Punjab act 046 of 1948 : Punjab General Sales Tax Act, 1948

Section 1. Short title and commencement

1. Short title and commencement.- (1) This Act may be ??? the ¹[* * *] ??? General Sales Tax Act, 1948.

(2) It extends to the whole of the ²[State] of ³[Punjab].

(3) It shall come into force on the 1st ⁴[???], 1949.

Section 2. Definitions

2. Definitions.- In this Act, unless there is anything repugnant in the subject or context,-

(a) "assessing authority" means any person authorized by the ⁵[State] Government to make any assessment under this Act:

(b) "Commissioner" means the Excise and Taxation Commissioner appointed under sub-section (1) of section 3:

(c) ⁶[* * *]

(d) ⁷["Dealer" means any person including a Department of Government who in the normal course of trade sems ⁸(or purchases) any goods that are actually delivered for the purpose of consumption in the State of Punjab, irrespective of the fact that the main place of business of such, person is outside the said State and where the main place of business of any such person is not in the said State, ‘dealer’ includes the local manager or agent of such person in Punjab in respect of such, business.]

Explanations. (1) A co-operative society or a club or any association which sells or supplies goods to its members ⁹[or purchases] ¹⁰[goods] specified in Schedule C ¹¹[* * *], is dealer within the meaning of this clause.

(2) A factor, a broker, a commission agent; a dealer's agent, an auctioneer or any other mercantile agent by whatever name called, and whether of the same description as here in before mentioned or not, who carries on the business of ¹[selling, supplying or purchasing goods and who has in the customary course of business, authority to sell goods belonging to principals or to purchase goods on their behalf] is a dealer.

(3) For the purpose of this clause, "Government" will include the Central Government or the Government of any other State.

²[(dd)] ‘declared goods’ means goods declared under section 14 of the Central Sales Tax Act, 1956, to be of special importance in inter-State trade or commerce;]

(e) ³["goods" means all grinds of movable property other than news-papers, actionable claims, stocks, shares or securities;]

(f) "Prescribed" means prescribed by rules made under this Act.

⁴[(ff) "purchase" with all its grammatical or cognate expressions, means the acquisition of goods specified in Schedule C for cash or deferred payment or other valuable consideration otherwise than under a mortgage, hypothecation, charge or pledge;]

(g) "registered" means registered under this Act;

(h) "sale" means any transfer of property in goods ⁵[other than goods specified in Schedule C] for each cash or deferred payment or other valuable consideration, ⁶(* * *) but does not include a mortgage, hypothecation, charge or pledge;

Explanation.-(1) A transfer of goods on hire-purchase or other instalment system of payment shall, notwithstanding that the seller retains a title to any goods as security for payment of the price be deemed to be a sale.

⁷[* * *]

(9) A vacancy in the office of the Presiding Officer of a Tribunal shall be filled by the State Government as soon as practicable in accordance with the provisions of the Act and the proceeding before a Tribunal may be continued from the stage at which the vacancy is filled.

(10) No order made and no act done or proceedings taken under this Act by or before a Tribunal shall be called in question in any manner on the ground merely of any defect in the constitution of the Tribunal.

(11) Subject to such conditions and limitations as may be prescribed, a Tribunal shall have power to award costs, and the amount of such costs shall be recoverable from the person ordered to pay the same as arrears of land revenue.

(12) Subject to any rules that may be made in this behalf, a Tribunal shall follow such procedure as it may deem fit.

(13) A Tribunal shall, subject to any direction given by the State Government, sit at such place or places within its jurisdiction as it may deem fit.

(14) The State Government may appoint such officers and servants as may be required to enable a Tribunal to carry out its functions under the Act.

(15) The administrative expenditure of a Tribunal including all salaries, allowances and pensions, if any, payable to or in respect of the Presiding Officer, officers and servants of a Tribunal shall be charged upon the Consolidated Fund of the State.

Section 3-B. Jurisdiction of Tribunals in case there are more Tribunals than one

3-B. Jurisdiction of Tribunals in case there are more Tribunals than one.- In the event of the State Government constituting more Tribunals than one, the State Government shall by notification define the local limits of jurisdiction of each Tribunal and where an appeal, application or revision pending before a Tribunal relates to the local limits of an area which, as a result of the issue of such a notification, has fallen within the jurisdiction of another Tribunal, such appeal, application or revision shall stand transferred to and be heard and decided by the other Tribunal.

Section 3-C. Dissolution of Tribunal

3-C. Dissolution of Tribunal.- Notwithstanding anything contained in sub-section (5) of section 3-A, where there are more Tribunals than one, the State Government may, at any time by reason of insufficiency of work pending before the Tribunals, dissolve any Tribunal and no presiding officer of the Tribunal affected by such dissolution shall have any claim against the State Government.]

Section 4. Incidence of taxation

4. Incidence of taxation.- (1) Subject to the provisions of section 5 and 6, every dealer ¹[except one dealing exclusively in goods declared tax-free under section 6] whose gross turnover during the year immediately preceding the commencement of this Act exceeded the taxable quantum shall be liable to pay tax under this Act on all sales affected after the coming into force of this Act ²[and purchases made after the commencement of the East Punjab General Sales Tax (Amendment) Act, 1958]:

Provided that the tax shall not be payable on sales involved in the execution of a contract which is shown to the satisfaction of the assessing authority to have been entered into before the commencement of this Act.

³[(2) Every dealer to whom sub-section (1) does not apply or who does not deal exclusively in goods declared to be tax-free under section 6 shall be liable to pay tax under this Act on the expiry of 30 days after the date on which his gross turnover ⁴[during any year] first exceeds the taxable quantum:

Provided that in the case of a dealer who imports any goods for sale or use in manufacturing or processing, or who manufactures or processes any goods for sale the liability to pay tax shall commence with effect from the date on which his gross turnover(during any year) first exceeds the taxable quantum.

⁵[(2-A) Notwithstanding anything contained in sub-sections (1) and (2), no tax on the sale of any goods shall be levied if a tax on their purchase is payable under this Act.]

(3) Every dealer who has become liable to pay tax under this Act shall continue to be so liable until the expiry of three consecutive years during each of which his gross turnover has failed to exceed the taxable quantum and such further period after the date of such expiry as may be prescribed and on the expiry of this later period his liability to pay tax shall cease.

(4) ⁶[Every dealer whose liability to pay tax has ceased under the provisions of sub-section (3) shall again be liable to pay tax under this Act ⁷[with effect from the date on] which his gross turnover first exceeds the taxable quantum].

