Chhattisgarh act 002 of 2005 : The Chhattisgarh Value Added Sales Tax Act, 2005

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CHHAITISGARH ACT

( No. 2 of 21)05) ••

The Ch~attisgarh Value Added Sales Tax Act, 2005 •• Table of contents •

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Chapter Section Particulars Chapter I - Preliminary

1. Short title, extent and commencement.

• 2. Definitions.

Chapter II - Taxing Authorities

3. Taxing authorities arid other officers.

Chapter ID - Incidence of tax -

4. Incidence of tax.

5. Determination· of liability to, pay tax. •• 6. Joint and several liability of certain class of dealers. • 7. Liability of a dealer registered under Central Sales Tax Act, 1956 (No. 74 of 1956) to pay tax .

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Chapter IV - Levy of tax

8. Levy of tax.

9. Levy of purchase tax. • 10. Composition of tax.

11. Deal(?r not to pass incidence of tax to agriculturists and horticulturists under certa,in circumstances.

12. Rate of tax on container or packing material. • • 13. • Rebate of input tax. • 14. Burden of proof. 15. . Tax free goods. • • ChaJ)ter V-Registration of dealers 16. Registration of dealers

17. Provisional registration of intending manufactures

18. Registration of persons liable for tax deduction at source

Chapter VI-Returns Assessment, Payment and Recovery of Tax •

19. Returns.

20. Returns to be furnished by a person liable for tax deduction at source.

21. Assessment of tax.

22. Assessment / reassessment of tax in certain circumstances. •

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23. Exclusion of time in asses~ment proceedings.

24. Appearance before taxing authorities.

25. Payment and recoYery of tax. interest, penalty and other dues.

26. Payment of tax in adYance of assessment on failure to furnish returns.

27. Deduction and payment of tax in certain cases.

28. Saving for person responsible for deduction of tax at source. •

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30. Payment of tax in case of transfer or discontinuance of business •

31. Liability of firms. • 32. Transfers to defraud reYem.1e Ycid.

,,

_1..). Assessmeni/re-assessment of legal representatiYes. • 34 . Assessment in spe-.:ial cases.·

35 . Tax to be first charge. •

36. Power to set a.side an ex-pane order. • 37 . Collection of tax by dealers. 38 . Sales not liable to tax. • • Chapter VII - Refund of Tax

39. Refunds . •

40. Power to withhold refund in certain cases . •

Chapter Vill - Accounts and Issue of bills, invoices or cash memoranda •

41. Accounts. • 42. Dealers to issue bills, invoices or cash memoranda. •

Chapter IX -Certain powers of the Commissioner and delegation by the Commissioner • 43. Delegation of Commissioner's powers and duties .

44. Transfer of proceedings . •

45. Power of commissioner and his assistants to take evidence on oath etc. • 46 . Power of commissioner to call for iiiformation in certain cases. 47 . Power of commissioner to stay proceedings. • • Chapter X -Appeals, Revisions and Rectification

48. Appeal. • 49 . Power of revision by commissio!ler. • 50 . Additional evidence in appeal or revision.

51. Court fee stamps on memorandum of appeal and application for revision. • 52 . Application of sections 4 and 12 of Limitation Act, 1963. • 53 . Extension of period of limitation in certain cases.

54. Power of commissioner £or Appellate Deputy Commissioner or the Board to impose penalty in • certain circumstances . 55 . Statement of case to High Court. •

56. Rectification of mistakes. · •

Chapter XI -Detection and prevention of tax evasion •

57. Constitution of a committee for detection and checking of evasion of tax by dealers liable to pay tax and power of the commissioner to act suo inotu or upon the report of such committee to • investigate in to the tax evasion by a dealer. • 58. Establishment of check post or erection of barriers .

59. Transit of goods by road through the State and issue of transit pass . •

60. Power to check goods at the point of loading and unloading. • 61. Power to check goods in transit.

62. C~mtrol on clearing, forwarding or booking agent and any person transporting goods and fi~ • of information by such agent or person. • •

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• •

63 , Power to call for infom1ation from Banking and non-banking financial Companies.

Chapter XII- Offences and Penalties

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64 Offences and Penalties

Chapter Xlll -Miscellaneous

• •

65. Production of Tax Clearance Certificate.

66. Bar to Certain Proceedings. G7. Bar of prosecution in certain cases.

• 68. Protection of persons acting in good faith and limitation of suit and prosecution. 69. Disclosure of information by public servant.

10. Determination of disputed questions

Chapter XIV~ Power to make rules, Repeal and Saving, transitory provisions and 110wer to remove difficulties. •

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71. Power to make rules.

72. . Repeal and savings. 73. Transitory provisions.

74. Power to remove difficulties. •

Scheduhi I •

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Schedillt n Schedule m •

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CHHATTISGARH ACT • ( No. 2 of 2005 ) • THE CHHATTISGARH VALUE ADDED SALES TAX ACT, 2005 • An Act to levy tax on Sales and Purchases of goods in the State of Chhattisgarh • Be it enacted by the Chhrrnisiarh Legislature in the fifty fourth year of the Republic of India as follows : •

CHAPTER-I PRELIMINARY • Short Title, I' ~,,cnt This Act may be called the Chhattisgarh Vaine Added Sales Tax Act. 2005 (1) I. • and Commencement.

It extends to the whole of Chhattisgarh. (2) • (3) It shall come in to force on such date as the State Government may, by notification, appoint. -•

Definitions . In this Act, unless there is an}'1hing repugnant in the subject of context- 2. •

"Appellate Deputy Commissioner·· means an Appellate Deputy C~mmi~i1:mer , (a) • of Sales Tax appointed under section 3 and includes an Additiifaal Appellate Deputy Commissioner of Sales Tax; • • "Assistant Commissioner" means an Assistant Commissioner of Sales Tax (b) appointed under section 3 and includes an Additional Assistant Commissioner • of Sales Tax; • (c) "Board" means Board of Revenue constituted under the Chhattisgarh Land Revenue Code 1959 (No. 20 of I 959): •

( d) "Business" includes, - •

(i) any trade, commerce, manufacture or_any adventure or concern in the nature • of trade, commerce or manufacture, whether or not such trade, comrnerce, manufacture, adventure or concern is carried on with a motive to make • gain or profit and whether or not any gain or profit ;:iccrues from such trade, commerce, m;umfacture, adventure or concern and irrespective of • the volume, frequency, continuity or regularity of such trade, commerce, manufacture, adventure or concern; and •

(ii) Any transaction of sale or purchase of goods in connection with or • incidental or ancillary to the trade, commerce, manufacture. adventure or • concern referred to in clause (i), th;it is to say -

(a) Goods whether or not they are in their original form or in the fonn of • second J:iand goods, unserviceable goods, obsolete or discarded goods, mere scrap or ,vaste material; and •

