Tamil nadu act 006 of 1939 : Tamil Nadu Sales of Motor Spirit Taxation Act, 1939

Section 1. Short title, extent and commencement

1. Short title, extent and commencement.- (1) This Act may be called the ¹[Tami] Nadu] Sales of Motor Spirit Taxation Act, 1939.

(2) It extends to the whole of the ¹[State of Tamil Nadu].

(3) This section shall come into force at once, and the rest of this Act shall come into force on such date² as the ³(State) Government may, by notification in the Official Gazette, appoint.

Section 2. Definitions

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

⁴[(a) ‘Commercial Tax Officer’ means any person appointed to be a Commercial Tax Officer under section 2-A;

(a-1) ‘Deputy Commissioner’ means any person appointed to be a Deputy Commissioner of Commercial Taxes under section 2-A;].

⁴[(a-2)] ‘Government treasury’ means a treasury or sub-treasury of the ³(State) Government and includes any office, branch or agency of the Reserve Bank of India, transacting treasury business for the ³(State) Government;

(b) "importer" means any person, who imports motor spirit into ⁵[the ¹(State of Tamil Nadu) from-

(i) outside the territory of India; or

(ii) any part of the territory of India other than the ¹(State of Tamil Nadu)];

(c) "motor spirit" means any substance which by itself or in admixture with other substances is ordinarily used directly or indirectly to provide reasonably efficient fuel for automotive or stationary internal combustion engines, and includes petrol, diesel oil ²[aviation fuel] and other internal combustion oils, but does not include kerosene, furnace oil, coal or charcoal;

(d) "petrol" means dangerous petroleum as defined in the Petroleum Act, 1934 (Central Act XXX of 1934);

(e) "prescribed" means prescribed by rules made under this Act;

(f) "retail dealer" means any person who sells or keeps for sale motor spirit for the purpose of consumption by the person by whom or on whose behalf it is or may be purchased;

(g) "retail sale" means a sale of motor spirit by a retail, dealer for the purpose of consumption by the person by whom or on whose behalf it is or may be purchased, and the expression "sell in retail" shall be construed accordingly:³[]

(h) "wholesale dealer" means any person who sells motor spirit, or keeps motor spirit for sale, to dealers in such spirit, for the purpose of trade; ¹[and]

²[(i) "Year" means the financial year.]

Explanation.-A sale of motor spirit by a co-operative society, or a club, a firm or any association to one of its members for consumption is a retail sale within the meaning of clause (g).

Section 2-A. Appointment of Deputy Commissioners of Commercial Taxes and Commercial Tax Officers

³[2-A. Appointment of Deputy Commissioners of Commercial Taxes and Commercial Tax Officers.- The State Government may appoint as many Deputy Commissioners of Commercial Taxes and as many Commercial Tax Officers as they think fit for the purpose of performing the functions respectively conferred on them by or under this Act. Such officers shall perform the said functions within such local limits us the State Government or any authority of officer empowered by them in this behalf may assign to them.]

Section 3. Payment of tax

⁴[3. Payment of tax.- (1) Subject to the provisions of this Act every importer and every wholesale dealer shall pay on all sales of motor spirit effected by him ¹[], a tax^* at the following rates, namely:-

²[³[in the case of petrol or aviation fuel,-at the rate of ¹[twenty-one paise per litre].

in the case of diesel oil,-at the rate of ²(fifteen paise per litre)], and

in the case of any motor spirit other than petrol, aviation fuel or diesel oil,-at the rate of four paise per litre.].

(2) No tax shall be levied under this Act on the sale of any motor spirit in respect of which such tax has already been paid.

³[(3) [* * *].

Section 4. Registration of importers and dealers

4. Registration of importers and dealers.- (1) No person shall after the commencement of this Act, carry on business in motor spirit as an importer or as a wholesale or retail dealer at any place in the ⁴(State) unless he has been registered as such under this Act.

⁵[].

Explanation.-Where a person has more than one place of business, whether in the same town or village or in different towns and villages, he shall get himself registered separately in respect of each such place of business.

¹[(1-A)(a) Registration under sub-section (1) shall be made subject to such conditions as may be prescribed.

(b) Any such registration shall be valid for a year and may be renewed from year to year. Such renewal shall be subject to such conditions as may be prescribed.]

