A No. E, 14(15)/LA-2001-02/1327.— The following Act of Legislative Assembly of the National Capital 'Territory of Delhi received the assent of uke Lieutenant 'Governor, Dethi on 23-7-2002 and is hereby published for generat infacmation :—
'The Delhi Sales Tax ot Right to Use Goods Aci, 2002 (Dellti Act No, 13 oF 2902).
(As passed by the. Legistative-Assembly of the, National Capital Territory of Delhi on the 15th April, 2002). an:
Act Fc
TOLEVY AND COLLECT TAX ON THE TRANSFER,
OF THE RIGHT TO USE ANY. GOODS FOR ANY
PURPOSE (WHETHER OR NOT FOR A SPECIFIED
PERIOD) FOR CASH, DEFERRED: PAYMENT OF
OTHER VALUABLE CONSIDERATION IN THE
NATIONAL CAPITAL TERRITORY OF DELHI
BEITENACTED BY THE LEGISLATIVE ASSEMBLY
OF THE NATIONAL CAPITAL TERIUTORY OF DELHI
IN THE FIFTY-THIRD YEAR OF THE REPUBLIC OF INDIA AS FOLLOW!
CHAPTER L
PRELIMINARY
@)1t extends to the whole of the National Capital Territory of Delhi.
G)lt shall come into force on such date as the Government may, by notiieation in the Official Gazette, appoint, :
2 Dofinitions.—
G) "appointed day" mncais the date on which this Act comes into forée;
{>) "Commissioner" means the Coninussioncr of Sales Tax appointed under sub-section (1) of seclion 9 of the Dellii Safes Tax Act, 1975 (43 of, 1975), a
(©) "denler" means any person who whether for commission, emuneratin of otherwise transfers the right to tse any goods for any- purpose (whether or not for a specified period) for cash, deferred paymentor other valuable consideration, and includes the Government or the Central- Government which so transfers the right 1o use such goods, any sociéty, club or association 'of 'persons which so transfers the right to vse: such goods to its members, a manager, factor, broker, corumission agent, deleredece agent orany other whether of the same description as hereinbefore mentioned or not, who so transfers the righl te
2 DELHI GAZETTE : EXTRAORDINARY
1, Short title, extent and commencemies 5 Act may be calted te
mercantile agent, by whatever name called, and, tase any goods belonging toany principatw ot or not
@
'peti Sales Tax Act" means the Delhi Sale Act, 197543 of 1975);
"goods" includes alt materials, artic commodities and aff other kinds of m property, but' does not include newspap Detionable claims, stocks, shares, securities money; i
o
() "Government" means the Lieutenant Gover of the Natiorial Capital Territory of Delhi cafe tain Article 239AA of the Constitution:
(©) "Lieutenant Governor" means the Lieutes Governor of the National Cagital Territory off 'appointed by the President under Article 2394 of the Constitution; F
() "person" includes any company or an associa of persons or body of jduats, whe! incorporated or not, and also a Hinds undiv family, 2 firm, a local authority, 2 corporale 'oc an authority owned orset up by, of sul administrative control of, the Government of) or the Government ofany Stat or Union Tei and a cooperative society; whether register nol;
@ "prescribed means prescribed by thie mules oa under this Act, q
@) "possession". includes legal or phy:
possession, whether as owner or transfer sigenton bolialf ofa transferar o principal, a5 case may be. whether disclosed or nat,
"rogistered dealer" means a dealer regis:
under section 7 of this Act;
"pute means a mule made under this Act; 'oO
(™
(n) "sale? with jus grammatical variation and opm espressions means any' (ransfer of the rigic§ use any goods for any prupose (whether oF fora specified period) f r cash, deferred pay
" orany other valuable consideration, and thew
"sell" shall be construed accordingly,
(0) "sate price" means.the amount of valust consideration received or receivable for transfer of the right to use any pods fe purpase (whether or not for a specified peris {p) "tax"? means the (ax payable under this Act, @ "transferee™ means the person (o whom tight to use goods is (ransferred; 4 (@) "transferor tneans the pérson who' trans * right 10 use goods;
{s) "turnover of safes" means the aggregate of $ amounts of fale price received or recxivable dt
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year aya dealer.in respect of the transfer of the Ee, tight to use ang goods:
cy oy 'car means the financial year.
