Tripura act 001 of 2005 : The TRIPURA VALUE ADDED TAX ACT, 2004

TRIPURA ACT No. 1 of 2005.

THE TRIPURA VALUE

ADDED TAX ACT, 2004

AND

THE TRIPURA VALUE ADDED

TAX RULES, 2005

(As amended till 7^thSeptember, 2011) i

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CONTENTS

THE TRIPURA VALUE ADDEDTAX ACT, 2004.

Sections Page

Chapter -I

(PRELIMINARY)

1. Short title, Extent and Commencement 1

2. Definitions 1 Chapter-ll

(Incidence and levy of tax )

3. Incidence of Tax 10

4. Tax on deemed sales 12

5. Levy of Tax on Sale 13

6. Levy of Tax on containers and Packing material 14

7. Rate of Tax 14

8. Exemptions 14

9. Tax payable 14

10. Input tax credit 15

11. Input tax credit exceeding tax liability 18

12. Adjustment of input tax credit 18

13. Export 19

14. Burden of proof 19

15. Composition of tax by certain registered dealers 19

16. Powers of Government to amend Schedule 20

17. Credit notes and Debit notes 20 Chapter -III

18. Taxing Authority and Tribunal 21 Chapter -IV

(REGISTRATION)

19. Compulsory registration of dealers 23

20. Security to be furnished in certain cases 25

21. Imposition of penalty for failure to get registered 25 iii

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Sections Page

22. Registration of Transporters 26

23. Quoting of Registration Certificate Number etc. 27 Chapter-V

(RETURNS & ASSESSMENT)

24. Periodical returns and payment of tax 28

25. Returns defaults 29

26. Rounding off of the amount of tax, interest or penalty 30

27. Scrutiny of returns 30

28. Tax Audit 31

29. Self assessment 31

30. Provisional assessment 31

31. Audit assessment 32

32. Assessment of dealer who fails to get himself registered 34

33. No assessment after five years 34

34. Turnover escaping assessment 34

35. Exclusion of time period for assessment 35

36. Power of reassessment in certain cases 35 Chapter-VI

(PAYMENT AND RECOVERY OF TAX, PENALTY, INTEREST AND OTHER DUES)

37. Payment and Recovery of Tax, Penalty and Interest 36

38. Special mode of recovery 37

39. Collection of tax only by registered dealers 38

40. Collection of excess tax and forfeiture of such excess tax 39

41. Purchase or Sales not liable to tax 40

42. Tax to be first charge on property 40

43. Refund 40

44. Provisional refund 41

45. Interest 41

46. Power to withhold refund in certain cases 42

47. Exemption of certain sales and purchases 43 iv

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Sections Page Chapter -VII

(ACCOUNTS AND RECORDS)

48. Maintenance of accounts and records etc. 44

49. Accounts to be Maintained by Carriers 44

50. Tax invoice 45

51. Electronic record 48

52. Requirement to provide information 48

53. Audit of accounts 48

54. Dealer to declare the name of his business manager 49 Chapter -VIII

( LIABILITY IN SPECIAL CASES )

55. Liability to pay tax in case of death 50

56. Certain agents liable to tax for sales on behalf of principal 51

57. Liability of Partners 52

58 Amalgamation of companies 52 Chapter -IX

(INSPECTION OF ACCOUNTS, DOCUMENTS AND SEARCH OF PREMISES)

59. Production and inspection of accounts and documents and search of premises 54

60. Survey 55

61. Automation 56

62. Power to collect statistics 56

63. Disclosure for information by a public servant 57

64. Disclosure of information required under section 62 and failure to furnish information or return under that section 59

65. Publication and disclosure of information in respect of dealers and other persons in public interest 60

Chapter -X

( DETECTION AND PREVENTION OF TAX EVASION )

66. Restriction on movement 61

67. Establishment of check posts for inspection of goods in transport 61

68. Disposal of Seized goods 63 v

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Sections Page Chapter -XI

(APPEALS AND REVISION)

69. Appeal 65

70. Revision by Commissioner 66

71. Appeal to the Tribunal 67

72. Revision to High Court 68

73. Hearing of Revision and Review by the High Court 68

74. Power to Rectify Error Apparent on the Record 68 Chapter -XII

(OFFENCES AND PENALTIES)

75. Offences and penalties 69

76. Offences by companies 72

77. Penalty payable by the transporters 73

78. Cognizance of offences 74

79. Investigation of offences 74

80. Compounding of offences 74 Chapter -XIII

(MISCELLANEOUS)

81. Appearance before any authority in proceedings 76

82. Power to take evidence or oath etc. 77

83. Declaration of stock of goods held on the appointed day 77

84. Bar of suits in Civil Courts and indemnity 77

85. Delegation of Powers 78

86. Power to remove difficulties 78

87. Power to Make Rules 78 Chapter -XIV

(TRANSITION, REPEAL AND SAVINGS)

88. Transition 80

89. Repeal and Savings 83 vi

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THE TRIPURA VALUE ADDED TAX RULES, 2005

Rules Page

1. Short title and Commencement 131

2. Definitions 131

3. Liability to pay tax 133

4. Input Tax Credit on purchase of inputs used for production of taxable goods 134

5. Claim of Input Tax cedit on purchase of taxable goods 135

6. Input tax credit 136

7. Deduction of Tax at source 139

8. Authorities to assist the Commissioner 140

9. Tribunal 141

10. Registration of Dealers 142

11. Information in regard to submitting application for registration 142

12. Certificate of Registration 144

13. Display of Registration certificate 145

14. Treatment and replacement of registration certificate issued earlier under the Tripura Sales Tax Act, 1976 or The Tripura Purchase Tax Act, 1990. 145

15. Display of Signboard 147

16. Information in respect of changes requiring amendment of certificate of registration 148

17. Registration of Transporter, Carrier or Transporting agent 150

18. Returns 152

19. Deduction of sale price of goods returned etc. 154

20. Manner and payment of tax 154

21. Notice for assessment & imposition of penalty, preservation of assessment records etc. 155

22. Appeal 156

23. Memorandum of appeal and manner of submission of Memorandum of Appeal 156

24. Revision 158

25. Rejection of Revision petition 158 vii

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Rules Page

26. Fixing of date & place for hearing of revision petition 158

27. Notice of Demand 158

28. Mode of Payment 158

29. Notice under Section 38(1) 158

30. Charging of interest 158

31. Form of Tax payment challan 159

32. Tax payment challan in qua-duplicate 159

33. Function of Treasury 159

34. Maintenance of daily collection and assessment register 159

35. Refunds 159

36. Manner of claiming refund 160

37. Issue of refund voucher 161

38. Maintenance of register of refund 161

39. Prosecution 161 40-41 Payment of composition money 162

42. Maintenance of books & accounts by dealers 162

43. Requirement of keeping cash memo or bill, tax invoice, purchase voucher during transpostation 163

44. Requiring production of Accounts without reasonably affecting business of the dealer 163

45. Selection of dealers for audit 164

46. Manner of services of Notices 165

47. Declaration of taxable goods with restriction thereof 166

48. Submission of Form XXIV for permit 166

49. Declaration of transportation / Carrier in form XXV 166

50. Restriction of issue of form XXV 168

51. Issue of permit in form XXIV 168

52. Issue of permit in form XXVI 169

53. Information in regard to loss or theft or destruction of Form XXV or XXVI 171

54. Restriction on issue of Form XXVI 171 vii

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Rules Page

55. Issue of permit in Form XXVII 172

56. Authorisation to take delivery of or transport any consignment of taxable goods 172

57-58. Delegation and Exercise of Power 172

59 Fees 172 60-61. Supplies of Copies 173

62. Manner of Submission of application for certified copies 173

63. Fees payable for certified copies 173

64. Place of assessment 174

65. Claiming of deduction on the ground that taxable goods are not sold in the State 174

66. Display of Registration certificate in conspicuous place 174 67-68. Rounding of turnovers 174

69. Checkpost 174

70. Inspection and search of vehicles and boats 175

71. Power to search at any place by officer-in-charge of a checkpost, Superintendent of Taxes or any officers specially empowered by the Commissioner of Taxes 176

72. Cost of loading and unloading for search and seizure to be borne by the dealer / person / transporter 177

73. Verification of declaration 178

74. Survey 178

75. Power of the Commissioner of Taxes 178 ix

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Tripura ACT NO.l of 2005

THE TRIPURA VALUE ADDED TAX ACT, 2004

An Act to provide for the levy and collection of value added tax at different points of sale in the State of Tripura. Be it enacted by the Tripura Legislative Assembly in the fifty fifth year of the Republic of India as follows :-

CHAPTER - I

PRELIMINARY

1. Short Title, Extent and Commencement - (1) This Act may be called the Tripura Value Added Tax Act, 2004.

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

(3) It shall come into force on such date as the State Government may, by notification in Official Gazette, appoint.

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

(1) „Act" means the Tripura Value Added Tax Act, 2004.

(2) "Assessee" means any person by whom tax or any other sum of money is payable under this Act and includes every person in respect of whom any proceeding under this Act has been taken for the assessment of tax payable by him;

(3) „Assessing Authority" means an officer of the Finance (Excise & Taxation) Department, authorised to make any assessment under the Act.

(4) „Business" includes:

(a) any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture whether or not such trade, commerce or manufacture, adventure or concern is carried on with a motive to making gain or profit and whether or not any profit accrues from such trade, commerce, manufacture, adventure or concern; and

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(b) any transaction in connection with, or incidental or ancillary to, such trade, commerce, manufacture, adventure or concern.

(5) „ Capital goods" means plant, machinery and equipment used in the process of manufacturing.

(6) „Casual traders" means a person who, whether as principal, agent or in any other capacity, carries on occasional transaction of a business nature involving the buying, selling, supplying or distribution of goods in the State, whether for cash or for deferred payment or for com- mission, remuneration or other valuable consideration.

(7) „Commissioner" means any person appointed by the State Government to be a Commissioner of Taxes.

(8) „Dealer" means any person who carries on the business of buying, selling, supplying for commission, remuneration or other valuable consideration, and includes-

(a) an industrial, commercial, banking, or trading undertaking whether or not of the Central Government or any of the State Governments or a local authority;

(b) an advertising concern or agency;

(c) a casual trader;

(d) a company, firm, club, association, society, trust, or cooperative society, whether incorporated or un-incorporated, which carries on such business;

(e) a commission agent, a broker, a del credere agent, any auctioneer or any other mercantile agent by whatever name called, who carries on the business of buying, selling, supplying or distributing goods on behalf of any principal;

(f) an agent of a non-resident dealer or a local branch of a firm or company or association situated outside the State;

(g) a person who sells goods produced by him by manufacture or agriculture or otherwise;

(h) a person engaged in the business of transfer otherwise than in pursuance of a contract of property in any goods or cash, deferred payment or other valuable consideration;

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(i) a person engaged in the business of transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;

(j) a person engaged in the business of delivery of goods on hire purchase or any other system of payment by instalments;

(k) a person engaged in the business of transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or commission or remuneration or any other valuable consideration;

(1) a department of the Central Government or any State Government or a Local Authority by name of any Panchayat, Municipality, Development Authority, Cantonment Board or any autonomous or statutory body including a Port Trust and the like, which, whether or not in the course of business, buys, sells, supplies or istributes goods, directly or otherwise, for cash, or for deferred payment, or for commission, remuneration, or other valuable consideration;

(m) a Hindu Undivided Family or any other system of joint family which carries on business.

(9) „Document" means title deeds, writing or inscription and includes electronic data, computer programmes, computer tapes, computer discs and the like that furnishes evidence.

(10) Goods" means all kinds of movable property (otherthan newspapers) and includes all materials, commodities, which are agreed to be severed before sale or purchase¹under a contract of sale or purchase²and property in goods (whether as goods ibid purchase or in some other form) involved in the execution of works contract, lease or hire-purchase or those to be used in the fitting out, improvement or repair of movable property but does not include actionable claims, stocks, shares and securities.

(11) „Government" means the Government of Tripura.

(12) „Gross turnover" means the aggregate turnover in all goods of a dealer 1,2 Inserted vide the TVAT (Amendment) Ordinance, 2007 (w.e.f 17-7- 2007) and subsequent legislation vide the TVAT (Amendment) Act, 2007(dt. 9-10-2007)

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at all places of business in the State for a particular period made on his own account and also on behalf of the principals.

(13) "Input-Tax" means the tax paid or payable under this Act by a registered dealer to another registered dealer on the purchase of goods in Tripura in the course of business for resale or for the manufacture of taxable goods or for use as containers or packing material or for the execution of works contract;

(14) "Manufacture" includes any activity that brings out a change in an article or articles as a result of some process, treatment, labour and results in transformations into a new and different article so understood in commercial parlance having a distinct name, character, use, but does not include such activity of manufacture as may be notified.

(15) "Official Gazette" means the Tripura Gazette.

(16) "Output Tax" means the tax charged or chargeable under this Act by a registered dealer for the sale or purchase¹of goods in the course of business in Tripura;

(17) "Person" includes :-

a) an individual;

b) a joint family;

c) a company;

d) a firm;

e) an association of persons of a body of individual; whether incorporated or not;

f) the Central Government or the Government of Tripura or the Government of any other State or Union Territory in India;

g) a local authority;

(18) "Place of business" means any place where a dealer carries on the business and includes;

(a) any warehouse, godown or other place where a dealer stores or processes his goods;

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(b) any place where a dealer produces or manufactures goods;

(c) any place where a dealer keeps his books of accounts;

(d) in cases where a dealer carries on business through an agent (by whatever name called), the place of business of such agent;

(e) any vehicle or vessel or any other carrier wherein the goods are stored or used for transporting the goods;

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

(20) "Recipient" means a person receiving goods, as defined for the purpose of this Act;

(21) "Registered Dealer" means a dealer registered under this Act;

(22) "Resale" means sale of purchased goods -

(i) ¹(a) in the same form in which they were purchased; or

(b) without doing anything to them, which amounts, or results in a manufacture.

(ii) ''Repurchase'' means purchase of sold goods —

(a) in the same form in which they were sold, or

(b) without doing anything to them, which amounts, or result in a manufacture.²

(23) "Return" means any return prescribed and / or required to be furnished under this Act or the Rules.

(24) "Rules" means rules made under this Act.

(25) (i)³"Sale" with all its grammatical variations and cognate expressions means every transfer of the property in goods (other than by way of a mortgage, hypothecation, charge or pledge ) by one person to another in the course of trade or business for cash or for deferred payment or other valuable consideration, and includes -

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

1,3 Renumbered vide the TVAT (Amendment) Ordinance, 2007 (w.e.f 17-7- 2007) and subsequent legislation vide the TVAT (Amendment) Act, 2007(dt. 9-10-2007)

2 Inserted vide the TVAT (Amendment) Ordinance, 2007 (w.e.f 17-7- 2007) and subsequent legislation vide the TVAT (Amendment) Act, 2007(dt. 9-10-2007)

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b) transfer of property in goods (whether as goods or in some other form) involved in execution of a works contract;

c) delivery of any goods on hire purchase or any other system of payment by instalments;

d) transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;

and such transfer, delivery or supply of any goods shall be deemed to be a sale of those goods by the person making the transfer, delivery or supply and purchase of those goods by the person to whom such transfer, delivery or supply is made, but does not include a mortgage, hypothecation, charge or pledge.

(ii) 'Purchase' with all its grammatical variations and cognate expressions means any transaction of acquiring property in goods against valuable consideration or deferred payment by a dealer on purchase of taxable goods as mentioned in schedule VIII including any sum charged for,

(a) anything done by the seller with or in respect of the goods at the time of or before delivery thereof and

(b) containers or other materials for the packaging of such goods.¹

(26) "Sale price" means the amount of valuable consideration received or receivable by a dealer for the sale of any goods less any sum allowed as cash discount, according to the practice normally prevailing in the trade, but inclusive of any sum charged for anything done by the dealer in respect of the goods or services at the time of or before delivery there of, excise duty, special excise duty or any other duty or taxes except the tax imposed under this Act "and 'purchase price' means the amount of valuable consideration paid or payable by a dealer on purchase of taxable goods as mentioned in schedule VIII." ²

1,2 Inserted vide the TVAT (Amendment) Ordinance, 2007 (w.e.f 17-7- 2007) and subsequent legislation vide the TVAT (Amendment) Act, 2007(dt. 9-10-2007)

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Explanation 1¹:-

For the purpose of this clause „sale price" includes, -

a) in relation to the transfer of property in goods (whether as goods or in some other form) involved in the execution of works contract, such amount as is arrived at by deducting from the amount of valuable consideration paid or payable to a person for the execution of such works contract, the amount representing labour and other charge incurred and profit occurred not in connection with transfer of property in goods for such execution;

b) in respect to transfer of the right to use any goods for any purpose (whether or not for a specified period), the valuable consideration received or receivable for such transfer.

Explanation 2 :-

For the purpose of this clause purchase price includes,-

(a) anything done by the seller with or in respect of the goods at the time of or before delivery thereof and

(b) containers or other materials for the packing such goods; ²

(27) "Schedule" means schedule appended to this Act;

(28) "Tax" means the tax payable under this Act,

(29) "Tax Invoice" means a document listing goods sold with price, quantity and other details as specified in this Act and includes a statement of account, bill, cash register, slip, receipt or similar record, regardless of its form;

(30) "Tax Period" means a calendar month or a quarter, as the case may be, as prescribed;

(31) "Taxable Sale" means sale which is taxable under the provisions of this Act, "and ''Taxable purchase" means purchase of goods as mentioned in schedule VIII which is taxable under the provisions of this Act ;" ³

1 Renumbered vide the TVAT (Amendment) Ordinance, 2007 (w.e.f 17-7- 2007) and subsequent legislation vide the TVAT (Amendment) Act, 2007(dt. 9-10-2007) 2, 3 Inserted vide the TVAT (Amendment) Ordinance, 2007 (w.e.f 17-7- 2007) and subsequent legislation vide the TVAT (Amendment) Act, 2007(dt. 9-10-2007)

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(32) "Taxable Turnover" means the turnover on which a dealer is liable to pay tax;

(33) "Transporte" means a registered transport company, a carrier or a transporting agent operating transport business in Tripura in taxable goods.

(34) "Tribunal" means the Tribunal constituted under this Act;

(35) "'Turnover' means the aggregate amount for which goods are either purchased or bought or sold or supplied or distributed by a dealer, either directly or through another whether on own account or on account of other, whether for cash or for deferred payment, or other valuable consideration." ¹

Explanation :-

(1) The turnover in respect of delivery of goods on hire purchase or on any system of paymeniby installments shall be the market price of the goods so delivered,

(2) The turnover in respect of the transfer of the right to use any goods shall be the aggregate amount received or receivable by the dealer as consideration for such transfer,

(3) Subject to such conditions and restrictions, if any, as may be prescribed in this behalf, -

(a) the amount for which goods are sold shall include any sum charged for anything done by the dealer in respect of the goods sold at the time of, or before, the delivery thereof;

(b) any cash discount on the price allowed in respect of any sale or any amount refunded in respect of goods returned by customers shall not be included in the turnover; and

(c) where for accommodating a particular customer, a dealer obtains goods from another dealer and immediately disposes of the same to the said customer, the sale in respect of such goods shall be included in the turnover of the later dealer but not in that of the former;

(4) The turnover in respect of purchase of taxable goods means goods as mentioned in schedule VIII. ²

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(36) "Works Contract" means any agreement for carrying out for cash or deferred payment or other valuable consideration -

(i) the construction, fitting out, improvement or repair of any building, road, bridge or other immovable property, or

(ii) the installation or repair of any machinery affixed to a building or other immovable property, or

(iii) the overhaul or repair of-

(a) any motor vehicle,

(b) any vessel propelled by internal combustion engine or by any other mechanical means,

(c) any aircraft,

(d) any component or accessory or part of any of the items mentioned in paragraph (a) to (c) above,

(iv) the altering, ornamenting, finishing, improving or otherwise processing or adopting of any goods.

(37) "Year" means twelve-month period commencing on the first day of April;

(38) "Zero rating" means complete removal of tax up to the zero rated stage of production or distribution. No tax is charged on sale and tax credit is given for the tax paid on purchases.

(39) "Special Economic Zone" (S.E.Z) means the area outside the custom territory of India for trade operation, duties and tariffs.

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CHAPTER -II

INCIDENCE AND LEVY OF TAX

3. Incidence of Tax - (l) Every dealer -

(a) at the time of commencement of this Act -

(i) whose taxable turnover of sales during the year immediately preceding the commencement of this Act exceeded the taxable limit, or

(ii) who is registered or liable to be registered under the Tripura Sales Tax Act, 1976 or the Central Sales Tax Act, 1956, or Tripura Purchase Tax Act, 1990, or¹

(iii) who is engaged in purchase of taxable goods as mentioned in schedule VIII. ²

(b) to whom clause (a) does not apply, and

(i) whose taxable turnover first exceeds the taxable limit during any period of twelve consecutive months, or

(ii) who is registered as a dealer under the Central Sales Tax Act, 1956, shall be liable to pay Value Added Tax (VAT) in accordance with the provisions of this Act.

Provided that the State Government may keep certain goods as listed in the schedule II (d) outside VAT which will be taxable in the first point of sale within the State without any tax credit at such rates as may be specified by the Government from time to time by notification in the Official Gazette. Provided further that the rates of different items may be different.

(2) Every dealer is liable to pay tax under sub-section (1) on sales 1,2 Inserted vide the TVAT (Amendment) Ordinance, 2007 (w.e.f 17-7- 2007) and subsequent legislation vide the TVAT (Amendment) Act, 2007(dt. 9-10-2007)

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effected by him,

(a) in case of sub-clause (i) & (iii) of ¹clause (a) of sub-section (1), with effect from the date of commencement of this Act;

(b) in case of sub-clause (i) of clause (b) of sub-section (1), with effect from the date immediately following the day on which his taxable turnover first exceeded the taxable limit during a period of any twelve consecutive months,

(c) in case of sub-clause (i) and (ii) of clause (b) of sub-section (1), with effect from the date of registration or the date on which he becomes so liable whichever is earlier.

(d) in case of sub-clause (iii) of clause of sub-section (1) with effect from the date as notified in the official Gazette or from the registration, the date on which he becomes so liable whichever is earlier. ²

(3) For the purpose of this Act, taxable limit means in relation to any dealer who:

(a) imports for sale any taxable goods into the State of Tripura on his own behalf or on behalf of his principal - Nil

(b) manufactures or processes any taxable goods for sale - Nil

(c) is engaged in any other business other than clause (a) and (b) - Rs.3,00,000/-

(d) involved in the execution of works contract and transfer of right to use any goods for any purpose, lease or hire purchase - Nil 1,2 Inserted vide the TVAT (Amendment) Ordinance, 2007 (w.e.f 17-7- 2007) and subsequent legislation vide the TVAT (Amendment) Act, 2007(dt. 9-10-2007)

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(e) involved in purchase of goods as mentioned in the schedule VIII - Nil ¹

4. Tax on deemed sales - (1) Notwithstanding anything contained elsewhere in this Act, any transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract shall be deemed to be a sale of those goods by the person making the transfer and shall liable to be taxed at the rate specified in the Schedule:

Provided that in respect of any such transfer, only so much value of the goods involved in the works contract which has actually been paid to the dealer during the period, shall be taken into account for determining the turnover for the period.

Explanation :- For the purpose of this section, "Property in goods" shall mean the aggregate of the goods for which amounts have been received or receivable by a dealer during such period as valuable consideration, whether or not such amount has been separately shown in the works contract. The amount as received or receivable shall include the value of such goods purchased, manufactured, processed, or procured otherwise by the dealer, and the cost of freight or delivery as may be incurred by such dealer for carrying such goods to the place where these are used in execution of such works contract, but shall not include such portion of the aforesaid amounts as may be prescribed.

(2) Tax on transfer of the right to use any goods- Notwithstanding anything contained elsewhere in this Act, any transfer of the right to use any goods for any purpose (whether or not for a specified period) shall be taxable at the rate as specified in the Schedule.

(3) Deduction of tax at the time of payment- Every person responsible for paying ) any sum to any person on account of works contract and right to use any goods for any purpose, shall at the time of credit of such sum to account of the person or at the time of payment thereof in cash or by issue of a cheque or draft or any other mode, deduct such amount towards sales tax (not being more than the total tax payable by the dealer) as may be prescribed.

1 Inserted vide the TVAT (Amendment) Ordinance, 2007 (w.e.f 17-7- 2007) and subsequent legislation vide the TVAT (Amendment) Act, 2007(dt. 9-10-2007)

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5. Levy of tax on sale - (1) The tax payable by a dealer under section 3 shall be levied on his taxable turnover of sales.

(2) Taxable turnover of sales in relation to a dealer liable to pay tax under sub-section (1) of section 3 shall be calculated from the gross turnover of sales during any period which remains after deducting there from -

(a) sales of goods declared as exempt from tax in schedule „III";

(b) sales of goods which are shown to the satisfaction of the Commissioner to have taken place -

(i) in the course of inter-State trade or commerce, or

(ii) outside Tripura.

(iii) in the course of the import of the goods into or export of the goods out of the territory of India.

Explanation - Section 3,4 and 5 of the Central Sales Tax Act, 1956 shall apply for determining whether or not a particular sale or purchase has taken place in the manner indicated in sub-clause (i), sub-clause (ii) orsub-clause (iii).

(c) in case of turnover of sales in relation to works contract, the charges towards labour, services and other like charges and subject to such conditions as may be prescribed;

Provided that in cases where the amount of charges towards labour, services and other like charges in such contract are not ascertainable from the terms and conditions of the contract, the amount of such charges shall be calculated at the prescribed percentage.

