time of their appropriation to the
contract of sale or purchase by the seller or by the purchaser, whether the
assent of the other party is prior or subsequent to such appropriation; and
(b) Where there is single contract of sale
or purchase of goods situated at more places than one, the provisions of clause
(a) shall apply as if there were separate contracts in respect of the goods at
each of such places;
(v) "Sale price" means the amount
or any other consideration payable to a dealer as valuable consideration for
the sale of any goods less any sum allowed as cash discount according to
ordinary trade practice but inclusive of any sum charged for anything done by
the dealer in respect of the goods at the time of or before. delivery thereof
other than the cost of freight or delivery or the cost of installation when
such cost is separately charged.
Explanation:
(i) Where goods are sold on hire purchase or any system of payment by
installments, the sale price of such goods shall be exclusive of insurance
charges interest and hire charges and such other charges as may be prescribed.
(ii) Where goods are sold by way of transfer
of right to use such goods, the sale price thereof shall be the amount of
valuable consideration received or receivable by the transfer or for such
transfer;
(w) "Tax" means the tax payable
under this Act;
(x) "Taxable turnover" in relation
to a dealer for any period means that part of
dealer's
turnover which remains after deducting therefrom :-
(1) the sale price of goods declared tax
free under Section 16;
(2) in respect of goods on which tax is
payable under clause (i) of Section 9:-
(i) the amount collected by way of tax
under clause (i) and clause (ii) of Section 9;
(ii) the sale price of goods in relation to
which deduction is provided under the Act;
(3) in respect of goods on which tax is
payable under clause (ii) or Section 9-
(i) the sale price of such goods which are
in the nature of tax paid goods in the hands of such dealer;
(ii) the amount collected by way of tax under
clause (ii) of Section 9;
(iii) the sale price of goods in relation to
which deduction is provided under the Act.
Explanation
: For the purpose of levy of tax under clause (i) and tax under clause (ii) of
Section 9, the taxable turnover shall be determined;
(y) "Tax paid goods" in relation to
goods specified in Parts III and IV of Schedule II on which tax is payable
under clause (ii) of Section 9 means any such goods which have been purchased
by a dealer from a registered dealer inside the State of Madhya Pradesh within
the meaning of Section 4 of the Central Sales Tax Act, 1956 (No. 74 of 1956);
(Z) "Turnover" in relation to any
period means the aggregate of the amount of sale prices received and receivable
by a dealer in respect of any sale or supply or distribution of goods made
during that period, whether or not the whole or any portion of such turnover is
liable to tax but after deducting the amount, if any, refunded by the dealer to
a purchaser, in respect of any goods purchased and returned by the purchaser
within six months from the date of such sale:
PROVIDED
that-
(i) in the case of sale by bonafide
agriculturist as defined in clause (e) of sub‑section (1) of Section 2 of
the Madhya Pradesh Land Revenue Code, 1959 (No. 20 of 1959) of ghee produced by
himself; or
(ii) in case of sale by a person of
agricultural or horticultural produce grown by himself or grown on any land in
which he has an interest whether as owner, usufructuary mortgagee, tenant or
otherwise, when such produce is sold in the form in which it was produced
without being subjected to any physical, chemical or other process for being made
fit for consumption save mere dehusking, cleaning, grading or sorting, the
amount of consideration relating to such sales,
shall be
excluded from his turnover;
(a‑1) "VAT" (Value Added Tax) means tax
on sale or purchase of goods payable under this Act;
(b‑1) "Year" means
the twelve months ending on the 31st day of March.
3. Taxing Authorities and other Officers
(1) There may be appointed a person to be the
Commissioner of Commercial Tax and the following category of officers to assist
him, namely:
(a) Additional Commissioner of Commercial
Tax;
(b) Appellate Deputy Commissioner or
Additional Appellate Deputy Commissioner of Commercial Tax;
(c) Deputy Commissioner or Additional
Appellate Deputy Commissioner of Commercial Tax;
(d) Assistant Commissioner or Additional
Assistant Commissioner of Commercial Tax;
(e) Commercial Tax Officer or Additional
Commercial Tax Officer;
(f) Assistant Commercial Tax Officer; and
(g) Inspector of Commercial Tax.
(2) The Commissioner of Commercial Tax and
the Additional Commissioner of Commercial Tax shall be appointed by the State
Government and the other Officers referred to in sub‑section (1) shall be
appointed by the State Government or such other authority as it may direct.
(3) The Commissioner of Commercial Tax and
the Additional Commissioner of Commercial Tax shall exercise all the powers and
perform all the duties conferred or imposed on the Commissioner by or under
this Act throughout the State and for this purpose any reference to the Commissioner
in this Act, shall be construed as a reference to the Additional Commissioner
of Commercial Tax.
(4) Other officers referred to in sub‑section
(2) shall, within such areas as the appointing authority may, by general or
special order specify, exercise such powers as may be conferred and perform
such duties as may be imposed by or under this Act.
(1) The State Government shall, by
notification with effect from a date specified therein, constitute Appellate
Board to exercise the powers and perform the functions conferred on the
Appellate Board by or under this Act.
(2) Till the date specified in the
notification under sub‑section (1), the Board of Revenue shall act as
Appellate Board for the purpose of this Act and on the date aforementioned all
proceedings pending before the Board of Revenue, Madhya Pradesh, acting as
Appellate Board shall stand transferred to the Appellate Board constituted
under sub‑section (1).
(3) The Appellate Board shall consist of a
Chairman and two members who have vast knowledge of administration or taxation
matter.
(4) The
Appellate Board shall, for the purpose of discharging its functions, have all
the powers
which are vested in the commercial tax authorities referred to in Section 3 and
any proceedings before the Appellate Board shall be deemed to be judicial
proceedings within the meaning of Sections 193 and 228 of the Indian Penal
Code, 1860 (No. 45of 1860) and for the purpose of Section 196 of the Indian
Penal Code, 1860, the Appellate Board shall also be deemed to be the Civil
Court for all the purposes of Section 195 and Chapter XXXV of the Code of
Criminal Procedure, 1973 (No. 2 of 1974).
(5) The tenure
of the Chairman 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. The salary and other conditions of the
Chairman and Members shall be such as may be prescribed.
(6) Subject to the previous approval of the
State Government, the Appellate Board may, from time to time, make regulation
consistent with the provisions of this Act to regulate the procedure in all
matters arising out of the exercise out of its powers or the discharge of its
functions under the Act.
(1) Every dealer whose turnover during a
period of twelve months immediately preceding the commencement of this Act
exceeds the prescribed limits which shall not exceed rupees five lacs, shall
from, such commencement be liable to pay tax under this Act in respect of sales
or supplies of goods effected by him in Madhya Pradesh. Different limits may be
prescribed for different category of dealers.
(2) Every dealer to whom sub‑section
(1) does not apply shall be liable to pay tax under this Act in respect of
sales or supplies of goods effected by him in Madhya Pradesh with effect from
the date on which his turnover in a year first exceeds the limit prescribed
under in the said sub‑section but for the purpose of assessment of the
tax for that year, only so much of his turnover as is in excess of such limit,
shall be taken into consideration.
6.
Determination of liability to pay
tax
(1) The Commissioner shall, in the prescribed
manner, institute proceedings for the purpose of determining the liability of a
dealer to pay tax under this ' Act, Such liability shall be determined by an
order and such determination shall be made within a period of twelve months
from the date of institution of such proceedings.
(2) Notwithstanding anything contained in
sub‑section (2) of Section 5, liability of a dealer to pay tax under this
Act shall not be determined from a date earlier than five years prior to,
(i) the
date of institution of proceedings under sub‑section (1); or
(ii)
the date of validity of the registration
certificate,
whichever
is earlier.
7.
joint and several liability of
certain class of dealers
(1) (a) Where
a dealer who carries on the business of supplying goods in the course of
execution of a works contract entered into by him (hereinafter referred to as a
contractor) through another such dealer (hereinafter referred to as a sub‑contractor)
directly or otherwise, and the sub‑contractor executes such works
contract and each or either of them is liable to pay tax under this Act, then
notwithstanding anything contained in this Act, the contractor and the sub‑contractor
shall be jointly and severally liable to pay tax in respect of transfer of
property in goods whether as goods or in some other form involved in the
execution of such works contract.
(b) If the contractor proves in the
prescribed manner to the satisfaction of the Commissioner that the tax has been
paid by the sub‑contractor on the turnover of the goods supplied in the
course of execution of the works contract, the contractor shall not be liable
to pay tax again on the turnover of such goods.
(2) (a) Where
a dealer who bonafidely buys or sells for an agreed consideration (hereinafter
referred to as the commission agent) any goods specified in Schedule 11 on
behalf of his principal, such commission agent and his principal shall both be
jointly and severally liable to pay tax under this Act.
(b) (i) If
the principal on whose behalf the commission agent has sold the goods proves in
the prescribed manner to the satisfaction of the Commissioner that tax has been
paid or payable by his commission agent on such goods, the principal shall not
be liable to pay tax in respect of the sale of such goods. (ii) If the
Commission agent who has sold goods on behalf of the principal proves in the
prescribed manner to the satisfaction of the Commissioner that the tax has been
paid by this principal on such goods, the commission agent shall not be liable
to pay tax in respect of the sale of such goods.
(3) Where any dealer or person with a view to
evade payment of tax or in order to claim any input tax rebate which he
otherwise is not eligible for or was carrying on business in the name of or in
association with any other person either directly or indirectly, whether as an
agent, employee, manager, partner or power of attorney holder, guarantor,
relative or sister concern or any other capacity, such person and the dealer in
whose name the registration certificate was obtained shall jointly and
severally be liable for the payment of tax assessed, reassessed, interest
payable and penalty imposed under the Act and such tax, interest and penalty
shall be recovered from all or any of such persons as if such person or persons
are dealer under the Act.
8.
Liability of a dealer registered
under Central Act No. 74 of 1956 to pay tax
(1) A dealer registered under the Central
Sales Tax Act, 1956 (No. 74 of 1956) who is not liable to pay tax under Section
5 shall nevertheless be liable to pay tax at the rate specified in Section 9 on
his sales of any goods in respect of the purchases of which he has furnished a
declaration under sub‑section (4) of Section 8 of the said Act or on the
sales of any goods in the manufacture of which such goods have been used.
(2) Every dealer to whom sub‑section
(1) applies shall for the purposes of Sections 18, 20, 24 and 39 be deemed to
be a registered dealer.
There
shall be levied on goods specified in,-
(i) parts III, IV and V of Schedule IL a tax
at the rate mentioned in the corresponding entry in column (3) thereof on the
taxable turnover; and
(ii) parts III and IV of the said Schedule, a
tax at the rate mentioned in the corresponding entry in column (4) thereof on
the taxable turnover,
and such shall
be levied on the taxable turnover of a dealer liable to pay tax under this Act.
(1) Every dealer who in the course of his
business purchases any goods specified in Schedule 11 from any person other
than a registered dealer or from a registered dealer in the circumstances in
which no tax under Section 9 is payable by that registered dealer on the sale
price of such goods except where the goods are tax‑paid goods within the ‑meaning
of clause (x) of Section 2, shall be liable to pay tax on the purchase price of
such goods if,-
(a) after their
purchase, the goods are not sold within the State of Madhya Pradesh or in the
course of inter‑State trade or commerce or in the course of export out of
the territory of India but are sold or disposed of otherwise, or consumed or
used in the manufacture of goods declared tax‑free under Section 16; or
(b) such goods covered by Schedule III are
used or consumed in the manufacture of goods; or
(c) such goods not covered by Schedule III, after
use or consumption in the manufacture of any goods specified in Schedule II,-
(i) the manufactured goods are disposed of
otherwise than by way of sale in the State of Madhya Pradesh or in the course
of inter‑State trade or commerce or in the course of export out of the
territory of India;
(ii) the manufactured goods are sold in the
State of Madhya Pradesh or in the course of inter‑State trade or commerce
or in the course of export out of the territory of India;
and such
tax shall be levied,-
(a) in respect of goods referred to in
clause (a), clause (b) and sub‑clause (i) of clause (c) at the rate
specified in columns (3) and (4) of Schedule 11; and
(b) in respect of goods referred to in sub‑clause
(ii) of clause (c) at the rate specified in column (4) of the said Schedule,
at the
rate at which tax would have been levied on the sales of such goods within the
State on the date of such purchase.
(2) No tax under this section shall be levied
in respect of any year on,-
(a) a dealer whose turnover in a year does
not exceed the limit prescribed under sub‑section (1) of Section 5,
(b) any other dealer who has no turnover, if
his aggregate of purchase prices of all the goods does not exceed such amount
as may be prescribed.
(3)
Every dealer who has no turnover and is liable
to pay tax under sub‑section (1) shall, for the purpose of Sections 18,
20, 21, 24, 25 and 39 be deemed to be a registered dealer.
(1) A registered dealer purchasing goods specified
in Schedule 11 from another such dealer within the State after payment to him
of tax under clause (i) of Section 9 and/or ordinarily exceed rupees five lacs
may opt, in the prescribed form within one month of the commencement of such
year, for payment, in lieu of tax payable by him under clause (i) of Section 9
a lumpsum at such rate, in such manner and subject to such restrictions and
conditions as may be prescribed.
(2) If a registered dealer during the year
for which an option has been given by him, contravenes any of the restrictions
and conditions prescribed under sub‑section (1), the option given by him
shall stand revoked.
(3) A registered dealer who opts for
composition of tax under sub‑section (1) shall not be eligible to any
input tax rebate in respect of the goods sold during the year in relation to
which such option is exercised by the dealer.
12. Dealer not
to pass incidence of tax to agriculturists and horticulturists under certain
circumstances
No dealer
shall collect any amount, by way of tax, from a person who sells agricultural
or horticultural produce grown by himself or grown on any land in which he has
an interest, whether as owner, usufructuary mortgagee, tenant or otherwise,
when such produce is sold in the form in which it was produced, without being
subjected to any physical, chemical or other process for being made fit for
consumption save mere dehusking, cleaning, grading or sorting.
13.
Rate of tax on container or
packing material
Notwithstanding
anything contained in Section 9 or Section 10 where any goods packed in any
container or packing material are sold or purchased, the container or packing
material in which such goods are so packed shall be deemed to have been sold or
purchased along with such goods and the tax under Section 9 or Section 10 shall
be levied on the sale or purchase of such container or packing material at the
rate of tax, if any applicable to the sale, or, as the case may be, the
purchase of the goods themselves:
PROVIDED
that no tax under Section 9 or Section 10 shall be levied where the container
or packing material is sold or purchased along with the goods declared tax‑free
under Section 16.
(1) Subject to the provisions of sub‑section
(5) and such restrictions and conditions as may be prescribed, a rebate of
input tax as provided in this section shall be claimed by or be allowed to a
registered dealer in the circumstances specified below,
(a) when a registered dealer purchases any
goods specified in Schedule II, within the State of Madhya Pradesh from another
such dealer for sale within the State of Madhya Pradesh or in the course of
inter‑State trade or commerce or in the course of export out of the
territory of India, after payment to him of the tax under clause (i) of Section
9, he shall claim or be allowed in such manner and within such period as maybe
prescribed, input tax rebate of the amount of such tax;
(b) when a registered dealer purchases any goods
specified in Schedule 11 other than those specified in Schedule III within the
State of Madhya Pradesh from another such dealer after payment to him of the
tax under clause (i) of Section 9, for use or consumption of such goods as raw
material or for use as capital goods for/in the manufacture or for/in mining of
any goods specified in schedule II for sale within the state of Madhya pradesh
or in the course of inter-state trade or commerce or in the course of export
out of the territory of India, he shall claim or be allowed, in such manner and
within such period as may be prescribed, input tax rebate of the amount of such
tax;
(c) where a
dealer makes an application for grant of a registration certificate under
clause (a) or clause (b) of sub‑section (2) of Section 17 on or after the
commencement of the Act, he shall in respect of,-
(1) goods specified in Schedule II,
purchased on or after such commencement by him within the State of Madhya
Pradesh from another such dealer after payment to him of tax under clause (i)
of Section 9 for the purpose specified in clause (a); or
(2) goods specified in Schedule H other than
those specified in Schedule III, purchased on or after such commencement by him
within the State of Madhya Pradesh after payment to him of tax under clause (i)
of Section 9 for the purpose specified in clause (b);
and held
in stock by him on the date of validity of the registration certificate issued
to him under clause (a) of sub‑section (2) of Section 17, claim or be
allowed,-
(i) in respect of goods referred to in
clause (a), an input tax rebate under the said clause, the amount of such tax,
(ii) in respect of goods referred to in
clause (b), an input tax rebate under the said clause of the amount of such
tax,
in such
manner and within such period as may be prescribed.
(2) (a) Notwithstanding
anything contained in sub‑section (1), where a registered dealer
purchases any goods specified in Schedule II in the circumstances stated in
clauses (a) and (b) of the said sub‑section and despatches such goods or
the goods manufactured by him, to a commission agent registered under the Act
for sale the input tax rebate in respect of such goods purchased for the
purpose of sale within the State of Madhya Pradesh shall be claimed by or be allowed
to the registered dealer who receives the goods for sale on commission.
(b) No input tax rebate shall be claimed by
or be allowed to the dealer (principal) who despatches such goods for the said
purpose.
(3) The input tax rebate by a registered
dealer under sub‑section (1) or sub‑section (2) shall be adjusted
in such manner as may be prescribed towards the tax payable by him under this
Act or under Central Sales Tax Act, 1956 (No. 74 of 1956) and the balance, if
any, shall be carried over for adjustment towards tax payable in the subsequent
year.
(4) Any amount of input tax rebate in respect
of the purchase of the goods by a registered dealer being for sale in the
course of export out of the territory of India, to which he is entitled is not
adjustable towards any tax payable by him in accordance with the provisions of
sub=section (3), such rebate shall be granted to him by way of refund.
(5) (a) (i)
Where a registered dealer having purchased any goods referred to in clause (a)
of sub‑section (1), from another such dealer for the purpose of sale has
claimed input tax rebate in respect of such goods under clause (a) or sub‑clause
(1) of clause (c) of the said sub-section and adjusted such rebate towards the
tax payable by him according to his return or returns, such dealer shall, in
the event of disposal of such goods otherwise than by way of sale within the
State of Madhya Pradesh or in the course of inter‑State (ii) Where a
registered dealer having purchased any goods referred to in clause (b) or sub‑clause
(ii) of clause (c) of sub‑section (1) from another such dealer for the
purpose of use or consumption of such goods as raw material or for use as
capital goods for/in the manufacture or mining of any goods specified in
Schedule 11 has claimed input tax rebate in respect of such goods under clause
(b) or clause (c) of the said sub‑section, and adjusted such rebate
towards the tax payable by him according to his return or returns, such dealer
shall, in the event of the disposal of goods manufactured or mined, in a manner
otherwise than by way of sale in the State of Madhya Pradesh or in the course
of inter‑State trade or commerce or in the course of export out of the
territory of India, be liable to pay the amount of tax towards which the
aforesaid input tax rebate relating to such goods was adjusted by him.
