Rupee hits all time low of 55 against Dollar Facebook shares drop below issue price FM okays transfer & posting orders of Commissioners of Customs & Excise-A dozen Commissioners posted in NCR in transfer list-Commissioner Gurgaon & Ghaziabad also in the list according to North Block sources Government tables White Paper on Black Money in Parliament India's first Interactive Online Course on Service Tax launched-Click on the link-Service Tax Online Certification Course-for full details and registration-Course begins on 22nd May 167 IRS(Customs & Excise) Probationers get postings- A dozen Probationers posted in Delhi Central Excise Rajya Sabha passes Finance Bill 2012 Petrol & Diesel prices to be hiked Tariff Value for import of Brass scrap is 4362 & for poppy seeds 3680-for gold 507 per 10 gram & for silver 920 per kg-Customs Non-Tariff Notification No.42 Customs duty exempted on import of 191 Products from Singapore-Customs Tariff Notification No.33 Import of 485 Products from Singapore exempted from Customs duty-Customs Tariff Notification No.34 Import of 496 Products from Singapore exempted from 50 per cent of applied rate of duty-Customs Tariff Notification No.35 Saurabh Chandra gets additional charge of Commerce Secretary ITAT Member N Vasudevan transferred from Mumbai to Bangalore-J Sudhakar Reddy moves from Mumbai to Delhi-IP Bansal from Delhi to Mumbai-IC Sudhir from Pune to Delhi CVD on imported electronics lowered due to higher rates of abatement from RSP notified-Abatement from MRP for excise payment on all electronic products prescribed at uniform rate of 35 per cent-Abatement revised for several products-Central Excise Non-Tariff Notification No.26 Suppliers to Mega Power Projects face silly excise demands-Click on the link below for full details Excise demand of Rs 32 Crore confirmed against Exide for not paying excise on MRP basis on lead acid storage battery RBI says Exporters required to convert 50 per cent of their foreign exchange holdings into Rupee within 15 days-Exporters will be allowed to buy foreign currency only after utilizing all their foreign currency holdings Articles of jewellery exempted from excise duty-Specified Railway Goods manufactured by Government exempted from excise -Central Excise Tariff Notification No.23 Excise on specified Petroleum Oils lowered Eye makeup preparations exempted from excise The excise exemption hitherto admissible on all Hawai Chappals will now be admissible to only Hawai Chappals of RSP up to Rs 500-Polyester staple fibre or polyester filament yarn, manufactured from plastic scrap or plastic waste including waste polyethylene terephthalate bottles exempted from excise-Excise on Motor chassis for vehicles lowered to 14 per cent excise-Excise on LED Lights of Chapter 85 lowered to 6 per cent-Inks for ball point pens exempted from excise-Central Excise Tariff Notification No.24-Parts of Footwear and hawai chappals of RSP not exceeding Rs. 500 per pair exempted from excise if consumed in factory-Central Excise Tariff Notification No.25-Excise exemption to goods required for initial setting up of solar power generation project or facility-Central Excise Tariff Notification No.26 CENVAT Credit (Fifth Amendment) Rules, 2012-No reversal of credit required for supplies made for setting up of solar power generation projects or facilities-Central Excise Non-Tariff Notification No.25 exemption from wholeof the additional duty leviable shall not apply to Hand held Metal/Mine/Bomb detectors etc.-Customs Tariff Notification No.30 Import of specified goods allowed at concessional rate of duty-Customs Notification No.31 FM defers the applicability of GAAR provisions by one year- GAAR provisions will now apply to income of Financial Year 2013-14 and subsequent years-The retrospective clarificatory amendments now under consideration of Parliament will not be used to reopen any cases where assessment orders have already been finalized-long term capital gain arising from sale of unlisted securities in case of non-resident investors, including PE investors lowered to 10 per cent-FM extends benefit of tax exemption on long term capital gains to sale of unlisted securities in IPO-lower rate of withholding tax of 5% for funding all businesses-FM withdraws the provision for levy of TDS on transfer of immovable property-FM raises the threshold limit for TCS on cash purchases of jewellery to Rs.5 lakh-only serious offences under the customs law involving prohibited goods or duty evasion exceeding Rs.50 lakh, shall be cognizable- all these offences shall be bailable-changes in the definition of “service” which will exclude the activities specified in the Constitution as “deemed sale of goods”-The definition of “works contract” also enlarged to include movable properties- Exemption for specified services relating to agriculture in the Negative List extended to agricultural produce enlarging the scope of the entry Anti-dumping duty on imports of Partially Oriented Yarn, originating in, or exported from China-Customs Notification No.22 Customs duty on import of 806 Products from Japan lowered Anti-dumping duty imposed on import of Phosphoric Acid of all grades and all concentrations (excluding Agriculture/FertilizerGrade) , falling under tariff item 28092010, originating in, or exported from,Israel and Taiwan-Customs Tariff Notification No.19 Customs duty on import of composite fertiliser lowered to 1 per cent-Customs Tariff Notification No. 24