(b) goods which are obtained as waste products or by-products in the • course of manufacture or processing of other goods or mining or generation of or distribution of electrical energy or any other form of • pmyer: •

(e) "Capital Goods" means plants, machinery and equipment directly used in the process of manufacture exclvding such civil works as may be prescribed; •

(f) "Conm1issioner" means tl1e Commissioner of Sales Tax appointed under section • 3: • • •

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108 ( 90 ) G-dh1•14 \~, ~ 24 i:rf'Tl 2005 ••

(g) "Dealer" means any person who carries on the business of buying, selling, ••• supplying or distributing goods, directly or otherwise, whether for cash, or for deferred payment or for commission, remuneration or other valuab\e consideration artd includes -

•^•

(i) a local authority, a company, an undivided Hindu family or any society (including a co-operative society}, club. firm or association which carries on such business:

• ,ii) a society (including a co-operative society), chili, firm or association, which • buys goods from, or sells, supplies or distributes goods to its members; -• (iii) a commission agent broker, a del-credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of buying, selling, supplying or distributing goods on behalf of the principal;

I

(iv) any person who transfers the right to use any goods including leasing thereof for any purpose, (whether or not for a specified period) in the •

•^• course of business to any other person;

Explanation I - -Every person who acts as an agent 6f a non- resident dealer, that is as an agent on behalf of a dealer residing outside the State and buys, sells, supplies or distributes goods in the· State or acts on behalf of

••

• such dealer as -

(i) a mercantile agent as defined in ihe Sale of Goods Act, 1930 (III of 1? 30); or

(ii) an agent for handling goods or documents of title relating to goods; or •

(iii) an agent for the collection or the payment of the sale price of goods or as a guarantor for such collection or payment, and every local branch of a •• firm or company situated outside the State, shall be deemed to b~ a dealer for the purpose of this Act.

••

•

Explanation II - The Central or a State Government or any of their departments or offices which, whether or not in the course of business, buy, sell, supply or distribute.goods, directly or othernise, for cash or for deferred payment, or for commission, remuneration or for other Valuable • consideration, shall be deemed to be a dealer for the purpose of this Act. • Explanation III - Any non-trading, commercial or financial estqblishment • including a bank, an insurance company, a transport company and the like which whether or not in the course of business buys, sells, supplies or •• distributes goods, directly or otherwise, for cash or for deferred payment,

commission, remuneration or for other valuable consideration, shall be

deemed to be a dealer for the purposes of this Act.

(h) The expression "declared good~" s_hall have the meaning assigned to it in the

• Central Sales Tax Act, 1956 (No.74 of 1956); • • (i) "Deputy Commissioner" means a Deputy Commissioner of Sales Tax appointed under section 3 and includes an Additional Deputy Commissioner of Sales Ta-x.;

••(j) "Document:' means title deeds, writings or inscriptions and includes "electronic record" and "electronic form?' as defined in the Information Technocogy Act, 2000 (No.21 of 2-000) and the like that furnishes evidence; · •

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(k) "Goods" means dn kinds of movable property including computer software but • excluding actionable claims, newspapers, stocks, shares, securities or Government stamps and includes all materials, articles and commodities, whether or not to • be used in the construction, fitting out, improvement or repair of movable or immovable property, and also includes all growing crops, grass, trees, plants • and things attached to, or forming part of the land which are agreed to be severed • before the sale or under the contract of sale; • (1) "Import'' means the bringing or causing to be brought of goods in to the State of Chhattisgarh from any place outside the State: •

(m) "Input tax'· means an amount paid or payable by way of tax under clause (i) of • section 8 by a registered dealer in respect of the purchase of any goods specified in schedule II, to a selling registered dealer and who is liable to pay tax under •

the said clause on the sale of such goods; •

(n) "Manufacture" includes any activity that brings out a change in an article or articles as a result of some process, treatment, labo1:1r and results in transformation • into a new and different article so understood in commercial parlance having a distinct name, character use, but does not include such activity of manufacture • as may be notified; •

(o) "Place of business" means any place where a dealer purc11ases o~ sens any goods or store.s goods or keeps documents or accounts of his purchases or sales • or both and also includes - •

(i) the place of business of an agent where a dealer carries on business through • an agent; • (ii) any place or building whether any business is carried on therein or not, in ,which the person carrying on the business, keeps any of his books of • accounts, documents, stocks or other things, relating to his business; •

(p) "Prescribed" means prescribed by rules made under this Act; •

(q) "Purchase price" shall comprise of- •

(i) the amount payable by a dealer as valuable consideration for the purchase • of goods' simplicitor ; • Provided that where goods are purchased together with the packing material or container, then notwithstanding anything contained in this Act, the • purchase price of such goods shall be inclusive of the price or cost or value of such packing material or container, whether such price or cost or ·• value is paid separately or not as if such packing material or container were the goods purchased: •

(ii) transport costs. if any: •

(iii) trade commission, if any, by whatever name called; •

. ..( iv) forwarding and handling charges, if any, •

(v) insurance charges, if any; • • (vi) local ~~es, if any; • (vii) excise duty, if any, leviable under the Central Excise Act, 1944 (No.I of 1944);

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(viii) cost of packing, if any; and

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(ix) any other charges or costs other than those specified above, ;f incurred or paid in respect of goods so purchased:

Explanation -For the purpose of this clause ''transport cost" includes such

•^• expenses as are incurred by the dealer on transportation of goods after taking delivery from the s_eller;

(r) "Registered dealer" means a dealer registered under this Act: • •

(S) "Sale" with all its grammatical variations and cognate expressions means any transfer of property in goods for cash or deferred payment or for other valuable consideration and includes -

•

(i) a transfer, otherwise than in pursuance of a contract, of property in any • goods for cash, deferred payment or other valuable consideration:

(ii) a transfer of property in goods whether as goods or in some other form, • involved in the execution of works contract; •

(iii) a delivery of goods on hire purchase or a~y system of payment by installments: · •

(iv) a Stlpply of goods by any unincorporated association or body of persons •

•• to a member thereof for cash, deferred payment or other valuable consideration:

(v) a supply, by way of or as part of any service or in any other manner whatsoever, of god'ds being food or any other article for human • • consumption or any drink (whether or not into,-icating) where such supply or service is for cash, deferred pa ment or other valuable consideration;

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(vi) a transfer of the ngln to use an, goods including leasing thereof for any purpose (wh (hor at noi for a specified period) for cash, deferred payment or other valuable considerotion

and such transfer, delivery or supply of any goods shall be deemed Lo be 1:1 • • • sale of U1ose goods by the person making the transfer, delivery or suppl imd purchase oF tl1ose goods by the person to whom such trnnsfer, deli ery or supply is made. but does not inelude a mortgage, hyputb~tion. charge

or pledge: • Explanation .