(iii)
Where the registration certificate of a registered dealer who having purchased
any goods referred to in clause (a) or clause (b) of sub‑section (1) and
having claimed input tax rebate in respect of the said goods under the said
clauses, is cancelled under sub‑section (10) of Section 17, such dealer
shall pay the amount claimed by way of input tax rebate under the said clauses
in respect of the goods held in stock by him on the date the order of
cancellation of the registration certificate takes effect.
(b) Where the amount of tax or the amount of
input tax rebate which a registered dealer is liable to pay under clause (a) is
not adjustable towards any input tax rebate to his credit, such dealer shall be
liable to pay on the amount of tax so payable interest at the rate of one
percent per month for the period commencing from the date of disposal of the
goods in the manner stated in sub‑clause (i) or sub‑clause (ii) of
clause (a) to the date of its payment.
(6) No input tax rebate under sub‑section
(1) shall be claimed or be allowed to a registered dealer,-
(i) in respect of any goods specified in
Schedule II purchased by him from another such dealer for sale but given away
by him by way of free sample or gift or given to or received by him by way or
replacement;
(ii) in respect of goods specified in
Schedule 11 for use or consumption for manufacture or mining of goods but the
goods manufactured or mined are given away by him by way of free sample or gift
or given to or received by him by way of replacement;
(iii) in respect of goods purchased by him from
another such dealer who opts for the composition of tax tinder the provision of
section 11,
(7) (a) The
State Government, if it deems fit, may, by notification, specify any goods
mentioned in Part III of Schedule 11 for the purpose of claiming or allowing
input tax rebate under this section, when such goods are purchased by a
registered dealer from another such dealer within the State of Madhya Pradesh,‑
(i) after payment to him of tax under
clause (ii) of Section 9, or
(ii) which are tax‑paid goods at the
hands of the selling registered dealer,
for use or
consumption of such goods for/in the manufacture or for/in mining of any goods specified
in schedule II for sale within the state of Madhya pradesh or in the course of
inter-state trade or commerce or in the course of export out of the territory
of India and thereupon the input tax rebate in respect of such goods shall be
claimed or be allowed in such manner, to such extent, within such period and
subject to such restrictions and conditions as may be specified in the
notification.
(b) The provisions of sub‑clause (ii)
of clause (c) of sub‑sections (1) and sub‑section (2) to (5) shall
apply to input tax rebate that may be claimed or allowed in respect of goods
referred to in clause (a).
The burden
of proving that any sale or purchase effected by a dealer is not liable to tax under
Section 9 or Section 10, as the case may be, or that he is eligible for an
input tax rebate under Section 14 shall be on the dealer.
No tax
shall be payable on the sale or purchase of goods specified in Schedule I
subject to the conditions and exceptions, if any, set out in the corresponding
entry in the third column thereof.
(1) Every dealer whose turnover during the
twelve months immediately preceding the commencement of this Act exceeds the
limit prescribed under sub‑section (1) of Section 5 shall get himself
registered in the prescribed manner within thirty days of the commencement of
this Act.
(2) (a) Every
dealer other than a dealer to whom sub‑section (1) applies shall get
himself registered within the prescribed period from the date on which his
turnover in a year first exceeds the limit prescribed under sub‑section
(1) of Section 5.
(b) Every dealer being a transferee of a
business within the meaning of sub‑section (1) of Section 29 shall get
himself registered within thirty days from the date of transfer of the business
of which he is a transferee.
(c) A dealer who though not liable to pay
tax under Section 5 desires to obtain a registration certificate voluntarily
may get himself registered under this Act.
(d) Any person intending to establish a
business in the State for the manufacture of goods for sale of value exceeding
one lac in a year and who is registered in the Industries Department of the
State Government for establishing an industrial unit in the State or who is
issued a licence wherever necessary or has sent a memorandum of information to
the Central Government to establish a new industrial undertaking in the State
under the provisions of the Industries (Development and Regulation) Act, 1951
(No. 65 of 1951) may, notwithstanding that he is not liable for registration
under clause (a), get himself registered under this Act.
(3) Every dealer required to get himself
registered under sub‑section (1) or clause (a) or clause (b) of sub‑section
(2), shall, or a dealer who desires to get himself registered under clause (c)
of sub‑section (2), or a person who desires to get himself registered
under clause (d) of sub‑section (2) may make an application to the Commissioner
in such form and manner as may be prescribed, giving correct and complete
particulars therein. Such application shall be accompanied by an affidavit in
support of the particulars given in the application and also a satisfactory
proof of payment of a registration fee of five hundred rupees in the prescribed
manner.
(4) (a) On
the day the application for grant of a registration certificate as required by
sub‑section (1) or sub‑section (2) is received, the said authority
shall grant the applicant a registration certificate in the prescribed form.
(b) After the issue of the registration
certificate under clause (a), the Commissioner shall verify the particulars
given in the application in such manner as may be prescribed.
(c) If the Commissioner on verification
under clause (b), is satisfied that the particulars given by the applicant in
his application are incorrect or that the applicant has misrepresented certain
facts, he shall, after giving the applicant an opportunity of being heard and
recording the reasons in writing, cancel the registration certificate issued to
the applicant under clause (a) in accordance with the provisions of clause (c)
or clause (e) of sub‑section (10) from the date of its issue, not later
than thirty days of the date of receipt of the application,
(5) The registration certificate granted
under sub‑section (4) shall take effect from.-
(a) in a case where a dealer required to get
himself registered under clause (a) or clause (b) of sub‑section (2) has
applied for registration within the period prescribed under clause (a) or
specified in clause (b) of the said sub‑section, the date on which his
turnover in a year first exceeds the limit prescribed under sub‑section
(1) of Section 5 or the date of transfer of business, as the case may be;
(b) in a case where a dealer required to get
himself registered under clause (a) or clause (b) of sub‑section (2) has
applied for registration after the expiry of the prescribed or specified
period, as the case may be, the date on which he applies for registration;
(c) where a
dealer has applied under clause (c) or a person has applied under clause (d) of
sub‑section (2), for registration the date of such application and
notwithstanding the provisions of Section 5, such dealer or person, as the case
may be, shall be liable to pay tax under this Act, during the period from the
said date till his registration certificate remains in force.
(6) Without prejudice to the provisions of sub‑section
(6) of Section 19 when a dealer has without reasonable cause, failed to get
himself registered within the prescribed time as required by sub‑section
(1) or clause (a) or clause (b) of sub‑section (2), the Commissioner may,
after giving such dealer a reasonable opportunity of being heard, direct him to
pay by way of penalty, in addition to the fee payable, a sum not exceeding
rupees five hundred.
(7) Every dealer who at the commencement of
this Act holds a registration certificate under the provisions of the Act
repealed by this Act shall, on such commencement, be deemed for all purposes of
this Act to be a dealer registered and holding a registration certificate under
this Section.
(8) If any registered dealer or other dealer
who is required to furnish returns under sub‑section (1) of Section 18-
(a) sells or otherwise disposes of his
business or any part or place of his business or effects or comes to know of
any other change in the ownership of the business, or
(b) discontinues his business or changes his
place of business or opens a new place of business, or
(c) changes the name or nature of his
business,
he or if
he dies, his legal representative shall, within the prescribed time, inform the
prescribed authority accordingly.
(9) (a) The
Commissioner shall
(i) on an application made by a registered
dealer for amendment of his registration certificate in pursuance of the
provision of sub‑section (8) or otherwise, amend the registration
certificate of the dealer or reject the application within 30 days of the date
of receipt of such application, after making such enquiry as he deems fit; and
(ii) on being satisfied that the registration
certificate issued to a dealer requires amendment with regard to certain
particulars specified therein, amend the registration certificate after giving
the dealer an opportunity of being heard.
(b) When the registration certificate is
amended under sub‑clause (i) of clause (a) in pursuance of any of the
events specified in sub‑section (8) such amendment shall take effect from
the date such event has taken place and in all other cases falling under the
said sub‑clause the amendment shall take effect from the date of
application. An amendment made under sub‑clause (ii) of clause (a) shall
take effect from the date of order for making such amendment.
(10) When-
(a) a registered dealer discontinues or
transfer his business; or
(b) the liability of a registered dealer to
pay tax ceases; or
(c) a registered dealer has granted a
registration certificate by mistake; or
(d) a registered dealer is in arrears of tax
or penalty or any other sum due under this Act or under the Act repealed by
this Act; or
(e) the Commissioner for reasons to be
recorded in writing, is of the opinion that the registration certificate should
be cancelled for any other reasons,
the
Commissioner may either on his own motion or on the application of the dealer
in this behalf cancel the registration certificate:
PROVIDED
that where the Commissioner proposes to cancel the registration certificate of
a dealer under this sub‑section, he shall give the dealer an opportunity
of being heard.
(11) Any dealer whose registration certificate
is cancelled under clause (d) or clause (e) of sub‑section (10) shall,
for the purpose of sub‑section (6) of Section 19 be deemed to be a
dealer, who has failed to apply for registration, but shall not be liable to
pay any penalty under the said sub‑section.
(12) (a) The
Commissioner may, for the proper realization of tax, from time to time demand
from a registered dealer or from a dealer who has applied for registration
under this Act, reasonable security not exceeding prescribed amount to be paid
in the prescribed manner.
(b) The Commissioner may, by order, forfeit the
whole or any portion of the security furnished by a dealer,-
(i) for collection of any amount of tax,
interest or penalty payable by the dealer; or
(ii) if the dealer is found to have misused
any prescribed certificate or declaration or has failed to keep or retain them
in the prescribed manner.
(c) No order shall be passed under sub‑clause
(b) above, without giving the dealer a reasonable opportunity of being heard.
(1) (a) (i)
every such dealer as may be required so to do by the Commissioner by notice
served in the prescribed manner;
(ii) every
registered dealer; and
(iii)
every dealer whose registration certificate has been cancelled under clause (d)
or clause (c) of sub‑section (10) of Section 17,
shall
furnish return in such form, in such manner, for such period, by such dates and
to such authority as may be prescribed:
PROVIDED
that the Commissioner may, subject to such terms and conditions as may be
prescribed, exempt any such dealer from furnishing such returns and statement
or permit any such dealer to furnish the return for such different period, in
such other form and to such other authority, as he may direct.
(b) Every dealer required to furnish returns,
under clause (a), shall furnish a statement in such forms and manner for such
period, by such date and to such authority as may be prescribed.
(c) Every dealer required to furnish audit
report under sub‑section (2) of Section 39 shall send such report of
audit along with the statement referred to in clause (b).
(2) If any dealer discovers any omission,
error or wrong statement in any return furnished by him under clause (a) of sub‑section
(1) he may furnish a revised return in the prescribed manner and within the
prescribed time.
(3) Every dealer required to file return
under sub‑section (1) shall pay the full amount of tax payable according
to the return as required by sub‑section (2) of Section 24 or the
difference of the amount of tax payable according to the revised return as
required by sub‑section (3) of the said Section and the full amount of
interest, if any, payable under clause (a) or clause (b) of sub‑section
(4) and shall furnish the proof' of such payment along with the return or the revised
return, as the case may be.
(4) (a) If
a dealer required to furnish return under sub‑section (1),-
(i) fails to pay the amount of tax payable
according to a return for any period in the manner prescribed under sub‑section
(2) of Section 24; or
(ii) furnishes a revised return under sub‑section
(2) showing a higher amount of tax to be due than was shown by him in the
original return; or
(iii)
fails to furnish return,
such
dealer shall be liable to pay interest in respect of,-
(1) the tax payable by him according to the
return; or
(2) the difference of the amount of tax
payable according to the revised return; or
(3) the tax payable for the period for which
he has failed to furnish return, at rate of 2 per cent per month from the date
the tax so payable had become due to the date of its payment or to the date of
order of assessment, whichever is earlier.
Explanation:
For the purpose of this clause,-
(1) Where the period of default covers a period
less than a month the interest payable in respect of such period shall be
computed proportionately.
(2) 'month' shall mean thirty days.
(b) If a registered dealer having furnished
a return under sub‑section (1) or a revised return under sub‑section
(2) for any period and paid the tax payable according to such return or revised
return after the time prescribed therefore fails to pay interest along with
such return or revised return in accordance with the provisions of clause (a),
the Commissioner shall levy the interest liable to be paid by the dealer and
after giving the dealer a reasonable opportunity of being heard, may direct him
to pay in addition to the tax payable or paid and the interest payable by him,
by way of penalty a sum equal to two per cent per month of the amount of
interest from the date such interest had become due to the date of its payment
or to the date of order of assessment, whichever is earlier.
(c) If a dealer fails without sufficient
cause to comply with the requirement of notice issued under sub‑section
(1), the Commissioner may after giving the dealer a reasonable opportunity of
being heard, direct him to pay, in addition to any tax payable or paid by him
by way bf penalty a sum of one hundred rupees per day of default subject to a
maximum of rupees five thousand.
(d) Where,-
(i) no tax is payable by a registered
dealer committing a default under sub‑clause (iii) of clause (a), or
(ii) a registered dealer having paid the tax
payable according to a return in time fails to furnish the return in time;
the
Commissioner may after giving such dealer a reasonable opportunity of being
heard direct him to pay by way of penalty a sum of rupees fifty per day of
default subject to a maximum of rupees one thousand.
(5) (a) If
the Commissioner has reason to believe that the particulars given by a
registered dealer in his return or returns furnished by him for any period
under sub‑section (1) or sub‑section (2) are not correct he may, by
giving the dealer an opportunity of being heard, verify the correctness of such
particulars in the return or returns.
(b) If
on such verification it is found that the particulars given in the return or
returns
are not correct insofar as they relate to the application of the correct rate
of tax, the calculation of tax or intere5tpayable or claim of any deduction and
input tax rebate, he shall by issue of a notice in the prescribed form require
such dealer to make the payment of the additional amount of tax and/or interest
payable by him within the period specified in such notice,
(1) The Commissioner or any other officer
authorized by him shall undertake tax audit of the records, stocks in trade and
the related documents of the dealer, who are selected by the commissioner in
the manner as he may deem fit.
(2) The tax audit shall be generally taken
up in the office, business premises or warehouse of the dealer.
(3) For the purpose of tax audit under sub‑section
(1), the Commissioner or any other officer authorized by him, shall examine the
correctness of the return or returns filed and admissibility of various claims
including input tax rebate.
(1) The assessment of every registered dealer
shall be made separately for every year:
PROVIDED
that,-
(a) the Commissioner may, subject to such
conditions and restrictions as may be prescribed, assess the tax due from any
dealer for any part of a year;
(b) a registered dealer who claims a refund
of input tax rebate under the provisions of sub‑section (4) of Section
14,
(i) in his return for any quarter of a year
and makes an application for that purpose, along with such return or before the
date on which the return for the subsequent quarter becomes due, or
(ii) in his returns for a year and makes an
application for that purpose before the date on which the return for the first
quarter of the subsequent year becomes due,
the
assessment of such dealer for that quarter or year, as the case may be shall be
made In accordance with the provisions of sub‑section (4) within a period
of three months from the date of receipt of the application.
(2) Where a registered dealer other than the
registered dealer referred to in the proviso to sub‑section (1) has
furnished,
(i) all the returns for a year and/or;
(ii) revised return for any quarter or
quarters of such year, in the prescribed manner and within the prescribed time
or before the date on which the return for the first quarter of the subsequent
year becomes due;
(iii) has paid the tax payable according to
such returns or revised returns as also interest payable, if any; and
(iv) has furnished the statement under clause
(b) of sub‑section (1) of Section 18, within the prescribed time,
the
returns furnished or revised returns furnished by such dealer for that year
shall be accepted and his assessment shall be deemed to have been made for the
purpose of sub‑section (1):
PROVIDED
that the assessment under this sub‑section of every such registered
dealer who is required to furnish audit report under sub‑section (2) of
Section 39 shall be deemed to have been made if such dealer has furnished the
audit report along with the statement referred to in sub-clause (iv).
(3) Notwithstanding the provisions of sub‑section
(2), the Commissioner shall select for re‑assessment a number of such
dealers as he deems fit whose assessment for a year is deemed to have been made
under sub‑section (1) in accordance with the provisions of sub‑section
(2) and such selection shall be made during the year immediately following the
said year.
(4) (a) The
Commissioner shall serve on a registered dealer referred to in the proviso to
sub‑section (1) or in sub‑section (3) or a registered dealer who is
not eligible for assessment under sub‑section (2) with a notice in the
prescribed form appointing a place which may be the business premises or any
other place and day and directing him,-
(i) to appear in person or by an agent
entitled to appear in accordance with the provisions of Section 23; or
(ii) to produce evidence or have it produced
in support of the returns; or
(iii) to produce or cause to be produced
accounts, registers, cash memoranda or other documents relating to his
business.
(b) The Commissioner, after hearing the registered
dealer or his agent and examining the evidence produced in compliance with the
requirements of sub‑clause (ii) or sub‑clause (iii) of clause (a)
and such further evidence as he may required, shall assess or re‑assess
him to tax.
(5) If a registered dealer referred to in
clause (a) of sub‑section (4),-
(a) has not furnished returns and statement
in respect of any period by the prescribed date; or
(b) has knowingly furnished incomplete or
incorrect returns or statement for any period; or
(c) having furnished such returns has failed
to comply with any of the terms of a notice issued under clause (a) of sub‑section
(4); or
(d) (i) has not maintained any accounts; or
(ii) the
accounts maintained by him are not in accordance with the provisions of sub‑section
(1) of Section 39; or
(iii) has
not regularly employed any method of accounting; or
(iv) the
method employed is such that in the opinion of the Commissioner assessment
cannot properly be made on the basis thereof,
the
Commissioner shall, after issue of a notice in the prescribed form appointing a
place which may be the business premises or at the place specified in the
notice and in the prescribed manner, assess the dealer to the best of his
judgment.
(6) (a) If
upon any information which has come into his possession, the Commissioner is
satisfied that any dealer, being liable to pay tax in respect of any period has
failed to apply for registration, the Commissioner shall, within one calendar
year from the date of completion of the proceedings under sub‑section (1)
of Section 6 proceed, in such manner as may be prescribed to assess such dealer
and assess him to tax to the best of his judgment in respect of the whole of
such period and shall impose upon him, by way of penalty, a sum two times of
the amount of tax so assessed.
(b) In respect of periods, subsequent to the
period referred to in clause (a), during which the dealer has failed to apply
for registration, the amount of tax due from him referred to in the said clause
shall be assessed separately for each year.