(2) Alb words and expressions used, bul not defined 4 ris 'Act bul defined: an the Delhi Sales Tax Act shall liave same meanings as assigned to them in that Act. _ CHAPTER TT
INCIDENCE AND LEVY-OF TAX
lence of tax.— Subject to the provisions
ined in this Act nnd the'rutes made thereunder, 2 tax be loviableon the wmover of sales in respect of:
(@) the transfer of the right to use any goods agrecd to before the appointed day but the right to-use the goods is exercised on or after the appointed day? ee
(@) the transfor of the right to use any goods agreed, {0 prior 10 the appointed day;'and wherein the tight to use has been continued after the
+ appointed day. to the exieni of the safe price received or receivable in respect of such use on or aler the appointed day;.and
(6) thetranser of te righ 1 vse Any goods agreed toon or after the appointed day. :
4. Levy of tax. — There shall be levied a taxon ihe over of sales under this Act at the rate of four paise in ae : = Provided that np such (ax shall be'levied if
the uraover of salesiof d dealer is Tess than four lakh rupees during Ute year *
Provitted furtlicr that no taxshall be levied under this Act on.tlic turnover of sales made in the course of export of the goods out of the
tefritory of Indin or in the cdurse of import of he goods into the territory of India or in the course of interstai¢ trade or Commerce or outside the State/Unian territory :
Pravidied also that : where in respect ofany, goods or class of goods the Covernmiem is of the 'opinon that it is expedient in the public interest 50 10 do, it may. by notification in the official gizolte. direct thal the tnx in respect oF such goods or class of goods shall. subject to such conditions as nay be specificd;.be.lovied it such modified rato not exccedinig the rate applicable under this section, as maybe specified in the notification = Provided also Ghat where fn respect of any'
yoods'or class of goods the Government ieof the 'opinon thal it is expedient in tlic publi¢ Interest so to do. it nay, by- notification. in the official gavotte, direct that nb tax shill be payable undor this Act in respect-of 'such goods or class 'of * yoods, subject'to such restrictions and conditions CP Dilee-3
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4s may be specified in the notifiction.
5. Liability of dealer—-(1) Every dealer whose tumover of sales made durin,
(a) the year ending on the 31st day of March, 2002 ©) the yearcomencing on the Ist day of April, 2002 shas exceeded or exceeds the limit of four lakh upecs shall, until such liability ceases under sub~ section (3), be liable to pay tax under this Aci on the turnover of sales ntade by him on or afer the appointed day:
Provided that a dealer tc 'hom clause (0) above, applies and whose tumiaver of sales, vexceeds the limit of four Jakh rupees after the appainted day shall riot be liable to pay tax in stespect of sales which take place upto the time when histumover of sales as computed from the 1s\day of April, 2004 first exceeds such mit. Q)Every dealer whose tumover of sales during any year commencing on che 1st day of April, being a year subsequent 16 the years mentioned in sub-section (1) first excetds the fimiLoffour lakh rupees shall, und such liability tases under sub-section (3}, be liable to pay (ax under this Act with effect fram the said dat :
Provided that adediler shall nacbe linble to pay any' tax in respect of such of te turnover of salesas takes place during te period commencing, 'on the Ist day of April of the said year upto the time when lis tu mover of sales as computed from the Ist day of Apri of the said year first exceeds > thofimicot four lakh rapecs.
G) Every dealer who becomes liable to pay tax under this Act and every dealer wlio has been registered under section 7 shall continue to be so linble ungil the expiry of three consecutive years during cach of which his lurnover has failed (9 excecd the limit of four lakh rupees and such further periad as may be prescribed os tntil lis registration ccriificate is duly caricelled, as the case may be, and upon ry of such period or upon such cancellation of his certificatcof registration, as the casc may be his liability 10 pay las om other than the lax already levied or leviable shall cease until his turnover of sates again exceeds the limit of fourlakh mpees: _ i
Provided that wherethe dealer bocomes linble (o pay tox again in the same year in which he
"cased to be Jinbleas aforesaid, then in respect of los which lake place during the peried commencing on the date of cessation of Hiability (otaxand ending on the day on which histumover of sales first exceeds such limit, no tax shall be payable,
6 Tacpayable by dealer —Subject to the provisions of this Act and the rules made thereunder, these shalt be paid by every dealer wito is liable to pay lax under this Act, the tax Ieviable in accordance with section 4 on the tmmover
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va in respect of the uansfer of the right lo-use any effected by him ™
: CHAPTER IL
"REGISTRATION, RETURNS, PAYMENT OF TAX
AND ACCOUNTS
7. Ceatificate of registration —No dealee who has bacome tiable to pay tas under this Actshall sell ny goods unless, he possesses a valid cenlificate of registtation as provided under this Act.
Q) Every dealer required to be registered under sub- section (1) shall apply to the Commissioner forthe grant of registration within such time, in such manner and in such form, as ay be prescribed,
G)IE the Commissioner, after such inquiry as he accans fit, is satisfied that dhe application forregistration is in order, he sliall register the appleiant and grant him a cenificate of registration within such time, in such manner and form. as nay' be prescribed :
Provided! that ifthe Commissioner is of the
opinion that the application is not in orderor the particulars furaished theréin have not been giver, correctly. he may, for reasons to be recorded. in writing, by.an order passed within the prescribed period, reject tie application,
@)The Conunissioner may, afer considering the information furnished or otherwise called for or received ander any of the provisions of this Act, amend from time to (ime the certificate of registration in the manner and within such time as niay be prescribed.
