TAMIL NADU VALUE ADDED TAX BILL, 2003
A Bill to repeal and re‑enact the law relating
to the levy of tax on the sale or purchase of goods in the State of Tamil Nadu
BE it enacted by the Legislative Assembly of the State
of Tamil Nadu in the Fifty‑fourth Year of the Republic of India as
follows:-
1. Short
title and commencement
(1) This
Act may be called the Tamil Nadu Value Added Sales Tax Act, 2003.
(2) It
shall come into force on such date as Government may, by notification, appoint.
In this Act, unless the context otherwise requires,-
(1) "Administrative
Assistant Commissioner" means any person appointed to be an Administrative
Assistant Commissioner of Commercial Taxes under section 48;
(2) "Appellate
Assistant Commissioner" means any person appointed to be an Appellate
Assistant Commissioner of Commercial Taxes under section 48;
(3) "Appellate
Deputy Commissioner" means any person appointed to be an Appellate Deputy
Commissioner of Commercial Taxes under section 48;
(4) "Appellate
Tribunal" means the Tribunal constituted under section 51;
(5) "Assessing
Authority" means any person authorised by the Government or by the
Commissioner to make any assessment under this Act;
(6) "Assets"
mean land, building, plant and machinery, shares, securities and fixed deposits
in banks to the extent to which any of the assets aforesaid does not form part
of the stock‑in‑trade of the business of the dealer;
(7) "Assistant
Commercial Tax Officer" means any person appointed by the Commissioner by
name or by virtue of his office, to exercise the powers of an Assistant
Commercial Tax Officer;
(8) "Assistant
Commissioner (Assessment)" means any person appointed to be an Assistant
Commissioner of Commercial Taxes (Assessment) under section 48;
(9) "Assistant
Commissioner (Check Posts)" means any person appointed to be an Assistant
Commissioner of Commercial Taxes (Check Posts) under section 48;
(10) "Assistant
Commissioner (Enforcement)" means any person appoitit0d ‑to be an
Assistant Commissioner of Commercial Taxes (Enforcement) under section 48;
(11) "Business"
includes-
(i) any
trade or commerce or manufacture or any adventure or concern in the nature of
trade, commerce or manufacture, whether or not such trade, commerce,
manufacture, adventure or concern is carried on with a motive to make gain or
profit and whether or not any profit accrues from such trade, commerce,
manufacture, adventure or concern; and
(ii) any
transaction in connection with, or incidental or ancillary to, such trade,
commerce, manufacture, adventure or concern;
(12) "Capital
goods" means goods specified in the Sixth Schedule;
(13) "Casual
trader" means a person who has, whether as principal, agent or in any
other capacity, occasional transactions of a business nature involving the
buying, selling, supply or distribution of goods in the State, whether for
cash, or for deferred payment, or for commission, remuneration, or other
valuable consideration, and who does not reside or has no fixed place of
business within the State;
(14) "Commercial
Tax Officer" means any person appointed to be a Commercial Tax Officer
under section 48;
(15) "Commissioner"
means any person appointed to be a Commissioner of Commercial Taxes under
section 48;
(16) "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, company, Hindu undivided family, firm or other association of
persons which carries on such business;
(ii) a
casual trader;
(iii) a
factor, a broker, a commission agent or arhati, a delcredere agent or an
auctioneer, or any other mercantile agent by whatever name called, and whether
of the same description as hereinbefore or not, who carries on the business of
buying, selling, supplying or distributing goods on behalf of any principal, or
through whom the goods are bought, sold, supplied or distributed;
(iv) every
local branch of a firm or company situated outside the State;
(v) a
person engaged in the business of transfer otherwise than in pursuance of a
contract of property in any goods for cash, deferred payment or other valuable
consideration;
(vi) a
person engaged in the business of transfer of property in goods (whether as
goods or in some other form) involved in the execution of a works contract;
(vii) a
person engaged in the business of delivery of goods on hire purchase or any
system of payment by instalments;
(viii) a
person engaged in the business of transfer of the right to use any goods for
any purpose (whether or not for a specified period) for cash, deferred payment
or other valuable consideration;
(ix) a
person engaged in the business of supplying by way of, or as part of, any
service or in any other manner whatsoever of goods, being food or any other
article for human consumption or any drink (whether or not intoxicating), where
such supply or service is for cash, deferred payment or other valuable
consideration;
Explanation‑I: A society including a co‑operative
society, club or firm or an association which, whether or not in the course of
business, buys, sells, supplies or distributes goods from or to its members for
cash, or for deferred payment or for commission, remuneration or other valuable
consideration, shall be deemed to be a dealer for the purposes of this Act.
Explanation‑II: The Central Government or any
State Government which whether or not in the course of business, buy, sell,
supply or distribute goods, directly or other‑wise, for cash, or for
deferred payment, or for commission, remuneration or other valuable
consideration, shall be deemed to be a dealer for the purposes of this Act.
Explanation‑III: Each of the following persons or
bodies who dispose of any goods including unclaimed or confiscated or
unserviceable or scrap surplus, old or obsolete goods or discarded material or
waste products whether by auction or otherwise directly or through an agent for
cash or for deferred payment or for any other valuable consideration,
notwithstanding anything contained in this Act, shall be deemed to be a dealer
for the purposes of this Act to the extent of such disposals, namely:-
(i) Port
Trust;
(ii) Municipal
Corporations, Municipal Councils and other local authorities constituted under
any law for the time being in force;
(iii) Railways
administration as defined under the Railways Act, 1989 (Central Act 24 of
1989);
(iv) Shipping,
transport and construction companies; (v) Air Transport Companies and Airlines;
(vi) Any
person holding permit for the transport vehicles granted under the Motor
Vehicles Act, 1988 (Central Act 59 of 1988) which are used or adopted to be
used for hire;
(vii) The
Tamil Nadu State Road Transport Corporations;
(viii) Customs
Department of the Government of India administering the Customs Act, 1962
(Central Act 52 of 1962);
(ix) Insurance
and financial corporations or companies and banks included in the Second
Schedule to the Reserve Bank of India Act, 1934; (Central Act 11 of 1934.)
(x) Advertising
agencies; and
(xi) Any
other corporation, company, body or authority owned or set up by, or subject to
administrative control of the Central Government or any State Government.
(17) "declared
goods" means goods declared by section 14 of the Central Sales Tax Act,
1956, (Central Act 74 of 1956) to be of special importance in inter‑State
trade or commerce;
(18) "Deputy
Commercial Tax Officer" means any person appointed by the Commissioner by
name or by virtue of his office, to exercise the powers of a Deputy Commercial
Tax Officer;
(19) "Deputy
Commissioner" means any person appointed to be a Deputy Commissioner of
Commercial Taxes under section 48;
(20) "Deputy
Commissioner (Enforcement)" means any person appointed to be a Deputy
Commissioner of Commercial Taxes (Enforcement) under section 48;
(21) "Exempted
sale" means a sale of goods on which no tax is chargeable, and no input
tax credit is admissible;
(22) "Goods"
means all kinds of movable property (other than newspapers, auctionable claims,
stocks and shares and securities) and includes all materials, commodities, and
articles including the goods (as goods or in some other form) involved in the
execution of works contract or those goods to be used in the fitting out,
improvement or repair of movable property; and all growing crops, grass or
things attached to, or forming part of the land which are agreed to be severed
before sale or under the contract of sale;
(23) "Government"
means the State Government;
(24) "Input"
means any goods excluding capital goods but including consumables, packing
material and labels for use in the manufacture, assembling, packing or labeling
in connection with such manufacture inside the State, of any goods for sale;
(25) "Input
tax" means tax paid or payable under this Act by any registered dealer on
purchase of any goods for manufacture or re‑sale;
(26) "Joint
Commissioner" ' means any person appointed to be a joint Commissioner of
Commercial Taxes under section 48;
(27) "Legal
representative" shall have the same meaning as assigned to it in clause
(11) of section 2 of Code of Civil Procedure, 1908 (Central Act V of 1908)f
(28) "Manufacture"
with all its grammatical variations and cognate expressions, includes every
processing of goods which brings into existence a commercially different and
distinct commodity;
(29) "Output
tax" means tax payable under this Act by any dealer in respect of sale of any goods;
(30) "Place
of business" means any place in the State where a dealer purchases or
sells goods and includes-
(i) a
warehouse, godown or other place where a dealer stores his goods;
(ii) a
place where the dealer processes, produces or manufactures goods;
and
(iii) a
place where the dealer keeps his accounts, registers and documents.
(31) "registered
dealer" means a dealer registered under this Act;
(32) "registering
authority" with reference to a dealer means the head of the assessment
circle, in whose area of jurisdiction the principal place of business of the
dealer is situated in the State or such other authority authorised by the
Commissioner,
(33) "re‑sale"
means sale of any goods purchased within the State, in the same form in which
they were purchased, or without doing anything to them, which amounts to, or
results in a manufacture;
(34) "re‑seller"
means any dealer who makes a re‑sale;
(35) "reverse
tax" means that portion of input tax of the goods for which credit has
been availed but such goods are used subsequently for any purpose other than re‑sale
or manufacture of taxable goods or use as containers or packing materials
within the State;
(36) "rules"
means rules made under this Act.
(37) "sale"
with all its grammatical variations and cognate expressions means every
transfer of the property in goods (other than by way of a mortgage,
hypothecation, charge or pledge) by one person to another in the course of
business for cash, deferred payment or 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 a works contract;
(iii) a
delivery of goods on hire‑purchase or any system of payment by
instalments;
(iv) a
transfer of the right to use any goods for any purpose (whether or not for a
specified period) for cash, deferred payment or other valuable consideration;
(v) a
supply of goods by any unincorporated association or body of persons to a
member thereof for cash, deferred payment or other valuable consideration;
(vi) 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, and such transfer, delivery
or supply of any goods shall be deemed to be a sale of those goods by the
person making the transfer, delivery or supply and a purchase of those goods by
the person to whom such transfer, delivery or supply is made;
Explanation‑I: The transfer of property involved
in the supply or distribution of goods by a society (including a co‑operative
society), club, firm or any association to its members, for cash, or for
deferred payment or other valuable consideration, whether or not in the course
of business, shall be deemed to be a sale for the purposes of this Act.
Explanation‑II: Every transfer of property in
goods by the Central Government or any State Government for cash or for
deferred payment or other valuable consideration, whether or not in the course
of business, shall be deemed to be a sale for the purposes of this Act.
Explanation‑III: Every transfer of property in
goods including goods as unclaimed or confiscated or unserviceable or scrap
surplus, old, obsolete or discarded materials or waste products, by the persons
or bodies referred to in Explanation‑IR in clause (16) of section 2 of
this Act, for cash or for deferred payment or for any other valuable
consideration whether or not in the course of business, shall be deemed to be a
sale for the purposes of this Act.
Explanation‑IV: The transfer of property
involved in the purchase, sale, supply or distribution of goods through a
factor, broker, commission agent or arhati, delcredere agent or an auctioneer
or any other mercantile agent, by whatever name called, whether for cash or for
deferred payment or other valuable consideration, shall be deemed to be a
purchase or sale, as the case may be, by such factor, broker, commission agent,
arhati, delcredere agent, auctioneer or any other mercantile agent, by whatever
name called, for the purposes of this Act.
Explanation‑V: (a) The sale or purchase of goods
shall be deemed for the purposes of this Act, to have taken place in the State,
wherever 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
(ii) 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.
(b) Where
there is a 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.
Explanation‑VI: Notwithstanding anything to the
contrary contained in this Act, two independent sales or purchases shall, for
the purposes of this Act, be deemed to have taken place-
(a) when
the goods are transferred from a principal to his selling agent and from the
selling agent to the purchaser, or
(b) when
the goods are transferred from the seller to a buying agent and from the buying
agent to his principal, if the agent is found in either of the cases aforesaid-
(i) to
have sold the goods at one rate and to have passed on the sale proceeds to his
principal at another rate, or
(ii) to
have purchased the goods at one rate and to have passed them on to his
principal at another rate, or
(iii) not
to have accounted to his principal for the entire collections or deductions
made by him in the sales or purchases effected by him on behalf of his
principal;
(38) "Schedule"
means the Schedule appended to this Act;
(39) "Special
Additional Tax" means a tax levied or leviable under sub‑section (4)
of section 3, which shall not be entitled to input tax credit;
(40) "Special
Tribunal" means as defined in clause (i) of section 2 of the Tamil Nadu
Taxation Special Tribunal Act, 1992; (Tamil Nadu Act 42 of 1992);
(41) "State"
means the State of Tamil Nadu;
(42) "Tax
fraction" means tax fraction calculated in accordance with the formula as
may be prescribed;
(43) "Taxable
goods" means goods other than exempted goods as specified in the Fourth
Schedule to this Act;
(44) "Taxable
turnover" means the turnover on which a dealer shall be liable to pay tax
as determined after making such deductions from his total turnover and in such
manner as may be prescribed;
(45) "Turnover
tax" means a tax on the total turnover of those dealers who opt for
payment of tax under sub‑section (3) of section 3;
(46) "Territorial
Assistant Commissioner" means any person appointed to be a Territorial
Assistant Commissioner of Commercial Taxes under section 48;
(47) "Total
turnover" means the aggregate turnover in all goods of a dealer at all
places of business in the State, whether or not, the whole or any portion of
such turnover is liable to tax;
(48) "Turnover"
means the aggregate amount for which goods are bought or sold, or delivered or
supplied or otherwise disposed of in any of the ways referred to in clause
(37), by a dealer either directly or through another, on his own account or on
account of others whether for cash or for deferred payment or other valuable
consideration, provided that the proceeds of the sale by a person of
agricultural or horticultural produce, other than tea and rubber (natural
rubber latex and all varieties and grades of raw rubber) grown within the State
by himself or on any land in which he has an interest whether as owner,
usufructuary mortgagee, tenant or otherwise, shall be excluded from his
turnover.
Explanation‑I: "Agricultural or
horticultural produce" shall not include such produce as has been
subjected to any physical, chemical or other process for being made fit for
consumption, save mere cleaning, grading, sorting or dying;
Explanation‑II: Subject to such conditions and
restrictions, if any, as may be prescribed in this behalf-
(i) the
amount for which goods are sold shall include any sums charged for anything
done by the dealer in respect of the goods sold at the time of, or before the
delivery thereof;
(ii) any
cash or other discount on the price allowed in respect of any sale and any
amount refunded in respect of articles returned by customers shall not be
included in the turnover; and
(iii) where
for accommodating a particular customer, a dealer obtains goods from another
dealer and immediately disposes of the same to the said customer, the sale in
respect of such goods shall be included in the turnover of the latter dealer
but not in that of the former;
Explanation‑III: Any amount realised by a dealer
by way of sale of his business as a whole, shall not be included in the
turnover;
Explanation‑IV: The aggregate amount for which
the goods are bought or sold or delivered or supplied through a factor, broker,
commission agent or arhati, delcredere agent or an auctioneer or any other
mercantile agent, by whatever name called, whether for cash or for deferred
payment or other valuable consideration, shall be deemed to be the turnover of
such factor, broker, commission agent, arhati, delcredere agent, auctioneer or
any other mercantile agent, by whatever name called;
(49) "Value
added tax" means a tax on sale of goods at every point in the series of
sales by the registered dealer with the provision of credit of input tax paid
or payable at the previous point of purchase thereof;
(50) "Value
of goods" means the value as ascertained from the purchase invoice or
bills and includes insurance charges, excise duties, countervailing duties,
transport charges, freight charges and all other charges incidental to the
transaction of the goods;
(51) "Year"
means the financial year;
(52) "Works
contract" includes any agreement for carrying out for cash, deferred
payment or other valuable consideration, the building, construction,
manufacture, processing, fabrication, erection, installation, fitting out,
improvement, modification, repair or commissioning, of any movable or immovable
property;
(53) "Zero
rate sale" means a sale of any goods on which no tax is chargeable but
credit for the input tax related to that sale is admissible.
3. Levy
of taxes on sales of goods
(1) Every
dealer, whose total turnover is not less than rupees three lakhs, for a year,
shall pay a tax, on every sale made by him within the State, at the rate
specified in the First Schedule.
(2) The
tax payable under sub‑section (1) by a registered dealer shall be
reduced, in the manner prescribed, to the extent of tax paid on his purchase of
goods specified in Parts A and B of the First Schedule, inside the State, to
the registered dealer, who sold the goods to him:
PROVIDED that the manufacturer in sugar shall not be
entitled to input tax credit on the last purchase of sugarcane:
PROVIDED FURTHER that the manufacturer or processor in
gold, platinum and silver jewellery including articles thereof or bullion or
precious stones, shall not be entitled to input tax credit on the tax paid or
payable on purchases of such goods.
(3) Notwithstanding
anything contained in sub‑section (1), every dealer, who effects second
and subsequent sales of goods purchased within the State to persons other than
dealers and whose total turnover, for a year, is less than rupees ten lakhs,
may, at his option, instead of paying tax under sub‑section (1), pay a
tax, for each year, on his total turnover at such rate not exceeding two per
cent, as may be notified by the Government:
PROVIDED that such dealer shall not be entitled to
input tax credit on goods purchased by him.
(4) Notwithstanding
anything contained in sub‑section (1), every dealer, who deals in the
goods specified in the Second Schedule, shall pay a tax and Special Additional
Tax, for each year, on the sale of such goods, at the point and at the rate
specified therein:
PROVIDED that the dealer, who pays tax under this sub‑section,
shall not be entitled to input tax credit on goods purchased by him.
(5) When
goods are sold together with containers or packing materials, the rate of tax
applicable to such containers or packing materials, as the case may be, shall,
whether the price of the containers or packing materials is charged separately
or not, be the same as those applicable to the goods contained or packed and
the turnover in respect of containers and packing materials shall be included
in the turnover of such goods.
(6) Where
the sale of goods, packed in any container or packed in any packing material,
in which such goods are packed, is exempt from tax, then the sale of such
containers or packing materials shall also be exempt from tax.
4. Levy of tax on right to use any goods
(1) Notwithstanding
anything contained in this Act, every dealer, whose total turnover for a year
is not less than rupees three lakhs, shall pay, for each year, a tax on his
total turnover relating to the business of transfer of right to use any goods
for any purpose, at such rate not exceeding twenty per cent of the taxable
turnover, as may be notified by the Government.
(2) The
taxable turnover of the dealer of the business of transfer of the right to use
any goods for any purpose, shall be arrived at after deducting all amounts, for
which any goods specified in Parts A and B of the First Schedule are purchased
from registered dealers liable to pay tax under this Act and used in the same
form in the transfer of the right to use such goods for any purpose, from the
total turnover of that dealer.
(3) The
dealer, who pays tax under this section, shall not be entitled to input tax
credit on goods purchased by him.
5. Levy
of tax on transfer of goods involved in works contract
(1) Notwithstanding
anything contained in this Act, every dealer, whose total turnover, for a year,
is not less than rupees three lakhs, shall pay, for each year, a tax on his
taxable turnover of transfer of property in goods involved in the execution of
works contract, at such rate not exceeding twenty per cent of the taxable
turnover, as may be notified by the Government.