(2)(a) No importer or wholesale dealer shall, unless also registered as a retail dealer under this Act, sell motor spirit for consumption or sale in the ²(State) to any person other than an importer or a wholesale dealer or a retail dealer, registered as such under this Act.

(b) No retail dealer shall use or transfer for consumption any motor spirit stocked by him without its being included in his accounts ³[* * *].

⁴[(3) Application for registration as an importer, or a wholesale dealer, or a retail dealer under this Act or for renewal of such registration shall be made in such form, to such authority and shall be accompanied by such fee, as may be prescribed.]

⁵[* * *]

(5) Not person including a company or from registered as ¹[an importer or a wholesale dealer], shall carry on the business of public transport requiring the use of motor spirit.

(6) Any registration, under sub-section (1) may be suspended or cancelled by such authority, for such reasons, and in such manner, as may be prescribed.

Section 5. Obligation of retail dealers to keep books of account

²[5. Obligation of retail dealers to keep books of account.- Every retail dealer in motor spirit shall in respect of each place where he carries on business keep books of account in the prescribed form.]

Section 6. Payment of tax along with return

³[6. Payment of tax along with return.- Along with the return referred to in section 8 the importer or wholesale dealer shall pay in such manner as may be prescribed the amount of the tax due in respect of the motor spirit sold by him, ⁴() during the preceding month, according to the return.]

Section 7. Determination of tax by District Collector in certain cases and recovery thereof

7. Determination of tax by District Collector in certain cases and recovery thereof.- (1) If no return is submitted by ⁵[an importer or a wholesale dealer under clause (b) of section 8] in respect of any month before the date prescribed in that behalf, or if the return is submitted ⁶[without paying the full amount of the tax due in the manner prescribed] as required by section 6, or if the return submitted appears to the ¹(Commercial Tax Officer) to be incorrect or incomplete, the ¹(Commercial Tax Officer) shall, after making such inquiry as he considers necessary, ²[determine to the best of his judgment the amount of the tax due] from such ³[importer or wholesale dealer] in respect of such month and the amount so determined less the sum if any, already paid by him shall be paid by the ³[importer or wholesale dealer] into a Government treasury within fourteen days after demand is made therefor:

Provided that before taking action under this sub-section, the ³[importer or wholesale dealer] shall be given a reasonable opportunity of proving the correctness and completeness of his return.

(2) In default of payment within the period aforesaid, the amount of tax due shall be recovered from the person from whom the tax is due as if it were an arrear of land revenue.

Section 7-A. Sales escaping assessment

⁴[7-A. Sales escaping assessment.- (1)(a) Where, for any reason, any sale of motor spirit effected by an importer or wholesale dealer has escaped assessment to tax under section 3, the Commercial Tax Officer may, subject to the provisions of sub-section (2) and at any time within a period of eight years from the expiry of the period to which the tax relates, assess to the best of his judgment the amount of the tax due on such sales under section 3, after making such enquiry as he may consider necessary and after giving the importer or wholesale dealer, as the case may be, a reasonable opportunity to show cause against such assessment and the amount so assessed shall be paid by the importer or wholesale dealer into a Government treasury within fourteen days after demand is made therefor.

(b) Where, for any reason, any sale of motor spirit effected by an importer or wholesale dealer has been assessed at a rate lower than the rate at which it is assessable under section 3, the Commercial Tax Officer, may, subject to the provisions of sub-section (2), and at any time within a period of eight years from the expiry of the period to which the tax relates, re-assess the amount of the tax due on such sales under section 3, after making such enquiry as he may consider necessary and after giving the importer or wholesale dealer, as the case may be, a reasonable opportunity to show cause against such re-assessment, and the amount so re-assessed less the sum, if any, already paid by him shall be paid by the importer or wholesale dealer into a Government treasury within fourteen days after demand is made therefor.