(5) In this Act the expression "taxable quantum" means-

(a) ¹[in relation to any dealer who imports for sale or use in manufacturing or processing any goods in Punjab, Nil]:

²[Provided that the provisions of this clause shall not apply to a dealer who had placed orders for import of goods before the 8th August, 1952, but received such goods on or after that date and his gross import for sale or use in manufacturing or processing any goods in Punjab did not exceed Rs. 5,000 during the year and he did not make any other import of goods after the said date.]

³[* * *]

(b) in relation to any dealer, who himself manufactures or produces any goods for sale, 10,000 rupees;

⁴[(bb) in relation to any dealer who runs a Tandoor, Loh, Dhdba hotel ⁵[restaurant, halwai shop, bakery], or other similar establishment wherein Indian food preparations including tea are served, 25000 rupees]

³[(c)] in relation to any particular classes of dealers not falling within ⁶[clauses (a), (b) and (bb)], ⁷[* * *, such sum as may be prescribed: or

³[(d)] in relation to any other dealer, ⁸[40,000]rupees: provided that the registration of dealers already registered under this clause shall not be cancelled until their turnover in each of three consecutive years does not entitle them to cancellation under clause (b) of sub-section (6) of section 7.

Section 4-A. Liability of dealer registered under Parliament Act No. 74 of 1956 to pay tax

⁹[4-A. Liability of dealer registered under Parliament Act No. 74 of 1956 to pay tax.- A dealer registered under the Central Sales Tax Act, 1956 (Parliament Act No. 74 of 1956) who is not liable to pay tax under section 4 shall nevertheless be liable to pay tax under this Act on any sale ¹⁰[or purchase] made by him inside the State of Punjab.]

¹[Provided that nothing herein shall apply to a dealer who deals exclusively in goods declared tax-free under section 6.

Section 5. Rate of tax

5. Rate of tax.- (1) Subject to the provisions of this Act, there shall be levied on the ²[taxable turnover of a dealer] a tax at such rates ³[not exceeding] ⁴[six naye Paise] in a rupee as the ⁵[State] Government may by notification direct:

⁶[Provided that a tax at ⁷[such rate, not exceeding ⁸[ten naye Paise] in a rupee, as may be so notified may be levied on the sale of luxury goods as specified in Schedule ‘A’ appended to this Act from such date as the Government may by notification direct. The State Government after giving by notification not less than ⁹[twenty days] notice of its intention so to do may by like notification add to or delete from this Schedule, and thereupon this Schedule shall be deemed to have been amended accordingly:]

¹⁰[Provided further that the rate of tax shall not exceed two naye paise in a rupee in respect of any declared goods ¹¹[* * *]:

¹²[Provided further that with effect from the date of commencement of the Punjab General Sales Tax (Amendment and Validation) Ordinance, 1967, the rate of tax shall not exceed three paise in a rupee in respect of any declared goods:]

¹³[Provided further] that Government may by notification in the Official Gazette declare that in respect of any goods or class of goods the dealer may pay such lump sum by way of composition of the tax payable under this Act, as the Government may notify from time to time.

¹[(1A) The State Government may by notification direct that ²[in respect of such goods other than declared goods], and with effect from such date as may be specified in the notification, the tax under sub-section (1) shall be levied at the first stage of sale thereof: and on the issue of such notification the tax on such goods shall be levied accordingly:

Provided that no sale of such goods at a subsequent stage shall be exempt from tax under this Act unless the dealer effecting the sale at such subsequent stage furnishes to the assessing authority in the prescribed form and manner a certificate duly filled in and signed by the registered dealer, from whom the goods were purchased.

Explanation.-For the purposes of this sub-section the first stage of sale in respect of any goods in relation to any class of dealers shall be such as may be specified by the State Government in the notification.]

(2) In this Act the expression "taxable turnover" means that part of a dealer's gross turnover during any period which remains after deducting therefrom-

(a) his turnover during that period on-

(i) the sale of goods declared tax-free under section 6;

³[(ii) ⁴[sales to a registered dealer of goods other than sales of goods liable to tax at the first stage under sub-section (1A)]; declared by him in a prescribed form as being intended for resale in the State of Punjab or sale in the course of inter-State trade or commerce ⁵[or sale in the course of export of goods out of the territory of India], ⁶[or of goods specified in his certificate of registration for use by him in the manufacture in Punjab of any goods, other than goods declared tax-free under section 6, for sale in Punjab], and on sales to a registered dealer of containers or other materials for the packing of such goods:

Provided that in case of such sales, a declaration duly filled up and signed by the registered dealer to whom the goods are sold and containing prescribed particulars on a ¹[prescribed form obtained from the prescribed authority] is furnished by the dealer who sells the goods:

²[Provided further that when such goods are used by the dealer to whom these are sold for purposes other than those for which these were sold to him, he shall be liable to pay tax on the purchase thereof at such rate, not exceeding the rate of tax leviable on the sale of such goods, as the State Government may by notification direct in respect of a class of dealers specified in such notification, notwithstanding that such purchase is not covered by clause (ff) of section 2.].

³[(iii) * * *]

(iv) sales to any undertaking supplying electrical energy to the public under a licence or sanction granted or deemed to have been granted under the Indian Electricity Act, 1910 (IX of 1910), of goods for use by it in the generation or distribution of such energy;

⁴[(v) sales or purchases of goods falling under section 29;]

⁵[(vi) the purchase of goods which are sold not later than six months after the close of the year, to a registered dealer, or in the course of inter-state trade or commerce, or in the course of export out of the territory of India:

register such dealer and grant him a certificate of registration, and such registration shall take effect as if it had been made under sub-section (3) of this section on the dealer's application.

(6) When-

(a) any business in respect of which a certificate has been granted upon application made under sub-section (2) has been discontinued or transferred; or

(b) the gross turnover of any such business has during each of three consecutive years failed to exceed the taxable quantum; ¹[or]

²[(c) the certificate of registration granted under the Central Sales Tax Act, 1956, to a dealer liable to pay tax by virtue of the provisions of section 4-A but who is not otherwise liable to pay tax under section 4, has been canceled,]

the Commissioner shall cancel the registration ³[and the cancellation shall come into force after the expiry of such period as may be prescribed.]

Section 8. Voluntary registration

8. Voluntary registration.- (7) Any dealer ⁴[except one dealing exclusively in goods declared tax-free under section 6] whose gross turnover during a year exceeds ⁵[15,000] rupees may notwithstanding that he may not be liable to pay tax under section 4, apply in the prescribed manner to the prescribed authority for registration under this Act.

(2) The provisions of sub-sections (3) and (4) and clause (a) of sub-section (6) of section 7 shall apply in respect of applications for registration under this section.

(3) Every dealer who has been registered upon application made under this section shall, for so long as his registration remains in force, be liable to pay tax under this Act whether his gross turnover exceeds the taxable quantum or not.