(a) • otwilhstanding anytlting contained i11 the alee of Goods Act 1930 (Ill • of 1930)_ w11ere a saJe or purchase of goods takes place in ptLrsuance of a contract of sale. such sale or purchase shall be deeme(f for th pull)osc of e

this A 1 to hnYe taken place in lhc State ofCWrnllisgarh irrespecth-e o the place where thecontrnct ofsaJe or purcha mi_g ht h. \ C been mad~, ifLh • goods are within the State •

(i) in the case of specific or ascertained goods, at the time the contract • of sale or purchase is made: and •

(ii) in the case of unascertained or future goods. at the time of their appropriation to the contract of sale or purchase by the seller or by the purchaser, whether the assent of the other party is prior or subsequent to such appropriation: and

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•• ; ••

b) \Yhere there is a single contract of sale or purchase of goods situated at more places than one. the provisions of clause (a) shail apply as if there ,~ ere separate contracts m respect of the goods at each of such places:

· Sale price .. means the amount or an, other comideration pa,able to a dealer as

~ aluab!e cons1dernt10n for the saie of an\ goods kss crny sum c11iO\\ ed as cash

• (t) discount according to ordina~ trade pracrice but I sum cl:urged

• for anything done by the dealer in respect d the ~ of or befme defu er; thereof other than the cost of freight 0r de' ~ r cf installation • -_,he:> such cost is seprately ch:uged • Explanation - dl Where goods are sold on hire purchase or any system of p~1nent by installments. the sale price of such goods shail be exclusiYe •

of msurance charges. interest and hire charges and such other charges as mav be prescribed . •

• (fr) Where goodi;i are sold by way of transfer of tight to use such goods, the sale price thereof shall be the amount of valuable consideration received or receivable by the transfer or for such transfer;

•

(u) ·'Sales Ta. Officse[ means a sales tax officer appolnted Limier s{;:ction :i and •

includes an Additional Sales Tax Officet •

.

• (v} "tax'; means the tax payable under this Act;

•

(w) "'fa, :;iole tun\

• d-ea1er s b1~er wliieh tetnairts aft~r deduction therefrom -

••

(1) the sale price-of g-0ods dedated tax free tinder section 1.5:

(2) in respect of goods on whish tax is payable under cl:ruse (i) of section 8;-

•

Ci) the saie price of goods in refatiort to which deductfon is p:rovided @def the Mt; • • • ffi!c of ax urtder s«ti/:l.!1 (i) x ~W-'~e of s::tle ptices

on+ rate bf tax urrcfor scct:iofl SO)

• • • •

(i) the sale prir.:e of StiGh goods which ate in the mtnre of1ax paid goods in the hattd9 ttf suth dealer .

.

•

(ii) the salt prise of goods ifl relation to whi"h .:k!duc-tion is prB"ided ~iheAot,

• • rate of tax under 98Gtiw 8(iiJ x aggregate of sale pri~ arm·oo in after

•

al~iQj_dcduction under p-.!n>groph {ii) of Uuse (~) I 00+ raie of iax under rr ii)

• •

ProvJded 00d. :•

a) no ckd'.uettan on U1e: basi of Ure aOO\le J'unin:i1a ~ Jn(Nfgtaph (:ii) df

• snti-- dause (j) or p:mtgraph iii) of sub-clflusc (3) shall be made ii the amOUJll of 1il. under clause i) or clause (ii of~tkm g coileded by g

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(b) where the turnover of a dealer is taxable under clause (i) or clause (ii) of section ar di:fferent r.i . the formula under paragraph (ii) of sub-clause

(2) or paragraph (j ii) of sub-clause (3) shall be applied separately in respect of such part of the turnover iiable to a different rate of tax.

Explanation - For the purpose of levy of tax under clause (i) and tax under clause (ii) • • of section 8 the taxable turnover shall be determined separately. •

(x) "Tax paid goods" in relation to goods specified in _parts III and IV of schedule II on which tax is payable under clause (ii of section 8, means any ~h goods • •

• which have been purchased by a dealer from a registered dealer i.r\side the State of Chhattisgarh within the meaning of section 4 of the Central Sales Tax Act, 1956 (No.74 of 1956); • -

(y) 'Tu.mover' in relation to any period means the aggregate of the amount of sale prices received and receivable by a dealer in respect of any sale or supply •OI distribution of goods made during that period, whether or not the whole or any

. portion of such turno er is liable to ta.x but after deducting the amonnt, if any, • refunded by the dealer to ,a purchaser, in respect of any goods ptrrcbased and • returned by the purchaser within six months from the date of sucb sale:

Provided that -

(i) in the case of sale by bo.nafide agriculturist as defined in clause ( •••

e) of sub- section (1) of section 2 of the Chhatfugarh Land Revenue Code, 1959 (No.20 of 1959), of ghee produced by himself; or

••

(ii) in case of sale by a person of agricultural or horticultural produce grown by himself or grown on any land in which he has an interest whether as owner, usufructuary mortgagee tenant or otherwise, when such produce is sold in the form in which il was produced, without being subjected to any physical, chemical or other process for being made fit for consumption • save mere dehusking, cleaning, grading or sorting, the amount of consideration relating to such sales, •

s •

hall oe excluded from his turnover; •

(z) "Value added sales Tax" means a tax on sale or purchase of goods payable • under this Act.

(a-1) 'Year' means the twelve months ending on the 31st day of March. • •

••

CHAPTER - II TAXING AUTHORITIES Taia: --\.l[fltorities 3. _,. .tltrr Officen. (1) There may be appo~nted a person to be the commissioner of,Sales Tax and the following category of officers to assist him, namely:

(a) Additional Commissioner of Sales Tax: •• (b.) Appellate Deputy Commissioner or Additional Appellate Deputy Commissioner of Sales Tax;

(c) Deputy Commissioner or Additional Deputy Commissioner of Sales Tax; ••

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(d) Assistant Commissioner or Additional Assistant Commissioner of Sales Tax;

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(f) Assistant Sales Tax Officer; and • • (g) Inspector of Sales Tax . • (2) The Commissioner of Sales Tax and the Additional Commissioner of Sales Tax shall be appointed by the State Government and the other officers referred t6 in • sub-section (1) shall be app_ointed by the State Gcvernment or such other authority as it may direct . •

(3) The Commissioner of Sales Tax and the Additional Commissioner of Sales Tax • shall exercise all the powers and perform all the duties conferred or imposed on the Commissioner by or under this Act throughout the State and for this purpose • any reference to the Cmmnissioner in this Act. shall be construed as a reference -• to the Additional Commissioner of Sales Tax .