(5) [any person upon an application made by himin this behalf has been registered as a dealec under this section, and theraker iL is found that he ought not te have been so registered under the provisions of this section, he shall be liable to pay taxon his tumover of siles made from the date on which his registcation certificate took'effcet until itis cancelled notwithstanding that he may not be liable to puy tis uneerscetion 5,
(6) Where a registered dealer discontinués sales, or. Ihe turnover ofsales ofa registered dealer during any year does noi exceed the limit of four lakh mpecs and the dealer applies for cancellation of his registration certificate inthe ~ prescribed miner, the Commissioner shall cancel (he registration cestificate witlte(leci froin st ch date2s he may Fixin accordance with the niles
(DP Where the Commissioner is satisfied that any. segistcred dealer has discontinued sale and has failed 10 apply undes sub-section (6) for.the-eancellation of his regisirnuon cestihieae, the Commissioner may, after giving Ue desler a reasonable opportunity of being heard, cancel the registration with effect from Such date as he may fixt0 ve wie dale from which the registered 'dealer has discontinued sale :
Provided that the cancellation of certificate of registration ont an application of the dealer or otlierwise DELHI GAZETTE "EXTRAORDINARY, :
shall not affectthe liability pfhideatecto py tact any interest OF penalty) duc from him for any pet the cancellation.
(8) The provisions of scctian 18 of the Delhe:
'Tax Act and the rules framed thereunder shall 2 muulatis mitandis for prescribing of sccurity 0:
be. the additional secueity for regi denler who may be required so lo do by the Comm by notice served in the prescribed manner, shall such returns of his nymnoves of Sales by such dates 2 accrued on delayed pa
formas may be prescribed.
(2) Every repistere calor and every deal fe Government Treasury or ii Relate Sank ot Toes such other manneras may be prescribed, the fll amo (ax dué from him under this Act according to such ré and shall where such payment is made ino a Govers the returns a receipt from such Treasury or bank show the payment of such amouzt, ;
(Q) The imerest, in addition to the 1ax due, st deemed to be in default in making Ue payment ot assessed or re-dssessed under this Act from tho-d siich default. Interest ai the sane rate shall alsa be p forthe period during'which the realisation of any 4 of tax remains stayed by the order ofany court ar at and such order is subsequently vacated :
deemed to be tax due under this Act.
9. Assessment—{l) Where al! the returns doe the year have. been furnished and tax due accordin; such returns paid within ihe prescribed period. Commissioner shail make 2 summary assessinent with year {cont theend of the finantial yesr 10 whiclr the rete pertain and in making such a summary assessment % Comntissioner shall have the authority to mai avithmetical adjustments ag well ns interest that might duc for belated payment of the tax.
(2) Notwithstanding anything contained in & section (1), whiéther or-nat.a reium bas been furnished the tax due. according to such return paid within the pet prescrived, the Commissioner, ifhe isnot satisfied with:
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BBS: (4) Ifa dealer fails to comply with the ténns of any Bi" (5) {C upon information which has come imo tis
JUGAWET
filed or eonsidersil necessary or expedient to ensure 'he dealer has not understated his turnover of sees, serve the detlera novice requiring him, ona date lose aied therein 1¢ aticnd his.office and ta produc: or Baise {0 bc produced there auy evidence on which she ger may rely in sppport of the returs.and to salisty the lissioner in segare thereto:
& Provided ¢hat nonolige underthis sub-section shall E served on the dealer after the expity of two years from nd of the financial year ta which the cetums pertain,
(3) On the date specified in che notice, ov a5 soon as 'be thereafer, ce Commissioner shall, afler considering wohe evidence which nay be produced, assess the amount 'due from the dealer.
Bice issued under sub-section (2), thc Commissioncr Bill assess {othe best of his judgment she amount of @uc fronp hin.
Session, the Commissioner is satisfied thal any eater hasbeen liable to pay tas wilder this Act in respect of Fperiod, has failad to get himself registered under section -Commaissionce shaS proceed in suck manner ns may' scribed to mssess (0 the best of his judement thie of tase due from the dealcr in Sespect af such: period ali subsequent periods and inmaking such assessment 'give the dealer a reasonable opportunity of being _ 'and the Comniissioner may, if he issatisfied thatthe ft wwas made without reasonable cause, direct thatthe shall pay by way of penalty. inaddition to the amount fide tas so assessed, u stam not evceeding twice that por,
E (6) Noaséessment u d21 thc provision of sub-section all be made after the expity of six: years from theend ie vear in respect of which or part of which ths tax is ssed. 7
. 10, Reassessment —(1) where aferadcaler lasbecn essed under section (9) fer any year or part thereof, the gnmissionct has reason to believe thar the whole or any bi of turnover of a deater in respcat of any period 'has Lerped assessment to tax or has been under nstessed or been assessed at a loner rate than therate at which it iscessable, the Commissioner may—
fg. (a) within sis years Seon thie date of final order of assessment, in a case whese,the dealer has concealed, omitted or failed to disclose fully tlic portigutars of suck tarnpyer; and
within foer yoars from. the date of finn order of aascSsment, in any o1hiercilse;
Servea notice on thedeaterand afer giving (te dealer an opportunity of being-heard and making such inquiry 4s he.considers necessary, peticeed to determine tothe bestof his judgment, tho amount oftaxduc froin the ester in r spect of such turnover, ard thépravision of this Act shall, s0 fae ns may be. apply accordingly:
LE: EXTRAORDINARY
(2) No order of assessment, reassessment or Tecdimputation shal be madeunder subsection (1Ylter—
(a) theexpiry oF six years of, asthe case maybe, four years from the dalé of final-order of astessncot a5 specified in sub-section (4); oF
@) theexpity of one year from the da
notice under sub-sectic O), whi
of service of
heveris later,
11. Accounts—Every desler liable ta pay asunder this Actsliat keep at his place ofbusiness, 2 rue account 'af parchsisc aud sales in the manner and foun #8 anny be prescribed. .