(d) such other sales on such conditions and restrictions as may be prescribed.

5A. Levy of Tax on purchase - (1) The tax payable by a dealer under Section 3(1) (a) (iii) shall be levied on his gross taxable purchase.

(2) The tax under sub-section (1) shall be levied at the gross taxable purchase of goods as mentioned in schedule VIII. ¹

1 Inserted vide the TVAT (Amendment) Ordinance, 2007 (w.e.f 17-7- 2007) and subsequent legislation vide the TVAT (Amendment) Act, 2007(dt. 9-10-2007)

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6. Levy of tax on containers and packing material. -Where any goods packed in any container or packing material are sold or purchased¹ in which such goods containers and packing materials are packed shall be deemed to have been sold or purchased²along with the goods and the Tax under Section 5 or 5A³shall be levied on the sale or purchase⁴of such container or packing material at the rate of tax, if any, applicable to the sale, of the goods itself;

Provided that no tax under section 5 shall be levied where the container or packing material is sold along with the goods declared as exempted from tax under this Act.

7. Rate of tax - The value added tax payable by a dealer under this Act shall be levied on his taxable turnover at such rate as specified in the Schedule II(a), II(b), II(c), VI, VII & VIII.⁵

8. Exemptions :- (1) Sale of certain goods as specified in the Schedule III of this Act shall be exempt from tax under this Act subject to conditions and exceptions set out therein.

(2) Sales of certain goods of local importance with little implication on interstate trade as specified in Schedule IV shall be taxable at the rate zero.

(3) Export of Export Oriented Units and Special Economic Zone would be exempt from tax under this Act.

(4) Supplies between Special Economic Zone and Export Oriented Units would be exempt from tax under this Act.

9. Tax payable :- (1) The net tax payable by a registered dealer for a tax period shall be difference between the output tax and the input tax, which can be determined from the following formula:

Net tax payable = O - I

Where „O" denotes the output tax payable for any tax period on the taxable turnover at the rates specified in the Schedule and subject to such conditions as may be prescribed from time to time and „I" denotes the input tax paid or payable under this Act for the said tax period by such 1, 2, 3, 4 Inserted vide the TVAT (Amendment) Ordinance, 2007 (w.e.f 17-7- 2007) and subsequent legislation vide the TVAT (Amendment) Act, 2007(dt. 9-10-2007)

5 Substituted vide the TVAT (Amendment) Ordinance, 2007 (w.e.f 17-7- 2007) and subsequent legislation vide the TVAT (Amendment) Act, 2007(dt. 9-10-2007)

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dealer to another registered dealer on the sale to him of any goods for resale or use in manufacturing or processing of goods for sale or purchase by him of goods mentioned in schedule VIII for resale or use in manufacturing or processing of goods for sale 'or purchase by him of goods mentioned in schedule VIII for resale or use in manufacturing or processing of goods for sale.'¹

Explanation - Value Added Tax (VAT) is a multi point tax payable by manufacturer, processor, wholeseller and retailer on the value added on each point of sale with provision for credit of tax paid during purchase 'and also on each point of purchase of goods as mentioned in schedule VIII with provision for credit of tax paid during previous transaction.'²

10. Input tax credit :- (1) For the purpose of calculating the net tax payable by a registered dealer for any tax period after being registered, an input tax credit as determined under this section shall be allowed to such registered dealer for the tax paid or payable in respect of all taxable purchase of goods as mentioned in schedule VIII and³all taxable sales other than such sales as may be prescribed subject to the following conditions:

(a) Input tax credit on capital gods except those mentioned in negative list in Schedule IV shall be adjusted against tax payable by a dealer over a period not exceeding three years.

Provided that in case of closure of business before the period specified above, no further input tax credit shall be allowed and input tax credit carried forward, if any, shall be forfeited.

(b) In respect of exporting dealers, input tax credit may be spread over a period less than 3 years as may be prescribed.

(c) Input tax credit is to be given only after commencement of sale of taxable goods 'and purchase of taxable goods as mentioned in shedule VIII.'⁴

(d) In respect of inputs used in taxable goods sent on stock / consignment transfer, tax paid in excess of 4% or the prevailing rate of C. S. T. on such inputs is to be credited.

1, 2, 3, 4 Inserted vide the TVAT (Amendment) Ordinance, 2007 (w.e.f 17-7- 2007) and subsequent legislation vide the TVAT (Amendment) Act, 2007(dt. 9-10-2007)

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(e) Tax paid in excess of 4% on petroleum products used as fuel (other than petrol, Aviation Turbine Fuel and diesel and other fuels when used as fuel in production of taxable goods or captive power is to be entitled for input credit. However, no input tax credit will be given if petroleum product is used as fuel in motor vehicle.

(f) Input tax credit shall be allowed during the return period. Refund of excess tax credit shall be allowed only after the end of the financial year.

(2) Partial input tax credit is to be made where inputs are used in the following circumstances :-

(a) Where sale consists of both taxable and exempted goods.

(b) Where sale consists of sale and dispatch in the form of consignment and stock transfer to other states.

(c) Where inputs are used for any other purposes in addition to use in the course of business.

Provided that input tax credit shall be proportionate to taxable sale out of total sales 'and also shall be proportionate to taxable purchase out of total purchase for the goods as mentioned in schedule VIII'¹

Provided further that in case of consignment transfer, so much of input tax credit shall be given as may be prescribed.

(3) Input tax credit shall be allowed for purchase of goods made within the State of Tripura from a registered dealer holding a valid certificate of registration and which are intended for the purpose of -

(a) sale or resale by him in the State of Tripura; or

(b) use as raw material or as capital goods in the manufacturing and processing of goods other than those exempted from tax under this Act intended for sale in the State of Tripura; or

(c) sale in the course of export out of the territory of India; or

(d) for use as containers for packing of goods other than those exempted from tax under this Act for sale or resale in the State of Tripura;

Provided that if purchases are used partially for the purposes

16

specified in this sub-section, input tax credit shall be allowed proportionate to the extent they are used for the purposes specified in this sub-section.

(4) Input tax credit shall not be claimed by the dealer until the tax period in which the dealer receives the tax invoice in original containing the prescribed particulars of the sale evidencing the amount of the input tax:

Provided that for good and sufficient reasons to be recorded in writing and in the prescribed manner, the Commissioner may allow such credit subject to such conditions and restrictions as may be prescribed.

(5) A registered dealer who intends to claim input tax credit under sub- section (1) shall, for the purpose of determining the amount of input tax credit, maintain accounts, and such other records as may be prescribed in respect of the purchases and sales made by him in the State of Tripura.

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

(i) in respect of any taxable goodsunder this Act purchased by him from another registered dealer for resale but give; away by way of free sample or gift;

(ii) who has been permitted by the Commissioner for composition of tax at a percentage of the turnover of sales in lieu of VAT as provided under section 15;

(iii) in respect of capital goods of traders in the initial year i. e. the input tax credit on capital goods would be confined to manufacturers;

(iv) in respect of goods brought from outside the State against the tax paid in other States;

(v) in respect of stock of goods remaining unsold at the time of closure of business;

(vi) in respect of goods purchased on payment of tax, if such goods are not sold because of any theft, destruction or damage for any reason;

(vii) where the tax invoice is -

(a) not available with the dealer, or

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(b) there is evidence that the same has not been issued by the selling dealer from whom the goods are purported to have been purchased;

(viii) in respect of goods purchased from a dealer whose certificate of registration has been suspended;

(ix) in respect of goods used for transfer of stock other than by way of sale outside the State of Tripura;

(x) in respect of sales exempt from tax as specified in Schedule III.

(xi) in respect of raw materials used in manufacture or processing of goods where the finished products are despatched other than by way of sales:

Provided that in respect of transactions falling under item (ix), input tax credit may be allowed on the tax paid in excess of 4% on the raw materials used directly in the manufacture of the finished products.

(7) The Commissioner may, after giving sufficient reasons in writing, reject the method adopted by the registered dealer in a year to determine the extent to which goods are used, consumed or supplied or intended to be used, consumed or supplied, in the course of making taxable sales and calculate the amount of input tax credit after giving the registered dealer concerned an opportunity of being heard.

11. Input tax credit exceeding tax liability - (1) If the input tax credit of a registered dealer other than an exporter selling goods outside the territory of India determined under section 10 of this Act for a period exceeds the output tax for that period, the excess credit shall be set off against any outstanding tax, penalty or interest under this Act or CST Act, 1956.

(2) The excess input tax credit after adjustment under sub-section (1) may be carried over as an input tax credit to the subsequent period or periods but shall not be carried beyond the end of next financial year.

12. Adjustment of input tax credit :- Where any purchaser, being a registered dealer, has been issued with a credit note or debit note in terms of sub- section (1) of section 17 or if he returns or rejects goods purchased, as a consequence of which, the input tax credit availed by him in any period in respect of which the purchase of goods relates, becomes less or excess, he shall compensate such less credit or excess credit by adjusting the

18

amount of tax credit allowed to him in respect of the tax period in which the credit note or debit note has been issued or goods are returned subject to conditions as may be prescribed.

13. Export :- (1) Export from India will be zero rated i.e. the tax applicable to the exported commodity would be zero and credit / refund would be available for VAT paid under this Act on input used by them.

(2) Sale of goods to International Organisations specified in Schedule I and official and private purchases by the Diplomatic Missions / Consulates shall be deemed to be sale of goods in the course of export out of territory of India and shall be entitled to zero rating as provided.

(3) Supplies from domestic tariff area to Special Economic Zone and Export Oriented Units would be zero rated and the supplying units would get credit / refund for VAT paid on inputs used by them.

14. Burden of proof :- In respect of any sale effected by a dealer, the burden of proving that he is entitled to deduction under sub-section (2) of section 5 or that he is eligible to input tax credit under section 10 shall be on him,

15. Composition of tax by certain registered dealers :- (1) All registered dealers whose gross turnover of sales does not exceed rupees ten lakhs, subject to such conditions and restriction as may be prescribed shall, pay in lieu of the tax as specified under section 5, a tax at such percentage cf the entire taxable turnover of such sales and purchases as the Government may, by order, notify, subject to the condition that no input tax credit shall be available to such dealers and no tax invoice shall be issued by such dealers :

Provided that payment of tax under this section shall not apply to a registered dealer who imports goods from outside the state or purchase of goods as mentioned in schedule VIII or¹manufactures or processes goods within the state for the purpose of carrying out his business. Provided further that a registered dealer may, by exercising option in the prescribed manner, elect to pay tax as specified under section 5 of this Act in lieu of the provisions of this section.

(2) Notwithstanding anything contained anywhere in the Act, the

19

Government may, by notification in the official Gazette, specify any dealer or class of dealers to pay lump sum tax in lieu of tax payable under section 9 of this Act.

16. Powers of Government to amend Schedule:- The Government, after giving by notification not less than 14 days notice of the intention to do so, may, by notification, add to, amend or alter any Schedule to this Act.

17. Credit notes and Debit notes :- (1) Where a tax invoice has been issued and the amount shown as tax charged in the tax invoice exceeds the tax payable under this Act in respect of that sale, the registered dealer making the sale shall provide the purchaser with a credit note containing the requisite particulars as may be prescribed.

(2) Where the tax invoice has been issued and the tax payable under this Act in respect of the sales exceeds the amount of tax charged in that tax invoice, the registered dealer making the sales shall provide the purchaser with a debit note containing the requisite particulars as may be prescribed.

(3) In case of goods returned or rejected by the purchaser, a credit note shall be issued by the selling dealer to the purchaser and a debit note will be issued by the purchaser to the selling dealer containing the particulars as may be prescribed.

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CHAPTER III

TAXING AUTHORITY AND TRIBUNAL

18. (1) The State Government may, for carrying out the purposes of this Act, appoint a Commissioner of Taxes, and such other persons to assist him as it thinks fit.

(2) Persons appointed under sub-section (1) shall exercise such powers as may be conferred, and perform such duties as may be required, by or under this Act.

(3) The State Government may, instead of appointing any person under sub-section (1), invest, by notification, any officer to exercise any power under this Act and also specify therein the area, in which, power is to be exercised and thereupon such officer or officers shall be deemed to have been appointed under sub-section (1).

(4) The State Government may, by notification in the Official Gazette, constitute a Tribunal to be called the Tripura Value Added Tax Tribunal. The Tribunal shall consist of such number of members as the State Government may think to appoint and where it consists of two or more members, one of them shall be appointed as the Chairman thereof.

(5) The qualifications, conditions of service and tenure of the members constituting the Tribunal shall be such as may be prescribed.

(6) No decision or action of the Tribunal shall be called in question merely on the ground of any vacancy in the Tribunal.

(7) The functions of the Tribunal may be discharged by any of the members sitting either singly or in Benches of two or more members, as may be determined by the Chairman. If the members of a Bench are divided, the decision shall be the decision of the majority, if there be a majority; but if the members are equally divided, they shall state the point or points on which they differ, and the case shall be referred by the Chairman of the Tribunal for hearing on such point or points to one or more of the members of the Tribunal; and such point or points shall be decided according to the majority of the members of the Tribunal who heard the case including those who first heard it:

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Provided that, if at any time, the Tribunal consists of only two members, the decision of the Tribunal shall be that of the Chairman in such cases.

(8) Subject to the previous sanction of the State Government, the Tribunal shall for the purpose of regulating its procedure (including the place or places at which the Tribunal, the Benches or the members thereof shall sit) and providing the rules of Business, make regulations consistent with the provisions of this Act and the rules made thereunder;

Provided that the regulations so made shall be published in the Official Gazette,

(9) All persons appointed under this section shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code,

1860.

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CHAPTER - IV

REGISTRATION

19. Compulsory registration of dealers - (1) No dealer, while being liable to pay tax under this Act, shall carry on business as a dealer unless he has been registered and possesses a certificate of registration; Provided that a dealer liable to pay tax shall be allowed thirty days" time from the date from which he is first liable to pay such tax to get himself registered.

(2) Every dealer required by sub-section (1) to be registered shall make application in this behalf in the prescribed manner to the Commissioner and such application shall be accompanied by a declaration in the prescribed form duly filled in and signed by the dealer specifying therein the class or classes of goods dealt in or manufactured by him.

(3) If the said authority is satisfied after such enquiry as may be deemed necessary that an application for registration is in order, he shall, in accordance with such manner, grant registration to the applicant and issue a certificate of registration in the prescribed form which shall specify the class or classes of goods dealt in or manufactured by him.

(4) Where the application for registration is made under this section, the Commissioner shall grant him the certificate of registration from the date of order granting such registration;

(5) The Commissioner may, from time to time, amend any certificate of registration in accordance with information furnished or otherwise received, and such amendment may be made with retrospective effect in such circumstances and subject to such restrictions and conditions as may be prescribed.

(6) When -

(a) any business in respect of which a certificate of registration has been granted to a dealer on an application made, has been discontinued, or

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(b) a dealer has ceased to be liable to pay tax, or

(c) an incorporated body is closed down or if it otherwise ceases to exist; or

(d) the owner of an ownership business dies leaving no successor to carry on business; or

(e) in case of a firm or association of persons if it is dissolved; or

(f) a person or dealer is registered by mistake; or

(g) a dealer fails to furnish return and pay tax and interest according to such return or returns within the time extended; the Commissioner may cancel the registration of such dealer.

(7) The cancellation of registration will take effect from the date as ordered by the Commissioner.

(8) When any dealer, to whom a certificate of registration is granted, has failed to pay any tax, penalty or interest payable under this Act or has failed to furnish return, the certificate of registration of such dealer may be suspended by the Commissioner.

Provided that the certificate of registration of a dealer shall not be suspended if he has furnished return or returns within the date prescribed in the notice and has paid tax, penalty or interest payable under this Act by such date, as the Commissioner may extend upon an application filed by the dealer within 15 days from the date by which he is required to file such return or returns or make payments of tax, interest or penalty, as the case may be.

(9) Suspension of certificate of registration will be withdrawn and registration certificate shall be restored on an application made by the dealer on furnishing evidence of payment of all taxes and on furnishing of overdue return or returns within a reasonable time as granted by the Commissioner. If no step is taken by the dealer within such reasonable time, the registration certificate shall be cancelled.

(10) No order under sub-section (6) or sub-section (8) shall be made unless the applicant, the person concerned or the dealer has been given an opportunity of being heard.

(11) Every dealer after registration shall be continued to be a registered

24

dealer until expiry of three consecutive years though his turnover may not exceed the taxable limit during any tax period within these three years. If he continues to be not liable to pay tax during the entire period of three years, he shall be ceased to be a registered dealer.

20. Security to be furnished in certain cases :- (1) The Commissioner may, for good and sufficient reasons to be recorded in writing, require the person who has applied for registration under section 19, or the dealer who has been registered, to furnish in the prescribed manner such security or such additional security as may be prescribed for securing proper and timely payment of tax or any other sum payable by him under this Act.

(2) The Commissioner may, by order in writing and for good or sufficient reasons to be recorded therein, forfeit the whole or any part of the security or additional security referred to in sub-section (1) furnished by a dealer, for -

(a) realising or recovery of tax or any other sum due, or

(b) recovery of any financial loss caused to the State Government due to negligence or default in not making proper use of or not keeping in safe custody, blank or unused prescribed form.

(3) Where the security furnished by a dealer, is forfeited in whole or is rendered insufficient, such dealer shall, on demand by order of the Commissioner, furnish fresh or further security of the requisite amount or shall make up the deficiency, as the case may be, in such manner and within such period as may be specified by the Commissioner

(4) The Commissioner may, on application by a dealer, who has furnished security as required, refund in the prescribed manner any amount of security or part thereof if such security is not required for the purposes for which it was furnished.

(5) Security shall be furnished by a dealer, in such manner and by such time as may be specified in the order requiring to furnish, or demanding, such security.

21. Imposition of penalty for failure to get registered :- (1) If a dealer, who is required to get himself registered within thirty days from the date

25

from which he is first liable to pay tax, fails to get himself so registered, the Commissioner may, after giving the dealer an opportunity of being heard, by order impose by way of penalty a sum of rupees one thousand for each month of default :

Provided that no penalty shall be imposed under this sub-section in respect of the same fact for which a prosecution has been instituted and no such prosecution shall lie in respect of a fact for which a penalty has been imposed under this section.

(2) If any penalty is imposed under sub-section (1), the Commissioner shall issue a notice in the prescribed form directing the dealer to pay such penalty by such date as may be specified in the notice, and the date to be specified shall not be less than fifteen days from the date of service of such notice and the penalty so imposed shall be paid by the dealer into a Government Treasury by the date so prescribed;

Provided that the Commissioner may, for reason to be recorded in writing, extend the date of such payment as specified in the notice in this behalf or allow such dealer to pay the penalty imposed in such number of instalments as he may determine.

22 Registration of Transporters :- (1) No transporter, carrier, or transporting agent shall operate its transport business in Tripura relating to taxable goods without being registered by the Commissioner of Taxes.

(2) Every transporter required by sub-section (1) to be registered shall apply for registration to the Commissioner in the prescribed manner and obtain a certificate of registration as prescribed.

(3) After receipt of an application under sub-section (2), the Commissioner of Taxes shall, if he is satisfied after such enquiry as may be deemed necessary that the application is in order, register the applicant.

(4) The Commissioner may for good or sufficient reason, demand from a registered transporter or a transporter who has applied for registration, reasonable security for protection of tax.

(5) The Commissioner may suspend or cancel the certificate of

26

registration of a transporter if the transporter, carrier or transporting agent carries on transport business in contravention of the Act and Rules.

23. Quoting of Registration Certificate Number etc. - Any person registered under this Act, shall quote the Registration Certificate number or Tax Payers" Identification number issued by the Commissioner of Taxes in any of his returns, challans, notices or other documents used for the purposes of this Act.

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CHAPTER-V

RETURNS AND ASSESSMENT

24. Periodical returns and payment of tax : (1) Every registered dealer shall furnish return in such form for such period, by such dates and to such authority, as may be prescribed:

Provided that the Commissioner may, subject to such conditions and restrictions as may be prescribed, exempt any such dealer or class of dealers from furnishing such returns or allow any such dealer -

(a) to furnish them for such different periods; or

(b) to furnish a consolidated return relating to all or any of the places of business of the dealer in the State of Tripura for the said period or for such different periods and to such authority, as he may direct.

(2) If the Commissioner has reason to believe that the turnover of sales of any dealer has exceeded the taxable limit as specified in sub- section (3) of section 3, he may, by notice served in the prescribed manner, require such dealer to furnish return as if he were a registered dealer, but no tax shall be payable by him unless his taxable turnover exceeds the taxable limit provided under sub-section (3) of section3.

(3) If any dealer having furnished returns under sub-section (1) or sub- section (2), discovers any omission or any other error in the return so filed, he may furnish a revised return before the expiry of three months next following the last date prescribed for furnishing the original return relating to the tax period.

(4) Every dealer required to file return under sub-section (1) or sub- section (2) shall pay the full amount of tax payable according to the return or the differential tax payable according to the revised return furnished, if any, into the Government Treasury or in such other manner as may be prescribed, and shall furnish along with the return or revised return, as the case may be, a receipt showing full payment of such amount.

(5) Every return under this section shall be signed and verified -

(a) in case of an individual, by the individual himself, and where

28

the individual is absent, by some person duly authorized by him in this behalf;

(b) in case of a Hindu Undivided family, by the Karta;

(c) in the case of a company or local authority, by the Principal Officer or Chief Executive thereof;

(d) in the case of a firm, by any partner thereof not being a minor;

(e) in the case of any other association, by the person competent to act on behalf of the association.

Explanation :- For this purpose, the expression "Principal Officer"

shall have the meaning assigned to it under clause (35) of section 2 of the Income Tax Act, 1961.

25. Return defaults:- (1) If a dealer required to file return under sub-section

(1) or sub-section (2) of section 24 -

(a) fails without sufficient cause to pay the amount of tax due as per the return for any tax period ; or

(b) furnishes a revised return under sub-section (3) of section 24 showing a higher amount of tax to be due than was shown by him in the original return; or

(c) fails to furnish return; such dealer shall be liable to pay interest in respect of-

(i) the tax payable by him according to the return, or

(ii) the difference of the amount of tax according to the revised return; or

(iii) the tax payable for the period for which he has failed to furnish return;

at the rate of one and half percent per month from the date the tax payable had become due to the date of its payment or to the date of order of assessment, whichever is earlier.

(2) „Month" shall mean thirty days and the interest payable in respect of a period of less than one month shall be treated as a full month.

(3) If a registered dealer, without sufficient cause, fails to pay the amount of tax due and interest along with return or revised return in accordance with the provisions of sub-section (1), the Commissioner may, after giving the dealer reasonable opportunity of being heard,

29

direct him to pay in addition to the tax and interest payable by him a penalty, not exceeding one and half times of the tax due but which shall not be less than 10% of that amount.

(4) If a registered dealer or any other dealer required to furnish return under sub-section (2) of section 24 without any sufficient cause -

(a) fails to comply with the requirements of the notice issued under sub-section (2) of section ; or

(b) fails to furnish any return by the prescribed date as required under sub-section (2) of section 24; or

(c) being required to furnish revised return, fails to furnish the revised return by the date prescribed under sub-section (3) of section 24; or

(d) having paid the tax payable according to a return in time, fails to furnish along with the return proof of payment made in accordance with sub-section (4) of section 24 ; the Commissioner may, after giving the dealer reasonable opportunity of being heard, direct him to pay in addition to any tax, interest and penalty under sub-section (3) payable or paid by him, a penalty of a sum of rupees one hundred per day of default subject to a maximum of rupees ten thousand.

(5) Any penalty imposed under this section shall be without prejudice to any prosecution for any offence under this Act.

(6) For the purposes of this Act, any return signed by a person who is not authorized under sub-section (5) of section 24 shall be treated as if no return has been filed.

26. Rounding off of the amount of tax, interest or penalty :- The amount of tax, interest or penalty payable or refundable for any period under the provisions of this Act shall be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee, then, if such part is fifty paise or more, it shall be increased to one rupee and, if such part is less than fifty paise, it shall be ignored.

27. Scrutiny of returns :- (1) Each and every return in relation to any tax period furnished by a registered dealer to whom notice has been issued by the Commissioner under section 24 shall be subject to scrutiny by the Assessing Authority to verify the correctness of calculation, application

30

of correct rate of tax and interest and input tax credit claimed therein; and full payment of tax and interest payable by the dealer during such period.

(2) If any mistake is detected as a result of such scrutiny made as per the provisions of sub-section (1), the Commissioner of Taxes shall serve a notice in the prescribed form on the dealer to make payment of the extra amount of tax along with the interest as per the provisions of this Act, if it is payable, by a date specified in the said notice.

28. Tax audit:- (1) The Commissioner or any other tax officer as directed by him shall undertake tax audit of the records, stock in trade and the related documents of the dealer who are selected by the Commissioner in the manner as may be prescribed for the purpose.

Provided that the audit wing shall be delinked from tax collection wing as may be prescribed.

(2) The tax audit shall be generally taken up in the office, business premises or warehouse of the dealer.

(3) For the purpose of tax audit under sub-section (1) the Commissioner or any other tax officer directed by him shall examine the correctness of return or returns filed and admissibility of various claims including input tax credit.

29. Self assessment :- (1) Subject to provisions of sub-section (2) of this section, the amount of tax due from a registered dealer or a dealer liable to be registered under this Act shall be assessed in the manner hereinafter provided, for each tax period or tax periods during which the dealer is so liable.

(2) Not with standing anything contained in this section, if a registered dealer has failed to furnish return or returns under sub-section (1) of section 25 in respect of any tax period or periods, the Commissioner shall proceed to make provisional assessment under section 30.