(4) The registration of a dealer upon application made under this section shall be in force for a period of not less than three complete years and shall remain in force thereafter unless canceled under the provisions of this Act.

(5) Subject to the provisions of sub-section (4), a dealer registered upon application made under this section may apply in the prescribed manner not less than six months before the end of a year to the authority which granted him his certificate of registration for the cancellation of such registration to take effect at the end of the year in which the application for such cancellation is made; and the said authority shall, unless the dealer is liable to pay tax under section 4, cancel the registration accordingly.

Section 9. Security from certain class of dealers

¹[9. Security from certain class of dealers.- The Commissioner or any officer authorised by him in writing in this behalf, if it appears to him to be necessary so to do for the proper realisation of the tax levied under this Act, may impose for reasons to be recorded in writing as a condition of the issue of a registration certificate to a dealer or of the continuance, in effect, of such a certificate issued to any dealer, a requirement that the dealer shall give security up to an amount and in the manner approved by the Commissioner for the payment of the tax for which he may be or become liable under this Act.]

Section 10. Payment of tax and returns

10. Payment of tax and returns.- (2) Tax payable under this Act shall be paid in the manner hereinafter provided at such intervals as may be prescribed.

²[(2) The Commissioner may, in such circumstances and subject to such conditions as may be prescribed, accept from any dealer, in lieu of the amount of the general tax payable during any period, a lump-sum by way of composition determined in the prescribed manner.]

²[(3) Such dealers as may be required so to do by the assessing authority by notice served in the prescribed manner and every registered dealer shall furnish such returns by such dates and to such authority as may be prescribed:

Provided that, if any dealer establishes to the satisfaction of the assessing authority that his average taxable turnover does not exceed ten per centum of his average gross turnover, the returns to be furnished by such dealer under this sub-section shall be annual returns.

¹(4) Before any registered dealer furnishes the return required by sub-section ²[(3)], he shall, in the prescribed manner, pay into a Government Treasury or the Reserve Bank of India the full amount of tax due from him under this Act according to such returns and shall furnish along with the returns receipt from such Treasury or Bank showing the payment of such amount.

¹[(5)] If any dealer discovers any omission or other error in any returns furnished by him, he may at any time before the date prescribed for the furnishing of the next return by him furnish a revised return, and if the revised return shows a greater amount of tax to be due than was shown in the original return, it shall be accompanied by a receipt showing payment in the manner provided in sub-section ³[(4)], of the extra amount.

⁴[(6) If a dealer fails without sufficient cause to comply with the requirements of the provisions of sub-section (3) or sub-section (4), the Commissioner or any person appointed to assist him under sub-section (1) of section 3 may, after giving such dealer a reasonable opportunity of being heard, direct him to pay, by way of penalty, a sum not exceeding one-and-a-half times of the amount of tax ⁵[to which he is assessed or is liable to be assessed under section 11 in addition to the amount of tax to which he is assessed or is liable to be assessed], and where no tax is payable, a sum not exceeding one hundred rupees.]

⁶[(7) If a dealer has maintained false or incorrect accounts with a view to suppressing his sales, purchases or stocks of goods, or has concealed any particulars of his sales or purchases, or has furnished to, or produced before, any authority under this Act or the rules made thereunder any account, return or information which is false or incorrect in any material particular the Commissioner or any person appointed to assist him under sub-section (1) of section 3 may, after affording such dealer a reasonable opportunity of being heard direct him to pay, by way of penalty in addition to the tax to which he is assessed or is liable to be assessed an amount which shall not be less than ten percentum, but which shall not exceed one-and-a-half times, of the amount of tax to which he is assessed or is liable to be assessed.]

Section 11. Assessment of tax

¹[11. Assessment of tax.- (1) If the Assessing Authority is satisfied without requiring the presence of ²[dealer]or the production by him of any evidence that the returns furnished in respect of any period are correct and complete, he shall assess the amount of tax due from the dealer on the basis of such returns.

(2) If the Assessing Authority is not satisfied without requiring the presence of ³[dealer] who furnished the returns or production of evidence that the returns furnished in respect of any period are correct and complete, he shall serve on such dealer a notice in the prescribed manner requiring him, on a date and at place specified therein, either to attend in person or to produce or to cause to be produced any evidence on which such dealer may rely in support of such returns.

(3) On the day specified in the notice or as so on after wards as may be, the Assessing Authority shall, after hearing such evidence as the dealer may produce, and such other evidence as the Assessing Authority may require on specified points, assess the amount of tax due from the dealer.

⁴[(4) If a ³[dealer], having furnished returns in respect of a period, fails to comply with the terms of a notice issued under sub-section (2), the Assessing Authority shall within ⁵[five years] after the expiry of such period, proceed to assess to the best of his judgment the amount of the tax due from the dealer.

(5) If a ¹[dealer] does not furnish returns in respect of any period by the prescribed date, the Assessing Authority shall within ²[five years] after the expiry of such period, after giving the dealer a reasonable opportunity of being heard, proceed to assess to the best of his judgment, the amount of tax, if any, due from the dealer.

(6) If upon information which has come into his possession, the Assessing Authority is satisfied that any dealer has been liable to pay tax under this Act in respect of any period but has failed to apply for registration the Assessing Authority shall, within ²[five years] after the expiry of such period, after giving the dealer a reasonable opportunity of being heard, proceed to assess, to the best of his judgment, the amount of tax, if any, due from the dealer in respect of such period and all subsequent periods and in cases where such dealer has wilfully failed to apply for registration, the Assessing Authority may direct that the dealer shall pay by way of penalty, in addition to the amount so assessed, a sum not exceeding one and a half times that amount.]

(7) The amount of tax-

(a) due where the returns are furnished without receipt showing full payment thereof; or

(b) assessed under sub-sections (1), (3), (4) and (5), less the sum, if any, already paid by the dealer in respect of the said period; or

(c) assessed under sub-section (6) together with the penalty directed to be paid under that sub-section,

shall be paid by the dealer into a Government treasury or the Reserve Bank of India by such date as may be specified in a notice issued by the Assessing Authority for this purpose and the date to be specified shall be not less than thirty days from the date of service of such notice:

Provided that the Assessing Authority may, in respect of any particular dealer and for reasons to be recorded in writing, extend the date of such payment or allow such dealer to pay the tax due and the penalty, if any, by installments.

¹[(8) If the tax assessed under this Act or any instalment thereof is not paid by any dealer within the time specified therefor in the notice of assessment or in the order permitting payment in instalments, the Commissioner or any person appointed to assist him under sub-section (1) of section 3 may, after giving such dealer an opportunity of being heard, impose on him a penalty not exceeding in amount the sum due from him.]

