Sikkim act 005 of 2005 : The SIKKIM VALUE ADDED TAX ACT 2005

,

! SIKKIM

GOVERNMENT

GAZETTE

EXTRAOBDINAHY

PUBLISHED BY AUTHORITY

Ganqtok Monday 21st February, 2005 No- 118

GOVERNMENT OF SIKKIM

LAW DEPARTMENT

GANGTOK

No.5/LD/P/2005 Dated: 19.3.2005.

NOTIFICATION

The following Act of the Sikklm Legislative Assembly having received the assent ol the Governor on^gth day of Nriarch, 2005 is hereby published for general informalionr-

THE SIKKIM VALUE ADDED TAX ACT, 2005,

(ACT NO. 5 OF 2005)

ABRANGEMENT OF SECTIONS

CHAPTER - I

PRELIMINARY

l. Short tille, extent and commencement

2. Definitions

CHAPTER . II

COMMEBCIAL TAX AUTHOBITIES AND

APPELLATE AUTHOFITIES

3- CommercialTaxAuthorities

4. Appellate Authority

1

5. Delegaiion of Commissioner's powers and functions 6- -i-ax Authorities and Appellate Authority to be public servants

7. Indentnliy

CHAPTER.^III

. INCIDENCE, LEVY AND RATE OF TAX

8. lncidence of iax

9. L.evy ol tax on sale I0. Levy ol iax on purchases l ^11. Levy ol tax on containers and packing material

12. Rales of tax cn sale or purchase of goods

13. Levy of tax on iransfer of property in goods lnvolved in the execution of Works Oontract

14. OLli-Put tax 15- inpui tax : 16 Compounding oJ tax liabilily in certain cases

17. Ccmpounding of tax liability in case ol Works Contract iB. lnformalion of awarding oi Works Contract.

19. Deduction of tax at source from the payment to dealer 20.^Tax payable

21. lnput tax credit

. 2. Exporis to be zero-rated

. X- 3urden of Prool

24. Power oi State Governmeni to amend Schedules X" Credit and Debit Notes

2

CHAPTER - IV

REGISTRATION OF DEALERS. AMENDMEIIT

AND CANCELLATION OF REGISTRATION

CERTIFICATES

Hegistration ot dealers

27. Voluntary reqistrallon ol dealers-

24. Security to be iurnished in certain cases-

29. {rnposition of penalty for faiiure to get registered

. CHAPTER - V BETUBNS, ASSESSMENT, BE-ASSESSMENT

AND PAYMENT OF TAX

Reiurns, payment of lax. interest and penalty lnierest on non"payfnent or delayed payment of iax before assessmeni lnterest on non-payment of assessed iax

Exemption lrom payment ol inler:est

lnterest payable by Commissioner

Founding off ol arnount ol tax, interest or penalty Collection of tax only by dealers liabie to^pay tax Scrutiny of returns

Assessment oi tax payable by registered dealers Self assessment of tax-

Assessment of tax payable by dealer other than registered dealers Payment of assessed tax and penalty

Limiiation for assessment

Determination of interest

3

* I ^44.Rectification of misiake in determination ol interest

45. Recovery of tax, p€inalty and interesi

46. Tax Recovery lnspector whom certlficates 10 be forwarded

47. Amendment of certlficates tor tax recovery 48, Valldlty of Certiflcate for Tax Becovery

49. Transmission of Certificates for Tax Recovery io Collector in certain cases

50. Special rnode of recovery of tax, penalty and interest Assessmenl without pre]udice to prosecution for any oifencd

52. Assessment after partition oi Hindu Undivlded Family or dissolution oi lirm and tax payable by a deceased dealer

53. Ref.rnds CHAPTER - VI

ACGOUNTS AND RECORDS

Maintenance of acibunts and records etc.

55.

Tax invoice

56. Electronic record

57. Bequirement to provide lnformation Audit oi accounts

59. Dealer to declare the.name of his business manager CHAPTER - VII

INSPECTION OF ACCOUNTS, DOCUMENTS, SEARCH AND

SEIZUBE AND ESTABLISHMENT OF CHECKPOSTS

60. Maintenance of accounts by transporter, carrler or transporting agent

61. lmpositiorr of pelalry lor ta lL re to issue lax invoice. cash mer']o or bill 62, Production and i[spection of accounts, registers and documents j

is

4

6a Seizure of dealeis accounts 6i1., Entry and search of place of business or any other place

65. Establishment of check posts for inspection of goods in transport lnterception, detentlon and search ol vehicles or carrier and search of warehouse, elc.

67. Stock oi qoods stored in undisclosed warehouses

68. Seizure ol goods

69. Penalty for transporting goods into Sikkim in contraveniion of Section 60

70. Transporter liable to penalty lor transport in contravention of the provisions of sub- section (4) of Section 68

71. Measures to preveni evasion of tax on sales

72. Penalty for concealment of sales and furnishing incorrect particulars of sales and purchases CHAPTER - VIII

APPEAL AND REVISION

Appeal against assessment

74

Suo motu revision by Commissloner

75. Bevision by Commissioner upon application

76. Bev sior by Appellate Autl^o'iLy

77. Review of Order

78. Power of taking evidence on oath

79. Revision to High Court

80

Revlsion or Heview bY High Court o F FEN..#'^I,'J ; JX^*, *

81. Offences and penalties a2. Special provision lor liability to prosecution

83. Compoundlng of offences

CHAPTER . X

MISCELLANEOUS

a4. Cancellaiion of registration under specifled circumstances

85. Beiurns etc. to be confidential

86. Powers to call Jor iniormation

87. Statement to be furnished by dealer, transpoder, owner oT lessee ot warehouse, elc'

88. lnformauon to be furnished by dealers regarding changes of business

89. Additional information io be furnished by dealers

90. Supply ol informatioh by dealers in respect of transfer of goods otherwise than by way of sale

91. Tiansier of busir]ess iJy rcgistered dealer

92 Panial t'ansfer of oJs'ness oy dealer

3:

'egislered - 93. Cancellation of registration and transfer of business

94. Barto proceeding in CivilCourt

95. Manner of payment of tax, penalty, interest,^etc.

96. Power to prescribe raies of fees

97. Power to make rules

98. Saving in relation io sales outside Sikkim, lnter-State Sales, and Saies in Course of lmport or ExPort

99. TransitionalProvisions '100. Bepeal and Savings

101. Power to remove difflculties

SCHEDULES

I Goods exempted from payment^{oi VAT} li Goods liable for'1 7" rate of VAT lll Goods liable lot 4"/" @le olVAf lV Goods Iiable for 4"/. rate of VAT V Goods liable for 12.5% rate ot VAT

6

THE SII(I(IMVAI,UE ADDED TAX ACT,2OO5

(ACl' NO. 5 OF 2005)

AN

ACT

to consolidate the law relating lo llle levy oltax on sale olgoods in the Stale ofSikkim and for matters connccted thercwith or incidennl ihercto

Bc it enactcd by thc Lcgislalurc ofsikkirn in the Fifty-sixth Yearolthe RePublic oilndia as fbllows: -

CHAPTER I

PR-I,I,IMI\ARY

1. Shoft title, extert and commencement:

(l) l his Act may be called Thc Sikkim value Added Tax Act.2005' tr, .e.'cr^(i. olltc t'n'c.'\ik(rm.

(i) Itshallcorncinto lorce on such date as lhe Statc (iovernment may, by notificetion in the Otllcial Ga7-etle, aPPoirll.

2, Definitions: In this Act. unless the context otherwise requires, -

(i) "Act" mcans lhe Sikkirn Value Added Tax Act, 2005 i

(ii) "Appellate Authority" mcans the Sikkim CommercialTaxes Appellale Authoi ity constituted u.dcrsub seclio (l) olscction 4l

(iii) 'appointed day' Ineans lhe datc on which lhis Act comes jnto forcc;

(iv) "assessee" rneans any pe$on by whom tax orany othelsum ofmoney is payable Lrnderthis Acl and includes cvery person in rcspect olwhon any proceedings ullder tiis Act have been taken for Ihe aslessmellt ollax payahle by himl

(V)..i1sscssir]gautho]ity,'mcansanvofl.]celnotl]clowthelankofAssistantConnnjssionelauthorizcd:

Govenlment or by any aLlll'lol ity empowered^by the Covernnent to make any assessrnen! hi/ thc i llllder this AcL;

(vi)'Busincss'inclLrdes-

(a) any traale. commelcc' manulacturc, ol'any adventure or concern in th' n'trrte of h ede' commcrce. rlanufacture' whelher or not su ch trade' commctce' manufacture' adventure {jrconcefil is canied on with the motiveto nrakc gaill orprofiland whelher or not any

7

profltaccurcs liomsuch tr'ade. coft]nelce, manltfacture, adventLLre or concer n il'r-cspcctivc 01 fie lolume.l'rcqucncy, continuity orreg[]rity ol'such lrade, cornmctce. manulactrue. advenlure ucollcern.

(b ) any tfan saction ol sale or p urchase ir con ncction []ilh or anc illrtr] oi illcider lal to s lLc h trade. commerce, manulactLrre, adve nture of concern rettrrcd to in sub cl ause^{( a) :}

(c) ary lransacLion invol\,lng goods, whcther original o| secondhand, u nscN iccable, obsole te or discarded goods, mcre scrap or lvasle materjal; and

(d) any transaction involving goods obuined rs wxste products or by-producls ir the course olmanLrlactulc ol processing olother goods or mining or genelalion or disIibution oi clectical enel8y or any othel ibnn ofpower;

(vii) "capital goods" rneans planL, fiaclinery, dyes, tools, and cqu\rnent uscd in the process ol' rnanufacturing, excluding civil slructul es and such goods as mlly bij notifl ed lllnr l L nc r, rirn(i (vu) Cornmissioner" means fieCor nissioner olcorxnercialTil\cs and ircludes, Lrnless the contexl rcquires otllerwise, theSpecial, Addilional, Joint.Deputy and Assistarlt Commissirllrer of ComnercialTaxes appointed under sectior 3;

(ix) "Ccnhal Aci' means the Centnl Sales 'Iax Ac!. 1956 (Act 74 ol 1956);

(x) "Conractee" means any peNon for w hom or lirr whose benellt a lvorks contracl is executed i

(xi) "Conlractor" means any person who executes, eithcr himself or through a su Il cor rtractor, a works conlract:

(xii) "dealer" means any person who, lvhether regu larly or othe.w ise, in the course o I b usiness buys, sells, supplies, dist iblrtcs or does mythlrg incidenlal to such buyi rg, sell ing, stLpplying or di stri blrtinEl ol goods, direcdy or indirectly, whethr:r tbr crsh or 1br deitred paymcnl ol lbr conxnission, rcmuneration o. olher valLratrle consideaation iuld incltLdcsl

(a) a casual b'ader;

(b) a conmission agent, a broker or r dclcredere agent or an auctioleer or any other lercantile agent, by whatevername called,

(c) a non-resident dealel or'an agent ofa non-resident dcaler or a local brunch l]1'a f itr or compan y or association or body ol person s \vhcthc r incorporalcLl d Dot. sjlurted oulside rhe Stare:

(d) a person who. whether in the coulse ofbusiness or Dol,

8

(i) sells goods produccdby hjm by manulactxle. agrjculture, hortjculhn-e orothe]8ise:or

(ii) tmnsfers ary goods, whetlter rn pursuancc ofa contmcl ol.ltot. lor cash or iordelerred payment or lorothcr veluable considemtion:

(iii) supplies.by!vayol, oras pan ofany sewice or in any other rnanncr whatsoevcr. goods being food oranvothcl arliclcs forhuman consumption ol anydril* (whcthcr or not intoxicaling), u4reresuch supply orscrvice is lorcash. dclcrrcd payment or oLlrel' ..1-r:rl'le -Jr.i,rcr-rlior:

Ilxplanation I - Every pcrson who acts as an agent on behallola dealcr residing outside the State and huys, sel1s. sUpplies oI distrlbutes goods ir the.State or acts on bchall of such dealer es -

(a) acommissioD agcnt. blokcr, factor-. a delcredele agcnt. an &uctioneer orotlter meirantilc agent, by \\,I]atever narne called; or

(b) an agenl lor handl iDg good s or docu menis ol title to goods; or

(c) an agenl lor the colleclion or lhe paylnent olthe sale price ol'goods or'as guar'anloI for sLlch colleclion or payment and cvcrJ local branch ofa fimr or-corrpany situated outside the Slatei shall be dee led to be a.lealerlorthepuqroseolthis AcL.

Explaration II- The Centralor'lhe State Govcrnment or an,v oftheirdepa ments orolfices \r,hjch, \\'lrelher or not in thc coulsc of business. blry. sell or-supply lor commission. rclnuneration or llor othe[ viluable consideration. shall he deemed to be a dealer lor dte puryose ofthis Act. Explanation III - Any cornmercial or financial eslabllshment inclftlirg a hank. an insurance cornpany. a lransport company an(1 thc likc whloh whelhcr or noL in lhc course olbusiness buys. sclls. supplies or- disrributcs goods dircclly or olherl|isc,Ior cash or for delencd payment. commission, rcmuneration or for other valuable consrderation. shall be deemed Io be a dealer-for Lhe pueose of this Act;

(xiii) "goods" means all kinds ofmovable propcny (othcr thxn ncwspapcrs,.ctionable clairns, electicil)r, stocks and shares and sccul'ities) and includes livc stock. all nutefials, connnodities and articles and every kind olprope(y (whedleras goods or in some otherfbrm) involved in the execution ola worts contmct. and allgrowing crops, grass or lhings atlached lo or lonning pa ol'thc land \vhich are agreed to be severcd before sale or under the co.tract ofsale; (xi,,,) "Govemrneri' means lhe Govemmenlof Sikkim:

(x\, "gross tulnover". means-

9

(a) ofsale ofgoods' aggregate ofthe sale prices received or recejvable by a dealer

in respect

onsalesaSdefinedunderctause(xrix)andincludessaleofgoodsmadeoutsidetheState olinthecourseofinter-statetade0ICommerce0Iexp0rtbutdoesnotinclr'tdesalepdce ofgoods which have bome the incidence ofpurchasetax

under this Act;

paid or payable by

(b) for the puryose oflevy of purchase tax' aggregate ofpurchase prices

given period io respect ofpurchase of goods or class or descdption ol

adealerduring^any

goods which are liable to lax underthis Acl; price escalation in respecl

ExplaDation : The amount received by a dealer on account of price variation or

yeal during which

ot supply of goods shall be deemed to form pan of gross tumover of the tinancial of sale

it is actually received;

(xvi) "input" means goods purchased in the course ofbusiness - purchases of

(a) tbr use in manufacture of goods including packing matedals but excluding

Petfol, diesel and natural8as'

and

(b) lor^use as capiLal goodsi to another

(xvii) "input tax " means ihe rax paid or payable under lhis Act^by a registercd dealer

in the course ofbusiness tbr rcsale or lbi the rcgislered dealer on the purchase ofgoods

manul.actureoftil,(ablegoodsolforuseascontamersorpackingmaroialori.ortheexecution of works conftrci;

with its gununatical variadons ancl cognute expressions

means prcducing'

(xviii) "manutacturc", or otherwise

making, extracting any goods or altedng' omarnenting' iinishing' assembling

oI any goods' bLrtdoes notinclude any process or mode ol

processing, fteating or adapting

manufacure as may be notilied from dme to time;

(xix) "notjfication" means nodfication published in the Offlcial Gazettei

or chargeable in respecr oi sale or supply of goods made

(xx) "otltpr.lt tax" means the tax charged bY a registeied dealer;

(xxi) "Pe6on" includes:-

(a) an lndividual;

(b) ajointfairily;

(c) a company;

10

(d) qfim;

(e) an association of pemons or a body of individual, whetl'le[ in corporated o] notl (0 the Central Cov3rnmenLor tl'le Govemment ofSikkim i,r the Covemment ofany other Staie orUnionTeritory in hrdia;

G) alocalautlrcdtyl

(xxii) "place ofbusiiess" means any place where adealelsells any goods or keeps accounts relating to sales or purchase ofgoods and includes any walehouse ofsuch dealer, any place where a dealerproduces or manufactures goods. any place wheL'eir thegoods aie stored orused fol transpolling the goods;

(xxiii) "prescribed" means prcscdbed by rules framed under this Aat;

(xxiv) "purcha,se" means aly tmnsfer of piopelty in goods to fie pelson making the purchase for cash or defered paymenlor othervaluable consideration Lrtrt does not include a tmnsfer by way of moftgage, hypothecation. charge orpledge;

(xxv) "purchase price"rneans theamountpaid orpayableby adealeras valuable consider"tioo in respect ofpurchase ofgoods and includes -

(a) any sum char ged for anything done by d1e vendol in.espect ofthe goods at the time of or' beforc^the delivery thereof:

(b) tmnsport costs or freight. ifany;

(c) tlade commissicn, ifany, by whatevernamecalledl

(d) clearing, foMarding and handling charges, if ary;

(e) insumnce charges, ifany:

(0 cost ofpacking, ifanyland

(g) any othercharges orcosts otherthan those specified al,oveifsuch chal-ges oI costs are incuredorpaid in rcspectofgoods so purcha-sed and includes any amount payable by a purchaser for anythjng doneby the seller in respect ofgoods at the time of or beforc delivery thereofto the buyer ifary of the costs, charges. taxes or duties as aforcsaid alc incurcd in rclation to Lhe trans l'er ofpropclty in goods;

11

I- Purch$e price shall not include litx pad or payable undel this Ac! by a detler in respecl Explanation oI any such purchase.

not include the alnount paid or

Explanation II -^For the puryose olthis clause' purchase price shali

payable by lhe plLrchaserby way ofnol1-letunddble deposit whelher by way olasepar'ate agreemenlol

olgoods'

not in connection with or incidental to or ancillery to the said pllrchasc ().wi) 'Repealed Act" means suchplovisio s .)1'sikkim Sales Tax Act' 1983inrespectof corxnodities/prodLicis as wi11be dealt with under the provisions of lhe

Sikkim ValLre AcLrled

'l'ax Act,2005 repealed u der section 100:

(xrvli) "Ru1es" meansther[lcs made underthis Acl:

or othel

(xxviii) puyment "Sale" means arly tmnsfer ofpropefiyⁱⁿ goods lbrcdsh' delened valuable considention and includes:-

goods Iorcash'

(a) any tansler, otherwise than ir pursuance ol a contracl oI propefiy^{in any} defened payment or other valuable consideration;

(b) any delivery olgoo.ls on hie-purchase or any system ofp?ryment by instalmen!;

(c) way ofor as part ol any service or in any other manner whalsoevet ol

any supply by

goods. being Iood or any other rrticle tbr human consumpiion o' Jrry drlnk (whether or

rot intoxicating), whcre slLchsupply orseivice is tbrcash' dcferrcd paylnenl or oiher

valuable consideration;

(d) any supply ofgoodsby any unincorpomtecl as sociation or- body oipe$ons to a member

thereol for cash, delerred payment or other-valuable considelation' and such u ansfer'

goods by the person

dclivery or supply of any goods shall be deemed to be a sale olthose or bocly ofpersons making thc renster' delivery or suppl)'or u nincolporated associdtjon adapurchaseolthoses,orlbylhope$ontowhomsuchtlansfil,deliveryorsupply is madebutdoes not inclucle a mortgage' hypoihecation' chiugeorpledge' Explanation - A saleofgoods shallbe deeme'lto t4ke place inside the Sikkim-

(a) ifthe goods are within^thc State of Sikkim'

(i) oispeciflc or asceltalned goods et the time lhe contract ofsale rnadei andin the case

(ii) in rhe c ase ot' unasceflaincd or lilture goods atthe time oftheir appropriadon to ihe

contlactofsalebylhese]]er,whcLheltheasscntolthebuyertosuchuppropn.rtionis priol or s ubsequeni t' the appropriation;

12

(iii) where there is a single conlract ofsale in respect ofgoods situated at more Lhan one place, then the sale shall be deemed to have Laken place as ifthere is a separate oontract in rcspect ofgoods al each such places;

(xxix) "Saie pnce" mearls lheamountofvaluable considemtion received orreceivable by adealer for the sale ofany goods less any sum allowcd as cash discount, according lo the practice Dolmally prevailing in the adebulinclusive olany sum cl]arged for anything done by fiedealerin respect of the goods ol sel.vices at thc time ol or befole delivery thereof' excise du ty' special exciseduty orany other duly orlaxcs except the lax imposed underthis Act;

(xxx) "schedule" means theschedulcappended lo this Acl and the description ofany goods spccified thercin shallbe subjectto the exceptions' resl ctioos and condilions. if ary' and the application ofthe provisions ofthis Act, relerring to the Schedule shallbe subject to the circumstances if any, mentiored therein gener-a11y oragaiost such goods:

(xxxi) 'section " means seclion of llle Act; (xxxii)"Staie Cc\,emrrenf'rneans the Govem ent ofSikkim; (xxxiii) "tax" means tax levied and payableunder this Act;

(xxxiv) "taxablegoods" means all goods except lhose specified in Schedulel;

(xxxv) "Tax Recovery Inspector" means aTax Recovery Inspector aPpojnted by lhe State Govemment under the provisions of the Sikkim (Collection olTaxes and Prevention of Evasion ofPayrnent olTaxes) Act, 1987(ActNo 7 of 1987);

(xxxvi),.taxab]etumover,'meansthetumovelonwhichadealerisliab]etopaytaxasdefennined after making such clcdLlctions frcm hjs tota]tumover and in slrch lr:ranner as may be Pr-escribed;

(xxx;ii) "Value Adde.l Tax or VAT" means a tax on sales orpurchases lcvied under'lhis Acl; (xxxviii) "works contract" includcs any agrcement lor caflJing out lorcash or delcned Paymenlor olhelvaluableconsiderdtion,theassemb]ing,co]lshxction,building,altering'manufac&lring, ng of

processing, fabrication, jrstallarion, fiiling ou!' improvernent rcp'tir or ! o mrnissioni anv movable or imn'lovable ProPel1Y;

13

()lx,{ix) 'Year" means lhe lln anc ial yeal beginrlingliorn l'' AprlLandendingo Sl"M'rrclr'

CITAPTER II

COMMEI{CIAI, lAX AU'I'HORI'I'IES AND APPELLA LE AUTHORITlI]S

3. Connuerciitl 'lhx Authorities. '⁽ 1) Tlrerc shallbe the C'ommissioncr ofcon lercialTaxcs to be appointed^by the Covcmmenl^who shell htve all the poweN and shallpcrliⁿ 'rll lhe duties confe|red ot imposed upon himby or undcrthis Ac!

(2) The Colnmissioner shallhavc suPerintcndencc over all otlicers and persons enrl'oyed in lhe (\C. Lr:ut Ol'l_ r, A.t:rr'ol cCO.lrl.s.OlL'an':)._

(a) call for returns ltom such o1}lcerc and persons;

(b) make and issLte gener al lules and specify I'ofins tbr regulalil,]g thc practice and procedure lo be fbilowed by such ofl'icers and penorlsi

(c) issue such ordcrs, il$lrrctions anddir-ections to such officets ud peNolrs as i! mty deenl lit, ti.r rhe proper rdmirlislration ofthis Act.

