Tamil nadu act 060 of 1997 : Tamil Nadu General Sales Tax (Sixth Amendment) Act, 1997

Section 1. Short title and commencement

1. Short title and commencement.- (1) This Act may be called the Tamil Nadu General Sales Tax (Sixth Amendment) Act, 1997.

(2)(a) All sections except sections 4 and 11 shall come into force at once.

(b) section 4 shall be deemed to have come into force on the first day of April, 1996.

(c) section 4 shall come into force on the first cay of April, 1998.

Section 2. Amendment of section 7-A

2. Amendment of section 7-A.- In section 7-A of the Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act ??? of ???) (hereinafter referred to as the Principal Act), in sub-section (1) for clause (a), the following clause shall be substituted, namely:-

(a) consumes or uses such goods in or for the manufacture of other goods for sale or otherwise or".

Section 3. Institution section 10

3. Institution section 10.- For section 10 of the Principal Act, the following section shall be substituted namely:-

"10. Burden of proof:- (1) For the ??? Act ???

(2) Notwithstanding anything container in this Act or in any other law for the time being in force a clear in any of the goods liable to taxi a respect of the first sale or first purchase in the State shall be deemed to be the first seller or first purchaser as the case may be of such good and shah be liable to pay tax accordingly on his turnover of sale or purchase relating to such ??? unless he proves that the sale or purchase as the case may be of such goods had already be subjected to tax under this Act.

(3) Where any dealer knowingly produces a false bill vouchers declaration certificate or other document with a view to support or make any claim that a transaction of sale or purchase effected by him is not liable to be taxed or liable to be taxed at a lower rate, the assessing authority shall on detecting such production direct the dealer producing such document to pay as penalty a sum-

(i) which shall be in the case of first such detection fifty percent of the tax due in respect of such transaction; and

(ii) which shall be in the case of second or subsequent detections one hundred per cent of the tax due in respect of such transaction:

Provided that no penalty shall be levied without giving the dealer an opportunity of being heard".

Section 4. Amendment section 12

4. Amendment section 12.- In section 12 of the Principal Act,- (1) after sub-section (2), the following sub-section shall be inserted, namely:-

"(2-A)(a) An assessment in respect of registered dealers under sub-sections (1), ???

Provided that where an assessment made under this section or section 16 is set aside by the authorities under section 31, 31-A, 34, 36 or 38, as the case may be and there by, the assessing authority is directed to make a fresh assessment, the assessing authority shall pass fresh orders within a period of one year from the date of receipt of such direction:

Provided further that the time limit shall apply to the assessment for the financial years, commencing on the 1st day of April, 1996.

Provided also that any assessment relating to any financial year prior to the financial year commencing on the 1st day of April, 1996 shall be completed on or before the 31st day of March, 2000.

(b) The Commissioner of Commercial Taxes may, by order, direct any assessing authority to defer assessment pending clarification by him on any question referred to him under section 28-A if such question has a bearing on such assessment. The period between the date of such direction and the date on which such clarification has been received shall be excluded in computing the period specified in this sub-section for the purpose of ??? the assessment.

(c) Where an assessment is not concluded within the time specified the, total and the taxable turnover declared by a dealer in his return shall be deemed to have been assessed for that year on the basis of the said return under the provisions of this Act.

(2B) In Computing the period of limitation for assessment under this section the following period shall be excluded, namely:-

(i) the time during which the proceedings for assessment remained stayed under the orders of a civil court or other authority;

(ii) the time during which any appeal or other proceeding in respect of any other assessment or reassessment is pending before the Special Tribunal, the High Court or the Supreme Court involving a question of law having a direct bearing on the assessment in question.

(iii) the time during which any appeal or ??? in respect of any assessment or reassessment of the same part of the turnover made under any other enactment was pending before any appellate or revisional authority or the Special Tribunal or the High Court or the Supreme Court.";

(2) In sub-section (3) the following Explanation shall be added at the end, namely:-

"Explanation;-For the purpose of levy of penalty under clause (b) above, the tax assessed on the following kinds of turnover shall be deducted from the tax assessed on shall assessment-

(i) Turnover representing additions to the turnover as per books made by the assessing authority without any reference to any specific concealment of turnover from the accounts;

(ii) Any turnover estimated by the Assessing Authority with reference to any specific concealment of any turnover from the accounts;

(iii) Any turnover on which tax is paid at the concessional rate subject to the condition of furnishing any declaration but where such declaration could not be furnished at the time of assessment.".

Section 5. Insertion of new section 19-B

5. Insertion of new section 19-B.- After section 19-A of the Principal Act, the following section shall be inserted namely;-

"19-B. Liability to tax private company on winding up-Where a dealer is a private company and such company is wound up, every person the was a director of such company at the time of such winding up shall notwithstanding such winding up, be jointly and severally liable for the payment of tax, penalty or other amount payable under this Act by such company whether assessment is made period or such winding up unless he proves that the non-payment of tax cannot be attributed to any gross neglect misfeasance or bread of duty on his part in relation to the affairs of the Company.".

