MEGHALAYA VALUE
ADDED SALES TAX BILL,2002
A Bill to provide for and consolidate the Laws relating to levy of Value Added Tax on Sales or Purchases of goods in the State of Meghalaya.
Be it enacted by the
Legislature of the State of Meghalaya in the Fifty‑third Year of Republic
of India as follows:-
1. Short title, extent and commencement
(1) This
Act may be called the Meghalaya Value Added Sales Tax Act, 2002.
(2) It
extends to the whole of Meghalaya.
(3) It
shall come into force on the 1st of April, 2003.
In this Act, unless the
context otherwise requires,-
(a) "Act" means the Meghalaya
Value Added Sales Tax Art, 2002;
(b) "Appellate Authority" means
the Authority authorized by the State Government under section 17;
(c) "Appointed Day" means the day
on which the Act comes into force;
(d) "Assistant Commissioner" means
Assistant Commissioner of Taxes appointed under sub‑section (1) of
section 15 or deemed to have been appointed under section 60;
(e) "Board" means Meghalaya Board
of Revenue constituted under the Meghalaya Board of Revenue Act or under any
statutory modification or re‑enactment thereof;
(f) "Business" includes-
(i) any trade, commerce or manufacture or execution
of works contract or any adventure or concern in the nature of trade, commerce,
manufacture, whether or not such trade, commerce, manufacture or execution of
works contract or adventure or concern is carried on with the motive to make
gain or profit and whether or not any gain or profit accrues from such trade,
commerce, manufacture, execution of works contract or adventure or concern, and
(ii) any transaction in connection with or
incidental or ancillary to such trade, commerce, manufacture, execution of
works contract, adventure or concern;
(g) "Business Premises" means any
place where a dealer or a transporter purchases, sells, transports, books or
delivers goods and include such place where he stores, processes, produces or
manufactures goods or keeps books of accounts;
(h) "Commissioner" means
Commissioner of Taxes appointed under sub‑section (1) of section 15 or
deemed to have been appointed under section 6;
(i) "Dealer" means any person who
carries on (whether regularly or otherwise) for cash or for commission or for
remuneration or for deferred payment or for other valuable consideration,
within the State of Meghalaya, the business of-
(i) transferring property in goods
otherwise than in pursuance of any contract; or
(ii) transferring
property in goods (whether as goods or in some other form) involved in the
execution of any works contract; or
(iii) delivering
goods on hire‑purchase or any system of payment in installment; or
(iv) transferring the right to use goods for
any purpose (whether or not for any specified period); or supplying by way of
or as part of any service or in any manner of goods being food or any other
article for human consumption or any drink (whether or not intoxicating); or
(v) being an association (whether
incorporated or not) or body of persons, supplying to its members any goods;
and DEALER includes:
(vi) (a) a local authority, a body corporate,
a company, any co‑operative society or other society or a club, a firm, a
Hindu undivided family or other association of persons which carries on such
business;
(b) a commission agent, a
broker, a factor, a del credere agent, an auctioneer, a mercantile agent by
whatever name called who carries on business within the State;
(c) an agent of a non‑resident
dealer or a local branch of a firm or a company or an association of persons,
whether incorporated or not, situated outside the State carrying on such
business within the State; and
(d) a department, or
undertaking or enterprise of the Government of any State or Union Territory or
of the Government of India;
(j) "Deputy Commissioner" means
Deputy Commissioner of Taxes appointed under sub‑section (1) of section
15 or deemed to have been appointed under section 60;
(k) "Goods"
means all kinds of movable property other than newspapers, auctionable claims,
stocks, shares, or securities and includes livestock, all materials, articles,
commodities involved in the execution of any works contract, lease or hire
purchase or those to be used in fitting out, improvement or repair of movable;
(1) "Government" means the Central
Government or the Government of any State or Union Territory in the Indian
Union;
(m) "Input Tax" means tax payable
by the purchasing dealer to the seller;
(n) "Manufacture" with its
grammatical variations and cognate expression means producing, making,
extracting, altering, ornamenting, finishing, assembling or otherwise
processing, treating or adapting any goods, but does not include any such
process or mode of manufacture as may be prescribed;
(o) "Non resident Dealer" means a
dealer who effects purchases or sales of any goods in Meghalaya but who has not
fixed place of business or residence of Meghalaya;
(p) "Official Gazette" means the
Meghalaya Gazette;
(q) "Output Tax" in relation to
any person means the tax charged or chargeable in respect of sale or supply of
goods made by the person;
(r) "Prescribed" means prescribed
by rules made under this Act;
(s) "Purchase" means any transfer
of property in goods to the person making the purchase for cash or deferred
payment or other valuable consideration but does not include a transfer by way
of mortgage, hypothecation, charge or pledge;
(t) "Purchase Price" means the
amount of valuable consideration paid or payable by a person for the purchase
of any goods, less any sum allowed as cash discount, commission or commercial
rebates granted at the time of delivery of such goods but including cost of
freight or cost of delivery or the cost of installation, insurance charges or
any sum charged for anything done by the seller in respect of the goods at the
time of, or before delivery thereof, other than interest, if separately
charged;
(u) "Resale" means a resale of purchased goods-
(i) in the same form in which they were purchased, or
(ii) without using them in the manufacture of any goods, or
(iii) without doing anything to them, which
amounts to, or results in a manufacture;
(v) "Rules" means the rules framed
under this Act,
(w) "Sale" with all its grammatical
variations and cognate expression means any transfer or property in goods,
whether or not in pursuance of a contract, by any person for cash or for
deferred payment or other valuable consideration excluding a mortgage,
hypothecation, charge or pledge on the goods, but includes;
(x) "Sale Price" means the amount
of valuable consideration paid or payable to a dealer for the sale or supply of
goods, less any sum allowed as cash discount according to ordinary trade
practice, but including any amount charged for anything done by the dealer with
or in respect of the goods at the time of or before delivery thereof other
than-
(i) the cost of freight or delivery where
such cost is separately charged, or
(ii) the amount representing the cost of
labour in the execution of any works contract, where such cost of labour shall
be determined on the basis of specifications detailed to that effect in the
deed of contract or in the absence of such specification on the basis of
dealer's accounts produced to the Commissioner's satisfaction or in case the
Commissioner is not satisfied with either of the aforesaid, in the manner as
may be prescribed, or
(iii) amount of tax paid or payable by the
purchaser:
PROVIDED that where the
amount of tax is not separately indicated in the tax invoice, the amount of tax
shall be calculated by multiplying the sale price inclusive of tax by the
"tax fraction" which shall be calculated in accordance with formula,
r /(r+100)
Where 'r' is the percentage
rate of tax applicable to the sale;
(y) "State" means the State of
Meghalaya;
(z) "Tax" means tax payable under
this Act;
(z) (i) "Tax
Invoice" means a document listing the goods sold with the price quantity
value and VAT due issued by a taxable person to another taxable person;
(ii) "Tax Point" means the date on
which a taxable person is required to account for the tax on the sale made by
him;
(iii) "Taxable Goods" means goods
taxable under this Act;
(iv) "Taxable Person" means a person
who is registered or is liable to be registered for VAT and liable to pay tax
under this Act;
(v) "Taxable Sale" means sale which
is taxable under the provisions of this Act;
(vi) "Transport" means any person who
for the purposes of or in connection with or incidental to or in the course of
his business transport or causes to transport goods, or holds goods in custody
for delivery to any person after transportation and includes railway, shipping,
company, air cargo terminal and courier service;
(vii) "Turnover of Purchases" means the
aggregate of the amount of purchase price paid and payable by a dealer in
respect of any purchase of goods made by him during a given period, after
deducting the amount of-
(a) purchase price, if any, refunded to the
dealer by the seller in respect of any goods purchased from the seller and
returned to him within the prescribed period, and
(b) deposit, if any, refunded in the
prescribed period to the dealer by the seller in respect of any goods purchased
by the dealer;
(viii) "Turnover of Sales" means the
aggregate of the amount of sale price received and receivable by a dealer in
respect of any sales of goods made during a given period after deducting the
amount of-
(a) sale price, if any, refunded by the
seller, to a purchaser, in respect of any goods purchased and returned by the
purchaser within the prescribed period,
(b) deposit, if any, refunded in the
prescribed period by the seller to a purchaser in respect of any goods sold by
the dealer,
(c) and includes, where the registration
certificate is cancelled the amounts in respect of sale made before the date of
the cancellation order received or receivable after such date;
(ix) "Works Contract" means and
includes any agreement for carrying out for cash or for deferred payment or for
any other valuable consideration the building construction, manufacture,
processing, fabrication, erection, installation, laying, fitting out,
improvement, modification, repair or commissioning of any movable or immovable
property; and
(x) "Year" means financial year.