(3)^(a) -l he G,Jver rrlrlent shull app'rinl thc Speci'rl Comrnissioner, Arlditional Commissioner^{an( I} as many Joirtt Comnlissiorers. Deputy Commissioners, Assistanl Corl]mis\iLrn(l \, CoormercialTax inspectors aDd such otllerpcrsons as it thir)]( flt lbr the purpose o1' pe brlrxrrg thclulolions respeclively assiSncd to Lhem by orunderthis Act' (b)Such ofriccrs andpcrsons shall perfilnfie s d tunctions within such Ioculiirnrrs iLs tbe GovernDlert or ary allthodty or olllcer empowered by iI in this behalfmay assign to fienl'

(4) All officers and persons employed fbr the execution ofthis Act shallobseNe follow the 'nd order-s, instru.lrons and dilections cl the oflicels supedor to them:

(5./ ,"(l o-r L..iLJr'rlnir) o, '.Je''rr^r'tir 1:

(a) transler any case or cases relaLing to any assessce or class ofassessees Peuding belb'e^an assessil'lg , rlthodiy 10 another $sessing aLllbodly havingjurisdiction to derl wilh \rrch 'rse or casesl ol

(b) specify any one ol lhc assessing rtrtholitics hrvingluILsilretion uveL cniut:rwh|:hshall deal with any case or cases lelatirg to any assessee or class ofasset_sees'

14

(6) Where any case is transfene.l to ar assesslng autho tyundelchLtsc(a)ofsub-section(5)' slrch asscssing auth.)lity may dealwith thecase eiLherdenovo ol ftomlhe stagc at \\'hich it was transfen'ed.

4. Appellate Authority⁽¹⁾ The Govemrrcnt shalL apPoint the Sil or under

this AcL.

(2) The Appellale Aulhorily shallbe^a Persoll who is or has beel' an officer nothelolv the runk of the SccrctarJ to Goverllmentof Sikkim 2u'lhas served for a mi lmllm peiod oltwo ycars in

the depatlneni of CPmmercial Taxcs'

(3) Thc tcrm oioIficc. filling ofvacancy end otherconditions oljelf ice oflhe Appcllate Aull]oriiy shall be such as may be prescrihed'

(4) The limclions ollhe Appellale Aulhority may bepedbmed accordance wilh lhe provisions'n of tl'lls Act and the rules madethel eunder'

(5) The Appellale Authol ity shall, with the prcvious sanction ofthe Govemment make regulntions consistent wlth the provisloris ofthis Act and the l-ules made lherellnder lor rcgulaling ils

lroccdr.rc 11u ll c d:'po.al 'l i'' orr''ne's

(6) The regulations acleundersLlb seclion (5) shall^be pu blisned in $eOlficial Gazette' 5, ol Commissioner's powers and lunctions^- Subject to such resl ctions^andI)elegation conditions as may be lmposed, llle Connnissiorlcr maJ' by o'del in $'riting any of lris

'lelegate

appoinled

powen and lunctions under thi-c Act and the rules made lhereunder to any person

under Section^3.

6. Tax Authorities and Appcllate Authority to be prblic se! vants'^- The Commissiorrer^and undersection 3 inclu'li g the membcr oI the APPellate Authoity sh^ll beall otficers appolnted deemed lo be public se ants within lhc meaning of seclior' 2l of Irdinn Perri^I ( lo'le' I86l)

(:15 of 1860).

7, any Governmcnl Ildenmity.^No suit. proseculion or other legal proceedings 6hall lie against - sen/anlemployed for execution olthe provisions of tllis Acj-and

rules made lheri:luder fol

anything which is in good faitll done ol intcnded^to be done thereunder'

15

C}L{PTER III

INCIDENCE,I,EVY AND RATE OF TAX

8. Incidence (,l (ax

(1) Every dealer, -

(a) whose gr oss tumover of s,iles duing the year irnmediately preceding the commencement of this Act, -

(i) who has been liable inrmediately before the appointed day to pay tax under the

. Sikkim Sales Tax Act, 1983 or the Central Act, or

(ii) whose gross tumover duing a year fi$t exceeds the taxable llr i on dle day immedialely preceding the appointed day, and

(b) who is in possession ofa rcgistration cedflcate under ihe Sikkirn Sales Tax Act, 1983 before the appointed day and to whom c)ar]se (a) does notapply, shall be liable to pay tax Lrnder$is Acton a1l sales eflectedon or-idier the appoinred day.

(2) Every dealer on whom sub-section (l) doesnotapply shall, ilhis gross tumolerofsales calculated from Lhe commencement of any yeat exceeds the tixabie limit at any lime within such year, beliable to pay ta,\ underthis Acton all sales, ellected on and from the date immediately 1b1lowing the day on which such goss turnover ofsales fustexceeds the taxable limit

(3) ln this Acl, theexplession "taxable limit" means in.elation to anydealer

(a) who impolts for sale any goods into Sikkim, lbr himselfor on behalf of his principal

NIL

(b) who manulactures or prodlLces any Soods for sale Rupees 2,00,000/-

(c) who is engaged in any other business other tllan clauses

(a) and (b) Rupees 2,00,000/' ,

(d) involved in the execulion ofworks conffact . . . Rupees

1,00,000/-

(4) The State Gove.rment may, by notilication in the Olficial Gzzette, increase the taxable liFit, in the case of any class of dealers, not exceeding rupees tiliy lakhs, from time to tiEe.

(5) Every dealer who has become liable to pay lax under sub-section (1) or Sub-seclion (2) shall continue to be so liable until the expiry ofthree consecutive yea6, dudng each of which his

10

gross tumover ofsales has laiied to exceed the taxable limit o. sltch fu her period after the dale ofsuch expiry as rnay be allowed by the general or speclal order notllied by thc Coinmissioner and on thc expitl ofthis period hjs liabjlity to pay tax under sub-section (l) or sub section⁽²⁾ shallccase.

Expl;ination - For thc puilose olsub-section (5) in computing the pedod ofthree consccu0\ e Jrecr\ ln rcspccl oI a dealer !vho has hecorie liablc to pay tax undcr sub-seclion ( i ). thrce yeers which expired betbrc the appoinred day during lvhjch or each ofwhich the gross tumover fai led to excccd the taxable llmitshall nol bc includcd.

(6) Evcry dealerwhose liability to pay tax under sub-section (1) or.sub,section (2) has ceased ufder sub scction (5), shall, rlhis gtoss turnover olsales calculated from the commencement ofany ycar again exceeds the taxable limlt aL any rime within snch year, he shallbe liatrle to pay such tax on all sales. eflected on and from the date immediately following the day on which such gross tl]moler olsales agair] firslexceeds the taxable llmit.

(7) The Co.lmissjonershall. alter making such enqujry as he may think necessary and afterglving lhe dealer an opporlunlty ofheing heard, fix thc date on and fron which such dealer shall becorne Iiable 1o pay a tax Lrndcrslrh scction (2) orslth-section (5).

9. Lcvv of tax on snle

(1) In this Act. thc expression "Laxable tun]over ofsales" means. in the case ofa dealer.who is liable lo pay tax on sales ofgoods under scctiot] S that part ofhis gross tumoverofsales dllring any pedod which remains allerdeducting therefrom hls tumoverofsales du.ing that pedod as Iepresents;

(a) salcs ofgoo.ls urhicll arc notliabieforany tax specified in Schedulelol section 12;

(b) sales ofgoods, which are shown to the salisfaction of tie Commissioner. have not taken piace irl Sikklm or have taken place in the course ofintel,State trade o,"commerce wjthin the neaning olthe Central Aci or in the colrNe ofimpon ofthe goods inlo orexpofi ofthe goods out of, the ten-itory oflndia within lhe meaning ofsection 5 ofthat Acr:

(c) such oihersales on such conditions and restrictions as ma-vbe prescribed.

(2) (a) Where thetaxabletumoverofsale is calculated without a separate amountoldle considemtion being idcntifieC as payment oftax, lhe taxabie tumoverofthat sale is the total amount of the consjdetation paid without reduction forthe tax multiplied by the lax fr,rction

11

(b) For thepurpose ofthis section, the "tax fiactiou" shal(be determined- for ary sale. by upplying the [or-nu):t:-

Pr = P/ (1+R)

Where P1 is the aggregate ofs[ch sdles prices exc]usive oflax:

-

P is the aggregate oisuch sales prices irclusive oftax. and ,€

= ^R is the rate of tax applicable to such sales.

10. Levy oftax on purchases- € Every dealerwhois in the course ofhis business purchases any goods_ E i

(i) from a rcgistered dealer in the c cumstances in which no tax undcr section 9 is payable by that registercddealet^on the sale price ofsuch goods, or :'

(ii) from any other person, shallbe 1iable to pay tax oD the puchase ofsuch goods, ifatter such purchases. the goods are not sold within the State ofSikkim or in the couNe of inter State lrade ard commerce or in the course ofexport out of the territory oflndia but are-

(a) sold or disposed off otherwise, or

(b) consumed or used in the ma[ufacture ofgoods dec]ared to be exempl from tax under this Act,^or

(c) after their use oI consumption in the manulacture ol goods , such manulacturcd goods are disposed off otherwise than by the way ol sale in the State oI S ikkim or in the course of inter-State fade and comrnelle or expofi out ofthe tefitory oflndia; or

(d) used or consumed otherwise, and such tax shall be levied at the same rale at whichtax undersectio[9 would have been levied on the saleofsuch goods within the State on thedate of such purchases. 11, Levy oftax on containers and packing material-

(1) Where any goods are sold incontainers or packed in any packing matedals, the rateoftax applicable to such conlainem or packing materials shall, whether lhe pdce ofthc conLliners or packing materials is charged separately ornot, be the same as those applicable 10 the goods contained or packed therein:

t2

18

(2) Wherc such goods are exempt frcm tax, the sale olthe containers or packing matgrials shall also be exempt flom tax.

12.

Rates oftax on sale or purchase of goods^- The tax payable by adealeron his taxable tul nover shallbe. in so far as such turnoveror any part theleof. relates to.

(a) lhe goods specifiedin Schedulel^Nil

(b) the goods specified in Schedulell

1 per cent

(c) the goods specified in Schedule III

4 per^cent

(d) thcgoods specified in SchedulelV

4 percent

(e) the goods specltied in Schedule V

I2.5 per cenl

13. Levy of tax on transfer of property in goods involved in the execution of Works Contract'-

'

( 1 ) Ilvery cleaLer shall pay for each year, a tax under this Act on his taxable tumover for h-ansfer of propefiy in goods (whetheras goods or in someotherfom) involved in theexecution of \r,orks contracl detemlined at the utes specified for the same goods in the Schedules mentioned .i.ecrion^l2:

Provided lhat all amounts towards labour charges and other like charges nolinvolving any ransfer of^pr operty of goods actually inculed in connection with the execulion of works conkact, shall be allowed to be deducled flom $oss turnover olsuch dealer in detennining his taxable filmover

(2) GWhere the doaler pr oves to the satisfaction of the prescribed autho^ty that rax on the tumover oigoods supplied by him in tho cor.ll sc ofexecution ofworks contract, has been paid by his sub contractor, the dealer shal1 not be liable to pay tax again on the tumover of such goods '

(3) Wh e1c a sub con ttactor proves to the satisfaction of the prescribed authority that the tax Ieviable under sub-section (l) has, actually been pajd by the dealer (his principal conracior) on the tumover ofgoods supplied to him by the deale' in the coul se ofexeculion ofworks confact the sub-contmctor shall notbeliable to Pay lax again on lhe tumover ofsuch goods 13 s

F"

fl

g

i

i

19

G

(4) A dealer shall pay foreach year, a tax under this Act on his taxable turnover in respect ofthe dght to useany goods (whether or not fot a specitied period) at the lates specitied in the Schedules undersection 12 for the samegoods had they been sold otherwise than by the

rcniler oflhe right lo use fiem:

Provided lufther ifthe transfer of the riSht to use any goods is made by a dealeron morc than

oneoccasion in ayearto the same or differeflt party, the tax shall beleviab]e on each such occasion'

Explanatio[ L- For the puposes of this section, the transfer ofpropertyⁱⁿ goods or lransfer ofdght^to goods for any purpose (whether or not for a specified period) shal1 be deemed to have taken p lace

use any

in silikim if the goods transfened are within the state at the time oflheil sansler or use application oI

the agreement for the

appropriation for the execr]tion ofworks contract, inespective olthe place where works contact is made and whether the consent ofthe othel pafiy, priol or subsequent to such^use,

application or appropriation has been obtained or oot'

rontrrrt^is

Explanation II.- The levy of tax under this section shall be made whether the works executed fully or partly during a year or abandoned or terminated befoE completion

(5) Every person making any payment to contractors executing the works contract shail deducl such amountinthe form and manner as maybeprescribed as the tax deducted at sourceat

E

two^per cent or not exceeding eight^per cent of the said amount' as the state Govemmentmay

E

bY noiifi carion.detrrmine

14. Out-put teL{'

(1) Output tax in relation to aregistered dealer means the t&x payabie undel this Act in respect of any sale ofSoods by th4t dealer in the course ofhis business'

(2) Subjectto the prcvisions ofsection 20, adealer shall be liable to pay the output tax under this Act which shall be levied on the taxable tumover at the rates specified in the Schedules under

E

E

section¹²

15. I puttax - F lnput Tax in relation to a registered deaier means &e tax charged under this Act by the selling mnnufacturing or i

dealer to such deaier on the sale to him of any goods for lesale or use in proces'ing olgoods for sale ^!

;

t4 j

20

16. Compoundillg oftax liability in certain cases -

(1) Nolwithstanding anything to the contrary contained in this AcL tl'le State Govemment may' by notificaiion andsubjectlo such conditions andiestdctioDs as may beprescribed' permitany c]assollegisleleddealelswhosegfosstumoveldoesnotexceedthelimitspecit.iedinthe notificaiion lo pay in licu offie lax payable by them. an amount calculated at such rate not excecdiog tbur'percent ofhis gross tlnnover as may be specified in the notil'lcadon issued in rfl. behi{[:

Provideal that no such shall be granted to a manufacturer or a person who impo s anyPcrmission goods lrom any place outsidij the State for tl'le puryose ofhis businessl provided fufiher that rhe amount so specitied shall be in addition to any tax that may be payable by the dealer under section^10.

(2) Dealers to whom the provisions ofsub-seclion (i) apply shall'-

(a) nolcharge any tax or the saleofgoods specified in Schedule I

(b) not charge in excess ollhe rates specified in the nolification issued under sub-section⁽ lJ' and

(c) rotbeentitled to issuetax invoices in respectofsales effected by them

(3) Ifreasonable groundsexists tobelieve thal the deal er was noteligible Lopaytax al afixedrate under sub-seclion (1), the assessing authority shall' withoutp'ejudlce to any action which is or may be taken under section 81, impose a pcnalty equivalent to three times the amount oftax arrived al after applying the rate specified under section l2 to the gross turnover ofthe dealer after deducting ti'le value ofsales ofgoods mentioned in Schedule I ofthat sectionl provided thatno orderunderthis sub-section shallbe passed without giving the dealer a rcasonable opportunity olbcing head.

1?. Compounding oftax liahility in c'se of Works Contract

(l) Nolwithstanding anything conlained in sections 9' 11' 12 or 13' every contractor rcfened to in clause (xi) ofsection 2 may, subject to such restrictions and conditions and in such rnanner as

may be prescribed' at his option, instead ofpaying tax in accoldance wjlh section¹² pay' 0n

the totallalue ofeach ofthe works contnct executed by him, a lump sum tax' by way of

15

composition, attherateoftwo pelrentorat such rcte notexceeding litteen percent, as thc 5nte L,overnment mry. ltom trme tu l'^nc. by rtutirii.rtion. spccrty:

Provided that in case ofcancellation ofthe permission gLanted tbr payment 0f lumpsum tax by wlly ofcomposition, the provisions olsections 9. 10, 11 and 12 and rules made thereunder shall apply.

(2)

A contr actor, exercising option under sub-sectio,1(1) shall, so long as the option remarns rn folce, not be required to maintain accounts ofhis business underthis Actorlhe rules made tliereunderexcept the records in original of the wor-ks contract, extent oftheirexeculion^and payments received or receivable in rclation to sllch works conlract executed or under execution.

(3) The State Govefinentrnay plescribe thatevery person or any specif'1ed class ofpersons, making any payment 1o contaclor who has exercised option underthis section. shall deduct towards paymentoflump sum ta-r, by way ofcornposition at the prescribed late or mtes fuoln the contl actor on account ofthe works contracl executed by him and remit the amounts so deducted to the State Golernment.

(4)

lfany personfailsto deductorhaving dedocledlails to remil tothe State Government widrin the prescdbed time, the amountdedlrctible under sub-section (l ) and sub-section (3), shall be liable tbrpenaity ofa sum notexceeding twice Lhe amount deductible.

(5) The amountdeductjble and actuallydeductcd under s ub-section⁽³⁾ anclsub-sectiou⁽⁴⁾ shdl be deemed to be a tax for the pu[ose ofthe Sikkim (Co]iection ot'Taxes and Prevenlion ot' Evasion of Payment of?rxes) Act, 1987⁽⁷ of 19E7).

(6) The assessing authority may,1br the purpose olascertaining the deduction ol paymenl ol't.x ill appropriate manner and tbr evaluation thercof, rcqllire any contractor, including a conractor not registered under this Act, to produce before him any oftherclevani documents maintained by the contactorand or to fun]ish any jnfolmation connected with thc wor'ks executed by such conl.actor', subject to sub-section (2) ofthis sectlon, and the conractor shall comply with such requirementi.

(7) Subject as aforesaid, the relevant documents shall, at all reasonable times, be open to inspec t ion, search ard seizure, ifneed be, by the assessing authodty or any percon rppoirted lo assist him under sub-section (3, ol5ection J. ^E

:

i t6 :

!

I

18. Information of awarding of Worl(s Contract.

(1) Any person enleri n g r n to eny contract or lelter of in tent wilh any contraclor fol lrallsfer oi property in goods (whether as goods or some olher fonn) nlvolved in the execution ofworks contracl shall lurnish within filieen days fiom the date ofs,gning olthe contract or letter of inlentsuch information as may he prescribed.lo the a-ssesslng authoily underwhosejudsdiclion the conlractor's place ofbusiness is situated.

(2) Fallure to do so shallentaila penally not excecding five hundred rupees pelday ofdefault alter allording such percon a reasonable opporlunity ofbeing heard.

19. Deduction oftax at source from the paymeDt to dealer

(1) Nolwiihstanding anltl'ring contained in any other Iaw or contact to the confary any person or' any specji'ie.l class ofpersons rcsponsible io pay eny sum to any de erforsaleorsupplies made Lr! itto the Stale or Ccntfal Government including depallmcnt ofother States situaled in Sikkim. anl localbody, any authority orcorporation established by ot underastalule^and any Statc or Central Govemlnent undel taking shall, at the lime ofcredit ofsuch sum to lhe account ofthe dealer or at the time ofpayment thereofin cash or by cheque or drafl or any orhermode. dcdrrct the amounl oftax from the bills or invoices, at the rate ormtes as specified in the Schedules under Scction^12.

(2) Theamountoftax so deducted shall be deemed tobethe amount oftax collected by the dealerfrorn thestatc or Cenral Government Depa menls lr aforesaid organizaiions or authorilies, as the cane may be, within the nreaning ofsection^8.

(3) Whilc rraking deduction under sub-section (l)' the deducting autl]ority shallgl-anta cedificale to thedealer in the prescribed forln and shall send a copy lhereofto the concemed assessing aulhodty within whoseiurisdiction such saleorsupply is made.

(,1) The clealcr shallfurnish an authenticated copy ofsuch ceftifcale to lhe concemed assessing aulhodty alongwith lhe ieturns as proofofpayment of tax

(5) The amount deducted from the bills o. invoices shallbc deposited to the credii ofthe Stare Govelnment within filteen days from the date oisuch deductions jn such fotm or r:hallan or through book adjrlstmentas may beprescibed

(6) The dech-rcting aulhcriry shallsupply a copy ofthe form o1 challan or documenl ofhooks a.ljuslment. as the case may be, showing the detaiis ofdedr.jtion oftax to the concemed i$sessing authodty.

l1

23

(7) The reminance or deposit ofdeducted tax to the creditofthe StateCovernment shall be adjusted by the concemed assessing aulhority towa]ds the tax liability ofthe dealer and sl'rall constitute a good ard sufficient discharge of the liability of the deducting authodty to the dealer 10 the extent ofthe amount remitted 01 deposited.

(8) Ifmy person fails to deduct, orhaving deductcd, fails toremit to the State GoventDent wilhin the stipulated time, the amountdeduolible under sub-section (l), he shall be liable tbr penalty ofa sun not exceeding twicethe amoLlni dcductible:

Provided that no penalty underthis sub-section shall be irrposcd unless arcasonable opportrnily oibe'ng heiLrtl rs given to such person.

(9) The amount de.duclible andactually deducted under sub-section (1) and pen:rlty levied under' sub-section (8) shall be deemed to be a tax for the purpose ofthe Sikkim (Colleodon oflhxes and Prcvention of EvasioD ofPayment ofTaxes) Act, 1987.

20. Tax payable -

(1) The net tax payable by a registered dealer Ior a qualter shall be the difftrence betwcen the output tax, if any, and the irpLrt tax, which can be determined fiom the fbllowing tbrmula:-

Ner rax pxyable = lO+P-l^,

Where 'O' denotes the output tax payable for iny tax petlod rs detelmined undcr section 14, 'P'denoles the purchase tax paid by aregistered dealer for any ta,l peiod ls determinecl under section 10 and 'l' denotes the input tax paid or payable for the said quafler as detcrnined under section 15.