(2) The
taxable turnover of the dealer of transfer of property in goods involved in the
execution of works contract shall be arrived at after deducting the following
amounts from the total turnover of that dealer:-
(a) all
amounts involved in respect of goods involved in the execution of works
contract, in the course of export of the goods out of the territory of India,
or in the course of import of the goods into the territory of India, or in the
course of inter‑State trade or commerce;
(b) all
amounts for which any goods specified in Parts A and B of the First Schedule
are purchased from registered dealers liable to pay tax under this Act and used
in the execution of works contract in the same form in which such goods were
purchased;
(c) all
amounts relating to the sale of any goods involved in the execution of works
contract which are specifically exempted from tax under this Act;
(d) all
amounts towards 'labour charges and other like charges' not involving any
transfer of property in goods, actually incurred in connection with the
execution of works contract, or such amounts calculated at the rate specified
in column (3) of the Table below, if they are not ascertainable from the books
of accounts maintained and produced by a dealer before the assessing authority.
THE TABLE
|
S1.No. |
Type of
works contract |
Labour or other charges as a percentage value of the works contract |
|
(1) |
(2) |
(3) |
|
1. |
Electrical Contracts |
15 |
|
2. |
All structural contracts |
15 |
|
|
Sanitary contracts |
25 |
|
4. |
Watch and / or clock repair contracts |
50 |
|
5. |
Dyeing contracts |
50 |
|
6. |
All other contracts |
30 |
(e) all
amounts including the tax collected from the customer, refunded to the customer
or adjusted towards any amount payable by the customer, in respect of
unexecuted portion of works contract based on the corrections on account of
measurements or check measurements, subject to the conditions that
(i) the
turnover was included in the return and tax paid; and
(ii) the
amount including the tax collected from the customer, is so refunded or
adjusted, within a period of six months from the due date for filing of the
return in which the said amount was included and tax paid.
(3) The
dealer, who pays tax under this section, shall not be entitled to input tax
credit on goods purchased by him.
6. Levy
of tax on food and drinks
(1) Notwithstanding
anything contained in this Act, every dealer whose total turnover is not less
than rupees ten lakhs, for a year, shall pay tax on the sale of ready to eat
unbranded foods including sweets, savories, unbranded non‑alcoholic
drinks and beverages served in or catered indoors or outdoors by hotels,
restaurants, sweet‑stalls, clubs, caterers and any other eating houses,
at such rate not exceeding twelve and half per cent of the taxable turnover, as
may be notified by the Government.
Explanation‑I: For the purpose of computing the
total turnover under this sub‑section, the purchase turnover liable to
tax under section 12 of this Act, shall be added to the sales turnover.
Explanation‑II: For the purpose of computing the
total turnover under this sub‑section, the sales turnover of all business
units in a common premises sharing the common kitchen or common employees shall
be added to the sales turnover of the business unit having higher turnover.
(2) The
dealer, who pays tax under this section, shall not be entitled to input tax
credit on goods purchased by him.
7. Payment of tax at compound rate by
hotels, restaurants and sweet‑stalls
(1) Notwithstanding
anything contained in sub‑section (1) of section 6, every dealer whose
total turnover is not less than rupees ten lakhs but not more than rupees fifty
lakhs for the year on the sale of ready to eat unbranded foods including sweets,
savories, unbranded non‑alcoholic drinks and beverages served in or
catered indoors or outdoors by hotels, restaurants, sweet‑stalls, clubs,
caterers and any other eating houses, may, at his option, instead of paying tax
in accordance with the provisions of sub‑section (1) of section 6, pay
tax at the rate specified in Part A of the Third Schedule.
Explanation: For the purpose of computing the total
turnover under this sub‑section, the purchase turnover liable to tax
under section 12 shall be added to the sales turnover.
(2) Every
dealer, who opts for payment of tax under sub‑section (1), shall apply to
the assessing authority in such form as may be prescribed, on or before the
30th day of April of the year or within thirty days of commencement of business,
as the case may be, and shall pay tax in advance during the year in monthly
instalments and for this purpose, he shall furnish such return, within such
period and in such manner, as may be prescribed.
(3) The
option so exercised under sub‑section (2) shall be final for that year
and shall continue for subsequent years until the dealer becomes ineligible or
withdraws his option in writing.
(4) A
dealer liable to pay tax under sub‑section (1) shall not collect any
amount by way of tax or purporting to be by way of tax on the sale of food and
drinks.
(5) The
dealer, who pays tax under this section, shall not be entitled to input tax
credit on goods purchased by him.
8. Levy of tax on bullion and jewellery
(1) Notwithstanding
anything contained in this Act,-
(a) every
dealer in bullion, whatever be his turnover for the year, shall pay a tax at
the rate specified in Part C of the First Schedule;
(b) every
dealer in precious stones, gold, platinum and silver jewellery including articles
thereof, whatever be his turnover for the year, shall pay tax at the rate
specified in Part A of the First Schedule.
(2) The
dealer, who pays tax under this section, shall not be entitled to input tax
credit on goods purchased by him.
9. Payment of tax at compound rate by dealers in jewellery
(1) Notwithstanding
anything contained in sub‑section (1) of section 8, every dealer whose
total turnover is not more than fifty lakhs of rupees for the year on the sale
of gold, platinum and silver jewellery including articles thereof may, at his
option, instead of paying tax in accordance with the provisions of sub‑section
(1) of section 8, pay tax at the rate specified in Part B of the Third
Schedule.
(2) Every
dealer, who opts for payment of tax under sub‑section (1), shall apply to
the assessing authority in such form as may be prescribed, on or before the
30th day of April of the year or within thirty days of commencement of
business, as the case may be, and shall pay tax in advance during the year in
monthly instalments and for the purpose, he shall furnish such return, within
such period and in such manner, as may be prescribed:
(3) The
option so exercised under sub‑section (2) shall be final for that year
and shall continue for subsequent years until the dealer becomes ineligible or
withdraws his option in writing.
(4) A
dealer who has been permitted to pay the tax under sub‑section (1) shall
not collect any amount by way of tax or purporting to be by way of tax on the
sale so long as he opts to pay tax as provided under sub‑section (1).
(5) The
dealer, who pays tax under this section, shall not be entitled to input tax
credit on goods purchased by him.
(1) Notwithstanding
anything contained in this Act, every dealer shall pay a tax on the last
purchase of sugarcane, excluding sugarcane setts, in the State, at the rate
specified in Part D of the First Schedule.
Every dealer, who in the course of his business
purchases, from a registered dealer, any goods (the sale or purchase of which
is liable to tax under this Act), in circumstances in which no tax is payable
by that registered dealer on the sale price of such goods under section 3, or
from any other person, shall be liable to pay tax on the purchase price of such
goods, if after such purchase, the goods are not sold within the State or in
the course of inter‑State trade and commerce or in the course of export
out of the territory of India, but are-
(a) sold
or disposed of otherwise; or
(b) consumes
or uses such goods in or for the manufacture of other goods for sale or
otherwise; or
(c) disposes
of such goods in any manner other than by way of sale in the State; or
(d) despatches
or carries them to a place outside the State except as a direct result of sale
or purchase in the course of inter‑State trade or commerce;
(e) installs
and uses such goods in the factory for the manufacture of any goods, and such
tax shall be levied at the sarne rate at which tax under section 3 would have
been levied on the sale of such goods within the State on the date of such
purchase.
12. Deduction
of tax at source in works contract
(1) Notwithstanding
anything contained in this Act, every person responsible for paying any sum to
any dealer for execution of works contract shall, at the time of payment of
such sum, deduct an amount calculated, at the following rate, namely:-
(i) Civil
works contract : Two per cent of the total amount payable to such dealer.
(ii) All
other works contracts: Four percent of the total amount payable to such
dealers:
PROVIDED that no deduction under sub‑section (1)
shall be made where-
(a) no
transfer of property in goods (whether as goods or in some other form) is
involved in the execution of such works contract; or
(b) the
dealer produces a certificate in such form as may be prescribed from the
assessing authority concerned that he has no liability to pay or has paid the
tax under section 5:
PROVIDED FURTHER that no such deduction shall be made
under this section, where the amount or the aggregate of the amount paid or
credited or likely to be paid or credited, during the year, by such person to
the dealer for execution of the works contract including civil works contract
does not or is not likely to, exceed rupees one lakh.
Explanation: For the purpose of this section-
(a) the
term 'person' shall include-
(i)
the Central or a State
Government;
(ii) a
local authority;
(iii) a
corporation or body established by or under a Central or State Act;
(iv) a
company incorporated under the Companies Act, 1956 (Central Act
I
of 1956) including a Central or State Government undertaking;
(v) a
society including a Co‑operative Society;
(vi) an
educational institution; or
(vii) a
trust;
(b) the
term "civil works contract" means civil works of construction of new
building, bridge, road, runway, dam or canal including any lining, tiling,
painting or decorating which is an inherent part of the new construction; but
shall not include any repair, maintenance, improvement or up gradation of such
civil work by means of fixing and laying of all kinds of floor tiles, mosaic
tiles, stabs, stones, marbles, glazed tiles, painting, polishing, partition,
wall panelling, interior decoration, false ceiling, carpeting and extra
fittings, or any manner of improvement on an existing structure.
(2) Any
person making such deduction shall deposit the sum so ' deducted to such
authority, in such manner and within such time, as may be prescribed.
(3) Any
person who makes the deduction and deposit, shall within fifteen days of such
deposit, issue to the same dealer a certificate in the prescribed form for each
deduction separately, and send a copy of the certificate of deduction to the
assessing authority, having jurisdiction over the said dealer together with
such documents, as may be prescribed.
(4) On
furnishing a certificate of deduction referred to in sub‑section (3), the
amount deposited under sub‑section (2), shall be adjusted by the
assessing authority towards tax liability of the dealer under section 5, as the
case may be, and shall constitute a good and sufficient discharge of the
liability of the person making deduction to the extent of the amount deposited:
PROVIDED that the burden of proving that the tax on
such works contract has already been deposited and of establishing the exact
quantum of tax so deposited shall be on the dealer claiming the deduction.
(5) Any
person who contravenes the provisions of sub‑section (1) or sub‑section
(2), shall pay, in addition to the amount required to be deducted and
deposited, interest at two per cent per month of such amount for the entire
period of default.
(6) Where
the dealer proves to the satisfaction of the assessing authority that he is not
liable to pay tax under section 5, the assessing authority shall refund the
amount deposited under sub‑section (2). after adjusting the arrears of
tax, if any, due from the dealer, in such manner as may be prescribed.
(7) The
tax or interest under this section shall become due without any notice of
demand on the date of accrual for the payment by the person as provided under
sub‑sections (1) and (2).
(8) If
any person contravenes the provisions of sub‑section (1) or sub‑section
(2), the whole amount of tax payable shall be recovered from such person and
all provisions of this Act for the recovery of tax including those relating to
levy of penalty and interest shall apply, as if the person is an assessee for
the purpose of this Act.
Where a dealer has refunded the price of the goods
returned by customers together with the tax collected from such customers in
respect of the sale of such goods and where the amount representing the price
refunded by the dealer is included in his turnover, or where the goods sold are
returned for the reason that they were not taken delivery of by the person to
whom they were intended, the dealer shall be entitled to reversal of input tax
paid by him on such goods return or unfructified sale, as the case may be,
subject to the conditions as may be prescribed.
Sale of goods specified in the Fourth Schedule
by any dealer is exempt from tax.
15. Stage
of levy of taxes in respect of imported and exported goods
(1) In
the case of goods imported into the State either from outside the territory of
India or from any other State, the stage of levy of tax shall be deemed to
commence at the stage of the sale effected immediately after the import of such
goods.
(2) In
the case of goods exported out of the State to any place outside the territory
of India or to any other State, the stage of levy of tax shall be deemed to
conclude at the stage of sale effected immediately before the export of such
goods:
PROVIDED that in the case of goods exported out of the
State to any place outside the territory of India, where the sale or purchase
effected immediately before the export of such goods is under sub‑section
(3) of section 5 of the Central Sales Tax Act, 1956, (Central Act 74 of 1956) a
sale or purchase in the course of export, the series of sales or purcha6es of
such goods shall be deemed to conclude at the stage of the sale or purchase
immediately preceding such sale or purchase in the course of export.
(1) For
the purpose of assessment of tax under this Act, the burden of proving that any
transaction or any turnover of a dealer is not liable to tax, shall lie on such
dealer.
(2) For
the purpose of claim of input tax credit under sub‑section (2) of section
3 or reversal of tax credit under section 13, the burden of proving such claim
shall lie on such dealer.
(3) Notwithstanding
anything contained in this Act or in any other law for the time being in force,
a dealer in any of the goods liable to tax in respect of the sale in the State
shall be deemed to be the first seller of such goods and shall be liable to pay
tax accordingly on his turnover of sale relating to such goods, unless he
proves that the sale of such goods had already been subjected to tax under this
Act.
(4) Where
any dealer produces a false bill, vouchers, claim of input tax credit or refund
or other documents with a view to support his claim, the assessing authority
shall on detecting such production direct the dealer producing such document to
pay as penalty a sum-
(i) which
shall be in the case of first such detection fifty per cent of the tax due in
respect of such claim; and
(ii) which
shall be in the case of second or subsequent detections one hundred per cent of
the tax due in respect of such claim:
PROVIDED that no penalty shall be levied without
giving the dealer a reasonable opportunity to show cause against such
imposition.
(1) A
sale as specified under sub‑section (1) of section 5 of the Central Sales
Tax Act, 1956 (Central Act 74 of 1956) shall be zero rate sale.
(2) Sale
of any goods to international organizations listed out in the Fifth Schedule
shall be deemed to be sale of goods in the course of export outside the
territory of India, which shall be zero rate sale.
(3) The
dealer, who makes zero rate sale, shall be entitled to a refund of tax paid or
payable by him on purchase of such goods, in any form, which is so exported,
subject to such restrictions and conditions as may be prescribed.
(4) Where
the dealer has not adjusted the input tax credit relating to zero rate sale
against any tax payable by him or has not made a claim for refund within a
period of one hundred and eighty days from the date of accrual of such input
tax credit or before the closure of the next financial year, whichever is
later, such credit will stand lapsed to the Government.
(1) There
shall be input tax credit of the amount of tax paid or payable under this Act,
by the registered dealer to the seller on his purchases of taxable goods:
PROVIDED that the registered dealer, who claims input
tax credit, shall establish that the tax due on such purchases has been paid by
him in the manner prescribed.
(2) The
input tax credit availed by any registered dealer shall be only provisional and
the assessing authority is empowered to revoke the same if it appears to the
assessing authority to be incorrect, incomplete or otherwise not in order.
(3) Input
tax credit shall be allowed for purchase of goods made within the State from a
registered dealer and which are for the purpose of-
(a) re‑sale
by him within the State; or
(b) use
as input in manufacturing or processing of goods for sale within the State; or
(c) containers,
labels and other materials used for packing of goods for sale or re‑sale
within the State; or
(d) sale
in the course of inter‑State trade or commence to the Registered dealer
under the Central Sales Tax Act, 1956 (Central Act 74 of 1956):
PROVIDED that in respect of sale in the course of
inter‑State trade or commerce, the input tax credit shall be reduced to
such extent, as may be notified by the Government, which shall not exceed four
per cent of tax paid or payable on sale of such goods in the course of inter‑State
trade or commerce under the Central Sales Tax Act, 1956 (Central Act 74 of
1956).
(4)
(a) The registered dealer
shall not claim input tax credit until the dealer receives an original invoice
duly filled, signed and issued by a registered dealer from whom the goods are
purchased, containing such particulars, as may be prescribed, of the sale
evidencing the amount of input tax.
(b) Where
the tax amount is not indicated specifically in such invoice, the input tax
amount shall be determined by reduction of such amount from the invoice by
adopting the tax fraction formula as may be prescribed.
(c) If
the original invoice is lost, input tax credit shall be allowed only on the
basis of a duplicate carbon copy of the invoice obtained from the selling
dealer subject to such conditions as may be prescribed.
(5)
(a) No input tax credit
shall be allowed on the purchases made from other than registered dealer.
(b) No
input tax credit shall be allowed on tax paid or payable in other States or
Union Territories on goods brought into this State from outside the State.
(c) No
input tax credit shall be allowed on tax paid or payable in the State on
purchase of goods-
(i) for
transfer to a place outside the State otherwise than by way of sale; or
(ii) for
use in manufacture of other goods and transfer to a place outside the State
either by branch transfer or transfer to an agent, by whatever name called, for
sale, or in any other manner, except as a direct result of sale or purchase in
the course of inter‑State trade or commerce:
PROVIDED that if a dealer has already taken input tax
credit either in full or in part, there shall be a reverse credit against such
transfer in the manner specified below:-
(i) where
the finished goods are not identifiable with the input used in the manufacture
of such finished goods, the amount of reverse credit is to be calculated by
applying the formula as may be prescribed,
(ii) where
finished goods is identifiable with the inputs used in the manufacture of
goods, the reverse credit will be equivalent to the amounts of tax availed as
input tax credit against such inputs,
(iii) where
a registered dealer fails to identify the sales of goods with the amount of
input tax, then the amount of tax to be reversed may be determined in the
manner prescribed.
(6) If
the input tax credit determined by the assessing authority for a year exceeds
tax liability for that year, the excess may be credited against any outstanding
tax due from the registered dealer.
(7) The
excess input tax credit, if any, after adjustment under sub‑section (6),
shall be carried forward to the next year, in the manner, as may be prescribed.
(8) Where
the input tax credit paid or payable by a registered dealer on his purchase is
more than the tax paid or payable by him on the sale of goods, the assessing
authority shall restrict the credit on such purchases to the extent to which
tax is paid or payable on goods, irrespective of the tax actually paid by such
registered dealer on his purchases.
(9) Every
registered dealer, who availed input tax credit of sales tax paid or payable in
respect of goods returned or rejected, the tax credit so availed shall be
reversed in the manner prescribed.
(10) Where
any registered dealer has availed input tax credit on tax paid or payable
against the purchase of goods remaining unsold at the time of stoppage or
closure of business, the amount of tax availed shall be reversed on the date of
stoppage or closure of such business.
(11)
(a) Every registered dealer,
in respect of purchases of capital goods as specified in the Sixth Schedule,
wholly for use in the manufacture of taxable goods inside the State, shall be
allowed input tax credit in the manner prescribed.
(b) Deduction
of input tax credit, if any, on the purchase of goods specified in the Sixth
Schedule shall be allowed only after the commencement of commercial production
and shall be allowed over a period of three years as may be prescribed. After
the expiry of three years, the un‑availed input tax credit, will stand
lapsed to the Government.
(c) Input
tax credit to a registered dealer on the purchase of goods specified in the
Sixth Schedule shall be admissible over a period of three years frorn the month
of purchase of such goods. After the expiry of three years, the un‑availed
input tax credit, will stand lapsed to the Government.
(d) No
input tax credit shall be allowed on purchase of capital goods, which are used
exclusively in the manufacture of exempted goods specified in the Fourth
Schedule.
(e) No
input tax credit shall be allowed on goods acquired on lease or hire purchase
agreement basis from a financing company.