+ CyAPTERIV
'TAX DUDUCTION AT SOURCE, TAX CLEARANCE,
CERTIFICATE AND INFORMATION TO BE
< FURNISHED :
12, Deduction of fax at source, —(H)Nonwidismeding onything contained ih any aller provisions of this Act, every person, other (lian an individual and Binduundivided Jaunily, responsible fot making any paychert for dischaiwe of any' liability forthe fransterot h igh (ose ay goods shell, at the Gin of credit to he account or at (he dime of rmtent of sich amotint in cast," oF by cheque, oF by daisimcnt or in any oflter manner whatsoever, whichevey is canticr, deduey an rewount equal to two per cent from such suens,
Provided dat na deduction shall be ade whetetie consideration {97 rigli lo use goods does not exceed four Takh rupees ina year.
(2) Any tax deducted under sub-section (1) shall 'prid to the account of he Gaverumentin sack mannerand 'within such Lime as way be prescribed. z
(8) The person making the deduction of tax wader sub-section (1} and paying il ta the account of 1he Government shall issue a certifccate of tax deduction tose donler within a poriod of fificen days of such deduction in sach manner aed in such form as may be prescribed.
(4) Ady (ax deducted under sub-section (1) andpaid to the account of the Government stall, on production of the cectificate of deduction under sub-section (3) by the ransfcree be deemed to be the ta paid by The dealer for the relevant period and shall be given credit in his assessinest agcordingiy.
5) any person fails 10 make deduction ar after making'a deduction fails to depasit fo the account of the Government the atuqunl so deducted. the Commistioner may. aller giving to Sock pessan an opportanily of being beard. by order int writing. direct that such person shal) pay; by way of penaky. a sum not exceeding twice che 'amount deductible or deducted under this section besides the tax deriuciibte bin nd so deduced and, if deducted, not so deposited into.the Government Treasury, {6) Without grejudice tore provisions of sub-section (5), iEany. person fails to ntake deduction or after making
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sion. fails to deposit the amount So deducted, Jiable {0 pay Simple interest at the rate of two 7 per month on thc amount deductible under this 'on bul not so deducted and, if deducted, not so Fesited fiom the dale on which such amount was Faeductible 19 che date on which such amount is actually deposited i
(7) Where an amount has nol been deposited after deduction, such amount togedher with intefest and penalty shal] bencharge upon all the asscis of the person conse med and recoverable ag arrears of land revenue, *
13. Tax clearance certificate — (1) Notwithstanding paything contained in any other law for the ime being in force, no person where the consideration for right to use oodsesceeds our lakh rupees ina year, shall enterintoa (eanzaction with any other person for transfer of right 10 use goods afer the appointed day and if.entered cartier. shall not contimic sich transaction and shall not make parmicni to the dealer in sespect of transfer of right to use goods. nviess the Commissioner certifies in Lhe prescribed manner thal such dealer— : 2
(a) lhns no liability to pay' tas, interest, penaly or any Amount due or has not defaulted in furnishing. 'any rolurit or returns together with the r ceipied chatlan or chailans shawing payment of afl tax. pavable under this Act: -
(b) tas vot defyntied in making payment of tax otherwise payzible by or due from hin. under this Acts
(@) lias made satistaclory provision of securing tie paynient of tnx by {teaishing bank guarantee in favour of the Commissioner or othensvise. as the case may be: :
{@) has made no undertaking for getting himsel€ registered as dealer observing end complying with the provisions ofthis Act. ifthe dealer has sta ted the business of transfer of right.to.us¢ goods for the first Gime in Dells, . ee
(2) Shere on application made by a dealer in Ute prescribed form. ifthe Commissioner. aller making such inquiry as he deems fitand proper. is satisfied nnd issues a centifiente in the greseribed form to she effect (hal sitch dealer is nol liable to pay tax under section} or Hathehas, pid tnx payable by. or duc from binw uiadec that scetion. oF bas undertaken to register himself and to comply with the provisions of this Act and the rule framed thereunder. a sale agreentent may be-entered and payment ma; nolwitlistanding anything contained in such-scetion (1), be matic to such dealer for transfer of right to use goods "
referred to in section 1 on production by him of such' certificate of the Commissioner.
14. Information to he furnished for transfer of eight touse pnody by the teansferee—Any persanentering into, contract Tor transfer o right to use goods shall furnish, ithin fiftcen days from tke signing of the contrast. such 7 and fallureto do so shall catail a penalty not exceed Thundcod rupees per day af default after affording person 2 reasonable opportunity of being heard.