(2) The net tax payable by a dealer liable to pay tax but not registercd under this Act for a.luarter shall be equai to the output tax payable for the said quarler as detemined under seclion l4-

(3) lf an amount calculated under sub-section⁽ L) is a negative quantum in a quanct-

(a) the same shall be adjusted against the tax liability, ifany, under the CentralAct, at the option of the dealer for the said quater and only the remaining amount of Ccnlral Sales

E

T&x shall bepayable;or

E

(b) Fany amounl of credit rcmaining alier such adj uslment shztll be carried folward to lhe next

F

quarter Explanation: In tlus section the expression "quafier" means a Period ofthree months ending on 30'r'June, 30'h September 3l" December or 31'' March in a Year. g

l8 :

24

21. Inputtaxcredit

(l) Subjectlo the provisions ofthis Act, an input tax credit as provided iD this scctjon shallbe clailned by a rcgistered dcalcr, subject to such conditions atd rcstrjctjons as may be prcscribed on sale ofgoods in the circumstances specified below:-

(a) when a rcgistered dealer pulch ases any inputwithin the State ftont anothersuch dealer afterpaying him the tax as specified undersection 12, he shallclaim creditot the said input tax ir the nrannerprescdbed ifthe goods arc sold withi the State or in the course oflntei- State taade and connrerce;

(b) when a registered dealer-

(i) purchases any inputwjthin the State lrom another such dealer allerpayinghim the tax undersection 12, or

. (ii) putchaseq any inputandpays tax on such pur-chase un de:- section 10 oftl.le Actand consumcssuch goods inthe manufacture ofany goods mentioned ilt Schedules lltoV under section I 2, he shall clajtn credit ofth e said input tax in the manncr prescribed if the goods so manufactuled aresold withjn the Stateorin the course oflnter- Staie lraJc arrd cntrrne'cei

(c) rvhcn a registeled dealerpurchases any capitalgoods within the State liom another such dealeralterpayinghimthetaxasspeciliedundersectioul2,orusesslrchgoodsiithe rranufacture ofany goods mentioned in Schedules II loVundersectjon l2 andsells the manufactured goods within the State or in the cou6e oflnter-State trade or commcrLrc or

E

otherwise, he shallclaim and be allowed, in such lnanneras tnay be prescribed, creditof theamountofsuch tax;

(d) when aregistered dealcrholds anystock on the appointed day, such goods as havebeen purlhased byhim on orafter 1'rAprii,2004 andwhich have suffered the incidenceoftax under thc Sikkirn Sales Tax Act, 1983, and

(i) sells sucir goods wilhii the State or in the cource oflnter-State trade ald commerce. or

(ii) consurncs such goods in the manulactwe ofany goods nrentioned in Schedules Il to V ofsection 12 and the goods so manulbctured are sold within the State or in the course ol Incr'Slalc lndc ancl co.nl]]erce.

he shallclairl creditofthesaid ta\ in th e rnanner prescribed;

E

tg ^E a

a

25

(e) dealerpurchascs any inpul wilhio lhe SLate liom another such deeler

when aregistered

him ihe taxas specifle'l undersection L2 at arate highcrlllan4 percentlrm

atierpaying

tlarsfers such goods ol goods miltlufacu ed iiom such goods to another dealer olrLside

and

theSratc.hesh.Jibeallowedcredilofsuchtaxlnexcessoi4pel,cenlum.inlhenlatrnct. Prescribed;

Provided that ifihe claim tbi input tax credit Lrnder claLLses (a)' (b)' (o)' (d) or (e)' any month exceecls

caded lbrward for adjustment againsl the oLrlPulbe

the output lax tbr lhe same morth, such excess shall

years after lhe close of^the vear during which

tax of subsealllent months not bc ing a month laler lhan two

such excess had ansen.

(2) yeiu duliugAny amounl ofinputtax remailing unadjusted after two yea$ itiet the close olthe rcturded to the dealer subject to the provisions olthiswhich such excess had ar]sell shall be and oler

Provided also dlat input tzl\ credjt in rcspect ofcapital goods shall bc allowed in the nanrff

thedalc ol theilacquisiuon

sLrch perio.l, ootexceeding 36 (thilly six) monlhs liom

further thal no cre.lit oi iiput tax sllall be allowed in respcct ofcapiLal assets purchased ot'

Provided

acquired before lhe comlllcncemenl ofthis Act'

(3) rctsistcLEd deder purchases Notwithstanding anYthing corlllined in sub-scctiorr lI)' wherc 'L in the circumstances stated in clauses^(a) or^(b) ot'sub-section

( I ) and'-

any input

(i) such goods rc^adispatches such goods or the goods namrlirctured by coosuming iegistel eci under lhe Ac! or translers such goo'ls Lo its branch or'head

co xllission agent

olfice inside the State ol Sikkm^for sale as fie case may be; or goo'ls ln the couNe ofexeculion ofa wolks conlract to Inothcr-such dcaler

(ii) supplies such lo whoinhchas leL ou! a sub-contruct' lbr use in theexcctLtion thereoll

the inPLlt lax credh on the sale or supply' as the case may be' oisuch goo'ls shall be ciaimed

in the

by theregistered dealerselling lhegoods on comnission orusirg the goods supplied

execulionofsub.contract,asthecasemaybe,inaccoldancewilhtheploviSionsofsLlb section (l), in such mlllncr as may be prcscribed'

(4) No iopu! tax credit undcr sub-sectjon (l) shxll be ciaime':l or be allowed^to a registered deaier-

(a)^may be notilled;orin respectQfgoocls specilied underschedule I or such goods as

20

(b) in respect ol'inputs purchascd hy hint fi-om anothersLlch dealer.or manufactured hy him and the rightwhelein to use is tmnsfeted to anotherdealbr: or

(c) in rcspccls of inputs purchrlsed from a lcgistreled dealer pennifted to pay tir' under pl ovlsions ofsection 16 and section 17:or

(d) in respect ofinputs coDsurned either for the manufacturc ofgoods specified in Sche.lule I olsection l2: ot

(e) in rcspcct ofgoods used tbr selfconsurnption or as gitt.

(s) in case thc inputs or goods arc used pafiially f(n.the purpose specified in clause (d) or (e) o1'sub-section (4), thcclaim lortheinput tax creditshallstand reduccdtothe extcntthey ile^\O U\(J,

(6) No dealer shall clairn input tax crcdit in rcspectofjnputs purchased, unless he is in possessron ofan originalcopy oftlte ta\ invoice, signed tutd issued by the selling register ed dealercontailing lhe prcscribed patticurlars of sale.

(.1)

Ilthcorigiual tax invoicc is iost, input l&\ crcdit shall be allowed only on rhebasis ofaduplicate copy ofthe odginal tax iovoicein thelblmand man ner prescdbed.

22, Exports to be zero-rated

(1) A sale specifled undcr section 5 ofthe CentralAct, by a ciealeroran export odentecl unit, sha]l be zero-rated and there shallbe no tax payable on the tumovet.ofsuch sale and the person expoting the goods.shall be entitled in the manner prescibed to a credit ofinput lax pai.lt-

(a) on the purchasd ofthe goods sold in the course ofexport. or

(b) on the purchase ofinputs and capital goods which have been used for the manufacture of goods.old in rhe c,..ru,ie olcrport:

Provided that the input tar credit on accoul.lt ofcapital goods shall be aliowed ooly to the extcilt and in thc mannerprcscdbed.

ExplanatioD - For d1e purpose of this section, all sale ofinputs made to Lhe dcalers in a Special Eco omic Zone ar notified by the Cenfal Government under scclion 5 ofthe Forergn Tr.ade Regulation Act, 19gg shall also be zero rated.

(2) Nol withsranding anythingcontained ill sub-section (l ), sale ofgoods made to foleign.liplomats or mi((ion. "hall r.l bc cxetnpr:

Prcvided that thelax paid by such fo.eign didomats orNissions or, theirporchases willbe refunded in full in the manner prescdbed.

2t

27

-"- 23, Bulden ofproof Where any assessee clain'is -

(a) thal any receipt or disPatch ofgoods by him is otherwise than by way ofputchase or salc o1' such goods by him:

(b) that a,ry sum ot' money received or receivable or paid or payable by iim by any mea,'ls inclllding adjustmerlt against a debt is not in the cou$e ofbusiness and where in the cou$e ofbusiress such sumis not valuable consideution for any sale or purchase of goods ellected by him in drc year in which the said sum was teceived otreceivable orpaid or payable;

(c) that any purchase or sale olgoods by him is notliable totaxby rcason ofsuchpurchase orsale being outsidethe State or in thecourse oflnter_State tmde and comnetce or in the cour-se ol the impoft ofLhe goods into, or the expofl of the goods out of, Ihe teritory ollndia;

(d) that any purchase or sale ofgoods etIected by him is exempt lrom lax or leviable lo tax^{at a} par ticular raie;

(e) that any purchase or sale ofgoods effected by him is not taxable because olretur-n ofsuch goodsi

(0 that he is entitled to any deduction ftom grcss tumover or any deduction olinpul tax lrom the IJ1 calculated on Lhe )dle olgoodsl

(g) that in case of tax payable on works contract u nder S ection 13, he is entitled to a ded uction in rcspect of iabour and like charges or non t:Lxable componenls liom the valuable consideration orbills for the execuition ofthe co[t]^act;

O) thalanypa cular sum has been paid by him as tax, interest or penalty under-this Act;

(i) that any goods, books of account and document discovered at his business premises or al a^y other place or in any goods ca(ier or other vehicle over which he has coDtloi at lhe time of suchdiscovery, do notrelate to lis business;or

0) that any relief under this Acl or the les made thereunder is admjssible to him,

. the burden ofso proving shallbe on him.

24. Power of State Government to amend Schedules- The State Government, after giving by notiflcalion notless than fbufieen day's notice ofits intention Io do so, may, by like notihcation, add to, amend or altcr any olthe Schedule to this

22

25. Credit and Debit Notes:

(l) Whcre a la-r irvoice has bcen issued and the amounl shown as lax charged in the /ar- invoice exoeeds the tax chargeable under this Act ill rcspect olthat sale, the registgred dealer making lhesalc shall providcthe putchaserwilh a crcdil note conlain ing the rcquisile prrriculars^as may bc prescibcd.

(2) where tlre tax invoice has bcen issued and thc tax chargeablc under this Act in rcspecl ofthe sale exceeds ihe amcunt oftax charged io that invoice, tl'le rcgistercd deaLer makiig the sale shaliprovi.le the pu-chaser with a debit note containing the rcquisite particuials as may be prescibed.

(3) ln casc ofgoods let,rmcd or rcjccted by the purchaser' a credjt note shallbe issue'l by thc sclliig dealcr to the purchaser and a.lebil note will be issue.Lby lhe purchaser lo dre selling dealer contairling psllculars ofthe transacLion as plescribed

CHAPTERIV

REGISTRATION OF DEALERS, AIlIENDI'IENT AND CANCEI,I ATION OF REGISTR{TION CI]RI'IFIC,{TES

26. RegistratioD of dealers -

(l) Subject to lhe otherprovisions oflhis Chaplel. no dealershall while beillg liable to pay^tax under section 8. carry on business^{as a} dealer unless he has bcen tcgislered and possesses ^ valjd cerlificale olregisbation in respect ofhis business in tl e State ofSikkim:

Providedlhatadealerliableto pay laxunder section 8 shall bc allowed two months time iionl thedate frorr rvhich he is imtllable to pay such tax to get himselfrcgistered.

(2) Every dealer required by sub-section (l) ro be regislered shall make an application in this behalfin the manner to the presclibed authority +nd such application shall bePrcscribed accompanied by adoclaralion in lhe Prcscdbe'l form duly fjlled up andsigned by thedealer specifying thereii tl'e class or classes ofgoods dealt in or manufacturcd bv him'

(3) IIthc prescritled autholity is satisfied that an applicalion lolregistlation is in order' it shall' ir with the inanner prescribc'l, grant rcgistration to the applicants^and issue a certillcxteaccoralance ofregistration irl thc prescribed form whjch shall specily the class or classes olSoods deall in or mJnJLrcrure ll'\ 'hc.li_ cr'

23

(4) Where fie appiication fbrregistrution^js llla'lc under lhis scclion' Ihc prescdbcd aulhority shall grant him the ccltilicate ollegistration liom lhe date oltjlli g ofslrch appliciltiL'n prcscribed authority shali gLalt lo such dealer thc cerliflcale ollegistntion tiom^the

Provi{led that^the

.lale ofcorllmencement oIlns liabLlity lo pa]' tax where the application loriegistration is made witlxn Ll'lil1y

.lays of!Lich i:1c!c:

Provided further that where thc prescribe{l au!}rorily is satislled that during the pcndertcl olan

urcler section

application made by a dealer undcr s ub section (2)- such clea ler has beconle liable to pay tux

8, il shall grult to such dealcr lhe certilicxte oflegistralbn from the dale olconrmencemcnt o1'such lirbilily

(5)^who has becn registel crl on any clay belbretlle appointedday anclcondnues Whereany dcaler. to be so registeled on the day immcdiiltcly bclore such appoinlcd clay rud is lixble lo pay tax

I Llte

Llnder tlis Act on such appoinled date, the frescr'lbed arnhoriLy shall issue to suchde'rLer'l prescribe.l rtranner a hesh ceflillcatc ofregisualion under this Act upon aPplicalion lllcd^by

such dealer in prescibecl lbrm within thlty days lrom the con-rmencemeni {)lfie Acl'

(6) Thcprescdbed iLufiority nlay, fiom titne to lime, amenclany ceniiicate^of regiso alion in with inforrnulion ILLrnishecl or otherwise received and such amcndment^may beacco|clance made with I etrospective elfect in s uch circunlstances and subject to such restdctions and

conditions as maY be Plescribed'

(7) When-

(a) any business in respcclofwlich a cefliflcate ofrcgisfation has been gtanted to a cledeLon an application madc has been discontinLled or

. (b) a c1ea1e| has ceaseclto be liable lo plry lxx undel seclion [J; or

(c) an inco+orated body is closcd duwn o1 iiil otherwll'e cerse\ Iu ex istior

(d) Lhe owler ofao ownership business dies lcaving no successor lo cafy on business;or

(e) incaseofirfImorassocialionofper'sons il it is dissolved' or

(f) a person ordealerls registered by mistake or

G) a dealer lails to lur[ish rctuln and pay lax and interest accordr g to srrch rctll]rl or rciurrls

wilhin the time extended,

theprescribed arrthority shallcancel the rcgislralion of such dealer'

21

(8) Thc cancel lation ofregishalion will take effect liom the end oftheperiodin wlxch it is cancclled Lrnless ilis to take effect from a diffelent date as orderedby the prescdbed authodty'

(9) When any dealer to whom a cerljicate oircgrstralion has hecn Eranted has taiied^lo lay^an)' tax- pcnalty orinlerest payable underthis Act 01 has faiied to fumish any letum theP']]escribed aulhority lna]'. aftergiving dledcaielan opponunity ofbcirgheard cancel lhe regi stration ol such dealer.

10) Where a dealer. after canccllation ofhis cedificate ofrcgistration Llndersub-section (9)' pays

r

in full the amount oftax, pcnalty or interesl payable hy or due from him under this Acl or has Iumished overdlre rcturns in clefault ofwhich his ccrtificate ofregistration had been cancelled urder'lhat sub-seclion ancl makcs an application^to the presc ibed auiholity lbr restoraliorr oI his certiUcaE ofregistration togcther with reoeiPled challalls eviciencing payment olsuch tax' penalty and interest within sixty days from the.late ol such cancellation or withjn such flrrther time as may be allo\\'ed, the prescibed autholily shall. by a I oder in wrhing' lcsior e dle certificale as ifthe certificatc were in Iorce during lhe pcriod in which ilremained cancollecl'

21. Voluntary rcgistration of dealers-

(l) Any clealcr \\'hosc gfoss tumover ofsales dul-ing a year does,not excecd lhe taxahle limit nlay' notwilhsranding thai I'le is notliable to pay tax under section B, apply in ll'le plescribed lnannel' to the prescrihed authority for registution underthis Act'

(2) Everf dealerwhohas been registered on appiication madeundclthis se-clion shall lol so long ashis registralion reinains ir force, beliableto pay tax undorthis Act

(3) ola dealer on application made underthis seclion shallbe in force for a The regislration feriod ofnolless than three completeyeaN and shallrcmain in ibrcs thercafler unless cencelled under

the provisions o[thir Act.

(4) in thc A dealerregistered rrn applicalion made underthis sub-section Inay apply Prescribod manner notless llun sixrnonths beforc tbe encl ofa )'ear lo the autholity which Eatted hilr^his

celificaE ofregistration fol lhe cancellation olsuch rcgistration io take effecl at the end ofthe

yeerin which the application tbr such cancellatiolr is mrdeard the said autl'lorily shall' unless

lhe dcaler is liablc ti pay tax un.1er this Act, cancel the rcgis lratiorl accoldingly

25

(5) when the $oss tumoverofsales olany dealelregistercd on applicatioDmade undelthis section has, tbrthree successivc years after'lhe pe odofthrccyeal1srefcffedtoinsub-section

(3) lailed to exceed the taxable limit, the prcscibed authodty may, atierSiving lhe derler rcasonable oppo[tunity of being he,td, cancel registralion of such deaier

28. Se( urity to be l'urnishcd in (ertain casei-

(l) The presc.ibed autho ty nuy, at the time ofgranting of ceftificate to adealer,lolgood and sulficientreasons to be recorded in witing, require the dealer to lumish in the prescribed manner such secudly as may be specified by it forsecuring properand timely paymeDt oltax or any other sum payable by hjm under this Acl.

(2) The prescribed authority may, by order in writing and lbr good ol sLLlficient rcason to be r ecorded thercin, demand hom ary person who impofts into Sikkim any consignmen! 01 goods, a rcasonable security tbrensuring that therc is no evasion oftax.

(3) The prescribed authoity may, by orderin writing and folgood or s ut'ficient leaso n tobe rccolded thelein,lodbit the whole or any palt olthe security or additional secuity relened to i0 sub-section (l) o/ sub-section (2), iurnished by a dcaler, registered dealer, undertating or percon as requircd by sub-section (1) or demanded under sub-secrior (2), lb.-

(a) r'ealizingorrecovery of tax oranyothe, sumdue, or

(b) tecovery ofary linancial loss caused to the State Govennnent due to negligence or default in rot making proper use of, or notkQeping in safe custody, blank or unused lbrms ol declarration.

(4) Where, by reason ofany order under sub-section (3), the secudty furnished by a dealcr', registered dealel, undertakinS or person is fodeited ir whole or is rendered insufficieot, such dealer, registered dealer, underlaking orpeNon shall, on demand by order ofthe prescdbed authority, Iumish frcsh or funher securily olthe reqlljsite arnourt or shall matke up the deficiency, as thecase mai be, in suchmannerand within such period as may be specitied in such order.

(5) The prescribed authority may, on appljcation by a rlcaleq undeltaki0g orperson, whohas lurnished secudty as required by sub scction^{( I} ) or demanded under sub-section (2), re l und in the prcscaibed manner any amourlt cfsecurity or pifi thereof ifsuch security^is notrequiled for the purposes for which it^was fumished.

26

^ Sr:::il ai reqtired by sub-secljon⁽ 1) ol demanded under sub-seclion (2) sha1l be fumish'J

a] 3 dealer. regislered alealcr. unde aking orpe$on in such mannerandby such time as mal 5: spccified in tlle orderrequiring to fumish or demandirg such security' ilr^\o ordershallbepisscd Llnderlhis secllon wilhoul giving thedealer' registered dealer' undcfiaking orpelson an opportunity oIbejng hea] d'

29. Imposition of pe[a]ty for failure^to get registcred-

(l) IIa who is required ro get himselfregistered within^two rnonths fi om fie date fromclealer, which he is l'lrst liablc lo pay^lax under seclion 8, fails lo get hrmself so regisiered' theprescribed

imposeby way of

authority may, aflergiving thc dealer an opporllrnity olbeing hear-d' by order penalty a sum notless than five thousancl rupees and not exceeding ten thousand rupees for

c.,cn month olJeL,ult'

provided that l1o pcnalty shall be imposed uncler tl'lis sub-sectio,1 in lespect ofthe same iacl fbr

whrch a plosecution has been instituted and no such prcseculion shall l'e in rcspect of a facl for which a

pcndlty has bcen imposed Llndcrthis section

(2) Ilany peoalty is lmposed undersub-section (1)' ihe prescribed authoity shallissue a norice in dale as maybe specified

theprescdbed form.lirecting the dcaler lo pay suchpenal$ by such

in the notice and the date tobespccified shallnotbe less lhan fifteen days from the dale of

sen,iceofsuchnotiCcandthepena]tySoi]nposedshalJbepz.idbythedea]eronorbeforefie any other bank'

datc so specified.lnto

or

a Government Treasury or the State Banl< ofSikkim

as may he rotified b) iheGovemmenl:

extend thedale of

Provided lh at the prescribed aLltho ty may,lortcasons to bo rccorded ir writing

payment specified in the,rotice in lhis behalfor aliow such dealer lo pay the pcnalt-v imposed in

such^as

'l

.u- lr rt(rr.lb.^_ r' lnly Cclclllilc^f:',.lxlln.enl'

CHAPTERV

RNTURNS. ASSESSMDNT, RE.ASSF]SSMENT AND FAYMENT OFTAX

30. Returns, payment of tax, interest and penalty' I jn

(l) Every such dealeras may bercquire'isot0 do by the proscribed autlloily' by notica seraed fl the manner Prescdbed and cvery registcred cleale'

(otherthan a dealerrequired by section¹⁶

2'7

33

to pa)'lax a! a fixed rate in lieu of lhe tax pa)'ab1e by him)' shali fulnish a tl ue und complete relum in respect ofall his transactions rclating to sales, pulchases, receipts and dispatches ol soods in a quarter, on ol before the end of the Inonth ibllowint the end 01'thc quarter rlr the

prescdbed authority in such folm andln such mannel as may beprescribed'

(l) Every such dealer as may be required so to do by the prescribed authority by notice servdⁱⁿ prescribed and every regisiered dealel (other than lL dealer req uired by section 1 6the manner topayt&{atalixedrateinlieuolthetaxpayablebyhin.shalllurnishatrueandcomplelc statement in resPec t ol.dl his trans actio s relating !o srles^and Ptrch'rses ofgoods and any details may be prescrlbecl for each comPleted qua(er on or bctbre lhe end olrhesuch^as monti foilowing the end ofthe qLlarler to the prescribed authority in such lbnn and in such

manner as may be prescribed

a

(3) Every rcgistered dealer shall furnish to tl'}e prescdbecl authority, on olbeforethedue date' true and completereturn inrespect ofevery llnanciai year in the form and mannerplescribed Explanation- In this sub section, "duedate" means-

(i) where the dealer is a company within the meanlng of tlte Companies Act 1956 (Act I of' 1956). the 30'r'day ofNovember olthe yearfollowing the year to $'hich such return rclatei (li) where the dealer is a person, other than a company-

(a) in acase where the accounts olthe are required !'nder this Actor any otherlaw'lealer to be auclited, the 3l'' day ofOctober ollhe year tbllou ing lllc year to wlrich such retul relates;

(b) in any other case' 3l'r day ofJuly ofthe yedrlollowjng the year to which such rcturn Ield'e'

(4) Every dealer required by sectio n l6topaytaxatafixedrateinlleuofthetaxpayablebyhirn shall file a quertelly abstmct stalemenlforeach completed quarter on or before the end oltlic month following the end of the quafier to the Prescribed authority in such form and in such manner as may^be Prescribed

(5) Iffie last day prcscribcdforthe filing ofquarterly statemen or monthly l etu(lr happens to bc aholiday, thenextdateon whichthe olliceopens shall bedeemed to be the lasl day'

28

a \ot\\'ithstand ing anything contai^ned i n sub'seclion⁽ 1) or (2) the prescibed authodty m^y lor specific rcasons lo be rccorded in wdling, extend llre date offiling such retum^or quar_ter1y staten'lent, as thecase may be, subjeclLothe condition thatsuch an extension n'lay^be allowed

onl], once ancl lor a peliod,11)1 exceeding thifiy days from lhe dne date] Pr-o\ ided ll'tat the Comllissioner may allow extension beyond lllirty days lbrreasons to be recorded in

riii;ng andthatalso foraperiodsubiect Io theconcliliorl lhatsuoh an extension maybe allowed only once norexcecding threemonths-

(7) Ifadeaier having lulnished a quanerly retum under sub-section⁽ I) orthe quafierly slatemcnl undersub_section⁽²⁾ discoverc any omission orwrcng statement lherein he ma1 lurnish^a

revised relum or statement, as thecasemaybe in the fofln and rnanner prescribed to ihe

(3):

prcscribcd arilhorily at any time bcfore the dLre date within the meaning ofsuh-section unon informa onoi

Provided lhal Do such lclurn ol'slatement shallbe laken inlo consider-ation if' otheN ise and for reasons^to be rccorded in wrillrlg' the prescibed authorily is satisfied tiat the retum or

oliginally fln'nished^was delillerately false or thatil was furnished with intent^to defraud fte State

"staternent Cover-nmcnt of its rcvenuc.

