Gujarat act 013 of 1998 : Gujarat Sales Tax (Amendment) Act, 1998

Section 1. Short title and commencement

1. Short title and commencement.- (1) This Act may be called the Gujarat Sales Tax (Amendment) Act, 1998.

(2) It shall come into force on the 1st August, 1998.

Section 2. Amendment of section 2 of Guj. I of 1970

2. Amendment of section 2 of Guj. I of 1970.- In the Gujarat Sales Tax Act, 1969 (Guj. I of 1970) (hereinafter referred to as "the principal Act"), in section 2,-

(1) after clause (3), the following clause shall be inserted, namely:-

"(3A) "brand" means a particular make of goods, indicated by a trademark or a mark such as symbol, monogram or label or other method, whether registered or not";

(2) for clause (21), the following clause shatf be substituted, namely:-

"(21) "prohibited goods" means the goods described in entires 2, 4, 5, 12, 15, 17, 19, 20, 21, 22, 25, 27, 32, 33, 34, 35, 36, 37, 38, 40, 42, 44, 45, 46, 54, 55 and 60 in Schedule II, Part A or in entries 1 and 7 in Schedule-II, Part B and such other goods as the State Government may, from time to time, by notification in the Official Gazette, specify,";

(3) in clause (25), the words and figures "or 30" shall be deleted;

(4) in clause (26), for the figures and letter "15, 19A" the figures "15" shall be substituted;

Section 3. Amendment of section of Guj. 1 of 1970

3. Amendment of section of Guj. 1 of 1970.- In the principal Act, in section 3, in sub-section (4),-

(1) in clause (ii), for the words, brackets and figures "to whom clauses (i), (iii) and (iv) do not apply", the words, brackets figures and letter "to whom clauses (ia), (i), (iii) and (iv) do not apply," shall be substituted;

(2) in clause (iii)-

(a) for the letters and figures "Rs. 75000", the letters and figures "Rs. 2,00,000" shall be substituted;

(b) for item (a), the following item shall be substituted, namely:-

"(a) in the case of a dealer who is an importer to whom clause (i) does not apply and the value of any taxable goods sold or purchased by him during the year exceeds Rs. 10,000 and the value of any taxable goods brought by him into the State or despatched to him from outside the State during the year exceeds Rs. 10,000, or";

(c) in item (b), for the letters and figures "Rs. 5000", the letters and figures "Rs. 10,000" shall be substituted;

(d) in item (c)-

(i) for the words, brackets and figure "to whom neither clause (i)" the words, brackets, figures and letter "to whom neither clause (ia) nor clause (i)" shall be substituted;

(ii) for the letters and figures "Rs. 5000" occurring at two places, the letters and figures "Rs. 10000" shall be substituted;

(3) in clause (iv),-

(a) for the letters and figures "Rs. 2,00,000", the letters and figures "Rs. 5,00,000" shall be substituted;

(b) for the words, brackets and figures "to whom neither clause (i)", the words, brackets, figures and letter "to whom neither clause (ia) nor clause (i)" shall be substituted;

(c) for the letters and figures "Rs. 5,000", the letters and figures "Rs. 10,000" shall be substituted.

Section 4. Amendment of section 12 of Guj. 1 of 1970

4. Amendment of section 12 of Guj. 1 of 1970.- In the principal Act, in section 12,-

(1) in clause (1),-

(a) in sub-clause (b), the word "or" occurring at the end shall be deleted;

(b) sub-clause (aa) shall be deleted;

(2) in clause (2),-

(a) in sub-clause (c), the word "or" occurring at the end shall be deleted;

(b) sub-clause (aa) shall be deleted.

Section 5. Amendment of section 16 of Guj. 1 of 1970

5. Amendment of section 16 of Guj. 1 of 1970.- In the principal Act, in section 16, in sub-section (5), the portion beginning with the words "the sales tax levied" and ending with the words and figures "of lection 12, or" shall be deleted.

Section 6. Amendment of section 17 of Guj. 1 of 1970

6. Amendment of section 17 of Guj. 1 of 1970.- In the principal Act, in section 17, in sub-section (1) and (2) for the figures and letters "15A, 16, 19A" the figure and letter "15A, 16" shall be substituted.

Section 7. Deletion of section 19A of Guj. 1 of 1970

7. Deletion of section 19A of Guj. 1 of 1970.- In the principal Act, section 19A shall be deleted.

Section 8. Amendment of section 19B of Guj. 1 of 1970

8. Amendment of section 19B of Guj. 1 of 1970.- In the principal Act, in section 19B, the words "or peanut" wherever they occur, shall be deleted.