(7) (i) the
assessment in respect of a registered dealer referred to in clause (a) of sub‑section
(4) shall be made within a period of one calendar year from the end of the
period for which the assessment is to be made;
(ii) the assessment in respect of a dealer
referred to in clause (b) of sub‑section (6) for any period shall be made
within a period of one calendar year from the end of such period; and
(iii) in respect of a dealer, under clause (a)
of sub‑section (6) shall be made within a period of one calendar year
from the commencement of proceeding
under the said sub-section:
PROVIDED
that
(a) where a fresh assessment has to be made
to give effect to any finding or direction contained in any order under
Sections 46,47 and 53 or to any order of the Civil Court, High Court or Supreme
Court, such assessment shall be made within a period of one calendar year from
the date the order containing such finding or direction or the order of the
civil Court, High Court or Supreme Court, as the case may be;
(b) where an order of ex‑parte
assessment of a registered dealer referred to in clause (a) of sub‑section
(4) is set‑aside and case reopened under Section 34 for making a fresh
assessment, such fresh assessment shall be made within a period of six calendar
months from the date of setting aside the ex‑parte order of assessment or
within the period laid down in clause (i), whichever is later; and
(c) nothing contained in this sub‑section
shall apply to proceedings initiated under Section 21 or any proceeding other
than assessment or reassessment of tax that may be instituted under any other
provisions of this Act.
(8) Notwithstanding anything contained in sub‑section
(7), where assessment or reassessment proceedings in respect of any dealer
relating to any period cannot be completed before the expiry of the period
specified therefore in the said sub‑section, the State Government may, by
notification, for reasons to be recorded in writing, extend the period for the
completion of such assessment proceedings in respect of such dealers by such
further period as may be specified in such notification
(9) (a) Where,
a registered dealer claims refund of tax or input tax rebate in his return for
any quarter or return or returns for any year and makes an application for his
assessment for that quarter or that year but his assessment is not completed
within the time specified in the proviso to sub‑section (1) the claim
made in the return or returns for that quarter or year shall stand accepted and
such dealer shall be entitled to the refund of the amount of the tax or input
tax rebate.
(b) Where the assessment for any year of a
registered dealer,-
(i) other than a registered dealer referred
to in the proviso to sub‑section (1), and
(ii) a registered dealer who has not
furnished any return or returns for that year, is to be made under the
provisions of sub‑section (4) or sub‑section (5) is not made within
the time provided in sub‑section (7) or within the time extended under
sub‑section (8), then-
(a) the
returns furnished by the registered dealer in (i) above shall stand accepted
and he shall be deemed to have been assessed for the purpose of the Act,
(b) the
assessment of the registered dealer in (ii) above shall become time‑barred.
21.
Assessment/reassessment of tax in
certain circumstances
(1) Where an assessment or re‑assessment
of a dealer has been made under this Act or the Act repealed by this Act and for any reason any sale or purchase
of goods liable to tax under this Act or the Act repealed by this Act during
any period,
(a) has been under assessed or has escaped
assessment; or
(b) has been assessed at a lower rate; or
(c) any wrong deduction has been made while making
the assessment; or
(d) a rebate of input tax has incorrectly
been allowed while making the assessment,
(e) is rendered erroneous and prejudicial to
the interest of revenue consequent to or in the light of any judgment or order
of any Court or Appellate Board, which has become final,
the
Commissioner may, at any time within a period of three calendar years from the
date of order of assessment, proceed in such manner as may be prescribed, by
issue o a notice in the prescribed form appointing a place which may be the
business premises or at such specified place in the notice to assess or re‑assess,
as the case may be, the tax payable by such dealer after making such enquiry as
he considers necessary, and assess or re‑assess to tax.
(2) The Commissioner shall, where the omission
leading to assessment or re‑assessment made under sub‑section (1)
is attributable to the dealer, impose upon him a penalty not exceeding twice
the amount of tax so assessed or re‑assessed but shall not be less than
the amount of tax assessed.
(3) The assessment or re‑assessment
under sub‑section (1) shall be made within a period of one calendar year
from the date of commencement of the proceedings under the said sub‑section.
22.
Exclusion of time in assessment
proceedings
In
computing the period of limitation prescribed for assessment or re‑assessment,
as the case may be, under Section 20 or Section 21, the time during which any
assessment or re‑assessment proceedings remained stayed under the order
of any civil or other competent court, or under the special or general order of
the Commissioner issued under Section 45, shall be excluded.
23.
Appearance before taxing authorities
(1) Any dealer who is entitled or required to
attend or appear before any officer appointed under Section 3 in connection
with any proceedings under this Act, otherwise than when required under Section
43 to attend personally for examination on oath or affirmation, may authorize
in writing to attend or appear on his behalf, a person being a relative of or a
person regularly employed by the dealer, or a legal practitioner or a chartered
accountant or a tax practitioner.
(2) For the purpose of sub‑section (1)
any person who-
(a) before coming into force of this Act, had
been enrolled as a Sales Tax Practitioner/ Tax Practitioner, or
(b) holds a
degree in law or commerce or the degree of Bachelor of Arts with economics as
one of his subjects conferred by any Indian university incorporated by any law
for the time being in force or by any other university as the State Government
may, from time to time by notification, specify; or
(c)
does not possess any of the qualifications
referred to in sub‑clause (b) but has held a post, in the Commercial Tax
Department not below the rank of an Assistant Sales Tax Officer/Assistant
Commercial Tax Officer for atleast ten years and is granted a certificate by
the Commissioner having regard to his record of service in the department as
being a fit and proper person to appear in any proceeding under this Act,
shall be
entitled to appear as a tax practitioner.
(3) Every person referred to in clause (b) or
clause (c) of sub‑section (2) who is eligible to appear as a tax
practitioner in any proceedings under this Act shall get himself enrolled on
payment of such fee as may be prescribed.
(4) If the Commissioner is satisfied that the
application for enrolment is in order, he shall issue to the applicant an
enrolment certificate in the prescribed form. If the Commissioner, after making
such enquiry as he deems fit, and after giving the applicant a reasonable
opportunity of being heard is not so satisfied, he shall, for reasons to be
recorded in writing, reject the application.
(5) Notwithstanding anything contained in sub‑sections
(1) and (2), no person who has held any post in the Commercial Tax Department
not below the rank of a Commercial Tax Inspector shall be entitled to represent
any dealer in any proceeding under this Act:-
(i) if he has at any time,
passed any order in such proceedings, while he was holding any post in the
department;
(ii) if the place of business of the dealer
whom he desires to represent is in the district or circle within the
territorial jurisdiction of which the head quarter of the office of Commercial
Tax Department in which he had held such post was located, unless a period of
two years has elapsed since he ceased to hold that post:
PROVIDED
that nothing in clause (ii) shall apply to such person if the representation is
to be made before an officer holding a rank higher than the rank last held by
such person.
(6) No person who has been dismissed from
Government service shall be qualified to represent any dealer under sub‑section
(1).
(7) If any tax practitioner is found guilty
of misconduct by the Commissioner in connection with any proceeding under this
Act or the Central Sales Tax Act, 1956 (No. 74 of 1956) or the Act repealed by
this Act, the Commissioner may pass any order for awarding him punishment
including disqualification from appearing as a tax practitioner in any
proceeding under the aforesaid Acts, as he deems fit:
PROVIDED
that no such order shall be passed unless he is given a reasonable opportunity
of being heard.
(8) Any tax practitioner whose application
for enrolment is rejected under sub‑section (4) or who is disqualified
under sub‑section (7) may within sixty days of the direction relating
thereto, appeal to the Appellate Board.
(9)
If
any advocate or Chartered Accountant is found guilty of misconduct in c
connection with any proceeding under this Act or the Act repealed by this Act,
the Commissioner shall refer the matter to the authority empowered to take
disciplinary action against the persons of these professions for taking
appropriate action,
24. Payment and recovery of tax, interest, penalty and other dues
(1) The tax payable for each year shall be
paid in the manner hereinafter provided at such intervals as may be prescribed,
(2) Before
any registered dealer furnishes any return as required by sub‑section
(1)of Section 18, he shall pay in the
prescribed manner and time, the full amount of tax payable according to such
return and the amount of interest under sub‑section (4) of Section 18, if
any payable by him.
(3) If the
statement to be furnished under clause (b) of sub-section (1) of section 18 or
a revised return furnished by a registered dealer in accordance with the
provisions of sub-section (2) of the said section shows a higher amount of tax
to be due than was shown in the original return or returns, he shall pay the
difference and the interest payable if any, under sub‑section (4) of
Section 18 in such manner and time as may be prescribed.
(4) Notwithstanding anything contained in sub‑section
(2) or sub‑section (3), where the registered dealer is the Central
Government or a State Government or any of their departments, the Commissioner
may, subject to such terms and conditions as may be prescribed, permit such
dealer to pay the amount of tax by book adjustment.
(5) The amount of tax-
(a) due where the returns were furnished
without full payment of tax; or
(b) assessed or re‑assessed under sub‑sections
(4) and (5) of Section 20 less the sum, if any, already paid by the dealer or
person in respect of the said year together with interest, if any, required to
be paid and the penalty, if any, directed to be paid under clause (c) of sub‑section
(4) of Section 18; or
(c) (i) assessed under sub‑section (6)
of Section 20 or Section 21 together with the interest and/or penalty, if any,
directed to be paid thereunder, and
(ii) the
amount of penalty, if any, imposed or directed to be paid under any provisions
of this Act not covered under sub‑clauses (b) and (c),
shall be
paid by the dealer or person in the prescribed manner by such date as may be specified
in a notice in the prescribed form to be issued by the Commissioner for this
purpose and the date to be so specified shall ordinarily be not less than
thirty days from the date of service of such notice.
(6) Where on an admission of a first appeal
or a second appeal, the appellate authority stays the recovery of any amount of
tax assessed or penalty imposed and on a decision in such appeal by it the
amount of tax or penalty so stayed has been maintained in whole or in part by
it, the dealer shall be liable to pay interest under sub‑section (4) of
Section 18 on such amount at the rate of two per cent per month for the period
from the date on which the recovery of such amount was stayed by the appellate
authority to the date of its payment after the decision in appeal.
(7) If, for any reason, a dealer or person,
is unable to pay the tax assessed, interest payable or levied or the penalty
imposed on him under this Act or the tax payable by him in advance of
assessment within the time specified therefore in the notice of demand, he may
apply to the Commissioner in writing to grant him further time for payment of
such amount or to permit him to pay such amount in installments, subject to
such conditions and restriction as may be prescribed, the Commissioner may
grant further time to such dealer or person or allow him to pay such amount in
installments on such conditions as he may deem fit to impose. Where any
extension of time or permission to pay
by installments is granted,
the dealer or person shall be liable to pay interest on such amount from the
last date on which the amount was due to be paid in accordance with such notice
of demand. The interest shall be paid at eighteen per cent per annum for the
period commencing from such last date.
(8) Where a dealer or person does not pay the
tax assessed or the interest levied or the penalty imposed on him or any other
amount due from him under this Act within the time specified therefore in the
notice of demand and the dealer or person, has not obtained any order under sub‑section
(7) or has failed to pay the amount in accordance with the order passed by the
Commissioner under sub‑section (7), the Commissioner shall, after giving
the dealer or person a reasonable opportunity of being heard, direct that such
dealer or person shall, in addition to the amount due, pay by way of penalty a
sum equal to 2 per cent. of such amount of tax, penalty or any other amount
due, for every month, for the period for which payment has been delayed by him
after the last date on which such amount was due to be paid.
(9) (a) Where
the State Government after such enquiry as it may deem fit, is of the opinion
that genuine hardship is being caused to a dealer or person due to any
proceedings initiated for recovery of any amount outstanding against him, the
State Government may, subject to such restrictions and conditions as may be
prescribed, grant to the dealer or person additional time to pay such amount or
may grant facility to pay such amount in installments and pending the
completion of such enquiry, the State Government may stay the recovery of the
dues. In respect of every such facility the dealer or person shall be liable to
pay interest at the rate specified in sub‑section (7):
PROVIDED
that no such facility shall be granted to the dealer or persons unless she has
in the first instance applied in this behalf to the Commissioner under sub‑section
(7).
(b) If the dealer or person does not comply with
any order passed by the State Government, the Commissioner shall impose on him
penalty. under sub‑section (8).
(10) Where the Commissioner is of the opinion
that interest payable by a dealer to whom any facility has been given under sub‑section
(7) or sub‑section (9) has caused him hardship, the Commissioner may
remit such portion of the interest payable on the dues or on the penalty
imposed in accordance with the order of assessment or the order imposing
penalty, as is in excess of the tax or the penalty paid or payable:
PROVIDED
that the Commissioner shall not remit the interest unless the dealer has paid
in full the amount of tax and/or penalty required to be paid by him.
(11) (a) If
any amount of tax, interest, penalty, or any other amount due under this Act or
the Acts repealed by Section 52 of Act No. 2 of 1959 or the Act repealed by
Section 81 of Act No. 5 of 1995 or the Act repealed by this Act (hereinafter
referred to as the repealed Act) remains unpaid on the expiry of the period
prescribed for the payment thereof by or under this Act or the repealed Act or
on the expiry of the period specified in any notice of demand or order issued
or made under this Act or the repealed Act or the rules made thereunder, for
the payment thereof, the dealer or person liable to pay such amount shall be
deemed to be in default as to the whole of the amount then outstanding;
(b) When a dealer or person is in default or
is deemed to be in default under clause (a), the amount outstanding shall be
recoverable as an arrear of land revenue according to the provisions of the
Madhya Pradesh Land Revenue Code, 1959 (No. 20 of 1959) and for the purpose of
effecting the recovery of such amount-
(i) the Commissioner of Commercial Tax
shall have and exercise all the powers and perform all the duties of the
Commissioner under the Madhya Pradesh Land Revenue Code, 1959 (No. 20 of 1959);
(ii) an Additional Commissioner of Commercial
Tax shall have and exercise all the powers and perform all the duties of the
Additional Commissioner under the said Code;
(iii) a Deputy Commissioner of Commercial Tax
shall have and exercise all the powers and perform all the duties of the
Collector under the said Code;
(iv) an Assistant Commissioner of Commercial
Tax shall have and exercise all the powers and perform all the duties of the
Assistant or a Deputy Collector under the said Code;
(v) a Commercial Tax Officer and Assistant
Commercial Tax Officer shall have and exercise all the powers and perform all
the duties of the Tahsildar under the said Code.
(c) Every notice issued or order passed in
exercise of the powers conferred by clause (b), shall, for the purpose of
Sections 46,47,53,54 and 66 of this Act, be deemed to be a notice issued or an
order passed under this Act.
(d) Notwithstanding anything contained in
the Madhya Pradesh Land Revenue Code, 1959 (No. 20 of 1959), where 25 percent
of the sale value is deposited by the purchaser for the purchase of property
sold in auction in consequence of the recovery proceedings, the purchaser may
apply to the Commissioner in writing to permit him to pay the balance amount in
installments. The Commissioner may allow him to pay such amount in installments
with interest thereon on such conditions as he may deem fit to impose.
(12) Where in pursuance of sub‑section
(11) any proceedings for the recovery as an arrear of land revenue of any tax,
penalty, interest or part thereof or any other amount remaining unpaid, have
been commenced and the amount of tax, penalty, interest, or any other amount is
subsequently modified, enhanced or reduced in consequence of any assessment
made or order passed in appeal under Section 46 or revision under Section 47 or
rectification of mistake under Section 54, the Commissioner shall, in such
manner and within such period as may be prescribed, inform accordingly the
dealer or person and the authority by whom or under whose order the recovery is
to be made and thereupon such proceedings may be continued as if the amount of
tax, penalty, interest or any other amount as modified, enhanced of reduced,
had been substituted for the tax, penalty, interest or any other amount which
was to be recovered under sub‑section (11).
(13) (a) Without
prejudice to the proceedings that may be initiated by any officer referred in
sub‑clause (v) of clause (b) of sub‑section (11) for recovery of
tax, penalty, interest or any other amount due under the Act or the repealed
Act as arrears of land revenue, in exercise of the powers vested in him under
the said sub‑section, the said officer, in the course of the proceeding,
may, with the previous approval of the Commissioner, arrest the defaulter and
detain him in civil prison, in such manner and subject to such procedure as may
be pre5cribed.
(b) The officer referred to in clause (a)
shall cause the defaulter apprehended and shall send him with a warrant to be
confined in civil prison for a period which shall not exceed thirty days:
PROVIDED
that-
(i) the said officer may order the release
of the defaulter from detention
before the
expiry of the period mentioned in the warrant if he is satisfied that the defaulter has paid the amount or arrears;
(ii) no woman shall be arrested or detained
under this section.
(c) for the
purpose of taking action under this sub‑section, the officer referred to
in sub‑clause (v) of clause (b) of sub‑section (11) shall exercise
all the powers vested and perform all the duties imposed upon Sub‑Divisional
Officer under Section 250‑A of the Madhya Pradesh Land Revenue Code, 1959
(No. 20 of 1959) so far as they relate to the apprehending a person and
confining him in civil prison.
25.
Payment of tax in advance of
assessment on failure to furnish returns
(1) Where any registered dealer fails to
furnish any return for any period as required by sub‑section (1) of Section
18 and fails to pay the tax payable for such period:
(a) the Commissioner may, if the tax payable
by such dealer in a year does not ordinarily exceed ten thousand rupees; and
(b) the Commissioner shall, if the tax payable
by such dealer in a year exceeds rupees ten thousand,
require
such dealer to pay such tax, in the manner laid down in the following sub‑section,
in advance of an assessment which may be made under Section 20.
(2) The amount
of tax payable in advance under sub‑section (1) shall be computed by the
Commissioner as under:-
(a) where a registered dealer has been
assessed to tax for any previous year or part thereof, the tax payable in
advance shall be an amount which bears to the amount of tax assessed in respect
of the latest previous year or part thereof the same proportion as the period
for which the tax payable in advance bears to the period for which the latest
assessment was made;
(b) where a registered dealer has not been
assessed to tax for any previous year or part thereof but has furnished the
return as required by sub‑section (1) of Section 18 for any period, the
tax payable in advance shall be an amount which bears to the maximum amount of
tax payable according to any such return the same proportion as the period for
which the tax payable in advance bears to the period for which such maximum
amount of tax was payable according to such return;
(c) where a registered dealer has not been
assessed to tax under this Act for any previous year and no returns have been
furnished by him for such year or where a registered dealer has no previous
year, the tax payable in advance shall be such amount as the Commissioner may
determine to the best of his judgment.
(3) After the expiry of the date by which the
return has become due, the Commissioner may issue a notice in the prescribed
form to a registered dealer who has failed to furnish such return requiring him
to pay in prescribed manner and within the prescribed time the tax payable in
advance computed in accordance with sub‑section (2).
(4) If any registered dealer who is required
under sub‑section (3) to pay the tax in advance furnishes the return
under sub‑section (1) of See 'on 18 and pays the amount of tax in
accordance with the provisions of sub‑section (2) of Section 24 on or
before the date specified in the notice issued under sub‑section (3) or
satisfies the Commissioner that the return had already been furnished by him by
the date by which it was due, the said notice shall stand cancelled.