(8) Ifa dealeriails to lumish the relum under sub section (I) orthequa erly statemenlunder sub'section (2), within thctime prescdbed in this l egard the presq ibed authority shall after

giving sucl] a.lealcran opportunlly olbeingheald impose a penalty at the Iate of five hund'ed rupces for everyday ofdefault afler the due or extended date' as the case may be'

(9) (a) Every dealerliabieto fumish theretun uncler sub-section (1) sllall deposjt the tax manoer

payable according to the retulr on or before lhe end ofthe foLlorving month in such and shallenclosc the proofofpaymenl in such fonn as may be presc bed' of lhe tax payable by (b) Eveq/ dealer requil ed by section 16 to Pay tax at a fixcd mte in lieu himshall depositthe tax arived at after applying the rale specified i' thenotification on or bcfore tl'le en'] of the month

is succl un der section I 6 to hi s^q uallcrly turnover'

lollowing the quarler to which it rclates and shall enclosc the proofofpayment in dre form

(4)'

ad rnanncr-prescribed along with the staiemcnll€quir'ed ro be lfinisl]ed undel sub-section revised

(c) Sub.jeci to thc provisions ofsub-seclion (10)' ifany registercd dealer submits^a

to the

return under sub-section (7) and ilthe anounl oftax due ftom such dealer accolding

29

:s e:rlier- upon so nluch ofthe amount oftax Payablc by him according to stlch Dotice as rernai su paid attheend ofcach sllchn1onih ofdefault.

:)

A.l.3ler liable to p.ly inlcres! uncler sub-section (I) oI lhis secrion shall, in lhc prescribcd manner. pay into a Govcrnment Treasury or lhe State Bank olSikkinl or any olher bank^as maybe nodlledby the Governoent the anlolratol inleleslpeyablc by olduetiom,hilnby

I

such date as maybe prescribed

(3) Where as aresult of an or.ler undcr section 74. section 75. section 76 of se'!ion l7 lhc amount ol t:Lx payable is modified, tlle inlerestprlyable undersub-section (l) shrlLbe delenrined on the birsis ofsuch mbdille.l arnount and lhe excess interest paid' il any shall be reiilnded'

(4) Interest under sub secrion (l) shall be payable in respec! oI assessmen t notices fbr\{hi'h^irre issued uncler seclion 41. on oralier the appoinled^day.

33. Exemption f.om payment ofinterest- NotwithstanclinS anything conlained in sectiorl3l or 32' no irtercst slldl be pxylble ln^such cases or under such circumstances and subjcct to such conditions, ifany, as nray bc prescribcd 34, Interest payable by Cornnissioner-

The Cornmissioner'shall in the prcscribe.l nunner, piry a simple i'te'est at thc rute oflwo per centum lor each calendar month of delay in making lefund to a deale( ol lhe amountoflax paid inexcesswhichariscsolltofanorderunderseclion7'+,sectionT6orscctiouTT'passcdonor alter the appoinledday, from the lhirty tlNl dny ol lhe date lbllowing thc dale olsuch order .upto the datc lhe date ia which the reiund is nade in the manllcr lclerrcd to inPreceding section 53. upon fie amount oftax relundable to him to such or'der' 'Lccording

35. Rounding olf of amount of tax, interest ot penalty' The amount oflax, interestorpenalty payable or relilnclublc lbr any period uoderthc provislons of this Act shall be roundeclofito the nearestr-LIpee and 1ix'dlls pllrposc, whelt sLLch lLnloulll contains apan ofarupee,lhen, ilsuchpart is llfiy paise orrnorc, it shalibe increlsed !o one rxp3e and ifsuch pan is less than fifty paise itshall be ignored

36. Collection oftax only b] dealers liable to pay^tax-

(1) \o cieeler'.Lho is no! llable to pay ta\ under this Act shall collect in IespccL ol a!v salc ol' goods bl him anl amoun! oftax underihis Act anonodealerwhoisliablelopeylaxundcr

32

rhis Act. shall make any such colleclion e)icept i accoadance !vith the ptovisions ofthis Aci or in excess ofthe amounloftax payableby him underlhis Act.

(2)

Ilany dealer contravcnes the provisions ofsub-secljon⁽ l), he sl,all. notwithstanding anything contained elscwhereinthis Aci, deposlt the amounl collecled by way of tax orthe amount collected by way oftax in excess ofthc amounl payable undel this Act, as the case may be, into a GovemmentTrcasury or thc State Bank ofSikkim or any otllerbank as may be notified by the Govemment within thily days hotn the date ofsuch collection and intimate the prcsc hed authority ofsuch deposit along with a receipt fiom such Trcasury oI Bank showing paymentol suclt amount.

(3) The prescribed autholily shall on application made by thebuyer in respecl ofsales ofgoods refelTe.l to in sub-seclion⁽ 1) and on such terms and conditions as it may deemfit and proper, relund to.such bltyer the tax or the excess tax, as the case may be, coilected from such buyers and dcposited by thedealerin the manner relerred to in sub-section (2):

Pr'ovicled that no applicalion from any buyershallbe eule ained Llnless the same ls made within twelve' months fi-om lhe date on which the lax orexcess tax, as t]le case may be, is paid and supported by relevant cash mcmo orbill issued by thedealer.

(4) lfa clealer is in default ii depositing in accordance with the provisions ofsub-section^{(2) the} amount collected in contravention ofthe plovisions ofsub-section (1),lhe presqibed authodly may. aftergiving such dealer a rcasonable oppoflunity ofbeing heard' by an order in writjng dlrcct thal he shall^pay by way ofpenalty a sum' not less than the amount oftax so collecled ancl notexceeding nvice the arnouDt of taLx so collccted by hjm in contavention oftheplovisions olsub seclion^{( 1).}

(5) The penalty imposed under sub-section⁽⁴⁾ shaiibepaid by thedealerinlo a Government Treaslrry orthe State Bank olsikkim or any otherhank as may be notified by the Govemmenl by such dale as may be specifiedby lhep.escdbed authority in the nolice issued forthe purpose and such date shall notbe less than sixty days lrom the dale of seNing ofsuch nolice

(6) Any penalty thatremains unpaid afterthe date specified in the notlcercfenedto in srlb-section

(5) shall be recolerable in accordance with the provlsions ofseclion 49 3:l

37. Scrutinyofreturns-

(1) Theprescribed authodty shall, within the time and in the mannerprcscribed, scrutinize every retum fiied under sub-secrions ( l), (3) and (4) ofsection 30 for the pupose ofasceftaining fiaF

(a) all calculations conlained therein are adrhmeticaily accumte;

(b) the output tax, the input tax, the tax payable and inrerest payable, if a[y, have been computed correctly and properly;

(c) tax rates have been applied conectly;and

(d) evidence has been furnished with regald to paymentoftax and interest payable, ifany.

(2) If, upon scrutiny under sub-section (1) the prescdbed aulhority discovers any eror, it shall se e a notice in prescribed lblm on the dealer directing him to-

(a) either pay, wirhin thirty days, the ext d amount of tax along with the interest, if .uy, payable and lurnish the challan evidencing such payment; or

(b) explain, within thity days, that the retur n or returns flled by him clo nor sulIer irom the inhrrdties mentioned in sub-section (1).

(3) (a) Theprescribed authoriry shall, in a case f'alling under clause (b) ofsub-secrion (2) and after giving the dea]er a reasonable oppoltunity to adducenecessary evidence, pass such order in the matter as may be deemed lit.

O)^If, pu$uant to an order underclause (a), any sum is found 1() be payable, a notice in rhe form and marner prescribed, shall be served upon the dealer requiring him ro pay the tax and interest within the time prescdbed.

(c) Any tax or interest payable unde.clause (b) shall be deemed to be an auea oltax within the meaning ofsecrion 45 of rhe Act.

38. Assessment of tax payable by registered dealers-

(l) If norctums are fumished byadealerin respectofany period by theprescribed clate, or rhe prescribed authority is not satisfied thal the retums furnished are co(ect and complete, the prescribed authority shall proceed in suchmanneras may be prescribed to assess to the best of his.judgment the amount of tax due from the dealer, and in making such assessment, give a dealer a reasonable oppo(unity ofbeing heard.

34

ili

lr) rhe case olfai[rre by lIrcgistered dea]er lo lltr'nish. in respect ofany period. a retum accornpanied by a r'ecciPl fuolr a Go\'ernmerl Treasur'y or the State Bank ofSikkim or any otherbank as may bc Dolilled^by the Government as rcquircd under sub-secdon (9) olsection 3il. by th e prescribecl dale. thc frescribed arlthol ity may, ifit is satisfled that tlle clefadtwas mndc withoul reason^abl e cause. cli rect rhal llle registcr ed dealer shall pay by way ol penahy ir iddition to theamountoftax so assesse.l asurn nolexccedingoneandahalftimes^thal

(3) Where a rcgistered dealer brings to the noticc olthe plesclibed authority in^wt iting olclinaily within slx monihs ilom thecnd oflhc yearlhat, dueto e orir lact or il'l la$,' an amourtofrz{ h|ts Lreen paid by him in excess olwhat was payable by him during any leturn period relalin! lo such r year and requcsts lhe prcscrihecl au thorily for mllking assessmcnl, proceed to nrake asscssmerll iir r-cspe.ll ofsuch yearbclore the expil-y oIthe period of]imitation provided in suh-seclion⁽²⁾ olsection 12.

(4) Where upon scarch ot-seizure ofany accounts, registels or documents or olany goods ofa registered dealer'. or Llpon enquiry or informalioll received' theplssc bed aulhority has rcasons to believe thar thc dealer has not accollnleal for the tllmover ofsales olgoocls or pLlrchases oi goods asappearfrcm such accounts, rcgistem olClocuments in thehooks ofaccoLlnts relen-ilcl to in seclio0 54 or has nolshown such tllrnovcl-in his relum fumished under section 30^ir1 Iespect ofany relum Periocl. the Prcscdbecl aulhority shall proceed in such mal]nel as may be presc)-ibe.lto assess o the besl. olhis.judgmeDt the amount \)f tax payable by the dealerⁱⁿ rcspeol ofsuch relur n pc o.l aftcr' i\' in g thc registeled dca;er a rcason ahle oppoltun ity of8 being hcald and dirc.l sLtch dealcrto pay lhe amount oflax so asscssed in such manner and by such datc as thepresclibed authority may decm fil.

(s)

Ir the case olfailurc by the rcgistered dealer to iuBlish ln rcspect olany per-iod. a return accompanied by a rceipi fi om the Govemmcnt ljeasury or the State Bank of Sikkim or any other bank as may be notified by the Govemncnt rcquirc'd under sub section (5) ofsection 36 Lry lhe prcscribe.l .iale. lhc Prescibcd aulhority may. ilitis satisfred that thc default was made without roasonabl' .ause. dir€ct that [ho dea]er shall pay b, Nay olpenalty in addition to the aulollnt oftax so assesscd, a suir not exceeding one and a Ilalftimes ofthat amount

35

trE r;E daie during the period conxnencing on the 1"rday ofJanuary and endillg or the 30rr'day of June: aid

(b) erd ollheafter the 3l'' day ofDecember next following the expiry ofsix years lrom^lhe year in respect ofvhich or part of which rhe assessmentis made' whele such six ycars end on any dale during the periotl commencing on the l" ofJuly and ending on the 31" tluy of December

(3) Norwithstanding anything contained in sr]b-seclion⁽ I ) or sub-section (2)' assessmenl ol tax

due from a registered dealet notbeing seiected under section 40 for assessInent in rcsPect ol any yearcomprising a period or peiods, may be mnde befbre the expily ofsix years fiom the

h:rvc

end of the year in rcspecl of which or palt ofwhich the assessment is made or was !o bcen mirde.

(!') Notwilhstanding any*ring contained in sub-section (1) orsub-section (2) or sub-sectioo (3)'

when a fresh assessmenl is rcquired to be made in pursuance ofan order under section 74 or section 75 or section 76 or section 77 or in pursuance ofany order of the Appellate Authorily or any cour1, such fresh assessment mry be mftle at any time within two yearc trom the date ol such ordet

(5) ln computing the rime limit for making^any assessment underscction -'9 or section 40 the

rny

pedod during whicll the piescribed authority is restrajned fiom commencing orcontinuing proceedings^by an otderofthe competent authority or any court shall be excluded'

43. Determinationofinterest-

(1) where the prescribed authority is salisfied lhxtadealelis liable to pay intercsl under seclioo 31 or section^32, he shall, in such manner as may be presc bed' deterliine^the amount of

interest Payable bY such dealer.

(2) If additional amount of interest is founcl to be payableby thedealer or any excess aflountofilltelestisfoundtoberetundablelothedealel,thc.prcscdbedauthotityshallissuea manner to such de'lerdirccting him to pay such additional amoutlt ornotice, in the prescribed informinghim ofthe excess amouotpaid, as theoase ma) bc'

(3) No determination ollntelest under sub-section (1) in lespect ofinterest payable under section 3lshallbemadeafterthedlteofassessmenlundersection3S,3gor40inlespectofthe oeriod to which intercst is deteflnined'

38

{-1. Rectifi cation of mistake in dctermiDation of interest- il,

\\tere fiere⁽ is an apparent mistake in ihe.letemlinalion ofintercst undcr sub-section L) of section43. the prescribed autholity may, on its own molioll or upoll apPLication rnadeby^a dealerwithinsixmonthsftomlhedateolsllchclelerminationofinle,est.Iecti[yihcamollnlof intcEst nayable by slrch dealer orrcfundable lc) such dealcrand issue a tiesl] nolice lor payment

ofinlercstin lhe manner'prcsc bed under th at sectioD.

(2)

Wheleonrect]ficationoftheamountofintelestundelsul]-seclion(1)'anyexcessamoLllltiS found refundablc lo adcaler, theprescribed xtthol ity shali. in lhe rnannerrefcrred to in scction

53. refund such excess amourl ofinterest to such doaler'

45. Recovery oftax, penalty and interest

(t) Any unpaidarnount oftax, penalty orjntcresldueundcrtbis Actfiom adealer' which rcmains afterthc date speclf:od in a notice of deman'1 i ssLrecl ii this behalfLrnder this Act of thc nlles macle thercunder, Llirccting Payment olsuch arnounl oftax. pellalty or lnterest' shall be

rccoverable by lhe Tax Recovery lnspeclolⁱ n accordance with the prov isio^{n s} o f s llb sectioⁿ ollhjs section 50, scclion 5l or section 52 and thelules rcgulating lhe procedure(2) section. for-rccovery oI tax, penalty and interest nladetheleundcr where $c State Govel-nmcnt 'lilects by general or special ol dea so to do ir respecl ofsuch class or classes oldcalers having lhcir places olbusiness in such area or ar eas as l'nay be spocilied in such order'

(2)

Whereany amountoltax, penalty orinterBst isr'ecoverable in accordanccwiih sub-scction (l). theprcscribed authoiry shall scnd lo the Tax llecovel) lntPeclora cerlificaleurder ils

signatu re speciFyi g the amollnt of lax' pcnalt)' or interest due iom the dealer' owncrorlessee ofwarehouse, pe6o11or owner ofgoods (hereinafter refened lo as lhe

cefiificate-debtor)'

alld the Tax RecoverJ lnspector shall, on rcceiptolsuch certificate' ploceedto recover fiom

lhe cerdficate-del'ltor lhe amoulll specifie'lin lhe cellificateby^one or more ofthe lollowing

modcs in aocorclanccwith the lules as may be presclibed;-

(a) attachmcnl encl salc ofthc movablc ploperly of llle cefili]cate-deblorl

(b) atlachNent^and sale of lhe immovable Pr-ope y oftlle cetlficate-debtor;

(c) aflesl ofthe ccrlificate-debtor and his detertion in prisor':

(d) appointing a receiver fol the mlnagementolthe movabls and immovablepropefties ofthe

cc.1ific.r.c dehlo_

.19

(3) prescribed authority may send a ce[il]crle undcr sub secLion (2)' notwjthstanding thatThe proceedings lbr recovery ol slch lzlx' penally or inleresl have been iniliatcd^or irre ron I I n u i r I

by anY olhermode

(4) puryose ol'this section and seclions 46 to 49' dpPoint' by

The Stale Govemment may, for^the

iotification, such number of Tax l{ecovely lnspecto$ under section 4 ol the Sikkim (Coliection

and

ofTaxes and PrcveDtion ofEvasion ofPaymenl ofTaxes) Act' 198? (Act No' 7 o11987)

specity the alea()1 arcas over which they shall cxercisejuriscliction'

(5) cefiificate under slrb-section (2)' thc Tax Recovery lnspector s hall serve^aon rcceiptofthe in thc lilrn and

nodcc along with a true and authenticated copy ofit to the ccftillcate-deblor' manner Prescribed.

(6) (5)' olthe leceipt olthe notice under sub-section lhe ccrtil'icate-debtolOn and from the date shdl tralrsferhis inxnovabte prope[y ol nny intelest theein

and such tlrnster olthe

nol ^ny

said prope y orany intercsttherein shallbe void'

(7) within thl^y days Iiom the seNice ol'the notice requircd^by sLlb- The certificatc-debtor may, sectior (5), ol where the notice has not bcen dlly seNed' then' wilhi tlil1y days from the

execution of any Drocess lbr erfbrcing the cerlificale' tlle his objections (lenying his ll'rbility in

and mannel^as

whole o1 pall olthe

foflr

lmmoviLble propeny specilie'l in the certificale in the

me) bc n'eic'ibeJ'

(8) Inspectot-lo whomtheoriSinal ceffificate is sent shal]' subjectlo^theTheTaxRecovery ofsub-seclion (I) olsection43 hearthe petition' take evidence' ifneocssary and

pr'ovisions

tbr

determine wherher the certificate-debtor is liable for the whole or any paft ol the amounl

which certiticate was signed

(9) tbrthe rccovery ofany amounl oftax' penulty or irrleiesl rlmiliningWherc any ploceeding unpaidhavebeencorrmencedundefthisChaptelandtheamoLrntof!ax,pcnaltyolintr-Itstis modified, enhanced ot red uced in consequence ol any assessmcnl mT de ol

subsequently

jlr

appeal, rcvision orreview' underthis Act' theprcscribcd authority miy'

orderpassedon

mannerand withi[ such perod as may be prescdbed' infofiIl the certiiicate-debtor and

such

theCol]ectololfieTaxRecoverylnspectotasthecasemaybe'bywhomolInderwhose oder the recovery is being made or to be made and thereupon such procecdilgs may be

continued as if the amounl of lax, penahy or intercst as modified' enhanced or reduced has

been substituted for the amountoftax' penalty or in[ercst \\ hich was to be'ecovered undel

sub-section (1).

40

(10) wlrre cenificate debtor fails to pay the amount specified ln rie notice issued u del sLrb-

rtre

shall

section (5) within fiirry

ceflificaledeblor

days from thedaE olscrvi'c rlfsuch noLice'^the

pay simple intere'st at the mte of two pel ceotum for each calendar- month o I dclalrlt from the

a

ofthe pedod specifierl iu such notice up lo the daie

pl eceding

dale immedialely following the end

as lentaitts

the date offull palment specified in such rotice upon so much ofthe amount

unpaid.

46. Tax Recovery Inspector l'hom cefificates to be forwarded-

(1) authority may forwa'd the celtifi cate refcfi ecl to in sub-secdon

(2) ofsection Theprescribed 45 in respectofa celtificate debtorto' -

(a) Recovery Inspecior within whosejudsdictior such cel lil'lcate^- debtor cames or

the Tax

oll hjs business orwithin whosejLtdsdiction^lhe goods^are seized under-section 68:

carried

(b) cerlificale-debtor is available

dre Tax Recovery Inspectorwithir whoseiudscliciion such orsitualed

Recovery

(2)

Whue such certificate-debtot ha's ptopelty within thejurisdiction of nlorc than one Ta{

Inspcctor lo whom a certificate is sel1tby the presclibedIrspecrcr aod fte Tax Recovery authorit,'-

movable or immo\ rabie

(a) is not able to recovel-the entire amouflt by sale of the prcperty'

rvilbin his julisdiction' or

ofthe whole

(b) is of the opinion that for^the the recovery

Purposeofexpediting or secuing in whose

amount, acopy olthe ce ificateshallbe senltolheTaxRecoveryInspector jurisdiction fie par.t of the propefiy' movable or inmovable lies and the Tax RecovelJ

olthe copy ofthe Ceftiflcate shall plocee'l

to rccovor lhe amourlt

Inspcctor, on receipt

as if the Cerdficate

due from the property in accordance with theprovisions ofthis section

is received bY him indePendently

in recovety ofthe amountdue (l) Wherc the Tax Reco\ ery lnspcctor experience the difficulty

(b) of sub-section (2)' then the prescribcd auftority shal I refel Lhe matter to dle

under clause

Collecto. for rccovery of the amountdue as an anear ofLand Revenue'

4t

J7, -\nlendl1rent of certilicatcs lbr tax rccovery- i1) \ot$,ithstaudjng thut acerdficatc has been lbrwilrded lo a Tix llccovel-y Inspector. thc pr.scribcd ruLlxrrily sha1l h:Lvc lhe Dower to wilh(ltr\\, or'clrtccl !nch ceniilcxre, (rr-() corrccl suchcerlificate.

(2 ) l'he pr escribcd authority shall in tinratc to the Tax Recovcry ln spector any or der withdr'aw in u olcancclingaccnificateorxnycorrectionmadebyhimundersub scction(l).

48. lhlidity ofCertiticate fbr Tax Recovery-

(l) Whcn the plesclibed authorily lbrwi]rds e ce llcate1oxTtIx Recover) Ins]lcctor undcrscctlon 216, it shallro! be opcn to lhe ce illcate-deblor lo disputc betbrc the ?rx Recovcry Inspcctol' thc propdcty orcoucctness olthc llssessmenr oflx\, lmposition ofpenalty or determination ol rntelest uoder L\is Act ard no objectior'l to such ceflitlcaLeon aDy such g()unLl shall be cnLeruined by the Tax Rccovcry Inspccior.

(2.r

Il is hereby declared lhal where dny dmount oItax, pcnalty or intercst is leco!errble iI accordancewiththeprovisionsolsubsection(J)olsecdor46-thep|ovisionsoltheSlkkim (Col lec tion ol Taxes an d Pr:evenlion of Evasion oI Pay mcnr of'lax es) A ct. I 9 87. shall nor .rppiy to ery proceedings Lr the recovery ol sLrch amount ofux. peraity or interest.