(4) Other officers referred to in sub-section (2) shall, within such areas as the • appointing authority may, by general or special order specify, exercise such powers as may be conferred and perform such duties as may be imposed by or • under this Act. • • CHAPTER - III INCIDENCE OF TAX • 4 . (1) Every dealer whose turnover during a period of twelve months immediately Incidence of tax. preceding the commencement of this Act exceeds the prescribed limits which •

shall not exceed rupees five lacs, shall from such commencement be iiable to

pay tax under this Act in respect of sales or supplies of goods effected by him •

in Chhattisgarh. Different limits may be prescribed for different category of

dealers . •

(2) Every dealer to whom sub-section (1) does not apply shall be liable to pay tax • under this Act in respect of sales or supplies of goods effected by him in Chhattisgarh with effect from the date on which his turnover in a year first • exceeds_the limit prescribed under i!].Jh~said.Sl.I__b-1,ection-but for-1-he purpose of • assessment ofUieiaxTor-that year, only so much of his turnover as is in excess of such limit shall be taken into consideration . •

5. (1) The commissioner shall, in the prescribed manner, institute proceedings for the Determination of • purpose of determining the liability of a dealer to pay tax under this Act. Such liabilily to pay t:ix . liability shall be determined by an order and such determination sl~all be made •

within a period of twelve months from the date of institution of such proceedings. -•

(2) Notwithstanding anything contained in sub-section (2) of section 4, liability of a dealer to pay tax under this Act shall not be determined from a date earlier • than five years prior to - •

(i) the date of institution of proceedings under sub-section (l); or •

(ii) the date of validity of the registration certificate, whichever is earlier. •

(1) 6. (a) Where a dealer who carries on the business of supplying goods in the Joint and scvual li- ability of certain dass • course of execution of a works contract. entered into by him (hereinafter of dealers. referred to as a contractor) through another such dealer (hereinafter referred • to as a sub-contractor) directly or otherwise, and the sub-contractor executes such works contract and each or either of them is liable to· pay tax under • this Act, then notwithstanding anything contained in this Act, the contractor and the sub-contractor shall be jointly and seYerally liable to pay tax in • •

97

•• respect of transfer of property in goods whether as goods or in some other

• form involved in the execution of such works contract.

(b) If the contractor proves iti the prescribed manner to the satisfaction of the commissioner that the tiL" has been paid by the sub-contractor on the turnover of the goods supplied in the course of execution of the works •

•• contract. the contractor shall not be liable to pay tax again on the turnover of such goods.

(2) (a) Where a dealer who bonafidely buys or sells for an agreed consideration (hereinafter referred to as the commission agent) any goods specified in schedule II on behalf of his principal, such commission agent and his • • principal shall both be jointly and severally liable to pay tax under this Act.

••

(b) (i) If the principal on whose behalf the commission agent has sold the goods proves in the prescrib~d manner to the satisfaction of the commissioner that tax has been paid or payable by his conunissfon • agent on such goods , the principal shall not be liable to pay tax in respect of the sale of such. goods.

(ii) If the ••conunission agent who has sold goods on behalf of the principal proves in the prescribed manner to the satisfaction of the commissioner Lhat the tax has been paid by his principal on such goods, the

commission agent shall not be liable to pay tax in respect of the sale •

•^•

• of such goods, ·

(3) Where any dealer or person with a view to evade payment of tax or in order to claim any input tax rebate which he othenvise .is not eligible for or was carrying on business in the name of or in association with any other person either directly or indirectly, whether as an agent, employee, manager, partner or p·ower of • attorney holder, guarantor. relative or sister concern or any other capacity, such person and the dealer in whose name the registration certificate was obtained shall jointly and severally be liable for the payment of tax assessed, reassessed,

_ interest payable and penalty imposed under the Act and such tax, interest and

••

• - penalty shall be recovered frtmr-atronnty ofsuwcpeFsons as-ru~n--0r persons are dealer under the Act. . Liability of a dealer 7. ••

(I) A dealer registered under the Central Sales Tax Act, 1956 (No.74 of 1956) registerd uJ1der Cen-

tral Act No. 74 of1956 who is not liable to pay tax under section 4 shall nevef!heless be liable to pay to pay tax. tax at the rate specified in section 8 on his sales of any goods in respect of the purchases of which he has furnished a declaration under sub-section (4) of section

• 8 of the said Act or on the sales of any goods in the manufacture of which such goods have been us·ed, ·

(2) Every dealer to whom sub-section (1) applies shall for the purposes of section • 19, 21, 25, and 41 be deemed to be a registered dealer. •

CHAPTER - I'( 1:,EVY OF TAX •

Luy f tu. 8. There shall be levied on goods specified in, -

(i) parts I; 11, IV and V of Schedule II, a tax at the rate mentioned in the corresponding entry in cplumn (3) thereof on the taxable,tumover : and •

•

(ii) parts III and IV of •

••

• the said schedule, a tax at the rate mentioned in the corresponding entry in colwnn (4) ther.eof on the.taxable turnoverrand such tax shall be levied on the taxable turnover of a dealer liable to pay tax under this Act.

98

• ⁹• ( 1) Every dealer who in the course of his business purchases any goods specified Levy of Purchase tax. in schedule II from any person other than a registered dealer or from a registered dealer in the circumstances in which no tax under section 8 is payable by that

• registered dealer on the sale price of such goods except where the goods are tax- paid goods within the meaning of clause (x) of section 2, shall be liable to • pay tax on the purchase price of such goods if, -

(a) after their purch1;1se, the goods are not sold within the State of Chhattisgarh

•• or in the course of inter-state trade or commerce or in the course of export out of the territory of India but are sold or disposed of otherwise, or

• consumed or used in the manufacture of goods declared tax-free under section 15; or

(b) such goods covered by schedule III are used or consumed in the -•• manufacture of goods; or

• (c) such goods not covered by schedule III, after use or consumption in the manufacture of any goods specified in schedule II . •

(i) the manufactured goods are disposed of othenvise than by way of • sale in the State of Chhattisgarh or in the course of inter-state trade or commerce or in the course of export out of the territory of India; •

••

(ii) the manufactured goods are sold in the State of Chhattisgarh or in the course of inter-state trade or commerce or in the course of export out of the territory of India: and such tax shall be levied, -

• (a) in respect of goods referred to in clause (a), clause (b) and sub-clause (i) of clause (c) at the rate specified in column (3) • and (4) of schedule II; and (b) in r-espect of goods referred to in sub- clause (ii) of clause (c) at the rate specified in column ( 4) of the said schedule, at the

•^• rate at which tax would have been leYied on the sales of such goods within the State on the dat~ of such purchase .

• (2) No tax under this section shall be levied in respect of any year on -

••

(a) a dealer wh01!e tumover in a year does not exceed the limit prescribed under sub-section (1) of section 4,

• (b) any other dealer who has no turnover. if his aggregate of purchase prices • of all the goods does not exceed such amount as may be prescribed . (3) Every dealer who has no turnover and is liable to pay tax under sub~section (1) shall, for the purpose of sections 19, 21, 22, 25, 26 and 41 be deemed to be a

•^• registered dealer.

