(1) This Act may be called the Bihar Taxation on Passengers and Goods Carried by Public Service Motor Vehicles, Act, 1961.

(2) It extends to the whole of the State of Bihar.

(3) It shall be deemed to have come into force on the first day of April, 1950.

In this Act, unless there is anything repugnant in the subject or context,

(a) business means the business of the owner for the purpose of this Act;

(b) Commissioner means the Commissioner of Commercial Taxes or Additional Commissioner of Commercial Taxes appointed under sub-section (1) of Section 8 of the Bihar Sales Tax Act, 1959 (Bihar Act XIX of 1959), and includes any other officer upon whom the State Government may, by notification in the Official Gazette, confer all or any of the powers or duties of the Commissioner under this Act;

Management charged lump sum from the employee using the vehicle maintained by the Management and reimbursed the same from the salary of the said employee. Held, Payment for the vehicle being a sine qua non for the use of the same. As per interpretation of the provisions of Section 3(i) payment even at concessional rate is fare. Owner held liable to pay tax. Fertilizer Corporation of India v. State of Bihar, 1973 BBCJ 775.

(c) goods includes live stock, and inanimate things of every kind (other than the equipments ordinarily used with the vehicle) carried by a public service motor vehicle, except living persons, but does not include, in the case of a stage carriage or contract carriage or motor, the personal luggage allowed to be carried, free of charge, by a passenger travelling by that vehicle;

(d) owner means the owner of a public service motor vehicle in respect of which a permit has been granted by a Regional or State Transport Authority under the provisions of the Motor Vehicles Act, 1939 (IV of 1939) and includes the holder of a permit under the said Act in respect of a public service motor vehicle or any person for the time being in charge of such vehicle or responsible for the management of the place of business of such owner;

Trucks hired by assessee for transporting goods. Owner of the truck was only paid hiring charges and was not authorised for collecting taxes. Assessee being an owner held liable for payment of taxes under Bihar Taxation on Passengers and Goods Act, 1961. National Transport Company v. State of Bihar, 1978 PLJR (SC) 72.

Rule 2 of Bihar Public Carrier (Licensing of Collecting, Forwarding & Distributing Agents) Rules, 1971. Booking or forwarding Agents in charge of the vehicle entrusted with the duty of collecting the fare and freights etc. can not be included in definition of owners. Holders of the permit and liabilities of the vehicle must always remain unaffected. Jagir Singh v. State of Bihar, 1976 PLJR (SC) 389.

Matter concluded by the Tribunal on the basis of primary facts is a question of fact. National Transport Company v. State of Bihar, 1971 PLJR 388.

Business of providing transport was being carried by the petitioner company. For providing transport other trucks were engaged by the company on hire. Petitioner held in charge of trucks under the provisions of Section 2(d). National Transport Company v. State of Bihar, 1971 PLJR 388.

Petitioner being in charge of trucks, engaged some trucks on hire for providing the same to others. Petitioner held liable for being assessed for fright released by him. National Transport Company v. State of Bihar, 1977 PLJR 47.

(e) passenger means any person travelling in a public service motor vehicle, other than an officer of the Commercial Taxes Department of the State Government empowered to inspect or search such vehicle or an officer subordinate to him required by him to assist him in the performance of such duty, a Magistrate, an officer of the Transport Department of the State Government, a Police Officer in uniform, the owner, the driver, conducter or the cleaner of the vehicle or other employee of the owner performing a specific duty on the vehicle;

(f) place of business means any place where an owner carries on business and includes any place, where either usually or for the time being he keeps his public service motor vehicle or the account of his business;

(g) prescribed means prescribed by Rules made under this Act;

(h) public service motor vehicle means any motor vehicle used or adapted to be used for carriage of passengers and goods for hire or reward and includes a motor cab, a stage carriage, a contract carriage or a public carrier; and

(i) fax means the tax payable under this Act and includes the fixed amount determined under Section 8.

(2) All words and expressions used in this Act and not defined herein but defined in the Motor Vehicles Act, 1939 (IV of 1939), shall, unless there is anything repugnant in the subject or context, be construed according to the definitions given in that Act.

