Tamil Nadu General Sales Tax (Tenth Amendment) Act, 1986*
| [Tamil Nadu Act No. 78 of 1986] | [17th December, 1986] |
An Act further to amend the Tamil Nadu General Sales Tax Act, 1959
Be it enacted by the Legislative Assembly of the State of Tamil Nadu in the Thirty-seventh Year of the Republic of India as follows:-
* Received the assent of the Governor on the 17th December, 1986 and published in the Tamil Nadu Government Gazette, Extraordinary.
1. Short title and commencement.- (1) This Act may be called the Tamil Nadu General Sales Tax (Tenth Amendment) Act, 1986.
(2) It shall come into force on such date as the; State Government may, by notification, appoint.
2. Amendment of section 2, Tamil Nadu Act 1 of 1959.- In section 2 of the Tamil Nadu General Sales Tax Act, 1959 (Tamil Nadu Act 1 of 1959) (hereinafter referred to as the principal Act),-
(i) clause (a) shall be re-lettered as clause (aa) of that section and before clause (aa) as so re-lettered, the following clause shall be inserted, namely:-
"(a) "Administrative Assistant Commissioner" means any person appointed to be an Administrative Assistant Commissioner of Commercial Taxes under section 28;";
(ii) for clause (ccc), the following clauses shall be substituted namely:-
"(ccc) "Assistant Commissioner (Assessment)" means any person appointed to be an Assistant Commissioner of Commercial Taxes (Assessment) under section 28;
(cccc) "Assistant Commissioner (Checkposts)" means any person appointed to be an Assistant Commissioner of Commercial Taxes (Checkposts) under section 28;
(ccccc) "Assistant Commissioner (Enforcement)" means any person appointed to be an Assistant Commissioner of Commercial faxes (Enforcement) under section 28;";
(iii) after clause (f), the following clause shall be inserted, namely:-
"(ff) "Commissioner" means any person appointed to be a Commissioner of Commercial Taxes under section 28;
(iv) after clause (k), the following clause shall be inserted, namely:-
"(kk) "Joint Commissioner" means any person appointed to be a Joint Commissioner of Commercial Taxes under section 28;";
(v) after clause (p), the following clause shall be inserted, namely:-
"(PP) "Territorial Assistant Commissioner" means any person appointed to be a Territorial Assistant Commissioner of Commercial Taxes under section 28;";
(vi) in clause (r),-
(a) for Explanation (1-A), the following Explanation shall be substituted, namely:-
"Explanation (1-A).-Any amount charged by a dealer by way of tax separately without including the same in the price of the goods bought or sold shall not be included in the turnover.";
(b) after Explanation (2), the following Explanation shall be added, namely:-
"Explanation (3).-Any amount realised by a dealer by way of sale of his business as a whole, shall not be included in the turnover.".
3. Amendment of section 1-A, Tamil Nadu Act 1 of 1959.- In section 7-A of the principal Act, in sub-section (1),-
(a) for the expression "no tax is payable under sections 3, 4 or 5, as the case may be, and either.", the expression "no tax is payable under sections 3, 4 or 5, as the case may be, (not being a circumstance in which goods liable to tax under sub-section (2) of section 3 or section 4, were purchased at a point other than the taxable point specified in the First or the Second Schedule; and either," shall be substituted;
(b) in clause (a), after the word "consumes" the words "or uses" shall be inserted.
4. Amendment of section 13, Tamil Nadu Act 1 of 1959.- For Section 13 of the principal Act, the following section shall be substituted, namely:-
"13. Advance payment of tax.-(1) The tax for each year payable under any of the provisions of this Act may be collected in advance during the year in monthly or other prescribed instalments and for this purpose a dealer may be required to furnish within the prescribed period such returns as may be prescribed. The assessing authority may provisionally determine the amount of tax payable in advance during any year or in respect of any period and on such determination and intimation to the dealer, he shall pay such tax in such instalments and within such period as may be prescribed.
(2) In lien of the tax provisionally determined under sub-section (1), a dealer may, at his option, pay tax in advance during the year on the basis of his actual turnover for each month or for such other periods as may be prescribed. For this purpose, he may be required to furnish returns showing his actual turnover for each month or other periods as may be prescribed and to pay tax on the basis of such returns. The tax under this sub-section shall become due without any notice of demand to the dealer on the date of receipt of the return or on the last due date as prescribed, whichever is later.