•

10 (1) (a) The commissioner may, subject to such restrictions and conditions as n1ay Cmnl)osition of Tax. be prescribed, permit any registered dealer whQ carries on wholly or partly •

the business of supplying goods in the course of execution (If works contract entered into by him, to pay in liu of tax payable by him under this Act a , • lumpsum at such rate not exceeding 15 percent, as may be p.rescnQC(l;

determined in the prescribed manner, by way of composition,

• •

(b) For the purpose of determination of the lumpsum by way of composition under clause (a) the state Government may prescribe different rates for

• • different kinds of contracts .

99

(2) (a) A registered dealer purchasing goods specified in schedule II from an other ••

• such dealer within Lhe state after payment of tax under clause (I) of sections 8 and/or purchasing goods specified in schedule I, and whose turnover in year dose not orclin.tril} e.·ceed rupe s fifteen lac may opt in the pre Cflbed fom, within one month of tJ1e commencement o the year. fur pa_ meru m liu f La'\ pa)abte b) him under clause (l) of section ' a Lump:.um at such rate. in uch manner and subJect lo such Tef(rictious and •

• conditions · s n..ay b prescribed.

(b) If a registered dealer during the . ·e-Jr fofYwhich an option has been given • • by him contraYenes any of the re ·lricuon and conditions prescribed und r clause (a) of this section. the opt i n g · 11 b) him shall stand revoked • (c) A rcg1 · er ·d de.al ·r who opts for composmon of tax under clause (I) of • this 110,1 hall not be eligible to any mpul ta.x rebate u1 respect of the goods. old duri 1g tlle year in relation to , -bich such option is exercised by - 1J1~ dc.i1..r. •

(3) The provisions of sections 19. 21. 41 and 42 shall not apply to a registered dealer to whom permission to pay a lumpsum by way of composition has been •• granted under sub-section (1) in relation .to the period for and the goods in respect of.vhich such composition has been- granted and to such dealer who has opted for composition of tax under such-section (2) for the period for which such option has been exercised. •

Dealer not to pass in- l l

cidence of tax to agri- N'o dealer shaH collect any amount, by way of tax. from a person who sells agricultural ••• culturists and horti-

or hcrticuitural produce grown by himself or grmm on any land i11 which he has an culturists under cer-

interest, whether as owner- usufructuary mortgagee," tenant or otherwise, when such tain circumstances.

produce 1s sold rn the funn itt wJuch it was produced, without being .subjected to any

• physical. chcmiC'Jl OJ ot.bcr process for being made fit for consumption save mere dcb:usking, cleaning. grading or sorting.

Rate of tax on Con- 12.

fainer or packing ma- Notwithstanding anything contained m section 8 or section 9 where any goods packed •

••

terial. in any container or packing material are sold or purchased. the container or packing material in which such goods are so ·packed shall be deemed to have been sold or purchased along with such goods and the tax und~r section 8 or section 9 shal! be levied on the sale or purchase of such container or packing material at the rate of tax, if any, applicable to the sale, or as the case may be, the purchase of the goods

themselves : •••

Provided that no tax under section 8 or section 9 shall be levied where the container or

packing material is sold or purchased along with the goods declared tax-free under

section 15. • Rebate of Input tax. 13.

(1) Subject to the provisions of sub-section (5) and such restrictions and conditions as may be prescribed, a rebate of input tax as provided in this section shall be • • claimed by or be allowed to a registered. dealer in the circumstances specified below,-

(a) When a registered dealer purchases any goods specified in scheduie II, •• within the State of Chhattisgarh from anotl~er such dealer for sale within the State of Chhattisgaih or in the course of inter-state trade or commerce or in the course of export out of the territory of India, after payment to

him of the tax under clause (i) of section 8, he shall claim or be allowed in •

such manner and within such period as may be prescribed, input tax rebate

of the amount of such ta.x. •

••

(b) When a registered dealer purchases any goods specified in schedule II other than those specified in schedule III within the State of Chhat'iisgarh

•

100

trade or commerce and any goods specified in schedule I or schedule II

for sale in the course of export oul of the territory of India, he shall claim •

or be allowed, in such manner and within such period as may be prescribed,

input 'tax rebate of the a.--nount of such tax. •

(c) Where a dealer makes an application for grant of a registration certificate • under clause (a) or clause (c) of.sub-section (2) of section 16 on or after the commencement of the Act. he shall in respect of,- •

(1) Goods specified in schedule I! purchased on or after such • commencement by him within the State of Chhattisgarh from another -• such dealer after payment to him of tax under clause (i) of section 8 for t.lJ.e purpose specif.ed in clause (a); or •

(2) Goods specified in schedule II other than those specified in schedule • III, purchased on or after such commencement by him within the State of Chhattisgarl-i after payment to him of tax under clause (i) of • section 8 for t:le purp')se specified in cla-.ise (o ), • and held in stock by him on the date (,_:- validity of the registration

certificate issned to him under clause (a) of sub-section (2) of section •

16, claim or be allowed,- •

(i) in respect of goods referred to in clause (a). an input iax rebate under the said clause, ihe amount of such rax, • • in respect of goods referred to in clause (b ), an input tax rebate (ii) u..11.der t.1le said clause of the amount of such tax, in such manner • and within snch period as may be prescribed, • (a) Notwithstancijng anything cor.tained in sub-section (1), where a registered (2) dealer purchasP.s any goods specified in schedule JI in the circumstances • stated in clauses (a) and (b) of the said sub-section and dispatches such goods or, the goods manufactured by him, to a commission agent registered •

under the Act for sale, . the input tax rebate in respect of such goods

purchased for the purpose of sale within the State of Chhattisgarh shall be •

clair!!.ed'by or be allowed to the registered dealer wlto receives the goods

for sale on commission. • ~- (b) No input tax rebate .shall be ciaimed by or be allowed to the dealer

(principal) who dispatches such go0ds for the said purpose . •

The input tax rebate by a registered dealer uuder sub-section (1) or sub-section (3) • (2) shall be adjusted in such manner as may be prescribed towards the tax payable by him under this Act or under Central Sales_ Ti:!X Act, 1956 (No. 74 of 1956) •

1·h~ amount of input tax rebate, to whi~h a registered dealer is entitled in respect (4) • cf pcrchase of goods made by him for: sale iu the course of export out of the territory of India or for sale to a registered dealer in SpeciaJ Economic Zone as •

per the provisions of clause (iv) of sub-section (1) of section 38, which is not

adjustable towards any tax payable by him in accordance with the provisions of •

sub-section (3). shall be granted to him by waJ of refund., , • •

101

clause (a) or sub-clause (i) of clause (c) of the said sub-section and

adjusted such rebate towards the tax payable by him according to his

return or returns, such dealer shall. in the event of disposal of such

•• goods otherwise than by way of sale within the St~te of Chhattisgarh or in the course of inter-state trade or commerce or in the. course of export out of the territory of India, be liable to pay the amount of tax towards which input tax rebate in respect of the aforesaid goods was

adjusted by him. •• •

(ii) Where a registered dealer having purchased any goods referred to in clause (b) or sub-clause (ii) of clause (c) of sub-section (1) from another such dealer for the purpose of use or consumption of such goods for/in the manufacture or mining of any goods specified in schedule II has claimed input tax rebate in respect of such goods under clause (b) or clause (c) of the said sub-section, and adjusted such rebate towards the tax payable by him according to his return or •

•^• rntums, such dealer shall, in the event of the disposal of goods manufactured or mined, in a manner otherwise than by way of sale in the State·of Chhattisgarh or in the course.of inter-state trade or commerce or in tµe course of export out of territory of India, be liable to pay the amount of tax towards which the aforesaid input tax rebate •

•^• relating to sqch goods was adjusted by him.

