1939: Pb. Act I.] MOTOR SPIRIT (TAXATION 35
OF SALES)
THE PUNJAB MOTOR SPIRIT (TAXATION OF
SALES) ACT, 1939.
CONTENTS.
PREAMBLE.
SECTIONS.
CHAPTER T—PRELIMINARY.
1. Short title and commencement.
2. Definitions. CHAPTER TI—TAXATION. 3, Imposition of Tax.
4. Recovery of taxes as arrears of land revenue.
5. Power to determine certain questions. CHAPTER III—LICENSING OF RETAIL DEALERS.
6. No person to trade without a licence.
7. Grant of licence.
8. Suspension or cancellation and restoration of a licence. CHAPTER—IV PENALTIES AND POWER TO PREVENT EVASION
9. Tmposition of penalty.
10. Punishment for unauthorised sale.
11. Issue of warrants.
12. Searches how made.
13. Procedure for arrest without warrant.
14. Duty of certian persons to report offences, etc.
15. Power of investigation.
16. Offences to be bailable.
17. Punishment for vexatious search or arrest.
18. Punishment for vexatious delay.
19. Power to compound offences.
1
36 MOTOR SPIRIT (TAXATION 1939 : Pb. Act)
OF SALES)
CHAPTER V—MISCELLANEQUS.
20. Powers.
21. Protection of persons acting in good faith and limitation suits and prosecution.
22. Appeal and revision.
23. Review.
24. Power to make rules.
2
1939 : Pb. Act L] MOTOR SPIRIT (TAXATION 37
OF SALES)
1ITHE PUNJAB MOTOR SPIRIT (TAXATION OF
SALES) ACT, 1939.
: Punjab Act No. I of
1939,
| ]
| ived the assent of His Excellency the Governor on the [Rgf]flf;pril,el%Q, and was first published in the Punjab Gazette, Extraordinary, of the 12th April, 1939.] T2 3 | s
e T Whether repealed or ot herwise affected Year | No, Stm); t by legislation
Tom T The poniab | Amended by Punjab Act, X of 1942 2 1939 .| 1| The PUr® [ Amended by E ast Punjab Act v of 1948 Motor Amended by East Punjab Act VI of 1948 } (Taxation of Amended by the Indian Indpendence (Adaptation Sales) Act, of Bengal and Punjab Acts) Order, 1948,
. 1039 (G. G. 0. 40)
Amended by East Punjab Act, XXIX of 19495 Amended by the Adaptation of Lawa Order, 1950 Amended by Punjab Act No. XIIT of 1653¢ Amended by Punjab Act No. X of 19557 Extended to the territories, which immediately before 1st November, 1956, were Comprised in the State of Patiala and East Punjab States, Union, by Punjab Act No. VII of 19575, Amended by Punjab Act No. XX of 1957 Amended by Punjab Act No. XI of 19591 Amended by Punjab Act No, XIX of 1960u Amended by the Punjab Re-organisation (Chandigarh) (Adaptation of Laws on State and Concurrent Subjects) Order, 1968. t For the Statement of Objects and Reasons see Punjab Government Ggzette (Extraordinary), 1939, page 13, for the Select Committee's report see ibid pages 57—73, and for the proceedings in Assembly, see Punjab Legislative Assembly Debates, 1939, Volume VIII, pages 34—47 and 759, Volume IX, pages 34—68 and 91—99. zFor. Statement of Objects and Reasons, see Punjab Government Gazette, Extraordinary, 1942, page 215 ; and for proceedings of the Assembly, see Punjab Legislative Ass:mbly Debates, Volume XX, page 100.
For Statement of Objects and Reasons, see East Punjab Government Gazette, Extraordinary, 1948, page 163 and for proceedings of the Assembly, see East Punjab Legislative Assembly Debates, Volume II, pages 671-672.