Subject to other provisions
of this Act, every dealer-
(a) whose turnover during the year
immediately preceding the commencement of this Act-
(i) exceeded the taxable quantum; or
(ii) liable to pay tax under any of the laws
repealed by this Act or the Central Sales Tax Act, 1956.
(b) to whom clause (a) does not apply and-
(i) whose turnover calculated from the
commencement of any year first exceeds within such year the taxable quantum; or
(ii) who has become liable to pay tax under
the Central Sales Tax Act, 1956; or
(iii) who is registered as a dealer under the
Central Sales Tax Act, 1956 or under this Act at any time after the
commencement of this Act, shall be liable to pay tax in accordance with the
provisions of this Act.
The dealer shall be liable
to pay tax on all sales effected by him-
(a) in case of clause (a) of sub‑section
(1) with effect from the date of commencement of this Act;
(b) in case of sub‑clause (i) of
clause (b) of sub‑section (1) with effect from the date immediately
following the day on which his turnover calculated from the commencement of the
year first exceeds the taxable quantum;
(c) in case of sub‑clause (ii) or
(iii) of clause (b) of sub‑section (1) with effect from the date he
becomes so liable or date registration under this Act, whichever is earlier.
Every dealer who has become
liable to pay tax under this Act, shall continue to be so liable until the
expiry of one year during which his turnover has remained below the taxable quantum
and such further period after the date of such expiry as may be prescribed and
on the expiry of such further period his liability to pay tax shall cease:
PROVIDED that any dealer
whose liability to pay tax under this Act, ceases or his turnover during the
year remains below the taxable quantum, may apply for the cancellation of his
certificate of registration, and on such cancellation, his liability shall
cease:
PROVIDED FURTHER that a
dealer shall remain liable to pay tax till his certificate of registration has
been cancelled.
4. Re‑commencement of liability
Every dealer whose
liability to pay tax under this Act, has ceased under section 3 or whose
certificate or registration has been cancelled, shall, if his turnover
calculated from the commencement of any year, including the year in which the
registration has been cancelled, again exceeds the taxable quantum on any day
within such year, be liable to pay such tax with effect from the date
immediately following the day on which his turnover again exceeds the taxable
quantum, on all sales effected by him after that day.
For the purpose of this
Act, "taxable quantum" means in relation to any dealer who:
(a) imports for sale any goods into
Meghalaya on his own behalf or on behalf of his principal……NIL……
(b) is engaged in any other business
Such amount, not exceeding
50(fifty)thousand rupees, as may be notified by the Government in the Official
Gazette.
Explanation: For the
purpose of computation of tax quantum, the turnover of sales effected by a sale
dealer shall be taken into account irrespective of whether such sales are
taxable under this Act or not.
6. A dealer who deals
exclusively in one or more classes of goods specified in the
Schedule I appended
to this Act shall not be liable to pay any tax under this Act.
Taxes payable by a dealer
or a person: Subject to the provisions of this Act, and to any rules or
notifications, there shall be paid by every dealer or, as the case may be,
every person who is liable to pay tax under this Act, the tax or taxes leviable
in accordance with the provisions of this Act.
Levy of value‑added
sales tax an goods specified in the Schedules appended to this Act Subject to
the provisions of this Act, and Rules, there shall be levied a sales tax on the
turnover of sales of goods specified in the Schedule to be notified in the
Official Gazette at the rate set out against each of such goods in the
Schedules.
PROVIDED that the rate of tax
on packing materials or containers shall be the same at which the goods sold
are chargeable to tax.
Purchase tax payable on
purchase of certain goods: Subject to other provisions of this Act, every
dealer liable to pay tax under the Meghalaya Purchase Tax Act repealed by this
Act, shall, with effect from the appointed day for the purpose of this section,
be liable to pay tax under this Act on all purchases of goods specified in the
Schedule to be notified on the last point of purchase within the State at the
rate set out against each of such goods in the Schedule:
PROVIDED that no tax shall
be levied under this section if the goods purchased are used or consumed in the
execution of works contract or in the manufacture of taxable goods which are in
fact sold.
The sale of goods listed in
the Schedule to be notified in the Official Gazette shall be exempt from tax
subject to conditions and exception set out therein.
(1) Subject to other provisions of this section,
there shall be input tax credit of the amount of tax paid or payable by a
registered dealer in respect of his purchase of taxable goods for resale, in
Meghalaya or for use by him directly in the manufacture of taxable goods in
Meghalaya and containers and other materials for the packing of such goods or
inputs thereof, in Meghalaya for sale in Meghalaya, against the amount of tax
paid or payable by him under this Act on the sales of taxable goods in
Meghalaya.
Explanation: No input tax
credit shall be available to a registered dealer for tax paid or payable at the
time of purchase of goods if such goods are not sold because of any theft, loss
or destruction for any reason, including natural calamity, and if a dealer has
already taken any input tax credit against purchase of suchgoods there shall be
a reverse tax credit at the end of the month in which such goods are stolen,
lost or destroyed.
(2) A registered dealer who intends to claim
input tax credit under sub‑section (1) shall, for the purpose of
determining the amount of input tax credit, maintain accounts, evidence and
such other records as may be prescribed in respect of the purchases and sales
made by him in Meghalaya.
(3) Subject to other provisions of this sub‑section,
a registered dealer who has claimed input tax credit on his purchases and
intends to sell goods in Meghalaya, will get his input tax credit reversed on
the date of transfer of such goods to such other dealer and shall issue a
certificate, as may be prescribed, in favour of such dealer certifying the
amount of input tax credit against purchases of such goods or purchases of
inputs thereof, as the case may be, in Meghalaya and the agent shall be
entitled to get the credit of the same.
(4) No input tax credit under this section
shall be allowed to a registered dealer against his purchases, unless the
amount of tax has been separately charged and shown in the tax invoice issued
to him by a registered dealer from whom purchases of such goods have been made.
(5) No input tax credit under this section
shall be allowed to a registered dealer in respect of tax paid under section 6.
(6) Subject to sub‑section (7), an
input tax credit cannot be claimed by the registered dealer unless the
registered dealer has an original tax invoice for the relevant supply or
purchases.
(7) Where a registered dealer fails to
produce the original tax invoice evidencing the input tax paid, the
Commissioner may, subject to such restrictions and conditions as may be
prescribed, allow an input tax credit for the period in which the credit arises
if the Commissioner is satisfied-
(a) that the failure to produce tax invoice
is not due to any fault of the dealer, and
(b) that the amount of input tax claimed by
the registered dealer is correct.
(8) Subject to other sub‑sections of
this section, input tax credit referred to in sub‑section (1) in relation
to a period shall be determined as follows
That the input tax credit
is the aggregate of input tax paid or payable by the dealer in relation to a
period, less-
(i) input tax paid or payable in respect of
goods returned or rejected by him during such period;
(ii) input tax paid or payable in respect of
goods taxable under this Act or inputs used for manufacturing of such goods, as
the case may be, disposed of otherwise than by way of sale.
(9) Notwithstanding
anything contained under any sub‑section of the section-
(a) the amount of input tax credit shall not
include tax paid or payable in other States or Union Territories on goods brought
into Meghalaya from outside the State.
(b) no input tax credit shall be allowed
against tax paid or payable on goods remaining unsold at the time of stoppage
or closure of business and if a dealer has already taken any input tax credit
against purchase of such stock of goods there shall be a reverse tax credit on
the date of stoppage or closure of such business.
(c) no input tax credit on tax paid or
payable in Meghalaya on purchase of goods or inputs used in manufacturing of
goods in Meghalaya and subsequently sent to other States or Union Territories
otherwise than by way of sale shall be available:
PROVIDED that if a dealer
has already taken input tax credit either in full or in part, there shall be a
reverse credit against each such transfer in the manner as may be prescribed.
(d) no input tax credit shall be allowed
against tax paid or payable on such purchases and under such terms and
conditions as may be prescribed.