(5) The tax payable in advance or any part
thereof left unpaid within the time specified in the notice issued under sub‑section
(3) shall be recoverable as an arrear of land revenue for which purpose the
provisions of sub‑sections (11), (12) and (13) of Section 24 shall
mutatis mutandis apply.
(6) The tax paid under this section shall be
adjusted towards the tax assessed or reassessed under section 20.
26.
Deduction and payment of tax in
certain cases
(1) Any person responsible for making payment
of any sum to any dealer as a consideration for the sale or supply of any goods
in pursuance of a contract between such dealer and the Central Government or a
State Government (hereinafter referred to in this Section as the purchaser),
shall before crediting such sum to the account of the dealer or before payment
thereof in cash or by issue of a cheque or draft or by any other mode, deduct
an amount equal to the amount payable by the purchaser to the dealer by way of
tax, such amount as is shown by the dealer separately in his bill, where the
total amount of the bill exceeds rupees five thousand and shall pay it to the
State Government in such manner as may be prescribed.
(2) Notwithstanding anything contained in any
other provision of this Act, any person letting out a works contract of value
exceeding three lac rupees to a contractor involving sale of any goods in the
course or execution thereof by the contractor shall before making the payment
of any amount towards the value of such contract to him, deduct at the rate of
two percent an amount towards the tax payable by the contractor under this Act.
(3) On deduction of the amount under sub‑section
(1), or sub‑section (2), the person making such deduction shall issue to
the dealer or the contractor, as the case may be, a certificate therefore in
the prescribed form and shall deposit such amount into the Government Treasury
in such manner and within such period as may be prescribed.
(4) Any person making the payment under sub‑section
(1) or sub‑section (2) shall be deemed to have made the payment on the
authority and on behalf of the dealer or the contractor and the receipt for
such payment shall constitute a good and sufficient discharge of the liability
of the purchaser to the dealer or the contractor to the extent of the amount
specified in the receipt.
(5) Where any payment under sub‑section
(1) or sub‑section (2) is made by a purchaser or the person letting out
the contract, on behalf of the dealer or the contractor such payment shall
constitute a good and sufficient discharge of the liability of the dealer or
the contractor to pay tax in respect of such transaction and the amount so paid
shall be adjusted by him in such manner as may be prescribed.
(6) Where a person contravenes the provisions
of sub‑section (1), sub‑section (2) or sub‑section (3), the
Commissioner may impose upon such person by way of penalty an amount which
shall be 2 percent per month of the amount required to be deducted under sub‑section
(1) or sub‑section (2), subject to a maximum of 25 percent of such
amount.
(7) Any sum which a person is required to
deduct under sub‑section (1) or sub‑section (2) or the penalty
imposed under sub‑section (6) if it remains unpaid, be recoverable as an
arrear of land revenue.
(8) Every person making a deduction under
sub‑section (1) or sub‑section (2) shall furnish a statement in
such form, to such authority, in such manner and within such time as may be
prescribed.
Explanation: For the purpose of sub‑section
(2), "person" means
(i)
Department of the Central or the State
Government,
(ii) Public
Sector Undertaking,
(iii) Municipality and Municipal Corporation,
(iv)
Authority constituted under any law for the
time being in force,
(v) Public
Limited company.
27.
Saving for person responsible for
deduction of tax at source
Notwithstanding
anything contained in Section26 no deduction towards tax under the provisions
of the said sections shall be made from any consideration payable to a dealer or
person, if such dealer or person furnishes to the person responsible for paying
any amount in respect of the sale or supply of goods a certificate in writing
in such form by such authority in such manner as may be prescribed.
(1) Notwithstanding anything contained in
Section 24 or any law or contract to the contrary, the Commissioner or any
officer other than the officer appointed under clause (g) of sub‑section
(1) of Section 3, may at any time or from time to time, by a notice in the
prescribed form a copy of which shall be sent to the dealer or person, 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 or person 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 or person,
to pay to
the Government under this sub‑section, either forthwith or upon the money
becoming due or being held, or within the time specified in the notice (not
being before the money becomes due or is held), so much of the money, as is
equal to the amount due from the dealer or person in respect of the arrears of
the tax, interest and penalty under this Act or the whole of the money when it
is less than that amount.
Explanation:
For the purpose of this sub‑section the amount due to a dealer or person
or money held for or on account of a dealer or person, by any person shall be
computed after taking into account such claims, if any, as may have fallen due
for payment by such dealer or person to such person, 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 thereof.
(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 or person and the
treasury receipt for such payment shall constitute a good and sufficient
discharge of the liability of such a person to the dealer to the extent of the
amount specified in the receipt.
(4) Any person. discharging any liability to
the dealer or person 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 or person
for tax or penalty or both 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 person or that he did not hold any money for or on account of
the dealer or person, at the time the notice was served on him, then nothing
contained in this Section shall be deemed to require such person to pay to the
Government 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 recovery of the arrears
of tax, interest and penalty, if any, due from the dealer or person.
(1) When the ownership‑of the business
of a dealer liable to pay tax under this Act is entirely transferred, the
transferor and the transferee shall jointly and severally be liable to pay the
tax together with penalty, if any, or interest or penalty payable in respect of
such business for any year or relatable to a part of any year and remaining
unpaid at the time of the transfer and the transferee shall also be liable to
pay the tax on the sales or purchases or goods effected by him with effect from
the date of such transfer and shall within thirty days of the transfer apply
for registration unless he already holds a registration certificate.
(2) When a dealer is a firm or association
of persons or a joint Hindu family and such firm, association or family has
discontinued business-
(a) the tax payable under this Act by such
firm, association or family for the period up to the date of such
discontinuance may be assessed and determined as if no such discontinuance had
taken place; and
(b) every person who was at the time of such
discontinuance a partner of such firm or a member of such association or family
shall notwithstanding such discontinuance, be liable severally and jointly for
the payment of the tax payable by such firm, association or family, whether
such assessment is made prior to or after such discontinuance and, subject as
aforesaid the provisions of this Act shall apply as if every such person or
partner were himself a dealer:
PROVIDED
that when it is found that a change has occurred in the constitution of the
firm or association or that such firm or association has transferred its
business and the tax payable by a partner or member as aforesaid cannot be
recovered from him, it may be recovered from the firm or association as
reconstituted or from the transferee.
Explanation:
The dissolution or reconstitution of a firm or association of persons or
partition of joint Hindu family shall be deemed to be a discontinuance of
business within the meaning of this sub‑section.
(3) The provisions of this section shall
mutatis mutandis apply to any arrears of tax payable under the Act repealed by
Section 81 of Act No. 5 of 1995 or the Act repealed by this Act and due for any
year or relatable to a part of any year prior to such transfer of business,
discontinuance or dissolution of the partnership or the partition of undivided
Hindu family, as the case may be.
(4) When two or more companies are
amalgamated by the order of a court or of .the Central Government and the order
is to take effect from a date earlier to the date of the order and any of such
companies have sold or purchased any goods to or from each other during the
period commencing on the date from which the order to take effect and ending on
the date of the order, then such transactions of sale and purchase will be
included in the turnover of the sales or purchases of the respective companies
and will be assessed to tax accordingly.
(5) Notwithstanding anything contained in the
order specified in sub‑section (4), for all of the purposes of this Act,
the said two or more companies will be treated as distinct companies and will
be treated as such for the periods up to the date of the said order and the
registration certificates of the said companies will be cancelled, where
necessary, with effect from the date of the said order.
(6) Words and expressions used in sub‑sections
(4) and (5) but not defined, shall have the same meanings as assigned to them
in the Companies Act, 1956 (No. 1 of 1956).
Notwithstanding
any contract to the contrary, where any firm is liable to pay tax under this
Act the firm and each of the partners of the firm shall be jointly and
severally liable for such payment:
PROVIDED
that where any such partner retires from the firm, he shall also be liable to
pay the tax, interest and the penalty, if any remaining unpaid at the time of
his retirement and any tax due up to the date of retirement though un‑assessed
on that date.
31. Transfers
to defraud revenue void
Where during the pendency of any proceeding under this Act
or under the Act repealed by Section 81 of Act No. 5 of 1995 or the Act
repealed by this Act or under the Madhya Pradesh Land Revenue Code, 1959 (No.
20 of 1959) any dealer creates a charge on or parts with the possession by way
of sale, mortgage, gift, exchange or any other mode of transfer whatsoever of
any of his assets in favour of any other person with the intenti6n to defraud
revenue, such charge or transfer shall be void as against any claim in respect
of any tax or any other sum payable by the dealer as a result of the completion
of such proceeding under this Act or under the Act repealed by Section 81 of
Act No. 5 of 1995 or the Act repealed by this Act or in pursuance of such
proceeding under the Madhya Pradesh Land Revenue Code' 1959 (No. 20 of 1959).
32. Assessment/reassessment of legal
representatives and assessment in special cases
(1) Where a dealer dies, his executor,
administrator, or other legal representative shall be deemed to be a dealer for
the purposes of this Act and the provisions of this Act shall apply to him in
respect of the business of the said deceased dealer:
PROVIDED
that in respect of any tax assessed/ re‑assessed or any penalty imposed
or any interest payable by the deceased dealer or any tax, or penalty or
interest, which would have been payable by him under this Act, if he had not
died, the executor, administrator or other legal representatives shall be
liable to the extent of the assets of the deceased in his hands.
(2) In he case of any guardian, trustee or
agent or any minor or other incapacitated person carrying on business on behalf
of and for the benefit of such minor or other incapacitated person, the tax
shall be levied upon and recoverable from such guardian, trustee or agent, as
the case may be, in the like manner and to the same extent as it would be
leviable on, and recoverable from, any such minor or other incapacitated person
if he were of full age and sound mind and if he were conducting the business
himself and all the provisions of this Act and rules made thereunder shall
apply accordingly.
Notwithstanding
anything to the contrary, contained in any law for the time being in force and subject
to the provisions of Section 530 of the Companies Act, 1956 (No. 1 of 1956),
any amount of tax and/or penalty or interest, if any, payable by a dealer or
other person under this Act shall be first charge on the property of the dealer
or such person.
34. Power to set aside an ex‑parte
order
Where in
the proceeding for assessment/ re‑assessment of any dealer for any period
an order is passed ex‑parte the dealer may:-
(a) if he had previous intimation of the
date of hearing, within thirty days of the date of hearing; and
(b) if the dealer had no previous intimation
of the date of hearing, within thirty days from the date of service of such
order,
apply to
the Commissioner to set aside the order and reopen the case and if the
Commissioner is satisfied that the applicant did not receive notice or was
prevented by sufficient cause from appearing on the date fixed, he may set
aside the order and reopen the case of hearing:
PROVIDED
that:-
(i) no application for setting aside an ex‑parte
assessment order shall be entertained unless it is accompanied by satisfactory
proof of payment of the amount of tax admitted by the dealer;
(ii) such an application shall be entertained
only once in the course of such proceeding.
35.
Collection of tax by dealers
(1) No person other than,-
(i) a registered dealer, or
(ii) a person who is deemed to be a
registered dealer under sub‑section (9), or
(iii) a person required to deduct any amount
byway of tax under the provisions of the Act,
shall collect
any amount by way of tax under this Act. No collection of tax shall be made by the person specified in (i) to (iii) above except in
accordance with the provisions of this Act and the rules made
thereunder.
(2) Any amount collected by any person in
contravention of the provisions of sub‑section (1) or any amount
collected by any person by way of tax or in any other manner not payable under
any provisions of this Act and not returned by him to the person from whom it
was collected shall be liable to forfeiture to the State Government.
(3) If the Commissioner, in the course of any
proceedings under this Act or otherwise, has reason to believe that any amount
is liable for forfeiture under sub‑section (2), he shall serve, on the
person who has collected such amount, a notice in the prescribed form requiring
him to show cause why the said amount should not be forfeited to the State
Government and on receipt of the reply, if any, thereto, the Commissioner shall
make enquiry and shall make such order including an order of forfeiture as he
thinks fit, after giving such person a reasonable opportunity of being heard.
(4) Where an order of forfeiture under sub‑section
(3) has been made, the person making the unauthorized collection shall
forthwith pay the amount so forfeited to the State Government, if it has not
already been paid and on his failure to do so, such amount shall be recoverable
from him as if it were a tax due from him.
(5) Where an order for forfeiture is passed,
the Commissioner shall publish or cause to be published in the prescribed
manner a notice therefore for information of the persons from whom the amount
so forfeited had been collected giving such details as may be prescribed.
(6) On the publication of the notice under
sub‑section (5), a refund of such amount or part thereof may be claimed
from the State Government within one year from the date of publication of the
said notice by the person from whom it was unauthorisedly realized by way of
tax and for this purpose the person claiming the refund shall make an
application in the prescribed form.
(7) On receipt of an application under sub‑section
(6), the Commissioner shall hold such enquiry as he deems fit and if he is
satisfied that the claim is valid and admissible and that the amount so claimed
as refund was actually paid to the State Government and no refund or remission
in respect of that amount was granted, the Commissioner shall refund such
amount or any part thereof to the person concerned.
(8) Notwithstanding anything contained in
this Act or in any other law for the time being in force where any amount
collected by any person is forfeited to the State Government under this
section, such forfeiture shall, if the amount forfeited has been paid to the
State Government, discharge him of the liability to refund the amount to the
person from whom it was so collected.
(9) A dealer specified in sub‑section
(11) of Section 17 shall be deemed to be a registered dealer for the purpose of
sub‑section (1).
Notwithstanding contained in this Act, 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 Madhya . Pradesh; or
(ii) where such sale or purchase takes place in
the course of inter‑State trade or commerce; or
(iii) where such sale or purchase takes place
in the course of import of the goods into, or export of the goods out of the
territories of India.
(2) For
the purpose of this section, whether a sale or purchase takes place,
(i) outside the State of Madhya Pradesh; or
(ii) in the course of inter‑State trade
or commerce; or
(iii) in the course of the import of goods into
the territory of India or the export of goods out of such territory,
shall be
determined in accordance with the principles specified in Sections 3, 4 and 5
of the Central Sales Tax Act, 1956 (No. 74 of 1956).
(1) If the Commissioner is satisfied that the
tax or penalty or both or interest paid by or on behalf of a dealer for any
year exceeds the amount of the tax to which he has been assessed or the penalty
imposed or the interest payable under this Act for that year or that a
registered dealer is entitled to the refund of rebate under sub‑section
(3) of 9ection 14, he shall, in the prescribed manner, refund any amount found
to have been paid in excess in cash or by adjustment of such excess towards the
amount of tax due in respect of any other year from him.
(2) If the
Commissioner is satisfied that due to an error committed by the dealer 'while
crediting any amount payable under this Act or the Act repealed by this Act or
the Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar Adhiniyam. 1976
(No.52 of 1976) or the central sales tax Act,1956 (No.74 of 1956), into
Government treasury the amount so paid cannot be accounted for the purpose for
which it is credited, he shall subject to the provisions of sub- section (4)
refund that amount in the manner prescribed either in cash or by adjustment
towards the amount of tax due in respect of any other year from him.
(3) If the appellate authority or the
Commissioner is satisfied to the like effect it shall cause refund to be made
of any amount found to have been wrongly paid or paid in excess.
(4) Notwithstanding anything contained in sub‑section
(1) or sub‑section (2) or sub‑section (3), the authority empowered
to grant refund shall apply the refundable amount in respect of any year
towards the recovery of any tax, penalty, interest or part thereof due under
this Act or under the Act repeated by this Act or under the Central Sales Tax
Act, 1956 (No. 74 of 1956) or under the Madhya Pradesh Sthaniya Kshetra Me Mal
Ke Pravesh Par Kar Adhiniyam, 1976 (No. 52 of 1976) and shall then refund the
balance remaining, if any.
(5) Where a refund of any amount under sub‑section
(1) or sub‑section (3) is not made or is not applied for the purposes
mentioned in sub‑section (4) within sixty days from the date of passing
of the order for refund, the dealer shall be entitled and be paid interest at
the rate of one per cent per month on the amount of refund for the period
commencing from the date of expiry of the said period of sixty days and ending
with the day on which the refund is made to him under sub‑section (1) or
sub‑section (3) or is applied for the purposes mentioned in sub‑section
(3), as the case may be.
Explanation:
(i) Under this sub‑section where the period for which interest is payable
covets a period less than a month, the interest payable in respect of such
period shall be computed proportionately.
(ii) For
the purpose of this sub‑section "month" shall mean thirty days.
38. Power to withhold refund in certain cases
Where an
order giving rise to a refund is passed and the Commissioner is satisfied that
the grant of the refund is likely to be prejudicial to the interest of revenue
and action under sub‑section (2) or sub‑section (5) of Section 47
is required to be initiated or an application to the Appellate Board to enhance
the tax levied or penalty imposed is required to be made or the said order is
the subject matter of any proceeding under Section 53, the Commissioner may
withhold the refund till such time as the aforesaid proceedings are finally
decided:
PROVIDED
that the dealer shall be paid interest under sub‑section (5) of Section
37 on the amount of refund ultimately determined to be due as a result of the
aforesaid proceedings for the period commencing after the expiry of sixty days
from the date of receipt of the order giving rise to the refund.
(Invoice
or Cash Memoranda)
(1) Every registered dealer and every dealer
liable to pay tax under this Act shall maintain correct account of his purchases,
sales and stocks showing value, of different kinds of goods subject to
different rates of tax under this Act.
(2) Every dealer whose turnover in a year
exceeds rupees forty lacs shall get his accounts audited by a Chartered
Accountant before the prescribed date and furnish the report of such audit in
such form and in such manner and within such time as may be prescribed.
(3) If the Commissioner considers that the
accounts maintained by any dealer or any class of dealers do not sufficiently
enable him to verify the returns referred to in sub‑section (1) of
Section 18 or the assessment cannot be made on the basis thereof, he may by an
order, require any dealer or by notification any class of dealers, to keep such
accounts including records of manufacture, sales, purchases or transfers in
such form and in such manner as he may, subject to rules made under this Act,
direct.
(4) If the
Commissioner considers that any class of dealers are not in a position to
maintain accounts in accordance with the provisions of sub‑section (1),
he may, for reasons to be recorded in writing, exempt such class of dealers
from the operation of the provisions of the said sub‑section.
40.
Dealers to issue bills, invoices or
cash memoranda
(1) Every registered dealer, for each sale
made by him shall issue to the purchaser, a bill invoice or a cash memorandum
including machine ‑generated bill, invoice or a cash memorandum signed
and dated by such dealer containing prescribed particulars including the amount
of tax collected. Every such dealer shall also maintain a counterfoil or
duplicate of each bill, invoice or cash memorandum issued by him with
signature, date and all other aforesaid particulars and shall preserve it for a
period of not less than five years from such date or till the completion of
assessment whichever is earlier:
PROVIDED
that a bill, invoice or cash memorandum may not be issued where sale of any
goods of value not exceeding rupees one hundred is made to any person other
than a registered dealer.
