*Orissa Sales Tax (Amendment and Validation) Act, 1993**
| [Orissa Act No. 22 of 1993] | [2nd December, 1993] |
An Act further to Amend the Orissa Sales Tax Act, 1947 and to Validate Certain Actions.
* For the Bill see Orissa Gazette Extraordinary dated the 1st November, 1993 (No. 1436).
** [Received the assent of the Governor on the 2nd December, 1993, first published in an extraordinary issue of the Orissa Gazette, dated 8th December, 1993]
1. Short title and commencement.- (1) This Act may be called the Orissa Sales Tax (Amendment and Validation) Act, 1993.
(2) It shall be deemed to have come into force on the 4th day of October, 1993.
2. Amendment of section 13-AA.- In the Orissa Sales tax Act, 1947 (hereinafter referred to as the principal Act), for section 13-AA including its marginal heading, the following section shall be deemed to have been substituted with effect from the 15th day of December, 1986, namely:-
"13-AA. Deduction of tax at source from payment to works contractors.- (1) Notwithstanding anything contained in section 13 or any other law or contract to the contrary, any person responsible for paying any sum to any contractor (hereinafter referred to in this section as an ‘deducting authority’) for carrying out any works-contract, which involves transfer of property in goads, in pursuance of a contract between the contractor and-
(a) Central Government or any State Government, or
(b) any local authority, or
(c) any authority or Corporation established by or under a statute, or
(d) any company incorporated under the Companies Act, 1956 (1 of 1956) including any State or Central Government undertaking, or
(e) any Co-operative Society or any other Association registered under the Societies Registration Act, 1860 (21 of 1860).
shall, at the time of credit of such sum to the account of the contractor or at the time of payment thereof in cash or by issue of a cheque or draft or any other mode, whichever is earlier, deduct an amount to-wards sales-tax equal to two percentum of such sum in respect of the works-contract, if the value of the works contract exceeds rupees one lakh.
(2) While making deduction as referred to in sub-section (1), the deducting authority shall grant a certificate to the contractor in the form prescribed and shall send a copy thereof to the Sales tax Officer within whose jurisdiction the works contract is executed.
(3) The amount deducted from the Bills or Invouces shall be deposited into a Government Treasury within one week from the date of deduction in such from or challan as may be prescribed.
(4) Such deposit into Government Treasury shall be adjusted by the Sales Tax Officer towards the Sales tax liability of the contract and would also constitute a good and sufficient discharge of the liability of the deducting authority to the contractor to the extent of the amount deposited.
(5)(a) Where on applicant being made by the contractor in this behalf, the Commissioner is satisfied that any work contract of the nature referred to in sub-section (1) invites both transfer of property in goods and labour or service, or involves only labour or service and accordingly justifies deduction of tax on a part of the sum in respect of the Works contract or, as the case may be, justifies in deduction of tax, he shall, after giving the contractor a reasonable opportunity of being heard, grant him such certificate as may be appropriate, in the manner prescribed:
Provided that noting in the said certificate shall affect the assessment of the sales-tax liability of the contractor under this Act.
(b) Where such a certificate is produced by a contractor before the deducting authority, until such certificate in cancelled by the Commissioner, the deducting authority shall either make no deduction of tax or make the deduction of tax, as the case may be, in acrordance with the said certificate.
(6) If any person contravenes the provisions of sub-section (1) or (2) or (3) or of clause (b) of sub-section (5) the Sales Tax Officer shall, after giving him an opportunity of being heard, by an order;n writing, impose on such person penalty not exceeding twice the amount required to be deducted and deposited by him into Government Treasury".
3. Validation.- (1) Notwithstanding any judgment, decree or order of any Court or Tribunal or other authority, all deductions towards sales Tax, pertaining to works-contracts involving transfer of property to goods, made under sub-section (1) of section 13-AA of the principal Act, before the date of commencement of this Act and all proceedings or actions taken or things done or penalties imposed in contravention of the provision of sub-section (1) or sub-section (2) or sub-section (3) of the said section, for the purpose of or in relation to such deductions before the said date, shall, for all intents and purposes, be deemed to be, and to have always been, made, taken, done or imposed, as the case may be, as validly and effectively as if the provisions of sub-sections (1), (2), (3), (4) and (6) of section 13-AA of the principal Act as introduced by section 2 of this Act had been in force at all material times when such deductions were made or proceedings or actions were taken or things were done or penalties were imposed and, accordingly, no suit or other proceeding shall be maintained or continued in by court for the refund of any amount of Sales tax or penalty realised by such, deduction or, as the case, may be, imposition under section 13-AA of the principal Act as stood prior to the said date.
(2) For the removal of doubts it is hereby declared that-
(a) no act or omission on the part of any person, before the commencement of this Act shall be liable to any penalty which would not have been go liable if this Act had not come into force; and
(b) nothing in sub-section (1) shall be construed as preventing any person from claiming refund of any sales tax paid by him, in excess of the amount due from him, under section 13-AA of the principal Act as amended by section 2, of this Act.
4. Repeal and savings.- (1) The Orissa Sales Tax (Amendment and [Validation) Ordinance, 1993 is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the principal Act as amended by the said Ordinance shall be deemed to have been done or taken under the principal Act as amended by this Act.