(9) Any assessment made under this section shall be without prejudice to any ²[penalty imposed] under this Act.]

Section 11-A. Bar of certain proceedings

³[11-A. Bar of certain proceedings.- (1) If in consequence of definite information which has come into his possession, the Assessing Authority discovers that the turnover of the business of a dealer has been under assessed, or escaped assessment in any year, the Assessing Authority may, at any time within ⁴[five years], following the close of the year for which the turnover is proposed to be reassessed, and after giving the dealer a reasonable opportunity, in the prescribed manner of being heard, proceed to reassess the tax payable on the turnover which has been under-assessed or has escaped assessment.

(2) An Assessing Authority or any such authority as may be prescribed, may, at any time, within one year from the date of any order passed by him and subject to such conditions as may be prescribed, rectify any clerical or arithmetical mistake apparent from the record.]

Section 11-AA. Review of certain assessments, etc., of tax or declared goods

⁵[11-AA. Review of certain assessments, etc., of tax or declared goods.- (1) Notwithstanding anything contained in this Act, the Assessing Authority shall (whether or not an application made to him in this behalf), review all assessments and re-assessments made before the commencement of the Punjab General Sales Tax (Amendment and Validation) Act, 1967, in respect of declared goods and make such order varying or revising the order previously made as may be necessary for bringing the order previously made into conformity with the provisions of this Act as amended by the Punjab General Sales Tax (Amendment and Validation) Act, 1967:

Provided that no proceeding for review shall be initiated without giving the dealer concerned a notice in writing of not less than thirty days.

(2) Any dealer on whom a notice is served under sub-section (7) may within thirty days from the date of receipt of such notice intimate in writing the assessing authority of his intention to abide by the assessment or re-assessment sought to be reviewed and if he does so, the assessing authority shall not review such assessment or re-assessment under this section.

(3) No order shall be made under this section against any dealer without giving such dealer a reasonable opportunity of being heard.

(4) Notwithstanding anything contained in any judgment, decree or order of any court or other authority to the contrary but subject to the provisions of the foregoing sub-sections any assessment, re-assessment, levy or collection of any tax in respect of declared goods made or purporting to have been made, and any action or thing taken or done or purporting to have been taken or done in relation to such assessment, re-assessment, levy or collection, under the provisions of this Act before the commencement of the Punjab General Sales Tax (Amendment and Validation) Act, 1967, shall be as valid and effective as if such assessment, reassessment, levy or collection or action or thing had been made, taken or done under this Act as amended by the Punjab General Sales Tax (Amendment and Validation) Act, 1967].

Section 11-B. Tax and penalty recoverable as arrears of land revenue

¹[11-B. Tax and penalty recoverable as arrears of land revenue.- The amount of any tax and penalty imposed under this Act, which remains unpaid after the due date, shall be recoverable as arrears of land revenue.]

Section 12. Refunds

¹[12. Refunds.- The assessing authority shall in the prescribed manner, refund to a registered dealer applying in this behalf any amount of tax paid by such deal under this Act-

(a) if the amount of tax so paid is in excess of the amount due from him under this Act; or

(b) if the amount of tax so paid is in respect of the sale or purchase of any declared goods and such goods are sold in the course of inter-State trade or commerce;

either by a refund voucher or, at the option of the dealer by deduction of the tax so paid from the amount of tax due from him in respect of any other period:

Provided that the refund under clause (b) shall be subject of such conditions as may be prescribed:

²[Provided further that no refund under this section shall be allowed unless the claim for refund is made within a period of three years from the date on which such claim accrues.]

Explanation.-For the purposes of this section the expressions "declared goods" and "in the course of inter-State trade or commerce" shall have he meaning assigned to them by clause (c) of section 2 and section 3 respectively of the Central Sales Tax Act, 1956].

Section 13. Accounts

13. Accounts.- ³(1) Every registered dealer or other dealer on whom a notice has been served to furnish returns under ⁴[sub-section (3)] of section 10, shall keep a true account of the value of goods bought and sold by him, and if the Assessing Authority considers that such account is not sufficiently clear and intelligible to enable him to make a proper check of the returns referred to in that sub-section he may require such dealer by notice in writing to keep such accounts including records of sales ⁵[as he may subject to anything that may be prescribed in that behalf in writing direct.]

¹[(2) Every registered dealer shall,-

(a) in respect of goods, exceeding ten rupees in value in any one transaction, sold by him or on his behalf, issue to the person to whom they are sold, a cash memorandum or bill serially numbered bearing the name and address of the dealer, the date of sale and the signature of such dealer or his servant, manager or agent and showing the particulars of goods so sold and the price thereof; and

(b) preserve a carbon copy of such cash memorandum or bill for a period of not less than five years from the date of issue thereof:

Provided, that the State Government may by notification exempt any class of registered dealers from the provisions of this sub-section.

(3) Where any dealer contravenes the provisions of sub-section (1) or sub-section (2), the Commissioner or any person appointed to assist him under sub-section (1) of section 3 may, after affording such dealer a reasonable opportunity of being beard, impose upon him a penalty which may extend to five hundred rupees.]

Section 14. Production and inspection of books, documents and accounts

²[14. Production and inspection of books, documents and accounts.- (1) The Commissioner or any person appointed to assist him under sub-section (1) of section 3 not below the rank of an Assistant Excise and Taxation Officer, may, for the purposes of this Act, require any dealer referred to in section 10 to produce before him any book, document or account relating to his business and may inspect, examine and copy the same and make such enquiries from such dealer relating to his business, as may be necessary:

Provided that books, documents and accounts of a period more than five years prior to the year in which assessment is made shall not be so required.

(2) Every registered dealer shall-

(a) maintain day to day accounts of his business;

(b) maintain a list of his account books, display it along with his registration certificate and furnish a copy of such list to the Assessing Authority;

(c) produce, if so required, account books of his business before the Assessing Authority for authentication in the prescribed manner;

(d) retain his account books at the place of this business, unless removed therefrom by an official for inspection, by any official agency, or by auditors, or for any other reasons which may be considered to be satisfactory by the Assessing Authority.

(3) If any officer referred to in sub-section (1) has reasonable grounds for believing that any dealer is trying to evade liability for tax or other dues under this Act, and that anything necessary for the purpose of an investigation into his liability may be found in any book, account, register or document, he may seize such book, account, register or document as may be necessary. The officer seizing the book, account, register or document shall forthwith grant a receipt for the same and shall,-

(a) in the case of book, account, register or document which was being used at the time of seizing within a period of ten days from the date of seizure; and

(b) in any other case, within a period of sixty days from the date of seizure;

return it to the dealer or the person from whose custody it was seized after examination or after having such copies or extracts taken therefrom as may be considered necessary, provided the dealer or the aforesaid person gives a receipt in writing for the book, account, register or document returned to him. The officer may, before returning the book, account, register or document, affix his signatures and his official seal at one or more places thereon, and in such case the dealer or the aforesaid person will be required to mention in the receipt given by him the number of places where the signature and seal of such officers have been affixed on each book, account, register or document.