*For Statement of Objects and Reasons, see Punjab Government Gazette, Extra- ordinary, 1938, page 163 ; and for proceedings of the Assembly, see East Punjab Legislative Assembly Debates, Volume II, pages 672—74.
sFor Statement of Objects and Reasons, see East Punjab Government Gazette, Extradtdinary, 1949, Page 968 ; and for proceedings of the Assembly, see East Punjab Legislative Assembly Debates, Volume IV, pages (5) 48 to (5) 52 *For Statement of Objects and Reasons, see Punjab Government Gazette, Extra- ordinary of 3rd March, 1953, page 201 ; and for proceedings in the Council and Atfsleg"s'g"yv see Punjab Legislative Assembly and Punjab Legislative Council Debates o .
"For Statement of Objects and Reasons, see Punjab ~ Government Gazette (Estraordinary), 1955, page. >
*For Stat:ment of Objects and Reasons, see
Punjab Government Gazette,
(Extraordinary), 1957, page 551. .
_"For Statement of Objects and Reasons, see Punjab Government Gazetfe (Extra- ordinary), 1957, page 754. Sitras
" 1"For Statement 03f Objects and Reasons, see Punjab Government Gazette (Ex ordinary), 1959, page 380. }
. "Fo)r State::efit of Objects and Reasons, see Punjab Government Gazette (Extra:
ordinary), 1960, pages 955-56.
3
B |
38 MOTOR SPIRIT (TAXA';ION (1939 : Ph, A L ' ¢ SALES .
ovid%' for the levy o( a tax on the retaj sal at An Act o pe motor spirit.
i ide for the | " e edient to provide he lovy o Preamble. ta,:N(I,*'thE'cS,reltazls se:l?: of motor spirit ¢ It jg hCrcby a . enacted as follows:—
CHAPTER I.—PRELIMINARY
Short e and 1. (I) This Act may be called the Punjab Moto é'°"""l°"°°m°""Spirit'(Taxation of Sales) Act, 1939.
(2) Tt shall come into force on such date as the Goy. ernor may by 'notification appoint. « 2 2% * *
Definitions In this Act unless there be anything repugnant ijp
1 .
the context—
(a) "Government" means the 3 [Central Goverp. ment] ;
(6) "magistrate" means any magistrate eXercising bowers not less than those of g magistrate of ) "penalty" means a penalty impogsed under sec- tion 9 of this Act;
(e) "Petrol Taxation Offjcer> tion offi_cer under this Act with reference to any particular areas;
2Sub-section (1) omitteq by PL'mj&b Act N i i
brackets and figures ««(2) j
ooérsfillitlzdo{yl ?Lsxfl' A O, e *Substituted for thewords '"Punjab Governmeng» p, j isati
1
X
the P - sation (Chandlgarh) (Adaptation of Laws op State and concurgcmesl,l')ljl;]carlsj) l(i):dzlfm;l%g- paiig of 1953, section 2 (iii).
4
1939 : Pb. Act L] MOTOR SPIRIT (TAXATION 39
OF SALES)
(f) "prescribed" means prescribed by rules made under this Act;
(g) "retail dealer'" means any person who, on com- mission or otherwise, sells any motor spirit to a consumer or to any other person for any purpose other than resale, or keeps any motor spirit for sale to consumers or to any other person for purposes other than resale;
(1) "retail sale" means a sale by a retail dealer of any motor spirit to a consumer or to any other person for any purpose other than resale;
(i) "sale" and "sell" include exchange, barter and also the consumption of motor spirit by the re- tail dealer himself;
(j) "vehicle" includes any carriage or conveyance used on land or in water or air;
[ (k) "Excise and Taxation Commissioner" means the person for the time being appointed by Gov- ernment to perform all or any of the functions and exercise all or any of the powers of the Ex- cise and Taxation Commissioner; and () "Deputy Excise and Taxation Commissioner"
means the person for the time being appointed by Government to perform all or any of the fun- ctions and exercise all or any of the powers of the Deputy Excise and Taxation Commissioner in any specified local area.]