Section 9. Amendment of section 29 of Guj. 1 of 1970

9. Amendment of section 29 of Guj. 1 of 1970.- In the principal Act, in section 29, to sub-section (3), the following proviso shall be added, namely:-

"Provided that where an application is made under sub-section (2) by a dealer whose earlier certificate of registration is cancelled under clause (b) of sub-section (2) of section 30AA, the prescribed authority shall not register the applicant nor issue to him a certificate of registration unless the applicant furnishes the declarations or returns as required by the notice served upon him under clause (a) of sub-section (2) of section 30AA in relation to the cancellation of certificate of registration and makes payment of penalty, if any, imposed under sub-section (3A) of section 45.".

Section 10. Deletion of section 30 of Guj. 1 of 1970

10. Deletion of section 30 of Guj. 1 of 1970.- In the principal Act, section 30 shall be deleted.

Section 11. Amendment of section 30AA of Guj. 1 of 1970

11. Amendment of section 30AA of Guj. 1 of 1970.- In the principal Act, section 30AA shall be renumbered as sub-section (1) of that section; and

(1) in sub-section (1) as so renumbered, in the proviso, for the words "under this section" the words "under this sub-section" shall be substituted; and

(2) after sub-section (1) as so renumbered, the following sub-sections shall be added, namely:-

(2)(a) Where a dealer does not furnish declaration or return for three or more consecutive periods in contravention of sub-section (1) of Section 40, the Commissioner shall serve on such dealer in the prescribed manner a notice requiring him on or before the date specified therein to furnish or cause to be furnished declarations or returns for the periods specified therein.

(b) Where a dealer fails to furnish declarations or returns as required by the notice served upon him under clause (a), before the expiry of the date specified therein, the Commissioner shall, without prejudice 10 any penalty leviable on such dealer under this Act, cancel the certificate of registration of such dealer:

Provided that notwithstanding the cancellation of a certificate of registration under this sub-section, the liability of the dealer shall continue in respect of any tax, penalty or interest for any period prior to the date of the order of the Commissioner cancelling the certificate of registration.

(3) For the purpose of cancellation of certificate of registration under sub-section (1) or clause (b) of sub-section (2), the Commissioner shall call upon the dealer to forthwith produce before him the certificate and on such production, the commissioner shall make an endorsement of cancellation on the certificate.".

Section 12. Amendment of section 30B of Guj. 1 of 1970

12. Amendment of section 30B of Guj. 1 of 1970.- In the principal Act, in section 30B, in sub-section (1), for the words, figures and letter "section 29, 30 or 30A" the words, figures and letter "section 29 or 30A" shall be substituted;"

Section 13. Insertion of new section 41B in Guj. 1 of 1970

13. Insertion of new section 41B in Guj. 1 of 1970.- In the principal Act, after section 41AA, the following section shall be inserted, namely:-

"41B. Provision assessment.- (1) Where the Commissioner has reason to believe that the dealer has evaded the tax, he may, after taking into account all relevant materials gathered by him and after giving the dealer a reasonable opportunity of being heard, provisionally assess to the best of his judgement the amount of tax payable by the dealer.

(2) The provisions of this Act shall mutatis mutandis apply, to the provisional assessment as if provisional assessment were an assessment made under this Act.

Section 14. Substitution of section 42 of Guj. 1 of 1970

14. Substitution of section 42 of Guj. 1 of 1970.- In the principal Act, for section 42, the following section shall be substituted, namely-

"42. Time limit for completion of assessment.- (1) No order of assessment for a year commencing on the 1st day of April, 1998 or part of such year or any year thereafter or part of such year shall be made under sub-section (3) or (4) of section 41 at any time after the expiry of three years from the end of the year in which the last monthly, quarterly or, as the case may be, annual return is filed.

(2) Where the Commissioner issues a notice under sub-section (6) of section 41 to any dealer for assessment of tax in respect of any period, no order of assessment shall be made for such part of the period, if any, as is prior to-

(a) a period of eight years ending on the last date of the year immediately preceding the year in which such notice is issued, in a case where the Commissioner has reason to believe that such dealer has failed to apply for registration with intention to defraud Government revenue; and

(b) a period of four years ending on the last date as aforesaid, in any other case:

Provided that for the purpose of this section if it is considered necessary so to do, the State Government may, subject to such conditions as it may deem fit, and the Commissioner may, subject to such conditions as may be prescribed by a general or special order, extend, either generally or specialty, the period specified in sub-section (1):

Provided further that where a fresh assessment is required to be made in pursuance of any order under section 65, 67 or 69 or in pursuance of any order of any court or authority, such fresh assessment shall be made at any time within three years from the date of such order:

Provided also that in computing the period of limitation for the purpose of this section, any period by which the period of limitation is extended under the first proviso or any period during which assessment proceedings are stayed by an order or injunction of any court or authority shall be excluded.".