(4) For the purposes of sub-section (2) or sub-section (3), an officer referred to in sub-section (7) may enter and search any office, shop, godown, vessel, vehicle, or any other place of business of the dealer or any building or place except residential houses where such officer has reasons to believe that the dealer keeps or is, for the time being keeping any book, account, register, document or goods relating to his business.

(5) The power conferred by sub-section (4) shall include the power to open and search any box or receptacle in which any books, accounts, registers or other relevant documents of the dealer may be contained.

(6) Any officer empowered to act under sub-section (3) or sub-section (4) shall have power to seize any goods which are found in any office, shop, godown, vessel, vehicle or any other place of business or any building or place of the dealer, out not accounted for by the dealer in his books, accounts, registers, records and other documents.]

Section 14-A. Omitted by Punjab Act 28 of 1965

¹[14-A. Omitted by Punjab Act 28 of 1965.- (7) Any assessee or dealer, who is entitled or required to attend before any authority in connection with any proceedings under this Act, may attend by a person authorized by him in writing in this behalf being a relative or a person regularly employed by the assessee, or a lawyer or accountant or income-tax practitioner and not being disqualified by or under sub-section (3).

²(2) In this section an "income-tax practitioner" means any person, who before the 10th day of May, 1953, attended before any assessing or other sales tax authorities in connection with any proceedings under this Act or under the Punjab General Sales Tax Act, 1941, on behalf of any assessee otherwise than in the capacity of an employee or relative of that assessee, or who has passed any accountancy examination recognized in this behalf, by the Central Board of Revenue, or holds a Degree in Commerce, Law, Economics or Ranking including auditing conferred by any Indian University, incorporated by any law for the time being in force, Rangoon University, English and Welsh Universities.]

(3) No person, who has been dismissed from Government service, shall be qualified to represent any dealer under sub-section (1).

(4) If any practitioner or other person who represents an assessee, is found guilty of misconduct in any proceedings before any authority under this Act by the Commissioner, the Commissioner may direct that he shall be disqualified to represent a dealer under sub-section (1):

Provided that no such direction shall be made in respect of any person unless he is given a reasonable opportunity of being heard.

¹[(5) Any person against whom any direction is made under this section may appeal to the Tribunal against such direction under and in accordance with the provisions of section 20.]

Section 14-B. Establishment of check-posts or barriers and inspection of goods in transit

²[14-B. Establishment of check-posts or barriers and inspection of goods in transit.- (1) If, with a view to preventing or checking evasion of tax under this Act in any place or places in the State, the State Government considers it necessary so to do, it may by notification direct the establishment of a check-post or the erection of a barrier, or both, at such place or places as may be notified.

(2) The owner or person in charge of a goods vehicle or vessel shall carry with him a goods vehicle record, a trip sheet or a log book, as the case may be, and a bill of sale or a delivery note containing such particulars as may be prescribed in respect of the goods carried in the goods vehicle or vessel, as the case may be, and produce the same before an officer incharge of a check-post or barrier or any other officer of the department not below the rank of an Assistant Excise and Taxation Officer checking the vehicle or vessel at any other place.

(3) The owner or person, in charge of a goods vehicle or vessel entering the State limits or leaving the State limits shall also give in triplicate a declaration containing such particulars as may be prescribed of the goods carried in such vehicle or vessel, as the case may be, before the officer incharge of the check-post or barrier and shall produce the copy of the said declaration duly verified and returned to him by tine officer incharge of the check-post or barrier before any other officer as mentioned in sub-section (2):

Provided that where a goods vehicle or vessel bound for any place outside the State passes through the State, the owner or person incharge of such vehicle or vessel shall also obtain a transit slip (rahdari) in the prescribed form from the officer incharge of the check-post or barrier of his entry into the State and deliver it to the officer incharge of the check-post or barrier at the point of his exit from the State failing which it shall be presumed that the goods have been sold within the State.

(4) At every check post or barrier or at any other place when so required by any other officer referred to in sub-section (2) in this behalf, the driver or any other person incharge of the goods vehicle or vessel shall stop the vehicle, as the case may be, and keep it stationary as long as may reasonably be necessary, and allow the officer-in-charge of the check post or barrier or the officer as aforesaid to examine the contents in the vehicle or vessel, by breaking open the package or packages, if necessary, and inspect all records relating to the goods carried which are in the possession of such driver or other person incharge, who shall also furnish such other information as may be required.

(5) At every station of transport of goods, bus stand or any other station or place of loading or unloading of goods, other than a rail head or a post-office, when so required by the Commissioner or any person appointed to assist the Commissioner under sub-section (1) of section 3 the driver or the owner of the goods carrier or the employee of a transport company shall produce for examination transport receipts and all other documents and account books concerning the goods carried, transported, loaded, unloaded or consigned or received for transport.

(6) Any officer not below the rank of an Assistant Excise and Taxation Officer while acting under this section shall have the power to seize any goods not covered by the documents mentioned in sub-section (2) and sub-section (3).

(7) No dealer or any person, including a carrier of goods, acting on behalf of a dealer, shall take delivery of, or transport from, any vessel, station, airport or any other place, whether of similar nature or otherwise, notified in this behalf by the State Government, any consignment of goods the sale or purchase of which is taxable under this Act except in accordance with such conditions as may be prescribed with a view to ensuring that there is no evasion of the tax imposed by or under this Act:

Provided that no place which is a rail head or a post-office shall be so notified by the State Government.

(8) Where the declaration made under sub-section (3) is false in respect of any particulars furnished therein, the officer-in-charge of the check-post or barrier or any other officer not below the rank of an Assistant Excise and Taxation Officer shall have the power to seize the goods in respect of which the declaration is false:

Provided that the officer acting under sub-section (6) or sub-section (8) may, before or after such seizure, give to the person affected an option to pay, in lieu of seizure and in addition to the tax recoverable, a sum of money not exceeding one thousand rupees or double the amount of tax recoverable, whichever is greater.

Explanation.- In this section, the expression "goods vehicle" has the same meaning as is assigned to it in clause (8) of section 2 of the Motor Vehicle Act, 1939, but does not include road transport plying in collaboration with rail transport.