49. 'I\'ansmission of Certificates lbr Tri Rc.overy to Collector in certaill c:rses- Where any amourrt oftax, pcnalty orintelcstduc liom ac{rdUc&to debtorctnnotbc rccovcrcd by the Tux Recovery lrlspectorby any orle ofthc modes ieleffed to in seclion45 and wherc the Tax llecovcry I n spcclor hes i nfbrmtknr thlt s uc h cefiiilciLte dc btor o rvns any pi opcl ty ouLside Silikim, the amount olsuch tax, penrhy or intelestlemaining unpald shall bc dccmed ro bc an a(ear ofland rcvenue and the'l'ax Recovery lnspector'shall arpply to theColleclorol tlle disll.ict in Sillim in which srch certiticate-debtorcafiics on his business, hxs h]s principal place ofbusiness or his goods have been seized, as the case m:ry be. lor thc recovcry ollhc said tunount in accordance \\,ith the provisio s olfte law for thetime beirgirllbrce irSikkim.

50. Spccial mode'ofrccovery oftax, penalty al1d intercst -

(l) \o!\rilhstaoding fte lbrlviuding ofa celdficatc undersection 46lbrrccoverJ ol aoy amounl of tax. penehy or inteirst. the prescribed authority tuy, at xny tirre, by notice in the prescribcd ibrnr, requirc any person liom whorr lnoley is dLre or- may beconte due to a de ]er or iLrry

12

pe6on whoholds o.may subseqllently hold money for, or on accountof, such dealer, to deposit into a GovernmentTreasury or Stale Bank ofsikkim or any other bank as may be notified by the Govemment under the approp ate head of account, either forthwith upon the money becoming due or lreing hcld orat or withirr the time specified in the nodce so much of the money as is suftjcient to pay thc amount dlle llom such dealer in rcspect of the aiream ol such tax, penalty ol intercst or the whole oIlhe money whei such money is equal to or less than thatamount.

(2)

A notice underthis section tnay be issucd to any person who holds or may subsequentiy hold aoy money for, or on account oi the dealerjointly with any )thet person, and lor the putposes ofthis section, tl're shares ofthejoinfholders in such account shall bepresumed, until the contraly is ploved. to be equal.

(3) A copy olthe notice shall be for\rarded to the dealer at his last known address and in the case ofajoint account, t all the joint-account holders at their last known address.

(4) Saveas otherwise provided in this section, every percon Lo t{ hom a notice is issued under this section shall bebourd to comply with such notice. and, in panicular, whete any such norice is jssued to a post office, banking company or insurer, it shall not be necessary forany pass book. deposit rcceipt, policy or any other document to be prcduced for the purpose ofany e trJ. endorsement or the like being made before payment is made, notwitl$tanding any rule, pr'aclice or requircmenl lo lhe contrary.

(5)

Any claimrespecting any money, which is due or to become due or is being held or may suhsequentlybc held in rolation to which a notice under this section has been issued arising after the datc ofsuch notice. shall be void as against any demand cootained in such notice

(6) Where a pe$on to \,rhom a notice underthrs sectjon is sent prcves to the satisfaction of the prescribed authoritl thalthe sum demanded orany palt ther3ofis noldue to the dealer or that l're does not hold an.r money for, oron account of, the dealeror thal lhc nroney demanded or any part thereofis not likely to be due to the dealerorbeheld for, or on account of, the dealer, then. nothirg contailcd in this section shali bedeemed to require such person to deposit any such sum ol pa thereoi as the case may be.

43

(7) Theprescribed aurhority may, atany time, amend orrevoke any notice issued unLler this section ol extend lhe time for making any payment in pulsllance ofsuch noticc'

(8) The Government Treasury or the State Bank of Sikkim or any other bank as may be notlfied by fie Governmcnt, shall grant ar receipt for any amount paid incompliance with a notice issued under thjs section and the person so paying the arrrollntshirllbe fully dischalged h orn his

liability lo thedealerlo the extentofthe amountsopaid'

(9) Any peNon discharying any liability to the dealcrafterreceipl ola nodce under this scction shall be personaliy liable to the extent olhis own liability to the dealer so discharged or to the

extent ofthe liabilily ofsuch dealer lor lrny amountdue under this Acl' whi'hever is less'

(10) Iithe person to whom a notice undel dlis sectjon is sent fails to make paymentⁱⁿ fursunnce thereof, he shall be deemed to be a dezrler in default inrespectolthe arnount sPecilled io the

nolice aod fwther proceeding may be taken against him lor the recovery ofthe amount^cs ifll

wete an arear due fiom him and the notice shall have the same effect as attachment ofdebt' (t 1) The prescribed authority may apply tothecourtin vihosecustody there is money belongingto lhe dealerforpayment oftheentirc amount ofsuch money or' ifit is more lhnn the amount ol due, an amount suffiiient to dischal^ge the liability of the amount ol tax'tax, penalty or interest penalty or interest:

Provided that any dues exempt from attaclxnent in execution ofa decree ola civjl court under secdon lequired^{lo be}

60 of rhe code of civil Procedure, 1908⁽⁵ of 1908), shall be exempl ftom any payment made under this section.

51. Assessment without prejudicc to prosecution lbr arry ollence- Any assessment oltax or determination ofinterest made undertiis Act shall be withotLt prej udice to any prosecution instituted for an oflence under this Act'

52. Assessment aller partitioB of Hindu UndiYided Ifamily or dissolution of firm and tax payable bY a deceased dealer-

(1) Where a dealer is allindu r:ndividedfamily, fiIm orother association ofpersons' and such family, firm or association is partitioned, disrupted ordissolved, as the case maybe'-

(a) the tax, penalty or interest payable under this Act by such family' fim or association of

44

pcmons for dre peaiod up to the dale olsuch paltition, disfuption shall be assessed. irnposed ordelermined as ifno such partition, disruption ordissolLrtion had taken place and allthe provisiors ofthis Act shall apply accordingly, and

(b) every person who was. at the time ofsuch partition, djsrrption or dissolution. a member of the Hindu divided family. partner of a firm or membcrofan association ofpeNons and the legal rcpresentative olany such person. who is dcceased, shall, notwithstanding such paltition. disruption ordissolution. bejointly and severally ]iable for the payment. ofthe iax, penalty or interesipayable under this Aclby such family, firm orassociation ofpersons for the pcdod up to the clate ofsuch pa(ition, disruption ordissolution, whetherassessmenl ofsuch tax. imposition ofsuch frenalty ordetermination ofsuch interc,stis nude pior to, or' after. such partitiorl disruption or dissolution.

(2) where a dealercarJiug on a business as the sole proprietordies and thebusiness is padtioned. disruptcdordisconlinueduponhisdeatlr,llreexecutor,administmtororlegalheirshall. notwithsianding the provisions ofclause (xii) olsection 2, bedeerned to be a dealcrunder this Act Ior the puqDses ofassessmenl ollax, determinalion ofinleresl and payment, recovery and refund oftax assessed or interestdetcrmined, shall apply accordingly. -53. Refunds-

(1) The prescdbed autho.jty shall, iD the mannerprescribed, refund lo a dealerany amounloltax, penally or intetest paid by snch dealer in cxcess of the amounlduefiom him under this Act. ellhcr by cash paymcnt, deduction or adjuslmentofsuch excess fiom the amount oftax, penalty or intercst due jn respect of otl]er pedod orperiods.

(2)

Nothing in sub scctiol (l ) shall be deemed to empower the prescribed aulhodty to amend, varJ or rescind any assessment, or to ameod, vary or rescirld any order passed on appeal, revision orreview undersection 74. section 75, section 76, orsection 77 or to conferon^a .lealer any relicfin addition to whal he is enlitled under the prov;sions ofthis Acl.

(J) Subiect to otherp1ovisions ofthis Act, the prcscribed authorily slrall, in the manner prescribed, refund to a dealer the arnount ofcxcess input tax credit ifit is satisfied that the claim made under section 2l is tr'uc and corect.

45

CIIAPTtrR VI

ACCOUNTS AND RECORDS

54, Maintenance ofaccounts and records etc.:-

(1) Every rcgistered dealer or a dealerlo whoma notice has been served to lur'nish return under section 30 shall maintain a troe and up to dale accounl ofthc va]ue ofgoods purchased or manufactured and soldby him or goods held by him in stock, and, in addilion to tl'le books^cr1 account that a dealermatntains and keeps tbr the purpose refefied to in this sub-seclion, he shall maintain and keep suchrcgisters ard accounts in such tbm in lhe mannerprescribed.

(2) Every registered dealer or dealer refefied to in sub-section^{( I} ) sha11 keep at his place^of business all accounts, regisle$ and documents llaintainedin the course ofbusiness.

E

(3) whore a dealer as referred to in sob-section (1) has established branch oflices ofthe business^E in the State other than lhe principal place olbusiness, the relevant accounts, regislcN and documents in respect ofeach such bnnch shall, wlthout prejudice to the provisions ofsub- seclion (5), bekeptby him atsuch branch.

(4) Iffie prescdbed authority is ofthe opinion that the accounls maintailed by any dealeror class

EE

of dealers do not sufficienlly enable him to verily the relurns referred to in section 30 or tllc assessmentcan notbe made on thebasis thereol itmay by an order, rcquire suchdealet or E

E

class ofdealgrs, tokeepsuch accounts, iD suchtbrmand in such manneras it may, subjectto

E

rulesmade under this Act. direct.

(5) lftheprcscribed authority is satisfied that any dealer is notin aposhion to mainlain rccounts in accordance with the prcvisions ofsub_seclion (1), it may, for rcasons to be recorded in wtitillg, exempt such dealerftom the operation of the provisions oflhe said sub-section

55. Taxinvoice:-

F

(1) Every regisrercd dealermakinga taxablesaieto anotherdealer, whether regis tered ornot, E shall provide that purchaser at the time ofsale with a tax invoicecontaining such palticulaN as

E

specifiedin sub-sectioo (4), and ietain a copy thereof.

(2) The ta,r invoice shall not be issued by a dealer in the following circltlllstances, -^F

(a) aretail registercd dealeris paying compounding tax in lieu ofVAI;ol

(b) the sale in the course ofexport out ofthe territory ollndial or r

(c) the saleinthecourse ofinter State trade andcommetce;or ^I i

46

_l =

= id) the saleolgoods exempltom tax urderSchedule I =

(e) thc goods tlansfered in the execlltion ofworks conffact.

(3) \ot more thalr one tax invoice shallhe issued for each taxable sale : (.1) The tax invoice issueLl under sub-section ( l) sllallcontain thefollowing particulars on the = :

ofiginal as well as copies thcreof-

3 (a) the word 'Tax Invoice' in bold lettcr al the top or any prominent place; f

:

:

(b) Ihe name. address andregishation cedificate number ofthe selling registercd dealer;

:

(c) thc nanle, add rcss an d registra on certificate number ofthe purchasing reglstered deale( (ci) an individual serialised numberand lhedaleon which lhe lax invoice is issued;

(c) description, quantily, volume and valLleolgoods sold andamountLax charged ther'eon lndicated separalely;

(tJ signaturie ofthe selling dealeror his servant, manager or agent, duly authorised by him;

(g) the name and address ofthe printer, and first and last serial number of tax invoices prinied and supplied bY him lo thedealer;

(5) Exccpl when tax invoice is issued under sub-section (1). ifaregistered dealer sells any goods exceeding such amount in value as may be notified from time to lime, in any one transaction to any person, he shallissue io thePurchasera relail invoiceand retain a copy thereof'

(6) The rctail invoice shall contain the following pafiiclrlarx oi the original as well as copies thereof'

(a) thc wor ds 'Retail lnvoice' or 'Cash Memorandom' or 'Bilf inboldlettersattheloporin aprominent place:

(b) tLe name, addrcss and registration ceftificate number ofthe sell ing registered dealeri

(c) in case thc sale is in the cour'se ofexporl out oflhe tenitory oflndia' the name' address andreSistntion number. ifany. ofthepulchasing dealer/foreign buyer and the type of statutory tbrm, ifany, againstwhich thesalehasbeen madel

(d) an individual serialised number and lhe date on which the rclail invoice is issued:

(e)

description. quarlllty, volume and value ofgoods sold inclLlsive oftax, charged thereon; (0 signature of le sclling dealer orhis sewant' manager or agent, duly authorised by him; (e)

ther)ame encladdless olthe printer, and last serialnumber of relai1 invoices printed and supplied by him to ll'ledeaier.

4'7

49

(7) Tax invoice shall be issued in tr iplicate. The odginai and the first copy shall be issuecl to fte purchaser or the peNon taking delivery ofthe goods, as the case may be. and dle second coPy

. shall be retained by the selling de.rler

(8) Retail invoice sharll be issued in duplicate The original shirll be issued lo t]le^put chaser and the duplicate copy shali be letained by the selljnS dealer.

(9) Every dealerrcfeEed to in sub-section (l) shall prese e books ofaccount inclLlding t x invoices and retail invoices untilthe expirJ olfive yeas atier the end ofthe year lo wl'iich they rclate or until the assessment rcaches its finality whicheveris later.

(10) Where such dealer is party to any appeal, orrevision under this Ac!, he shall retain, unlil the appeal orrevision is finally disposed o1, every record and accounts ihat pertain lo the subjecl mcrter olrhe apperl or revi'ion.

Electronic relord:- Every dealer who maintains the records electronically shall retain thcmⁱⁿ electronically readable fonrlat tbr the period of five yea$

57. Requirement to proYide inlbrmation:^- Notwjthstanding anything contr.u^y to the povis ions of this Act, the prescribed authority may, for any purpose related to the administration or enforcement ofthe piovisions olthis Act, by notice, requirc any pcEon to provideto lhe prescribed authority, within such reasonable tifle a5 is stipulated in Lhe notice, with ary intbtmrrt ir rn including a retum or any documentincltlding elecrodc records.

58. Audit ofaccounts:-

(1) Where in any panicular yeat the gross tunover ofa dealerexceeds five lakh rupees or such other amount as the State Government may, by anotification in the olficial Gnzelte specily' then such dealer shall get his accounts, in rcsPectofthatyearaudited by an Accountan! within six months frorn the eod ofthat year and obtilin a repofl ofsuch audil in the prescribed form duly signed and veified by such accountantand setting ibfth such pallicula$ as may be prescribed.

12) A true copy ofsuch rcpot shall befurnished by sLrch dealer lo the plescribed aufiority by tlE end ol the month after expiry of the period of six months dtu i0g which d1e audit would hirve beencompleted.

48

(l) Ifan)dealerliabletogethisaccountsaudiledunde.sub-sectiol](l)failstogethisaccounts audilcd and lumish atruecopy ofdle audit rcpoft witl]in the lime specified in sub-seclion (2)' theprescribed aulhority shall, after giving the dealer a I easonable opportunity ofbeing heard' imposeotlhim, i0 acldition to anytaxpayable, a sLlm by way ofpenalry equal to one percent of the tumover as it may cletelmine to tl'le lrest ofitsjudgement in respect of the said pedod' Explanrtion - For lhe pu4)ose ollllis sectioll, "Accounlanf' nleans a Chatered Accorrnhnr willlin the meaning oI Ll'le Chaftered Accouniant' Act, i 949 and includes a person who by viftue of ll'le provisions of sub-section (2) of section 226 of the Companies AcL 1956, is eotided to be appointed to act as an auditor'

. Cornn: n:e" rcgr.,eted Lrnder the.did^Acl. Dealer to declare thc name ofhis business managerl_

(l) Every dealer, who is liable to pay tax and who is a Hindu Undjvided Family^or an association olpcrsons. club or sociely , fit m olcompany, or who ls engeged in business as the gua'dian or

trusteeorotherwiseonbehalfofanotherperso,shallq'ilhintheperiodprescdbcd ftrrnish^a deciaralionⁱⁿ the manncr prescribe.l staling the Dame of the per'son orpe'sons who shall be ' deemed to be mana8er or managers of such dealea's business for the pulposes ofthis Act'

(2) Such declalation shall be lumished at the time of regislration' wherevd applicable and shalI be

revised 1i om tilnc to time.

(3) 'fhc dcclaration fumished urlcler sub-section⁽ 1) shall aiso conlain the name and address with in relation to the busine'is ofsuch percons who are authonsed to receive notice and

designatlon

otheldocurnentsundelthisActandtheserviceofnotjceonsucl,]peNonssha]lbebindingon the dealer

CHAPTERVII

INSPECTION OF ACCOUNTS, DOCUMENTS, SEARCH

AND SEIZURB AN'D ESTABI,ISHMENT OF CHECKPOSTS

60. Maintelance ofaccount5 by transporter, ca'rier or transporting agett -

fl)

any transpofier'Notwithstanding anytlling contained in any other law for tl'le time being in force' camer oi transfoltillg agent, shail maintain, in theprescribed fom' properaccounts oftaxable gocds transported by him into, or outsidc. orwithjn Sikkim an account ofany person or

49

dealer, being aconsignee or consignor. as lhe clse may bc, and shall, on demlmd by Lhe o1'llccr authorised in this bel]alf, fllmish such intbrmation to such ofliccr as ftly be required in re!atitrn I0 transpofiofsuch g00ds by such lransporlcr, c arier or tlansporting agent'

(2) The accounts refered to in sllb-section (1) and goods relerred lo ln that sub-seclion^and stored in the officer authoiseda godown or winehouse in Sikkim, sllall be open to inspection by in this behali at all rcasonable time.

(3)

Where any transportcr, carrier or transpodng agent lails !omaintain ploperaccount in the prescribed form oI fills to furnish lnlbrmation to the officer authorised in Lhjs behall rccluir ed'Ls by sub-section (1), such ofticer may enter and search the Placc ofbusiness or any other place where fanspo er, carier or transpo ingagentkeeps any rccords ordocuments io relalion to ftansport ofgoods and such officermay, for rci$ons to be recorded in wriling seize such records ordocuments.

(4)

where any transporler, carrier or transpolting agent has,

(a) received any consignment ofgoods to any place outside or witlin Sikkim' or

(b) transportedinto Sil&lm any consignment olta-rab1e goods on accountofany person or .leal er and the officef authorised in this behall has information thai such pelson or de'rlel is not in existence at the address given in the invoice, consignment note or any document ol like natLlre in respect ofany consignment ofgoods refeied 10 in clause (a) orclause (b)'

such olllcer may direct lhe ranspofi?r, can-ierortransponing agent, by an oder'in w'iIing' that,

(i) the consigrunent ofgoods retelTed to in clause (c) shallnot bc tr3nsported olttside' or within, Sikkimt

(ii) the consignment of goods refened loinclause^(b) sllallnot be dclivered tillthc matter is investigated into by such ol'ficcr or dll period ol fifteen days [excludiDg SLrnday or^a public holiday declared under the Negotiable lnslru'nent Act. 1881 (26 of 1881) l expires from the date ofcommunicaljon ofsuch direction to the transpofler' car|ieror ulnsporting a8ent, whichever is eatlier:

50

(5) wheretheofficer authoriscd jr fiis hehalL:tfter gjvi g the person or dealer rcfelrcd io ir-r clause (a), o: clause (tr). rs the case nray bc. cisul.r-seclion (4).4reasonab1e oppotltttlity of being heari. or after cau sin8 ail enq^ui ry abou t the exi sience of such person, c:r sual traaler or dealer.,

(a) is rn existence aL the cddrcsl given in tltebill, invoice, consigruncnt note or any document ollilienalure. slch o{iFicer ihallforthwith withdiaq by an orderin writinS,his direction issuertu Cersuh scction⁽⁴⁾ tothe transpollgr. carieror tran sporting ageni: or

(b) is not in cx i\trxce ilt thc add rleas given in the bill, invoice. consigNnenl nole o? any documeirt of like nirture. the tt,ansport of the consignmentoftaxablc goods by such person ol dealer ro srrv pla.e outsiLle. or withir. or into. Slkkhn, shailbE deened lo be in conlravention ofthe pror isions oftlrs scction or se{tion 71, as thecasemaybe, and such officershall seizesuch consignment ofgoods undel s{ction 68.

{t l. trmposition rrf penal{y for fallure to issue tdr iEYoice, cash memo or bill- (11 ifiL registercd Cexler or3dcalcrbontmvenes ille plovisions oiseclion 55, the officer authorised rn this bchalfmny. eftcr givrng luch dcalera reascnable oppofinrity olbeing heard, by older in \\ rilin!. drlcct that such dealer $hallpay, by way olperally. asurn equal to double dle anlount of tax $,hrch rorrld ha!c bcen lbvied under this Act in resPcct olthe salcs rcfen ed to in that section whete no tax irvoicc, lash nemo or bill has been issttcd, or:five thousand ruPees. whichcver is grcater:

Provided thatifsuch registered dealer ordealerprcves to the sailsfaction oflhe Commissioneror such other officq that he deals exclusively in goods specified i[ Schedlde I sales ofwhich a1e dec]ared tax-ftee under section I 2 or that ii is not practicable lbr sucl'l tcgistered dealel or dealel to issue tax invoice, cash memo or bill against each transacticn in'Jiew oithe circumstances and lrature ofllis business, such othel ofTicer nray excmpt such rcgistered dealer or deal€,r frorn payment,ofperalty orimpose sn.h lesseramount ofpcnaity as ho deem flt and proper.

(2) Any penalty imposed uDder sull-seclion⁽ 1) shall be paid b1 lhe legisteled .le,ler or- de:'l er jnto a GoveminentTrcasnry or f-he State Bank ofSi{ckim ot any other bad( as may be iotificd by the Govemment by such dateas ay bespecified in anoticeto beissueti by such other -51

t

53

officer in this bchalf, and the date to lt specilied shrli not lle less lhun fifteen d:rys iiom^the date ofservice ofsuch notice

(3) loAny amounl0fpenally that lEmains unPaid after lhe date specilled in the notice rcfened in sub-section (2), shali berecoverable in accotdance with theprovisions ofsection45'

62. Production and inspection ofaccouuts, registers and documents- ( t ) The officer authoised in this behalf may requirc any deale!-

(a) to produce before him any accounts, legiste$ ordocumenls, or

(b) to fumish any i4IormaLion rclating to,-

(i) stock of goods held by such pelson or dealer,

(ii) pulchases, sales ordeliveries olgoods madeby such dealer', ot

(iii) anY other matter, and

(c) Io explaio to such olticer' ;rny accounts, registcrs ordoculnents produced by such dealer as may bedeemed necessary forthe puryoses ofthis Act'

(2) Allaccounts, rcgisteN anddocuments relating to theslockofgoods held orputchnses' sales or deliveries ofgoods, by any dealer and all goods kept in any place ofbusiness ofany dealershall, at all reasonable time, be open toinspectionby such ot'1icer'

63. Seizurc of dealer's accounts-

(1) lflhe olicer authoised in this behall lias reason to suspect that any dealer is attempting !o evade payment of any tax, he may,Ior reasons to be rccorded in wrjting, seize such accoul'lts' rcgisters or documelts or electronic accounN lnarntained on any computero[e]eclronic media' as nray be necessaly and shall documenls seizedSl.ant a rcccipt tbl such accounts, registeB or by him and shall rctdn all or uny ofrhem only lbr such petiod as rnay be necessal) tbr exam nation thereof or for proseclllion or fo1 any othel plrl?ose ol this Act'

(2) The officerauthodseclⁱⁿ this behalfshall notrctain any ofthe accollnts, registers ordocuments seized by him under tllis section for a pel iod exceeding one /earflom thc ciate of the seizure except alier tecording rcasons in writing forretaining them lreyond one ye:u'

64. Entry and search ofplace of busiress or any other place'

(1) Ijor the pur?ose of section 62 or secdon 63, the officer aulhodsed in this behalfl may enter ard sea.rch any place of business of any dealer, peson, llanspoltel or owner lessee ofa warclrotlse

52

where he has reason to believe thal such.lealer. peasoll. hirnspoflel' owter or lessee ofa warehouse- keeps orls, forthe time beiog, keepillg ary accounts, rcgisteN. docrrments or records ofhis business or any stock ofgoods ibrsale in such place.