(e) for the purpose of determining the
amount of input tax to be reversed under this section any one of the following
methods will be applied:
If goods are purchased
intended for use specified in sub‑section (1) of section 8 and are
subsequently used, fully or partly, for purpose other than those specified under
the said sub‑section, the input tax credit availed at the time of such
purchase, calculated in such manner as may be prescribed, shall be reduced from
the tax credit for the period during which the said utilization otherwise has
taken place.
The net tax credit to which
a registered dealer is entitled shall be determined by the following formula,
namely,
Net tax credit = A + B ‑
C
Where,
A = the amount of input tax credit the dealer
is entitled to under sub ‑ section (1) of section 8.
B = outstanding credit brought forward as
determined under clause (b) of section 11 from the previous period or under sub‑section
(2) of section 13.
C = reverse tax credit as determined under section 9.
11. Input tax credit exceeding tax liability
If a registered dealer's
(other than an exporter) input tax credit determined under section 8 for a
period exceeds tax liability for that period the excess may be set off against
any outstanding tax under this Act.
The excess input tax credit
after adjustment under sub‑section (1) of section 8 may be carried
forward as an input tax credit to the following period or periods.
12. Net tax payable by the dealer
(1) For the purpose of calculating net tax
payable by a registered dealer for a period, the input tax credit as determined
under sub‑section (1) of section 8 shall be allowed set off against the
tax payable by the registered dealer in respect of all taxable sales other than
sales, as may be prescribed, made during that period.
(2) Subject to provisions of section 8, the
net tax payable by a registered dealer for a period is to be calculated
according to the following formula, namely:
A‑B
Where 'A' is the aggregate
of the tax payable by the registered dealer during the period and '13' is the
total input tax credit for the period.
(3) Every registered dealer shall pay in full
net tax payable by him for the period at the time of filing his return in accordance
with section 22(4).
13. Stock brought forward during transition
(1) Within a period of one month of
commencement of this Act, all dealers whose registration has been continued
under section 59 shall furnish a statement of their opening stock of raw
materials, finished goods, goods for resale and capital goods held on the date
of commencement of this Act in such format and to such authorities as may be
prescribed.
(2)
If the said opening stock of goods
has suffered tax under the
Meghalaya Finance (Sales Tax) Act,
is intended to be used for
the purpose specified in sub‑section (1) of section 8.
The amount of tax suffered
under the Act mentioned in clause 9 on such opening stock, determined in such
manner and subject to such conditions and restrictions and up to the extent as
may be prescribed, shall be credited to the dealer and can be availed as
outstanding credit brought forward in terms of section 10 in the first tax
period after the commencement of this Act:
PROVIDED that no tax credit
under this section shall be allowed unless-
(a) the dealer has in his possession, sale
vouchers issued by a dealer registered under the Meghalaya Sales Tax laws
mentioned under sub‑section (2) against the purchases of the said goods;
and
(b) the amount of tax the goods have
suffered at the first point is indicated separately on the said vouchers.
No tax credit under sub‑section
(2) can be availed for opening stock of finished goods, capital goods, and
other goods that were taxable at last point of sale under the Meghalaya Sales
Tax Act held at the time of commencement of this Act.
If the Commissioner
is satisfied that a dealer-
(a) has claimed tax credit for such stock
for which he is not entitled for claiming tax credit as per the provisions of
sub‑section (2) and sub‑section (3); or
(b) has claimed excess tax credit than
allowed under sub‑section (2), the Commissioner may, after providing the
dealer an opportunity of being heard, direct him to pay a penalty equal to
twice the amount of tax credit so claimed.
(1) Where a tax invoice has been issued and
the amount shown as tax charged in the tax invoice exceeds the tax chargeable
under this Act in respect of that sale the registered dealer making the sale
shall provide the purchaser with a credit note containing the requisite
particulars as prescribed.
(2) Where tax invoice has been issued and
the tax chargeable under this Act in respect of the sale exceeds the amount of
tax charged in that tax invoice, the registered dealer making the sale shall
provide the purchaser with a debit note containing the requisite particulars as
prescribed.
In case of goods returned
or rejected by the purchaser, a credit note shall be issued by the selling
dealer to the purchaser and a debit note will be issued by the purchaser to the
selling dealer containing particulars of the transaction as prescribed.
TAXING APPELLATE AND
REVISIONAL AUTHORITIES
AND
ENFORCEMENT BRANCH
(1) For carrying out the purpose of this Act,
the State Government may by notification appoint a person to be the
Commissioner of Taxes, together with such other persons to assist him as it
thinks fit and may specify the area or areas over which they shall exercise
jurisdiction.
(2) Persons appointed under sub‑section
(1) shall exercise such powers as may be conferred and perform such duties as
may be required by or under this Act.
16. Delegation of Commissioner's powers
(1) Subject to such restrictions and conditions
as may be prescribed, the Commissioner may, by order in writing, delegate any
of this powers under this Act to any person appointed to assist him under sub‑section
(1) of section 15.
(2) Notwithstanding anything contained in
sub‑section (1), the Commissioner may transfer any case or matter from
any person appointed under sub‑section (1) to assist him to any other
person so appointed whether such other person has jurisdiction over the area to
which the case or matter relates or not, provided he is otherwise competent to
deal with such case or matter in exercise or performance of the powers or
duties referred to this sub‑section.
(1) The State Government may authorize an
officer, not below the rank of an Assistant Commissioner of Taxes appointed
under sub‑section (1) of section 1~ to exercise the power and perform the
functions of the Appellate Authority under section 29.
The Commissioner of Taxes
appointed under sub‑section (1) of Section 15 shall also exercise the
powers and functions of the revisional authority under section 30 and section
31.
(1) With effect from the appointed day, the
Enforcement Branch constituted under the Meghalaya Sales Tax Law shall be
deemed to have been constituted under this Act for discharging the functions
referred to in sub‑section (3) of this section.
(2) The officers of the Enforcement Branch
shall work under the direction of the Assistant Commissioner of Taxes subject
to over all control of the Commissioner of Taxes.
(3) The Enforcement Branch on information or
on its own motion or where the Commissioner so directs, carry out investigation
or hold inquiry into any case of alleged or suspected evasion of tax as well as
mal practice connected therewith and send a report in respect thereof to the
Commissioner.
REGISTRATION OF DEALER AND
DEMAND OF SECURITY ETC.
20. Compulsory registration of dealers
(1) Subject to the other provisions of this Chapter,
no dealer shall, while being liable to pay tax under section 3 carry on
business as a dealer unless he has been registered and possesses a certificate
of registration:
PROVIDED that a dealer
liable to pay tax under section 3 shall be allowed thirty days' time from the
date from which he is first liable to pay such tax to get himself registered.
(2) Every dealer required by sub‑section
(1) to be registered shall make application in this behalf in the prescribed
manner to the prescribed authority and such application shall be accompanied by
a declaration in the prescribed form duly filled up and signed by the dealer
specifying therein the class or classes of goods dealt in or manufactured by
him.
(3) If the said authority is satisfied that
an application for registration is in order, he shall, in accordance with such
manner, grant registration to the applicant and issue a certificate of
registration in the prescribed form which shall specify the class or classes of
goods dealt in or manufactured by him.
(4) Where the application for registration
is made under this section, the prescribed authority shall grant him the
certificate of registration effective from the date of order granting such
registration.
(5) The prescribed authority may from time to
time amend any certificate of registration in accordance with information
furnished under section 49 or otherwise received, and such amendment will be
made with effect from the date of passing of such order and subject to such
restrictions and conditions as may be prescribed.
(6) When any dealer has been convicted or
has paid composition money under section 41 or section 42, as the case may be,
in respect of any contravention of the provisions of sub‑section (1) of
this section, the prescribed authority shall register such dealer and grant him
a certificate of registration, and such registration shall take effect from the
date of order as if it had been made under sub‑section (3) of this
section of the dealer's application.
(7) When-
a. any business in respect of which a
certificate of registration has been granted to a dealer on an application
made, has been discontinued, or
b. a dealer has ceased to be liable to pay
tax under section 3; or
c. an incorporated body is closed down or
if it otherwise ceased to exist; or
d. the owner of an ownership business dies
leaving no successor to carry on business; or
e. in case of a firm or association of
persons if it is dissolved; or
f. a person or dealer is registered by
mistake; or
g. a dealer fails to furnish return and
pay tax and interest according to such return or returns within the time
extended by the Commissioner upon an application filed for such purpose under
sub‑section (4) of section 22.