(2) If a registered dealer contravenes the
provisions of sub‑section (1), the Commissioner may, after giving such
dealer an opportunity of being heard, direct him to pay by way of penalty a sum
of rupees one hundred for each sale in respect of which such contravention has
taken place subject to a maximum of rupees five thousand.
CERTAIN POWERS OF
COMMISSIONER AND DELEGATION
BY
COMMISSIONER OF MS POWERS
41.
Delegation of Commissioner's powers
and duties
Subject to
the provisions of this Act and to such restrictions and conditions as may be
prescribed, the Commissioner may, by order in writing, delegate any of his
powers and duties under this Act except‑those under clause (b) of sub‑section
(2) of Section 55 and under sub‑section (2) of Section 61 to any person
appointed under Section 3 to assist him:
PROVIDED that powers under Sections 38 and 47
shall not be delegated to an‑officer below the rank of a Deputy
Commissioner of Commercial Tax.
(1) The Commissioner may transfer any
proceedings or class of proceedings under any provision of this Act from
himself to any person appointed under Section 3 to assist him and he may
likewise transfer any such proceeding (including the proceeding already
transferred under this, sub‑section) from one such person appointed under
Section 3 to assist him to another such person or to himself. Intimation about
the transfer of any such proceeding or proceedings shall be sent to the dealer.
(2) Where any proceeding or class of
proceedings is transferred, the person to whom such proceeding or class of
proceedings is transferred, shall proceed to dispose it off, as if it had been
initiated by the said person, irrespective of the local limits of his
jurisdiction. Such transfer shall not render necessary the reissue of any
notice already issued before the transfer and the person to whom the
proceedings or class of proceedings is transferred may, continue it from the
stage at which it was left by the person from whom it was transferred.
43.
Power of Commissioner and his
assistants to take evidence on oath, etc.
(1) The Appellate Board, the Commissioner or
any person other than the officer referred to in clause (g) in sub‑section
(1) of Section 3 shall, for the purposes of this Act, have the powers of Court
of civil jurisdiction under the Code of Civil Procedure, 1908 (V of 1908),-
(i) to summon and enforce the attendance of
any person and examine him on oath or affirmation;
(ii) to compel the production of documents or
accounts and to impound or detain them;
(iii) to issue commissions for the examination
of witness;
(iv) to require or accept proof of facts by
affidavits; and
(v) such further powers as may be
prescribed.
(2) Every proceeding under this Act before
the Appellate Board or the Commissioner or any person other than an Inspector,
appointed to assist the Commissioner 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 196 of the Indian Penal Code, 1860 (XLV
of 1860).
44.
Power of Commissioner to call for
information in certain cases
The
Commissioner may, for the purposes of this Act-
(a) require any firm or any undivided Hindu family
to furnish a statement of the names and addresses of the partners of such firm,
or of the names and addresses of the manager and members of such family, as the
case may be;
(b) require any person whom he has reason to
believe to be a trustee, guardian, manager or agent to furnish a statement of
the name and address of the person for whom he is a trustee, guardian, manager
or agent;
(c) require any person whom he has reason to
believe to have purchased goods from outside or within the State of Madhya Pradesh
to furnish a statement of the name and address of the person from whom he has
purchased such goods and the description and price thereof and the manner in
which they were delivered to him;
(d) require any person in respect of whom he
has reason to believe that he has despatched goods to any place outside or
within the State of Madhya Pradesh, to furnish a statement of the name and
address of the person to whom he has despatched such goods and of the
description and price thereof.
45.
Power of Commissioner to stay
proceedings
The
Commissioner may by special or general order:-
(a) pending examination of any question of
law(i) before him, or
(ii) before the Appellate Board on an appeal
under sub‑section (1) of Section 53, or
(iii) before the High Court on an appeal under
sub‑section. (2) of Section 53, or
(b) for any other reason to be recorded in
writing, stay any proceeding or proceedings under Section 20 in respect of any
dealer or class of dealers.
(1) Any dealer or person aggrieved by an
order of assessment or re‑assessment, under Section 20 with or without
penalty or by an order of reassessment under Section 21 with or without penalty
passed in respect of him or by an order imposing penalty on him or to an order
resulting in the reduction of refund or the input tax rebate or any order
passed under this Act or by any order passed under Section 54, by any officer
specified in clauses (e) and (f) of sub‑section (1) of Section 3 may, in
the prescribed manner, appeal against such order to the Appellate Deputy
Commissioner:
PROVIDED
that in a case where an application made under Section 34 is rejected, such
dealer or person may in the like manner appeal against the ex‑parte order
of assessment and in computing the period of limitation for filing the appeal,
the period from the date of filing the application under Section 34 to the date
of service of order rejecting such application shall be excluded.
(2) Any dealer or person aggrieved by,-
(i) an order referred to in sub‑section
(1) passed by any officer referred to in clause (d) of sub‑section (1) of
Section 3; or
(ii) an order passed in appeal filed under
sub‑section (1),may, in the prescribed manner, appeal against such order
to the Appellate Board.
(3) Notwithstanding anything contained in the
rules or the regulations framed by the Appellate Board under the provisions of
Section 4, any officer not below the rank of Deputy Commissioner duly
authorized by the Commissioner in this behalf shall also have the right to be
heard at the hearing of the appeal under sub‑section (2).
(4) No appeal shall be admitted,-
(i) by the Appellate Deputy Commissioner
under sub‑section (1) or the Appellate Board under clause (i) of sub‑section
(2), unless out of the total balance due from the dealer,-
(a) where all the returns for the period to
which the order appealed against relates have been filed and tax payable
according to such returns has been paid, ten per cent. of such balance;
(b) where one or more of the returns for the
period for which the order appealed against relates have not been filed and tax
has not been paid or where such return or returns have been filed but tax has
not been paid, such part of the balance which shall be equal to,-
(i)
thirty three per cent., where the default
relates to one quarter;
(ii)
fifty per cent., where the default relates to
two quarters; and
(iii) seventy five per cent., where the default
relates to more than two quarters;
(c) fifty per cent. of such balance, where a
penalty under Section 52 has been imposed;
(d) fifty per cent. of such balance, where
the order appealed against has been passed under Section 21 and a penalty has
been imposed under the said Section, and
(e) twenty five per cent. of such balance,
in any other case, and
(ii) by the Appellate Board under clause (ii)
of sub‑section (2), in respect of orders passed in appeal filed under sub‑section
(1), unless out of the total balance due from the dealer after the order passed
in appeal under sub‑section (1), fifty per cent. of such balance,
is paid
and the memorandum of appeal is accompanied by a satisfactory proof of payment
of such amount and thereupon the Appellate Deputy Commissioner or the Appellate
Board, as the case may be, shall stay the recovery of the balance of tax and /
or penalty till the decision of appeal:
PROVIDED
that where in the case of an appeal being filed under sub‑section (1), or
under sub‑section (2) in respect of order referred to in sub‑section
(1), 1 a dealer is covered by more than one of the sub‑clauses in clause
(i), the provisions of the sub‑clause requiring the payment of the
highest amount, shall apply to such dealer and the appeal shall be admitted by
the Appellate Deputy Commissioner or the Appellate Board, as the case may be,
only after he has paid such amount.
(5) Every appeal under sub‑section (1)
before the Appellate Deputy Commissioner and any appeal under sub‑section
(2) against the order referred to in sub‑section (1) shall be filed
within thirty days and every appeal under sub‑section (2) against the
order of the Appellate Deputy Commissioner shall be filed before the Appellate
Board within sixty days from the date of communication of the order against
which the appeal is to be filed.
(6) (a) Subject
to such procedure as may be prescribed and after such further inquiry as it may
think fit the Appellate Deputy Commissioner shall, dispose of-
(i) every appeal under sub‑section
(1) within one calendar year from the date of filing of such appeal in
disposing of such appeal, the Appellate Deputy Commissioner may confirm,
reduce, enhance or annul the assessment of tax or imposition of penalty or both
but shall not remand the case;
(ii) every appeal pending on the date of commencement
of this Act, in accordance with the provision of sub‑clause (i) of this
sub‑section, within one calendar year from the date of commencement of
the said Act.
(b) The Appellate Board subject to the
procedure as may be prescribed may, after such enquiry as it deems fit,-
(i) confirm, reduce, enhance or annul the
assessment of tax or imposition of penalty or both, or
(ii) set aside the assessment or the
imposition of penalty or both and direct the officer whose order of assessment
or imposition of penalty has been appealed against to make a fresh assessment
or reimpose penalty after making such enquiry as it may direct; or
(iii) pass such order as it may deem fit.
(7) In the case of an order passed by the
Appellate Deputy Commissioner such order subject to the provisions of sub‑section
(2) of this section or sub‑section (1) of Section 47, as the case may be,
shall be final and in the case of an order passed by the Appellate Board such
order shall, subject to the provisions of Section 53, be final.
47.
Power of revision by Commissioner
(1) The
Commissioner on his own motion may call for the record of the proceeding in
which any order was passed by any officer specified in clauses (b) to (f) of
sub‑section (1) of Section 3 and on receipt of the record may make such
enquiry or cause such enquiry to be made, as he considers necessary and subject
to the provisions of this Act, after giving the dealer an opportunity of being
heard, may, pass such order thereon, not being an order prejudicial to the dealer
or person, as he thinks fit within six months from the date of initiation of
proceedings:
PROVIDED
that the Commissioner shall not revise any order under this sub‑section,-
(i) where an appeal against the order is
pending before the Appellate Deputy Commissioner or the Appellate Board or
where, if such appeal lies, the time within which it may be filed has not
expired; or
(ii) where such order relates to the
determination of the liability of a dealer to pay tax or where a notice is
issued under this Act for assessment or reassessment except after an assessment
or reassessment order is passed; and
(iii) against an order passed under Section 34.
Explanation:
An order by the Commissioner, declining interference shall not be deemed to bean
order prejudicial to the dealer or person.
(2) The Commissioner may on his own motion or
on information received call for and examine the record of any proceeding under
this Act if he considers that any order passed therein by any person appointed
under section 3 to assist him including any officer to whom he has delegate his
powers of revision under sub‑section (1) in pursuance of the provisions
of Section 41, is erroneous insofar as it is prejudicial to the interest of the
revenue and he may, after giving the dealer or person a reasonable opportunity
of being heard and after making or causing to be made such enquiry as he deems
necessary, pass within six months from the date of initiation of proceeding
such order thereon as the circumstances of the case justify, including an order
enhancing or modifying the assessment or cancelling the assessment:
PROVIDED
that,-
(a) no proceeding shall be initiated under
sub‑section (1) and this sub‑section after the expiry of three
calendar years from the date of the order sought to be revised:
(b) no order shall be revised by the
Commissioner under this sub‑section where an appeal against such order is
pending before the Appellate Deputy Commissioner or the Appellate Board or such
appeal has been decided by the Appellate Board on merits.
(3) Any dealer or person objecting to an
order passed by the Commissioner under sub‑section (2) may appeal to the
Appellate Board within sixty days of the date on which the order is
communicated to him.
(4) The provision of sub‑sections (4)
and (6) of Section 46 shall, mutatis mutandis, apply to appeals filed under sub‑section
(4).
(5) Where the Commissioner considers that any
order passed under sub‑section (1) by his predecessor or any Additional
Commissioner of Commercial Tax is erroneous insofar as it is prejudicial to the
interests of revenue, he may file an appeal against such order before the
Appellate Board within two years from the date of such order. The provisions of
Section 46 shall mutatis mutandis apply to the appeals filed under this sub‑section.
48.
Additional evidence in appeal or
revision
A dealer
shall not be entitled to produce additional evidence whether oral or
documentary in appeal before the Appellate Deputy Commissioner or the Appellate
Board or in revision before the Commissioner except where the evidence sought
to be adduced is evidence, which the assessing authority had wrongly refusing
to admit or which after exercise of due diligence was not within his knowledge
or could not be produced by him before the assessing authority or for the
production of which adequate time was not given by the assessing authority and
in every such case upon the additional evidence being taken on record,
reasonable opportunity for challenge or rebuttal shall be given to the
Commissioner.
49.
Court fee stamps on memorandum of
appeal and application for revision
A
memorandum of appeal filed under Section 46 or sub‑section (4) or sub‑section
(6) of Section 47 and an application for revision made under sub‑section (1)
of Section 47 shall bear court fee stamps of such value as may be prescribed.
50. Application
of Sections 4 and 12 of the Limitation Act, 1963
In
computing the period laid down under Sections 46,47 and 53, the provisions of
Sections 4 and 12 of the Limitation Act, 1963 (No. 36 of 1963), so far as may
be, shall apply.
51.
Extension of period of Limitation in
certain cases
The
provisions of Section 5 of the Limitation Act, 1963 (36 of 1963), so far as may
be, shall apply to appeals and applications for revision under this Act.
(1) If the Commissioner or the Appellate Deputy
Commissioner or the Appellate Board, in the course of any proceedings under
this Act is satisfied that a dealer has concealed his turnover or the aggregate
amount of purchase prices in respect of any goods or has furnished false
particulars of his sales or purchases, as the case may be, in his return or
returns for any year or part thereof or has furnished a false return or returns
for such period, the Commissioner or the Appellate Deputy Commissioner or the
Appellate Board, as the case may be, may initiate proceedings separately for
imposition of penalty under this Section.
(2) The proceeding under sub‑section
(1) shall be initiated by the Commissioner or the Appellate Deputy Commissioner
or the Appellate Board, as the case maybe, by issue of a notice in the
prescribed form for giving the dealer an opportunity of being heard. On hearing
the dealer, the Commissioner or the Appellate Deputy Commissioner or the
Appellate Board, as the case may be, shall pass an order not later than one
calendar year from the date of initiation of such proceeding, directing the dealer
that he shall in addition to the tax payable by him, pay by way of penalty a
sum which shall not be less than three times but shall not exceed five times of
the amount of tax evaded.
(3) If the total tax shown as payable
according to the return or returns and paid by a dealer for any period or part
thereof is less than eighty per cent of the total tax assessed /reassessed
under Section 20, such dealer shall be deemed to have concealed his turnover or
aggregate of his purchase prices or to have furnished false particulars of his
sales or purchases in his return or returns or to have furnished a false return
or returns for the purpose of sub‑section (1) unless he proves to the
satisfaction of the Commissioner or the Appellate Deputy Commissioner or the Appellate
Board, as the case may be, that the concealment of the said turnover or the
aggregate of purchase prices or furnishing of particulars of sales or purchases
or furnishing of the false return or returns was not due to any fraud or gross
negligence on his part.
(1) An appeal shall lie to the High Court
from every order passed by the Appellate Board in appeal under clause (i) of
sub‑section (2) of Section 46 if the High Court is satisfied that the
case involves a substantial question of law.
(2) The Commissioner or a dealer aggrieved by
any order referred to in sub‑section (1) passed by the Appellate Board:-
(i) under the repealed Act, on or after the
date of commencement of this Act; or
(ii) under this Act on or after such date, may
file an appeal to the High Court and such appeal under this section shall be
filed within ninety days from the date of the communication to the dealer or
the Commissioner of the order appealed against, in the form of a memorandum of
appeal precisely stating therein the substantial question of law involved.
(3) Where the High Court is satisfied that a
substantial question of law is involved in any case, it shall formulate the
question.
(4) The appeal shall be heard only on the
question so formulated and the respondents shall, at the hearing of the appeal,
be allowed to argue that the case does not involve such question:
PROVIDED
that nothing in this sub‑section shall be deemed to take away or abridge
the power of the Court to hear, for reasons to be recorded, the appeal or any
other question of law not formulated by it, if it is satisfied that the case
involves such question.
(5) Where an appeal is filed under sub‑section
(2) by a dealer, such appeal shall not be admitted by the High Court unless
fifty percent of the balance due from the dealer after the order passed by the
Appellate Board is paid by him.
(6) (a) The
High Court shall decide the question of law so formulated and deliver such
judgment thereon containing the grounds on which such decision is founded and
may award such costs as it deems fit;
(b) The High Court may determine any issue
which:-
(i) has not been determined by the
Appellate Board, or
(ii) has been wrongly determined by the
Appellate Board, by reason of a decision on such question of law as is referred
to in sub‑section (1);
(c) On delivery of judgment by the High
Court, effect shall be given to it by the Officer empowered to assess or re‑assess
the dealer under Section 20, on the basis of a certified copy of the judgment.
(7) The provisions of the Code of Civil
Procedure, 1908 (5 of 1908) relating to appeals to High Court shall, as far as
may be, apply in the case of appeals under this section.
(1) The Commissioner may-
(i) on his own motion at any time within
one calendar year from the date of any order passed by him; or
(ii) on an application made by a dealer
within one calendar year from the date of receipt of such application,
rectify,
in such manner as may be prescribed, such order for correcting any clerical or
arithmetical mistake or any error arising therein from any omission:
PROVIDED
that,-
(i) the Commissioner shall not entertain
any application by the dealer unless it is made within one year from the date
of the order sought to be rectified;
(ii) no such rectification shall b; made if
it has the effect of enhancing the tax or reducing the amount of refund unless the
Commissioner has given notice in the prescribed form to the dealer of his
intention so to do and has allowed the dealer a reasonable opportunity of being
heard.
(2) Where on an application made by a dealer
for the rectification of any order, the order is not rectified within the
period specified in sub‑section (1), the applicant shall be entitled to
have the order rectified in accordance with his application and accordingly the
Commissioner shall rectify the order, and wherein proceedings initiated suo
motu the order is not passed within the time specified in sub‑section
(1), the proceedings shall stand abated:
PROVIDED
that nothing herein shall preclude the Commissioner from exercising powers
under any other provisions of this Act.
(3) (a) The
provisions of sub‑section (1) and sub‑section (2) shall apply to
the rectification of a mistake in any order passed by the Appellate Board or
passed by the Appellate Deputy Commissioner as they apply to the rectification
of a mistake by the Commissioner.
(b) The Appellate Board may rectify any order
passed by it-
(i) on its own motion at any time within
one calendar year from the date of passing of such order; and
(ii) on an application made by the dealer or
the Commissioner, at anytime within one calendar year from the date of receipt
of such application.
(4) Where any such rectification has the
effect of reducing the amount of tax, the Commissioner shall, in the prescribed
manner, refund any amount due to the dealer.
(5) Where any such rectification has the
effect of enhancing the amount of the tax or reducing the amount of the refund,
the Commissioner shall recover the amount due from the dealer in the manner
provided in Section 24.
55. Constitution
of a committee for detection and checking of evasion of tax by
dealers liable to pay tax and power of Commissioner to act Suo Motu or upon
report of such committee to investigate into tax evasion by a dealer
(1) The State Government may constitute a
committee for detection and investigation of evasion of tax under this Act or
the Act repealed by this Act. The Committee shall consist of such number of
members as the State Government may determine. The Committee shall be assisted
by such officers specified in Section 3 as the State Government may appoint for
the purpose. The authority and the officers appointed to assist it shall
perform such functions as the State Government may direct.