Rule 6 of Bihar Tax on Entry of Goods Rules, 1993. Filing of declaration in Form ET-IX alongwith other evidence like bill, invoices or cash memos issued by first importing dealer to the satisfaction of the authority by the subsequent dealer for claiming exemption from liability of tax is only to prevent fraud and to facilitate administrative efficiency. Jai Ram Das v. State of Bihar, 2002 BRLJ 52.

Exception to the revenue notice issued to the petitioner asking him to bring necessary books etc. for determination of tax liability can not be taken because business being run by Hindu Undivided family as a H.U.F. business. In such case all the heirs and other members of H.U.F. are treated as owner of the business and they are jointly and severally liable for payment of the dues. Moreover, petitioner cannot take benefits u/ss 7(A) and 7(B) of the Act regarding limitation from the order of High Court because it is neither appeal nor review or revision for assessment which has been barred by the proviso. Direction given to the petitioner to be present before the authority concerned and file objection alongwith necessary records. Santosh Kumar Agarwal v. State of Bihar, 2006 (4) PLJR 612.

Owner Meaning of. The definition of the term owner is exhaustive and intended to extend the meaning by including within its sweep bailee of a public carrier vehicle or any manager acting on behalf of the owner. Permit holder is the owner within the definition of the owner in the Bihar Act and other Acts and is also the operator within the meaning of the operator in other Acts to which reference has been made the person who allows his vehicle to be used for the purpose is the permit holder, and, therefore, the liability to pay tax attaches to the permit holder. The owner cannot escape liability by pleading that the hirer of the vehicle is liable to pay tax and the owner is not liable. [Jagir Singh v. State of Bihar, AIR 1976 SC 997 : (1976) 2 SCC 942 : 1976 PLJR 389 : 1976 Tax LR 1549].

The physical presence of the owner or the proprietor or of the permit holder in running vehicle carrying goods and passengers is not essential. The truck owners, received as per agreement, only hire charges and there is nothing to show nor is there any averment by the appellant those charges included taxes under the Act although freight had been admittedly realised by the appellant from the stockists in the case in hand. There is no escape from the conclusion that the appellant was in charge of the trucks for the purpose of the business of the appellant during the entire course of transportation of the cannot bags from Sindri Factory to various stockists and as such he comes within the third clause of the definition under Section 2(d) of the Act. [National Transport Company v. State of Bihar, 1976 PLJR 72 : 1976 Tax LR 1594 : AIR 1976 SC 1074 : (1976) 3 SCC 363].

(1) On and from the date on which this Act is deemed to have come into force under sub-section (3) of Section 1, there shall be levied and paid to the State Government a tax on all passengers and goods carried by a public service motor vehicle; such tax shall be levied and paid at the rate of twelve and a half per centum of the fares and freights payable to the owner of such vehicle:

Management charged lump sum from the employee using the vehicle maintained by the Management and reimbursed the same from the salary of the said employee. Held, Payment for the vehicle being a sine qua non for the use of the same. As per interpretation of the provisions of Section 3(i) payment even at concessional rate is fare. Owner held liable to pay tax. Fertilizer Corporation of India v. State of Bihar, 1973 BBCJ 775.

Provided that with effect from the first day of August, 1961 no tax shall be levied on any mineral or mineral are carried by such vehicle.

Mines & Minerals (Regulation and Development) Act, 1958, Section 3(c). According to the provisions contained u/s. 3(c) for M.R.R.D. Act, 1957 minerals and minor minerals are different. Minerals (Concession) Act was passed by the Bihar State after finding difference between the two Acts. Stone-boulders neither minor mineral nor being minerals, petitioner can not be granted exemption for transportation of the same and hence liable to taxation. Janak Singh v. State of Bihar, 1977 PLJR 47.

Stone boulders are minor minerals, but it is carried by Public Service Motor Vehicles are taxable and are not within the purview of the proviso to Section 3(1) of the Act is enable the petitioner for being exempted form the liability of the payment of tax under the charging Section of the Act. Janak Singh v. State of Bihar, 1976 BBCJ 149.