(12) Where
a dealer has availed credit on inputs and when the finished goods becomes
exempt, credit availed on inputs used therein, shall be disallowed and reversal
of tax credit shall be made.
(13) No
registered dealer shall be entitled to input tax credit in respect of-
(a) purchases
effected from an unregistered dealer; or
(b) purchases
made in the course of inter‑State trade or commerce; or
(c) goods
purchased and accounted for in business but utilized for the purpose of
providing facility to the proprietor or partner or director or whatever
designation called including employees and including in any residential
accommodation; or
(d) purchase
of all automobiles including commercial vehicles, two wheelers and three
wheelers and spare parts for repair and maintenance thereof, unless the
registered dealer is in the business of dealing in such automobiles or spare
parts; or
(e) purchase
of air‑conditioning units unless the registered dealer is in the business
of dealing in such units.
(14) No
input tax credit shall be allowed to any registered dealer in respect of any
goods purchased by him for sale but given away by him by way of free sample or
gift or goods consumed for personal use.
(15) 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-
(i) goods
are not sold because of any theft, loss or destruction, for any reason,
including natural calamity. If a dealer has already taken input tax credit
against purchase of such goods, there shall be a reverse credit at the end of
the month in which such goods are stolen, lost or destroyed; or
(ii) inputs
are destroyed in a fire accident or lost while in storage even before actually
being taken out for use in the manufacture of final products; or
(iii) inputs
are damaged in transit or got destroyed at some intermediary stage of
manufacture.
(16) In
case any registered dealer fails to claim input tax credit in respect of any
transaction of taxable purchase in any month, he shall make the claim not later
than ninety days from the date of purchase.
(17) Where
a registered dealer without entering into a transaction of sale, issues a
invoice, bill or cash memorandum to another registered dealer, with the
intention to defraud the Government revenue or with the intention that the
Government may be defrauded of its revenue, the assessing authority shall,
after making such enquiry as it thinks fit and giving a reasonable opportunity
of being heard, deny the benefit of input tax credit to such registered dealer
who has claimed input tax credit based on such invoice, bill or cash memorandum
from Such date.
(18) Where
the business of a registered dealer is transferred on account of change in
ownership or on account of sale, merger, amalgamation, lease or transfer of the
business to a joint venture with the specific provision for transfer of
liabilities of such business, then, the registered dealer shall be entitled to
transfer the input tax credit lying unutilised in his accounts to such
transferred, sold, merged, leased or amalgamated concern. The transfer of input
tax credit shall be allowed only if the stock of inputs, as such, or in
process, or the capital goods is also transferred to the new ownership on which
credit has been availed of are duly accounted for, subject to the satisfaction
of the assessing authority.
(19) Where
a registered dealer has purchased any taxable goods from another dealer and has
availed input tax credit in respect of the said goods and if the registration
certificate of the selling dealer is cancelled by the appropriate registering
authority, such registered dealer, who has availed by way of input tax credit,
shall pay the amount availed on the date from which the order of cancellation
of the registration certificate takes effect. Such dealer shall be liable to
pay, in addition to the amount due, interest at the rate of two per cent, per
month, on the amount of tax so payable, for the period commencing from the date
of disposal of the goods to the date of its payment.
The tax under this Act shall be assessed, levied and
collected in such manner as may be prescribed.
Every dealer, liable to pay tax under this Act, shall
file return, in the prescribed form showing the total and taxable turnover
within the prescribed period, in the prescribed manner, along with proof of
payment of tax.
21. Procedure
to be followed by assessing authority
(1)
(a) The assessment in
respect of a dealer shall be on the basis of the return relating to his
turnover submitted in the prescribed manner within the prescribed period.
(b) Notwithstanding
anything contained in clause (a) of this sub‑section, a dealer whose
turnover which includes the total turnover under this Act, inter‑State
sales, export sales and stock transfers to outside the State, does not exceed
ten crores of rupees in a year, may make a self‑assessment for that year
in the manner and subject to such conditions as may be prescribed.
(2) Notwithstanding
anything contained in clause (b) of sub‑section (1), five per cent of the
total number of such assessments shall be selected by the Commissioner in such
manner as may be prescribed for the purpose of detailed scrutiny regarding the
correctness of the return submitted by the dealer in this connection and in
such cases, final assessment orders shall be passed in accordance with the
provisions of this Act.
(3) Save
as otherwise provided in this Act and subject to such rules as may be
prescribed, the procedure relating to assessment shall apply to the self
assessment under the provision to subsection (1).
(4) If
no return is submitted by the dealer under sub‑section (1) within the
prescribed period, or if the return submitted by him appears to the assessing
authority to be incomplete or incorrect, the assessing authority shall, after
making such enquiry as i t may consider necessary, assess the dealer to the
best of its judgment, subject to such conditions as may be prescribed:
PROVIDED that before taking action under this sub‑section
the dealer shall be given a reasonable opportunity of proving the correctness
or completeness of any return submitted by him.
(5) In
addition to the tax assessed under sub‑section (1) or (4), the assessing
authority shall, in the same order of assessment passed under sub‑section
(2) or by a separate order, direct the dealer to pay by way of penalty, a sum-
(a) which
shall be, in the case of failure to submit return, one hundred and fifty per
cent of the tax assessed on final assessment; and
(b) which
shall be, in the case of submission of incorrect or incomplete return-
(i) twenty‑five
per cent of the difference of the tax assessed and the tax paid as per return,
if the tax paid as per the return falls short of the tax assessed on final
assessment by not more than five per cent;
(ii) fifty
per cent of the difference of the tax assessed and the tax paid as per return,
if the tax paid as per the return falls short of the tax assessed on final
assessment by more than five per cent but not more than fifteen per cent;
(iii) seventy‑five
per cent of the difference of the tax assessed and the tax paid as per the
return, if the tax paid as per the return falls short of the tax assessed on
final assessment by more than fifteen per cent but not more than twenty‑five
per cent;
(iv) one
hundred per cent of the difference of the tax assessed and the tax paid as per
return, if the tax paid as per the return, falls short of the tax assessed on
final assessment by more than twenty‑five per cent but not more than
fifty per cent;
(v) one
hundred and twenty‑five per cent of the difference of the tax assessed
and the tax paid as per the return, if the tax paid as per the return, falls
short of the tax assessed on the final assessment by more than fifty per cent,
but not more than seventy‑five per cent;
(vi) one
hundred and fifty per cent of the difference of the tax assessed and the tax
paid as per the return, if the tax paid as per the return, falls short of the
tax assessed on the final assessment by more than seventy five per cent.
(c) which
shall be in the case of submission of the prescribed return after ten days
after the expiry of the prescribed period, two per cent of the tax payable for
every month or part thereof during which the default in the submission of the
return continued:
PROVIDED that no penalty under this sub‑section
shall be imposed after the period of five years from the date of the order of
the final assessment under this section and unless the dealer affected has had
a reasonable opportunity of showing cause against such imposition.
Explanation: For the purpose of levy of penalty under
clause (b) of this sub‑section, the tax assessed on the following kinds
of turnover shall be deducted from the tax assessed on final assessment-
(i) Turnover
representing additions to the turnover as per books made by the assessing
authority without any reference to any specific concealment of turnover from
the accounts;
(ii) Any
turnover estimated by the assessing authority with reference to any specific
concealment of any turnover from the accounts;
(iii) Any
turnover on which tax is paid at the concessional rate subject to the condition
of furnishing any declaration but where such declaration could not be furnished
at the time of assessment.
(1) Notwithstanding
anything contained in this Act, where an assessee claims that any question of
law arising in his case for an assessment year, which is pending before the
assessing authority (such case being hereafter in this section referred to as
the relevant case) is identical with a question of law arising in his case for
another assessment year, which is pending before the Special Tribunal, High
Court or Supreme Court (such case being hereafter in this section referred to
as the other case), he may furnish to the assessing authority a declaration in
the prescribed form for verification in the prescribed manner and if the
assessing authority agrees to apply in the relevant case the final decision on
the question of law in the other case, he shall not raise such question of law
in the relevant case.
(2) The
assessing authority may, by order, in writing,-
(i) admit
the claim of the assessee if it is satisfied that the question of law arising
in the relevant case is identical with the question of law in the other case;
or
(ii) reject
the claim if it is not satisfied.
(3) Where
a claim is admitted under sub‑section (2), the assessing authority may
make an order disposing of the relevant case without awaiting the final
decision on the question of law in the other case.
(4) When
the decision on the question of law in the other case becomes final, it shall
be applied to the relevant case and the assessing authority shall, if
necessary, amend the order referred to in sub‑section (3) conformably, to
such decision.
(5) An
order under sub‑section (2) shall be final and shall not be called in
question in any proceeding by way of appeal, reference or revision under this
Act.
Explanation: 'Case' in relation to an assessee means
any proceeding under this Act for the assessment of the turnover of the
assessee or for the imposition of any penalty on him.
23. Assessment
of sales shown in accounts at low prices
(1) If
the assessing authority is satisfied that a dealer has, with a view to evade
the payment of tax, shown in his accounts, sales or purchases of any goods, at
prices which are abnormally low compared to the prevailing market price of such
goods, it may, at any time within a period of five years from the expiry of the
year to which the tax relates, assess or reassess the dealer to the best of its
judgement on the turnover of such sales or purchases after making such enquiry
as it may consider necessary and after giving the dealer a reasonable
opportunity to show cause against such assessment.
(2) The
provisions of sub‑sections (2) to (5) of section 27, shall, as far as may
be, apply to assessment or re‑assessment under sub‑section (1) as
they apply to the re‑assessment of escaped turnover under sub‑section
(1) of section 27.
(1) The
tax for each year payable under any of the provisions of this Act may be
collected in advance during the year in monthly or other prescribed instalments
and for this purpose a dealer may be required to furnish within the prescribed
period such returns as may be prescribed. The assessing authority may
provisionally determine the amount of tax payable in advance during any year or
in respect of any period and on such determination and intimation to the
dealer, he shall pay such tax in such instalments and within such period as may
be prescribed.
(2) In
lieu of the tax provisionally determined under sub‑section (1), a dealer
may, at his option, pay tax in advance during the year on the basis of his
actual turnover for each month or for such other periods as may be prescribed.
For this purpose, he may be required to furnish returns showing his actual
turnover for each month or other periods as may be prescribed and to pay tax on
the basis of such returns. The tax under this, sub‑section shall become
due without any notice of demand to the dealer on the date of receipt of the
return or on the last due date as prescribed, whichever is later.
(3) Notwithstanding
anything contained in sub‑sections (1) and (2), every dealer, whose total
turnover in the preceding year was not less than ten lakhs of rupees or his
taxable turnover was not less than three lakhs of rupees and all dealers newly
registered in the year shall pay tax in advance during the year on the basis of
his actual turnover for each month or for such other periods, as may be
prescribed.
(4) If
no return is submitted by the dealer under sub‑section (1) or sub‑section
(2) within the prescribed period, or if the return submitted by him appears to
the assessing authority to be incomplete or incorrect, the assessing authority
may, after making such enquiry as it considers necessary, determine the tax
payable by the dealer to the best of its judgment:
PROVIDED that, before taking action under this sub‑section
on the ground that the return submitted by the dealer is incomplete or
incorrect, the dealer shall be given a reasonable opportunity of proving the
correctness or completeness of the return submitted by him.
(5) If
the assessing authority has reason to believe that the tax determined by it for
any period was based on too low a turnover or was made at too low a rate or was
based on too high a turnover or was made at too high a rate it may enhance or
reduce, as the case may be, such determination of tax:
PROVIDED that before making an enhancement of the tax
payable as aforesaid, the assessing authority shall, except where such
enhancement is based on the turnover finally determined for the preceding year,
give a reasonable opportunity to the dealer to show cause against such enhancement
and make such enquiry as it may consider necessary.
(6) The
determination and collection of tax under this section shall be subject to such
adjustment as may be prescribed on the completion of final assessment in the
manner prescribed.
25. Fresh
assessment in certain cases
(1) Any
dealer assessed under sub‑section (4) of section 21 may, within a period
of thirty days from the date of service of the assessment order, apply to the
assessing authority for re‑assessment, along with the correct and
complete return as prescribed. On such application, the assessing authority
shall, if it is satisfied that the failure to submit the return in time or the
submission of the incorrect or incomplete return was due to reasons beyond the
control of the applicant, cancel the assessment made and make a fresh
assessment on the basis of the return submitted:
PROVIDED that no application shall be entertained
under this sub‑section unless it is accompanied by satisfactory proof of
the payment of tax admitted by the applicant to be due or any such instalment
thereof as might have become payable, as the case may be.
(2) If
the amount of tax on the basis of the cancelled assessment has already been
collected and if the amount of tax arrived at as a result of the fresh
assessment is different from it, any amount overpaid by the dealer shall be
refunded to him without interest, or the further amount of tax, if any, due
from him shall be collected in accordance with the provisions of this Act, as
the case may be.
(3) Penalty,
if any, imposed and collected under sub‑section (5) of section 21, shall
be refunded to the dealer without interest on cancellation of the order of
original assessment.
26. Assessment
of legal representatives
Where a dealer dies, his executor, administrator, or
other legal representative shall be deemed to be the 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 or
fee assessed as payable by any such dealer or any tax, or fee which would have
been payable by him under this Act if he had not died, the executor,
administrator or other legal representative shall be liable only to the extent
of the assets of the deceased in his hands.
27. Assessment
of escaped turnover
(1)
(a) Where, for any reason,
the whole or any part of the turnover of business of a dealer has escaped
assessment to tax, the assessing authority may, subject to the provisions of sub‑section (2), at any
time within a period of five years from the date of order of the final
assessment by the assessing authority, determine to the best of its judgment
the turnover which has escaped assessment and assess the tax payable on such
turnover after making such enquiry as it may consider necessary and after
giving the dealer a reasonable opportunity to show cause against such
assessment.
(b) Where,
for any reason, the whole or any part of the turnover of business of a dealer has
been assessed at a rate lower than the rate at which it is assessable, the
assessing authority may, at any time within a period of five years from the
date of order of the final assessment by the assessing authority, reassess the
tax due after making such enquiry as it may consider necessary and after giving
the dealer a reasonable opportunity to show cause against such re‑assessment.
(2) In
making an assessment under clause (a) of sub‑section (1), the assessing
authority may, if it is satisfied that the escape from the assessment is due to
wilful non‑disclosure of assessable turnover by the dealer, direct the
dealer, to pay, in addition to the tax assessed under clause (a) of sub‑section
(1), by way of penalty a sum which shall be-
(a) fifty
per cent of the tax due on the turnover that was wilfully not disclosed if the
tax due on such turnover is not more than ten per cent of the tax paid as per
the return;
(b) one
hundred per cent of the tax due on the turnover that was wilfully not disclosed
if the tax due on such turnover is more than ten per cent but not more than
fifty per cent of the tax paid as per the return;
(c) one
hundred and fifty per cent of the tax due on the assessable turnover that was
wilfully not disclosed, if the tax due on such turnover is more than fifty per
cent of the tax paid as per the return;
(d) one
hundred and fifty per cent of the tax due on the assessable turnover that was
wilfully not disclosed, in the case of self‑assessment referred to in sub‑section
(1) of section 21:
PROVIDED that no penalty under this sub‑section
shall be imposed unless the dealer affected has had a reasonable opportunity of
showing cause against such imposition.
(3) The
powers under sub‑section (1) may be exercised by the assessing
authorities even though the original order of assessment, if any, passed in the
matter has been the subject matter of an appeal or revision.
(4) In
computing the period of limitation for assessment or re‑assessment un7der
this section, the time during which the proceedings for assessment or re‑assessment
remained stayed under the orders of a Civil Court or other competent authority
shall be excluded.
(5) In
computing the period of limitation for assessment or re‑assessment under
this section, the time during which any appeal or other proceeding in respect
of any other assessment or re‑assessment is pending before the Special
Tribunal or the High Court or the Supreme Court involving a question of law
having a direct bearing on the assessment or re‑assessment in question,
shall be excluded.
(6) In
computing the period of limitation for assessment or re assessment under this
section, the time during which any appeal or proceeding in respect of any
assessment or re‑assessment of the same or part of the turnover made
under any other enactment was pending before any appellate or revisional
authority or the Special Tribunal or the High Court or the Supreme Court shall
be excluded.
28. Assessment
of turnover not disclosed under compounding provisions
(1) Where
for any reason, any part of the turnover of business of a dealer who has opted
to pay tax under section 7 or 9 has escaped assessment from the tax, the
assessing authority may, at any time within a period of five years from the
date of order of the final assessment by the assessing authority, determine to
the best of its judgment the turnover which has escaped assessment and re‑assess
the tax payable on the total turnover including the turnover already assessed
under the said sections.
(2) Before
making the re‑assessment under sub‑section (1), the assessing
authority may make such enquiry as it may consider necessary and give the
dealer concerned a reasonable opportunity to show cause against such re‑assessment.
(3) The
amount of tax already paid by the dealer concerned in pursuance of the option
to compound under section 7 or 9 shall be adjusted towards the amount of tax
due as the result of re‑assessment under sub‑section (1).
(4) The
provisions of sub‑sections (2) to (5) of section 27 shall, as far as may
be, apply to reassessment under sub‑section (1) as they apply to the
reassessment of escaped turnover under sub‑section (1) of section 27.
29. Power
to reduce or waive penalty in certain cases
(1) Notwithstanding
anything contained in sub‑section (5) of section 21 or sub‑section
(2) of section 27, the Commissioner may, whether on his own motion or
otherwise, reduce or waive the amount of penalty imposed or imposable on a
dealer, if he is satisfied that such dealer has-
(a) voluntarily
and in good faith made full and true disclosure of his turnover prior to the
detection by any officer of the Commercial Taxes Department;
(b) co‑operated
in any inquiry relating to the assessment of such turnover; and
(c) either
paid or made satisfactory arrangements for the payment of any tax or any other
amount payable in consequence of an order passed under this Act in respect of
the relevant assessment year.
(2) Every
order made under sub‑section (1) shall be final and shall not be called
into question by any other authority.
30. Assessment
in cases of price variation
Notwithstanding anything contained in sections
28, 29 and 30-
(a) if
a dealer receives in any year any amount due to price variations, which would
have been included in his turnover for any previous year if it had been
received by him in that year, he shall, within thirty days from the end of the
year in which such amount is received, submit a return in the prescribed form
to the assessing authority and thereupon the assessing authority shall proceed
to assess the tax payable on such amount.
(b) if
a dealer returns in any year any amount due to price variations, which would
have been excluded in his turnover for any previous year if it had been
returned by him in that year, he shall, within thirty days from the end of the
year in which such amount is returned, submit a return in the prescribed form
to the assessing authority and thereupon the assessing authority shall proceed
to arrive at the quantum of the tax refundable on the amount returned by the
dealer;
(c) if
the assessing authority is satisfied that any return submitted under clause (a)
or clause (b) is correct and complete, it shall assess or re‑assess, as
the case may be, the dealer on the basis thereof;
(d) if
the return submitted by a dealer under clause (a) appears to the assessing
authority to be incorrect or incomplete, the assessing authority shall, after
making such enquiry, as it may consider necessary and after taking into account
all relevant materials gathered by it, assess the dealer to the best of its
judgment:
PROVIDED that before taking action under this clause,
the dealer shall be given a reasonable opportunity to prove the correctness and
completeness of the return;
(e) if
no return is submitted by the dealer under clause (a), the assessing authority
may, within five years within which such returns must have been submitted,
proceed to assess the tax payable on the amount referred to in the said clause:
PROVIDED that before making any assessment under this
clause, the assessing authority shall give the dealer an opportunity of being
heard and make such other enquiry as it may consider necessary.