(2) The officer authorised inthis behalt wllil e entering^or searchjng any placeofbusiness ola dealer, person, lmnspoltel. ownel ol lessee of a warehouse or any other piace, break open any door or window ofa llollsc. roolr or walebouse, or any alnimh' sztfu. box or receptacle in which such olficerhas lcason io beiieve thatsuch dealer, pe6on transpol ter' owner ol lessee of warehousc keeps or is. forthe timebeing. keePirlg any accollnts' rcgistem, documents or records olhis business or any slock ofSoods for sale

65, Establishment of check posts for ilspection^of goods in transport -

(l) 'l'he Goverrmentmay, wilh a view to preventorcheck avoidaoce orevasion oltax^by notification in thc OlficialGazette, dircct theestablishrneni ofthe checkpostorbal.lier^{at such} places as may be spccified ill therotification and declare the name ofofficerwllo shall exelcise powers and clischarge duties al such checkpost by way ofinspection ofdocuments produced and goo.ls being movecl.

(2) Thc driver or person in chargeofa vehicle orcarierofgoods in movemeotshall^-

(a) cxny with him the rBcortls ofthe Soods including clelivel y challans, bills orcash memo ot Sales or-dispalch men]os and plescribed declaration Formorway bjllduly lilled in and signed by the consignor of goods canied.

(b) stop the vehicle or cal-l ier al evely check post sel up under sub-seclion⁽ 1), or any other place when so rcquircd by an offlcerauthorised in this bchalfi

(c) produce all the docltments including the prcscibed way bill relating to lhe goocls before the officer in charge ofthe checkpostorthe autho sedofficerl

(d) gjve all lhe inlorrnation in his possessioflrclating to the goods;

(e) allow tlrc inspection of the goo.ls in the vehicle Ily the officer in cha€e of the clleck post or any authonsed officell

(3) Where any goocls arc in movement within the leritory of the State of Sikkim an officer empowered^by the State Govemment in this behalf, may' stop the vehicle or the carrier or$e -53

55

person carrying such goods, 1br inspection, at irny place wifiin hisiuisdiction and the prov isions ofsub-secaor t2./ >hall mutarjs truran'li. apply.

(4) For the purposes of this Chapter "vehicle or can ier'" shal1 include every rJ vel cmil raft, timbel bamboos or aoy floatingmatcriai propelled by any manllel.

66.

I terception, detention and search of vehiclcs or tarricr and selrch ol warthouse, etc..

For rhe purpose ofverifying whether any corlsignmelt of goods a-re being or have been [ansported in conravention of the prcvisions of section 60 or section^{7 1} , the ofticer in charge of the check post ol any other ollicer authorised in this behalf, may, -

(a) intercepl, delain and search at any place relened to in sub-section (l) ofsection^65, any vehicle or caniel ot any load caried by a pelson, or

(b) search any warehouse or any otherplacein wlicl], accordingto his information,^such goods fansporled in contravenlion ofthe plovisions ofsection 71 have been storcd

61. Stock ofgoods stored in u[disclosed warehouses^-

(1) Ifany regisiercd dealerhas not disclosed any warehouse in his arpplication or lor regist|etlon made under sub-section (2) ofsection 26orhas not lumished intbmation under section 88 regarding change ofhis warchouse or opening ofa new warchouse for irmendment ofhis cemificate of registration under sub-section⁽⁶⁾ ol section 26 ard ilany stock of goods is found jn such waiehouse after search made under section 64 by authorised otlicer, it shall be prcsunEd that such dealerhas l-lallspolted soch goods ln contravention ofscction 60 and stored those goods in such warehouse, unlcss suchdealer_

(a) explains to the autho.ised officer who conducts such search, the reason tbr not disclosing the warehouse or furnishing the infomation under section 8 8 and the stock of goods found stored in such warchouse, and

rbr produce.undcnandb)lheairlhor:sedollicerande\plcinsLhesloc\regisieror^y account ofstock showingemy ofsuch goods in the purchasc billorcash memo orchailan.

(2) Where the dealer pl ays for tir.le for the purpose of clause (b) of sub-seclion⁽ 1), the authorised officer may allow time to produce before him the document I efeffed lo in that clause, and shall meanwhile seal such warehouse up to the time allowed by hrm.

54

68. Scizure otgoods- {l) whcrc, upon inlercepfion^ol search r eferrccl to in section 66'^lhc aLlthor-ised officer is of ihe prcvisions of that sectior]'

opinion thatany goo'ls arebeing tmnspo]tecl in corltlavention ofthe

lhe vehicle or caniercal.rying such goocls for a period nolexcecding

fo'ly

he shall fil.stdetain

ciglll holns and. ifd]e pelson btirging, impoiling or rcceiv irg such goods fails to iumish particr'dars

gooJs to8ether u'rth xrly cnntainer or othel materials for ir the Fcscribed lom. shailseizc such the Paoking olsuch goods:

ir compuling $e ireioLl ofdeictlion notexccedilg forty-eigl]t

hours' sunday or public

l)r()vided that

into accounL

holiday declare.l unclc.l tlrcNegoliablelnsuurnent AcL 1881

(26 o1188l) sl'lall nolbe taken

(2) clause (b)^of seclion 66'where, upon search of any warehouse or other place refelred to in thcauthorisedolficerhasreasontobe]ievethalanygoodstranspofledinconh-avenlionoflhe p.ovisions section 60, have been stored in such walehouse or otherplace' he shall seizc such

goods togetherwilh container or any other malerials used fol packing olsuch goods or' in

case sucll goods alo nol seize'l' he may seal such warehouse'

(3) lhe autholised officer the docLlmentrcfered 10 in clausc lfthe (lcaler fails to produce before E

(h) ofsuh-sectior1 (1) of sectjon 67 and lails to satisfy him lhat lhe goods forrnd in sllch

to

warehouse have not []een transporled in contravention ofsection 60' he sl'lall' tbr rcasons ffi

so

he rccorded io writing' seizc lhe goods and g'ant a rcceipt specifyiig the items ofgoods

scized.

(4) jiy rclefl to in sub-sectlon (1) seizes a y goods under thal sub-section' itWhore the authol^ed option ofany ftanspoltof in writing' give custody of such selzed

goods to him and

Inay, at the

hiln to transpo( such seizeclgoods upto thegodown^ol

warehouseofthc hansporte'ⁱⁿ

al1ow

Sikkin'i as deciarccl by him,^on the exprcss condiLion

that s ch lransporler shalI keep sllch

goods

seized goocls in theslid godown otwarcllouseand thatheshali

not'leliversuch scized

prcceedings'

to the co signec or owncr o l such seized goods so transpoited by

him before^the E

E

section 69 gre ifany, initiatcd against the consignee or owner of such scized goods under E

concluded: F

rcfencd to in sllb-sectioo⁽ 1) may fnke plYsical possession ofsuch seir'ed

Provide.l that $e allthol ity

69

from the cusrody ofthe tnnsporter even befole the conclusion of the prcceedings under section

goods E

wheresuchtranspoflefconnnunicate.]'inwdtil]g'[osuchauthoityhisi.ifficultyinkeepingsuchseized

F

55

! t. i

goods in his custody alier the expiry ol lhirty days from the dalc ofsloling olsuch seized goods in his godown or warehouse.

69. I'enalty for transportilg go0ds irto Sikkim iB cortraYcrtion of Socti{)n r}ll

(I) 11'anygoods are seized underseclion 68, tlle aulhoriscd olllcer ntly, by an order in rvriting, impose upon the person liom whom sLrch goods are s.:izcd, or Lhe owrlcr o[such goods. wherc particulam oithc owner ol such goods arc available, or whele there is no clailnanl for such goods atthe limeolsuch seizure, any per-son who subsequently establjshcs his claimof ownership or possession olsuch goods, atier giving such person or owncr, as Lhe cilrsc may be. a reasonable opportunity ofbeing heard, a penalty oIa sum not exceeding fifty pclcenluni ollhe vrlue ofsuch goods.

(2) A penalty imposcd undel sub-section (l)shall be paid by thc pcrson or lhe owncr ol goods. ff thc case may be. into a Goveanrn,rnt lieasury ol tlie State Bank olSikkiln or nuy oiher bank as may be notifled by $e Cove(lmcntby such date as may be spccilied by lhc ulrthoriscd ollloer in a no ce lo be issued fbrlhis pul?ose, and fiedate so specifledshallnot bc ealrlier lllanhfiecn days fiom thedate ofthe notice;

Provided that the authorised olficer rnay, for reasons to be reco.ded jn writing, extend lhe dale ol payment ofthepenalty lbrsuch period ashelllay think fit.

(3) The goods seized undersectlon 68 shall bereleased jn lhe prescribed manncron payrnent of the pcnalty jrnposed Lrndcr sub-seotion⁽ l);

(4)

ifrhe peialty is not paid by the datc specilted in lhe notice issued u nder s ub-seclion (2). the e[ihorised olficermay, in suchnurlnerand subjectio sllch reslrictions and condidons !s^mcy be presci'ibecl, sell the goods seized under secliox 68 in open auction andremit the sale prcceeds thereofto^a Covernnrenl Trcasuly.

(s) NotwithstnndiDg anything contained in sub section (3),-

(a) the oflicerbelbre whom an application fortevision undersection 75 against a ordcr tbr imposition olpenalty r-efe[Ed lo in sub-section (1), is pending. or

(b) The Commissionef, wherc there is no applic,rtioo lbr lEvjsjon undcl section 76, may. fbr rcasons to be recoaded in writrng, direct releaseofthe goods seized rrnder'scction 68 on such terms and conditions as hem y decm fit.

56

(6) Notwithsranding anyth ing contained in sub section (4)' the Commissioner may wheretlle

goods seized under sectior 68 lre._

(a) ol'pel ishablc nature. or

(b) requircd to be used by a specitied date, fil^and

sell sucll goods io open auction aftel: the expily olsLlch Pet iod as he may colrsidel

ploper, ilhe is ofopinion that such Soods may become unLrsable oL Llnsaleable oo deteniion^or'

the sale in opcn allction actually

destroy such Soods ilthe said goods bccome unusabl

e Lrefore

takes p1ace.

(1) The p|oceeils olsaJe oIthe goods lefefled to in sub-sectioD (;+) or sub-seclion (6) slrall be

appliecl lbr payment in the fbllorving order ofpdority:-

(a) hrst,fol incidcntalcharges.if any,rclatingtoauctionsaleof such goods:

(b) secorld ly, lot expenses. if dny, for- stomgc of s uch goods l

(c) Lhirdly. iol pcnalty irrlposcd under sulr-seclion⁽ l)' ard the balance ofthc^pl oceeds ofsale' i1'any. shallbc Paid to ihe owrer ol ihe goods or ifhis

wcrc scized under section

pal1iculars are nol available' to thepe$ons fl oln whom such goods application within one yea[ from^the (Late ofsa]e ol within such funher pel iocl as may

68, upon

be allowed by thc Commissionet forcause showi to his satisfaclion' afler $e^date

(8) A11y amount o{ penall-v irlPosed undel sub-section⁽ 1)' which rpnrai0s Llnpaid

uncler'sub-scction (2) orwhich cannot be recovel ed in accordancespecified in the nolice issucd withlhePlovisionsofsub'scction(4).sub-section(6)orSul,,Section(7).shallberecoverable in accordance withprovisions of seclion 45'

'hansporter lialrle to penalty for transport in contrav€ntion of the provisions ofsub-

10.

section (;l) ofSectiofl⁶⁸

59

E{pl5r-.siioD-For thc pu.poses oi:this section a dsecrjon7i,

(a) "traospo er'" means thc o\rDer-, or-arly pcrsod haviilg polscssioD ix.controlofagoods yehiclc, r'/ho tr.rnsports, on account oliny olher perso! tbr hire ot.on his o\\,n accounl, any goods fiom oi]r piace to.tllLrdtet and ilicllldes uny person whose nanle is cnlerc(lin the peflnil graured Lrrder thi] MoLor Vchicles .\cr, 1988(Aci No. i9 o1 l9lJ8 ), as thc holdcr di.leo1, the daivet orany oth pemon in cbxrgeclsuch vehicle:

(b) 'goods velicle' means any noror vehicle iis detined ifl the Nlotor Vehicles Ac!. 1988. constructed or adapted ior'use lor tmnspofiatioD ofgoo(is or any rnotor vehicle rot so consfucted or adapted when [sedforihe trzi,]sportation olgoods and inciLlcies atrailer attached to such vehicle.

11- lvieasuaes to prevent evasioo o{ fax on sal€s -

(l) Whcre a triinspol rer-cafiics hom auy place in Sikkim, in a goods vehicle, any consigDnenr oi goods a11d such vehicle is bo tld forany place outsidc Sikkirr! he shall, in addilion lo a docunet! oltide to the goods, carry withhinr inrespeci olsuch goods.-

(a) Whereca iage is caused by a saleolsuch goocls, lwo copics ofrhe bill orcash memorandum issued ty thc seller ofsuch goods, and the plesfiibed fonn containing such pitlLiclllat s as may be prescriberJ, or

(b) wherc c,lrriage is cau sed otherwise than by a sale ol such goods, r vro copies oi the iorwar ding note, deiivery chililan ordocument oIlii(c nntu.e, by whaEver uamc calleci. issr-red by thc owner or consignee ofsuch goods, and a bilylblm in drc prcscdbed ibrln cont^ining soch pal'ticuliirs as lnay beprescdbed:

Paovided that the provisions oflhis sub-secioo shall noi apply where the trarrsportercallyillg such goods proves to the satisfaction ofthe authodsed officer thatconsequent upon a sale olsuch goLrds, in the courseolexport \rithin the eani ng of sub scctioll ( 1) oI seciion 5 of the Centra] Acr, his goods vehicle car:}rrg such goods is bcund for sucll countfy As the State Covefiul,lont may by notlticariol, specify.

(2) Tlte tmnsporter, while canying rhe goods r eaered to in sub sectio; ( 1l shail stop the vehicle ar rhe checkpost, ol at any place when sorequited by theaufiorised officcrand produce the documents rcfefed illsub-secdon⁽¹⁾ aloog wilh the documcnt cl tirle ro such goods before the author.iscd ollicer iurti shaii ger courlte$igned $e documents ref-en cd to in clause (a) orciaose (b), xs the case may be ofsub-section (l)

5B

60

72.

Peralty for concenlment ofsales and furnishing iDcorrect particulars ofsales and purchases -

(l) Where.

(a) a dealer-has concealed any sales orany patliclllars thel€of, or

(b) adealer, bejnga rcgistercd dealer or a dealefiequired by theprescdbed authority to firmish retum under section 30, ha.s flimished iDconectsiatementofhis tumover ofsales or purchases or incorrect palticulars ofsuch sales orpurchaseswilh an intent to reduce the drnounloI^ra \ p.r) ah]c b) him.

the prescdbed aulhority may. after Siving such dealet^a reasonableopportunily of being heard, by an odel in rviting, directthat the dealer shall, in addition to any tax levied or penalty imposed under this Act, pay, by way ofpenalty, a sum not less that one 4nd half times but nol cxceeding thdce the amount oftax which would havebeen avoidedby him jfsuch concealed sales or purchases orpar'ticulars thereoforincon ect statement, ofhjs turoover of sales or purchases or'inco1Tect parliculars ofsuch sales or pulchases were notdetected and taken into accountof,^if fumover ofsales or pafiiculars ofsales fumished in retums ol shown in hls boolc olaccount wele acceptedas correct, as thecasemay be, in nraking an assessment orpassing any orderupon appeal, revision orreview underthe Act.

(2) Any penalty imposcd under sub-section⁽¹⁾ shallbe paid by the dealer into a Goverrment Trcasury ol the State Ilank ofSikkim or any other bank as notified by theGovemmentby sLrch date as may be specified by the prescribed authority in a notice issued for the purpose. and the dale to be so specifled shall not be less than fifleen days fionl the dale ofsuch notice:

Provi.led that the plesclibed aulhoity may, for reasons to be recorded in writing extend the date of such payment or allow lhe dealoa to pay rl'le penalty imposed il1 such number ofinstalment as it may deiemine.

(3) Any amountofpenalty that rcmains unpaid after the date specified in the noticerefered to in sub-section⁽²⁾ orwheresuch datehasbeen extended nnder the Proviso to thatsub- section, alter the expiry ofextcnded Lime, shall be rccovemble in accordance with the pravisions of section 45.

59

I

t t t

CHAPTER: VIII

API'EAL AND IIEVISION

73. Appeal against assessmert."

(l) Any assesseemay, in the prescdbed manner, apPeal to the Appellate Authodty agaiDst ary a,ssessment withiD tblty-llvc days orsuch lurtherpefiod rs may be idlowed by the vi'l alrtllori!y fo1 causc shown to i,J. sxtisfaction f}on] the leceipt ofa lodce ol.]emand ill rcspect tl]ercor:

Provided d'iat no appeal shal1 be entefiained by the said Authority urLless il js salisl'icd lhat such amounl

ofLhe tax, penalty or inlelest. as the case may be, as thc appeLlftlt may adrnjL to be due fion^him has been

paid.

(2) to such Iules ofprocedure as may be nEde, the Appellatc ALrthority' in disposirlg olSubiect any appeal under s ub-seclion⁽ 1), may, -

(a) conlrm, Educe, enhance or annul the assessnent, ol

(b) wlten sucll Authodry is satrslled, for rcasons to be rccorded ilr wriling, tha! it is not pucricable or desirable to act in accoldance with the prcvisions of clase (a), set asidc thiLt lssessment and dircclthe assessing autho ty to makc a liesh assessment after such tlrther inquiry rs may be dlrected.

(3)

while acting in accordance with the provisions ofclause^(b) ofsLrb-section (2)' the assessing authority shall male aiesh assessment in lespectofsuch part ol plrts only and thercmlining part or pafts oftheprcvious assessmentshrll remai11 unaltered and valid'

(4) Pendingdisposal ofan appealrefere.l to in sub-seclion (2), lhc Appellate Authodty rnay' on application, at its discretioland subjectto such conditlons undrestdctiotN as may be pres'dhe(l' stay realization ofthe amount ot'tax, penalty ot intercst fu dls pule wholly orin parl'

(5) Every appeai beforc the Appellate Altthority shallbe decided within r Period oltive years fiom rhe datc olits fllingl

Prcvided that the period ofstay granted by the sltperior court and the period speut 1n decidiug the appeal against the interim order of the AppellateAuihodty, shallbe excluded while computilrg fie period ol Lm'Lllior^:

Provided fufiher that the Appellate Authodty may, forreasons to be recorded' extend the pedod of limitatiorl within one year tiom the cn.lolfive years period lbr a 1u(her period ofsix monlhs'

60

i61 The appeill pending i'ol more than five yea$ ftom dte appoi0ted day under thc Sikkim Sale,( Act, l9E3. shall be dispose.lofwithin peioC oftu.o years from the appointed da,y.

(1)

where theallpeal is not deci.led \L,ithir thc period as specified under sub-section (5) orsub- section (6).1he appealshallbe deemed to havebeel allo$,ed.

--{planation - For the purposcs of this scction or section 76,-

(a) "assessmen t" inclLrdes-

(j) asses.sn'rent oltax and inrposition ofpenalty under section 38 (i:) ,r..ec.rrc rt u'ti.r .lrrJe'

(iii) determination ol interest under section 43. or'

(iv) rectification o I m istake in determiration o I intcrcst under section 44,' (h)

"noticc ofdemand" mcans any notice sen/ed ilr accordancc with thc pl'ovision ofthis Act for rcalizrlioi olthe tax. penilty or iniereslrelened to in clause (a). '7 4. Suo motu revision by Commissioner-

Subject b such rules as may be made and forleasons 1o be recorded in wriling, tl'le Commissioner rnay. on his own motion, r'evise any assessment made by assessing aulhoity or orderpassed by the prescrihcd authority.

75. Rcvision by Commissioner upon application"

Sobjcct to such ru1es as may be made and for-reasons to be recorded in writing,lhe Commissioner may, upon appiication. revise any ordel, othel thau an ot der rcfeDed to in

I

seclion 77 and an ordcr ofassessment against whlch an appeallies under section 73 passed by ^I i

Lhe assessing authoity or the prescribed authoriiy.

76.

Revision by Appellate Authority-

(t) Subjcct to sucl'r r-uies as may be made and for reason to be recoldcd in wdting. the APpellate Authority rnay. upotr application, revise a finalappellate orderfro an older ofassessmcnt-

(.2)

Wheredu[inglhependencyofanapplicationibrrevision,rrelenedhyadealerundersrrh- scction (l) before thc Appellate Authority. thc Commissioner, having discovcred,-

(a) any en-oloromission. whethcrin factorlaw' ln thc final, appellate orrevisional order relened to in sub section (i ), or

6I

(b) any co[cea]menL by a deaLer olhis lufiover olsales or purchxses or claim 1br oi 'ieduclioll any paft ofgross tumover olsales or puirhases or clailn lor lorver rate ol tlx pityable uncler this Act, is 0fthe opilion lhat the amouIlt oflax assessed is ]iable lo be cnhanccd f-]-om\jr'hxthasbcennudejntheoldelofassessmentorintheflllalappe'llaleorrcrisjoil:ti orcler in ll,e maller ol Lhe alnollnl ibr tax so assessed' as lhe case may bc' he may, file, at any time belorc the application lbr I evis ion is tinally heald by the '\Ppei hi3 ArrhoriD J ne'n, nl.dr_1br ro-rglc.herollcca'rle AutllL,il\ t'cenu oru''iurr'r"r'i'rr to in clause (a) or the concaalJnent by the dealer olthe lumovel ofsales or Pu'cheses er incol:rec1 stalement under c]ause (b)

(l) The Appellate AulllodlJ shall, wlile ploceedirg to lcvise utrder sub-seclion^{( t} ) urr' l-inal apl'll,te or'rcvisionrl order ofassessmenL e terliir ihe lremorundum llled und'r sub scction {2) as an applicarion^by the Commissioler for revis ion and pass suc h revisional order as it rlee rns^{fi t}

71. Review of Order- S ubj ect lo such rules as nuy be made. any assessmenL nade or ordcr passed undef lhis A d or dre rules nlade theleu nder by ary otlicer' appointed u nder s ub seclion (3) ol seclion J mly be' reviewcd by theperson passing ir upon application oron his own motion, and' subject to thc rules as aforesaial, the Appellare Aulholity may, in the likemanner andforreasons to be rccorded in writing, review any orclerpassed by it, eitheron its molion or upon an apphcrtion' Porver oftaking evidence on oath:^-

The Appellate Authorrty,lhe Coi-Lmissioner, or the authorised olllcer shirll, tbr Lhepurposes oI this Act, have the sa ne powelS as are vested in a coolt under the Code ofCivil Proccdure' 1908 (5 of 1908), wheir lryirg a suit in rcspect of the lbllo ving matters narnelv' - (a)

enforcing the attendanceofany pe6ona d exanrining hirn o'r oath or alhImalion;

(b) compelling the prcdLtction ofdocuments;^and

(c) issuing commissions.Iorihc examinildon oIvJitncsses and any proceeding under'this Arr hctirrr:

ised ol'l'1cer

the Appellatij Authodly, the Commissioncr, tlle SPecial Co missioner, or thc au lol shall be deerned to be a j udiclal proceed ing within the n'teaning ofsection 193 and section 22ij and fol the purpose of sectior 196, of the Indlan Pcnal Code,1860 (45^(J1 1860)'

62

79. Revision to Iligh Court-

(l) An assessee who is dissatisfied $/ith thc decision of tl.te Appcllate Authoily or Comn]issioner may. witl'tin sixry days allcr heing notified of thc decision, file a rcvision with thcl{igh Couft; and the assessee so appealing shall ser.vc a copy of the notice of tevision on therespondent to the procecdjng.