(2) Every owner shall, in the manner prescribed in Section 9, pay to the State Government, the amount of tax due under this Section.

Petitioner being in charge of trucks, engaged some trucks on hire for providing the same to others. Petitioner held liable for being assessed for fright released by him. National Transport Company v. State of Bihar, 1977 PLJR 47.

(3) Every passenger carried by a public service motor vehicle and every person whose goods are carried by such vehicle shall be liable to pay to the owner the amount of tax payable under this Section and every owner shall recover such tax from such passenger or person, as the case may be.

(4) Where any fare or freight charged is a lump sum paid by a person as a subscription or contribution for a season ticket or for any privilege, right or facility is combined with the right of such person or his goods being carried by a public service motor vehicle without any further payment or at a reduced charge, the tax shall be levied on the amount of such lump sum or on such amount as appears to the prescribed authority to be fair and equitable, having regard to the rate of fare or freight fixed by a competent authority under the Motor Vehicles Act, 1939 (IV of 1939).

(5) Where a motor vehicle other than a public service motor vehicle plies for hire or reward in contravention of the provisions of the Motor Vehicles Act, 1939 (IV of 1939), the owner of such vehicle shall, without prejudice to any action which is or may be taken under the Act, be liable to pay tax at the rate specified in sub-section (1) on such amount of fares and freights as may be determined in the prescribed manner by the prescribed authority.

(6) Where passengers or goods are carried by a public service motor vehicle from any place outside the State to any place within the State, or from any place within the State, to any place outside the State, the tax shall be payable in respect of the distance covered within the State at the rate provided in sub-section (1) and shall be calculated on such amount as bears the same proportion to the total fare or freight as the distance covered in the State bears to the total distance of the journey.

Rule 6 of Bihar Tax on Entry of Goods Rules, 1993. Main object of the Act is to find out that entry tax has been paid at the front of first entry and no subsequent dealer is required to pay the tax in such a case. Requirement of the provision held mandatory and not directory. Jai Ram Das v. State of Bihar, 2002 BRLJ 52.

Scope. Where public service vehicles are hired by permit holders to booking and forwarding agencies the liability to pay tax under the Act is of the permit-holder and not hirer. [Jagir Singh v. State of Bihar, AIR 1976 SC 997 : 1976 Tax LR 1549].

Section 3(6) of the Act covers tax on passengers and goods carried by a public vehicle from any place outside the State of Bihar to any place outside the State, if the vehicle passes through the State of Bihar. [International Tourist Corporation v. State of Haryana, AIR 1981 SC 774 : 1981 Tax LR 289 : (1981) 2 SCC 318 : (1981) 2 SCR 364].

2[3-A. Collection of tax in pursuance of reciprocal agreements. Notwithstanding anything contained in this Act, where a reciprocal agreement relating to taxation on passengers and goods carried by public service motor vehicles is entered into between the State Government of Bihar and any other State Government, the levy and Collection of the tax shall be in accordance with the terms and conditions of such reciprocal agreement:

Provided that the [tax] so levied shall not exceed the tax leviable under this Act:

Provided further that the terms and conditions of every such reciprocal agreement shall be published in the Official Gazette and a copy thereof shall be laid before the House of the State Legislature.

3-B. Power to exempt. The State Government may, by notification in the Official Gazette, exempt, in the public interest, subject to such conditions, if any, any owner or class of owners, from payment of tax leviable on any public service motor vehicle where in its opinion, such vehicle is engaged:

(a) in the carriage of passengers or goods on such inter-State routes as may be specified in the notification, or

(b) in the carriage of passengers or goods, in furtherance of any educational, medical, philanthropic or other similar object, or

(c) in the carriage of passengers or goods and in respect of which an agreement for the acceptance of lump sum in lieu of the amount of tax has been arrived at under Section 8.

(1) Every owner liable to pay tax shall apply for his registration within such period and in such manner as may be prescribed.

(2) On receipt of an application, the prescribed authority shall, if it is satisfied that the application is in order, register the applicant and grant a certificate of registration in the prescribed form.