(3) If a registered dealer has filed the return of any tax period within the prescribed time and the return so filed is found to be in order, it shall be accepted as self-assessment subject to adjustment of any arithmetical error apparent on the face of the said return.

30. Provisional assessment:- (1) Where a registered dealer fails to furnish the return in respect of any tax period within the prescribed time, the

31

Commissioner shall, not withstanding anything contained in section 31, proceed to assess the dealer provisionally for the period of such default.

(2) The provisional assessment under sub-section (1) shall be made on the basis of past returns, or past records, where no such returns are available, on the basis of information received by the Commissioner and the Commissioner shall direct the dealer to pay the amount of tax assessed in such manner and by such date as may be prescribed.

(3) If the dealer furnishes return along with evidence showing full payment of tax, interest and penalty, if any, on or before the date of payment specified under sub-section (2), the provisional assessment made under sub-section (l) shall stand revoked to the extent of the tax demanded, interest levied and penalty imposed, on the date on which such return is filed by the dealer.

(4) Nothing contained in this section shall prevent the Commissioner from making assessment under section 31 and any tax, interest or penalty paid against provisional assessment shall be adjusted against tax, interest and penalty payable on final assessment under that section.

31. Audit assessment:- (1) Where

(a) a registered dealer has failed to furnish any return under sub-section

(1) of section 25 in respect of any period; or

(b) a registered dealer is selected for audit assessment by the Commissioner on the basis of any criteria or on random basis; or

(c) the Commissioner is not satisfied with the correctness of any return filed under section 24, or bonafides of any claim of exemption, deduction, concession, input tax credit or genuineness of any declaration, evidence furnished by a registered dealer in support thereof; or

(d) the Commissioner has reasons to believe that detailed scrutiny of the case is necessary,

the Commissioner may, notwithstanding the fact that the dealer may already have been provisionally assessed under section 30, serve on such dealer in the prescribed manner a notice requiring him to appear on a date and place specified therein, which may be in the business premises or at a place specified in the notice, to either attend and

32

produce or cause to be produced the books of account and all evidence on which the dealer relies in support of his returns including tax invoice, if any, or to produce such evidence as specified in the notice.

(2) The dealer shall provide all cooperation and assistance to the Commissioner to conduct the proceedings under this section at his business premises.

(3) If proceedings under this section are to be conducted at the business premises of the dealer and it is found that the dealer or his authorized representative is not available or not functioning from such premises, the Commissioner shall assess to the best of his judgement the amount of tax due from him.

(4) If the Commissioner, after considering all the evidences produced in course of the proceedings or collected by him, is satisfied that any dealer -

(a) has not furnished return in respect of any period by the prescribed date; or

(b) has furnished incomplete and incorrect return for any period; or

(c) has failed to comply with any notice under sub-section (1) or sub-section (3); or

(d) has failed to maintain accounts in accordance with the provisions of this Act or has not regularly followed any method of accounting; the Commissioner shall assess to the best of his judgement the amount of tax due from such dealer.

(5) If the Commissioner is satisfied that the dealer, in order to evade or avoid payment of tax -

(a) has failed to furnish without reasonable cause, returns in respect of any period by the prescribed date; or

(b) has furnished incomplete and incorrect returns for any period;or

(c) has availed himself of tax credit to which he is not entitled to ; or

(d) has followed such method of accounting which does not enable the Commissioner to assess the tax due from him, he shall, after giving the dealer reasonable opportunity of being heard, direct him to pay, in addition to tax and interest payable by

33

him, a penalty not exceeding one and half times of the tax due but which shall not be less than 10% of that amount.

32. Assessment of dealer who fails to get himself registered : (1) If the Commissioner, upon information which has come into his possession, is satisfied that any dealer who has been liable to pay tax under this Act, in respect of any period, has failed to get himself registered, the Commissioner shall proceed in such manner as may be prescribed to assess to the best of his judgement the amount of tax due from the dealer in respect of such period and all subsequent periods and in making such assessment shall give the dealer reasonable opportunity of being heard.

(2) The Commissioner may, if he is satisfied that the default was without reasonable cause, direct that the dealer shall pay, in addition to the amount of tax so assessed, such amount as interest and penalty as prescribed in section 25.

33. No assessment after five years :- (1) No assessment under section 31 and 32 shall be made after the expiry of five years from the end of the tax period to which the assessment relates;

Provided that in case of offence under this Act for which proceeding for prosecution has been initiated, the limitation as specified in this sub- section shall not apply.

(2) Any assessment made or penalty imposed under this Chapter shall be without prejudice to prosecution for any offence under this Act.

34. Turnover escaping assessment :- (1) Where after a dealer is assessed under section 29 or section 30 for any year or part thereof, the Commissioner has reason to believe that the whole or any part of the turnover of the dealer in respect of any period has -

(a) escaped assessment; or

(b) been under assessed ; or

(c) been assessed at a rate lower than the rate of which it is assessable;or

(d) been wrongly allowed any deduction therefrom; or

(e) been wrongly allowed any credit therein, the Commissioner may, serve a notice the dealer and after giving the dealer reasonable opportunity of being heard and making such enquiries as he considers necessary, proceed to the assess to the best of his judgement, the amount of tax due from the dealer in respect of such turnover, and

34

the provisions of this Act shall, so far as may be, apply accordingly.

(2) No order of assessment shall be made under sub-section (1) after the expiry of five years from the end of the year in respect of which or part of which the tax is assessable.

35. Exclusion of time period for assessment :- In computing the period of limitation specified for assessment or reassessment, as the case may be, the time during which any assessment or reassessment proceeding remained stayed under the order of a competent Court shall be excluded.

36. Power of reassessment in certain cases :- (1) Where any order passed by the Commissioner in respect of a dealer for any period is found to be erroneous or prejudicial to the interest of revenue consequent to, or in the light of any judgement or order of any Court or Tribunal, which has become final, then notwithstanding anything contained in this Act, the Commissioner may proceed to reassess the tax payable by the dealer in accordance with such judgement or order, at any time within a period of three years from the date of the judgement or order.

(2) Where any Court or Tribunal passes an order in appeal or revision to the effect that any tax assessed under this Act or the Central SalesTax Act, 1956 should have been assessed under the provision of a law other than that under which it was assessed, then in consequence of such order or to give effect to any finding or direction contained in such order such turnover and part thereof, may be assessed or reassessed, as the case may be, to a tax at any time within five years from the date of such order, not withstanding any limitation period which would otherwise be applicable to the assessment or reassessment made.

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CHAPTER-VI

PAYMENT AND RECOVERY OF TAX, PENALTY,

INTEREST, AND OTHER DUES

37. Payment and Recovery of Tax, Penalty and Interest: (1) Tax shall be paid in the manner herein provided and at such intervals as may be prescribed.

(2) A registered dealer furnishing returns under sub-section (1) of section 24 shall pay into Government treasury, in such manner and at such interval as may be prescribed, the amount of tax due from him for the period covered under the return along with the amount of penalty or interest or both payable by him under section 24 and shall furnish a receipt from the Treasury showing the payment of such amount.

(3) A registered dealer furnishing a revised return in accordance with the sub-section (3) of section 24, which shows that a greater amount of tax is due than was paid or payable in accordance with the original return, shall furnish along with the return a receipt showing payment of the differential amount in the manner provided in sub-section (2).

(4) (a) The amount of tax -

(i) due where returns have been filed without full payment of tax due;

or

(ii) assessed under section 29, section 30 and section 31 less the sum already paid in respect of such period together with interest, if any, required to be paid and the penalty, if any, imposed to be paid under sub-section (5) of section 31 or sub- section (2) of section 32.

(b) the amount of penalty imposed under any provision of this Act not covered under sub-chause ii) of clause (a); or (c) any other dues under this Act.

shall be paid by the dealer into Government Treasury by such date as specified in the demand notice.

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(5) Where a dealer fails to make payment of the tax assessed or interest levied or penalty imposed on him or any other amount due from him under this Act within thirty days of the date of service of the notice of demand, the Commissioner may, after giving the dealer reasonable opportunity of being heard, direct that such dealer shall, in addition to the amount due pay, by way of penalty, a sum equal to 2% of such amount of tax, penalty, interest or any other amount due, for every month, for the period for which payment has been delayed by him after the date on which such amount was due to be paid.

(6) The amount that remains unpaid after the due date of payment in pursuance of the notice issued under sub-section (4) and sub-section

(5) shall be recoverable as arrears of land revenue, or in accordance with the provisions contained in section 38.

(7) Where in pursuance of sub-section (6), any proceeding for the recovery as an arrears of land revenue of any tax, penalty, interest or part thereof or any other amount remaining unpaid, have been commenced and the amount of tax, penalty, interest or any other amount is subsequently enhanced or reduced as a result of any assessment made or order passed in the appeal, revision or rectification under this Act, the Commissioner may, in such manner and within such period as may be prescribed, inform the dealer and the authority by whom or under whose order the recovery is to be made and thereupon such proceeding may be continued as if the amount of tax, penalty, interest or any other amount as modified, enhanced or reduced, had been substituted for the tax, penalty, interest or any other amount which was to be covered under sub-section (6).

38. Special mode of recovery :- (1) Notwithstanding anything contained in any law or contract the Commissioner may at any time or from time to time, by notice in writing (a copy of which shall be forwarded to the dealer at his last known address) require any person who holds or may subsequently hold any money for, or on account of such dealer, to pay into Government Treasury in the manner specified in the notice, either forthwith or upon the money becoming due or being held, or at or within the time specified in the notice not being before money becomes due or is held, so much of the money as is sufficient to pay the amount of tax due from the dealer or penalty or both, as the case may be, under this Act, or the whole

37

of the money when it is less than that amount.

(2) The Commissioner may, from time to time, amend or revoke any notice under sub-section (1) or extend the time for making such 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 the payment under the authority of the dealer and the receipt from the Government Treasury shall be construed a good and sufficient discharge of the liability of such person to the dealer to the extent of the amount specified in the receipt.

(4) Any person discharging liability to the dealer after service on him the notice issued under sub-section (1) shall, if the liability is discharged in any manner other than that required under the said notice, be personally liable to the State Government to the extent of the liability discharged or to the extent of the liability of the dealer for tax or penalty, or both, whichever is less.

(5) Where a person on whom a notice is served under sub-section (1) proves to the satisfaction of the Commissioner that the money demanded or any part thereof were not due to the dealer, or that he did not hold any money for or on account of the dealer, at the time the notice was served on him, nor is the money demanded or any part thereof is likely to become due to the dealer or be held for or on account of the dealer, then such person shall not be liable to pay into Govt. treasury any such money or part thereof.

(6) Any amount of money which a person is required to pay under sub- section (1) or for which he is personally liable under sub-section

(4) shall, if it remains unpaid, be recoverable in the same manner as provided under sub-section (6) of section 37.

(7) Provisions of this section shall be without prejudice to any action that may be or is being taken under section 37 for recovery from the dealer the amount due from him.

39. Collection of tax only by registered dealers :- (1) No person who is not a registered dealer shall collect in respect cf any sale of goods by him in the state of Tripura any amount by way of tax under this Act and no registered dealer shall make any such collection except in accordance with the provisions of this Act and the Rules made thereunder and not

38

beyond the rate specified. Notwithstanding anything contained in this sub-section, a registered dealer who has been permitted by the Commissioner for composition of tax under section 15 shall not collect any sum by way of tax on the sale of goods during the period to which such payment relates.

(1) A. No person who is not a registered dealer shall collect in respect of any purchase of goods mentioned is schedule VIII by him in the state of Tripura any amount by way of tax under this Act and no registered dealer shall make any such collection except in accordance with the provisions of this Act and the Rules made thereunder and not beyond the rate specified. ¹

(2) If any person -

(a) not being a dealer liable to pay tax under this Act, collects any sum by way of tax; or

(b) being a registered dealer, collects any amount by way of tax in excess of the tax payable by him;

shall be liable, in addition to the tax for which he may be liable, to a penalty of an amount equal to twice the sum so collected by way of tax.

(3) If the Commissioner in the course of any proceeding under this Act or otherwise has reason to believe that any person has become liable to a penalty, or forfeiture, or both, under sub-section (2), he shall serve on such person a notice in the prescribed form requiring him to appear and show cause as to why a penalty or forfeiture or both of any sum as provided under sub-section (2) should not be imposed on him. The Commissioner may thereupon hold an inquiry as he deems necessary and shall make such order as he deems fit.

40. Collection of excess tax and forfeiture of such excess tax :- (1) No person shall collect any sum by way of tax in respect of sale of any goods or in respect of purchase of any goods mentioned in the schedule VIII ² on which no tax is payable under the Act.

(2) No dealer shall collect any amount by way of tax in excess of amount of tax payable under the Act.

1, 2 Inserted vide the TVAT (Amendment) Ordinance, 2007 (w.e.f 17-7- 2007) and subsequent legislation vide the TVAT (Amendment) Act, 2007(dt. 9-10-2007)

39

(3) Whoever contravenes the provision of this section shall, by an order of the Commissioner, be liable to pay penalty which may extend to two thousand rupees.

(4) Any amount of tax collected, in excess of the rate specified under this Act, shall be liable to be forfeited to the Government by an order of the Commissioner.

41. Purchase or¹Sales not liable to tax :-

(1) Notwithstanding anything contained in this Act, a Value Added Tax shall not be imposed under this Act -

(i) Where such sale or purchase takes place in the course of interstate trade and commerce; or

(ii) where such sale or purchase takes place in the course of import of goods into the territory of India or export of goods out of the territory of India.

(2) For the purpose of this section, whether a sale or purchase takes place-

(i) outside the State of Tripura; or

(ii) in the course of interstate trade and commerce; or

(iii) in the course of import of goods into the territory of India or export of goods out of the territory of India

shall be determined in accordance with the provisions of section 3, section 4, and section 5 of the Central Sales Tax Act, 1956.

42. Tax to be first charge on property :- Not withstanding anything to the contrary contained in any law for the time being in force, any amount payable by a dealer or other person under this Act on account of tax, penalty or interest shall be a first charge on the property of the dealer or such person.

43. Refund :-

(1) Subject to other provisions of this Act and the Rules made thereunder, the Commissioner shall, refund to a dealer the amount of tax, penalty and interest, if any, paid by such dealer in excess of the amount due from him.

40

(2) Where any refund is due to any dealer according to return furnished by him for any period, such refund may provisionally be adjusted by him against the tax due or tax payable as per the returns filed under section 24 for any subsequent period in the year; Provided that, the amount of tax or penalty, interest or sum forfeited or all of them due from, and payable by the dealer on the date of such adjustment shall first be deducted from such refund before adjustment.

44. Provisional refund :- (1) If a registered dealer has filed any return as required under this Act and the return shows any amount to be refundable to the dealer on account of sales in course of export out of the territory of India, then the dealer may apply in the manner and form prescribed to the Commissioner for grant of provisional refund pending audit and investigation to establish the correctness of the claim and consequent assessment, if any.

(2) Subject to the provisions of sub-section (3), the Commissioner may require the dealer to furnish a Bank Guarantee or other security as may be prescribed for an amount equal to the amount of refund and on receipt of such guarantee or other security, the Commissioner shall grant the dealer a provisional refund that may be determined as refundable.

(3) The Commissioner may direct the assessment under section 34 of such dealer in respect of the year containing the period covered by the said return to be taken up as early as practicable and adjust the grant of provisional refund against tax due, if any, as a result of that assessment.

(4) If on assessment, the provisional refund granted under sub-section(2) is found to be in excess, then the excess shall be recovered as if it is tax due from the dealer under this Act.

45. Interest :- (1) A registered dealer entitled to refund in pursuance of any order under this Act (including assessment under section 29, section 30 or section 31) or in pursuance of any order by any Court, shall be entitled to receive, in addition to the refund, simple interest at the rate of five percent per annum for the period commencing after ninety days of the application claiming refund in pursuance to such order till the date on which the refund is granted.

41

(2) The interest shall be calculated on the amount of the refund due after deducting therefrom any tax, interest, penalty or any other dues under this Act,

(3) If, as a result of any order passed under this Act, the amount of such refund is enhanced or reduced such interest shall be enhanced or reduced accordingly.

(4) When a dealer is in default or is deemed to be in default in making the payment under section 29, section 30 and section 31, he will be liable to pay simple interest on such amount at the rate of one and half percent per month from the date of such default for so long as he continues to make default in the payment of the said tax.

(5) Where as a result of any final order the amount of tax (including any penalty) due or in default is wholly reduced, the amount of interest, if any, paid shall be refunded, or if such amount is modified, the interest due shall be calculated accordingly.

(6) Where any amount of tax payable is enhanced by any such order, interest shall be payable on the amount by which the tax is enhanced after the expiry , of a period of thirty days from the date of the order.

(7) Where the realization of any amount remains stayed by the order of any court or authority and such order is subsequently vacated, interest shall be payable also for any period during which such order remained in operation.

(8) The interest payable under this Act shall be deemed to be tax due under this Act.

46. Power to withhold refund in certain cases :- (1) Where an order giving rise to refund is the subject matter of an appeal or further proceeding or where any other proceeding under this Act is pending, and the Commissioner is of the opinion that the grant of such refund is likely to adversely affect the revenue and that it may not be possible to recover the amount later, the Commissioner may withhold the refund till such time as he may determine.

(2) Where a refund is withheld under sub- section (1), the dealer shall be entitled to interest as provided under sub-section (1) of section 45 if as a result of the appeal or further proceeding or any other proceeding, he becomes entitled to the refund.

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47. Exemption of certain sales and purchases :- (1) Subject to such conditions as it may impose, the Government may, if it is necessary so to do in the public interest, by notification in the Official Gazette, exempt any sales or purchases made to or by a class of dealers or persons specified in the said notification from payment of the whole or any part of any tax payable under the provisions of this Act and any notification issued under this section may be issued so as to be retrospective to any date not earlier than the 1st April, 2005 and such exemption shall take effect from the date of the publication of the notification in the Official Gazette or such other earlier or later date as may be mentioned therein.

(2) Where any dealer or person has purchased any goods under a declaration or certificate given by him under any notification issued under this section and-

(a) any of the conditions subject to which such exemption was granted, or

(b) any of the recitals or the conditions of the declaration, or certificate is not complied with for any reason whatsoever, then without prejudice to the other provisions of this Act, such dealer or person shall be liable to pay tax on the sale price of the goods at the rate set out against each of such goods in the Schedule not withstanding that such dealer or person was not liable to pay tax under any other provisions of this Act and accordingly the dealer or the person who has become liable to pay tax under this sub-section shall file a return in the prescribed form to the prescribed authority within a prescribed time and shall include the sale price of such turnover in his return, and pay the tax in the prescribed manner. The tax due from any such dealer or person shall be assessed and recovered as if the person or dealer is a dealer liable to be proceeded against under the provisions of this Act.

(3) If the Commissioner has reason to believe that any person or dealer is liable to pay tax under sub-section (2), the Commissioner shall, after giving him a reasonable opportunity of being heard, assess the amount of tax so due.

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CHAPTER-VII

ACCOUNTS AND RECORDS

48. Maintenance of accounts and records etc. :-

(1) Every registered dealer or a dealer to whom a notice has been served to furnish return under sub-section (2) of section 24 shall maintain a true and up-to-date account of the value of goods purchased or manufactured and sold by him or goods held by him in stock, and, in addition to the books of account that a dealer maintains and keeps for the purpose referred to in this sub-section, he shall maintain and keeps such registers and accounts in such form in the manner prescribed.

(2) Every registered dealer or dealer referred to in sub-section (1) shall keep at his place of business all accounts, registers and documents maintained in the course of business.

(3) Where a dealer as referred to in sub-section (1) has established branch offices of the business in the State other than the principal place of business, the relevant accounts, registers and documents in respect of each such branch shall, without prejudice to the provisions of sub-section (5), be kept by him at such branch.

(4) If the Commissioner is of the opinion that the accounts maintained by any dealer or class of dealers do not sufficiently enable him to verify the returns referred to in sub-section (1) of section 24 or the assessment can not be made on the basis thereof, he may by an order, require such dealer or class of dealers, to keep such accounts, in such form and in such manner as he may, subject to rules made under this Act, direct.

(5) If the Commissioner is satisfied that any dealer or class of dealers is not in a position to maintain accounts in accordance with the provisions of sub-section (1), he may, for reasons to be recorded in writing, exempt such dealer from the operation of the provisions of the said sub-section.

49. Accounts to be Maintained by Carriers : Notwithstanding anything

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contained in any other Act, any transporter, carrier or transporting agent operating its transport business in Tripura, shall maintain proper account of goods transported to or outside Tripura through it in the manner prescribed and shall on demand by the Commissioner be liable to furnish in the prescribed manner such information as the Commissioner may require relating to the transportation of such goods and shall also be bound to produce books of accounts for inspection and examination by the Commissioner.

50. Tax Invoice :-

(1) Every registered dealer making a taxable sale to another registered dealer shall provide that purchaser at the time of sale with a tax invoice containing such particulars as specified in sub-section (2), and retain a copy thereof

(2) The tax invoice shall not be issued by a dealer in the following circumstances when the sale is made,-

(a) to a registered dealer who has been permitted for composition of tax under section 15 in lieu of VAT, or

(b) in the course of export out of the territory of India; or

(c) in the course of inter State trade and commerce; or

(d) in respect of goods exempt from tax as per schedule.

(3) Not more than one tax invoice shall be issued for each taxable sale.

(4) The tax invoice issued under sub-section (1) shall contain the following particulars on the original as well as copies thereof -

(a) the word „ Tax Invoice" in bold letter at the top or any prominent place;

(b) the name, address and registration certificate number of the selling registered dealer;

(c) the name, address and registration certificate number of the purchasing registered dealer;

(d) an individual serialized number and the date on which the tax invoice is issued;

(e) description, quantity, volume and value of goods sold and amount of tax charged thereon indicated separately;

(f) signature of the selling dealer or his employee, manager or

45

agent, duly authorized by him.

(g) the name and address of the printer, and first and last serial number of tax invoices printed and supplied by him to the dealer;

(5) Except when tax invoice is issued under sub-section (1), if a registered dealer sells any goods exceeding such amount in value as may be prescribed, in any one transaction to any person, he shall issue to the purchaser a retail invoice and retain a copy thereof.

(6) The retail invoice shall contain the following particulars on the original as well as copies thereof, -

(a) the words „Retail Invoice" or „Cash Memo" or „Bill" in bold letters at the top or in a prominent place ;

(b) the name, address and registration certificate number of the selling registered dealer ;

(c) in case the sale is in course of export out of the territory of India, the name, address and registration number, if any, of the purchasing dealer/ foreign buyer and the type of statutory form, if any, against which the sale has been made ;

(d) an individual serialized number and the date on which the retail invoice is issued ;

(e) description, quantity volume and value of goods sold inclusive of tax, charged thereon ;

(f) signature of the selling dealer or his employee, manager or agent, duly authorized by him ;

(g) the name and address of the printer, and last serial number of retail invoices printed and supplied by him to the dealer.

(7) Tax invoice shall be issued in triplicate, The original and the first copy shall be issued to the purchaser or the person taking delivery of the goods, as the case may be, and the second copy shall be retained by the selling dealer.

(8) Retail invoice shall be issued in duplicate. The original shall be issued to the purchaser and the duplicate copy shall be retained by the selling dealer.

(9) Every dealer referred to in sub-section (1) shall preserve books of account including tax invoices and retail invoices until the expiry of five years after the end of the year to which they relate or for such other period as

46

may be prescribed or until the assessment reaches its finality whichever is later.

(10) Where such dealer is party to any appeal, or revision under this Act, he shall retain, until the appeal or revision is finally disposed of, every record and accounts that pertain to the subject matter of the appeal or revision.

50A. (1) Every registered dealer making any purchase of goods as mentioned in Schedule VIII from any registered or unregistered dealer shall provide that seller at the time of purchase with a purchase voucher containing such particulars as specified in sub- section (2), and retain a copy thereof.

(2) The purchase voucher shall contain the following particulars on the original as well as copies thereof,

a) The word "Purchase Voucher" in bold letters at the top or any prominent place,

b) The name, address and registration certificate number of the purchasing dealer,

c) The name and complete address of the selling dealer, registration certificate number of the selling dealer,

d) An individual serialized number and the date on which the purchase voucher is issued,

e) Description, quantity, volume and value of goods purchased and amount of tax charged thereon indicating separately,

f) Signature of the purchasing dealer or his employee, Manager or Agent, duly authorized by him,

g) Signature of the selling dealer or his employee, Manager or Agent, duly authorized by him,

h) The name & address of the printer, and first & last serial number of purchase vouchers printed and supplied by him to the dealer.

(3) Purchase voucher shall be issued in triplicate. The first copy and second copy shall be retained by the purchasing dealer and the original copy shall be issued to the seller from whom the goods were purchased.¹

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51. Electronic record :- Every dealer who maintains the records electronically shall retain them in electronically readable format for the period specified in section 48.

52. Requirement to provide information :- Notwithstanding anything contrary to the provisions of this Act, the Commissioner may, for any purpose related to the administration or enforcement of the provisions of this Act, by notice, require any person to provide Commissioner, within such reasonable time as is stipulated in the notice, with any information or additional information including a return under this Act, or any document including electronic records.

53. Audit of accounts :-

(1) Where in any particular year, the gross turnover of a dealer exceeds forty lacs rupees or such other amount as the Commissioner, may, by notification in the official Gazette specify, then such dealer shall get his accounts, in respect of that year audited by an accountant with in six months from the end of that year and obtain a report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed.

(2) A true copy of such report shall be furnished by such dealer to the Commissioner by the end of the month after expiry of the period of six months during which the audit would have been completed.

