Orissa act 003 of 2000 : Orissa Sales Tax (Amendment and Validation) Act, 2000

Section 1. Short title

1. Short title.- This Act may be called the Orissa Sales Tax (Amendment and Validation) Act, 2000.

Section 2. Amendment of section 13-AA

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 stall 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 contractor.- (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 the ‘deducting authority’) for carrying out any works contract, which involves transfer of property in goods, in pursuance of a contract between the contractor and-

(a) the 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) inclining any State or Central Government undertaking, or

(e) any co-operative society or any other a Sociation registration 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 of draft or any other mode, whichever is earlier, deduct, subject to the certificate, if any, produced by the contractor in pursuance of sub-section (5), an amount towards sales tax equal to four percentum of such sum in respect of the works contract. If the value of the works contract exceeds rupees one lakh:

Provided that during the period beging one the 15th day of December, 1988 and ending on the 25th day of August, 1995, the amount to be deducted towards sales tax shall be equal to two percentum of such sum in respect of the works contract.

(2) While making deduction as referred to in sub-section (1), the deducting authority shall grant a certificate to the contractor in the from 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 Invoices shall be deposited into a Government Treasury within one week from the date of deduction in such form or challan as maybe prescribed.

(4) Such deposit into Government Tresury shall be adjusted by the Sales Tax Officer towards the sales tax liability of the contractor 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 an application being, made by the contractor in this behalf, the Commissioner is satisfied that any works contract of the nature referred to in sub-section (1) involves 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 no Reduction 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 nothing 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 is 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 accordance with the said certificate.

(6) If any person contravenes the provisions of sub-section (1) or sub-section (2) or sub-section (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 in writing, ??? such person penalty not exceeding twice the amount required to be deducted and deposited by him into Government Treasury.

Explanation-Nothing in sub-section (5) or any other provision of this section shall be construed as to authorise deduction of any amount towards sale tax on the value of any property in goods transferred in the course of inter State sales, sales outside the State of sales in the course of import."

Section 3. Validation

3. Validation.- (1) Notwithstanding any judgement, decree or order of any Court or Tribunal or other Authority, all deductions towards Sales Tax, pertaining to works contracts involving transfer of property in 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) or clause (b) of sub-section (5) 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 section 13-AA of the principal Act as amended by section 2 of this Act had been in force at all material points of time 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 any Court or Tribunal or before other Authority 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 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 so 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 amenend by section 2 of this Act.