(iii) Where the registration certificate of a registered dealer who having purehased any goods referred to in clause (a) or clause (b) of sub-

•• section (I) and having claimed input tax rebate in respect of the said goods under the said clauses, is cancelled under sub-section (10) of section 16, such dealer shall pay the amount claimed by way of input tax rebate under the said clauses in respect of the goods held in stock by him on the date the order of cancellation of the registration certificate takes effect. •

•^•

(b) Wher-e the amount of tax or the amount of input tax rebate which a registered dealer is liable to pay under clause (a) is not adjustable towards any input tax rebate to his orndit, such dealer shall be liable to pay on the

•^• amount of tax so payable interest at the rate of one percent per month for the period commencing from the date of disposal of the goods in the manner stated in sub- clause (i) or sub.clause (ii) of clause (a) to the date of its payment. · •

(6) No input tax rebate under sub~section (1-) shall be claimed or be allowed to a • registered dealer, -

(i) in resp

••

(ii) in respect of goods specified in schedule II for use or consumption for

• manufactqre or mining of goods but the goods manufactured or mined are given away by him by way of free sample or gift or given to or received by him by way of replacement.

(iii) in respect of goods purchased.by a dealer who opts for the composition of tax under the provisions of section 10. • •

•^•

102

Chhattisgarh,- •

(i) after payment to him of tax under clause (ii) cf se£tion 8. or •

(ii) which are tax paid goods at the hands of the selling registered dealer. for use or consumption of such goods for I in the manufacture or for/ • -in mining of any goods specified in schedule II for sale "ithin t..lie

•. State of Chhattisgarh or in the course of interstate trade or commerce • or in the course of export out of the territory of India and thereupon the input tax rebate in respect of such goods shall be claimed or be • allowed in such manner, to sm;h extent, within such period and subject -• to such restrictions and conditions as may be specified in the notification. •

lb) the provisions of sub-clause (ii) of clause (c) of sub•section (1) and sub- • sections (2) to (5) shall apply to input tax rebate that may be claimed or allowed in respect of goods referred iu clause (a) . •

The bwden of proving that any sale or purchase effected by a dealer is not liable to tax Burden of proof. 14 • under section 8 or section 9 as the case may be, or that he is eligible for an input tax

rebate under section 13 shall be on the dealer. •

15. No tax shall be payable on the sale or purchase of goods specified in Schedule-I, Tax free goods . • subject to me conditions and exceptions, if any, set out in the corresponding erttry in • the third column thereof. •

CHAPTER - V REGISTRATION OF DEALERS • Ucgistration of dl'al• (1) Every dealer whose tumoYer during the tweive- months immediately preceding 16~ ers• • the commencement ofthis Act exceeds the Inuits spmdfred U1 snb- ectiotl (l) of _p;:ctfon 4 shall get !um.self regtstcred in the pre cnl>ed !l1n.nnet withi.n thirty • day of tlte cotnnwnce:rrren1-of-thtlrAci-.---- •

(2) (a) Every dealer other than a dealer to whom sub-sect.ion (1) ;lpplles &hall get himself registered within the prescribed period from ilie date on which his • turnover in a year first exceeds the limits specified in sub- aectiou ( 1) of section 4. •

{b) Every person who is required to obtain a registration certificate in pursuance ·• of the provisions of sub-section (6) of section 17 shall get himself registered 0 with in the period specified in the said sub section . •

(c) Every dealer being a transferee of a businc s witl1in the mem · ng af sub- • section (1) of section 30 shall get himself registered mti1in Utirt) days • from the date of transfer of the business of which he is a transferee. • (3) (a) Every dealer required to get himself registered under sub-section (1) or sub-section (2), shall make an application to the commissioner in such • form and manner as may be prescribed, giving correct and complete

particulars therein. Such application shall be accompanied by an affidavit • in support of the particulars gi, · n In the application and a1so a sallsfactol')

proof of paym ,nt of a registrotion fee of five hnn:ired rupees in: that behalf - •

in the prescribed manner to the commissioner. • •

103

••

(b) A d~aler or person who though not li.able to pny tax under ec-tion .J. desires to obtain a registration certificate volumarity, may make an application to the commissioner in such fonn and manner as may be prescribed gi ring correct and coml)lete particulars therem Such .appli.catI.on s1ial.l be accompanied by an a:ffidavil i suppcn1 of the particuJrus given iu tlie

application and also a satisfactory proof of p_ayrnent of registration fee of • • five hundred rupee, in that behalf Where a deale1 or pcrso11 ui1de.rtaking works contract makes the application a copy of a\.vard of U•e centracts

•• shall also accompany the app!icatron. Provided that no regi:s.trntion fee shall be payable under clause (a) wher~

• the application is mad b} a person holding a provis ional registration certificate under S"..Ction 1

(4)

(a) On the day the application for grant of a tegistrat..iou certificate as required •• by sub-section (I) or section (2) is receh-ed. lh said autl10rit) . shall grant the applicant a temporary registration c rtifi le in the prescribed ionn. -

(b) After issue of the temporary regis:!ration certt fkate on app1ica1ion referred • • to in clause (a) , the commis ioncr shall require the applicant to produce before him evidence and document in respect of the particulars given in • the application~ also the ac oum.s relatmg to ll1e busi.ness for verification . On production of the evidence. documents and aecount Urn commissioner •

••

•

•• •

shall verify the particulars i\'en m lb appl ication. On beiug satisfied about the correctness of the partieulars, 01e cmru11.issioner shall. .is.sue to the applicant a permanent registration certificate iu the prescribed form not later than thirty days of the date of receipt of tl1e application. for grant of? ~~ "'"; ~tr1tion certificate.

(c) If the commissioner is satisfied that the particular given by tl.te app lieant in his application are incorrec1 or h,11 lbe applicant has misrepresented certain facts, he shall, after g1nrrg the applicant an opportunity df being heard and recording the reasons in writing reject tJ1e ap plication.and cancel the temporary registration certificate issued to the applicant under clause

(a) from the date of its issue. uot later than thi rty days of the date of receipt of the application.