Section 6. Amendment of section 21

6. Amendment of section 21.- In section 21 of the Principal Act, sub-section (7) shall be omitted.

Section 7. Insertion of new section 28-A

7. Insertion of new section 28-A.- After section 28 of the Principal Act, the following section shall be inserted, namely:-

"28-A. Power to issue clarification by Commissioner of Commercial Taxes.-

(1) The Commissioner of Commercial Taxes on an application by a registered dealer, may clarify any point concerning the rate of tax under the Act. Such clarification shall be applicable to the goods specified in the application:

Provided that no such application shall be entertained unless it is accompanied by proof of payment of such fee, paid in such manner, as may be prescribed.

(2) The Commissioner of Commercial Taxes may, if he considers it necessary or expedient so to do, for the purpose of uniformity in the work of assessment and collection of tax, clarify any point concerning the rate of tax under this Act or the procedure relating to assessment and collection of tax as provided for under this Act.

(3) All persons working under the control of Commissioner of Commercial Taxes shall observe and follow the clarification issued under sub-section (1) and sub-section (2).".

Section 8. Amendment of section 31

8. Amendment of section 31.- In section 31 of the Principal Act, in sub-section (1),-

(1) after the expression "section 4-A", the expression "sub-section (3) of section 10", shall be inserted;

(2) in the second proviso, for the expression "under section 12", the expression "under sub-section (3) of section 10, section 12" shall be substituted.-

Section 9. Amendment of section 31-A

9. Amendment of section 31-A.- In section 31-A, of the Principal Act, in sub-section (1),-

(1) after the expression "section 4-A,", the expression "sub-section (3) of section 10," shall be inserted;

(2) in the second proviso, for the expression "under section 12", the expression "under sub-section (3) of section 10, section 12" shall be substituted.

Section 10. Amendment of section 32

10. Amendment of section 32.- In section 32 of the Principal Act, in sub-section (1), after the expression "section 4-A,", the expression "under sub-section (3) of section 10," shall be inserted.

Section 11. Amendment of section 34

11. Amendment of section 34.- In section 34 of the Principal Act,-

(1) in sub-section (1), the expression, "Appellate Assistant Commissioner under sub-section (3) of section 31 or by the Appellate Deputy Commissioner under sub-section (3) of section 31-A or by the" shall be omitted;

(2) in the provision to sub-section (2), the expression "Appellate Assistant commissioner or Appellate Deputy Commissioner" shall be omitted.

Section 12. Amendment of section 36

12. Amendment of section 36.- In section 36 of the Principal Act, for sub-sections (1) and (2), the following sub-sections shall be substituted, namely;-

"(1) Any officer empowered by the Government or any person objecting to an order passed by the Appellate Assistant Commissioner under sub-section (3) of section 31, or by the Appellate Deputy Commissioner under sub-section (3) of section 31-A, or by the Deputy Commissioner under sub-section (1) of section 32, may,-

(i) within a period of one hundred and twenty days, in the case of an officer so empowered by Government.

(ii) within a period of sixty days, in the case of any other person, from the date on which the order was served in the manner prescribed, appeal against such order to the Appellate Tribunal:

Provided that the Appellate Tribunal may, within a further period of one hundred and twenty days, in the case of an officer empowered by Government and sixty days in the case of any other person, admit an appeal presented after the expiration of the first mentioned period of one hundred and twenty days of sixty days, as the case may be, if it is satisfied that the appellant had sufficient cause for not presenting the appeal within the first mentioned period.

(1-A) The officer empowered under sub-section (1) or the person against whom an appeal has been preferred, as the case may be, on receipt of notice that an appeal has been preferred under sub-section (1) by the other party, may file within sixty days of the receipt of the notice, a memorandum of cross-objections and such memorandum shall be disposed of by the Appellate Tribunal as if it were an appeal presented within the time specified in sub-section (1).

(2) The appeal and the memorandum of cross-objections shall be in the prescribed form and shall be verified in the prescribed manner and shall be accompanied by such tee as may be prescribed:

Provided that no fee shall be payable by the officer empowered under subjection (1).".

Section 13. Amendment of section 45

13. Amendment of section 45.- In section 45 of the Principal Act, after sub-section (7), the following sub-section shall be added, namely:-

"(8) Any person who knowingly issues a false bill, voucher, declaration, ??? or other document with a view to support any dealer to claim exemption or reduction in rate of tax on the sale or purchase of any goods under this Act, sum, on conviction, be liable to simple imprisonment which may extend to ??? months and in the event of a second or subsequent conviction to rigorous imprisonment for six months.".

Section 14. Disposal of pending cases before Joint Commissioner of Commercial Taxes

14. Disposal of pending cases before Joint Commissioner of Commercial Taxes.- All proceedings initiated under sub-section (1) of section 34 of the Principal Act and pending before the joint Commissioner of Commercial Taxes immediately before the date of commencement of section 11 of this Act shall be heard and disposed of by the Joint Commissioner of Commercial Taxes as if, this Act had not been passed.