CHAPTER II—TAXATION
3. *[1) There shall be levied and paid to the 3Central Government] on all retail sales of motor spirita tax at the rate of {seven naye paise for each litre] of motor spirit
'Clauses (k):and (1) added by Punjab Act , 13 of 1953 section 2 (ii). i *Section 3 reaumbered as Sub-section (1) of section 3 by East Punjab Act XXIX of 1949, section 2. *Sunstituted for the words State Government" by the Punjab Re-organisation (Chflndlsarl_l) (Adaptation of Laws on State and Concurrent Subjects) Order, 1968. 'Substituted for the words "'thirty Naye paise for each imperial gallon" by %g:lalki fit":tlgs%. 19 of 1960, which were Substituted previously by punjab Act Imposition of tax
5
1939 : py, ATION [ . Act 40 MOTOR SPIRIT g;:AXSALES) L
t] may by notifjcy; 1 Government P o '[ @) The gi[lcszrllgaof motor spirit ftri(;?l] h:rll)(lihtg t0 py fxeliipag;'¥g: Xct either wholly or partially n sye ax un ) : : impose. conditions as it may think fit to 1mp I
n 1ty under ¢,: When th ment of any tax or penalty T thig deth 4. en the paymen vered as if it we l}':c:"'g')'so"rf'mc; Act falls due the amount may be 1eco Te ap revenue. arrear of land revenue.
fune sertain s recoverable under this Actlsgles%zrfi bo determined by thg questions.
t so recovera
%2?:31161'2;3?& Officer for the area where the sale fake
place.
ch order shall be made final until an oppor- tunit(yz)hg'iifin given to any person concerned to appear ip Person or by duly authorised agent before the Petrol TaXa_. tion Officer; but once the order has been made final a certi- ficate given under the hand of the Petrol Taxation Officer, shall, subject to the provisions of this Act with regard to appeal, review and revision, be final and conclus_lve _proof both as to the amount of the tax or penalty which is due and as to the person from whom it is due. CHAPTER III—LICENSING OF RETATIL DEALERS
N;'ral';e"fv';t?o . 6. After the expiry of a period of two months from alicense, " the commencement of this A, \ ct no person shall carry on business as a retail dealer unless he is in possession of a valid license, Grant of Lj . .
o Honse 7. (1) Except as provided hereunder, a license shall be granted to any i Person applying t 3[4 ib- edform] to the Petrol Taxation HyicrciOr *Lin the prescri
ay of March following the
be renewed annually. \\
e rment" j isation WS 0n State and O the Punjab Re-organisati * PUnisb Act VI o 1545, gy Subleets) Order 1965,
6
1939 : Pb. Art I. ] MOTOR SPIRIT (TAXATION a1
OF SALES)
(3) The grant or renewal of a license may be refused if any previous license of the agplicant '[or of any person with whom the applicant has been working as a partner] has been cancelled 2[or if the applicant or any person with whom he has been working as a partner has been convicted of any offence relating to the motor spirit] or if the Petrol Taxation Officer is satisfied that the application has been made only for the purpose of enabling any person to carry on business as a retail dealer without a license.
(4) No license under this Act 3[ except in the case of a licence for the retail sale of powerine or diesel oil] shall be granted to any person who does not hold a license for the storage of dangerous petroleum under the Petroleum Act, 1934, and if any such license granted under that Act is cancelled, suspened or is not remewed, any license granted under this Act to the holder thereof shall be deemed to be cancelled, suspended or not renewed, as the case may be.
(5) If an application for the renewal of a license under this Act is made within such time before its expiry as may be prescribed by Government, the holder of the license shall be deemed to be in possession of a valid license until the license is renewed or until he is informed that the renewal of the license has been refused.
8. (7) The Petrol Taxation Officer may after giving the licensee an opportunity to be heard, suspend or cancel a license for a breach of any of the conditions which may be prescribed as the conditions subject to which a license is granted.
(2) A licensee shall not be entitled to any compensa- tion for the suspension or cancellation of his license under the foregoing sub-section.
(3) A license cancelled or suspended under this sec- tion may be restored by the Petrol Taxation Officer on pay- ment of such fee as may be prescribed.
CHAPTER IV—PENALTIES AND POWERS TO
PREVENT EVASION
Suspension or cancellation and restoration of a license.
9. If any tax due under this Act is not paid within Img:fi:?ion of the time fixed by notice issued in the prescribed manner, '[aserted by East Punjab Act VI of 1948, section 2 (b) (9)- 2[nserted by East Punjab Act VI of 1948, section 2 (b) (). [nserled by Punjab Act X of 1955, Section 2.