Section 15. Amendment of section 45 of Guj. 1 of 1970

15. Amendment of section 45 of Guj. 1 of 1970.- In the principal Act, in section 45,-

(1) after sub-section (3), the following sub-section (1) shall be inserted, namely:-

"(3A) If a dealer fails to furnish any declaration or any return by the prescribed date as required under sub-section (1) of section 40, the Commissioner shall impose upon such dealer by way of penalty for each declaration or return, a sum of two hundred rupees for every month or part of a month comprised in the period commencing from the day immediately after the expiry of prescribed date and ending on the date on which a declaration or return is furnished.";

(2) in sub-section (4), for the words and figures "as required by section 40", the words, brackets and figures "as required by proviso to sub-section (1) or sub-section (2) of section 40" shall be substituted.

Section 16. Amendment of section 47 of Guj. 1 of 1970

16. Amendment of section 47 of Guj. 1 of 1970.- In the principal Act, in section 47,-

(1) in sub-section (4), in clause (a), after sub-clause (ii), the following sub-clause shall be inserted, namely:-

"(iii) provisionally assessed for any period under section 41B less any sum already paid by the dealer in respect of such period.";

(2) after sub-section (4) the following sub-section shall be inserted, namely:-

"(4AA) Where provisional assessment is made in respect of any period under sub-section (1) of section 4IB and thereafter assessment is made in respect of that period or part of that period under section 41, the amount of tax provisionally assessed and paid by a dealer shall be adjusted against the amount of tax assessed and payable by a dealer.".

Section 17. Insertion of new section 48A in Guj. 1 of 1970

17. Insertion of new section 48A in Guj. 1 of 1970.- In the principal Act, after section 48, the following section shall be inserted, namely:-

"48A. Provision attachment to protect revenue.- (1) Where during the pendency of any proceedings of provisional assessment or assessment of tax or reassessment of turnover escaping assessment, the Commissioner is of the opinion that for the purpose of protecting the interests of the revenue. It is necessary so to do, he may by order in writing attach provisionally any property belonging to the dealer in such manner as may be prescribed.

(2) every such provisional attachment shall case to have effect after the expiry of a period of six months from the date of the order made under sub-section (1):-

Provided that the Commissioner may, for reasons-to be recorded in writing, extend the aforesaid period by such further period or periods as he thinks fit so however that the total period shall not in any case exceed one year."

Section 18. Amendment of section 57B of Guj. 1 of 1970

18. Amendment of section 57B of Guj. 1 of 1970.- In the principal Act, in section 57B,-

(1) after sub-section (3), the following, subjection shall be inserted, namely:-

"(3A) if arpcrson has entered into a works contract with a contractor and the contractor has entered into a contract with a sub-contractor entrusting to the sub-contractor the carrying out of the whole or part of the work (hereinafter referred to as "the sub-contract") relating to the said works contract and the contractor has at the time of payment of the specified sale price in respect of the said sub-contract to the sub-contractor deducted an amount as lax under clause (b) of sub-section (3) and has paid the same under sub-section (6), then notwithstanding anything contained in clause (a) of the said sub-section ??? person shall not at the time of payment of the specified sale price to the contractor deduct an amount under clause (a) of sub-section (3) equal to the amount of tax paid by the contractor under sub-section (6)."

(2) in sub-section (6),-

(i) in clause (a), for the words "within ten days from the date of deduction of the amount", the words "in such manner and within such period as may be prescribed" shall be substituted;

(ii) in clause (c), the following shall be added at the end, namely:-

"within thirty days from the date on which he obtains the receipt".

Section 19. Insertion of new section 57C in Guj. 1 of 1970

19. Insertion of new section 57C in Guj. 1 of 1970.- In the principal Act in Chapter VA, after section 57B, the following section shall be inserted, namely:-

"57C. Person deducting to furnish return.- Every person deducting tax wider section 57B shall furnish or cause to be furnished returns in such form and within such period as may be prescribed to the Sales Tax Officer within whose jurisdiction the person resides or carries on his business."

Section 20. Amendment of section 65 of Guj. 1 of 1970

20. Amendment of section 65 of Guj. 1 of 1970.- In the principal Act, in section 65,-

(1) in sub-section (1), in clause (b), for the word "Commissioner", the words "Deputy Commissioner" shall be substituted;

(2) in sub-section (2), after the words "Assistant Commissioner", the words "or, as the case may be, by a Deputy Commissioner" shall be inserted;

(3) in sub-section (5), after the words "Assistant Commissioner", where they occur at two places, the words "or, as the case may be, by the Deputy Commissioner" shall be inserted.