The prescribed authority
shall cancel the registration of such dealer. The cancellation of registration
will take effect from the end of the period in which it is cancelled unless it
is to take effect from a different date as ordered by the prescribed authority.
The Commissioner may, at
the time of grant of certificate of registration to a dealer under section 20
or at any time thereafter, for good and sufficient reasons to be recorded in
writing, require the dealer to furnish in the prescribed manner such security
or such additional security as may be specified by him for securing proper and
timely payment of tax or any other such payable by him under this Act.
The Commissioner may, by
order in writing and for good or sufficient reason to be recorded therein, demand
from any person other than a registered dealer who imports into Meghalaya any
consignment of goods, a reasonable security for ensuring that there is no
evasion of tax.
The Commissioner may, by an
order in writing and for good and sufficient reason, demand from any person or
a dealer a reasonable security for proper use and safe custody of the form
referred to in sub‑section (2) of section 33 and obtained from the
prescribed authority.
The
Commissioner may, by order in writing and for good or sufficient reasons to be
recorded therein, forfeit the whole or any part of the security or additional security
referred to in sub‑section (1), sub‑section (2), or sub‑section
(3), as the case may be, furnished by a dealer, registered dealer, undertaking
or person as required by sub‑section (1) or demanded under sub‑section
(2), or sub‑section (3), for-
(i) realizing or recovery of tax or any
other sum due, or
(ii) recovery of any financial loss caused to
the State Government due to negligence or default in not making proper use of,
or not keeping in safe custody, blank or unused forms of way bill.
Where, by reason of any
order under sub‑section (4), the security furnished by a dealer,
registered dealer, undertaking or person is forfeited in whole or is rendered insufficient,
such dealer, registered dealer, undertaking or person shall, on demand by order
of the Commissioner, furnish fresh or further security of the requisite amount
or shall make up the deficiency, as the case may be, in such manner and within
such period as may be specified in such order.
The Commissioner may, on
application by a dealer, registered dealer, undertaking or person, who has
furnished security as required by sub‑section (1) or demanded under sub‑section
(2), or sub‑section (3), refund in the prescribed manner any amount of
security or part thereof if such security is not required for the purposes for
which it was furnished.
Security as required by sub‑section
(1) or demanded under sub‑section (2), subsection (3) or sub‑section
(5) shall be furnished by a dealer, registered dealer, undertaking or person in
such manner and by such time as may be specified in the order requiring to
furnish, or demanding, such security.
No order shall be passed
under this section without giving the dealer, registered dealer, undertaking or
person an opportunity of being heard.
RETURN AND PAYMENT OF TAX,
ASSESSMENT ETC.
22. A. Periodical return and payment of tax and interest
(1) Tax payable under this Act shall be paid
in the manner hereinafter provided at such intervals as may be prescribed.
(2) Every registered dealer shall, in the
prescribed manner, furnish such returns by such dates and to such authority as
may be prescribed.
(3) Any dealer, other than a registered
dealer referred to in sub‑section (2), shall if so required by the
Commissioner by a notice served in the prescribed manner, furnish returns in
accordance with the provisions of sub‑section (2).
(4) Before any dealer furnishes a return
required by sub‑section (2) or sub‑section (3), he shall, in the
prescribed manner, pay into a Government Treasury or the State Bank of India
the full amount of tax due from him under the Act according to such return, and
shall furnish along with such return a receipt from the Treasury or Bank
showing the payment of such amount:
PROVIDED that a registered
dealer shall, subject to such conditions as may be prescribed, pay in the
prescribed manner the tax payable under the Act for any prescribed part of the
period for which a return is required to be furnished under sub‑section
(2) or sub‑section (3) by such date as may be prescribed after the expiry
of the prescribed part of the period as aforesaid:
PROVIDED FURTHER that a
dealer may furnish return within the prescribed date without making payment of
tax either in full or in part subject to such terms and conditions as may be
prescribed.
(5) If any dealer discovers any omission or
any other error in any return furnished by him, he may, at any time before the
date prescribed for the furnishing of the next return by him, furnish a revised
return, and if the revised return shows a greater amount of tax to be due than
what was shown in the original return, it shall be accompanied by a receipt
showing payment of the extra amount in the manner provided in sub‑section
(4).
(6) If the Commissioner-
(a) discovers any error or omission in any
return furnished by a dealer or
(b) has reasons to believe upon information
or otherwise that a dealer has furnished incorrect statement of his turnover of
sales or turnover of purchases or incorrect particulars of his sales or
purchases in any return. He may require such dealer to produce any accounts,
register, statements or documents or to furnish any information regarding
purchases, sales, deliveries, stock of goods or payments made or received or
any other related or incidental matter for the purpose of verification of such
return.
23. Interest payable by dealer
(1) If any dealer does not pay the full
amount of tax payable by him under this Act by the date on which if falls due
as per provisions of the Act, simple interest at the rate of two percentum per
month from the first day of the month next following the said date shall be
payable by him on the amount by which the tax paid, if any, by the aforesaid
due date falls short of the tax payable. No interest under this section shall
be payable if the amount of tax paid by the aforesaid due date is not less than
ninety percentum of the tax payable.
(2) Where any interest payable by any dealer
under the foregoing provisions is not paid in full, the Assessing Officer shall
determine the amount payable by an order in writing.
(3) If as a result of any proceeding under
this Act the amount of tax in respect of which interest is payable by the
dealer under the foregoing provisions is varied the Assessing Officer shall
correspondingly reduce or enhance, as the case may be, the interest so payable.
(1) If no returns are furnished by a
registered dealer in respect of any period by the prescribed date, or if the
Commissioner is not satisfied that the returns furnished are correct and
complete, the Commissioner shall proceed in such manner as 'may be prescribed
to assess to the best of his judgement the amount of tax due from the dealer
and, in making such assessment, shall give the dealer a reasonable opportunity
of being heard; and in the case of failure by a registered dealer to furnish in
respect of any period a return accompanied by a receipt from a Government
Treasury or the State Bank of India, as required under sub‑section (4) of
section 22 by the prescribed date, the Commissioner may, if he is satisfied
that the default was made without reasonable cause, direct that the dealer
shall pay by way of penalty, in addition to the amount of tax so assessed, a
sum not exceeding one and a half times that amount:
PROVIDED that where a
registered dealer brings to the notice of the Commissioner in writing, within
six months from the end of the year that, due to error in fact or in law, an
amount of tax has been paid by him in excess of what was payable by him during
any return period relating to such year, and request the Commissioner for
making assessment under this sub‑section in respect of such year, the
Commissioner may, if he is satisfied on the grounds adduced by such registered
dealer making such assessment, proceed to make assessment in respect of such
year immediately on receipt of notice by the dealer.
(2) Where upon search or seizure of any
accounts, registers or documents, or of any goods of a Dealer registered under
this Act, or upon enquiry or information received or upon verification of
return under sub‑section (6) of section 22 or where refund of any tax,
interest or penalty arises or the Commissioner has reasons to believe that the
dealer has not accounted for the turnover of sales of goods or purchases of
goods as appear from such accounts, registers or documents in the books of
accounts referred to in section 38 or has not shown such turnover in his return
furnished under section 22 in respect of any return period, or has furnished
incorrect statement of his turnover of sales or turnover of purchases or
incorrect particulars of his sales or purchases in any return, the Commissioner
shall, notwithstanding anything contained in sub‑section (1) proceed in
such manner as may be prescribed to assess to the best of his judgement the
amount of tax payable by the dealer in respect of such return period after
giving the dealer a reasonable opportunity of being heard and direct such
dealer to pay the amount of tax so assessed in such manner and by such date as
may be prescribed; the Commissioner may, if he is satisfied that the default
was made without reasonable cause, direct that the dealer shall pay by way of
penalty in addition to the amount of tax so assessed, a sum not exceeding one
and half times that amount.
(3) No penalty under sub‑section (1)
or sub‑section (2) shall be imposed in respect of the same fact for which
a prosecution under section 41 has been instituted and no prosecution would lie
vice versa.