7
. | pIRIT (TAXATION - [1939 . Pb, Agt L 42 MOTOR § OF SALES)
:
It 14y IMpOse a penalty N0t ¢, ion Officer n in addition to'¢ ¥ cooding the amount of the tax duc, in e ceeding the ¢
Pay,
t t no such penalty shaj ¢
ovid d tha Ay
. R
ment of the tax'thgrperson on whom 1ta:'ls égpk;ertlurgfiosed imposed un]estsl orised agent is given Officer Vor gr_ his lcli;l;gdaub; the Petrol .Taxation . eing : rovisions of Section ¢
contravenes the p
Punishment for 10. Wh?%'ftgle with fine .which may extertldfto ne unauthorised shall be punis to a sum doublethe am_opn o thetax sale. thousand rlg;gef)ggh;' sale of any motor spirit go?du ed g;x; rlr(l) ;etigha If of such person, wmch CGVer Is greater. Issue of warrants 11. (1) A Magistrate may. issue a warrant—_ ue of w; . .
. )
rest of any pers_bh whom he hag Teasoq @ t?g;figér to have committed an offence Dunisgh. able under-this Act, or . (b) for the search, whether by day or b Searches hoy 12. Searches made under-- the Provions of thjg
made. Act shall be made in accordance With the Provisions of the
Code of Crimina| Proce'dure, 1898, Procedure for 13, The Provisio
arrest withoyt arrant, W, ns 6fsect1'on 61 of th C
nal Procedure, 1898, sh
g oo
all apply to agp arrestg Without war-
rant made under the Provisions of this Act,
Duty of certy; 14, Very person CMployed Gove ' t, by an
Offenam Teport ocal body o by the Copyy of Wardys, ever;n \giililgé Illread}"
man, viljage dccountant gy ill,
mediatp inf i Vi lage wate an shall give
at on to the [De . * Excj
g'
o . Ll
o it oY Offence o of the co
under this 4o Which it any Offence Dunishable
may Come 10 hjs knowledge.
section 3, for "Collector",
¢ of Crimi-
8
1939 : Pb. Act I.] MOTOR SPIRIT (TAkA-rion 43 Lo OF SALES) .
15. (1) Every officer of the '[Excise and Taxation|] Department not below suchrankas my be prescribed shall within the area for which he is appointed, have power to in - vestigate all offences punishable under this Act.
(2) Every such officer shall, in the conduct of such investigation exercise the powers conferred by the Code of Criminal Procedure, 1898, upon an officer in charge of a police station for the investigation of a cognizable offence.
(3) Every such officer may enter at any reasonable time the premises. of any retail dealer and with or without notice -examine and take copies" or extracts from any ac- count books or régisters for the purpose of testing the ac- curacy of any prescribed returns or of informing himself as to any particulars regarding which information is required for the purposes of this Act or of any rules thereunder.
(4) Every such officer may detain and arrest any per- son whom he has reason to believe to be guilty of any offence punishable under this Act.
16. All offences punishable under this Act shall be bailable.
17. Any officer or person exercising powers under this Act who— )
(a) without reasonable ground of suspicion, enters or searches, or causes to be entered or searched, any building, vessel, vehicle or place; or
(b) vexatiously and unnecessarily detains, searches or arrests any person,
shall on conviction be punishable with fine' which may ex- tend to five hundred rupees. . .
18. Any officer or personexercising powers under this Act who vexatiously and unnecessarily delays forwarding to a Magistrate any person arrested under this Act and not released by him on bail shall on connection be punishable ~with fine 'which' may extend to two hundred rupees. ' 19. (1) The ¥Deputy Excise and Taxation Commis- sioner concerned] may accept from any person who has committed an offence punishable under this Act, by way of composition of such offence, a sum of money not exceeding one thousand rupees or a sum double the amount of the tax payable under section 3 in respect of any sale con- ducted by such person, whichever is greater. 1Substituted by Punjab Act' No. XIII of 1953, section 4, for "Excise or Revenue." .
*Substituted by Punjab Act No. XilI of 1953, section 5, for "Collector
".
Power of investi- gation.
Offences to be bailable.
Punishment for vexatious search or arrest.