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DRAFT TAMIL NADU VALUE ADDED SALES TAX BILL, 2003

ARRANGEMENT OF CLAUSES .

Clauses:

Short title and commencement

Definitions

Levy of taxes on sales of goods

Levy of tax on right to use any goods

Levy of tax on the transfer of goods involved in works contract

Levy of tax on food and drinks

Payment of tax at compound rate by hotels, restaurants and
sweet-stalls

Levy of tax on bullion and jewellery

Payment of tax at compound rate by dealers in jewellery

10.

Levy of tax on sugarcane

11.

Levy of purchase tax

12.

Deduction of tax at source in works contract

13.

Reversal of tax credit

14.

Exempted sale

15.

Stage of levy of tax in respect of imported and exported goods

16.

Burden of proof

17.

Zero rating

18.

Input tax credit

19.

Assessment of tax

20.

Filing of returns

21.

Procedure to be followed by assessing authority

22.

Procedure when assessee claims identical question of law is pending before Special Tribunal, High Court or Supreme Court

23.

Assessment of sales shown in accounts at low prices

24.

Advance payment of tax

25.

Fresh assessment in certain cases

26.

Assessment on legal representatives

27.

Assessment of escaped turnover

28.

Assessment of turnover not disclosed in compounding provisions

29.

Power to reduce or waive penalty in certain cases

30.

Assessment in case of price variation

31.

Appointment of Special Committee

32.

Power of Government to notify exemption or reduction of tax

33.

Liability of tax of persons not observing restrictions and conditions

34.

Liability of firms

Liability to tax of partitioned Hindu family, dissolved firm, etc

Liability to tax private company on winding up

Clauses:

37.

Registration of dealers

38.

Procedure for registration

39.

Issue of permit

Collection of tax

Forfeiture of tax collection

42.

Payment and recovery of tax, penalty, etc.

43.

Transfer to defraud revenue void

44.

Recovery of penalty or interest

45.

Further mode of recovery

46.

Recovery of tax where business of dealer is transferred

47.

Rounding off turnover, tax, etc.

48.

Appointment of Commissioner of Commercial Taxes, Joint Commissioners of Commercial Taxes, Appellate Deputy Commissioners of Commercial Taxes, Deputy Commissioners, Assistant Commissioners of Commercial Taxes and Commercial Tax Officers

49.

Power to issue clarifications by Commissioner

50.

Special powers of Assistant Commissioners under Revenue Recovery Act

51.

Constitution of Appellate Tribunal

52.

Appeal to Appellate Assistant Commissioner

53.

Appeal to Appellate Deputy Commissioner

54.

Special powers of Deputy Commissioner

55.

Powers of revision of Deputy Commissioner

56.

Special powers of Joint Commissioner

57.

Power to transfer appeals

58.

Powers of revision by Joint Commissioner

59.

Appeal to Appellate Tribunal

60.

Tribunals under Article 323-B of the Constitution for sales tax matters

61.

Appeal to Special Tribunal

62.

Revision by Special Tribunal

63.

Special powers of revision by Special Tribunal

64.

Amendment of order of assessment, etc.

65.

Production of accounts

66.

Maintenance of upto date, true and correct accounts and records by dealers

67.

Powers to order production of accounts and powers of entry, inspection, etc.

68.

Powers to inspect goods delivery to a carrier or a bailee

69.

Establishment of check post or barrier and inspection of goods while in transit

70.

Possession and submission of certain records by owners, etc. of boats

71.

Possession and submission of certain records by owners, etc. of goods vehicle

Clauses:

72.

Issue of transit pass

73.

Offences and penalties

74.

Composition of offences

75.

Cognizance of offences

76.

Assessment, etc. not to be questioned in prosecution

77.