(3) When an owner, who has been granted a certificate of registration under sub-section (2) has discontinued or closed down his business, the prescribed authority shall cancel the registration with effect from the prescribed date.

The prescribed authority may require an owner to furnish within the prescribed period as security an amount not exceeding one thousand rupees in a Government Treasury, if paid in cash, or with the prescribed authority if paid in Government securities, which shall be refunded at the close of the business after realising any tax found in arrears at that time.

(1) Every owner shall furnish to the prescribed authority such returns, within such period, as may be prescribed.

(2) If any owner fails, without any reasonable cause, to submit a return within the prescribed period, the said authority may direct that such owner shall pay, by way of penalty, a sum not exceeding five rupees for every day, after the expiry of the prescribed period during which the owner fails to furnish the required return.

(3) Any penalty imposed under sub-section (2) shall be without prejudice to any action which is, or may be, taken under Section 18.

(1) If the prescribed authority is satisfied, without requiring the presence of the owner or the production of any accounts or other evidence, that the returns furnished under sub-section (1) of Section 6, in respect of any period, are correct and complete, it shall assess the amount of tax due from the owner on the basis of such returns.

(2)(a) If the prescribed authority is not satisfied, without requiring the presence of the owner who furnished the returns or the production of accounts or other evidence, that the returns furnished in respect of any period are correct and complete, it shall serve on such owner a notice in the prescribed manner requiring him on a date and at a time and place to be specified therein, either to attend in person or through an authorised representative or to produce or to cause to be produced any accounts or other evidence on which such owner may rely in support of such returns.

Exception to the revenue notice issued to the petitioner asking him to bring necessary books etc. for determination of tax liability can not be taken because business being run by Hindu Undivided family as a H.U.F. business. In such case all the heirs and other members of H.U.F. are treated as owner of the business and they are jointly and severally liable for payment of the dues. Moreover, petitioner cannot take benefits u/ss 7(A) and 7(B) of the Act regarding limitation from the order of High Court because it is neither appeal nor review or revision for assessment which has been barred by the proviso. Direction given to the petitioner to be present before the authority concerned and file objection alongwith necessary records. Santosh Kumar Agarwal v. State of Bihar, 2006 (4) PLJR 612.

(b) On the day specified in the notice or as soon thereafter as may be, the prescribed authority shall, after examining the accounts and other evidence produced by or on behalf of the owner and such other evidence as the prescribed authority may require on specified points, assess the amount of tax due from the owner.

(3) if an owner, having furnished returns in respect of any period, fails to comply with all the terms of the notice under sub-section (2) or if the account and other evidence produced by him are, in the opinion of the prescribed authority, incorrect, incomplete or unreliable, either wholly or partly, the said authority shall, after giving the owner a reasonable opportunity of being heard, assess, to the best of its judgment, the amount of tax due from the owner.

(4) If an owner does not furnish returns in respect of any period within the prescribed period, the prescribed authority shall, after giving the owner a reasonable opportunity of being heard assess, to the best of its judgment, the amount of tax due from the owner.

(5) If the prescribed authority is satisfied that any owner has been liable to pay the tax in respect of any period, and has nevertheless failed, without reasonable cause, to apply for his registration under Section 4 or failed to furnish any particulars or information required for the purpose of the said Section, the prescribed authority shall, after giving the owner a reasonable opportunity of being heard, assess, to the best of its judgment, the amount of tax, if any, due from the owner in respect of such period and all subsequent periods; and the prescribed authority may direct that the owner shall pay, by way of penalty, in addition to the amount so assessed, a sum not exceeding one and a half times that amount.

Petitioner did not apply for registration under Section 4. This may be termed as wilful failure on the part of the petitioner. Penalty imposed under Section 7(5) on the petitioner for such wilful failure held justified. National Transport Company v. State of Bihar, 1977 PLJR 47.

Notwithstanding anything to the contrary contained in Section 3, the Commissioner may, subject to the general control and supervision of the State Government and such conditions and restrictions as may be prescribed, permit an owner to pay, in lieu of the tax payable by him, such amount as may be fixed by the Commissioner in the prescribed manner.

