Chapter VI Chapter VI

penalty or other amount due under this Regulation after making of an assessment for such t". interest or amount payable by such person. penalty. 31. (1) Where areturn is furnished by a person as required under section26 or section Self 27 and which contains the prescribed inforn~ation and accompanies the relevant documents assessment' required to be accompanied under this Regulation and such person has complied with the other requirements specified under this ~eklation and the rules and orders made thereunder, an assessment of the tax payable ofthe amount specified in the return shall be deemed to have been made, under this Regulation, on the day on which such return was furnished.

1. (2) No assessment shall be deemed to have been made under sub-section (I), if the Commissioner has already made an assessment of tax in respect of the same tax period under any other provision of this Regulation. 32. (1) If any person- rnfault assessment of
   • (a) has not furnished returns required under this Regulation by the prescribed tax payable. date; or
2. (6) has furnished incomplete or incorrect returns; or
   • (c) has furnished a return which is not accompanied by the documents required to be filed alongwith the return under this Regulation or rules made thereunder; or
   • (d) has furnished a return which is not in comformity with the provisions ofthis Regulation or rules made thereunder, the Commissioner may, for reasons to be recorded in writing, assess or re-assess to the.best of his judgment the amount of net tax due for any tax periodor tax periods.
3. (2) Where the Commissioner has made an assessment under sub-section (I), the Commissioner shall forthwith serve on concerned person a notice ofsssessment oftheamount of any additional tax due for that tax period.
4. (3) Where the Commissioner has made an assessment under sub-section (I) and subsequently any further tax is assessed as due, the amount of further tax so assessed as due shall also be payable on the same date being the date on which the net tax for the tax period was due. 33. (1) Where the Commissioner has reason to believeihat a liabilityto pay a penalty Assessment of under section 86 has arisen, the Commissioner, after recording the reason in writing, shall penalty. serve on the person concerned a notice of assessment of the'penalty which has become due under this Regulation.
5. (2) The amount of any penalty assessed under this section shall become due on the date on which the notice of assessment has been served by tlte Commissioner. SERIES - I No. : 05 DATED isTH AUGUST, 2005.

Self 27 and which contains the prescribed inforn~ation and accompanies the relevant documents assessment' required to be accompanied under this Regulation and such person has complied with the other requirements specified under this ~eklation and the rules and orders made thereunder, an assessment of the tax payable ofthe amount specified in the return shall be deemed to have been made, under this Regulation, on the day on which such return was furnished.

1. (2) No assessment shall be deemed to have been made under sub-section (I), if the Commissioner has already made an assessment of tax in respect of the same tax period under any other provision of this Regulation.

assessment of

1. (a) has not furnished returns required under this Regulation by the prescribed tax payable. date; or

1. (6) has furnished incomplete or incorrect returns; or
   • (c) has furnished a return which is not accompanied by the documents required to be filed alongwith the return under this Regulation or rules made thereunder; or
   • (d) has furnished a return which is not in comformity with the provisions ofthis Regulation or rules made thereunder, the Commissioner may, for reasons to be recorded in writing, assess or re-assess to the.best of his judgment the amount of net tax due for any tax periodor tax periods.
2. (2) Where the Commissioner has made an assessment under sub-section (I), the Commissioner shall forthwith serve on concerned person a notice ofsssessment oftheamount of any additional tax due for that tax period.
3. (3) Where the Commissioner has made an assessment under sub-section (I) and subsequently any further tax is assessed as due, the amount of further tax so assessed as due shall also be payable on the same date being the date on which the net tax for the tax period was due.

Assessment of under section 86 has arisen, the Commissioner, after recording the reason in writing, shall penalty. serve on the person concerned a notice of assessment of the'penalty which has become due under this Regulation.

1. (2) The amount of any penalty assessed under this section shall become due on the date on which the notice of assessment has been served by tlte Commissioner. SERIES - I No. : 05 DATED isTH AUGUST, 2005. Limitalion on

1. (1) No assessment or re-assessment shall be made by the Commissioner after the expiry of four years from- and re- ~ssessmeot.
   • (a) the date on which the person furnished a return under section 26 or sub-section
     • (I) of section28; or
2. (6) the date on which the Commissioner made an assessment of tax under settion 32, whichever is the earlier: Provided that where the Commissioner has reason to believe that tax was not paid by reason of concealment, omission or failure to disclose material particulars on the part of the person, the assessment or re-assessment may be made by the Commissioner within six years from the dates specified in clause
   • (a) or clause (b), as the case may be.
3. (2) Notwithstanding anything contained in sub-section (I), the Commissioner may make

an assessment of tax within one year from the date of any decision of the Appellate

Tribunal or court where the assessment is required to be made in consequence of, or to give effect to, the decision ofthe Appellate Tribunal or court which requires the re-assessment of the person.

1. (1) Subject to the provisions of sub-sections (2) and (4, where an amount of tax assessed tax

or penalty has been assessed under section 32 or section 33, the Commissioner may not

and penalties. proceed to enforce payment ofthe amount assessed until hvo months after the date of service of the notice of assessment.

1. (2) Where a person hasmade an appeal to anassessment or part ofan assessment in the manner provided insection 74, theCommissioner shall not enforce the payment ofany amount in dispute under that assessment until the appeal is decided by the Commissioner.
2. (3) Nothi~g in this section shall stay any proceedings by theCommissioner or before a court for the recovery of any amount due under this Regulation-
   • (a) which are not the subject of a dispute before the Commissioner; or (b)which has not been stayed by the Appellate Tribunal or Court. (Q Notwithstanding anything contained in sub-sectiod (I), where an amount of tax or penalty has been assessed by the Commissioner and he is satisfied that it may not be possible torecover theamount assessed ifcollection ofsuch amount is delayed, or it will bedetrimental to revenue if the

full period of two months referred to in sub-section (1) is allowed, the

Commissioner may specify a date in the notice of assessment as the date being earlier than said two months after the date of service of the notice of assessment. Manner of payment of tax, penallies and interest. Order of applicalion of payments.