(2) (a) If
upon any information which has come into its possession the committee has
reason to believe that any dealer has evaded payment of tax or is indulging in
evasion of tax under this Act or under the Act repealed by this Act, it may
draw its report in the matter and send it to the Commissioner to investigate
into the tax evasion by such dealer.
(b) If in any emergent case, upon any
information which has been received by the Commissioner he has reason to
suspect that a dealer is attempting to evade or has reason to believe that a
dealer has evaded payment of tax or is indulging in evasion of tax, he may, for
reasons to be recorded in writing, direct any of the officers referred to in
clauses (c) to (g) of sub‑section (1) of section 3 to proceed to
investigate into the tax evasion by such dealer.
(3) On the receipt of the report from the
committee in respect of a dealer or on his own motion in pursuance of the
provisions of clause (b) of sub‑section (2), the Commissioner shall,
subject to such conditions as may be prescribed:-
(a) require the dealer to produce before him
any accounts, registers' or' documents relevant to his business or to furnish
such other information as he may deem fit for scrutiny, or
(b) inspect the place of business of such
dealer and for this purpose all accounts, registers and documents relating to
the business of such dealer and all the goods kept in such place of business
shall be open to inspection by the Commissioner.
(4) If on scrutiny of the records produced by
the dealer or on inspection of his place of business under sub‑section
(3), the Commissioner is satisfied that the dealer has evaded payment of tax
payable by him for any year, he may for reasons to be recorded in writing,
seize such accounts, registers or documents relating to the business of such
dealer as he considers necessary and grant a receipt therefor to the dealer and
shall detain them only for so long as may be necessary, for examination thereof
or for assessment of tax or for prosecution.
(5) For the purpose of clause (b) of sub‑section
(3), the Commissioner may-
(a) enter and search any place of business
of such dealer or any other place whether such place be the place of his
business or not, where the Commissioner has reason to believe that the dealer
keeps or is for the time being keeping any accounts, registers or documents of
his business or stock of goods relating to his business and the Commissioner
may, for exercising the powers under this clause, seal or break open the lock
of any door, box, locker, safe, almirah or any other receptacle where the keys
thereof are not produced on demand or are not available; and
(b) also search any person who leaves or is
about to enter or is already in the place referred to in clause (a), if the
Commissioner has reason to suspect that such person has secreted about his person,
books of accounts or other documents relating to the business of such dealer.
(6) (a) If
in the course of scrutiny of accounts, registers or documents produced by the
dealer or in the course of inspection of the place of business of such dealer,
the Commissioner has reason to believe that the dealer has stored or kept goods
liable to tax, without accounting for them in books, registers or accounts
maintained by him in the course of his business, with a view to their
surreptitious sale in order to evade payment of tax, in any building, place or
vehicle under the ownership or control of the dealer in either case whether
exclusively or in association with some other person or in any building, place
or vehicle in each case belonging to some other person with express or implied
permission of such other person, the Commissioner, may enter any such building,
place or vehicle and inspect and verify if the goods have been accounted for
and in the event of his reasonable belief that the dealer has not accounted for
such goods with the intention of evading tax, the Commissioner may seize all
such goods and take all necessary steps for their removal, proper custody and
preservation:
PROVIDED
that a list of all goods seized under this clause shall be prepared by the
Commissioner in presence of at least two respectable persons and a copy thereof
shall, on demand, be furnished to the dealer or, as the case may be, to the
person from whose possession or custody they were seized.
(b) The Commissioner shall as soon as
possible after seizure of the goods under clause (a), serve upon the dealer a
notice in the prescribed form to show cause within a period of thirty days of
service of such notice as to why a penalty equal to five times the amount of
tax payable and calculable on the price which such goods would have fetched on
their assumed sale in Madhya Pradesh, on the date of seizure, be not imposed on
him for the dealers' default in not making entries in respect of such goods in
his books of account or register or other documents, as the case may be,
maintained by him in the course of his business.
(c) If the Commissioner, after taking into
consideration the explanation of the dealer and after giving him an opportunity
of being heard, is satisfied that the entries relating to the said goods were
not made in the books of accounts, registers or other documents of the dealer
without any proper justification, the Commissioner shall pass an order imposing
a penalty not less than three times but not exceeding five times of the amount
of tax referred to in clause (b).
(d) The Commissioner may, at any time after
the service of the notice under clause (b) and before passing an order imposing
penalty under clause (c), released the goods seized if the dealer or the person
from whom the goods were seized furnishes security in the form of cash security
or bank guarantee to the satisfaction of the Commissioner, in each case for
such reasonable amount as the Commissioner may specify by order in writing with
due regard to the amount of penalty proposed. On payment by the dealer of the
penalty imposed upon him under clause (c), if the security furnished is in the
form of bank guarantee, the bank guarantee shall be released and if such
security has been furnished in the form of cash security, it shall be adjusted
towards the penalty so imposed and the balance, if any, shall be refunded to
the dealer.
(e) Where no security is furnished under
clause (d), the dealer shall pay the amount of penalty, within thirty days of
the service of the order imposing penalty on him and on payment of such amount
goods seized shall be released forthwith.
(f) If the dealer fails to pay within the
period specified in clause (e), the penalty imposed under clause (c), the
Commissioner shall, subject to other provisions of this section, dispose of the
goods by way of sale in such manner as may be prescribed and apply the sale
proceeds thereof towards the penalty imposed and the expenses incurred on
account of and incidental to the custody, protection, preservation and sale of
such goods and shall refund the balance, if any, to the dealer or person
entitled.
(g) The penalty imposed under clause (c)
shall be without prejudice to any other action under any other provision of
this Act.
(h) Where any objection is made to the
seizure of the goods seized under clause (a) on the ground that such goods do
not belong to the dealer or are not otherwise liable to seizure, the
Commissioner shall proceed to decide the objection:
PROVIDED
that no such objection shall be entertained-
(i) where, before the objection is made the
goods seized had already been sold, or
(ii) where the Commissioner considers that
the objection was designedly or unnecessarily made.
(i) All questions including question relating
to right, title or interest in the goods seized arising between the parties to
such proceeding or their representatives and relevant to the adjudication of
the claim or objection, shall be determined by the Commissioner dealing with
the claim or objection.
(j) Upon the determination of the question
referred to in clause (i), the Commissioner shall, in accordance with such
determination:-
(i) allow the claim or objection and
release the seized goods either wholly or to such extent as he thinks fit, or
(ii) disallow the claim or objection, or
(iii) pass such order as, in the circumstances
of the case, he deems fit.
(k) Where any claim or objection has been
adjudicated upon under clause 0) or where the Commissioner refuses to entertain
a claim or objection under the proviso to clause (h), any such order made shall
be deemed to be an order relating to assessment of tax against a dealer under
section 20 and shall be subject to the same condition as to appeal, revision or
any other remedy under this Act.
(7) Where the Commissioner, apprehends any
resistance to entry, search or seizure of goods he may for reasons to be
recorded in writing, requisition the services of any police officer of the
State Government, having jurisdiction over the local area in which such entry,
search or seizure is to be made, to assist him for all or any of the purposes
specified in sub‑section (3) or clause (a) of sub‑section (5) or
clause (a) of sub‑section (6) and it shall be the duty of such police
officer to comply with such requirement.
(8) The Commissioner while making entry,
search and seizure under this section shall unless otherwise expressly provided
by or under this Act exercised the same power and follow the same procedure as
are exercised by and are required to be followed by a Police Officer in
relation to entry, search and seizure. under the provisions of the Code of
Criminal Procedure, 1973 (No. 2 of 1974).
(1) With a view to identify dealers who are
liable to pay tax under the Act, but have remained unregistered, the
Commissioner shall, from time to time, cause a survey of unregistered dealers
to be taken.
(2) For the purpose of the survey, the
Commissioner may, by general or special notice, require any dealer or class of
dealers to furnish the names, addresses and such other particulars as he may
find necessary relating to the persons and dealers who have purchased any goods
from or sold any goods to such dealer or class of dealers during any given
period.
(3) For the purpose of survey, the Commissioner
may call for details and particulars regarding the services provided by public
utilities and financial institutions including
banking companies which he is of the opinion will be
relevant and useful for the purposes of the survey. He may from time to time
cause the results of the survey to be published in any manner that he thinks
fit so, however, as not to disclose or indicate the identity of any particular
unregistered dealer identified during the survey.
(4) The Commissioner may, for the purposes of
the survey, enter any place where a dealer is carrying business, but is
unregistered or has not applied for grant of the certificate of registration,
whether such place will be principal place of business or not of such business
and require any proprietor, employee or any other person who may at that time
and place be attending in any manner to, or helping in, in 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, stock or other valuable particulars or things which
may be found therein, and
(iii) to furnish such information as he may
require as to any matter which may be useful for, or relevant to any
proceedings under this Act.
Explanation:
For the purpose of this section, a place where the person is engaged in
business will also include any other place in which the person engaged in
business or the said employee or other person attending or helping in business
states that any of the books of accounts or other documents or any part of the
cash, stock or other valuable articles or things relating to business are kept.
(5) The Commissioner shall enter the place
where the person is carrying on business only during the hours at which such
place is open for business and in case of the said place or any other place,
only after sunrise and before sunset. The Commissioner may make or cause to be
made extracts or copies from books of accounts and other documents inspected by
him, make an inventory of any cash, stock or other valuable articles or things
checked or verified by him and record the statement of any person which may be
useful for or relevant to any proceedings under this Act.
(6) The Commissioner, in exercise of the
powers under this section, shall on no account, remove or cause to be removed
from the place, where he has entered any books of accounts, other documents or
any cash, stock or other valuable articles and things.
57.
Establishment of check posts and
erection of barriers
(1) The State Government and/or the
Commissioner if it or he is satisfied that it is necessary so to do with a view
to prevent or check evasion of tax under this Act may, by notification, setup
or erect check post or barriers at such place or places within the State
excluding railway premises, as may be specified in the notification:
PROVIDED
that the Commissioner shall not set up a check post or erect a barrier for a
period exceeding six months at a time.
(2) (a) An
officer not below the rank of an Assistant Commercial Tax Officer shall be in‑charge
of the check post (hereinafter referred to as the check post officer) and shall
be assisted by the other category of officers.
(b) Subject to the other provisions of this
section a check post officer shall exercise all powers conferred on him under
this section.
(3) The driver or person incharge of any
vehicle or the owner or person incharge of the goods carried in a vehicle
(hereinafter referred to as the transporter) transporting such goods as may be
notified by the State Government in this behalf (hereinafter referred to as the
notified goods) shall carry with him an invoice, bill or challan or any other
document by whatever name called, relating to the notified goods being trans
ported in the vehicle, issued by the consignor of the goods giving such
particulars as may be prescribed.
(4) (a) Every
transporter transporting any notified goods shall, before crossing any check
post or barrier set up or erected under sub‑section (1), deliver to the
check post officer a declaration duly signed by the consignor in such manner,
in such form and containing such particulars as may be prescribed. A separate
declaration shall be filed in respect of the consignment or consignments
relating to each consignee where the goods are being imported into Madhya
Pradesh and of each consignor where the goods are being sent outside the State.
No declaration in relation to goods to be delivered in Madhya Pradesh shall be
accepted if the consignee in Madhya Pradesh is shown or described as
"Self" unless the full particulars and address of the person who will
take delivery of the goods at the destination in Madhya Pradesh are furnished.
(b) The form of declaration specified in
clause (a) shall be obtained by a registered dealer in the prescribed manner
and on payment of the prescribed fee.
(5) The transporter shall stop the vehicle at
every check post or barrier and keep it stationary for so long as may
reasonably be required by the check post officer and allow him to search the
vehicle and inspect the notified goods and documents referred to in sub‑section
(3) and shall, if so required, given him his name and address and the names and
addresses of the owner of the vehicle and of the consignor and the consignee of
the goods.
(6) The check post officer shall have the
power to detain or seize such of the notified goods or the vehicle alongwith
the goods:-
(a) in respect of which there is not
declaration under sub‑section (4) or any such declaration filed is false
or incorrect either in respect of the kind of goods or the quantity or value
thereof, or
(b) as are not shown in the documents referred
to in sub‑section (3) or in respect whereof there are no such documents;
or
(c) in respect whereof the said documents
are false or are reasonably suspected to be false.
(7) If the check post officer, after
searching the vehicle and verifying the documents or the declaration, finds any
omissions referred to in sub‑section (6), he may presume, until contrary
is proved that an attempt was being made to facilitate the evasion of tax in
respect of such goods and he may, after recording the reasons therefore in
writing seize such goods or the vehicle alongwith the goods in such manner as
may be prescribed.
(8) After seizing the notified goods under
sub‑section (7) the check post officer shall prepare a list of all such
goods bearing his own signature and signature of the transporter and shall take
all the measures for their safe custody.
(9) The check post officer seizing the
notified goods or the vehicle alongwith the goods under sub‑section (7)
shall also record the statement of the transporter on all facts of the case and
also obtain the particulars about the consignor or consignee of the goods and
the vehicle seized. The reasons, if any, for violation of any provision of this
section shall also be recorded.
(10) If after considering the statement of the
transporter the check post officer is satisfied that the explanation is
satisfactory and that there was no attempt to evade payment of tax in respect
of the goods seized, he shall record his findings giving reasons therefore and
release the goods or the vehicle alongwith the goods to the transporter in such
manner as may be prescribed.
(11) If the check post officer is not so
satisfied, he shall serve on the transporter a notice in the prescribed form
requiring him to show cause ordinarily within fifteen days of the service of
the notice, why a penalty of a sum not exceeding five times the amount of tax
which would have been payable if the notified goods were sold within the State
on the date of such seizure, as may be specified in the notice, should not be
imposed upon him.
(12) The officer seizing the notified goods, at
any time during the pendency of the proceedings under sub‑section (13),
may on furnishing of security in the form of cash security or irrevocable bank
guarantee for such amount being deposited as, in his opinion, would be
sufficient to cover the penalty likely to be imposed, release the goods or/and
the vehicle in favour of the transporter.
(13) The check post officer after taking into
consideration the explanation, if any, of the transporter and giving him an
opportunity of being heard, shall, if he is satisfied, for reasons to be
recorded in writing with the explanation and the statement of the transporter,
discharge the notice and release the goods or the vehicle with or without the
goods seized, in favour of the transporter in such manner as may be prescribed.
If the said officer is not so satisfied, he shall record his finding
accordingly, giving reasons therefore and shall pass an order imposing such
penalty not exceeding the sum specified in the notice, as he may deem fit:
PROVIDED
that the amount of penalty shall not be less than three times but not exceeding
five times of that amount of tax which would have been payable if the goods
were sold within the State.
(14) A copy of the order imposing penalty under
sub‑section (13) shall be served on the transporter.
(15) The penalty or such part thereof as remains
after adjustment of any amount deposited under sub‑section (12) shall be
deposited in the prescribed manner within fifteen days of service of the copy
of order imposing the penalty. In default the check post officer shall cause
the notified goods to be sold in such manner as may be prescribed and apply the
sale proceeds thereof towards the penalty and refund the balance, if any, to
the transporter. If the sale proceeds of the goods are not sufficient to cover
the amount of penalty or the goods cannot be sold despite the efforts made for
the same, the said officer shall cause the vehicle to be sold in the aforesaid
manner and apply the sale proceeds thereof towards the balance of penalty and
refund the balance of such sale proceeds, if any, to the dealer.
(16) Where the officer seizing the goods, at any
time during the pendency of the proceeding under sub‑section (11) or
(13), is of the opinion that the notified goods are subject to speedy and
natural decay or when the expenses of keeping them in custody are likely to
exceed their value, he may cause them to be sold in such manner as may be
prescribed without waiting for the completion of the proceedings relating to
the imposition of penalty and keep the sale proceeds thereof in deposit till
the completion of said proceedings. The amount so kept in deposit shall be
applied towards such penalty, if any, as may be imposed and the balance, if
any, shall be refunded to the transporter according to the provisions of sub‑section
(15).
(17) Every order under sub‑section (13)
shall, subject to the provisions of Sections 46 and 47, be final.
(18) The consignor or the consignee shall
preserve the copy of the declaration and other documents relating to the goods
covered by the declaration for such period as may
be prescribed and produce them before the assessing
authority whenever demanded by it within that period.
58. Transit of goods by road through the
State and issue of transit pass
(1) When a vehicle coming from any place
outside the State and bound for any other place outside the State passes
through the State the driver or other person in‑charge of such vehicle
(hereinafter referred to as transporter) shall obtain in the prescribed form
and manner, a transit pass from the check post officer of the first check post
after his entry into the State and deliver it to the check post officer of the
last check post before his exit from the State, failing which it shall be
presumed that the goods carried in such vehicle have been sold within the State
by the transporter.
(2) The check post officer at the entry point
who issues the transit pass shall intimate the information contained in the
transit pass issued by him to the check post officer of the check post or
barrier near the point from which the transporter declares that the goods shall
be taken out of the State. If within a week of receipt of the transit pass the
vehicle or the goods covered by the transit pass do not report at the exit
point the check post officer of the check post or barrier at the exit point
shall bring immediately this fact to the notice of the check post officer of
the check post or barrier, at the entry point. The latter officer shall then
initiate action to recover the penalty which could have been levied under the
provisions of Section 57 from the transporter.
(3) The provisions of Section 57 shall
mutatis mutandis apply in relation to any goods or any vehicle alongwith the
goods covered by the transit pass.
59.
Power to check goods at the point of
loading and unloading
(1) With a view to verifying the correctness
of the declaration furnished or preventing the furnishing of a false or incorrect
declaration under Section 57, any officer of the Commercial Tax Department, not
below the rank of an Assistant Commercial Tax Officer as authorized by the
Commissioner may inspect the goods at the point of loading or unloading along
with the documents of title to goods and the person owning or for the time
being in‑charge of the vehicle in which goods are transported, shall
render all assistance to such officer for this purpose.
(2) If at the time of loading or unloading of
goods, the officer finds after searching the vehicle and verifying the
documents relating to the goods that:-
(a) goods notified under sub‑section
(3) of Section 57 are being transported in respect of which the transporter has
not filed prescribed declaration at the check post or is not carrying with him
the copy of the prescribed declaration; or
(b) the declaration in respect of any goods
is false or incorrect either in respect of the kind of goods or the quantity of
goods or the value thereof, such officer may presume until the contrary is
proved that an attempt was being made to facilitate the evasion of tax in
respect of such goods and he may, after recording his reasons therefore in
writing, a copy of which shall be forthwith supplied to the transporter, seize
such goods or the vehicle along with the goods;
(c) such officer seizing the goods or the
vehicle along with the goods shall initiate action for imposition of penalty in
accordance with the provisions of Section 57 and for that purpose:-
(i) he shall exercise all the powers
exercisable by the check post officer under that section;
(ii) he shall follow the procedure laid down
therein; and
(iii) the provisions of that section shall
apply mutatis mutandis to such proceedings.
60.