(3) If no return is submitted by the dealer under sub-section fl) or sub-section (2) within the prescribed period, or if the return submitted by him appears to the assessing authority to be incomplete or incorrect the assessing authority may, after making such enquiry as it considers necessary, determine the tax payable by the dealer to the best of its judgment:
Provided that, before taking action under this sub-section on the ground that the return submitted by the dealer is incomplete or incorrect, the dealer shall be given a reasonable ??? of proving the correctness or completeness of the return submitted by him.
(4) If the assessing authority has reason to believe that the tax determined by it for any period was based on too low a turnover or was made at too low a rate or was based on too high a turnover or was made at too high a rate it may enhance or reduce, as the case may be, such determination of tax;
Provided that before making an enhancement of the tax payable as aforesaid, the assessing authority shall, except where such enhancement is based on the turnover finally determined for the preceding year, give a reasonable opportunity to the dealer to show cause against such enhancement and make such enquiry as it may consider necessary.
(5) The determination and collection of tax under this section shall be subject to such adjustment as may be prescribed on the completion of final assessment in the manner prescribed.
5. Amendment of section 13-A, Tamil Nadu Act 1 of 1959.- In section 13-A of the principal Act,-
(a) in the marginal ???, for the expression "as assessed", the expression "as determined" shall be substituted;
(b) for sub-section (1), the following sub-section shall be substituted, namely:-
"(1) A dealer in whose case the tax due during the preceding year has been provisionally determined under section 13 shall, unless he is not liable to pay tax for the year, continue to pay for the year the tax so determined in the preceding year in the prescribed manner until the tax due from him is again provisionally determined for the year under section 13.";
(c) in sub-section (2), for the words "completion of provisional assessment" the words "provisional determination" shall be substituted.
6. Amendment of section 16, Tamil Nadu Act 1 of 1959.- In section 16 of the principal Act, after sub-section (5), the following sub-section shall be added, namely:-
"(6) In computing the period of limitation for assessment or reassessment under this section, the time during which any appeal ??? same of part of the turnover made under any other enactment was pending before any appellate or revisional authority or the Special Appellate Tribunal or the Supreme Court shall be excluded."
7. Amendment of section 16-B, Tamil Nadu Act 1 of 1959.- In section 16-B of the principal Act, in sub-section (1), for the words "the Board of Revenue may, in its discretion, whether on its own motion or otherwise, reduce or waive the amount of penalty imposed or imposable on a dealer, if it is satisfied that", the words "the Commissioner of Commercial Taxes may, in his discretion, whether on his own motion or otherwise, reduce or waive the amount of penalty imposed or imposable on a dealer, if he is satisfied that" shall be substituted.
8. Insertion of new section 16-C in Tamil Nadu Act 1 of 1959.- After section 16-B of the principal Act, the following section shall be inserted, namely:-
"16-C. Assessment in cases of price variation.- Notwithstanding anything contained in sections 16, 16-A and 16-B.-
(a) if a dealer receives in any year any amount due to price variations, which would have been included in his turnover for any previous year if it had been received by him in that year, he shall, within thirty days from the end of the year in which such amount is received, submit a return in the prescribed form to the assessing authority and there upon the assessing authority shall proceed to assess the tax payable on such amount;
(b) if a dealer returns in any year any amount due to price variations, which would have been excluded in his turnover for any previous year it had been returned by him in that year, he shall, within thirty days from the end of the year in which such amount is returned, submit a return in the prescribed form to the assessing authority and thereupon the assessing authority shall proceed to arrive at the quantum of the tax refundable on the amount returned by the dealer;
(c) if the assessing authority is satisfied that any return submitted under clause (a) or clause (b) is correct and complete, it shall assess or re-assess, as the case may be, the dealer on the basis thereof;
(d) if the return submitted by a dealer under clause (a) appears to the assessing authority to be incorrect or incomplete, the assessing authority shall, after making such enquiry, as it may consider necessary and after taking into account all relevant materials gathered by it, assess the dealer to the best of its judgment:
Provided that before taking action under this clause, the dealer shall be given a reasonable opportunity to prove the correctness and completeness of the return;
(e) if no return is submitted by the dealer under clause (a), the assessing authority may, within five years from the expiry of the period within which such return must have been submitted, proceed to assess the tax payable on the amount referred to in the said clause;
Provided that before making any assessment under this clause, the assessing authority shall give the dealer an opportunity of being heard and make such other enquiry as it may consider necessary.".