(4) If interest is payable in terms of
section 25 in respect of any period, penalty under sub‑ section (1) or
sub‑section (2) for failure to furnish a return by the prescribed date
for such period shall not exceed fifty percentum of the amount of tax so
assessed.
(5)
Subject to other provisions of this section assessment shall also be
made in cases where business is closed by a dealer. Tax on goods that remain in
stock at the time of cancellation of registration (including capital goods) on
which input tax has already been given credit, shall be assessed and collected
in the manner as may be prescribed.
25. Assessment
of tax payable by dealer other than registered dealers
If upon information which
has come into his possession, the Commissioner is satisfied that any dealer,
who has been liable to pay tax under this Act in respect of any period but has
failed to get himself registered or has not been registered, the Commissioner
shall proceed in such manner as may be prescribed to assess to the best of his
judgement the amount of tax due from the dealer in respect of such period and
all subsequent periods and, in making such assessment, shall give the dealer a
reasonable opportunity of being heard.
26. Payment of tax and penalty
The amount of tax-
(a) due from a dealer where the returns are
furnished without receipt showing full payment of tax, or
(b) assessed under section 24 for a period,
less the sum, if any, already paid by a dealer in respect of the said period,
together with any penalty that may be directed to be paid under section 22 if
any, shall be paid by such dealer into a Government Treasury or the State Bank
of India by such date as may be specified in a notice issued by the
Commissioner in this behalf, and the date to be so specified shall be
ordinarily not less than thirty days from the date of service of such notice.
(1) The Commissioner shall, in the
prescribed manner, refund to a registered dealer, being an exporter of goods,
the amount of tax paid or payable on the purchases of goods or inputs used
directly by him in manufacture in Meghalaya, on being satisfied that goods so
purchased or manufactured were sold outside the territory of India from
Meghalaya.
(2) The Commissioner shall, in the
prescribed manner, refund to consulates and specialized agencies of the United
Nations, the amount of tax paid or payable on the purchases of goods in Meghalaya,
on being satisfied that goods so purchased were for their personal or official
use as may be prescribed.
(3) Subject to other provisions of this Act,
if it is found on assessment or re‑assessment under section 24 or 25 of
the Act, as the case may be, that a dealer has paid tax, interest or penalty in
excess of what is due from him, the Commissioner shall, in the prescribed
manner, refund to such dealer the amount of tax, interest or penalty paid in
excess by him:
PROVIDED FURTHER that such
refund shall be made after adjusting any tax, interest or penalty due from him
under the Act for any period, on the date of passing of order for such refund.
(4) The Commissioner shall, in the
prescribed manner, refund to a certified dealer the amount of input tax paid or
payable by him under this Act on his purchases of plant and machinery,
containers, packing materials and inputs required for direct use in the
manufacture of taxable goods in Meghalaya for sale in Meghalaya.
28. Rectification of Assessments
(1) The authority which made an assessment
or passed an order on appeal or revision in respect thereof may, at any time
within three years from the date of such assessment or order and of its own
motion, rectify any mistake apparent from the record of the case, and shall,
within the like period, rectify any such mistake as has been brought to its
notice by a dealer:
PROVIDED that no such
rectification shall be made having the effect of enhancing the assessment
unless the authority concerned has given notice to the dealer of its intention
so to do and has allowed him a reasonable opportunity of being heard:
1. Where any such rectification has the
effect of reducing the assessment, a refund shall be due to the dealer.
2. Where any such rectification has the
effect of enhancing the assessment, a notice of demand shall be issued for the
sum payable.
(1) Any dealer may, in the prescribed
manner, appeal to the prescribed authority against any assessment within forty‑five
days or such further period as may be allowed by the said authority for cause
shown to his satisfaction from the receipt of a notice of demand in respect
thereof:
PROVIDED that no appeal
shall be entertained by the said authority unless he is satisfied that such
amount of the tax, penalty or interest, as the case may be, as the appellant
may admit to be due from him and such percentage of the disputed tax, as may be
prescribed, has been paid.
(2) Subject to such rules of procedure as may
be prescribed, the appellate authority, in disposing of any appeal under sub‑section
(1), may-
(a) confirm, reduce, enhance or annul the
assessment, or
(b) when such authority is satisfied, for reasons
to be recorded in writing, that it is not practicable or desirable to act in
accordance with the provisions of clause (a) set aside the assessment and
direct the assessing authority to make a fresh assessment after such further
inquiry as may be directed.
(3) While acting in accordance with the
provisions of clause (b) of sub‑section (2), the appellate authority may
set aside any part or parts of an assessment and, if he does so, the assessing authority
shall make a fresh assessment in respect of such part or parts only, and if
remaining part or parts of the previous assessment shall remain unaltered and
valid.
(4) Pending disposal of an appeal referred to
in sub‑section (2), the appellate authority may, on application, at his
discretion and subject to such conditions and restrictions as maybe prescribed,
stay realization of the amount of tax, penalty or interest in dispute wholly or
in part.
Explanation: For the
purposes of this section-
(a) "assessment" includes-
(i) assessment of tax and imposition of penalty under section 24,
(ii) assessment of tax under section 25, and (iii) determination of interest
under section 23;
(b) "notice of demand" means any
notice served in accordance with the provisions of this Act for realization of
the tax, penalty or interest referred to in clause (a).
30. Suo motu revision by the Commissioner
Subject to such rules as
may be made and for reasons to be recorded in writing, the Commissioner may, on
his own motion, revise any, assessment made or order passed by a person
appointed under sub‑section (1) of section 15 to assist him.
31. Revision by Commissioner upon application
Subject to such rules as
may be prescribed and for reasons to be recorded in writing, the Commissioner
may, upon application, revise any order, passed by a person appointed under sub‑section
(1) of section 15 to assist him.
Subject to such rules as
may be made, any assessment made or order passed under this Act or the rules ma
de thereunder by any person appointed under sub‑section (1) of section
15, may be reviewed by the person passing it, upon application or on his own
motion, and, subject to the rules as aforesaid, the Appellate and Revisional
Authority may, in the like manner and for reasons to be recorded in writing,
review any order passed by it, either on its own motion or upon an application:
33. Restriction on movement of goods
(1) To ensure that there is no evasion of
tax, no person shall transport from any railway station, steamer station,
airport, port, post office or any check post set up under section 31 ‑or
from any other place any consignment of goods except in accordance with such
restrictions and conditions as maybe prescribed.
(2) Subject to the restrictions and
conditions prescribed under sub‑section (1) or sub‑section (2), any
consignment of goods may be transported by any person after he furnishes in the
prescribed manner such particulars in such form obtainable from such authority
or in such other form as may be prescribed.
(3) Subject to such restrictions and
conditions as may be prescribed, nothing in sub‑section (1) shall apply
to-
a. duly accredited diplomatic personnel
attached to foreign consulates or other diplomatic offices,
b. organisations and specialised agencies
of the United Nations,
c.
such other persons, organisations or institutions as may be prescribed,
If the State Government is
of the opinion that it is necessary so to do with a view to preventing evasion
of tax in respect of sale or purchase of goods in Meghalaya, it may, by
notification, set up check posts or barriers for carrying out the purposes of
section 33, section 37 at such places within Meghalaya as may be specified in
such notification.
35. Registration
of transporters
For carrying out the
purpose of section33, every transporter, carrier or transporting agent, operating
its transport business relating to taxable goods in Meghalaya, shall be
required to obtain a Certificate of Registration in the prescribed manner from
the Commissioner or any officer appointed under section 33 to assist him, on
payment of such fees as may be prescribed.
36. Maintenance of accounts by transporter, carrier or
transporting agent
Notwithstanding anything
contained in any other law for the time being in force, any transporter,
carrier or transporting agent shall maintain, in the prescribed form, proper
accounts of taxable goods transported by him into, or outside, or within,
Meghalaya on account of any person or dealer, being a consignee or consignor,
as the case may be, and shall, on demand by the Commissioner in relation to
transport of such goods by such transporter, carrier or transporting agent.
37. Inspection, search and seizure of records or documents
(1) The accounts referred to in section 36,
and goods referred to in that section and stored in a godown or warehouse in
Meghalaya, shall be open to inspection by the Commissioner at all reasonable
time.