Section 21. Amendment of section 75 of Guj. 1 of 1970

21. Amendment of section 75 of Guj. 1 of 1970.- In the principal Act, in section 75, in sub-section (1) in clause (c) the word and figures "or 30" shall be deleted.

Section 22. Amendment of section 1 of Guj. 1 of 1970

22. Amendment of section 1 of Guj. 1 of 1970.- In the principal Act, in Schedule I,-

(1) in the entry at serial No. 9,-

(a) after item (15), the following item shall be inserted; namely:-

"(15A) Heart valves";

(b) after item (19), the following item shall be inserted namely:-

"(19A) Orthopaedic implants";

(2) for the entry at serial No. 16, the following entry shall be substituted, namely:-

(3) in the entry at serial No. 20, in column 3, the words "except when sold in sealed package under a brand" shall be inserted;.

(4) in the entry at serial No. 23, in column 2, for the words "Twenty five rupees", the words "Seventy five rupees" shall be substituted;

(5) in the, entries at serial Nos. 31 and 34, in column 3, the words "except when sold in sealed package under a brand" shall he inserted.

Section 23. Amendment of schedule II Part A of Guj. 1 of 1970

23. Amendment of schedule II Part A of Guj. 1 of 1970.- In the principal Act, in Schedule II, in Part A,-

(1) entry at serial No. 1 shall be renumbered as sub-entry (i) of that entry and after sub-entry (i) as so renumbered, the following sub-entry shall be added, namely-

(2) in the entry at serial No. 12, in columns 3 and 4, for the words "two paise", the words "one paisa" shall be substituted;

(3) in the entry at serial No. 21, in columns 3 and 4, for the words "six paise", the words "four paise" shall be substituted;

(4) entry at serial No. 23 shall be renumbered as sub-entry (i) of that entry and after sub-entry (i) as so renumbered, the following sub-entry shall be inserted, namely:-

(5) for the entry at serial No. 24, the following entry shall be substituted, namely:-

(6) the entry at serial No. 35, shall be renumbered as sub-entry (i) of that entry, and after the sub-entry (i) as so renumbered, the following sub-entry shall be added, namely:-

(7) in the entry at serial No. 43, in columns 3 and 4, for the words "Six paise", the words "Four paise" shall be substituted;

(8) in the entry at serial No. 44, after item (viii), the following item shall be inserted, namely:-

(9) In the entry at serial No. 71, in columns 3 and 4, for the words "Six 2 paise", the words "Four paise" shall be substituted;

(10) after the entry at serial No. 79, the following entry shall be inserted, namely:-

(11) in the entry, at serial No. 85,-

(i) in sub-entry (i), the words "other than watch cases" shall be added it the end;

(2) after sub-entry (ii), the following sub-entry shall be inserted, namely:-

(12) in the entry at serial No. 88, in column 2, for the words "Twenty rupees", the words "Seventy five rupees" shall be substitute.

(13) after the entry at serial No. 100, the following entry shall be inserted, namely:-

(14) in the entry at serial No. 104, in sub-entry (ii), in columns 3 and 4, for the words "Fifteen paise" the words "Eight paise" shall be substituted.

(15) after entity at serial No. III, the following entry shall be inserted, namely:-

(16) in the entry at serial No. 113, in columns (3) and (4), for the words "Fifteen paise" the words "Eight paise" shall be substituted;

(17) in the entry at serial No. 119, in columns 3 and 4, for the words "Four paise in the rupee", the words "One paisa in the rupee" shall be substituted;

(18) after the entry at section No. 133, the following entry shall be inserted, namely:-

(19) in the entry at serial No. 159, in columns 3 and 4, for the words "Six paise" the words "Four paise" shall be substituted;

(20) the entry at serial No. 173 shall be renumbered as sub-entry (i) of that entry and after sub-entry (i) as so renumbered, the following sub-entry shall be inserted, namely:-

(21) in entry at serial No. 184B, in columns (3) and (4), for the words "Six paise", the words "Four paise" shall be substituted;

(22) in the entry at serial’ No. 195, the figures and letter "19A" shall be deleted.

Section 24. Amendment of Schedule III to Guj. 1 of 1970

24. Amendment of Schedule III to Guj. 1 of 1970.- In the principal Act, in Schedule III, after the entry 18, the following entries shall be added, namely:-

"19. Heavy equipments such as cranes.

20. Telephones.

21. Paten's trade marks and brands"