9. Amendment of section 21, Tamil Nadu Act 1 of 1959.- In section 21 of the principal Act, for sub-section (3), the following sub-section shall be substituted, namely:-
"(3) The certificate issued under sub-section (2) shall be valid for a year and shall be renewed in such manner and within such period as may be prescribed, on payment of the fee specified in sub-section (1). The certificate shall be deemed to have been cancelled unless it has been renewed".
10. Amendment of section 24, Tamil Nadu Act 1 of 1959.- For section 24 of the principal Act, the following section shall be substituted, namely:-
"24. Payment and recovery of tax.- (1) Save as otherwise provided for in sub-section (2) of section 13, the tax assessed or has become payable under this Act from a dealer or person and any other amount due from him under this Act shall be paid in such manner and in such instalments, if any and within such time as may be specified in the notice of assessment, not being less than twenty-one days from the date of service of the notice. The tax under sub-section (2) of section 13 shall be paid without any notice of demand. In default of such payments the whole of the amount outstanding on the date of default shall become immediately due and shall be a charge on the properties of the person or persons liable to pay the tax or interest under this Act.
(2) Any tax assessed on or has become payable by, or any other amount due under this Act from a dealer or person and any fee due from him under this Act, shall, subject to the claim of the Government in respect of land revenue and the claun of the Land Development Bank in regard to the property mortgaged to it under section 28(2) of the Tamil Nadu Co-operative Land Development Banks Act, 1934 (Tamil Nadu Act X of 1934), have priority over all other claims against the property of the said dealer or person and the same may without prejudice to any other mode of collection be recovered,-
(a) as land revenue, or
(b) on application to any Magistrate, by such Magistrate as if it were a fine imposed by him:
Provided that no proceedings for such recovery shall be taken or continued as long as he has, in regard to the payment of such tax, other amount or fee, as the case may be, complied with an order by any of the authorities to whom the dealer or person has appealed or applied for revision, under section 31, 31-A, 33, 35, 36, 37 Dr. 38.
(3) On any amount remaining unpaid after the date specified for its payment as referred to in sub-section (1) or in the order permitting payment in instalments, the dealer or person shall pay, in addition to the amount due, interest at two per cent per month of such amount for the entire period of default:
Provided that the amount remaining unpaid is less than one hundred rupees and the period of default is not more than a month, no interest shall be paid:
Provided further that where a dealer or person has preferred an appeal or revision against any order of assessment under this Act, the interest payable under this sub-section, in respect of the amount in dispute in the appeal or revision, shall be postponed till the disposal of the appeal or revision, as the case may be, and shall be calculated on the amount that becomes due in accordance with the final order passed on the appeal or revision as if such amount had been the subject matter of the appeal or revision.
(4) Where the tax paid under this Act is found to be in excess on final assessment or revision of assessment, or as a result of an order passed in appeal, revision or review, the excess amount shall be refunded to the dealer after adjustment of arrears of tax, if any, due from him. Where the excess amount is not refunded to the dealer within a period of ninety days from the date of the order of assessment or revision of assessment or order passed in appeal, revision or review, the Government shall pay by way of interest, where the amount refundable is not less than one hundred rupees, a sum equal to a sum calculated at the rate of one per cent of part thereof of such amount for each month or part thereof after the expiry of the said period of ninety days.".
11. Amendment of section 26, Tamil Nadu Act 1 of 1959.- In section 26 of the principal Act, for sub-section (1), the following sub-section shall be substituted, namely:-
"(1) The assessing authority may, at any time or from time to time by notice in writing (a copy of which shall be ??? at his last address known to the ??? authority), ???-
(i) any person from whom money is due or may become ??? to the ??? or to any person who has become liable to pay any amount due under this Act; or
(ii) any person who holds or may subsequently hold money for or on account of the dealer or other person who has become ??? to pay any amount due under this Act,
to pay to the assessing authority either forthwith upon the money becoming due or being held at or within the time sneered in the ??? being before the money becomes due ??? or held so much ??? the money as ??? to pay the amount due by the dealer ??? person in respect of the wears that have become payable ??? this Act or the whole of the money when it is equal to or ??? than the arrears aforesaid."