(f) in
addition to the tax assessed under clauses; (d) or (e), the dealer is liable to
pay a penalty, at the rate specified in sub‑section (5) of section 21 and
the assessing authority shall in the same order of assessment or by a separate
order direct the dealer to pay such penalty;
(g) in
making the re‑assessment under clause (d) or (e), in addition to the tax
assessed, the dealer is liable to pay a penalty at the rate specified in sub‑section
(2) of section 27, if there is wilful non‑disclosure of assessable
turnover by the dealer to the satisfaction of the assessing authority.
31. Appointment
of special committee
(1) The Government shall
appoint a Special Committee consisting of-
(a) the
Secretary to Government, in‑charge of Commercial Taxes;
(b) the
Secretary to Government, in‑charge of Finance or his nominee;
(c) the
Commissioner of Commercial Taxes.
(2) Notwithstanding
anything contained in this Act, the Special Committee may, of its own motion,
call for and examine the records of the assessing authority in respect of any
proceeding or order under sub‑section (4) or (5) of section 21 or sub‑section
(1) or (2) of section 27, if such proceeding or order passed in violation of
the provisions of the Act or rules made thereunder or without following the
principles of natural justice, set aside the said proceeding or order and direct
the assessing authority to make a fresh assessment and pass fresh proceeding or
order in such manner as may be directed:
PROVIDED that such proceeding or order against which
any appeal or writ is pending shall not be entertained under this sub‑section.
(3) The order passed under
sub‑section (2) shall be final.
32. Power
of Government to notify exemption or reduction of tax
(1) The
Government may, by notification, issued whether prospectively or
retrospectively make an exemption, or reduction in rate, in respect of any tax
payable under this Act-
(a) on
the sale or purchase of any specified goods or class of goods, at all points or
at a specified point or points in the series of sales by successive dealers; or
(b) by
any specified class of persons, in regard to the whole or any part of their
turnover; or
(c) on
the sale or purchase of any specified classes of goods by specified classes of
dealers in regard to the whole or part of their turnover.
(2) Any
exemption from tax, or reduction in the rate of tax, notified under sub‑section
(1)-
(a) may
extend to the whole State or to any specified area or areas therein; or
(b) maybe
subject to such restrictions and conditions as maybe specified in the
notification.
(3) The
Government may, by notification, cancel or vary any notification issued under
sub‑section (1).
(4) The
Government may, in such circumstances and subject to such condition as may be
prescribed, by notification, remit the whole or any part of the tax or penalty
or fee payable in respect of any period by any dealer under this Act.
33. Liability of tax of persons not observing
restrictions and conditions notified under section 32
If any restriction or condition notified under section
32 is contravened or is not observed by a dealer, the sales or purchases of
such dealer may, with effect from the commencement of the year in which such
contravention or non‑observance took place, be assessed to tax or taxes
under the appropriate provisions of this Act as if the provisions of the
notifications under section 32 did not apply to such sales or purchases.
(1) Where
any firm is liable to pay any tax or other amount under this Act, the firm and
each of the partners of the firm shall be jointly and severally liable for such
payment.
(2) Where
a partner of a firm liable to pay any tax or any amount under this Act retires,
he shall, notwithstanding any contract to the contrary, be liable to pay the
tax or other amount remaining unpaid at the time of his retirement and any tax
or other amount due up to the date of retirement, though un‑assessed.
35. Liability
to tax of partitioned Hindu family, dissolved firm, etc.
Where a dealer is a Hindu undivided family, firm, or
other association of persons, and such family, firm or association is
partitioned, or dissolved, as the case may be,-
(a) the
tax payable under this Act by such family, firm, or association of persons for
the period up to the date of such partition or dissolution shall be assessed as
if no such partition or dissolution had taken place and all the provisions of
this Act shall apply accordingly; and
(b) every person who was at the time of such
partition, or dissolution a member or partner of the Hindu undivided family,
firm, or association of persons and the legal representative of any such person
who is deceased shall, notwithstanding such partition or dissolution, be
jointly and severally liable for the payment of the tax, penalty or other
amount payable under this Act by such family, firm or association of persons,
whether assessment is made prior to or after such partition, or dissolution.
36. Liability
to tax private company on winding up
Where a dealer is a private company and such company
is wound up, every person who was a director of such company at the time of
such winding up shall, notwithstanding such winding up, be jointly and
severally liable for the payment of tax, penalty or other amount payable under
this Act by such company whether assessment is made prior to or after such
winding up unless he proves that the non‑payment of tax cannot be
attributed to any gross neglect, misfeasance or breach of duty on his part in
relation to the affairs of the Company.
(1) Every
dealer whose total turnover in any year is not less than three lakhs of rupees
shall, and any other dealer or person intending to commence business may, get
himself registered under this Act.
(2) Where
a person intending to commence business is a minor or where a minor inherits an
existing business or succeeds a dealer, the certificate of registration shall
be issued in the name of any guardian, trustee or agent of the minor carrying
on business on behalf of and for the benefit of such minor.
(3) Notwithstanding
anything contained in sub‑section (1),-
(a) every
casual trader;
(b) every
dealer in bullion, gold, silver and platinum jewellery including articles
thereof and worn‑out or beaten jewellery and precious stones;
(c) every
dealer registered under sub‑section (3) of section 7 of the Central Sales
Tax Act, 1956 (Central Act 74 of 1956);
(d) every
dealer residing outside the State, but carrying on business in the State;
(e) every
agent of a non‑resident dealer; and
(f) every
factor, broker, commission agent or arhati, delcredere agent or auctioneer or
any other mercantile agent, by whatever name called, and whether of the same
description as hereinbefore or not, who carries on the business of buying,
selling, supplying or distributing goods on behalf of any principal, or through
whom the goods are bought, sold, supplied or distributed,
shall get himself registered under this Act,
irrespective of the quantum of his turnover in such goods.
(4) Where a registered
dealer-
(a) dies,
or
(b) transfers
or otherwise disposes of his business, in whole or in part, or
(c) effects
any change in the ownership of his business, in consequence of which he is
succeeded in the business, or part thereof, by any other person, such successor
in business shall unless he already holds a certificate of registration get
himself registered under this Act.
(5) The Government may, from
time to time, by notification-
(a) exempt
from the operation of sub‑section (1), or sub‑section (3), or sub‑section
(4) any specified class of dealers or dealers in any specified goods or class
of goods;
(b) enhance
the total turnover limit specified in sub‑section (1) for the
registration of any specified class of dealers or dealers in any specified
goods or class of goods.
(6) Any
exemption under clause (a) and any enhancement of the total turnover limit
under clause (b) of sub‑section (5)-
(a) may
extend to the whole State or to any specified area or areas therein;
(b) maybe
subject to such restrictions and conditions as maybe specified in the
notification.
(7) The
Government may, by notification, cancel or vary any notification issued under
sub ‑section (5).
(8) Nothing
contained in this section shall apply to any State Government or Central
Government.
38. Procedure
for registration
(1) An
application for registration shall be made to such authority, in such manner
and within such period as may be prescribed and shall be accompanied by a fee
of two thousand and five hundred rupees in respect of Public Limited Companies,
one thousand rupees in respect of Private Limited Companies and five hundred
rupees in respect of other dealers for the principal place of business and in addition
a further fee of two hundred rupees in respect of Public Limited Companies, one
hundred rupees in respect of Private Limited Companies and fifty rupees in
respect of other dealers in respect of each of the places of business other
than the principal place of business:
PROVIDED that any dealer who has registered under the
Companies Act, 1956 (Central Act 1 of 1956) and who desires to pay the
registration fees for five years in a lump sum may do so, at his option, by
paying a sum equal to five times the fee specified for the purpose.
(2) Where
it appears necessary to the authority to whom an application is made under sub‑section
(1) so to do for the proper realisation of the tax payable under this Act, it
may, by order in writing and for reasons to be recorded therein, impose as a
condition for the issue of a certificate of registration a requirement that the
dealer shall furnish in the prescribed manner and within such time, as may be
specified in the order, such security as may be specified for the aforesaid
purpose:
PROVIDED that the security shall not exceed one half
of the tax payable on the taxable turnover up to the end of the year as
estimated by the applicant himself.
(3) If
the authority is satisfied that the application is in order and the condition,
if any, imposed under sub‑section (2) has been complied with, it shall
register the applicant and grant to him a certificate of registration in the
prescribed form specifying all his places of business with copies for each of
his place of business other than the principal place of business.
(4) A
certificate issued under sub‑section (3) shall take effect from such date
as may be prescribed.
(5) Where
it appears necessary to the authority granting a certificate of registration
under this section so to do for the proper realization of the tax payable under
this Act it may, at any time, while such certificate is in force, by an order
in writing and for reasons to be recorded therein, require the dealer to whom
the certificate has been granted, to furnish within such time as may be
specified in the order and in the prescribed manner such security or, if the
dealer has already furnished any security in pursuance of an order under this
sub‑section or sub‑section (2) such additional security, as may be
specified in the order for the aforesaid purpose.
(6) No
dealer shall be required to furnish any security under sub‑section (2) or
any security or additional security under sub‑section (5) by the
authority referred to therein, unless he has been given an opportunity of being
heard. The amount of security which a dealer may be required to furnish under
sub‑section (2) or sub‑section (5) or the aggregate of the amount
of such security and the amount of additional security which he may be required
to furnish under sub‑section (5) by the authority referred to therein,
shall not exceed one half of the tax payable, in accordance with the estimate
of such authority, on the turnover of such dealer for the year in which such
security or, as the case may be, additional security is required to be
furnished.
(7) Where
the security furnished by a dealer under sub‑section (2) or sub‑section
(5) is in the form of a surety bond and the surety becomes insolvent or dies,
the dealer shall, within thirty days of the occurrence of any of the aforesaid
events, inform the authority granting the certificate of registration and shall
within ninety days of such occurrence furnish a fresh surety bond or furnish in
the prescribed manner other security for the amount of the bond.
(8) The
authority granting the certificate of registration may by order and for good
and sufficient cause forfeit the whole or any part of the security furnished by
the dealer for realizing any amount of tax or penalty or interest payable by
the dealer:
PROVIDED that no order shall be passed under this sub‑section
without giving the dealer an opportunity of being heard.
(9) Where
by reason of an order under sub‑section (8), the security furnished by
any dealer is rendered insufficient, he shall make up the deficiency in such
manner and within such time as may be prescribed.
(10) The
authority granting the certificate of registration may, on application by the
dealer to whom it has been granted, order the refund of any amount or part
thereof deposited by the dealer by way of security under this section or, where
the security is furnished by the dealer in the form of a pledge, release the
pledge, if it is not required for the purpose of this Act, or if in the course
of three years the dealer proves himself to be prompt in payment of tax and
above reproach in the conduct of his business.
(11) The
certificate issued under sub‑section (3) shall be valid for one year or
five years, as the case may be, and shall be renewed in such manner and within
such period as may be prescribed, on payment of the fee specified in sub‑section
(1). The certificate shall be deemed to have been cancelled unless it has been
renewed:
PROVIDED that a registered dealer who fails to renew
the certificate of registration within the prescribed period shall be permitted
to renew the certificate before a further period, as may be prescribed, on
payment of renewal fee and also a penalty equal to renewal fee.
(12) If
the authority granting the certificate of registration is satisfied that a
registration certificate or a copy thereof is lost or accidentally destroyed,
it shall, on an application by the registered dealer accompanied by a fee of
one hundred rupees, issue to him a duplicate of the registration certificate.
(13) A
registered dealer shall exhibit at each place of his business the registration
certificate, or a duplicate, or a copy thereof.
(14) A
registered dealer shall be entitled to have his registration cancelled, if he
is able to prove to the satisfaction of the prescribed authority that his
turnover in each of the two consecutive years immediately preceding the
application was less than three lakhs of rupees.
(15) The
authority granting the certificate of registration shall have the power for
good and sufficient reasons to cancel, modify or amend any certificate of
registration granted by it.
(16) No application for registration or for a
copy or duplicate of the certificate and no renewal under this section shall be refused and no order under sub‑section
(15) shall be made, unless the dealer concerned has been given an opportunity
of being heard.
(1) Every
registered dealer who transacts business at places other than his registered
place or places of business or employs a travelling salesman or representative
to transact business as aforesaid shall obtain a permit issued under this Act
authorizing him so to do.
(2) Where
a registered dealer to whom sub‑section (1) applies-
(a) dies,
or
(b) transfers
or otherwise disposes of his business, in whole or in part, or
(c) effects
any change in the ownership of his business, in consequence of which he is
succeeded in the business, or part thereof, by any other person, such successor
in business shall (unless he already holds a permit, obtain a permit referred
to in sub‑section (1).
(3)
(a) Where a registered
dealer, who has been granted a permit under sub‑section (1) or sub‑section
(2), employs a travelling salesman or representative to transact business, he
shall give a written authorisation in favour of such travelling salesman or
representative and also furnish a copy of such authorization to the assessing
authority concerned;
(b) The
authorization shall be in such form, shall contain such particulars, and shall
be subject to such conditions, as may be prescribed;
(c) The
form of authorization shall be obtained from such authority and on payment of
such fee as may be prescribed.
(4) The
entire turnover of business carried on under the permit and authorization shall
be included and accounted for by the registered dealer in his accounts and
returns and shall be dealt with as if it were the turnover of business d one by
the registered dealer himself at the registered place of business.
(5) Every
permit holder or travelling salesman or representative shall carry the permit
or the authorization, as the case may be, on his person and shall produce it on
demand by any officer of the Commercial Taxes Department empowered by the
Government in this behalf. Every permit holder or travelling salesman or
representative shall maintain and produce on demand to any such officer a true
and correct account of all the transactions carried on under the permit, or
authorization, as the case may be, and every travelling salesman or
representative shall also maintain and produce on demand to any such officer a
stock book showing the quantities of goods entrusted to him by the registered
dealer, the quantities disposed of from day‑to‑day by sale or
otherwise and the balance on hand at the end of each day.
(6) An
application for permit referred to in sub‑section (1) or sub‑section
(2) shall be made to such authority, in such manner and within such period as
may be prescribed and shall be accompanied by a fee of one hundred rupees.
(7) If
the authority is satisfied that the application is in order, it shall issue the
permit in the prescribed form.
(8) A
permit issued under sub‑section (7) shall take effect-
(a) in
the case of a person succeeding to the business or part thereof from the date
on which such person succeeded to the business; and
(b) in
the case of any other person, from the date of issue of the permit.
(9) A
permit issued under sub‑section (7) shall be valid for a year and shall
be renewed from year to year on receipt of an application from the registered
dealer accompanied by a fee of one hundred rupees.
(10) If
the authority is satisfied that the permit issued under sub‑section (7)
is lost or accidentally destroyed, it shall, on application by the registered
dealer accompanied by a fee of twenty rupees, issue to him a duplicate of the
permit.
(11) The
authority shall cancel a permit-
(a) on
requisition made in writing by the registered dealer, and
(b) on the
cancellation of the certificate of registration.
(12) No
application for a permit or for a duplicate thereof shall be refused unless the
registered dealer has been given a reasonable opportunity of being heard.
(13) No
permit holder and no travelling salesman or representative shall contravene any
of the terms or conditions of the permit or authorization, as the case may be,
or any of the provisions of this Act or the rules made thereunder.
(14) The
authority may cancel a permit if the permit holder has contravened any of the
terms and conditions of the permit or any of the provisions of this Act or the
rules made thereunder:
PROVIDED that no prosecution for an offence under sub‑section
(8) of section 73 shall be instituted in respect of the same facts on which a
permit has been cancelled under this sub‑section.
(15) No
permit shall be cancelled under clause (b) of sub‑section (11) or under
sub‑section (14), unless the permit holder has been given a reasonable
opportunity of being heard.
(1) No
person, who is not a registered dealer, shall collect any amount by way of tax
or purporting to be by way of tax under this Act; and no registered dealer
shall make any such collection except in accordance with the provisions of this
Act and the rules made thereunder:
PROVIDED that nothing in this sub‑section shall
apply to the collection of an amount by a registered dealer, towards the amount
of tax already suffered under this Act, in respect of goods, the sale or
purchase price of which is controlled by any law in force.
Explanation: For the purposes of sub‑section
(1), any State Government or the Central Government, or any dealer shall be
deemed to be a registered dealer.
(2) If
any person or registered dealer collects any amount by way of tax or purporting
to be by way of tax, in contravention of the provisions of sub‑section
(1),whether or not any tax is due from such person or dealer under this Act in
respect of the transaction in which he collects such amount, the assessing
authority may, after giving such person or dealer a reasonable opportunity of
being heard, by order, in writing, impose upon him by way of penalty a sum,
which shall be,-
(i) where
the excess amount has been collected in the bona fide belief that it had to be
collected, one hundred per cent of the amount collected;
(ii) where
the excess amount has been collected wilfully and knowing that it was not due
to be collected, one hundred and fifty per cent of the amount collected:
PROVIDED that no proceedings under this sub‑section
shall be commenced after a period of five years from the date of final
assessment:
PROVIDED FURTHER that no prosecution for an offence
under sub‑section (6) of section 73 shall be instituted in respect of the
same facts on which a penalty has been imposed under this sub‑section.
41. Forfeiture
of tax collected
If any person collects any amount by way of tax and
his turnover for the year falls short of the taxable limit specified, the sum
so collected shall be remitted to the Government and forfeited wholly.
42. Payment
and recovery of tax, penalty, etc.
(1) Save
as otherwise provided for in sub‑section (2) of section 24, the tax
assessed pr has become payable under this Act from a dealer or person and any
other amount due from him under this Act shall be paid in such manner and in
such installments, if any, and within such time as may be specified in the
notice of assessment, not being less than twenty one days from the date of
service of the notice. The tax under sub‑section (2) of section 24 shall
be paid without any notice of demand. In default of such payment, the whole of
the amount outstanding on the date of the default shall become immediately due
and shall be a charge on the properties of the person or persons liable to pay
the tax or penalty or interest under this Act.
(2) Any
tax assessed on or has become payable by, or any other amount due under this
Act from a dealer or person and any fee due from him under this Act, shall,
subject to the claim of the Government in respect of land revenue and the claim
of the Land Development Bank in regard to the property mortgaged to it under
sub‑section (2) of section 28 of the Tamil Nadu Co‑operative
Societies Act, 1983 (Tamil Nadu Act 30 of 1983) have priority over all other
claims against the property of the said dealer or person and the same may
without prejudice to any other mode of collection be recovered,-
(a) as
land revenue, or
(b) on
application to any Magistrate, by such Magistrate as if it were a fine imposed
by him:
PROVIDED that no proceedings for such recovery shall
be taken or continued as long as he has, in regard to the payment of such tax,
other amount or fee, as the case may be, complied with an order by any of the
authorities to whom the dealer or person has appealed or applied for revision,
under sections 52, 53, 55, 58, 59, 61 or 62.