Section 14-C. Power to call for information from banking companies, etc.

14-C. Power to call for information from banking companies, etc..- The Commissioner or any other person appointed to assist him under sub-section (1) of section 3 may, for carrying out the purposes of this Act, require any person, including a banking company, post-office or any officer thereof to furnish any information or statement useful for, or relevant to, any proceedings under this Act.]

Section 15. Delegation of Powers

15. Delegation of Powers.- Subject to such restrictions and conditions as may be prescribed the Commissioner may by order in writing delegate any of his powers under this Act, except those under ¹[sub-section (1) of section 21] to any person appointed under section 3 to assist him.

Section 16. Information to be furnished regarding change of business

16. Information to be furnished regarding change of business.- If any dealer to whom the provisions of sub-section ²[(3)] of section 10 apply-

(a) sells or otherwise disposes of his business or any place of business; or

(b) discontinues ³[or transfers] his business or changes his place of business or opens a new place of business; or

(c) changes the name ⁴[constitution] or nature of his business, or

⁵(d) wants to make any change in the class or classes of goods specified in his certificate of registration for use in the manufacture of any goods for sale, ⁶(* * *) he shall within the prescribed time inform the prescribed authority accordingly; and if any such dealer dies, his legal representative shall in like manner inform the said authority.

Section 17. Transfer of business

⁷[17. Transfer of business.- Where the ownership of the business of a registered dealer is entirely transferred and the transferee carries on such business either in its old name or in some other name, the transferee shall for all the purposes of this Act (except for liabilities under this Act already discharged by such dealer) be deemed to be and to have always been registered as if the certification of registration of such dealer had initially been granted to the transferee: and the transferee shall on application to the prescribed authority be entitled to have the registration certificate amended accordingly.]

Section 17-A. Liability of tax on stock in certain cases

¹[17-A. Liability of tax on stock in certain cases.- Should his certificate of registration be cancelled under any provision of this Act, a dealer, save when he has transferred his business to some one else, and notwithstanding clause (ff) of section 2 but subject to the provisions of section 6, shall be liable to pay tax on goods purchased by him in the State of Punjab after registration, and remaining unsold at the time of cancellation of certificate at a rate leviable for the sale of such goods.

Section 18. Lability to tax of a partitioned Hindu family, dissolved firm, etc.

²[18. Lability to tax of a partitioned Hindu family, dissolved firm, etc..- (1) Where a dealer is a undivided Hindu family, firm, or other association if persons, and such family, firm or association is partitioned, dissolved or disrupted, as the case may be,-

(a) the tax payable under this Act by such family, firm, or association of persons for the period up to the date of such partition, dissolution or disruption may be assessed as if no such partition, dissolution or disruption 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, dissolution or disruption a member or partner of in undivided Hindu family, firm or association of persons shall, notwithstanding such partition, dissolution or disruption, be liable severally and jointly for the payment of the tax including interest and penalty, if any, payable under this Act by such family, firm or association of persons, whether assessment is made prior to or after such partition, dissolution or disruption.

(2) Where the registration certificate of a dealer is cancelled under this Act in any case, other than that of a partition of undivided Hindu family or dissolution or disruption of a firm cr association of persons, the tax payable under this Act by such dealer for the period up to the date of cane illation of the registration certificate may be assessed on such dealer as if no such cancellation had taken place and all the provisions of this Act shall apply accordingly.]

Section 19. Bar of certain proceedings

¹[19. Bar of certain proceedings.- No assessment made and no order passed under this Act or the roles made thereunder shall be called into question in any Civil Court.]

Section 20. Appeals

²[20. Appeals.- (1) An appeal from every original order passed under this Act or the rules made thereunder shall lie,-

(a) If the order is made by an Assessing Authority, to the Deputy Excise and Taxation Commissioner;

(b) if the order is made by the Deputy Excise and Taxation Commissioner, to the Commissioner;

(c) if the order is made by the Commissioner or any officer exercising the powers of the Commissioner, to a Tribunal.

(2) An older passed in appeal by a Deputy Excise and Taxation Commissioner or by the Commissioner or any officer on whom the powers of the Commissioner are conferred shall be further appealable to a Tribunal.

(5) Every order of a Tribunal and subject only to such order, the order of the Commissioner or any officer exercising the powers of the Commissioner, on the order of the Deputy Excise and Taxation Commissioner or of the assessing authority if it was not challenged in appeal or revision shall be final.

(4) No appeal shall be entertained unless it is filed within sixty days from the date of communication of the order appealed against, or such longer period as the appellate authority may allow, for reasons to be recorded in writing.

(5) No appeal shall be entertained by an appellate authority unless such appeal is accompanied by satisfactory proof of the payment of the tax or of the penalty, if any, imposed or of both as the case may be:

Provided the if such authority is satisfied that the dealer is unable of pay the tax assessed or the penalty, if any, imposed or both, he may, for reasons to be recorded in writing, entertain an appeal without the tax or penalty or both having them paid or after part payment of such tax or penalty or both.

(6) Subject to such rules of procedure as may be prescribed, an appellate authority may pass such order on appeal as it deems to be just and proper.]

Section 21. Revision

¹[21. Revision.- (1) The Commissioner may of his own motion call for the record of any proceedings which are pending before, or have been disposed of by, any authority subordinate to him, for the purpose of satisfying himself as to the legality or propriety of such proceedings or order made therein and may pass such order in relation thereto as he may think fit.

(2) The State Government may by notification confer on any officer powers of the Commissioner under sub-section (1) to be exercised subject to such conditions and in respect of such areas as may be specified in the notification.

(3) A Tribunal, on application made to it against an order of the Commissioner under sub-section (1) within ninety days from the date of communication of the order, may call for and examine the record of any such case and pass such orders thereon as it thinks just and proper.

(4) No order shall be passed under this section which adversely affects any person unless such person has been given a reasonable opportunity of being heard.]

Section 21-A. Rectification of mistakes

²[21-A. Rectification of mistakes.- The Commissioner or the officer on whom powers of the Commissioner under sub-section (1) of section 21 have been conferred by the State Government may, at any time within two years from the date of any order passed by him, of his own motion rectify any mistake apparent from the record, and shall within a like period rectify any such mistake which has been brought to his notice by any person affected by such order:

Provided that no such rectification shall be made if it has the effect of enhancing the tax or reducing the amount of refund, unless the Commissioner or the officer on whom powers of the Commissioner under sub-section (1) of section 21 have been conferred by the State Government has given notice in writing to such person of his intention to do so and has allowed such person a reasonable opportunity of being heard.

(2) The provisions of sub-section (7) shall apply to the rectification of a mistake by a Tribunal as they apply to the rectification of a mistake by the Commissioner.