(3) If any dealer liable to get his accounts audited under sub-section (1) fails to get his accounts audited and furnish a true copy of the audit report within the time specified in sub-section (2), the Commissioner shall, after giving the dealer a reasonable opportunity of being heard, impose on him, in addition to any tax payable, a sum by way of penalty equal to 0.1% of the turnover as he may determine to the best of his judgement in his case in respect of the said period.

Explanation :- For the purpose of this section, "Accountant" means

(i) a Chartered Accountant within the meaning of the Chartered Accountant Act, 1949 and includes a person who by virtue of the provisions of sub-section (2) of section 226 of the Companies Act, 1956 is entitled to be appointed to act as an auditor of Companies registered under the said Act or (ii) a Cost Accountant within the

48

meaning of the Cost and Works Accountant Act, 1959.

54. Dealer to declare the name of his business manager :-

(1) Every dealer, who is liable to pay tax, and who is a Hindu Undivided Family or an association of persons, club or society, firm or company, or who is engaged in business as the guardian or trustee or otherwise on behalf of another person, shall within the period prescribed, furnish a declaration in the manner prescribed stating the name of the person or persons who shall be deemed to be manager or managers of such dealer"s business for the purpose of this Act.

(2) Such declaration shall be furnished at the time of registration, wherever applicable and shall be revised from time to time.

(3) The statement furnished under this sub-section shall also contain the name and address with designation in Relation to the business of such persons who are authorized to receive notice and other documents under this Act and such service on whom shall be binding on the dealer.

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CHAPTER-VIII

LIABILITY IN SPECIAL CASES

55. Liability to pay tax in case of death :-

(1) Where a dealer, liable to pay tax under this Act, dies then -

(a) If the business carried on by the dealer is continued after his death by his legal representative or any other person, such legal representative or other person shall be liable to pay tax including any penalty, sum forfeited and interest due from such dealer under this Act or under any earlier law, in the like manner and to the same extent as the deceased dealer, and

(b) If the business carried on by the dealer is discontinued whether before or after his death, his legal representative shall be liable to pay out of the estate of the deceased, in the like manner and to the same extent as the deceased dealer would have been liable to pay if he had not died, the tax including any penalty, sum forfeited and interest due from such dealer under this Act or under any earlier law,

whether such tax including any penalty, sum forfeited and interest has been assessed before his death but has remained unpaid, or is assessed after his death.

(2) Where a dealer, liable to pay tax under this Act, is a Hindu Undivided family and the joint family property is partitioned amongst the various members or groups of members, then each member or group of members shall be jointly and severally liable to pay the tax including any penalty, sum forfeited and interest due from the dealer under this Act or under any earlier law, up to the time of the partition, whether such tax including any penalty, sum forfeited and interest has been assessed before partition but has remained unpaid, or is assessed after partition.

(3) Where a dealer liable to pay tax under this Act, is a firm, and the firm is dissolved, then every person who was a partner shall be jointly and severally liable to pay to the extent to which he is liable under section 57, the tax including any penalty, a sum forfeited and interest due

50

from the firm under this Act or under any earlier law, up to the time of dissolution, whether such tax including any penalty, sum forfeited and interest has been assessed before such dissolution but has remained unpaid, or is assessed after dissolution.

(4) Where a dealer, liable to pay tax under this Act, transfers or otherwise disposes of his business in whole or in part, or effects any change in the ownership thereof, in consequence of which he is succeeded in the business or part thereof by any other person, the dealer and the person succeeding shall jointly and severally be liable to pay the tax including any penalty, sum forfeited and interest due from the dealer under this Act or under any earlier law, up to the time of such transfer, disposal or change, whether such tax including any penalty, sum forfeited and interest has been assessed before such transfer, disposal or change but has remain unpaid, or is assessed thereafter.

(5) where the dealer, liable to pay tax under this Act, -

(a) is the guardian of a ward on whose behalf the business is carried out by the guardian, or

(b) is trustee who is carrying on the business under a trust for the beneficiary, then, if the guardianship or the trust is terminated, the ward or the beneficiary, as the case may be, shall be liable to pay the tax including any penalty, sum forfeited and interest due from the dealer up to the time of termination of the guardianship or trust, whether such tax including any penalty, sum forfeited and interest has been assessed before the termination of the guardianship or trust, but has remain unpaid, or is assessed thereafter.

(6) Where a dealer liable to pay tax under this Act is succeeded in the business by any person in the manner described in clause (a) of sub- section (1) or in sub-section (4), then such person shall be liable to pay tax on the sales or purchases of goods made by him on and after the date of such succession and shall (unless he already holds a certificate of registration) within thirty days thereof apply for registration.

56. Certain agents liable to tax for sales on behalf of principal :- (1) Where any person sells or purchases any taxable goods on behalf of his

51

principal then such person and his principal shall both be jointly and severally liable to pay taxes on the turnover of such sales or purchases. Provided, if the principal, on whose behalf the commission agent has sold or purchased any goods, shows to the satisfaction of the Commissioner that the tax has been paid by such commission agent on such goods, the principal shall not be liable to pay the tax again in respect of the same transaction.

(2) Where a manager or agent of a non-resident dealer sells or purchases any goods on behalf of a non-resident dealer in the State, then the non-resident dealer and the manager or agent residing in the State, shall be jointly and severally liable to pay tax on the turnover of such sales or purchases;

Provided that, if the non-resident dealer shows to the satisfaction of the Commissioner that the tax payable in respect of such sale or purchase has been paid by the manager or agent residing in the State, then the non-resident dealer shall not be liable to pay in respect of the same transaction.

57. Liability of Partners :-

(1) Not withstanding anything contained in the Indian Partnership Act, 1932 or any contract to the contrary, where any firm is liable to pay tax under this Act, the firm and each of the partners of the firm shall be jointly and severally liable for such payments and accordingly any notice or order under this Act may be served on any person who was a partner during the relevant time whether or not the firm has been dissolved and all the provisions of this Act shall apply accordingly.

(2) Where any such partner retires from the firm, he shall be liable to pay the tax, penalty, sum forfeited and interest remaining unpaid at the time of his retirement and any such amount due up to the date of retirement though un-assessed at that date.

58. Amalgamation of companies :-

(1) When two or more companies are to be amalgamated by the order of a court or the Central Government and the order is to take effect from a date earlier to the date of the order and any two or more such companies have sold or purchased any goods to or from each other

52

in the period commencing on the date from which the order is to take effect and ending on the date of the order, then such transactions of sale and purchase will be included in the turnover of the sales or of purchases of the respective companies and will be assessed to tax accordingly.

(2) Notwithstanding anything contained in the said order, for all of the purposes of this Act, the said two or more companies will be treated as distinct companies and will be treated as such for all periods up to the date of the said order and the registration certificates of the said companies will be cancelled, where necessary, with effect from the date of the said order.

(3) Words and expressions used in this section, but not defined, will have the respective meanings as in the Companies Act, 1956.

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CHAPTER-IX

INSPECTION OF ACCOUNTS, DOCUMENTS

AND SEARCH OF PREMISES

59. Production and inspection of accounts and documents and search of premises :-

(1) The Commissioner may, subject to such conditions as may be prescribed, require any dealer to produce before him any accounts or documents, or to furnish any information, relating to stock of goods or sale, purchase and delivery of goods or to payments made or received by the dealer, or any other information relating to his business, as may be necessary for the purpose of this Act.

(2) All accounts, registers and documents relating to stock of goods, or purchase, sale and delivery of goods, payments made or received by any dealer and all goods and cash kept in any place of business of any dealer, or in any vessel or in vehicle shall at all reasonable time be open to inspection by the Commissioner, and the Commissioner may take or cause to be taken such copies or extracts of the said accounts, registers or documents and such inventory of the goods and cash found as appears to him necessary for the purpose of this Act.

(3) If the Commissioner has reasons to believe that any dealer has evaded or is attempting to evade the payment of any tax due from him, he may, for reasons to be recorded in writing, seize such accounts, registers or documents of the dealer as may be necessary, and shall grant a receipt for the same, and shall retain the same for so long as may be necessary in connection with any proceeding under this Act or for the prosecution, under any law.

(4) For the purposes of sub-section (2) or sub-section (3), the Commissioner may enter and search any place of business of any dealer or any other place where the Commissioner has reason to believe that the dealer keeps or is for the time being keeping any account, register or document of his business or stock of goods relating to his business.

(5) Where any books of accounts, other documents, money or goods

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are found in the possession or control of any person in the course of any search, it shall be presumed, unless the contrary is proved, that such books of accounts, other documents, money or goods belong to such person.

60. Survey :-

(1) With a view to identify dealers who are liable to pay tax under the Act, but have remained unregistered, the Commissioner shall from time to time cause a survey of unregistered dealers.

(2) For the purpose of the survey, the Commissioner may by general or special notice require any dealer or class of dealers to furnish the names, addresses and such other particulars as he may find necessary relating to the persons and dealers who have purchased any goods from or sold any goods to such dealer or class of dealers during any given period,

(3) For the purposes of survey, the Commissioner may call for details and particulars regarding the services provided by public utilities and financial institutions including banking companies which in his opinion will be relevant and useful for the purposes of the survey. He may from time to time cause the results of the survey to be published in any manner that he thinks fit so however as not to disclose or indicate the identity of any particulars unregistered dealer identified during the survey

(4) The Commissioner may, for the purposes of the survey, enter any place where a person is engaged in business but is unregistered or has not applied for grant of the certificate of registration, whether such place will be principal place of business or not of such business and require any proprietor, employee or any other person who may at that time and place be attending in any manner to, or helping in, the business -

(i) to afford him the necessary facility to inspect such books of accounts or other documents as he may require and which may be available at such place,

(ii) to afford him the necessary facility to check or verify the cash, stock or other valuable articles or things which may be found therein, and

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(iii) to furnish such information as he may require as to any matter which may be useful for, or relevant to any proceedings under this Act.

Explanation - For the purposes of this sub-section, a place where the person is engaged in business will also include any other place where any of the books of accounts or other documents or any part of the cash, stock or other valuable articles or things relating to the business are kept.

(5) In course of inspection, the Commissioner may make or cause to be made extracts or copies from books of accounts and other documents inspected by him, make an inventory of any cash, stock or other valuable article or thing checked or verified by him, and record the statement of any person which may be useful for, or relevant to, any proceeding under this Act.

(6) The Commissioner, in exercise of the powers under this section, shall on no account, remove or cause to be removed from the place where he has entered any books of accounts, other documents, or any cash, stock or other valuable article or thing.

61. Automation :-

(1) The Government shall endeavor to introduce and establish an automated data processing system for complementing the purposes of the Act and for incidental and allied matters.

(2) In order to make the said system effective, the Government may from time to time make regulations for regulating the interactions between the dealers, authorities appointed or constituted under the Act and the Government Treasury.

(3) The Regulations shall be published in the Official Gazette and may be made retrospective to any date not earlier than 1 April, 2005.

62. Power to collect statistics :- (1) If the Commissioner considers that for the purpose of the better administration of this Act, it is necessary so to do, he may by notification in the Official Gazette, direct that statistics be collected relating to any matter dealt with, by or in connection to this Act.

(2) Upon such direction being made, the Commissioner or any person or persons authorized by him in this behalf may, by notification in

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the Official Gazette or by notice in any newspaper or in such other manner as in the opinion of the Commissioner or the said person is considered best to bring the notice to the attention of dealers and other persons, call upon all dealers or any class of dealers or persons to furnish such information or returns as may be stated therein relating to any matter in respect of which statistics are to be collected. The form in which, the persons to whom or the authorities to which such information or returns should be furnished, the particulars which they should contain, and the intervals in which such information or returns should be furnished, shall be such as may be prescribed.

(3) Without prejudice to the generality of the foregoing provisions, the Government may by rules provide that every registered dealer or, as the case may be, any class of registered dealers shall furnish, in addition to any other returns provided for elsewhere, an annual return in such form, by such date and to such authority as may be prescribed and different provisions may be made for different classes of registered dealers.

63. Disclosure of information by a public servant :-

(1) All particulars contained in any statement made, return furnished or accounts or documents produced in accordance with this Act, or in any record of evidence given in the course of any proceedings under this Act (other than proceeding before a Criminal Court), or in any record of any assessment proceeding or any proceeding relating to the recovery of a demand, prepared for the purposes of this Act shall, save as provided in sub-section (3), be treated as confidential; and notwithstanding anything contained in the Indian Evidence Act, 1872, no court shall, save as aforesaid, be entitled to require any servant of the Government to produce before it any such statement, return, account, document or record or any part thereof, or to give evidence before it in respect thereof.

(2) If, save as provided in sub-section (3), any servant of the Government discloses any of the particulars referred to in sub-section (1), he shall, on conviction, be punished with imprisonment which may extend to six months or with fine or with both;

Provided that no prosecution shall be instituted under this section except with the previous sanction of the Government.

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(3) Nothing contained in this section shall apply to the disclosure -

(a) of any such particulars in respect of any such statement, return, accounts, documents, evidence, affidavit or deposition, for the purpose of any prosecution under the Indian Penal Code or the Prevention of Corruption Act, 1947, or this Act, or any other law for the time being in force or

(b) of any such particulars to the Government or to any person acting in the execution of this Act or to any person for the purposes of this Act; or

(c) of any such particulars when such disclosure is occasioned by the lawful employment under this Act of any process for the service of any notice or the recovery of any demands; or

(d) of any such particulars to a Civil Court in any suit, to which the Government is a party, which relates to any matter arising out of any proceeding under this Act; or

(e) of any such particulars to any officer appointed to audit receipts or refunds of the tax imposed by this Act; or

(f) of any such particulars where such particulars are relevant to any inquiry into the conduct of an official of the Sales Tax Department to any person or persons appointed as Commissioner under the Commission of Enquiry Act, 1955, or to any officer otherwise appointed to hold such inquiry or to a Public Service Commission established under the Constitution when exercising its functions in relation to any matter arising out of such inquiry; or

(g) of such facts to an officer of the Central Government or any State Government as may be necessary for the purpose of enabling that Government to levy or realize any tax or duty imposed by it; or

(h) of any such particulars to the Director, Economics and Statistics or any officer serving under him or to any person or persons authorized under sub-section (2) of section 62 as may be necessary for enabling the Director or such person or persons to carry on their official duties.

(i) of any such particulars to an officer of the Central

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Government or any State Government as may be necessary for the administration of any law in force in India.

64. Disclosure of information required under section 62 and failure to furnish information or return under that section :- (1) No information of any individual return or part thereof, with respect to any matter given for the purposes of section 63, shall, without the previous consent in writing of the owner for the time being or his authorized agent, be published in such manner as to enable any particulars to be identified as referring to a particular dealer and no such information shall be used for the purpose of any proceedings under the provisions of this Act.

(2) Except for the purposes of prosecution under this Act or any other Act, no person who is not engaged in the collection of statistics under this Act or in compilation or computerization thereof for the purposes of administration of this Act, shall be permitted to see or have access to any information or any individual return referred to in that section.

(3) If any person required to furnish any information or return under section 62 :

(a) willfully refuses or without lawful excuse neglects to furnish such information or return as may by that section be required, or

(b) willfully furnishes or causes to be furnished any information or return which he knows to be incorrect or false. he shall, on conviction, be punished with fine which may extend to one thousand rupees and in case of a continuing offence to a further fine which may extend to one hundred rupees for each day after the first day during which the offence continues.

(4) If any person engaged in connection with the collection of statistics under section 62 or compilations or computerizations thereof willfully discloses any information or the contents of any return given or made under that section, otherwise than in execution of his duties under that section or for the purposes of the prosecution of an offence under this Act or under any other Act, he shall, on conviction, be punished with imprisonment for a term which may extend to six months or with fine which may extend to one thousand rupees, or with both.

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(5) Nothing in this section will apply to publication of any information relating to a class of dealers or class of transactions, if in the opinion of the Commissioner, it is desirable in the public interest, to publish such information.

65. Publication and disclosure of information in respect of dealers and other persons in public interest : -

(1) Notwithstanding anything contained in section 63 or 64, if the Government is of the opinion that it is necessary or expedient in the public interest to publish or disclose the name of any dealer or other person and any of the particulars relating to any proceedings under this Act in respect of such dealer and person, it may publish or disclose or cause to be published or disclose such names and particulars in such manner as it thinks fit.

(2) No publication or disclosure under this section shall be made in relation to any tax levied or penalty imposed or interest levied or any conviction for any offence connected with any proceeding under this Act, until the time for presenting an appeal to the appropriate appellate authority has expired without an appeal having been presented or the appeal, if presented, has been disposed of

Explanation :- In the case of a firm, company or other association of persons, the names of the partners of the firm, the directors, managing agents, secretaries, treasurers or managers of the company or the members of the association, as the case may be, may also be published or disclosed, if, in the opinion of the Government, the circumstances of the case justify it.

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CHAPTER-X

DETECTION AND PREVENTION OF TAX EVASION

66. Restriction on movement :-

(1) No person shall take delivery or transport from any railway station, airport, post office, or any other place whether of similar nature or otherwise, notified in this behalf by the Government, any consignment of taxable goods exceeding such quantities and except in accordance with such conditions as may be prescribed. Such conditions shall be made with a view to ensure that there is no evasion of the tax imposed by this Act.

(2) If the Commissioner has reason to believe that any person has contravened or attempted to contravene the provision of sub-section

(1) in respect of any taxable goods, he may seize such goods together with any container or other materials used for packing such goods and for the said purpose search any place, vehicle or thing which may be suspected of being used for such contravention.

(3) Any person who contravenes the provision of sub-section (1) shall be punishable with imprisonment for a term, which may extend to six months or with fine or with both.

(4) An offence under this section shall be bailable and cognizable.

67. Establishment of check posts for inspection of goods in transport :-

(1) The Government may, with a view to prevent or check avoidance or evasion of tax, by notification in the official gazette, direct the establishment of the check post or barrier at such places as may be specified in the notification and every officer who exercises powers and discharges his duties at such check post by way of inspection of documents produced and goods being moved, shall be in-charge.

(2) The driver or person in-charge of vehicle or carrier of goods in movement shall :-

(a) carry with him the records of the goods including challan, bills of sale or dispatch memos and prescribed declaration form duly filled in and signed by the consignee or transporter of goods carried;

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(b) stop the vehicle or carrier at every check post set up under sub- section(l) or at any other place by an officer authorized by the Commissioner in this behalf;

(c) produce all the documents including the prescribed forms relating to the goods before the officer-in-charge of the check post or the authorized officer;

(d) give all the information in his possession relating to the goods;

(e) allow the inspection of the goods for search of the vehicle by the officer-in-charge of the check post or any authorized officer.

(3) Where any goods are in movement within the territory of the state of Tripura, an officer empowered by the state government in this behalf may stop the vehicle or the carrier or the person carrying such goods, for inspection, at any place within his jurisdiction and provisions of sub-section

(2) shall mutatis mutandis apply.

(4) Where any goods in movement are without documents, or are not supported by documents as referred to in sub-section (2), or documents produced appeared to be false or forged, the officer-in-charge of the check post or the officer empowered under sub-section (3), may -

(a) direct the driver or the person in-charge of the vehicle or carrier or of the goods not to part with the goods in any manner including by transporting or re-booking, till a verification is done or an enquiry is made, which shall not take more than seven days;

(b) seize the goods for reasons to be recorded in writing and shall give receipt of the goods to the person from whose possession or control they are seized;

(5) The Officer-in- charge of the check post or the officer empowered under sub-section (3), after having given the person in-charge of the goods a reasonable opportunity of being heard and after having held such enquiry as he may deem fit, shall impose for possession or movement of goods, whether seized or not, in violation of the provisions of clause (a) of sub- section (2) or for submission of false or forged documents in addition to tax leviable, a penalty equal to double the amount of tax, or rupees one thousand, whichever is higher.

(6) During the pendency of the proceeding under sub-section (5), if any one

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prays for being impleaded as a party to the case on the ground of involvement of his interest therein, the said officer-in-charge or the empowered officer on being satisfied, may permit him to be included as a party to the case; and thereafter, all provisions of this section shall mutatis mutandis apply to him.

(7) The officer-in-charge of the check post or the officer empowered under sub-section (3) may release the goods to the owner of the goods or to any person duly authorized by such owner on payment of the tax and penalty imposed under sub-section (5).

(8) Where the driver or person in charge of the vehicle or the carrier is found guilty for violation of the provisions of sub-section (2), subject to the provisions of clause (a) of sub-section (4), the officer-in-charge of the check post or the officer empowered under sub-section (3) may detain such vehicle or carrier and affording an opportunity of being heard to such driver or person in charge of the vehicle or the carrier, may, impose a penalty not exceeding ten thousand rupees.

(9) Where atransporter, while transporting goods, is found to be in collusion with dealer to avoid or evade tax, the officer-in-charge of the check post or the officer empowered under sub-section (3), shall detain the vehicle or carrier of such transporter and after affording him an opportunity of being heard with prior approval in writing of the Commissioner may confiscate such vehicle or carrier.

68. Disposal of Seized goods :-

(1) The Commissioner may, subject to the provisions of section 80, dispose of by public auction any taxable goods seized under clause

(b) of sub-section (4) of section 67 in such manner as may be prescribed, and so much of the sale proceeds of the auction, after deducting the cost of conducting the auction, as may be required for payment of the dues on account of tax and penalty, shall be appropriated towards the same and the balance, if any, should be paid to the person from whom the goods were seized or to the owner of such goods.

(2) Notwithstanding anything contained elsewhere in this Act, for the purpose of this section, the amount of tax payable for the taxable goods sold by auction, shall be determined on the basis of the sale proceeds of the goods sold by public auction under sub-section (1)

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and the penalty leviable thereon may extend to one hundred and fifty percent of the tax so calculated.

(3) Nothing in this section shall absolve a person from any other penalty to which he may be liable for violation of any provision of the Act.

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CHAPTER-XI

APPEALS AND REVISION

69. Appeal:

(1) Any dealer objecting to an order of assessment or penalty passed under this Act, may, within thirty days from the date of the service of such order, appeal to the prescribed authority against such assessment or penalty:

Provided that (i) no appeal shall be entertained by the said authority unless, he is satisfied that the amount of tax assessed or the penalty levied has been paid;

(ii) the authority before whom an appeal has been filed may, for reasons to be recorded in writing, direct the appellant to pay any lesser amount which shall not be less than fifty percent of the tax assessed or fifty percent of the penalty levied and, on payment of the amount so directed, entertain the appeal;

Explanation: For the purpose of clause (ii), any amount paid either as tax or as penalty shall be deemed to be the amount paid towards tax assessed or penalty levied and if the appeal is against both the tax assessed and penalty levied, then the amount to be paid shall not be less than fifty percent of both the tax and penalty.

(iii) the authority before whom the appeal is filed may admit it after the expiration of thirty days if such authority is satisfied that for reasons beyond the control of the appellant or for any other sufficient cause it could not be filed within time.

(2) Every appeal under sub-section (1) shall be presented in the prescribed form and shall be verified in the prescribed manner.

(3) The appellate authority shall fix a day and place for hearing and may from time to time adjourn the hearing and make, or cause to be made, such further enquiry as may be deemed necessary.

(4) In disposing of an appeal under sub-section (1), the appellate authority may -

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(a) confirm, reduce, enhance or annul the assessment, or

(b) set aside the assessment and direct a fresh assessment after such enquiry as may be ordered, or

(c) confirm, reduce or annual the order of penalty.

70. Revision by Commissioner : (1) The Commissioner may call for and examine the record of any proceeding under this Act, and if he considers that any order passed therein by any person appointed under sub-section

(1) of section 18 to assist him, is erroneous in so far as it is prejudicial to the interest of the revenue, he may, after giving the dealer or transporter an opportunity of being heard and after making or causing to be made such enquiry as he deems necessary, pass such orders thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment.

(2) In the case of any order other than an order to which sub-section (1) applies, passed by any person appointed under sub-section (1) of section 18 to assist him, the Commissioner may, either on his own motion or on a petition by a dealer or a transporter for revision, call for the records of any proceeding under this Act in which any such order has been passed and may make such enquiry or cause such enquiry to be made, and subject to the provisions of this Act, may pass such orders thereon, not being an order prejudicial to the dealer or the transporter, as he thinks fit;

Provided that no petition for revision by a dealer or a transporter shall be admitted by the Commissioner unless at least fifty percent of the amount of tax assessed, or as the case may be, fifty percent of the amount of penalty levied, has been paid by the dealer or the transporter where the order against which revision is filed relates to assess ment of tax or imposition of penalty.

(3) In the case of a petition for revision under sub-section (2) by a dealer or a transporter, the petition must be made within ninety days from the date on which the order in question was communicated to him or the date on which he otherwise came to know of it, whichever is earlier;

Provided that the Commissioner before whom the petition is filed

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may admit it after the expiration of the period of ninety days if he is satisfied that for reasons beyond the control of the petitioner or for any other sufficient cause, it could not be filed within time.

(4) The Commissioner shall not revise any order under this section in the following cases -

(a) Where an appeal against the order lies under section 69 or 71 but has not been made and the time within which such appeal may be made has not expired, or in the case of an appeal to the Tribunal the dealer or the transporter has not waived his right of appeal; or

(b) Where the order is pending on appeal under section 69; or

(c) Where the order has been made the subject of an appeal to the Tribunal.

Explanation :- An order by the Commissioner declining to interfere shall, for the purpose of this section, be deemed not to be an order prejudicial to the dealer or the transporter.

71 Appeal to the Tribunal: (1) Whoever aggrieved by an order passed in appeal under section 69 or passed in revision under sub-section (1) of section 70 may appeal to the Tribunal within sixty days of the date on which such order is communicated to him.

Explanation : Order passed in appeal or revision mentioned in this sub- section shall mean an order passed after an appeal or revision is admitted under section 69 or, as the case may be, sub-section (1) of section 70 of the Act.

(2) The Tribunal may admit an appeal after the expiration of the sixty days referred to in sub-section (1), if it is satisfied that for reasons beyond the control of the appellant or for any other sufficient cause it could not be filed within time.

(3) An appeal to the Tribunal shall be in the prescribed form and shall be verified in the prescribed manner, and shall be accompanied by a fee of one hundred rupees.

(4) The Tribunal may, after giving the dealer or the transporter and the Departmental Representatives an opportunity of being heard, pass orders thereon as it thinks fit and shall communicate any such orders to the dealer and to the Commissioner.

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72. Revision to High Court - (1) A dealer or a transporter who is dissatisfied with the decision of the Tribunal or Revisional Authority may, within sixty days after being notified of the decision, file a revision with the High Court; and the dealer or the transporter so appealing shall serve a copy of the notice of revision on the respondent to the proceeding.

(2) A revision to the High Court may be made on question of law or an erroneous decision or failure to decide a question of law that will be raised in the revision.

(3) The High Court may on application either by the petitioner or by the respondent review any order passed by it provided such application is made within one year from the date of receipt of the judgement.

73. Hearing of Revision and Review by the High Court - A revision or review application presented before the High Court under section 72 shall be heard by the bench consisting of not less than two judges.

74. Power to Rectify Error Apparent on the Record:

(1) An assessing, appellate or revisional authority including the Tribunal may, on an application or otherwise at any time within three years from the date of any order passed by it, rectify any error apparent on the face of the record;

Provided no such rectification which has the effect of enhancing the liability to pay tax or penalty or penal interest shall be made unless such authority has given notice to the person affected and has allowed him a reasonable opportunity of being heard.

(2) Where such rectification has the effect of enhancing the tax liability or penalty, the Assessing Authority shall give the dealer or other person a notice of assessment or penalty and the dealer or other person shall pay the tax in the manner prescribed and when such rectification has the effect of reducing the tax liability or penalty, the Assessing Authority shall issue refund of the excess tax paid, if any.

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CHAPTER-XII

OFFENCES AND PENALTIES

75. Offences and penalties :-

(1) Whoever, not being a registered dealer, falsely represents that he is or was a registered dealer at the time when he sells or buys goods shall, on conviction, be punished with imprisonment which may extend to one year or with fine or with both.

(2) Whoever, knowingly furnishes a false return shall, on conviction, be punished-

(i) in case where the amount of tax, which could have been evaded if the false return had been accepted as true, exceeds Rs. 10,000 with imprisonment for a term which may extend to one year or with fine or with both.

(ii) in any other case, with imprisonment for a term, which may extend to six months or with fine or with both.

(3) Whoever knowingly produces before the Commissioner, false bill, cash-memo, voucher, declaration, certificate or other document for evading tax payable under this Act, shall on conviction, be punished-

(i) in case where the amount of tax which could have been evaded, if the documents referred to above had been accepted as true, exceed Rs.50,000 during the period of a year, with imprisonment for a term which may extend to one year or with fine or with both.

(ii) in any other case, with imprisonment for a term which may extend to six months or with fine or with both.

(4) Whoever, knowingly keeps false account of the value of the goods bought or sold by him in contravention of the provisions of this Act, shall, on conviction, be punished with imprisonment for a term which may extend to six months or with fine or with both.

(5) Whoever, knowingly produces false accounts, registers or documents or knowingly furnishes false information, shall, on conviction, be punished -

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(i) in case where the amount of tax which could have been evaded, if the accounts, registers or documents or information referred to above had been accepted as true, exceeds Rs. 50,000 during the period of a year, with imprisonment for a term which may extend to one year or with fine or with both.

(ii) in any other case, with imprisonment for a term which may extend to six months or with fine or with both.

(6) Whoever, issues to any person certificate or declaration under the Act, rules or notifications or a false bill, cash-memorandum, voucher, delivery Challan, lorry receipt or other document which he knows or has reason to believe to be false, shall, on conviction, be punished with imprisonment for a term which may extend to one year or with fine or with both.

(7) Whoever -

(i) willfully attempts, in any manner whatsoever, to evade any tax leviable under this Act, or

(ii) willfully attempts, in any manner whatsoever, to evade any payment of any tax, penalty or interest or all of them under this Act shall on conviction, be punished -

(a) in case where the amount involved exceeds Rs. 50,000 during the period of a year, with imprisonment for a term which may extend to one year or with fine or with both.

(b) in any other case, with imprisonment for a term which may extend to six months or with fine or with both.

(8) Whoever aids or abets or induces any person in commission of any act specified in sub-sections (1) to (7) shall, on conviction, be punished with imprisonment which may extend to six months or with fine or with both.

(9) Whoever -

(a) is engaged in business as a dealer without being registered in willful contravention of section 19, or

(b) fails without sufficient cause to furnish any returns as required by section 24 by the date and in the manner prescribed,

(c) fails without sufficient cause, when directed to keep any

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accounts or record, in accordance with the provisions of this Act, or

(d) fails without sufficient cause, to comply with any requirements made of him under section 48, or

(e) voluntarily obstructs any officer making inspection or search or seizure under section 59, shall, on conviction, be punished with imprisonment for a term which may extend to six months or with fine or with both.

(10) Whoever fails, without sufficient cause, to furnish any return by the date and in the manner prescribed under this Act shall on conviction, be punished with simple imprisonment for a term which may extend to six months or with a fine, which shall not be less than -

(i) rupees two thousand, if the tax due for the period covered by the return does not exceed rupees twenty thousand;

(ii) rupees five thousand, if the tax due for the period covered by the return exceeds rupees twenty thousand but does not exceed rupees one lakh;

(iii) rupees ten thousand, if the tax due for the period covered by the return exceeds rupees one lakh or with both.

(11) Whoever commits any of the acts specified in sub-sections (1) to

(10) and the offence is a continuing one under any of the provisions of these sub-sections, shall, on conviction, be punished with daily fine not less than rupees one hundred during the period of the continuance of the offence, in addition to the punishments provided under this section.

(12) Notwithstanding anything contained in sub-section (1) to (11), no person shall be proceeded against these sub-sections for the acts referred to therein if the total amount of tax evaded or attempted to be evaded is less than rupees two hundred during the period of a year.

(13) Where a dealer is accused of an offence specified in sub-sections

(1) to (11), the person deemed to be the manager of the business of such dealer shall also be deemed to be guilty of such offence, unless he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission thereof.

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(14) In any prosecution for an offence under this section, which requires a culpable mental state on the part of the accusec, the court shall presume the existence of such mental state, but it shall be a defence for the accused to prove the fact that he had no such mental state with respect to the act charged as an offence in that prosecution.

Explanation - Culpable mental state includes intention, motive or knowledge of fact or belief in, or reason to believe a fact and a fact is said to be proved only when the court believes it to exist beyond reasonable doubt and not merely when its existence is established by a preponderance of probability.

75A. Notwithstanding anything contained elswhere in the Act, if the Commissioner, in course of any proceeding under this Act is satisfied that any dealer has evaded in any way the liability to pay tax, he may direct that such dealer shall pay by way of penalty in addition to the tax payable by him, a sum not exceeding one & half time of that amount but which shall not be less than ten percent of that amount. Provided that no order under this section shall be made unless the dealer has been heard or has been given a reasonable opportunity of being heard.¹

76. Offences by companies :-

(1) Where an offence under this Act or the rules had been committed by a company, every person who at the time the offence was committed, was in charge of and was responsible to the company for the conduct of the business of the company, as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly :

Provided that, nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is

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proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly

Explanation - For the purpose of this section -

(a) „company" means a body corporate, and includes a firm or other a association of individuals; and

(b) „director" in relation to a firm means a partner in the firm.

(3) Where an offence under this Act has been committed by a Hindu Undivided Family, the karta thereof shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render the karta liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence:

Provided further that, where an offence under this Act has been committed by a Hindu Undivided Family and it is proved that the offence has been committed with the consent or conniva; nce of, or is attributable to any neglect on the part of, any adult member of the Hindu Undivided Family, such member shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

77. Penalty payable by the transporters :-

(1) If the Commissioner is satisfied that any transporter has delivered taxable goods to any person without obtaining from the dealer, copy of the valid permit or has concealed the actual particulars of the consignment transported by him, the Commissioner may direct that such transporter shall pay, in addition to tax, by way of penalty, a sum which may extend to one hundred and fifty percent of the tax involved.

(2) No order under sub-section (1) shall be made unless the transporter

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has been heard or has been given reasonable opportunity of being heard.

78. Cognizance of offences :-

(1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, all offences punishable under this Act or rules made thereunder shall be cognizable and bailable.

(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, it shall be lawful for the First Class Magistrate to pass on any person convicted of an offence under section 63 or 64 a sentence or fine as provided in the relevant section, in excess of his powers under section 29 of the said Code.

79. Investigation of offences :-

(1) Subject to conditions, if any, as may be prescribed, the Commissioner may authorize, either generally or in respect of a particular case or class of cases, any officer or person subordinate to him to investigate all or any of the offences punishable under this Act.

(2) Every officer so authorized shall, in the conduct of such investigation, exercise the power conferred by the Code of Criminal Procedure, 1973, upon an officer-in-charge of a police station for the investigation of a cognizable offence.

80. Compounding of offences :-

(1) The Commissioner may, either before or after the institution of proceedings of any offence punishable under section 75¹or under any rules made under this Act, accept from any person charged with such offence by way of composition of the offence under sub- sections (1), (2), (3), (4), (5), (6), (7) or clauses (a), (b), (c), (d), (e) of sub-section (9) or sub-section (10) of section 75 in addition to the tax leviable, a sum of money not exceeding one thousand rupees or double the amount of tax leviable whichever is greater.

(1)(a). An officer not below the rank of Asstt. Commissioner of Taxes may accept from a person charged with any other offence a sum of money not exceeding one thousand rupees in addition to tax leviable.²

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(2) On payment of such sum as may be determined by the Commissioner under sub-section (1), no further proceedings shall be taken against the accused person in respect of the same offence and any proceeding, if already taken, shall stand abated.

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CHAPTER-XIII

MISCELLANEOUS

81. Appearance before any authority in proceedings :-

(1) Any person who is entitled or required to attend before any authority including the Tribunal in connection with any proceeding under this Act, otherwise than when required to attend personally for examination on oath or affirmation, may attend -

(a) by a relative or a person regularly employed by him, or

(b) by a legal practitioner, or Chartered Accountant who is not disqualified by or under sub-section (2), or

(c) by a sales tax practitioner who possesses the prescribed qualifications and is entered in the list which the Commissioner shall maintain in that behalf, and who is not disqualified by or under sub-section (2).

(d) Any person who, immediately before the commencement of this Act was a sales tax practitioner under any earlier law only if such relative, person employed, legal practitioner, Chartered Accountant, or sales tax practitioner is authorized by such person in the prescribed form, and such authorization may include the authority to act on behalf of such person in such proceedings.

(2) The Commissioner may, by order in writing and for reasons to be recorded therein, disqualify for such period as is stated in the order, from attending before any such authority, any legal practitioner, Chartered Accountant, or sales tax practitioner -

(i) who has been removed or dismissed from Government service or

(ii) who being a sales tax practitioner, a legal practitioner or a Chartered Accountant is found guilty of misconduct in connection with any proceedings under this Act by the Commissioner or by an authority, if any, empowered to take disciplinary action against the member of the profession to which he belongs.

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(3) No order of disqualification shall be made in respect of any particular person unless he is given a reasonable opportunity of being heard.

(4) Any person against whom any order of disqualification is made under this section may within one month of the date of communication of such order appeal to the Tribunal to have the order cancelled or modified. The order of the Commissioner shall not take effect until one month of the making thereof, or when an appeal is preferred, until the appeal is decided.

(5) The Commissioner may, at any time suo motu on an application made to him in this behalf, revoke or modify any order made against any person under sub-section (2) and thereupon such person shall cease to be disqualified subject to such conditions or restrictions that may be contained in such order.

82. Power to take evidence or oath etc. :-

The Tribunal and the Commissioner shall, for the purpose of this Act, have the same powers as are vested in a Court under the Court of Civil Procedure, 1908 (Act V of 1908), when trying a suit, in respect of the following matters :-

(i) enforcing the attendance of any person and examining him on oath or affirmation ;

(ii) compelling the production of documents;

(iii) issuing Commission for the examination of witness and any such proceeding before the Tribunal or the Commissioner shall be deemed to be a "Judicial Proceeding" within the meaning of section 193 and 228 and for the purposes of section 196 of the Indian Penal Code, 1860 (Act XIV of 1860).

83. Declaration of stock of goods held on the appointed day :- The Commissioner may, by notification in the Official Gazette, require that any class of registered dealers as may be specified in the notification, declare such details regarding the stock of goods held by them on the day immediately preceding the appointed day in such manner and with such particulars and to such authority, as may notify in this behalf.

84. Bar of suits in Civil Courts and indemnity :- No suit shall be brought in any Civil Court to set aside or modify any assessment made or orders passed under the provisions of this Act, and no prosecution, suit or other

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proceedings shall lie against any officer of the Government employed for execution of the provisions of this Act and Rules for anything in good faith done or intended to be done under this Act or the Rules made thereunder.

85. Delegation of Powers - The Commissioner may, subject to such restrictions and conditions as may be prescribed, delegate, by notification in the Official Gazette, any of his powers under this Act to any person appointed under sub-section (1) of section 18 to assist him.

86. Power to Remove Difficulties - If any difficulty arises in giving effect to the provisions of this Act in consequence of the transition to the said provisions from the provisions of the Act in force immediately before the commencement of this Act, the Government may, by notification in the Official Gazette, make such provisions as appear to it to be necessary or expedient for removing the difficulty.

87. Power to Make Rules :-

(1) The Government may make rules for carrying out the purposes of this Act.

(2) Without prejudice to the generality of the foregoing power, such rules may, in particular, prescribe

(a) all matters required by this Act to be prescribed;

(b) the classes and duties of officers appointed for the purpose of enforcing the provisions of this Act;

(c) the procedure to be followed and the forms to be adopted in proceedings under this Act;

(d) the intervals at which and the manner in which, the tax under this Act shall be payable;

(e) the dates by which and the authority to whom returns shall be furnished;

(f) the manner in which refunds shall be made;

(g) the fees, if any, for petitions, certificates and other matters;

(h) the nature of accounts to be maintained by a dealer or transporter and

(i) for any other matter necessary for giving effect to the purpose of this Act.

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(3) Every rule made by the Government under this Act shall be laid as soon as may be after it is made, before the Legislative Assembly which may be comprised in one session or in two or more successive sessions and if, before the expiry of the session in which it is so laid of the successive session aforesaid, the Legislative Assembly agree in making any modification in the rule or the Legislative Assembly 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, so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

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CHAPTER-XIV

TRANSITION, REPEAL AND SAVINGS

88. Transition :-

(1) A registered dealer is entitled to input tax credit in respect of any goods held as stock as on the date of commencement of this Act -

(a) on the amount of tax actually paid on the purchase of goods held as stock if it is ascertainable from the records of the dealer or,

(b) in other cases, on the amount of tax calculated at the rate to which the goods are subjected to tax under the repealed Act on the estimated taxable turnover of such goods.

(2) Input tax credit as provided under sub-section (1) shall be allowed as an when sale of such goods takes place after the commencement of this Act:

Provided that the Commissioner may, by notification in the Official Gazette, freeze input tax credit for the period as may be specified in the said notification.

(3) Any registered dealer who claims input tax credit under the provisions of this section shall file statement of such claim within thirty days from the commencement of this Act, furnishing therein such details as may be prescribed along with an inventory of such stock.

(4) A registered dealer who would have continued to be so liable to pay tax under the repealed Act had this Act not come into force, shall be deemed to be a registered dealer under this Act.

(5) Notwithstanding anything contained elsewhere in this Act-

(a) Any person appointed as the Commissioner, Joint Commissioner or Assistant Commissioner, or any person appointed to assist the Commissioner, under the repealed Act and continuing in the office immediately before the appointed day, shall, on and from the appointed day, be deemed to have been appointed under this Act and shall continue in office as such till such person ceases to be the Commissioner, Joint Commissioner or

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Assistant Commissioner or ceases to be the person appointed to assist the Commissioner.

(b) Any dealer liable to furnish return under the repealed Act immediately before the appointed day shall notwithstanding that a period, in respect of which is so liable to furnish return, commences on any day before such appointment day and ends on any day after such appointed day, furnish such return in respect of tax payable for sales or purchases made up to the day immediately before such appointed day and pay tax in accordance with the provisions of repealed Act and shall furnish a separate return in respect of the remaining part of the period which commences on such appointed day and pay tax due on such return for sales or purchases made on and from such appointed day in accordance with the provisions of this Act;

(c) Any order delegating any power under the repealed Act or the rules made there-under by the Commissioner to any person appointed, by any designation, to assist him before the appointed day shall, on and from such appointed day, continue in force until the Commissioner amends, varies or rescinds such order after such appointed day under this Act;

(d) Any dealer, who is no longer liable to pay tax under the repealed Act and whose account, registers or documents have been seized under that Act, shall continue to be retained in accordance with provision of that Act on or after appointed day;

(e) All forms under the repealed Act or the rules made there under and continuing in the force on the day immediately before the appointed day shall, with effect from such appointed day, continue in force and shall be used mutatis mutandis for the purpose for which they were being used before such appointed day until the Government directs, by notification, the discontinuance of the use of such forms till such time as the Government may, by notification, specify in this behalf;

(f) All rules, regulations, notifications or orders made or issued under any of the repealed Act and continuing in force on the day immediately before the appointed day shall continue to be

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in force on or after such appointed day in so far as they are not inconsistent with the provisions of this Act or the rules made thereunder until they are repealed or amended;

(g) Any form obtained or obtainable by the dealer from any prescribed authority or any declaration furnished or to be furnished by or to the dealer under any of the Acts so repealed or the rules made thereunder in respect of any sale of goods before the appointed day shall be valid where such form is obtained or such form is furnished on or after such appointed day,

(h) Any application for revision, review or reference arising from any order passed before the appointed day or any appeal arising from any assessment of tax or determination of interest made before such appointed day or any application for refund, or for form, in respect of any period before such appointed day, under the repealed Act if made on or before such appointed day and pending on such appointed day, shall be disposed of in accordance with the provisions of the repealed Act;

(i) The Commissioner or any other authority to whom power in this behalf has been delegated by the Commissioner under the repealed Act may on his own motion, review or revise any order passed before the appointed day in accordance with the provision of that Act;

(j) Any application for the form, for the transport of the goods into the state, pending on the day immediately before the appointed day, shall be deemed to have been made under this Act and shall be disposed of in accordance with the provisions of this Act;

(k) Any tax assessed, interest determined or penalty imposed under the repealed Act in respect of sales or purchase made, or the repealed Act before the appointed day, shall be payable or recoverable in accordance 4 with the provisions of the repealed Act;

(6) Where a registered dealer was enjoying the benefits of reimbursement of tax under the repealed Act immediately before the appointed day and who would have continued to be so eligible on

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such appointed day under that Act had this Act not come into force, may be allowed reimbursement of tax by him under this Act by the Commissioner, for the un-expired period.

89. Repeal and Savings :-

(1) The Tripura Sales Tax Act, 1976 (Act.No.ll of 1976), and the Tripura Additional Sales Tax Act 1990 (Act 6 of 1990) (hereinafter referred as the repealed Acts) as in force in the State of Tripura are hereby repealed from the date of commencement of this Act. Provided that such repeal shall not affect the previous operation of the said Acts or any right, title, obligation or liability already acquired, accrued or incurred thereunder and subject there to, anything done or any action taken including any appointment, notification, notice, order, rule, form, regulation, certificate, license or permit in exercise of any power conferred by or under the said Acts, shall be valid and always be deemed to have been valid, during the period that Act was in force notwithstanding the repeal of the Act.

(1) A. The Tripura purchase Tax Act 1990 (Act no.9 of 1990) (here in after referred as repealed Act) as in force in the State of Tripura is hereby repealed.

Provided that such repeal shall not affect the previous operation of the said Act or any right, title, obligation or liability already acquired, accrued or incurred thereunder and subject there to, anything done or any action taken including any appointment, notification, notice, order, rule form, regulation, certificate, license or permit in exercise of any power conferred by or under the said Act, shall be valid and always be deemed to have been valid, during the period that Act was in force notwithstanding the repeal of the Act.¹

(2) Notwithstanding the Repeal of the Acts. -

(a) any action or proceedings already initiated under these Acts shall validly be continued under the provisions of this Act which relates to the period prior to the coming into force of this Act.

(b) any person liable to pay any tax, fee, penalty, interest or other amount under that Act for any period before coming into force

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of this Act, shall be levied, assessed and collected under the provisions of this Act as if this Act were in force during the period.

(3) All arrears of tax, interest, penalty, fee or other amount due at the commencement of this Act, whether assessed or levied before such commencement or assessed or levied after such commencement, may be recovered as if such tax, penalty, interest, fee or other amount is assessed or levied under the provisions of this Act and all methods of recovery including levy of interest, penalty or prosecution provided under this Act, shall apply to such arrears as if such amounts are assessed, levied and demanded under under this Act.

(4) Notwithstanding anything contained in sub-section (1), any application, appeal, revision or other proceedings made or preferred to any authority under the said Act, and pending at the commencement of this Act, shall, after such commencement, be transferred to and disposed of by the officer or authority who would have had jurisdiction to entertain such application, appeal, revision or other proceedings under this Act as if it had been in force on the date on which such application, appeal, revision or other proceedings was made or preferred.

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SCHEDULE - I List of International Public Organisations

SCHEDULE -II (a)

1 List of goods taxable at the rate of 5%

1 Enhanced the rate of Tax vide Notification dated 04-05-2011 (w.e.f 04-05-2011).

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1 Deleted vide Notification dated 09-10-2007 (w. e. f. 17-07-2007) and shifted to entry no. 106 of schedule II(b).

2 Deleted vide Notification dated 04-05-2011 (w. e. f. 04-05-2011) and shifted to entry no. 22 of schedule II(b).

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1 Inserted vide Notification dated 09-10-2007 (w. e. f. 17-07-2007)

2 Deleted vide Notification dated 09-10-2007 (w. e. f. 17-07-2007) and shifted to entry no. 114 of schedule II(b).

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1. Inserted vide Notification dated 09-10-2007 (w. e. f. 17-07-2007)

2. Inserted the item Liquified Petroleum Gas for domestic use vide Notification dated 09-10-2007 (w. e. f. 17-07-2007) and subsequently deleted the same and shifted to entry No. 1 of schedule II (c) (i) vide Notification w. e. f. 28-07-2008.

3. Deleted the item Electrodes, vide Notification dated 09-10-2007 (w. e. f. 17-07-2007) and shifted to entry no. 190 of schedule II (b).

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1 Deleted the item Handloom Machinery and parts & accessories there of vide Notification dated 09-10-2007 (w. e. f. 17-07-2007) and shifted to entry no. 106 of schedule II (b) in Sl. No. xi.

2 Deleted and shifted to entry no. 141 of schedule II (b) vide Notification dated 09-10-2007 (w. e. f. 17-07-2007)

3 Deleted the item Kerosene Oil sold through PDS vide Notification dated 09-10-2007 (w. e. f. 17-07- 2007) and shifted in schedule III after Sl. No. 47.

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90

1. Inserted the items Greetings cards, invitation cards and visitors cards (both blank & printied) humour card, picture card, picture posts cards vide notification dated 09-10-2007 (w. e. f. 17-07- 2007), subsequently deleted & shifted in Sl. No. 136 of schedule II (b)vide notification, dated 04- 05-2011 (w.e.f. 04-05-2011).

2 Deleted the items Pens of all kinds including refills and shifted in Sl. No. 130 of schedule II (b)vide notification dated 04-05-2011 (w.e.f. 04-05-2011).

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1 Deleted vide Notification dated 09-10-2007 (w. e. f. 17-07-2007) and shifted in Sl. No. 4 of new schedule VIII.

2 Substituted vide Notification dated 04-05-2011(w.e.f. 04-05-2011).

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Schedule II (b) List of goods taxable @ 13.5%¹

93

1 Inserted vide Notification dated 04-05-2011 (w.e.f. 04-05-2011).

94

95

96

97

98

99

100

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1 Deleted vide Notification dated 09-10-2007 (w. e. f. 17-07-2007) and the item Liquified Petroleum Gas for domestic use and shifted in schedule II (a) at Sl. No. 35

2 Inserted the words 'other than for domestic use' vide Notification dated 09-10-2007 (w. e. f. 17-07-

2007)

3 Inserted the items at (x) and (xi) vide Notification dated 09-10-2007 (w. e. f. 17-07-2007)

102

1 Inserted vide Notification dated 09-10-2007 (w. e. f. 17-07-2007)

103

1. Inserted vide Notification dated 04-05-2011 (w.e.f. 04-05-2011)

104

1 Inserted vide Notification dated 04-05-2011 (w.e.f. 04-05-2011)

105

1. Inserted vide Notification dated 09-10-2007 (w. e. f. 17-07-2007)

106

107

1 Inserted vide Notification dated 04-05-2011 (w.e.f. 04-05-2011)

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109

1. Inserted vide Notification dated 09-10-2007 (w. e. f. 17-07-2007)

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Schedule II (c) List of goods taxable @ 2%¹

[ Schedule II (c) (i) List of goods taxable @ 1.5%

Schedule II (d) List of goods which are to be kept outside VAT and taxable at the first point of sale within Tripura at such rates as may be specified by the Government from time to time by notification in the Official Gazette.

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Schedule III Exempted goods

1. Inserted vide Notification dated 09-10-2007 (w. e. f. 17-07-2007)

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1 Inserted vide Notification dated 09-10-2007 (w. e. f. 17-07-2007) 2, 3 Renumbered and inserted vide Notification dated 09-10-2007 (w. e. f. 17-07-2007)

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1 Renumbered vide Notification dated 09-10-2007 (w. e. f. 17-07-2007)

2 Inserted vide Notification dated 28-07-2008 (w.e.f. 28-07-2008)

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Schedule IV Negative list of items of capital goods for input tax credit

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Schedule V Tax Invoices, Credit Notes and Debit Notes.

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117

Schedule VI List of goods taxable @ 5%¹

List of Industrial inputs

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119

120

121

122

123

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Schedule VII

1

List of goods taxable @ 5% List of I.T Products

1 Inserted vide Notification dated 09-10-2007 (w. e. f. 17-07-2007) and also enhanced rate of tax w.e.f. 04-05-2011.

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1

Schedule VIII

List of goods taxable @ 5%

1 Inserted vide Notification dated 09-10-2007 (w. e. f. 17-07-2007) and also enhanced rate of tax w.e.f. 07-09-2011.

2 The payment of VAT on the sale of the item at Sl. No.3 has bee exempted w.e.f. 24-01-2009 vide Notification No. F. 1-4 (1)/TAX/2005 dated 24-01-2009.

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128

THE TRIPURA VALUE ADDED TAX

RULES, 2005

(As Amended up to 7^th September, 2011)

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130

GOVERNMENT OF TRIPURA

FINANCE DEPARTMENT

NO.F.1-1(43)-TAX/2005 Dated, Agartala the 27^th day of April,2005

NOTIFICATION

In exercise of the powers conferred by section 87 of the Tripura Value Added Tax ACT, 2004(Tripura Act No. 1 of 2005), the Government hereby makes the following Rules namely:

1. Short title and commencement :

(1) These Rules may be called the Tripura Value Added Tax Rules, 2005.

(2) They shall come into force with immediate effect.

2. Definitions : In these Rules, unless there is anything repugnant in the subject or context:-

(i) "Act" means the Tripura Value Added Tax Act, 2004.

(ii) "Agent" means a person authorized, in writing by a dealer to appear or act on his behalf before the Inspector, Superintendent, Assistant Commissioner, Deputy Commissioner, Joint Commissioner, Addl. Commissioner, Commissioner or the Tripura Value Added Tax Tribunal as the case may be.

(a) a relative of the dealer, or

(b) a person regularly appointed by the dealer, or

(c) any person entitled to plead in any Court of Law under the Advocates Act,1961.

(d) a person who has been enrolled as a member of the Institute of Chartered Accountants of India, or a Cost Accountant within the meaning of the Cost and Works Accountant Act, 1959.

(iii) "Additional Commissioner" means an Additional Commissioner of Taxes referred to in Rule 8 and any person appointed as such by the State Government under section 18.

(iv) "Joint Commissioner" means a Joint Commissioner of Taxes referred to in Rule 8 and any person appointed as such by the State Government under section 18.

(v) "Deputy Commissioner" means a Deputy Commissioner of Taxes referred to in rule 8 and any person appointed as such by the State Govt under section

18.

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(vi) „„Assistant Commissioner" means an Assistant Commissioner of Taxes referred to under Rule 8 or any person appointed as such by the State Government under Section 18.

(vii) "Superintendent of Taxes" means (in respect of dealer a Superintendent of Taxes referred to in Rule 8 or) any person appointed as such by the State Government under section 18 and within whose jurisdiction the dealer"s place of business is situated or if the dealer has more than one such place, the Superintendent within whose jurisdiction the general branch or Head office in Tripura of such business is situated, or if the dealer has no place of business within the State of Tripura, the Superintendent who has been so notified by the Commissioner under Rule. 8.

(viii) "Inspector" means the Inspector of Taxes referred to in Rule 8 or any person appointed as such by the State Government under section 18.

(ix) "Officer" means an officer mentioned in Rule 8.

(x) "Form" means a form prescribed in the schedule appended to the rules or a translation thereof in any language recognized by the Constitution of India published under the authority of the Governor.

(xi) "Government Treasury" means in respect of a dealer, the treasury or Sub- treasury or head office, main office, branch or branches of any bank in Tripura as may be authorized by the State Government of the area where the dealer has a place of business or, if he has more than one such place where his chief branch or Head office in Tripura is situated.

(xii) "Place of business" means any place where a dealer sells and purchases¹ any goods or keeps accounts of sales and purchases²(and includes warehouse and factory).

(xiii) "Return period" means the period for which the returns are to be furnished by a dealer.

(xiv) "Rule" means a rule made under Tripura Value Added Tax Rules, 2005.

(xv) "Section" means a section of the Act.

(xvi) "Warehouse" means any enclosure, building or vessel in which the dealer keeps his stock of taxable goods for sale sale and purchase³ Provided any expression used in these rules, which is not defined, but defined in the Act shall have the same meaning as in the Act.

1, 2, 3 Substituted vide the TVAT (First Amendment) Rules, 2011 (w.e.f. 17-08-2011).

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3. (a) (i) Every dealer shall be required to pay tax under Tripura Value Added Tax Act on the sale and purchase¹value of taxable goods at every stage of sale and purchase²of those goods till the sale and purchase³ to consumer, at the rate specified in the schedule of the Tripura Value Added Tax Act, 2004 other than the dealers whose taxable turnovers during a period of 12 months immediately preceding the commencement of the Act do not exceed Rs.3.00 lacs.

Provided no deduction would be allowed for expenses in arriving at the sale and purchase⁴price (base price) upon which Tripura Value Added Tax is calculated. However, to compute the tax base the price would be exclusive of Tripura Value Added Tax, provided expenditure in relation to sale and purchase⁵such as freight, insurance etc. incurred by the selling dealer shall be included in arriving at the taxable sale and purchase⁶price. On the other hand, where seller has merely incurred expenditure as an agent on behalf of his purchaser who subsequently re-imburse him, these reimbursement are not deductable. The treatment of delivery charges will depend on the time at which titles to the goods passes. Delivery charge will be included in the taxable sale and purchase⁷value wherein it is charged before passing the title of the goods to the purchaser.

(ii) Every dealer other than the dealer under sub-section (2) and (3) of section 4 of the Act to whom sub-section (1) of section 3 of the Act does not apply shall be liable to pay tax under this Act in respect of sales or supplies or purchases⁸of goods effected by him in Tripura w.e.f the date on which his turnover in a year first exceeds the limit specified in Subsection (I) of Section 3 but for the purpose of assessment of the tax for that year, his entire turnover shall be taken into consideration.

(b) Under this Act tax would be charged on all transactions of sales which include transfer of property in goods involved in execution of works contract and transfer of right to use any goods. However, in case of zero rated goods such as exports, the tax on inputs is refundable.

Provided that input tax credit shall be allowed by the concerned assessing authority only. In determining the turnover for transfer of goods involved in 1- 7 Substituted vide the TVAT (First Amendment) Rules, 2011 (w.e.f. 17-08-2011).

8 Substituted vide the TVAT (First Amendment) Rules, 2011 (w.e.f. 17-08 -2011).

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the execution of works contract, the amounts specified below shall be excluded,

(c) The amounts representing the purchase price of such goods involved in the execution of such works contract, as are exempt from tax under section 5 of the Act.

(d) The amounts representing the value of such goods, involved in the execution of such works contract as were supplied to the contractor by the contractee himself, provided the property in such goods remains under the terms of the contract throughout with the contractee and the contractor is bound to return the unused goods to the contractee. Provided no value of such goods is realised or realiseable in any way by the contractee from the contractor.

Explanation :- For the purpose of this rule, „Contractual transfer price of goods" means the amounts which have been received or receivable by a dealer for transfer of property in goods.

4. Section 10 of the Tripura Value Added Tax Act provides inputs tax credit. Taxes paid on inputs used for producing taxable goods or purchases are deductible from the tax payable on the taxable sales whether the inputs or purchases are used only partly for production or sale of taxable goods, credit would be given for a fraction of input tax equal to the proportion of the taxable sales to total sales. Provided credit for input tax may be enjoyed under the following circumstances:-

(1) Purchasers and sellers shall be registered under the Tripura Value Added Tax Act, 2004;

(2 Tax credit should be provided for production input and goods for sale;

(3) In case of production, tax credit may be allowed for not only raw materials and components, but also for plant, machinery and equipments, provided purchases of such plant, machinery and equipment could be made eligible for input tax credit if these are acquired for use exclusively for taxable production, manufacturing or processing activities. Provided further that no input tax credit will be allowed for office equipment and building materials for use in residential or commercial construction. Though materials for factory construction may be eligible for tax credit. Tax credit will be denied for transportation of equipments and supplies (as transportation services are exempt from the tax).

(4) Manufacturers and producers (including mining companies) are eligible to claim tax credit for the tax paid on virtually all of the materials used in their production or manufacturing processes. This would include raw materials, component, parts, packaging materials, consumables, chemicals, additives, lubricants and explosives but would not include motor fuels (petroleum and

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diesels but not furnace fuel) and coal and coke. (5 Goods brought from outside the State shall not be entitled to get input tax credit in respect of tax paid in the other State.

(6) Subject to sub-section (4) of Section 10 an input tax credit allowed under this section can not be claimed by a dealer in a tax period unless the dealer has an original tax invoice for the taxable supply.

Provided that the dealers dealing in items as mentioned in Schedule - VIII shall be eligible for Input Tax Credit subject to the condition that the dealer shall produce original purchase voucher in form - XLI.¹

(7) Where a dealer does not have an original tax invoice / purchase voucher² evidencing the input tax paid, the Commissioner may allow an input tax credit in the tax period in which the credit arises, where the Commissioner is satisfied:-

(a) that the dealer took all reasonable steps to obtain a tax invoice/ purchase voucher³: and

(b) that the failure to obtain a tax invoice purchase voucher⁴was not due to any fault of the dealer, and

(c) that the amount of input tax claimed by the taxable person is correct. Provided that the dealer shall give affidavit showing the reason of failure to obtain the tax invoice or purchase voucher⁵disclose the details particulars of seller. If the Commissioner is satisfied that non-issuance of tax invoice/ purchase voucher⁶is intentional and deliberate, the Commissioner may take penal action against the selling or purchasing dealer⁷as per provision.

(8) No person shall be entitled for input tax credit on capital goods if such person is the second or subsequent purchaser of capital goods.

(9) No person shall be entitled to input tax credit on the stock of goods remaining unsold at the time of discontinuance or closure of his business.

5. Registered dealers are eligible to claim input tax credit only to the extent the tax was actually paid on the purchase and the payment must be evidenced by a valid tax invoice from the supplier/seller.

When total tax paid on input purchased in any period exceeds the total tax collected on sales, the excess credit is to be carried forward to future periods. But excess

1 Inserted vide the TVAT (First Amendment) Rules, 2011 (w.e.f. 17-08-2011). 2,3,4,5,6,7 Substituted vide the TVAT (First Amendment) Rules, 2011 (w.e.f. 17-08-2011).

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Credit related to exporters shall be refunded under tax invoice system,

6. Input Tax credit :-

(1) For the purposes of calculating the net tax payable by a registered person for a tax period, an input tax credit as determined under sub-section (5) of section 10 shall be allowed to the registered person for the tax payable in respect of purchase of taxable commodities as mentioned in Schedule-VIII and sale¹ of all taxable commodities other than the commodities mentioned in Schedule II (d) of the Act or any other goods which the State Government may notify from time to time.

(2) For the purpose of calculating the net tax payable by a registered person for his first tax period after becoming registered, an input tax credit as determined under sub-section (5) of section 10 shall be allowed to the registered person for the tax payable in respect of :-

(a) all taxable sale of goods (excluding capital goods) made to the person prior to the person becoming registered, or

(b) Purchase of goods made by the person prior to becoming registered. Provided that the purchase was for use in the business of the dealer, and the sale or purchase occurred not more than three months prior to becoming liable to pay tax and the goods are in stock at the date of registration.

(c) The particulars of goods in stock purchased not more than three months before the dealer is liable to pay tax shall be in Form XXXII.

(3) The tax invoice or purchase voucher²against which tax credit is claimed or the certificate granted by the Commissioner for exemption thereof, as the case may be, shall be furnished by a dealer before the concerned Assessing Authority at the time of hearing for assessment under section 29 or section 30 or section 31 and or auditing authority at the time of auditing under section 28 by such authority, as the case may be.

(4) Inadmissibility of invoice or purchase voucher³for input tax credit in certain cases :- Any claim by a dealer for input tax credit shall not be admissible if he accepts from any dealer or person invoice or invoices -

(a) which has not been duly obtained from a registered dealer against a bonafide transaction;

1, 2, 3 Substituted vide the TVAT (First Amendment) Rules, 2011 (w.e.f. 17-08-2011).

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(b) which has not been issued in accordance with the prescribed format in original giving full particulars therein;

(c) which has been issued by a dealer whose certificate of registration has been cancelled under sub-section (7) of section 19 or suspended under sub-section (8) of section 19 of the Act and the invoice/ invoices have been issued during the period under such suspension or after cancellation.

(d) which does not show the amount of tax charged separately.

(5) Exemption from furnishing invoices or purchase vouchers¹reported loss of invoices or purchase vouchers²due to thefts, or destruction by fire or by natural calamity;

(i) Where on account of loss of any invoice or purchase voucher³due to theft or destruction by fire or by natural calamity, a dealer is not in a position to substantiate his claim in terms of clause (vi) of sub-section

(6) of section 10, and where he claims an order of the Commissioner to exempt him from furnishing such invoices or purchase vouchers⁴, such dealer may, ordinarily within three months from the date of theft, fire, natural calamity as the case may be, make an application in writing to the Commissioner requesting him to pass an order in this matter.

(ii) In his application to the Commissioner under clause (i) of this sub-rule the dealer shall furnish, interalia, the following particulars:-

(a) the year comprising period or periods to which the claim relates;

(b) the nature of claim covered by the invoices or purchase vouchers⁵specifying the relevant provision of the Act;

(c) name of the selling dealer and his registration certificate under the Act;

(d) amount of the claim for each period under each provision of the Act for which invoices or purchase vouchers⁶are claimed to have been lost,

(e) particulars of first information report, if any, lodge with local Police Station or any report of Fire Service Station or any other authority;

(f) extent of damage caused by fire or natural calamity or theft on the basis of certificate from the Authorities concerned;

(g) any other evidence that the dealer wishes to adduce. 1-6 Substituted vide the TVAT (First Amendment) Rules, 2011 (w.e.f. 17-08-2011).

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(iii) The Commissioner may, on the application made by a dealer under clause (1) of sub-rule (5) of Rule 6 may cause such enquiries as he considers necessary or call for any evidence from the dealer or any other person or authorities which may be deemed necessary for disposal of such application.

(iv) Where the Commissioner is satisfied that the dealer is not in a position to furnish all or any of the tax invoices or purchase vouchers¹on account of loss of such evidences due to fire or any natural calamity or theft beyond the control of such dealer the Commissioner may, by an order in writing exempts Such dealer from furnishing such taxinvoice or purchase voucher²subject to conditions, if any, as he may specify in the said order.

Provided that the Commissioner may refuse to exempt any dealer from furnishing invoices or purchase vouchers³where the dealer is found to have not furnished return relating to relevant period of claims under sub-section (1) of section 24.

(6) (i) Tax Invoice as referred to in section 50 shall be in Form XXIX.

(ii) Credit note referred to in section 17(1) shall be in Form XXX.

(iii) Debit note referred to in section 17(2) shall be in Form XXXI.

(iv) The purchase vouchers referred to in sub-section (2) of Section 50A shall be in Form-XLI.⁴

(7) Every dealer claiming input tax credit under sub-section (5) of section 10 shall submit along with return a statement of purchase in Form XXXVII and a statement of sales in Form XXXVIII.

(8) (1) A registered dealer eligible to pay a lump sum in lieu of tax by way of composition may opt for such composition and give his option in form XXXIX to the appropriate Superintendent of Taxes within the period specified in section 15.

(2) The lump sum payable by a registered dealer will be fixed at such percentage of his entire taxable turnover of goods as the Government may by order notify for every quarter of the year for which the option has been given. Such lumpsum shall be paid by chalan in form XVIII within fifteen days, of the expiry of the quarter. A copy of chalan in 1-3 Substituted vide the TVAT (First Amendment) Rules, 2011 (w.e.f. 17-08-2011).

4 Inserted vide the TVAT (First Amendment) Rules, 2011 (w.e.f. 17-08-2011).

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proof of such payment shall be sent to the appropriate Superintendent of Taxes within seven days of such payment.

7. (1) Every person responsible for making payment to any person (here-in-after in this rule referred to as the contractor) for discharge of any liability on account of valuable consideration payable for the transfer of property in goods (whether in goods or in any other form) in pursuance of the works contract shall at the time of making such payment to the contractor either in cash or in any manner, deduct VAT at the rate as notified by the Government from time to time¹of the gross amount of the bill towards tax payable in respect of all types of works under section 4(3) of the Act on account of such works contract provided that till the Government notify the rate, the prevailing rate shall continue²

(2) Every person responsible for making payment to any person for discharge of any liability on account of valuable consideration payable for any transfer of the right to use any goods other than the goods in exempted list of the Act for any purpose (whether or not for a specified period) for cash or in any manner, shall at the time of making such payment deduct an amount at the rate as notified by the Government from time to time³of the payment on account of such transfer of right : provided that till the Government notify the rate, the prevailing rate shall continue⁴:

Provided no such deduction shall be made from the bill (s) or invoice (s) of the transferer where the amounts received as penalty for defaults in payment or as damages for any loss or damage caused to the goods by the person to whom such transfer was made, and

(3) The amount deducted under Sub-rules (l) and (2) shall be deposited into the Government Treasury by challan in Form XVIII by the person making such deduction within 7 day of the month following that in which the deduction is made.

(4) The person making such deduction under sub-rule (l) and (2) shall, at the time of payment or discharge, furnish to the person from whose bill(s) and invoice(s) such deduction is made, a certificate in Form XI specifying the amount deducted and the rate(s) at which it has been deducted.

(5) A copy of the challan showing the deposit of the amount referred to in sub- rule (3) shall be made over by the person making the deduction to the person 1, 3 Substituted vide the TVAT (First Amendment) Rules, 2011 (w.e.f. 17-08-2011). 2, 4 Added vide the TVAT (First Amendment) Rules, 2011 (w.e.f. 17-08-2011).

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from whom the deduction is made within 7(seven) days of such deposit.

(6) The person making such deduction shall furnish to the Superintendent of Taxes, having jurisdiction over the area, a report of such deduction within 15(fifteen) days from the date of deposit of such amount in Form XI.

(7) The person from whose bill (s) or invoice (s) the deduction was made shall furnish the returns along with the challan to the Superintendent of Taxes having jurisdiction over the area, in accordance with the provisions of the Rules.

(8) All such deductions and deposits into the Government Treasury shall be deemed to be provisional payment of tax which shall be adjusted at the time of assessment under section 29 or 30 or 31 of the Act as the case may be.

(9) Any deduction made in accordance with the provisions of this rule and credited into the Government Treasury shall be treated as a payment of tax on behalf of the person from whose bill(s) or invoice(s) the deduction has been made and credit shall be given to him for the amount so deducted as per deposit challan submitted to the Superintendent it of Taxes along with the returns in the assessment made for the assessment year.

(10) If any person as is referred to in sub-rule (1) and (2) of this Rule fails to make deduction or after deducting, fails to deposit the amount so deducted as required by sub-rule (3) the Superintendent of Taxes may after giving such person opportunity of being heard, by order in writing, direct that such person shall pay, by way of penalty a sum not exceeding one and a half times the amount not so deducted and / or deposited into the Government Treasury.

(11) Without prejudice to the provisions of sub-rule (10), if any such person fails to make the deduction or, after deducting fails to deposit the amount so deducted, he shall be liable to pay simple interest at the rates contained in section 44 of the Act, on the amount so deducted, and / or deposited from the date on which such amount was deductible to the date on which the amount is actually deposited.

(12) Where the amount has not been deposited after deduction, such amount together with interest and penalty, if any, shall be recoverable from the person in default as an arrear of land revenue as per provision of sub-section (6) of section 37 of the Act.

8. (1) There shall be the following authorities to assist the Commissioner :-

(i) Additional Commissioner of Taxes,

(ii) Joint Commissioner of Taxes,

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(iii) Deputy Commissioner of Taxes,

(iv) Assisstant Commissioner of Taxes.

(v) Superintendent of Taxes,

(vi) Inspector of Taxes.

(vii) Any other person appointed as such by the State Government.

(2) Subject to the provisions of the Act and the Rules made there under, the Commissioner, may, by notification in the official Gazettee, delegate the powers to be exercised by above classes of officers and shall specify the area of the person in respect of which powers are to be exercised by each of the above class of officers.

Provided that the power of revision conferred upon the Commissioner under Section 70 of the Act shall not be delegated.

9. TRIBUNAL :

(1) A member of the Tribunal shall be :-

(a) A person who has for a period of 10 years held a Civil Judicial Post or a serving member of the Tripura Judicial Service (not below Grade 1) who has served as an Addll. District Judge or a District Judge for at least one year.

(b) An officer of the Finance Department not below the rank of Secretary to the Government of Tripura.

(c) A person who has for at least 7 years been practicing as a Chartered Accountant under the Chartered Accountant Act, 1949, or as a Registered Accountant under any Law formerly in force or who is or has been a member of the Indian Audit & Accounts service or Audit and Accounts Service of any State.

(d) A person who is or has been a member of the Indian Administrative Service and has held a post, not below the rank of Secretary under the Government of Tripura or any other State Government,

(2) The members of the Tribunal shall ordinarily hold office for a period of three years from the date of their appointment, and the terms and conditions of their service shall be such as may be determined by the State Government from time to time.

Provided that the State Government may from time to time renew the period of appointment of any of the members for such period as it may think fit.

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10. REGISTRATION OF DEALER :

An application for registration under section 19 shall be in Form I and it shall be addressed to the Superintendent of Taxes.

(1) An application for registration shall be signed and verified in the case of:-

(i) individual, by the proprietor of the business.

(ii) an association of persons, by an adult member of the association.

(iii) a firm, by the managing partner or an adult member of the firm.

(iv) a Hindu undivided or joint family, by the Manager or Karta or any adult member of the family.

(v) a company, by the Managing Director or the Secretary or Manager or the Principal or Chief Executive Officer of the Company in India.

(vi) any Government Department, by the head of the Office.

(2) The person making an application for registration shall specify the capacity in which the application is made, signed and verified.

Provided that for the purpose of making an application, a Warehouse where no accounts of sales are kept shall not be deemed to be a place of business.

11. In the application form referred to in Rule 10, a dealer shall state interalia -

(i) the nature of the business in broad but sufficiently clearterms and mention whether he manufactures, processes, imports, wholesells, distributes or retails taxable goods or if he carries out more than one of these functions, he shall state precisely the combination of the functions carried out;

(ii) the nature of the business namely whether it relates to importing from outside Tripura but within India or importing from outside of India, manufacturing, wholesale distribution, retail sale, supply of food or drink, transfer of property in taxable goods in execution of works contract, transfer of right to use any taxable goods;

(iii) the class or classes of taxable goods that a dealer purchases or intends to purchase for resale by him in Tripura;

(iv) the class or classes of goods, that a dealer purchases or intends to purchase for use by him directly in the manufacture of taxable goods, including containers or packing materials, in Tripura for sale by him in Tripura;

(v) status of occupancy of the applicant in relation to the place of business namely, whether the place of business is owned, rented, leased or provided free of rent by the owner or lessee;

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(vi) the application in Form I shall be accompanied by a declaration affixing one copy of passport size photograph of the proprietor or partner or the Karta of a Hindu Undivided family as the case may be duly attested by the witness attesting the signature of the proprietor or the partner or the Karta in the space provided in Form I, and the said declaration shall be duly signed by the person who has signed the application in Form I.

(vii) the application in Form I shall be accompanied by a declaration affixing one copy of passport size photograph, of managing director, director or principal of a company, or in case of Govt. of Head of Department or, in the case of any other association of persons, of the President, Secretary, or the Principal Officer of such association, and the said declaration shall be duly signed by the person who has signed the application in Form I.

(viii) whether he imports any taxable goods from outside the state but within the territory of India or from outside the territory or from both sources;

(ix) whether he purchases any taxable goods from places within Tripura; (x) the language in which he keeps his accounts;

(xi) where the applicant is not a company incorporated under the Companies Act, 1956, or under any other law, the name and addresses of the proprietor of the business or the names and addresses of the partners of the firm or the names and addresses of the persons having any interest in the business (as in the case of a Hindu Undivided family business), together with age, father"s name and permanent home address of each such proprietor, partner or other persons;

(xii) particulars of every business, if any, in Tripura or elsewhere in India outside Tripura in which the proprietor, the partners or other persons, as the case may be, as mentioned in clause (v), has or have any interest;

(xiii) particulars of any registration certificate issued by the Registrar of Companies, Shillong or by any other registering authority in India in respect of such business;

(xiv) taxable turnover of sales, taxable turnover of purchases of goods or contractual transfer price of goods involved in execution of works contract, for the preceding year, if any and for the current year up to a date not earlier than thirty days from the date of such application;

(xv) particulars of the certificate issued by the municipality or other authority if any, in respect of business and the date of issue and last renewal thereof

(xvi) particulars of Income Tax Permanent Account Number (PAN) or the evidence that it has been applied for.

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12. CERTIFICATE OF REGISTRATION :

(1) The registration certificate shall be issued in Form II and shall specify the following, amongst other particulars, namely :-

(a) the location of the business and / or any branch of the business; and

(b) the nature of the business.

(c) the class or classes of taxable goods that a dealer purchases or intends to purchase for resale by him in Tripura.

(d) the class or classes of goods, that a dealer purchases or intends to purchase for use by him directly in the manufacture of taxable goods, including containers or other packing materials in Tripura for sale by him in Tripura.

(e) the date w.e.f which the certificate of registration is granted.

(2) (i) Each certificate shall bear a number and distinctive registration mark. The distinctive registration mark to be entered on a certificate shall be such as may be assigned by the Commissioner for each local area.

(ii) a certificate shall be issued for each place of business and it shall be kept at the place of business to which it relates.

(3) The Superintendent of Taxes shall keep Form -I affixing photograph referred to sub-rule (vi) & (vii) of Rule 11, with the copy of certificate of registration for official record.

(4) The security or additional security to be furnished by the registered dealer under section 20 or by registered Transporter under section 22 shall be determined by the Commissioner on the basis of nature of business, capital investment & taxable turnover etc. and shall be furnished either -

(i) by challan in Form XVIII in favour of the concerned Superintendent of Taxes or

(ii) by depositing the amount fixed by the Commissioner as security in a Nationalised Bank or

(iii) by furnishing with the said officer a guarantee from a Nationalised Bank agreeing to pay the State Government on demand the amount of security fixed by the Commissioner or

(iv) by furnishing National savings Certificate or Kishan Vikash Patra. The Security furnished may, in the event of default of payment of any tax, penalty or other dues, be adjusted towards such tax, penalty or other dues.

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(5) Any registered dealer may obtain on payment of the fee referred to in rule 59, a duplicate copy of any certificate which has been issued to him and which may have been lost, destroyed or defaced.

(6) When a registered dealer applies for cancellation or amendment of his certificate of registration, he shall submit the original certificate along with his application to the Superintendent of Taxes.

(7) When a registered dealer furnishes any information as required by section 19, he shall send, along with his application, the certificate of registration to the Superintendent for amendment, cancellation or replacement as the case may be.

(8) Register of Certificate of Registration issued to the dealer shall be maintained by the Superintendent of Taxes in Form-III.

13. (1) Every registered dealer shall keep and display the registration certificate at the place of business and the place of branch business to which it is issued.

(2) If any registered dealer fails to comply with the provision of sub-rule (1), he shall be punishable with a penalty not exceeding rupees one hundred for each day of defaults.

14. Treatment and replacement of registration certificate issued earlier under the Tripura Sales Tax Act, 1976 or The Tripura Purchase Tax Act, 1990.¹

(1) For the purpose of issue of a fresh certificate of registration, the concerned Superintendent of Taxes shall, on receipt of application for registration in Form -I from a person deemed to be registered under section 19 of the Tripura Value Added Tax Act, issue a fresh certificate, in replacement of such certificate of registration under the Tripura Sales Tax Act, 1976. Subject to issue of such certificate of registration, such person continues to be liable under the Tripura Value Added Tax Act, 2004. Such certificate shall be issued ordinarily within thirty days from the date of receipt of such application except in a case covered by sub-rule (2).

(2) If any registered dealer under the Tripura Sales Tax Act or The Tripura Purchase Tax Act, 1990²deemed to be registered under sub-rule (1) has undergone any change, such dealer shall furnish the particulars in the application in Form -I to the Superintendent of Taxes together with all the certificates of registration in replacement of which a fresh certificate of registration is required to be issued.

1, 2 Added vide the TVAT (First Amendment) Rules, 2011 (w.e.f. 17-08-2011).

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(3) If the Superintendent of Taxes is satisfied that the contents of application made under sub-rule (2) are correct, he shall issue a certificate of registration to such dealer ordinarily within thirty days from the date of receipt of such application.

(4) Cancellation of registration, suspension of registration:-

(a) When the Superintendent of Taxes is satisfied that the taxable turnover of sales of any dealer registered under section 19, for three consecutive years, fails to exceed the taxable limit, he shall cancel the registration of the dealer under sub-section (11) of Section 19.

Provided that where the Superintendent of Taxes does not cancel the „ certificate of registration on the application of a dealer on or before the last date of the period two years immediately following the three consecutive years during which his taxable turnover of sales failed to exceed the taxable limit, such certificate shall stand cancelled with effect from the first day of the year immediately following the period of two years referred to above.

Provided further that the provisions of clause (a) of this sub-rule shall not be applicable in case of dealers dealing in the items under schedule-VIII.¹

(b) If the Superintendent of Taxes is satisfied that the dealer is not liable to pay tax under section 3 he shall, on application made by such dealer under sub-rule (1), cancel the registration with effect from the first day of the year following the year referred to in that sub-rule. Provided that where the Superintendent of Taxes does not cancel the certificate of registration on or before the last day of the year during which the application for cancellation of the certificate is made, such certificate shall stand cancelled with effect from the first day of the following year.

(c) (i) Where a dealer has failed to pay tax, penalty or interest under the Act or has failed to furnish return referred to in sub-section

(1) of section 24, the concerned Superintendent of Taxes shall be competent to suspend certificate of registration of such dealer under sub-section (8) of section 19.

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(ii) The Superintendent of Taxes before suspending a dealer"s certificate of registration shall issue a notice on any date after the expiry of due date of payment of tax, penalty or interest or furnishing of return, referred to in sub-clause (1) giving such dealer an opportunity of being heard.

(iii) If the concerned Superintendent of Taxes is satisfied that the default in making payment or furnishing return was made by the dealer without any reasonable cause, such authority shall suspend the certificate of registration of such dealer with immediate effect.

(d) Where the certificate of registration of a dealer is suspended under sub-section (8) of section 19 for failure to pay tax, penalty or interest under the Act, the concerned Superintendent of Taxes shall, on an application made by the dealer along with the evidence of payment of such tax, penalty or interest, or furnishing of such return or returns as the case may be, restore such certificate of registration in accordance with the provision of sub-section (9) of that section.

(e) (i) Where a dealer has failed to pay tax, penalty or interest under the Act, or has failed to furnish return, the concerned Superintendent of Taxes shall be competent to cancel registration of such dealer under sub-section (6) of section 19.

(ii) Where the certificate of registration of a dealer is suspended under sub-section (8) of section 19 for failure to pay tax, penalty or interest under the Act, and continues to be so suspended even after ninety days from the date of such suspension, the concerned Superintendent of Taxes may cancel such certificate of registration after giving the dealer an opportunity of being heard.

15. Display of sign board :-

(i) Every dealer registered under this Act shall display a sign board at a conspicuous place at his place of business showing his trade name and address of place of business including premises number, floor, room No., etc., if any;

(ii) The sign board shall also show the number of certificate of registration granted under the Act;

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16. Information in respect of changes requiring amendment of certificates of registration :-

(1) When any registered dealer furnishes any information in accordance with subsection (5) of section 19 of the Act to the Superintendent of Taxes within fourteen days of the occurrence of the event along with the certificate of registration for amendment or cancellation thereof as the case may be and the concerned Superintendent of Taxes shall amend the certificate accordingly after making such inquiry as he deems fit.

(2) Every registered dealer, shall inform the following information to the concerned Superintendent of Taxes in respect of any change of his business;-

(a) Information regarding appointment of a new manager or opening a new warehouse of the business.

(b) Intention of purchasing any class or classes of goods which are not covered by the existing certificate of registration.

(c) Information in respect of intention to sale or dispose any business by the selling dealer shall be intimated to the concerned Superintendent of Taxes with following particulars :-

(i) Name and address of purchaser;

(ii) Date of sale or disposal;

(iii) No. of certificate of registration of the purchaser;

(iv) Whether purchaser has made application to the Superintendent of Taxes for amendment of the certificate of registration;

(v) An amount of tax, penalty and interest remaining unpaid by the dealer selling the business as on the date of sale or disposal of such business;

(d) Information to be furnished with respect to discontinuation of his business :-

(i) where a dealer registered under the Act discontinue his business, he shall make an application within fourteen days of such discontinuation together with certificate of registration for the cancellation thereof to the concerned Superintendent of Taxes.

(ii) If the concerned Superintendent of Taxes, after making such enquiry, as he deems fit, is satisfied that the business has been discontinued, he shall, by an order in writing cancel the certificate of registration.

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(e) Information in respect to change of name and nature of business and constitution of board of directors of company. If a registered dealer intends to change the name and nature of the business, he shall apply to the concerned Superintendent of Taxes with certificate of registration and adduce such evidence as may be necessary. The Superintendent of Taxes after making enquiry as he deems fit, is satisfied that the contents of the application are in order, he shall, by an order in writing, amend the certificate of registration of the dealer.

Where a dealer being a Company, effects any change in the Constitution of the Board of Directors, such dealer shall, within fourteen days from the date of the resolution adopted in the meeting of the company, inform the concerned Superintendent of Taxes of the names of the directors in the reconstituted board of directors and furnish declaration affixing one copy of pass port size photograph of such Director or Principal Officer.

(f) Information in respect to death of any dealer by his legal representative- In the event of death of a dealer, being a proprietor or partner of a firm, his legal representative shall, within fourteen days from the date of such death, inform in writing the concerned Superintendent of Taxes of the date of such death and produce before such authority, evidence as may be considered necessary.

(g) Declaration in respect of manager or other officers of a registered dealer- Every dealer registered under the Act shall within fourteen days from the date of registration, furnish to the concerned Superintendent of Taxes a declaration in respect of the manager, officers or authorised person in Form XL and shall send a revised declaration within 14 days from the date of change of such manager or officers.

(3) Submission of statements, accounts and declaration under sub-section (1) of section 59 :-

(1) Every registered dealer shall, within sixty days from the closing of the accounting year, submit before the concerned Superintendent of Taxes a yearly statement showing the details of closing stock at the end of such accounting year in the manner given below :-

(a) A registered dealer who is a manufacturer shall furnish closing stock, statement showing the following information :-

(i) quantity and value of finished goods,

(ii) quantity and value of semi-finished goods,

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(iii) quantity and value of raw materials,

(iv) quantity and value of packing materials.

(b) A registered dealer other than a manufacturer shall submit the closing stock showing the following particulars :-

(v) quantity and value of goods,

(vi) quantity and value of packing materials.

(4) Every registered dealer shall, within sixty days from the closing of the accounting year, submit before the Superintendent of Taxes an annual statement of purchase in Form XLII.¹(Deleted)²

(4A) Every registered dealer dealing in the items under 'Schedule -VIII' shall, within sixty days from the closing of the accounting year, submit before the Superintendent of Taxes, an annual statement of sales in Form -

XLIII.³

(5) Every registered dealer who is entitled to claim refund under section 43 shall, within twenty one days from the end of each return period, submit a statement showing details of refund claimed in respect of each export sale effected during such period.

(6) Every registered dealer, who transfers goods to a branch office, head office, agent or any other person, outside Tripura otherwise than by way of sale shall, within thirty days from the end of each returned period submit a statement showing the quantity and value of goods so transferred during such period and if such goods are transferred at the cost price then corresponding sale price in local market of such dealer shall also be declared.

(7) Every registered dealer shall, along with periodical return submit a detailed statement of purchase in Form XXXVII & sales in Form No. XXXVIU.

17. REGISTRATION OF TRANSPORTERS CARRIERS OR

TRANSPORTING AGENT :-

(1) Every transporter, carrier or transporting agent operating transport business in Tripura relating to taxable goods shall, apply to the Superintendent of Taxes for registration under section 22 of the Tripura Value Added Tax Act, 2004. The application for registration shall be in form IV.

1, 3 Inserted vide the TVAT (First Amendment) Rules, 2011 (w.e.f. 17-08-2011).

2 Deleted vide the TVAT (First Amendment) Rules, 2011 (w.e.f. 17-08-2011).

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(2) An application for registration shall bo signed and verified in the case of

(a) individual, by the Proprietor of the business;

(b) a firm, by the Managing Partner or an adult member of the firm;

(c) an association of persons, an adult member of the association;

(d) a Hindu undivided or joint family, by the Manager, Karta or any adult member of the family;

(e) a company, by the managing Director or Director of the Company in India;

(f) any Government Department, by the Head of the office.

(g) any Government undertaking, Head of Office of such undertaking;

(3) Application for registration of transporter, carrier, transporting agent under sub-rule (1) of this Rule shall state interalia :-

(i) Name of the applicant;

(ii) Status of the applicant (Proprietor, Partner, Director etc) ;

(iii) Name of the transporter, carrier or transporting agent;

(iv) Address of head office with telephone / E-Mail / FaxNo., if any;

(v) Name and address of proprietor, partner, Director etc.

(vi) Address of all branch offices;

(vii) Address of all godowns;

(viii) Particulars of trucks / lorries in the name of the transport company itself and in the name of its partners.

(ix) Particulars of immovable properties including landed property of proprietor / partners;

(x) Bank accounts of transporter, proprietor & partners and nature of account.

(4) Registration Certificate shall be in Form V.

(5) Register of certificates of registration issued to transporters shall be maintained by the Superintendent of Taxes in Form-VI.

(6) If a Transporter ,carrier or a transposing agent carries or transports any taxable goods in contravention of the provisions of the Act or the Rules, his registration shall be liable to be cancelled or suspended for such period as may be determined by the Commissioner of Taxes after giving him a reasonable

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opportunity of being heard.

(7) Every transporter ,carrier or transporting agent operating its transport business in Tripura shall maintain in a Register in Form-VII a true and correct account of every consignment of goods transported into Tripura and in Form-VIII of goods transported outside Tripura through it. Every transporter shall furnish quarterly statement in Form-IX showing a true and correct account of undelivered taxable goods lying in its custody as on the last day of the related quarter (financial year to be followed ) which were transported into Tripura through it, till that day so as to reach the Superintendent of Taxes within thirty days from the expiry of each quarter.

Provided that the Superintendent of Taxes may by order in writing direct any transporter to furnish the statement in Form-IX before expiry of any quarter within such date as may be specified in the order and may like wise at any time modify or annul such order.

(8) No taxable goods shall be delivered by the transporter, carrier or transporting agent unless the requirements laid down in Rule 48 and 51 have been complied with.

(9) No delivery of taxable goods shall be given by the transporter without obtaining a copy of permit in Form-XXIV signed by the Superintendent of Taxes/ Inspector of Taxes.

(10) All accounts, registers and other documents related to the transport business in transportation of taxable goods into Tripura and outside Tripura and delivery thereof in possession of a transporter and its office or go-downs and vehicles shall, at all times, be open for inspection by the Commissioner or any other officer. If the inspection remains incomplete, the Commissioner or any other officer may lock and seal that premises including office, go-down etc. where accounts, records, documents and taxable goods are kept,

(11) If the Commissioner has reason to suspect that any transporter is carrying on transport business in contravention of the provisions of the Act and Rules he may conduct physical verification of stock of taxable goods available in its recorded office, go-downs, vehicles etc.

18. RETURNS :

( I ) Every registered dealer shall furnish return of turnover of taxable goods under section 24 of the Tripura Value Added Tax Act, 2004 to the Superintendent of Taxes in the following forms :

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(a) In Form-X by the dealers other than dealers as mentioned in (b) and

(c) below.

(b) In Form-XA by the Composite dealers.

(c) In Form-XB by the dealers dealing in items under Schedule -VIII.

Explanation :

Dealers dealing in items under Schedule - VIII and also in other items, shall furnish return both in Form X & XB as applicable.¹

(II) the notice referred to in sub-section (2) of Section 24 of the Act shall be in Form -XII.

(III) the return shall be furnished quarterly so as to reach the Superintendent of Taxes within one month from the expiry of each quarter,

Provided that the Commissioner or any other officer not below the rank of Superintendent of Taxes may by an order in writing, direct any dealer to submit returns for period less than a quarter or a month within such date as may be specified in the order and may likewise at any time modified or annul such order and the reason of directing any dealer to submit such returns should be recorded.

(IV) Every dealer who is registered under the Act or to whom : -

(a) a notice has been served to furnish return under sub-section (2) of section 24 shall, maintain in a register a true and upto date account of sales and purchases of taxable goods made by him.

(b) for the purpose of furnishing return and making payment of tax as required by section 24 and rules made thereunder, the accounts of sales & purchases maintained in the register, referred to in clause (a) shall be totalled by the dealer at the end of each month and shall be in agreement with the total amount of sales of goods and purchases of goods according to his accounts and the books of accounts that he maintains in terms of section 48 and rules made there under.

(c) every dealer shall maintain the copies of permits documents, vouchers, bills, or cash memos, purchase vouchers²counter foils of all related CST Forms as may be required in support of any entry in his accounts, books of accounts or sales register and purchase register that he is

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required to maintain by or under section 48.

(d) every dealer who is registered under the Act or to whom a notice has been served to furnish return under sub-section (2) of section 24 shall also maintain a VAT account register for the purpose of sub-section (7) of section 10 of this Act.

(V) All returns required to be furnished shall be signed and verified as in the case of an application for registration under Rule 10.

(VI) Every registered dealer, who transfers goods to a branch office, head office, agent or any other person, outside Tripura otherwise than by way of sale shall, within thirty days from the end of each return period submit a statement showing the quantity and value of goods so transferred during such period and if such goods are transferred at the cost price then corresponding sale price in local market of such dealer shall also be declared.

(VII) Every registered dealer shall, along with periodical return submit a commodity wise statement of purchase & sale in Form No. XXXVII & XXXVIII.

19. Deduction of sale price of goods returned or rejected for computing gross turnover of sales for subsequent return period :-

Wherein, any goods are returned by a customer to a registered dealer within three months from the date of purchase, during or following the period in which such goods were sold, such registered dealer may, while furnishing return under Rule 18 deduct the sale price of goods in respect of which due tax was paid by the dealer during the earlier period from his gross turnover of sales of goods.

19A. Deduction of purchase price of goods returned or rejected from computing gross turnover of purchases for subsequent return period in respect of items under schedule - VIII :-

Wherein, any goods are returned by a dealer to a seller within three months from the date of purchase, during or following the periods in which such goods were purchased, such registered dealer may, while furnishing return under Rule-18, deduct the purchase price of goods in respect of which due tax was paid by the dealer during the earlier period from his gross turnover of purchases of goods.¹

20. Manner and time of payment of tax before furnishing returns : - Every dealer who is required to furnish return quarterly or monthly according to

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Rule 18, shall pay into the appropriate Government Treasury or authorized bank of the area where the dealer has a place of business, under the appropriate challan the amount of tax payable according to his accounts for each quarter or month within thirty days from the expiry of the each quarter or month.

21. (1) Where it appears necessary to the Superintendent of Taxes to make an assessment under section 31 in respect of a dealer for a year or part of a year, comprising period or periods, such Superintendent of Taxes shall serve a notice under sub-section (1) of section 31 upon a dealer directing him to appear before him in person or through his authorized agent on the date and at the time specified in such notice in compliance of the requirement of sub- rule (5) and sub-rule (6) for the purpose of assessment of tax in respect of the aforesaid period or periods and imposition of penalty under sub-section (3) of section 25.

(2) The notice referred to in sub-rule (1) shall be in Form XXXV.

(3) Assessment orders passed under the provisions of the Act shall be made in Form-XIII and Form-XIV.

(4) In the notice referred to in sub-rule (3), the date of hearing shall be fixed ordinarily not before fifteen days from the issue of such notice.

(5) The notice referred to in section 32(1) of the Act shall be in Form XXXVI.

(6) Demand notice for the amount of tax and penalty due from dealers:

(a) After an order of assessment is passed by the concerned Superintendent of Taxes under section 30 or 31 or 32 in respect of a dealer, such authority shall serve a notice in Form-XV on such dealer directing him to make payment of the amount of tax, penalty and interest, if any, due from such dealer by such date as may be specified in such notice.

(b) The date to be specified for payment by a dealer in the notice referred to in clause (a) shall not ordinarily be less then thirty days after service of the notice:

Provided that where on account of delay in service of the notice in Form-XV the dealer is denied of the minimum time of thirty days for compliance with such notice, he may, on application be allowed such further time as falls short of thirty days from the service of such notice.

(c) The notice referred to in clause (b) shall also specify the date by which a dealer shall produce a receipted copy of challan of Government Treasury or of authorized bank as a proof of payment of tax, penalty

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and interest, if any, made according to such notice.

(7) Preservation of assessment records :-

(a) All the papers relevant to the making of any assessment including determination of interest, imposition of penalty and refund of tax, interest or penalty in respect of any particular dealer, owner or lessee of warehouse or owner of goods, as the case may be, shall be kept together and shall form assessment case records.

(b) Assessment case records referred to in clause (a) shall be reserved by the concerned Superintendent of Taxes till such periods as such case records may be required for final disposal of any appeal, review, revision or reference under the Act or for final disposal of any case pending before Tribunal, High Court or Supreme Court.

(8) Period of preservation of accounts, books of accounts, registers by dealers :-

(a) The accounts, books of accounts, registers, documents of the dealer including computerized or electronic accounts maintained on any computer or electronic media, counter foils of all statutory forms obtained and used by the dealer, documents, invoices, cash memos in respect of purchases, sales, delivery of goods by a dealer, or vouchers in respect of any year or part thereof shall be preserved by him:

(i) for a period of not less then five years after the expiry of the year to which they relate, or

(ii) till such period as these may be required for final disposal of any- appeal, review, revision or reference under the Act or for final disposal of any case pending before any Court or Tribunal in respect of such year or part thereof, which ever is later.

22. APPEAL : An appeal under section 69 shall lie to the Assistant Commissioner of Taxes (or any other Officer specially empowered in this behalf by the State Government) and an appeal against an order passed by the Assistant Commissioner (or any other Officer specially empowered in this behalf by the State Government) under section 69 or an order passed by the Commissioner under Sub-section (1) of Section 70 shall lie to the Tribunal and a dealer or other person may file appeal under sub-section (1) of Section 72 before the High Court against the order passed by the Commissioner of Taxes under sub-section (2) of section 70 or against the order passed by the Tribunal under section 71.

23. (1) A memorandum of appeal (in duplicate) may be presented to the Assistant

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Commissioner (or any other Officer specially empowered in this behalf by the State Government) or to the Tribunal by the appellant or by an agent duly authorised by him or may be sent to the said authority by post. The memorandum of appeal

(i) shall contain the following particulars: -

(a) the date of the order appealed against;

(b) the name and designation of the officer who passed the order;

(c) the ground of appeal briefly but clearly set out;

(d) the amount of tax demanded to be due from the appellant;

(e) the date of the service of the order appealed against;

(ii) shall be accompanied by a copy attested to be a true copy by a Gazetted Officer or a certified copy or a Photo copy of the order appealed against;

(iii) shall be endorsed by appellant or by an agent authorised in writing in this behalf by the appellant as follows :-

(a) that the tax as assessed and / or penalty levied has been paid or such portion of the tax, assessed and / or penalty levied as may be required in exercise of his power under provision of sub-section (1) of Section 69 of the Act by the Appellate Authority will be paid before the appeal is entertained.

(b) that to the best of his knowledge and belief the facts set out in the memorandum are true.

(iv) shall be signed, verified and endorsed by the appellant or by an agent authorised in writing in this behalf by the appellant and shall be accompanied by the fee prescribed in rule 59,

(v) shall be in Form -XVI.

(2) If the appellant fails to comply with the requirements either of clauses (iii) or

(iv) of sub-rule (1), the appeal shall be summarily rejected and it may be so rejected if he fails to comply with the requirements of clauses (i), (ii) or (v) of that sub-rule after giving the appellant such opportunity as the appellate authority thinks fit to amend the memorandum of appeal so as to bring it into conformity with such requirements.

(3) If the appellate authority does not reject the appeal summarily, he shall fix the date of hearing for the appellant or his agent.

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24. REVISION:

(1) A petition for revision under section 70(2) of the Act shall contain the following particulars :-

(a) a statement of the facts of the case;

(b) a reference to the particular order in respect of which the revision is applied for;

(c) the grounds on which the petition is filed;

(d) the date of the service of the order objected to;

(e) that the tax assessed and / or penalty levied has been paid or such portion of the tax assessed and / or penalty levied as the case may be required in exercise of his power under provision of sub-section (2) of Section 70 of the Act by the Revisional Authority will be paid before the appeal is entertained.

(2) A petition for revision shall be presented, signed, verified and endorsed as in the case of an appeal and it shall be accompanied by a copy attested to be a true copy by a Gazetted Officer or a certified copy or a photo copy of the order appealed against and the fee prescribed in Rule 59.

25. A petition for revision may be summarily rejected where any of the requirements of rule 24 is not complied with on presentation of the petition.

26. (1) When a petition for revision is not disposed of under Rule 25, a date and place shall be fixed for hearing.

(2) The revisional authority may from time to time adjourn the hearing and make, or cause to be made such further enquiry as may be deemed necessary.

27. NOTICE OF DEMAND : The notice of demand shall be in Form-XV.

28. MODE OF PAYMENT : Dues referred to in the Act shall be paid directly into the Government Treasury by Challan. No payment of such dues shall be accepted at the office of the Commissioner, Additional Commissioner, Joint Commissioner, Deputy Commissioner, Assistant Commissioner or Superintendent of Taxes.

29. The notice referred to in Sub-section (1) of Section 38 of the Act shall be in Form

-XVII.

30. (1) If a dealer does not submit the return and pay the amount of tax due from him within the date specified in Rule 18 and the provision thereto, he shall be liable to pay simple interest at the rate specified in sub-section (1) of section

25.

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(2) If a dealer does not pay the amount of tax assessed to be due from him within the period specified in the notice of demand, he shall be liable to pay simple interest at the rate specified in sub-section (4) of section 45.

(3) If the last due date of payment happens to be a holiday in the Bank and the entire amount of due tax is deposited in the day next following the due date in the Bank, no interest shall be charged.

(4) Where a dealer has paid a part of the tax due on any date after the expiry of the specified date, he shall be liable to pay interest at the specified rate on the whole of the amount of tax due according to his returns or assessed up to the date of part payment and thereafter on the balance tax payable.

31. Challans for making payment shall be in Form -XVIII and shall be obtainable at the Office of the Superintendent of.Taxes.

32. Challans shall be filled in quaduplicate. Two copies duly signed as a proof of payment shall be returned to the dealer and the other two retained by the Treasury or sub- Treasury or authorized bank.

33. (1) One of the copies retained by the Treasury or sub-treasury or bank shall be transmitted to the Superintendent on the following day of the payment.

(2) Every Treasury and sub-treasury or Bank Officer shall send an advice list to the Superintendent of the area within the 7 day of every month showing the amounts received in the previous month. The advice list shall contain the challan number and date, the name of the dealer and the amount paid.

34. (1) Every Superintendent of Taxes shall record the receipt of challans in the Daily Collection Register indicating the number, date and amount of each challan. The Daily Collection Register shall be maintained in Form XIX.

(2) Every Superintendent of Taxes shall maintain an Assessment, Demand and Collection register in Form -XX.

35. REFUNDS :

(1) An application for refund shall be made to the Superintendent of Taxes and shall include, amongst other, the following particulars;-

(a) the name, address and registration No. of the dealer;

(b) the period of assessment for which refund is claimed;

(c) the amount of dues already paid together with challan number and the date of payment and;

(d) the amount of refund claimed and the grounds thereof.

(2) An application for refund shall be signed and verified by the person seeking

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refund and shall be in Form XXXIII.

(3) Every registered dealer who is entitled to claim refund under Section 43 shall, within twenty one days from the end of each return period, submit a statement showing details of refund claimed in respect of each export sale effected during such period.

(4) No claim of any refund shall be allowed unless it is made within one year from the date of the original order of assessment or within one year of the final order passed on appeal or revision as the case may be, in respect of such assessment.

36. (1) For claiming refund under sub-section (1) section 43 of the Tripura Value Added Tax Act, 2004, the registered dealer being an exporter of goods shall apply before the Superintendent of Taxes for refund within three months from the date of filing of return of the period related to the claim of refund and include, among other, the following particulars-

(a) return period;

(b) date of filing of return;

(c) tax paid for the return period;

(d) output tax payable for the return period;

(e) excess amount refundable for the return period. Provided that goods were sold by such registered dealer in course of export within the meaning of sub-section (1) of section 5 of the Central Sales Tax Act, 1956.

(2) Refund of tax charged on purchases made by manufacturing unit :-

(i) a registered dealer having manufacturing unit effecting purchases of plant and machinery, containers, packing materials and raw materials required for direct use in the manufacture of taxable goods in Tripura, may claim refund of input tax paid or payable by such dealer on the purchases of aforesaid goods for such manufacturing unit in Tripura under section 13 of the Act within three months from the date of filing of return for the period related to the claim of refund, after adjusting the amount of output tax, if any, payable on the local sale.

Provided that the goods so manufactured by such registered dealer in his manufacturing unit are for sale by him in the course of export within the meaning of sub-section (1) of section 5 of the Central Sales Tax Act, 1956.

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(ii) For the purpose of claiming refund, the provisions of this Rule 36, shall apply mutatis mutandis.

On receipt of such application, the Superintendent of Taxes shall verify the particulars given in the application and will verify the purchases and sales made by the applicant dealer for correctness and admissibility of the claim of refund.

The Commissioner or any officer authorized on this behalf shall make the refund of the amount of tax ordinarily within three months from the date of filing of such application after making such enquiry about the correctness and admissibility of the claim, as he may deem fit. The original copy of tax invoices shall be endorsed by the Commissioner or any officer authorised on this behalf in red ink to show that the tax has been refunded against such tax invoice or tax invoices and returned to the applicant and the photo copies shall be duly authenticated by the Commissioner or any officer authorised on this behalf and kept for record.

(3) The security as mentioned in sub-section (1) of section 20 is payable by challan in Form - XVIII.

(4) When the Superintendent of Taxes is satisfied that the refund claimed is due, wholly or in part, he shall, subject to the provision of sub-rule(2) of Rule 37 record an order sanctioning the refund.

37. (1) When an order for refund has been passed, a refund voucher in Form-XXI shall be issued in favour of the claimant, unless he desires payment by adjustment. An advice list shall, at the same time, be forwarded to the Treasury or Sub-treasury Officer concerned.

(2) When the claimant desires to adjust the amount of refund due to him against any amount payable by him, the Superintendent of Taxes shall set off the amount to be refunded or any part of that amount against the tax, if any, remaining payable by the claimant.

38. (1) A register of refund shall be maintained in Form-XXII wherein particulars of all applications for refund and the orders passed thereon shall be entered.

(2) When the amount to be refunded exceeds one thousand rupees, the application together with records shall be submitted to the Commissioner of Taxes.

39. PROSECUTION : A Register in Form-XXIII shall be maintained showing the prosecutions instituted and offences compounded under the Act.

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40. When an order is recorded under section 80 accepting any sum, by way of composition of the offence from any person / dealer / transporting agent/ transporter, the order shall specify the :-

(a) time within which the money is to be paid into a Government Treasury;

(b) date by which the proof of such payment is to be produced; and

(c) authority before whom such proof is to be produced.

41. The sum referred to in Rule 40 shall be paid by the person / dealer/ transporter / transporting agent to a Government Treasury in the manner indicated in Rules 28 to

3 2 and a receipted copy of the challan shall be produced by him as a proof of payment.

42. Every registered dealer shall :-

(1) Keep and maintain a true and correct account in Bengali or English, or in such other language as the State Government may specify, as referred to in subsection (1) of section 48 of the Act, showing :-

(i) the quantity and value of goods produced, manufactured, or purchased and sold by him category wise, as given in the Schedule. In case of manufacture, such other related particulars relating to engagement of labour, procurement of raw materials as may be directed by the Commissioner;

(ii) the name and address of the persons from whom goods were purchased, supported by a tax invoice or purchase voucher¹issued by the seller or purchaser²duly signed and dated;

(iii) the name and address along with the Registration No. of the registered dealer from whom goods were purchased, supported by a tax invoice or purchase voucher³issued by registered dealer duly signed and dated for claiming tax credit.

(2) Maintain ledger, cash book, bill book, tax invoice, purchase voucher⁴and other account books to be numbered serially for each year.

(3) Issue bill or cash memo or tax invoice in respect of every sale as the case may be

(i) every such bill, cash memo / tax invoice shall be duly signed and dated by the dealer or by his manager or agent. The counterfoil of such bill or cash memo or tax invoice shall also be signed and dated, as aforesaid. 1, 2, 3. Substituted vide the TVAT (First Amendment) Rules, 2011 (w.e.f. 17-08-2011).

4 . Inserted vide the TVAT (First Amendment) Rules, 2011 (w.e.f. 17-08-2011).

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(ii) the bill or the cash memo or tax invoice shall be serially numbered for each year. In each of the bill or cash nemo issued, the dealer shall specify the full name and style of his business, the number of his registration certificate, the particulars of goods sold and the price thereof In case of sale to a dealer the full name, address and the number of registration certificate of the purchaser should be mentioned.

(iii) Tax invoice shall be in triplicate, page one shall be marked -" ORIGINAL - BUYER" page two shall be marked - "1ST COPY -TAX

CONTROL" and page three shall be marked - " 2ND COPY - SELLER" in FORM- XXIX.

(iv) the first copy of every such bill, cash memo or tax invoice is to be marked 'ORIGINAL' and other copies as „DUPLICATE",

„TRIPLICATE and „QUADRUPLICATE" etc. as may be required by the selling dealer. The copy of bill or cash memo marked" ORIGINAL", including computer generated bill or cash memo must be signed by dealer or his authorized person.

(v) Every dealer making purchase of goods as mentioned in Schedule VIII, shall provide the seller a purchase voucher as mentioned in Section 50A and maintain accounts of such purchase¹.

43. REQUIREMENT OF KEEPING CASH MEMO OR BILL, TAX

INVOICE, PURCHASE VOUCHER²DURING TRANSPORTATION :-

(1) Every dealer or any person shall on his behalf, carrying any taxable goods in excess of the quantity specified in Rule 47 from one place to another within the State after purchasing the same from any dealer keep with him the cash memo or the bill / tax invoice or purchase voucher³of such purchase.

(2) Failure to keep the cash memo or the bill or tax invoices or purchase vouchers⁴as a proof of purchase from a dealer within the State shall give rise to the presumption that such goods have been brought or carried for evasion of tax in contravention of the provisions of the Act and Rules.

44. In requiring the production by any dealer of his accounts or documents etc. strict regard shall be paid to the necessity of"not disturbing the normal business of the dealer or the works of the staff any more than is necessary for the purpose of ascertaining the required information.

1,2 Inserted vide the TVAT (First Amendment) Rules, 2011 (w.e.f. 17-08-2011). 3, 4 Substituted vide the TVAT (First Amendment) Rules, 2011 (w.e.f. 17-08-2011).

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45. Selection of dealers for audit :-

(1) The Commissioner shall, under sub~section (I) of Section 28, of the Tripura Value Added Tax Act, 2004 select the dealers for audit.

(2) Upon selection of registered dealers under sub-rule(l), the Commissioner shall send the list of registered dealers so selected to the appropriate auditing authority for conducting audit under sub-section (1) of section 28.

(3) The audit shall be performed by auditing authority either individually or as a team. Such team of auditing authority may consist of one or more Superintendent of Taxes, Asstt. Commissioner, or Deputy Commissioner, as the Commissioner may deem fit. The Auditing authority may take assistance of Inspector of Taxes for making cross verification of documents like bills,tax invoices / purchase vouchers¹permit in Form XXIV, or XXVT, if such auditing authority considers it necessary.

(4) Audit of selected dealers :

(i) For the purpose of audit, an audit team may consist of the following persons:

(a) Superintendent of Taxes and Inspector of Taxes with the Superintendent of Taxes as its head;

(b) Asstt. Commissioner of Taxes, Superintendent of Taxes and Inspector of Taxes with Asstt. Commissioner of Taxes as its head;

(c) Deputy Commissioner of Taxes, Asstt. Commissioner of Taxes, Superintendent of Taxes and Inspector of Taxes with Deputy Commissioner of Taxes as its head;

Provided that the members of the Audit team shall not be entrusted with the responsibility of collection of taxes. Provided further that the State Government may authorise any other Government Department, Organisation or undertaking to perform the functions of an Audit team.

(ii) The Audit report drawn by an audit team :-

(a) headed by Superintendent of Taxes shall be scrutinized by the Asstt. Commissioner of Taxes;

(b) headed by an Asstt. Commissioner of Taxes shall be scrutinized

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by a Deputy Commissioner of Taxes;

(c) headed by a Deputy Commissioner of Taxes, shall be scrutinize by an Addl. Commissioner of Taxes;

(5) (i) Person or persons who are selected by the Commissioner of Taxes in the manner prescribed in clause (i) of sub-rule (4) shall audit the records and examine the correctness of return or returns generally and admissibility of various claims, including input tax credit.

(ii) For the purpose of audit the auditing authority may -

(a) inspect the books of accounts and other documents related to business;

(b) search dealers" place of business, warehouse, residence and other places if there is reasonable suspicion that evidences will be available in such place related to evasion of tax or any offence under the Act;

(c) seize books of accounts or documents including those in electronic form, if considered necessary, for the purpose of the Act;

(d) break open any door, or window of house room or warehouse, or any almirah, safe box or receptacle where the Commissioner or auditing authority or any person appointed under section 18 of this Act, has reason to believe that such dealer, person, transporter or owner or lessee of warehouse keeps or is, for the time being, keeping any accounts, registers, documents, or records of his business or any stock of goods for sale either before or after entering or searching or during search of any place of business or any other place for the purpose of sub-section (1) of section 28 of the Act;

(e) may seal any house, room, warehouse, almirah, safe, box or receptacle in which he has reason to believe a dealer, person, transporter or owner or lessee of warehouse keeps or is, for time being keeping any accounts, registers, documents or records of his business or any stock of books for sale;

(iii) The result of audit shall be communicated by the auditing authority to the assessing authority.

46. Notices or requisitions under the Act or the Rules may be served by any of the

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following methods :-

(a) by delivery to the addressee or his agent, by hand a copy of the notice or by registered post.

Provided that if upon an attempt having been made to serve any such notice or requisition by any of the above mentioned methods, the Superintendent of Taxes concerned is satisfied that the dealer, evading the service of a notice or requisition or that for any other reasons, the notice or requisition can not be served by any of the above mentioned methods, the said authority shall cause such notice or requisition to be served by affixing a copy thereof on some conspicuous place in his office and also upon some conspicuous part of the last declared place or premises of the dealer and such service shall be as effectual as if it has been made on the dealer personally.

47. No person, other than a registered dealer, shall take delivery or transport from any railway station, post-office, airport, business place of any transporter, carrier or transporting agent or any other place whether of similar nature or otherwise in Tripura any consignment of taxable goods despatched from outside Tripura:

Provided that this restriction shall not apply to any consignment which does not exceed:

(a) in case of goods sold by quintal and kilograme -5 kilograms in weight.

(b) in case of goods sold by litre -1 litre in volume.

(c) in case of goods sold by meter -1 meters in length.

(d) in case of goods sold by piece -1 in number.

(e) in case of goods sold by pair -1 pair.

(f) in case of precious stones, namely diamonds, emeralds, rubies, real pearl, and sapphires synthetic or artificial precious stones, pearls artificial or cultured -1 gram in weight.

48. A registered dealer shall, before taking delivery of or transporting from any place specified in Rule 47, any consignment of taxable goods exceeding the quantities specified in the said rule and dispatched from any place outside Tripura, produced for countersignature before the Superintendent or Inspector the railway receipt, bill of lading or other document required for the purpose of obtaining delivery of such consignment from the carrier. He shall simultaneously make over to the Superintendent of Taxes a written declaration in Form-XXIV in triplicate duly signed.

49. (1) Every declaration to be given under clause (a) of sub-section (2) of section 67 of the Act shall contain a correct and complete accounts of the goods

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carried by the transporter and shall be in Form-XXV in triplicate and duly signed by him.

(2) The Officer-in-charge, of the checkpost or the barrier on being satisfied about the correctness of the statements made and particulars contained in the declaration in form-XXV, shall seal it with his official seal and give a permit. The duplicate and triplicate copies of Form-XXV shall thereupon be returned to the Transporter and the original copy shall be retained by the officer-in- charge and the same shall be forwarded to the concerned Superintendent of Taxes after the end of every month.

Provided that a transporter who has obtained a permit at the first check post or barrier under this sub-rule shall not be required to make any further declaration at any other check posts or barriers in respect of only so much of the consignments to which the permit relates.

(3) Registered transporter, carriers or transporting agent under Sub-rule (1) of Rule 17, shall obtain the Form XXV, subject to the provisions of Rule 50, from the concerned Superintendent of Taxes on payment of such price as may be notified by the Commissioner. The form shall be in triplicate and serially numbered and account shall be maintained in the Office of the Superintendent of Taxes in a register. No form, other than Form XXV supplied from the Office of the Superintendent of Taxes, shall be entertained. Registered transporter shall submit triplicate copy of Form XXV to the concerned Superintendent of Taxes at the time of obtaining further supply of the said form.

Provided that the transporter may be supplied with the Form XXV in case the Superintendent of Taxes is satisfied that due to reasons beyond control of the transporter it is not able to produce the triplicate copy of Form XXV taken earlier and the transporter has submitted an undertaking to produce such triplicate copy within two months.

(4) If the Superintendent of Taxes considers it necessary so to do, he may specify the period on the Form XXV so issued by him, for which it will be valid.

(5) If any Form XXV obtained by a registered transporter under sub-rule (3) is lost or destroyed or stolen, it should immediately report the fact of such loss, destruction or theft to the Superintendent of Taxes concerned.

(6) When the registration certificate of a transporter is cancelled/ suspended, such transporter shall forthwith surrender to the concerned Superintendent of

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Taxes, all unused Form XXV remaining in stock with it and the concerned Superintendent of Taxes shall thereupon cancel and mutilate such form so surrendered.

50. (1) (a) If the Superintendent of Taxes is satisfied that the applicant for Form XXV has not made bonafide use of such forms previously issued to him or that he does not require such form for bonafide reasons, he may reject the application.

(b) If the Superintendent of Taxes is satisfied that the applicant does not require from XXV in such number as he has applied for, for bonafide reasons the Superintendent of Taxes may issue such forms in such lesser numbers, as in his opinion, would satisfy the reasonable requirement of the applicant.

(2) For any breach of provisions contained in Rule 46 by a transporter, the Superintendent of Taxes may reject the application for Form XXV made by such transporter.

(3) If the Superintendent of Taxes is satisfied that :-

(a) the applicant for Form XXV has delivered taxable goods to anybody without obtaining valid permit, or

(b) the applicant has concealed the actual particulars of the consignments transported by it, or

(c) the applicant is a defaulter in payment of composition money due from it under sub-section (1) of section 80 or tax and penalty due from him under section 77 of the Tripura Value Added Tax Act, 2004 within the prescribed date or within the extended period, the Superintendent of Taxes may reject the application for Form XXV made by such transporter.

51. The Superintendent of Taxes or Inspector of Taxes shall on being satisfied about the correctness of the statement made and particulars contained in a declaration in Form XXIV, countersign the railway receipt, bill of lading or other documents and shall seal it with his official seal. All the three copies of the declaration made by the dealer shall be endorsed with the number of railway receipt, bill of lading or other documents as the case may be and the date of countersignature of the aforesaid documents and these shall be signed by the Superintendent or Inspector and sealed with his official seal. Two copies of the declaration shall thereupon be returned to the dealer and the

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other copy retained by the Superintendent or Inspector of Taxes for office records.

52. (1) Where the procedures laid down in rule 48 or rule 69 cause inconvenience to a dealer, such dealer may transport consignments or taxable goods despactched from any place outside Tripura, on the basis of intimation furnished by such dealer in Form XXVI in accordance with the provisions contained in this rule, from such railway station, steamer station, post office, airport or any other place notified under section 66 or section 67 of the Act as may be specified in this behalf for the purposes of this rule by the authorized officer.

(2) The dealer referred to in sub-rule (1), who shall be a registered dealer may obtain, subject to the provisions, of Rule 53, the Form XXVI on application, from the Superintendent of Taxes concerned. The Form XXVI shall be in triplicate and shall contain the following particulars, among others, namely -

(a) the description, quantity and value of the taxable goods to be transported,

(b) the place from which the taxable goods is being despatched,

(c) the railway receipt or bill of lading or air note number or road consignment note number,

(e) the name and address of the seller from whom purchased.

(3) The registered dealer referred to in sub-rule (2) shall, before transporting any consignment of taxable goods from any railway station, steamer station, post office, airport or any other place notified under section 66 or section 67 as referred to in sub-rule (1), produce for countersignature before the authority mentioned in sub-rule (4), the railway receipt or bill of lading or other documents required for the purpose of obtaining delivery of such consignments from the transporter and he shall also furnish the Form XXVI duly filled in and signed by him in triplicate to the said authority.

(4) (i) The Superintendent of Taxes or Inspector posted on duty at the railway station, steamer station, post office, airport or any other place notified under section 66 or section 67 as referred to in sub-rule (1), shall be the authority for the purpose of sub-rule (3).

(ii) The said authority shall, after being satisfied that the Form XXVI has been duly filled in, countersign the railway receipt, bill of lading, air note or other documents under his official seal.

(iii) Three copies of Form XXVI furnished by the registered dealer shall be

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endorsed with the number and date of railway receipt or bill of lading or other documents along with countersignature of aforesaid documents and these shall be signed by the said authority under his official seal, two copies of which shall be returned to the registered dealer and the third copy shall be retained by the said authority.

(iv) The consignments shall then be taken delivery of from the transporter on presentation of the railway receipt or other documents so endorsed. The original copy of the Form XXVI shall thereafter be submitted to the appropriate Superintendent of Taxes by the registered dealer at the time of obtaining further supply of Form XXVI or within one month from the date of the aforesaid countersignature, whichever is earlier, and the duplicate copy shall be retained by such dealer.

(5) A registered dealer referred to in sub-rule (2) or his agent, transporting any consignment of taxable goods by any road vehicle or river craft or other vessel or by any other means across or beyond the notified area of a check- post, referred to in sub-section (1) of section 67, shall furnish Form XXVI in triplicate, duly filed in, and signed by him, to the Superintendent of Taxes or Inspector posted at such notified area. The said Superintendent of Taxes or Inspector, after being satisfied that the Form XXVI has been duly filled in, shall allow the movement of such taxable goods mentioned in the said Form XXVI, if such goods conform to the description given therein. He shall retain the third copy of the Form XXVI and return to the registered dealer other two copies on which he shall endorse the date of transportation of the consignment and shall sign, seal and date such endorsement. The registered dealer shall submit the original copy of the Form XXVI to the appropriate Superintendent of Taxes at the time of obtaining further supply of the said form or within one month from the date of the aforesaid endorsement whichever is earlier, and the duplicate copy shall be retained by such dealer:

Provided that the dealer may be supplied with Form XXVI in case the Superintendent is satisfied that due to reasons beyond control of the dealer he is not able to produce the original copy of Form XXVI taken earlier and the dealer has submitted an undertaking to produce such original copy within three months.

(6) The Superintendent of Taxes or Inspector referred to in sub-rule (4) or sub- rule (5) shall forward the triplicate copy of the Form XXVI retained by him to the appropriate Superintendent of Taxes at the end of every month.

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(7) If the Superintendent of Taxes considers it necessary so to do, he may specify the period on the Form XXVI so issued by him, for which it will be valid and may also specify thereon the name of the railway station, steamer station, post-office, airport or any other notified place referred to in sub-rule (1) in respect of which only such form may be used by a dealer.

(8) When the registration certificate of a dealer is cancelled or suspended, such dealer shall forthwith surrender to the appropriate Superintendent of Taxes all unused Forms XXVI remaining in stock to him and the appropriate Superintendent of Taxes shall thereupon cancel such forms so surrendered.

53. If any Form XXV or Form XXVI, either blank or duly filled in is lost or stolen or destroyed, while it is in his custody before despatch or lost in transit, the dealer shall furnish to the concerned Superintendent of Taxes, a reasonable security by way of a Indemnity Bond in Form XXXIV separately for each form so lost, stolen or destroyed against any possible misuse of the said form.

54. (1) If for reasons, to be recorded in writing :-

(a) the Superintendent of Taxes is not satisfied that the applicant for Form XXVI made bonafide use of such forms previously issued to him or that his requirement of such forms as applied for is bonafide, he may reject the application.

(b) The Superintendent of Taxes is not satisfied that the applicant"s requirement of Form XXVI in such number as he has applied for is bonafide, the Superintendent of Taxes may issue such forms in such lesser numbers as in his opinion would satisfy the reasonable requirement of the applicant.

(2) If the applicant has at the time of making the application for Form XXVI -

(a) failed to comply with an order demanding security from him under section 20 of the Act, or

(b) defaulted in furnishing any return or returns together with receipted challan or challans showing payment of tax due from him according to such return or returns for furnishing of which the prescribed date has already expired, the Superintendent of Taxes shall reject the application.

(3) For any breach of the provisions contained in Rule 52 by a dealer, the Superintendent of Taxes may reject the application for Form XXVI made by such dealer.

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55. (1) Every person shall, before transporting any consignment of any taxable goods exceeding the quantity specified in the provisions of Rule 47 from any place inside the State to a place outside Tripura, produce for countersignature before the Superintendent of Taxes or the Inspector, a written declaration in Form XXVII, in triplicate and duly signed containing a correct and complete account of goods carried along with other documents regarding payment of tax under the Act;

Provided that if any such person claims that he is not liable to pay any tax under the Act he shall be required to produce necessary documents in support of the claim to the satisfaction of the Superintendent of Taxes or the Inspector of Taxes.

(2) The Superintendent or the Inspector ofTaxes shall, on being satisfied about the correctness of the statement made in the declaration in Form XXVII and payment of due tax, sign and seal the declaration with the office seal in the space provided and also countersign the challans or bills or tax invoice, thereby, permitting the person to transport the taxable goods outside the State. Two copies of the permit shall thereupon be given to the applicant and the third copy retained by the Superintendent or Inspector ofTaxes. The Transporter shall produce one copy of the permit while crossing the last check-post in the State.

56. Notwithstanding anything contained in Rule 47, the Superintendent of Taxes of any area may for good & sufficient reason to be recorded in writing authorize any person to take delivery of or transport any consignment of taxable goods exceeding the quantities specified in the said Rule 47 from the place in such area.

57. DELEGATION AND EXERCISE OF POWER:

The powers to call for returns, to make assessment, to cancel or rectify them, to impose penalty and to order maintenance of accounts shall not be delegated to any officer below the rank of Superintendent of Taxes.

58. The officers to whom powers may be delegated under section 85 shall exercise the powers subject to the provisions of the Act and the Rules thereunder and to such restrictions as may be imposed by the Commissioner in delegating the powers.

59. FEES : The following fees shall be payable :-

(a) upon a memorandum of appeal against an order of assessment, or upon a petition for revision of an appellate order against an order of assessment - 1

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