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GO'/ERt'JMENT GAZETTE EXTRAORDINARY \~'
PUBLISHED BY AUTHORITY'
Gangtok, Friday August 14, 1987. No. 98 -_._- ~-~.-------
GOVERNMENT OF SIKKIM
LAW DEPARTMENT
GANGTOK
NOTIFICATION
No.9/LD/1987. Dated the 13th August, 1987. The following Act of the Sikkim Legislative Assembly having received the assent of the Governor on the 13th day of August, 1987 is hereby published for general-iriformation r->
THE SIKKTM (COLLECTION OF TAXES AND PREVENTION OF EVASION OF
PAYMENT OF TAXES) ACT, 1987.
(ACT ,NO'7 OF 1987)
AN
ACT
to provide for collection of taxes and prevention of evasion 01' payment of taxes. WHEREAS the machineries for collection of taxes leviable under the Taxation Laws in force in the State ofSikkim and prevention of evasion of taxes thereof are not adequate;
AND WHEREAS it is necessary to empower the Government with adequate powers to-enforce the tax laws in force in the State;
AND WHEREAS it is necessary to provide for measures for effective collection of taxes due under several Taxatlo n Laws in fo rce j 11 the Srate , AND WHEHEAS it is als» nccessal")' to provide for measures f01" p reverrtio n of evasion of clue tax under the Taxation Laws in force in the State; Reit enacted hy the Legislative Assembly of Sikklm in the Thirty-eighth Year of the Republic of India as folio ws ;-
I. (r)
This Act may be called the Slkkirn (Collection of Taxes and Prevention of Short title, extent Evasion o t' l\;yment of Taxes) Act, J 9 ~7, and commence-
ment.
(2) It shall extend to the whole of Sikkim.
(3) It shall come into force at once,
2. It shall apply to all persons, firms, companies and association of persons in the Applicability. State 0 f Sikkim.
\
1
Definitions.
3·
2
In this Act, unless the context otherwise requires,- "
(a) 'Iuspector ' means any officer of the Governn.ent appointed as Inspectc>"
by notification under section 4 of this Act;
(b) 'notification' means a notification published in the Official Gazette;
(c) 'person' includes company, firm and association of persons whether i'egis- tercd or not;
(d) 'tax' means a tax payable under Taxation Laws in force in the State ofSikkim;
(e) 'Tax due' means tax assessed as per the procedure laid dow n under the concerned law;
(f) 'Taxation Laws' means all laws dealing with levy of tax in force in the State of Sikkim.
of 4. The Government shall appoint one or more Inspectors for the pUTfoses of this Act for such areas as may be specified in. the notification. Appointment
Inspector.
Collection of tax. .1, Every tax due to tbe Government of Sikkim shall be collected by the Inspector by distraint and sale of moveable and immoveable properties.
Demand.
6.
Attachment.
7· Sale of properly. 8. Search and sei. ') . zure,
The Inspector shall serve a demand directing the payment of tax due on the person who is liable to pay, within seven days.
Such demand may be served by personal service or by affixing a copy thereof on the front main door 0 f the house of that person or through registered post, as may be necessary.
The Inspector shall attach the moveable and immoveable properties upon failure to pay the tax demanded within the stipulated time.
(2) The procedure for attachment of moveable and immoveable properties shall be the same as mentioned in Order XXI of the Code of Civil Procedure J 908 for execution 0 f decrees. '
(r)
The Inspector shall, after due publication, sell the properties attached under Section 7 by public auction.
The sale by public auction shall be held as laid down in Order XXI of the Code of Civil Procedure, 1908 for execution of decress. The Inspector shall appropriate the amount of tax due to the Government from out of the sale proceeds and refund the excess amount, if any, to the person whose property has been auctioned after defrayng the expendi- ture incurred on public auction.
The Inspector Dr any person authorised in this behalf, by notification, by the Government, may enter upon the premises of any person for inspection of books of accounts and for any other relevant records connected with the business, trade, occupation or profession and seize such books or records. The books of accounts or records so seized shall be returned within three months from the date of seizure:
. Provided that the books of accounts or records so seized may be kept for another three months by a specific order in writing of the Government of Sikldm.
Offences and Pe- 10. Any person who -
nalties,
(a) commits default in payment of tax as determined;
(b) fails or refuses to submit any return of his annual gross income;
(c) obstructs the lnspector 01' other officials authorised by the Government in the discharge of his or their duties under this Act and other taxation laws in force in the State of Sikkim;
(d) is guilty of contravention 0 r or non compliance with any of the requirements of taxation laws in force in this State or orders, notifications or direction made thereunder for which no special penalty is provided j
(e) wilfully furnishes incorrect or false return of his annual income, shall be punishable with fine which may extend to five thousand rupees or impri- sonment for a period of three years, or with both.
2
3
I r. All offences under this Act are cognhaLle and non-bailable and triable by a Magis-
". trate of the First Class only. Offences ' to' be
cognizable.
12. No prosecution under this Act shall 1e instituted l'Xlcpt with the previous sanction Prosecutions. of the 'Government or such other officer as may be authorised by the Government in this behalf. J,
J 3, No su it, pl'osecution o r 0 ther legal proceeding sha 11 lie against any person for anything which is in good faith done or intended to be done under this Act or any order made thereunder.
Protection 0/ ac-
tion taken in good
faith.
By Order of the Governor,
B. R. PRADHAN,
Secretary to the Govt. of Sikkim, Law Department.
(File No. 16 (227)jLDj1987. )
PRINTED AT THE SIKKIM GOVERNMENT PRESS, GANGTOK.