(3) Where any such rectification has the effect of reducing the amount of the tax or penalty the Commissioner shall in the prescribed manner order the refund of the amount so due to such person.

(4) Where any such rectification has the effect of enhancing the amount of the tax or penalty or reducing the amount of the refund, the Commissioner shall order the recovery of the amount from such person in the manner provided for in section 11 and 11-B.

Section 21-B. Disposal of pending appeals and applications etc.

21-B. Disposal of pending appeals and applications etc..- (1) Any appeal or application under sub-section (2) of section 22 pending immediately before the commencement of the Punjab General Sales Tax (Amendment and Validation) Act, 1967, before the Financial Commissioner shall stand transferred to the Tribunal constituted under section 3-A.

(2) Any application for revision pending immediately before the commencement of the Punjab General Sales Tax (Amendment and Validation) Act, 1967, before the Financial Commissioner, the Commissioner or an Officer on whom the powers of the Commissioner are conferred shall stand transferred to the Tribunal and shall be disposed of by it as if it were an appeal made to the Tribunal under and in accordance with the provisions of section 20.

(3) Subject to the provisions of section 20 and sub-sections (1) and (2), if a person is aggrieved by any order passed by any officer or authority before the commencement of the Punjab General Sales Tax (Amendment and Validation) Act, 1967, from which an appeal under sub-section (5) of section 14-A or a revision under section 21 or an application under sub-section (1) of section 22 was competent but was not filed and if the period of limitation prescribed therefor had not expired immediately before such commencement he may file an appeal or revision, as the case may be, to the Tribunal against such order within the unexpired period or within thirty days next after such commencement whichever period expires later.

Section 22. Statement of case to High Court

22. Statement of case to High Court.- ¹[(1) Within 60 days from the passing of an order under ²[section 20 or 21] by the ³[Tribunal], affecting any liability of any dealer to pay tax under this Act, such dealer or the Commissioner may, by application in writing accompanied by a fee of one hundred rupees in case the application is made by a dealer, require the ³[Tribunal] to refer to the High Court any question of law arising out of such order.]

(2) If for reasons to be recorded in writing, the ³[Tribunal] refuses to make such reference, the applicant may, within 30 days of such refusal either-

(a) withdraw his application (and if he does so, the fee paid shall be refunded); or

(b) apply to the High Court against such refusal.

(3) If upon the receipt of an application under clause (b) of sub-section (2), the High Court is not satisfied of the correctness of the ³[Tribunal's] decision, it may require the ³[Tribunal] to state the case and refer it, and on the receipt of such requisition, the ³[Tribunal] shall state and refer the case accordingly.

(4) If the High Court is not satisfied that the, statements in a case referred under this ¹[section] are sufficient to enable it to determine the question raised thereby, it may refer the case back to the ²[Tribunal] to make such additions thereto or alterations therein as the court may direct in that behalf.

(5) The High Court upon the hearing of any such case shall decide the question of law raised thereby, and shall deliver its judgment thereon containing the grounds on which such decision is founded and shall send to the ²[Tribunal] a copy of such judgment under the seal of the court and the signature of the Registrar, and the ²[Tribunal) shall dispose of the case accordingly.

(6) Where a reference is made to the High Court under this section, the cost (including the disposal of the fee) shall be in the discretion of the court.

(7) The payment of the amount, if any, of the tax due in accordance with the order of the ²[Tribunal], in respect of which an application has been made under sub-section (1), shall not be stayed pending the disposal of such application or any reference made in consequence thereof, but if such amount is reduced as the result of such reference, the excess tax paid shall be refunded in accordance, with the provisions of section 12.

Section 22-A. Power of [Tribunal or the Commissioner], and his Assistants to take evidence on oath etc.

³[22-A. Power of ²[Tribunal or the Commissioner], and his Assistants to take evidence on oath etc..- The ²[Tribunal or the Commissioner] or any person appointed to assist him under sub-section (7) of section 3 shall, for the purposes of this Act, have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (V of 1908), when trying a suit, in respect of the following matters, namely:-

(a) enforcing the attendance of any person and examining him on oath or affirmation;

(b) compelling the production of documents and impounding or detaining them;

(c) issuing commissions for the examination of witnesses;

(d) requiring or accepting proof of facts by affidavits;

(e) such other powers as may be prescribed;

and any proceeding under this Act before the ¹[Tribunal or the Commissioner] or any person appointed to assist him under sub-section (1) of section 3 shall be deemed to be a "Judicial proceeding" within the meaning of sections 193 and 228 and for the purposes of section 199 of Indian Penal Code].

Section 23. Penalty

²[23. Penalty.- (1) Whosoever contravenes, or fails to comply with, any of the provisions of this Act or the rules made thereunder or any order or direction made or given thereunder, shall, if no other penalty is provided under this Act for such contravention or failure, be liable to imposition of a penalty, not exceeding two thousand rupees, and where such contravention or failure is a continuing one, to a daily penalty not exceeding fifty rupees during the period of the continuance of the contravention or failure.

(2) An officer of the rank of a Deputy Excise and Taxation Commissioner appointed under sub-section (1) of section 3 may, after affording to the dealer a reasonable opportunity of being heard, impose the penalty mentioned in sub-section (1)]

³[(3) * * *

(4) * * *

(5) * * *

Section 24. [Omitted by Punjab Act 28 of 1965]

⁴[24. [Omitted by Punjab Act 28 of 1965].- * * *

Section 25. Indemnity

25. Indemnity.- No suit, prosecution or other legal proceedings shall lie against any officer or servant of the ⁵[State] Government for anything which is in good faith done or intended to be done under this Act or the rules made thereunder.

Section 26. Returns, etc. to be confidential

26. Returns, etc. to be confidential.- (1) All particulars contained in any statement made, return furnished or accounts or documents produced in accordance with this Act, or in any record of evidence given in the course of any proceedings under this Act other than proceedings before a Criminal Court, shall, save as provided in sub-section (3), be treated as confidential, and notwithstanding anything contained in the Indian Evidence Act, 1872, no court shall, save as aforesaid be entitled to require any officer of the ¹[State] Government to produce before it any such statement, return, account, document or record or any part thereof, or to give evidence before it in respect thereof.

(2) If, save as provided in sub-section (3), any officer of the ¹[State] Government discloses any of the particulars referred to in sub-section (1), he shall be punishable with imprisonment which may extend to six months, and shall also be liable to fine.

(3) Nothing in this section shall apply to the disclosure of any of the particulars referred to in sub-section (1) for the purposes of a prosecution under the Indian Penal Code in respect of any such statement, return, accounts, documents or evidence, or for the purposes of a prosecution under this Act, ²[or for departmental use of the officials of the Income-tax Department of the Government of India] ³[or for Government Departments of other sister States of the Union of India].