CHAPTERV
POWER OF ENTRY, INSPECTION, S)
SEIZURE, SEALING AND.ANTL-EVASION :
PROVISIONS
15, Power of entry, Inspectici, search and accounts and goods. (1) The Commissioner may, tosuch conditions 2s may be prescribed, require amy & os.any other person -— *
(a) to produce before him such books af:
Registers or documents,
©)
stock of goods, or puschases, sales or det ics of goods by the dealer, or any ather mation relating to his business, as mzel deemed necessary, for the purposes of:
Aci. #
(2) Where the Commissioner, upon informat his possession or athenvise, has reasonable groun believethal:— .
@) 3
was issucd to produce or caust to be pr any books of accounts or other di
be produced such books of accounts, or:
documents, as'required by such notice, (©) any person to whom a Aotice a5 aforesaid becnoc might be issued, will not, or would + 'produce Gr cause to be. produced any Daa 'oaccounts or other documents whick Wil der this Act, o¥
books of agcounts.-regisiers or dacume:
any dealer may be destrayed, dr mutilac tered, falsified or secreted or any purct sales by thint dealer have been oF may be:
pressed oF any goods have not been oF AoLbe accounted for in the books af accouy rogisters or other documents maintained the dealer, with a view to eyade or atte evade payment of tay duc under this Act, 'Commissioner shall have power—
©
@ — ( inspoet or survey the place business i denle¢ or any other person or any olherp whore: it is believed by hint that busines being donc or accounts are being kept by 3 dealer or person: j
Gi) Loinspect the goods in the possession of
. dealer or in the'passession of any other ~ somon behalf of such dealer, wherever 3 oods 'are kp!
y
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DELERGAZETTE : EXTRAORDINARY
toenterand searchany building or place where he has reason (0 suspect that such books of accounls or other documents or 'goods are kept by a sealer ox by ony piber perzon on behalf of such dealer, _
to break open the focks of-aay door of any premises oF 10 break open any almirah, safe, box, receptacle in which any.godds, accounts, registers or docunicats of the dealer are sus- pected to be kept, iF access 19 such premises, alimirah, safe, box orreceptacie is deni (¥) seal the premises inctuding the office, shop, godown, bos, locker, safe, almirah or other. re- ceplacie if the awner orthe person in occupa- tion orin charge of such office, shop, godown, box. focker. sale, almirah, or other receptacle leaves the' place or is not avaitable or fails or refuses (0 open it when called upon, t0.d0 so, or eanse or aitempis 10 cause obstruction to. - Ihe Commissioner in the discharge of his duties under this section;
(64) to record the stntemertt of the dealer'or his Manager. agent or servant of to take extfact Srom my record and to put identification marks on accouats, registers or documents and on any door, almirah, safe, box or recepiaclé, Explanation —Therg shallbe a presumption respect of goods, accounts, fegisters ordoc menis, which are found at any,place of bu ness of a dealer during any: inspection or search that they selate Lo his business unless Ikecontrary is proved by him,
(3) The power under clauses (iii) and (iv) of sub- fection (2) shall be exercised by an officer Not below the Easkcof an Assistant Sales Tax Officer,'
(4) Where any acoouints. cegislers, or documents are Fproduced before the 'Commissioner-in any proceedings frendlor this Aét, the Commissioner may, for seasons to be Seecorded in writing. Impound and retain thein in his cus- Stady fora period not cxceeding sis months, andsball give R ihe, dealer of any other. person who has produced such Ebecounts, registers or docunieuts a'receip! of the same,
(5) Where at the time of inspection, the Commis- euch accounts. | registers or documents of the deater, as 3s may be considered necessa 'anid shall give the dealer, or ant other perso from whose 'custody such accounts.
F) repisiers or doctiments are seized, a reccipt for the same, and may rorain the same in custody for exarnination, en- BF quity. prosecution or other legal action for a period net ing six months.
{6) Theaccounts. registers erdocuménts impounded under sub-section (4) or stized unter sub-section (5} nay be retined even beyond a pesiod of six manuhs from the date of impounding or seizure, as the case may be, by the commissioner for such further period as may be specifica from timetotime
{7} The Commissioner may seize any goods liable to tax, whichare found in the possession of a dealeror inthe possession of any other person on behalf of such dealer ot with any transferce and which are not accounted forin his accounts, repisters ordocumnents maintained in the course 'of his Business,-and a list of goods so seized shall be prepared by the Commissioner and a copy thereof shall be given to the dealer or any other person from whose cus- tody such goods are seized,
@) Where it is not feasible to seize the accounts, regislers or documents undler sub-section (5) or the goods under sub-section (7), the Commissioner may serve on the owner or the person who is in immediate possession or contro! thereof, arvarder that he shall not remove, part with or otherwise eal with them except with the previous per- mission of the Commissioner:
(9) The Commissioner may, after having held such further cnquiry 2s he may consider fit, and after having given the dealer an opportnnity of being heard, impose on 'yint, for the possession of gaods not accounted for, whether seized or not under' sub-section (7), by way of penalty a sumnot exceedlitig thaes and a half times of the tax leviable 'on such goodsand the conunissioner may' release the goods, if seized, on payment of the penalty imposed or ost fier nishing such security for the payment thereof as he may consider necessary.