(2) Where any transporter, carrier or
transporting agent fails to maintain proper account in the prescribed form or
fails to furnish information to the Commissioner as required by sub‑section
(1), the Commissioner may enter and search any place of transporting business
or any other place where such transporter, carrier or transporting agent for
the time being keeps any records or documents in relation to transport of
goods, and the Commissioner may, for reasons to be recorded in writing seize
such records or documents.
(3) Where any transporter, carrier or transporting agent has -
(a) received any consignment of taxable
goods from any person or dealer in Meghalaya for transport of such consignment
to any place outside, or within, Meghalaya, or
(b) transported into Meghalaya any
consignment of taxable goods on account of any person or, dealer and the
Commissioner has information that such person or dealer is not in existence at
the address given in the way bill, tax invoice, consignment note or any
document of like nature in respect of any consignment of goods referred to in
clause (a), or clause (b), the Commissioner may direct the transporter, carrier
or transporting agent, by order in writing, that-
(i) the consignment of goods referred to in
clause (a) shall not be transported outside, or within, Meghalaya, or within,
Meghalaya, or
(ii) the consignment of goods referred to in
clause (b) shall not be delivered, till the matter is investigated into by the
Commissioner or till a period of fifteen days (excluding Sunday or a public
holiday declared under the Negotiable Instruments Act, 1881 (26 of 1881)
expires from the date of communication of such direction to the transporter, carrier
or transporting agent, whichever is earlier.
(4) Where the Commissioner, after giving the
person or dealer referred to in clause (a), or clause (b), as the case may be,
of sub‑section (4), a reasonable opportunity of being heard or after
causing an enquiry about the existence of such person, or dealer, is satisfied
that such person or dealer-
(a) is in existence at the address given in
the way bill, tax invoice, invoice, consignment note or any document of like
nature, the Commissioner shall forthwith withdraw, by an order in writing, his
direction issued under sub‑section (4) to the transporter, carrier or
transporting agent, or
(b) is not in existence at the address given
in the way bill, tax invoice, invoice, consignment note or any document of like
nature, the transport of the consignment of taxable goods by such person or
dealer to any place outside, or within, or into, Meghalaya, shall be deemed to
be in contravention of the provisions of section 34, as the case may be, and
the Commissioner shall seize such consignment of goods under sub section (1)(c)
of section 38.
ACCOUNTS, INSPECTION, SEARCH AND SEIZURE AND POWER TO
CALL FOR INFORMATION
38.(1). In order to enforce a provision of
this Act, the Commissioner or any officer authorized by the Commissioner-
(a) shall have, at all times during normal
working hours and at all reasonable times without any prior notice to any
person full and free access to any premises, place, goods, books, record,
computer or any electronically stored data;
(b) may make an extract or copy from any
book, record or computer‑stored information to which access is obtained
under clause (a);
(c) may seize and confiscate any goods not
accounted for and seize any books or records that, in his opinion, affords
evidence that may be material in determining the liability of any person under
this Act;
(d) may retain any such book or record for a
period of one month for determining a person's liability or for any proceeding
under this Act; in the event this period needs to be extended the permission of
the next higher authority must be obtained for each additional month the book
or record is retained; and
(e) may,
where a hard copy or computer disk of information stored on a computer
is not provided, seize and retain the computer for a period of one month to
copy the information required; in the event this period needs to be extended
the permission of the next higher authority must be obtained for each
additional month such record is retained.
(2) No officer shall exercise the power
under sub‑section (1) of this section of this Act in respect of
residential premises not being shop or business premises without authorization
in writing from the Deputy Commissioner.
(3) The owner, manager, or any other person
on the premises or at the place entered or proposed to be entered under this
section shall provide all reasonable facilities and assistance for the
effective exercise by the Commissioner or any Officer of the powers under this
section of this Act.
(4) A person whose books, records, or
computer have been removed and retained under sub‑ section (1) of this
section of this Act may examine them and make copies or extract‑, from
them during regular office hours under such supervision as the Commissioner or
authorized officer may determine.
(5) The Commissioner or any officer
authorized by the Commissioner may, by notice in writing require any person,
whether or not liable to pay tax under this Act-
(a) to furnish any information that may be
required by the notice; or
(b) to attend at the time and place
designated in the notice for the purpose of being examined on oath by the
Commissioner or by any officer authorized by the Commissioner, concerning the
tax affairs of that person or any other person, and for that purpose the
Commissioner or any authorized officer may require the person examined to
produce any book, record, or computer‑stored information in the control
of the person.
(6) Where the notice requires the production
of a book of record, it is sufficient if that book or record is described in
the notice with reasonable certainty.
(7) A notice duly signed and issued under
this section shall be sent to the person to whom it is directed, or left at the
person's last and usual place of business or abode.
(8) All books of account and documents
referred to in sub‑section (1) and all declarations and other relevant
documents shall be preserved by the dealer for a period of not less than eight
years from the end of the year to which they relate:
PROVIDED that where an
assessment, reassessment, appeal, revision for any period is pending at the end
of the aforesaid period of eight years such books of account, documents and
declarations shall be preserved till such pending proceedings are finally
disposed of.
(1) If any goods are seized under section 37
or 38, the Commissioner or any officer authorised by the Commissioner, by an
order in writing, impose upon the person from whom such goods are seized, or
the owner of such goods, where the particulars of the owner of such goods are
available, or possession, after giving reasonable opportunity of being heard, a
penalty not exceeding fifty percentum of the value of such goods as may be determined
by him in accordance with rules made under this Act.
(2) If the penalty is not paid by the date
specified in the notice issued under sub‑section (1), the Commissioner or
the officer authorised by him, may in such manner and subject to such restrictions
and conditions as may be prescribed, sell the goods so seized in open auction
and remit the sale proceeds thereof to a State Govt. Treasury.
(3) Notwithstanding anything contained in
sub‑section (2), the Commissioner may, subject to such rules as may be
made under this Act, where the goods seized are-
(a) of perishable nature,
(b) required to be used by a specified date,
sell such goods in open
auction before the occurrence of, or expiry of such period as he may consider
fit and proper or, if he is of the opinion that such goods may become unusable
or unsaleable on detention, destroy such goods, if the said goods become
unsaleable before the sale in open auction actually takes place.
(4) The proceeds of sale of the goods under
sub‑sections (2) and (3) shall be applied in the prescribed manner for
payment in the following order of priority-
(a) first for incidental charges, if any, relating to auction sale
of such goods;
(b) secondly, for expenses, if any, for storage of such goods;
(c) thirdly, for penalty imposed under sub‑section (1) and
the balance of the proceeds
of the sale, if any, shall be paid to the owner of the goods or, if his
particulars are not available, to the person from whom such goods were seized
upon application within one year from the date of sale or within such further
period as maybe allowed by the Commissioner for cause shown to his
satisfaction.
(5) Notwithstanding anything contained under
sub‑section (1), (2) or (3), the Commissioner or any officer authorised
by him may, for reason to be recorded in writing, direct release of the goods
seized on such terms and conditions as he may deem fit.
40. Compulsory issue of tax invoice, cash memo or bill
(1) If a registered dealer sells any goods to
any person, he shall issue to the purchaser a serially numbered tax invoice in
the prescribed form, signed and dated by him or his regular employee, showing
such particulars as may be prescribed, and he shall also keep a counterfoil or
duplicate of such cash memorandum or bill, duly signed and dated.
(2) A dealer, not being a registered dealer,
whose turnover of sales has exceeded in any year fifty percentum of the taxable
quantum referred to in sub‑section (5) of section 3,
sells any goods to any
person, he shall issue to the purchaser a serially numbered invoice or cash
memorandum or bill, signed and dated by him or his regular employee, showing
such particulars as may be prescribed, and he shall also keep a counterfoil or
duplicate of such cash memorandum or bill, duly signed and dated:
PROVIDED that if the State
Government is of the opinion that the requirement under this section shall
cause hardship to a certain class or classes of dealers included in sub section
(2) and that such requirement should, subject to fulfillment by any class or
classes of dealers of certain conditions and restrictions to be imposed to
ensure that there is no evasion of tax, be dispensed with, it may prescribe by
rules such class or classes of dealers and such conditions and restriction
subject to which the requirement of sub section (2) in respect of such class or
classes of dealers shall be dispensed with.