Regulation, shall pay the amount to the Government Treasury of Daman and Diu, or a branch in

Where an amount of tax, interest, or penalty is payable by any person under this

Regulation and such person pays in part, or the Commissioner recovers in part, an amount of such tax, interest, or penalty due under this Regulation, the amount of tax, interest, or penalty

Regulation and thereafter from the interest, penalty and tax payable under the Cenhal Sales Tax Act,

1956 if such interest, penilty and tax payable relate to the sale of goods from the 740f 1956.

Daman and Diu under that Act.

1. (1) Subject to the other provisions of this section and the rules made thereunder, the Commissioner shall refund to aperson the amount oftax, penaltyand interest, ifany, paid by such person in excess of the mount assessed or deemedto have been assessed and-due from him. - SERIES - I No. : 05 DATED laTH AUGUST, 2005.
2. (2) Before making any refund, thecommissioner shall first apply such excess referred to in sub-section
   • (I) towards therecovew ofany other amount due under this Regulation, or 74 of 1956. thereafter from thedues under the central sales Tax Act, 1956 if such dues rela& to sale of goods from the Daman and Diu under that Act.
3. (3) Subject to the provisions of sub-section (4). any amount remaining at the end of the financial year after the application of the excess amount referred to in sub-section (2) shall, at the option of the dealer, either-
   • (a) be refunded to the person within one yew after the date on which the claim was made for the refund; or
   • (b) be carried forward to the next tax period as a tax credit in that period.
4. (4) Where the Comniissioner has issued a notice to the person under section 58

informing him that an audit, investigation or inquiry into his business affairs shall be

undertaken, the excess amount referred to in sub-section (2) shall be carried forward to the next tax period as a tax credit in that period.

1. (5) The commissioner may, as a condition of the paytilent of a refund under this section, demand security from the person pursuant to the powers conferred in section 25. . .
2. (6) Notwithstanding anything contained in this section, where--
   • (a) a registered dealer has sold goods to a person who is not registered as a dealer under this Regulation;
3. (6) the price charged for the goods includes an amount oftax payable under this Regulation; and
   • (c) the dealer claims refund of this amount or to apply this amount under clause
   • (b) of sub-section (3), no amount shall be refunded to the dealer or may be applied by the dealer under clause (b) of sub-section (3) unless the Commissioner is satisfied that the dealer has refunded the amount to the purchaser.
4. (7) Where-
   • (a) a registered dealer (hereafter referred toas seller) has sold goods to another registered dealer (hereafter referred to as the buyer); and
   • (b) the price charged for the goods expressly includes an athbunt of tax payable under this Regulation, the amount of tax may be refunied to the seller or may be applied by the seller under clause
   • (b) of sub-section (3) and in that case the Commissioner may reassess the buyer to disallow him the amount of the corresponding tax credit claimed by such buyer, whether or not the seller refunds the amount to the buyer.
5. (8) Where a registered dealer sells goo& and tlteprice charged forthegoods expressly indicate inclusion of an amount of tax payable under this Regulation, the amount ofthe tax may be refunded to the seller or may be applied by the seller under clause
6. (6) of sub-section
7. (3) without the seller being required to refund an amount of the tax tqthe purchaser. I.
8. (9) Notwithstanding anything contained in this section, if a registered dealer has ti led any return as required under this Regulation and the return shows any amount ofthe tax as refundable to the dealer on account of sales in course of export out ofthe territory of India, then, the dealer may apply in the manner and form prescribed, to the Ckmmissioner for grant

of provisional refund pending audit and investigation to establish the correctness of the

claim and consequent assessment, if any, subject to the provisions of sub-section (10).

1. (10) Subject to the provisions of sub-section (3), the Commissioner may require the

dealer to furnish a bank guarantee or other security, may be prescribed, for an amount

power to withhold refund in certain cases. Collection of tax only by registered dealers. Refund of lax for Embassies, ollicials, international and public organizations. Interest SERIES - I NO. : 05 DATED 1sTH AUGUST, 2005. equal to the amount of refund of tax and on receipt of such guarantee or other security, the

Commissioner shall grant the dealer a provisional refund which may be determined as

refundable within ninety days of application of claim of such refund.

1. (11) The Commissioner may direct the assessment or reassessment of such dealer in ,@pect ofthe year containing the period covered by thesaid return as expeditiously as possible and adjustthe grant ofprovisional refund against tax due, ifany, as a result of such assessment.
2. (12) If, on assessment or

reassessment, the provisional refund granted under sub-

seetion (2) is found to be in excess, then the excess shall be recovered as if it is tax due from the dealer under this Regulation.

1. (13) In a case the excess amount of tax has been refunded under sub-section (3), the interest shall be payable on such excess amount at the rate of two per cent. per month from the date ofgrant ofprovisional refund till the date ofassessment or reassessment, as the case' may be. 39. (1) Whereaperson is entitled to arefund and any proceeding under this Regulation is pending against him, or a notice under section 58 had been issued and assessment or re-

assessment in pursuance of the notice is pending and the Commissioner is

ofthe opinion that payment ofsuch refund is likelyto adversely affect the revenue and that it may not be possible to !e&gver the amount later, the Commissior~er may for reasons to be recorded in writing, eitheg~btain a security equal to the amount to be refunded to the person or withhold the refund till such time the proceeding or the assessment or re-assessment has been concluded or made.

1. (2) Where a refund is withheld under sub-section (I), the person shall be entitled to

interest as provided under sub-section

1. (I) of section 42 if, as a result of the appeal, or any other proceeding he becomes entitled to the refund.