(10) The Contevissioner may eequire any person :—
(2) whotransports or holds in custody any goods ofa dealer, to give any information in his pos- uae session in respect of such goods or to allow inspection dlicreof, as the case may be; and (&) who maintains or has his possession any ac- counts, registers or documents relating to Me business of a dealer, 10 produce such accounts, registers or documents for inspection. (1D Jrany person commits default under ciause (b) of sub-section (10), the commissioner may, without proju- dice to any otheraction which may be taken agaiast such personsunderany othr provision ofthis Act, dice after giving an opportunity of being hieard fo such person thot such persor shall pay by way of penalty a sum novescecd ing filty thousand rupees.
= (12) Ifthecommissioner is satisfied that any person on being required by-him so 10 do, has failed to furnish the Jnfarmation in respect of the goods in his custody for de~ Livery (o or on behalCofany dealerar to permit inspection thereof ander clause (a) of sub section (10), he Commis- sioner may. by order in writing and after giving opportu- nity of being lard to such persons, impose by way of pewalty, i suey' not exceeding three and a half times the amount of ins faviable under this Act on goods in respect of which the defonlt was committed.
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(12) If any person. who transports or holds in cus- fody for delivery to, oron bebalfof, any dealer any goods, on being required by the commissioner of under clause (a) of sub-section (10) so to do, fails to give the information likely to be in his possession in respect of such goods or Tails 19 permit inspection Wiereof, as the case niay' be, the Commissioner may pass an orderafdciention or seizureof goods in his cusiody or possession in respec! of which the default iscommilted. 'i :
(14) The order of detention or seizure passed under sub-section (13) shall remain in force'so longas the person concemed docs not furnish information required under clause (a) of sub-section (10) or make properarrangement for inspection of the goods under the said sub-seélion,
(15) [any person, who transports or holds in cus- lody fordelivery to, or an behalfof. any dealer any goods, on baing required by tlie Commissioner, under clause (a) oF sub-scction (10) so to do, fails to give any information ccly Lo be in his possession in respect of such goods or failsto permit inspection thercof-as the case may'be, with- oul prejudice to any other action which may be tnken against such person, «presumption may be raised (hal tie goods in respect of which he hus failed to furnish informa:
1 OF permil Inspection, were meant for sale by hin and heis a dealer liate to pay tax under this Act and the provi- sions of this Act still apply accordingly.
(16) Where any preises including the office, shop. goxlown, box, locker, sife, almirah or other receptacte have heen scaled ander Sub-scction (2). the Commissioner, on an application made by the owner or te person in occupa iF it charge of such shop, godown. box, locker. safe, tow
almigih or other receptacle, may order descaling thercof on such terms and conditions including furnishing of secu- rity for such suin in such form and miannors ns thay be prescribed,
a7) Winco tes of detention of scizurcof goods is made under this section and no claim és lodged by any person witl respect to such goods within period of Ihroe months fram the datc of such order. the Cominiissioner may, by order in swriting. dircet the auction 6f'such goods ; »Provided that if the goods, in respiect'of which an order of detention or scizure is made, arc of'a perishable nature or subject to speedy and natural decay of when the expenses of keeping them in custody are likely to exceed Their value, the same may be ordered 10 be auctioned by , the Conwnissioner as soon as it is practicable-afer in or- der of detention or seizare of such goods is made and the. amunt so reslised by de auction of goods shall be rem ted in the Goverment Treasury immediately. \
(18) Where an order imposing penalty is passed under, sub-section 9} or under sub-section (12) and the persoi liable fails to pay the penalty within the prescribed period, the goods detained or scizved may besold by public auction and the sale proceeds deposited in Government Treasury
(19) Anction of goods fo be made under sub-section
(17) oF sub-section (18) stall be carried inthe manner pre- 'DELHI GAZETTE: EXTRAORDINARY
. Seribed for disposal of goodsiandes 'sub-section (6) tion 64 of the Delhi Sales Tax Aci.
(20) Any person entitled to the sale pt goods auétioned under the provisions of this soctk on application made to the Commissioner and u icint proof, be.paid the sale proceeds-of the g tioned, after deducting the expenses of the sate, oth dental charges, the aniount of tax and the penalty under this Act.
~-. (21) No action shall lie for damages or for claim by any person against the Commissioner or ama officer authorised in this beltalf for anything done faithin akan duties under this sect
furas maybe, carried'on in accordance with the provi ofthe Code of Csimirial Procedure, 1973 (2 of 1974) r= fo searches or sures made under thal Code,
16. Power to exempt. The Government stall afiythi 1g 10 tiecontmy conned in any Jaw for!
"being in force; every owner or any.othier person hia control ofa cold slore, warchouse; godown ar any place, wlio stores goods for hire or reward shall maint cause {9 be maintained a corréct and complete acca indicatirig the full particulars of Uie person whose s are stored and the quantity, value, date of receipt a1 livery of such goods,
* 2) Such accounts shall, on demand, be prods before the Commissioner or any officer aulvorized by in this bhaif who may take or cause'to be'taken eStmpcts there froin oF require such eytracis to be furniS 'as he may consider necessary.