If a person or dealer-
(i) being liable to pay tax under this Act, fails to get himself
registered; or
(ii) not being a registered dealer,
represents, when purchasing goods, that he is a registered dealer; or
(iii) being a registered dealer, represents
when purchasing goods or class of goods not covered by his certificate of
registration that such goods are covered by his certificate of registration
that such goods are covered by such certificate; or
(iv) contravenes the terms of any declaration
made by him under the provisions of this Act or violates any condition or
furnishes inaccurate particulars in any document furnished by him under this
Act; or
(v) fails to furnish without reasonable
cause any return or statement as recluired under section 22 in the prescribed
manner and within the prescribed time; or
(vi) fails to pay without reasonable cause the
tax payable by him under sub‑section (1) of section 22 or under any
notice of demand issued under section 26 within the time allowed for such
payment; or
(vii) conceals any part of his gross turnover or
taxable turnover or any particulars thereof or furnishes incorrect particulars
of such turnover in any return or statement furnished under section 22 or make
any incorrect claim for exemption, reduction in the tax payable or other relief
under any provision of this Act; or
(viii) transports any goods in contravention of
the provision of section 33, violates the provisions of section 40.
Violates the
provisions of sub‑section (1) of section 51
(2) Penalties:
The Assessing Officer may
after giving such person or dealer, a reasonable opportunity of being heard, by
an order in writing setting forth such particulars as may be prescribed, direct
that he shall, in addition to any tax or interest payable by him, pay by way of
penalty a sum-
(i) in a case falling under clause (a) not
exceeding the amount of the assessed tax;
(ii) in a case falling under clause (b) or
clause (c) or clause (d) or clause (g) not exceeding one and one‑half
times the amount of tax sought to be thereby evaded;
(iii) in a case falling under clause (e), not
exceeding one‑half of the amount of the assessed tax;
(iv) in a case falling under clause (f), not
exceeding the amount of tax remaining unpaid on the expiry of the time for its
payment;
(v) in a case falling under clause (h), an
amount not exceeding twenty five percentum of the value of the goods;
(vi) in a case falling under clause (i) a sum
equal to double the amount of tax which could have been levied under this Act
in respect of the sales referred to in that section;
(vii) If any person responsible for deducting
tax at source as provided under sub‑section (1) of section 51, fails to
make the deduction or, after making the deduction fails to deposit the amount
so deducted as prescribed under sub‑section (2) of section 51, the
assessing authority may, by an order in writing, after giving such person an
opportunity of being heard, direct such person to pay, by way of penalty, a sum
not exceeding twice the amount deductible under this section besides tax
deductible but not so deducted or, if deducted not so deposited in the Govt.
treasury.
Further, without prejudice
to the provisions of sub‑clause (vii), if any person fails to make
deduction, or after making deduction, fails to deposit the amount so deducted,
he shall be liable to pay simple interest at the rate of two percent per month
on the amount deductible or if deducted but not so deposited, from the date on
which such amount was deductible to the date on which such amount is actually
deposited.
Explanation: For the
purpose of this section, 'assessed tax' means the amount of tax determined as
payable on the basis of an assessment or re‑assessment made under this
Act.
No proceeding for the levy
of penalty for any default under this section shall be commenced after the
expiry of two years from the end of the year during which the proceeding in the
course of which the Assessing Officer is satisfied that such default has been
committed, was completed and the year in which such proceedings became final.
(1) The Commissioner may, either before or
after the institution of proceedings for any offence punishable under section
41 or under any rules made under this Act, accept from any person charged with
such offence by way of composition of offence a sum not exceeding five thousand
rupees or double the amount of tax which would have been payable on the sale or
purchase turnover to which the said offence relates, whichever is greater.
(2) On payment of such sum as may be
determined by the Commissioner under sub‑section (1), no further
proceedings shall be taken against the accused person in respect of the same
offence and any proceedings, if already taken, shall stand abated.
(1) The State Government, for reasons to be
recorded in writing, may remit the whole or part of the amount of the tax or
penalty payable in respect of any period by any registered dealer who has
suffered heavy loss due to any natural calamity.
(2) The State Government may, by rules,
provide that in such circumstances and subject to such conditions as may be
prescribed, a draw back, set off, or a refund of the whole or any part of the
tax paid in respect of any purchase of raw materials under this Act for use by
any dealer in the manufacture of goods for sale, be granted to such dealer.
44. Power of taking evidence on oath, etc.
(1) The authorities specified in Chapter III
of this Act shall, for the purposes of this Act, have the same power as are
vested in a court under the Code of Civil Procedure, 1908 (5 of 1908) when
trying a suit in respect of the following matters, namely:
a. discovery and inspection;
b. enforcing the attendance of any person including
any officer of a banking company and examining him on oath or affirmation,
c. compelling the production of books of
account or other documents;
d. issuing commission.
(2) Subject to any rules made in this behalf,
any authority referred to in sub‑section (1) may impound or retain in his
custody for such period as he may think fit any books of account or other
documents produced before him in a proceeding under this Act:
PROVIDED that a person
appointed to assist the Commissioner under sub‑section (1) of section 3
shall not-
a. impound any books of account or other
documents without recording his reasons for so doing, or
b. retain in his custody any such books or
documents for a period exceeding thirty days (exclusive of holidays) without
obtaining the approval of the Commissioner thereof.
45. Indemnity of Govt. Servant
No suit, prosecution or
other legal proceedings shall lie against any Government servant for anything
which is in good faith done or intended to be done under this Act or the rules
made thereunder.
46. Returns etc. to be confidential
All particulars contained
in any statement made, return furnished or accounts or documents produced in
accordance with this Act, or in any record of evidence given in the course of
any proceedings under this Act, other than the proceedings before a criminal
court, shall save as provided in sub‑section (3) be treated as
confidential and notwithstanding anything contained in the Indian Evidence Act,
1872 ( 1 of 1872), no court shall save as aforesaid be entitled to require any
Government Servant to produce before it any such statement, return, accounts,
documents, or record or any part thereof or to give evidence before it in
respect thereof.
If save as provided in sub‑section
(3), any Government Servant discloses any of the particulars referred to in sub‑section
(1), he shall be punishable with imprisonment which may extend to six months,
and shall also be liable to fine.
Nothing in this section
shall apply to the disclosure of any of the particulars referred to in sub‑section
(1)-
(a) for the purposes of any prosecution
under the Indian Penal Code (45 of 1860), the Prevention of Corruption Act,
1988 (49 of 1988) or this Act or any preliminary inquiry for ascertaining
whether such prosecution lies,
(b) in connection with any suit or
proceeding in a civil court to which the State Government or any person
appointed under this Act is a party and which relates to any matter arising out
of any proceeding under this Act,
(c) where it is necessary to make such
disclosure for the purposed of this Act,
(d) to an officer of Government to levy or
realize any tax or duty imposed by it,
(e) to an officer of Government for the
audit of receipts and refunds of tax, penalty or interest under this Act.
(f) in
connection with an inquiry concerning allegations of corruption or official
misconducts against any Government for the audit of receipts and refund of tax,
penalty or interest under this Act.
(g) in any inquiry into a charge of
misconduct in connection with any proceeding under this Act against any legal
practitioner, chartered accountant or other person entitled to appeal on behalf
of a dealer or person before the taxing authorities under this Act, to the
authority competent to take disciplinary action against such legal
practitioner, chartered accountant or other person,
(h) to any officer of the State Government
to enable such, officer to perform his executive functions relation to the
affairs of the State.
(i) to any person for purposes other than
those referred to in clause (a) clause (b) clause (c) clause (d) clause (g) and
clause (h), if the State Government considers such disclosure necessary in the
public interest.
47. Statement
to be furnished by dealer, transporter, owner or lessee of warehouse, etc.
If, in the opinion of the
State Government, there is appreciable evasion of tax in respect of any goods,
the State Government may, by notification, specify such goods, and thereupon
every person dealing in transporting, carrying, shipping of clearing, forwarding
or warehousing, whether as owner or lessee of a warehouse, such goods, shall
furnish a statement or declaration in such form, within such time, in such
manner, and for such period, as may be specified in the notification.