40. (1) No person who is not a registered dealer shall collect in respect of any sale of

goods by him in Daman and Diu any amount by way of tax under this Regulation an! no

registered dealer shall make any such collection except in accordance with this Regulation

and the rules made thereunder and at the rates specified under this Regulation.

1. (2) Tax collected by a person who is not a registered dealer shall, without prejudice to any penalty or prosecution under this Regulation, stand forfeited to the Government. 41. (1) The Embassies, diplomatic officials and international or public organisations specified in the FiRh Schedule shall be entitled to claim a refund oftax paid on goods purchased in the Daman and Diu, subject to such restrictions and conditions as may be prescribed. (2)Any personentitled to a refund under sub-section(1) may apply to the Commissioner

in the manner and within the time, as may be prescribed.

42. (1) (a) A person entitled to a refund under this Regulation, shall be entitled to

receive, in addition to the refund, simple interest at such rate, as may be notified by the

Government from time to time.

1. (b) The simple interest at the rate specified under sub-section (I) shall be calculated from- ,
   • (I) the date from which the refund was due to be paid to the person; or (ill the date on which the person paid the excess amount, whichever is later, and such interest shall be calculated upto the date on which the refund is given. (c)The interest shall be calculated on the amount ofrefund due after deductingtherefiom any tax, interest, penalty or any other dues under this Regulation, or under the Central Sales Tax Act, 1956, if such dues relate to the sale ofgoods from Daman and Qiu.

74 of 1956.

SERIES - I No. : 05 DATED 1sTH AUGUST, 2005, (4 If the amount of such refund is enhanced or reduced, as the case may be, such interest shdl be enhanced or reduced accordingly.

1. (e) Ifthe delay in granting the refund is attributable to the said person, whether wholly or in part, the periodofthe delay attributable to him shall be excluded 60m the period for which the interest is

1. (2) When a person is in default in making the payment of any tax, penalty or other amount due under this Regulation, he shall, in addition to the amount assessed, be liable to pay simple interest on such amount at such rate, as may be notified by the Government from time to time from the date of such default until he makes such payment of taw, penalty or other amount.
2. (3) Where the amount oftax (includingany penalty due) is wholly reduced,the amount of interest, if any, paid shall be refunded, or if such amount is varied, the interest due shall be calculated accordingly.
3. (4) Where the collection ofany amount is stayed by theorder oftheAppellateTribunal or any court or any other authority and the order is subsequently vacated, interest shall be for any period during which such order remained in operation.
4. (5) The interest payable by a person under this Regulation may be collected as tax due

under this Regulation and shall be due and payable on and from the

obligation to pay thc interest has arisen. RECOVERY OF TAX, INTtiREST AND PENALTIES

43, (I) The amount of any tax, interest, penalty or other amount due under this

R~vnyof

Regulation shall be paid in the manner specified in section 36 and a notice of assessment

tax served onthe person for such an amount shall constitute a demand for payment ofthe amount

stated in the assessment by the time stipulated in the notice of assessment.

*

1. (2) On an application made before the expiry of the period under section 35, the

instalments, subject to such

conditionsas he may think fit to impose in the circumstances of the case.

(3)Any amount of tax, interest or penalty or other amount due under this Regulation which remains unpaid, shall be recoverable as anears of land revenue.

1. (4) Where security, other than in the form of surety bond, has been furnished under the Regulation, the Commissioner may, for reasons to be recorded in writing, recover any amount of tax, interest, penalty or other amount due or part thereof by ordering the forfeiture ofthe whole or any part of the security.
2. (5) Where any security tendered for the purposes of this Regulation is to be sold, it

shall be sold in the manner stipulated in section

63.

is pending against him, or a notice under section 58 had been issued and assessment or re-

assessment in pursuance of the notice is pending and the Commissioner is

ofthe opinion that payment ofsuch refund is likelyto adversely affect the revenue and that it may not be possible to !e&gver the amount later, the Commissior~er may for reasons to be recorded in writing, eitheg~btain a security equal to the amount to be refunded to the person or withhold the refund till such time the proceeding or the assessment or re-assessment has been concluded or made.

1. (2) Where a refund is withheld under sub-section (I), the person shall be entitled to

interest as provided under sub-section

1. (I) of section 42 if, as a result of the appeal, or any other proceeding he becomes entitled to the refund.

1. (1) No person who is not a registered dealer shall collect in respect of any sale of goods by him in Daman and Diu any amount by way of tax under this Regulation an! no registered dealer shall make any such collection except in accordance with this Regulation and the rules made thereunder and at the rates specified under this Regulation. (2) Tax collected by a person who is not a registered dealer shall, without prejudice to any penalty or prosecution under this Regulation, stand forfeited to the Government.

goods by him in Daman and Diu any amount by way of tax under this Regulation an! no

registered dealer shall make any such collection except in accordance with this Regulation

and the rules made thereunder and at the rates specified under this Regulation.

1. (2) Tax collected by a person who is not a registered dealer shall, without prejudice to any penalty or prosecution under this Regulation, stand forfeited to the Government.

specified in the FiRh Schedule shall be entitled to claim a refund oftax paid on goods purchased in the Daman and Diu, subject to such restrictions and conditions as may be prescribed. (2)Any personentitled to a refund under sub-section(1) may apply to the Commissioner

in the manner and within the time, as may be prescribed.