Demand of commercial tax. The demand of commercial tax was challenged by transport operators. On facts, the High Court directed the authorities concenred to re-examine the applications filed by transport operators for assessment of fixed levy in accordance with Section 8 and the circular dated 14th February, 1978. [Rajeshwari Prasad Singh v. State of Bihar, 1988 BLJ 636 (Pat)].

9. Payment and recovery of tax, etc. (1) The amount of tax or penalty, if any, payable by an owner under this Act shall be paid in the manner hereinafter provided.

(2) Before any owner furnishes any return under this Act he shall, in the prescribed manner, pay into the Government Treasury the full amount of tax due from him under this Act according to such return and shall furnish along with the return a receipt from such treasury showing payment of the said amount.

(3) If any owner fails without any reasonable cause, to make payment of the tax due from him according to the return furnished under Section 6, the prescribed authority may direct that he shall, in addition to the amount of tax payable by him, pay by way of penalty, a sum not exceeding five rupees for every day after the expiry of the period prescribed under the said Section, during which the owner has failed to make such payment.

(4) Where any amount of tax, other than the amount paid under sub-section (2), and penalty, if any, is payable by an owner under this Act, it shall be paid by him into the Government Treasury by such date as may be specified in a notice issued by the prescribed authority in the prescribed manner.

3[(4-A)] If any owner fails, without any reasonable cause to make payment of the tax due from him as specified in the notice under sub-section (4) within the time specified therein or such further time as may be allowed by the prescribed authority, he shall, in addition to the amount of tax payable by him, pay, by way of penalty, a sum not exceeding five percentum of the amount of the tax due for each of the first three months following the expiry of the time specified above and ten percentum of the amount of the tax due for each subsequent month or past thereof.]

(5) The amount of tax and penalty, if any, which remains unpaid after the date specified in the notice issued under sub-section (4) shall be recovered as an arrear of land revenue:

Provided that where an appeal in respect of such amount has been entertained under Section 13, the appellate authority may subject to such Rules as may be made by the State Government under this Act, stay recovery of such amount or portion thereof, for so long as the appeal remains pending or for such shorter period as the said authority may consider to be adequate.

(1) Notwithstanding anything contained in Section 9 or any law or contract to the contrary, the prescribed authority may, at any time or from time to time, by notice in writing (a copy of which shall be forwarded to the owner at his address known to the prescribed authority issuing the notice) direct,

(a) any person from whom any money is due or may become due to an owner who has failed to comply with a notice served upon him under Section 9, or

(b) any person, who holds or may subsequently hold any money for or on account of such owner.

to pay into the Government Treasury in the manner specified in a notice issued under this sub-section, either forthwith or upon the money becoming due or being held, or at or within the specified in the notice (not being before the money becomes due or it is held) so much of the money as is sufficient to pay the amount due from the owner under this Act or the whole of the money when it is equal to or less than that amount.

(2) The authority issuing a notice under sub-section (1) may at any time or from time to time, amend or revoke any such notice or extend the time for making any payment in pursuance of the notice.

(3) Any person making any payment in compliance with a notice issued under sub-section (1) shall be deemed to have made by payment under the authority of the owner and the receipt from the Government Treasury shall constitute a good and sufficient discharge of the liability of such person to the owner to the extent of the amount specified in the receipt.

(4) Any person discharging any liability to the owner after service on him of the notice issued under sub-section (1) shall be personally liable to the State Government to the extent of the liability discharged or to the extent of the liability of the owner under this Act, whichever is less.

(5) Where a person on whom notice is served under sub-section (1) proves to the satisfaction of the authority who issued the notice that the money demand or any part thereof, was not due to the owner or that he did not hold any money for or on account of the owner, at the time the notice was served on him, nor is the money demanded or any part thereof, likely to become due to the owner or be held for on account of the owner, nothing contained in this Section shall be deemed to require such person to pay into the Government Treasury any such money or part thereof, as the case may be.