Section 27. Power to make rules

27. Power to make rules.- (1) The ¹[State] Government may, subject to the condition of previous publication, make rules for carrying out the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such rules may prescribe-

⁴[(d) the salaries, allowances and other conditions of service of the Presiding Officer of a Tribunal;

(aa) the conditions and limitation subject to which a Tribunal shall award costs under Sub-section costs under sub-section (11) of section 3-A];

(b) the further period after the date of expiry of three consecutive years referred to in sub-section (3) of section 4;

(c) the taxable quantum for particular classes of dealers under clause ¹[(c)]of sub-section (5) of section 4;

²[(cc) the particulars to be contained in a declaration under sub-clause (ii) of clause (a) of sub-section (2) of section 5; the form of such declaration, and the manner in which such declaration is to be furnished;]

(d) the other sales, turnover in respect of which may be deducted from a dealers gross turnover in computing his taxable turnover as defined in section 5;

(e) the ??? to which applications for registration under section 7 or section 8 shall be made;

(f) the procedure for the payment of fees in respect of, and other matters incidental to, the registration of dealers and granting of certificates of registration, and the form of such certificate under section 7 or section 8 ³[and the manner in which security shall be furnished under section 9.]

⁴[(g) the intervals at which the conditions subject to which a lump sum by way of composition may be accepted by the Commissioner from any dealer, the manner in which such lump sum is to be determined and the manner in which the tax under this Act shall be payable under section 10;]

(h) the returns to be furnished under sub-section ¹[(3)] of section, 10, and dates by which, and the authority to which such returns shall be furnished;

(i) the date by which returns for any period are to be furnished and the procedure to be followed for assessment under section 11;

(j) the manner in which refunds under section 12 shall be made;

²[(k) the conditions, if any, for issue of direction under section 13;]

³[(1) the manner of authentication of account books under clause (c) of sub-section (2) of section 14;

(ll) the particulars of bills of sales or delivery notes referred to in sub-section(2) of section 14B, the particulars of declaration to be given under sub-section (3) of that section, the form of transit-slip (rahdari) referred to in the privoso to that sub-section and the conditions on which delivery of consignment of goods shall be taken under sub-section (7) of that section;]

(m) the restrictions and conditions subject to which the Commissioner may delegate his powers under section 15;

(n) the authority to which information shall be furnished under section 16;

(o) the manner in which appeals ⁴[***] may be preferred under section 20;

(p) the procedure for and other matters (including fees) incidental to, the disposal of appeals and applications for revisions under sections 20 and 21;

⁵[(pp) the authority by which and the manner in which cases may be transferred from one Assessing Authority to another and from one appellate authority to another;]

⁶[(q) and other matter which is to be or may be prescribed;]

(r) the manner in which and the time within which, applications shall be made, information furnished, and notices served, under this Act;

¹(s) the procedure for the cancellation and return of certificate of registration.]

²[(3) * * *]

Section 27-A. Transitional provisions

³[27-A. Transitional provisions.- Turnover for the year 1949-1950 shall be dealt with as under:-

(1) Separate returns shall be submitted by each dealer, one for the period from the 1st April, 1949 to the 30th April, 1949, and the others from the 1st May, 1949 to the 31st March, 1950, as may be prescribed.

(2) Each of these two periods shall be deemed to be a year for the purposes of assessment under this Act.

(3) (i) Notwithstanding the repeal of the Punjab General Sales Tax Act, 1941, for dealing with the turnovers for the period from the 1st April, 1949 to the 30th April, 1949, the first part of sub-section (1) of section 3 of the repealed Act shall be deemed to be in force subject to the following:-

There shall be charged on the turnover every year a tax at the following rates, that is to say-

(ii) The returns for the period from the 1st May, 1949 to the 31st March, 1950, shall be dealt with in accordance with the provisions of this Act.]

Section 27-B. (Transitional provisions)

¹[27-B. (Transitional provisions).- Notwithstanding anything contained in sub-section (3) of section 4 and in sub-section (4) of section 8,-

(a) the registration of a dealer mentioned in clause ²[(e)] of sub-section (5) of section 4, effected before the 30th September, 1949, under section 7 on the ground that his gross turnover during the year 1948-1949 exceeded 20,000 rupees shall be cancelled with effect from the 1st April, 1950, if his gross turnover during the year 1948-1949 did not exceed 30,000 rupees and he applies for the cancellation of his registration certificate on or before the 31st December, 1949; and

(b) the registration of all dealers effected under section 8 before the 30th September, 1949, shall stand cancelled with effect from the 1st April, 1950, and all such dealers shall surrender their registration certificates to the appropriate assessing authority on or before the 31st December, 1949.]

Section 28. Repeal

28. Repeal.- The Punjab General Sales Tax Act, 1941 (IV of 1941), is hereby repealed: Provided that anything done under the said Act which could have been done under this Act if it had then been in force shall be deemed to have been done under this Act.

Section 29. Provision in case of inter-State trade, etc.

³[29. Provision in case of inter-State trade, etc..- (1) Notwithstanding anything contained in this Act,-

(a) a tax on the sale or purchase of goods shall not be imposed under this Act-

(i) where such sale or purchase takes place outside the State of Punjab; or

(ii) where such sale or purchase takes place in course of import of the goods into, or export of the goods out of, the territory of India;

(b) a tax on the sale or purchase of any goods shall not, after the 31st day of March, 1951, be imposed where such sale or purchase takes place in the course of inter-State trade or commerce except in so far as Parliament may by law otherwise provide.

⁴[(2) * * *

Section 30. Power to exempt

¹[30. Power to exempt.- (1) The State Government, if satisfied that it is necessary or expedient so to do in the interest of cottage industries, may by notification exempt any class of co-operative societies or persons from the payment of tax under this Act on the purchase or sale of any goods subject to such conditions as may be specified in such notification.

(2) Where a notification under subjection (1) has been issued by the State Government-

(a) a registered dealer shall not be entitled to charge tax on the sales made to such societies or persons; and

(b) such sales shall not be included in the taxable turnover of such registered dealer notwithstanding anything to the contrary contained in sub-section (2) of section 5.

(3) Every notification made under sub-section (1) shall, as soon as may be after it is made, be laid before ²[* * *] the State Legislature.]

Section 31. Power to amend Schedule C

³[31. Power to amend Schedule C.- The State Government, after giving by notification not less than ⁴[twenty days] notice of its intention so to do, may by notification add to, or delete from, Schedule G any goods, and thereupon Schedule C shall be deemed to be amended accordingly.]