(3) IPany owner or any other person having co.
" of a cold storé. warchouse, godown or any olhier 5x4 plice, who Stores, goods'for hire or reward, contraves
"any of the provisions of sub-scelion (1) or sub-section in a thanher tikely to lead (0 evasion of any tax pas under thig Act, the Commissioner nay, without preju:
" toany olheraction which may be taken against such ow or the persoii having'contro} of a cold store, ware! 'godown or any olligr such place under any other prow sion of this Act, direct, after g i
. ing heard, (iat such owner or the person having cont acold store, warchouse, godown or any ollier such pis shall pay by way of penalty a sum not esceeding three:
a half limes tie tax, teviable on the goods in resr ~ which default is committed under sub-section (1) or section (2)-
5 CHAPTER VI .
'OFFENCES AND PENALTIES 1X, Offences, (1) Where any person-
(a) iable to be registéred under this Act fai «rogister himself.
7
DELHI GAZETTE: EXTRAORDINARY
(b) Table to filethe retum, fails to fle zetura or pay Uhe tay due according to such retorn within the time stipulated together with interest accrued (hercon. if any, knowingly prepares o¢ pro- - duces false accounts, fegisters or docuntents, or fumisites fntse eélarnsin relation to his onsi- ness, ov makes a false disclosure or averment inany statement reqnired ta be recorded or in = anty-decloration required to be filed under this Act or the rules framed thereunder;
(6) _intentfonally avoids or evades or congeals tax or deliberately conceals his tumover or tax li- ability in any manner:
{d) deliberately disregards a notice of demand or fails to pay the amount in terms of any-notice of demand and a period of six months has lapsed since the receipt of the notice of de- mand by him:
(©) prevents orobsinictsin a y manner the Com- missioner or any officer authorized-by him in this behalf under this Act,. to ect
and search the place of business or a iplace where the goods or the'accounts, regis= tors and decumtents are believed to be kept, or prevents or obstructs, the Commissiorier or such officer to seize the «goods or lie accounts, vegisters and documents:
ry
(S
ee
TS
Bi () — faits to make deduetion of tax al source'or.al- ter deducting fails 16 deposit amount so de- ducted as required under section 42 of this Act:
ty) enters into a transaction with any other'per- son without oblaining from hima tax clearance certificate tinder section 13 of this Act:
(i) fails to maintain accounts in te manner as equised under scetion 11 of this Act fi) "/aids or abets any person in the commission of any such offence as aforesiid;
Heshall be punishable with simple imprisonment for Herm which may extend to six months or with Gne which 'extend to wenty thousand rupees, or with both, ee # Explanation. - An offence under clause (d) of this cction shiati be deemed to be a continuing offence full paymient is mode.
@) Where an offerice under Nes section is commit- A ate forbacondhot oF fe hustness'tthetine when nmitled or who was answerable for a
lapse in any manner by his'action or omission, shall inst and punished under this
(3) Without projudice to the provisions contained in ection (2), where an offence under this section is
. alloffences defined in Sub-sectic cameitet! by:a firm or a company'and itis found that the offence bas been committed with the consent ar comnir- ance of. ori attributable toany acgect on the part of, any partner of the firm or Chairman. Managing Director or Di- rector of the company: such partner. Chairman. Managing Director of Director shall be personally Liable 10 be pro- ceeded against and punished under this section.
(4) Any prboeeding under this Actinciuding the pro- ceeding of assessment, reassessment, rectification Gr re:
covery other than the praceeding for imposition of pen- ally. shall be carried on without prejudice to auy praseen- tion under this section.
(5) Ca dealer fails without reasonable caus¢ fo com- ply with any of the provisions of this Act or the rules framed-thercunder, shall, if a0 other penalty is provided under this Act for such contravention ar failure, be liable 10 imposition of penalty, not less than five thousand ru- pees and not ¢xeceding fifteen per cent of the value of goods and where such contravention or failure is continu- ing one, ta a further penaley nol excceding five hundred rupees for each:day of default during the period of te contintiance of hhecontravention or failure:
Provided (hat no uch penalty shall be imposed with- onl affording the desler an opportunity of being head
(6) Notwithstanding anything to the contrary con tained in the Code of Criminal Procedure, 1973 (2 of 1974.
(1) shall becognizable and lailable.
(7) No court shall take cognizance of any offence punishable under this Act or the rules framed thereundes, except with ihe previous' sanction of the Commissiones, and no count inferior to that of a Metropolitan Magistrate shail try any such offence
19, Investigation of offences —(1) Subject to such conditions 4s may be prescribed, the Commissioner may authorise either generally or in respect ofa particular case or class of cases, any officer not below the rank of an Assistant Sales Tax Olficet to investigate all or any of the 'offences punishable under this Act.