(6) Any amount of money which a person is directed to pay under sub-section (1) or for which he is personally liable to the State Government under sub-section (4) shall, if it remains unpaid, be recoverable as an arrear of land revenue.

(7) No action shall be taken under this Section in respect of any amount payable under this Act the date of payment of which has been extended or realisation of which has been stayed, under this Act, during the period of such extension or stay.

When an owner, liable to pay tax, transfer his public service motor vehicle to another person, the transferor and the transferee shall jointly and severally be liable to pay the amount of tax and penalty, if any, payable under this Act in respect of passenger or goods carried by such vehicle before such transfer and remaining unpaid at the time of the transfer.

4[11-A. Liability of the transferee to assessment in certain cases. (1) Where any owner claims that he is not liable to tax under this Act, in respect of any public service motor vehicle on the ground that he has transferred the ownership of the vehicle, the burden of proving the transfer of the vehicle shall be on the transferor and for this purpose he shall file before the prescribed authority a declaration in such form and within such period as may be prescribed, together with the particulars of transfer and the evidence in support thereof.

(2) If the prescribed authority is satisfied after such enquiry as he may deem necessary, that the particulars contained in the declaration are true, he shall make an order to that effect and assess the amount of tax due from such owner for the period prior to the date of transfer.

(3) Where any owner having transferred any public service motor vehicle fails to file the declaration or to produce the evidence as required under sub-section (1) or where the owner having made such transfer cannot be found, the prescribed authority shall after giving the transferee a reasonable opportunity of being heard assess, to the best of its judgment, the amount of tax due in respect of the period prior to the date of transfer and for such an assessment proceeding taken against the transferee, all the provisions of this Act shall, so for as may be, apply.

(4) Where the transferor is in a position to pay the tax due in respect of the period prior to the date of transfer, the prescribed authority may of its own motion or on an application made by the transferee, and after such enquiry as he may deem necessary, order that an assessment proceeding in respect of the said period started against the transferee be transferred and taken against the transferor].

The prescribed authority shall, on application made in the prescribed form and within the prescribed period, refund, in the prescribed manner, any amount paid by an owner in excess of the amount finally determined as being payable by him under this Act.

(1) Subject to such Rules as may be made by the State Government under this Act, any owner objecting to an order of assessment, with or without penalty, passed by the prescribed authority in respect of him under Section (7) or to an order imposing penalty on him under sub-section (2) of Section 6 or sub-section (3) of Section 9 or any person objecting to any order passed upon him under Section 10, may, within the prescribed period and in the prescribed manner, appeal to the prescribed authority against such order.

(2) No appeal under sub-section (1) against an order or assessment shall be entertained unless the appellate authority is satisfied that the appellant has paid the amount of tax which he admits to be due from him or twenty percentum of the tax assessed, whichever is greater.

(3) Subject to such Rules as may be made by the State Government under this Act, the appellate authority in disposing of an appeal presented under sub-section (1), may

(a) in case of an appeal other than an appeal against an order under Section 10,

(i) confirm, annul, reduce, enhance or otherwise modify the assessment or penalty or both; or

(ii) set aside the assessment or penalty or both, and direct the authority which made the assessment or imposed the penalty to pass a fresh order after further enquiry on specified points; and

(b) in case of an appeal against an order under Section 10, pass such order as it may, for reasons to be recorded in writing, deem fit.

Power of. The Appellate Assistant Commissioner has power to enhance the assessment made by the assessing authority. [Samanta Motor Service v. State of Bihar, 1961 BLJR 29 (Rev)].

Subject to such Rules as may be made by the State Government under this Act, the prescribed authority may, on application or of its own motion, revise any order passed under this Act or the Rules made thereunder:

Provided that no order passed under Section 7 or sub-section (2) of Section 6 or sub-section (3) of Section 9 or under Section 10 shall be revised on application by an owner or other person unless an order under sub-section (3) of Section 13 has been previously passed in respect of the said order.