48. Information to be furnished by dealers regarding changes of
business
(1) If any dealer:-
(a) sells or otherwise disposes of his
business or any part of his business of effects or comes to know of any change
in the ownership of his business, or discontinues his business or changes his
place of business or opens a new place of business, or
(b) discontinues or changes his warehouses
or opens a new warehouse, or changes the name or nature of his business or
effects any change in the class or classes of goods in which he carries on his
business and which is or are specified in his certificate of registration, or
(c) in the case of a company, effect any
change in the constitution of its board of directors he shall, within the
prescribed time and in the prescribed manner, inform the prescribed authority
accordingly and if any such dealer dies, his legal representative shall, in the
like manner, inform the said authority.
49. Statements, accounts or declarations to be furnished by
dealers
(1) Every registered dealer shall, in the manner
as may be prescribed, submit before the prescribed authority such statements,
accounts or declarations within such time as may be prescribed and shall verify
that such statements, accounts or declaration are true to the best of his
knowledge and belief.
(2) If a registered dealer fails to submit
statements, accounts or declarations referred to in sub‑section (1), he
shall be liable to pay a penalty not exceeding Rupees twenty five thousand for
each time of default, in the manner as may be prescribed.
If, in the opinion of the
State Government, it is necessary to obtain information relating to transfer of
goods otherwise than by way of sale in Meghalaya, it may by notification call
upon dealers or such class or classes of dealers as may be specified in the
notification to furnish such information relating to such goods, in such
manner, at such intervals, for such period and to such authority as may be
specified in the notification.
51. Special provisions relating to deduction of tax at source
Notwithstanding
anything contained in any other provisions of this Act-
(1) Every person (excluding an individual,
Hindu undivided family, a firm or a company not under the control of the
Government) responsible for making any payment or discharging any liability on
account of any amount payable for the transfer of property in goods (whether as
goods or in some other form) involved in a work contract for the transfer of
the right to use any goods for any purpose.
(2) Every person responsible for paying sale
price or consideration or any amount purporting to be the full or part payment
of sale price or consideration in respect of any sale or supply of goods liable
to tax under this Act to the Government or to a company, corporation, board,
authority, undertaking or any other body by whatever name called, owned,
financed or controlled wholly or substantially by the Government shall at the
time of credit to the account of or payment to the payee of such amount in
cash, by cheque, by adjustment or in any other manner whatsoever, deduct tax
therefrom in the prescribed manner at the rate specified in the Schedule to the
Act in respect of sale or supply of goods or transfer of the right to use any
goods and at the rate of four percentum of such sum being paid in respect of
works contract:
PROVIDED that no deduction
shall be made under this sub‑section where the amount paid or credited by
such person in any financial year does not exceed the prescribed amount.
(3) Any tax deducted under sub‑section
(1) shall be paid to the account of the State Government in such manner and
within such time as may be prescribed.
(4) The person making any deduction of tax
under sub‑section (1) and paying it to the account of the State
Government shall issue a certificate of tax deduction to the payee in such
manner in such form and within such time as may be prescribed.
(5) Any tax deducted under sub‑section
(1) and paid to the account of the State Government shall, on production of the
certificate of tax deduction under sub‑section (3) by the payee be deemed
to be tax paid by the payee for the relevant period and shall be given credit
in his assessment accordingly.
(6) No interest or penalty shall be imposed
or no recovery proceedings against the dealer/payee shall be initiated in
respect of tax deducted under sub‑section (1):
PROVIDED that the recovery
proceeding under sub‑section (2) of section 41 against the person concerned
who has deducted the tax but not deposited into Government Treasury shall be
drawn up by the Assessing Officer under whose jurisdiction the office of the
person falls with prior approval of the Commissioner.
Where the amount of tax,
interest, penalty or other sum payable under sub‑section (1) of section
26 remains unpaid, it may be recovered as an arrear of land revenue and for this
purpose the State Government may by notification in the Official Gazette
empower the Commissioner or any person appointed to assist the Commissioner
under sub‑section (1) of section 15 to exercise the power under the
Meghalaya Land and Revenue Regulation (Assam Land and Revenue Regulation, 1886
as adapted) for the purpose of recovering the sums.
53. Bar to proceeding in Civil Courts
No suit shall be brought in
any civil court to set aside or modify any assessment made or any order passed
under this Act or the rules made thereunder and no prosecution, suit or other
proceeding shall lie against the Government or any officer of the Government
for anything in good faith done or intended to be done under this Act or the
rules made thereunder,
54. Power of State Government to prescribe rates of fees
(1) Fees payable upon a memorandum of appeal
or application for review or revision, or upon any other miscellaneous
application or petition for relief shall be such as may be prescribed:
PROVIDED that any fees
prescribed under this section shall not exceed one thousand rupees.
(2) The fees as aforesaid shall be paid in
court‑fee stamps to be affixed to the memorandum of appeal, application
for review or revision or other miscellaneous application or petition, as the
case may be, referred to in sub‑section (1).
55. Power of State Government to amend schedules
(1) If the State Government is of the opinion
that it is expedient in the interest of general public so to do, he may, by
notification in the Official Gazette, add to, or omit from, or otherwise amend,
the First, the Second, the Third, the Fourth, the Fifth, or the Sixth schedule
retrospectively and thereupon the said Schedule shall be deemed to have been
amended accordingly
(2) The State Government may amend the said
Schedules retrospectively if such amendment does not prejudicially affect the
interest of any dealer and it does not violate the principles of equity.
56. Power of State Government to make rules
(1) The State Government may, by notification,
make rules with prospective or retrospective effect, for carrying out the
purposes of this Act.
(2) In particulars and without prejudice to
the generality of the foregoing power, such rules may provide for all or any of
the matters which under any provision of this Act are required to be prescribed
or to be provided for by the rules.
(3) In making any rules under this section,
the State Government may direct that a breach thereof shall be punishable with
fine not exceeding five hundred rupees and, when the offence is a continuing
one, with a daily fine not exceeding twenty‑five rupees during the
continuance of such offence.
57. Power of State Government to remove difficulties
If any difficulty arises in
giving effect to any of the provisions of this Act, the State Government may,
by order, not inconsistent with the provision of this Act, remove the
difficulty:
PROVIDED that no such order
shall be made after the expiry of a period of two years from the appointed day.
(1) Notwithstanding anything contained in
any other law for the time being in force, no Government, local authority,
educational institution, or corporation or body corporate established by or
under a Central or State Act shall place order with, or make purchases of any
goods from, any dealer or make any payment to such dealer for such purchases,
unless the Commissioner certifies in the prescribed manner that such dealer-
(i) has no liability to pay tax or has not
defaulted in furnishing any return or returns together with the receipted
challan or challans showing payment of all tax payable under this Act or the
Central Sales Tax Act, 1956 (74 of 1956),
(ii) has not defaulted in making payment of
tax otherwise payable by, or due from, him under this Act or the Central Sales
Tax Act, 1956 (74 of 1956), or
(iii) has made satisfactory provision for
securing the payment of tax by furnishing bank guarantee in favour of the
Commissioner or otherwise, as the case may be.
TRANSITION, REPEAL AND
SAVINGS
Any registration
certificate issued under the Meghalaya (Sales Tax) Act, the Meghalaya Purchase
Tax Act, being a registration certificate in force immediately before the
appointed day shall insofar as the liability to tax under sub‑section (1)
of section 3 of this Act exists, be deemed on the appointed day to be the
certificate or registration issued under the Act, and accordingly the dealer
holding such registration certificate immediately before the appointed day,
shall until the certificate is duly cancelled, be deemed to be a dealer liable
to pay tax under this Act and to be a registered dealer under this Act and all
the provisions of this Act shall apply to him as they apply to a dealer liable
to pay tax under this Act.
The Meghalaya Sales Tax,
Act, the Meghalaya Finance (Sales Tax) Act, the Meghalaya Purchase Tax Act are
hereby repealed:
PROVIDED that such repeal
shall not effect the previous operation of the said Acts, or any right, title,
obligation or liability already acquired, accrued or incurred thereunder and
subject thereto, anything done or any action taken including any appointment,
notification, notice, order, rule, form or certificate in the exercise of any
powers conferred by or under the said Acts shall be deemed to have been done or
taken in the exercise of the powers, conferred by or under this Act, as if this
Act were in force on the date on which such thing was done or action was taken,
and all arrears of tax and other amounts due at the commencement of this Act
may be recovered as if they had accrued under this Act. Certificate required
under sub‑section (1) shall be made by the dealer referred to in that sub‑section
to the Commissioner and shall be in such form and shall contain such
particulars as may be prescribed.