1. (1) (a) A person entitled to a refund under this Regulation, shall be entitled to receive, in addition to the refund, simple interest at such rate, as may be notified by the Government from time to time. (b) The simple interest at the rate specified under sub-section (I) shall be calculated from- , (I) the date from which the refund was due to be paid to the person; or (ill the date on which the person paid the excess amount, whichever is later, and such interest shall be calculated upto the date on which the refund is given. (c)The interest shall be calculated on the amount ofrefund due after deductingtherefiom any tax, interest, penalty or any other dues under this Regulation, or under the Central Sales Tax Act, 1956, if such dues relate to the sale ofgoods from Daman and Qiu. 74 of 1956. SERIES - I No. : 05 DATED 1sTH AUGUST, 2005, (4 If the amount of such refund is enhanced or reduced, as the case may be, such interest shdl be enhanced or reduced accordingly. (e) Ifthe delay in granting the refund is attributable to the said person, whether wholly or in part, the periodofthe delay attributable to him shall be excluded 60m the period for which the interest is (2) When a person is in default in making the payment of any tax, penalty or other amount due under this Regulation, he shall, in addition to the amount assessed, be liable to pay simple interest on such amount at such rate, as may be notified by the Government from time to time from the date of such default until he makes such payment of taw, penalty or other amount. (3) Where the amount oftax (includingany penalty due) is wholly reduced,the amount of interest, if any, paid shall be refunded, or if such amount is varied, the interest due shall be calculated accordingly. (4) Where the collection ofany amount is stayed by theorder oftheAppellateTribunal or any court or any other authority and the order is subsequently vacated, interest shall be for any period during which such order remained in operation. (5) The interest payable by a person under this Regulation may be collected as tax due under this Regulation and shall be due and payable on and from the obligation to pay thc interest has arisen. RECOVERY OF TAX, INTtiREST AND PENALTIES 43, (I) The amount of any tax, interest, penalty or other amount due under this R~vnyof Regulation shall be paid in the manner specified in section 36 and a notice of assessment tax served onthe person for such an amount shall constitute a demand for payment ofthe amount stated in the assessment by the time stipulated in the notice of assessment. * (2) On an application made before the expiry of the period under section 35, the Commissioner may, in respect of any dealer or person and for reasons to be recorded in writing, extend the time for payment or allow payment by instalments, subject to such conditionsas he may think fit to impose in the circumstances of the case. (3)Any amount of tax, interest or penalty or other amount due under this Regulation which remains unpaid, shall be recoverable as anears of land revenue. (4) Where security, other than in the form of surety bond, has been furnished under the Regulation, the Commissioner may, for reasons to be recorded in writing, recover any amount of tax, interest, penalty or other amount due or part thereof by ordering the forfeiture ofthe whole or any part of the security. (5) Where any security tendered for the purposes of this Regulation is to be sold, it shall be sold in the manner stipulated in section

receive, in addition to the refund, simple interest at such rate, as may be notified by the

Government from time to time.

1. (b) The simple interest at the rate specified under sub-section (I) shall be calculated from- ,
   • (I) the date from which the refund was due to be paid to the person; or (ill the date on which the person paid the excess amount, whichever is later, and such interest shall be calculated upto the date on which the refund is given. (c)The interest shall be calculated on the amount ofrefund due after deductingtherefiom any tax, interest, penalty or any other dues under this Regulation, or under the Central Sales Tax Act, 1956, if such dues relate to the sale ofgoods from Daman and Qiu.

74 of 1956.

SERIES - I No. : 05 DATED 1sTH AUGUST, 2005, (4 If the amount of such refund is enhanced or reduced, as the case may be, such interest shdl be enhanced or reduced accordingly.

1. (e) Ifthe delay in granting the refund is attributable to the said person, whether wholly or in part, the periodofthe delay attributable to him shall be excluded 60m the period for which the interest is

1. (2) When a person is in default in making the payment of any tax, penalty or other amount due under this Regulation, he shall, in addition to the amount assessed, be liable to pay simple interest on such amount at such rate, as may be notified by the Government from time to time from the date of such default until he makes such payment of taw, penalty or other amount.
2. (3) Where the amount oftax (includingany penalty due) is wholly reduced,the amount of interest, if any, paid shall be refunded, or if such amount is varied, the interest due shall be calculated accordingly.
3. (4) Where the collection ofany amount is stayed by theorder oftheAppellateTribunal or any court or any other authority and the order is subsequently vacated, interest shall be for any period during which such order remained in operation.
4. (5) The interest payable by a person under this Regulation may be collected as tax due

under this Regulation and shall be due and payable on and from the

obligation to pay thc interest has arisen. RECOVERY OF TAX, INTtiREST AND PENALTIES

43, (I) The amount of any tax, interest, penalty or other amount due under this

R~vnyof

Regulation shall be paid in the manner specified in section 36 and a notice of assessment

tax served onthe person for such an amount shall constitute a demand for payment ofthe amount

stated in the assessment by the time stipulated in the notice of assessment.

*

1. (2) On an application made before the expiry of the period under section 35, the

instalments, subject to such

conditionsas he may think fit to impose in the circumstances of the case.

(3)Any amount of tax, interest or penalty or other amount due under this Regulation which remains unpaid, shall be recoverable as anears of land revenue.

1. (4) Where security, other than in the form of surety bond, has been furnished under the Regulation, the Commissioner may, for reasons to be recorded in writing, recover any amount of tax, interest, penalty or other amount due or part thereof by ordering the forfeiture ofthe whole or any part of the security.
2. (5) Where any security tendered for the purposes of this Regulation is to be sold, it

shall be sold in the manner stipulated in section

under this Regulation, the provisions of the Goa, Daman and mu Land Revenue Code, 9 of 1969 1968, or any other law made applicable to Daman and Diu as to the recovery of arrears of

land revenue in the

Daman and Diu shall, notwithstanding anything contained in that Actor

in any other enactment, be deemed to be in force throughout the

Daman and Diu,

amount payable under this Regulation (hereinafter in this section referred to as "Government dues") is sewedupon any person and any appeal hap been flted by the person against the assessment or demand for such government dues, then-

1. (a) if the appeal is disallowed in whole or in part, any recovery proceedings taken for the recovery of such Government dues before the making of the appeal, may, Application of @a, Daman and Diu Land Revenue Code, 1968 for purpom ofncovery. Cantinwtion Of Main mvay pmcadinm. -- SERIES - I No. : 05 DATED lgTH AUGUST, 2005.

the appeal; and

1. (b) where such Government dues are reduced in any appeal-
   • (I) it shall not be necessary for the Commissioner to serve upon the person a fresh assessment or notice of demand; and (ir] theCommissioner shall give intimation ofsuch reduction to him and to the person with whom recovery proceedings are pending. -?