Where assessee invokes the suo motu revisional jurisdiction of Commissioner for redressal of his grievances, requirement of exhausting remedy of appeal is not necessary because the same is required only where assessee seeks to file regular petition for revision. Mithilesh Kumar Singh v. State of Bihar, 2000 (2) PLJR 121.

Petitioner filed a petition before Commissioner for exercising suo motu revisional power. Said petition was rejected by the Commissioner on the plea of availability of alternative remedy of appeal. Order passed of Commissioner was also confirmed by the Tribunal. Held, petition filed by the petitioner was not a regular revision petition. Both the orders quashed. Matter remanded to Commissioner exercising suo moto jurisdiction. Mithilesh Kumar Singh v. State of Bihar, 1999 (2) BBCJ 465.

Subject to such Rules as may be made by the State Government under this Act, any order passed under this Act or the Rules made thereunder may be reviewed by any authority passing it or by its successor-in-office.

Scope. The Commissioner may revise the order himself or direct the subordinate authority to review it. Both course are legal. [Samanta Motor Service v. State of Bihar, 1971 BLJR 29 (Rev)].

Mistake of law. The mistake of law committeed by the Commissioner has rightly been rectified. [Samanta Motor Service v. State of Bihar, 1971 BLJR 29 (Rev)].

(1) Subject to such Rules as may be made by the State Government under this Act, the Commissioner or the prescribed authority may, either before or after assessment, require any owner to furnish or produce or cause to be produced before it any account, registers, time-table, tables of fares or freights, tickets or documents or to furnish other particular relevant to the business of the owner and the owner shall comply with such requirement.

(2) Subject as aforesaid,

(a) all accounts, registers, time-tables, tables, of fares or freights, tickets or documents relating to carriage of passengers and goods by a public service motor vehicle shall, at all reasonable times, be open to inspection by the Commissioner or the prescribed authority and the owner shall render all possible assistance to the Commissioner or the prescribed authority in carrying out the inspection; and

(b) the Commissioner or the prescribed authority may enter into, inspect and search any public service motor vehicle and any place of business of an owner for the purpose of verifying that the provisions of this Act and the Rules made thereunder are being complied with.

Explanation. The Commissioner or such authority may take or cause to be taken such copies of, or extract from the accounts, registers, time-tables, tables, of fares or freights, tickets or documents as it may be consider necessary.

(3) If the Commissioner or the prescribed authority has reason to suspect that an owner is attempting to evade payment of any tax payable by him under this Act, the Commissioner or the prescribed authority may, for reasons to be recorded in writing, seize such accounts, registers, time-tables, tables, of fares or freights, tickets or other documents of the owner as may be necessary and shall grant a receipt for the same; such seized accounts, registers, time-tables, tables, of fares or freights, tickets or documents shall be retained for so long as may be necessary for examination thereof or for a prosecution under Section 18 and shall thereafter be returned to the owner in the prescribed manner.

(4) The Commissioner or the prescribed authority may require any passenger or any person in charge of goods carried by a public service motor vehicle to produce the ticket for such carriage for the purpose of inspection and the passenger or the person, as the case may be, shall comply with such requirement.

The Commissioner and the prescribed authority shall be deemed to be public servants within the meaning of Section 21 of the Indian Penal Code, 1860 (XLV of 1860)].

(1) Whoever,

(a) fails or neglects to comply with the provisions of Section 4 or Section 5; or

(b) fails, without sufficient cause, to submit any return as required by Section 6 or submits a false return; or

(c) knowingly maintains or produces incorrect accounts, registers or documents or knowingly furnishes incorrect information; or

(d) fraudulently evades the payment of any tax due under this Act; or

(e) fails or neglects to comply with the provisions of Section 9; or

(f) fails or neglects to pay the tax due from him within the time prescribed; or

(g) obstructs an authority making an inspection, a search or a seizure under Section 16; or

(h) closes his place of business or removes or drives away any public service motor vehicle with a view to prevent inspection or search under Section 16; or

(i) fails or neglects to furnish any information required by or under this Act; or

(j) contravenes any other provisions of this Act or the Rules made thereunder or any order or direction made under any such provision or Rules.

shall be punishable with fine which may extend to one thousand rupees, and when the offence is a continuing one, with a daily fine not exceeding fifty rupees during the period of continuance of the offence.