(2) A revision to the High Cour.t may be made on qucstion ollaw or an cnoneolls decision or lailure to decidc a question oflaw that willberaised in therevision.

(3) The Commissioner shali also be made a party to theproceedings before tlleHigh Coufiwhere appcal is filed by thedealer or otherperson.

(4) The High CouIt may on application either-by the pelitioneror by the respondent rcview atl], order passed by it provided such application is made within one year Irom the datc ofreceipt oftheiu.Lgemcnt.

80. Revisiou or Reviely by Irtrigh Court- Arevision orreview application presented before theHigh Couft under secijon 79 shall be hcald by thebench consisting ofnotless than twoJudges.

CI{APTER IX

OFFENCES AND PENAI,TTES

81. C)ffences and penalties: - ( 1) Whocver. -

(a) Can ies on business as adealerwjlhoutlumishilrgthe seclrilty demanded undet.sectjon 281or

(b) Fails to pay lull anlount oftax payable lor any per.iod in accordanoe wirh the provisions of .uh .ccrror ,4) ol

(c) ftrils to make payment of interest payable under.section 31 or seciion 32;or

(l) Fails to comply with provisions ofsection 54;or

(e) Collt avenes the provisions ofsection 65lol (0 Fails to comply with any requfement underscction 71;or

(g) Neglects orrefu.€s to furnish inform tion rcquit-ed by section 86;or

63

ihl \eglecls ro lumish any irlonratio0 reqLrircd by section 88, shallbepunishablevrilhsimpleimpdsonmerr\ihi(hruJyr\tcnJi,srrmonths,rr q Ilrtirre not exceeding one dlousard rupees or with both ard a coui l havillgjudsdiction n1ay. in rddili,,rr^tu) an-"_ flne as dorcs:1id. order conllscatiou ol'any goods scized u ndct scc tion 6E 1or the oilarc e olcontravention of secLion 65.

(2)

Whocvcr-ciulies on busirrcss lts a Llel erincol)travclttionofsubsection(1)olsection26shall be punishable with simple illUldsonmcnl which lnny extcrtd lo o eyeu or wilh lir le I )ot excceLling onc hundrcd rupees dur'ing lhc pcriod oflhe c(rntintlance ol-lhe o1lencc.

(3.)

Whoever. being a IaDspo er, canicrortransportjDg agen!,1ajls orreglects to cornply r,ith tltc provisions oIsection 60, sha]l be punishable with simple imp|isonment whibh tnay extcnLlto six nonths orwlth tinenot exceeding onc thousandrupees or will'r both, and when theollenae is a continLring one, s,ith a claily fiDe not exceeding one hundrcd rupccs during lhe peaiodof continuarcc olthe oflence.

(4)

(a) t'urrishes a liise relum r'efcricd to in section 30;or

(b) issues fnise tax lnvoice relerred lo in sccrion 55 or produccs a fake o.labricalcd invuirc relenedtoinslrb section(6)or(7)oIsection2l.

(c) Iails !v r$o ut reas orlable cau sc to tunlish arctutlr underseclion 30lor

(d) rclilses locomply with any requircmcnt Lrndersection (i2; shallbe punishable,vith impisoflneni ol cither .lescdplion wlich shall nol be l.ss thiin lhrec months but which may exlend lo two yctu's and wjth tine nolexcccding ten lhousand rupccs ol' withboth, and whentheoflencc is a continu irlg one, wilh adailyfine not exceeding tiliy rupecs dudrg the period ofthe continuance ot'the oflince.

(s) whoeverhas inhispossession any prescribed lb,:m reli ed to in section 21 not obtainedby him under rhe act or by his principal or agent jn accordance with the plovisions oflhls Act or any rules made thereunder', shallbe dcerreallo ilave colDmilted an ollince olcriniinalbrcach of trus I Lr nder section 405 of the lndim Pc,lal Code.^I 86t⁽⁴⁵ ol' I 860) and cvery su ch person who conxrit such criorinalbftrach ol tust, sl'lall. on conviction, be pLlnishable lvilh imprisonlreDl oleilher description which shall nol be less thirn three months but which nlry extcnLl to lhrcc years orwith line nctexceeding ten thousud rupees, orwith lloth.

64

i6l whoever willfirlly attempls in ary manrer to evade ot deGat any tax imposed underthis AcL shilll. il1 acldilion to any other-peialty provided by any la$r fbl"the time belng in force. be llable alsolortl)eofiinceofdishoneslmisappropliationoIpropetyundelscclion403ofthelndian Penal Coric. I 860 :ud shal I be pun isheblc wiih impi sonm enl of either dcscliption \\'hich shall notbe less than lhreemonlhs butwhich may extend to two yeals or wtth finc nol exceeding^ten rhousand r'upecs, or-with both.

(7) w hocver knowingly produces incon'ect aocounts, l eglsters or documenLs, or knowingly^lum ishes ircolrect iflor'riration orsuPpresses malefial illformation shallbe irunishable witll imprsonment ofcither description u,hich shall not hc less than Lhree monlhs but which Inay exlend lo t\\'o ycallt ol wrth fine not excecding ten lhousend rlrpccs or wilh bofi.

(8) Whocver'obsrrlcts any officer maklng inspcction or sealch or seizure or laking other actions undersection 60. seclioo 62, seclion a}4, section 66. section 68 or sectio17l shallbe punishable uith imprisonmenlofeithcrdescliption which shallnotbe less than three months bLll wl]ich rray exterd lo lwo years or with fine not exceeding ten thollsand rupees or $ith both'

(9) whocver abets any o I lhe offences mentioned in slrb'section (2). sub-scclion (4). sub secli on (6). sub'secl ion (7), an d slrb section (8) shell , if thc acl of offence is commilled in consoquence olthe ahatcnrenl, be punishable with the same frunishlnen! as plovided lorlheoffence' ( l0) Any oflence punishable undcrsub-section (i). sub-section (2), sub-slrction (4). ol sub-section (9). shaLl he cognizaLrle and hailable while lhal punishalrc under sub-section (3), sub-section (5 ). sutr-secilon (6), suLr-scction (7). and sub scclion (8)' shal I be cogn izable and non-bai lablc' (ll) Ir nn), proseclllion forln offcnce undcrlhis Actwhich rcquiles a culpablemental staleon the pal1 olaccusecl. the Coun shal] Fcsume the existence olsuch culpable mentel slale Llntll the conffarl^is Prcved.

Explanation¹- In this sub-section," culpable mental state" includes intention' motive, kllowledge ofa Iact, or beliei in, or rcason to believg, a fact.

Explanzrtion 2 lfany ofthe ollcnces under sub-scction (2), sub-section (3) or clause (c) of sub-section (,1) continucs. such offen ce shall be dee]ned to be a co ntinuing olfcnce ( l2) No CoLrrt shall take cognizancc olany offence undcr this Act or the rules madc lherc under cxcepl with ihe sanctjon oithe Conlmissioner and no Courl infeior to thal of a Prcwious Mehopolilan Magistralc or a Judicial Magishate shall try such offence.

6.5

67

42. Special proyisionfbrliabilityto prosecution:^-

(1) Whcr c an offe nce relerred 1o in section 8 t has been commitled by a dealer, cvery pers on who. atthe time the olfence was committed, was in chargeol and vJas responsible to ihe .lealer lor the conducl ol. the busiress olthe dealet as well as the dealer shallbe decmcd lo bc guilty olfie offcnce and shall be liable to be proceeded against and punished accordinglyl Provided that nofiing cont.lined in lhis sLlb secliorI shall render ary srich person Liable to any punishment provided under section {11 ifhe provcs thxl sLlch ot}ence was commilted rvlthoLtt his knowledge or thal he exercisecl alldue diliEJence to prcvent the comlnission ofsuch ollelce

(2) Nolwilhstanding a,'1ythiog conlained in suir-section (l), wherc an ollence undersectiul tll has bee1lcommifledby adealerand^it is ploved that fie offence has beer coixnitted wilh the consent otconnivance of, or lJ attributable to any neglecl on the paft ol', any dircct(n, marager. secretary or other officer, as the case may bc. oIlhe dealel such direcior, marager, secretary orothel otliccrsha1l alsobc deenedto be guiLty ofthatotlercc and shxll be liableto^be proceeded againsL and plrnished accol-dingly

83. Compounding ofotrfences: -

(1) Subjecl ro such conditio.s as may be prescdbed, any penon alleged to have committed^an olfence eilher under clau se (a) orclause (b) or claLlse (c) or ciause (d) or clause (e) orclause (0 or clause (h) ofsub-section⁽ 1), sub-seclion (2), sub-scction (3), sub-seclion (4).^sub- section (5). sub-scctiorl (6), sub-section (7). and sub-seclion (9) ofscction8l,orunderany ruies made under this Act, may, either beib.e or atier lhe commencenleDl of any praceedings ' against him in respect ofsuch offence, at his option, compound sr-tch olTence, and the Commissionermay, at his discrction, accept lion1 such person, by way ofcornposition oisuch offeirce, such sum notexceeding fifty thousancl rupees as may be derermined by the Corrmissioner:

(2) On payment in lull ofthe sum detelmined by the Cornmlssioner under sub-sectlon (I),-

(a) no proceedings slull co[unence against such person as aforesa]d;and

(b) if any proceedings have already beeu conlmenccd against such person as aforesaid, such proceedi^gs shall notbe further proceedccl wiih.

66

CIIAPTER X

MISIELI,A\I.IOUS 8,1. Canccllation of registration under specitied circumstaflces: -

(1) Not!!ithsia ding anything contailed itr sectjon 26orsec{ion 27. a registered c]calcrrvho does noi manarlacturcgoods in Sikldm fol sale. lnay appl! in tl'te piesqibe{i mllnner to Lhe prescribed aulhoily lbrcancellation ofllis rcgish ation gr anted undcr{his Act. ildluirlg the year in whiclr such applicallion is made and duing thc yctu-irnmediiltely prcccding such ),ctu; hedcrlr cxchrsivelJ in tax-fi ee goods specified ir Schediile 1.

(2) TI the Prescribed Au th odty is sati sflcd that the application m 1de ulrdct suh scctior (1) is in order, he shall crncel the registfation.

f3) A rcgistered dealer wlrose rcgislration has lleen cancelled lnder sub-seclion (2) sl'tall.ondnite to be liable to pay tax in accordance with the provisions ofruh-section (4) oisection 8 ln the evenl of hjs rnaking any salc of goods taxable under 1Ii s Acl subsequent to sllch cancellation .r l_ rcgistration. butduring the pedodofsuclr liabilit),1o pal/ tax. he shall within thirty days ofslrch sale, appl) for regisliation under sectjon 26 and srch application shallbc disposcclof in accordance with plovisions olthxt section-

!!!

85. Retrrrn! etc. Io hc (onfidtnlial: - ^E

(1) All parricLrlars contained ln any statement ]ade. ) elul-n lln-nishe.l or accounts or doclrmeits

F

r produccd in accordarcc $,ith this Act. or in any recod ofcvrdence given ir1lhe course olany i proceedings under this Act, othcr than the procecding beforc aCrinrinal Court. shell- s:1ve as

:

provided in sub-section (2), be trealed as confldenti al, and nolwithstandiDg anylhirg contaired in the Indian EvidenceAct, 1872(1of1872), oCouitshall. sxveas aforesaid, beenlitied io requiae any Govemment servant to ploduce before it any such statenlent. Ietlnn, accounts, document or record or'any par-t thereofor Lo give evidcncc be[de it, in respect theteol

(2) Nothing in this scction shall apply lo the disclosurc ofany oithe parljculais refened to in sub seclion (1),-

(a) folthdpuposes ofany prosccution under lhelndian Penal Code. l860(45of1860),Iho

67

PrcventionofCo[uptionAct,1988(49ofl9lJ8),01lhisActolanyplclimin.llyillqu]l) Ior ascer taining wllethei s uch pl oscctltion liesi whicilthe SuECovcmmenl

(b) in connection withany suit or proceedlng irt aCivilCoulllo reliLte\ tu i lly rn'Lner r'ising out

ot xny peNon appointed tlnderthis Act^{is 't} purLy irllLl $ hlch

of any proceeding under this Act;

pLrPoses oIthis Act;

(c) where it ls necessary to make such discLosure for tlle tbr Lhe pulposc ofenabling such Ciovernment^lo levy or rcalize

(d) to art olficer'ofGovelrment any tax ordutY irt-tPoseclbY it; or inlerest

(e) to an olliccr ofCovernmeot^lor Lhe audit o[tcceipts anci lefunds oflrx' pendly

under this Act;

(0 inquiry conceming allcgations olcofluption or ollicial misconduct

in connecdon with^an

agail$t any Govellxnent servant ol for the purpose of taling disciplinary action agein\t

such Goveflxllent sen'art,

into achalge ofmisconduct ilt connection with any Ploceeding under this

(g) in any inquiry Legat Pr'actitioner' CharEred Accountan! or olhel per'son entitled lo :lppeill'

Act against any

behalfoladeaier orpcrson betbrc lhe taxirg authorities Lrnder this Act' lo the aufiority

on

such Legal Pr'actitionet Chiutcrcd Accou ntent competent to take discipliniry action against or otherPerson;

!o pellbrm his execlrLi\^e

(h) lo any ollicer ofthe State Covernment to cllable sLlch oflicer lunctions rclaliilg to ll'le afihirs oftheSlatcl (a)' clause (b)' clause (c)' (i) to any person lbrpuryoses other than those refefed to in clause consiclers slrcll

ciause (d), clause (e), clause (g) and ciausc

(h)' ifthe State Govemmen!

disclosule necessary in thePublic interest'

86. Powers to cal{ lbr iqlornation in folce' the Commjssioner' the Special Subject to the provilrons of any law for the timebeing require' by

Conrmissioner, or ary officer appointed under stlb section (3) oI section 3' may

oflice, ranspoller' camer' owoer ol:lessee'ola warchouse' or clearing'

noice, ir,1y bank, pcsl

usetLll for' or

forwarcling or transpofting agentto lumish to him any inlbrration or stltement

68

ielevant to. any ploceeding undcr tlis A.ct or io pr oduce beibre him any accounts, rcgisters, documents or othei records in the possession ofsuch baDk, post officc, tl?nsporter. can'ier'. owncr cl'lcssee ofa waiehonse or cleaing, forwardirg or transporlirg agent fbr examinJtion lcn the pu{oscs ofthls Act.

37. Stateurentto be furnished hy dealer, transporter, owneror lessee ol warehouse, etc.: - If. in the opinion ofthe State Goveannent. lhere is apprEciable evasion oftax in respect ofany goo.ls. the State Govemment may, by notification, specify such goods, and thereupon every pel'sondealingintransporting,carling,orcleJrrrrg,[oruaLdJngor'warehousrng,whelheras ov/ner or lessee ofa warehouse such goods shall filmish a statemenl or declar'ation in such form, within such time. in such manner', iuld fol such pedod, a.s may be specified in lhe notil'jcation. InfonDation to []e furnisheri by dealers regarding changes ofllusinessl^- Iftrry dealer"to whom the provisions of sub-sectior (2), or sub-secfion (3), ofseclion 28 apply.^-

(a) sclis or otherwisc disposes of his business oa any part ofhis husincss or'effecls or comes to know olany changc in thc ownership ofhis busincss, or

O) discontinues his business or changas his place olbusiness or'opens a new placeofbusiness, or

(c) discontinues orchanges l'ris warehousc or opens a newwarehouse, or

(d) changes thc nanc or natlrfe olhis business or effects any change ilt the class or classes of goods in whicl-r hecanies on hisbusiness and which is or are spccified in lis cefiificate ol regislration, or

(c) in the case ofa companl effects any change in the constitution ofits boad of dircclors. he shall. within the prcscdbcd time and in the prcscritrcd manner, irlorm the prescdbed altlhod5' accordingly and ifauy such dealeldies. his legal rcpresenlative shall, jn the likc,nanner' inform thesaid authoity.

39. Additional infbrmation tohefurnished hy deale.s: - Evcq, rcgistered deeler shall, wilhin the pe!-iod prcscibed, iend to the presclibed authorilv x dcclaration in the prcscritred manncr, statingtl'te names of he managerand ofallolficers of otherdesignalion who aleresponsiblefor l:nslning compliaice with any rcquirement made of

69

such clealer undel lhis Act,irnd in the event olany change oisuch mlnager (n-olhcr olliceN' the dealelshallsend a .eViScLl deciantion in the like mannelli) fie sdi(1aullrorily u,]thin such Iime as may be prescribed.

90. Supply ofinlbrmation by dealers in respect oftranst€r ofg{'ods otherwise than by way ofsal€:^-

If- itllheopinion ofthe Slalc Governnent, it is necessajy toobteill inlblmation relxtinS^Lo lransfer ofgoods otircrwise than by rvay ofsali3 in Sikkim, it nuy, by notiticadon, call upon clealers or such class ol classes oldeale$ as may bc specitied in tlie notiUcalioll, to furnish such iaJor_mation relating tosuchgoocls, in suchmifincr, alsuch inleNnls, tbrsllch perio'l and rosuch authority, as may be specified in the notificatiorl.

9l- ltansfer ofbusiness by registcred deder:^-

where owoeNhip ofthe buslness ofa rcgistered de., er is ! ansllned absolLrLely by sa1e, giii'the beqlest, iD,ltritance 01 othelwisc, or lr llnsfel']-ed by way oflease and lhe lll lsi-eree or lhe lessee cirries on suchbusiiess, either in its old name oLin som. other nalne, tle transtblee or the lessee shall, 1br a1i the purposes ofthis Act (except 1br the Ii.tbilities un'ler this Act :1lrcxdy dischirrgedby suchdealer, bedecmed tobe.u.lro hcve a]waysbeen rcgisLercd (inthcc;rseol a le.Lse 1br so long as thc lease subsisls) lls iltheceltificale oi registlation olsuch dealcr ha(l inilially been gl:mled to the ransfeiee^or the lessee: and the trul'sleree ordle lcssee slldl^on appLcation lo the Commissioner, be entltled to have dt cel1iltate ofregisi]'t[iort amended accorihgly'

92. Partial transler ofbusiness by registered dealer:

(1) Where the ownership ofa part, division or unit ofthe busincss of r registcred derler^is [ansferealby sale, gitt,bequest, inheritance orolhcrwise, o tanslinedby way olaleasc or licence, ancl if the Lransfe|ee, lessee ot I icelsee, as the case may bc, caLLies on such bus iucs s as a pafi of his existing business in solre othet name, hl: shal1, ibr the pulposes of this A'r (cxceptfir fie liabilities un.ler thls Ac! alre dy discharged by the lransfcror') bc deen-rcd Lo he n dcaler rr dcfault in the Inettcr ol payment 01 llny tax, pentlly or interest pilylblc by or d[c fi om thc u ansleror rl'l rcspecl ol all fie pe ocls ilDlnodiiltely ploced ing the datc ol such n rrrslir in relation to such part, .li vision or Llnit.

'74

72

rl)

lithe Lans feree. lessee or licensee is aregistercd dealer and calTies on thebusiness refened to in sub-section⁽ 1). he shall. by an applicalion undersection^{26, get} his cedficate ofregistrJtion duly amcnded.

a3) Ilthc t |an s felee. lcssee or licensee is not I dexler registered dnder his Act and if he car ics on husine^ss fronl srrch pau1. divisiotl or unil hcshall, notwithstalldirg anythingcontained in section 8 be liable lo pa), tax under this Act frcm lhe date ofsuch lransfb.and be llable for'rcgisrration under section 26-

93. Canccllation of registratioD and ttaDsfer of business I^'

(1) The prescihe.l .luthodly may canoel thcregistlalion ofany deelerin any ofthefollowing cases-

(a) in the case oI incorpoaatcd body, closed clowr. sold or ransfen ed or if lhe incoryomted body otherwise ceases to cxisl:

(b) in lhecase of irdividual ownersh\). iftheownerdies:

(c) in thccase ofa firm orassociation ofpeNons ifitlsdissolvedotif leregistered dealer ceases lo be cngagecl ill the business ol ifa pcrson is rcgislered by n'listake'

(2)

_fhe canccllation ofrcgistmtion n]ay he on praycrfl'om the dealer oron llle prcscibed authodty's finding_s.

(r) Alllhe goods that remain in slock al the ti mc ofcancellation ofregisllation (including capital goods) on which inpul tax has ahladyllecn given credit' tax shallbe assossed and coller]te'l in the anneras may be Prescibcd.

(4)

]hccirncellaLionofrcgisfationwilltakeeffectftomtheen.lofthcperiodirwhich'lercgistration is cancelled unless the prescibed authority ode$ thecanccllation io take effect on an earliel- date.

(5.)

Any clealerrcgislered un.ler this Ac! shall mention lhe Regislration Certificate No issuedby authodty in lris relurr, challan. peliLion and otherdocuments used lor the purposethe prcscdbed

94. Barto proceeding in Civil Court:'

(1) No assessment ma.le and no orLlel passed un'lel this Act o' the rules made thercunderby^the Commissioner, or any o lficer aPpointed unde( slrb section (3) ofsection 3' and no order 1l

passed by the Appellate Authority urder this Act shall be cnl1ed into question in any Civil Cout and save as provided in section 74, section 75' section 76, or'scction 77, no appeal or application tbr revisioil or review shall lie againstsuch a-ssessnrent or order

(2) Save as provided in section 78, no orderpassed by Tax Recovery lnspectorunderthis Act or therules made thercunder and no older p:rssed upon an appeal from, ol rcview or revision^01' aay order ofthe Tai Recovery InsPectorin accoldance with the provisions ofthis Acl and the rules made thereundet shallbecalled in question in any CivilCourt, anl:l, save as provirled in sectionTB, no appeai,rcview orrevision shall lie against such ordet

95. Manner of payment of tax, peralty, interest, etc': - Wherc the mBrner of payment of any tax, penalty or interest payable by a person or any surn detennincd by the Commissioner in compounding any oftince under this Act, is not provided speciflcally elsewhere in this Act, suchtax, penahy, irttercsl or sum shall bc paid inro^a Govemment Treasury or the State Bank of Sitkim or any other bank as may be notil'ied by thc

E

Govemment.