(2) lit making an assessment or reassessment under sub-section (1), the Commercial Tax Officer may, if he is satisfied that due to wilful misstatement or suppression of facts by the importer or wholesale dealer, as the case may be, the tax has not been levied or has been levied at a rate lower than the rate at which it is leviable, direct the importer or wholesale dealer, as the case may be, to pay in addition to the amount of the tax assessed or re-assessed under sub-section (1), a penalty not exceeding-one and a half times the amount of the tax so assessed or re-assessed and the penalty so imposed shall be paid by the importer or wholesale dealer into a Government treasury within fourteen days after demand is made therefor:

Provided that no penalty under this sub-section shall be imposed unless the importer or wholesale dealer affected has had a reasonable opportunity of showing cause against such imposition.

(3) In default of payment within the period specified in sub-section (1) or sub-section (2), the amount of tax or penalty due shall be recovered from the person from whom the tax or penalty is due as if it were an arrear of land revenue.

(4) The powers under sub-section (1) may be exercised by the Commercial Tax Officer even though the original order of assessment, if any, passed in the matter has been the subject matter of an appeal or revision.

(5) In computing the period of limitation for assessment or reassessment under this section, the time during which the proceedings for assessment or reassessment remained stayed under the orders of a Civil Court or other competent authority shall be excluded.]

Section 7-B. Rounding off of tax, penalty, etc.

¹[7-B. Rounding off of tax, penalty, etc.- The amount of tax, fee, penalty, fine or any other sum payable, and the amount of refund due, under the provisions of this Act shall be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise, then, if such part is fifty paise or more, it shall be increased to one rupee and if such part is less than fifty paise, it shall be ignored.]

Section 8. Obligation of importers and wholesale dealers to keep books of account and submit returns

8. Obligation of importers and wholesale dealers to keep books of account and submit returns.- Every importer or wholesale dealer shall-

(a) keep books of accounts in the prescribed form; and

²[(b) submit to the Commercial Tax Officer and to such other officers as may be prescribed, a return in such form, containing such particulars and at such intervals as may be prescribed.]

Section 9. Powers of entry and inspection

9. Powers of entry and inspection.- (1) All accounts and vouchers relating to stocks, purchases, sales and deliveries of motor spirit kept by importers, wholesale dealers and retail dealers and the stocks of motor spirit with them shall be open to inspection by such officers as the ¹(State) Government may authorize in that behalf.

(2) Any such officer shall have power to enter and search any building, vessel, vehicle or place where any importer, wholesale dealer or retail dealer carries on business or keeps any stock of motor spirit.

Section 10. Penalties

10. Penalties.- Any person who-

(a) carries on business in motor spirit as an importer, a wholesale dealer or a retail dealer at any place without getting himself registered as required by subjection (1) of section 4 or when his registration in respect of such place is not in force, or

²(b) fails to keep books of account as required by section 5 or clause (a) of section 8, or]

(c) fails to submit any return as required by clause (b) of ³[] section 8 on or before the prescribed date, or submits an incorrect or incomplete return, or ⁴[fails to pay the full amount of the tax due in the manner prescribed] a; required by section 6, or

¹[(d) fails to pay within the time allowed any tax demanded from him under ²[sub-section (1) of section 7 or sub-section (1) of section 7-A], or]

(e) fraudulently evades the payment of any tax due under this Act, or

(f) acts in contravention of any of the provisions of this Act,

shall on conviction by a Presidency Magistrate^* or a Magistrate of the first class^*, be liable to a fine which may extend to one thousand rupees ³[and in the case of a conviction under clause (d) or (e), the Magistrate shall specify in the judgment the amount of the tax which the person convicted has failed or evaded to pay and the amount so specified shall be recoverable as if it were a fine].

Section 11. Motor spirit liable to confiscation in certain cases

11. Motor spirit liable to confiscation in certain cases.- The motor spirit in respect of which an offence against this Act is committed and any receptacle in which such spirit is contained shall be liable to confiscation.

Section 12. Confiscation how ordered

12. Confiscation how ordered.- (1) When in any case tried by a Magistrate, the Magistrate decides that anything is liable to confiscation under section 11, he may, after hearing the person, if any, claiming any right thereto and the evidence, if any, which he produces in support of his claim, order confiscation or may give the owner an option to pay such fine as the Magistrate deems fit in lieu of confiscation.

(2) When an offence against this Act has been committed but the offender is not known, or cannot be found, or when anything liable ta confiscation under this Act and not in the possession of any person cannot be satisfactorily accounted for, the case shall be inquired into and determined by the prescribed officer who may order such confiscation:

Provided that no such order shall be made until the expiration of one month from the date of seizure of the things intended to be confiscated or without hearing the persons, if any, claiming any right thereto, and the evidence, if any, which they produce in support of their claims.