Punishment for vexation delay. Power to com- pound offence
9
' ON [1939 . Pb,
44 MOTOR SPIRIT (TA(,);ATSI ALES) [ At L
.
fmoney to th, 'ment of such sum o € 1 %) %éflfi'fi';'atmn cOmmlsslonerlfogcernqd]' thfi?fi' puty Exc rson, if in custody, shall be dischg,, 2 gg(siedno pf?lrthe'r proceedings shall be taken agains person in respect of such offence.
CHAPTER V—MISCELLANEOUS
& q,
t 8"0]1
Powers.
int any
- The powers of Government to appoint any Persgy or tozgnvesth agy person with any authority Prescnbeqb the Act may be exercised by the *[Excise ~and Taxatmn] Commissioner, subject to the orders of Government. Protection of 2L. (1) Any civil or criminal Proceedings instituteq Pm""';"fi'f;"'gg against any person in respect of any act d
1 al
.
.
Simtagon of to be donein th suits and prose- pwri any duty under this Act shall be dismisse to be done, under this Act, unless the suit 0; has been instituted Within six months from the date of the act complained o
Appeal ang re- 22,
)
(J) Any person aggrieved by ap order under Vision. this Act orrules made o thany Y a criminal coyyt may
# % % 3 * «
() to the q
sioner
other officer o this Act,
*Substituteq by Punjap Act No, XTI of 1953 *Substituted by ibig » Section ¢, for
3 ]
.
.
.
3
No, )arxco?"fss'é',) s':';&';',';';"('g"n ) of section 23, Ommitted by punjab Act 'Subslituted by ibid, for ««
» Section 5, for "Collector".
"Financial".
Collector "»
10
1939 : Pb. Act I ] MOTOR SPIRIT (TAXATION 4
OF SALES) 5
(2) Every order passed inappeal under this section shall, subject to the powers of revision conferred by sub- section (3), be final.
(3) The ![Excise and Taxation] Commissioner may at any time, call for and examine the record of any order of . or the proceedings recorded by, any officer or person for the purpose of satisfying himself as fo the legality or pro- priety of such order passed by, or as to the regularity of such proceedings of such officer or person and may pass such order in reference thereto as he thinks fit.
23. Any order made under this Act, other than an order made by a criminal court, may be reviewed by the officer making it or his successor, but not to the disadvant- age of the person against whom it is made, unless he has done anything to mislead the officer passing the order.
24. (1) Government may make 2rules to carry out allor any of the purposes of this Act.
(2) Inparticular and without prejudice to the genera- lity. of the foregoing power, Government may make rules for the purpose of—
(a) the recovery of the tax leviable under section 3 including the fixing of the time when the tax is to be paid,
(b) the fixing of license fees,
(c) imposing onretail dealers the duty of furnish- - ing returns and of keeping records and regis- ters of stocks and daily sales prescribing forms for such returns, and register of stocks and daily sales and the particulars to be contained there- in, respectively, and the manner in which the Substituted by Punjab Act No. XIII of 1953, section 7(ii), for "Financial".
*For_rules see Notification 'No. 2709, dated 12th June, 1939, published in Panjab Government 'Gazette, Extraordinary, dated the 13th June, 1939. Review.
Power to make
tules.
11
XATION [1939 Pb. Act ) RIT (TA
MOTOR P OF SALES) 46
S -] ifi a
h Othe COnd. d b(} Ver]fled dnd a" suc
I ¢ i
same are to
v o
: as may be
flf',;li gé?fggr \':/ithinywhlch such returns must be
submitted,
he localities in which motor spirit may be sold, the assessment of tax and the issue
of notices requiring payment and fo r the re-
covery of unpaid tax,
(d) prescribing t - - . ¢ or
roviding for or restricting the assignment @ I;ransfergof licenses and the manner in which licenses granted to firms are to operate during the period of or on the dissolution of a partner- ship,
(f) prescribing the arrangements to be made when a licensee dies or becomes subject to a legal disability, the period during which, and the persons by whom, the business of such a licensee may be carried on without a license,
(2) reqléiring the production of licenses on demand, an
(%) prescribing the period (which shall not be less than one month from the date of the order
(4) All ruleg made un the condition of provions LS Act shall be subject to Publication,
12