Power to check goods in transit
(1) Every transporter transporting goods by
road from the State of Madhya Pradesh to any place outside the State or from
any place outside the State to any place within the State of Madhya Pradesh,
shall carry with him the copy of the declaration referred to in sub‑section
(4) of Section 57 in respect of the goods notified under sub‑section (3)
of that section whether the check post or the barrier is established on such
road or not.
(2) Every transporter transporting by road
any goods in the State of Madhya Pradesh shall carry with him an invoice, bill
or challan or any other document, by whatever name called, issued by the
consignor of the goods giving such particulars as may be prescribed.
(3) Any officer, not below the rank of an
Assistant Commercial Tax Officer, as may be authorized by the Commissioner, may
for the purposes of this Act, require the transporter to stop the vehicle at
any place and thereupon the transporter shall stop the vehicle and keep it
stationary for, as long as may be required by him and allow him and other
persons assisting him, to search the vehicle and inspect the goods being
carried and all the documents relating to such goods which are in the
possession of the transporter with a view to verifying whether the transporter
is carrying the declaration documents referred to in sub‑sections (1) and
(2) and whether all such documents are legible, correct and complete. Such
officer shall carry out such search and inspection as expeditiously as
possible. The transporter, if so required by that officer, shall also give his
name and address and the names and addresses of the owner of the vehicle, if
the owner is different from the person in charge of the vehicle and the
consignor and consignee of the goods and also their registration certificate
numbers if they are registered under this Act.
(4) If the officer referred to in sub‑section
(3) finds on the inspection of the vehicle that the transporter is not carrying
the documents or the documents being carried are not in order or the
transporter is not carrying a copy of the declaration, he may direct the
transporter to take the vehicle along with the goods and the documents to the
nearest check post or any Commercial Tax Office to be named by him and stop it
and keep it stationary there till such time as may be required for action in
accordance with the provisions of Section 57.
(5) The officer referred to in sub‑section
(3), who stops the vehicle and directs it to go to the nearest check post or
the Commercial Tax Office, shall reach such check post or the Commercial Tax
Office at the earliest and immediately on reaching there initiate action for
seizure of the goods or the vehicle along with the goods and imposition of
penalty in accordance with the provisions of Section 57 and for that purpose-
(i) he shall exercise all the powers
exercisable by the check post officer under that section;
(ii) he shall follow the procedure laid down
therein;
(iii) the provisions of that section shall apply
mutatis mutandis to such proceedings.
61.
Regulation of delivery and carrying
goods away from Railway premises
(1) Any dealer who seeks to import by rail
into the State from any place outside the State any goods specified in Schedule‑II
or to whom such goods are sought to be sent as aforesaid, shall furnish or
cause to be furnished in such office as may be notified by the Commissioner, a
declaration in the prescribed form in duplicate duly filled in and signed by
him for endorsement of such office. On endorsement of the two copies of the
declaration one copy thereof shall be retained by the said office and after
taking delivery, the dealer shall carry the goods away from the railway
premises along with a copy of the declaration duly endorsed by the office
referred to above.
(2) The provision of Section 57shall mutatis
mutandis apply in relation to any vehicle carrying goods referred to in sub‑section
(1) and to any declaration relating thereto.
(1) Every clearing, forwarding or booking
agent or broker or a person transporting goods who in the course of his
business handles documents of title to goods or transports goods or takes
delivery of goods for or on behalf of a dealer and having his place of business
in the State of Madhya Pradesh shall, furnish information about his place of
business to such authority, within such time in such form as may be prescribed.
(2) Every such agent or person shall maintain
true and complete accounts, registers and documents in respect of the goods
handled by him and the documents of title relating thereto and shall furnish
true and complete particulars and information relating to the transaction of
goods of any dealer to any officer appointed under Section 3, not below the
rank of an Assistant Commercial Tax Officer as and when required by him and
shall produce the said accounts, registers and documents before such officer as
and when required by him.
(3) Any agent or person referred to in sub‑section
(1) who contravenes the provisions of
the said sub‑section or sub‑section (2), the Commissioner may, after
giving such agent or person an opportunity of being heard, direct him to pay by
way of penalty :-
(i) one thousand rupees if the
contravention is of the provisions of sub‑section (1) on each occasion of
inspection by any officer referred to in sub‑section (2); and
(ii) not less than three times but not
exceeding five times of the amount of tax payable in respect of the goods
involved in the transactions of a dealer which appears to have been evaded by
such dealer, if the contravention pertains to the provisions of sub‑section
(2).
Explanation:
For the purpose of this section,-
(i) "Clearing, forwarding, booking
agent or broker" shall include a person who renders his services for
clearing, forwarding or booking of or taking delivery of consignment of goods
at railway premises, air cargo, complex containers depot, booking agency, goods
transport company office or any place of loading or unloading of goods or
contrives makes and concludes, bargains and contracts for or on behalf of any
dealer for a fee, reward, commission, remuneration or other valuable
consideration or otherwise;
(ii) "Person transporting goods"
shall, besides the owner, include manager, agent, driver, employee of the
owner, a person‑in‑charge of a place of loading or unloading of
goods or in charge of a goods carrier carrying such goods for dispatch to other
places or gives delivery of any consignment of such goods to the consignee.
63. Power to
call for information from banking companies and non‑banking financial
companies
The
Commissioner or any other person appointed under Section 3 to assist him, not
below the rank of an Assistant Commercial Tax Officer may, for carrying out the
purposes of this Act, require any banking or non‑banking financial
companies or any officer thereof to furnish any information or statement useful
for or relevant to any proceeding under this Act.
(1) Whoever-
(a) collects any
amount by way of tax in contravention of the provisions of Section 12 or sub‑section
(1) of Section 35; or
(b) claims input tax rebate in contravention
of the provisions of sub‑section (1) of Section 14; or
(c) (i) fails
to get himself registered as required by sub‑section (1) or sub‑section
(2) of Section 17; or
(ii) neglects to furnish any information as
required by sub‑section (8) of Section 17; or
(d) fails, without sufficient cause, to
submit any return as required by sub‑section (1) of Section 18 or submits
a false return or furnishes a false statement; or
(e) without reasonable cause fails to pay
the tax due within the time allowed; or
(f) fails to keep accounts or records of
sales or purchases in accordance with any requirement made of him under Section
39; or
(g) fails or neglects to issue bill, invoice
or cash memorandum or to keep or preserve the counterfoil of the bill, invoice
or cash memorandum as required under Section 40; or
(h) knowingly produces incorrect accounts,
registers or documents or knowingly furnishes incorrect information; or
(i) refuses or fails to comply with any
requirement made of him under Section
44 or Section 55; or
(j) (i) fails
to file a declaration under Section 57;
(ii) prevents or obstructs the interception or
search of any vehicle or obstructs inspection of any goods under Section 57;
(iii) prevents or obstructs the interception or
search of any vehicle or obstructs inspection of any goods under Section 59 or
60; (iv) fails to file a declaration under Section 61;
(v) fails to furnish information or produce
accounts, registers and documents under Section 62; or (vi) fails to furnish
information or statements as required by Section 63; or
(k) makes a false statement in a
verification or declaration prescribed under this Act which he either knows or
believes to be false or does not believe to be true, shall, in case of default
and subject to the provisions of Section 67, be punishable with-
(i) (a) imprisonment which may extend to
six months and a fine which may extend to two thousand rupees or equal to the
amount of tax remained to be paid by the dealer whichever is higher, in respect
of offence under clause (b) or (e); and
(b)
imprisonment which may extend to six months and a fine which may extend to two
thousand rupees in respect of offence under clause (d), (h) or (k); and
(ii) imprisonment which may extend to three
months or a fine which may extend to one thousand rupees or both in respect of
offences not covered by clause (i);
and where
the offence in respect of which a fine ha~ been imposed, is a continuing
offence a further fine which may extend to rupees fifty for every day the
offence continues.
Explanation:
For the purpose of liability to punishment under this sub‑section, the
expression "dealer or person" shall mean,-
(a) the partners in relation to a
partnership concern;
(b) the president and secretary of the managing
body in relation to co‑operative society;
(c) the proprietor in relation to a
proprietorship concern;
(d) the karta or manager in relation to
Hindu Undivided Family; and
(e) the secretary, manager and directors in
relation to a company incorporated under the Companies Act, 1956 (No. 1 of
1956).
(2) No court shall take cognizance of any
offence punishable under this Act or any rules made thereunder except with the
previous sanction of the Commissioner and no Court inferior to that of a
magistrate of the first class shall try any such offence.
(3) Notwithstanding anything contained in the
Code of Criminal Procedure, 1973 (No. 2 of 1974) all offences punishable under
this Act shall be cognizable and bailable.
(4) Subject to such conditions as may be
prescribed, the Commissioner may authorize any person appointed under Section 3
to assist him to investigate all offences punishable under this Act.
(5) Every person authorized under sub‑section
(4) shall, in the conduct of such investigation, exercise the powers conferred
by the Code of Criminal Procedure, 1973 (No. 2 of 1974) upon an officer‑in‑charge
of a police station for the investigation of a cognizable offence.
65.
Production of tax clearance
certificate
Any department
or office of the Central Government or other State Governments or any public
sector undertaking of such Governments situated in Madhya Pradesh or the State
Government or any local authority or any public undertaking shall, before
entering into a contract with any dealer for the sale or supply of any goods by
him exceeding rupees three lacs in value require such dealer to produce a tax
clearance certificate in such form, to be issued by such authority, in such
manner for such period and within such time as may be prescribed,
66.
Bar to certain proceedings
Save as
provided in Section 53, no order passed or proceeding initiated under this Act
or the rules made thereunder be called into question in any Civil Court and
save as provided in Sections 46 and 47 no appeal or application for revision
shall lie against any such assessment or order.
67.
Bar of prosecution in certain cases
No
prosecution for contravention of any provision of this Act or of the rules made
thereunder shall be instituted in respect of the same facts on which a penalty
has been imposed under this Act or the said rules, as the case may be, if the
penalty has been paid within a period of six months from the date of service of
the order imposing the penalty.
68. Protection
of persons acting in goods faith and limitation of suit and prosecution
(1) No suit, prosecution or other proceedings
shall lie against any officer or servant of the State Government for any act
done or purporting to be done under this Act or the rules made thereunder
without the previous sanction of the State Government.
(2) No officer or servant of the State
Government shall be liable in respect of any such act, in any civil or criminal
proceeding if the act was done in good faith in the course of the execution of
duties imposed on him or the discharge of functions entrusted to him by or
under this Act.
(3) No suit
shall be instituted against the State Government and no prosecution or suit
shall be instituted against any servant of the State Government in respect of
anything done or intended to be done under this Act unless the suit or
prosecution has been instituted within three months from the date of the act
complained of:
PROVIDED
that in computing the period of limitation under this sub‑section the
time taken for obtaining sanction under sub‑section (1) shall be
excluded.
69.
Disclosure of information by public
servant
(1) All particulars contained in any
statement made, return furnished or accounts or documents produced in
accordance with the provisions of this Act or in evidence recorded under this
Act other than evidence given before a Criminal Court shall, save as provided
in sub‑section (3), be kept confidential and notwithstanding anything contained
in the Evidence Act, 1872 (1 of 1872) no Court shall, save as aforesaid, be
entitled to require any servant of the State Government to produce before it,
any such statement, return, account, document or recorded evidence or any part
thereof or to give evidence before it in respect thereof.
(2) If, save as provided in sub‑section
(3), any servant 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 or with fine which may extend to one thousand
rupees or with both.
(3) Nothing contained in this section shall
apply to the disclosure-
(a) of any such particulars in respect of any
such statement, return, accounts, documents, evidence, affidavit or deposition
for the purpose of any investigation or prosecution under this Act or under the
Act repealed by this Act or under the Indian Penal Code, 1860 (XLV of 1860) or
under any other enactment for the time being in force; or
(b) of any such particulars to any person
entrusted with the administration of this Act for the purposes of carrying out
the object of this Act; or
(c) of any such particulars when such
disclosure is occasioned by the lawful employment under this Act or any process
for the service of any notice or the recovery of any demand; or
(d) of any such particulars to a Civil Court
in any suit to which the Government is a party and which relates to any matter
arising out of any proceeding under this Act, under Act No. 2 of 1959 or the
Act repealed by 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 the
Act repealed by this Act; or
(f) of any such particulars where such
particulars are relevant to any inquiry into the conduct of an official of the
Commercial Tax Department to any person or persons appointed as the
Commissioner under the Public Servant
(Inquiries)
Act, 1850 (XXX of 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 such facts to an officer of the
Central or a State Government as may be necessary for the purpose of enabling
that Government to levy or realize any tax or duty imposed by it; or
(h) of any such particulars, when such
disclosure is occasioned by the lawful exercise by a public servant of his
powers under the Indian Stamp Act, 1899 (11 of 1899) to impound an
insufficiently stamped document; or
(i) of any such particulars where such
particulars are relevant to any inquiry into a charge of misconduct in
connection with any proceedings under this Act or the Act repealed by this Act
against an advocate, tax practitioner, or chartered accountant, to the
authority empowered to take disciplinary action against members practicing the
profession of an advocate, tax practitioner or chartered accountant, as the
case may be; or
(j) of any such particulars to the Director
of Economics and Statistics 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 dealers; or
(k) of such information as may be required
by any officer of department of the Central Government or of a State Government
for the purpose of investigation into the conduct and affairs of any public
servant or by a court in connection with any prosecution of the public servant
arising out of any such investigation.
70.
Determination of disputed questions
(1) The Commissioner,-
(i) either on his own motion on any
question in respect of the rate of tax on any goods may, at any time; or
(ii) if any question is raised by a dealer in
respect of the rate of tax on any goods shall, within six months from the date
of receipt of the application made by the dealer for this purpose in the
prescribed manner and on payment of such fee as may be prescribed,
make an order
determining the rate of tax on such goods in accordance with such procedure as
may be prescribed.
(2) The Commissioner, if the circumstances so
warrant, shall have the power to review any order passed under this section and
pass such order as he deems necessary:
PROVIDED
that,-
(i) no review of an earlier order passed on
application of a dealer shall be made unless a reasonable opportunity of being
heard is given to the dealer who is likely to be adversely affected by the
review, and
(ii) the Commissioner shall not reduce the
rate of tax in review.
(3) Any order
passed by the Commissioner under sub‑sections (1) and (2) shall have a
prospective effect and shall be binding on the authorities referred to in Section
3 in all proceedings under this Act except appeals.
POWER TO MAKE
RULES, REPEAL AND SAVING, TRANSITORY PROVISIONS AND POWER TO REMOVE
DIFFICULTIES
(1) The State Government may, after previous
publication and by notification in the official Gazette, make rules or any
amendments thereto for carrying out the purposes of this Act:
PROVIDED
that if the State Government considers it necessary to bring the rules or any
amendments thereto into force at once, it may make such rules or amendments
thereto, without previous publication in the Official Gazette.
(2) In particular and without prejudice to
the generality of the foregoing power, the State Government may make rules
prescribing,-
(a) all matters which under any provision of
this Act are expressly required to be or may be prescribed under this Act;
(b) civil structure for the purpose of
clause (e) of Section 2;
(c) matters relating to salary and other
conditions of Chairman and members under sub‑section (5) of Section 4;
(d) the limit under sub‑section (1) of
Section 5 and clause (b) of sub‑section (2) of Section 10;
(e) the manner in which proceeding shall be
instituted under sub‑section (1) of Section 6;
(f) the rate for the purpose of
determination of the lumpsum to be paid, the manner in which the lumpsum may be
determined and the time within which and manner in which the payment of such lumpsum may be made under sub‑section
(1) of Section 11;
(g) the manner and period in which input tax
rebate shall be claimed by or be allowed to a registered dealer under Section
14;
(h) (i) the
manner in which a dealer shall get himself registered under sub‑section
(1) and the period within which a dealer shall get himself registered under clause
(a) of sub‑section (2) of Section 17, the form and manner in which the
application for grant of a registration certificate shall be made under sub‑section
(3) of Section 17;
(ii) the form of a registration certificate
under sub‑section (4) of Section 17 and the manner of granting a
registration certificate and verification of the particulars given in the
application for grant of registration certificate under the said section;
(iii) the time within which and the authority to
whom information regarding the changes of business shall be furnished under sub‑section
(8) of Section 17;
(iv) the amount for which the security may be
demanded and the manner of payment of such security under sub‑section
(12) of Section 17;
(i) (1) the
manner of service of notice and the authority to whom, the period for which, the form in which the manner in which and the dates by
which returns shall be furnished under sub‑section (1) of Section 18;
(2) the manner in which and the time within
which revised return shall be furnished under sub‑section (2) of Section
18;
(3) the form and manner in which, the period
for which and the date by which the statement shall be furnished under clause
(b) of sub‑section (1) of Section 18;
(4) the form of notice under clause (b) of
sub‑section (5) of Section 18;
(j) (i) the
conditions and restrictions subject to which assessment may be made for part of
a year;
(ii) the form of notice and manner in which
tax shall be assessed /re‑assessed under sub‑sections (4), (5) and
(6) of Section 20 and re‑assessed under Section 21;
(k) (i) the
fee on payment of which a tax practitioner or a person entitled to appear as a
tax practitioner shall get himself enrolled under sub‑section (3) of
Section 23;
(ii) the form of enrolment certificate under
sub‑section (4) of Section 23;
(1) (i) the
manner in which the time within which and the intervals at which the tax shall
be paid under sub‑section (1) of Section 24;
(ii) the manner in which the amount of tax due
shall be paid to Government under sub‑section (2) of Section 24 and the
terms and conditions subject to which permission for payment by book adjustment
may be granted under sub‑section (4) of Section 24;
(iii) the form of notice to be issued under sub‑section
(5) of Section 24;
(iv) the restrictions and conditions subject
to which further time may be granted by the Commissioner under sub‑section
(7) of section 24;
(v) the manner in which and the period
within which the Commissioner shall inform the dealer or person and the
authority regarding recovery of arrears of tax under sub‑section (11) of
Section N;
(vi) the manner in which and the period for
which and the procedure subject to .which a defaulter may be arrested and
detained under sub‑section (13) of Section 24;
(vii) the form of notice and the manner in which
and time within which the tax payable in advance shall be paid under sub‑section
(3) of Section 25;
(viii) the manner in which any amount deducted by
the purchaser or the person letting out the contract shall be paid and adjusted
under sub‑sections (4) and (5) of Section 26, the form of certificate to
be issued under sub‑section (3) of Section 26 and the form and manner in
which the authority to whom and the period within which statement shall be
furnished under sub‑section (8) of the said section;
(ix) the form and manner in which and the
authority by whom the certificate shall be issued under Section 27;
(x) the form of notice to be given under sub‑section
(1) of Section 28;
(m) (i) the
form of notice to be given under sub‑section (3) of Section 35;
(ii) the form of the notice and the manner of
publication of the notice under sub‑section (5) of Section 35;
(iii) the form of application in which refund
may be claimed under sub‑section (6) of Section 35;
(n) the manner in which, the refund shall be
made under sub‑section (1) of Section 37;
(o) the date by which the accounts shall be
got audited and the form and manner in which and the time within which report
of audit shall be furnished under Section 39;
(p) the particular which shall be given in
the bill, invoice, cash memorandum, issued under section 40;
(q) the restrictions and conditions subject
to which the Commissioner may delegate under section 41, his powers and duties
under this Act;
(r) the prescription of further powers of
authorities under clause (v) of sub‑section (1) of Section 43;
(s) (i) the
manner in which appeal may be filed under Section 46 and sub‑sections (4)
and (6) of Section 47;
(ii) the procedure to be followed by the Appellate
Deputy Commissioner or the Appellate Board in disposing of appeals under sub‑section
(6) of Section 46;
(iii) the form of notice under sub‑section
(3) of section 47;
(iv) the procedure for and other matters
including fees incidental to the disposal of appeals, applications for revision
or rectification of mistake under Section 46,47 or 54 and other miscellaneous
applications or petitions for relief under this Act;
(t) the value of the Court fee stamps which
an appeal or application for revision shall bear, under Section 49;
(u) the form of notice to be issued under
sub‑section (2) of Section 52;
(v) the form of notice to be given under
clause (ii) of the proviso to sub‑section (1) of section 54;
(w) (i) the
conditions subject to which the Commissioner may require the production of
accounts, register or documents or to furnish any other information under sub‑section
(3) of Section 55;
(ii) the form of notice to be served under
clause (b) of sub‑section (6) of Section 55;
(iii) the manner in which goods shall be
disposed off under clause (f) of sub-section (6) of Section 55;
(a) the
manner in which check posts be set up or barriers be erected the manner in
which and the fee on payment of which the declaration shall be obtained, the
form and manner in which a declaration and other documents to be delivered or
filed, the manner in which goods shall be seized or released the form of notice
to be served, the manner in which penalty shall be deposited, the manner in
which the goods seized shall be sold, the period for which the declaration and
other documents shall be preserved by the consignee under section 57;
(b) the
rejections subject to which any vehicle may be intercepted under section 57;
(c)(i) the form and manner in which transit pass
shall be obtained under section 58;
(ii) the form and the manner in which the
date by which and authority to whom the particulars of goods transported shall
be furnished under section 61;
(d) the
authority to whom, the time within which and the form in which information
shall be furnished under section 62;
(x) the conditions subject to which the
Commissioner may authorize the persons appointed under section 3 to assist him
to investigate under sub‑section (4) of Section 64 all offences under
this Act;
(y) the form and the manner in which, the
authority by whom, the time within which and the period for which tax clearance
certificate shall be issued under section 65;
(z) the form and manner in which application
shall be made to the authority and the procedure according to which the
authority shall pass an order under section 70;
(a‑1) (i) the manner and period in which input tax
rebate shall be claimed or be allowed under section 73;
(ii) the
form and manner in which and the period within which the particulars of the
stock of goods shall be furnished under sub‑section (1) of Section 73;
(b‑1) (i) how and within what time applications,
information and notice shall be made, furnished or served under this Act;
(ii) the
duties and powers of officers appointed for the purpose of enforcing the
provisions of this Act; and
(iii)
general regulation of the procedure to be followed and the form to be adopted
in the proceedings under this Act.