(2) Every officer so authorised shall, in the conduct ofsuch investigation, exercise all powers conferred by the Code of Crintinal Procedure, 1973 (2 of 1974) upon an of- ficersin-charge of police station for the investigation of a cognizable offence, S
CHAPTER VIL
CERTAIN PROVISIONS OF THE DELII SALES:
' 'TAX ACT APPLICABLE
20, Aulliarities under the Delhi Sales Tax Act em- * powered to' aesoss, reassess, ete, tax under this Acl.—~ Subject to the other provisions of this Act and the rules framed thercunder. the authorities for the Lime being em- powered to assess, re-assess_ collect and enforce payment ofany tax, interest and penalty under the Detht Sates Tax Act, shall assess, re-assess, collect and enTorce payment
8
lo DELHI GAZETTE : EXTRAO! Arias. including any iskercst or penalty payable by a dealer under this Act asi tetas or intotest o: penalty payable! suet a dealer ander this Act iS a lax, interést ox penalty payable under the Delhi Sales Tax Act and for this purpose thoy may extrciscall or any ofthe powersthey have undes the Deh Sales Tax Act and Ihe rules framed thereunder and the provisionsof theDethi SulesTax Act and the rules:
(arsed thereunder relating torchums, assessment, notice. reetification, colleetion, rogistmlion. liability of any Bsmt or Uindu undivided- family to pay tax in the event of the:
dissolutiost of such firm or partition of such family, special mode of recovery of tis. appeals, revision, references, 1e- funds, fines, penalties. charging of payment of interest. aud the creatment of documents furnished by a dealet as confidential. reassessment of escaped tumnover of sates, recavery of tas. maintenance of accounis, inspection, search and seizure, iabilityin representative character, cf ercnces af cases to the High Court 6f Delhi, compounding af offenses and other miscellaneous matter shalt mutatis tuxianelis apply accordingly.
Explunation.—All the provisions ofthe Dethi Sates Tax Act reguiding proceedings under the said Aet, in sofaras the sane aze nol inconsistent with the provisions of this Act shal? apply aataiis mutaadis to the proceedings wi- der tis Act,
CHAPTER VI
MISCELLANEOUS AND RULES
21. Officersind servantsappointed under this Act £0 be public servants —All officers and servants appointed under this Act shall be deemed to be public servants within te meaning of section 21 of the Indian Penal Code, 1860 (Sof 1860). ae
22. Bar of suits in Cisii courts.—No suit shall be brought in aay civil court to sel aside or modify any as- sesstient made ar any order passed under this Act or tlle niles (ramex thereunder ard no prosecution, suit orother proceeding slialt lic agains the Government or any officer of the Goverment for anyitiing in good faith done or in- tended! to be done under this Act or the rules framed there- under,
23, Detegation af Contmissioner's poner—Subject to such restrictions and conditions as may be prescribed the Commissianzr nisy, by orderin writing, delogate any of this powers, Sanctions aud dutics under this Act except hat nnder Sub-seelion Qy'af section 18 to auiy officer not below the rank ofan Assistant Sales Tax Officer, 24, Powerto make nilex—{1)The Government may. by notification in the Oflicial Gazette and subject to te condition of previous publication, make cules for carrying ut the purposes of this Act,
Provided that if the Government is satisfied that cir- cumstances exist which render it necessary to take i medi- ate aclion. it may dispense with previous publication of any rules 1a be made under this section.
(2) In particular and without prejudice to the ge ity of the foregoing power. such niles may provide fo (o) all matters expressly tequited or allow this Act 10 be prescribed,
(&) procedure for registration of deaters:
(©) compelling the submission of returns. prod
tion of documents, enforcing the attend
gfpersons andexamining them on oath; 44
(a) generally. regulating the procedure (0 beg lowed, and the norms to be adopted ii ceedings under this Act:
(©) any otlier matter indluding levy of fees which there i 1 provision or no suilieag provision in this Act and for which prov is, in the opinion of the Government, sary for giving effect ta the purpases oF Aci.
(3) In inaking any rues, the Government ma that for a breach thereof, the Commnissiouer prescribed manner, impose a penalty not excecding 8 five thousand rupees, and when the breach is conti 'ong, a penalty stot exceeding five trundred rupees 1a inrposeid for every day of default during the contines of such breach, +
(4) Every rule made under this Act shall be lai soon as ntay be alter it is made, before the Legistang Assembly of Delhi while itis in session for a total peri thirty days which may be comprised in ong session.t lwo.or more successive sessioits, and if, before the of the session inumediately following the session of successive sessions aforesaid,the Legislative Asses agrees in making anyysaodification inthe rule or the Sq lative assembly agrees that such rule should not bea the role shall therenfier have effect only in such m form or be of no effect, ns the case may. be; 50, thal any such niedification or annulment shall be Wi prejudice to the validity Of anything previously des 'omitted {0 be done uniter that rute
25, Power to remove difficulties. —(1) 1fany culty arises in giving effect to the provisions of th the Government my: by order in the Official Gazeitecs such provisions not inconsistent.with the provisis this Act as appear to it to be necessary or'expodies removing thedifficully:
Provided that no such order shalt be made alt expiry of a period of wo years front the commencem this Act, :
(2) Every drdee madeundes this section shall, Assembly of Delhi,
Printed by the Manager, Govt. of India. Press, and Published by te Controller
ing, Red, Mayapuvi, New Dale
of Publicatio's, Delhi—1i0034.
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