12. Amendment of section 28, Tamil Nadu Act 1 of 1959.- For ??? of the principal Act the following section shall be substituted namely:-
"??? Appointment of Commissioner of ??? Taxes, ??? ??? of ??? Taxes, ??? Commissioners ??? Assistant Commissioner of ??? Taxes ??? Tax Officers- The Government ??? Joint Commissioners ??? Commercial Taxes ??? Commissioners of Commercial Taxes ??? Assistant Commissioners of Commercial Taxes, Deputy Commissioners of Commercial Taxes Assistant Commissioners of Commercial Taxes, ??? Assistant Commissioners of Commercial Taxes Assistant ??? Commissioners of Commercial Taxes, Assistant ??? of Commercial Tuxes (Assessment). Assistant ??? of Commercial Taxes (Check Posts) Assistant Commissioners of Commercial Taxes, (Enforcement) and Commercial ??? they that ??? for the purpose of performing the ??? conferred on them by or under this Act. The Commissioner of Commercial Taxes shall perform the functions conferred on him throughout the State, and the other officers shall perform, their functions within such local limits as the Government of any authority or officer empowered in this behalf, may assign to them.".
13. Amendment of section 29, Tamil Nadu Act I of 1959.- If section 29 of the principal Act,-
(a) in sub-section (1),-
(i) for the words "An Assistant Commissioner" the words and brackets "A Territorial Assistant Commissioner or an Assistant Commissioner (Assessment)" shall be substituted;
(ii) for the expression "Madias Revenue Recovery Act, 1864 (Madras Act II of 1864)", the expression "Tamil Nadu Revenue Recovery Act, 1864 (Tamil Nadu Act II of 1864)" shall be substituted.
(b) in sub-section (2), for the words "all Assistant Commissioners" the words and brackets "the Territorial Assistant Commissioner and the Assistant Commissioner (Assessment)" shall be substituted;
(c) in sub-section (3),-
(i) for the words "Assistant Commissioner", the words and brackets "Territorial Assistant Commissioner and the Assistant Commissioner (Assessment)" shall be substituted;
(ii) for the words "Board of Revenue" the words "Commissioner of Commercial Taxes" shall be substituted;
(d) after sub-section (3), the following sub-section shall be added, namely:-
"(4) The Territorial Assistant Commissioner and the Assistant Commissioner (Assessment), may subject to the control and superintendence of the Deputy Commissioner and the Commissioner of Commercial Taxes, delegate the powers vested in them under sub-sections (1) and (2), to any officer not below the rank of an Assistant Commercial Tax Officer placed under their authority and the provisions of sub-section (1) and sub-section (2) shall apply to such officer as they apply to the Territorial Assistant Commissioner and the Assistant Commissioner (Assessment).".
14. Amendment of section 31, Tamil Nadu Act 1 of 1959.- In section 31 of the principal Act.-
(a) in sub-section (1), for the words "an Assistant Commissioners the words and brackets "an Assistant Commissioner (Assessment)" shall be substituted;
(b) for sub-section (2), the following sub-section shall be substituted, namely:-
"(2) The appeal shall be in the prescribed form and shall be verified in the prescribed manner and shall be accompanied by such fee not exceeding fifty rupees as may be prescribed.";
(c) in sub-section (3), after the words "a reasonable opportunity of being heard", the words "and for sufficient reasons to be recorded in writing" shall be inserted.
15. Amendment of section 31-A, Tamil Nadu Act 1 of 1959.- In section 31-A of the principal Act, in sub-section (1) for the words "the Assistant Commissioner the words and brackets "the Assistant Commissioner (Assessment)" shall be substituted;
16. Amendment of section 34, Tamil Nadu Act 1 of 1959.- In section 34 of the principal Act, in sub-section (1), after the expression "sub-section (1) of, section 32", the expression "or sub-section (3) of section 33" shall be inserted;
17. Amendment of section 35, Tamil Nadu Act 1 of 1959.- in section 35 of the principal Act.-
(a) in the marginal heading, for the words "Board of Revenue" the words "Joint Commissioner of Commercial Taxes" shall be substituted;
(b) ??? the words "Board of Revenue" wherever it occurs the words "Joint Commissioner of Commercial Taxes" shall, be substituted;
(c) in the proviso to sub-section (1), for the words "if it is satisfied", the words "if he is satisfied" shall be substituted;
(d) in sub-section (3), for the words "pass such order thereon as it thinks fit", the words "pass such order thereon as he thinks fit" shall be substituted;
(e) in the proviso to sub-section (4),-
(i) for the words "in its discretion, give such directions as it thinks fit", the words "in his discretion give such directions as he thinks fit" shall be substituted;
(ii) for the words "to its satisfaction", the words "to his satisfaction" shall be substituted.