Section 13. Issue of warrants for arrest

13. Issue of warrants for arrest.- (1) Any officer of the ¹(State) Government specially empowered by them in this behalf may issue a warrant for the arrest of any person whom he has reason to believe to have committed an offence against this Act.

(2) All warrants issued under this section shall be executed in accordance with the provisions of the Code of Criminal Procedure, 1898^* (Central Act V of 1998), by a police officer, or if the officer issuing the warrant deems fit, by any other person.

Section 14. Power of entry and search without warrant

14. Power of entry and search without warrant.- Any officer of the ¹(State) Government specially empowered by them in this behalf may-

(a) enter and search any building, vessel, vehicle or place in which he has reason to believe that any motor spirit liable to confiscation under this Act is kept or concealed;

(b) seize any motor spirit and any receptacle which he has reason to believe to be liable to confiscation under this Act; and

(c) detain, search and arrest any person whom he has reason to believe to be guilty of any offence against this Act.

Section 15. Procedure for arrest without warrant

15. Procedure for arrest without warrant.- The provisions of section 61 of the Code of Criminal Procedure, 1898^*, (Central Act V of 1898) shall apply to all arrests without warrant made under section 14.

Section 16. Offences to be reported, etc.

16. Offences to be reported, etc.- Every officer employed by the ¹(State) Government or by any local body shall be bound to give immediate information at the nearest police station or, if so required by any general or special order issued by the ¹(State) Government, to the nearest Excise Officer of rank not below that of Sub-Inspector, of all breaches of any of the provisions of this Act which may come to his knowledge, and all such officers shall be bound to take all reasonable measures in their power to prevent the commission of any such breaches which they may know or have reason to believe are about or likely to be committed.

Section 17. Power of investigation

17. Power of investigation.- (1) Every officer of the ²(Commercial Taxes), Excise, Police or Land Revenue Departments not below such rank as may be prescribed, shall, within the area for which he is appointed, have power to investigate all ³[offences against this Act or the rules made thereunder].

(2) Every such officer shall in the conduct of such investigation exercise the powers conferred by the Code of Criminal Procedure, 1898^*, (Central Act V of 1898) upon an officer in charge of a police station for the investigation of a cognizable offence:

Provided that if such officer is of opinion that there is not sufficient evidence or reasonable ground of suspicion to justify the forwarding of an accused to a Magistrate, or that the person arrested may be discharged with a warning, such officer shall release him on his executing a bond, with or without sureties, to appear if and when so required before a Magistrate and shall make a full report of the case to the ¹(Commercial Tax Officer).

Section 18. Offences to be bailable

18. Offences to be bailable.- (1) All offences against this Act shall be bailable.

(2) Any officer empowered under section 17 shall have power to grant bail in accordance with the provisions of the Code of Criminal Procedure, 1898^*, (Central Act V of 1898) to any person arrested without warrant for an offence against this Act.

Section 19. Procedure on seizure

19. Procedure on seizure.- When anything has been seized by an officer exercising powers under section 17, such officer, after such inquiry as he considers necessary-

(a) if it appears that such thing is required is evidence in the case of any person arrested, shall forward the thing to the Magistrate to whom such person is forwarded or for his appearance before, whom bail has been taken;

(b) if it appears that such thing is liable to confiscation but is not required as evidence as aforesaid, shall send the thing with a report of the particulars of the seizure to the prescribed authority;ana

(c) if no offence appears to have been committed, shall return the thing to the person from whose possession it was taken and shall report to the prescribed authority accordingly.

Section 20. Power to compound offences

20. Power to compound offences.- (1) The prescribed authority may accept from any person who has committed or is reasonably suspected of having committed an ¹[offence against this Act or the rules made thereunder], by way of composition of such offence-

(a) where the offence consists of a sale of motor spirit in contravention of this Act or of the evasion of any tax payable under this Act, in addition to the tax payable by him under section 3, a sum of money not exceeding five hundred rupees or double the amount of the tax payable, whichever is greater; and

(b) in other cases, a sum of money not exceeding five hundred rupees.