(2) No Court shall take cognizance of any offence under this Act or the Rules made thereunder, except with the previous sanction of the Commissioner, and no Court inferior to that of a Magistrate of the first class shall try such offence.

(1) The Commissioner may either before or after the institution of proceeding under Section 18, accept from any person charged with an offence under sub-section (1) of the said Section or under any Rules made under this Act, by way of composition on the offence a sum not exceeding one thousand rupees.

(2) On payment of such sum as may be determined by the Commissioner under sub-section (1), the prescribed authority shall, where necessary report to the Court that the offence has been compounded and thereafter no further proceedings under Section 18 shall be taken against the accused person in respect of the same offence.

(1) No prosecution shall lie against any officer or servant of the Government, for any act done or purporting to be done under this Act without the previous sanction of the State Government.

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

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

(1) The State Government may, after previous publication, make Rules not inconsistent with this Act, for,

(i) all matters expressly required or allowed by this Act to be prescribed and generally for carrying out the purposes of this Act and regulating the procedure to be followed, forms to be adopted and fees to be paid in connection with proceedings under this Act and all other matters ancillary or incidental thereto; and

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

(2) In making any Rules the State Government may direct that a breach thereof shall be punishable with fine not exceeding one thousand rupees.

(3) Every rule made under this Section shall be laid as soon as may be after it is made, before each House of the State Legislature while it is in session for a total period of fourteen days which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, both House agree in making any modification in the rule or both Houses agree that the Rule should not be made, the Rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, to however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Rule.

Notwithstanding any judgment, decree or order of any Court, tribunal or authority,

(a) any amount paid, collected or recovered or purported to have been paid, collected or recovered as tax or penalty under the provisions of Part III of the Bihar Finance Act, 1950 (Bihar Act XVII of 1950), as amended from time to time (thereinafter referred to as the said Act ), or the Rule made thereunder during the period beginning with the first day of April, 1950 and ending on the thirty-first day of July, 1961, shall be deemed to have been validly levied, paid, collected or recovered under the provisions of this Act; and

(b) any proceeding commenced or purported to have been commenced for the assessment, collection or recovery of any amount as tax or penalty under the provisions of the said Act or the Rules made thereunder during the period specified in clause (a) shall be deemed to have been commenced and conducted in accordance with the provisions of this Act and, if not already completed, shall be continued and completed in accordance with the provisions of this Act:

Provided that nothing contained in this Act shall render any person liable to any criminal prosecution for anything done or omitted to have been done before the first day of August, 1961.

(1) The said Act is hereby repealed.

(2) The Rules made or purported to have been made under the said Act shall, in so far as they are not inconsistent with the provisions of this Act be deemed to have been made under the appropriate provisions of this Act.

(3) Any appointment, notification order, certificate or form made or issued or purported to have been made or issued under the provisions of the said Act shall, in so far as they are not inconsistent with the provisions of this Act, be deemed to have been made or issued under the provisions of this Act and continue in force unless and until superseded by any appointment, notification, order, certificate, or form made or issued under the provisions of this Act.

(1) The Bihar Taxation on Passengers and Goods (Carried by Public Service Motor Vehicles) Ordinance, 1961 (Bihar Ordinance No. II of 1961), is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken in exercise of any power conferred by or under the said Ordinance shall be deemed to have been done or taken in exercise of powers, conferred by or under this Act, as if this Act were in force on the day on which such things was done or action taken.

If any difficulty arises in giving effect to the provisions of this Act, the State Government may, as occasion may require, by order, not inconsistent with this Act and the Rules made thereunder, do anything which appears to be necessary for the purpose of removing the difficulty.

1. For Statement of Objects and Reasons See the Bihar Gazette, Extraordinary, of the 9th September, 1961.

2. Ins. by Bihar Act 7 of 1970, Sec. 2.

3. Ins. by Act 7 of 1970, Sec. 2.

4. Ins. by Bihar Act 7 of 1970.