1. (1) Notwithstanding anything contained in any law or contract to the contrary, the Of'mveW. Commissioner may, at any time, by notice in writing, a copy ofwhich shall be forwarded to the person at his last known address, require, -
   • (a) any person from whom any amount of money is due, or may become due, to the person (in this section called "the taxpayer") liable to pay tax, interest or penalties under section 45, or
   • (b) any person who holds or may subsequently hold money, for or, on account of, the taxpayer, to pay, either forthwith upon the money becoming due or being held or within the time specified in the first mentioned notice (but not before the money becomes due or is held as aforesaid) so much ofthe money as is sufficient to pay the anount due by the taxpayer in respect of the arrears of tax, interest and penalty under this Regulation, or the whole of the money when it is equal to or less than that amount.

Explnna1ion.- For the purposes of this sub-section, the amount due to a taxpayer

from, or money held for or on account of a taxpayer by any person, shall be calculated by the

~oinissione; afler deducting therefrom suih claims, if any, IawfUlly subsisting, as may

have fallen due for payment by such taxpayer to such person. (2)The Commissioner may amend or revoke any such notice referred to in this section or extend the time for making any payment in pursuance of the notice.

1. (3) Any person making any payment in compliance with a notice under this section

shall be deemed to have made the payment under the authority of the taxpayer, and the

receipt thereof by the Commissioner shall constitute a good and sufficient discharge of the liability of such person to the extent of the amount specified in the receipt.

1. (4) Any person discharging any liability to the taxpayer afler receipt of the notice referred to in this section, shall be personally liable to the Commissioner to the extent of the liability dischargedor to the extent ofthe liabilityofthe dealer for taxand penalty, whichever is less.
2. (5) Whereapersonto whom a notice under this section is sent, provesto thesatisfaction ofthe Commissioner that the sum demanded or any part thereof is not due to the taxpayer or that he does not hold any money for or on account of the taxpayer, then, nothing contained in thissection shall bedeemed to require such person to pay any such sum or part thereof, as the case may be, to the Commissioner.
3. (6) Any amount of money which the aforesaid person is required to pay to the

Commissioner, or for which he is personally liable to the Commissioner under this section

' .. shall, if it remains unpaid, be recoverable as if arrears of land revenue.

1. (7) The Commissioner may apply to thecourt in whose custody there is money belonging to the taxpayer for payment to him ofthe entire amount ofsuch money or if it is more than the

tax, interest and penalty, if any, due, an amount sufficient to discharge such

tax and the penalty.

I SERIES - I No. : 05 I 1 DATED 18"' AUGUST, 2005.

by a person under this Regulation, that person creates acharge on, or parts with the possession by way of sale, mortgage, gift or exchange or any other mode of transfer whatsoever, any of his assets in favour of any other person, such charge or transfer shall be void against any claim by the Commissioner in respect of the amount which is the subject of proceedings, unless the other person-

1. (a) acted bonafide and without notice of the recovery proceedings; and
2. (b) has paid the fair market value for the assets. CHAPTER VIU

1. (1) Every-
   • (a) dealer; and
2. (6) person on whom a notice has been served to furnish returns under section 27, shall prepare and retain sufficient records to allow the Commissioner to ascertain the amount oftax due under this Regula$ion, and to explain all transactions, events and other acts engaged in by the person that are relevant for any purposes of this Regulation.
3. (2) Notwithstanding the generality of sub-section (1)-
   • (a) every registered dealer shall preserve a copy of all tax invoices issued by him;
4. (6) every dealer shall preserve the original of all tax invoices received by him; and
   • (c) every person who has paid an amount oftax, interest, penalty or other amount due under this Regulation, shall preserve a copy ofthe challan evidencing the making ofthe payment.
5. (3) Every dealer shall prepare and maintain the accounts and records in the manner and form as may be prescribed.
6. (4) If the Commissioner considers that such rewrds are not properly maintained to enable-him to ascertain discharge of the obligations by the person under this Regulation, he may require such person by notice in writing to maintainsuch accounts (includingrecords of

purchases and sales) as may be specified in the notice.

(5)The Commissioner may, by notification, direct any class ofdealers, transporters or

1. (6) Every person required to prepare or preserve accounts and records shall retain the required accounts and records for seven years after the conclusion of theevents or h.ansactions which they record unless any proceedings in respect of any event or transaction is pending in that case they shall be preserved till the fmal decision in those proceedings.
2. (7) Any loss, if any, of accounts and records referred to in sub-section (6) shall be reported to the Police and the Commissioner within a period of fifteen days from the date of such loss.

lakh pees or such other amount as may be prescribed, fhen, suchdealer shall get his accounts

in respect of such year audited by an accountant within six months ffom the end of that year and obtain within that period 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 and a

true copy of such report shall be furnished by such dealer to the Commissioner by the

prescribed date. Tmsfer of asre& during pendency of pmceedings void 1 Amunts and records. I

SERIES - I No. : 05 DATED lgnl AUGUST. 2005.