-

••

(5)

The registration-c---erti:fre;ih:-grantectunder sue-section (4) shall take effect frorn-

(a) in a case where a dealer required to get himself registered under clause (a) or clause (b) of sub-section (2) within the period prescribed under clause

•• (a) or speci:t;.ed in clause (b) of the said sub-section, the date on which his turnover in a year first exceeds the limits specified in sub- section (1) of section 4. (b)

in ;1 ~ c ,1here a de,1lcr required to get himself registered under sub-

cclto11 (2) fr s appl ied for ~cgi.s1r.1tio11 after the cxµiry oflhe prescribed or •

~pocified period as du:: case may be, the date on which he applies for

registration.

(c) iii a case where a dealer reqi1ired to appl_ · for regis:tra lion under clause (c) ••

•^•

••

•

•

of sub-section (2) has applied for n::g_istni1ion wilh:in thirty days of the transfer of business. the date of lran rer (Jf l11e business. (d)

Ill a case where a dealer rcqni red lo get himself registered under clause (c) of sub-section (2 ).' has app! 1cd for registration after the expiry of thirty days of the transfer o[businc.s". 1i:c dale on which he applies for registration.

104

(e) where '.1 dealer has T9pli.::d for rcgistrntion Yoluntaril: • Cb) of sub-sect10n i) \. the date of such application • 'Nit.lwut prejudice tc tbe prn;·isions of ~ub-section ( 6) of section 2 i when a

(S) de<1ler has tlhout rea onable cause. fa iled to get himself registered ·sithin the • prescribed Lime as required by s•cl'1J•sectior.. ( l) or sub-section (2) the ,.:;onunissioner may, afa:r giving such d1cakr a reasonable opportunity of being • 11eard, direct hint to pay by ,Yay of pena!t- in addition to the fee payable, cY sum not exceeding rnpees fiye hundr:::d •

Every dealer who at tbe cmmnen:::ement of li'.is Act holds a registration certificate •

under the provisions of the Act repealed by this Act shalL on such

comme:ncemenl.. bed emed. for ail purposes of this Act. to be a dealer registered • and holding a registration certificate under this section • If an: registered dealer or other dealer ,1 ho is required to furnish returns under -• (8) sub-section ( l) of sectiorr i 9 • (a) sells or othersise disposes off his business or any part or place or his business or effects or comes to k110,, of any other change in the ownership • of the business, or •

discontinues his business or changes his place of business or opens a new

(b) • place of business. or

changes lhe name or nature of his business, he or if he dies, his legal • ~\ (,'-) repr~sentauve shall ,vithin the prescribed time, inform the prescribed • autl1odty accordingl_. •

(a) The commissioner shall-(9) • (i) on an application made by a registered dealer for amendmelll of his. registra 10n cerlific.ate in pursuance of the pronsions of sub-section • (8) or otherwise, amend the registration certifical<:- of \l\e dealer or reject tbe application , ·iUun 30 da_ s of the dale of receipt of such • application. after making such enquiry as he deems Cit an.d •

(ii) on being · tisfieo that the registration certificate issued to a dealer requires amendmem with regard to certain particulars specified lherein. •

amend th regis:trati.on ceruficate after gi,ing the dea).er an opportumly • of being heard.

(b) When the registration ccr:tifieate is amended 1mder suklause (1) of clause •

(a) in pursuan ~ of :.m. of the e.. ent -specified m sub-section ( ). sucn amendment · \l tak effect from the date such C\'Cll\ bas 1aken place and ·•

1 all other .ses falling under I.he said sub-clause lhe amendment hall • take effea from he dat of apphc..a 1011 /\n amendment made under. ub- d· a ·hall take effe l rom the d:itc of ord r for makmg •

such amendment •

(10) When- •

(a) a registered dealer discontinues or transfers his business; or •

(b) the liability of a registered dealer to pa: tc1:-; :eases; or •

(c) a registered dealer has been grnnted a regimation certificate bJ rmstake: • or • •

105

( 11) Any dealer, -

(i) whose applicat10n for registration is rejected under clause (c) of sub-section C+r m •

• (ii) whose registration certificate is cancelled under clause (d) or clause (e) of sub-section (10);

shall for the purpose of sub-section (6) of section ." l be deemed to be a dealer. who has failed to apply for registration. but shall not be liable to pay am· penalty under the said sub-section. •

Any person intending to establish a business in the t.lle for Ute pw;po e of Provisional registra- 17. (i) •• tion of intending manufacturing goods for sale of value c eeedmg rnpees one lac in a year and manufacturers. who is registered with the lndustnes Department of the state Goyemment for • establishing a small scale industnal unit Ill the state or , •ho is issued a lkense wherever necessarv 0r has sent a memorandum of information to tile Central • Government to establish a new industnal undertaking in the State under the provision of the Industries (Deyelop nent and Regulation) Acl 1951 ( o. 65 of • 1951) may. notwithstanding that h 1s not hable for registration under section 16 mak an· pphcauon to the commissioner in sucl fonn and manner as may • be pre ribed. accompam d by a satisfactory proof of payment of registration fee of rupees fi e lumdred in that behalf or gr.ant of a provisional registration • certificate under this Act • On the day the appli::ation is recei,-c:d tl1c said authority shall grant the applicant a proY:sional ,e~ist,atio11 c:rtif1c:1te i;; ,he orescribed form • •

(3) The provisional registntion cert1fk te gnmted under \I -section 12) shill tlke

effect from the date on v,h1ch 11 e person had appli d for rcgislration and

,,otwithstanding the proYisions _sccuon 4 every person lto has been granted • a provisiom1l rtgistntion certifi ;ate under this ection uall during I.be penod fram s'Jch cfate till such certificale rem ins in force. be liable to pay tax under

this Act •

•^•

(4) A provisional registration certificate granted under this section shall be in force

for such period as may be specified therein and the provisions· of sub- sections

(9) and (11) of section 16, shall, so far as may be, apply in resp_ect thereto.

• Provided that the commissioner on an application made by rlte holder of such • certificate before the expiry of the penod of validi mentioned in lhe certificate. may for reasons to be recorded in writing. extend the period specified in the • provisional registration certificate b_ a further period not exceerling ix monU on each occasion ..