96. Power to prescribe rates of fees: -

(1) Fees payable upon a memorandum of appeal or appiication for review or revision, or upon any othermiscellaneous application or petition, lor reliel shali be such as may be prescribed:

(2) The fees as afo.esaid shall be paid in court-fee stamp to be allixed to the memorandum of appeal, application for review ot revision or oiher miscellaneous application, as the case may be. relerred lo in sub-section (l)

97. Powertomake rules: "

(1) The State Govenrment may, by notification in the Ollicial Gazetle make rules for ctmying out the purpose. ol lhis Ac

ifi (2) ln particular and without the prej udice to the generality of the foregoing power, such rules may provide fbr, -

(i) the mamer of rnaking deductions for detemining the taxable tumovel under clause (&.Lxvi)^$s $

ofsection2;

(ii) $the term of oftice, filling of vacancy and other conditiors oI seryice of the Appellate

:

Authodty unde.rsub-section (3) of section 4;

:

12 :

74

(ii1)

fte functions ofthe AppeLlate Authority under sub-section

(4) of section 4; (c)

(i,) fteconditions aod rcsftictions fbr dcducting sales iomtumoverofsales' under clause

olsub'section⁽¹⁾ ofsection^9;

16'

(v) rcstrictions ancl conditions and lhe manncr of paying composile tax under Section tax to be paid by the contractor ancl the time vithin which lhe tax

deduction ofcomposile

to be remitted to the govemment under sectioD 17:

(vi) infomation ofexecution ofworts ofconlract or letter of intent under sub-

supply of

section I rof ' 'eclioll

I8:

(vii) the form or challan showing the amount oldeduction oftax al sor'llce undel sub-section

(5) of section i9; (\,iii) mannel oI claiming input tax credlt and corditions and rcstrictions subject to which

lhe

such cl.aim be made under scctjon 21;

(ix)

fte manrcr ofclaiming inpultax credilⁱⁿ case ofsale specified under section 5 of the

Cenlral Act^on zero_rated goods, extent and mannelofclaiming tax credjt and manner

of refunding the tax paid by foreign missions undersection22; (x)

rcquisite particulars for credit and debit notes in the tax invoice Llnder section^{25 ;}

under sub-section (2)' the manner of(xi) the form and manner ofaPplicatio! fo1 regis! ation gmnting celtificate ol registmtion foim of certificate bi regisfration under sub-section

;

(3); Nanner ol granting fiesh cefiificate of registration under sub-section

(5) and 'estriclionsandconditionssubjecttowhichamendmenlsinlhecel{ficateofregish2tion are to be macle under sub-section(6) ofsection 26;

(xii) the manner for aPPlication for voluntary registr-ation undel sub-secdon

(1) and (4) of section 27; any

(xiii) offumisliog securily under sub-section (1' and lhe manner of rcflmding the manner amount o{ secudty^or

(5) of section 28; Partthereofundersub-section

(2)

(xiv) ofllolice fol payment of penalty under sub-se'tion of section 29'

the form

(xv) the manner of sewing notice and fumishing of quarterly rctum in the form and manner

73

b._

75

by the dealerundcrsub-section (1),lhe manner ofnotice.md l-umishing ol'the quafierly starement by the registe! ed dealer lvitir details ol lransactioos relating to salcs and purchases aod the folm and manncr oftilmishirg sucil starernent under srib-scctior (2), thc lblm and marner offumishing yearly rttum by thlj r eBjstered dricler undersub- section (3), the foflr and mamrer offillillg a quadelly abstmct statement by the dealer undcrsub-section (4), the lbrm and manner 01'submitting reviscd rctum or statement under sub-section (i) and the form and manner ofsubmission Jl proofot pa), ent undcr sub-section (9) ofsecrion 30;

(x\r,) the date.lnd mamer ofpaynent ofintercstbythe dealc'ruralersub seclion (3) ofsection 31,

(xvii) Lhe citumsrarlces:urd conditions ofexemp on liompayment crfinteresttmder section 33; (xviji) the time and manner olscrutiny ofreturns under sub-secLion (2) ofsection 37;

(xix) the manner ofaMiting ofreturns and statements ofthe clealer ru]der sub-section (2) &

(3) ofsecLion39; (*\) the nlatuler oldetemrinaLion ofamountol intercstand the manner ofissrLe ofnutl,Jc dirccting the payr]-tent of additioral amount of interest under section 43;

ixxi) tlle lbnn aDd nannerofservice ofnoticeon the ceitificate-debtor under sLrb-section (5), the fom and manner of{iling ofobjections by fie ce ificate-debtor under sub- sectiou (7) and the marner and periodin which subsequentmodilication, enhancernent orreductioll o fpenalty or interest as aconsequence olany assessmenlmade, order passed on appeal, revisiol orrevierv under sub-section (9) ofsection 45; (r,iii) tlie fomr ofrctice rcqLidng any person to deposil rnoney due in the Govenune[t Treasury State Bar⁽ ofSikkim or any other baik under sob-section ( l ) ofseotion 50; (:oriii) the manner in rvhich the amount oftax is to be rehmded to a dealer under section 53; (&riv) the lorm and the malxler ofkecping registers and aocolmts by the dealer and the registercddealerDndersub secrion(1)ofsectiol154;

(]c(v) fbnn ofa udit ieport and parriculars included rherein Lrnder.sub-secrion ( 1 ) ofsection 5 8;

(xxvi) the marner and the peliod witlin which a declaration shallbe limished by the dealer the name or narnesofthe manageN under sub-sectior (l) ofsection 59;

t ¹⁴

76

)' (rlivir) the rnaintenance ofproper accounts oftaxable goods iranspofied b.v the t'ansponer under sub-section (1) ofsectlon 60;

Ocffiii) the fonn containing such partjcular in respect ofsale ofSoods undersuh-section

(1) ofsection 7l;

(xxix) rules ofprocedure oftheAppellate Authority under sub-section (2) and conditions ard estrictions for staying rcalisatjorl ofamoullt ofta-r under sub-seclion (4) ofsection^73; -4

1rxx1 rules _elating ro sou -noru rer ition unoer:ecli'r relal:ng Lo revislon 'r.ld 'oon applicatioo under section 75, by the Comlrissioner:

(xxri) rules rclaling to revision offina1 appellate order under sub-section⁽ 1) ofsection 76 and relating to review ofany assessment order by any officer tmder section 77. by the Appellate ALlhoiry;

(xxxii) ihe manner and tlme within whjch the registered dealer shall solrd the infonnation about change ofbusinessto lhe presc bed authority under sectjon 88;

(xxxiii) the manner and period within wh ich additional infonnation shall be sent to the plescribed authoriry under seclion 89;

(xnir,) f'ees payableupon memorandum ofappeal or application for review orrevision,^etc under sub-section (1) olsection⁹⁶¹

(xxxv) prescdbing the aLLthorities and assessing authorities to carry out the functions^and exercising the powers undet the Act; and

(xlxvi) any other nratter which may be, or is required lo be prescribed

(3) in making any rules underthis section, the State Goveoment may directthat abreach thereof shall bepunishable wilh fine not exceeding fivehundrcd rupees and, when the offence is a contlnuing one, with adaily fine not exceeding twenty-flve rupees during the continuance of such ollcnce

98. Saving in relntion^to sales outside Sikkim, Inter-State Salcs, and Sales in Course of lmpor'l orExPorl: -

Nothing in this Actshallbe construed to impose or authorize the imposition oftax on the sale or purchase ofgoods where such sale orpurchase takes place:-

75

(j) Any applicalion iorrevision, review orreference arising lrom any orde'passed bclore the appointed day or any appeal arising iiom^any a^ssessment ol ta-\ ol delcrm in atiou oI interesl made belore such appointed day or any application for refund, or 1br der'lerntion tbrm in respect ofany period before such appointed day, undet the repealed Act, if made beforc such appointed day zmd pending on such appointed day or if rnade on or i:ltcr such appoiDte'l day, shallbe disposedoffin accordance wilh theprovisiols ofthercpealed Actl

(k) The Commissioner orany othe. authodtv to whom po$'erin this behallhas been delcgated by the Cornmissionel under the repealed Act, mey, on his o/ i1r own motiun, rc\ i(\\' or revise any order passed before the appoi ledday in accordance wilhthepr'ovisions ofthc rcpealedAct;

0)^Aiy application for regislration, amendment of cenificate of registration or any application forpermit, or for declaralion, ior [anspoft ofSoods into Sikkim, percli g on the day immediately betbre the appointed day, shallbe deemcd io have been made under lhis Act and shall be clisposed otf in aocordance with the pl ovisions of this Act;

(m) Any tax assessed, interesldetemined orpenalty imposed under repealed A cl inrespcct ofsales or purchases made, or in rcspect oftax payable, or in respect olconftavenlion ol any provision ol the repealed Act, before the appointed day, shall be payahle or recovemble in accordance withthe provisions oi the repealed Act

100. Repeal and Saving:-

(l) Notwithstanding aoything contiiined in tlis Act, the provisions coltained in Sikkim Sales Tax Act, 1983 wilh regard to the commodities/products, which are covered by Sikkim Value AddedTaxAct,2005 shallstandrepealed:

Provided that, the provisions ofSitkim Sales Tax Act, 1983 shall, however, in so far as they relale to the coinmodities/products, whichdo nol fall under the puryiew ofprovisions ofSikkim Value Added Tax Act, 2005 shall accordingly corrtinue to be governed by the provisions : f Sikkim Sales Tax Act¹⁹⁸³

(2) The repeal shall nol, -

(a) rcviveanything no!in force or existing althe time olwhich lherepeal takes eifect;or'

(b) affect the prcvic Lrs operation of repealed Act or anything done or suffered thereunderl or '78

78

(c) affect aoy right, privilege, obtigation, or liability acquired' accrued or incuned underthe Iepealed Act;or

(d) affecl any penalty, fodeilure or pu. ishment incured or inllicted in respect of any offence or violation comrnitted undet dle provisions ot' the repealed Act; or

(e) affect any investiSation, enquiry, assessment' proceeding, any other legaLproceedjng or remecly instituted, continued or enfor'ced under the repealed Act; and any such penalty, fodeitur'e or punishment as aforesaidorany proceeding orremedy instituled. continued. orenforced under the repealed Actshall bedeemed to be instituted ' continued or enforced under Lhe coresponding provisions ofthis Act'

(3)

All rulcs made and notifications issued under the provisions oftherepealed Acl and rules made thereunaler and in force on the clate ofthe cofunencement of lhis AcL shall remain in lorce unlesi such rules andnotifications aresupeNededin exprcss terns orby necessary implication^by the provisions ofthis Actortherules made and notrfications issued thercunder

(4)

Any circulalreference to a y section ofthe rcpealed Aclin any rule, notification, regulalion^or shall be deemed to refer to the relevantcoresponding section of this Act' until necessary amendments are made in such rule, notjfication, rcgulation or circular'

(s) The limitations provided in this Act shall apply prospectively and all events occurred^and all

the Limilations

issues arising prior to the

101. Power to remove difficultiesr^- Ii any difficulty arises in giving effect to any of the provisions rf this Act' lhe StaE Govemment

by order. notinconsistent wjth the provisions ofthis Act' remove the difficulty;may. provicled that no such order shall be made after the expiry oflwo years fiom the appointed day

19

SC}IEDUI,E I ISce S€ction 12 (a)l A.ll soods mentioned helow are exempted from

51.

& i$r qEn\ NerrYl rdi..rnd irrors 8s,h^m. Pr trLi. h &iossk t y c.*..

Gft ;, *,,il,r,..."-, r1!l1l,j:11Ilan!r

;*,ra ^r" "994915 -"

Srn.tr fldfd rglroz.|( n' i "- ",,,,^,.. ---." '* "t fttrrd, n b, tlig otrs rfruriom R.rgr"*p E,..r."' *" djl-ry

80

srcrod mmnD lJ, ro.wn as yrgrxNbr! 'hre!d,

,18

49

50

Mxt locallv krown as rnidur. Dxtl. ryholly u ciirciprtly ol.rf.,aus cory,nlonu kDowtr ns !ota -dh. ouirrLkria[- Rx(ar, rcrd 1iD Nlnlar-dalr,

5:l

Co.onurinshell &seoafuredkemelof coconur.rherrhriooprr

Mtr!dh!s nrdcolerklnda,pl,oolLrhrrijhrdo.

l'uIr'ed i ioe, comnronly hno*i rs lU ur i llar. cd .r berren i!e, !on,-,," ty kn.*" ,s C,i;;;;;h"J;;i;;;;;I '

Hur( includnre gru!idnut husk

Bxtreles (hr{le olshetl, glN,lr. or plli c)

Appalan. virm and v hll

llnpmcess.d g[.d Ld]ves oIEn

Lcrf phies r rd.up$pr!s!eJ o. nirched

68

lt Seeds olsin$. vclct,bles lrd uo*er. '12

13

l5

82

llillirll)I-.LIi iI iSr. -ttat;c! i:l (li) I Tlt€ goo.is !.cniio!ial }.i07 n..Iieirl' rr^lJ T tr( rii:' fr_:ic oi 1 p'f rerlt'!! :lc'.ritni.n 01 irooll . - )

S3

82

SCIlrlnluLE^l\1 ..12(rl

[Sec Sectior) ]l ,{'he goods r.lrcfitnr ed bciGw are litblc to V A T at tlte rat( oi 4 pe. ce nt IL',IDt]S'I'ITIAL II.{PUTS ANt} II{ITORh'IA1'IOI{ TECHNOLOGY I?IIODlJCl'S SI.No. Drscriptiun uf go0ds

I qr !lLD( Llr-!15 l LIL rlireLl'ttlli\l

2

CLyrc.ol,.rLde, glyrc'ul$nrdsrnJ,qlt..ioLlye) Vee.uble*r\rr1ot!,e,thrnoiglr.'iJ!t,1,:crwrr.olhu rJ:.' \!rrr\rnd n'ir.mi.dr, wrrrIr o An'dulo.vcgeublrtiBboile(.oldu.d ddrril'r(.d srLPhu'se . bldn, p.lvm.r sed h) r!ni1\x'ori! m.rgs Liqtrm sl'i.os. (Lton.mdr.itrrll

a

vrnid.se nres xtrd.!tr.rirdci ii,.luL]l,! linlgltrou! nr gri.s( ucr ud..tr(trl:rlls \rdl r r'-$Dcr! NirLrl o,cs xrd cor.etrtrtcr

{\nIh...s rDd corcentrt.s

ALumtriur. orer xnJ .o c.nrrres

2 Lcnd orei rnd..dcctuites l Zirrc ors,rd.oDcerrdls L5 Chroniur. orcs xra corca E1!r Tung er o,t5 ,dcorceDfll.! t-l Ii':. trn.rllatrunoks atrd oo ..nidlr is MoLlbdcnnr o,ts ud.o..eitlt.s It

'l rxnLoin.rus atr.l cor.crkrtcs N,oLiDr,tanILL'nL, vo]rdiu .rznc.rlunro,tsMdcor+ntrrt! :r

i'rcciorrncLriorcsnn'lco'.u0hrtes

22

6 trdlitd nrs(sldgsrnd) lio,n iin-q. oiiro0 o.neL 2i

28

l0 _rl 12 hrdunrirlcahl$liliqhvollrstIh.r XLI'E (]xlrles,jelv nLl.d crlrl.i opri.rlli)r'\l l3 !luoridc, chlori ru b'onritre rsd ioCire

il

Strlrl,rr, rtrbLi,ncd o, rr..i)lhrcd, cllLt,idxl suiintr aflbo {cxrboD Llrcki & orher lo ns.Ic 5onr.tel$wh.rr\pornrduril.ldd'!) Hrd'ogen, r c grs.s & othr'io lnckh

)1 iliuti - rli,L;" *nt, *"rul., tnie u'lh nthls, scatrditrD iDd vltriun, wherh.! or not irncrdrx'd oL rrld xllo)"

86

;: rrro,r E: i rsrrr'lt-l L,'rri rrr n rr rf^1\ ii. L,irtJ ni*f iii,l"; *iliii;;.i-,.,r iii,q,i! r ,. * ,! s. n.'ir. .ttⁿ iFi.-]lli-*hs

,

Drrr,jLr.fL.lrffij,tr)r.r(,Lr'I.rLqbicr-i ,ffi ;-dt,h,tfi ;ffi ;;;L,;r'd ll. ;ri"r"[i"rfi ;;riffi;,-t;rry,.rr. ]-ffi - 8l

84

:;i lirlr.!rLi.nr!r(,r,iL,u1yii.xfl!r, (Lkr0lrl!r!L.rhrLidirr,0!1..J.)l)aPlr.\)rr!jLhri lLrL!-r'LiL'r l,o-,r,r.t,ttr1i.,.,,,,*,r,utl )c rriJ\, r!rl! i !Lro.rrDorf ri' 1r(Li thdrrrrldLi!'\ )rliLlcr' )tr'! Llr\ irJ lril,r,r:-i-,s",:.,.,,1'td.trf,!:r'tr:!lLrj'lrij.trlrri(.rrJtJtlrrrrxt,rb'LliL':'nrL'r':rL0l'J'itLd Erir-].,,. Ui.,.1," i.r,.,1..,,. rui Nir,iLl.lii,tr ! rodrnd otriL.LerL!116

llrr.:lcli.!omP!trd.is^tr rl,.rv!e, ldrtrloi(r!trLl

l

m !r ,!nrl . rrL!,1 t.tLlr$ err

(-l-;;-*..1"",,*** rrLl,r,., Lol:li..ri.r tl d! ri irrl)rrrtiorr Lrri'l or:)tr(lr'r' !r!r rL'roiurLL'r:

enlm^,,1 r nrrr"ultl lttrtit!11lll1 --,;

Of'rcrlfibia rr.l,r ! !Jbl6 'rfibrctunJcs

SCHI.]I}UI,E^V lSee Section I2 (e)l 'I he goods mcntioucd below ai'e tiahle fo V A T at thc rate o1 12.5 per cent DerriDlioD ol soods

Der! . bLr.l l.rd. dxre mirr a0r. s inCA lr c rlip!. p.k. r ( N.ti pr.d(cls (015.ii lhitr {r.rs xtrd.!r1!!rtr,,.1I rNlt rlrt spu.li.rlly n:.LttrL(Ll!rd. rl C.ra1!. pr\ner fc i'U t,dr.h.ollee rid rolJ.e drltrk '

., ,, , , , i ,,jv,'1.",,,,;,",,.,,..r...,,,",minr rrs(rorb mrn Ld' or r Lr's rr rtsr t E: rs sc idld'r') 'r \ tr,iL!⁽ )!Llirs iirr$

{ rn rtr.! rrd d.s. LpLloj iirl:djg !rl.rel n)lr\t!r.n. !lrLl i r$rm rr \ I I .l lLJlr,d!\ro,r.lrdi!,w,iLrrrdp$r.dLyr..iri.rllh\ilrtri.toru ne!Lr!r !rllo\!u.r ].r rl l- gi,f ootiLr! nir$ {o![:l.d b! ]n rr',!L^rg ilp: r r hta L:s rl Itr rr.rrr\.!^Ll I !r I !\

Itil'nburk, i.l r,!pslr chnt fo lrhorogr:Ltr,n crnr.ms rid cnlrgcE lNn lighl xm us. Phoro bldk. LcDses. nrft iicrudiis x ny rilE aod firn' pr.rs rnd prares. r.1l tru.l,i,r (rinos.md.irimrgn,tcquiprt 6.chcnhrrs sed r the PrrcbBrahi. dotlopft andd

-r.'il"' '",lreyavlve lffi

SIKKIM

assessinq aLthorlly, such deater sha tbe a[owed 1o deducl from his gross t!mover sLrch arnoLnltowards labo!rcharges and oiher tike charges as the said aulhoriiy shal delermneonthebasisoilhenalureotworks recordsavailabebeiorchtm and mak ng such veriiication as may be necessary, b!1 .at exceedhg totly percenl ol tlr e tota va u e oi lh€ works executed by s uch deater:

their powers and Iunctions delegaled by the ComTntssioner or confeffed by or Lrnder the Act or the rules made there !nder:

SIKKIM

:ElEltE eslablishment, or canteen run by a unitot such army orderence establishmenl, shall be liable for slch rate or rates of tax, and on such condilions, as ihe Governmert may by noiitication, specify from time to time,,.

SIKKIM

SIKKIM

le)^a supply t)y !!ay ol cr as part of any servlce or in any olher manner !rhalsoevel oi goods belag food or any olher artic e lor human consumption any drlnk lwhether or nol intoxlcating) whe'e s!rcfl supply or serv ce ls for cash, deieried paymenl or other valuab e conslderallon 1f) a transJeroi goodsby any !nlncorporated associallon orbody oi persons to a mernber lhereo{ for cash, deierred paymenl or any olher va uab^e conslderai on, and s!ch iransler, dellvery or supply o{ any goods shal be deen ed to be a sale ol those goods by the person mak ng lhe iransler' del very or supply and purchase of those goods by the person lo whom such ir;nsler, deliveryorsLrpply is made, bui does not include a mortgage' hypothecat on, charge or P edgel

(1) specil ed ln ScheduLe ll, lll, lVandVtothisAct heshalbelabletopay tax on the purchase oi such goods, t the goods are:-

The Stale Government rnay, by nolification, addto, amendoralterany of lhe ltems and the rates ol tax ln the Sched!le to this Act."

i (4) No person or any aulhorily sha award \,1orks erenpLed rron

(iii) after clause (ii), ihe IolovJing claL.rse shaLl be nserted, namelyr. '(iii) ii ihe dealer faiLs io^pay ihe assessed iax or penaliy or boih wilhin lhe llme prescribed under clause (i), the prescribed authority may. afler provlding an opporiunily oi being heard, pass an order lo close down ihe businessof thedeiaulertl lheduetaxorpenaltyorboth spaid,andlhe icensing a!thority unde r any olher law ror lhe t me belng in force, if any, shal sLrspend the trade lcense l jlihe order remains in force.' Amendment ol 21. in the sald Aci,ⁱⁿ secton^42,-

.

"64A.Survey^and verif ication- (1)^For the purpose of idenlilying dealers who are liab e to pay^tax at the rates specllied in the Schedule lo the Acl or compounded tax under the Act or lhe tax under section 26A, but have registered as composiie dealers or remained unlegistered, or lor verificat on of documenls in ihe buslness premlses, ol any k nd requiled 1o be rnainlained by lhe dealers underthe Act or siock oi goods IoI sales kept in a store or godown or warehouse, whether declaled or nol, the Commissioner shal from ume to iime cause to be Lrndeataken or any authorlzed prescribed aLrthority may unde(ake^a sLrrvey oJsuch cornposite dealers or !nregislered dealers, orheshallcause to be conducied or any authorized prescribed authofily may conduct^an n _ q n u e lry io , r a r s s t s h ' e cas ,2) oner

belore the authorit es in the Check post in the Forrn by whateve. name I may be ca led, and in such manner as provided tn lh s section or as Prescribed:

liil airer rhe words 'transpon:nq agent' appearr"g^rn lne second prace^ard beiore thewords'loIoxaminal:on', il.ewords "orany perso' ora'lthor'ty awardingworks conlrait, releasing payment, processing bills for payment or princi;al cont[aclor and sub'conkactor," shall be inseded Ely Order.

4

ln lhe said act, in Schedute V,