(2) On the payment of such sum of money and the tax, if any, payable under section 3, to the prescribed authority, the accused person shall be discharged, the property seized, if any, shall be released and no further proceedings shall be taken against such person or property in respect of such offence.

Section 21. Cognizance offences

21. Cognizance offences.- (1) No Magistrate shall take cognizance of any offence against this Act-

(i) except upon the complaint or report of the ¹(Commercial Tax Officer) or other prescribed authority or

(ii) except upon his own knowledge or suspicion.

(2) Except with the sanction of the ²(State) Government, no Magistrate shall take cognizance of any offence against this Act, unless the prosecution is instituted within six months from the date on which the offence is alleged to have been committed:

Provided that nothing contained in this sub-section shall apply to any case governed by section 23.

Section 22. Bar of certain proceedings

22. Bar of certain proceedings.- (1) No suit, prosecution or other proceeding shall lie against any officer or servant of the ²(State) Government, for any act done or purporting to be done under this Act, without the previous sanction of the ²(State) Government.

(2) No officer or servant of the ²(State) Government shall be liable in respect of any such act in any civil or criminal proceeding, if the act was done in good faith in the course of the execution of duties or the discharge of functions imposed by or under this Act.

Section 23. Limitation for certain suits and prosecution

23. Limitation for certain suits and prosecution.- No suit shall be instituted against the ³(Government) and no suit, prosecution or other proceeding shall be instituted against any officer or servant of the ²(State) Government in respect of any act done or purporting to be done under this Act, unless the suit, prosecution or other proceeding is instituted within six months from the date of the act complained of.

Section 24. Appeal

24. Appeal.- (1) Any person aggrieved by any order passed under this Act, not being an order passed by any Court or Magistrate, may appeal-

(a) in case such order is passed by a ¹(Commercial Tax Officer), to ²(the Deputy Commissioner), and

(b) in any other case, to the ¹(Commercial Tax Officer).

(2) The appellate authority may after giving the appellant an opportunity of being heard, pass such orders on the appeal as such authority thinks fit.

(3) Every order passed in appeal under this section shall, subject to the powers of revision conferred by section 25, be final.

Section 25. Revision

25. Revision.- The Board of Revenue may at any time, call for and examine the record of any order passed by, or any proceedings recorded by, any officer or person under this Act, for the purpose of satisfying itself as to the legality or propriety of such order, or as to the regularity of such proceedings, and may pass such order in reference thereto as it thinks fit.

Nothing contained in this section shall apply to the orders or proceedings of any Court or Magistrate.

Section 26. Power to make rules

26. Power to make rules.- (1) The ¹(State) Government may make rules to carry out the purposes of this Act.

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

(a) all matters expressly required or allowed by this Act to be prescribed;

(b) the regulation of the sale of motor spirit for the purpose of enforcing the provisions of this Act;

(c) the duties and powers of inspecting and other officers appointed or authorized to exercise any powers under this Act, and the procedure to be followed by such officers;

(d) the form in which, and the time within Which, appeals under section 24 may be preferred; and

(e) any other matter for which there is no provision or no sufficient provision in this Act and for which provision is in the opinion of the ¹(State) Government, necessary for giving effect to the purposes of this Act.

(3) In making a rule under sub-section (1) or sub-section (2), the ¹(State) Government may provide that a breach thereof shall be punishable with fine which may extend to one thousand rupees and, where the breach is a continuing one, with further fine which may extend to fifty rupees for every day after the first during which the breach continues.

²[(4) [* * *].]

Section 27. [Omitted]

27. [Omitted]- ¹[* * *]

Section 28. [Omitted]

28. [Omitted]- ²[* * *]

Section 29. Rules [] to be placed before the Legislature

³[29. Rules ⁴[] to be placed before the Legislature.- (1) All rules made under this Act ⁵[] shall be published in the Official Gazette and, unless they are expressed to come into force on a particular day, shall come into force on the day on which they are so published.

(2) Every rule made under this Act ⁶[] shall, as soon as possible, after it is made, be placed on the table of both Houses of the Legislature, and if, before the expiry of the session in which it is so placed or the next session, both Houses agree in making any modification in any such rule ⁶() or both Houses agree that the rule ⁶() should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule ⁶()].