(3) The power to make rules under this
section shall include the power to give retrospective effect from a date not
earlier than the date of commencement of this Act to the rules or any one of
them.
(4) In making any rule, the State Government
may direct that-
(a) a breach thereof shall be punishable
with fine not exceeding five hundred rupees, and if the offence is a continuing
one, with a fine not exceeding twenty five rupees for every day the offence
continues; and
(b) in respect of contravention of any rule,
the Commissioner may impose a penalty not exceeding five hundred rupees:
PROVIDED
that no such penalty shall be imposed without giving the person concerned a
reasonable opportunity of being heard.
(5) All rules made under this section shall,
as soon as may be after they are made, be laid on the table of Legislative
Assembly.
The Madhya
Pradesh Vanijyik Kar Adhiniyarn, 1994 (No. 5 of 1995) shall stand repealed on
the date of coming into force of this Act:
PROVIDED
that-
(i) such repeat shall not‑,
(a) affect the
previous operation of the Act so repealed or Act No. 2 of 1959 repealed by Act
No. 5 of 1995 (hereinafter referred to as a repealed Act) or anything duly done
or suffered, thereunder; or
(b) affect any right, privilege, obligation
or liability acquired, accrued or incurred under the repealed Act, except the
right or privilege accrued under that Act for availing of the facility of
industrial concession by way of exemption from or deferment of payment of tax
by registered dealers who had established new industrial units in the State of Madhya
Pradesh or undertaken expansion, modernization or diversification in such
industrial unit; or
(c) affect any penalty, forfeiture or
punishment incurred in respect of any offence committed against the repealed
Act; or
(d) affect any investigation, legal
proceeding or remedy in respect of any such right, privilege, obligation,
liability,
any such
investigation, legal proceeding or remedy may be instituted, continued or
enforced and any such penalty, forfeiture or punishment may be imposed, as if
this Act had not been passed and the said Act had not been repealed;
(ii) unless it is otherwise expressly
provided anything done or any action taken (including any appointment,
notification, notice, order, rule, form, regulation or certificate) in the
exercise of any power conferred by or under the repealed Act shall, subject to
the provisions of sub‑clause (b) of clause (i), 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 action was taken unless and until it is superseded
by or under this Act and all arrears of tax and other amount due at the
commencement of this Act may be recovered as if they had accrued under this
Act.
(iii) any assessment, appeal, revision or other
proceedings arising under the repealed 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 proceedings 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 repeated Act
or the rules made thereunder as if they were the officer or authority duly
empowered for the purpose under the repealed Act;
(iv) (a) any
application by a dealer or the Commissioner to the Tribunal for making a
reference to the High Court under sub‑section (1) of Section 70 of the
repealed Act; or
(b) any such application made under sub‑section
(2) of Section 70 of the repeated Act; or
(c) any reference made to the High Court
under sub‑section (1) or sub‑section (2) of Section 70 of the
repealed Act, is pending on the date of commencement of this Act shall be
disposed of by the Tribunal or the High Court, as the case may be, in
accordance with the provisions of Section 70 of the repealed Act as if this Act
had not been passed and the said Act had not been repealed;
(v) Notwithstanding anything contained in
clause (i), any appeal, revision or other proceedings arising under the
repealed 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 proceedings in accordance with the provisions of this
Act.
(1) Where a registered dealer holds the stock
of any goods specified in Schedule H on the date of commencement of this Act,
he shall furnish the particulars thereof in such form, within such period, in
such manner and to such authority as may be prescribed.
(2) Where any goods specified in Schedule 11
of this Act held in stock by registered dealer on the date of commencement of
this Act are tax paid goods within the meaning of the Act repealed by this Act,
and are for sale by him on or after the said date within the State of Madhya
Pradesh or in the course of inter‑State trade or commerce, he shall claim
or be allowed in respect of such goods, in such manner and within such period
as may be prescribed, an input tax rebate,-
(i) at the rate specified in column (3) of
Schedule 11, if such goods are sold within the State; and
(ii) at the rate of four percent of the rate
specified in column (3) of Schedule II, whichever is lower, if such goods are
sold in the course of inter‑State trade or commerce.
(3) (a) Where
any goods specified in Schedule 11 of this Act held in stock by a registered
dealer, on the date of commencement of this Act, are goods manufactured out of
tax paid goods other than those specified in Schedule III consumed or used as
raw material or used as packing material or explosives consumed in mining, of
any goods specified in Schedule 11, for sale in the State of Madhya Pradesh or
in the course of inter‑State trade or commerce on or after the said date,
such dealer shall claim or be allowed in such manner and within such period as
may be prescribed, an input tax rebate in respect of such tax paid goods, at
the rate specified in column (3) of Schedule 11 or at the rate at which such
tax paid goods had borne tax under the Act repealed by this Act whichever is
lower.
(b) where any goods specified in Schedule 11
other than those specified in Schedule III held in stock on the date of
commencement of this Act are tax paid goods for consumption or use as raw
material or for use as packing material or explosives for use in mining of any
goods specified in Schedule 11, for sale by him in the State of Madhya Pradesh
or in the course of inter‑State trade or commerce such dealer shall claim
or be allowed, in such manner and within such period as may be prescribed, an
input tax rebate at the rate specified in column (3) of Schedule 11 or at the
rate at which such tax paid goods had borne tax under the Act repealed by this
Act, whichever is lower.
(4) The
sale of tax paid goods within the meaning of the Act repealed by this Act, on
or after the said date shall not be liable to tax under clause (ii) of Section
9 of this Act.
Explanation: For the purpose of this clause the expressions
"raw material" and "tax‑paid goods" shall have the
meaning assigned to them in clauses (r) and (x), respectively, of Section 2 of
the Act repealed by this Act.
74. Powers to remove
difficulties
If any doubt or
difficulty arises in giving effect to any of the provisions of this Act in
consequence of the transition to the said provisions from the corresponding
provisions of the Act repealed by Section 72, the State Government may within
two years from the date of commencement of this Act by order notified in the
Official Gazette of the State make such provision not inconsistent with this
Act as appear to be necessary or expedient for removing the doubt or
difficulty.
[Refer
Section 16]
|
S. No. |
Description
of goods |
Conditions
and Exceptions |
|
(1) |
(2) |
(3) |
|
1. |
Agricultural implements
manually operated or animal driven |
|
|
2. |
Aids and implements used by
handicapped persons |
|
|
3. |
Aquatic feed, poultry feed
and cattle including grass, hay and Straw |
|
|
4. |
Betel leaves |
|
|
5. |
Books, periodicals and
journals |
|
|
6. |
Charakha and Amber Charakha
handlooms and handloom fabrics and Gandhi Topi |
|
|
7. |
Charcoal |
|
|
8. |
Coarse grains other than
paddy, rice and wheat |
|
|
9. |
Condoms and contraceptive |
|
|
10. |
Cotton and silk yam in hank |
|
|
11. |
Curd, lussi, butter milk
and separated milk |
|
|
12. |
Earthen pot |
|
|
13. |
Electrical energy |
|
|
14. |
Firewood |
|
|
15. |
Fishnet and fishnet fabrics |
|
|
16. |
Fresh milk and pasteurized
milk |
|
|
17. |
Fresh plants, saplings and
fresh flowers |
|
|
18. |
Fresh vegetables and fruits |
|
|
19. |
Garlic and ginger |
|
|
20. |
Glass bangles |
|
|
21. |
Human blood and blood
plasma |
|
|
22. |
Indigenous handmade musical
instruments |
|
|
23. |
Kumkum, bindi, alta and
sindur |
|
|
24. |
Meat, fish, prawn and other
aquatic products when not cured or frozen; eggs and livestock and animal hair |
|
|
25. |
National flag |
|
|
26. |
Organic manure including dung (Gober) |
|
|
27. |
Plain paper, commonly known as, cartridge,
paper, non- judicial stamps paper sold by Government
Treasuries, postal items like envelope, post card etc. sold by
Government rupee note, when sold to the Reserve Bank of India
and cheques, loose or in book form. |
|
|
28. |
Raw wool |
|
|
29. |
Semen including frozen semen |
|
|
30. |
Silk worm laying, cocoon and raw silk |
|
|
31. |
Slate and slate pencils |
|
|
32. |
Tender green coconut |
|
|
33. |
Toddy, Neera and Ark |
|
|
34. |
Unbranded bread |
|
|
35. |
Unprocessed and unbranded salt |
|
|
36. |
Water other than- (i) Aerated,
mineral, distilled, medicinal, ionic,
battery, demineralised water and (ii) water
sold in sealed container. |
|
|
S. No. |
Description
of goods |
Rate of
tax u/s 9(i) (percent) |
Rate of
tax u/s 9 (ii) (percent) |
|
(1) |
(2) |
(3) |
(4) |
|
PART I |
|||
|
1. |
Articles of gold and silver
including coins, bullion and Specie |
1 |
- |
|
2. |
Gold and silver ornaments
of personal wear |
1 |
- |
|
3. |
Precious stones such as
diamonds, emeralds, rubies, pearls and sapphires whether they are sold loose
or as forming part of any article in which they are set. |
1 |
- |
|
4. |
Liquor |
25 |
- |
|
PART II |
|||
|
1. |
Agricultural implements, not operated
manually or not driven by animal |
4 |
|
|
2. |
All equipments for communications such as,
Private Branch Exchange (P.B.X.) and Electronic
Private Automatic Branch Exchange (E.P.A.B.X) etc. |
4 |
|
|
3, |
All intangible goods like copyright, patent,
REP license etc. |
4 |
|
|
4. |
All kinds of bricks including fly ash bricks,
refractory bricks and ashphaltic roofing, earthen tiles |
4 |
|
|
5. |
All types of yarn other than cotton and silk
yarn in hank and sewing thread |
4 |
|
|
6. |
Aluminium utensils and enamelled utensils |
4 |
|
|
7. |
Arecanut powder and betel nut |
4 |
|
|
8. |
Bamboo |
4 |
|
|
9. |
Bearings |
4 |
|
|
10. |
Beltings |
4 |
|
|
11. |
Bicycles, tricycles, cycle rickshaws and
parts |
4 |
|
|
12. |
Bitumen |
4 |
|
|
13. |
Bone meal |
4 |
|
|
14. |
Branded bread |
4 |
|
|
15. |
Bulk drugs |
4 |
|
|
16. |
Capital goods |
4 |
|
|
17. |
Castings |
4 |
|
|
18. |
Centrifugal and monobloc submersible pumps
and parts thereof |
4 |
|
|
19. |
Coffee beans and seeds, cocoa pod, green tea
leaf and chicory |
4 |
|
|
20. |
Chemical fertilizers, pesticides, weedicides
and insecticides |
4 |
|
|
21. |
Coir and Coir products excluding coir
mattresses |
4 |
|
|
22. |
Cotton and cotton waste |
4 |
|
|
23. |
Crucibles |
4 |
|
|
24. |
Declared goods as specified in Section 14 of
the Central Sales Tax Act, 1956 |
4 |
|
|
25. |
Edible oils, oil cake and de-oiled cake |
4 |
|
|
26. |
Electrodes |
4 |
|
|
27. |
Exercise books, graph book and laboratory
note book |
4 |
|
|
28. |
ferrous and non-ferrous metals and alloys
non-metals such as aluminium., copper, zinc and extrusions of those |
4 |
|
|
29. |
Fibres of all types and fibre waste |
4 |
|
|
30. |
Flour, atta, maida, suji, besan, etc. |
|
|
|
31. |
Fried grams |
4 |
|
|
32. |
Gur, joggery and edible variety of rub gur |
4 |
|
|
33. |
Hand pumps and spare parts |
4 |
|
|
34. |
Herb, bark, dry plant, dry root, commonly
known as jari booti and dry flower. |
4 |
|
|
35. |
Hose pipes |
4 |
|
|
36. |
Hosiery goods |
4 |
|
|
37. |
Husk and bran of cereals |
4 |
|
|
38. |
Lee |
4 |
|
|
39. |
Incense sticks commonly known as, agarbatti, dhupkathi or dhupbathi |
4 |
|
|
40. |
Industrial cables (High voltage cables, XLPE
cables, Jelly filled cables, optical fibres) |
4 |
|
|
41. |
IT Products including computers, telephone
and parts thereof teleprinter and wireless equipment and parts Thereof |
4 |
|
|
42. |
Kerosene oil sold through PDS |
4 |
|
|
43. |
Leaf plates and cups |
4 |
|
|
44. |
Industrial inputs and packing material as
notified by the State Government |
4 |
|
|
45. |
Murmuralu, pelalu, atukulu, puffed rice, muri |
4 |
|
|
46. |
Newars |
4 |
|
|
47. |
Nepa slabs (Rough flooring stones) |
4 |
|
|
48. |
Ores and minerals |
4 |
|
|
49. |
Paddy, rice, wheat and pulses |
4 |
|
|
50. |
Paper and newsprint |
4 |
|
|
51. |
Pipes of all varieties including G.I. pipes,
C.I. pipes, ductile pipes and PVC pipes |
4 |
|
|
52. |
Plastic Footwear |
4 |
|
|
53. |
Printed material including
diary, calendar etc. |
4 |
|
|
54. |
Printing ink excluding
toner and cartridges |
4 |
|
|
55. |
Processed and branded salt |
4 |
|
|
56. |
Pulp of bamboo, wood and
paper |
4 |
|
|
57. |
Rail coaches engines and
wagons |
4 |
|
|
58. |
Readymade garments |
4 |
|
|
59. |
Renewable energy devices
and spare parts |
4 |
|
|
60. |
Safety matches |
4 |
|
|
61. |
Seeds |
4 |
|
|
62. |
Sewing machines |
4 |
|
|
63. |
Ship and other water
vessels |
4 |
|
|
64. |
Silk fabrics (subject to
abolition of rental agreement) |
4 |
|
|
65. |
Skimmed milk powder |
4 |
|
|
66. |
Solvent oils other than
organic solvent oil |
4 |
|
|
67. |
Spices of all varieties and
forms including cumin seed, aniseed, turmeric and dry chillies |
4 |
|
|
68. |
Sports goods excluding
apparels and footwear |
4 |
|
|
69. |
Starch |
4 |
|
|
70. |
Sugar and Khandsari |
4 |
|
|
71. |
Tamarind |
4 |
|
|
72. |
Textile fabric |
4 |
|
|
73. |
Tobacco |
4 |
|
|
74. |
Tractors, harvestors and
attachment and parts thereof |
4 |
|
|
75. |
Transmission towers |
4 |
|
|
76. |
Umbrella except garden
umbrella |
4 |
|
|
77. |
K. Vanaspati (Hydrogenated
Vegetable oil) |
4 |
|
|
78. |
Vegetable oil including
ginglli oil and bran oil |
4 |
|
|
79. |
Writing instruments |
4 |
|
|
PART III |
|||
|
1. |
Diesel |
- |
25 |
|
2. |
Petrol |
- |
25 |
|
3. |
Aviation turbine fuel other
than those specified in clause (ii-d) of Section 14 of the Central Sales Tax
Act, 1956 (No. 74 of 1956). |
- |
25 |
|
4. |
Natural gas |
|
25 |
|
PARTIV |
|||
|
|
Raw opium |
10 |
15 |
|
2. |
Tendu leaves |
10 |
15 |
|
PART V |
|||
|
1. |
All other goods not covered
by Schedule I and Parts I to IV of this Schedule |
10 |
|
[See
Section 14]
|
S.No. |
Description
of goods |
|
(1) |
(2) |
|
1. |
Coal and Coke |
|
2. |
Petrol, diesel, aviation
turbine fuel, natural gas, kerosene, liquefied petroleum gas and compressed
natural gas , |
|
3. |
Such other goods, as may be
notified by the State Government. |