(1)A registered deakr, making a sale liable to tax under this Regulation, shall, at the request ofthe purchaser, provide tbe purchaser at thethne of sale a tax irrvoiee containing the particulars specified in Mlb.scdion (2) and retain a copy thereof: Provided that a tax invoice shall oot be issued-

1. (a) by a dealer who opts to pay tax under &on 16; or
2. (b) for the sale in the course of inW-state bade or eommcrce or export by a dealer' and in such cases a retail invoice shall be issued: Provided fivther that not more than one tax invoice shall be issued for each such sale: Provided also Ihat if an invoice has been issued under the provisions of the Central Excise Act, 1944, itshall be deemed to bea tax invoice if it containsthe particulars specified 1 of 1944. in sub-section (2).

fipIa~I1on.- For removal of doubts, a registered dealer shall be authorised to issue

tax invoices only aRer a certificate of registration has ken granted under this Regulation.

1. (2) The tax invoice issued under subsection (I) shall contain the following particulars on the original as well as copies thereof, namely :-
   • (a) the words 'tax invoice' in a prominent place;
   • (b) the name, address and registration number of the selling registered dealer;
   • (c) the name and address oftbe purchaser and his registPation number, where the purchaser is a registered dealer;
   • (d) an individual preprinted serialised number and the date on which the tax invoice is issued;
   • (e) description, guttntity, volume and value of goods sold and services provided and the amount of tax &ax@ thereon indicated separately;

1. (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.

1. (3) A A invoice in respect of a sale shall be issued in duplicate and the original of which shall be issued to the purchaser (or the petson taking the delivery, as the case may be) and the duplicate shall be retained by the selling dealer.
2. (4) Except when a tax invoice is issued under subsedion (I), if a dealer sells any goods exceeding such amount

in value as may be prescribed, in any one tratisaction to any

person, he shall issue to the purchsser a retail invoice containing the particulars specified in sub-section

1. (5) and retain a copy thereof. (5)Theretail invoice issuedundawb-section (4)shall cominthefollowingparlicu(srrs on the original as wpll as copies thereof, namely :-
   • (a) the words 'retail invoice' or 'cash memorandum' or 'bill' in a prominent place;
   • (b) the name, address and registration number ofthe selling dealer, if registered;
   • (c) in w&e the sale is in the course of inter-state trade or commerce, the nW, registration number and addm of the pqrchasing dealer and typc of any form, under the Central Sates Tax Act, 1956, if any, against which the sale has been made; 74 of 19%.
   • (d) an individual proprinted swialised number and the date on which the retail invoice is issued; SERIES - I No. : 05 DATED laTH AUGUST, 2005.
   • (e) description, quantity, volume and valueofgoods sold and services provided, - inclusive of amount of tax charged thereon; and V) the signature of the selling dealer or his servant, manager or agent, duly authorised by him.
2. (6) The retail invoice shall be issued in duplicate, and the original of which shall be issued to the purchaser and the duplicate copy of which shall be retained by the selling dealer.
3. (7) The Commissioner may, by notification, specify the manner and form in which the particulars on a tax invoice or retail invoice are to be recorded.
4. (8) If a purchaser clainis to have lost the original tax invoice, the selling dealer may, subject to such conditions and restrictions as may be prescribed, provide a copy of such tax invoice clearly marked as a copy oforiginal tax invoice.

1. (a) the amount shown as tax in that tax invoice exceeds the tax payable in respect of the sale, the dealer shall provide the purchaser with a credit note, containing such particulars as may be prescribed; or
2. (b) the tax payable in respect ofthesale exceeds the amount shown as tax on the tax invoice, the dealer shall provide the purchaser with a debit note, containing such particulars as may be prescribed. 52. (1) Where a dealer, liable to pay tax under this Regulation, transfers his business in whole or in part, by sale, gift, lease, l~eave or licence, hue or in any other manner whatsoever, the dealer and the person to whom the business is so transferred shall jointly and severally be liable to pay the tax, interest or penalty due from thedealer up to the timeofsuch transfer, whether such tax, interest or penally has been assessed before such transfer, but has remained unpaid or is assessed thereafter.

1. (2) Where the transferee or the lessee of a business referred to in sub-section (I)

carries on such business either in his own name or in some other name, he shall be liable to

pay tax on the sale of goods effected by hi with effect from the date of such tramfer and shall, if he is registered

as a dealer, apply within the time specified in section 21 for the

amendment of his certificate of registration. 53. (1) Every person-

1. (a) who is a liquidator of any company which is being wound up, whether under the orders of a court or otherwise; or
2. (b) who has been appointed the receiver of any assets of a company (hereinafter referred to as the "liquidator"), shall, within one month after he has become such liquidator, give notice of his appointment as such to the Commissloner.

1. (2) The Commissioner shall, akr making such inquiries or calling for such information

as he may deem fit, notify the liquidator within three months from the date on which he

received notice of the appointment of the liquidator, the amount which, in the opinion of the Commissioner, would be sufficient to provide for any t&x, interest orpenalty which is then, or is likely thereafter, to become payable by the company.

1. (3) The liquidator shall not part with any ofthe asse.la ofthe company or the properties in his hand until he

has been notified by the Commissioner under sub-section (2) and on

Credit and debit notes Liability in case of mnsrer of business. Liability in case of company in li liquidation. being so notified, the liquidpr shall skiaside an amount equal to the amount notified and,

Liabilityof partnen of firm to pay tax. Liability of guardians, bustee& etc. SERIES - I No. : 05 DATED lgnl AUGUST, 2005. until he so sets aside such amount, he shall not part with any of the assets of thecompany or the properties in his hand:

Provided that nothing contained in this sub-section shall debar the liquidator

From parting with such assets or properties in compliance with any order of a court or for the purpose ofthe payment ofthe tax, interest and penalty, ifany, payable by the company under this Regulation or for making any payment to secured creditors whose debts are entitled under law to priority ofpaymentsover debts due to Government on the date of liquidation or for meeting such costs and expenses of the winding up of the company as are in the opinion ofthe Commissioner reasonable.

1. (4) If the liquidator fails to give notice in accordance with sub-section (1) or fails to set aside the amount as required by sub-section (3) or parts with any assets ofthecompany or

the properties in his hand

in contravention of the provisions of that sub-section, he shall be personally liable for the payment of

tax, interest and penalty, if any, which the company

would be liable to pay under this Regulation: Provided that iftheamount oftax, interest and penalty, ifany, payable by thecompany is notified under sub-section (2), the personal liability ofthe liquidator under this sub-section shall be to the extent of such amount.

1. (5) Where there is more than one liquidator, the obligations and liabilities attached to a liquidator under this section shall attach to all the liquidators jointly and severally.
2. (6) When any private company is wound up and any tax, interest and penalty, if any,

assessed under this Regulation on the company for any period, whether before or in the

course of or after its liquidation, cannot be recovered, then every person who was a director of the private company at any time during the period for which the tax is due, shall be jointly and severally liable for the payment ofsuch tax, interest and penalty, ifany, unless he proves to the satisfaction of the Commissioner that non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company.

1. (7) The provisions of this section shall have effect notwithstanding anything to the

contrary contained in any other law for the time being in force.

1. (8) For the purposes of this section, the expressions"company" and "private company"

shall have the meanings respectively assigned to them under clauses

1. (I) and (IN) of sub- section
2. (I) of section 3 of the Companies Act, 1956. I of 1956. , '& "'Sr

in whole or in part, by sale, gift, lease, l~eave or licence, hue or in any other manner whatsoever, the dealer and the person to whom the business is so transferred shall jointly and severally be liable to pay the tax, interest or penalty due from thedealer up to the timeofsuch transfer, whether such tax, interest or penally has been assessed before such transfer, but has remained unpaid or is assessed thereafter.

1. (2) Where the transferee or the lessee of a business referred to in sub-section (I)

carries on such business either in his own name or in some other name, he shall be liable to

pay tax on the sale of goods effected by hi with effect from the date of such tramfer and shall, if he is registered

as a dealer, apply within the time specified in section 21 for the

amendment of his certificate of registration.

1. (a) who is a liquidator of any company which is being wound up, whether under the orders of a court or otherwise; or
2. (b) who has been appointed the receiver of any assets of a company (hereinafter referred to as the "liquidator"), shall, within one month after he has become such liquidator, give notice of his appointment as such to the Commissloner.

1. (2) The Commissioner shall, akr making such inquiries or calling for such information

as he may deem fit, notify the liquidator within three months from the date on which he

received notice of the appointment of the liquidator, the amount which, in the opinion of the Commissioner, would be sufficient to provide for any t&x, interest orpenalty which is then, or is likely thereafter, to become payable by the company.

1. (3) The liquidator shall not part with any ofthe asse.la ofthe company or the properties in his hand until he

has been notified by the Commissioner under sub-section (2) and on

Credit and debit notes Liability in case of mnsrer of business. Liability in case of company in li liquidation. being so notified, the liquidpr shall skiaside an amount equal to the amount notified and, Liabilityof partnen of firm to pay tax. Liability of guardians, bustee& etc. -33- SERIES - I No. : 05 DATED lgnl AUGUST, 2005. until he so sets aside such amount, he shall not part with any of the assets of thecompany or the properties in his hand:

Provided that nothing contained in this sub-section shall debar the liquidator

From parting with such assets or properties in compliance with any order of a court or for the purpose ofthe payment ofthe tax, interest and penalty, ifany, payable by the company under this Regulation or for making any payment to secured creditors whose debts are entitled under law to priority ofpaymentsover debts due to Government on the date of liquidation or for meeting such costs and expenses of the winding up of the company as are in the opinion ofthe Commissioner reasonable.

1. (4) If the liquidator fails to give notice in accordance with sub-section (1) or fails to set aside the amount as required by sub-section (3) or parts with any assets ofthecompany or

the properties in his hand

in contravention of the provisions of that sub-section, he shall be personally liable for the payment of

tax, interest and penalty, if any, which the company

would be liable to pay under this Regulation: Provided that iftheamount oftax, interest and penalty, ifany, payable by thecompany is notified under sub-section (2), the personal liability ofthe liquidator under this sub-section shall be to the extent of such amount.

1. (5) Where there is more than one liquidator, the obligations and liabilities attached to a liquidator under this section shall attach to all the liquidators jointly and severally.
2. (6) When any private company is wound up and any tax, interest and penalty, if any,

assessed under this Regulation on the company for any period, whether before or in the

course of or after its liquidation, cannot be recovered, then every person who was a director of the private company at any time during the period for which the tax is due, shall be jointly and severally liable for the payment ofsuch tax, interest and penalty, ifany, unless he proves to the satisfaction of the Commissioner that non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company.

1. (7) The provisions of this section shall have effect notwithstanding anything to the

contrary contained in any other law for the time being in force.

1. (8) For the purposes of this section, the expressions"company" and "private company"

shall have the meanings respectively assigned to them under clauses

1. (I) and (IN) of sub- section
2. (I) of section 3 of the Companies Act, 1956. I of 1956. , '& "'Sr

.. ?.a. -... tax, interest or penalty under this Regulation, the firm and each of the partners of the firm shall be jointly and severally liable for such payment: .. , : "* .? . , Provided that where any such partner retires from the firm, he shall intimate the date

of his retirement to the Commissioner by a notice to that effect in writing and he shall be

liable to pay tax, interest or penalty remaining unpaid at the time of his retirement and any tax, interest or penalty due up to the date of his retirement though unassessed on that date: ~rovidedfurther that ifno such intimation is given within fifteen days from the date of retirement, the liability of the partner under the first proviso shall continue until the date on which such intimation is received by the Commissioner.

carried on by, or is in the charge of any guardian, trustee or agent of a minor or

other incapacitated person on his behalf and for the benefit of such minor or other incapacitated person, the tax, interest or penalty shall be levied upon and recoverable from such guardian, trustee or agent,

as the case may be, in like manner and to the same extent as it would be

assessed upon and recoverable from any such minor or other incapacitated person, if he were of

full age and omund mind and if he were conducting the business himself, and all the

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

SERIES - I No. : 05 DATED isTH AUGUST, 2005. -- --

respect of vihich tax is payable under this Regulation is under the conb.01 of the Court of &ufiof

Wards, theAdminishator-General, the OfficialTrusteeor any receiver ormanager(including W?dss*. any person, whatever be his designation, who in fact manages the business) appointed by or under any order of a court, thetax, interest oi penalty shall be leviedupon and be recoverable from such Court of Wards, Adminishator-General, Official T~stee, receiver or manager in like manner and to the same extent as it would be assessable upon and be recoverabie from

the dealer if he were conductingthe business himself, and all the provisions ofthis Regulation

shall, so far as may be, apply accordingly. 57. (1) Where a dealer is a firm or an association of persons or a Hindu undivided Liability in family, and such firm, association or family has discontinued business- other cpses.

1. (a) the tax payable under this Regulation, by such firm, association or family up to the date of such discontinuance may be assessed as if no such discontinuance had taken place; and
2. (b) every person who was at the time of such discontinuance a partner of such

firm, or a member of such association or family, shall, notwithstanding such

discontinuance, be liable jointly and severally for the payment of tax assessed and

penalty imposed and payable by such firm, association or family, whether such tax,

interest or penalty has been assessed prior to or after such discontinuance, and subject as aforesaid, the provisions of this Regulation shall, so far as may be, apply as ifevely such person or partner or member were himself a dealer: Provided that where the partner of a firm liable to pay such tax, interest or penalty, dies, the provisions of sub-section

1. (4) shall, so far as may be,apply.
2. (2) Where a change has occurred in the constitution of a firm or an association of persons, the partners of the firm or members of the as so cia ti or^ as it existed before and as it exists after its reconstitution shall, without prejudice to the provisions of section 54, jointly and severally be liable to pay tax, interest or penalty due from such fum or association for any period before its re-constitution,
3. (3) The provisions of sub-section (I) shall, so far as may be, apply where the dealer, being a firm or association of persons is dissolved or, being a Hindu undivided family, has effected partition with respect to the business carried on by it and accordingly references in that sub-section to discontinuance shall be conshued as references to dissolution or, as the case may be, to partition.
4. (4) Where a dealer liable to pay tax under this Regulation dies, thew
   • (a) ifa 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 the tax, interest or penalty due from the dealer under this Regulation, whether such tax, interest or penalty had been assessed before his death but has remained unpaid, or is assessed after his death;

1. (b) if the business carried on by the dealer is discontinued after his death, his

legal representative shall be liable to pay out of the estate of the deceased, to the

extent the estate is capable of meeting the charge, the tax, interest or penalty due from the dealer under this Regulation, whether such tax, interest or penalty had been assessed before his death buthas remained unpaid, or is assessed after his death, and the provisions ofthis Regulation shall, so far as may be, apply to such legal represehtative or other person as if he were the dealer himself &planation.- For the purposes ofthis section "legal representative" has the meaning 5 of 1908.

assigned to it in clause (11) of section 2 of the Code of Civil Procedure, 1908.

Audit. SERIES - I No. : 05 DATED isTH AUGUST, 2005.

Liability in family, and such firm, association or family has discontinued business- other cpses.

1. (a) the tax payable under this Regulation, by such firm, association or family up to the date of such discontinuance may be assessed as if no such discontinuance had taken place; and
2. (b) every person who was at the time of such discontinuance a partner of such

firm, or a member of such association or family, shall, notwithstanding such

discontinuance, be liable jointly and severally for the payment of tax assessed and

penalty imposed and payable by such firm, association or family, whether such tax,

interest or penalty has been assessed prior to or after such discontinuance, and subject as aforesaid, the provisions of this Regulation shall, so far as may be, apply as ifevely such person or partner or member were himself a dealer: Provided that where the partner of a firm liable to pay such tax, interest or penalty, dies, the provisions of sub-section

1. (4) shall, so far as may be,apply.
2. (2) Where a change has occurred in the constitution of a firm or an association of persons, the partners of the firm or members of the as so cia ti or^ as it existed before and as it exists after its reconstitution shall, without prejudice to the provisions of section 54, jointly and severally be liable to pay tax, interest or penalty due from such fum or association for any period before its re-constitution,
3. (3) The provisions of sub-section (I) shall, so far as may be, apply where the dealer, being a firm or association of persons is dissolved or, being a Hindu undivided family, has effected partition with respect to the business carried on by it and accordingly references in that sub-section to discontinuance shall be conshued as references to dissolution or, as the case may be, to partition.
4. (4) Where a dealer liable to pay tax under this Regulation dies, thew
   • (a) ifa 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 the tax, interest or penalty due from the dealer under this Regulation, whether such tax, interest or penalty had been assessed before his death but has remained unpaid, or is assessed after his death;

1. (b) if the business carried on by the dealer is discontinued after his death, his

legal representative shall be liable to pay out of the estate of the deceased, to the

extent the estate is capable of meeting the charge, the tax, interest or penalty due from the dealer under this Regulation, whether such tax, interest or penalty had been assessed before his death buthas remained unpaid, or is assessed after his death, and the provisions ofthis Regulation shall, so far as may be, apply to such legal represehtative or other person as if he were the dealer himself &planation.- For the purposes ofthis section "legal representative" has the meaning 5 of 1908.

assigned to it in clause (11) of section 2 of the Code of Civil Procedure, 1908.

Audit. -35- SERIES - I No. : 05 DATED isTH AUGUST, 2005.