(3) On
any amount remaining unpaid after the date specified for its payment as
referred to in sub‑section (1) or in the order permitting payment in
installments, the dealer or person shall pay, in addition to the amount due,
interest at two per cent per month of such amount for the entire period of
default:
PROVIDED that if the amount remaining unpaid is less
than one hundred rupees and the period of default is not more than a month, no
interest shall be paid:
PROVIDED FURTHER that where a dealer or person has
preferred an appeal or revision against any order of assessment or revision of
assessment under this Act, the interest payable under this sub‑section,
in respect of the amount in dispute in the appeal or revision, shall be
postponed till the disposal of the appeal or revision, as the case may be, and
shall be calculated on the amount that becomes due in accordance with the final
order passed on the appeal or revision as if such amount had been specified in
the order of assessment or revision of assessment as the case may be.
(4) Where
a dealer submits the prescribed return within ten days after the expiry of the
prescribed period, he shall pay, in addition to the amount of tax due as per
his return, interest at two per cent of the tax payable for every month or part
thereof.
(5) Where
the tax paid under this Act is found to be in excess on final assessment or
revision of assessment, or as a result of an order passed in appeal, revision
or review, the excess amount shall be refunded to the dealer after adjustment
of arrears of tax, if any, due from him. Where the excess amount is not
refunded to the dealer within a period of ninety days from the date of the
order of assessment or revision of assessment and in the case of order passed
in appeal, revision or review within a period of sixty days from the date ' of
order giving effect to such order passed in appeal, revision or review, the
Government shall pay by way of interest, where the amount refundable is not less
than one hundred rupees, a sum equal to a sum calculated at the rate of one per
cent or part thereof of such amount for each month or part thereof after the
expiry of the said period of sixty days.
Explanation: For the purpose of this section, the expression
"order passed in appeal, revision or review" shall not include order
passed in such appeal, revision or review with direction to make fresh
assessment order.
43. Transfers
to defraud revenue void
Where, during the pendency of any proceedings under
this Act or after the completion thereof, 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 intention to defraud the 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 the said proceeding or otherwise:
PROVIDED that, such charge or transfer shall
not be void if it is made-
(a) for
adequate consideration and without notice of the independency of such
proceeding under this Act or, as the case may be, without notice of such tax or
other sum payable by the dealer; or
(b)
with the previous
permission of the assessing authority.
44. Recovery
of penalty or interest
Any penalty or interest payable under this Act, shall
be deemed to be tax under this Act, for the purposes of collection and recovery
and shall be without prejudice to the institution of any proceeding for an
offence under this Act, or for the recovery of the entire amount remaining
unpaid under this Act.
(1) The
assessing authority may, at any time or from time to time, by notice in writing
a copy of which shall be forwarded to the dealer at his last address known to
the assessing authority require-
(a) any
person from whom money is due or may become due to the dealer, or to any person
who has become liable to pay any amount due under this Act; or
(b) any
person who holds or may subsequently hold money for, or on account of the
dealer or other person who has become liable to pay any amount due under this
Act,
to pay to the assessing authority either forthwith
upon the money becoming due or being held at 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 sufficient to pay the amount due by the dealer or other person in
respect of the arrears that have become payable under this Act or the whole of
the money when it is equal to or is less than the arrears aforesaid.
(2) The
assessing authority may, at any time, or from time to time, amend or revoke any
such notice or extend the time for making any payment in pursuance of the
notice.
(3) Any
person making any payment in compliance with a notice under this section shall
be deemed to have made the payment under the authority of the dealer and the
receipt of the assessing authority shall constitute a good and sufficient
discharge of the liability of such person to the extent of the amount referred
to in the receipt.
(4) Any
person making any payment to the dealer after receipt of the notice referred to
in this section, shall be personally liable to the assessing authority to the
extent of the payment made or to the extent of the liability of the dealer for
the amount due under this Act, whichever is less.
(5) Where
any person to whom a notice under this section is served objects to it by a
statement in the prescribed form that the sum demanded or any part thereof is
not due by him to the dealer or that he does not hold any money for or on
account of the dealer, then, nothing contained in this section shall be deemed
to require such person to pay the sum demanded or part thereof, as the case may
be, to the assessing authority, but if it is discovered that such statement was
false in any material particular, such person shall be personally liable to the
assessing authority to the extent of his own liability to the dealer on the
date of the notice or to the extent of the liability of the dealer for the
amount due under this Act, whichever is less.
(6) Any
amount which a person required to pay to the assessing authority or for which
he is personally liable to the assessing authority under this section shall, if
it remains unpaid, be a charge on the properties of the said person and may be
recovered as if it were an arrear of land revenue.
Explanation: For the purposes of this section, the
amount due to a dealer or money held for or on account of a dealer by any
person shall be computed after taking into account such claims, if any, as may
have fallen due for payment by such dealer to such person and as may be
lawfully subsisting.
46. Recovery
of tax where business of dealer is transferred
Where the ownership, of the business of a dealer
liable to pay tax or other amount, is transferred, any tax or other amount
payable under this Act in respect of such business and remaining unpaid at the
time of the transfer and any tax or other amount due up to the date of
transfer, though un‑assessed, may, without prejudice to any action that
may be taken for its recovery from the transferor, be recovered from the
transferee as if he were the dealer liable to pay such tax or other amount:
PROVIDED that the recovery from the transferee of the
arrears of taxes due for the period
prior to the date of the transfer shall be limited to the value of the as‑sets
he obtained by transfer.
47. Rounding
off of turnover, tax, etc.
The amount of turnover, tax, fee, penalty, fine or any
other sum payable, and the amount of refund due, under this Act shall be
rounded off to the nearest rupee and, for this purpose, where such amount
contains a part of a rupee consisting of paise, then, if such part is fifty
paise or more, it shall be increased to one rupee and if such part is less than
fifty paise, it shall be ignored.
Explanation: If the total turnover of a dealer
consists of several items of turnover liable to tax at different rates each
such item of turnover shall be rounded off as provided in this section.
48. Appointment of Commissioner of Commercial
Taxes, joint Commissioners of Commercial Taxes,
appellate deputy commissioners of commercial taxes, deputy commissioners of
commercial taxes, assistant commissioners of commercial taxes and commercial
tax officers
The Government may appoint a Commissioner of
Commercial Taxes and as many joint Commissioners of Commercial Taxes, Appellate
Deputy Commissioners of Commercial Taxes, Deputy Commissioners of Commercial
Taxes, Deputy Commissioner of Commercial Taxes (Enforcement), Appellate
Assistant Commissioners of Commercial Taxes, Territorial Assistant
Commissioners of Commercial Taxes, Administrative Assistant Commissioners of
Commercial Taxes, Assistant Commissioners of Commercial Taxes (Assessment),
Assistant Commissioners of Commercial Taxes (Check Posts), Assistant
Commissioners of Commercial Taxes (Enforcement) and Commercial Tax Officers, as
they think fit, for the purpose of performing the functions respectively conferred
on them by or under this Act. The Commissioner of Commercial Taxes shall
perform the functions conferred on him throughout the State, and the other
officers shall
perform their functions within such local limits as
the Government or any authority or officer empowered in this behalf, may assign
to them.
49. Power
to issue clarification by Commissioner
(1) The
Commissioner, on an application by a registered dealer, may clarify any point
concerning the rate of tax under the Act. Such clarification shall be
applicable to the goods specified in the application:
PROVIDED that no such application shall be entertained
unless it is accompanied by proof of payment of such fee, paid in such manner,
as may be prescribed.
(2) The
Commissioner may, if he considers it necessary or expedient so to do, for the
purpose of uniformity in the work of assessment and collection of tax, clarify
any point concerning the rate of tax under this Act or the procedure relating
to assessment and collection of tax as provided for under this Act.
(3) All
persons working under the control of Commissioner shall observe and follow the
clarification issued under sub‑section (1) and sub‑section (2).
50. Special
powers of Assistant Commissioner under Revenue Recovery Act
(1) A Territorial
Assistant Commissioner or an Assistant Commissioner (Assessment) shall have
the powers of a Collector under the Tamil Nadu Revenue Recovery Act, 1864
(Tamil Nadu Act 11 of 1864) for the purposes of recovery of any amount due
under this Act.
(2) Subject
to the provisions of sub‑section (3) the Territorial Assistant
Commissioner' and the Assistant Commissioner (Assessment) shall, for the
purposes of recovery of any amount due under this Act, have the powers of the
Commissioner under the Tamil Nadu Rent and Revenue Sales Act, 1839 (Central Act
VII of 1839) for the sale of property distrained for any amount due under this
Act.
(3) Notwithstanding
anything contained in the Tamil Nadu Rent and Revenue Sales Act, 1839 (Central
Act VII of 1839) the Territorial Assistant Commissioner and the Assistant
Commissioner (Assessment), in the exercise of the powers conferred by sub‑section
(2), shall be subject to the control and superintendence of the Deputy
Commissioner having jurisdiction and the Commissioner.
(4) The
Territorial Assistant Commissioner and the Assistant Commissioner (Assessment),
may subject to the control and superintendence of the Deputy Commissioner and
the Commissioner, delegate the powers vested in them under sub‑sections
(1) and (2), to any officer not below the rank of an Assistant Commercial tax
Officer placed under their authority and the provisions of sub‑section
(1) and sub‑section (2) shall apply to such officer as they apply to the
Territorial Assistant Commissioner and the Assistant Commissioner (Assessment).
,
51. Constitution
of Appellate Tribunal
(1) The
Government shall constitute an Appellate Tribunal consisting of, subject to the
provisions of sub‑section (2), a Chairman and two other members to
exercise the functions conferred on the Appellate Tribunal by or under this
Act. The Chairman shall be a Judicial Officer not below the rank of a District
Judge and the other two members shall possess such qualifications as may be
prescribed.
(2) Notwithstanding
anything contained in sub‑section (1), the Government may, from time to
time, appoint such number of persons to be additional members of the Appellate
Tribunal as the Government may deem necessary and for such period as may be
specified in this behalf:
PROVIDED that as nearly as may be one half of such
additional members shall be judicial Officers not below the rank of a
Subordinate Judge and the remaining additional members shall possess such
qualifications as may be prescribed.
(3) Any
vacancy in the membership of the Appellate Tribunal shall be filled by the
Government.
(4)
(a) The functions of the Appellate Tribunal may be exercised-
(i) by
a Bench consisting of three members constituted by the Chairman; or
(ii)
by a Bench consisting
of two members constituted by the Chairman.
(iii) by a
single member of the Appellate Tribunal nominated in this behalf by the
Chairman, in cases where the total turnover as determined by the assessing
authority does not exceed one lakh of rupees.
Explanation: The single member referred to in sub‑clause
(iii) may be either the Chairman or any other member: ,
PROVIDED that, if any case which comes up before i
single member (who is not the Chairman) or a Bench (of which the Chairman is
not a member) involves a question of law, such single member or Bench may, in
his or its discretion, reserve such case for decision by a Bench of which the
Chairman shall be a member.
(b) Where
an appeal or application is heard by a Bench consisting of three members and
the members differ in opinion on any point, the point shall be decided in
accordance with the opinion of the majority.
(c) Where
an appeal or application is heard by a Bench consisting of two members, and the
members are divided in their opinion on any point, the point shall be referred
for decision to a Bench consisting of three members, of whom one shall be the
Chairman.
(5) The
Appellate Tribunal shall, with the previous sanction of the Government, make by
notification, regulations consistent with the provisions of this Act and the
rules made thereunder for regulating the constitution and the procedure and the
disposal of its business.
52. Appeal
to Appellate Assistant Commissioner
(1) Any
person objecting to an order passed by the appropriate authority under sub‑section
(4) of section 16, section 21, section 23, section 25, section 26, sub‑sections
(1) and (2) of section 27, section 33, sub‑sections (2) of section 40 or
section 46 (other than an order passed by an Assistant Commissioner (Assessment))
may, within a period of thirty days from the date on which the order was served
on him, in the manner prescribed, appeal to the Appellate Assistant
Commissioner having jurisdiction:
PROVIDED that the Appellate Assistant Commissioner
may, within a further period of thirty days admit an appeal presented after the
expiration of the first mentioned period of thirty days if he is satisfied that
the appellant had sufficient cause for not presenting the appeal within the
first mentioned period:
PROVIDED FURTHER that in the case of an order under
sub‑section (4) of section 16, section 21, section 23, section 25,
section 26 or sub‑sections (1) and (2) of section 27, no appeal shall be
entertained under this sub‑section unless it is accompanied by
satisfactory proof of the payment of the tax admitted by the appellant to be
due or of such installments thereof as might have become payable, as the case
may be, and twenty‑five per cent of the difference of the tax assessed by
the assessing authority and the tax admitted by the appellant.
(2) The
appeal shall be in the prescribed form and shall be verified in the prescribed
manner and shall be accompanied by such fee not exceeding one hundred rupees as
may be prescribed.
(3) In
disposing of an appeal, the Appellate Assistant Commissioner may, after giving
the appellant a reasonable opportunity of being heard, and for the sufficient
reasons‑to be recorded in writing-
(a) in the
case of an order of assessment-
(i) confirm,
reduce, enhance or annul the assessment or the penalty or both;
(ii) set
aside the assessment and direct the assessing authority to make a fresh
assessment after such further inquiry as maybe directed; or
(iii) pass
such other orders as he may think fit; or
(b) in the
case of any other order, confirm, cancel or vary such order:
PROVIDED that at the hearing of any appeal, the
appropriate authority shall have the right to be heard either in person or by a
representative.
(4) Notwithstanding
that an appeal has been preferred under sub‑section (1), the tax shall be
paid in accordance with the order of assessment against which the appeal has
been preferred:
PROVIDED that the Appellate
Assistant Commissioner may, in his discretion,
give such directions as he thinks fit in regard to the payment of the tax
before the disposal of the appeal, if the appellant furnishes sufficient
security to his satisfaction, in such form and in such manner as may be
prescribed:
PROVIDED FURTHER that the directions given under the
first proviso shall stand vacated, if no order is passed under sub‑section
(3) within a period of one hundred and eighty days of the issue of order under
the said proviso.
53. Appeal
to Appellate Deputy Commissioner
(1) Any
person objecting to an order passed by the Assistant Commissioner (Assessment)
under sub‑section (4) of section 16, section2l, section23, section25,
section 26, sub‑sections (1) and (2) of section27, section 33, sub‑section
(2) of section 40 or section 46 may, within a period of thirty days from the
date on which the order was served on him in the manner prescribed, appeal to
the Appellate Deputy Commissioner having jurisdiction:
PROVIDED that the Appellate Deputy Commissioner may
within a further period of thirty days admit an appeal presented after the
expiration of the first mentioned period of thirty days if he is satisfied that
the appellant had sufficient cause for not presenting the appeal within the
first mentioned period:
PROVIDED FURTHER that in the case of an order under
sub‑section (4) of section 16, section 21, section 23, section 25,
section 26 or sub‑sections (1) and (2) of section 27, no appeal shall be
entertained under this sub‑section unless it is accompanied by
satisfactory proof of the payment of the tax admitted by the appellant to be
due or of such installments thereof as might have become payable, as the case
may be and twenty‑five per cent of the difference of the tax assessed by
the assessing authority and the tax admitted by the appellant.
(2) The
appeal shall be in the prescribed form and shall be verified in the prescribed
manner and shall be accompanied by such fee not exceeding one hundred rupees,
as may be prescribed.
(3) In disposing of an appeal, the Appellate
Deputy Commissioner may, after giving the appellant a reasonable
opportunity of being heard, and for the sufficient reasons to be recorded in
writing-
(a) in the
case of an order of assessment-
(i) confirm,
reduce, enhance or annul the assessment or the penalty or both;
(ii) set
aside the assessment and direct the Assistant Commissioner (Assessment) to make
a fresh assessment after such further inquiry as may be directed; or
(iii)
pass such other orders as he may
think fit; or
(b) in the
case of any other order, confirm, cancel or vary such order:
PROVIDED that at the hearing of any appeal, the
Assistant Commissioner (Assessment) shall have the right to be heard either in
person or by a representative.
(4) Notwithstanding
that an appeal has been preferred under sub‑section (1), the tax shall be
paid in accordance with the order of assessment against which the appeal has
been preferred:
PROVIDED that the Appellate Deputy Commissioner may,
in his discretion, give such directions as he thinks fit, in regard to the
payment of the tax before the disposal of the appeal, if the appellant
furnishes sufficient security to his satisfaction, in such manner, as may be
prescribed:
PROVIDED FURTHER that the directions given under the
first proviso shall stand vacated, if no order is passed under sub‑section
(3) within a period of one hundred and eighty days of the issue of order under
the said proviso.
54. Special
powers of Deputy Commissioner
(1) The
Deputy Commissioner may, of his own motion, call for and examine an order
passed or proceeding recorded by the appropriate authority under sub‑section
(4) of section 16, section 21, section 23, section 25, section 26 or sub‑sections
(1) and (2) of section 27, and if such order or proceeding recorded is
prejudicial to the interests of revenue, may make such inquiry or cause such
inquiry to be made and, subject to the provisions of this Act, may initiate
proceedings to revise, modify or set aside such order or proceeding and may
pass such order thereon as he thinks fit.
(2) The
Deputy Commissioner shall not initiate proceedings against any such order or
proceeding referred to in sub‑section (1), if-
(a) the
time for appeal against the order has not expired;
(b) the
order has been made the subject of an appeal to the Appellate Assistant
Commissioner or the Appellate Deputy Commissioner or the Appellate Tribunal, or
of a revision in the Special Tribunal; or
(c) mote
than five years have expired after the passing of the order:
PROVIDED that if the order passed or proceeding recorded
by the appropriate authority or Deputy Commissioner referred to in sub‑section
(1) involves an issue on which the Special Tribunal has given its decision
adverse to the revenue in any other proceedings, an application to the High
Court under Article 226 or 227 against the order of the Special Tribunal and an
appeal to the Supreme Court against the order of the High Court is pending, the
period of time between the date of the above said order of the Special Tribunal
and the date of the order of the High Court or the Supreme Court, as the case
may be, shall be excluded in computing the period referred to in clause (c).
(3) No
order under this section adversely affecting a person shall be passed unless
that person has had a reasonable opportunity of being heard.
(4) In
computing the period referred to in clause (c) of sub‑section (2), the
time during which the proceedings before the Deputy Commissioner remained
stayed under the orders of a Civil Court or other competent authority shall be
excluded.
55. Powers
of revision of deputy commissioner
(1) Any
person objecting to an order passed or proceeding recorded under this Act for
which an appeal has not been provided for in section 52 or section 53 may
within a period of thirty days from the date on which a copy of the order or
proceeding was served on him in the manner prescribed, file an application for
revision of such order or proceeding to the Deputy Commissioner:
PROVIDED that the Deputy Commissioner may within a
further period of thirty days admit an application for revision presented after
the expiration of the first mentioned period of thirty days, if he is satisfied
that the applicant had sufficient cause for not presenting the application
within the first mentioned period.