Bar of certain proceedings

78.

Limitation for certain suits and prosecutions

79.

Bar of suits and proceedings to set aside or modify assessments or from the recovery of any tax or penalty made under this Act except as provided in this Act

80.

Appearance before any authority in proceedings

81.

Publication of information respecting assessees

82.

Power to make rules

83.

Power to summon witnesses and production of documents

84.

Power to get information

85.

Power to remove difficulties

86.

Power to rectify any error apparent on the face of the record

87.

Prohibition of disclosure of particulars produced before sales tax authorities

88.

Power to amend schedules

89.

Repeal and savings

Schedules to the Act

DRAFT

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. (1) This Act may be called the Tamil Nadu Value Added Sales Tax Act, 2003.

Short title

and

commencement.

(2) It shall come into force on such date as Government may, by notification, appoint.

2. In this Act, unless the context otherwise requires, –

Definition.

(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 appointed 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 del credere agent or an auctioneer, or any other mercantile agent by whatever name called, and whether of the same description as herein before 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 otherwise, 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;

Central Act 24 of 1989.

(iii) Railways administration as defined under the Railways Act, 1989;

(iv) Shipping, transport and construction companies;

(v) Air Transport Companies and Airlines;

Central Act 59 of 1988.

(vi) Any person holding permit for the transport vehicles granted under the Motor Vehicles Act, 1988 which are used or adopted to be used for hire;

(vii) The Tamil Nadu State Road Transport Corporations;

Central Act 52 of 1962.

(viii) Customs Department of the Government of India administering the Customs Act, 1962;

Central Act II of 1934.

(ix) Insurance and financial corporations or companies and banks included in the Second Schedule to the Reserve Bank of India Act, 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.

Central Act 74 of 1956.

(17) “declared goods” means goods declared by section 14 of the Central Sales Tax Act, 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;

Central Act V of 1908.

(27) “legal representative” shall have the same meaning as assigned to it in clause (11) of section 2 of Code of Civil Procedure, 1908;

(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-III 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, del credere 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, del credere 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.

Tamil Nadu Act 42 of 1992.

(40) “Special Tribunal” means as defined in clause (i) of section 2 of the Tamil Nadu Taxation Special Tribunal Act, 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, del credere 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, del credere 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. (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.

Levy of taxes on sales of goods

(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 pay 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. (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

Levy of tax on right to use any goods

(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.(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.

Levy of tax on transfer of goods involved in works contract

(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

Sl.

No.

Type of works contract

Labour or other charges as a percentage value of the works contract.

(1)

(2)

(3)

Electrical Contracts

All structural contracts

Sanitary contracts

Watch and / or clock repair contracts

Dyeing contracts

All other contracts

(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.(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.

Levy of tax on food and drinks.

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.(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.

Payment of tax at compound rate by hotels, restaurants and sweet-stalls.

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 30^th 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. (1) Notwithstanding anything contained in this Act,-

Levy of tax on bullion and jewellery.

(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. (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.

Payment of tax at compound rate by dealers in jewellery

(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 30^th 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.

10. (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.

Levy of tax on sugarcane.

11. 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 -

Levy of purchase tax.

(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

(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) instals and uses such goods in the factory for the manufacture of any goods,

and such tax shall be levied at the same 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. (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:-

Deduction of tax at source in works contract.

(i) Civil works contract

Two per cent of the total amount payable to such dealer:

(ii) All other works contracts

Four per cent 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;

Central Act 1 of 1956.

(iv) a company incorporated under the Companies Act, 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 upgradation of such civil work by means of fixing and laying of all kinds of floor tiles, mosaic tiles, slabs, 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.

13. 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.

Reversal of tax credit.

14. Sale of goods specified in the Fourth Schedule by any dealer is exempt from tax.

Exempted sale.

15. (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;

Stage of levy of taxes in respect of imported and exported 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:

Central Act 74 of 1956.

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, a sale or purchase in the course of export, the series of sales or purchases 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.

16. (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.

Burden of proof.

(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.

Central Act 74 of 1956.

17. (1) A sale as specified under sub-section (1) of section 5 of the Central Sales Tax Act, 1956 shall be zero rate sale.

Zero-rating.

(2) Sale of any goods to international organisations 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.

18. (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:

Input tax credit.

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

Central Act 74 of 1956.

(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, 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.

(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 from 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 utilised 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.