106

108{.GS) •

• _;\ct he dcen1ed to be ~~ registered dcaL~r • • prT"--~~-2·1l~:. :-e£~~:Lnic,;-1 :~:r~·--'"'···- is ~~ t f•:,Ts:~ . \c ihall get hinii•~lf registered 1J_nde1 sc ,:--_i ·=•n 16. before tbe dat~ en --_ !· : ~ ~: \1-i,: :·r,~ \_·l:;1t)nal registration certificate • i5 due Le ;::xpire or -.,-.;ithirr t~-j~; G::~, = -~1~ <-..e :~J:e C}i ~~\ Lich he becon--ics liable to

p3.y ta:-i-;: ·.1nder section 4. and 011 LL~ i L.!~1~ c-· "i: ~-~ ~r~ 1is1-raii0n ~;~rtlficDte unde.r •

section 16. tl1e prcvisiom;l registratioE ..:--.:r:iL~L: ;:,,!il cease to be in force ,;s

from such date . •

The pre·, is1ons of this section slu!l aL,o :;;)ol·. '·=' ;\ : C..:-:;tn1 GO\crnmei,t or the • ( J

State GoYernrnent or pubE: secto~- 1.111d-~nc:~i::g i:".t::I~d:E5 tc: 25tablish 3uy neYv

1 industrial undertaking in the Sta e • • Explanation - In this section 'che expressi01~ · Ind,1s tria} C dert:11:ing · s hail hm e the meaning assigned to it in claus~ (d) of section 3 of the Ind,:stries (DcYelop • ment and Regulation) Act. 19.51 (No. 65 of 1951 ) . • Registration of per- (1) Every person, liable for deduc,ion of tax at source under section 27 shall obtain 18 . sons liable for tax de- a certificate of registration from 1he commissioner in such manner and fom1 as

duction at source. • may be prescribed . •

(2) Every person required to obtain a cer.:ificate of reg1strat10n under sub-section (1), shall, within 30 days of his becoming liable to pav tax under this Act, apply • for the certificate of registration to the corn.niission':'.r. in the prescribed form and that authority sha!L after such inqnir:, :1s it considers necessary. \\ ithin 30 • days of foe receipt of application. ir the appiication is in order, grant certificate of registration •

Where a person liable for registration h,1s faiied to appl.\ for such certificate. • (3) within the time specified in sub-section (2). the commissioner may, afic'r gi\·ing • him a reasonable opportunity of being heard. impose penalty not exceeding one hundred rupees for each day of delay subject to a. maximum of fiw thot1sand • rupees . • (-t) Where a person liable for registration has given false infomiation in any applicaticr, submitted under this section, the commissioner may, after giving • him a reasonable opportunity of being heard, impose a penalty not exceeding five hundred rupees . •

CHAPTEl~ - VI RETt:R'iS, ASSESSMENT, PAYMEl\'T AND RECOVERY OF TAX • Retun1s . (a) (i) Every such dealer as may be required so to do by the commissioner (l) 19. by notice sef\'ed in the prescribed m mne,·: •

(ii) ever\- registered dealer: and •

(iii) eYen· dealer ,,hose registration certificate h:1s been c:mcelled under • c13usc ,dJ or clause (ei of sub-sect10n ( lO) of section 16 . • shall furnish return in such form. in such manner, for such period, by such dates and to such authority as may be prescribed : •

ProYided that the commissioner may. subject to such terms and •

conditions as may be prescribed. exempt any such dealer from

furnishing such returns and statement or permit any such dealer to •

• •

107

•• furnish the return for such different period, in such other form and to such other autl1ority, as he may direct.

• (b) EYer:, dealer required to furnish returns, under clause (a), shall furnish a statement in such forms and manner for such period, by such date and to

•• such authorit\ as may be prescribed (:::) E- en' de::iler required to furnish a,1dit report under sub-section (2) of section 41 shall send such report of auuit along ,vith the statement referred to in • • clause (b',

(2) If any dealer dis:::o~,ers any omission. error or \Yrong statement .in any return

• furnished by him under clause (a) of sub-secticn (l) he may furnish ;:J revised return in the prescribed manner ~nd 'Yithiri the prescribed time. • (3) Every dealer required to file return under sub-section ( 1) shall pay the full amount • • of tax payable according to the 1eturn as required by sub-section (2) of section

25 or the difference of the amount of tax payable according to the revised return

as required by sub-section (3) ot'the said section and the full amount of interest,

if any, payable under clause (a) or clause (b) of sub-section ( 4) and shall furnish

•• the proof of such payment along with t~e return or the revised return, as the case maybe.

(4) (a) Ifa dealer required to furnish return under sub-section (1), -

••

(i) fails to pay the amount of tax payable according to a return for any period in the manner prescribed under sub-section (2) of section 25; or

(ii) furnishes a revised return under sub-section (2) showing a higher ••• amount of tax to be due tha..TJ. was shown by him in the original return; or •• (iii) fails to furnish return, such dealer shall be liable ,to pay interest in respect of, -

(1) • • the tax payable by him according to the return; or

(2) the difference of the amount of tax payable according to the • revised return; or • (3) the tax. payable for the period for which he has failed to furnish return, • · at the rate of 1.25 per cent per month from the date the tax so •

payable had becomi; due to the date· of its payment or to the

date of order of assessment, whichever is earlier. •

Explanation - For the purpose of this clause, - •

. '

(1) where the period of default covers a period less than a month the • interest p::iyable in respect of such period shall be computed ~~~ .

(2) 'month' shall mean thirty clays. •

(b) If a registered dealer haying furnished a return under sub-section ( l , or 2. revisC'd return under sub-section (2) for any Qeriod and paid the tax payz,.~,:e according to such return or revised return after the tjme prescribed h~,-=~C~==-

•••

108

• 108 ( 107 )

•^• fail s to pa 1..rest along w1Lll such return or re,;ised return m accordauee with the prrnismns of clau e (a). Lile commissioner-shall Le, . Lhe interest liable LO be paid by the dealer and after g1vwg the dealer a reasonable

• opporturuty of being hear may direct him to pay in addit ion LO the ta.· pa-yable or paid and the in rest pavable b) him. by way of penalty a sum • qual to l'\\O per cent p~r month of the ,1mow1t of interest from the date such interest had become due to th ... da 1.;. of ils p~_·mem or to t11e date of • 0rder of assessment. whichever 1S earlier.

(c) lf denier fails \\ilhoul sufficien cu e to compl) with Ute requirement of

•^• oticc fssued under sub ect1on (.) he cotlllillssioner may after giving the dealer area ona I opportunity of ~ing he:.ird, direct him to pa), in

•

nddit1on to :uI) tax pd_ bl or pai b: nm. by, ·a~ of p,malty a sum of one hundred rupees per da_ of default subji.: t lO a ma'Ximum of mpees five thousand .

••

(d) Where,-.

•

(i) no tax is payable by a registered dealer committing a default under sub-clause (iii) of clause (a), or

• (ii) a registered dealer having-paid the tax payable according to a return •

in time fails to furnish the return in time; • The comnnssioner may after g.. mg such dealer a reasonable opportunity l:k:1 g heard direct him 10 pa by way of penalty a sum of rupe ff\ per dtl) of default subject to a maximum of

••

• rupees one thousand . Returns to be fur- Every person registered under section 18 shall furnish a return· in such from, in · such manner, for such -period by su.;:h dates and to such authority as 111ay be

•

prescribed . 20, (1) rushed by a person li-able for tix deduction at source.

•