(2) An
application for revision shall be in the prescribed form and shall be verified
in the prescribed manner.
(3) On
admitting an application for revision, the Deputy Commissioner may call for and
examine the record of the order or proceeding against which the application has
been preferred and may make such inquiry or cause such inquiry to be ma de and,
subject to the provisions of this Act, pass such order thereon as he thinks
fit.
(4) Notwithstanding
that an application has been preferred under sub‑section (1), the tax,
fee or other amount shall be paid in accordance with the order or proceeding
against which the application has been preferred:
PROVIDED that the Deputy Commissioner may in his
discretion give such directions as he thinks fit, in regard to the payment of
such tax, fee or other amount before the disposal of revision, if the applicant
furnishes sufficient security to his satisfaction in such form and in such
manner as may be prescribed.
(5) No
order under this section adversely affecting a person shall be passed unless
that person has had a reasonable opportunity of being heard.
56. Special
powers of joint Commissioner
(1) The
joint Commissioner may, of his own motion, call for and examine an order passed
or proceeding recorded by the appropriate authority under sub‑section (4)
of section 16, section 21, section 23, section 25, section 26 or sub‑section
(1) or (2) of section27 or an order passed by the Deputy Commissioner under sub‑section
(1) of section 54 or sub‑section (3) of section 55 and if such order or
proceeding recorded is prejudicial to the interests of revenue, may make such
inquiry or cause such inquiry to be made and, subject to the provisions of this
Act, may initiate proceedings to revise, modify or set aside such order or
proceeding and may pass such order thereon as he thinks fit.
(2) The
joint Commissioner shall not initiate proceedings against any such order or
proceeding referred to in sub‑section (1), if-
(a) the
time for appeal against the order has not expired; or
(b) the
order has been made the subject of an appeal to the Appellate Tribunal, or of a
revision in the Special Tribunal; or
(c) more
than five years have expired after the passing of the order:
PROVIDED that if the order passed or proceeding
recorded by the appropriate authority or Deputy Commissioner referred to in sub‑section
(1) involves an issue on which the Special Tribunal has given its decision
adverse to the revenue in any other proceedings, an application to the High
Court under Article 226 or 227 against the order of the Special Tribunal and an
appeal to the Supreme Court against the order of the High Court is pending, the
period of time between the date of the above said order of the Special Tribunal
and the date of the order of the High Court or Supreme Court, as the case may
be, shall be excluded in computing the period referred to in clause (c).
(3) No
order under this section adversely affecting a person shall be passed unless
that person has had a reasonable opportunity of being heard.
(4) In
computing the period referred to in clause (c) of sub‑section (2), the
time during which the proceedings before the Joint Commissioner remained stayed
under the orders of a Civil Court or other competent authority shall be
excluded.
(1) The
Chairman of the Appellate Tribunal may, either suo motu or on application, for
reasons to be recorded in writing, transfer an appeal pending before an
Appellate Deputy Commissioner to another Appellate Deputy Commissioner or an
appeal pending before an Appellate Assistant Commissioner to another Appellate
Assistant Commissioner.
(2) The
Chairman of the Appellate Tribunal, may, when exercising the powers under sub‑section
(1) direct the stay of further proceedings before an Appellate Deputy Commissioner
or an Appellate Assistant Commissioner, as the case may be.
(3) No
order under this section adversely affecting a person shall be passed unless
that person has had an opportunity of being heard.
58. Powers
of revision by Joint Commissioner
(1) Any
person objecting to an order passed by the Deputy Commissioner under sub‑section
(1) of section 55 may, within a period of thirty days from the date on which a
copy of the order was served on him in the manner prescribed, file an
application for revision of such order to the Joint Commissioner:
PROVIDED that the Joint Commissioner may within a
further period of thirty days admit an application presented after the
expiration of the first mentioned period of thirty days, if he is satisfied
that the applicant had sufficient cause for not presenting the application
within the first mentioned period.
(2) Such
application for revision shall be in the prescribed form and shall be verified
in the prescribed manner.
(3) On
admitting an application for revision, the Joint Commissioner may call for and
examine the record of the order against which the application has been
preferred and may make such inquiry or cause such inquiry to be made and,
subject to the provisions of this Act, pass such order thereon, as he thinks
fit. Such an order shall be final and shall not be liable to be questioned in
any court of law.
(4) Notwithstanding
that an application has been preferred under sub‑section (1), the tax,
fee, or other amount shall be paid in accordance with the order against which
the application has been preferred.
(5) No
order under this section adversely affecting a person shall be passed unless
that person has had reasonable opportunity of being heard.
59. Appeal
to Appellate Tribunal
(1) Any
officer empowered by the Government or any person objecting to an order passed
by the Appellate Assistant Commissioner under sub‑section (3) of section
52, or by the Appellate Deputy Commissioner under sub‑section (3) of
section 53, or by the Deputy Commissioner under sub‑section (1) of
section 54, may,-
(a) within
a period of one hundred and twenty days, in the case of an officer so empowered
by Government;
(b) within
a period of sixty days, in the case of any other person, from the date on which
the order was served in the manner prescribed, appeal against such order to the
Appellate Tribunal:
PROVIDED that the Appellate Tribunal may, within a
further period of one hundred and twenty days in the case of an officer
empowered by Government and sixty days in the case of any other person, admit
an appeal presented after the expiration of the first mentioned period of one
hundred and twenty days and sixty days, as the case may be, if it is satisfied
that the appellant had sufficient cause for not presenting the appeal within
the first mentioned period:
PROVIDED FURTHER that no appeal filed by any person
objecting to an order passed,-
(a) under
sub‑section (3) of section 52 or under sub‑section (3) of section
53 shall be entertained unless it is accompanied by satisfactory proof of the
payment of the tax as ordered by the Appellate Assistant Commissioner or by the
Appellate Deputy Commissioner, as the case may be;
(b) under
sub‑section (1) of section 54, unless it is accompanied by satisfactory
proof of the payment of the tax admitted by the appellant to be due or of such
installments thereof as might have become payable, as the case may be, and
twenty‑five per cent of the difference of the tax ordered by the Deputy
Commissioner under section 54 and the tax admitted by the appellant:
PROVIDED Also that no appeal shall be admitted against
an order, passed by the Appellate Assistant Commissioner under section 52 or by
the Appellate Deputy Commissioner under section 53, as the case may be, setting
aside the assessment and directing the assessing authority to make a fresh
assessment.
(2) The
officer empowered under sub‑section (1) or the person against whom an
appeal has been preferred, as the case may be, on receipt of notice that an
appeal has been preferred under sub‑section (1) by the other party, may
file within sixty days of the receipt of the notice, a memorandum of cross‑objections
and such memorandum shall be disposed of by the Appellate Tribunal, as if it
were an appeal presented within the time specified in sub‑section (1):
PROVIDED that the Appellate Tribunal may, within a
further period of thirty days, admit a memorandum of cross‑objections
filed after the expiration of the first mentioned period of sixty days, if it
is satisfied that the officer empowered under sub‑section (1) or the
person against whom an appeal has been preferred, as the case maybe, had
sufficient cause for not filing the memorandum within the first mentioned
period.
(3) The
appeal and the memorandum of cross‑objections shall be in the prescribed
form and shall be verified in the prescribed manner and the appeal shall be
accompanied by such fee as may be prescribed:
PROVIDED that no fee shall be payable by the officer
empowered under sub‑section (1).
(4) In
disposing of an appeal, the Appellate Tribunal may, after giving the appellant
a reasonable opportunity of being heard, and for sufficient reasons to be
recorded in writing-
(a) in the
case of an order of assessment-
(i) confirm,
reduce, enhance, restore fully or partially, as the case maybe, or annul the
assessment or the penalty or both; or
(ii) set
aside the assessment and direct the assessing authority to make a fresh
assessment after such further inquiry as may be directed; or
(iii) pass
such other orders as it may think fit; or
(b) in the
case of any other order, confirm, cancel or vary such order:
PROVIDED that at the hearing of any appeal against an
order of the Appellate Assistant Commissioner or the Appellate Deputy
Commissioner or the Deputy Commissioner, the Government shall have the right to
be heard by a representative:
PROVIDED FURTHER that, if the appeal involves a
question of law on which the Appellate Tribunal has previously given its
decision in another appeal and either a revision petition in the Special
Tribunal against such decision or an application to the High Court under
Article 226 or 227 against the order of the Special Tribunal thereon or an
appeal to the Supreme Court against the order of the High Court is pending, the
Appellate Tribunal may defer the hearing of the appeal before it, till such
revision petition in the Special Tribunal or the application in the High Court
or the appeal in the Supreme Court is disposed of.
(5) Within
a period of sixty days from the date of receipt of notice that an appeal
against the order passed by the Appellate Assistant Commissioner under sub‑section
(3) of section 52 or an order passed by the Appellate Deputy Commissioner under
sub‑section (3) of section 53 or by the Deputy Commissioner under sub‑section
(1) of section 54 has been filed, any assessing authority or his representative
appearing before the Appellate Tribunal may file an enhancement petition or a
petition for restoration of the assessment or penalty or both, fully or
partially, as the case may be, in the prescribed form and in the prescribed
manner against the order of the Appellate Assistant Commissioner or the
Appellate Deputy Commissioner or the Deputy Commissioner, as the case may be.
The Appellate Tribunal may, after giving a reasonable opportunity to the
appellant and assessing authority or the representative of the assessing
authority of being heard, pass such orders on the petition, as it thinks fit:
PROVIDED that the Appellate Tribunal may admit an
enhancement petition or a petition for restoration of the assessment or penalty
or both, fully or partially, as the case maybe, presented after the expiration
of the said period, if it is satisfied that the assessing authority or his
representative had sufficient cause for not filing such petition within such
period.
(6) Notwithstanding
that an appeal has been preferred under sub‑section (1), the tax shall be
paid in accordance with the order of assessment against which the appeal has
been preferred:
PROVIDED that, in the case of an appeal against an
order passed by the Deputy Commissioner under sub‑section (1) of section
54, the Appellate Tribunal may, in its discretion, give such direction as it
thinks fit, in regard to the payment of the tax before the disposal of the
appeal, if the appellant furnishes sufficient security to its satisfaction, in
such form and in such manner as may be prescribed.
(7)
(a) The appellant or the
respondent may apply for review of any order passed by the Appellate Tribunal
under sub‑section (4) on the basis of the discovery of new and important
facts which after the exercise of due diligence were not within his knowledge
or could not be produced by him when the order was made:
PROVIDED that no such application shall be preferred
more than once in respect of the same order.
(b) The
application for review shall be preferred in the prescribed manner and within
one year from the date of which a copy of the order to which the application
relates was served on the applicant in the manner prescribed and where the
application is preferred by any party other than a departmental authority, it
shall be accompanied by such fee as may be prescribed.
(8) Except
as provided in the rules made under this Act, the Appellate Tribunal shall not
have power to award costs to either of the parties to the appeal or review.
(9) Every
order passed by the Appellate Tribunal under sub‑section (4) or (7) shall
be communicated in the manner prescribed to the appellant, the respondent, the
authority from whose order the appeal was preferred, the Deputy Commissioner if
he is not such authority, and the Commissioner.
(10) Every
order passed by the Appellate Tribunal under sub‑section (4) shall,
subject to the provisions of sub‑section (7) and section 62, be final.
60. Tribunals
under Article 323‑B of Constitution for sales tax matters
It is hereby declared that the assessing authority
referred to in clause (5) of section 2, the Appellate Assistant Commissioner
referred to in section 52, the Deputy Commissioner referred to in sections 53,54
and 55, the joint Commissioner referred to in sections 56 and 58, the Appellate
Tribunal appointed under section 51, and the Special Tribunal referred to in
clause (40) of section 2, shall be the hierarchy of Tribunals for purposes of
sub‑clause (a) of clause (3) of Article 323‑B of the Constitution
for adjudication or trial of any dispute or complaint with respect to levy,
assessment, collection and enforcement of sales tax matters arising under this
Act.
61. Appeal
to Special Tribunal
(1) Any
person objecting to an order passed by the J6int,Commissioner under section 56
may, within a period of sixty days from the date on which the order was served
on him, in the manner prescribed, appeal against such order to the Special
Tribunal.
(2) The
appeal shall be in the prescribed form and shall be verified in the prescribed
manner.
(3) In
disposing of an appeal, the Special Tribunal may, after giving the appellant a
reasonable opportunity of being heard,-
(a) in the
case of an order of assessment-
(i) confirm,
reduce, enhance or annul the assessment or penalty or both; or
(ii) set
aside the assessment and direct the assessing authority to make a fresh
assessment after such further inquiry as may be directed; or
(iii)
pass such order as it may think fit; or
(b) in the
case of any other order, confirm, cancel or vary such order:
PROVIDED that at the hearing of any appeal, the
assessing authority shall have the right to be heard either in person or by a
representative.
(4) Every
order passed in appeal under this section shall be final.
(5) Notwithstanding
that an appeal has been preferred under sub‑section (1), the tax shall be
paid in accordance with the order of assessment against which the appeal has
been preferred:
PROVIDED that the Special Tribunal may, in its
discretion, give such directions as it thinks fit, in regard to the payment of
the tax before the disposal of the appeal, if the appellant furnishes
sufficient security to its satisfaction, in such form and in such manner as may
be prescribed.
(6)
(a) The appellant or
respondent may apply for review of any order passed by the Special Tribunal
under sub‑section (3) on the basis of the discovery of new and important
facts which after the exercise of due diligence were not within his knowledge
or could not be produced by him when the order was made.
(b) The
application for review shall be preferred within such time, and in such manner
as may be prescribed, and shall, where it is preferred by the assessee, be
accompanied by such fee as may be prescribed.
62. Revision
by Special Tribunal
(1) Within
ninety days from the date on which a copy of the order under sub‑section
(4), (5) or (7) of section 59 is served in the manner prescribed, any person
who objects to such order or the Deputy Commissioner may prefer a petition to
the Special Tribunal on the ground that the Appellate Tribunal has either
decided erroneously or failed to decide any question of law:
PROVIDED that the Special Tribunal may, within a
further period of ninety days, admit a petition preferred after the expiration
of the first mentioned period of ninety days aforesaid if it is satisfied, that
the petitioner had sufficient cause for not preferring the petition within the
first mentioned period.
(2) The
petition shall be in the prescribed form, shall be verified in the prescribed
manner, and shall, where it is preferred by any party other than the Deputy
Commissioner, be accompanied by such fee as may be prescribed.
(3) If
the Special Tribunal, on perusing the petition, considers that there is no
sufficient ground for interfering, it may dismiss the petition summarily:
PROVIDED that no petition shall be dismissed unless
the petitioner has had a reasonable opportunity of being heard.
(4)
(a) If the Special Tribunal
does not dismiss the petition summarily, it shall, after giving both the
parties to the petition a reasonable opportunity of being heard, determine the
question of law raised and either reverse, affirm or amend the order against
which the petition was preferred or remit the matter to the Appellate Tribunal,
with the opinion of the Special Tribunal on the question of law raised or pass
such order in relation to the matter as the Special Tribunal thinks fit.
(b) Where
the Special Tribunal remits the matter under clause (a) with its opinion on the
question of law raised, the Appellate Tribunal shall amend the order passed by
it in conformity with such opinion.
(5) Before
passing an order under sub‑section (4), the Special Tribunal may, if it
considers it necessary so to do, remit the petition to the Appellate Tribunal,
and direct it to return the petition with its finding on any specific question
or issue.
(6) Notwithstanding
that a petition has been preferred under sub‑section (1), the tax shall
be paid in accordance with the order against which the revision has been
preferred.
(7)
(a) The petitioner or the
respondent may apply for review of any order passed by the Special Tribunal
under clause (a) of sub‑section (4) on the basis of the discovery of new
and important facts which after the exercise of due diligence were not within
his knowledge or could not be produced by him when the order was made.
(b) The
application for review shall be preferred within such time, and in such manner
as may be prescribed, and shall, where it is preferred by any party other than
the Deputy Commissioner, be accompanied by such fee as may be prescribed.
(8) In
respect of every petition or application preferred under sub‑section (1),
or clause (a) of sub‑section (7), respectively, the costs shall be in the
discretion of the Special Tribunal.
63. Special
Powers of revision by Special Tribunal
(1) Notwithstanding
anything contained in this Act, the Special Tribunal may, of its own motion or
on application, call for and examine, the record of the Appellate Assistant
Commissioner, the Deputy Commissioner, the Joint Commissioner or the Appellate
Tribunal in respect of any proceeding under this Act to satisfy itself as to
the regularity of such proceeding or the correctness or legality or propriety
of any decision passed or order made therein, and if, in any case, it appears
to the Special Tribunal that any such decision or order should be modified,
annulled, reversed, or remitted for consideration, it may pass orders
accordingly:
PROVIDED that every application to the Special
Tribunal for the exercise of the powers under this section shall be preferred
within such period as may be prescribed:
PROVIDED FURTHER that the Special Tribunal may admit
an application after the expiration of the prescribed period if it is satisfied
that the party concerned had sufficient cause for not presenting it within such
period:
PROVIDED ALSO that this section shall not apply to any
proceeding of the Joint Commissioner under section 56, or the Appellate
Tribunal under section 59, in respect of which, appeal under section 61, or
revision under section 62, respectively, lies to the Special Tribunal.
(2) No
order prejudicial to any person shall be passed under sub‑section (1),
unless such person has been given an opportunity of making his representations.
(3) Notwithstanding
that an application has been preferred under sub‑section (1), the tax
shall be paid in accordance with the order against which the application has
been preferred:
PROVIDED that the Special Tribunal may, in its
discretion, give such directions as it thinks fit in regard to the payment of
the tax before the disposal of the application, if the applicant furnishes sufficient
security to its satisfaction, in such form and in such manner as may be
prescribed.
64. Amendment
of order of assessment etc.
(1) Where
as a result of any order passed in appeal, revision or review under this Act,
any change becomes necessary, in the order of assessment, the appropriate
appellate authority, or revising or reviewing authority may authorize the
assessing authority to amend the order of assessment accordingly and on such
amendment being made, any amount overpaid by the assessee shall be refunded to
him without interest, or the further amount of tax, if any, due from him shall
be collected in accordance with the provisions of this Act, as the case may be.
(2) Pending
the exercise of the powers of appeal, revision or review, the appropriate
appellate authority, or revising or reviewing authority may, on application
made by the assessing authority, stay the refund to the assessee of any amount
overpaid, in pursuance of the order which is the subject matter of appeal,
revision or review.
(3) Pending
the exercise of the powers of review, the reviewing authority may, on
application made by the assessee, stay the collection of further amount of tax
due from the assessee, in pursuance of the order which is the subject matter of
review before the disposal of the review application, if the assessee furnishes
sufficient security to its satisfaction, in such form and in such manner as may
be prescribed.
(1) Every
dealer, liable to pay tax under this Act, shall make available to the assessing
authority any account, register, record or other document relating to the day‑to‑day
transaction of his business.