19. The tax under this Act shall be assessed, levied and collected in such manner as may be prescribed.

Assessment of tax.

20. 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.

Filing of returns.

21. (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.

Procedure to be followed by assessing authority.

(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 sub-
section (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 it 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.

22. (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.

Procedure when assessee claims identical question of law is pending before Special Tribunal, High Court or Supreme Court.

(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. (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.

Assessment of sales shown in accounts at low prices.

(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.

24. (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.

Advance payment of tax.

(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. (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.

Fresh assessment in certain cases.

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. 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.

Assessment of legal representatives.

27. (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.

Assessment of escaped turnover.

(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 willful 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 under 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. (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.

Assessment of turnover not disclosed under compounding provisions.

(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. (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 --

Power to reduce or waive penalty in certain cases.

(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. Notwithstanding anything contained in sections 28, 29 and 30 –

Assessment in cases of price variation.

(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 clauses (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 willful non-disclosure of assessable turnover by the dealer to the satisfaction of the assessing authority.

31. (1) The Government shall appoint a Special Committee consisting of-

Appointment of Special Committee.

(a) the Secretary to Government, in-charge of Commercial Taxes;

(b) the Secretary to Government, in-charge of Finance or his nominee;

(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. (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—

Power of Government to notify exemption or reduction of tax.

(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) may be subject to such restrictions and conditions as may be 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. 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.

Liability of tax of persons not observing restrictions and conditions notified under section 32.

34. (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.

Liability of firms.

(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. 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, —

Liability to tax of partitioned Hindu family, dissolved firm, etc.

(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. 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.

Liability to tax private company on winding up.

37. (1) (a) 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.

Registration of dealers.

(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;

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, del credere 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) may be subject to such restrictions and conditions as may be 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. (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:

Procedure for registration.

Central Act 1 of 1956.

Provided that any dealer who has registered under the Companies Act, 1956 and who desires to pay the registration fees for five years in a lumpsum 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 upto 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 realisation 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 realising 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.

39. (1) Every registered dealer who transacts business at places other than his registered place or places of business or employs a traveling salesman or representative to transact business as aforesaid shall obtain a permit issued under this Act authorising him so to do.

Issue of permit.

(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 authorisation to the assessing authority concerned;

(b) The authorisation shall be in such form, shall contain such particulars, and shall be subject to such conditions, as may be prescribed;

(4) The entire turnover of business carried on under the permit and authorisation 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 done 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 authorisation, 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 authorisation, 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 authorisation, 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.

40. (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:

Collection of tax.

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. 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.

Forfeiture of tax collected.

42. (1) Save as otherwise provided for in sub-section (2) of section 24, the tax assessed or 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 instalments, 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.

Payment and recovery of tax, penalty, etc.

Tamil Nadu Act 30 of 1983.

(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, 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 instalments, 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. 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:

Transfers to defraud revenue void.

Provided that, such charge or transfer shall not be void if it is made -

(a) for adequate consideration and without notice of the pendency 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. 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.

Recovery of penalty or interest.

45. (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 –

Further mode of recovery.

(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. 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:

Recovery of tax where business of dealer is transferred.

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 assets he obtained by transfer.

47. 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.

Rounding off of turnover, tax, etc.

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.. 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.

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.

49. (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.

Power to issue clarification by Commissioner.

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).

Tamil Nadu Act II of 1864.

50. (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 for the purposes of recovery of any amount due under this Act.

Special powers of Assistant Commissioner under Revenue Recovery Act.

Central Act VII of 1839

(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, for the sale of property distrained for any amount due under this Act.

Central Act VII of 1839.

(3) Notwithstanding anything contained in the Tamil Nadu Rent and Revenue Sales Act, 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. (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.

Constitution of Appellate Tribunal.

(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 a 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. (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:

Appeal to Appellate Assistant Commissioner.

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 instalments 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 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 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. (1) Any person objecting to an order passed by the Assistant Commissioner (Assessment) 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-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:

Appeal to Appellate Deputy Commissioner.

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 instalments 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.

54. (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.

Special powers of Deputy Commissioner.

(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

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. (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:

Powers of revision of 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 made 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. (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 section 27 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.

Special powers of Joint Commissioner.

(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

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.

57. (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.

Power to transfer appeals.

(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. (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:

Powers of revision by 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. (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,--

Appeal to Appellate Tribunal.

(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 instalments 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 may be, 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 may be, 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: