The Andhra Pradesh Entry of Goods into Local Area Tax Act, 1987

1. (1) This Act may be called the Andhra Pradesh Entry of Goods into Local Area Tax Act, 1987.
2. (2) It extends to the whole of the State of Andhra Pradesh.
3. (3) It shall be deemed to have come into force on the 8th July, 1987.

In this Act, unless the context otherwise requires,—

1. (a) “Business” includes any trade, commerce, manufacture or any adventure or concern in the nature of trade, commerce or manufacture whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make gain or profit and whether or not any gain or profit accrues from such trade, commerce, manufacture, adventure or concern and any transaction in connection with, or ancillary or incidental to such trade, commerce, manufacture, adventure or concern;
2. (b) “Dealer” means any person who, whether in the course of business or otherwise, brings or causes to be brought into a local area any goods, or causes to be entered into a local area any goods, whether on his own account or on account of a principal or any other person, and includes a casual trader, a commission agent, a broker or any other mercantile agent by whatever name called;
3. (c) “Local Area” means the area within the limits of a Gram Panchayat constituted under the Andhra Pradesh Gram Panchayats Act, 1964, a Mandal Praja Parishad or Zilla Praja Parishad constituted under the Andhra Pradesh Mandala Praja Parishads, Zilla Praja Parishads and Zilla Abhivrudhi Sameeksha Mandals Act, 1986, a Municipality constituted under the Andhra Pradesh Municipalities Act, 1965, or a Municipal Corporation constituted under the relevant law for the time being in force for the constitution of a Municipal Corporation in the State;
4. (d) “Value of Goods” means the purchase value of the goods, or if the goods are acquired or obtained otherwise than by way of purchase, the value of the goods as may be determined in the prescribed manner.

Levy of tax

1. (1) Subject to the provisions of this Act, there shall be levied and collected a tax on the entry of the scheduled goods into any local area for consumption, use or sale therein.
2. (2) The tax shall be levied at such rate not exceeding five per centum of the value of the goods as may be fixed by the Government by notification, and different rates may be fixed for different local areas or for different goods.
3. (3) The tax shall be paid by every dealer liable to tax under the Andhra Pradesh General Sales Tax Act, 1957, who effects entry of such goods into a local area: Provided that no tax shall be levied under this Act on the entry of the scheduled goods into any local area, if such goods are purchased from a registered dealer or are sold by a registered dealer in the course of inter-state trade or commerce or in the course of export out of the territory of India.

Registration of dealers

1. (1) Every dealer liable to pay tax under this Act shall get himself registered with such authority as may be prescribed.
2. (2) Every dealer required to be registered under sub-section
3. (1) shall make an application for registration in such manner, within such time and on payment of such fee as may be prescribed.
4. (3) The provisions relating to registration, its renewal, cancellation or amendment under the Andhra Pradesh General Sales Tax Act, 1957, shall, so far as may be, apply to the registration of dealers under this Act.

Power to order production of accounts and powers of entry, inspection etc.

1. (1) Any assessing authority or any officer empowered by the Government in this behalf may, for the purposes of this Act, require any dealer or person in charge of a vehicle or carrier or of a place of business or of a warehouse to produce for inspection the accounts, documents and other evidence required by or under this Act.
2. (2) All such accounts, registers, records and other documents shall at all reasonable times be open to inspection by such authority or officer, and such authority or officer may take or cause to be taken such copies or extracts of the said accounts, registers, records and other documents as may be necessary.
3. (3) The assessing authority or any officer empowered by the Government in this behalf may enter and search any place of business or any other place where the assessing authority or such officer has reason to believe that the dealer keeps or is, for the time being, keeping any accounts, registers, documents or other evidence relating to the entry of goods into a local area.
4. (4) Any officer empowered by the Government in this behalf may enter and search any vehicle or carrier or any other place and inspect any goods or documents relating to the entry of goods into a local area.
5. (5) The power conferred by sub-sections
6. (3) and
7. (4) shall include the power to seal any office, shop, godown, box or any other place or receptacle where such books of account or other documents or goods are suspected to be kept or concealed.

Tax to be a first charge on property. Notwithstanding anything contained in any law for the time being in force, the amount of tax, penalty or any other sum payable by a dealer or any other person under this Act shall be the first charge on the property of such dealer or such person.

Assessment of tax:-

1. (1) Every dealer liable to pay tax under this Act shall furnish such return or returns, in such Form, in such manner and to such authority, within such time as may be prescribed.
2. (2) If the assessing authority is satisfied that any return submitted by a dealer is correct and complete, he shall assess the amount of tax due from the aforesaid dealer on the basis of such return.
3. (3) If the assessing authority is not satisfied that any return submitted by a dealer is correct and complete, he shall serve on such dealer a notice requiring him, on the date and at the hour and place specified therein, either to attend in person or to produce or cause to be produced any evidence on which such dealer may rely in support of such return.
4. (4) On the day specified in the notice or as soon afterwards as may be, the assessing authority shall, after hearing such evidence as the dealer may produce and such other evidence as the assessing authority may require on specified points, assess the amount of tax due from the dealer.
5. (5) If any dealer liable to pay tax under this Act fails to furnish any return or returns within the prescribed time, the assessing authority shall, after giving the dealer a reasonable opportunity of being heard, assess to the best of his judgment the amount of tax due from such dealer.
6. (6) If upon information which has come into his possession, the assessing authority is satisfied that any dealer has been liable to pay tax under this Act in respect of any period and has nevertheless failed to pay such tax, the assessing authority may at any time within such period as may be prescribed, serve on the dealer a notice requiring him to furnish such return and proceed to assess the tax due from him in regard to such period and the provisions of this Act shall apply as if such assessment were made under sub-sections
7. (3) or (4).

Recovery of tax:-

1. (1) The amount of tax due under this Act from a dealer shall be paid in such manner and in such installments, if any, and within such time, as may be prescribed.
2. (2) If default is made in payment of tax according to the provisions of sub-section (1), the whole of the amount of tax then remaining due shall become recoverable in accordance with the provisions of the Andhra Pradesh General Sales Tax Act, 1957.

Appeals:

1. (1) Any dealer objecting to any order passed or proceeding recorded by any authority under the provisions of this Act may appeal to such authority as may be prescribed within thirty days from the date on which the order or proceeding was served on him: Provided that the appellate authority may admit an appeal preferred after the period of thirty days aforesaid, if it is satisfied that the dealer had sufficient cause for not preferring the appeal within the said period.
2. (2) Every appeal under sub-section
3. (1) shall be in the prescribed form and shall be accompanied by such fee as may be prescribed.
4. (3) The appellate authority may, after giving the dealer an opportunity of being heard, –
   • (a) confirm, reduce, enhance or annul the assessment or the penalty or both;
   • (b) set aside the assessment or penalty or both and direct the assessing authority to pass a fresh order after such further enquiry as may be directed; or
   • (c) pass such other orders as it may think fit.
5. (4) Every order passed in appeal under this section shall, subject to the provisions of section 10, be final.

Revision:

1. (1) The Commissioner may suo motu call for and examine the record of any order passed or proceeding recorded by any authority sub-ordinate to him under the provisions of this Act for the purpose of satisfying himself as to the legality or propriety of such order or as to the regularity of such proceeding and may pass such order in reference thereto as he thinks fit.
2. (2) The Commissioner may, on application by any dealer for revision of any order passed or proceeding recorded by any authority under the provisions of this Act, after giving the dealer an opportunity of being heard, pass such order in reference thereto as he thinks fit.
3. (3) The powers under sub-sections
4. (1) and
5. (2) shall be exercised within such period and in such manner as may be prescribed.

Offences and penalties.

1. (1) Any person who—
   • (a) being a dealer liable to pay tax under this Act, fails or neglects to register himself as a dealer; or
   • (b) fails to pay within the time allowed, any tax which he is liable to pay under this Act; or
   • (c) fails to keep true and complete accounts; or
   • (d) fails to furnish any return as required by this Act or the rules made thereunder; or
   • (e) makes any statement or declaration in any return or other document furnished under this Act which he knows or has reason to believe to be false; or
   • (f) prevents or obstructs an officer from exercising any power of entry, search or inspection conferred by or under this Act; shall be punishable with simple imprisonment which may extend to six months or with fine which may extend to two thousand rupees or with both and in case of a continuing offence, with a daily fine which may extend to one hundred rupees during the period of the continuance of the offence.
2. (2) No court shall take cognizance of any offence under this Act except with the previous sanction of the assessing authority concerned.

Power to make rules.

1. (1) The Government may, by notification, make rules to carry out the purposes of this Act.
2. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for—
   • (a) the registration of a dealer under this Act;
   • (b) the furnishing of returns and the forms in which they shall be furnished;
   • (c) the procedure for the assessment and payment of tax;
   • (d) the manner in which accounts shall be kept;
   • (e) the procedure for the recovery of tax;
   • (f) any other matter which is required to be, or may be, prescribed.
3. (3) Every rule made under this Act shall, immediately after it is made, be laid before each House of the State Legislature if it is in session and if it is not in session, in the session immediately following for a total period of fourteen days which may be comprised in one session or in two successive sessions, and if, before the expiration of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in the rule or in the annulment of the rule, the rule shall from the date on which the modification or annulment is notified, have effect only in such modified form or shall stand annulled 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.

Power to remove difficulties:

1. (1) If any difficulty arises in giving effect to the provisions of this Act, the Government may, by order published in the Andhra Pradesh Gazette, make such provisions not inconsistent with the purposes or provisions of this Act as appear to them to be necessary or expedient for removing the difficulty.
2. (2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of the State Legislature.

(List of goods) (a) Cement; (b) Iron and steel; (c) Timber; (d) All kinds of motor vehicles; (e) All kinds of electrical goods and appliances; (f) All kinds of machinery; (g) All kinds of chemicals; (h) All kinds of dyes; (i) All kinds of soaps; (j) All kinds of vegetable oils; (k) All kinds of paints and varnishes; (l) All kinds of floor and wall tiles; (m) All kinds of sanitary wares; (n) All kinds of pipes and pipe fittings; (o) All kinds of glass and glassware; (p) All kinds of plastics and plastic goods; (q) All kinds of paper and paper boards; (r) All kinds of rubber goods; All kinds of leather and leather goods; (t) All kinds of textiles; (u) All kinds of foodgrains; (v) All kinds of pulses; (w) All kinds of sugar; (x) All kinds of tobacco and tobacco products; (y) All kinds of alcoholic liquors; (z) Petrol, diesel and other motor spirits.