(2) The
Appellate Assistant Commissioner or the Appellate Deputy Commissioner shall
not, for the first time, receive in evidence on behalf of any dealer in any
appeal, such account, register, record or document as is mentioned in sub‑section
(1), unless for reasons to be recorded in writing, he considers that such
account, register, record or document is genuine and that the failure to
produce the same before the assessing authority was for reasons beyond the
control of the dealer.
(3) Except
as provided in sub‑section (2), no appellate authority, or revising or
reviewing authority shall, for the first time, receive in evidence on behalf of
the dealer any such account, register, record or document as is mentioned in
sub‑section (1).
Explanation: Nothing in this section shall apply to
accounts which are built up from the initial accounts.
66. Maintenance
of up to date, true and correct accounts and records by dealers
(1) Every
person registered under this Act, every dealer liable to get himself registered
under this Act, and every other dealer who is required so to do by the
appropriate authority by notice served in the prescribed manner, shall keep and
maintain an up‑to‑date, true and correct account showing full and
complete particulars of his business and such other records as may be
prescribed in any of the languages specified in the Eighth Schedule to the
Constitution or in English, showing such particulars as may be prescribed and
different particulars as may be prescribed for different classes of dealers.
(2)
(a) Every registered dealer
shall keep at the place of business specified in the certificate of
registration, books of account for the current year. If more than one place of
business in the State is specified in the certificate of registration, the
books of account relating to each place of business for the current year shall
be kept in the place of business concerned.
(b) Every
registered dealer shall also ordinarily keep the books of account for the
previous five years at such place or places as he may notify to the registering
authority. If the registered dealer decides to change the place or places so
notified, he shall, before effecting such change, notify the same to the
registering authority.
(3) Every
registered dealer or person who moves goods in pursuance of a sale or purchase
or otherwise from one place to another shall send along with the goods moved a
bill of sale or delivery note or such other documents, as may be prescribed.
67. Powers to order production of accounts and
powers of entry, inspection, etc.
(1) Any
officer empowered by the Government in this behalf may, for the purposes of
this Act, require any dealer to produce before him the accounts, registers,
records and other documents, and to furnish any other information relating to
his business.
(2) All
accounts, registers, records and other documents maintained by a dealer in the
course of his business, the goods in his possession, and his offices, shops,
godowns, vessels or vehicles shall be open to inspection, at all reasonable
times, by such officer:
PROVIDED that no residential accommodation not being a
place of business cum-residence shall be entered into and searched by such
officer except on the authority of a search warrant issued by a Judicial
Magistrate having jurisdiction over the area, and all searches under this sub‑section
shall, so far as may be, be made in accordance with the provisions of the Code
of Criminal Procedure, 1973 (Central Act 2 of 1974).
(3) If
any such officer has reason to suspect that any dealer is attempting to evade
the payment of any tax, fee or other amount due from him under this Act, he
may, for reasons to be recorded in writing, seize such accounts, registers,
records or other documents of the dealer as he may consider necessary, and
shall give the dealer a receipt for the same. The accounts, registers, records
and documents so seized shall be retained by such officer only for so long as
may be necessary for their examination and for any inquiry or proceeding under
this Act.
(4) Any
such officer shall, for the purposes of sub‑section (2) or sub‑section
(3), also have power to enter and search any office, shop, godown, vessel,
vehicle, building or place belonging to any other dealer or any other person,
if such officer has reason to believe that a dealer keeps, or is keeping any of
his goods, accounts, registers, records or other documents in such office,
shop, godown, vessel, vehicle, building or place.
Explanation: It shall be open to the Government to
empower different classes of officers for the purpose of taking action under
sub‑sections (1), (2) and (3).
68. Powers
to inspect goods delivered to a carrier or a bailee
Where the goods are delivered to a carrier or a bailee
for transmission, the movement of the goods shall be deemed to commence at the
time of such delivery and terminate at the time when delivery is taken from
such carrier or bailee. Where before delivery is taken from him, a carrier or
bailee to whom goods are delivered for transmission, keeps the said goods in
any office, shop, godown, vessel, receptacle, vehicle or any other place of
business or any building or place, any officer empowered by the Government in
this behalf, shall have power to enter into and search such office, shop,
godown, vessel, receptacle, vehicle or other place of business or building or
place, and to examine the goods and inspect all records relating to such goods.
The carrier or bailee or the person in‑charge of the goods and records
shall give all facilities for such examination or inspection and shall, if sq
required, produce the bill of sale or delivery note or such other documents as
may be prescribed and give a declaration containing such particulars as may be
prescribed regarding the goods and give his name and address and the name and
address of the carrier or the bailee and the consignee.
69. Establishment of check‑post or
barrier and inspection of goods while in transit
(1) If
the Government consider that with a view to prevent or check evasion of tax
under this Act in any place or places in the State, it is necessary so to do,
they may, by notification, direct the setting up of a check‑post or the
erection of a barrier or both, at such place or places as may be notified.
(2) At
every check post or barrier mentioned in sub‑section (1), or at any other
place when so required by any officer empowered by the Government in this
behalf, the driver or any other person in charge of any goods vehicle or boat
shall stop the goods vehicle or boat, as the case may be, and keep it
stationary as long as may reasonably be necessary, and allow the officer in
charge of the check‑post or barrier or the officer empowered as
aforesaid, to examine the contents in the goods vehicle or boat and inspect all
documents relating to the goods carried which are in the possession of such
driver or other person in charge, for the purpose of ascertaining whether there
has been any sale or purchase of the goods carried and in case there was sale
or purchase of the goods carried, whether such sale or purchase is liable to
tax under this Act, and if so-
(a) whether
such tax has been paid, or
(b) whether
the sale or purchase of the goods carried has, for the purpose of the payment
of tax under this Act, been properly accounted for in the documents referred to
in sub‑section (5).
(3) If, on such examination
and inspection it appears-
(a)
(i) that the tax, if any
payable under this Act in respect of the sale or purchase of the goods carried,
has been paid, or
(ii) that
the sale or purchase of the goods carried has, for the purpose of payment of
tax under this Act, been properly accounted for in the documents referred to in
sub‑section (5),
the said officer shall release the goods vehicle or
boat with the goods carried; or
(b)
(i) that the tax, if any,
payable under this Act in respect of the sale or purchase of the goods carried,
has not been paid; or
(ii) that
the sale or purchase of the goods carried has, for the purpose of payment of
tax under this Act, not been properly accounted for in the documents referred
to in sub‑section (5),
and if the said officer is satisfied, after making
such enquiry as he deems fit, that with a view to prevent the evasion of tax
payable in respect of the sale or purchase of the goods carried, it is
necessary to detain the goods, he shall detain the goods and direct the driver
or any other person in charge of the goods vehicle or boat, or the consignor or
the consignee-
(i) to
pay such tax; or
(ii) to
furnish adequate security in such form and in such manner and to such authority
as may be prescribed, on behalf of the person liable to pay such tax.
(4) If
the tax is paid or the security is furnished, then the goods so detained shall
be released forthwith.
(5) The
documents referred to in sub‑sections (2) and (3) are bills of sale, or
delivery notes, or such other documents, as may be prescribed.
(6) The
driver or any other person in charge of the goods vehicle or boat shall, if so
required, give his name and address and the name and address of the owner of
the goods vehicle or boat as well as those of the consignor and the consignee
of the goods.
(7) The
driver of the goods vehicle or boat shall, on demand by the said officer,
produce for inspection his driver's licence.
(8)
(a) If the tax directed to
be paid or the security directed to be furnished under sub‑section (3) is
not paid or furnished; or
(b) if
it appears to the said officer that the driver or the person in charge of the
goods vehicle or boat is not giving the correct name and address of the owner
of the goods vehicle or of the boat, or of the consignor or of the consignee of
the goods,
and if the said officer is satisfied after making such
enquiry as he deems fit, that with a view to prevent the evasion of tax payable
in respect of the sale or purchase of the goods carried, it is necessary to
detain the goods, he shall detain the goods either in the check‑post or
elsewhere as long as may reasonably be necessary and shall ascertain the
correct name and address of the owner of the goods vehicle or boat or of the
consignor or of the consignee of the goods:
PROVIDED that no such goods shall be detained by the
said officer for more than twenty‑four hours except with the permission
of the next higher authority.
(9) The
said officer may, in his discretion, permit the driver or other person in
charge of the goods vehicle or boat to take the goods detained under sub‑section
(8) subject to an undertaking given by the driver or other person,-
(i) that
the goods shall be kept in the office, godown or other place within the State,
belonging to the owner of the goods vehicle or boat and in the custody of such
owner; and
(ii) that
the goods shall not be delivered to the consignor, consignee or any other
person without the orders of the said officer, and for this purpose the driver
or any other person in charge of the goods vehicle or boat, shall furnish an
authorisation from the owner of the goods vehicle or boat authorising him to
give such undertaking on his behalf.
(10) In
case the goods are subject to speedy and natural decay, and in the case of
other goods, where no claim is made within the prescribed period, the said
officer shall, subject to such conditions as may be prescribed, sell such goods
in open auction and remit the sale proceeds thereof in a Government Treasury:
PROVIDED that if the said officer is an officer below
the rank of a Deputy Commercial Tax Officer, the sale under this sub‑section
shall be effected by the Deputy Commercial Tax Officer having jurisdiction.
(11) Any
person entitled to such sale proceeds shall, on application to the appropriate
authority and upon sufficient proof, be paid the sale proceeds mentioned in sub‑section
(10) after deducting the expenses of the sale and other incidental charges and
the amount of sales tax due under this Act in respect of the sale or purchase
of the goods in question.
Explanation‑I For the purpose of this section,
the expression 'said officer' shall mean the officer‑in‑charge of
the check‑post or barrier or the officer empowered under sub‑section
(2).
Explanation‑II: For the purposes of this section
and sections 71 and 73, 'goods vehicle' includes a motor vehicle, vessel,
animal and any other form of conveyance.
70. Possession and submission of certain
records by owners, etc. of boats
The owner or other person in charge of a boat shall
carry with him-
(a) Bill
of sale or delivery note or such other documents as may be prescribed, and
(b) Log
Book;
(c) relating
to the goods, under transport and containing such particulars as may be
prescribed and shall submit to such officer as may be prescribed the documents
aforesaid or copies thereof within such time as may be prescribed.
71. Possession and submission of certain
records by owners, etc. of goods vehicle
The owner or other person in charge of a goods vehicle
shall carry with him-
(a) Bill
of sale or delivery note or such other documents as may be prescribed, and
(b) Goods
Vehicle Record or Trip Sheet,
(c) relating
to the goods, under transport and containing such particulars as may be
prescribed and shall submit to such officer as may be prescribed the documents
aforesaid or copies thereof within such time as may be prescribed.
(1)
(a) When a goods vehicle
carrying any goods mentioned in the Seventh Schedule, coming from any place
outside the State and bound for any other place outside the State, passes
through the State, the owner or other person in‑charge of such goods
vehicle shall obtain a transit pass in the prescribed form and in the
prescribed manner from the officer in‑charge of the first check post or
barrier, after its entry into the State.
(b) The
owner or other person in‑charge of the goods vehicle shall deliver within
the prescribed period, the transit pass to the officer in‑charge of the
last check post or barrier, before the exit of the goods vehicle from the
State.
(c) If
the owner or other person in‑charge of the goods vehicle fails to comply
with clause (b), it shall be deemed that the goods carried thereby have been
sold within the State by the owner or person in‑charge of the goods
vehicle, and such owner or person in‑charge of the goods vehicle shall,
notwithstanding anything contained in section 3, be jointly and severally
liable to pay tax in accordance with the provisions of this Act, irrespective
of the quantum of turnover and also penalty which shall be one hundred and
fifty per cent of such tax:
PROVIDED that where the goods carried by such goods
vehicle are, after their entry into the State, transported outside the State by
any other vehicle or conveyance, the onus of proving that the goods have
actually moved out of the State, shall be on the owner or person in‑charge
of the goods vehicle who originally brought the goods into the State.
Explanation: In a case where a goods vehicle owned by
a person is hired for transportation of goods by some other person, the hirer
of the vehicle shall, for the purposes of this sub‑section, be deemed to
be the owner of the goods vehicle.
(2)
(a) When any goods
specified in the Seventh Schedule, are consigned or, transferred by any goods
vehicle to another State from any place within the State, the consignor or
transferor of the goods shall obtain a transit pass in the prescribed form and
in the prescribed manner, from the assessing authority having jurisdiction over
the place from where the goods are consigned or transferred to other State.
(b) The
consignor or transferor of the goods shall deliver or cause to be delivered,
within the prescribed period, the transit pass to the officer in‑charge
of the last check post or barrier, before the exit of the goods vehicle from
the State.
(c) If
the consignor or transferor of the goods fails to comply with clause (b), it
shall be deemed that the goods carried thereby have been sold within the State
by the consignor or transferor and such consignor or transferor shall,
notwithstanding anything contained in section 3, be liable to pay tax in
accordance with the provisions of this Act, irrespective of the quantum of
turnover and also penalty which shall be one hundred and fifty per cent of such
tax.
(3) Save
as otherwise provided in sub‑sections (1) and (2), the provisions of this
Act shall apply in relation to the tax payable under sub‑sections (1) and
(2) as they apply in relation to the tax payable under this Act.
Explanation: For the purpose of this section,
"goods vehicle" includes a motor vehicle, vessel, animal and any
other form of conveyance.
(1) Whoever,
not being a registered dealer under section 37, falsely represents that he is,
or was a registered dealer at the time when he sells or buys goods shall, on
conviction, be punished with rigorous imprisonment for a term which shall not
be less than six months but which may extend to two years and with fine which
may extend to rupees ten thousand.
(2) Whoever,
knowingly furnishes a false return shall, on conviction, be punished-
(a) in
case where the amount of tax, which could have been evaded if the false return
had been accepted as true, exceeds rupees ten thousand, with rigorous imprisonment
for a term which shall not be less than six months but which may extend to two
years and with fine which may extend to rupees ten thousand;
(b) in
any other case, with rigorous imprisonment for a term, which shall not be less
than three months but which may extend to one year and with fine which may
extend to rupees ten thousand.
(3) Whoever
knowingly produces before the assessing authority, false bill, cash memorandum,
voucher, declaration, certificate or other document for any purpose referred to
in this Act shall, on conviction, be punished-
(a) in
case where the amount of tax which could have been evaded, if the such
documents had been accepted as true, exceeds rupees fifty thousand during the
period of a year, with rigorous imprisonment for a term which shall not be less
than six months but which may extend to two years and with fine which may
extend to rupees ten thousand;
(b) in
any other case, with rigorous imprisonment for a term which shall not be less
than three months but which may extend to one year and with fine which may
extend to rupees ten thousand.
(4) Whoever
knowingly keeps false account of the value of the goods bought or sold by him
in contravention of the provisions of this Act, shall, on conviction, be
punished with rigorous imprisonment for a term which shall not be less than
three months but which may extend to one year and with fine which may extend to
rupees ten thousand.
(5) Whoever
knowingly, produces false accounts, registers or documents or knowingly
furnishes false information, shall, on conviction, be punished-
(a) in
case where the amount of tax which could have been evaded, if the such
accounts, registers or documents or information had been accepted as true,
exceeds rupees fifty thousand during the period of a year, with rigorous
imprisonment for a term which shall not be less than six months but which may
extend to two years and with fine which may extend to rupees ten thousand;
(b) in
any other case, with rigorous imprisonment for a term which shall not be less
than three months but which may extend to one year and with fine which may
extend to rupees ten thousand.
(6) Whoever
collects any amount by way of tax or purporting to be by way of tax under this
Act in contravention of the provisions of sub‑section (1) of section 40
shall, on conviction, be punished with rigorous imprisonment for a term which
shall not be less than three months but which may extend to one year and with
fine which may extend to rupees ten thousand.
(7) Whoever
being an assessee, claims false input tax credit shall, on conviction, be
punished with rigorous imprisonment for a term which shall not be less than
three months but which may extend to one year and with fine which may extend to
rupees ten thousand.
(8) Whoever,
not holding licence or authorisation or permit, falsely represents at the time
he purchases or sells any goods that he holds, as the case may be, shall, on
conviction, be punished with rigorous imprisonment for a term which shall not
be less than six months but which may extend to two years and with fine which
may extend to rupees ten thousand.
(9) Whoever
issues to any person certificate or declaration in contravention of the
provisions of this Act, or a false bill, cash memorandum, voucher or other
document which he knows or has reason to believe to be false, shall, on
conviction, be punished with rigorous imprisonment for a term which shall not
be less than six months but which may extend to two years and with fine which
may extend to rupees ten thousand.
(10) Whoever-
(a) wilfully
attempts, in any manner whatsoever, to evade any tax leviable under this Act,
or
(b) wilfully
attempts, in any manner whatsoever, to evade any payment of any tax, or penalty
or interest or all of them under this Act, or
(c) fails
to comply with the requirements of any notice issued under this Act shall, on
conviction, be punished-
(i) in
case where the amount involved exceeds rupees fifty thousand during the period
of a year, with rigorous imprisonment for a term which shall not be less than
six months but which may extend to two years and with fine which may extend to
rupees ten thousand;
(ii) in
any other case, with rigorous imprisonment for a term which shall not be less
than three months but which may extend to one year and with fine which may
extend to rupees ten thousand.
(11) Whoever
aids or abets any person in commission of any act, which is punishable under
this Act, shall, on conviction, be punished with rigorous imprisonment which
shall not be less than three months but which may extend to one year and with
fine which may extend to rupees ten thousand.
(12) Whoever-
(a) carries
on business as a dealer without being registered in wilful contravention of
section 37; or
(b) fails
without sufficient cause to make an application for cancellation of his
registration as required under sub‑section (14) of section 38; or
(c) fails
without sufficient cause to furnish any information required by section . 84;
or
(d) fails
without sufficient cause to surrender the certificate of registration together
with all the unused forms as required; or
(e) without
reasonable cause, contravenes any of the provisions of the Act; or
(f) without
sufficient cause fails to issue a bill or cash memorandum as required under
this Act; or
(g) fails
without sufficient cause, when directed so to do under the provisions of this
Act to keep any accounts or record, in accordance with the directions; or
(h) fails
without sufficient cause, to comply with any requirements made of him under
this Act; or
(i) voluntarily
obstructs any officer making inspection or search or seizure under section 68
or obstructs any officer in the performance of his duties under this Act,
shall, on conviction, be punished with imprisonment
for a term which may extend to one year and with fine which may extend to
rupees ten thousand.
(13) Whoever
fails, without sufficient cause, to file any return as required under section
21 by the date and in the manner prescribed, shall, on conviction, be punished
with simple imprisonment for a term which may extend to one year and with a
fine which may extend to rupees ten thousand, which shall not be less than-
(a) rupees
two thousand, if the tax due for the period covered by the return does not
exceed rupees twenty thousand;
(b) rupees
five thousand, if the tax due for the period covered by the return exceeds
rupees twenty thousand but does not exceed rupees one lakh;
(c) rupees
ten thousand, if the tax due of the period covered by the return exceeds rupees
one lakh.