18. Amendment of section 36, Tamil Nadu Act 1 of 1959.- In section 36 of the principal Act,-
(a) in sub-section (2), the words "not exceeding one hundred rupees" shall be omitted;
(b) in sub-section (3),-
(i) in the opening portion, after the words "a reasonable opportunity of being heard" the words "and for sufficient reasons to be recorded in writing," shall be inserted;
(ii) in clause (a), sub-clause (i), after the word "enhance", the words "restore fully or partially, as the case may be" shall be inserted;
(iii) in the first proviso, for the words "the assessing authority shall have the right to be heard either in person or by a representative", the words "the Government shall have the right to be heard by a representative" shall be substituted;
(c) in sub-section (3-A),-
(i) after the expression "may file an enhancement petition" the expression "or a petition for restoration of the assessment or penalty or both, fully or partially, as the case may be" shall be inserted;
(ii) for the proviso, the following proviso shall be substituted, namely:-
"Provided that the Appellate Tribunal may admit an enhancement petition or a petition for restoration of the assessment or penalty or both, fully or partially, as the case may be, presented after the expiration of the said period, if it is satisfied that the assessing authority or his representative had sufficient cause for not filing such petition within the said period.";
(d) in sub-section (6), in clause (b), the words "not exceeding one hundred rupees" shall be omitted;
(e) in sub-section (8), for the words "Board of Revenue", the words "Commissioner of Commercial Taxes," shall be substituted.
19. Amendment of section 37, Tamil Nadu Act 1 of 1959.- In section 37 of the principal Act, sub-section (7), in clause (b), for the words "a fee of one hundred rupees the words" such fee as may be prescribed" shall be substituted.
20. Amendment of section 38, Tamil Nadu Act 1 of 1959.- In section 38 of the principal Act,-
(a) in sub-section (2), for the words "a fee of one hundred rupees" the words "such fee as may be prescribed" shall be substituted;
(b) in sub-section (8), in clause (b), for the words "a fee of one hundred rupees", the words "such fee as may be prescribed" shall be substituted.
21. Amendment of section 39-A, Tamil Nadu Act 1 of 1959.- In section 39-A of the principal Act.-
(a) in sub-section (2),-
(i) the words "or the assessee" shall be omitted;
(ii) the words "or the collection of further amount of tax due from the assessee" shall be omitted;
(b) after sub-section (2), the following sub-section shall be added, namely:-
"(3) Pending the exercise of the powers of review, the appropriate reviewing authority may, on application made by the assessee, stay the collection of further amount of tax the from the assessee, in pursuance of the order which is the subject matter of review before the disposal of the review application, if the assessee furnishes sufficient security to its satisfaction, in such form and in such manner as may be prescribed.".
22. Amendment of section 52, Tamil Nadu Act 1 of 1959.- In section 52 of the principal Act, in clause (a), for the words regularly "employed", the words "employed full time" shall be substituted.
23. Amendment of section 55, Tamil Nadu Act 1 of 1959.- In section 55 of the principal Act.-
(a) in sub-section (1), for the words "three years", the words "five years" shall be substituted;
(b) after sub-section (3), the following sub-section shall be inserted, namely:-
"(3-A) The powers under sub-section (1) may be exercised by the assessing authorities even though the original order of assessment, if any, passed in the mutter has been the subject matter of an appeal or revision.".
24. Amendment of section 51, Tamil Nadu Act 1 of 1959.- In section 57 of the principal Act, in sub-section (2), in clause (vii), in sub-clause (b), for the words ‘Board of Revenue’ the words "Commissioner of Commercial Taxes" shall be substituted.
25. Amendment of the First Schedule to Tamil Nadu Act 1 of 1959.- In the First Schedule to the principal Act,-
(a) in item 3, in the entries in column (2), after the words "motor vehicles and trailers" and before the words "and motor engines" the following brackets and words shall be inserted, namely:-
"whether or not such articles are used for other purposes;";
(b) in item 5, in the entries in column (2), after the words "Wireless reception", the following words shall be inserted, namely:-
"and transmission";
(c) in item 55, in the entries in column (2), the following words shall be added at the end, namely:-
"and tools and implements used therewith.";
(d) in item 101, in the entries in column (2), after the word "chinaware", the words "glazed earthenware" shall be inserted; and
(e) after item 101-A and the entries relating thereto, thy following item and entries shall be inserted, namely:-
| "101-B Water supply materials and fittings pother than those specified elsewhere in this schedule or in the Second Schedule) including pipes, hand pumps and other articles used for the supply or distribution of water, | At the point of first sale in the State. | 8" |