(14) Whoever
commits any of the acts specified in sub‑sections (1) to (13) and the
offence is continuing one, shall, on conviction, be punished with daily fine
not less than rupees one hundred during the period of the continuance of
offence, in addition to the punishments provided under this section.
(15) Notwithstanding
anything contained in sub‑sections (1) to (13), no person shall be
proceeded against under these sub‑sections for the acts referred to
therein if the total amount of tax evaded or attempted to be evaded is less
than rupees two hundred during the period of a year.
(16) Where
a dealer is accused of an offence specified in the above sub‑sections,
the person deemed to be the manager of the business of such dealer under
section 37, shall also be deemed to be guilty of such offence, unless he proves
that the offence was committed without his knowledge or that he exercised all
due diligence to prevent the commission thereof.
(17) No
prosecution for an offence against this Act shall be instituted in respect of
same facts on which a penalty has been imposed by the appropriate authority
under any of the provisions of this Act.
(1) The
authority empowered may, whether on application made to it in this behalf or
otherwise, give any person, who has committed or is reasonably suspected of
having committed an offence under this Act, option to pay within a specified
period, by way of composition of such offence-
(a) where
the offence consists of failure to pay, or the evasion of, any tax payable
under this Act, in addition to the tax so payable, a sum of money not exceeding
ten thousand rupees or double the amount of the tax payable, whichever is
higher, and
(b) in
other cases, a sum of money not exceeding rupees ten thousand.
(2) On
payment of such sum of money and the tax, if any, payable under this Act, no
prosecution for an offence under this Act shall be instituted in respect of the
same facts on which a composition has been allowed under this section.
(3) Where
the authority, on application made under sub‑section (1), passes an order
refusing to allow composition under this section, it shall record in writing
the reasons therefore and furnish to the applicant on request a brief statement
of the same unless in any case the prescribed authority is of the opinion that
it will not be in the public interest to furnish such statement.
No prosecution for any offence under sub‑section
(3) of section73 shall be instituted except with the written consent of the
Deputy Commissioner.
76. Assessment,
etc. not to be questioned in prosecution
(1) The
order of assessment made under this Act shall be conclusive evidence in any
prosecution or other proceedings.
(2) The
validity of the assessment of any tax, or of the levy of any fee or other
amount, made under this Act, or the liability of any person to pay any tax, fee
or other amount so assessed or levied shall not be questioned in any criminal
court in any prosecution or other proceeding, whether under this Act or
otherwise.
77. Bar of
certain proceedings
(1) No
suit, prosecution or other proceedings shall lie against any officer or servant
of the Government for any act done or purporting to be done under this Act,
without the previous sanction of the Government.
(2) No
officer or servant of the 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 or the discharge of functions imposed by or
under this Act.
78. Limitation
for certain suits and prosecutions
No suit shall be instituted against the Government and
no suit, prosecution or other proceeding shall be instituted against any
officer or servant of the Government for any act done or purporting to be done
under this Act, unless the suit, prosecution or other proceeding is instituted
within six months from the date of the act complained of.
(1) No
assessment order or the determination of liability to pay any tax, or penalty
or the recovery of any tax or penalty made under this Act or the rules made
thereunder shall be called in question in any Civil Court except as expressly
provided under this Act.
(2) No
injunction shall be granted by any court in respect of any assessment made, or
to be made, or in respect of any action taken, or to be taken, in pursuance of
any of the provisions of this Act.
80. Appearance
before any authority in proceedings
Any person who is entitled to appear before any
authority other than the Special Tribunal in connection with any proceedings
under this Act may, subject to such conditions as may be prescribed, be
represented before such authority-
(a) by
his relative or a person employed full time by him, if such relative or person
is duly authorised by him in writing in this behalf; or
(b) by
a legal practitioner; or
(c) by
an accountant or sales tax practitioner possessing the prescribed
qualifications and duly authorised by him in writing in this behalf.
81. Publication
of information in respect of assessees
(1) If
the Government is of opinion that it is necessary or expedient in the public
interest to publish the names of any assessees and any other particulars
relating to any proceedings under this Act in respect of such assessees, it
may, subject to such conditions as may be prescribed, cause to be published,
such names and particulars in such manner as they think fit.
(2) No
publication under this section shall be made in relation to any penalty
imposed, or any conviction for any offence connected with any proceedings under
this Act, until the time for presenting an appeal or a revision, as the case
may be, has expired without an appeal or revision having been presented or the
appeal or revision, if presented, has been disposed of.
Explanation: In the case of a firm, company or other association
of persons, the names of the partners of the firm, directors, managing agents,
secretaries and treasurers, or managers of the company, or the members of the
association, as the case may be, may also be published if, in the opinion of
the Government, the circumstances of the case justify it.
(1) The Government may make rules to carry
out the purposes of this Act.
(2) In
particular and without prejudice to the generality of the foregoing power,
such rules
may provide for-
(a) all
matters expressly required or allowed by this Act to be prescribed;
(b) determining
the total turnover or turnover of a dealer for the purposes of this Act;
(c) the
manner of determination of the amount payable to the dealer for the transfer of
property in goods as goods or in some other form involved in the execution of a
works contract;
(d) the
assessment to tax under this Act of business which is discontinued or the
ownership of which has changed;
(e) the
assessment to tax under this Act of any Hindu undivided family, firm or other
association of persons, where such family, firm or association is partitioned
or dissolved;
(f) the
assessment to tax under this Act of business owned by minors and other
incapacitated persons or by persons residing outside the State;
(g) the
assessment of a business owned by any person whose estate or any portion of
whose estate is under the control of the Court of Wards, the Administrator General,
the Official Trustee, or any receiver or manager appointed by or under any
order of a Court;
(h) the
administration of the check‑posts set up and barriers erected under this
Act and the regulation of the work therein;
(i) compelling
the submission of returns;
(j) the
form in which and the particulars to be contained in any declaration to be
given under this Act, the authority from whom, the conditions subject to which
and the fees subject to payment of which any form of declaration prescribed
under the Act may be obtained, the manner in which any such form may be used
and any such declaration may be furnished;.
(k) the
duties and powers of the officers appointed for the purpose of enforcing the
provisions of this Act;
(l) the
term of office, and the conditions of service, of the members of the Appellate
Tribunal;
(m) the
circumstances in which and the extent to which fees paid in pursuance of
section 60 may be refunded;
(n) the
issue of bills or cash memoranda, the class or classes of dealers who should
maintain counterfoils for the same and the particulars to be shown in and the
manner of maintenance of such counterfoils and the time for which they should
be preserved;
(o) the
maintenance of purchase bills or accounts of purchases and sales by dealers and
the time for which they should be preserved;
(p) the
issue of delivery notes in respect of goods delivered or transferred to retail
dealers in pursuance of sales effected to them, the form and manner of their
issue and the time for which they should be preserved;
(q) generally
regulating the procedure to be followed and the forms to be adopted in
proceedings under this Act.
(3)
(a) In making a rule under
sub‑section (1) or sub‑section (2), the Government may provide that
a person guilty of a breach thereof shall be punishable with fine which may
extend to rupees one thousand and, where the breach is a continuing one, with
further fine which may extend to rupees fifty for every day after the first
during which the breach continues.
(b) No
court inferior to that of a Judicial Magistrate shall inquire into or try any
offence consisting of a breach of a rule.
(4)
(a) All rules made under
this Act shall be published in the Tamil Nadu Government Gazette and, unless
they are expressed to come into force on a particular day, shall come into
force on the day on which they are so published.
(b) All
notifications issued under this Act, shall, unless they are expressed to come
into force on a particular day, come into force on the day on which they are so
published.
(5) Every
rule made or notification issued under this Act, shall, as soon as possible,
after it is made or issued, be placed on the table of the Legislative Assembly,
and if, before the expiry of the session in which it is so placed or the next
session, the Legislative Assembly agrees in making any modification in any such
rule or notification, or Legislative Assembly agrees that the rule or
notification should not be made or issued, the rule or notification shall
thereafter have effect only in such modified form or be of no effect, as the
case may be, so however, that any such modification or annulment shall be
without prejudice to the validity of anything previously done under that rule
or notification'.
83. Power,
to summon witnesses and production of documents
(1) An
assessing authority, or an appellate or revising authority including the
Appellate Tribunal or any officer of the Commercial Taxes Department, not below
the rank of an Assistant Commercial Tax Officer shall, for the purposes of this
Act, have all the powers conferred on a court by the Code of Civil Procedure,
1908 (Central Act V of 1908), for the purpose of-
(a) summoning
and enforcing the attendance of any person and examining him on oath or affirmation;
and
(b) compelling
the production of any document.
(2) Without
prejudice to the provisions of any other law for the time being in force, where
a person to whom a summon is issued either to attend to give evidence, or
produce accounts, registers, records or other documents at a certain place and
time intentionally omits or fails to attend or produce accounts, registers,
records or other documents at such place or time, the authority or officer
mentioned in sub‑section (1) may, after giving the person concerned a
reasonable opportunity of being heard, impose upon him by way of penalty a sum
not exceeding rupees five hundred as it or he thinks fit.
(3) Any
officer of the Commercial Taxes Department, not below the rank of an Assistant
Commercial Tax Officer shall have powers to call for such information,
particulars or records as he may require from any person for the purposes of
assessment, levy and collection of tax under this Act.
(1) An
assessing authority, or appellate or revising authority under this Act or any
officer of the Commercial Taxes Department not below the rank of an Assistant
Commercial Tax Officer may by writing, require any person or authority to
furnish such informations, particulars or records available with that person or
authority as will be useful or relevant to any proceeding under this Act.
(2) The
person or authority from whom such informations, particulars or records is or
are required under sub‑section (1) shall furnish, within a reasonable
time, the informations, particulars or records if available.
85. Power
to remove difficulties
If any difficulty arises in giving effect to the
provisions of this Act, the Government may, by notification in the Tamil Nadu
Government Gazette, make such provisions not inconsistent with the provisions
of this Act as appear to them to be necessary or expedient for removing the
difficulty:
PROVIDED that no such notification shall be made after
the expiry of a period of two years from the date of commencement of this Act.
86. Power
to rectify any error apparent on the face of the record
(1) An
assessing authority or an appellate or revising authority including the
Appellate Tribunal may, at any time within five years from the date of any
order passed by it, rectify any error apparent on the face of the record:
PROVIDED that no such rectification which has the
effect of enhancing an assessment or any penalty shall be made unless such
authority has given notice to the dealer and has allowed him reasonable
opportunity of being heard.
(2) Where
such rectification has the effect of reducing an assessment or penalty, the
assessing authority shall make any refund, which may be due to the dealer.
(3) Where
any such rectification has the effect of enhancing an assessment or penalty,
the assessing authority shall give the dealer a revised notice of assessment or
penalty and thereupon the provision of this Act and the rules made thereunder
shall apply as if such notice had been given in the first instance.
(4) The
powers under sub‑section (1) may be exercised by the assessing
authorities even though the original order of assessment, if any, passed in the
matter has been the subject matter of an appeal or revision.
(5) The
provisions of this Act relating to appeal and revision shall apply to an order
or rectification made under this section as they apply to the order in respect
of which such order of rectification has been made.
87. Prohibition of disclosure of particulars
produced before sales tax authorities
(1) All
particulars contained in any statement made, return furnished or accounts,
registers, records or documents produced under the provisions of this Act or in
any evidence given or affidavit or deposition made, in the course of any
proceeding under this Act or in any record of any proceeding relating to the
recovery of .1 demand, prepared for the purposes of this Act shall be treated
as confidential and shall not be disclosed.
(2) Nothing
contained in sub‑section (1) shall apply to the disclosure of any such
particulars-
(a) for
the purpose of investigation of, or prosecution for, an offence under this Act,
or under the Indian Penal Code (Central Act XLV of 1860) or under any other law
for the time being in force; or
(b) to
any person enforcing the provisions of this Act where it is necessary to
disclose the same to him for the purposes of this Act; or
(c) occasioned
by the lawful employment under this Act of any process for the recovery of any
demand; or
(d) to
a civil court in any suit to which the Government are party and which relates
to any matter arising out of any proceeding under this Act; or
(e) occasioned
by the lawful exercise by a public servant of his powers under the Indian Stamp
Act, 1899 (Central Act 11 of 1899), to impound an insufficiently stamped
documents; or
(f) to
an officer of-
(i) the
Government of India; or
(ii) the
Government of any State or Union Territory in India with which an arrangement
for disclosure on a reciprocal basis has been entered into by the Government;
or
(g) to an
officer of any department other than the Commercial Taxes Department of the
Government after obtaining-
(i) the
permission of the Assistant Commissioner of the district where such particulars
are to be furnished by an officer subordinate to the Assistant Commissioner,
and
(ii) the
permission of the Commissioner of Commercial Taxes where such particulars are
to be furnished by an Assistant Commissioner or an Appellate Assistant Commissioner
or an Appellate Deputy Commissioner or a Deputy Commissioner or a Joint
Commissioner:
PROVIDED that such particulars shall be furnished
under this clause only in exceptional cases and that any officer obtaining such
particulars shall keep them as confidential and use them only in the lawful
exercise of the powers conferred by or under any enactment;
(h) Nothing
herein contained shall prevent the publication of the final assessment of any
party in the prescribed manner.
(1) The
Government may, by notification, alter, add to or cancel any of the Schedules.
(2) Where
a notification has been issued under sub‑section (1) there shall, unless
the notification is in the meantime rescinded, be introduced in the Legislative
Assembly, as soon as may be, but in any case during the next session of the
Legislative Assembly following the date of the issue of the notification, a
Bill on behalf of the Government, to give effect to the alteration, addition or
cancellation, as the case may be, of the Schedules specified in the
notification, and the notification shall cease to have effect when such Bill
becomes law whether with or without modifications, but without prejudice to the
validity of anything previously done thereunder:
PROVIDED that if the notification under sub‑section
(1) is issued when the Legislative Assembly is in session, such a Bill shall be
introduced in the Legislative Assembly during that session:
PROVIDED FURTHER that where for any reason a Bill as
aforesaid does not become law within six months from the date of its
introduction in the Legislative Assembly, the notification shall cease to have
effect on the expiration of the said period of six months.
(3) All
references made in this Act to any of the Schedules shall be considered as
relating to the Schedules as for the time being amended in exercise of the
powers conferred by this section.
(1) The
Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act 1 of 1959) (hereafter in
this section referred to "the said Act") is hereby repealed:
PROVIDED that such repeal shall not affect the
previous operation of the said Act 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, regulation, certificate, licence or permit in exercise of
any power conferred by or under the said Act, shall be valid and always as deemed
to have been valid, during the period the said Act was in force notwithstanding
the repeal of the said Act.
(2) A
registered dealer, who would have continued to be so under the said Act, had
this Act not come into force, and who makes an application for registration in
terms of the provisions of sub‑section (1) of section 37 shall be a
registered dealer till a fresh certificate of registration is granted to him
under this Act.
(3) Notwithstanding the
repeal of the said Act,‑
(a) any
action or proceedings already initiated under the said Act shall validly be
continued under the provisions of the said Act‑which relates to the
period prior to the coming into force of this Act;
(b) any
person liable to pay any tax, fee, penalty, interest or other amount under the
said Act for any period before coming into force of this Act, shall be levied,
assessed and collected under the provisions of this Act, as if this Act were in
force during the said period;
(c) any
person appointed by the Government as the Commissioner, Joint Commissioner,
Deputy Commissioner, Assistant Commissioner and Commercial Tax Officer under
section 48 and continuing in office as such immediately before the commencement
of this Act, shall, on and from the date of commencement of this Act, be deemed
to have been appointed under this Act and shall continue in office as such till
such person ceases to be the Commissioner, joint Commissioner, Deputy
Commissioner, Assistant Commissioner and Commercial Tax Officer;
(d) the
Chairman or any members of the Appellate Tribunal appointed under section 51
and continuing in office as such immediately before the commencement of this
Act, shall, on and from the date of commencement of this Act, be deemed to have
been appointed as the Chairman and members of the Appellate Tribunal under this
Act and shall continue in office as such till he ceases to be such Chairman or
member;
(e) the
officers of the enforcement wing who had jurisdiction and powers under the said
Act immediately before the commencement of this Act, shall on and from the
commencement of this Act, be deemed to have been continued, and shall have
jurisdiction and powers, under this Act;
(f) any
accounts, registers or documents of any dealer retained before the commencement
of this Act under any of the provisions of the said Act, shall on the day
immediately before the commencement of this Act, continued to be retained in
accordance with provisions of this Act;
(g) any
goods including goods detained before the commencement of this Act under any of
the provisions of the said Act and not released before the commencement of this
Act, shall continue to remain detained until such goods are released in
accordance with the provisions of this Act;
(h) all
rules, regulations, notifications, clarifications or orders made or issued
under any of the provisions of the said Act and continuing in force on the date
immediately before the commencement of this Act, shall continue in force on or
after such date in so far as they are not inconsistent with the provisions of
this Act or the rules made thereunder until they are repealed or amended.
(4) All
arrears of tax, interest, penalty, fee or other amount due on the date of
commencement of this Act, whether assessed or levied before such commencement,
or assessed or levied after such commencement, may be recovered as if such tax,
penalty, interest, fee or other amount is assessed or levied under the
provisions of this Act and all methods of recovery including levy of penalty,
interest or prosecution provided under this Act, shall apply to such arrears,
as if such amounts are assessed, levied and demanded under this Act.
(5) Notwithstanding
anything contained in sub‑section (1), any application, appeal, revision
or other proceedings made or preferred to any authority under the said Act, and
pending at the commencement of this Act, shall, after such commencement, be
transferred to and disposed of by the officer or authority who would have had
jurisdiction to entertain such application, appeal, revision or other
proceedings under this Act, as if it had been in force on the date on which
such application, appeal, revision or other proceedings was made or preferred.
(6)
(a) Every registered
dealer is entitled to input tax credit of tax paid under the said Act on goods
held in stock on the date of commencement of this Act, if such goods were
purchased not more than three months prior to the date of commencement of this
Act, subject to the conditions as maybe prescribed: PROVIDED that the
registered dealer, who claims input tax credit on stock, shall prove that the
tax on those goods was actually paid by him under the provisions of the said
Act.
(b) The
registered dealer, who claims input tax credit on stock, shall furnish to the
assessing authority, stock inventory with the details of purchases within
fifteen days from the date of commencement of this Act.
PART ‑ A
PART ‑ B
GOODS WHICH ARE TAXABLE AT REVENUE NEUTRAL RATE
TO BE FIXED AT BY THE GOVERNMENT
PART ‑ C
PART ‑ D
1. Sugarcane
GOODS WHICH ARE LIABLE TO TAX UNDER SEC. 3(4)
|
S1. No. |
Description
of the goods |
Point of
levy |
Rate of
tax |
Rate of
SAT |
|
1 |
2 |
3 |
4 |
5 |
|
|
|
|
|
|
PART ‑ A
[Refer Section 7]
PART ‑ B
[Refer Section 9]
GOODS EXEMPTED FROM TAX
BY SECTION 14
|
S.NO. |
Description
of the goods |
|
|
|
[Refer sub‑section (2) of section 17]
[Refer sub‑section (12) of section 2]
[Refer Section 72]